SAN ANTONIO, Apr 08, 2010 (BUSINESS WIRE) --Valero Energy Corporation (NYSE: VLO) announced today it has reached an
agreement to sell the assets of its terminal operation and discontinued
operations in Delaware City to the Delaware City Refining Company LLC
and Delaware Pipeline Company LLC, wholly owned subsidiaries of PBF
Energy Partners LP. The sale price is $220 million for the assets, and
Valero will retain the de minimis levels of remaining crude oil and
refined products inventories that have not yet been liquidated. The
transaction is expected to close during the second quarter contingent
upon regulatory approvals, as well as the parties' completion of certain
agreements with the state of Delaware.
After the transaction closes, Valero will continue to supply its area
customers via a terminaling agreement with the site's new owners.
Valero made the decision to permanently close and discontinue operations
at the refinery in November 2009 after unsuccessfully seeking a buyer.
Earlier this year, Valero and PBF entered discussions with the support
of Gov. Jack Markell regarding a possible purchase of the site's assets.
"We are pleased that we have reached this agreement with PBF," said
Valero Chairman and CEO Bill Klesse. "The transaction reflects
incremental cash flow and a good value for the terminal and shut-down
refinery units. For the state of Delaware, this provides the potential
to regain manufacturing jobs in the future. We thank Gov. Markell for
his active participation in facilitating our agreement."
Valero Energy Corporation is a Fortune 500 company based in San
Antonio with approximately 21,000 employees. The company operates 15
refineries with a combined throughput capacity of approximately 2.8
million barrels per day. Valero is also a leading ethanol producer with
10 ethanol plants in the Midwest with a combined capacity of 1.1 billion
gallons per year, and is one of the nation's largest retail operators
with approximately 5,800 retail and branded wholesale outlets in the
United States, Canada and the Caribbean under the Valero, Diamond
Shamrock, Shamrock, Ultramar, and Beacon brands.Please visit www.valero.com
for more information.
SOURCE: Valero Energy Corporation
Valero Energy Corporation, San Antonio
Investors, Ashley Smith, Vice President,
Investor Relations: 210-345-2744
Media, Bill Day, Executive Director, Corporate Communications: