Texas-based oil refinery company Par Pacific has closed the acquisition of U.S. Oil & Refining and some affiliated entities for $358m.
Par Pacific stated that the transaction was financed by $250m term loan, $45m loan funded by Bank of Hawaii (BOH) along with about 2.4 million shares of its shares. The acquisition was announced in late November last year.
The transaction includes 42,000 barrels per day (bpd) refinery, a marine terminal, a unit train-capable rail loading terminal, and 2.9 million barrels (MMbbls) of refined product and crude oil storage. The refinery and associated logistics system are strategically located in Tacoma, Washington and currently serve the Pacific Northwest market.
At the time of announcement of the transaction, Par Pacific president and CEO William Pate said: “This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification.
“We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of U.S. Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earnings and cash flow growth.”
U.S. Oil’s refinery is located on a piece of 139 acres of land near Tacoma. This refinery is claimed to have the flexibility to optimize its crude slate based on market conditions.
Currently, discounted Bakken and Cold Lake crude represent more than 95% of its current crude slate.
The company’s logistics assets include 2.9 MMbbls of storage capacity, a proprietary 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train rail facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms. The assets offer connectivity to Bakken, Canadian and Alaskan crude and Pacific, West Coast, Pacific Northwest and Rockies product markets.
Upon closing of the transaction, Pate said: “We are pleased to close the U.S. Oil transaction, which balances our Pacific and mainland market exposure.
“We expect the transaction to be immediately accretive to our 2019 earnings and cash flow. We would like to take this opportunity to welcome our new colleagues to the Par Pacific organization.”