Tesoro Corporation Reaches Agreement to Sell the Los Angeles Storage and Pipeline Assets to Tesoro Logistics
November 10 2015 - 4:35PM
SAN ANTONIO -
November 10, 2015 - Tesoro Corporation (NYSE:TSO, Tesoro) and
Tesoro Logistics LP (NYSE:TLLP) today announced that subsidiaries
of Tesoro have agreed upon terms for the sale of crude oil and
refined product storage and pipeline assets in Los Angeles,
California (the "Los Angeles Refinery Storage and Handling Assets")
to TLLP for a total consideration of $500 million. The assets
include 97 crude oil, feedstock and refined product storage tanks
with combined capacity of 6.6 million barrels and a 50% interest in
Line 88, a 16-mile pipeline that transports jet fuel from Tesoro's
Los Angeles Refinery to the Los Angeles International Airport with
average throughput of 25,000 barrels a day.
The acquisition price of $500
million will include cash of approximately $250 million and the
issuance of common and general partner units to Tesoro, valued at
approximately $250 million. The transaction is expected to close
later this week.
Tesoro Corporation, a Fortune 100
company, is an independent refiner and marketer of petroleum
products. Tesoro, through its subsidiaries, operates six refineries
in the western United States with a combined capacity of over
850,000 barrels per day and ownership in a logistics business which
includes an interest in Tesoro Logistics LP (NYSE: TLLP) and
ownership of its general partner. Tesoro's retail-marketing system
includes over 2,200 retail stations under the ARCO®, Shell®,
Exxon®, Mobil®, USA Gasoline(TM) and Tesoro® brands.
This press
release contains certain statements that are "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934
concerning our expectations regarding closing dates for the
transaction. For more information concerning factors that could
affect these statements, see the respective annual reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form
8-K for Tesoro Corporation and Tesoro Logistics LP, filed with the
Securities and Exchange Commission. We undertake no obligation to
publicly release the result of any revisions to any such
forward-looking statements that may be made to reflect events or
circumstances that occur, or which we become aware of, after the
date hereof.
Contact:
Investors:
Sam Ramraj, Vice President, Investor Relations, (210) 626-4757
Media:
Tesoro Media Relations, media@tsocorp.com, (210) 626-7702
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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: Tesoro Corporation via Globenewswire
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