SUGAR LAND, Texas, Nov. 2, 2011 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced a definitive agreement to acquire
Gary-Williams Energy Corporation and its Wynnewood, Okla., refinery and related assets
for $525 million, plus working
capital currently estimated at approximately $100 million.
(Logo: http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
CVR Energy will fund the acquisition with cash and approximately
$250 million of additional debt
financing to be put in place prior to closing. The
transaction is expected to close by year end, subject to regulatory
approvals.
With 70,000 bpd in crude throughput capacity and a complexity
rating of 9.3, the Wynnewood
refinery will provide an immediate and meaningful increase in the
scale and diversity of CVR Energy's refining operations.
Following the close of the transaction, CVR Energy will have
more than 185,000 bpd of processing capacity at two locations in
the attractive, highly fragmented, and historically underserved
Group III, PADD 2 region. Both facilities have access to a
variety of cost advantaged WTI price-linked crudes.
"The acquisition of these high-quality and recently upgraded
refinery assets is compelling for CVR Energy in strategic,
financial and operational terms, and will create shareholder value
both in the near term and for years to come," said Chief Executive
Officer Jack Lipinski. "The
transaction is not only accretive but the purchase price multiple
paid on a trailing twelve month EBITDA basis is less than the
implied multiple for our refining assets today.
"Given Wynnewood refinery's complementary geography and
logistical footprint, we anticipate using the capabilities of our
storage in Cushing, Okla.,
together with our crude oil gathering business to obtain near-term
crude oil purchase savings. We also expect to benefit from
processing synergies between both plants.
"Building on our track record of operational improvement at
Coffeyville, we will have the
opportunity to undertake a range of relatively low cost enhancement
initiatives with attractive returns."
Gary-Williams Energy Corporation is headquartered in
Denver with marketing and
operations in Oklahoma. CVR
Energy will transition out of the Denver office but will retain all Oklahoma facilities and operations.
For the acquisition, Barclays Capital served as financial
advisor and Fried, Frank, Harris, Shriver & Jacobson LLP as
legal advisor to CVR Energy. Deutsche Bank Securities served as
financial advisor and Davis Graham
& Stubbs as legal advisor to Gary-Williams Energy.
About CVR Energy, Inc.
Headquartered in Sugar Land,
Texas, CVR Energy, Inc.'s subsidiary and affiliated
businesses include an independent refiner that operates a 115,000
barrel per day refinery in Coffeyville,
Kan., and markets high value transportation fuels supplied
to customers through tanker trucks and pipeline terminals, and a
crude oil gathering system serving central Kansas, Oklahoma, western Missouri and southwest Nebraska. In addition, CVR Energy subsidiaries
own a majority interest in and serve as the general partner of CVR
Partners, LP, a producer of ammonia and urea ammonium nitrate, or
UAN, fertilizers.
For further information, please contact:
Investor Relations:
Jay Finks
CVR Energy, Inc.
281-207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Steve Eames
CVR Energy, Inc.
281-207-3550
MediaRelations@CVREnergy.com
SOURCE CVR Energy, Inc.