Alon Buys Two Refineries in California, Oregon

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Alon Buys Two Refineries in California, Oregon

05/02/2006
DALLAS--Dallas oil refiner Alon USA Energy Inc. will buy refineries in California and Oregon--more than doubling its refining capacity, the company said Monday, according to the Dallas Business Journal .

Alon said in the report it will buy Paramount Petroleum Corp., which has refineries in Paramount, Calif., and Portland, Ore. In a separate deal, Alon says it will purchase the assets of Edginton Oil Co., based in Long Beach, Calif., according to the newspaper.

Alon will pay $302 million in cash for Paramount and assume about $100 million of Paramount's debt. Alon will pay $52 million cash for the assets of Edginton, which operates a heavy crude refinery in Long Beach, according to the Dallas Business Journal .

Alon plans to combine Paramount's Los Angeles-area refinery and the Edginton facility into one refinery with capacity of 78,000 barrels per day. The Portland refinery has a 12,000-barrels-a-day capacity, according to the report.

Prior to this deal, Alon had one refinery, a sour crude plant in Big Spring, Texas. It has a capacity of 70,000 barrels per day.

The Paramount deal also includes seven asphalt terminals in Seattle, Elk Grove and Mojave, Calif.; Reno, Nev.; Phoenix, Fredonia and Flagstaff, Ariz.; and a 50 percent interest in Wright Asphalt Products Co., an operation that produces a modified rubber asphalt product sold at those terminals, according to the newspaper.