Profile: Western Refining Inc (WNR.N)
9 Oct 2015
Western Refining, Inc. (Western), incorporated on September 16, 2005, is an independent crude oil refiner and marketer of refined products. The Company operates through four business segments: refining, Northern Tier Energy LP (NTI), Western Refining Logistics, LP (WNRL) and retail. The Company’s refining segment owns and operates two refineries in the Southwest that process crude oil and other feedstocks primarily into gasoline, diesel fuel, jet fuel and asphalt. The Company markets refined products to customer base, including wholesale distributors and retail chains. The refining segment also sells refined products in the Mid-Atlantic region and Mexico. The NTI segment owns and operates refining and transportation assets and operates and supports retail convenience stores primarily in the Upper Great Plains region of the United States. The WNRL segment owns and operates terminal, storage, transportation and provides related services primarily to its refining segment in the Southwest. The WNRL segment also includes wholesale assets consisting of a fleet of crude oil and refined product truck transports and wholesale petroleum product operations in the Southwest region. WNRL receives its product supply from the refining segment and third-party suppliers. The Company’s retail segment operates retail convenience stores and unmanned commercial fleet fueling locations located in the Southwest. The retail convenience stores sell gasoline, diesel fuel and convenience store merchandise.
The Company’s refining group operates a refinery in El Paso, Texas (the El Paso refinery) and a refinery near Gallup, New Mexico (the Gallup refinery). The Company supplies refined products to the El Paso area through WNRL and other logistics assets adjacent to the El Paso refinery and to other areas, including Tucson, Phoenix, Albuquerque and Juarez, Mexico through third-party pipeline systems linked to its El Paso refinery. The Company supplies refined products to the Four Corners region and throughout Northern New Mexico from WNRL operations in Albuquerque, Bloomfield and Gallup, New Mexico. As of October 15, 2014, the Company’s refining segment also includes the operations of the Company’s refined products marketing and distribution in the Mid-Atlantic region. The Company’s refineries makes different 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 WNRL and its retail group directly to third-party wholesalers and retailers, commercial accounts and sales and exchanges with oil companies.
The Company’s El Paso refinery has a crude oil throughput capacity of around 131,000 barrel per day (bpd) with access to logistics assets, including approximately 4.3 million barrels of storage capacity, a refined product terminal and an asphalt plant and terminal. The Company’s supplies refined products to the El Paso area through WNRL and logistics assets, including the light product distribution terminal and other truck and rail racks located at the El Paso refinery and to other areas, including Tucson, Phoenix, Albuquerque and Juarez, Mexico, through third-party pipeline systems linked to its El Paso refinery. It delivers gasoline and distillate products to Tucson and Phoenix through Kinder Morgan's East Line and to Albuquerque and Juarez, Mexico, through pipelines owned by Magellan Midstream Partners, LP (Magellan).
The Company’s Gallup refinery, located near Gallup, New Mexico, has a crude oil throughput capacity of around 25,000 bpd and access to WNRL segment assets, including approximately 595,000 barrels of storage capacity. The Company markets refined products from the Gallup refinery primarily in Arizona, Colorado, New Mexico and Utah. The Company’s primary supply of crude oil and natural gas liquids for its Gallup refinery comes from Colorado, New Mexico and Utah. The Company distributes all gasoline and diesel fuel produced at its Gallup refinery through the truck loading rack owned and operated by its WNRL segment. The Company supplies these refined products to Arizona, Colorado, New Mexico and Utah, primarily through a fleet of refined product trucks operated by WNRL and common carriers.
The Company competes with Valero Energy Corporation, Phillips 66 Company, Alon USA Energy, Inc., HollyFrontier Corporation, Tesoro Corporation, Chevron Products Company, Suncor Energy, Inc., Shell Oil Company, BP Oil, CITGO Petroleum Corporation and Exxon Mobil Corporation.
The NTI's St. Paul Park refinery located in Southeast St. Paul Park, Minnesota, has a crude oil capacity of around 97,800 bpd and has the ability to process a variety of light, heavy, sweet and sour crudes into higher value refined products. NTI's refinery is an integrated refining operation that includes storage and transportation assets. The St. Paul Park refinery produces refined products, including gasoline, diesel, jet fuel and asphalt that are marketed to resellers and consumers primarily in the Petroleum Administration for Defense District (PADD) II region. NTI's transportation assets include a 17% interest in the Minnesota Pipe Line Company (MPL), an eight-bay light product terminal adjacent to the refinery, a seven-bay heavy product loading rack located on the refinery property, rail facilities for shipping liquefied petroleum gas (LPG) and asphalt and receiving butane, isobutane and ethanol and a barge dock on the Mississippi River used primarily for shipping vacuum residue and slurry. As of December 31, 2014, NTI's storage assets had an operating capacity of approximately 3.8 million barrels, including around 0.8 million barrels of crude oil storage and 3.0 million barrels of feedstock and product storage. The light refined products that include gasoline and distillates are distributed from the St. Paul Park refinery through a pipeline and terminal system owned by Magellan that has facilities throughout the Upper Great Plains. Asphalt and heavy fuel oil are transported from the refinery through truck from NTI's seven-bay heavy products terminal and through rail and barge through its rail facilities and Mississippi River barge dock and are sold to different customers.
The NTI segment has a retail-marketing network of around 258 SuperAmerica Retail convenience stores, as of February 27, 2015, located throughout Minnesota, Wisconsin and South Dakota. NTI operates 165 stores of which two are owned and the remainder leased, and supports 93 franchised stores. NTI brands all of its Company-operated and franchised convenience stores as SuperAmerica. NTI also owns and operates SuperMom’s Bakery that prepares and distributes baked goods and other prepared items for sale in NTI's retail outlets and for other third parties.
The Company competes with Koch Industries, Holiday, Kwik Trip, Marathon, Freedom Valu Centers, Costco and Sam's Club.
The Company’s WNRL segment owns and operates terminal, storage, transportation and wholesale assets and provides related services primarily to the Company’s refineries in the Southwest. As of December 31, 2014, Western's ownership of WNRL consisted of a 100% interest in WNRL's general partner and a 66.2% interest in a limited partnership that Western controls through the general partner. WNRL's pipeline and gathering assets consist of approximately 300 miles of crude oil pipelines and gathering systems that serve as the primary source of crude oil for its Gallup refinery and provide access to shale crude oil production in the Delaware Basin and southern New Mexico for shipment to its El Paso refinery through the Kinder Morgan crude oil pipeline. These pipeline systems connect at various points to an aggregate of approximately 620,000 barrels of active crude oil storage located primarily in the Delaware Basin and in the Four Corners area.
WNRL's terminalling, transportation and storage infrastructure consist of on-site refined product distribution terminals at the El Paso and Gallup refineries and refined products terminals located in Bloomfield and Albuquerque, New Mexico. The Bloomfield product distribution terminal is permitted to operate at 19,000 bpd with a total storage capacity of approximately 734,550 barrels and a truck loading rack with four loading spots. Western maintains a long-term third-party exchange agreement to supply product through a pipeline connection to the Bloomfield product distribution terminal. WNRL provides additional product deliveries to Bloomfield from its truck fleet. The Albuquerque product distribution terminal is permitted to operate at 27,500 bpd with a refined product storage capacity of approximately 170,000 barrels and a truck loading rack with two loading spots. This terminal receives product deliveries through truck or pipeline, including deliveries from the Company’s El Paso and Gallup refineries. These assets include approximately 6.9 million barrels of active shell storage capacity. These assets primarily receive, store and distribute crude oil, feedstock and refined products for Western’s Southwest refineries. WNRL also provides fee-based asphalt terminalling and processing services at an asphalt plant and terminal in El Paso and asphalt terminalling services at three asphalt terminals in Albuquerque, Phoenix and Tucson that have a combined storage capacity of around 473,000 barrels.
WNRL's wholesale assets include lubricant and bulk petroleum distribution plants and a fleet of crude oil and refined product trucks and lubricant delivery trucks. WNRL distributes wholesale petroleum products primarily in Arizona, California, Colorado, Nevada, New Mexico and Texas. WNRL purchases petroleum fuels and lubricants primarily from the refining segment and from third-party suppliers.
The Company competes with Pro Petroleum, Inc., Southern Counties Fuels, Synergy Petroleum, LLC, SoCo Group, Inc., C&R Distributing, Inc. and Brewer Petroleum Services, Inc.
The Company’s retail group operates retail stores that sell different grades of gasoline, diesel fuel and convenience store merchandise to the general public. The Company’s retail segment also operates unmanned commercial fueling locations (cardlocks) that sell different grades of gasoline and diesel fuel to contract customers' vehicle fleets. As of February 27, 2015, the Company’s retail group operated 261 retail stores located in Arizona, Colorado, New Mexico and Texas and 50 cardlocks located in Arizona, California, Colorado, New Mexico and Texas. The Company supplies its retail gasoline and diesel fuel inventories through WNRL and purchase general merchandise, as well as beverage and food products from various suppliers. The Company’s retail stores operate under various brands, including Giant, Western, Western Express, Howdy's, Mustang and Sundial. The gasoline brands sold through these stores include Western, Giant, Mustang, Phillips 66 Company, Conoco, 76, Shell Oil Company, Chevron, Mobil and Texaco.
The Company competes with Alon USA Energy, ampm, Brewer Oil Company, Circle K, Maverik, Murphy Oil, Quik-Trip, Shay Oil, 7-2-11 food stores, Wal-Mart Stores, Inc. and Kroger Company.
Western Refining Inc
6500 Trowbridge Dr
EL PASO TX 79905-3402