Valero negotiating for El Paso's Corpus Christi refinery

April 17, 2001
Valero Energy Corp., San Antonio, Tex., Tuesday confirmed it is negotiating with El Paso Energy Corp., Houston, to buy its 100,000 b/d Corpus Christi, Tex., refinery. Valero already owns a 94,100-b/d refinery in Corpus Christi and has made a series of refinery acquisitions since 1997.


By the OGJ Online Staff

HOUSTON, Apr. 17 -- Valero Energy Corp., San Antonio, Tex., Tuesday confirmed it is negotiating with El Paso Energy Corp., Houston, to buy its 100,000-b/d Corpus Christi, Tex., refinery.

Mary Rose Brown, Valero vice-president of corporate communications, told OGJ Online, "The former Coastal Corp. facility fits our acquisition criteria. We are in negotiations with El Paso."

El Paso completed a $24 billion merger with Coastal Corp., Houston, in January. Valero already owns a 94,100 b/d refinery in Corpus Christi. Brown said she could not comment regarding the El Paso refinery negotiations.

Valero owns and operates six refineries in Texas, California, Louisiana, and New Jersey with a combined crude capacity of 723,000 b/d.

During an earnings conference call late Tuesday, Bill Greehey, Valero chairman and CEO, said, "We remain committed to our strategy of growth through accretive acquisitions and investments in high-return internal projects. There continue to be attractive acquisition candidates."

Valero reported record net income for the quarter ended Mar. 31, 2001, of $136.1 million, $2.13/share, compared with $30.7 million, or 54¢/share, for the same period last year.

"Industry fundamentals remain outstanding and are much better than last year at this time," Greehey said. "Fundamentals are in place for this strong refining cycle to last well into the future."

He predicted 2002 financial returns will beat the 2001 financial returns, adding, "We're going to have some acquisitions behind us."

Earlier this year, Valero agreed to acquire leading California asphalt supplier Huntway Refining Co., Newhall, Calif., in a $78 million transaction. (OGJ Online, Mar. 20, 2001).

Valero bought ExxonMobil Corp.'s 135,000-b/d Benicia, Calif., refinery last year. The Benicia refinery is adjacent to Huntway's largest refinery, a 10,000-b/d plant.