Western Shuts Down Yorktown Refining Ops
September 14, 2010
Western Refining, Inc. on Monday announced that it has completed the safe and orderly shutdown of its refining process units at its Yorktown, Virginia refinery. The suspension of refining operations at Yorktown was announced on August 5, 2010. The decision was based on the continued outlook for weak refining margins on the East Coast.
"We have processed the remaining inventory and completed the shutdown of refining operations at Yorktown. I want to commend our employees for safely securing the plant and their professionalism during this difficult time. At some point in the future, if the refining economics on the East Coast improve, we would consider restarting refining operations," said Mark Smith, Western's President - Refining and Marketing.
The Company will continue to operate the products terminal and storage facility and supply the region with finished products. The Company is continuing to evaluate all strategic alternatives for the facility.
Jeff Stevens, President and CEO, said, "We have had discussions with numerous interested parties concerning the products terminal and storage facilities and are very encouraged about the opportunities for these services."
Stevens continued, "The decision to suspend refining operations at the Yorktown refinery is one of several operational changes that we have taken recently. We think these operational changes combined with the reduced cost structure of the Company and the location of our business units in the strengthening Southwest region, position the Company well for the future."
As previously announced, the Yorktown decision will result in the Company recording a one-time cash charge totaling approximately $13 million during the second half of 2010. Additionally, the Company expects to generate approximately $50 million in cash from the reduction of working capital at Yorktown in the third quarter.
Western Refining, Inc. is an independent refining and marketing company headquartered in El Paso, Texas. Western operates refineries in El Paso, and Gallup, New Mexico. Western's asset portfolio also includes refined products terminals in Albuquerque and Bloomfield, New Mexico and Yorktown, Virginia, asphalt terminals in Phoenix and Tucson, Arizona, Albuquerque, and El Paso, retail service stations and convenience stores in Arizona, Colorado, and New Mexico, a fleet of crude oil and finished product truck transports, and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas, and Utah.
Source: Western Refining, Inc.
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