Tesoro Closes Acquisition of Logistics Assets in the Williston Basin of North Dakota
January 11 2016 - 8:00AM
SAN ANTONIO, Texas, January 11,
2016 - Tesoro Corporation (NYSE: TSO) ("Tesoro") has closed the
previously announced acquisition of Great Northern Midstream LLC
("Great Northern Midstream"), a crude oil logistics provider which
owns and operates high-quality, recently constructed crude oil
pipeline, gathering system, transportation, storage and rail
loading facilities in the Williston Basin of North Dakota.
Consistent with the details of the transaction
announced on December 8, 2015, the acquisition includes:
-
the 97-mile BakkenLink crude oil pipeline, which
connects to several third-party gathering systems;
-
a proprietary 28-mile gathering system in the
core of the Bakken, supported by acreage dedication;
-
a 154,000 barrel per day rail loading and a
657,000 barrel storage facility in Fryburg, North Dakota which can
provide outbound deliveries to the West, East and Gulf
Coasts.
"These strategically-located assets are expected
to integrate well with our existing assets to create an enhanced
system that will serve as a platform for growth for Tesoro and
Tesoro Logistics," said Greg Goff, Chairman, President and Chief
Executive Officer of Tesoro Corporation. "It also builds upon our
existing capabilities to provide full-service logistics options for
crude oil producers in North Dakota."
The enhanced system will also benefit Tesoro by
providing direct access to additional advantaged crude oil for its
West Coast refineries and has the potential to reduce supply costs
as the Company continues to strengthen its supply position.
Additionally, the system will provide ratable pipeline volumes that
should ultimately benefit Tesoro Logistics once offered to the
master limited partnership, which is expected in 2016.
The financial details of the transaction will
remain confidential.
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 875,000 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 2,300 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 integration of the
acquired assets into Tesoro's existing business; anticipated
benefits of the acquisition; and the anticipated offer of the
business to Tesoro Logistics. 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
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