Western Refining

Western Refining, Inc. was a publicly traded independent petroleum refining and marketing company headquartered in El Paso, Texas. Its business centered on converting crude oil into gasoline, diesel fuel, jet fuel, asphalt, and other refined products, then distributing those products through wholesale channels, terminals, pipelines, retail fuel stations, and convenience stores. The company’s operating footprint was concentrated in the Southwestern United States, although acquisitions later extended its refining and marketing presence into the Upper Midwest and the Mid-Atlantic region. The company’s principal refinery assets were located in El Paso, Texas; Gallup and Bloomfield, New Mexico; and St. Paul Park, Minnesota. The El Paso refinery originated from two neighboring facilities historically associated with Texaco and Chevron. A company called Refinery Holding was formed in 1997 to manage the El Paso assets and acquired them outright in 2000. Western Refining later expanded its crude supply and transportation position through the acquisition of a Chevron pipeline system capable of moving approximately 115,000 barrels of crude oil per day. Western became publicly traded on the New York Stock Exchange in January 2006. In August of that year, it acquired Giant Industries for approximately $1.23 billion in cash. Giant brought additional refineries, crude-gathering infrastructure, transportation assets, service stations, and convenience stores in Arizona, New Mexico, and Colorado. The transaction significantly increased Western’s refining scale and helped establish it as one of the largest publicly traded independent refiners in the United States. The company continued to reshape its portfolio through asset sales and acquisitions. It sold the Yorktown refinery and terminal, together with part of a New Mexico pipeline system, to subsidiaries of Plains All American Pipeline for approximately $220 million, while retaining an East Coast wholesale presence. In 2013, Western acquired the interests of ACON Investments and TPG in Northern Tier Energy LP for approximately $775 million. That transaction added the St. Paul Park refinery, access to Bakken and Canadian crude, storage and terminal assets, rail and river infrastructure, and the SuperAmerica retail network. Western also created Western Refining Logistics, a limited partnership designed to own and operate pipelines, gathering systems, storage tanks, and terminals. Its logistics assets included approximately 300 miles of crude-oil pipelines and gathering systems in West Texas and New Mexico. The company’s retail and marketing portfolio included Giant, Mustang, Sundial, and SuperAmerica-branded locations, as well as sites carrying other fuel brands. Western also traded petroleum products with Mexico, purchasing crude and selling refined products to Mexican buyers. In late 2016, Tesoro Corporation announced an agreement to acquire Western Refining in a transaction valued at an estimated enterprise value of $6.4 billion. Shareholders of both companies approved the transaction in March 2017, subject to regulatory clearance. The acquisition closed in 2017, and the combined business was subsequently renamed Andeavor. Marathon Petroleum acquired Andeavor in 2018. Western Refining therefore no longer operates as an independent public company, although certain assets, brands, and operations became part of the broader Marathon Petroleum organization.

Western Refining developed from refinery and petroleum infrastructure in the El Paso region. The El Paso complex consisted historically of two refineries situated across from one another on Trowbridge Avenue, one associated with Texaco and the other, larger facility associated with Chevron Oil. Refinery Holding was formed in 1997 to manage the facilities and acquired them outright in 2000. Western Refining later purchased a Chevron pipeline system able to transport approximately 115,000 barrels of crude oil per day, strengthening the connection between crude supply and refinery operations. The company entered the public markets in January 2006 with a New York Stock Exchange listing. Its first major expansion as a public company was the acquisition of Giant Industries in August 2006 for approximately $1.23 billion in cash. Giant contributed refining capacity, a crude-oil-gathering pipeline system based in Farmington, New Mexico, crude and refined-product trucking assets, and a network of fuel stations and convenience stores in New Mexico, Colorado, and Arizona. The combination made Western one of the largest publicly traded independent refiners in the United States and broadened its commercial reach beyond El Paso. Western’s refinery portfolio included facilities in El Paso and Gallup, as well as a refinery in Bloomfield, New Mexico, which was closed during the company’s operating period. The company also owned terminals in several Southwestern locations and maintained wholesale distribution activities across a wider set of states. It sold the Yorktown refinery and terminal, along with part of a New Mexico pipeline, to Plains All American Pipeline subsidiaries for approximately $220 million. Western retained the Yorktown-area wholesale business and continued marketing petroleum products in the Mid-Atlantic while focusing most refining, retail, and wholesale activity on the Southwest. In 2013, Western expanded into the Upper Midwest through its acquisition of ACON Investments’ and TPG’s interests in Northern Tier Energy LP. The approximately $775 million transaction brought the St. Paul Park refinery in Minnesota into the portfolio and added pipeline access to Bakken and Canadian crude, product terminals, storage tanks, rail facilities, and Mississippi River dockage. The transaction also provided access to the SuperAmerica retail channel, consisting of company-operated and franchised convenience stores. With St. Paul Park included, Western’s combined stated crude-processing capacity reached approximately 242,500 barrels per day. The company pursued a more formal separation of its midstream assets through Western Refining Logistics. The limited partnership was intended to own and develop crude pipelines, gathering systems, storage tanks, and terminals, with the parent initially supplying most revenue through a long-term fee-based services agreement. The logistics platform included approximately 300 miles of crude pipelines and gathering systems in West Texas and New Mexico. This structure reflected a broader industry strategy of separating relatively stable transportation and storage revenues from more cyclical refining margins. Western’s downstream activities covered refining, wholesale distribution, branded retail, convenience stores, trucking, terminals, and cross-border petroleum commerce. Its retail brands included Giant, Mustang, Sundial, and SuperAmerica, while some locations used other major fuel brands. The company also purchased crude oil from Mexico’s Pemex and sold refined products to customers in Mexico. Western’s independent existence ended through a transaction announced by Tesoro in late 2016. The proposed acquisition was valued at an estimated enterprise value of $6.4 billion, and shareholders approved it in March 2017. After completion, the combined company changed its name to Andeavor. Marathon Petroleum acquired Andeavor in 2018, making Western Refining a historical corporate identity rather than a standalone operating company.

• 2018

  Andeavor is acquired by Marathon Petroleum

  [1]Western Refiningen.wikipedia.org

  Marathon Petroleum acquired Andeavor, incorporating the former Western Refining operations into its corporate group.

• 2017

  Tesoro acquisition closes

  [1]Western Refiningen.wikipedia.org

  Western Refining was acquired by Tesoro, and the combined company later became known as Andeavor.

• 2013

  Northern Tier Energy interests are acquired

  [1]Western Refiningen.wikipedia.org

  Western acquired ACON Investments’ and TPG’s interests in Northern Tier Energy LP, adding the St. Paul Park refinery and related logistics and retail assets.

• 2013

  Western Refining Logistics is formed

  [1]Western Refiningen.wikipedia.org

  The company created a limited-partnership platform for pipelines, gathering systems, storage, and terminal assets.

• 2006

  Western Refining lists on the NYSE

  [1]Western Refiningen.wikipedia.org

  Western Refining became a publicly traded company on the New York Stock Exchange.

• 2006

  Giant Industries is acquired

  [1]Western Refiningen.wikipedia.org

  The acquisition of Giant Industries expanded Western’s refining, retail, crude-gathering, and transportation footprint.

• 2000

  El Paso refinery assets are acquired outright

  [1]Western Refiningen.wikipedia.org

  Refinery Holding acquired the El Paso refinery facilities outright, consolidating control of the assets that formed the company’s historical foundation.

• 1997

  Refinery Holding is formed

  [1]Western Refiningen.wikipedia.org

  Refinery Holding was established to manage the two El Paso refinery facilities that later became central to Western Refining’s operating base.

A regional independent refiner and vertically integrated petroleum marketer, with particular strength in the Southwestern United States and additional logistics, wholesale, and retail capabilities.

• Refined petroleum products

  Refined transportation fuels

  Western’s refineries primarily produced light refined products, especially gasoline, diesel fuel, and jet fuel. These products were sold through wholesale channels, branded and licensed retail outlets, and regional distribution networks serving the Southwest, Upper Midwest, Mid-Atlantic, and selected Mexican markets.

• Refined petroleum products

  Asphalt

  Asphalt was part of Western Refining’s broader refined-products portfolio. The company maintained asphalt terminals in Phoenix, Tucson, Albuquerque, and El Paso, supporting regional storage and distribution for commercial and infrastructure-related customers.

• Fuel retail and convenience stores

  Giant

  Giant was one of the retail fuel and convenience-store brands associated with Western Refining after its acquisition of Giant Industries. The network operated primarily in the Southwestern United States and combined fuel sales with convenience retail.

• Fuel retail and convenience stores

  SuperAmerica

  SuperAmerica became part of Western’s retail portfolio through the Northern Tier Energy transaction. The network included company-operated and franchised convenience stores serving Minnesota, Wisconsin, South Dakota, and surrounding markets.

• Midstream logistics · 2013

  Western Refining Logistics

  Western Refining Logistics was the company’s midstream platform for crude-oil pipelines, gathering systems, storage tanks, and terminals. Its assets were concentrated in West Texas and New Mexico and were intended to generate fee-based transportation and storage revenue.

• 2016

  Agree to Tesoro acquisitionM&A

  Background

  Western agreed to combine with Tesoro as part of a broader consolidation of independent refining and marketing companies.

  Action taken

  Tesoro announced an agreement to purchase Western Refining at an estimated enterprise value of approximately $6.4 billion.

  Aftermath

  Shareholders approved the transaction in March 2017, and Western subsequently became part of the company renamed Andeavor.

  Estimated enterprise value. $6.4 billion (2016)

  Source

• 2013

  Acquire Northern Tier Energy interestsM&A

  Background

  Western aimed to expand beyond its Southwestern base and obtain additional refinery, logistics, crude-supply, and retail assets.

  Action taken

  The company acquired ACON Investments’ and TPG’s ownership interests in Northern Tier Energy LP.

  Aftermath

  Western added the St. Paul Park refinery, Upper Midwest logistics infrastructure, and the SuperAmerica retail network, bringing stated combined refining capacity to approximately 242,500 barrels per day.

  Transaction value. $775 million (2013)

  Source

• 2013

  Create Western Refining LogisticsStrategy

  Background

  Western sought to organize its pipeline, storage, terminal, and gathering assets in a dedicated midstream structure.

  Action taken

  It formed Western Refining Logistics as a limited partnership and pursued a public offering to capitalize the subsidiary.

  Aftermath

  The platform was designed to operate under fee-based agreements with Western Refining and to separate logistics activities from the more volatile refining business.

  Source

• 2006

  Acquire Giant IndustriesM&A

  Background

  Western Refining sought to increase its refining scale and broaden its retail, transportation, and crude-gathering capabilities.

  Action taken

  It acquired Giant Industries in an all-cash transaction reported at approximately $1.23 billion.

  Aftermath

  The combination materially expanded Western’s refinery capacity and created a larger regional refining and marketing platform.

  Transaction value. $1.23 billion (2006)

  Source

1. 1Western Refiningen.wikipedia.org