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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Calumet Specialty Products Partners LP has sold its San Antonio, Texas, refinery, crude oil terminal and pipeline to Starlight Relativity Acquisition Co. LLC in a deal worth more than $63 million, Calumet announced Monday.
In an acquisition that closed Nov. 1, Starlight agreed to pay $63 million in cash, plus adjustments for net working capital and inventories. The San Antonio facility has a throughput capacity of 21,000 barrels a day and produces diesel, jet fuel, gasoline and other jet fuel products.
Calumet said the property sale resolves a pending lawsuit against pipeline company TexStar Midstream Logistics L.P. which in turn releases a related $38 million balance-sheet liability.
Calumet acquired the San Antonio property in 2013. It signed a 20-year agreement with TexStar in 2014 in which TexStar would deliver crude oil to the facility through a pipeline system that TexStar owned and operated.
The parties terminated the agreement for alleged breaches, and Calumet ceased using TexStar’s pipeline in February. When that happened, Calumet reclassified its $38 million lease obligation from a long-term debt to a current liability.
In May, Calumet filed suit against TexStar in Bexar County, Texas, in a dispute over whether the agreement had been properly terminated and whether Calumet owed additional lease payments to TexStar.
In its most recent quarterly earnings statement, filed Aug. 8, Calumet reported a second-quarter loss of $16.8 million, as compared with a $51.9 million loss for the same period a year earlier.
Second-quarter revenue totaled $896.9 million, down from $945.5 million during the same period in 2018.
Shares of Calumet were trading at $3.68 each Monday morning, up 8 percent from Friday’s close. The stock has risen 41 percent since the beginning of the year.
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