Western Refining Announces Completion of Refining Operations Shutdown at Yorktown
Company Will Continue to Operate Product Terminal and Storage Facilities
EL PASO, Texas, Sep 13, 2010 (GlobeNewswire via COMTEX) --
Western Refining, Inc. (NYSE:WNR) today announced that it has completed the safe and orderly shutdown of its refining process units at its Yorktown, Virginia refinery. The suspension of refining operations at Yorktown was announced on August 5, 2010. The decision was based on the continued outlook for weak refining margins on the East Coast.
"We have processed the remaining inventory and completed the shutdown of refining operations at Yorktown. I want to commend our employees for safely securing the plant and their professionalism during this difficult time. At some point in the future, if the refining economics on the East Coast improve, we would consider restarting refining operations," said Mark Smith, Western's President - Refining and Marketing.
The Company will continue to operate the products terminal and storage facility and supply the region with finished products. The Company is continuing to evaluate all strategic alternatives for the facility.
Jeff Stevens, President and CEO, said, "We have had discussions with numerous interested parties concerning the products terminal and storage facilities and are very encouraged about the opportunities for these services."
Stevens continued, "The decision to suspend refining operations at the Yorktown refinery is one of several operational changes that we have taken recently. We think these operational changes combined with the reduced cost structure of the Company and the location of our business units in the strengthening Southwest region, position the Company well for the future."
As previously announced, the Yorktown decision will result in the Company recording a one-time cash charge totaling approximately $13 million during the second half of 2010. Additionally, the Company expects to generate approximately $50 million in cash from the reduction of working capital at Yorktown in the third quarter.
About Western Refining
Western Refining, Inc. is an independent refining and marketing company headquartered in El Paso, Texas. Western operates refineries in El Paso, and Gallup, New Mexico. Western's asset portfolio also includes refined products terminals in Albuquerque and Bloomfield, New Mexico and Yorktown, Virginia, asphalt terminals in Phoenix and Tucson, Arizona, Albuquerque, and El Paso, retail service stations and convenience stores in Arizona, Colorado, and New Mexico, a fleet of crude oil and finished product truck transports, and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas, and Utah. More information about the Company is available at www.wnr.com.
The Western Refining, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7615
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements contained herein include statements about East Coast refining economics, future operation and opportunities for the Yorktown products terminal and storage facility, future finished product supply, the strengthening southwest region, and the position of the Company for the future. These statements are subject to the general risks inherent in our business and reflect our current expectations regarding these matters. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, Western's business and operations involve numerous risks and uncertainties, many of which are beyond Western's control, which could result in Western's expectations not being realized or otherwise materially affect Western's financial condition, results of operations and cash flows. For additional information relating to the uncertainties affecting Western's business you are referred to our filings with the Securities and Exchange Commission. The forward-looking statements are only as of the date made, and Western does not undertake any obligation to (and expressly disclaims any obligation to) update any forward looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events.
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SOURCE: Western Refining, Inc.
CONTACT: Western Refining, Inc. Investor and Analyst Contact: Jeffrey S. Beyersdorfer (915) 534-1400 Media Contact: Gary Hanson (915) 534-1400