Trecora Receives Permission to Construct and Operate New Reformer Unit in Texas

Trecora Resources, a leading provider of high purity specialty hydrocarbons and waxes, today announced it has received permission from the Texas Commission on Environmental Quality to construct and operate a 4,000 barrels per day reformer unit at its South Hampton Resources (SHR) subsidiary in Silsbee, Texas.

The new reformer unit further supports the recently completed D-Train expansion, and utilizes Chevron Phillips Chemical Company's proprietary Aromax® Process that was originally tested and proven for commercial application at SHR's Silsbee facility. The Aromax® Process is ideally suited to the C6+ streams available to SHR through its integrated, natural gasoline-based high purity pentane and hexane production trains.

Simon Upfill-Brown, Trecora's President and Chief Executive Officer, commented, "The Aromax® Process unit will produce a significantly higher value byproduct stream compared with our existing reformer. In addition, the new reformer will provide a secure and reliable source of hydrogen for SHR's high purity pentane production and custom processing activities. With these benefits, we remain positioned to meet increased long–term pentane demand while also achieving a near-term payback on the project. In recent quarters we have sold our byproduct volume at average prices below our feedstock cost, which significantly impacted our gross margins. We expect the Aromax® Process benzene, toluene and xylene (BTX) byproduct stream to be sold well above feedstock costs."

The capital investment for this project is estimated at $45 - $50 million and will be financed by existing sources of funds. The site of the reformer unit has been cleared and construction will begin immediately. The Company expects to complete the project in the second quarter of 2017.

About Trecora Resources (TREC)
TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high purity hydrocarbons and other petrochemical manufacturing. TREC also owns and operates a leading manufacturer of specialty polyethylene waxes and provider of custom processing services located in the heart of the Petrochemical complex in Pasadena, Texas. In addition, the Company is the original developer and a 35% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.


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