From: PR NewsWire
-- PBF becomes fourth largest independent refiner
-- 155,000 barrel per day high-complexity, coking refinery in PADD 5
-- Attractive MLP assets including ownership interests in several crude gathering and transportation pipelines, product pipelines, products terminals and crude and products storage facilities
-- 155,000 barrel per day high-complexity, coking refinery in PADD 5
-- Attractive MLP assets including ownership interests in several crude gathering and transportation pipelines, product pipelines, products terminals and crude and products storage facilities
06:30 ET
from PBF Energy Inc.
PARSIPPANY, N.J., July 1, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that its subsidiary completed its acquisition of the 155,000 barrel-per-day Torrance
refinery, and related logistics assets, from ExxonMobil. With the
acquisition, PBF increased its total throughput capacity to
approximately 900,000 barrels per day and becomes the fourth largest
independent refiner in North America. The purchase price for the assets was $537.5 million, plus working capital. PBF financed the transaction with a combination of cash, including proceeds from its $350 million public equity offering in October of 2015, and borrowings under its existing revolving credit facility.
"We welcome Torrance's professional workforce to the PBF family," said PBF's Executive Chairman and Chief Executive Officer Tom Nimbley.
"Together, we are committed to the orderly transition of ownership and
the safe, reliable, and environmentally responsible operation of the Torrance refinery and logistics assets."
Nimbley continued, "We are excited to increase our geographic diversity with a complex refinery like Torrance
in the dynamic West Coast fuels market. With this acquisition, PBF has
increased our throughput capacity by more than 60 percent within the
past year, adding significant earnings potential to PBF Energy and
future growth opportunities for PBF Logistics."
The Torrance refinery, located on 750 acres in Torrance, California,
is a high-conversion 155,000 barrel per day, delayed-coking refinery
with a Nelson Complexity Index of 14.9. The facility is strategically
positioned in Southern California
with advantaged logistics connectivity that offers flexible raw
material sourcing and product distribution opportunities primarily to
the California, Las Vegas and Phoenix area markets.
In addition to the refinery,
the transaction includes a number of high-quality logistics assets
including a sophisticated network of crude and products pipelines,
product distribution terminals and refinery crude and product storage
facilities. The most significant of the logistics assets is a 171-mile
crude gathering and transportation system which delivers San Joaquin Valley
crude oil directly from the field to the refinery. Additionally,
included in the transaction are several pipelines that provide access to
sources of crude oil including the Ports of Long Beach and Los Angeles, as well as clean product outlets with a direct pipeline supplying jet fuel to the Los Angeles airport. The refinery also has crude and product storage facilities with approximately 8.6 million barrels of shell capacity.
Forward-Looking Statements
Statements in this press
release relating to future plans, results, performance, expectations,
achievements and the like are considered "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, without limitation, the
company's expectations with respect to the acquisition; the company's
post-acquisition plans, objectives, expectations and intentions with
respect to future earnings and operations. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors, many of which may be beyond the company's control, that may
cause actual results to differ materially from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Factors and uncertainties that may cause actual results to
differ include but are not limited to the risks described above, and the
risks disclosed in the company's filings with the SEC. All
forward-looking statements speak only as of the date hereof. The company
undertakes no obligation to revise or update any forward-looking
statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE: PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey
and Ohio. Our mission is to operate our facilities in a safe, reliable
and environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the communities
where we do business, and provide superior returns to our investors.
PBF Energy Inc. also
currently indirectly owns the general partner and approximately 49.5% of
the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
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