Western Refining, Inc.NYSE
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
Wed, Nov. 23, 7:47 PM
- The EPA today issued final regulations requiring that the amount of ethanol and other biofuels that must be blended into the U.S. fuel supply must increase by 6% next year.
- Since the result is a significant gain over the 4% the EPA recommended in an earlier draft proposal, it is a victory for ethanol makers and a defeat for oil companies that say using more biofuels in gasoline and diesel is costly and unachievable.
- The EPA set the 2017 target for total renewable fuel use at 19.28B gallons, higher than the initial proposal for 18.8B gallons as well as this year's 18.1B gallon requirement; the new mandate includes 15B gallons for conventional biofuel, which is mostly corn-based ethanol, vs. 14.5B gallons last year.
- Tesoro (NYSE:TSO) exec Stephen Brown says the plan is "unworkable" as it forces the use of biofuels beyond the blend wall and that it highlights the need for a legislative overhaul of the program.
- Shares in oil refiners mostly fell in today's trade: TSO -1.4%, VLO -0.8%, HFC -1.8%, MPC -0.3%, WNR -2.2%, PBF -3.5%, PSX +0.2%.
- Shares of biofuels producers rose: GEVO +8.5%, PEIX +7.1%, GPRE +2.1%, REGI +2%, REX +0.8%.
Fri, Nov. 18, 1:57 PM
- Tesoro (TSO -3.7%) and Western Refining (WNR -2.7%) are lower a day after their merger announcement that will make TSO the fourth biggest U.S. refiner by capacity.
- Analysts see the deal filling a gap in TSO's portfolio by giving it access to pipelines and refineries that connect to Texas' lucrative Permian Basin
- WNR's primary business in the formation is gathering - collecting oil from remote fields, pooling it together and bringing it to a hub - and TSO's acquisition is said to reflect the conviction that refiners with pipelines and other logistical assets can be profitable through volatile price cycles of crude oil and refined products.
- WNR is downgraded to Sector Perform from Outperform at RBC Capital, which says it does not foresee an increased offer or an alternate bidder for the company.
Thu, Nov. 17, 2:05 PM
Thu, Nov. 17, 12:47 PM
Thu, Nov. 17, 9:20 AM
- Gainers: RLOG +121%. SINO +99%. GSL +94%. DCIX +32%. NMM +32%. ESEA +24%. TOPS +22%. WNR +22%. NM +22%. NAO +19%. SB +18%. ANW +17%. PANL +16%. SHIP +12%. NTAP +12%. HAIN +11%. GLBS +11%. UAM +11%. GURE +10%. PLCE +8%. NNA 8%. BBY 8%. INCY 6%. RCON 6%. PLUG 6%. GNK 6%. ENDP 6%.
- Losers: LEI -26%. VUZI -18%. SPP -18%. NVTA -14%. FSLR -12%. ZX -10%. TEGP -10%. SSI -9%. STEM -8%. FOXF -8%. TTMI -7%. PFGC -6%.
Thu, Nov. 17, 7:15 AM
- Tesoro (NYSE:TSO) agrees to acquire Western Refining (NYSE:WNR) in a stock deal valued at $6.4B, creating a company that will account for ~6% of crude processing capacity in the U.S.
- The deal values WNR at an implied $37.30/share - a 22% premium to WNR closing price yesterday - representing an enterprise value of $6.4B, including the assumption of $1.7B of WNR's net debt and the $605M market value of non-controlling interest in Western Refining Logistics (NYSE:WNRL).
- The combined company will have refining capacity of more than 1.1M bbl/day; TSO has refineries in California, Washington, Alaska, Utah and North Dakota, and WNR adds refineries in Texas, New Mexico and Minnesota.
- The merged company also will have a retail network of more than 3K convenience and gas stations.
- The companies say the combination will deliver $350M-$425M in annual synergies within two years.
Wed, Nov. 9, 12:44 PM
- U.S. independent refiners are rallying as investors bet that a Trump administration will ease costly renewable fuel regulations.
- During the campaign, Trump unveiled an energy policy calling for the elimination of many regulations, including the system of buying and selling RINs, although Trump also has said he supports ethanol.
- RINs tracking ethanol use for 2016 have more than doubled in the past year, and RINs tracking biodiesel have jumped 59% Y/Y, according to Bloomberg data.
- In today's trade: CVI +22.5%, CVRR +15.4%, PBF +12.2%, HFC +11.7%, DK +6.1%, VLO +4.8%, WNR +4.4%, TSO +2.9%, MPC +2.8%, PSX +1.9%.
Tue, Nov. 1, 1:51 AM
Mon, Oct. 31, 5:30 PM
- ADPT, AEP, AHH, ALLT, AME, AMRC, ANGI, APLP, ARRY, AUDC, AVA, AYR, BKD, BP, CIE, CMI, CNX, COH, CRCM, DHX, DIN, DISCA, DX, ECL, EGL, EIGI, EMR, ETN, EVHC, FCH, FDP, FIS, FSS, GHM, GK, GLT, GWR, HCP, HRS, HSKA, HW, HZO, ICE, IDXX, INCY, IRM, K, KEM, LXRX, LYB, MCRN, MDC, MLM, MOS, MSM, NI, NSP, OSK, OXY, PBI, PES, PFE, PPL, PRTS, RDC, RDS.A, RDWR, RHP, SAH, SALE, SCAI, SHOO, SHPG, SNE, SPR, SUI, TAP, TRI, WCG, WLB, WNR, WNRL, XYL
Thu, Oct. 13, 4:47 PM
Tue, Oct. 11, 3:25 PM
- Oil refiners have lagged to the point that “value signals are getting investors interested," Credit Suisse says while cautioning that it wants to see global product inventories drawn down before buying shares, and the process is only just getting started.
- Nevertheless, the firm upgrades Tesoro (TSO +0.8%) and Alon USA Energy (ALJ +2.4%) to Outperform from Neutral, joining Marathon Petroleum (MPC -1.1%) and Western Refining (WNR +0.5%) as its favorites names in the group, while stressing that November-January is the typical entry point.
- Meanwhile, Credit Suisse downgrades PBF Energy (PBF -4.3%) and Delek USA (DK -3.6%) to Neutral; PBF has the largest macro sensitivity to refining and RINs, which are depressing PBF earnings at a time when net debt has been elevated after the Torrance and Chalmette acquisition, the firm notes.
Fri, Sep. 16, 3:54 PM
- Western Refining (WNR +0.9%) is higher after completing a drop-down transaction of recently acquired St. Paul Park Refining to its 54%-owned MLP Western Refining Logistics (WNRL +0.1%).
- The companies paid $195M and issued $15M of WNRL units for St. Paul Park Refining, which included storage tanks with a 4M-barrel capacity as well as three crude oil pipeline segments, a light products terminal and other related assets, all in suburban Minneapolis; the companies also signed a 10-year terminal, transportation and storage services contract.
- Separately, WNRL says it has secured a 150% increase in its revolving credit facility to $500M.
Wed, Sep. 7, 5:24 PM
- Western Refining Logistics (NYSE:WNRL) agrees to acquire certain terminalling, storage and other logistics assets from Western Refining's (NYSE:WNR) St. Paul Park Refining for $210M.
- WNRL says it is acquiring ~4M barrels of refined product and crude oil storage tanks, a light products terminal, a heavy products loading rack, certain rail and barge facilities, certain other related logistics assets, and two crude oil pipeline segments extending from the St. Paul Park refinery in Minnesota.
- To help fund the deal, WNRL announces a public offering of 5.25M common units, with an underwriter's option to purchase up to an additional 787.5K common units.
Tue, Aug. 16, 4:42 AM
- Billionaire investor Carl Icahn has called on the EPA to make changes to the market for renewable fuel credits or else risk "the mother of all short squeezes" that could bankrupt refiners.
- "The RIN market is the quintessential example of a 'rigged' market where large gas station chains, big oil companies and large speculators are assured to make windfall profits at the expense of small and midsized independent refineries which have been designated the 'obligated parties' to deliver RINs."
- Related tickers: VLO, NTI, CLMT, MPC, TSO, ALDW, CVI, WNR, PBF, DK, HFC, CVRR, NTI, ALJ, TSO, WNR, PSX, XOM, PBF
Thu, Aug. 11, 6:57 PM
- Major U.S. refiners are on track to pay record amounts this year for credits to comply with U.S. renewable fuel rules, a trend that is bound to continue to hurt profits for the group, Reuters reports.
- A group of 10 refinery owners including Marathon Petroleum (NYSE:MPC) and Valero Energy (NYSE:VLO) spent at least $1.1B buying RINs, according to a Reuters review of their filings, placing them on track to surpass the annual record of $1.3B spent by the same group in 2013.
- RINs averaged ~$0.78 each during Q2, ~25% above the same period a year ago, according to the analysis, due to more ambitious targets from U.S. regulators on the volumes of ethanol required to be blended with gasoline.
- Other relevant tickers include PBF, CVRR, HFC, TSO, PSX, WNR, DK.
Tue, Aug. 2, 6:03 AM