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    Western Refining Considering Midstream, Logistics MLP

    C-store division would remain under the parent company's umbrella.

    EL PASO, Texas -- Western Refining Inc. (WNR) will explore the formation of a master limited partnership (MLP) and begin preparation of a registration statement.

    If WNR management decides that forming an MLP is a prudent move, the parent company would spin off a portion of its midstream and logistics assets to the new company and sell a minority interest in an initial public offering (IPO).

    If consummated, WNR would own the majority of the MLP, as well as its incentive distribution rights.

    WNR's convenience store division, which operates 222 stores under the GIANT, Mustang, Sundial and Howdy's banners, would remain a component of the parent company. The spinoff would likely include oil pipeline and transportation assets.

    WNR is certainly not the first company with ties to the c-store industry to consider or execute an MLP IPO. Susser Holdings Corp., Marathon Petroleum Corp., Lehigh Gas Corp. and Delek U.S. Holdings are among those that have already made similar transactions.

    WNR stressed there is no assurance its discovery process will lead to filing for an IPO. However, if consummated, the company said it would file a registration document for approval by the U.S. Securities and Exchange Commission later this year.

    To qualify for MLP status, a partnership must generate at least 90 percent of its income from what the Internal Revenue Service deems "qualifying" sources. Those qualifying sources include activities related to the production, processing or transportation of oil, natural gas and coal.

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