Western Refining

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Western Refining, Inc.
Type Public
Traded as NYSEWNR
S&P 500 Component
Industry Oil
Founded 1997
Headquarters El Paso, Texas, USA
Number of locations 4 Oil refineries, 458 retail locations[1]
Area served United States
Mexico
Key people Paul L. Foster (Chairman of the Board)
Products Refined products
Production output Crude oil
Services Convenience stores
Service stations
Revenue Increase $ 10.1 billion (2013).[2]
Operating income Decrease $ 571.9 million (2013)[3]
Net income Decrease $ 299.6 million (2013)>[4]
Total assets Increase $ 5.52 billion (2013)>[5]
Total equity Increase $ 904.4 million (2013)[6]
Employees 6,400
Subsidiaries Western Refining Logistics
Website WNR.com

Western Refining Company, L.P. is a Texas-based Fortune 300[7] crude oil refiner and marketer operating primarily in the Southwestern, North-Central and Mid-Atlantic regions of the United States. Western Refining (WNR) has been publicly traded on the New York Stock Exchange since January, 2006 and is the fourth largest publicly traded independent refiner and marketer in the nation.[8]

The company is headquartered in El Paso, Texas; its refineries are located in El Paso, Gallup, New Mexico and St. Paul Park, Minnesota. These refineries have a combined crude oil processing capacity of approximately 242,500 barrels per day (38,550 m3/d).[9] A majority of products produced at these refineries are light products, consisting of gasoline, diesel fuel, and jet fuel. All four refineries have truck loading terminals. The El Paso refinery delivers to a number of other markets via pipeline.[10]

Western Refining owns and operates a wholesale division that works in conjunction with the refining operations. Through the refineries and these affiliated companies, Western Refining serves a broad customer base in Arizona, California, Colorado, Minnesota, Nevada, New Mexico, western Texas, Utah, Wisconsin, northern Chihuahua, Mexico, and the central East Coast region.[11]

History[edit]

The El Paso, Texas refinery was originally two refineries across from each other on Trowbridge Avenue, one operated by Texaco, the other, larger, by Chevron Oil. In 1997 the company Refinery Holding was formed to manage the refineries; it purchased them outright in 2000. Western Refining purchased a pipeline system from Chevron capable of delivering 115,000 barrels of crude oil per day. In 2006 it became a publicly traded company on the New York Stock Exchange.[12]

In August 28, 2006, Western Refining bought Giant Industries (GI) for $1.23 billion in cash, creating the fourth-largest publicly traded independent oil refiner in the USA. The combined company created the capacity to handle about 216,000 barrels a day from four refineries, about 84% more than Western's current capacity at the time.[13]

In November 12, 2013, Western acquired ACON Investments and TPG’s ownership interests in Northern Tier Energy LP(NTI) for $775 million. This acquisition includes the St. Paul Park Refinery increasing Western’s refining barrel capacity by 89,500 barrels per day. It also acquires pipeline access to Bakken and Canadian crude oil plus product terminals, storage tanks, rail facilities and Mississippi river dockage. The company will also own retail assets that include SuperAmerica retail channel of 163 company operated and 74 franchised convenience stores.[14]

In addition to its refineries, Giant Industries, based in Scottsdale, Ariz., owned a crude-oil-gathering pipeline system based in Farmington, N.M., a fleet of crude-oil and finished-product truck transports and a chain of retail service stations and convenience stores in New Mexico, Colorado and Arizona.

Current capacity[edit]

Main refinery in El Paso

The current capacity of the El Paso refinery is 128,000 barrels per day. An expansion is in the planning stages for 2013/2014 to increase capacity to 150,000 barrel per day.[15] The refinery near Gallup, New Mexico has a capacity of 26,000 barrels per day after an expansion during 2012. Western Refining also owns a refinery in Bloomfield, New Mexico but it's currently closed.

Western Refining sold the Yorktown terminal and refinery as well as a segment of an oil pipeline in New Mexico to subsidiaries of Plains All American Pipeline Co for approximately $220 million. The company retained its East Coast wholesale business and continued to market petroleum products in the Mid-Atlantic region, but focused its refining and most of its wholesale, retail, and marketing operations in the US Southwest.[16] With the purchase of the St. Paul Park refinery, Western's total capacity is of approximately 242,500 barrels per day (38,550 m3/d).

Terminals and other locations[edit]

Western Refining has refined products terminals in Albuquerque and Bloomfield, New Mexico and Yorktown, Virginia, asphalt terminals in Phoenix and Tucson, Arizona, Albuquerque, and El Paso. It also has a fleet of crude oil and finished product truck transports, and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas, Utah, Virginia and Maryland.[17]

Retail[edit]

Howdy's convenience store, part of Western Refining's retail services

Western owns and operates more than 450 convenience stores and gas stations located in Arizona, Colorado, Minnesota, New Mexico, Texas, and Wisconsin.[18] The company markets under its own brands of Giant, Mustang, Sundial, and SuperAmerica, plus a number of locations feature the brands of other oil companies. They also license Western branded fuel to other retail stores.[19] Western both purchases oil from the Mexican parastatal Pemex and sells refined oil products back to buyers in Mexico.

Western Refining Logistics[edit]

In July 2013 Western Refining hoped to raise $287.5 million in a public stock offering for its recently formed pipeline and storage subsidiary, Western Refining Logistics (WNRL). The subsidiary, formed as a limited partnership, will operate, develop, and acquire terminals, storage tanks, pipelines and other logistic assets, the company reported in a filing with the U.S. Securities and Exchange Commission. It now has 300 miles of crude oil pipelines and gathering systems, and storage and terminal facilities for crude oil and fuel in West Texas and New Mexico.[19]

The bulk of the money raised from the stock offering would go to the parent Western Refining to reimburse the company for the assets used to form the logistics company, Western reported in its filing. It would use $50 million of the money raised for general partnership purposes, it reported.

The logistics company will initially get all revenue through a 10-year, fee-based agreement with the parent Western Refining for pipeline, terminal and storage services it reported. The fees are expected to total almost $120 million next year, or 92 percent of its forecasted annual revenues of almost $131 million.

External links[edit]

References[edit]

  1. ^ "Western Refining to Grow Its Retail Business -". Convenience Stores News. Retrieved 2013-08-25. 
  2. ^ "Western Refining Reports Fourth Quarter and Full Year 2013 Results - MarketWatch". 2014-02-27. Retrieved 2014-04-04. 
  3. ^ "Western Refining Reports Fourth Quarter and Full Year 2013 Results - MarketWatch". 2014-02-27. Retrieved 2014-04-04. 
  4. ^ "Western Refining Reports Fourth Quarter and Full Year 2013 Results - MarketWatch". 2014-02-27. Retrieved 2014-04-04. 
  5. ^ "Western Refining Reports Fourth Quarter and Full Year 2013 Results - MarketWatch". 2014-02-27. Retrieved 2014-04-04. 
  6. ^ "Western Refining Shareholders Equity: 904.37M for June 30, 2013 - YCHARTS". Retrieved 2013-08-25. 
  7. ^ "Fortune 500 2013: Fortune 500 Companies 251-300". CNN. 
  8. ^ "Western Refining Press Release - Western Refining". Retrieved 2013-06-26. 
  9. ^ "Hoovers company information - Hoovers". Retrieved 2013-02-26. 
  10. ^ "Western Refining Supply Areas - El Paso Times". Retrieved 2013-03-26. 
  11. ^ "Western Refining Products and Services - wnr.com". Retrieved 2013-06-26. 
  12. ^ "Profile: Our History - Jobing.com". Retrieved 2013-08-19. 
  13. ^ "Profile: Western Refining to buy Giant Industries - USA TODAY". USA Today. 2006-08-28. Retrieved 2013-08-19. 
  14. ^ "Western Refining Acquires Ownership Interests in Northern Tier Energy LP -". Retrieved 2013-11-15. 
  15. ^ "Western Refining rises on oil boom - El Paso Inc". January 20, 2013. Retrieved 2013-06-26. 
  16. ^ "Western Refining sells its Yorktown refinery - Bizmology". January 5, 2012. Retrieved 2013-06-26. 
  17. ^ "western refining Corporate Profile -". 2013-08-23. Retrieved 2013-08-25. 
  18. ^ "Western Refining Company, L.P. Company Information - Hoovers". Retrieved 2013-06-26. 
  19. ^ a b "Business Bio: Western Refining - Greater Phoenix Chamber of Commerce". Retrieved 2013-08-25.