Par Pacific Holdings Inc. has that it has entered into a definitive agreement to acquire Hermes Consolidated LLC for approximately US$271.4 million, including the assumption of US$58 million of indebtedness. No additional consideration will be paid for the working capital associated with the operations.
Wyoming Refining owns and operates the 18 000 bpd Newcastle, Wyoming refinery and related logistics assets.
"This acquisition fits perfectly with our previously disclosed acquisition strategy by utilising our tax attributes and capital sources to build on our refining and logistics capabilities," said William Pate, Par Pacific's President and Chief Executive Officer. "The refinery enjoys attractive crude oil sourcing given its proximity to robust Powder River Basin production, pipeline connectivity to a niche refined products market, and a gasoline-oriented yield in a market with significant summer gasoline needs. The logistics infrastructure provides strategic access to crude and refined products markets, which we expect will generate stable cash flows and contribute to our Logistics segment profitability."
The transaction includes the 140 mile Thunder Creek crude oil gathering system in northeast Wyoming that sources crude oil from the Powder River Basin, which is connected to the Butte pipeline. The transaction includes a 40 mile clean products pipeline system that serves the Rapid City markets.
The Thunder Creek gathering system is located within 20 miles of major drilling and development areas in the Powder River Basin.
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/refining/15062016/par-pacific-holdings-to-acquire-wyoming-refining/