Tesoro Divests Remaining Alaska Assets To Tesoro Logistics
Zacks Investment Research | Sep 18, 2016 10:07PM ET
Independent refiner Tesoro Corporation (NYSE:TSO) recently announced that its master limited partnership, Tesoro Logistics LP (NYSE:TLLP) , has completed the acquisition of the remaining Alaska storage and terminalling properties of Tesoro. The transaction was valued at roughly $444 million, of which $400 million was paid in cash.
The transaction took place in two stages. On Sep 16, Tesoro Logistics acquired terminal assets comprising refined product terminals in Anchorage and Fairbanks, thereby completing the second stage. These assets have a combined capacity to store more than 600,000 barrels. For this, Tesoro received $160 million of cash and $18 million of common and general partner units of Tesoro Logistics. Tesoro received 358,712 units in the form of common units and 20,440 units in the form of general partner units at a price of $47.05 each.
In the first stage, which closed on Jul 1, 2016, Tesoro Logistics acquired storage assets including crude oil, feedstock and refined product storage tanks in Kenai, AK. The combined capacity of the tanks – having connectivity with Kenai Refinery of Tesoro along with Tesoro Alaska Pipeline and Nikiski Products Terminal of Tesoro Logistics – was 3.5 million barrels. Tesoro had received $239 million in cash and $27 million in common and general partner units of Tesoro Logistics.
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