Flying J’s California refinery on the block

The Big West Bakersfield Refinery was shut down in January following Flying J’s December 2008 Chapter 11 bankruptcy filing. The company cited insufficient liquidity to purchase the necessary crude supplies. (Flying J Inc. photo)

The Trucker Staff

5/19/2009

OGDEN, Utah — Flying J Inc. and its subsidiary Big West Oil LLC said Monday that they are “reviewing strategic alternatives” regarding their Bakersfield Refinery, located in Bakersfield, Calif.

Deutsche Bank Securities Inc. has been retained by Big West as their financial advisor to assist in this process, according to a brief company statement.

“The review of strategic alternatives may result in the sale of all or part of the refinery,” Flying J said.

The refinery was shut down in January following Flying J’s December 2008 Chapter 11 bankruptcy filing. The company cited insufficient liquidity to purchase the necessary crude supplies. The refinery produces low sulphur CARBOB gasoline, CARB diesel and gas oil.

Flying J said earlier this year it would sell its Longhorn Pipeline, which carries petroleum products from the Gulf Coast to El Paso.

The Bakersfield facility had been owned over the years by Getty Oil, Texaco, and Shell before being acquired by Big West in 2005. The Flying J subsidiary “subsequently invested significant capital in the refinery,” the company said.

In addition, the refinery has received all significant permits to construct a Hydrocracker unit designed to enhance profitability by converting the lower-value gas oils to lighter, higher margin diesel and gasoline products, according to Flying J.

The Bakersfield Refinery has capacity of 70,000 barrels per day. The 942-acre site includes a product loading facility, crude truck terminal and 2.6 million barrels of tankage.

Based in Ogden, Utah, Flying J Inc. is among the 20 largest private companies in America, with 2007 sales exceeding $16 billion. Flying J operates more than 200 travel plazas in 41 states and six Canadian provinces. Other operations include online banking, card processing, truck and trailer leasing and payroll services. The company employs 14,700 people.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

Follow The Trucker on Twitter at www.twitter.com/truckertalk.