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Tesoro acquires Dakota Prairie Refining business in North Dakota

June 28, 2016 8:02 AM EDT

SAN ANTONIO, Texas, June 28, 2016 - Tesoro Corporation (NYSE: TSO), through its affiliate Tesoro Refining & Marketing Company LLC, has acquired Dakota Prairie Refining, LLC (DPR), which owns a  refinery near Dickinson, North Dakota, with strategic access to advantaged Bakken crude oil and is located just 100 miles west of the Tesoro Mandan Refinery.

DPR's refinery has a crude oil capacity of 20 thousand barrels per day and produces ultra-low sulfur diesel, naphtha and resid. Tesoro plans to continue to market the ultra-low sulfur diesel to local customers and utilize the naphtha and resid in its integrated value chain system.

In consideration for this acquisition, Tesoro is ensuring the continued servicing of DPR's $66 million term loan debt and contributing approximately $10 million toward working capital.

"We have successfully grown our business in North Dakota, and created substantial value for our shareholders and local communities," said Greg Goff, Chairman, President and Chief Executive Officer of Tesoro Corporation. "This acquisition presents new opportunities for continued growth. We have already identified plans to drive substantial improvements, and we are prepared to execute on these plans in 2016. This includes system-wide commercial and feedstock optimization, increased efficiencies in distribution and reduced transportation and refining costs. As a result, we expect to generate more than $20 million in annual operating income from this business - even if the current economic conditions continue."

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 (NYSE: 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 the expected effect on our operating income, the strategic advantage of access to Bakken crude oil, our plans to market or use the refinery's products, our opportunities for continued growth and our ability to implement improvements, including reducing costs, improving efficiencies and optimizing our feedstocks. 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.

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TESORO CONTACTS:

Investors:

Sam Ramraj, Vice President, Investor Relations, (210) 626-4757

Media:

Tesoro Media Relations, [email protected], (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

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