Western Refining: Likely To Buy Northern Tier's High Quality Assets On The Cheap
Michael Fitzsimmons • 38 Comments
Michael Fitzsimmons • 38 Comments
Western Refining's Diversified Operations Drive Strong Q2 Earnings
Tristan R. Brown
Tristan R. Brown
Western Refining: Crude Price Volatility Doesn't Slow It Down In Q1
Tristan R. Brown
Tristan R. Brown
Mon, Jul. 25, 12:56 PM
- Some U.S. refiners, stuck with the highest inventories of gasoline for this time of year in a quarter of a century, have started blending winter grade gasoline a month earlier than usual to sell later in the year, Reuters reports.
- Looking to cut costs, refiners and blenders reportedly are making an early move to mix cheap butane - a cheaper blending component than most other ingredients - to convert the summer barrels into winter barrels.
- Mixing more winter gasoline now threatens to worsen the glut later, but that's a risk willingly taken by an industry left with few other choices, the report says.
- Independent U.S. refiners are expected to post another quarter of weak earnings en route to possibly the worst year since the shale boom began in 2011.
- Refiners are broadly lower today as crude oil prices drop: PSX -1.6%, VLO -0.7%, MPC -2.3%, TSO -1.6%, HFC -0.7%, WNR -0.3%, PBF -1.5%, DK -0.6%, ALJ -1.7%.
Fri, Jul. 15, 4:53 PM
Thu, Jul. 14, 3:58 PM
- Western Refining (WNR -3.4%) is reinstated with a Neutral rating and a $22 price target at Goldman Sachs after its merger with Northern Tier Energy as well as higher share count and interest expense levels, lower share buybacks and dividend growth, and updated capture rate assumptions.
- Goldman analyst Neil Mehta sees low crude differentials in the future, creating a headwind for WNR, with downside risk to its 2017 Brent-WTI forecast of $2/bbl, reinforcing its negative view on the Mid-Continent refining complex.
- But Mehta thinks crude differential weakness will be offset by the Phoenix market, which has premium product pricing compared to the rest of the U.S. given regional demand growth, infrastructure constraints and recent supply disruptions, which will benefit WNR.
Wed, Jun. 8, 6:39 PM
- Gasoline profit margins have fallen to their narrowest seasonal levels since 2010, dropping by $5/bbl in slightly more than two weeks, as high imports have kept U.S. inventories elevated even as gasoline demand rises.
- The decline was not stemmed by yesterday’s EIA projection that summer gasoline demand will rise to a record 9.5M bbl/day, as gasoline imports into the U.S. east coast, which primarily come from refineries in eastern Canada and Europe, have kept U.S. inventories at the highest levels in at least 20 years.
- "We’re seeing the economics change to the point that many refiners along the coast are looking at maximizing jet fuel and diesel at the expense of gasoline," analyst Andy Lipow tells Bloomberg.
- The falling margins are hurting refiners, with Bloomberg's North America Refining & Marketing index down 28% Y/Y; in today's trade, WNR -3.1%, HFC -2.7%, CVRR -2.2%, VLO -2.2%, TSO -2%, NTI -0.8%, ALJ -0.8%.
Thu, Jun. 2, 9:11 AM
- Western Refining (NYSE:WNR) announces changes in senior management, contingent upon the closing of its takeover of Northern Tier Energy.
- David Lamp will become President and COO effective on the closing date of the acquisition, and Karen Davis will become executive VP, CFO and principal accounting officer effective Aug. 15; both had been executives at NTI.
- Current CFO Gary Dalke will leave the position effective Aug. 15.
Wed, May 18, 2:12 PM
- Western Refining (WNR +3.7%) is higher following news that it secured a new $500M senior secured term loan credit facility, which it expects to close concurrent with the successful closing of its Northern Tier Energy (NTI +1.5%) acquisition in late June.
- WNR says it plans to use the proceeds from the Term Loan B-2 to partially fund the NTI takeover.
- Now read Western Refining to acquire Northern Tier Energy: A sure bet
Mon, May 16, 4:42 PM
- Western Refining Logistics (NYSE:WNRL) -6.1% AH after announcing a public offering of 3.75M common units, with an underwriters option to purchase up to an additional 562.5K units.
- WNRL says it plans to use the proceeds to repay borrowings outstanding under its revolving credit facility; WNRL says it may reborrow for general partnership purposes such as funding working capital, capital expenditures or acquisitions from Western Refining (NYSE:WNR) or third parties.
Tue, May 3, 5:46 AM
Mon, May 2, 5:30 PM
- ABMD, ACW, ADM, AFSI, ALE, ALLT, AMAG, AMG, APLP, AROC, ARRY, ARW, AUDC, BBW, BCC, BCO, CARB, CEQP, CFX, CIE, CLX, CMI, COTY, CVLT, CVS, DUK, ECA, ECL, EIGI, EL, EMR, EXAS, FDP, FIS, FMS, FSS, FTR, GLDD, GLT, GRUB, H, HAL, HCA, HCN, HEP, HOT, HRS, HSIC, HW, KEM, KMT, LXRX, MNK, MNTA, MYL, NI, NTI, NWN, NXST, NYT, OZM, PBI, PFE, Q, RDWR, RHP, RRD, S, SALE, SALT, SGNT, SMG, SSH, TAP, TECH, TICC, VLO, VMC, VSH, WAC, WCG, WEC, WLK, WNR, WNRL, WWW, XYL
Fri, Apr. 8, 4:51 PM
Tue, Mar. 15, 7:47 PM
- Valero Energy (NYSE:VLO), PBF Energy (NYSE:PBF) and Delek US Holdings (NYSE:DK) are the three oil refiners with the most upside, Wells Fargo analysts say, liking the setup for the group headed into the important summer gasoline season, particularly Gulf coast refiners with meaningful exposure to light/heavy differentials.
- Among its five total Outperform-rated refiners, Wells finds Alon USA Energy (NYSE:ALJ) and Western Refining (NYSE:WNR) with the least upside potential.
- The firm says Marathon Petroleum (NYSE:MPC) typically would fit well within its outlook but uncertainty around the performance of its MLP and higher diesel yields restrains optimism.
- After spending much of Q1 at record high levels, Wells says U.S. gasoline inventories are now following a typical seasonal pattern of declines; inventories remain elevated in the mid-continent, west coast inventories are near historical averages for this time of year but at risk with the expected restart of the Torrance unit, and Gulf coast gasoline inventories are effectively flat Y/Y, which Wells calls "a positive sign."
Mon, Feb. 29, 2:57 PM
- Northern Tier Energy (NTI -0.7%) is downgraded to Underweight from Overweight with a $25 price target, reduced from $31, at Barclays, which says the change in outlook is not a reflection of NTI's fundamentals but reflects the high probability that the pending acquisition by Western Refining (WNR -0.7%) will close in H1 2016.
- Given the current negative sentiment in the refining space, the firm does not expect WNR to raise its bid a second time, indicating limited upside for NTI vs. the rest of the refining space.
Thu, Feb. 25, 6:07 AM
Wed, Feb. 24, 5:30 PM
- AAON, ACIW, AG, ALKS, AMCX, AMRN, AMWD, ANSS, APA, APLP, AROC, BBY, BUD, CCOI, CHS, CLDX, CM, CNSL, CORE, CPB, CPK, CRI, CVC, DPZ, EGRX, EME, EMES, ENOC, FCH, FCN, FIG, GLOG, GOGO, GTLS, GVA, HBM, HEES, HMHC, HTWR, INCR, IONS, IRDM, IRM, ITC, KERX, KOP, KSS, LKQ, MITL, NEWM, NPO, [[NTi]], NXST, PCRX, PDCO, PF, PGTI, PRIM, PWR, RDUS, RGEN, RRD, RWLK, SAFM, SDRL, SEAS, SERV, SFM, SFUN, SHLD, SPAR, STWD, TD, TFX, TREE, TWI, UNT, UTHR, VAC, VC, VWR, W, WIN, WNR, WNRL, WPC, XCRA, ZBRA, ZEUS
Wed, Jan. 6, 4:50 PM
- Western Refining (NYSE:WNR) declares $0.38/share quarterly dividend, in line with previous.
- Forward yield 3.99%
- Payable Feb. 4; for shareholders of record Jan. 20; ex-div Jan. 15.
Dec. 21, 2015, 5:47 PM
- Northern Tier Energy (NYSE:NTI) +9.1% AH after Western Refining (NYSE:WNR) agrees to acquire the ~62% of the company it does not already own in a revised offer that values NTI at $2.43B.
- NTI unitholders will now receive $15/share in cash and 0.2986 of a share of WNR for each unit held; in October, WNR offered $17.50/share in cash and 0.2266 of a share for each NTI unit.
- The companies say the merger will result in a diversified refining asset base with three top tier refineries that have direct pipeline access to advantaged crude oil basins, and that the deal includes increased flexibility to sell NTI traditional logistics assets to Western Refining Logistics (NYSE:WNRL).
Western Refining, Inc. engages in the business of refining and marketing crude oil and refined products. The company operates through four segments: Refining Group, Retail Group, WNRL and NTI. The Refining Group segment operates two refineries owned by Western that process crude oil and other... More
Sector: Basic Materials
Industry: Oil & Gas Refining & Marketing
Country: United States
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