Tesoro (TSO) and Tesoro Logistics (TLLP) have reached an agreement for TLLP to acquire a portion of the Carson logistics assets from Tesoro for an expected transaction value of approximately $640M. Closing of the logistics transaction is expected to occur concurrent with the BP transaction close. These assets, with expected annual logistics EBITDA of between $60M-$65M, include six marketing and storage terminal facilities with a total combined throughput capacity of about 225 mbpd and approximately 6.4M barrels of total storage capacity including 4.5M barrels which is dedicated commercial storage capacity. The transaction price is expected to include cash of $544M and Tesoro Logistics equity valued at $96M. The company expects to enter into terminalling and throughput agreements with minimum volume commitments, consistent with prior transactions. The remaining Carson logistics assets, consisting of dedicated storage capacity, pipelines and marine terminals, are expected to be offered to TLLP within twelve months post-closing, and have an expected market value of between $450M-$550M.
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