Originally Posted by
dragon
Scambo, it was a good read. A friend of mine in the oil business thought we were nuts to buy a refinery that was never "profitable". I don't think he or any other oil guy saw why Delta did the deal and SD does a nice job of explaining it to us. It's all about the crack spread (no FTB we don't need pics).
Here's some other food for thought: PA kicked in a chunk of money for us to buy it. We kicked in leveraged money - which as I understand it - was not necessarily DAL money, but basically money given in advance of jet fuel use... It cost us less than expected to refurbish it. It's going to (through fuel swaps) cover 80% of our domestic fuel use at $.15/gal lower price than our competitors. The oil it refines is going to come from the US.
Ya'll know I'm not a cheerleader or koolaid drinker, but IMO, this is a supreme coup. Now that it's pumping gas, I am interested in seeing what its effect on our debt position is going forward as well as it's effect on our profit sharing positions.