Husky Agrees to Acquire US Midwest RefinerySource: www.gulfoilandgas.com 8/14/2017, Location: North America
Husky Energy has entered into definitive agreements to acquire the Superior Refinery, a 50,000 barrel per day permitted capacity facility located in Superior, Wisconsin from Calumet Specialty Products Partners, L.P. for $435 million US in cash. The deal is subject to customary closing adjustments.
“Acquiring the Superior Refinery will increase Husky’s downstream crude processing capacity, keeping value-added processing in lockstep with our growing production,” said CEO Rob Peabody. “Upon closing, this new asset will immediately contribute to increased earnings and funds from operations.”
The transaction accelerates Husky’s strategy, outlined at its 2017 Investor Day, to capture full value from the Company’s heavy oil production from Western Canada.
Husky plans to retain the approximately 180 workers at the refinery.
With the addition of the Superior refinery, Husky’s total downstream capacity will increase to approximately 395,000 barrels per day (bbls/day).
- Aligned with Husky’s Strategy to Capture Full Value From its Growing Heavy Oil Production
• Direct connectivity to the Company’s pipeline terminal in Hardisty, Alberta via the Enbridge Mainline
• Allows further margin capture from heavy/light oil differential
• Increases existing Husky storage assets in Superior
• Enhances U.S. market access with total U.S. refining capacity increasing to 275,000 bbls/day
- Strong Economics
• Immediately accretive to earnings and funds from operations
• To be funded from cash on hand and existing credit facilities
• At close, pro forma net debt and debt metrics expected to remain below two times net debt to funds from operations (12 month trailing)
- Accelerates Husky’s Asphalt Strategy
• Adds immediate asphalt production and will provide additional capacity once in-flight projects are completed in 2018
• Enhances the Company’s ability to capitalize on growing asphalt demand associated with increasing infrastructure spending across North America
• An investment decision to expand asphalt capacity in Lloydminster will be deferred to post-2020 and will be considered again as heavy oil production grows
- Strategically Flexible Asset
• Experienced and capable operations team with an established base of customers
• Capable of processing Canadian heavy, or medium and light grades from Canada and the Bakken
The transaction is subject to regulatory approval and closing adjustments and is expected to close in the fourth quarter of 2017. BMO Capital Markets acted as financial advisor and Milbank LLP acted as legal advisor to Husky.
The Superior Refinery has a permitted throughput capacity of 50,000 bbls/day. It currently produces approximately 9,000 bbls/day of asphalt, 17,500 bbls/day of gasoline and 10,900 bbls/day of diesel, as well as heavy fuel oils. The transaction includes the acquisition of the refinery’s associated logistics, including two asphalt terminals, 3.6 million barrels of crude and product storage and a fuels and asphalt marketing business.
Oil Treating & Refining News in United States >>
Iran >> 1/7/2018 - Construction of a gas refinery belonging to phases 22 to 24 of the supergiant South Pars Gas Field has made 91% progress, operator of the phases' deve...
Iran >> 12/26/2017 - Following the provision of 70 percent of the country’s gas basket, supportive and operation deputy announced that pars oil and gas company has full re...
Russia >> 12/25/2017 - The Gazprom Neft Omsk Refinery has now completed construction of its 1.2 million tonne per year capacity automated railcar oil-products loading facili...
Libya >> 1/7/2000 - National Oil Corporation is pleased to announce the successful conclusion of arbitration brought against NOC in front of ICC Court in Paris by Trasta ...
Fluids Drilling, Completion, Workover & Stimulation
Gasoline (Lead free)
Kerosene. Domestic use
Lubricants, Oils & Greases
Oil Treating & Refining
Related Articles: Aromatic Solvents Butene Cleaning Corrosion Inhibiting Crude Oil Diesel Fuel Ethylene Fluids Drilling, Completion, Workover & Stimulation Fluids/Chemicals Fracturing Sand Fuel oil Gasoline (Lead free) General Jet fuel Kerosene. Domestic use Lubricants, Oils & Greases Nitrogen Oil Treating & Refining Polyethylene Polyvinyl chloride Propane Sand, Sandblast Surfactants
|United States Oil & Gas 1 >> 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 ||