Skip to main content Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation Investor Presentation | Shale Experts
Loading...
Pm

Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation

Tesoro Corporation · May 27, 2009 · 24 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 1
    Deutsche Bank Energy, Utilities and Power Conference May 2009 1
  2. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 2
    Refining Coffee Talk Demand: If I had knowledge of an early Unemployment indicator of demand, Id be outside on the EIA monthly beach China Production Supply: Refiners have been rational and 2008: Diesel adjusted production and…
  3. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 3
    Unprecedented Historical U.S. Gasoline Patterns Y-o-Y Annual U.S. Gasoline Demand Growth, MMBPD 0.4 EIA Forecast 0.2 1990-2007 Average 100MBPD growth 0.0 1990 1995 2000 2005 2010 (0.2) (0.4) 2008, -3%, -320MBPD…
  4. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 4
    Important Indicators of Demand U.S. Gasoline Demand, MBPD U.S. Initial Jobless Claims, in thousands China Industrial Production Index 10,000 800 70 600 60 9,000 400 50 200 40 8,000 0 30 06 07 08 09 06 07 08 09 06 07 08…
  5. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 5
    U.S. Gasoline Supply 15% 95% Jan/Feb-08 90% 10% 85% 5% 80% 0% 75% -5% 70% -10% 65% Jan-07 Gasoline Stocks, Y-on-Y Change (left-axis) Refinery Utilization (right-axis) Jan/Feb-09 Production Imports West -10% 53% Coast -2%…
  6. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 6
    California Market West Coast Year-Over-Year Gasoline Demand California Refinery Utilization 100% +3% +0.5% (U.S. ex. PADD5) 90% 80% 1Q -0.5% 2Q 70% 3Q 4Q -4% 60% 2004 2005 2006 2007 2008 Jan-07 Aug-07 Mar-08 Oct-08…
  7. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 7
    Refiners Adjusting ProductionAnd Yields Global Margins, /bbl 40 30 20 Diesel 10 Gasoline 0 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 (10) Average Refinery Yield Tesoro System 19% 18% 21% 21% 21% Max Gasoline Max Distillate…
  8. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 8
    2nd Quarter Heavy-Light Differential Maya-WTI Differential Heavy Crude Prices Impact California 0 6% 8% (4) Current* (4.50)/bbl 28% 62% (8) 2009ytd avg (9)/bbl (12) 64% 2008 avg (16)/bbl 32% (16) TSO System California…
  9. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 9
    2009 Macro Environment Summary Early indicators of demand will be difficult to see, although the trend shows plateau Refiners are rational: both for utilization levels and production yields California was first into the economic…
  10. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 10
    2009 Improvement Platform Tesoros Goals For Continued Improvement: Lower breakeven cost 2.50/bbl Margin improvement Expense reduction Capital expenditure reduction Build quick-hit capital program 10
  11. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 11
    Result Of Expected 2009 Improvements /bbl 10.50 1.60 0.20 0.10 0.65 7.95 2008 Cash Margin Capture Energy Maintenance Reduced Capital Cash Breakeven Breakeven Improvements Improvements Program Index After Improvements…
  12. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 12
    2009 Improvement Platform in millions Non-Capital Improvements Crude and Feedstocks 110 Product Realizations / Optimization 40 Transportation Savings 60 Production and Yields 55 Capital Full Year Benefit of 2008 Capital Program…
  13. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 13
    2009 Expense Reduction Focus Areas: Energy Consumption Maintenance Processes 45 million in savings* 25 million in savings Goal: Improve energy efficiency and flexibility by improving light-end recovery Focus resources on…
  14. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 14
    2009 Key Year-Over-Year Improvement Factors Lower year-over-year capital budget 1,307 in millions 1,101 1,143 932 724 600-700 570 600 2006 2007 2008 2009e 2010e Actuals Capital Program* Revised Capital Program** New…
  15. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 15
    Tesoro Investment Conclusions Lower breakeven costs allow for gross margin growth over 2008 despite expectations of a lower market environment in 2009 Operating cash flow expected to be adequate to cover capital spending program…
  16. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 16
    Deutsche Bank Energy, Utilities and Power Conference May 2009 16
  17. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 17
    Appendix 17
  18. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 18
    Assumptions Slide 11-13 - Tesoro Index & Cash Breakeven: The actual 2008 Index required for cash breakeven was 9.18/bbl. The variance to our expected 10.50/bbl assumption in the Analyst Day presentation on Dec 16, 2008 was primarily…
  19. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 19
    2009e Capital Program in millions CI&L, 20 Admin., 45 Income Imp., 30 Mid-Pacific, 30 Maintenance, 120 Mid-Continent, 70 Pacific Northwest, 90 Turnaround, 140 California, 365 Regulatory, 290 By Category By Region…
  20. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 20
    Selected Financial Data in millions, unless noted For The Year Ending, Balance Sheet Items 2008 2007 Cash & Cash Equivalents 20 23 Total Current Assets 1,646 2,600 Total Current Liabilities 1,441 2,494 Working Capital 205 106…
  21. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 21
    United States Political Factors Impacting Refining Policy change may impact several aspects of the refining industry, including: gasoline supply, product demand and regulatory capex White House is campaigning for emissions limits,…
  22. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 22
    California Gasoline Demand Data EIA Weekly Statistics California Miles Driven 4-week average, year-on-year change year-on-year change 20% 4% 2% 10% 0% 0% -2% -10% -4% -20% -6% -30% -8% Jan Feb Mar Apr May Jun Jul Aug Sep Oct…
  23. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 23
    West Coast Gasoline Demand Statistics 2008 2009 Y-on-Y % Change, unless noted Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb - PADD 5 Gasoline Demand* -5.8% -7.7% -3.1% -2.7% -6.2% -4.8% -1.8% -4.4% -3.4% -4.4% 10.7% CA Miles…
  24. Corporation at Deutsche Bank Securities Energy & Utilities Conference – Tesoro Corporation – slide 24
    West Coast Gasoline Supply Statistics Mbbls 9,000 California Gasoline Stocks 8,000 7,000 6,000 5,000 2007 2008 2009 Y-on-Y Change, % California Refinery Utilization 40% 30% 20% 10% 0% -10% -20%…

From the store

Browse maps, data & reports in the Shale Experts store