U.S. Markets open in 5 hrs 45 mins

Tesoro Closes Acquisition of Marketing and Logistics Assets in Alaska

SAN ANTONIO, Texas, June 20, 2016 - Tesoro Corporation (TSO), through its affiliates Tesoro Alaska Company LLC and Tesoro Alaska Terminals LLC, has closed the previously announced acquisition of Flint Hills Resources` (FHR) wholesale marketing and logistics assets in Anchorage and Fairbanks, Alaska.

Consistent with the details of the transaction announced late in 2015, the acquisition includes:

  • all FHR wholesale fuel marketing contracts in Alaska;

  • an Anchorage terminal with 580,000 barrels of total in-service storage capacity, a truck rack, and rail loading capability;

  • a Fairbanks airport terminal that includes 22,500 barrels of in-service jet fuel storage and truck rack; and

  • a multi-year terminalling agreement at FHR`s North Pole terminal, which will provide efficient rail offload capabilities and provide Tesoro access to Alaska`s Interior.

The former FHR North Pole refinery is not part of this acquisition.

"This acquisition enhances our capabilities to efficiently and reliably serve our customers in the state of Alaska," said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation.

The rail loading capabilities gained through this acquisition improves Tesoro`s ability to serve customers in the Alaska interior from Anchorage. Tesoro plans to offer these assets to the master limited partnership, Tesoro Logistics LP, in the near future.

Tesoro has agreed with the State of Alaska Attorney General to offer for divestment approximately 25 percent of its existing Tesoro Logistics Anchorage product terminal capacity (approximately 830,000 barrels in total), in order to complete the current FHR acquisition in a timely manner.

About Tesoro

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 over 875,000 barrels per day and ownership in a logistics business, which includes a 36% interest in Tesoro Logistics LP (TLLP) and ownership of its general partner. Tesoro`s retail-marketing system includes over 2,400 retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA Gasoline(TM), Rebel(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 enhancements to our ability to serve customers in Alaska, including its interior, as well as plans to offer the assets to Tesoro`s master limited partnership in the near future. 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, media@tsocorp.com, (210) 626-7702

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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: Tesoro Corporation via GlobeNewswire