U.S. Oil & Refining Co. is located on 139 acres in the Tacoma Tideflats. The company’s facilities include a 42,000 bpd (barrels per day) refinery, a marine terminal, a train-capable loading terminal, and 2.9 million barrels of storage space. According to a statement, U.S. Oil generated approximately $86 million EBITDA (earnings before interest, tax, depreciation, and amortization) over the past year.
Under the agreement between the two companies, Par Pacific Holdings will buy 100 percent of U.S. Oil’s equity interest. The transaction is expected to close in January 2019.
“This transformative acquisition connects our existing assets in Hawaii, Pacific Northwest, and the Rockies to create an integrated downstream network with significantly enhanced scale and diversification,” said William Pate, president and CEO of Par Pacific Holdings. “We have been executing an ambitious strategic growth plan focused on attractive downstream markets for over three years and the acquisition of U.S. Oil further demonstrates the progress we have made. We believe that this transaction provides a strong platform for earnings and cash flow growth.”
Par Pacific currently owns and operates a logistics system and a 94,000-bpd refinery in Hawaii, as well as a logistics system and an 18,000 bpd refinery in Wyoming.