Marathon to buy BP Texas City refinery for up to $2.5 billion

HOUSTON, Mon Oct 8, 2012 – Marathon Petroleum Corp. struck a deal to buy BP Plc’s Texas City refinery and related infrastructure for up to $2.5 billion, a purchase that will make Marathon the fourth-largest U.S. refiner and give it a bigger potential slice of the market for refined product exports.

Marathon said on Monday it had agreed to buy the 451,000-barrels-per-day refinery, the fifth-largest in the country, as well as the plant’s inventory, three intrastate natural gas liquids pipelines, four terminals and other assets.

The news sent shares in Marathon to a record high of $60.04 on the New York Stock Exchange. Since the stock began trading in June 2011, it has risen nearly 50 percent.

The base purchase price is $598 million, plus inventories estimated at $1.2 billion, Marathon said.

The agreement also contains a provision to pay up to $700 million more over six years, depending on the refinery’s profitability.

“The multiple is cheap, that’s why the shares of Marathon are up,” said Pavel Molchanov, an analyst with Raymond James. “Texas City has a rather complicated history and that alone has made the valuation of this deal lower than it would have been otherwise.”

The Texas City refinery was the site of a 2005 explosion, one of the worst industrial accidents in U.S. history. The blast killed 15 workers, injured 180 others and cost BP more than $3 billion to settle lawsuits and pay fines.

Tesoro to buy BP refinery, related assets for $2.5 billion

CARSON, Calif., Mon Aug 13, 2012 – Tesoro Corp. said it would buy BP Plc’s refinery here and related assets for about $2.5 billion.

Independent refiner Tesoro said on Monday that it would pay $1.18 billion for BP’s refining and marketing business in Southern California, plus the value of the refinery’s inventory at the time of closing. At current prices, the inventory is valued at about $1.3 billion.

The 266,000-barrel-per-day, high complexity refinery is located south of Los Angeles. The deal also includes a retail marketing network of about 800 dealer-operated gas stations, ownership of BP’s Arco brand, 51 percent ownership in a company-operated 400 megawatt cogeneration facility, and other assets.

Tesoro, which expects the deal to close before mid-2013, said it planned to pay for the purchase with debt and cash generated by dropping some of the assets to its master limited partnership, Tesoro Logistics LP.

BP had said in late July that it was in advanced talks on the sale of the Carson plant, as well as its Texas City, Texas, refinery.

BP announced in February 2011 that it would sell the refineries by the end of 2012 as the company reorients its U.S. refining operations to take advantage of Canadian crude supplies.

BP’s North American products division, which oversees its U.S. refineries, will wrap up a three-year probation term this month stemming from the 2005 explosion that killed 15 people and injured many more.

Energy Transfer Partners to buy Sunoco for $5.3 billion

TULSA, Okla., Mon Apr 30, 2012 – Pipeline operator Energy Transfer Partners LP said it will buy Sunoco Inc. for $5.3 billion in stock and cash to get into the more lucrative crude oil transportation business as natural gas prices stay weak.

Oil and gas production from shale formations in the United States has surged over the past two years, creating a scramble to build infrastructure to get supplies to refining hubs.

The resulting oversupply has sent natural gas prices to their lowest in a decade and made drilling in so-called “dry gas” fields uneconomical.

“As we have said in the past year, our goal is to derive more of our distributable cash flow from the transportation of heavier hydrocarbons like crude oil, NGLs (natural-gas liquids), and refined products,” Energy Transfer CEO Kelcy Warren said in a statement.

Sunoco shareholders will receive $25 in cash and 0.5245 Energy Transfer units, or $50.13, for every share they own.

The offer represents a 22.5 percent premium to Sunoco’s Friday close of $40.91 on the New York Stock Exchange.

Sunoco, which was once a major independent refiner in the Northeastern United States, plans to end nearly 120 years in the U.S. refining business as high crude prices and slumping demand squeeze profits.

Sunoco, which plans to get out of the refining business, said it will continue talks with private equity firm Carlyle Group LP for a joint venture to run its 335,000-barrel-per-day Philadelphia refinery.

A deal with Carlyle would save the refinery, the biggest on the U.S. East Coast, from a planned closure and ease concerns about potential fuel shortage on the East Coast this summer.

Energy Transfer said the Sunoco deal would immediately add to its distributable cash flow and change the cash flow mix of its pipeline businesses to about 70 percent natural gas and 30 percent liquids.

Conoco extends Trainer sale deadline due to interest

NEW YORK, Wed Mar 28, 2012 – ConocoPhillips said on Wednesday it had extended the sale deadline for its 187,000-barrels-per-day refinery in Trainer, Pennsylvania to the end of May because of recent interest from potential buyers.

“Due to recent interest from potential buyers, we are extending the sales process deadline to the end of May to allow more time for discussions to take place,” said Rich Johnson, a spokesman for the company.

ConocoPhillips shut the refinery late last September and put it up for sale. The original sales deadline was March 31.

Calumet completes refinery acquisition from Murphy Oil Corp.

INDIANAPOLIS, Ind. ― Calumet Specialty Products Partners L.P. has completed the acquisition of the Superior, Wisc., refinery and associated operating assets and inventories of Murphy Oil Corp. for aggregate consideration of about $442 million, subject to customary post-closing purchase price adjustments.

The refinery assetsw provide greater scale, geographic diversity and development potential to Calumet’s refining business, as Calumet’s current total refining throughput capacity will increase by 50 percent to 135,000 barrels per day.

The Superior refinery produces gasoline, diesel, asphalt, bunker fuel and specialty petroleum products that are marketed in the Midwest region of the United States, including the surrounding border states and Canada. The Superior Assets include inventories valued at $220 million and various owned and leased finished product terminals.

Highlights of the Superior Assets include the following:

Refinery crude oil throughput capacity of approximately 45,000 barrels per day;

Refinery complexity rating of 8.9;

Distribution network for fuel and asphalt products operated through various owned and leased terminals located in Wisconsin, Minnesota and Utah; and

Crude oil feedstocks sourced from the northern U.S. and Canada.