Trecora Resources engages in manufacturing various specialty petrochemicals products and specialty waxes; and the provision of custom processing services.
Segments
The company operates through two business segments, Specialty Petrochemicals and Specialty Waxes.
Specialty Petrochemicals
The company’s Specialty Petrochemicals segment is conducted through South Hampton Resources, Inc. (SHR), a Texas corporation. SHR owns and operates a specialty petrochemicals facility in Silsbee, Texas, which...
Trecora Resources engages in manufacturing various specialty petrochemicals products and specialty waxes; and the provision of custom processing services.
Segments
The company operates through two business segments, Specialty Petrochemicals and Specialty Waxes.
Specialty Petrochemicals
The company’s Specialty Petrochemicals segment is conducted through South Hampton Resources, Inc. (SHR), a Texas corporation. SHR owns and operates a specialty petrochemicals facility in Silsbee, Texas, which produces high purity hydrocarbons and other petroleum based products, including isopentane, normal pentane, isohexane and hexane. These products are used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, crude oil from the Canadian tar sands; and in the catalyst support industry.
The company’s Specialty Petrochemicals products are typically transported to customers by rail car, tank truck, iso-container, and by ship. SHR owns all of the capital stock of Gulf State Pipe Line Company, Inc. (GSPL), a Texas corporation, which owns and operates pipelines that connect the SHR facility to a natural gas line, to SHR’s truck and rail loading terminal and to a major petroleum products pipeline owned by an unaffiliated third party. SHR also provides custom processing services at its Silsbee facility.
SHR’s specialty petrochemicals facility is located in Silsbee, Texas approximately 30 miles north of Beaumont and 90 miles east of Houston. The base SHR facility consists of five operating units, which while interconnected, make distinct products through differing processes: a Penhex Unit; a Reformer Unit; a Cyclo-pentane Unit; an Advanced Reformer unit; and an Isomerization Unit. In addition to the base plant, SHR operates three proprietary chemical production facilities for toll processing customers. The Penhex Unit has the permitted capacity to process approximately 11,000 barrels per day of fresh feed. The Reformer Unit, the Advanced Reformer unit, and the Cyclo-Pentane Unit further process streams produced by the Penhex Unit.
The facility generally consists of equipment commonly found in most petrochemical facilities, such as fractionation towers and hydrogen treaters, except the facility is adapted to produce specialized products that are high purity and very consistent with precise specifications that are utilized in the petrochemical industry as solvents, additives, blowing agents and cooling agents.
The company’s total capacity at its Silsbee facility is 13,000 barrels per day of fresh feed, however, its air permits limit the company to a maximum processing rate of 11,000 barrels per day. The company also has a 4,000 barrels per day Advanced Reformer unit to increase its capability to upgrade by-products produced from the Penhex Unit and to provide security of hydrogen supply to the plant.
The Advanced Reformer, Reformer and Isomerization units are operated as needed to support the Penhex and Cyclo-pentane Units. Consequently, utilization rates of these units are driven by production from the Penhex Unit.
In the support of the specialty petrochemicals operation, the company owns approximately 100 storage tanks with total capacity approaching 294,000 barrels, and 130 acres of land at the plant site, 70 acres of which are developed. The company also owns a truck and railroad loading terminal consisting of storage tanks, nine rail spurs, and truck and tank car loading facilities on approximately 63 acres of which 36 acres are developed.
GSPL owns and operates two 8-inch diameter pipelines and five 4-inch diameter pipelines, aggregating approximately 70 miles in length connecting SHR’s facility to a natural gas line, SHR’s truck and rail loading terminal, and a major petroleum products pipeline system owned by an unaffiliated third party. All pipelines are operated within Texas Railroad Commission and DOT regulations for maintenance and integrity.
The company sells its products predominantly to large domestic and international companies. Products are marketed through continued long term relationships. The company also provides information about its products and services through its website.
Specialty Waxes
The company’s Specialty Waxes segment is conducted through Trecora Chemical, Inc. (TC), a Texas corporation, located in Pasadena, Texas, which produces specialty polyethylene and poly alpha olefin waxes; and provides custom processing services. The specialty polyethylene waxes are used in markets from paints and inks to adhesives, coatings, and PVC lubricants. The highly specialized synthetic poly alpha olefin waxes are used in applications, such as toner in printers and as additives for candles. These waxes are sold in solid form as pastilles, or for large adhesive companies, in bulk liquid form.
TC is a leading manufacturer of specialty waxes and also provides custom processing services from its 27.5 acre plant located in Pasadena, Texas. TC provides custom manufacturing, hydrogenation, distillation, blending, forming, and packaging of finished and intermediate products and wax products for coatings, hot melt adhesives and lubricants. Situated near the Houston Ship Channel, the facility allows for easy access to international shipping and direct loading to rail or truck. The location is within reach of major chemical pipelines and on-site access to a steam pipeline and dedicated hydrogen line create a platform for expansion of both wax production capacity and custom processing capabilities.
The company manufactures a variety of hard, high melting point, low to medium viscosity polyethylene wax products along with a wide range of other waxes and lubricants. These products are used in a variety of applications, including performance additives for hot melt adhesives; penetration and melting point modifiers for paraffin and microcrystalline waxes; and lubrication and processing aides for plastics, PVC, rubber, and dry stir-in additives for inks. In oxidized forms, applications also include use in textile emulsions.
TC also provides turnkey custom manufacturing services, including quality assurance, transportation and process optimization. The plant has high vacuum distillation capability for the separation of temperature sensitive materials. The company has a fully equipped laboratory and pilot plant facility and a highly trained, technically proficient team of engineers and chemists suited to handle the rapid deployment of new custom processes and development of new wax products. TC’s custom manufacturing services provide a range of specialized capabilities to chemical and industrial customers, including synthesis, hydrogenation, distillation, forming and propoxylation in addition to a number of other chemical processes.
Mineral Interests
The company also owned a 55% ownership interest in an inactive mining corporation, Pioche Ely Valley Mines, Inc. (PEVM). In November 2019, PEVM entered into a sales contract to sell all of their assets, which include 48 patented and 5 unpatented claims totaling approximately 1,500 acres. The sale was completed on November 11, 2021 and resulted in the liquidation of substantially all of PEVM's remaining assets. Proceeds from the sale were used to repay outstanding indebtedness of PEVM owed to the company. PEVM was legally dissolved on February 16, 2022.
Customers
The company’s largest customer, ExxonMobil and its affiliates, represented approximately 13.4% of its consolidated revenues in 2021.
History
The company was founded in 1967. It was incorporated in the state of Delaware in 1967. The company was formerly known as Arabian American Development Company and changed its name to Trecora Resources in 2014.
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