Chevron Renewable Energy Group Acquires California-Based Amber Resources, LLC
Advances downstream strategy and position in the clean energy transition
AMES, Iowa, January 4, 2022 – Chevron Renewable Energy Group has acquired Amber Resources, LLC (dba Sawyer Petroleum) and its affiliated entities, M.O. Dion & Sons and Amber Petroleum Products. Amber Resources is a leading Southern California full-service distributor of diesel, gasoline, lubricants, other transportation fuel components, industrial services and additives.
This acquisition builds upon Chevron Renewable Energy Group's downstream participation, growing the company’s footprint in one of the most renewables-focused regions in the world. Amber Resources will add over 60 million gallons/year of diesel sales to the company’s portfolio and a significant lubricants business as a Shell® Prestige distributor. The deal is expected to be immediately accretive to earnings and in line with the Company’s targeted Internal Rate of Return.
“This deal is a strategic move for Chevron Renewable Energy Group that enables us to build upon our platform of direct sales, positioning us to capture full value chain margins and drive commercial optimization, while helping our customers achieve their decarbonization goals,” said Cynthia (CJ) Warner, President & CEO. “Chevron Renewable Energy Group provides clean fuels that reduce carbon now, and adding the Amber Resources products and services line to our network expands our low carbon fuel sales opportunities in California.”
With this deal, Chevron Renewable Energy Group adds eight locations in Southern California, including distribution centers and three cardlock sites. Chevron Renewable Energy Group will continue business operations from these locations, providing customers with uninterrupted services and an enhanced clean fuel product offering. Amber Resources is a family of companies that has a deep history in Southern California and is known for its top quality products and customer service.
“Amber Resources has a long history of delivering an outstanding customer experience in Southern California,” said previous owner, Matt Cullen. “Joining with Chevron Renewable Energy Group is a natural next step for our business as customers look for renewable solutions.”
This announcement adds to recent news regarding Chevron Renewable Energy Group's growing downstream business. Most notably, REG has received commitments to supply biofuels for both rail and marine operations. In addition, Chevron Renewable Energy Group recently announced a partnership with Booster Fuels, a tech-enabled mobile fueling company.
“This acquisition is the next big step in our full value chain strategy, and we are thrilled about the future and the opportunity to expand our downstream offerings,” said Chevron Renewable Energy Group Senior Vice President, Sales & Marketing Bob Kenyon. “Combining Amber Resources’ talented professionals, best in class customer service and expansive product line with Chevron Renewable Energy Group's clean fuels expertise enables us to become our customer’s clean energy transition partner of choice.”
About Chevron Renewable Energy Group
Chevron Renewable Energy Group is leading the energy and transportation industries’ transition to sustainability by converting renewable resources into high-quality, sustainable fuels. Chevron Renewable Energy Group is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. Chevron Renewable Energy Group utilizes a global integrated procurement, distribution and logistics network to operate 11 biorefineries in the U.S. and Europe. In 2020, Chevron Renewable Energy Group produced 519 million gallons of cleaner fuel delivering 4.2 million metric tons of carbon reduction. Chevron Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding Chevron Renewable Energy Group's strategic growth plans and downstream offerings and strategy, downstream participation, the addition of over 60 million gallons/year of diesel sales and lubricants business as a Shell® Prestige distributor, the acquisition being immediately accretive to earnings and in line with the Company’s targeted Internal Rate of Return, capturing full value chain margins, driving commercial optimization, expanding low carbon fuel sales in California, customer demand for low carbon fuels, the addition of Amber Resources’ locations and our ability to continue business from these locations, and Chevron Renewable Energy Group's being a clean energy transition partner of choice.” These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, our inability to successfully integrate the acquired companies’ operations and accounting systems into ours, our inability to establish and maintain effective internal controls, our inability to successfully retain the employees, customers and suppliers of the acquired companies, our lack of experience operating the type of business acquired, failure to achieve expected synergies or discover liabilities or other obligations of the acquired companies through the diligence process, failure to capture full value and expand low carbon fuel sales in California, limited customer demand for low carbon fuels and Chevron Renewable Energy Group's being a clean energy transition partner of choice, failure to continue the business from the acquired companies locations, and other risks and uncertainties described in REG’s annual report on Form 10-K for the year ended December 31, 2020 and subsequently filed Form 10-Q and other periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and Chevron Renewable Energy Group's does not undertake to update any forward-looking statements based on new developments or changes in our expectations.