Tesoro's (NYSE:TSO) Q2 earnings missed Wall Street expectations but a 2013 expansion of California operations and improved synergies helped produce a 9% Y/Y increase in earnings from continuing operations.
Q2 revenues rose 25% Y/Y to $11.1B, well above consensus, but cost of sales widened to $9.87B from $7.91B.
Estimates FY 2014 capital spending, excluding Tesoro Logisitcs (NYSE:TLLP), of $625M, a 7% reduction from prior guidance; TLLP capex is now seen at ~$200M, up 25% reflecting expected spending related to the construction of the Connolly Gathering System and the Anacortes truck rack.
Gross refining margin fell to $13.35/bbl from $14.75 during the prior-year period.
Hikes its quarterly dividend to $0.30 from $0.25 and announces a $1B stock repurchase program.