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On August 28, 2006, Western Refining announced that the Boards of Directors of both Western Refining and Giant Industries had approved a merger agreement in which Western would acquire Giant for approximately $1.2 billion in cash. Western will additionally assume approximately $0.3 billion of debt. This transaction transforms Western from the twenty-first-largest domestic refiner at the outset of 2006 into the sixteenth-largest refiner currently, pending approval. The acquisition provides Western Refining with an East Coast presence and increases its significance in the Gulf Coast region. With this acquisition Western Refining enters motor gasoline retailing through its acquisition of Giant's 159 outlets, which are chiefly in Arizona and New Mexico.
The following links provide company-level data from various public sources to inform discussions of the Western Refining-Giant merger. This data presentation is similar to data presentations that have been previously requested from EIA for other significant energy company mergers and/or corporate alliances.
Financial Analysis Team, Office of Energy Markets and End Use, Energy Information Administration, September 11, 2006
Western
Refining |
Giant | Western/
Giant Total |
U.S.
Total |
Percent Share | ||
Western
Refining |
Giant | Western/
Giant Total |
||||
116,000 | 96,200 | 212,200 | 17,338,814 | 0.7% | 0.6% | 1.2% |
Source: Energy Information Administration, Refinery Capacity Report (Washington, DC, June 2006), Table 1 and Table 5 (both pdf format). |
Company-level refinery data for regions of the United States (known as Petroleum Administration for Defense (PAD) Districts) are available in the PAD District Detail Table.
PAD
District |
Western
Refining |
Giant | Western/
Giant Total |
PAD
District Total |
Percent Share | ||
Western
Refining |
Giant | Western/
Giant Total |
|||||
1 | 0 | 58,600 | 58,600 | 1,713,100 | 0.0% | 3.4% | 3.4% |
2 | 0 | 0 | 0 | 3,582,640 | 0.0% | 0.0% | 0.0% |
3 | 116,000 | 37,600 | 153,600 | 8,274,086 | 1.4% | 0.5% | 1.9% |
4 | 0 | 0 | 0 | 595,550 | 0.0% | 0.0% | 0.0% |
5 | 0 | 0 | 0 | 3,173,438 | 0.0% | 0.0% | 0.0% |
Source: Energy Information Administration, Refinery Capacity Report (Washington, DC, June 2006), Table 1 and Table 5 (both pdf format). |
Western
Refining |
Giant | Western/ Giant
Total |
Western/Giant
Total as a Percent of U.S. Retail Outlets |
U.S.
Retail Outlets |
0 | 157a | 157a | 0.1% | 167,476 |
aGiant's U.S. motor gasoline retail outlets are located in Arizona (24 of which are branded "Giant," 16 of which are branded "Conoco," and 18 of which are branded "Mustang," which account for at least 58 outlets and comprise 3 percent of the 2,190 outlets in Arizona), Colorado (6 of which are branded "Giant," 1 of which is branded "Conoco," and 3 of which are branded "Mustang," which account for at least 10 outlets and comprise 0.4 percent of the 2,300 outlets in Colorado), and New Mexico (27 of which are branded "Giant," 18 of which are branded "Conoco," and 18 of which are branded "Mustang," which account for at least 63 outlets and comprise 4 percent of the 1,478 outlets in New Mexico). Additionally, one "Conoco" branded outlet in Utah is reported.
Note that Western Refining's press release announcing the acquisition reports 159 outlets, however information on Giant's web site only accounts for 132 outlets and another 37 cardlock operations, one of which apparently is located at a Giant branded outlet. Consequently, the phrase "which account for at least X outlets" is used when discussing the share of a particular state's outlets the resulting company would hold. |
Sources: Company information: Giant Industries, Inc., web site ( http://www.giant.com/ (as of September 11, 2006)) and U.S. Securities and Exchange Commission Form 10-K filing. U.S. and state information: National Petroleum News, Market Facts 2006 (mid-July 2006), p. 98. |
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