Calumet Specialty Products Partners has closed on the sale of its San Antonio, Texas refinery and related assets including a crude oil terminal and pipeline to Starlight Relativity Acquisition Company for $63 million.
Starlight agreed to pay $63 million in cash for the plant, property and equipment, plus adjustments for net working capital, inventories and post-closing amounts. In a related transaction, Calumet entered into a Settlement and Release Agreement with TexStar Midstream Logistics settling all outstanding litigation between the two parties which will result in the release of a $38 million balance sheet liability.
“The divestment of the San Antonio refinery represents another step forward in Calumet’s strategic transformation,” said Tim Go, Chief Executive Officer of Calumet. “This transaction further de-levers Calumet’s balance sheet, reduces earnings volatility by lowering our exposure to fuels refining, and allows the Partnership to focus its time and capital more intently on our higher-return core Specialty Products business.”
The San Antonio refinery has permitted capacity of 21,000 barrels per day, processing crude oil and condensate primarily from the Eagle Ford basin. The refinery currently produces LPG, naphtha, regular and premium gasoline, commercial and military jet fuel, ultra-low sulphur diesel and Atmospheric Tower Bottoms. There are approximately 250,000 barrels of storage capacity at the refinery and approximately 200,000 barrels of additional crude oil storage capacity at a crude oil terminal located in Elmendorf, Texas.
For more information visit www.calumetspecialty.com