Flyers Energy Acquires SKS
ExxonMobil Agrees to Sell Torrance Refinery
J8 Completes Merger with Acterra Group
CARB Grants $ 1.6 Million for EV Car-Sharing in L.A.

FLYERS ENERGY ACQUIRES SKS

AUBURN, CA. — Flyers Energy LLC has acquired SKS Inc., of Escondido, CA., effective as of November 1. The purchase price for the jobbership was not disclosed.

Included in the deal were all of the SKS bulk fuel, DEF delivery and lubricant operations at the company's bulk plants in San Diego, Escondido and Anaheim, CA., as well as all 13 of the company's commercial cardlock sites.

SKS Co-Presidents Andy Thweatt and John Kroesche are remaining with the company; Thweatt will serve as Southern California operations manager for Flyers and Kroesche will serve as business development manager. Both will remain based in Escondido, CA.

SKS reports that "We anticipate a seamless transition for customers as John, Andy, and the SKS sales and customer service personnel have accepted positions with Flyers."

Eric Kroesche, who founded SKS in 1965, had retired from the jobbership prior to the merger.

"SKS is a good geographic fit, expanding our Southern California base of operations," said Walt Dwelle, managing partner of Flyers Energy. Flyers had been distributing fuel and lubricants from terminals in Central and Northern California as well as Northern Nevada. With the addition of SKS, Flyers will offer distribution across the entire state of California for fuel and lubricants.

In an official statement, Thweatt noted that "Nationwide, the trend for quite some time has been for petroleum jobbers our size to merge with larger jobber/brokers who can use their higher volumes to negotiate better supply contracts, and larger staffs to manage environmental regulations and keep up with the regulatory environment. We believe this is the right time for SKS to make such an arrangement."

He continued, "We concluded that Flyers Energy is the right company to continue the tradition."

Flyers Energy now supplies more than 100 Chevron, Shell, Valero, and 76 branded fuel stations, is the largest member of the CFN network, and markets Mobil and Chevron lubricants.

Dwelle added, "Our plan for the near future is to consolidate the acquisitions we've made over the last two years, but we continue to look for specific opportunities in the West that build upon our existing footprint."

EXXONMOBIL AGREES TO SELL TORRANCE REFINERY

TORRANCE, CA. — In an action that may affect fuel supply in California and the West, ExxonMobil has agreed to sell its Torrance, CA., refinery and associated assets to PBF Energy Inc. The price for the purchase was $537.5 million "plus working capital to be valued at closing."

Included in the deal is the 155,000 barrel-per-day refinery, a lubricants distribution center in Vernon, CA., terminals in Vernon and Atwood, CA., and associated California pipelines and other logistics assets, including facilities at the Southwest terminal.

The 700 employees and 700 contractors who work at the refinery and associated facilities are expected to be offered positions with PBF.

PBF Energy Inc. is headed by Executive Chairman Tom O'Malley, known to many in the West from his years as the head of Tosco. O'Malley led Tosco from the company's early years through its acquisition of Unocal and eventual sale to Phillips 66. Announcing the acquisition, O'Malley said, "Southern California is a very attractive market and we are excited to become a supplier in the region. PBF's management team has extensive experience operating in Califorina and we are entering at a very attractive purchase price for the Torrance refinery."

As part of their plans, PBF Energy has announced that they will set up a new subsidiary, PBF Energy Western Region LLC, to hold all of the Torrance-related assets. Jeffrey Dill, who had been serving as general counsel of PBF, will lead the new Western division.

In addition, Tom O'Connor, who had been co-head of PBF's Commercial division, will be relocated to Southern California "where he started his career" at the Torrance refinery, "and worked with the same logistics assets being acquired. He will head up a West Coast-based commercial team that will be responsible for commercial activities in the region."

The Torrance refinery has been in the news for most of the year. An explosion at the refinery in March caused ExxonMobil to shut down the facility for repairs. This lead to to an immediate supply shortage in California and the West and a price spike that has continued. In fact, consumer reporters and economist have estimated the refinery shutdown had cost Californians $3 billion from increased gasoline costs through September.

While consumer advocates have been calling for a restart of the refinery to help lower fuel prices as soon as possible, local environmental groups and area residents have been lobbying to keep the refinery shut down on a permanent basis.

ExxonMobil officials said they have been approaching the South Coast Air Quality Management District with a plan to restart the refinery since April, but the AQMD refused to hold a hearing on the topic until September, guaranteeing any restart at the facility would be delayed.

ExxonMobil officials stated that their decision to sell the facility was not linked with the accident or local politics. "The sale results from a strategic assessment of the site and how it fits with our refining portfolio," said Jerry Wascom, president of ExxonMobil Refining & Supply Company. "ExxonMobil regularly adjusts its portfolio through investment, restructuring or divestment consistent with overall global and regional business strategies. We remain committed to a large, global refining portfolio as part of our integrated business strategy."

Under the terms of the deal, the Torrance refinery will be "restored to full working order prior to close" of the deal. It is anticipated the sale will close in the second quarter of 2016.

J8 COMPLETES MERGER WITH ACTERRA GROUP

DENVER, CO. — J8 Equipment, based here, has completed its merger with the Acterra Group, based in Marion, IA.

"We signed the merger on June 1," recalled Fred Seymour, the former president of J8 Equipment Company. "The corporate headquarters moved to Marion, IA. I'm staying on as general manager of J8 Denver and Tom Green will serve as sales manager for J8 Denver."

On the corporate side, Terry Cooper will remain president of Acterra Group and Tad Cooper will serve as vice president of the company.

"J8 started in 1957, so we're going through a big change right now," noted Seymour. "We're switching computer systems to their platforms, converting inventory to barcode and becoming paperless. This makes us more efficient. Once we get our hands around it, we'll appreciate the changes. Every day everybody gets more comfortable with it. It's a new system and it's exciting.

"It's good for us," Seymour added, "for Acterra and the new division of Acterra, J8."

"We are excited to welcome J8 into the Acterra Group family," said Cooper, announcing the merger. "J8 is a great company with a great brand, friendly and knowledgeable staff, and a long, successful history in Colorado and the Western Region. We love that J8 shares our customer-first approach to doing business. The J8 team is going to greatly enhance our petroleum service capabilities and stretch our footprint beyond the Rockies."

CARB GRANTS $1.6 MILLION FOR EV CAR-SHARING IN L.A.

LOS ANGELES, CA. — The California Air Resources Board has awarded a $1.6 million grant to the City of Los Angeles to launch electric vehicle-sharing facilities in low income communities.

The pilot project will educate residents about car sharing and transportation alternatives, install electric vehicle charging stations, and introduce a car sharing fleet of electric vehicles. The electric cars will be available for local residents to rent by the hour.

The Los Angeles Department of Water and Power will provide support for the EV infrastructure.

The program is being funded from revenue generated by California's Cap-and-Trade program.

"Our EV car sharing pilot is a perfect example of how our state's Cap and Trade dollars should be put to work: providing transportation options for Angelenos in need, and helping us achieve our clean air goals," said Los Angeles Mayor Eric Garcetti. The program, designed by the L.A. Mayor's Office of Sustainability, seeks to reach about 7,000 residents in some of Los Angeles' working-class communities.

Originally published in the December 2015 issue of O&A Marketing News.
Copyright 2015 by KAL Publications Inc.