Salt Lake, L.A. Acquisitions Spice Up Tesoro Q2 Results
Exxon, Mobil brand additions drove sales, volumes, too
SAN ANTONIO -- Tesoro Corp. "closed on the acquisition of 15 retail stations in the Salt Lake area … and have added over 80 Exxon- and Mobil-branded stations to [its] portfolio" during the second-quarter of 2104, Greg Goff, president and CEO, said on the company's earnings call on July 31.
The company reported quarterly net income of $224 million, compared to net income of $227 million for second-quarter 2013.
"We're pleased with our second quarter results," CFO G. Scott Spendlove said during the call. "Our results from continuing operations for the quarter are up meaningfully over last year, reflecting the addition of the Los Angeles refining, marketing and logistics assets, and delivery of $200 million of EBITDA improvements through a combination of synergy capture and other business improvements."
For second-quarter 2014, the company recorded segment operating income of $494 million compared to segment operating income of $420 million in second-quarter 2013. The increase was driven primarily by the addition of the Los Angeles refining, marketing and logistics assets, growth in Tesoro Logistics LP and improved retail margins.
The refining segment's operating income was $372 million for the quarter, compared to $375 million last year.
The retail segment's operating income was $72 million, a significant improvement from $25 million in the second quarter of last year, driven by the addition of approximately 835 dealer-operated ARCO retail gas stations on June 1, 2013.
Same-store fuel sales were higher during the quarter by almost 0.5% versus second quarter last year. Total retail fuel sales volumes were up more than 60% year-over-year, again driven by the addition of the ARCO stations. Retail fuel margins per barrel were flat relative to the second quarter of last year.
San Antonio-based Tesoro is an independent refiner and marketer of petroleum products. Through its subsidiaries, it operates six refineries in the western United States and owns a logistics business that includes a 35% interest in Tesoro Logistics LP and ownership of its general partner. Tesoro's retail marketing system includes more than 2,200 retail stations under the ARCO, Shell, Exxon, Mobil, USA Gasoline and Tesoro brands.