) announced that it has entered into a deal with its affiliate
Tesoro Logistics LP
Per the contract, TLLP will buy part of the Carson-based logistic
assets of Tesoro - which include six marketing and storage
terminal facilities with 224,800 barrels per day of throughput
capacity, as well as roughly 6.4 million barrels in total storage
capacity. TLLP is expected to pay roughly $640 million for the
acquisition, which includes $544 million of cash and the rest in
The cash component is expected to be financed with the
borrowings from the revolving credit agreement. The transaction
is anticipated to be closed by the second quarter of 2013.
KINDER MORG MGT (KMR): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
TESORO LOGISTIC (TLLP): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
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The expected yearly earnings before interest, taxes, depreciation
and amortization (EBITDA) from the assets will be $60 to $65
Moreover, TLLP believes that the residual portion of the property
of Tesoro, which includes storage facilities, pipelines and
marine terminals, will be offered to it for $450 to $550 million,
within a year after the initial transaction gets closed.
San Antonio, Texas-based TLLP is a limited partnership, which
purchases and possesses logistics properties of crude oil and
refined products. The partnership also involves in the operation
of the assets.
TLLP 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.
Two oil and gas production pipeline Master Limited Partnerships
Kinder Morgan Management LLC
Magellan Midstream Partners LP
) are expected to outperform the broader U.S. equity market over
the next one to three months. Both the firms retain a Zacks Rank