In addition to strong refining performance, the company’s logistics segment posted significant operating income increase. This segment saw contribution from the Rockies natural gas business, execution of organic growth plans and the additional crude oil volumes from the Connolly Gathering system in North Dakota.

While upstream companies are slashing capital spending, Tesoro, backed by strong financial results, has raised its budget for 2015.

“We reported very strong results for the third quarter, with an all-time record for EBITDA and earnings per share, driven by a favorable market environment and strong performance across all business segments,” said Greg Goff, the company’s CEO.

“We returned $287 million to shareholders in the quarter and also paid down $398 million of secured debt. In addition, we continue to leverage our strong cash position and reinvest capital towards our growth initiatives and business improvement plans,” he added.

Tesoro reported third-quarter net earnings of $759 million, or $6.13 per diluted share compared to net earnings of $396 million, or $3.05 per diluted share for the third quarter of 2014.

Results in the third quarter include an inventory charge due to the lower of cost or market valuation of $0.41 per diluted share and a gain of $0.06 per diluted share related to an insurance settlement.

Excluding these adjustments, net earnings from continuing operations were $802 million, or $6.48 per diluted share. Adjusted EBITDA for the third quarter was $1.6 billion compared to $858 million last year.

Total refinery throughput for the quarter was 861,000 b/d, or 101% utilization. Manufacturing costs in the third quarter of 2015 decreased $0.58/bbl over last year to $4.84/bbl, primarily attributable to lower energy prices.

For the third quarter 2015, the company recorded segment operating income of $1.4 billion compared to segment operating income of $777 million in the third quarter of 2014.

The refining segment’s operating income was $895 million for the quarter, compared to $536 million in the third quarter of 2014.

The marketing segment’s operating income was $379 million, up from $180 million in the third quarter of last year. The improvement was due to higher volumes driven by growth in consumer demand and a favorable market environment.

Capital spending for the third quarter 2015 was $167 million for Tesoro Corporation and $92 million for TLLP. The company estimates full year 2015 capital spending, excluding TLLP, of $745 million, compared with $550 million for 2014.

TLLP capital spending in 2015 is estimated to be approximately $345 million versus $200 million in 2014.

Turnaround expenditures for the third quarter were $66 million. For the full year 2015, the company expects to spend $280 million for turnarounds and $50 million for retail branding.