In an attempt to form the largest U.S. oil-refining realm in
the Pacific Basin,
) closed the acquisition of Carson refinery and associated
business units from London-based
BP PLC (BP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis
TESORO LOGISTIC (TLLP): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
To read this article on Zacks.com click here.
For the deal, Tesoro paid $2.425 billion, out of which $1.075
billion was for the assets, while the rest was for inventory and
other working capital. Located in Southern California, the Carson
refinery lies close to Tesoro's Wilmington refinery and has a
conversion capacity of 266 million barrels per day (MBPD).
Apart from the refinery, the acquisition also includes 800 dealer
operated retail stations spread across Southern California,
Nevada and Arizona along with the well-established ARCO® brand
and related registered trademarks.
Tesoro Logistics LP
) also closed the previously announced acquisition of
Carson-based logistic assets of Tesoro Corporation. It includes
six marketing and storage terminal facilities with 225 MBPD of
throughput capacity, as well as roughly 6.4 million barrels in
total storage capacity. TLLP paid $640 million for the
acquisition, which includes $544 million of cash and the rest in
Moreover, TLLP expects to be offered Tesoro's remaining property,
including storage facilities, pipelines and marine terminals for
$450-$550 million within a year.
Tesoro financed the BP transaction with $550 million in cash,
$544 million in cash proceeds from the acquisition of logistics
assets by TLLP, $500 million in term loan borrowings and around
$700 million in borrowings under its revolving credit facility.
Following the asset acquisition, Tesoro will be able to increase
its refining operations in California by twofold, thereby
bridging the gap with
) - one of the biggest refiner of the region.
Tesoro 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.