Delek and Alon USA Energy have agreed on the acquisition by Delek of the 53% remaining outstanding shares of Alon USA for US$464m. The aim is to create a company with a strong financial position and significant access to the Permian Basin. The companies expect to achieve synergies to create a refining system that will be one of the largest buyers of crude from the Permian Basin (Texas) among the independent refiners.
The refining system will have approximately 300,000 bbl/d of crude throughput capacity consisting of four locations and an integrated retail platform that includes 307 locations serving central and west Texas and New Mexico.
Delek refining segment consists of refineries operated in Tyler (Texas) and El Dorado (Arkansas) with a combined nameplate production capacity of 155,000 bbl/d, while Alon USA owns and operates crude oil refineries in Big Spring (Texas) with a crude oil throughput capacity of 73,000 bbl/d and another in Krotz Springs (Louisiana) with a crude oil throughput capacity of 74,000 bbl/d.
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