Alon US ... boosts refining capacity and high margin business

Alon USA Energy Inc. (NYSE:ALJ) (who IPO's in July we remarked on) have spent US$307 MN and assumed US$100 MNn debt to take over Paramount Petroleum Corporation, ( excluding some real estate ), which transforms the company and widens their operations base from SE United States.

This adds a 54,000 barrels per day (bpd) refinery in Paramount, California; a 12,000 barrels per day heavy crude refinery in Portland, Oregon; seven asphalt terminals located in Seattle, Washington, Elk Grove and Mojave, California, Reno, Nevada, and Phoenix, Fredonia, and Flagstaff, Arizona; and a 50% interest in Wright Asphalt Products Company, which specializes in patented tire rubber modified asphalt.

Alon is also buying Edgington Oil Company assets, a heavy crude refining company located in Long Beach, California, for approximately $52 million in cash plus an amount to be determined for the value of inventory.

Alon USA chairman David Wiessman says "These two acquisitions will more than double our refining capacity, improve our risk profile as a single refiner and allow us to expand into higher value-added asphalt business. We will continue to pursue well-thought-out growth in the Southwest."

Alon USA has withdrawn from the the tender for Oil Refineries Ashdod. The company was a partner with Dor Alon in the tender.

Fill ya boots.