Deals
Record Glut of Oil Refineries Selling at 80% Discount: Real M&A
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Oil companies from Chevron Corp. to BP Plc are selling more refineries than at any time in history even as a rebound in demand for gasoline and diesel pushes profits from running the plants to the highest level since 2007.
A glut of refineries put up for sale by integrated oil companies after the global recession dragged down profits are now available for 80 percent less than they fetched in 2006, Dahlman Rose & Co.’s Sam Margolin says. Meanwhile Tesoro Corp., the subject of more than a dozen takeover rumors since 2007, has the cheapest valuation among U.S. refiners based on projected earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg.