(Sales totals corrected) PBF Energy, the Parsippany, NJ-based company that bought the former Valero refineries in Paulsboro and Delaware City and the ex-Sunoco refinery in Toledo cheap during the recession, says it's ready to sell shares in an initial public stock offering (IPO) before the end of this year.
The company, founded by veteran refinery dealmaker Thomas O'Malley in 2008, says it spent $1 billion buying the three refineries in 2010-11. PBF says it raised another $500 million to update the notoriously dirty Delaware City refinery, including $45 million in taxpayer financing, and cut costs 40%, partly by shutting a gasification unit. PBF also says it's repaid more than $100 million of the $125 million in post-deal payments it promised Sunoco for its original refinery.
PBF says it was profitable on sales of $16 BILLION (corrected) last year and $15 Billion in the first nine months of this year. PBF has also been in talks to acquire additional, unnamed plants. The company previously proposed an IPO last year.
PBF says it's ready to boost volume after leasing 2,500 rail cars to speed crude oil from new fields in North Dakota and other parts of central North America to its plants. It also plans to barge crude from its new Delaware City rail oil terminal north to its Paulsboro complex.
And it's hoping the Utica Shale formation, bordering Pennsylvania's Marcellus Shale gas and fuel reserves, will yield more cheap oil to make its Eastern refineries extra profitable.