Par Pacific Holdings, Inc. (Houston) announced that it has successfully closed its previously announced acquisition of the Billings refinery and associated marketing and logistics assets from ExxonMobil Corp. (Irving, Tex.) and two of its subsidiaries. The base purchase price of $310 million, including $30 million Par Pacific funded at signing, was paid with cash on hand, and hydrocarbon inventory associated with the Billings Acquisition was primarily financed by the company’s ABL credit facility.
Going forward, the refinery and logistics business will be known as Par Montana.
“We are extremely pleased to close the Billings Acquisition and welcome the Par Montana team to Par Pacific,” said William Pate, Chief Executive Officer. “This acquisition significantly enhances our scale and geographic diversification. We expect the transaction to be immediately accretive to our earnings and cash flow.”
The Billings, MT refinery is a 63,000 barrel per day (bpd) high-conversion, complex facility that processes low-cost Western Canadian and regional Rocky Mountain crude oil. The transaction also includes a 65% interest in an adjacent cogeneration facility and an expansive PADD IV & V marketing and logistics network. The logistics assets include the wholly owned 70-mile, 55,000 bpd Silvertip Pipeline, a 40% interest in the 750-mile, 65,000 bpd Yellowstone refined products pipeline, and four wholly owned and three joint venture refined product terminals located in Montana and Washington. Total storage capacity across the refinery and logistics locations totals 4.1 million barrels. Further, Par Pacific will supply approximately 250 Exxon and Mobil branded retail locations as part of the arrangement with ExxonMobil.
The Billings Acquisition enhances the company’s existing Pacific Northwest market position. Par Pacific is evaluating renewable fuels opportunities to supplement the Billings refinery’s conventional fuel production and utilize its existing market position in Washington to reduce the carbon intensity of its fuel sales in accordance with the recently enacted Washington low-carbon fuel standard.
“We are focused on small-scale projects to improve throughput and reliability at the Billings refinery to increase rates closer to nameplate capacity,” said Will Monteleone, President. “We look forward to working with our talented new team members on identifying and executing these projects.”