DALLAS --Alon USA Energy Inc. has announced that it has closed on its previously announced acquisition of Paramount Petroleum Corp. with an effective date of July 31, 2006. The purchase price was approximately $314 million in cash and approximately $150 million in assumed net debt with excess working capital of $50 million.
We are very happy to expand our refining capacity with the acquisition of Paramount. We have added 66,000 barrels per day (bpd) of heavy crude West Coast refining capacity and seven asphalt terminals to our company, said Jeff Morris, [image-nocss] Alon's president and CEO. Paramount's refinery in the Los Angeles area has recently been upgraded to produce Carb Diesel and Carbob Gasoline. We believe our fuels experience and operational capabilities will provide Alon with significant future growth opportunities.
The Paramount transaction includes:
Paramount's 54,000-bpd refinery in Paramount, Calif. Paramount's 12,000-bpd heavy crude refinery in Portland, Ore. Paramount's seven asphalt terminals located in Seattle; Elk Grove and Mojave, Calif.; Fernley, Nev.; Phoenix, Fredonia and Flagstaff, Ariz. Paramount's 50% interest in Wright Asphalt Products Co., which specializes in patented tire rubber modified asphalt products that are provided in six terminals.
Alon USA Energy, Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the southwestern and western regions of the United States. It owns and operates three oil refineries in Texas, California and Oregon, with crude oil throughput capacity of 136,000 bpd. It markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt. The company 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.
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