Howard Weil Energy Conference

Monday, March 28, 2011

Greg Goff

President and CEO, Tesoro Corporation

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 ofrefining 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.

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•Focused in the western United States

–7 Refineries

–665,000 barrels per day capacity

–Nearly 1,200 retail stations branded
Tesoro®, Shell® and USA Gasoline™

•Operate in higher margin markets

•Refining-marketing integration in key
areas

•Logistics assets offer growth platform

•Access to growing Pacific Rim

About Tesoro

Kenai, AK

Mandan, ND

Salt Lake City, UT

Anacortes, WA

Martinez, CA

Wilmington, CA

Kapolei, HI

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Execution Delivers Improvement

•2010 EBITDA up 50%, despite

–Flat margin environment

–Throughput down 12%

•2011 consensus EBITDA up 90%

–Anacortes at planned rates

–Delivery of 2011 improvement plan

–Rebound in margin environment

Delivery of internal improvements driving results

EBITDA ($ in millions)

(1) 2011E EBITDA based on consensus First Call estimates, as of March 24, 2011

(1)

•Cautiously optimistic about improving
market conditions

•Opportunity to drive significant value from
existing assets, despite margins

•Our strategic priorities are clear, our plan is
focused and the organization is aligned

•Delivery will drive financial strength and
position Tesoro as an industry leader

•Enthusiastic about our future

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Key Messages

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Market Outlook

Key Drivers	Tesoro’s View
Economy	Slow U.S. recovery
World Oil Demand Growth	Gasoline ~1% and Diesel ~2% per year
U.S. Demand Growth	Gasoline ~0.3% and Diesel ~2% per year
Crude Oil Supply	Trending slightly lighter
Global Refining Capacity	Continues to exceed demand
Alternative Fuels, CAFE Standards	Driving lower US gasoline demand
Regulatory Environment	Continues to be a challenge

Source: Purvin & Gertz, PIRA, Tesoro

•Operational efficiency and effectiveness

–Safety and reliability

–System improvements

–Cost leadership

•Commercial excellence

•Financial discipline

•Value-driven growth

Strategic Priorities

•About 300 projects

•Average payback of less than 2 years

•Average project is about $1 million

•Focused on:

–Improving yields

–Reducing feedstock costs

–Reducing operating costs

–Expanding logistical infrastructure

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Income Capital

$ in millions

EBITDA

$ in millions

Operational Efficiency & EffectivenessHigh-Return Capital Investments

Integration
and Logistics

Yields/

Reliability

Costs

•Expand system supply and trading
activities around existing assets

•Drive regional and system
optimization

•Capture lower feedstock costs

•Capture higher product values

•Capture arbitrage, freight and
storage opportunities at Tesoro
Panama

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Commercial Excellence

•Exercise capital discipline

•Reduce total debt to total capitalization

•Strengthen the balance sheet

•Drive towards investment-grade credit rating

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Financial Discipline

Value-Driven Growth

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Financial strength facilitates focused strategic growth

•Base business improvements are key
to drive additional free cash flow

•Near-term growth focused on:

–Logistics

–Refining and marketing integration

•Strategic opportunities that are
accretive and create shareholder
value will be pursued

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in $ millions	Low	High
Operating Cost Reductions	70	80
Income Capital EBITDA	60	70
Improvement Initiatives	60	90
Overhead Cost Reductions	40	50
Commercial Excellence	30	45
Targeted EBITDA Growth	260	335
Higher Energy Costs	(25)	(20)
RINS Purchases	(55)	(45)
Targeted EBITDA Growth, net	180	270

2011 is year one of a multi-year improvement plan

Summary of 2011 Improvements

•Income capital is 25% of total

•Optimize regulatory spending,
maintain compliance

•Improved maintenance work
selection practices

Capital and Turnaround Summary

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TotalCapital

$ in millions

Turnaround

$ in millions

•Enhanced turnaround planning
allows us to optimize downtime
and cost

•Lower material and labor prices

287

380

390

350

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2009A

Note:Peer companies represented are Valero, Sunoco, Holly and Frontier. Based on SEC filings and company research.

Tesoro’s Advantage versus Peers

Execution positions Tesoro as an industry leader

•Targeting over $225 million of improvements in 2011

•Capital spending reduced $700 million over 4 years versus
2009 plan

•Focused on driving operating efficiency and effectiveness

•Improvements deliver significant free cash flow

•Our strategic priorities are clear, our plan is focused and the
organization is aligned

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Becoming an Industry Leader

We are committed to driving shareholder value