Profile: Tesoro Corp (TSO.N)

TSO.N on New York Stock Exchange

64.89USD
22 Oct 2014
Price Change (% chg)

$-2.16 (-3.22%)
Prev Close
$67.05
Open
$67.09
Day's High
$68.26
Day's Low
$64.80
Volume
564,013
Avg. Vol
550,510
52-wk High
$68.26
52-wk Low
$46.41

Search Stocks

Tesoro Corporation (Tesoro), incorporated on December 26, 1968, is an independent petroleum refiners and marketers in the United States. The Company’s subsidiaries, operating through two business segments: manufacture and sell transportation fuels. Its refining operating segment (refining), which operates seven refineries in the western United States, refines crude oil and other feedstocks into transportation fuels, such as gasoline, gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke and asphalt. This operating segment sells refined products in wholesale and bulk markets to a range of customers within the operations area. Its retail operating segment (retail) sells transportation fuels and convenience products in 18 states through a network of 1,175 retail stations, under the Tesoro, Shell and USA Gasoline brands. In September 2013, the Company announced that it has completed the sale of all of its interests in Tesoro Hawaii, LLC to Hawaii Pacific Energy, LLC. In December 2013, Tesoro Corp closed the acquisition of the majority of the remaining Los Angeles logistics assets.

Refining

The Company owns and operates seven petroleum refineries located in the western United States and sells transportation fuels to a range of customers. Its refineries produce a transportation fuels which it sells, and purchases the remainder from other refiners and suppliers. As of December 31, 2011, the Company’s seven refineries had a combined crude oil capacity of 665 thousand barrels per day (Mbpd). It purchases crude oil and other feedstocks from both domestic and foreign sources either through term agreements with renewal provisions or in the spot market. Its refineries process both heavy and light crude oils. It receives crude oils and ship refined products through owned and third-party pipelines. During the year ended December 31, 2011, it owned and operated over 200 miles of crude oil and product pipelines, located primarily in Alaska and Hawaii. It operates a trucking business at three of its refineries to transport crude oil to the refinery or refined products to its retail outlets and other customers. As of December 31, 2011, the Company operated nine refined products terminals at its refineries and other locations in California, Washington, Alaska amd Hawaii. It also distributes products through third-party terminals and truck racks in its market areas and through purchases and exchange arrangements with other refining and marketing companies.

The Company’s 166 million barrels per day Martinez refinery is located in Martinez, California. It sources crude oil for its Martinez refinery from California, Alaska and foreign locations. The Martinez refinery also processes intermediate feedstocks. The refinery produces transportation fuels, including gasoline and diesel fuel. The refinery's major processing units include crude distillation, vacuum distillation, delayed coking, hydrocracking, naphtha reforming, hydrotreating, fluid catalytic cracking and alkylation units. The refinery produces a high proportion of transportation fuels, including cleaner-burning California Air Resources Board (CARB) gasoline and CARB diesel fuel, as well as conventional gasoline and diesel fuel. The refinery also produces heavy fuel oils, liquefied petroleum gas and petroleum coke.

The Company’s 97 million barrels per day Los Angeles refinery is located in Wilmington, California. It sources crude oil for its Los Angeles refinery from California, as well as foreign locations. The Los Angeles refinery also processes intermediate feedstocks. The refinery's major processing units include crude distillation, vacuum distillation, delayed coking, hydrocracking, naphtha reforming, hydrotreating, fluid catalytic cracking, butane isomerization and alkylation units. The refinery also produces heavy fuel oils, liquefied petroleum gas and petroleum coke. Its Los Angeles refinery leases a marine terminal at the Port of Long Beach, which enables it to receive crude oil and ship refined products. It operates a refined products terminal at the Los Angeles refinery and distributes refined products through third-party terminals in its market areas and through purchases and exchange arrangements with other refining and marketing companies. It also leases refined product storage tanks at third-party terminals in Southern California.

The Company’s 120 million barrels per day Anacortes, Washington refinery is located in northwest Washington. It sources its Washington refinery’s crude oil from Alaska, North Dakota, Canada and other foreign locations. The Washington refinery also processes intermediate feedstocks, including heavy vacuum gas oil, produced by some of its other refineries and purchased in the spot-market from third-parties. The refinery produces transportation fuels, such as gasoline, including gasoline and components for gasoline, diesel fuel and jet fuel. The refinery also produces heavy fuel oils, liquefied petroleum gas and asphalt. Its Washington refinery receives Canadian crude oil through a third-party pipeline originating in Edmonton, Alberta, Canada.

The Company receives other crude oils through its Washington refinery’s marine terminal and its rail facility. The refinery ships transportation fuels, including gasoline, jet fuel and diesel fuel through a third-party pipeline system, which serves western Washington and Portland, Oregon. It also delivers refined products through its marine terminal through ships and barges to West Coast and Pacific Rim markets. It operates a distillate terminal at its Washington refinery and operates refined products terminals at Port Angeles and Vancouver, Washington, all of which are supplied primarily by its refinery. It also distributes refined products through third-party terminals in its market areas, and through purchases and exchange arrangements with other refining and marketing companies.

The Company’s 72 million barrels per day Alaska refinery is located on the Cook Inlet. Its Alaska refinery processes crude oil from Alaska and foreign locations. The refinery produces transportation fuels, including gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heating oil, heavy fuel oils, liquefied petroleum gas and asphalt. It receives crude oil into its Kenai marine terminal by tanker and through its owned and operated crude oil pipeline. It also owns and operates a common-carrier refined products pipeline that runs from the Alaska refinery to its two terminal facilities in Anchorage and to the Anchorage International Airport. It also delivers refined products through its Kenai marine terminal and from the Port of Anchorage marine facility to customers through ships and barges. It operates refined products terminals at Nikiski and Anchorage, which are supplied by its Alaska refinery. It also distributes refined products through a third-party terminal which is supplied through an exchange arrangement with another refining company.

The Company’s 94 million barrels per day Hawaii refinery is located in Kapolei. It supplies the refinery with crude oil from Southeast Asia, the Middle East, Russia and other foreign sources. The refinery produces gasoline and gasoline blendstocks, jet fuel, diesel fuel, heavy fuel oils, liquefied petroleum gas and asphalt. It transports crude oil to Hawaii in tankers, which discharge through its single-point mooring, approximately two miles offshore from the refinery. It owns and operates a refined products pipeline from its Hawaii refinery to its Sand Island terminal and third-party terminals on the island of Oahu. It operates refined products terminals on Maui and on the Big Island of Hawaii and operates a diesel terminal on Oahu. It also has an aviation fuel terminal in Kauai, and distributes refined products from its refinery to customers through third-party terminals in its market areas.

The Company’s 58 million barrels per day North Dakota refinery is located on the Missouri River. It supplies the refinery primarily with crude oil produced from the Williston Basin gathered and transported by its crude oil pipeline system. The refinery produces transportation fuels, including gasoline, diesel fuel and jet fuel, as well as other products, including heavy fuel oils and liquefied petroleum gas. The Company distributes its refinery’s production through a third-party refined products pipeline system, which serves areas from Mandan, North Dakota to Minneapolis, Minnesota.

The Company’s 58 million barrels per day Utah refinery is located in Salt Lake City. Its Utah refinery processes crude oils primarily from Utah, Colorado, Wyoming and Canada. The refinery produces transportation fuels, including gasoline, diesel fuel and jet fuel, as well as other products, including heavy fuel oils and liquefied petroleum gas. Its Utah refinery receives crude oil through third-party pipelines from oil fields in Utah, Colorado, Wyoming and Canada. It operates a refined products terminal adjacent to its refinery. Refined products received at this terminal are sold locally and regionally by both it and third-parties through its truck loading rack. It also owns and operates refined products terminals in Boise and Burley, Idaho.

The Company sells refined products, including gasoline and gasoline blendstocks, jet fuel, diesel fuel, heavy fuel oils and residual products in both the bulk and wholesale markets. As of December 31, 2011, it sold over 300 thousand barrels per day in the wholesale market primarily through independent unbranded distributors that sell refined products purchased from it through more than 76 owned and third-party terminals. Its bulk sales are primarily to independent unbranded distributors, other refining and marketing companies, utilities, railroads, airlines and marine and industrial end-users. These products are distributed by pipelines, ships, barges, railcars and trucks. It sells gasoline and gasoline blendstocks in both the bulk and wholesale markets in the western United States.

The Company sells, at wholesale, to unbranded distributors and high-volume retailers, and it distributes refined product through owned and third-party terminals. It supplies jet fuel to passenger and cargo airlines at airports in Alaska, Hawaii, California, Washington, Utah and other western states. It also supplies jet fuel to the United States military from its refineries in Alaska, Hawaii and North Dakota. It sells diesel fuel on a wholesale basis for marine, transportation, industrial and agricultural use. It sells lesser amounts to end-users through marine terminals and for power generation in Hawaii and Washington.

The Company sells heavy fuel oils to other refiners, third-party resellers, electric power producers and marine and industrial end-users. Its refineries supply substantially all of the marine fuels, which it sells through facilities at Port Angeles, Seattle, and Tacoma, Washington, and Portland, Oregon, and through its refinery terminals in Washington, Alaska and Hawaii. Its Martinez and Los Angeles refineries produce petroleum coke, which it sells to industrial end-users. Tesoro is also a supplier of liquid asphalt for paving and construction companies in Washington, Alaska and Hawaii.

Retail

The Company sells gasoline and diesel fuel in the western United States through the Company-operated retail stations and agreements with third-party branded dealers and distributors (jobber/dealers). Its retail network provides a committed outlet for a portion of the transportation fuels produced by its refineries. During 2011, it operated retail stations including convenience stores, which sells a range of merchandise items. As of December 31, 2011, its retail segment included a network of 1,175 branded retail stations under the Tesoro, Shell, USA Gasoline brands.

Company Address

Tesoro Corp

19100 Ridgewood Pkwy
SAN ANTONIO   TX   78259-1828
P: +1210.6266000
F: +1302.6365454

Search Stocks