2013-01-07 14:00:38 -
SAN ANTONIO - January 7, 2013 - Tesoro Logistics LP (NYSE: TLLP) ("TLLP" or the
"Partnership") today announced that, while it has not yet closed its books for
the fourth quarter of 2012, the Partnership expects to generate Adjusted EBITDA
between $25 and $27 million for the fourth quarter 2012, excluding the impact of
approximately $1.5 million of transaction costs related to the purchase of the
Anacortes Rail Unloading Facility and the announced acquisition of Chevron Pipe
Line Company's Northwest Products System. Contributing to the lower quarterly
Adjusted EBITDA expectation relative to prior guidance of $27 to $30 million
(excluding the impact of transaction costs) were lower terminalling volumes in
the Los Angeles area related to refinery maintenance activities and lower
trucking EBITDA driven by a delay in the expansion of TLLP's proprietary
trucking operations.
Despite these unusual items during the fourth quarter, the Partnership continues
to expect distributable cash flow to increase sequentially relative to the third
quarter of 2012. Also, the Partnership's expectation for annual EBITDA in 2013
from TLLP's current asset base remains atapproximately $140 million, excluding
any EBITDA contribution from the pending Northwest Products System acquisition
that is expected to close later this quarter.
On January 4, 2013, the Partnership amended its senior secured revolving credit
agreement ("Credit Agreement"), and concurrent with the execution of the
amendment, exercised its option to increase the total loan availability to an
aggregate of $500 million. Additionally, the Partnership is permitted to request
that the loan availability under the Credit Agreement be increased up to an
aggregate of $650 million, subject to receiving increased commitments from the
lenders. Today, the Partnership remains undrawn with approximately $500 million
aggregate loan availability.
TESORO LOGISTICS LP
RECONCILIATION OF FORECASTED EBITDA TO AMOUNTS UNDER U.S. GAAP
(Unaudited)
(In millions)
Tesoro Logistics LP
Three Months Ended
Reconciliation of Forecasted EBITDA to Forecasted Net
Income: December 31, 2012
---------------------
Net income $ 14.7 - 16.7
Add: Depreciation and amortization expenses 3.4 - 3.4
Add: Interest and financing costs, net 5.4 - 5.4
---------------------
EBITDA (a) 23.5 - 25.5
Add: Transaction costs 1.5 - 1.5
---------------------
Adjusted EBITDA (a) $ 25.0 - 27.0
---------------------
Tesoro
Logistics LP
Twelve Months
Ended
December
Reconciliation of Forecasted EBITDA to Forecasted Net Income: 31, 2013
--------------
Net income $ 101.0
Add: Depreciation and amortization expenses 17.5
Add: Interest and financing costs, net 21.5
--------------
EBITDA (a)(b) $ 140.0
--------------
(a) We define EBITDA as net income before depreciation and amortization
expenses and net interest and financing costs. We define Adjusted EBITDA as
EBITDA plus any transaction costs for acquisitions. For the fourth quarter of
2012, we incurred approximately $1.5 million of transaction costs related to the
purchase of the Anacortes Rail Unloading Facility and the announced acquisition
of Chevron Pipe Line Company's Northwest Products System that are excluded from
Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered as
alternatives to net income in accordance with accounting principles generally
accepted in the United States of America ("U.S. GAAP"). EBITDA and Adjusted
EBITDA have important limitations as analytical tools, because they exclude
some, but not all, items that affect net income. EBITDA and Adjusted EBITDA are
not measures prescribed by U.S. GAAP but are supplemental financial measures
that are used by management and may be used by external users of our condensed
combined consolidated financial statements, such as industry analysts,
investors, lenders and rating agencies to assess:
* our operating performance as compared to other publicly traded partnerships
in the midstream energy industry, without regard to historical cost basis or
financing methods;
* the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;
* our ability to incur and service debt and fund capital expenditures; and
* the viability of acquisitions and other capital expenditure projects and the
returns on investment of various investment opportunities.
(b) The EBITDA shown is based on TLLP's current asset base and does not include
any net income or EBITDA contribution from, or any transaction expenses related
to, the pending Northwest Products System acquisition.
About Tesoro Logistics LP
Tesoro Logistics LP, headquartered in San Antonio, Texas, is a fee-based,
growth-oriented Delaware limited partnership formed by Tesoro Corporation to
own, operate, develop and acquire crude oil and refined products logistics
assets.
This press release contains certain statements that are "forward-looking"
statements within the meaning ofthe federal securities laws concerning our
expectations aroundfourth quarter 2012 and full year 2013 EBITDA and
distributable cash flow, as well as the annual EBITDA contribution expected from
the acquisition of Chevron Pipe Line Company's Northwest Products System.
Although these statements reflect the current views, assumptions and
expectations of our management, the matters addressed herein are subject to
numerous risks and uncertainties which could cause actual activities,
performance, outcomes and results to differ materially from those indicated.For
more information concerning factors that could affect these statements see our
annualreport on Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K filed with the Securities and Exchange Commission. We undertake no
obligation to publicly release the result of any revisions to any such forward-
looking statements that may be made to reflect events or circumstances that
occur, or which we become aware of, after the date hereof.
Contact:
Investors:
Louie Rubiola, Director, Investor Relations, (210) 626-4355
Media:
Tesoro Media Relations,
media@tsocorp.com, (210) 626-7702
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Tesoro Logistics LP via Thomson Reuters ONE
[HUG#1668428]
