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).
I don't get this kind of thought. I saw the same nonsense from all the talking heads on CNBC when the deal was announced. Anybody that applied any common sense to this would realize that DAL was not gonna run the refinery, but rather own the end product.. which happens to be our largest expense, and is.. control wise.. usually in stick shaker. The move was pure genius. We will get a taste of that hopefully at the end of this month when some of that starts showing up on the bottom line.