OLD GREENWICH, Conn., March 4 /PRNewswire-FirstCall/ --
Premcor Inc. (NYSE: PCO) today announced that it has completed the purchase of
the Memphis, Tennessee Refinery from The Williams Companies effective Monday,
March 3, 2003. The purchase price of $310 million (as adjusted) plus
hydrocarbon inventories valued at approximately $145 million (subject to
finalization of volumetric and pricing verification) was financed with
proceeds from Premcor's common stock offering and private debt placement
completed in early February. The purchase agreement also includes an earn-out
provision that may result in the payment of up to an additional $75 million to
The Williams Companies over a seven-year period depending on industry refining
margins during that period.
The Memphis refinery has a rated crude oil capacity of 190,000 barrels per
day (bpd) but typically processes 170,000 bpd. Associated assets include two
truck-loading racks; three petroleum terminals; supporting pipeline
infrastructure and crude oil tankage.
Thomas D. O'Malley, Premcor's Chairman and Chief Executive Officer, said,
"We are pleased to have completed the purchase of the Memphis Refinery in line
with our originally announced schedule. We continue to expect it to be
accretive to our earnings per share and cash flow from the first day of
operation. This acquisition, our first since becoming a public entity, will
increase our company-wide crude oil throughput capacity by over 45 percent,
from 420,000 bpd to 610,000 bpd. Memphis is a high-quality, state-of-the-art,
sweet crude oil refining complex with a reasonable clean fuels investment
requirement. The refinery has recently completed a turnaround of its fluid
catalytic cracking unit and should be poised to take full advantage of today's
strong refining margin environment."
Premcor Inc. is one of the largest independent petroleum refiners and
marketers of unbranded transportation fuels and heating oil in the United
States.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including the
company's current expectations with respect to future market conditions,
future operating results, the future performance of its refinery operations,
and future acquisitions and related financing transactions. Words such as
"expects," "intends," "plans," "projects," "believes," "estimates," "may,"
"will," "should," "shall," and similar expressions typically identify such
forward-looking statements. Even though Premcor believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from expectations
include, but are not limited to, operational difficulties, varying market
conditions, potential changes in gasoline, crude oil, distillate, and other
commodity prices, government regulations, and other factors contained from
time to time in the reports filed with the Securities and Exchange Commission
by the company and its subsidiaries, Premcor USA Inc. and The Premcor Refining
Group Inc., including the company's Form S-1 and the company's and its
subsidiaries' quarterly reports on Form 10-Q, reports on Form 8-K, and annual
reports on Form 10-K.
SOURCE Premcor Inc.
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Related links:
http://www.premcor.com
CONTACT:
Media-Investors, Joe Watson, +1-203-698-7510,
or Investors, Karen Davis, +1-314-854-1424, or Michael Taylor,
+1-314-719-2304, all of Premcor Inc.
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