SAN ANTONIO -- Valero Energy Corp. has again been rated is the No. 1 out of 33 companies as the best big company to work for in Fortune magazine's annual ranking. It came in first place last year, as well. Among the reasons for winning the top slot are that Valero makes its corporate jet available for employees with medical emergencies, and it covers 100% of health insurance premiums.
The most common salaried job at Valero is retail store manager, said the report. The average pay in that job is $97,730, according to the magazine.
Meanwhile, Valero has agreed to sell its 85,000-barrel-per-day [image-nocss] refinery in Krotz Springs, La., to Alon USA Energy Inc. for $333 million plus an earn-out provision currently valued in excess of $100 million. Both companies' boards have approved the transaction, and the sale is expected to close in July 2008, subject to regulatory approvals. The transaction will also include working capital at the refinery, which will be valued at market prices at closing.
"The Krotz Springs refinery is a good fit for Alon, and this transaction is a good deal for Valero's stockholders," said Bill Klesse, Valero's chairman and CEO. "This transaction is consistent with our strategy to concentrate on our core refineries where we see higher returns for the long run. Alon is a high-quality company that will benefit the great group of dedicated employees at this refinery as well as the community of Krotz Springs."
David Wiessman, executive chairman for Dallas-based Alon USA, said, "Krotz Springs refinery, which is being acquired at an attractive price, increases our refining capacity by 50%, reduces our risk profile and enhances our strategic objective to grow the company and provides a new platform for our integrated business model."Jeff Morris, Alon's president and CEO, added, "We believe we can further improve operations at the refinery with minimal costs and we plan to upgrade the refinery to produce low-sulfur diesel…. We anticipate the existing management team to remain at the refinery following closing of the transaction, which we believe will facilitate the integration of Krotz Springs into our refinery portfolio under our current corporate infrastructure."The Krotz refinery is strategically located with the majority of its crude supply originating from two major pipelines and has a crude storage capacity of 665,000 barrels.
Valero, based in San Antonio, has approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under brand names including Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon.
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