Tesoro's (TSO +9.2%
) $2.5B purchase
's California refinery looks cheap
: at ~15% of its replacement value vs. the industry norm of 25%-30% after factoring in plans to sell certain assets in the deal to its MLP (TLLP
), a consultant tells Bloomberg. Analysts say refiners like TSO have more upside
given the discount available to buyers of U.S. crude, which still trades well below Brent crude.