Delta reportedly approves Conoco refinery deal
Delta Air Lines could become the owner of a Philadelphia-area refinery as early as this week, CNBCs Kate Kelly reported on Monday, citing an anonymous source.
Delta is on the verge of finalizing the deal to buy the ConocoPhillips refinery in Trainer, Pennsylvania, for between $100 million and $125 million, according to the CNBC report.
As part of the deal, J.P. Morgan would buy overseas crude oil, ship it to Pennsylvania, and finance the refining process, Kelly reported.
J.P. Morgan would then sell jet fuel to Delta at a wholesale cost. In addition, ConocoPhillips plans to take some of the gasoline and convert it into additional jet fuel for Delta, the CNBC report says.
The Delta board has signed off on the Trainer refinery purchase, and the company is hopeful the deal can be completed this week, according to the report.
Delta spent $12 billion last year on jet fuel, leading it to search for ways to cut costs.
To read the full CNBC report, click here.
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