Tesoro Selling Hawaii Refining Operations To Par Petroleum
Independent oil refiner refinery process of crude oil ppt 50 and marketer Tesoro has agreed to sell all of its Tesoro Hawaii assets to a wholly owned subsidiary of Par Petroleum (NASDAQOTCBB: PARR), the businesses announced yesterday.
The transaction will cost Par $75 million, plus the market value of Tesoro Hawaii’s net working capital — estimated to be between $225 million to $275 million — and as much as $40 million payable over three years based on consolidated gross margins. The sale, which the businesses say ought to be competed in the third quarter, is subject to regulatory approval, the successful restart of Tesoro Hawaii’s refinery, and other closing conditions.
Tesoro Hawaii reported gross 2012 revenue from its refining operations of $174 million on throughput of 68,000 barrels of crude per day. Revenue refinery process of crude oil ppt 50 for the primary quarter of 2013 showed $28 million on 67,000 barrels of throughput a day.
“While the Hawaii operations don’t align with our strategic focus, we believe they provide a great opportunity for Par Petroleum,” Tesoro CEO Greg Goff was quoted as saying. Tesoro told Hawaii state officials in May that it will lay off 165 workers at the Kapolei refinery. Those layoffs were set to begin this week after initial notices were sent out earlier this month.
Par said it will partly finance its acquisition by issuing $200 million of common stock it has valued at $1.39 per share, and it will borrow the remaining on a revolving credit basis from Deutsche Bank, Barclays, and the Bank of Hawaii.
— Material from The Associated Press was used in this report.
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