Seeking Alpha

Alon's California system likely shut until 2015 or longer

  • Alon USA Energy's (ALJ -8.8%) California refining system could be shut down through early 2015 or longer, depending on when and if the company gets needed permits to build a facility to offload U.S. crude via rail, CEO Paul Eisman tells analysts.
  • ALJ had expected to receive permits for the offloading facility by this quarter so it could build it and begin railing in cheaper U.S. crude in 2014; it shut the 70K bbl/day system a year ago because its dependence on imported crude rendered it unprofitable.
  • Eisman also says ALJ is looking at options to expand its 70K bbl/day Big Spring, Tex., refinery in the Permian Basin.
  • ALJ shares also are lower after Q3 earnings came in below estimates.
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