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Tesoro Corporation (TSO)

  • Dec. 3, 2014, 3:15 PM
    • U.S. oil refiners are processing record amounts of crude for this time of year, FT reports, taking advantage of falling oil prices and a flood of supply from shale drillers.
    • Refiners’ appetite has kept the price of high-quality light U.S. crude closely in line with international prices, defying warnings that a glut would force deep discounts: “The bottom line remains that we haven’t seen an oversupply of light crude,” Marathon Petroleum (MPC +1.5%) says.
    • Whether U.S. refineries succeed in absorbing the rising oil tide is up for speculation, but the refiners' own investment plans suggest they have the capacity to handle rising volumes; Valero (VLO +1.4%), for example, plans to add crude units in Houston and Corpus Christi designed to process oil from the nearby Eagle Ford shale.
    • Refiners are by far the dominant customers for crude, so the amount purchased by U.S. refiners will be an important guide for world oil markets.
    • Also: TSO +0.1%, ALJ +0.5%, PSX +1.6%, WNR +1.2%, HFC +0.4%, CVI +0.8%, PBF +1.8%.
    | Dec. 3, 2014, 3:15 PM | 12 Comments
  • Dec. 3, 2014, 10:48 AM
    • QEP Resources (QEP +4.3%) moves sharply higher after saying it completed the $2.5B sale of its natural gas gathering and processing business, including 2K miles of pipelines and four processing complexes, to Tesoro Logistics (TLLP +3.8%).
    • QEP says it has now repaid a $600M term loan and all of its debt under its revolving credit line, and has expanded its credit line to $1.8B.
    • Adding $2.5B to the balance sheet could allow QEP to boost dividends five-fold and still maintain enough cash to make both acquisitions and capex as needed to maintain market share, 24/7's Paul Ausick writes.
    | Dec. 3, 2014, 10:48 AM | Comment!
  • Nov. 28, 2014, 7:48 AM
    • The oil market will need to balance via slower U.S. shale growth and OPEC cuts at some later date (their next meeting is on June 5), says Goldman's Brian Singer, maintaining his team's WTI oil price outlook of $70-$75 per barrel for next year.
    • Among the energy sub-sectors, refiners and pipelines continue as favorites, and five of Goldman's eleven energy and utilities stocks on the Americas Conviction Buy list are from midstream/refining: KMI, MWE, PAGP, TRGP, TSO (all are lower premarket on oil's tumble).
    • Not buyers of oil services and E&P names, Goldman nevertheless does have favorites in these areas: CRR, BAS, RIG.
    | Nov. 28, 2014, 7:48 AM | 20 Comments
  • Nov. 21, 2014, 6:45 PM
    | Nov. 21, 2014, 6:45 PM | 46 Comments
  • Nov. 21, 2014, 10:28 AM
    | Nov. 21, 2014, 10:28 AM | 37 Comments
  • Nov. 18, 2014, 3:31 PM
    • Goldman Sachs analyst Neil Mehta is optimistic about oil refiner stocks, resuming the group at Attractive, adding Tesoro (NYSE:TSO) to the firm's conviction list and awarding Buy ratings to Marathon Petroleum (NYSE:MPC), Phillips 66 (NYSE:PSX) and Delek US (NYSE:DK).
    • Metha believes refiners are one of the few energy sectors that can grow cash flow in a declining crude price environment, given industry economics are driven more by crude spreads than the directional oil price; he sees an average upside of 25% for refiners during the next six months.
    • Despite the overall sector optimism, Mehta thinks investors should sell CVR Energy (NYSE:CVI) and Alon USA Energy (NYSE:ALJ), which have more exposure to the Permian Basin, where the difference in price vs. the WTI benchmark should get smaller.
    | Nov. 18, 2014, 3:31 PM | 3 Comments
  • Nov. 12, 2014, 12:19 PM
    • Refiners have outperformed while most energy peers have struggled lately, and the Cowen energy analyst team is keeping a positive view on the refining sector due to solid underlying earnings potential and the developing theme of logistics growth.
    • Cowen likes Tesoro (NYSE:TSO) for the possibility for meaningful EBITDA growth driven by the Carson refinery acquired earlier this year and eventually through TSO’s Port of Vancouver crude logistics project, and sees Valero (NYSE:VLO) as well positioned to benefit from the ongoing infrastructure debottlenecking of inland crude oil supply in 2014 and beyond.
    • The firm also sees 30%-40% stock price upside for Outperform-rated Delek US Holdings (NYSE:DK), Marathon Petroleum (NYSE:MPC), Western Refining (NYSE:WNR) and PBF Energy (NYSE:PBF).
    | Nov. 12, 2014, 12:19 PM | 1 Comment
  • Nov. 7, 2014, 2:58 AM
    • Despite a confirmation from both Venezuela's president and finance minister this past month saying that Citgo will not sell its U.S. refining unit, potential buyers have recently visited its refinery in Illinois and have shown interest in its Texas unit, Reuters reports.
    • It is unclear if Citgo's owner, Venezuelan national oil company PDVSA, will go ahead with a sale, but Lazard, the investment bank hired by Citgo to carry out the sale, is still marketing the refinery.
    • Potential bidders include, Reliance Industries (OTC:RLNIY), PBF Energy (NYSE:PBF), Tesoro (NYSE:TSO), Marathon Petroleum (NYSE:MPC), Valero Energy (NYSE:VLO) Phillips 66 (NYSE:PSX), Koch Industries and Chevron (NYSE:CVX).
    | Nov. 7, 2014, 2:58 AM | Comment!
  • Nov. 5, 2014, 3:58 PM
    • Top western U.S. refiner Tesoro (TSO -0.7%) is considering reviving a long-shuttered reformer at its northern California refinery to help meet increasing global demand for petrochemicals, Bloomberg reports.
    • The Golden Eagle plant near Martinez, Calif., reportedly has been cleaning out the reformer, as TSO weighs bringing the unit back into service to supply feedstock to chemical plants in markets including Asia.
    • TSO is considering the return of the Golden Eagle reformer at the same time it is developing a $400M chemical plant at the Anacortes refinery in Washington state to produce mixed xylene for export to Asia.
    | Nov. 5, 2014, 3:58 PM | Comment!
  • Oct. 31, 2014, 5:56 PM
    • United Steelworkers leaders, representing employees at two-thirds of U.S. refineries, are "looking for a fight" as they prepare to negotiate the next three-year contract with refiners, says the USW international VP who manages the union’s oil sector.
    • The USW is seeking a substantial increase in wages, stronger rules to prevent fatigue and measures to preserve the share of union workers rather than contract employees.
    • During the last round in 2012, USW and Shell (RDS.A, RDS.B), which represented refiners, spent about a month in negotiations before agreeing to a national contract which was used as the foundation for forging refinery-by-refinery contracts with union locals.
    • An S&P index of refiners - including Exxon (NYSE:XOM), Chevron (NYSE:CVX), Marathon Petroleum (NYSE:MPC) and Tesoro (NYSE:TSO) - has more than doubled since the beginning of 2012, and the unions want a piece of the pie.
    | Oct. 31, 2014, 5:56 PM | 15 Comments
  • Oct. 31, 2014, 3:17 PM
    • Tesoro (TSO +5.4%) jumps more than 5% after the oil refiner reported Q3 earnings that easily beat expectations on better than expected refining margins, higher than estimated refining throughput, and record retail performance.
    • Cowen raises its TSO target price to $90, saying the company's refining segment outperformed in all regions with throughputs 60K bbl/day higher than it estimated, and the retail segment beat operating income estimates by $100M on margins 100% higher than anticipated.
    • Shares are upgraded to Outperform at Howard Weil, which cites California synergies and YTD business improvements of $390M, on pace to exceed FY 2014 guidance of $370M-$430M.
    | Oct. 31, 2014, 3:17 PM | 3 Comments
  • Oct. 31, 2014, 12:19 AM
    • Tesoro (NYSE:TSO): Q3 EPS of $3.05 beats by $0.89.
    • Revenue of $11.15B (-0.8% Y/Y) misses by $180M.
    • Press Release
    | Oct. 31, 2014, 12:19 AM | 1 Comment
  • Oct. 27, 2014, 9:44 AM
    • Venezuela is canceling plans to sell its Citgo U.S. refining unit, the country’s finance minister says, apparently the victim of falling oil prices, declining refining margins, and unscheduled downtime among Citgo's refineries.
    • Venezuelan officials indicated earlier this year that they were looking to sell Citgo for as much as $10B, and HollyFrontier (NYSE:HFC), Valero Energy (NYSE:VLO), Western Refining (NYSE:WNR), Tesoro (NYSE:TSO) and PBF Energy (NYSE:PBF) were speculated as potential bidders for Citgo's three U.S. refineries.
    • Analysts at the risk consultancy Eurasia Group recently warned that a sale of Citgo would leave fewer assets for investors to target if Venezuela defaults.
    | Oct. 27, 2014, 9:44 AM | Comment!
  • Oct. 20, 2014, 7:39 AM
    • Tesoro Logistics (TLLP, TSO) agrees to acquire the natural gas pipeline and processing business owned by QEP Resources (NYSE:QEP) in a $2.5B deal.
    • TLLP says the deal will expand its scope to include natural gas in addition to oil, as QEP owns gas processing plants and oil and gas pipelines in Wyoming, Colorado, Utah and North Dakota.
    • To help pay for the deal, plans a public offering of 19.35M common units.
    • QEP says selling the midstream business would improve its financial position and help it pay down debt, as well as improve its competitive position through increased capital investment in its E&P assets.
    • Williams Cos. (NYSE:WMB) and Questar (NYSE:STR) reportedly had submitted bids for the assets.
    | Oct. 20, 2014, 7:39 AM | 1 Comment
  • Oct. 14, 2014, 6:57 PM
    • Refiners implore Pres. Obama to remain firm on plans to scale back renewable fuel quotas for 2014, warning that if the administration gives in to Corn Belt demands for higher mandates, it could cause gasoline prices to spike.
    • The EPA last year proposed cutting the amount of renewable fuel required for 2014 to 15.2B gallons, ~3B gallons below the amount prescribed in federal statutes, including up to 13B gallons from traditional corn-based ethanol and 2.2B gallons of advanced biofuels.
    • But administration officials have hinted they could boost the final targets, justified in part because gasoline consumption has also risen since the proposal was first unveiled last year.
    • Among signers of a letter to Obama were Valero (NYSE:VLO) CEO Joseph Gorder and Tesoro (NYSE:TSO) CEO Gregory Goff.
    | Oct. 14, 2014, 6:57 PM | 7 Comments
  • Oct. 9, 2014, 2:57 PM
    • J.P. Morgan has a favorable outlook on the refining sector heading into Q3 earnings, as the group has sold off since September on a combination of factors, including fears about the crude export ban being lifted and narrowing crude differentials, despite good product cracks.
    • Two of the biggest drops among refiners have been suffered by Valero Energy (VLO -2.7%) and HollyFrontier (HFC -2.6%), each ~13% since the group's peak; of the two, JPM likes VLO going into the quarter, particularly in the event of any favorable updates around capital allocation.
    • The firm thinks Tesoro (TSO -3.2%) is set up for another solid quarter but that investors must be expecting it, given that shares are down only ~3%.
    | Oct. 9, 2014, 2:57 PM | 1 Comment
Company Description
Tesoro Corp is an independent petroleum refiner and marketer in the United States. Its subsidiaries operate through three business segments, transport crude oil and manufacture, transport and sell transportation fuels.