| Tesoro to Restart Martinez Refinery, Prior Strike to Affect Q1 - Analyst Blog | |
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Independent refiner Tesoro Corporation TSO announced its decision to restart operations at the Martinez, CA refinery following certain agreements that it reached with the local union. Work had stopped at the refinery since Feb 1, due to a nationwide strike.
The refinery had been in the final stages of a major turnaround maintenance activity when the strike was called. The company expects the facility to reach normal operating levels in the next two weeks.
Tesoro added that it has come to an understanding with the unions at the Carson, CA and Anacortes, WA refineries as well. The company also expects to reach a settlement with the Mandan, ND and Salt Lake City, UT refineries in the next few days.
Tesoro stated that as a result of the strike, operating expenses are expected to increase from that in its previous guidance. Also, capture rates are expected to fall below the historical average for its West Coast system.
Tesoro anticipates operating costs per barrel from its California refinery to range between $7.70 and $7.95. Moreover, strike at Martinez and turnaround at Anacortes and Salt Lake City are anticipated to reduce capture rates by about $1.50–$2.00 per barrel in the first quarter of the year. However, the company expects an improvement in capture rates in the second quarter on completion of planned turnaround activities.
Also, idled operations and turnaround activities that resulted in higher-than-expected inventory build up are expected to consume a part of the working capital in the first quarter. However, from the second quarter onwards the working capital impact is expected to lessen as several refineries commence operations.
Currently, Tesoro Corporation holds a Zacks Rank #2 (Buy).
Other stocks that are worth considering from the same industry include Western Refining, Inc. WNR, Ferrellgas Partners LP FGP and Sprague Resources LP SRLP. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TESORO CORP (TSO): Free Stock Analysis Report FERRELLGAS -LP (FGP): Free Stock Analysis Report WESTERN REFING (WNR): Free Stock Analysis Report SPRAGUE RESRCS (SRLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Ferrellgas
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CODE : FGP |
ISIN : US3152931008 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Ferrellgas is a producing company based in United states of america. Ferrellgas is listed in United States of America. Its market capitalisation is US$ 31.1 millions as of today (€ 28.0 millions). Its stock quote reached its highest recent level on January 09, 2009 at US$ 9.98, and its lowest recent point on January 10, 2020 at US$ 0.20. Ferrellgas has 97 152 665 shares outstanding. |