) completed the transfer of the Anacortes Rail Unloading Facility
to the master limited partnership (MLP) -
Tesoro Logistics LP
). For the property, Tesoro Logistics made a payment of $180
million, of which $162 million was in cash and the remaining was
through the partnership's equity.
The facility - owned by subsidiary Tesoro Refining and Marketing
Company - comprised of a four track offloading station, which has
an unloading capacity of 100 car unit trains and permitted to
hold nearly 50,000 barrels per day.
Tesoro Corporation and its partnership also signed a throughput
and use agreement associated with the rail unloading facility
assets. Per the deal, the contract stands for an initial period
of 10 years, with at least a daily throughput commitment of 40
million barrels as well as price escalations every year.
Tesoro Logistics expects to witness an estimated additional
annual logistics EBITDA of $19 million from this transaction.
Prior to this divesture, Tesoro Corporation had passed on the
Martinez Crude Oil Marine Terminal and the Long Beach marine
terminal along with Los Angeles short-haul pipelines to Tesoro
These sales underline the attempt of Tesoro to expand the
partnership's business horizon and broaden its asset base.
San Antonio, Texas-based Tesoro Corporation is an independent
refiner and marketer of refined petroleum products in the western
U.S. The company operates in two segments: Refining and Retail.
In early November, Tesoro came out with mixed third-quarter 2012
results, with earnings per share missing the Zacks Consensus
Estimate and revenue going ahead of our projection. The company
also announced a 25.0% increase in its quarterly dividend to 15
cents per share, or 60 cents per share annualized.
While Tesoro Corporation - which has business ties with
) - currently holds a Zacks #3 Rank (short-term Hold rating), we
maintain our long-term Outperform recommendation on the stock.
BP PLC (BP): Free Stock Analysis Report
TESORO LOGISTIC (TLLP): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
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