• Calumet Sells San Antonio Refinery for $63MM; Lazarus Energy to Operate

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    Calumet Specialty Products Partners has closed on the sale, effective Nov. 1,
    of its 21,000-b/d oil refinery and related assets in San Antonio, Texas, the
    master limited partnership (MLP) announced Monday.

    The buyer, at $63 million in cash, is Starlight Relativity Acquisition Company
    LLC. The refinery will be operated by Lazarus Energy Holdings which operates
    the 15,000-b/d crude distillation facility in Nixon, Texas, owned by Blue
    Dolphin Energy Co.

    The related assets include a pipeline and a 250,000-bbl crude oil terminal in
    Elmendorf, Texas. Crude storage capacity at the San Antonio refinery is
    also250,000 bbl. The refinery currently produces LPG, naphtha, regular and
    premium gasoline, commercial and military jet fuel, ultra-low-sulfur diesel and
    atmospheric tower bottoms. The plant processes crude oil and condensate
    primarily from the Eagle Ford basin.

    In a related transaction, Calumet entered into a settlement and release
    agreement with TexStar Midstream Logistics LP that settles all outstanding
    litigation between the parties which will result in a release of a $38 million
    balance sheet liability.

    The "transaction further de-levers Calumet's balance sheet, reduces earnings
    volatility by lowering our exposure to fuels refining, and allows the
    Partnership to focus its time and capital more intently on our higher-return
    core Specialty Products business," Tim Go, chief executive officer, said in a
    statement.

    Over the last few years, Calumet has sold its refineries in Wisconsin
    (Superior) and North Dakota (Dickinson). In September, the MLP amended its
    borrowing facility and increased its funding from banks by about $100 million,
    a renegotiation that included putting the assets of its Great Falls, Mont.,
    refinery up as collateral.

    Indianapolis, Ind.-based Calumet is an MLP and a producer of specialty
    hydrocarbon products in North America. It processes crude oil and other
    feedstocks into customized lubricating oils, solvents and waxes used in
    consumer, industrial and automotive products and also produces fuels such as
    gasoline, diesel and jet fuel. Calumet operates 10 manufacturing facilities
    located in northwest Louisiana, northern Montana, western Pennsylvania, Texas,
    New Jersey and eastern Missouri.

    Calumet will report its third-quarter earnings on Nov. 12.

    --Beth Heinsohn, bheinsohn@opisnet.com



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