Tesoro Logistics LP
), an affiliate of independent refiner
), has completed the previously announced purchase of a major
portion of the residual Los Angeles-based Logistics properties of
the later for roughly $650.0 million. Of the total purchase
price, $585.0 million was in cash and the remaining was in equity
After operating the Los Angeles assets for a year, Tesoro
Logistics expects earnings before income tax depreciation and
amortization (EBITDA) of $60.0-$65.0 million from the properties.
Subsequently, the Logistics resources are expected to deliver
EBITDA of $65.0 to $75.0 million. Moreover, Tesoro
Logistics projects maintenance expenses to be in the range of
$10.0-$14.0 million every year.
The acquired properties include 2 marine terminals that have a
capacity of 285,000 barrels per day, a 2 million barrels crude
oil and refined products storage terminal, a petroleum coke
handling and storage unit with a capacity of about 2,600 metric
tons per day, a refined products terminal and a shipping
container storage lot. The partnership will also own a 100 mile
pipeline system - with expected capacity of 550,000 barrels per
day - that will provide connectivity to the other acquired
Tesoro Logistics believes that the acquired assets will
immediately provide the unit holders with increased cash
Tesoro Logistics is involved in the acquisition and development
of logistics properties of oil and refined products. The
partnership currently retains a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy
Bonanza Creek Energy Inc.
Harvest Natural Resources Inc.
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
BONANZA CREEK (BCEI): Free Stock Analysis
HARVEST NATURAL (HNR): Free Stock Analysis
TESORO LOGISTIC (TLLP): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
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