Calumet Specialty Products Partners, Announces Agreement to Acquire Superior, Wisconsin Refinery Assets from Murphy Oil Corp

abarrelfullabarrelfull wrote on 26 Jul 2011 05:15
Tags: calumet deals murphy refinery usa

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Calumet Specialty Products Partners, L.P. (the "Partnership" or "Calumet") (NASDAQ: CLMT) announced today that it has signed a definitive agreement to acquire the Superior, Wisconsin refinery and associated operating assets and inventories (the "Superior Assets") of Murphy Oil Corporation (NYSE: MUR) for total consideration of approximately $475 million, subject to customary purchase price adjustments (the "Superior Acquisition"). Closing of the transaction is expected to close by the end of the third quarter, subject to customary closing conditions and regulatory approval.

The Superior refinery produces gasoline, distillate, asphalt and specialty petroleum products that are marketed in the Midwest region of the United States, as well as into Canada and surrounding border states. The Superior Assets include inventories valued at approximately $260 million as of June 30, 2011 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 of fuel and asphalt products through various owned and leased terminals; and
  • Crude oil feedstocks sourced from northern U.S. and Canada.
  • "We are pleased to announce our largest acquisition or expansion since our initial public offering," said Calumet's Vice Chairman and Chief Executive Officer Bill Grube. "We expect the acquisition to be immediately accretive to distributable cash flow."

Mr. Grube added, "The Superior refinery acquisition provides us greater scale and development potential to our refining business. The acquired assets will increase our current throughput capacity by 50% to approximately 135,000 barrels per day and will add beneficial geographical diversity to our assets."

The Partnership intends to finance the Superior Acquisition primarily through a combination of equity and long-term debt, with the timing of such financing depending on market conditions. The Partnership will have the ability to supplement these sources through borrowings under its revolving credit facility to the extent appropriate. The Partnership's obligation to consummate the Superior Acquisition is not conditioned upon the receipt of financing.

Latham & Watkins LLP is acting as legal counsel to Calumet.

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