US-based oil and gas company Par Pacific has completed its previously announced acquisition of the Billings refinery and related assets for a total consideration of $310m.

Par Pacific has purchased the refinery and its assets from US-based oil and gas company ExxonMobil and two of its subsidiaries.

Billings is a 63,000 barrel per day (bpd) high-conversion, complex refinery that processes low-cost crude oil from Western Canada and Rocky Mountain regions.

The acquisition also includes a 65% interest in an adjacent cogeneration facility and an expansive PADD IV & V marketing and logistics network.

The logistics assets include the 55,000bpd Silvertip Pipeline, a 40% interest in the 65,000bpd Yellowstone refined products pipeline.

In addition, the acquisition also includes four wholly owned and three joint venture refined product terminals located in Montana and Washington.

The refinery and logistics locations constitute a total storage capacity of 4.1 million barrels.

Par Pacific chief executive officer William Pate said: “We are extremely pleased to close the Billings Acquisition and welcome the Par Montana team to Par Pacific.

“This acquisition significantly enhances our scale and geographic diversification. We expect the transaction to be immediately accretive to our earnings and cash flow.”

Par Pacific has financed the hydrocarbon inventory related to the Billings acquisition, primarily from its ABL credit facility.

The company said that the acquisition of refinery and logistics business, to be renamed the acquired as Par Montana, will enhance its existing market position in Pacific Northwest.

Par Pacific will supply around 250 Exxon and Mobil branded retail locations as part of its arrangement with ExxonMobil.

Furthermore, Par Pacific is evaluating renewable fuels opportunities to complement the refinery’s conventional fuel production and use its existing market position in Washington.

Par Pacific president Will Monteleone said: “We are focused on small-scale projects to improve throughput and reliability at the Billings refinery to increase rates closer to nameplate capacity.

“We look forward to working with our talented new team members on identifying and executing these projects.”