BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK), a diversified energy company with assets in the petroleum refining, retail and logistics industries, announced that it entered into an agreement to purchase a biodiesel production facility and related assets based in Cleburne, Texas from EQM Technologies & Energy, Inc. (OTCQB: EQTE) for approximately $5.3 million. This transaction is subject to standard closing conditions and is expected to close on or before January 23, 2013.
The biodiesel facility has a production capacity of approximately 12 million gallons per year. Delek US intends to spend approximately $3.0 million in capital expenditures during 2013 to improve the feedstock flexibility of this facility. At present, the facility produces biodiesel exclusively for Delek US and its affiliates under a tolling agreement. The tolling agreement will terminate upon completion of this transaction.
“We ended 2012 with approximately $600 million of cash and a net cash position of approximately $240 million, which provides us the ability to take advantage of opportunities to grow and expand our operations,” remarked Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US. “This acquisition further integrates our operations by improving our feedstock flexibility for blending biodiesel at our Tyler refinery. We will continue to explore opportunities to grow our business and return value to our shareholders during 2013.”
About Delek US Holdings
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, convenience store retailing and logistics. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 140,000 barrels per day. The retail segment supplies fuels and merchandise through a network of approximately 372 company-operated convenience store locations operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™ brand names. Subsidiaries of Delek US Holdings, Inc. also own 62.4 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP (NYSE: DKL) is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.
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This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning our current estimates, expectations and projections about our future results, performance, prospects and opportunities and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain, the costs to acquire refining feedstocks and the price of the refined petroleum products we ultimately sell; management's ability to execute its strategy through acquisitions and transactional risks in acquisitions; our competitive position and the effects of competition; the projected growth of the industries in which we operate; changes in the scope, costs, and/or timing of capital projects; losses from derivative instruments; general economic and business conditions, particularly levels of spending relating to travel and tourism or conditions affecting the southeastern United States; potential conflicts of interest between our majority stockholder and other stockholders; and other risks contained in our filings with the United States Securities and Exchange Commission.
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