WNR is no different than smaller drillers who buy low production wells from majors. Yes they still make money but the overhead at large companies is a killer and this asphalt plant was probably a small producer that didn't make a dent in the Chevron bottom line. It might be a money loser for them but with lower overhead, WNR might make it into a cashflow positive contributor.
More importantly, it gives WNR a way to dispose of more of the heavier remainders from processing heavy crude at something closer to breakeven.
I'll bet it was really a win/win situation.
WNR is like a gnat compared to Chevron in the refinery business. They are not really competitors in the true sense of the word. Chevron won't miss the one asphalt plant but it will make a huge difference in the long term plans for WNR. Bobwins
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