Credit: Shutterstock photoDownstream operator Tesoro CorporationTSO recently announced the much-awaited completion of $6.4 billion acquisition of Texas-based oil refiner Western Refining Inc.
The combined company will be now be officially called Andeavor and is likely to begin trading on NYSE under a new ticker, ANDV, effective Aug 1. Tesoro's master limited partnership, Tesoro Logistics LP TLLP would change its name to Andeavor Logistics LP., with the new ticker symbol ANDX. The new name will not extend to the company's 3,000 retail locations, which will continue to carry the Tesoro brand. The combined company will be headquartered in San Antonio.
Recently, Tesoro elected two more members to its board of directors - Paul Foster and Jeff Stevens - under whose leadership Western Refining emerged as one of the leading integrated refining, and marketing companies.
Western Refining Logistics, L.P. WNRL , a spinoff of El Paso-based Western Refining, is not included in the acquisition. However, Tesoro is contemplating to purchase Western Refining Logistics in a separate transaction,
With the closure of the acquisition, El Paso loses a public company headquarters, with only three companies now having their corporate headquarters in El Paso. These include Helen of Troy HELE , El Paso Electric and Western Refining Logistics.
The acquisition will allow Tesoro to increase its refining capacity to more than 1.1 million barrels per day (or about 6% of the nation's crude processing capacity) from a total of 10 refineries in eight states, making it the fourth-largest independent U.S. refiner. The combined company will have more than 3,000 retail gas stations, 13,000 employees and 4,800 miles of pipelines. The company is expected to deliver cost synergies of $350 million to $425 million within the first two years, generating substantial stockholders value.
Zacks Rank
Headquartered in San Antonio, TX, Tesoro is an independent refiner and marketer of refined petroleum products in the western U.S.
The company, under the Zacks categorized Oil and Gas - Refining and Marketing industry, currently carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the company's second quarter has been revised downward over the last 30 days. Over the same time frame, the Zacks Consensus Estimate for full-year 2017 has also moved south.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesoro Logistics LP (TLLP): Free Stock Analysis Report
Helen of Troy Limited (HELE): Free Stock Analysis Report
Tesoro Corporation (TSO): Free Stock Analysis Report
Western Refining Logistics, LP (WNRL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
