Murphy Oil completes US refinery sale to Calumet
Calumet Specialty Products has completed its previously-announced acquisition of Murphy Oil’s refinery and associated operating assets and inventories in Superior, Wisconsin, for about $442 million, subject to post-closing purchase price adjustments.
The Superior assets provide greater scale, geographic diversity and development potential to Calumet's refining business, as Calumet's current total refining throughput capacity will increase by 50% to 135,000 bpd, it said.
The Superior refinery produces gasoline, diesel, asphalt, bunker fuel and specialty petroleum products that are marketed in the Midwest region of the US, including the surrounding border states, and Canada.
The Superior assets include inventories valued at approximately $220 million as of August 31, 2011 and various owned and leased finished product terminals.
Highlights of the Superior assets include the following:
- Refinery crude oil throughput capacity of approximately 45,000 bpd;
- Refinery complexity rating of 8.9;
- Distribution network for fuel and asphalt products operated through various owned and leased terminals located in Wisconsin, Minnesota and Utah; and
- Crude oil feedstocks sourced from the northern US and Canada.
The Superior acquisition was financed with the September 2011 issuances of approximately $193 million of Calumet's common units and general partner units and approximately $180 million of Calumet's senior unsecured notes due 2019 and with borrowings of approximately $69 million under Calumet's revolving credit facility.
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