Canaccord Genuity Morning Coffee on Tesoro (TSO): California, Here I Come...
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Price: $99.53 --0%
Rating Summary:
17 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
17 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Tesoro (NYSE: TSO): California, here I come.
Shares of Tesoro spiked after the oil refining company said it will acquire BP’s (NYSE: BP) California refinery and related assets for about $2.5 billion. Under the agreement, which is subject to regulatory and other approvals, Tesoro will acquire the 266,000 barrel-a-day refinery near Los Angeles as well as the associated logistics network of pipelines and storage terminals and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada. The Carson refinery shares a fence line with Tesoro's 97,000 barrel-a-day Wilmington refinery, allowing Tesoro to combine the two into one facility and realize about $250 million in cost savings by 2015. The deal is expected to close before mid-2013 and doubles Tesoro's refining operations in California, making the San Antonio-based company the second largest refiner in the state after Chevron (NYSE: CVX). For BP, the deal allows it to focus operations and investments exclusively on its three northern U.S. refineries, which are crude feedstock advantaged, and their large and important marketing businesses. It brings the total value of the divestments that BP has agreed since the beginning of 2010 to $26.5 billion. This is part of its previously announced program to divest $38 billion of assets by the end of 2013.
Shares of Tesoro spiked after the oil refining company said it will acquire BP’s (NYSE: BP) California refinery and related assets for about $2.5 billion. Under the agreement, which is subject to regulatory and other approvals, Tesoro will acquire the 266,000 barrel-a-day refinery near Los Angeles as well as the associated logistics network of pipelines and storage terminals and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada. The Carson refinery shares a fence line with Tesoro's 97,000 barrel-a-day Wilmington refinery, allowing Tesoro to combine the two into one facility and realize about $250 million in cost savings by 2015. The deal is expected to close before mid-2013 and doubles Tesoro's refining operations in California, making the San Antonio-based company the second largest refiner in the state after Chevron (NYSE: CVX). For BP, the deal allows it to focus operations and investments exclusively on its three northern U.S. refineries, which are crude feedstock advantaged, and their large and important marketing businesses. It brings the total value of the divestments that BP has agreed since the beginning of 2010 to $26.5 billion. This is part of its previously announced program to divest $38 billion of assets by the end of 2013.
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