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Western Refining Logistics Acquires Texnew Mex Pipeline AND CRUDE OIL STORAGE TANK FROM SPONSOR WESTERN REFINING

The following excerpt is from the company's SEC filing.

EL PASO, Texas, November 2, 2015 In a joint statement today, Western Refining, Inc. (NYSE:WNR) and Western Refining Logistics, LP (NYSE:WNRL) announced that WNRL has acquired WNRs 375-mile segment of the TexNew Mex pipeline that extends from WNRLs crude oil station in Star Lake, New Mexico in the Four Corners region to WNRLs T Station in Eddy County, New Mexico. WNRL also acquired an 80,000 barrel crude oil storage tank located at its crude oil pumping station in Star Lake, New Mexico.

The primary consideration for the assets consisted of $180 million comprised of $25 million in cash, $145 million in revolver borrowings and $10 million in WNRL common units issued to WNR. In connection with the closing, WNR and WNRL amended certain commercial agreements. As part of these amendments, WNR will provide minimum volume commitments for ten years of 13,000 barrels per day (bpd) on the TexNew Mex pipeline and approximately 80,000 barrels of crude oil storage. WNRL also issued to WNR a new class of WNRL partnership interests in connection with the acquisition that entitle WNR to 80% of the economics resulting from crude oil throughput on the TexNew Mex pipeline above 13,000 bpd. WNRL will be entitled to 20% of the economics resulting from crude oil throughput above this minimum volume commitment.

The purchase of the TexNew Mex pipeline by WNRL is the next step of our strategy to grow the asset base and distributions of WNRL, said Jeff Stevens, President and CEO of both WNR and WNRL. Stevens added, Today, this pipeline supplies WNRs El Paso refinery with cost-advantaged crude oil, and as crude oil production grows in the Four Corners, this pipeline will also provide a potential outlet for crude oil shipments to Midland and the US Gulf Coast.

The TexNew Mex pipeline and crude oil storage tank are expected to generate 2016 EBITDA in a range of $18.5 to $19.0 million.

Stevens continued, WNRs long-term strategy is to continue to develop newly-constructed logistics assets in the Delaware and San Juan basins, which will enhance the crude oil advantage of our refineries and, as WNR sells these assets to WNRL, provide continued cash distribution growth and diversification...