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
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
Mon, Aug. 1, 5:30 PM
- ABC, ACCO, ADM, AET, AFSI, ALLT, ARW, AVP, BOFI, CAH, CARB, CEQP, CHH, CIE, CMI, CPPL, CSTM, CVS, DISCA, ECL, EIGI, EMR, ENOC, EPC, ETN, ETR, EXPD, FDP, GEO, GLT, GNRC, H, HCLP, HCN, HEP, HMC, HRS, HW, IDCC, IDXX, IIVI, IPI, IQNT, JLL, MLM, MMP, MNK, MOS, MZOR, NI, NJR, NNN, NRZ, NS, NWN, OZM, PBI, PFE, PG, PNW, RCL, RDC, RHP, SABR, SALE, SCAI, SHOO, SHPG, SODA, STX, SUI, TAP, TDC, VG, VSH, WCG, WNR, WNRL, XYL, ZEUS
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
- Western Refining (NYSE:WNR): Q1 EPS of $0.13 misses by $0.06.
- Revenue of $1.46B (-37.1% Y/Y) misses by $440M.