SAN ANTONIO (AP) -- Oil pipeline owner Valero Energy Partners LP has filed to raise $345 million in an initial public offering.
The San Antonio company was formed in July by refinery operator Valero Energy Corp. to own, operate and develop pipelines, terminals and other transportation and logistics assets. It owns properties in the Gulf Coast and Midwest that are integral to operating Valero's refineries in Texas and Tennessee.
Valero Energy Partners makes money by charging tariffs and fees for transporting crude oil and refined petroleum products, and reported revenue of $84.4 million last year. It will sign 10-year agreements with its parent company when the IPO is completed, according to regulatory documents.
Valero Energy Partners expects to launch the IPO early next year. The number of shares to be offered and the price haven't yet been determined. The stock is expected to trade under the ticker symbol "VLP" on the New York Stock Exchange.
The company said it plans to use proceeds from the IPO to pay revolving credit line fees and fund potential acquisitions.
J.P. Morgan and Barclays are jointly managing the offering.
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