PBF Energy Inc. has announced that its subsidiary completed its acquisition of the 155 000 bpd Torrance refinery, and related logistics assets, from ExxonMobil. With the acquisition, PBF increased its total throughput capacity to approximately 900 000 bpd and becomes the fourth largest independent refiner in North America. The purchase price for the assets was US$537.5 million, plus working capital. PBF financed the transaction with a combination of cash, including proceeds from its US$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 OfficerTom 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% 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 bpd, 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 bbls of shell capacity.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/04072016/pbf-energy-completes-acquisition-of-torrance-refinery-3633/