Andeavor and Andeavor Logistics Respond to FERC Announcement
March 15 2018 - 3:45PM
SAN ANTONIO - March 15, 2018
- The Federal Energy Regulatory Commission ("FERC"), today
announced that it would be revising its policy regarding income tax
allowances in the rates of pipelines operated by MLPs.
Andeavor Logistics (NYSE: ANDX) operates some FERC
regulated pipelines, but anticipates that the ruling may only have
a possible annual negative impact to Andeavor Logistics' net
earnings and EBITDA of less than $10 million, which reflects the
entire potential impact of changes in the FERC corporate tax
allowance.
In addition, the FERC ruling also addressed the
rate structure of certain pipelines operated by SFPP, L.P.
Andeavor (NYSE: ANDV) is a party to these cases involving SFPP,
L.P. and anticipates receiving refunds that will have a positive
impact upon future cash flows, which we are in the process of
estimating.
About Andeavor
Andeavor is a premier, highly integrated marketing, logistics and
refining company. Andeavor's retail-marketing system includes more
than 3,250 stores marketed under multiple well-known fuel brands,
including ARCO®,
SUPERAMERICA®,
Shell®,
Exxon(TM),
Mobil(TM),
Tesoro®, USA
Gasoline(TM) and
Giant®. It also has
ownership in Andeavor Logistics LP (NYSE: ANDX) and its
non-economic general partner. Andeavor operates 10 refineries with
a combined capacity
About Andeavor Logistics
LP
Andeavor Logistics LP is a leading full-service logistics company
operating primarily in the western and mid-continent regions of the
United States. Andeavor Logistics owns and operates a network of
crude oil, refined products and natural gas pipelines. Andeavor
Logistics also owns and operates crude oil and refined products
truck terminals, marine terminals and dedicated storage facilities.
In addition, Andeavor Logistics owns and operates natural gas
processing and fractionation complexes. Andeavor Logistics owns a
fee-based fuel wholesale business. Andeavor Logistics is a
fee-based, growth oriented Delaware limited partnership formed by
Andeavor.
Forward Looking
Statements
This release contains "forward-looking statements"
within the meaning of the federal securities laws. All statements,
other than statements of historical fact, are forward-looking
statements, including without limitation statements concerning: the
FERC's announced policy revision; the anticipated impact of the
policy revision to Andeavor Logistics' EBITDA and related
assumptions; the anticipated refunds to Andeavor as a result of the
policy revision and the impact to its future cash flows; and other
aspects of future performance. Although we believe the assumptions
concerning future events are reasonable, a number of factors could
cause results to differ materially from those projected. Our
operations involve risks and uncertainties, many of which are
outside of our control and could materially affect our results. For
more information concerning factors that could affect these
statements, see Andeavor's and Andeavor Logistics' annual reports
on Form 10-K, quarterly reports on Form 10-Q, and other public
filings, available at http://www.andeavor.com and andeavorlogistics.com. We undertake no obligation to
revise or update any forward-looking statements as a result of new
information, future events or otherwise.
Contact:
ANDV Investors:
Brad Troutman, Investor Relations, (210) 626-4568
ANDX Investors:
Andrew Woodward, Sr. Director, Finance and Investor Relations,
(210) 626-7202
Media:
Andeavor Media Relations, media@andeavor.com, (210) 626-7702
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Andeavor Logistics LP via Globenewswire
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