January 3, 2018 - 8:00 AM EST
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Andeavor Further Enhances Permian Basin Position Through Acquisition of Rangeland Energy II, LLC

SAN ANTONIO, TEXAS - January 3, 2018 - Andeavor (NYSE: ANDV) today announced that it has agreed to acquire 100% of the equity of Rangeland Energy II, LLC ("Rangeland"). Rangeland owns and operates assets in the Delaware and Midland Basins, including a recently-constructed crude oil pipeline, three crude oil storage terminals and a frac sand storage and truck loading facility.

Andeavor plans to integrate the acquired 110-mile crude oil pipeline (with ultimate throughput capacity of 145,000 barrels per day) and crude oil storage terminals with its nearby Conan Crude Oil Gathering System, currently under construction. Once fully integrated, the combination of the two systems will provide producers access to multiple markets by connecting to existing takeaway pipeline systems. The combined system also supports Andeavor's development of additional gathering systems in the area, as well as enhancing commercial opportunities by providing direct access to the Midland market hub.

Andeavor expects the purchase price multiple to be approximately nine times expected 2018 EBITDA and approximately six times expected 2019 EBITDA, including synergies. Andeavor expects to drop down the pipeline assets to Andeavor Logistics, LP (NYSE: ANDX) at a later date. The acquisition, which is subject to customary closing conditions including regulatory approval, is anticipated to close early in the first quarter of 2018.

About Andeavor
Andeavor is a premier, highly integrated marketing, logistics and refining company. Andeavor's retail-marketing system includes more than 3,200 stores marketed under multiple well-known fuel brands, including ARCO®, SUPERAMERICA®, Shell®, Exxon®, Mobil®, Tesoro®, USA Gasoline(TM) and Giant®. It also has ownership in Andeavor Logistics LP (NYSE: ANDX) and its non-economic general partner. Andeavor operates 10 refineries with a combined capacity of approximately 1.2 million barrels per day in the mid-continent and western United States.

About Andeavor Logistics LP
Andeavor Logistics LP is a leading full-service logistics company operating primarily in the western and mid-continent regions of the United States. Andeavor Logistics owns and operates a network of crude oil, refined products and natural gas pipelines. Andeavor Logistics also owns and operates crude oil and refined products truck terminals, marine terminals and dedicated storage facilities. In addition, Andeavor Logistics owns and operates natural gas processing and fractionation complexes. Andeavor Logistics is a fee-based, growth oriented Delaware limited partnership formed by Andeavor.

Forward Looking Statements
This release contains "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, including without limitation statements concerning: our operational, financial and growth strategies, our ability to successfully effect those strategies and the expected results thereof; expectations regarding the pending Rangeland acquisition, including the quality, capacity and capabilities of the assets to be acquired, the timing of the closing and the expected benefits and opportunities resulting from the acquisition; our plans to integrate the acquired crude oil pipeline assets with the Conan Crude Oil Gathering System, and the expected benefits therefrom; expected 2018 and 2019 EBITDA; and our plans to drop down the pipeline assets to Andeavor Logistics. 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 other public filings and press releases, available at www.andeavor.com.  We undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.

Contact:
Andeavor Investors:
Brad Troutman, Vice President, Investor Relations, (210) 626-4757

Andeavor Logistics Investors:
Andrew Woodward, Sr. Director, Finance and Investor Relations, (210) 626-7202

Media:
Andeavor Media Relations, [email protected], (210) 626-7702





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Andeavor via Globenewswire


Source: Thomson Reuters ONE (January 3, 2018 - 8:00 AM EST)

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