Calumet Specialty Products Partners, LP has announced that it has closed on the sale of its San Antonio, Texas refinery and related assets including a crude oil terminal and pipeline to Starlight Relativity Acquisition Co. LLC with an effective date of 1 November 2019. Starlight agreed to pay US$63 million in cash for the plant, property and equipment, plus adjustments for net working capital, inventories and post-closing amounts. In a related transaction, Calumet entered into a settlement and release agreement with TexStar Midstream Logistics, LP settling all outstanding litigation between the two parties which will result in the release of a US$38 million balance sheet liability.
“The divestment of the San Antonio refinery represents another step forward in Calumet’s strategic transformation,” said Tim Go, CEO of Calumet. “This transaction further de-levers Calumet’s balance sheet, reduces earnings volatility by lowering our exposure to fuels refining, and allows the Partnership to focus its time and capital more intently on our higher-return core Specialty Products business.”
Go concluded, “I want to thank our employees at San Antonio for their continued hard work and dedication, particularly this past year where they have delivered significant improvement to both our operational and financial performance. These step-change improvements made this transaction a win for our employees, Calumet, Starlight and the community, and we are pleased to see that the San Antonio refinery and its employees have found a new home for the long-term.”
The San Antonio refinery has permitted capacity of 21 000 bpd, processing crude oil and condensate primarily from the Eagle Ford basin. The refinery currently produces LPG, naphtha, regular and premium gasoline, commercial and military jet fuel, ultra-low sulfur diesel and atmospheric tower bottoms. There are approximately 250 000 bbl of storage capacity at the refinery and 200 000 bbl of additional crude oil storage capacity at a crude oil terminal located in Elmendorf, Texas.
Read the article online at: https://www.tanksterminals.com/terminals/13112019/calumet-closes-sale-of-refinery-and-terminal/