Nov 21 Tesoro Logistics LP 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
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,
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 adviser and Norton Rose
Fulbright US LLP the legal adviser to Tesoro Logistics.
(Reporting by Ahmed Farhatha and Ankit Ajmera in Bengaluru;
Editing by Sriraj Kalluvila)