Tesoro Refining & Marketing Company LLC, a subsidiary of
) has formed a joint venture with supply system provider Savage
Companies to build a port facility. The crude-by-rail unloading
and marine loading facility will be located at the Port of
DELEK US HLDGS (DK): Free Stock Analysis
GLOBAL PARTNERS (GLP): Free Stock Analysis
LEHIGH GAS PTNR (LGP): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
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The Tesoro-Savage joint ventures' new facility will have an
initial capacity of 120,000 barrels per day (bpd) and can be
expanded up to 280,000 bpd. The project will involve a total
investment of approximately $75 million to $100 million and is
expected to be operational in 2014. Both, Tesoro and Savage will
also enter into a land lease agreement with the Port for an
initial period of 10 years.
The unique location of the Port of Vancouver will help in the
delivery of North American crude oil to West Coast refining
centers. This joint venture will benefit Tesoro with sustainable
revenues. It will also create construction and operation related
jobs locally. The deal is subject to approvals by regulatory
agencies and port commissioners.
Management at Tesoro believes that this new project will have an
additional feedstock cost advantage to its other refineries in
the West Coast.
Tesoro is expected to announce its first-quarter 2013 results on
May 1. The Zacks Consensus Estimate for the to-be-reported
quarter is a profit of 74 cents per unit on revenues of $7,171.0
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 1 to 3 months.
But there are certain other firms in the oil refining and
marketing industry that are performing better and are worth
considering at the current level. These include
Lehigh Gas Partners LP
lobal Partners LP
Delek US Holdings Inc.
). All these stocks sport a Zacks Rank #2 (Buy).