Busy Year in Tulsa For Refinery Deals

It has been a quiet year in the refinery business ?except in Tulsa.
There have been two refinery deals in five months, and both have gone down in the former oil capital of the world. Dallas-based Holly Corp. spent $65 million on the local Sun Refinery in June. It spent another $128.5 million on the 75,000-barrel-per-day Sinclair Refinery in October.
The deal, expected to close by year? end, includes a mixture of Holly oil and Holly Energy Partners stock and cash. Including the inventory purchases, Sinclair estimated the total value of the deal to be $300 million.
?o question Holly is a perfect fit, making the Sinclair refinery work in tandem with the former Sun plant,?said Tom Kloza, publisher and chief analyst of the Oil Price Information Service.
While the former Sun refinery produced lubricants, it shipped much of is transportation fuel feedstock to Ohio for refining. Sun did not have the equipment to produce low sulphur-grade diesel, a big disadvantage, Kloza said. Sinclair recently completed major upgrades, including the addition of equipment to take high sulphur crude and turn it into ultra-low sulphur diesel.
Holly took advantage of good timing because the market was depressed, Kloza said.
?f this refinery had been on the market three years ago, there would have been a cavalcade of buyers looking for a purchase,?he said.
One attraction was the efficiency with which Sinclair ran the refinery, Kloza said.
?t was a well-run, sweet-crude refinery that succeeded during the ?olden blip?of refining,?he said, referring the brief period from 2004 to 2007 when refining enjoyed thick profit margins and few interruptions.
Sinclair supplies refined products to markets in the Mid-Continent, Upper Midwest and Rocky Mountains and markets fuel in 22 states. Sinclair will be able to market refined products to its wholesale customers, said Clint Ensign, senior vice president of government relations for Sinclair.
?he sale of the Tulsa refinery will appear seamless to Sinclair? wholesale customers,?Ensign said in a statement. ?t will not affect the company? fuel pipeline, terminal or marketing operations in this region, nor will it affect other company assets.
In addition, the Tulsa light products loading rack will maintain uninterrupted deliveries to Sinclair? wholesale customers, he said.
Kloza hints that consolidations in the refining sector could heat up.
?or every Sinclair deal in the market, there are plenty of other companies shopping their facilities. But, they have remained tight lipped,?Kloza said. ?r, there are companies who are looking for assets because they think it is a good time to buy.?br>The question now is, ?s Holly done??Kloza said.

Kokoa Sweet Treats Get Southern Exposure
It seems the editors at Southern Living magazine know a tasty gift idea when they are treated to one.
Stephen Howard, principal of local sweet shop Kokoa Chocolatier, said he understands his chocolate specialties will be featured in the magazine? December gift guide.
?he way they explained it to us, someone who works for Southern Living was given a box of our chocolates, and they contacted us and said, ?h my God, everybody went crazy, and we would love to have you be part of our December gifts ideas,? Howard said, while preparing several dozens of pastries for The Mayo Hotel at his shop at 510 S. Boston Ave.
In addition to the downtown location, and ?oing all the pastries for the Mayo,?Kokoa has a shop in Utica Square.

Major Leaguer Beats NSU Prof with ?tache
He fought a good duel in his attempt to win the Robert Goulet Memorial Mustached American of the Year, but Northeastern State University accounting professor John Yeutter lost out to a major leaguer.
Wearing his dapper, trademark handlebar mustache that terrorized Major League hitters during the 2009 Major League Baseball season, Arizona Diamondbacks relief pitcher Clay Zavada received the American Mustache Institute? 2009 Goulet Award, presented by Quicken.
Zavada won the award with more than 100,000 online votes were cast.
Green mustache- and Chuck Taylor-wearing Yuetter, one of NSU? most ardent sports supporters, built an early following through a link to the voting site on his university homepage. ?p>U.S. Chamber Lauds State Chamber? Legal Work
The U.S. Chamber of Commerce honored The State Chamber of Oklahoma for its work on lawsuit reform. Members of The State Chamber were given The State Leadership Award at the U.S. Chamber of Commerce? Legal Reform Summit Oct. 28 in Washington, D.C.
The award was given for The State Chamber? years of legal reform advocacy that helped lead to passage of the Comprehensive Lawsuit Reform Act of 2009. The U.S. Chamber called the act ?ne of the single-most significant legislative packages signed into law this year and a blueprint for all states still in need of tort reform.?br>The law went into effect Nov. 1.
?his award is an honor and it is the culmination of nearly two decades of work by State Chamber employees, our member businesses, members of Oklahoma? Legislature and countless reform advocates,?said Richard P. Rush, president and CEO.
The reform package included class action reforms, a cap on appeals bonds, adoption of summary judgment similar to that allowed in federal lawsuits, joint and several liability reforms, product liability reforms, junk science testimony rules, certificates of merit and a cap on non-economic damages.

Championship Basketball Tickets On Sale at BOK Center
The Tulsa Sports Commission will host the C-USA Men? Basketball Championship at the BOK Center March 10-13, 2010. CBS Sports will televise the tournament? championship game on March 13. Tournament games will be ticketed in sessions, with an All-Session ticket providing admittance to all games (11 games, six sessions).
All-Session ticket prices are: Lower Level Club ?$302 ?includes ONEOK Club access, Lower Level ?$172 and Upper Level ?$82 and $67.
Tickets may be purchased at www.bokcenter.com, by calling 1-866-7-BOK-CTR and at the Arby? Box Office, just off Third Street between Denver Avenue and Frisco Avenue.

Was this article helpful?

Related Articles

Leave A Comment?