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17-06-2013

Tesoro announces the sale of Hawaii operations to Par Petroleum

Tesoro Corporation  announced today that it has signed an agreement with a wholly owned subsidiary of Par Petroleum Corporation to sell all of its interest in Tesoro Hawaii, LLC, which operates the 94,000 barrel per day Kapolei refinery, retail stations and associated logistical assets. As part of the agreement, Par Petroleum intends to operate the assets as an integrated refining, logistics and retail system. 

The sales price of the Hawaii operations is $75 million, plus the market value of net working capital, which is expected to be approximately $225 million to $275 million. Also included is an earn-out arrangement payable over three years up to $40 million based on consolidated gross margins. Tesoro anticipates completing the sale in the third quarter 2013, subject to regulatory approval. Aegis Energy Advisors Corp. and Norton Rose Fulbright advised Tesoro in this transaction. 

"We are pleased to have reached this positive outcome for the Company," said Greg Goff, President and CEO. "While the Hawaii operations do not align with our strategic focus, we believe they offer a great opportunity for Par Petroleum." 

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