Markets

Tesoro Closes Los Angeles Asset Sale to Tesoro Logistics

Independent refiner Tesoro CorporationTSO announced that its subsidiaries have closed the sale of its Los Angeles storage and pipeline assets to Tesoro Logistics LP TLLP .

The transaction price of $500 million included cash as well as equity issuance. Tesoro Logistics paid $250 million in cash and issued units worth $250 million to Tesoro.

The assets under sale included crude oil, feedstock and refined product storage tanks. A 50% stake in a pipeline that transports jet fuel from the Los Angeles refinery to the Los Angeles International Airport has also been sold.

Tesoro Corporation is an independent refiner and marketer of refined petroleum products in the western U.S. A major advantage for the company is the scale and diversification benefits offered by its portfolio of six refineries. Being buyers of crude, Tesoro's profitability has been favorably impacted by a fall in input cost. The company operates its businesses under three segments - Refining, Logistics and Retail.

Tesoro holds general partner interest in Tesoro Logistics. The partnership is engaged in the ownership, operation, development and acquisition of crude oil and refined products logistics assets.

Currently, Tesoro holds a Zacks Rank #2 (Buy) while Tesoro Logistics carries a Zacks Rank #3 (Hold).

Other stocks worth considering from the oil refining and marketing space are Murphy USA Inc. MUSA and Marathon Petroleum Corporation MPC . While Murphy USA sports a Zacks Rank #1 (Strong Buy), Marathon Petroleum has the same rank as Tesoro Corporation.

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TESORO CORP (TSO): Free Stock Analysis Report

MURPHY USA INC (MUSA): Free Stock Analysis Report

TESORO LOGISTIC (TLLP): Free Stock Analysis Report

MARATHON PETROL (MPC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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