Post recently deleted on purchasing a third Gulf Coast refinery and selling off smaller Mid Con refineries. Go back to January thread on the following post: Something is on the Refining Horizon.. Where there is smoke, there is fire.
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The Venezuelan government now has attorneys calling for the original auction to be nullified based on the amber bid severely undervaluing the Citgo assets, which they claim are worth around $15 billion compared to ambers measly $5ish billion bid. Take this to the bank- Amber isn’t going to be allowed to buy Citgo at that fire sale price. The question now is who enters as a strategic bidder and has the dry powder to bite off one or all 3 of those refineries, and will that also result in the divestiture of smaller less profitable higher cost refineries MPC already owns? I would assume all will be revealed over the next month or so as the OFAC has delayed a decision on granting amber a license to June 19th. I expect fireworks on this and soon. Enjoy the show!
Anyone else find it interesting that the oFAC won’t give amber energy the go ahead on their Citgo purchase? Several delays most recent being to mid June. Can google this and read the Bloomberg and Reuters articles that confirm all this. Something is brewing. Lake Charles is a pretty big gulf coast refinery. OFAC may just nullify that auction and request a new one where biddders enter and a sum of the parts type auction where bidders carve out what they want generates more $$$. Just a theory but a lot of people quietly whispering that the delays of the government on the Citgo sale are pretty strange…..
@v8 what’s wrong with the smaller refineries? not as profitable?
@v4 they have to get out of the smaller refineries, especially in the North region. Probably should dump Canton, Kenai, Mandan and Di-kinson.
@v1 If true, a slap in the face to MPC’s only Ohio based refinery workers. Will MPC move their headquarters out of Findlay, Ohio down to Texas too?
By the way, Valero Port Arthur just experienced a major heater explosion. Would MPC be acquiring a boat load of mechanical integrity and safety issues ?
I heard Canton is gone in order to purchase Valero Port Arthur.
@cx Companies frequently file shelfs, and it includes the issuance of debt securities, which MPC and MPLX frequently do to refinance. Tell me you know nothing about what you’re talking about without telling me…
Isn’t part of mplx that they are a mlp and need to grow?
While not very big, I did hear we might sell off some MPLX assets- particularly marine transportation. Too much risk.
Maybe a spin off of MPLX?
MPC files mixed shelf yesterday with the SEC. Companies usually only file a mixed shelf because they need to raise a lot of money. What do they plan on doing with all this money? Acquisition?
@OP maybe a big announcement during the upcoming leadership insight forum later this month??
@OP hard doors?? replies collaborate this too!! Wow biggest news since Galveston Bay acquisition over a decade + ago. MPC stock to well over $300 per share.