EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1
 
4th Quarter and Full Year 2010
Earnings Slides
February 3, 2011
 
 
 
Forward Looking Statements
This Presentation includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements relate to, among other things,
projections of refining margins, debt reduction, cash flows and capital expenditures. We
have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may,"
"plan," "predict," "project," “should,” "will" and similar terms and phrases to identify
forward-looking statements in this Presentation.
Although we believe the assumptions upon which these forward-looking statements are
based are reasonable, any of these assumptions could prove to be inaccurate and the
forward-looking statements based on these assumptions could be incorrect. Our operations
involve risks and uncertainties, many of which are outside our control, and any one of which,
or a combination of which, could materially affect our results of operations and whether the
forward-looking statements ultimately prove to be correct.
Actual results and trends in the future may differ materially from those suggested or implied
by the forward-looking statements depending on a variety of factors which are described in
greater detail in our filings with the SEC. All future written and oral forward-looking
statements attributable to us or persons acting on our behalf are expressly qualified in their
entirety by the previous statements. We undertake no obligation to update any information
contained herein or to publicly release the results of any revisions to any forward-looking
statements that may be made to reflect events or circumstances that occur, or that we
become aware of, after the date of this Presentation.
2
 
 
 
1Q 2011 Guidance
3
 
Pacific
Northwest
Mid-
Pacific
Mid-
Continent
California
Throughput (mbpd)
125-135
65-75
100-110
245-255
Opex ($/bbl)
$ 4.30
$ 3.30
$ 3.65
$ 6.55
 $ in millions, unless noted
Corporate/System
Refining Depreciation
$ 95
Corporate Expense
 Before Depreciation
$ 38
Interest Expense
 Before Interest Income
$ 42
 
 
 
Net Income/(Loss)
4
EPS (Diluted)
 $ in millions, except per share amounts
4Q 2009
1Q 2010
2Q 2010
3Q 2010
4Q 2010
Refining
$ (213)
$ (169)
$ 150
$ 146
$128
Retail
41
24
30
32
11
Corporate and Unallocated
(50)
(57)
(37)
(49)
(69)
Interest and Financing Costs1
(28)
(37)
(36)
(39)
(43)
Interest Income (Expense) and Other2
1
-
-
4
(14)
Income Tax (Expense) / Benefit
70
84
(40)
(38)
(10)
Net Income / (Loss)
$ (179)
$ (155)
$ 67
$ 56
$ 3
EPS (Diluted)
$ (1.30)
$ (1.11)
$ 0.47
$ 0.39
$ 0.02
1 Interest and financing costs include foreign currency gains and losses.
2 Represents net amount of interest income and other expense, as reported.
 
 
 
4Q 2010 Gross Margin Reconciliation
5
 
$/bbl, unless noted
Reported Gross
Margin
LIFO
Hedge1
Revised Gross
Margin2
California
 
 
 
 
 
WC 3-2-13
12.77
 
 
12.77
 
Capture Rate4
96%
 
 
97%
 
Gross Margin
12.24
-
(0.11)
12.35
Pacific Northwest
 
 
 
 
 
PNW 5-3-1-13
12.79
 
 
12.79
 
Capture Rate4
114%
 
 
119%
 
Gross Margin
14.58
-
(0.62)
15.20
Mid-Pacific
 
 
 
 
 
PNW 5-3-1-13
12.79
 
 
12.79
 
Capture Rate4
37%
 
 
40%
 
Gross Margin
4.79
-
(0.27)
5.06
Mid-Continent
 
 
 
 
 
G3 3-2-13
9.22
 
 
9.22
 
Capture Rate4
161%
 
 
167%
 
Gross Margin
14.88
-
(0.55)
15.43
1 Hedge gains and losses are recorded primarily in the region in which the barrels are received.
2 Reported gross margin per barrel adjusted to exclude the impacts of our 2010 4th Quarter gains/(losses) on derivative positions.
3 For more information and detail on the benchmark crack spreads, please see the ‘Industry Differentials’ document in the Investors section of www.tsocorp.com.
4 Amounts may not recalculate due to rounding.
 
 
 
4Q 2010 Cash Flow
$ in millions
1 Includes $150 million borrowed on the TPSA revolving credit facility, utilized to fund TPSA inventory build during the quarter.
2 Interest paid is net of capitalized interest.
1
2
 
 
 
Throughput by Refining Region
Pacific Northwest
Mid-Pacific
Mid-Continent
California
7
 
 
 
Operating Expense by Refining Region
Pacific Northwest
Mid-Pacific
Mid-Continent
California
8
 
 
 
Stock-Based Compensation
9
$ in millions
Q1
Q2
Q3
Q4
Stock options
2
2
1
1
Restricted stock and units
3
5
3
3
Performance units
-
-
1
-
Stock appreciation rights
5
(4)
6
19
Phantom stock
3
(2)
3
7
 Total Stock-Based Compensation Expense
13
1
14
30
Change in Tesoro stock price during quarter
$ 0.35
$ (2.23)
$ 1.69
$ 5.18