PBF Energy to Buy Refinery in Louisiana

By Angela Chen 

PBF Energy Inc. has agreed to buy a Louisiana refinery and other assets from Exxon Mobil Corp. and PDV Chalmette LLC for $322 million in a bid to expand in the Gulf Coast and increase its throughput capacity to over 725,000 barrels a day.

Shares of New Jersey-based PBF increased about 15% in recent trading. They had fallen about 3% this year through Wednesday's close.

The purchase of Chalmette Refining LLC from the two companies means PBF will receive the 189,000 barrel a day Chalmette Refinery, located outside New Orleans, and related logistical assets.

The transaction includes 100% ownership of the MOEM Pipeline and 80% ownership in both the Collins Pipeline Company and T&M Terminal Company. Other assets include a marine terminal for loading or exporting products and a storage facility.

The purchase price will include working capital, which will be valued at closing. The deal is expected to add 20% to PBF's earnings in the first year of operations. Further financial terms weren't disclosed.

"Upon completion, we will have increased our refining capacity by 35% and added meaningful Gulf Coast assets to our businesses," said Chief Executive Tom Nimbley. PBF will have operations in the Gulf Coast, East Coast and mid-continent.

The deal is expected to close before the end of the year.

Write to Angela Chen at [e-mail]

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