Alon Closes Edgington Oil Acquisition
Company will leverage additional crude capacity for growth
DALLAS -- Alon USA Energy Inc. said late last week that it has completed the acquisition of Edgington Oil Co., Long Beach, Calif.
With the completion of this acquisition, our crude throughput capacity rises to approximately 170,000 barrels per day [bpd], said Jeff Morris, Alon's president and CEO. We look forward to integrating the Edgington refinery with our recently acquired Paramount refineries and asphalt terminals, which will allow us to continue to grow by leveraging our expertise in refining heavy crudes and producing asphalt.
Following its initial public offering of stock a year ago, Alon was pegged as a company ripe for growth by industry watchers. That growth began in late March with the company's purchase of 55 stores from El Paso, Texas-based Good Time Stores Inc. This week's acquisition sets the stage for further retail growth as the company expands in its refining assets.
Alon purchased Edgington for a total consideration of approximately $52 million in cash plus an amount to be determined for the value of inventory.
The Edgington refinery is a topping refinery with a nameplate crude capacity of approximately 40,000 bpd. Using heavy crudes, the refinery can produce up to 24,000 bpd. The refinery is linked to other local refineries and pipeline systems, as well as to a pipeline to the Long Beach dock, which provides additional flexibility for sourcing crude outside California.
Alon USA Energy, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the southwestern and western regions of the United States. The company owns and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with crude oil throughput capacity of approximately 170,000 bpd.
Also, Alon markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt. Alon also operates more than 200 convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring, Texas, refinery.