QuikTrip Bids On Terminal

SemGroup LP is set to sell off much of its SemFuel refined petroleum unit to Tulsa-based QuikTrip Corp. and Magellan Midstream Partners LP for a combined price tag of $37 million, according to the Tulsa World.  


 If the deal goes through, QuikTrip, which has 500 convenience stores in nine states,  will be purchasing its first-ever terminal for  $14 million. The terminal is located in Fort Worth, Texas. 


“It fits our long-term plans in the Dallas area,” QuikTrip Spokesman Mike Thornbrugh told the Tulsa World. “We understand the terminal business very well, but we’ve never owned any terminals.” 


Thornbrugh added he was cautious about the prospect, and that the deal still must clear an auction and court hearing. “This is new for us,” he said. “Reliance on your own supply system is a good thing.” 


Magellan, a fee-based gasoline storer and transporter, through its subsidiary Magellan Pipeline Co., is set to pay $23 million to buy SemFuel’s terminal operations in El Dorado, Kan.; Des Moines, Iowa; and storage sites in Glenpool and west Tulsa. This would allow the company to add 1.3 million barrels worth of refined storage if it wins the bid. Already, the company owns the property on which the El Dorado, Des Moines and Tulsa-area tanks sit, so the deal make sense from a geographical point of view for fuel transporter. 


“They are all already connected to our pipeline system,” Spokesman Bruce Heine said. “It fits our portfolio well, and we hope that we’re going to be the successful bidder.” 


An auction and court approval still must occur, but Quik-Trip, Magellan and Combined Locks, Wis.-based U.S. Oil Co. Inc. emerged as stalking horse bidders for three of SemFuel’s five assets groups. A stalking horse bidder is selected by the seller to help set a minimum price for assets and prevent lower offers, and may or may not emerge as the auction winner. The deadline for other interested bidders is July 27, with an auction potentially scheduled for August.


In July 2008, SemGroup LP filed for Chapter 11 bankruptcy protection after losing at least $2.4 billion in margins on its oil futures positions. In addition, it owes at least another $2.5 billion to banks and other creditors, the Tulsa World reported. 





Speak Your Mind