Driving Distinctive Growth MLPA 2016 MLP Investor Conference June 2016 2015 Tesoro Corporation. All Rights Reserved.
Tesoro Logistics Competitive Advantage Leading provider of logistics services to oil and gas producers and refining and marketing companies within our strategic footprint Tesoros strategy supports integration and drives high…
Asset Portfolio Provides Unique Platform for Growth Anacortes, WA Kenai, AK Mandan, ND Salt Lake City, UT Key Metrics Martinez, CA Crude oil, refined product and 4,000+ miles natural gas pipelines Natural gas throughput…
Track Record of Robust Value Creation 2011 26 million net earnings 42 million EBITDA Distributions Per LP Unit ( annualized) 3.24 Crude Oil Terminalling & Gathering Transportation 2015 275 million net earnings 636 million…
Tesoros Competitive Advantage The leading integrated refining, marketing and logistics company in our strategic footprint Driving significant business improvements and creating sustainable earnings growth Demonstrated track record…
Strategic Framework to Drive Continued Growth Focus on Stable, Provide full-service logistics offering Fee-Based Business Minimal commodity price exposure Enhance operational efficiency and maximize asset utilization Optimize…
Terminalling and Transportation Overview Asset Overview: 29 refined product and storage Anacortes, WA Kenai, AK terminals with over 1,000MBD throughput capacity Four marine terminals with 795MBD throughput capacity Salt Lake City,…
Terminaling and Transportation Market Drivers California Employment 1,700 PADD V Gasoline Demand 16.5 Millions of People MBD 1,600 16.0 1,500 15.5 1,400 5 Yr Range 2016 2015 5 Yr Avg. 15.0 1,300 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15…
Terminalling and Transportation Growth Projects Terminalling: Capture growth from expansion of Mandan, Stockton, Pasco and Anacortes product terminals New Kenai, Alaska asphalt terminal Crude storage expansion in Southern…
Crude Oil Gathering Well Positioned in Bakken Asset Overview: Over 1,000 miles of crude oil gathering and trunkline pipeline High Plains Pipeline throughput capacity over 250MBD Bakken Area Storage Lake Sakakawea Hub storage…
Tesoro High Plains Pipeline System Origins Destinations MBD MBD 25 35 15 25 Third Party Trucking BASH 1 million barrels 75 85 160 180 Two Outbound Takeaway Regional Third-Party TLLP Third Party (New 1Q17) 14…
TLLP Rockies Natural Gas Gathering and Processing Asset Overview: Approximately 2,000 miles of natural gas gathering pipeline Natural gas gathering capacity of over 2,900 MMcf/d Four natural gas processing complexes and one…
Natural Gas System Overview Basin System Approximate Processing Approximate Residue Pipelines / Gathering Volume1 Facility Processing Volume1 NGL Pipelines Questar Pipeline Green River Blacks Fork Overthrust Pipeline Pinedale…
Rockies Natural Gas Production Drivers Natural Gas Rig Count Gas Well Completions 21 59 14 14 16 15 46 14 36 37 11 29 26 23 21 27 6 5 5 14 Wyoming and Utah Natural Gas Production 8.0 Bcf/d 7.0 6.0 5.0 4.0 3.0…
Natural Gas Gathering Volumes and Revenues Natural Gas Gathering Volume1 Thousands of MMBtu/d 925 973 970 903 874 1Q15 2Q15 3Q15 4Q15 1Q16 Natural Gas Gathering Revenues in millions 46 46 42 43 36 1Q15 2Q15…
Gathering and Processing Growth Projects Bakken Expand High Plains Pipeline in Bakken to capture core production to aggregate volumes for take-away pipelines Increase storage at Bakken Area Storage Hub (BASH) Rockies Walker Hollow…
Future Drop Downs to Capture Additional Value 350 - 550 million of 150 - 250 million of Earnings Earnings from Existing Assets from New Business Investments Marine terminals Bakken pipeline & rail Crude oil pipelines Mixed xylenes…
Strategic Approach to Acquisitions Pursuing opportunities that provide Tesoro access to advantaged feedstocks and new markets Principally focused on Tesoros strategic footprint Expanding acquisition horizon to include adjacent…
New Alaska Marketing and Logistics Business Tesoros planned acquisition of wholesale marketing and logistics business in Anchorage and Fairbanks Integrates with existing TLLP facilities Includes over 600 MBD of storage, truck…
Tesoros Acquisition of Great Northern Midstream Tesoro acquired Bakken crude Canada oil gathering and Montana North Dakota transportation pipelines, Tesoro storage and rail loading terminal High Plains Pipeline Provides Tesoro West…
Flexible Capital Structure Prudent Funding Pursue growth through a balanced mixture of debt and equity and Ample Active ATM program allows access to cost efficient equity capital Liquidity 1.6 billion credit facilities maturing in…
Financial Flexibility in millions Current Metrics As of 3/31/16 Total Assets 4,793 Total Debt1 2,821 Total Equity 1,696 Debt-to-EBITDA Ratio2 4.1x Remaining Capacity on Revolving Credit Facility3 600 Remaining Capacity on…
Continuing to Drive Unitholder Value Attractive, Visible Growth Opportunities Strong Well-Positioned Assets Sponsorship Stable, Fee-Based Cash Experienced Flow Management Team 29 Tesoro Logistics 29
Appendix 2015 Tesoro Corporation. All Rights Reserved.
Key Customer Overview Total Revenue Breakdown Tesoro 55% High Yield and Not Rated 27% Investment Grade 18% Approximately 75% of revenues are generated from Tesoro or Investment Grade customers 31 Tesoro Logistics…
Commercial Agreements with Tesoro Termination Provisions Fixed Minimum Initiation Term Volume Tariff/Fee Refinery Description of Contract Date (Years) Renewals Commitment Escalators Shutdown Force Majeure Transportation Agreement…
Non-GAAP Financial Measures Tesoro Logistics LP EBITDA Reconciliation (in millions) Unaudited 2011 2015 Net earnings 26 275 Add loss attributable to Predecessor 8 17 Add depreciation and amortization expense 6 178 Add interested…
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