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PBF Energy Creates West Coast system with purchase of Shell Martinez refinery

Christian Fernsby |
PBF Energy announced that its subsidiary has signed a definitive agreement to purchase the 157,000 barrel-per-day Martinez refinery, and related logistics assets, from Equilon Enterprises LLC d/b/a Shell Oil Products US.

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With the acquisition, PBF's total throughput capacity will increase to over one million barrels per day and its refining system will have a consolidated Nelson Complexity of 12.8.

Based on timing of close, the upfront acquisition price will be between $900.0 million and $1.0 billion.

In addition to the upfront consideration, there are a number of unique transaction terms that drive incremental value for PBF and reduce our invested capital.

Notably, direct and indirect first quarter 2020 turnaround costs and certain additional future capital expenses will be funded by the Seller.

The value of working capital will be determined at closing.

The Martinez transaction is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.

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