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 February 1, 2016 - 9:07 AM EST
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Tesoro Logistics LP Reports Fourth Quarter and Full Year 2015 Results



  * Fourth quarter net earnings of $66 million, or $0.49 per diluted common
    limited partner unit
  * Fourth quarter adjusted EBITDA up 65% to $155 million, full year 2015
    adjusted EBITDA up 100% to $636 million
  * Distributable cash flow up 104% to $104 million for fourth quarter, full
    year 2015 distributable cash flow up 92% to $422 million
  * Rockies natural gas business 2015 adjusted EBITDA contribution of $285
    million, exceeding $275 million target
  * Raised quarterly distribution 17% from prior year to $0.7800 per limited
    partner unit
  * Completed the Los Angeles Storage and Pipeline Assets acquisition from
    Tesoro in November 2015
SAN ANTONIO
 - February 1, 2016 - Tesoro Logistics LP (NYSE: TLLP) today reported
fourth  quarter net earnings of $66 million, or $0.49 per diluted common limited
partner  unit compared to a net loss of $13 million, or $0.34 per diluted common
limited  partner unit in the fourth quarter 2014. Adjusted EBITDA for the fourth
quarter  was $155 million, up $61 million  or 65% from the fourth quarter 2014,
which  was reduced by  approximately $24 million  of charges for expected future
remediation  costs  for  the  2013 crude  oil  pipeline  release at 
Tioga, North Dakota
.


                          Three Months Ended                Years Ended
                             December 31,                   December 31,
                    ------------------------------ -----------------------------
                      2015            2014           2015            2014
                    --------- -------------------- --------- -------------------
                                   (Includes                      (Includes
($ in millions)                   Predecessor)                   Predecessor)

Operating Income

Gathering            $  21     $   9                $ 142     $  47

Processing              28         6                  105         6

Terminalling and
Transportation          66        42                  226       173
                    --------- -------------------- --------- -------------------
Total Segment
Operating Income     $ 115     $  57                $ 473     $ 226
                    --------- -------------------- --------- -------------------
Net Earnings (Loss)  $  66     $ (13 )              $ 275     $  79



Adjusted EBITDA (a)

Gathering            $  39     $  26                $ 218     $  69

Processing              39        10                  160        10

Terminalling and
Transportation          87        65                  310       259
                    --------- -------------------- --------- -------------------
Total Segment
Adjusted EBITDA (a)  $ 165     $ 101                $ 688     $ 338
                    --------- -------------------- --------- -------------------


EBITDA (a)           $ 154     $  64                $ 621     $ 287

Adjusted EBITDA (a)  $ 155     $  94                $ 636     $ 318

Distributable Cash
Flow (a)             $ 104     $  51                $ 422     $ 220

Pro Forma
Distributable Cash
Flow (a) (b)         $ 104     $  50                $ 458     $ 219



Total Distributions
to be Paid           $  97     $  70                $ 334     $ 217

Pro Forma
Distribution
Coverage Ratio (b)
(c)                    1.07x                0.71x     1.37x                1.01x




___________________
(a)     For more information on EBITDA, Adjusted EBITDA, Distributable Cash Flow
and  Pro Forma Distributable Cash Flow,  see "Reconciliation of Amounts Reported
under  
U.S.
 GAAP"  and "Segment  Reconciliation of  Amounts Reported  under 
U.S.

GAAP".
(b)    Reflects the  adjustment to  include the  noncontrolling interest  in QEP
Midstream  Partners, LP ("QEPM") as controlling  interest based on the pro forma
assumption that the merger of QEPM with TLLP occurred on December 2, 2014.
(c)     The Distribution Coverage Ratio is calculated as Distributable Cash Flow
divided  by total distributions to  be paid for the  respective periods. For the
three  months and year ended  December 31, 2015, the Distribution Coverage Ratio
was  1.07x and 1.26x, respectively. The Pro Forma Distribution Coverage Ratio is
calculated  as Pro Forma Distributable Cash  Flow divided by total distributions
to be paid for the respective periods.

"Tesoro Logistics delivered another strong operating quarter with year-over-year
volume, EBITDA and distributable cash flow growth," said Greg Goff, Chairman and
Chief  Executive  Officer  of  TLLP's  general  partner.  "Adjusted  EBITDA grew
approximately 65% versus last year's quarter through successful execution of our
organic  growth  objectives  and  contributions  from  our  Rockies  natural gas
business  and  
Los Angeles
  Storage  and  Pipeline  Assets acquisition. We also
delivered   our  19th consecutive  quarter  of  distribution  growth,  with  our
announced distribution growing 4% quarter-over-quarter and 17% year-over-year."

Distributable  cash flow for the fourth quarter was $104 million, up $53 million
or   104%, from  the  fourth  quarter  2014. On  January 20,  2016, the  Company
announced  its quarterly  cash distribution  of $0.7800  per limited partnership
unit  or $3.12  on an  annualized basis.  The declared distribution represents a
17% increase  over the fourth  quarter 2014 distribution of  $0.6675 per limited
partner  unit paid in  February 2015. This also  represents the 19th consecutive
quarterly  increase of approximately 4% or more. Distribution coverage ratio was
1.07 times for the fourth quarter. Pro forma distribution coverage ratio for the
full  year 2015 was  1.37 times. Although  TLLP completed  the merger of QEPM in
July  2015, pro  forma  distribution  coverage  ratio reflects the adjustment to
include the noncontrolling interest in QEPM as controlling interest based on the
pro  forma assumption  that the  merger of  QEPM with  TLLP occurred  on January
1, 2015.

Fourth Quarter 2015 Financial and Operational Segment Results
Gathering
The  Gathering segment generated  $86 million of  revenue in the fourth quarter,
which  was up $35 million from $51  million in the fourth quarter 2014. Adjusted
EBITDA  for  the  Gathering  segment  totaled  $39 million in the fourth quarter
2015, up  $13 million from the fourth  quarter 2014. Adjusted EBITDA was reduced
by  the environmental accrual of approximately  $24 million. Crude oil gathering
volumes   were   up   37% year-over-year  and  3% sequentially,  driven  by  the
development  of the Connolly  Gathering System and  additional volumes coming on
the  Tesoro  High  Plains  Pipeline  system  from third-party gathering systems.
Natural   gas   gathering   volumes  were  up  5% year-over-year  and  down  1%
sequentially, in line with normal seasonal trends.

Processing
The  Processing segment generated revenue of  $73 million in the fourth quarter,
up   $50  million  from  $23  million  in  the  fourth  quarter  2014, primarily
attributable  to a full quarter ownership of the assets. Adjusted EBITDA for the
Processing  segment totaled  $39 million  in the  fourth quarter, up $29 million
from  the fourth quarter  2014. NGL processing throughput  was up 20% year-over-
year and flat sequentially, primarily due to NGL yield optimization.

Terminalling and Transportation
The Terminalling and Transportation segment generated $133 million of revenue in
the  fourth quarter, which  was up $17  million from $116  million in the fourth
quarter  2014. Adjusted EBITDA  for the  Terminalling and Transportation segment
totaled  $87  million  in  the  fourth  quarter,  up $22 million from the fourth
quarter   2014, primarily  driven  by  contributions  from  the  new  Anacortes,
Washington  terminal completed in  November 2015 and contributions  from the Los
Angeles Storage and Pipeline Assets drop down completed in November 2015.

Capital Expenditures
Capital  expenditures for the fourth quarter  totaled $59 million. This includes
$43  million of growth capital, of which approximately $3 million was reimbursed
and  $16 million of  maintenance capital, of  which approximately $5 million was
reimbursed.

Strategic Update
"During  2015, we continued to  execute our strategy  to grow TLLP's integrated,
full-service  logistics business.  We completed  several organic growth projects
during  the year including  the 
Anacortes
 terminal  in November and the Connolly
Gathering System in December," added Goff. "We also completed the integration of
the Rockies natural gas business and the merger of QEPM, which for the full year
2015 contributed  $285 million of adjusted EBITDA,  exceeding our target of $275
million  of adjusted EBITDA. The business delivered approximately $30 million of
synergies  in  the  full  year  2015, exceeding  our $25 million synergy target.
Additionally,  in  November  we  acquired  the  Los Angeles Storage and Pipeline
Assets  from Tesoro  which further  grew our  portfolio of  committed, fee-based
logistics assets."

TLLP  recently announced several  new projects that  should position the Company
for  future growth. These projects include a new High Plains pipeline expansion,
the  Charging Eagle  Gathering System  in the  Bakken region  in 
North Dakota
, a
compression and gathering project in the Uinta basin in the Rockies, and the Los
Angeles Refinery Interconnect Pipeline project.

On  January  29, 2016, the  Company  made  changes  to  its credit facilities to
increase  available credit capacity  by $700 million,  lower borrowing costs and
improve financial covenants. TLLP syndicated a new $1.0 billion secured Dropdown
Credit  Facility and decreased the aggregate available capacity on the Revolving
Credit  Facility to  $600 million  from $900  million. Added  Goff, "With strong
support from Tesoro, solid financial flexibility and continued opportunities for
growth,  we  believe  TLLP  is  well  positioned  strategically  in  the current
challenging market environment."

Public Invited to Listen to Analyst Conference Call
At  11:00 a.m. CT tomorrow morning, TLLP will live broadcast its conference call
with  analysts regarding  fourth quarter  and full  year 2015 and other business
matters.  Interested parties  may listen  to the  live conference  call over the
Internet by logging on to http://www.tesorologistics.com.

About Tesoro Logistics LP
Tesoro  Logistics  LP  is  a  leading  full-service  logistics company operating
primarily  in the Western  and Mid-Continent regions  of 
the United States
. TLLP
owns  and operates a network of over  3,500 miles of crude oil, refined products
and  natural gas pipelines. TLLP also owns and operates 28 crude oil and refined
products  truck and marine terminals and  has over 15 million barrels of storage
capacity.  In  addition,  TLLP  owns  and  operates  four natural gas processing
complexes  and one fractionation facility. TLLP  is a fee-based, growth oriented
Delaware
  limited partnership formed by  Tesoro Corporation and is headquartered
in 
San Antonio, Texas
.

This  earnings 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 concerning  projects
positioning  TLLP for future growth;  continued opportunities for growth; TLLP's
strategic  position in the current  challenging market environment; and guidance
regarding throughput volume expectations for the first quarter of 2016. For more
information concerning factors that could affect these statements see our annual
report  on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K  filed  with  the  Securities  and  Exchange  Commission.  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.

Contact:
Investors:
Evan Barbosa, Investor Relations Manager, (210) 626-7202

Media:
Tesoro Media Relations, media@tsocorp.com, (210) 626-7702




                              TESORO LOGISTICS LP
                          FIRST QUARTER 2016 GUIDANCE
                                  (Unaudited)

 Throughput

 Gathering

 Crude oil gathering pipeline (Mbpd)                205 - 225

 Crude oil gathering trucking (Mbpd)                  25 - 35

 Natural gas gathering (thousands of MMBtu/d)   1,000 - 1,050



 Processing

 NGL processing (bpd)                           7,000 - 8,000

 Fee-based processing (thousands of MMBtu/d)        700 - 750



 Terminalling and Transportation

 Terminalling (Mbpd)                                960 - 990

 Pipeline transportation (Mbpd)                     850 - 880





Factors Affecting Comparability

On  November 12, 2015, the Partnership  purchased crude oil  and refined product
storage  and pipeline  assets in  
Los Angeles, California
 (the  "LA Storage and
Handling  Assets")  owned  by  subsidiaries  of  Tesoro Corporation, for a total
consideration of $500 million. The Partnership acquired 97 crude oil, feedstock,
and  refined product storage tanks with combined capacity of 6.6 million barrels
and  a 50% interest in a 16-mile pipeline that transports jet fuel from Tesoro's
Los  Angeles refinery to the Los  Angeles International Airport. The acquisition
price  of  $500  million  included  cash  of  approximately $250 million and the
issuance  of common and general partner units to Tesoro, valued at approximately
$250 million.

During  2014, we entered into transactions with  Tesoro and Tesoro Logistics GP,
LLC,  our general  partner, pursuant  to which  TLLP acquired  from Tesoro three
truck  terminals, ten storage  tanks, two rail  loading and unloading facilities
and  a refined products  pipeline (the "West  Coast Logistics Assets") effective
July 1,  2014 for the terminals, storage tanks and rail facilities and effective
September 30,  2014 for the  refined products  pipeline. These  transactions are
collectively  referred to as  the "
West Coast
  Logistics Assets Acquisition" and
were  transfers between  entities under  common control.  Accordingly, the 2014
financial information of TLLP contained herein has been retrospectively adjusted
to  include the  historical results  of the  assets acquired  in the  
West Coast

Logistics  Assets  Acquisition  for  the  periods  presented.  We  refer  to the
historical  results of the 
West Coast
  Logistics Assets prior to its acquisition
date  as our "Predecessor." Our  financial results may not  be comparable as our
Predecessor  recorded revenues, general and administrative expenses and financed
operations  differently than the Partnership. We  entered into the Third Amended
and  Restated Omnibus Agreement (the  "Amended Omnibus Agreement") in connection
with the West Coast Logistics Assets Acquisition.

On  December 2, 2014, we  acquired QEP  Field Services,  LLC, which  included an
approximate  56% limited  partner  interest  in  QEPM  and  100% of  the limited
liability  company interests of  QEPM's general partner,  QEP Midstream Partners
GP, LLC from QEP Resources, Inc. (collectively the "Rockies Natural Gas Business
Acquisition").  On  July  22, 2015, we  acquired  all  remaining limited partner
interest  in  QEPM  through  the  issuance  of common units representing limited
partnership  interests in TLLP. See "Factors Affecting the Comparability of  Our
Financial  Results"  in  our  Annual  Report  on  Form  10-K  for the year ended
December 31,  2015 for more information on the impact of the Rockies Natural Gas
Business Acquisition and the acquisition of the West Coast Logistics Assets from
Tesoro.  As  a  result  of  the  Rockies  Natural  Gas  Business Acquisition, we
introduced  a  new  reporting  segment  (Processing)  and  acquired  natural gas
gathering operations, which we have presented within our Gathering segment.

Non-GAAP Measures

Our  management uses  a variety  of financial  and operating measures to analyze
operating segment performance. Our management also uses additional measures that
are known as "non-GAAP" financial measures in its evaluation of past performance
and  prospects for the future to  supplement our financial information presented
in accordance with accounting principles generally accepted in 
the United States of America
 ("
U.S.
 GAAP").  These measures are  significant factors in assessing
our  operating results and  profitability and include  earnings before interest,
income   taxes,   loss   attributable  to  Predecessors,  and  depreciation  and
amortization expense ("EBITDA"), Adjusted EBITDA and Distributable Cash Flow. In
2015, we  updated our presentation of  EBITDA, Adjusted EBITDA and Distributable
Cash  Flow to include noncontrolling  interest in these calculations. Management
uses EBITDA and Adjusted EBITDA to manage our operations and business as a whole
without  regard to amounts attributable to noncontrolling interests. As a result
of  the change  in EBITDA  and Adjusted  EBITDA, our definition of Distributable
Cash  Flow was revised to adjust  for noncontrolling interest amounts since they
continue to impact cash available for distribution to our unitholders.

We  define adjusted  EBITDA as  EBITDA plus  or minus  amounts determined  to be
"special  items" by  our management  based on  their unusual nature and relative
significance  to earnings in a certain period. We define Distributable Cash Flow
as adjusted EBITDA plus or minus amounts determined to be "special items" by our
management  based  on  their  relative  significance  to  cash flow in a certain
period.  We define Pro Forma Distributable  Cash Flow as Distributable Cash Flow
plus  or minus  adjustments for  the acquisition  of noncontrolling  interest in
connection with the Merger. We provide complete reconciliation and discussion of
items  identified as special items with  our presentation of adjusted EBITDA and
Distributable  Cash Flow. Prior periods have been adjusted to conform to current
presentation.  EBITDA, adjusted  EBITDA, Distributable  Cash Flow  and Pro Forma
Distributable  Cash  Flow  are  not  measures  prescribed  by  
U.S.
 GAAP but are
supplemental  financial measures that are used by  management and may be used by
external   users  of  our  financial  statements,  such  as  industry  analysts,
investors, lenders and rating agencies, to assess:

·           our  operating  performance  as  compared  to  other publicly traded
partnerships in the midstream energy industry, without regard to historical cost
basis or financing methods;

·         the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;

·         our ability to incur and service debt and fund capital
expenditures; and

·          the viability of acquisitions  and other capital expenditure projects
and the returns on investment of various investment opportunities.

The  
U.S.
 GAAP measures  most directly comparable  to EBITDA and adjusted EBITDA
are  net earnings  and net  cash from  operating activities. EBITDA and adjusted
EBITDA  should not be considered as an  alternative to 
U.S.
 GAAP net earnings or
net  cash from operating  activities. EBITDA and  adjusted EBITDA have important
limitations  as analytical tools, because they  exclude some, but not all, items
that affect net earnings and net cash from operating activities. We have updated
our  Distributable  Cash  Flow  to  adjust  for the impact of our noncontrolling
interest  acquired in  the Rockies  Natural Gas  Business. The 
U.S.
 GAAP measure
most  directly comparable to Distributable Cash Flow and Pro Forma Distributable
Cash Flow is net earnings.

Investors  and analysts use these financial measures to help analyze and compare
companies  in the industry on the basis of operating performance. These non-GAAP
financial  measures should not be considered in isolation or as a substitute for
analysis of revenues, operating expenses, segment operating income, or any other
measure  of financial  performance presented  in accordance  with 
U.S.
 GAAP. Our
definitions  of  these  non-GAAP  financial  measures  may  not be comparable to
similarly  titled  measures  of  other  companies,  because  they may be defined
differently  by  other  companies  in  our  industry,  thereby diminishing their
utility.


                              TESORO LOGISTICS LP
                             RESULTS OF OPERATIONS
          (Unaudited) (In millions, except unit and per unit amounts)

                                 Three Months Ended            Years Ended
                                    December 31,              December 31,
                              ------------------------- ------------------------
                                  2015         2014         2015         2014
                              ------------ ------------ ------------ -----------
Revenues:

Gathering                      $     86     $     51     $    339     $    135

Processing                           73           23          278           23

Terminalling and
Transportation                      133          116          495          442
                              ------------ ------------ ------------ -----------
Total Revenues                      292          190        1,112          600
                              ------------ ------------ ------------ -----------
Cost and Expenses:

Operating and maintenance
expenses, net (a)                   120           97          411          265

General and administrative
expenses (b)                         21           35          102           74

Depreciation and amortization
expenses                             46           26          179           78

Loss (gain) on asset disposals
and impairments (c)                   1            -            1           (4 )
                              ------------ ------------ ------------ -----------
Total Costs and Expenses            188          158          693          413
                              ------------ ------------ ------------ -----------
Operating Income                    104           32          419          187

Interest and financing costs,
net                                 (38 )        (46 )       (150 )       (109 )

Equity in earnings of
unconsolidated affiliates             1            1            7            1
                              ------------ ------------ ------------ -----------
Earnings (Loss) Before Income
Taxes                                67          (13 )        276           79

Income Tax Expense                    1            -            1            -
                              ------------ ------------ ------------ -----------
Net Earnings (Loss)            $     66     $    (13 )   $    275     $     79
                              ------------ ------------ ------------ -----------


Loss attributable to
Predecessors                          3            5           17           23

Income attributable to
noncontrolling interest              (1 )         (3 )        (20 )         (3 )
                              ------------ ------------ ------------ -----------
Net Earnings (Loss)
Attributable to Partners             68          (11 )        272           99

General partner's interest in
earnings, including incentive
distribution rights                 (22 )        (14 )        (73 )        (43 )
                              ------------ ------------ ------------ -----------
Limited Partners' Interest in
Net Earnings (Loss)            $     46     $    (25 )   $    199     $     56
                              ------------ ------------ ------------ -----------


Net Earnings (Loss) per
Limited Partner Unit:

Common - basic                 $   0.49     $  (0.34 )   $   2.33     $   0.96

Common - diluted               $   0.49     $  (0.34 )   $   2.33     $   0.96

Subordinated - basic and
diluted                        $      -     $      -     $      -     $   0.62



Weighted Average Limited
Partner Units Outstanding:

Common units - basic               91.2         74.4         84.7         54.2

Common units - diluted             91.3         74.4         84.8         54.2

Subordinated units - basic and
diluted                               -            -            -          5.6



Cash Distributions per Unit
Paid During Period (d)         $ 0.7500     $ 0.6425     $ 2.8350     $ 2.4125



_____________
(a)    Operating and maintenance expenses include imbalance settlement gains of
$2 million and $3 million for the three months ended December 31, 2015 and
2014, respectively, and $8 million and $17 million for the years ended
December 31, 2015 and 2014, respectively. Also includes reimbursements primarily
related to pressure testing completed on the High Plains pipeline and repairs
and maintenance costs pursuant to the Amended Omnibus Agreement of $8 million
for both the three months ended December 31, 2015 and 2014, and $34 million and
$26 million for the years ended December 31, 2015 and 2014, respectively.
(b)   General and administrative expenses include transaction costs related to
the Rockies Natural Gas Business Acquisition, Acquisitions from Tesoro and the
Northwest Products System acquisition of $1 million and $18 million in the three
months ended December 31, 2015 and 2014, respectively, and $2 million and $19
million in the years ended December 31, 2015 and 2014, respectively.
(c)    Includes a $5 million gain related to the sale of the Boise Terminal for
the year ended December 31, 2014.
(d)   On January 20, 2016, we declared a quarterly cash distribution of $0.7800
per limited partner unit for the fourth quarter of 2015.

                              TESORO LOGISTICS LP
               RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP
                           (Unaudited) (In millions)

                                             Three Months
                                                 Ended            Years Ended
                                             December 31,        December 31,
                                          ------------------- ------------------
                                            2015      2014      2015      2014
                                          --------- --------- --------- --------
Reconciliation of EBITDA, Adjusted EBITDA
and Distributable Cash Flow to Net
Earnings Attributable to Partners:

Net earnings (loss)                        $  66     $ (13 )   $ 275     $  79

Loss attributable to Predecessor               3         5        17        23

Depreciation and amortization expenses,
net of
  Predecessor expenses                        46        26       178        76

Interest and financing costs, net of
capitalized interest                          38        46       150       109

Income tax expense                             1         -         1         -
                                          --------- --------- --------- --------
EBITDA                                       154        64       621       287

Gain on sale of Boise Terminal (c)             -         -         -        (5 )

Acquisition costs included in general and
administrative
  expenses (b) (e)                             1        18         2        19

Billing of deficiency payments (f)             -        10        13        10

Inspection and maintenance expenses
associated with the
  Northwest Products System (g)                -         2         -         7
                                          --------- --------- --------- --------
Adjusted EBITDA                              155        94       636       318

Interest and financing costs, net (h)        (38 )     (30 )    (150 )     (86 )

Proceeds from sale of assets                   -         -         -        10

Maintenance capital expenditures, net (i)    (19 )     (24 )     (54 )     (44 )

Net earnings attributable to
noncontrolling interest (j)                   (1 )      (3 )     (18 )      (3 )

Reimbursement for maintenance capital
expenditures (i)                               5         3         9         7

Other adjustments for noncontrolling
interest                                      (1 )       8       (21 )       8

Other non-cash operating activities            3         3        20        10
                                          --------- --------- --------- --------
Distributable Cash Flow                      104        51       422       220

Pro forma adjustment for acquisition of
noncontrolling
  interest (k)                                 -        (1 )      36        (1 )
                                          --------- --------- --------- --------
Pro Forma Distributable Cash Flow          $ 104     $  50     $ 458     $ 219
                                          --------- --------- --------- --------


Reconciliation of EBITDA to Net Cash from
Operating
  Activities:

Net cash from operating activities         $ 109     $  27     $ 459     $ 166

Interest and financing costs, net             38        46       150       109

Changes in assets and liabilities             11       (11 )      14        (5 )

Income tax expense                             1         -         1         -

Net gain (loss) on asset disposals and
impairments                                   (1 )       -        (1 )       4

Other non-cash operating activities           (6 )      (2 )     (18 )      (8 )

Predecessor impact                             2         4        16        21
                                          --------- --------- --------- --------
EBITDA                                     $ 154     $  64     $ 621     $ 287
                                          --------- --------- --------- --------

_____________
(e)    Reflects acquisition costs included in general and administrative
expenses primarily related to the Rockies Natural Gas Business acquisition.
(f)    Several of our contracts contain minimum volume commitments that allow us
to charge the customer a deficiency payment if the customer's actual throughput
volumes are less than its minimum volume commitments for the applicable period.
In certain contracts, if a customer makes a deficiency payment, that customer
may be entitled to offset gathering fees or processing fees in one or more
subsequent periods to the extent that such customer's throughput volumes in
those periods exceed its minimum volume commitment. Depending on the specific
terms of the contract, revenue under these agreements may be classified as
deferred revenue and recognized once all contingencies or potential performance
obligations associated with these related volumes have either been satisfied
through the gathering or processing of future excess volumes of natural gas, or
are expected to expire or lapse through the passage of time pursuant to terms of
the applicable agreement. During December 2015 and 2014, we invoiced QEP Field
Services, LLC ("QEPFS") customers for deficiency payments. We did not recognize
$13 million and $10 million of revenue for 2015 and 2014, respectively, however,
we are entitled to the cash receipt from such billing. The timing and amount of
deficiency billings vary based on actual shortfall and terms under the
applicable agreements.
(g)   Includes costs from detailed inspection and maintenance programs on the
Northwest Products System, which improved the integrity of the Northwest
Products Pipeline. The purchase price of the Northwest Products System was
reduced to compensate the Partnership for assuming responsibilities to perform
this work.
(h)   Interest and financing costs, net exclude capitalized interest, $7 million
of reimbursed premiums from Tesoro during the year ended December 31, 2014 and
$16 million in fees for an alternative financing arrangement related to the
Rockies Natural Gas Business Acquisition during the three months and year ended
December 31, 2014.
(i)    Maintenance capital expenditures include expenditures required to ensure
the safety, reliability, integrity and regulatory compliance of our assets.
Maintenance capital expenditures, net included in the Distributable Cash Flow
calculation are presented net of Predecessors' amounts and the noncontrolling
interest portion of maintenance capital expenditures.
(j)    Excludes $2 million of undistributed QEPM earnings prior to the closing
of the merger of QEPM with TLLP for the year ended December 31, 2015, that
unitholders of QEPM were entitled to receive, but TLLP unitholders received as a
result of the merger.
(k)   Reflects the adjustment to include the noncontrolling interest in QEPM as
controlling interest based on the pro forma assumption that the Merger occurred
on December 2, 2014.


                              TESORO LOGISTICS LP
                        SELECTED OPERATING SEGMENT DATA
                                  (Unaudited)
      (In millions, except volumes, revenue per barrel, revenue per MMBtu)

                                    Three Months Ended          Years Ended
                                       December 31,            December 31,
                                  ----------------------- ----------------------
                                     2015        2014        2015        2014
                                  ----------- ----------- ----------- ----------
Gathering Segment

Revenues

Crude oil gathering pipeline
revenues                           $    35     $    24     $   123     $    66

Crude oil gathering trucking
revenues                                 9          16          46          58

Gas gathering revenues (l)              42          11         170          11
                                  ----------- ----------- ----------- ----------
Total Revenues                          86          51         339         135
                                  ----------- ----------- ----------- ----------
Costs and Expenses:

Operating and maintenance expenses      45          34         119          72

General and administrative
expenses                                 2           2          10           5

Depreciation and amortization
expenses                                17           6          67          11

Loss on asset disposals and
impairments                              1           -           1           -
                                  ----------- ----------- ----------- ----------
Total Costs and Expenses                65          42         197          88
                                  ----------- ----------- ----------- ----------
Gathering Segment Operating Income $    21     $     9     $   142     $    47
                                  ----------- ----------- ----------- ----------
Volumes

Crude oil gathering pipeline
throughput (bpd)                   205,268     150,051     187,836     123,355

Average crude oil gathering
pipeline revenue per barrel (m)    $  1.86     $  1.69     $  1.79     $  1.46

Crude oil gathering trucking
volume (bpd)                        28,200      54,896      38,461      49,339

Average crude oil gathering
trucking revenue per barrel (m)    $  3.27     $  3.22     $  3.25     $  3.23

Gas gathering throughput
(thousands of MMBtu/d)               1,102       1,046       1,077       1,046

Average gas gathering revenue per
MMbtu (m)                          $  0.42     $  0.41     $  0.43     $  0.41



_____________
(l)    Natural gas gathering revenues and volumes relate to the operations
acquired in the Rockies Natural Gas Business Acquisition.
(m)  Management uses average revenue per barrel, average revenue per MMBtu and
average keep-whole fee per gallon of NGLs to evaluate performance and compare
profitability to other companies in the industry. There are a variety of ways to
calculate these measures; other companies may calculate these in different ways.
We calculate average revenue per barrel as revenue divided by total throughput
(barrels). We calculate average revenue per MMBtu as revenue divided by total
volume (MMBtu). We calculate average keep-whole fee per gallon as revenue
divided by total volume (gallons). Investors and analysts use these financial
measures to help analyze and compare companies in the industry on the basis of
operating performance. These financial measures should not be considered as an
alternative to segment operating income, revenues and operating expenses or any
other measure of financial performance presented in accordance with 
U.S.
 GAAP.

                                    Three Months Ended          Years Ended
                                       December 31,            December 31,
                                  ----------------------- ----------------------
                                     2015        2014        2015        2014
                                  ----------- ----------- ----------- ----------
Processing Segment (n)

Revenues

NGL processing revenues            $    25     $     7     $    96     $     7

Fee-based processing revenues           26           6         107           6

Other processing revenues               22          10          75          10
                                  ----------- ----------- ----------- ----------
Total Revenues                          73          23         278          23
                                  ----------- ----------- ----------- ----------
Costs and Expenses:

Operating and maintenance expenses      34          12         125          12

General and administrative
expenses                                 -           1           4           1

Depreciation and amortization
expenses                                11           4          44           4
                                  ----------------------- ----------- ----------
Total Costs and Expenses                45          17         173          17
                                  ----------- ----------- ----------- ----------
Processing Segment Operating
Income                             $    28     $     6     $   105     $     6
                                  ----------- ----------- ----------- ----------
Volumes

NGL processing throughput (bpd)      7,824       6,532       7,594       6,532

Average keep-whole fee per barrel
of NGL (m)                         $ 35.00     $ 35.51     $ 34.46     $ 35.51

Fee-based processing throughput
(thousands of
  MMBtu/d)                             748         693         743         693

Average fee-based processing
revenue per MMBtu (m)              $  0.38     $  0.30     $  0.39     $  0.30





Terminalling and Transportation
Segment

Revenues

Terminalling revenues              $   102     $    89     $   377     $   333

Pipeline transportation revenues        31          27         118         109
                                  ----------- ----------- ----------- ----------
Total Revenues                         133         116         495         442
                                  ----------- ----------- ----------- ----------
Costs and Expenses:

Operating and maintenance expenses      41          51         167         181

General and administrative
expenses                                 8           7          34          29

Depreciation and amortization
expenses                                18          16          68          63

Gain on asset disposals and
impairments                              -           -           -          (4 )
                                  ----------- ----------- ----------- ----------
Total Costs and Expenses                67          74         269         269
                                  ----------- ----------- ----------- ----------
Terminalling and Transportation
Segment Operating
  Income                           $    66     $    42     $   226     $   173
                                  ----------- ----------- ----------- ----------
Volumes

Terminalling throughput (bpd) (o)  943,436     911,118     934,697     917,280

Average terminalling revenue per
barrel (m)(o)                      $  1.19     $  1.07     $  1.11     $  1.00

Pipeline transportation throughput
(bpd) (o)                          840,945     813,546     824,710     821,716

Average pipeline transportation
revenue per barrel (m)(o)          $  0.39     $  0.37     $  0.39     $  0.36



___________________
(n)    Processing volumes relate  to operations acquired  in the Rockies Natural
Gas  Business Acquisition on December 2, 2014. Per day calculations only reflect
the period of 2014 that TLLP owned the Rockies Natural Gas Business.
(o)    The Terminalling and Transportation  segment includes predecessor results
of  operations  and  volumes  related  to  the  West Coast Logistics Assets from
inception  through  June  30, 2014 for  the  terminals,  storage  tanks and rail
facilities, and through September 29, 2014 for the refined products pipeline.

                              TESORO LOGISTICS LP
                   RECONCILIATION TO AMOUNTS UNDER U.S. GAAP
                           (Unaudited) (In millions)

                                               Three Months
                                                   Ended          Years Ended
                                               December 31,       December 31,
                                             ----------------- -----------------
                                               2015     2014     2015      2014
                                             -------- -------- --------- -------
Reconciliation of Gathering Segment Operating
Income to
  Adjusted EBITDA:

Gathering segment operating income            $ 21     $  9     $ 142     $ 47

Depreciation and amortization expenses          17        6        67       11

Equity in earnings of unconsolidated
affiliates                                       1        1         7        1
                                             -------- -------- --------- -------
Gathering Segment EBITDA                        39       16       216       59

Billing of deficiency payments (f)               -       10         2       10
                                             -------- -------- --------- -------
Gathering Segment Adjusted EBITDA             $ 39     $ 26     $ 218     $ 69
                                             -------- -------- --------- -------



                                               Three Months
                                                   Ended          Years Ended
                                               December 31,       December 31,
                                             ----------------- -----------------
                                               2015     2014     2015      2014
                                             -------- -------- --------- -------
Reconciliation of Processing Segment
Operating Income to
  Adjusted EBITDA:

Processing segment operating income           $ 28     $  6     $ 105     $  6

Depreciation and amortization expenses          11        4        44        4
                                             -------- -------- --------- -------
Processing Segment EBITDA                       39       10       149       10

Billing of deficiency payments (f)               -        -        11        -
                                             -------- -------- --------- -------
Processing Segment Adjusted EBITDA            $ 39     $ 10     $ 160     $ 10
                                             -------- -------- --------- -------



                                              Three Months
                                                  Ended           Years Ended
                                              December 31,       December 31,
                                            ----------------- ------------------
                                              2015     2014     2015      2014
                                            -------- -------- --------- --------


Reconciliation of Terminalling and
Transportation
  Segment Operating Income to Adjusted
EBITDA:

Terminalling and Transportation segment
operating income                             $ 66     $ 42     $ 226     $ 173

Loss attributable to Predecessor                3        5        17        23

Depreciation and amortization expenses, net
of
  Predecessor expense                          18       16        67        61
                                            -------- -------- --------- --------
Terminalling and Transportation Segment
EBITDA                                         87       63       310       257

Gain on sale of Boise Terminal (c)              -        -         -        (5 )

Inspection and maintenance expenses
associated with the
  Northwest Products System (g)                 -        2         -         7
                                            -------- -------- --------- --------
Terminalling and Transportation Segment
Adjusted
  EBITDA                                     $ 87     $ 65     $ 310     $ 259
                                            -------- -------- --------- --------



                              TESORO LOGISTICS LP
                            SELECTED FINANCIAL DATA
                           (Unaudited) (In millions)

                             Three Months
                                Ended            Years Ended
                             December 31,       December 31,
                          ------------------ ------------------
                            2015     2014      2015      2014
                          -------- --------- --------- --------
Capital Expenditures (p)

Growth                     $ 43     $  83     $ 243     $ 200

Maintenance (i)              16        26        53        50
                          -------- --------- --------- --------
Total Capital Expenditures $ 59     $ 109     $ 296     $ 250
                          -------- --------- --------- --------



                                              Three Months
                                                 Ended            Years Ended
                                              December 31,       December 31,
                                           ------------------ ------------------
                                             2015     2014      2015      2014
                                           -------- --------- --------- --------
Capital Expenditures, Net of Reimbursements
(p)

Growth                                      $ 40     $  79     $ 224     $ 186

Maintenance (i)                               11        24        44        44
                                           -------- --------- --------- --------
Total Capital Expenditures                  $ 51     $ 103     $ 268     $ 230
                                           -------- --------- --------- --------

_____________
(p)    Total capital expenditures  include spending related  to the Predecessors
prior to each respective acquisition date. These expenditures were primarily for
maintenance capital projects and totaled $1 million and $3 million for the three
months  and year  ended December  31, 2015, respectively, and  $2 million and $6
million for the three months and year ended December 31, 2014, respectively.


                                           Three Months
                                               Ended          Years Ended
                                           December 31,       December 31,
                                         ----------------- -----------------
                                           2015     2014     2015      2014
                                         -------- -------- --------- -------
General and Administrative Expenses

Gathering                                 $  2     $  2     $  10     $  5

Processing                                   -        1         4        1

Terminalling and Transportation              8        7        34       29

Unallocated                                 11       25        54       39
                                         -------- -------- --------- -------
Total General and Administrative Expenses $ 21     $ 35     $ 102     $ 74
                                         -------- -------- --------- -------



                                              Three Months
                                                  Ended           Years Ended
                                              December 31,       December 31,
                                            ----------------- ------------------
                                              2015     2014     2015      2014
                                            -------- -------- --------- --------
Distributions to the Partners of TLLP

Limited partner's distributions on common
units (q)                                    $ 73     $ 53     $ 259     $ 171

General partner's distributions                 2        2         6         5

General partner's incentive distribution
rights                                         22       15        69        41
                                            -------- -------- --------- --------
Total Distributions to be Paid               $ 97     $ 70     $ 334     $ 217
                                            -------- -------- --------- --------


Distribution Coverage Ratio (r)               1.07x    0.73x     1.26x     1.01x

Pro Forma Distribution Coverage Ratio (r)     1.07x    0.71x     1.37x     1.01x



___________________
(q)    Includes distributions on subordinated units  for the year ended December
31, 2014.
(r)     The Distribution Coverage Ratio is calculated as Distributable Cash Flow
divided  by total distributions to  be paid for the  respective periods. The Pro
Forma  Distribution Coverage Ratio is calculated as Pro Forma Distributable Cash
Flow divided by total distributions to be paid for the respective periods.


                              TESORO LOGISTICS LP
                               BALANCE SHEET DATA
                           (Unaudited) (In millions)

                                                Years Ended December 31,
                                             ------------------------------
                                                  2015             2014
                                             --------------   -------------
 Cash and cash equivalents                     $   16           $   19

 Debt, net of unamortized issuance costs (s)    2,844            2,544



_____________
(s)     Total debt, net of unamortized issuance costs, includes $305 million and
$260 million of borrowings outstanding under our revolving credit facility as of
December 31,  2015 and December 31, 2014, respectively.  We have retrospectively
adjusted  the  December 31,  2014 balance  to  be  reflected  net of unamortized
issuance costs to conform to current year presentation.


                              TESORO LOGISTICS LP
              RECONCILIATION OF EBITDA TO AMOUNTS UNDER U.S. GAAP
                           (Unaudited) (In millions)

                                            Rockies Natural Gas Business 2015
                                               EBITDA attributable to TLLP
                                         ---------------------------------------
Reconciliation of Operating Income to
EBITDA and Adjusted EBITDA:

Operating income                          $ 179

Depreciation and amortization expenses       93
                                         ---------------------------------------
EBITDA                                      272

Billing of deficiency payments (f)           13
                                         ---------------------------------------
Adjusted EBITDA                           $ 285
                                         ---------------------------------------



                                            Rockies Natural Gas Business 2015
                                           Projected Annual EBITDA attributable
                                                         to TLLP
                                         ---------------------------------------
Reconciliation of Projected Net Earnings
to Projected Annual EBITDA:

Projected net earnings                    $  93

Depreciation and amortization expenses       96

Interest and financing costs, net            86
                                         ---------------------------------------
Projected Annual EBITDA                   $ 275
                                         ---------------------------------------





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(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Tesoro Logistics LP via GlobeNewswire
[HUG#1982910]

 
  

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