WASHINGTON (dpa-AFX) - Murphy Oil Corp. (MUR) said Monday it has agreed to sell, through its wholly-owned subsidiary Murphy Oil USA Inc., its refinery in Superior, Wisconsin and related assets to Calumet Specialty Products Partners L.P. (CLMT) for $214 million, subject to adjustments. Calumet will also pay the value of hydrocarbon inventory, the company noted.
Murphy Oil said the hydrocarbon inventory will be valued based on market prices at closing (the inventory was valued at approximately $260 million as of June 30, 2011).
The sale is subject to customary regulatory approvals and conditions, and is expected to close later in the third quarter or fourth quarter of 2011.
David M. Wood, Murphy's President and Chief Executive Officer, said, 'We are pleased to announce the sale of our Superior Refinery as we execute on our strategy to exit the refining business.'
Wood added, 'The price realization for Superior represents fair market value for the assets and we look to redeploy the proceeds and working capital from the sales process into our upstream growth business.'
Davis Polk & Wardwell LLP is acting as legal counsel to Murphy. Goldman, Sachs & Co. is acting as financial advisor to Murphy.
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