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Calumet’s Superior refinery flagged for sale: Reuters
Posted on Friday, 17 March 2017 14:40
Calumet Specialty Products Partners could sell a refinery in Wisconsin for as much as USD 500.00 million, Reuters reported, despite the hydrocarbon-based products manufacturer flagging the Superior-based plant for a new crude oil flexibility project.
Sources with knowledge of the situation, who spoke on the condition of anonymity as the talks are private, told the news provider Tudor Pickering Holt & Co is sounding out interest in the facility able to process 45,000 barrels of crude oil per day.
Meanwhile, two other people familiar deals within this segment suggested Par Pacific Holdings, HollyFrontier and Suncor Energy could all be interested in tabling a bid as the Superior-based plant provides access to crude produced in North Dakota.
Founded in 1916, Indiana-based Calumet produces a full line of naphthenic and paraffinic oils, as well as aliphatic solvents and paraffin and microcrystalline waxes.
The group owns facilities mainly in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri, though it also has and leases out oilfield services locations in 13 states.
Its hydrocarbon-based products are sold to be used as raw material components for basic industrial, consumer and automotive goods, and blends and sells speciality items through four of its brands, including Royal Purple.
Calumet’s fuel segment process crude into gasoline, diesel, jet fuel, asphalt and heavy fuel oil, among others, while its oilfield division makes and sells drilling and completion fluids and solids control services to the oil and gas exploration industry.
The company, missed analyst estimates for fourth quarter earnings per share, spent last year cutting costs and streamlining its portfolio – which included the sale of Dakota Prairie Refining and getting rid of some third-party terminal agreements.
Calumet reported earnings before interest, tax, depreciation and amortisation of USD 158.20 million for the full year to 31st December 2016 (FY 2015: USD 139.40 million) and widened net loss to USD 328.60 million (FY 2015: USD 139.40 million loss).
At the same time the company noted if has approved and filed permit applications for a turnaround project at its Superior facility aimed at improving output.
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