Calumet Sells San Antonio Refinery for $63MM; Lazarus Energy to Operate
Calumet Sells San Antonio Refinery for $63MM; Lazarus Energy to Operate
Calumet Specialty Products Partners has closed on the sale, effective Nov. 1,
of its 21,000-b/d oil refinery and related assets in San Antonio, Texas, the
master limited partnership (MLP) announced Monday.
The buyer, at $63 million in cash, is Starlight Relativity Acquisition Company
LLC. The refinery will be operated by Lazarus Energy Holdings which operates
the 15,000-b/d crude distillation facility in Nixon, Texas, owned by Blue
Dolphin Energy Co.
The related assets include a pipeline and a 250,000-bbl crude oil terminal in
Elmendorf, Texas. Crude storage capacity at the San Antonio refinery is
also250,000 bbl. The refinery currently produces LPG, naphtha, regular and
premium gasoline, commercial and military jet fuel, ultra-low-sulfur diesel and
atmospheric tower bottoms. The plant processes crude oil and condensate
primarily from the Eagle Ford basin.
In a related transaction, Calumet entered into a settlement and release
agreement with TexStar Midstream Logistics LP that settles all outstanding
litigation between the parties which will result in a release of a $38 million
balance sheet liability.
The "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," Tim Go, chief executive officer, said in a
statement.
Over the last few years, Calumet has sold its refineries in Wisconsin
(Superior) and North Dakota (Dickinson). In September, the MLP amended its
borrowing facility and increased its funding from banks by about $100 million,
a renegotiation that included putting the assets of its Great Falls, Mont.,
refinery up as collateral.
Indianapolis, Ind.-based Calumet is an MLP and a producer of specialty
hydrocarbon products in North America. It processes crude oil and other
feedstocks into customized lubricating oils, solvents and waxes used in
consumer, industrial and automotive products and also produces fuels such as
gasoline, diesel and jet fuel. Calumet operates 10 manufacturing facilities
located in northwest Louisiana, northern Montana, western Pennsylvania, Texas,
New Jersey and eastern Missouri.
Calumet will report its third-quarter earnings on Nov. 12.
--Beth Heinsohn, bheinsohn@opisnet.com
Copyright, Oil Price Information Service
of its 21,000-b/d oil refinery and related assets in San Antonio, Texas, the
master limited partnership (MLP) announced Monday.
The buyer, at $63 million in cash, is Starlight Relativity Acquisition Company
LLC. The refinery will be operated by Lazarus Energy Holdings which operates
the 15,000-b/d crude distillation facility in Nixon, Texas, owned by Blue
Dolphin Energy Co.
The related assets include a pipeline and a 250,000-bbl crude oil terminal in
Elmendorf, Texas. Crude storage capacity at the San Antonio refinery is
also250,000 bbl. The refinery currently produces LPG, naphtha, regular and
premium gasoline, commercial and military jet fuel, ultra-low-sulfur diesel and
atmospheric tower bottoms. The plant processes crude oil and condensate
primarily from the Eagle Ford basin.
In a related transaction, Calumet entered into a settlement and release
agreement with TexStar Midstream Logistics LP that settles all outstanding
litigation between the parties which will result in a release of a $38 million
balance sheet liability.
The "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," Tim Go, chief executive officer, said in a
statement.
Over the last few years, Calumet has sold its refineries in Wisconsin
(Superior) and North Dakota (Dickinson). In September, the MLP amended its
borrowing facility and increased its funding from banks by about $100 million,
a renegotiation that included putting the assets of its Great Falls, Mont.,
refinery up as collateral.
Indianapolis, Ind.-based Calumet is an MLP and a producer of specialty
hydrocarbon products in North America. It processes crude oil and other
feedstocks into customized lubricating oils, solvents and waxes used in
consumer, industrial and automotive products and also produces fuels such as
gasoline, diesel and jet fuel. Calumet operates 10 manufacturing facilities
located in northwest Louisiana, northern Montana, western Pennsylvania, Texas,
New Jersey and eastern Missouri.
Calumet will report its third-quarter earnings on Nov. 12.
--Beth Heinsohn, bheinsohn@opisnet.com
Copyright, Oil Price Information Service
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