Tesoro Logistics LP (NYSE:TLLP) is an American based limited partnership that was formed by Tesoro Corporation (TSO). The Limited Partnership was formed to purchase and run logistical assets for crude oil and refined products from crude oil. These assets include oil pipelines, oil gathering systems, storage facilities, and oil product terminals. Tesoro Logistics makes money by charging fees to Tesoro Corporation for the gathering, transportation, and storage of Tesoro Corporation's oil assets.
Tesoro Logistics has established a number of service agreements with Tesoro Corporation (TSO). This includes a 10-year agreement to gather, transport, terminal, and store the Corporations at the LP's existing facilities. Additionally, there is a two-year agreement that the Corporation will pay the LP fees for trucking oil in one of the areas of operation.
The company's initial public offering of stock on the NYSE occurred on April 19, 2011. The company offered 13M shares each for $21. This was at the high end of the $19-$21initial price range. This offering raised a total of $273M. The lead managers of the IPO were Citigroup (C), Wells Fargo (WFC), and Bank of America (BAC).
For the full year 2010, Tesero Logistics reported a total revenue of $23.3M. This was an increase from the $22.7M reported in 2009. However, the company reported a net loss of $20.9M in 2010 and a net loss of $21.9M in 2009.