Key Messages Business environment slowly improving Well positioned assets Opportunities to improve performance Strategic review underway Committed to drive shareholder value 3
Challenging Economic Conditions However, we are starting to see improvements. US Employment, millions Quarterly Growth in US GDP 150.0 10.0% 8.0% 145.0 6.0% 4.0% 140.0 2.0% 0.0% 135.0 2.0% 4.0% 130.0 6.0% 8.0% 125.0…
Challenging Economic Conditions Demand improvement, but off a low base West Coast 321 Crack, /bbl PADD5 Gasoline Demand, mbpd 35.00 1,800 30.00 1,750 1,700 25.00 1,650 20.00 1,600 15.00 1,550 10.00 1,500 5.00 1,450…
WellPositioned in Attractive Markets Refineries located in highermargin markets Integrated marketing in select regions Key logistics assets Market responsive system optimization Strong management team 6
West Coast California and Pacific Northwest Two complex refineries in the largest PADD5 markets Crude flexibility Significant California retail Strategic logistics Anacortes back online in October Access to growing Pacific…
Pacific Rim Hawaii and Alaska Hydrocracking refineries Well suited for distillate markets Low operating cost, low capital requirements Strong Tesoro branded marketing Access to growing Pacific Rim 8
Rockies and MidContinent Utah and North Dakota Low cost refineries well suited to their markets Well positioned to growing advantaged crude supplies Proprietary crude gathering system around Bakken production Shell transaction…
Marketing 878 stations in key markets Tesoro, USA, Shell Tesoro brand well established in Alaska, Hawaii, Rockies, and Midcontinent Shell and USA brands in California Expansion of Shell relationship Expected 300 stations at…
System Optimization Crude flexibility creates opportunities Movement of intermediates among plants Gasoline vs diesel yield flexibility Effective inventory and working capital management Capital expenditure optimization…
Supply and Trading Supply and trading leverages assets Significant crude flexibility Product and intermediates trading balances system Supported by fleet and pipeline logistics Tesoro Panama provides opportunity to capture…
Opportunities Accelerate capital and non capital initiatives Drive competitive cost structure Optimize capital spending Increase marketing integration Expand logistics and supply and trading 13
Strategic Review Underway Thorough portfolio assessment Identify improvement opportunities Evaluate growth and repositioning opportunities Identify ways to strengthen balance sheet and enhance financial flexibility Develop plans…
Tesoro Well Positioned Assets in attractive markets Integrated marketing Logistics optionality Optimization, supply and trading capabilities Growth and cost structure opportunities Management Team Focused on Improving…
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