Tesoro Profit Tops Estimate, Revenue Misses - Quick Facts

(RTTNews) - Tesoro Corp (TSO), a refiner and marketer of petroleum products, Thursday reported third-quarter net earnings of $396 million or $3.05 per share compared with $99 million or $0.72 per share last year.

Excluding items, adjusted earnings for the quarter were $3.06 per share compared with $0.44 per share a year ago.

Revenues for the quarter were $11.15 billion compared with $11.24 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $2.16 per share on revenues of $11.33 billion for the quarter. Analysts' estimates typically exclude special items.

On October 20, the company said that Tesoro Logistics LP ("TLLP") will become a full-service logistics company through acquisition of QEP Field Services for $2.5 billion, including 58% ownership in QEP Midstream Partners.

After the announcement TLLP successfully completed the $1.3 billion of equity and $1.3 billion of debt offerings to finance this acquisition.

Tesoro participated in the equity offering investing an additional $500 million to purchase 8.7 million TLLP common units.

Prior to the transaction Tesoro owned 19.5 million TLLP common units or 33% and after the recent equity offering it now owns 28.2 million TLLP common units or 35% of the outstanding TLLP units.

The company said the acquisition advances its strategy to build a customer-focused full-service logistics business, broadening Tesoro's capabilities across the value chain to deliver enhanced shareholder value.

With the growth in the base logistics business, Tesoro expects 2015 EBITDA to grow $75 million to $100 million over 2014 and with the announced acquisition of QEP Field Services, TLLP expects to generate an additional $250 million to $275 million before integration expenses.