Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Clark Oil & Refining Corp. - Lehman Brothers Collection

Clark Oil & Refining Corp.

List of Deals

Clark Oil & Refining Corporation was incorporated in Wisconsin in July 1934 as the Petco Corporation. The company name was changed to Clark Oil & Refining in March 1954. The company refined petroleum products and distributed them at the wholesale and retail levels, including at its own service stations.

In 1949 sales for Clark were $21.1 million. In 1953 Clark operated 158 service stations in the Midwest under the brand name "Clark Super 100." Sales rose to $38.2 million by 1954, and in 1954 Clark operated 326 stations. By the early 1960s Clark operated 700 service stations.

During the 1950s Clark owned refineries in Chicago and New Orleans with a total capacity of 20,000 bbls of crude oil. It also operated marine terminals in Milwaukee, St. Paul, and St. Louis. To transport fuel, it owned a tanker with a capacity of 17,000 bbls that operated on Lake Michigan and a towboat and two barges each with a 19,000 bbls capacity that operated on the Mississippi.

Clark acquired drilling rights on 200,000 acres in the northern Rocky Mountain area from Tidewater Oil Company in 1961. In 1963 Clark entered the petrochemical industry by acquiring a new petrochemical plant in Blue Island, Illinois, that produced phenol and acetone.

In 1966 Clark joined with seven other companies in the formation of Capline, a pipeline that was created to carry crude from St. James Parish, Louisiana, to the northern terminus at Patoka, Illinois. To carry the crude from Patoka to Mokena, Illinois, Clark joined with two other companies in the formation of Chicap Pipe Line Company. It also acquired a part-interest in Capwood, West Shore, and Wolverine Pipe Lines.

In September 1967 Clark purchased a 31,000 barrel per day refinery at Wood River, Illinois. Clark acquired Colab Resin Corporation for 64,516 common shares in March 1968. From 1965 through 1968, the principal well-drilling activity by Clark was in New Mexico. After 1968 Clark expanded its reach by drilling in places such as Brunei, Libya, and Mozambique. In January 1969 Clark purchased, for approximately $10 million in cash, all of the fixed assets and product inventory of Owens Oil Companies of Bloomington, Illinois, a marketing group consisting of 122 service stations.

Sales amounted to $275.6 million by 1971, up from $86.6 million ten years earlier. Net income also rose during that time period, from $514,905 in 1961 to $3.6 million in 1971.

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