I agree very smart move but watch Obama put a halt to it
Now THAT’S thinking ‘outside the box’!
I couldn’t get the whole story since I don’t subscribe to the WSJ (Investor’s Business Daily is far better), but the Delta management sounds like they’re really on top of their game.
Free enterprise is always better.
Unlikely a good move. How can an airline make a profit from an unprofitable refinery when the oil company’s business is refining?
Ping.
I don’t think it is a smart move. ConLips closed the refinery for a reason... non-competitive to make the clean air upgrades in all probability.
On top of that, refining margins are good but not that good and Delta doesn’t know much about running a refinery.
There are probably 2-3 ways for this to go well, and 15-20 for it to not go well. I don’t underestimate the complexities of running a refinery; I actually find them quite interesting and wish I knew more about them.
But, I give Delta credit for the concept; the depreciation applied against their costs could make this a wise move, and they are probably buying the refinery at a low point. In some ways, it is deserved, because as another poster said, this is an older refinery. Geez, remember circa 2005-2007 when refining was the cat’s meow? Valero stock was a market darling, they bought up large numbers of smaller refinieries...now VLO is trading at about 1/3rd its stock price then. Guess the world decided refining was a crappy business. (It is)
Interesting PING.
Plus added links at #14/15.
Delta’s management cant run an airline so its good to try other things...
ping