ChevronTexaco and Western Refining Reach Definitive Agreement for Sale of El Paso Refinery
SAN RAMON, Calif., June 2, 2003 -- ChevronTexaco Corp. today announced a definitive agreement to sell its interest in its El Paso, Texas, refinery and certain associated assets to Western Refining Co., L.P.
Under the agreement, Chevron Products Co., a ChevronTexaco company, will also sell its El Paso light products terminal to Western Refining. Since 1993, Chevron Products and Western Refining have had an operating agreement whereby Chevron Products operates Western's part of the 90,000-barrel-per-day refinery complex. The sale does not include Chevron Products' El Paso asphalt plant.
Chevron Products will continue to market its branded gasoline, asphalt and other petroleum products throughout the area.
The agreement also calls for Chevron Pipe Line Co., a ChevronTexaco company, to sell an associated crude oil pipeline system to Kaston Pipeline Co., L.P., a subsidiary of Western Refining.
The sale is expected to close after all regulatory approvals and financing are obtained. Financial details of the agreement were not disclosed.
"While the El Paso Refinery has been an important part of our system for many years, our strategic focus is shifting," said Dave Reeves, president, Chevron Products Co. "This agreement advances our corporate objective of focusing investments in areas with the greatest potential for long-term growth and shareholder return, while enabling us to continue to provide our customers with premium products through our new business relationship with Western Refining."
Western Refining President and owner Paul Foster said, "It has been our desire for some time to buy the Chevron refinery and associated pipeline assets, and we look forward to being the owner and operator. Chevron and Western have had a great relationship and we look forward to our new business relationship."
Chevron's El Paso Refinery began operations in 1928. Approximately 270 people are employed at the refinery, light products terminal and crude oil pipeline system.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
This news release contains forward-looking statements about the planned sale of ChevronTexaco's interests in the El Paso, Texas, refinery and certain associated assets to Western Refining Co. L.P. These statements include the expected closing date for the sale and ChevronTexaco's future business activities in the El Paso area. The statements are based on management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are the length of time required to complete and the actual results of due diligence activities by the companies; terms of the final sales agreement; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: June 2003