Tesoro Logistics LP (TLLP.N) said it would buy some oil, natural gas, and other gathering systems in North Dakota for about $700 million, and will also acquire terminal and storage assets from major shareholder Tesoro Corp (TSO.N) for about $400 million.
The North Dakota assets, which the company is buying from a group that includes Whiting Oil and Gas Corp, consist of over 650 miles of crude oil, natural gas, and other gathering pipelines, the company said on Monday.
The acquisition is expected to add $79 million-$89 million to its annual net earnings and $100 million-$110 million of annual EBITDA, Tesoro Logistics said.
The company said it would buy the terminal and storage assets located in Martinez, California from Tesoro (TSO.N), which owns about 34 percent of Tesoro Logistics.
Tesoro would waive $100 million of incentive distribution rights (IDRs) over the next two years, Tesoro Logistics said.
RBC Capital Markets is the financial advisor and Norton Rose Fulbright US LLP the legal adviser to Tesoro Logistics.
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Source: Reuters.com
