PBF Energy announced that its subsidiary has signed a definitive agreement to purchase Chalmette Refining consisting of the 189,000 barrel per day Chalmette Refinery and related logistics assets, from ExxonMobil and PDV Chalmette. With the acquisition, PBF will increase its total throughput capacity to over 725,000 barrels per day. The purchase price for the assets is USD 322M, plus working capital including inventory to be valued at closing. The transaction is expected to be approximately 20% accretive to 2016 consensus earnings in the first year of operation and is expected to close prior to year-end 2015.
In addition to refining assets, the transaction includes 100% ownership of the MOEM Pipeline, providing access to the Empire Terminal, as well as the CAM Connection Pipeline, providing access to the LOOP facility through a third party pipeline. The transaction also includes 80% ownership in each of the Collins Pipeline Company and T&M Terminal Company, both located in Collins, Mississippi, which provide a significant clean products outlet for the refinery via the Plantation and Colonial Pipelines. Also included in the transaction are a marine terminal capable of importing waterborne feedstocks and loading or exporting finished products; a clean products truck rack that provides access to local markets; and a crude and product storage facility with approximately 7.5 million barrels of shell capacity.
