Valero 2015 Annual Report Download - page 80
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Table of Contents
VALERO ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
We retained certain environmental and other liabilities related to our former retail business and we have indemnified CST for certain
self-insurance liabilities related to its employees and property.
4. VALERO ENERGY PARTNERS LP
In July 2013, we formed Valero Energy Partners LP (VLP), a master limited partnership, to own, operate, develop, and acquire crude oil
and refined petroleum products pipelines, terminals, and other transportation and logistics assets. VLP’s assets include crude oil and
refined petroleum products pipeline and terminal systems in the U.S. Gulf Coast and U.S. Mid-Continent regions that are integral to the
operations of nine of our refineries.
O n December 16, 2013, VLP completed its initial public offering of 17,250,000 common units at a price of $23.00 per unit. VLP
received $369 million in net proceeds from the sale of the units, after deducting underwriting fees, structuring fees, and other offering
costs.
Effective November 24, 2015, VLP completed a public offering of 4,250,000 common units at a price of $46.25 per unit and received
net proceeds from the offering of $189 million after deducting the underwriting discount and other offering costs. Concurrent with the
offering, we contributed $4 million in exchange for 86,735 general partner units to maintain our 2.0 percent general partner interest in
VLP.
The ownership of VLP consisted of the following:
December 31,
2015
2014
Valero:
Limited partner interest
65.7%
68.6%
General partner interest
2.0%
2.0%
Public:
Limited partner interest
32.3%
29.4%
We consolidate the financial statements of VLP into our financial statements and as such, VLP’s cash and temporary cash investments
are included in our consolidated cash and temporary cash investments. However, VLP’s cash and temporary cash investments can be
used only to settle its own obligations. VLP’s cash and temporary cash investments were $81 million and $237 million as of
December 31, 2015 and 2014, respectively. In addition, VLP’s partnership capital attributable to the public’s ownership interest in VLP
of $581 million and $375 million as of December 31, 2015 and 2014, respectively, is reflected in noncontrolling interests.
We have agreements with VLP that establish fees for certain general and administrative services, and operational and maintenance
services provided by us. In addition, we have a master transportation services agreement and a master terminal services agreement with
VLP under which VLP provides commercial pipeline transportation and terminaling services to us. These transactions, along with our
contributions to
74