Delek US Holdings has added a 35-mile pipeline to its transportation and refinery holdings in east Texas.
Brentwood-based Delek, the parent company of Mapco Express, late last month paid $12.25 million to Plains Marketing, a unit of energy transportation and storage company Plains All American (Ticker: PAA). Delek had been leasing the pipeline from Plains Marketing.
The so-called Nettleton pipeline involved runs from Longview, Texas, west to Delek's refinery in Tyler, and is used exclusively to supply the refinery. In a filing with the Securities and Exchange Commission, Delek said that, in 2011, "more than half of the crude oil processed at the Tyler refinery was supplied through the Nettleton Pipeline."
Delek and Plains Marketing are the successors to companies who signed lease agreements dating back at least to the late 1990s and have renewed their agreements a number of times during the past decade. The most recent renewal was signed in the spring of 2009 and, after three quarterly extensions, expired on Jan. 31. Delek closed on its purchase that day.
A Delek spokesman did not return a call for comment on the transaction. Shares of Delek (Ticker: DK) were trading down about 1 percent to $13.73 early Friday afternoon. They've fallen about 11 percent in the past three months.