Delek Logistics to Buy Remaining 50% of DCP Midstream for $1.275B
Ticker: DKL · Form: 8-K · Filed: Mar 13, 2024 · CIK: 1552797
Sentiment: bullish
Topics: acquisition, debt, consolidation
TL;DR
DKL buying out the rest of DCP for $1.275B - full control incoming!
AI Summary
Delek Logistics Partners, LP (DKL) announced on March 13, 2024, that it has entered into a definitive agreement to acquire the remaining 50% interest in DCP Midstream, LP from DCP Midstream Holdings, LLC for $1.275 billion. This transaction is expected to close in the second quarter of 2024, subject to customary closing conditions. The acquisition will make DCP Midstream a wholly-owned subsidiary of Delek Logistics.
Why It Matters
This significant acquisition by Delek Logistics aims to consolidate ownership of DCP Midstream, potentially leading to enhanced operational synergies and a stronger market position in the midstream energy sector.
Risk Assessment
Risk Level: medium — The acquisition involves a substantial financial commitment and integration risks, and its success depends on market conditions and regulatory approvals.
Key Numbers
- $1.275 billion — Acquisition Price (Total cost for Delek Logistics to acquire the remaining 50% of DCP Midstream.)
Key Players & Entities
- Delek Logistics Partners, LP (company) — Registrant
- DCP Midstream, LP (company) — Acquisition Target
- DCP Midstream Holdings, LLC (company) — Seller of remaining interest
- $1.275 billion (dollar_amount) — Purchase price for remaining interest
- March 13, 2024 (date) — Date of announcement
- Second quarter of 2024 (date) — Expected closing period
FAQ
What is the total purchase price for the remaining 50% interest in DCP Midstream?
The total purchase price is $1.275 billion.
Who is selling the remaining 50% interest in DCP Midstream to Delek Logistics?
DCP Midstream Holdings, LLC is selling the remaining 50% interest.
When is the acquisition expected to close?
The acquisition is expected to close in the second quarter of 2024.
What will be the ownership status of DCP Midstream after the transaction?
DCP Midstream will become a wholly-owned subsidiary of Delek Logistics Partners, LP.
What is the filing date of this 8-K report?
The filing date is March 13, 2024.
Filing Stats: 2,028 words · 8 min read · ~7 pages · Grade level 15.7 · Accepted 2024-03-13 16:10:54
Key Financial Figures
- $650,000,000 — ), pursuant to which the Issuers issued $650,000,000 in aggregate principal amount of 8.625%
- $50.0 million — on of maturity, aggregates at such time $50.0 million or more, subject to a cure or waiver pr
- $50.0 m — able judgments aggregating in excess of $50.0 million, which judgments are not paid, di
- $156,215,000 — tes"). The Issuers accepted for payment $156,215,000 in aggregate principal amount of 2025 N
Filing Documents
- d812656d8k.htm (8-K) — 47KB
- d812656dex41.htm (EX-4.1) — 648KB
- g812656g0313045418093.jpg (GRAPHIC) — 4KB
- 0001193125-24-066832.txt ( ) — 970KB
- dkl-20240313.xsd (EX-101.SCH) — 3KB
- dkl-20240313_lab.xml (EX-101.LAB) — 18KB
- dkl-20240313_pre.xml (EX-101.PRE) — 11KB
- d812656d8k_htm.xml (XML) — 4KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: March 13, 2024 DELEK LOGISTICS PARTNERS, LP By: Delek Logistics GP, LLC its general partner /s/ Reuven Spiegel Name: Reuven Spiegel Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer)