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COP splits Refining & Mkt – spins off downstream US assets

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 9 years, 4 months ago.

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  • #2193

    basil parmesan
    Participant

    Factbox: ConocoPhillips downstream U.S. assets

    By Selam Gebrekidan;editing by Sofina Mirza-Reid | Reuters -July 14, 2011
    (Reuters) – ConocoPhillips said on Thursday it will spin off its refining and marketing operation, sending shares up more than 9 percent.
    ConocoPhillips is the largest refiner in the United States, solely operating about 1.8 million barrels-per-day (bpd) of capacity and an additional 254,000 bpd capacity because of its 50 percent share at two refineries it operates with Canadian oil company Cenovus Energy, data from the U.S. Energy Information Administration shows.
    The company is the only refiner in the United States with major assets in all the main refinery hubs in the Gulf, East and West Coasts, and the Midwest. About 41 percent of Conoco’s refining capacity is concentrated in the U.S. Gulf Coast.
    With the spin-off, Conoco’s new downstream company will be the biggest independent in the business, displacing Valero that has long held that position.
    Conoco’s 238,000 bpd Linden, New Jersey, refinery dominates the East Coast refining market, a market refiners like Valero have exited. An early June fire at Linden refinery decimated regional refinery capacity by 7.1 percentage points in the following week.
    The company recently announced plans to reduce its refining capacity over a two year period ending in 2012.
    Below is a list of refineries owned and operated by the company.
    CAPACITY REFINERY (THOUSAND BARRELS-PER-DAY)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    Belle Chasse, Louisiana 247
    Sweeny, Texas 247
    Westlake, Louisiana 239.4
    Linden, New Jersey 238
    Ponca City, Oklahoma 198.4
    Trainer, Pennsylvania 185
    Wilmington California 139
    Rodeo, California 120.2
    Ferndale, Washington 100
    Billings, Montana 58
    Prudhoe Bay, Alaska 15
    Wood River, Illinois* 362
    Borger, Texas* 146
    *Conoco owns 50 percent partnership with Cenovus Energy
    (Compiled by Selam Gebrekidan;editing by Sofina Mirza-Reid)

  • #5000

    Charles Randall
    Participant

    Here is update on COP split of its upstream & downstream assets. All but 3 of listed US Refineries (PN/AK/WA) have cokers.
    Looks like the market liked the news, CoP stock up over $4 this morning – but Wallstreet folks are idiots when it comes to what is good strategic move for oil industry and this isn’t one.

    But COP isn’t alone doing this dance – MAP completed its spin-off downstream assets on July 1, 2011 (but they at least used funds purchase Eagle Ford Shale Assets $3.5B).

    COP was 3rd largest US Refiner & 5th largest Global Refiner. But COP along with several Majors listed in Global top 15 (XOM-1st, Shell-2nd, BP – 4th, COP-5th & Valero – 6th) could be eleminated when asset sales, refinery closures and spin-offs complete in 2012. All the other top Global refineries are Government owned refiners (like Sinopec/CNPC/PDVSA/PEMEX/PBR).

    Details are fuzzy – not sure who is getting the kids in this COP divorce. But COP coking Tech already sold to Bechtel & some other Technologies (HF Alky, Carbon Fibers) were eliminated, greatly minimized earlier.
    Regards

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