KEY POINTS
- Gregory Goff, an Exxon director, leads Elliott-backed Amber Energy in acquiring Citgo.
- Citgo’s enterprise value is up to $7.28 billion, with assets including three U.S. refineries.
- Amber’s bid aims to leverage Citgo’s network to compete in the U.S. fuel market.
Gregory Goff, an Exxon Mobil board director, is leading an effort by Elliott Investment Management to acquire Citgo Petroleum through a newly formed entity called Amber Energy. Goff has been named CEO of Amber Energy, which was selected as the winning bidder for shares in Citgo’s parent company, PDV Holding, during a U.S. court auction.
Goff’s leadership and Citgo’s value
Goff, who joined Exxon’s board in 2021 as part of a group of dissident directors, was announced as Amber Energy’s CEO in a statement heralding the company’s successful bid.
The acquisition places an enterprise value of up to $7.28 billion on Citgo, which owns refineries in Texas, Louisiana, and Illinois, as well as a large fuel storage and pipeline network and 4,200 independent retailers.
The shares being auctioned belong to PDV Holding, a Venezuelan state-owned entity, and the proceeds are intended to repay claims of up to $21.3 billion against Venezuela and state oil firm PDVSA, related to expropriations and debt defaults.
Citgo, headquartered in Houston, is the seventh-largest U.S. oil refiner by capacity and a direct competitor of Exxon, which is the third-largest. In 2023, Citgo reported a net profit of $2 billion, solidifying its position as a major player in the refining industry.
Amber Energy and Elliott’s role
Amber Energy is backed by Elliott Investment Management, a firm known for taking activist positions in major oil companies. Elliott previously made billions by investing in Marathon Petroleum and pushing for operational improvements and divestments, including the sale of its Speedway retail business to 7-Eleven for $21 billion in 2021.
Goff’s extensive background in the oil industry includes his role as chairman and CEO of Andeavor, one of the largest U.S. refining companies before it was acquired by Marathon Petroleum in 2018.
According to Reuters, he also served as vice chairman at Marathon until 2019. Amber Energy’s statement highlighted Goff’s 40 years of experience in the energy sector, although it did not mention his current role at Exxon.
Elliott’s involvement with Citgo comes at a time when the refining market is seeing significant consolidation and strategic repositioning. Amber Energy’s bid for Citgo aims to strengthen its presence in the motor fuels and lubricants markets, where Citgo competes head-to-head with giants like Exxon.
The future of Citgo and Amber’s ambitions
Amber Energy’s bid reflects a significant valuation of Citgo’s assets, despite the challenges associated with Venezuelan ownership and U.S. sanctions. As part of the acquisition, Amber intends to leverage Citgo’s established refining and distribution network to enhance its position in the U.S. fuel market.
The situation surrounding Citgo’s ownership has been complex for years, as various creditors and stakeholders have attempted to lay claim to the company’s assets due to Venezuela’s financial troubles. The acquisition by Amber Energy, led by a seasoned industry veteran like Goff, could provide stability for the company moving forward.
With Citgo’s extensive infrastructure, the acquisition could potentially reshape parts of the U.S. refining landscape. However, given the ongoing disputes regarding Citgo’s ownership and its connection to Venezuelan debt, it remains to be seen how this acquisition will unfold and whether additional challenges will arise.
