Tesoro Corporation Begins Restart of Martinez Refinery and Updates First Quarter Guidance
March 27 2015 - 6:18PM
SAN ANTONIO - March 27, 2015 - Tesoro Corporation
(NYSE:TSO) today announced that the Martinez, California refinery
has begun the restart process.
"We are pleased to have reached an agreement with
the local union at our Martinez, California refinery and are
commencing the restart process today," said Greg Goff, Chairman and
CEO. "The facility should be back to normal operating levels
over the next two weeks."
The Martinez, California refinery was in the final
stages of major turnaround maintenance activity when the United
Steelworkers Union (USW) issued a strike notice on February
1st. The safest
option at that time was to safely idle the remaining operating
units and transition to operating the facility as a terminal.
Tesoro has also reached agreements with the local
USW at its Carson, California and Anacortes, Washington refineries
and employees at those refineries are returning to work. The
local unions at the Mandan, North Dakota and Salt Lake City, Utah
refineries are expected to vote on their respective contracts over
the next few days.
For Tesoro, the strike resulted in higher
operating costs than our previous guidance and lower capture rates
compared to historical averages across our West Coast system.
We currently estimate the California operating costs will be
between $7.70 and $7.95 per barrel. The Martinez, California
strike and Anacortes, Washington and Salt Lake City turnarounds
will negatively impact system capture rates by approximately $1.50
to $2.00 per barrel during the first quarter, and we expect to
realize a positive impact to capture rates in the second quarter as
we complete the planned turnarounds.
The idling of operations at Martinez resulted in
higher crude inventory along with the higher planned inventory
ahead of the Anacortes, Washington and Salt Lake City, Utah
refinery turnarounds, these inventory builds are expected to result
in a use of working capital during the first quarter of 2015.
We expect these working capital impacts will reverse in the
second quarter, as we restart and come out of turnarounds at our
refineries.
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 a 36% 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 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 the timing in which our Martinez, California refinery
will return to normal operating levels; the timing of voting by
unions at our Mandan, North Dakota and Salt Lake City, Utah
refineries on their respective contracts; first quarter operating
costs for our California refineries; the impact of the strike and
turnarounds on our system capture rates during the first and second
quarters; and the reversal during the second of the impact of
increased inventory levels on working capital. For more
information concerning factors that could affect these statements
see our annual report on Form 10-K 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
HUG#1907120
Andeavor (NYSE:ANDV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Andeavor (NYSE:ANDV)
Historical Stock Chart
From Apr 2023 to Apr 2024