On Jan 15, 2015, oil refiner and marketer Western Refining Inc. (WNR) declared that it has added 31 retail stores in southern Arizona. With this, the total number of retail units in the region has increased to 261.
Western Refining has entered into a lease agreement for the stores. The company added that previously the units were operated by Reay's Ranch, which primarily owns and manages retail locations. Western Refining will now sell various kinds of fuel from the stores under its own brand.
The retail stores will get roughly 30 million gallons of fuel from the El Paso refinery of the company every year. With the addition of the units to its retail chain, the company’s merchandise sales are expected to increase by about 15%.
Management revealed that the inclusion of retail sites is in line with the company’s policy to increase the sales volume of refined fuel – processed in the company’s refineries – with minimum investment.
The company is expected to release its quarterly and full-year 2014 results on Feb 26, 2015 before the opening bell. The Zacks Consensus Estimate for Western Refining’s fourth quarter is 86 cents per share.
Incorporated in 2005, El Paso, TX-headquartered Western Refining is an independent refiner and marketer of refined petroleum products in the Southwestern and Mid-Atlantic regions of the U.S. The company currently retains a Zacks Rank #3 (Hold), implying that the stock is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, better-ranked players in the energy sector include Seadrill Partners LLC (SDLP), Cheniere Energy Partners LP (CQP) and Spectra Energy Partners LP (SEP). All these stocks sport a Zacks Rank #1 (Strong Buy).
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