November 20, 2013 [Business Journal] - Tesoro Logistics LP will spend $650 million to buy most of the remaining Los Angeles logistics assets owned by affiliated refining company Tesoro Corp.
The assets — which include pipelines and oil-storage terminals — are currently held by Tesoro Corp.’s Tesoro Refining & Marketing Company LLC subsidiary. Both Tesoro Corp. and Tesoro Logistics are headquartered in San Antonio.
“Our expectation is that the acquisition of these strategically important assets will be immediately accretive to unitholder cash distributions and will provide opportunities for future optimization and organic growth,” Tesoro Logistics Chairman and CEO Greg Goff says.
The Los Angeles assets include two marine terminals, 100 miles of active pipelines, dedicated crude and refined-products storage terminals and a petroleum-coke handling and storage facility.
The acquired assets will contribute pre-tax earnings of $60 million to $65 million in their first full year of operation and annual pre-tax earnings of $65 million to $75 million each year after, Tesoro Logistics officials say.
