Delek US

Delek US Holdings, Inc.
Subsidiary
Traded as NYSE: DK
Industry Oil & Gas Refining & Marketing
Predecessor Fina
Founded 2001
Headquarters Corporate headquarters in Brentwood, Tennessee, United States
Key people
 Ezra Uzi Yemin, (Chairman, President and Chief Executive Officer)
Kevin Kremke, (Executive Vice President and Chief Financial Officer)
Frederec Green, (Executive Vice President and Chief Operating Officer)
Products Fuels, Petrochemicals
Revenue DecreaseUS$4.34 Billion (FY 2015)[1]
IncreaseUS$210.00 Million (FY 2015)[1]
IncreaseUS$52.8 Million (FY 2015)[1]
Total assets DecreaseUS$2.22 Billion (FY 2012)[2]
Total equity IncreaseUS$584.71 Million (FY 2012)[2]
Number of employees
 4,680
Website www.delekus.com

Headquartered in Brentwood, Tennessee, ALON USA Energy, Inc. was an independent refiner and marketer of petroleum products, operating primarily in the western and south-central regions of the United States.

With a refining capacity of nearly 217,000 barrels per day, Alon owned and operated heavy crude oil refineries in Big Spring, Texas, and Paramount, Long Beach, and Bakersfield, California (collectively known as the California refineries), as well as a light crude oil refinery in Krotz Springs, Louisiana. Alon was also a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the southwestern and western United States. ALON Brands, Inc., the retail and branded marketing subsidiary of Alon USA, marketed and supplied ALON motor fuels to independent and company-owned retail locations. ALON Brands was the largest licensee of 7-Eleven in the U.S., operating more than 300 convenience stores in Texas and New Mexico.

In July 2017, Delek US Holdings purchased Alon USA in an all-stock transaction.

Expansion

Alon U.S.A. announced it would buy Paramount Petroleum Corp. for $307 million cash and assume $100 million in debt. The deal closed in August 2006. Alon U.S.A. also planned to buy the assets of Edgington Oil Co. for $52 million cash, a deal delayed in closing due to an FTC request for further information. Among Paramount's assets are a 54,000 barrels per day (8,600 m3/d) refinery in Paramount, California, and seven asphalt terminals. Edgington is a topping refinery located in Long Beach, California, with a listed capacity of about 40,000 barrels per day (6,400 m3/d).

In July 2006, Alon USA closed on the transaction to purchase 40 convenience stores from Good Time Stores. In March 2007, Alon USA announced that it would purchase Abilene-based Skinny's convenience stores for 70 million dollars.

In May 2008, Valero announced they had sold the 85,000 BPD Krotz Springs, Louisiana, refinery to Alon USA for $433 million.

On June 2, 2010, Alon announced that it has completed the acquisition of the Bakersfield, California, refinery from Big West of California, LLC, a subsidiary of Flying J Inc. The purchase price of the Bakersfield transaction, including substantially all of the assets of Big West, consists of $40 million in cash. The company also acquired the Bakersfield refinery's existing inventory as of the closing date of the transaction. The Bakersfield refinery is located in California's Central Valley and has the capacity to refine up to 70,000 barrels per day of crude oil. The refinery is supplied by crude oil produced in the San Joaquin Valley with its products marketed in California and is a major provider of motor fuels in central California.

Merger with Alon USA

On July 1, 2017, Delek US Holdings Inc., Brentwood, Tennessee, completed its purchase of Alon Israel Oil Co. Ltd.’s US-based refining and marketing subsidiary Alon USA Energy Inc.[3] As part of the all-stock transaction, Delek acquired the remaining 53% of Alon USA’s common stock not already owned by Delek. The combined company will be led primarily by Delek US’ existing management team.

Refinery explosion

On February 18, 2008, an explosion occurred at an oil refinery in Big Spring, Texas, owned by Alon USA. The plant employs about 170 employees and has a capacity of 70,000 barrels (11,000 m3) of oil a day. This event caused portions of Interstate 20 to be shut down. Initial reports stated that four workers were injured.[4] In addition to the four workers, a passing motorist on Interstate 20 sustained an injury when debris struck her vehicle, according to local reports.[5] According to a press release by the company on February 19, the explosion occurred in the area around the propylene splitter unit, although the cause has not yet been determined.[6] Information on the company's website states that ALON USA acquired ownership of the Big Spring, Texas, refinery in August 2000, when ALON Israel Oil Company Ltd. purchased the U.S. fuels marketing and refining assets of Atofina Petrochemicals, Inc. (FINA). The refinery has been in service for more than 75 years, and produces fuel products and asphalt for the southwestern United States. It was constructed in 1928 by the original owner, Joshua Cosden.

References

  1. 1 2 3 Alon USA Energy (ALJ) annual SEC income statement filing via Wikinvest.
  2. 1 2 Alon USA Energy (ALJ) annual SEC balance sheet filing via Wikinvest.
  3. ↑ "Delek US, Alon USA complete merger". Oil&Gas Journal. 3 July 2017.
  4. ↑ "West Texas Refinery Explodes". Associated Press. 18 February 2008.
  5. ↑ "Miracle on I-20: 5 injured in huge explosion". Big Spring Herald. Big Spring Herald. February 19, 2008.
  6. ↑ "Alon USA Provides Additional Information Regarding the Explosion at the Big Spring Refinery". Alon USA. 18 February 2008.
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