Murphy Oil has agreed to sell its 35,000 b/d refinery and related assets in Superior, Wisconsin, to Calumet Specialty Products for $214 million, the companies said Monday.
The deal also includes the refinery's crude and fuel stocks, valued at $260 million as of June 30, El Dorado, Arkansas-based Murphy and Indianapolis-based Calumet said in separate statements.
The sale is expected to close later in the third quarter or in the fourth quarter.
"We are pleased to announce the sale of our Superior Refinery as we execute on our strategy to exit the refining business," said David Wood, Murphy's president and CEO. "The price realization for Superior represents fair market value for the assets and we look to redeploy the proceeds and working capital from the sales process into our upstream growth business."
Murphy also has a 125,000 b/d refinery in Meraux, Louisiana, and a 130,000 b/d refinery in Milford Haven, Wales.
Indianapolis-based Calumet is a refiner and processor of specialty hydrocarbon products, including naphthenic and paraffinic oils, aliphatic solvents, white mineral oils, petroleum waxes, petrolatum and hydrocarbon gels, according to the company's website. The company has six plants in Louisiana, Pennsylvania, Texas and Illinois.
According to Calumet, the Wisconsin refinery has a refinery complexity rating of 8.9 and takes crude from the northern US and Canada.
"The Superior refinery acquisition provides us greater scale and development potential to our refining business," said Vice Chairman and CEO Bill Grube. "The acquired assets will increase our current throughput capacity by 50% to approximately 135,000 b/d and will add beneficial geographical diversity to our assets."
