Summary
Valero Energy Corporation announced the completion of its acquisition of El Paso Corporation's refinery and related operations located in Aruba. This strategic move, finalized on March 5, 2004, significantly expands Valero's refining capacity with the addition of a 315,000 barrels per day facility, along with its associated marine, bunkering, and marketing infrastructure. The total consideration for the transaction was $465 million for the assets, plus $162 million for working capital, with an additional estimated $40 million to be paid later for third-party owned inventories. The acquisition was financed through a combination of cash, existing credit facilities, and proceeds from a recent common equity offering, demonstrating a multi-faceted funding strategy. Investors should note that detailed financial statements and pro forma information related to this acquisition will be filed in a future amendment.
Key Highlights
- 1Valero Energy Corp. completed the acquisition of El Paso Corporation's refinery and related operations in Aruba on March 5, 2004.
- 2The acquired refinery has a substantial throughput capacity of approximately 315,000 barrels per day.
- 3The transaction also includes related marine, bunkering, and marketing operations, enhancing Valero's integrated business.
- 4The total purchase price for the refinery and working capital was $627 million ($465 million + $162 million).
- 5Valero plans to acquire an additional $40 million in third-party owned inventories by early May 2004.
- 6The acquisition was financed using $200 million in cash, $21 million in credit facility borrowings, and $406 million from a February 2004 common equity offering.
- 7Required financial statements and pro forma information for the acquired business will be filed by amendment within 60 days of the report's due date.