Tesoros Affiliate to Buy Alaskan Assets from Flint Hills

On Nov 23, independent refiner Tesoro Corporation (TSO – Analyst Report) announced that its affiliate Tesoro Alaska Company will buy certain wholesale marketing and logistics assets from Wichita, KS-based Flint Hills Resources. The assets to be acquired are located in Anchorage and Fairbanks, Alaska.   

The assets under sale include all of Flint Hills’ wholesale fuel marketing contracts in Alaska, and a 580,000 barrels in-service storage capacity terminal in Anchorage with associated truck rack and rail loading capability. An airport terminal in Fairbanks and a multi-year terminalling agreement at Flint Hills’ North Pole terminal are also part of the transaction. These additions will expand Tesoro’s footprint in the region as well as support its existing assets.

The transaction is expected to close within two months, subject to necessary approvals. However, no financial details of the deal have been provided.

Tesoro Corporation is an independent refiner and marketer of refined petroleum products in the western U.S. A major advantage for the company is the scale and diversification benefits offered by its portfolio of six refineries. Being buyers of crude, Tesoro’s profitability has been favorably impacted by a fall in input cost. The company operates its businesses under three segments – Refining, Logistics and Retail.

Currently, Tesoro holds a Zacks Rank #2 (Buy).

Other stocks worth considering from the oil refining and marketing space are Murphy USA Inc. (MUSA – Snapshot Report), HollyFrontier Corporation (HFC – Snapshot Report) and Marathon Petroleum Corporation (MPC – Analyst Report). While Murphy USA sports a Zacks Rank #1 (Strong Buy), both HollyFrontier and Marathon Petroleum carry the same rank as Tesoro.

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Tesoros Affiliate to Buy Alaskan Assets from Flint Hills