Valero Energy to Purchase Murphy′s Meraux Refinery
Valero Energy Corporation (NYSE: VLO) announced today that it has agreed
to acquire Murphy Oil USA Inc.′s Meraux, La. refinery and related
logistics assets for $325 million plus inventories currently estimated
at approximately $300 million. The transaction is expected to be
accretive to earnings upon closing. Valero plans to fund the transaction
from available cash, and the transaction is expected to close in the
fourth quarter of 2011, subject to regulatory approvals.
The Meraux refinery has a total throughput capacity of 135,000 barrels
per day with a 34,000 bpd hydrocracker and significant hydroprocessing
capacity, which gives the refinery the ability to process medium sour
crude and produce significant yields of premium products. The plant has
a dock on the Mississippi River and pipeline capability to Collins,
Miss. On the river, the distance is only about 40 miles from the Valero
St. Charles Refinery.
'Our plan is to integrate feedstocks and refined product blending with
the St. Charles refinery, especially as our new 60,000 bpd hydrocracker
is completed at St. Charles,? said Valero Chairman and CEO Bill Klesse.
'The Meraux refinery adds more hydroprocessing capacity to our
portfolio. It′s the right hardware in the right place.?
In addition to the refinery, the purchase price includes an adjacent
product terminal, a 20 percent equity interest in the Collins Product
Pipeline and T&M terminal, and a 3.2 percent interest in the Louisiana
Offshore Oil Port (LOOP).
About Valero:
Valero Energy Corporation, through its subsidiaries, is an
international manufacturer and marketer of transportation fuels, other
petrochemical products and power. Valero assets include 15 petroleum
refineries with a combined throughput capacity of approximately 2.9
million barrels per day, 10 ethanol plants with a combined production
capacity of 1.2 billion gallons per year, and a 50-megawatt wind farm.
Valero is also one of the largest retail operators with approximately
6,800 retail and branded wholesale outlets under the Valero, Diamond
Shamrock, Shamrock and Beacon brands in the United States and the
Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and
Ireland. Based in San Antonio, Valero is a Fortune 500 company with
approximately 20,000 employees. Please visit www.valero.com
for more information.
Safe Harbor Statement:
Statements contained in this release that state the Company's or
management's expectations or predictions of the future are
forward-looking statements intended to be covered by the safe harbor
provisions of the Securities Act of 1933 and the Securities Exchange Act
of 1934. The words 'believe,' 'expect,' 'should,' 'estimates,' and other
similar expressions identify forward-looking statements. It is important
to note that actual results could differ materially from those projected
in such forward-looking statements. For more information concerning
factors that could cause actual results to differ from those expressed
or forecasted, see Valero's annual reports on Form 10-K and quarterly
reports on Form 10-Q, filed with the Securities and Exchange Commission,
and available on Valero's website at www.valero.com.
Valero Energy Corporation, San Antonio
Investors, Ashley Smith,
Vice President,
Investor Relations: 210-345-2744
or
Media,
Bill Day, Executive Director, Media Relations:
210-345-2928
Website:
http://www.valero.com/
