Originally Posted by
shiznit
Anybody see the Reuters story that said Trainer is supposed to make a $300 million yearly profit with a $16 crack spread?
It went on to say that the current Brent crack is roughly $20, and the Bakken is running about $42!
The gain is roughly $18.75 mil per dollar of crack.
$20 crack would yield $375 mil yearly
$42 crack would yield $787.5 mil yearly
If UAL wants to buy a refinery we should either buy it to capture the "20% domestic and whatever % international", or bid it up high so UAL massively overpays.
According to Ed Bastian, the refineries that remain on the market have already been bid up significantly compared to where we bought in. The Carlyle group bought a refinery after our purchase and spent much more than we did.