Tesoro to acquire Flint Hills Resources' marketing and logistics assets in Alaska
November 23 2015 - 4:05PM
SAN ANTONIO, Texas, November 23,
2015 - Tesoro Corporation (NYSE: TSO), through its affiliate
Tesoro Alaska Company LLC, has agreed to acquire Flint Hills
Resources' (FHR) wholesale marketing and logistics assets in
Anchorage and Fairbanks, Alaska.
"This investment represents our
commitment to efficiently and reliably serve customers in the state
of Alaska," said Greg Goff, Chairman, President and Chief Executive
Officer of Tesoro Corporation. "We have been a part of the Alaska
community since 1969, and over the last five years we have invested
more than $300 million dollars in our Alaska operations. We look
forward to continuing our operations in the state."
This transaction includes:
-
all FHR wholesale fuel marketing contracts in
Alaska;
-
an Anchorage terminal with 580,000 barrels of
total in-service storage capacity, a truck rack, and rail loading
capability;
-
a Fairbanks airport terminal that includes
22,500 barrels of in-service jet fuel storage and truck rack;
and
-
a multi-year terminalling agreement at FHR's
North Pole terminal, which will provide efficient rail offload
capabilities and provide Tesoro access to Alaska's Interior.
The former FHR North Pole refinery is not part of
this acquisition.
This transaction also improves
Tesoro's ability to serve customers from its existing Anchorage
terminal, as a result of Tesoro gaining access to rail loading
capabilities located at the FHR Anchorage terminal. This extends
Tesoro's ability to efficiently and reliably serve the Alaska
interior. Tesoro expects to offer qualified third parties access to
the FHR Anchorage terminal.
The transaction is expected to
close within 60 days, pending completion of transition, planning
and required consents and approvals.
ABOUT
TESORO
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. You
can identify forward-looking statements by the use of words such as
"may," "should," "could," "estimates," "predicts," "potential,"
"continue," "anticipates," "believes," "'plans," "expects,"
"future" and "intends" and similar expressions which are intended
to identify forward-looking statements. These forward-looking
statements include statements concerning the expected completion of
the transaction, enhancements to our ability to serve customers in
the Alaska interior, continued growth of our business, and
anticipated benefits of the transaction. For more information
concerning factors that could affect these statements see our
annual report on Form 10-K and quarterly reports on Form 10-Q,
filed with the Securities and Exchange Commission (the "SEC"). 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.
TESORO CONTACTS:
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#1968899
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