Tesoro Logistics LP logged higher net income in the fourth quarter in part because its pipelines handled greater volumes of crude oil from the Bakken Shale.
Demand for Bakken crude was strong, the San Antonio company said Monday.
Tesoro Logistics reported that its net income in the fourth quarter rose to $15.7 million, or 53 cents a unit, compared with net income of $9.3 million, or 37 cents, for the year-earlier period.bak
The results beat analysts’ estimates, as polled by Bloomberg News, that the company would earn 45 cents a unit.
Tesoro Logistics is a master limited partnership that owns pipelines, storage and terminals. San Antonio refiner Tesoro Corp. spun off Tesoro Logistics in April 2011.
Revenue for the fourth quarter rose to $47.7 million, slightly below analysts’ revenue estimate of $48.6 million.
“This was another strong quarter for TLLP (Tesoro Logistics) as we continued to capture the benefits of our growth strategy,” chairman and CEO Greg Goff said in a statement.
Goff also is CEO and president of Tesoro Corp.
The quarterly results included the first full quarter of its acquisition — from Tesoro Corp. — of assets in Long Beach, including a marine terminal, short-haul pipelines, and storage.
Also during the quarter, the company expanded its trucking fleet, and revenue – in addition to volume – increased in its crude oil gathering segment, driven by demand for Bakken crude.
The results also included results during the quarter of its purchase of a rail facility from Tesoro Corp. in Anacortes, Wash., for $180 million.
Distributable cash flow for the fourth quarter was $19.6 million. Last month, the company announced a quarterly cash distribution of $22.9 million, or 47.25 cents per unit, a 4 percent increase over the distribution paid in November.
For the year, the company’s net income was $55.5 million, or $1.89 a unit.
Tesoro Logistics also said its $400-million agreement to acquire Chevron Pipe Line Co.’s Northwest Products System is expected to close this month, subject to regulatory approval.