Canadian Oil Company Buying Superior-Based Refinery For $435M

Wisconsin’s only oil refinery is being purchased by a Canadian energy company in a deal worth $435 million.

Calgary-based Husky Energy plans to acquire the state’s lone refinery, located in Superior. It is currently owned by Indiana firm Calumet Specialty Products Partners. The facility has nearly 200 employees and can refine up to 50,000 barrels of oil per day into fuel and asphalt products.

“This acquisition increases Husky’s capacity to process heavy oil in line with our growing thermal production,” said spokeswoman Kim Guttormson. “The refinery will also add immediate asphalt production. This will enhance our ability to capitalize on the growing demand for asphalt across North America as infrastructure spending increases.”

Thermal production refers to a method used to extract oil from Canadian tar sands. The Superior facility also refines oil coming from the Bakken shale deposits in North Dakota and western Canada.

According to a company statement, Husky Energy has approximately 5,200 employees and has an average daily production of about 320,000 barrels of oil.

Calumet Specialty Products Partners has owned the Superior oil refinery since 2011. Spokesman Chris Hodges said selling the facility will help the company’s balance sheets and further its goal of becoming a world leader in specialty petroleum products.

“We found a great home and partner for our Superior employees in a partner that saw full value in the assets. But most importantly the transaction is in line with our stated strategy. It provides great optionality for the business to strengthen their balance sheet to reduce long-term leverage as well as to free up capital,” Hodges said.

Calumet processes crude oil into specialty lubricating oils, solvents and waxes used in consumer, industrial and automotive products, according to a company statement.

Superior’s oil refinery was built in 1951 and was owned by Murphy Oil USA from 1958 until it was purchased by Calumet in 2011 for $442 million.