The purchase price of the Bakersfield transaction, including the acquisition of most of Big West's permitted Clean Fuels Project equipment, consists of $40 million in cash and an amount equal to the value of acquired inventory as of the closing date [image-nocss] of the transaction.
The Bakersfield refinery is located in California's Central Valley and has the capacity to refine up to 70,000 barrels per day (bpd) of crude oil. The refinery is supplied by crude oil produced in the San Joaquin Valley with its products marketed in California, and is a major provider of motor fuels in central California.
If the acquisition is successfully completed, the company said that it anticipates using certain equipment from Bakersfield at its other refineries and connecting the Bakersfield refinery by pipeline to its refinery in Paramount, Calif., so that vacuum gas oil may be sent from Paramount to Bakersfield for further processing.
Alon USA Energy, headquartered in Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the south central, southwestern and western regions of the United States. The company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 bpd. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the FINA brand at these locations and at approximately 640 distributor-serviced locations.
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