Analysis-US refinery M&A stalls as buyers shun aging assets, uncertain future
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U S refinery M&A stalls as buyers shun aging assets, uncertain future
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The U.S. oil industry saw nearly $200 billion in upstream deals last year, but the refining sector missed out despite plenty of willing sellers as the energy transition away from fossil fuels accelerates and casts doubt over the long-term value of aging U.S. refineries The growing number of operators looking to sell assets reflects the hope that a post-pandemic surge in margins - which for some products nearly quadrupled in 2022 - might have opened up a rare window to exit assets profitably. "Until very recently margins were fairly high and owners might have begun to fantasize that they could get a very good price," said Garfield Miller, president of downstream-focused investment bank Aegis Energy Advisors. A U.S. refinery has not changed hands since independent refiner Par Pacific completed its $310 million acquisition of Exxon Mobil's 63,000 barrels per day (bpd) Billings, Montana, plant last year.