About Western Refining Logistics

Western Refining Logistics, LP (NYSE: WNRL) began trading on the New York Stock Exchange on October 10, 2013. Headquartered in El Paso, Texas, Western Refining Logistics is a fee-based, growth-oriented Delaware limited partnership formed  to own, operate, develop, and acquire terminals, storage tanks, pipelines, and other logistics assets.

Western Refining Logistics’ assets consist of pipeline and gathering assets and terminalling, transportation, and storage assets in the Southwestern portion of the U.S., including 705 miles of pipelines and approximately 12.4 million barrels of active storage capacity, as well as other assets. Most of our assets are integral to the operations of our El Paso and Gallup Refineries.

Assets and Operations

Pipeline and Gathering Assets

Our pipeline and gathering assets consist of approximately 705 miles of crude oil pipelines, gathering systems, and approximately 828,000 barrels of active crude oil storage located primarily in the Delaware Basin in the Permian Basin area of West Texas and southern New Mexico and in the Four Corners area in northwestern New Mexico. These assets serve as a key source of high quality, cost-advantaged crude oil for our El Paso and Gallup Refineries.

Terminalling, Transportation, and Storage Assets

Our terminalling, transportation, and storage assets consist of terminals and storage assets located on site at each of our El Paso and Gallup Refineries, and standalone refined products terminals located in Bloomfield and Albuquerque, New Mexico. These assets include approximately 6.9 million barrels of active shell storage capacity. These assets primarily receive, store, and distribute crude oil, feedstock, and refined products for our refineries. We also provide fee-based asphalt terminalling and processing services at an asphalt plant and terminal in El Paso and asphalt terminalling services at three stand-alone asphalt terminals located in Albuquerque, New Mexico and Phoenix and Tucson, Arizona, which have a combined storage capacity of approximately 473,000 barrels.

Business Objectives

Our primary business objectives are to maintain stable cash flows and to increase our quarterly cash distribution per unit over time. We intend to accomplish these objectives by executing the following strategies:

Generate Stable, Fee-Based Revenues

We are focused on generating stable and predictable cash flows by providing fee-based logistics services. Substantially all of our revenue will be derived from two 10-year, fee-based agreements, supported by minimum volume commitments and inflation adjustments. As we grow our business, we will seek to enter into similar contracts with third parties that generate stable and predictable cash flows, as well as increase volumes under our existing contracts.

Increase Utilization and Pursue Attractive Organic Growth Opportunities

We expect to realize increased throughput on our existing systems due to projected crude oil production growth in the Delaware Basin and Four Corners area and the continued ramp-up of our new gathering system in the Delaware Basin. We also intend to evaluate organic growth opportunities to increase utilization of our existing assets by, for example, adding gathering lines to connect new production to our mainline gathering lines. Additionally, we intend to take other steps to accommodate growth in our business as well as increased third-party activity in our existing areas of operations.

Grow Through Strategic Acquisitions

We plan to pursue accretive acquisitions of complementary assets from Western as well as third parties. In order to provide us with initial acquisition opportunities, Western will grant us a right of first offer to acquire certain logistics assets that it will retain following this offering, as well as additional assets that it may acquire or construct in the Permian Basin or the Four Corners area in the future. We believe we complement Western’s acquisition strategy by providing a specialized vehicle for owning, operating and acquiring logistics assets.

Maintain Safe, Reliable, and Efficient Operations

We are committed to maintaining and improving the safety, reliability, environmental compliance, and efficiency of our operations. We believe these objectives are integral to maintaining stable cash flows and are critical to the success of our business.