By Angela Chen
PBF Energy Inc. has agreed to buy a Louisiana refinery and other
assets from Exxon Mobil Corp. and PDV Chalmette LLC for $322
million in a bid to expand in the Gulf Coast and increase its
throughput capacity to over 725,000 barrels a day.
Shares of New Jersey-based PBF increased about 15% in recent
trading. They had fallen about 3% this year through Wednesday's
close.
The purchase of Chalmette Refining LLC from the two companies
means PBF will receive the 189,000 barrel a day Chalmette Refinery,
located outside New Orleans, and related logistical assets.
The transaction includes 100% ownership of the MOEM Pipeline and
80% ownership in both the Collins Pipeline Company and T&M
Terminal Company. Other assets include a marine terminal for
loading or exporting products and a storage facility.
The purchase price will include working capital, which will be
valued at closing. The deal is expected to add 20% to PBF's
earnings in the first year of operations. Further financial terms
weren't disclosed.
"Upon completion, we will have increased our refining capacity
by 35% and added meaningful Gulf Coast assets to our businesses,"
said Chief Executive Tom Nimbley. PBF will have operations in the
Gulf Coast, East Coast and mid-continent.
The deal is expected to close before the end of the year.
Write to Angela Chen at angela.chen@dowjones.com
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