Watson Millican & Company’s technical experts were retained by a prospective purchaser of a large petroleum refinery in Texas to assist in the valuation of the refinery.

The Issue

An international chemicals company was interested in purchasing a large petroleum refinery located in southeast Texas with the proposition of integrating it with their nearby petrochemical facilities. Watson Millican experts were engaged to perform an independent valuation of the petroleum refinery and assist client in identifying potential cost savings and profit enhancements through integration of the refinery with the petrochemical facilities.

Watson Millican & Company Scope

Watson Millican developed a comprehensive discounted cash flow model and multiple case studies considering historical performance and projected economics for the petroleum refinery, market conditions, and potential interactions with the client’s petrochemical facilities. Client entered into discussions with the owner of the petroleum refinery. Ultimately the owner of the petroleum refinery decided to not sell and instead elected to invest heavily in the petroleum refinery to enhance its performance, crude oil flexibility and product yields.

Project Scope:

  • Value: US $350 Million

  • Services:  Asset Valuation, Asset Enhancement

  • Sectors: Refining and Chemicals