NEW YORK, July 23, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Tesoro Corporation (NASDAQ: TSO). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=TSO
Highlights from our TSO Report include:
- Top-line Growth - On May 7, 2015, Tesoro Corporation released results for the first quarter of 2015. The Company generated consolidated revenue of $6.5 billion, compared to $9.9 billion in Q1 2014. Total segment operating income rose from $264 million in last year quarter to $424 million in Q1 2015. EBIT for the period amounted to $284 million, higher than $160 million in the previous year quarter. In addition, net earnings attributed to Tesoro Corporation were recorded at $145 million in Q1 2015, compared with $78 million in the prior year period. Consequently, the Company's earnings per share increased from $0.58 in Q1 2014 to $1.15 per share in Q1 2015. Adjusted earnings, excluding a net benefit from special items of $21 million after tax, stood at $124 million or $0.98 per diluted share. Further, Adjusted EBITDA for the Q1 2015, excluding special items, was $489 million compared to $362 million in the last year quarter.
- Liquidity Position - The Company's total equity for Q1 2015 amounted to $7.1 billion, an increase from $7.0 billion in Q4 2014. Cash and cash equivalents for the period declined from $1.0 billion in previous quarter to $0.5 billion in the reported period. In addition, working capital was recorded at $1.58 billion, compared with $1.61 billion in the previous quarter. Further, total net debt to capitalization ratio stood sequentially flat at 37% for Q1 2015.
- Refining Segment Performance - The Company's refining segment generated operating income of $190 million, higher than $185 million in Q1 2014. Total throughput of the segment declined from 817 million barrels per day (mbpd) in previous year quarter to 696 mbpd in Q1 2015. In addition, total yield stood at 738 mbpd, lower than 873 mbpd in prior year quarter. Further, refined product sales margin of the segment for the period was $9.02 per barrel, versus $9.53 per barrel in the same quarter last year.
- TLLP Segment Highlights - the TLLP segment of the Company contributed $108 million in the total segment operating income, higher than $60 million in Q1 2014. The segment generated adjusted EBITDA of $168 million with strong contributions from the Rockies natural gas business. Meanwhile, total revenue of TLLP grew from $127 million in previous year same quarter to $263 million in Q1 2015. Further, operating expenses and general and administrative expenses of the segment stood at $86 million and $25 million, respectively for the first quarter of 2015.
- Results of Retail Segment - The Company's retail segment generated operating income of $126 million, increasing significantly from $19 million in Q1 2014. Total average retail stations for the period were 2,261, compared to 2,270 in the previous year quarter. In addition, total fuel sales grew to 1,038 million of gallons from 995 million of gallons in prior year quarter. Further, total gross margins in Q1 2015 amounted to $208 million, compared with $113 million in last year quarter.
- Outlook for 2015 - The Company expects to deliver $550 million to $670 million of business improvement in 2015. Tesoro has anticipated EBITDA of around $800 million for the second quarter and approximately $2.6 billion for full year 2015. In addition, Tesoro expects second quarter utilization of 90% to 95% and the Tesoro Index to be averaged about $21/bbl.
To find out how this influences our rating on Tesoro Corporation read the full report in its entirety here: http://www.aciassociation.com/?c=TSO
About ACI Association:
Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.
ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.
ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.