Tesoro acquires Dakota Prairie Refining business in North Dakota
June 28 2016 - 8:00AM
SAN ANTONIO, Texas, June 28, 2016
- Tesoro Corporation (NYSE: TSO), through its affiliate Tesoro
Refining & Marketing Company LLC, has acquired Dakota Prairie
Refining, LLC (DPR), which owns a refinery near Dickinson,
North Dakota, with strategic access to advantaged Bakken crude oil
and is located just 100 miles west of the Tesoro Mandan
Refinery.
DPR's refinery has a crude oil capacity of 20
thousand barrels per day and produces ultra-low sulfur diesel,
naphtha and resid. Tesoro plans to continue to market the ultra-low
sulfur diesel to local customers and utilize the naphtha and resid
in its integrated value chain system.
In consideration for this acquisition, Tesoro is
ensuring the continued servicing of DPR's $66 million term loan
debt and contributing approximately $10 million toward working
capital.
"We have successfully grown our business in North
Dakota, and created substantial value for our shareholders and
local communities," said Greg Goff, Chairman, President and Chief
Executive Officer of Tesoro Corporation. "This acquisition presents
new opportunities for continued growth. We have already identified
plans to drive substantial improvements, and we are prepared to
execute on these plans in 2016. This includes system-wide
commercial and feedstock optimization, increased efficiencies in
distribution and reduced transportation and refining costs. As a
result, we expect to generate more than $20 million in annual
operating income from this business - even if the current economic
conditions continue."
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 875,000 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
2,400 retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA
Gasoline(TM), Rebel(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 the expected effect on our operating income, the
strategic advantage of access to Bakken crude oil, our plans to
market or use the refinery's products, our opportunities for
continued growth and our ability to implement improvements,
including reducing costs, improving efficiencies and optimizing our
feedstocks. 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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