SAN ANTONIO -- Tesoro Corp. announced that it has completed the purchase of Shell's 100,000-barrels-per-day (bpd) Los Angeles refinery and 278 operating gas stations in Southern California. All 278 retail sites will remain Shell branded and will be supplied by Tesoro.
Tesoro assumes operational control of the refinery and began takeover responsibility for the operations of the retail locations last Friday.
The total purchase price was $1.76 billion, which included $213 million for estimated inventories. The company financed the [image-nocss] purchase, along with fees approximating $33 million with $589 million in cash, $500 million on the upsized $1.75 billion revolver and the remainder on an interim loan facility.
Earlier this month, Tesoro also completed the purchase and assumed control of the USA gasoline brand and 138 operating gas stations from Thousand Oaks, Calif.-based USA Petroleum Corp. The company used cash on hand to fund the $273 million purchase price, which included $6.5 estimate million for inventories. The 138 operating retail stations include 130 stations in California, six stations in the Pacific Northwest and two truckstops in New Mexico.
San Antonio-based Tesoro is an independent refiner and marketer of petroleum products. It operates seven refineries in the western United States with a combined capacity of approximately 660,000 bpd. Tesoro's retail-marketing system includes more than 880 retail outlets, of which 464 are company-owned locations.
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