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Tesoro Logistics (TLLP) agrees to acquire Chevron's (CVX) Northwest Products pipeline system for...

Tesoro Logistics (TLLP) agrees to acquire Chevron's (CVX) Northwest Products pipeline system for $400M. The pipeline receives product from five refineries and one pipeline in the Salt Lake City, Utah, area and is the primary transportation option to several other northwest U.S. areas. System delivery volumes averaged ~84K bbl/day in 2011.
Comments (2)
  • Dividend Garden
    , contributor
    Comments (448) | Send Message
     
    The article didn't mention why $CVX was selling the pipeline. It seems to be a quality asset to own. It doesn't require a lot of capital reinvestment, but it keeps supplying cash back to company HQ. This specific pipeline even supplies jet fuel to an airport. This pipeline is a virtual monopoly, so I'm wondering why CVX is selling it and how the sale fits in to Chevron's overall strategy.
    11 Dec 2012, 05:53 PM Reply Like
  • Sunshine123
    , contributor
    Comments (691) | Send Message
     
    I totally agree with Dividend Garden. Chevron already has 22 billion
    dollars. So it is puzzling that they sold this pipeline.
    12 Dec 2012, 02:29 AM Reply Like
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