Tesoro Closes Acquisition of Logistics Assets in the Williston Basin of North Dakota
SAN ANTONIO, Texas, January 11, 2016 - Tesoro Corporation (NYSE: TSO) ("Tesoro") has closed the previously announced acquisition of Great Northern Midstream LLC ("Great Northern Midstream"), a crude oil logistics provider which owns and operates high-quality, recently constructed crude oil pipeline, gathering system, transportation, storage and rail loading facilities in the Williston Basin of North Dakota.
Consistent with the details of the transaction announced on December 8, 2015, the acquisition includes:
the 97-mile BakkenLink crude oil pipeline, which connects to several third-party gathering systems;
a proprietary 28-mile gathering system in the core of the Bakken, supported by acreage dedication;
a 154,000 barrel per day rail loading and a 657,000 barrel storage facility in Fryburg, North Dakota which can provide outbound deliveries to the West, East and Gulf Coasts.
"These strategically-located assets are expected to integrate well with our existing assets to create an enhanced system that will serve as a platform for growth for Tesoro and Tesoro Logistics," said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation. "It also builds upon our existing capabilities to provide full-service logistics options for crude oil producers in North Dakota."
The enhanced system will also benefit Tesoro by providing direct access to additional advantaged crude oil for its West Coast refineries and has the potential to reduce supply costs as the Company continues to strengthen its supply position. Additionally, the system will provide ratable pipeline volumes that should ultimately benefit Tesoro Logistics once offered to the master limited partnership, which is expected in 2016.
The financial details of the transaction will remain confidential.
Tesoro Corporation, a Fortune 100 company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates six refineries in the western United States with a combined capacity of 875,000 barrels per day and ownership in a logistics business which includes an interest in Tesoro Logistics LP (NYSE: TLLP) and ownership of its general partner. Tesoro's retail-marketing system includes over 2,300 retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA Gasoline(TM) and Tesoro® brands.
This press release contains certain statements that are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify forward-looking statements by the use of words such as "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "'plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements. These forward-looking statements include statements concerning the integration of the acquired assets into Tesoro's existing business; anticipated benefits of the acquisition; and the anticipated offer of the business to Tesoro Logistics. For more information concerning factors that could affect these statements see our annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission (the "SEC"). We undertake no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances that occur, or which we become aware of, after the date hereof.
Sam Ramraj, Vice President, Investor Relations, (210) 626-4757
Tesoro Media Relations, email@example.com, (210) 626-7702
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Source: Tesoro Corporation via Globenewswire