Already one of the top U.S. refining companies with a throughput capacity of 2.5 million barrels per day, Valero will become the largest refiner in North America with a throughput capacity of 3.3 million per day and revenues of $70 billion, when its $8-billion acquisition of Premcor is completed on Dec.31.
"This transaction is one of the largest and most strategic acquisitions in Valero's history," said Bill Greehey, CEO, in announcing the acquisition on April 25. "We are acquiring several very strategic refineries for significantly less than their combined replacement value, and we'll be improving the profitability of these plants by capturing synergies, improving their reliability and yields, and increasing their capacities. This acquisition gives us the best geographic diversity among U.S. refiners with a presence in all of the major refining regions, which further increases our earnings stability. What's more, it complements our complex refining system and increases the amount of sour crude oil that we process."
Special Recognition
In June 2005, Valero announced an agreement with the U.S. Environmental Protection Agency (EPA) and the states of Texas, Louisiana, Oklahoma, New Jersey and Colorado to invest more than $700 million in environmental improvement projects to further reduce emissions across the company's U.S. refining system. The agreement is part of the EPA's industry-wide Refinery Enforcement Initiative, an ongoing program in which the EPA and refiners enter into agreements for the installation of significant new emission control equipment based on alleged past environmental permitting issues at U.S. refineries.
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