Par Pacific to acquire U.S. Oil & Refining Co. and affiliated entities for $358m

Par Pacific Holdings has signed a definitive agreement to acquire U.S. Oil & Refining Co. and certain affiliated entities (collectively, U.S. Oil), a privately-held downstream business, for $358m plus net working capital. The acquisition includes a 42,000 bpd refinery, a marine terminal, a unit train-capable rail loading terminal, and 2.9 MMbbls of refined product and crude oil storage. The refinery and associated logistics system are strategically located in Tacoma, WA and currently serve the Pacific Northwest market.

“This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification,” said William Pate, President and CEO of Par Pacific Holdings. “We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of U.S. Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earnings and cash flow growth.”

U.S. Oil’s refinery is located on 139 acres of fee-owned land near Tacoma, WA. The 42,000 bpd refinery has the flexibility to optimise its crude slate based on market conditions; currently, discounted Bakken and Cold Lake crude represent over 95 percent of its current crude slate. U.S. Oil’s diverse logistics assets include 2.9 MMbbls of storage capacity, a proprietary 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train rail facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms. These assets provide connectivity to Bakken, Canadian and Alaskan crude and Pacific, West Coast, Pacific Northwest and Rockies product markets.

For the twelve months ended September 30, 2018, U.S. Oil generated adjusted EBITDA of approximately $86m. Par Pacific estimates that annual operational and cost synergies of $7.5m to $12.5m will result from the transaction.

For more information visit www.parpacific.com

29th November 2018