Profile: Western Refining Inc (WNR.N)

WNR.N on New York Stock Exchange

41.27USD
17 Apr 2014
Price Change (% chg)

$1.30 (+3.25%)
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Volume
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$43.00
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Western Refining, Inc. (WNR), incorporated in September 2005, is an independent crude oil refiner and marketer of refined products and also operates service stations and convenience stores. WNR operates in three business segments: the refining group, the wholesale group, and the retail group. The Company owns and operates two refineries with a total crude oil throughput capacity of approximately 151,000 barrels per day. In addition to its 128,000 barrels per day refinery in El Paso, Texas, WNR also owns and operates 23,000 barrels per day refinery near Gallup, New Mexico. On December 29, 2011, the Company completed the sale of its Yorktown refining and terminal assets. Its primary operating areas encompass West Texas, Arizona, New Mexico, Utah, Colorado, and the Mid-Atlantic region. In addition to the refineries, it also owns and operates stand-alone refined product distribution terminals in Albuquerque, New Mexico, and Bloomfield, as well as asphalt terminals in Phoenix and Tucson, Arizona; Albuquerque, and El Paso. At February 24, 2012, WNR also operated 210 retail service stations and convenience stores in Arizona, Colorado, New Mexico, and Texas; a fleet of crude oil and refined product truck transports, and a wholesale petroleum products distributor that operates in Arizona, California, Colorado, Nevada, New Mexico, Texas, Maryland and Virginia. Effective November 12, 2013, Western Refining Inc acquired a 38.681% interest in Northern Tier Energy LP.

Refining Segment

The Company’s refining group operates the two refineries and related refined product distribution terminals and asphalt terminals. At the refineries, the Company refines crude oil and other feedstocks into refined products, such as gasoline, diesel fuel, jet fuel, and asphalt. Its refining group operates a refinery in El Paso, Texas (the El Paso refinery) and a refinery near Gallup, New Mexico (the Gallup refinery), two onsite refined product distribution terminals at the El Paso and Gallup refineries, and two stand-alone refined product distribution terminals in Albuquerque and Bloomfield, New Mexico. WNR’s refining group operates a crude oil gathering pipeline system in the Four Corners region of New Mexico. On December 29, 2011, it completed the sale of an 82 mile section of this pipeline starting north of Lynch, New Mexico, and extending south to Jal, New Mexico. Its pipeline originates at the sale point north of Lynch and has the capacity to transport crude oil from Southeast New Mexico to the Four Corners region.

The Company supplies refined products to the Four Corners area through operations at the Bloomfield product distribution terminal, and by utilizing a pipeline connection and long-term exchange supply agreement. Through the long-term exchange agreement, the Company supplies barrels to the Bloomfield product distribution terminal in exchange for barrels produced at the El Paso refinery. The Company’s refineries make various grades of gasoline, diesel fuel, jet fuel, and other products from crude oil, other feedstocks, and blending components. It also acquires refined products through exchange agreements and from various third-party suppliers. The Company sells these products through its own wholesale group and service stations, independent wholesalers and retailers, commercial accounts, and sales and exchanges with oil companies.

WNR’s El Paso refinery has a crude oil throughput capacity of 128,000 barrels per day with approximately 4.3 million barrels of storage capacity, a refined product terminal, and an asphalt plant and terminal. Crude oil is delivered to the Company’s El Paso refinery via a 450-mile crude oil pipeline owned and operated by Kinder Morgan under a 30-year crude oil transportation agreement. The system handles both WTI and WTS crude oil with its main trunkline into El Paso used for the supply of crude oil to the Company. The Company also has access to blendstocks and refined products from the Gulf Coast through a pipeline that runs from the Gulf Coast to El Paso. Outside of the El Paso area, which is supplied via its El Paso refinery product distribution terminal, WNR provides refined products to other areas, including Tucson, Phoenix, Albuquerque, and Juarez, Mexico. Its refined products are delivered to Tucson and Phoenix through the Kinder Morgan East Line, and to Albuquerque and Juarez, Mexico through pipelines owned by Plains All American Pipeline L.P. (Plains). WNR also sells its refined products at its product distribution terminal and rail loading facilities in El Paso. Another pipeline owned by Kinder Morgan provides diesel fuel to the Union Pacific railway in El Paso.

The Company’s refining group operates a refinery near Gallup, New Mexico. Its Gallup refinery has a crude oil throughput capacity of 23,000 barrels per day. As of December 31, 2011, Bloomfield facility operated as a refined product distribution terminal. The Company markets refined products from the Gallup refinery primarily in Arizona, Colorado, New Mexico, and Utah. Its primary supply of crude oil and natural gas liquids comes from Colorado, New Mexico, and Utah. Its Gallup refinery is capable of processing approximately 6,000 barrels per day of natural gas liquids. It purchases crude oil from a number of sources, including oil companies and independent producers. Its Gallup refinery has its own product distribution terminal. WNR owns stand-alone refined product terminals in Albuquerque and Bloomfield. The Bloomfield product distribution terminal is permitted to operate at 19,000 barrels per day. This terminal has approximately 251,000 barrels of refined product tankage and a truck loading rack with three loading spots. Additionally, there are approximately 470,000 barrels of crude oil and feedstock tankage available for storage for the Gallup refinery. The Albuquerque product distribution terminal is permitted to operate at 27,500 barrels per day. This terminal has approximately 170,000 barrels of refined product tankage and a truck loading rack with two loading spots. Product deliveries to this terminal are made by truck or by pipeline, including deliveries from its El Paso and Gallup refineries. The Company’s Gallup gasoline and diesel fuel production is distributed in Arizona, Colorado, New Mexico, and Utah, primarily via a fleet of refined product trucks operated by its wholesale group.

The Company competes with Valero Energy Corp., ConocoPhillips Company, Alon USA Energy, Inc., HollyFrontier Corporation, Tesoro Corporation, Chevron Products Company and Suncor Energy, Inc.

Wholesale Segment

ENR’s wholesale group includes a number of lubricant and bulk petroleum distribution plants, unmanned fleet fueling operations, a bulk lubricant terminal facility, and a fleet of crude oil and refined product trucks and lubricant delivery trucks. Its wholesale group distributes wholesale petroleum products primarily in Arizona, California, Colorado, Nevada, New Mexico, Texas, Utah, Virginia, and Maryland. Beginning in January 2011, wholesale operations included the distribution of refined product through the refined product distribution terminal at the recently sold Yorktown facility. Following the sale of its Yorktown terminal assets, the Company’s wholesale business continued to operate through the terminal as a customer. Its wholesale group purchases petroleum fuels and lubricants from its refining group and from third-party suppliers. Its principal customers are retail fuel distributors and the mining, construction, utility, manufacturing, transportation, aviation, and agricultural industries.

The Company competes with Pro Petroleum, Inc., Southern Counties Fuels, Union Distributing, Brown Evans Distributing Co., Maxum Petroleum, Inc., Shell Oil Company, BP Oil, CITGO Petroleum Corporation, Valero Energy Corporation and Exxon Mobil Corporation.

Retail Segment

The Company’s retail group operates service stations that include convenience stores or kiosks. Its service stations sell various grades of gasoline, diesel fuel, general merchandise, and beverage and food products to the general public. WNR’s wholesale group supplies all the gasoline and diesel fuel that its retail group sells. The Company purchases general merchandise, as well as beverage and food products from various suppliers. At February 24, 2012, its retail group operated 210 service stations with convenience stores or kiosks located in Arizona, New Mexico, Colorado, and Texas. At February 24, 2012, WNR’s retail group had 210 convenience stores operating under various brands, including Giant, Western, Western Express, Howdy's, Mustang, and Sundial. Gasoline brands sold through these stores include Western, Giant, Mustang, Phillips 66, Conoco, Shell, Chevron, and Texaco.

The Company competes with Valero Energy Corp., Alon USA Energy, K&G Markets, Murphy Oil, Maverik, Circle K, Brewer Oil Company, Quik-Trip, ampm, 7-2-11 food stores, Costco Wholesale Corp. and Wal-Mart Stores, Inc.

Company Address

Western Refining Inc

6500 TROWBRIDGE DRIVE
EL PASO   TX   79905
P: +1915.7753488
F: +1302.6555049

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