From coast to coast, U.S. refineries are available for the taking, but nobody is...
NEW YORK - From coast to coast, U.S. refineries are available for the taking, but nobody is buying.
Even with U.S. energy production at an all-time record, these properties, located from Washington state to Pennsylvania, are having trouble finding bidders because of unfavorable locales, worries about falling margins, and the coming restart of nearby facilities in the Caribbean that will add to competition, bankers and analysts said.
“When some of your really big companies have stopped buying refineries, that really slows things down,” said Matthew Blair, head of refiners equity research at Tudor Pickering Holt & Co. “Refiners don’t want to get overleveraged if they’re on the downside of the cycle where margins are eroding,” said Matt Flanagan, downstream energy practice director at Opportune, based in Houston.
East Coast assets have proven particularly tough to unload, as they lack both the scale of U.S. Gulf facilities and access to U.S. crude production. They also face competition from two shuttered Caribbean plants due to restart in coming months that have easier access to overseas crude and more flexible fuel distribution systems.
FILE PHOTO: The Philadelphia Energy Solutions plant refinery is seen in Philadelphia, Pennsylvania, U.S., August 21, 2019. REUTERS/Mark Makela/File Photo
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