Seeking Alpha
 

Tesoro Corporation (TSO)

- NYSE
  • Sat, Jan. 10, 8:25 AM
    • Kinder Morgan (NYSE:KMI) tops Credit Suisse's list of its nine favorite energy and utility stocks to own for 2015, believing KMI’s recent MLP acquisitions will lower the company’s cost of capital and open the door for double-digit dividend growth and additional potential acquisitions.
    • Noble Corp. (NYSE:NE) is the top pick among offshore drillers, despite the fact that analysts don’t believe the inflection point in the drilling down-cycle is coming until at least 2016; fulfilling the firm's $30 price target would mean nearly 90% upside.
    • Also recommended: SUNE, EXC, RDS.A, RDS.B, TSO, DVN, PDCE, SLB.
    • SandRidge Energy (NYSE:SD) is one of Credit Suisse's five energy and utility stocks to avoid despite an upbeat quarterly report, believing the risk associated with SD’s extremely high leverage likely will lead to significant capex cuts, thus limiting production growth and cash flows.
    • The firm also would avoid CVRR, SFY, YGE and SO.
    | 56 Comments
  • Dec. 20, 2014, 10:20 AM
    • With crude oil prices near five-year lows, some analysts say gas stations may be the best way to play the energy sector right now, with CST Brands (NYSE:CST), Murphy USA (NYSE:MUSA) and Marathon Petroleum (NYSE:MPC) as pure plays worth watching.
    • Gasoline retailers enjoy their largest profit margins in falling price environments such as today, says Again Capital's John Kilduff.
    • The gas station trend is clearly seen with refinery Valero's (NYSE:VLO) 2013 spinoff of its retail CST Brands, which operates 1,900 gas stations in North America and whose stock has easily outperformed VLO in recent months; Gabelli last week increased its 2014 EPS estimate on CST because of lower oil prices.
    • MUSA and MPC, also created as gas station spinoffs from refineries, have outperformed their parent companies as well.
    • Tesoro (NYSE:TSO) said its retail segment enjoyed record performance in the most recent quarter, while big box stores such as Costco (NASDAQ:COST) that have gas stations connected to their stores also noted the benefit of lower oil prices in their earnings reports.
    | 23 Comments
  • Dec. 12, 2014, 4:38 PM
    • QEP Midstream Partners (NYSE:QEPM) spiked higher into the close after a 13D filing disclosed that Tesoro (NYSE:TSO) had acquired a 56.9% active stake in the company.
    • In the filing, Tesoro Logistics (NYSE:TLLP) proposes acquiring all outstanding units of QEPM not owned by QEPM or by QEP Field Services.
    | 3 Comments
  • Dec. 10, 2014, 2:49 PM
    • Tesoro (TSO -3.5%) moves lower along with nearly all energy names, despite receiving analyst praise following its update of growth strategies including expectations for 2015 annual improvements of $550M-$670M.
    • Barclays analysts say TSO is on track to exceed original 2014 improvement targets, reiterating its Overweight rating and raising its price target to $114 from $104.
    • Credit Suisse reiterates an Outperform rating and lifts its price target to $100 from $86, saying that "self-help" is driving upside.
    • BofA calls TSO a Buy and raises its price target to $88 from $70, noting that TSO's review combined for the first time the strategy update from Tesoro Logistics (TLLP -6.2%).
    | 1 Comment
  • 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%.
    | 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.
    | 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.
    | 20 Comments
  • Nov. 21, 2014, 6:45 PM
    | 46 Comments
  • 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.
    | 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).
    | 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).
    | 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.
    | 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.
    | 16 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.
    | 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
    | 1 Comment
Visit Seeking Alpha's
TSO vs. ETF Alternatives
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.