Acquisitions, JVs possible in coming months: WNR

OREANDA-NEWS. September 10, 2015.  Ongoing pressure from low oil prices may create more opportunities for acquisitions or joint ventures over the next six months, Western Refining said today.

The company planned to keep more cash on hand to move quickly if low oil prices persist, chief executive Jeff Stevens said at the Barclay's CEO Energy conference.

"We want to be opportunistic in case crude prices stay low," Stevens said.

The company was not interested in Gulf coast or Atlantic coast assets, but expected more opportunities closer to its growing pipeline infrastructure in New Mexico and far west Texas. Stevens said he expects to see exploration and production companies continue to sell assets like pipelines into 2017.

Western has moved to both capture Delaware Basin and Four Corners light, sweet crude barrels for its 125,000 b/d refinery in El Paso, Texas, and to prop up production by expanding producer access to other markets.

The refiner has replaced 85,000 b/d of its El Paso refinery's 105,000 b/d light crude slate. Western's 125,000 b/d Bobcat pipeline, which will both provide crude access to El Paso and add access for Texas and New Mexico producers to crude infrastructure near Midland when it begins flowing in November, will be the final piece to fully replacing light sweet crude, Stevens said.