-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QASdEm9LMK9BH4CsMk21TCkbn62kKVspYel9oolKImwu/VHYv4k714lU7k94NN8L ulKaDH1teUyw8sy5CPOLJQ== 0000950134-02-000768.txt : 20020414 0000950134-02-000768.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950134-02-000768 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020130 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TESORO PETROLEUM CORP /NEW/ CENTRAL INDEX KEY: 0000050104 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 950862768 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03473 FILM NUMBER: 02525838 BUSINESS ADDRESS: STREET 1: 300 CONCORD PLAZA DRIVE CITY: SAN ANTONIO STATE: TX ZIP: 78216-6999 BUSINESS PHONE: 2108288484 MAIL ADDRESS: STREET 1: 300 CONCORD PLAZA DRIVE CITY: SAN ANTONIO STATE: TX ZIP: 78216-6999 8-K 1 d93915e8-k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (Date of earliest event reported): JANUARY 30, 2002 TESORO PETROLEUM CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-3473 95-0862768 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 300 CONCORD PLAZA DRIVE 78216-6999 SAN ANTONIO, TEXAS (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code: (210) 828-8484 ITEM 5. OTHER EVENTS Tesoro Petroleum Corporation ("Tesoro" or "the Company") is updating certain supplemental financial and operational data for both the fourth quarter and year ended December 31, 2001 through the Company's website. The Company's website is located at www.tesoropetroleum.com. This website data is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. Tesoro issued a Press Release on January 30, 2002 announcing its earnings for the fourth quarter and year ended December 31, 2001 and its capital spending plans for 2002. The Press Release is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information provided may contain forward-looking statements and certain assumptions upon which such forward-looking statements are in part based. This information should be read in conjunction with Tesoro's filings with the Securities and Exchange Commission ("SEC"), as well as with other publicly-disclosed information, such as media releases and conference calls. The Company expects that updates to the website information will be made through its periodic reports filed with the SEC and public releases; however, the Company undertakes no obligation to update any information contained on the website. Numerous important factors, including those factors identified as Risk Factors and Investment Considerations and Forward-Looking Statements in Tesoro's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other of the Company's filings with the Securities and Exchange Commission, and the fact that the assumptions set forth in the website data and Press Release could prove incorrect, could cause actual results to differ materially from those contained in such forward-looking statements. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Financial statements of businesses acquired. Not applicable. (b) Pro forma financial information. Not applicable. (c) Exhibits. 99.1 Website Data (as updated). 99.2 Press Release issued on January 30, 2002 by Tesoro Petroleum Corporation. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 4, 2002 TESORO PETROLEUM CORPORATION By: /s/ Gregory A. Wright ------------------------------------- Gregory A. Wright Senior Vice President and Chief Financial Officer 3 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 99.1 Website Data (as updated). 99.2 Press Release issued on January 30, 2002 by Tesoro Petroleum Corporation.
4 EX-99.1 3 d93915ex99-1.txt WEBSITE DATA EXHIBIT 99.1 TESORO PETROLEUM CORPORATION SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION INTRODUCTION Tesoro Petroleum Corporation ("Tesoro" or the "Company") is providing certain unaudited supplemental financial and operational information through this website. This information should be used in conjunction with Tesoro's filings with the Securities and Exchange Commission ("SEC"), as well as with other publicly-disclosed information, such as media releases and conference calls. This information also contains forward-looking information. The Company expects that updates to this information will be made through its periodic reports filed with the SEC and public releases; however, the Company undertakes no obligation to update any such information contained herein (see Forward-Looking Statements disclaimer at www.tesoropetroleum.com/forwardlooking.html). The information is organized into a number of sections. To proceed directly to a particular section, you may click on one of the hot links below. REFINERIES BY REGION TOTAL REFINERY SYSTEM RETAIL SYSTEM MARINE SERVICES CONSOLIDATED SUMMARY OF OPERATIONS CAPITAL EXPENDITURES MID-CONTINENT REFINERIES - HISTORICAL GLOSSARY OF TERMS CLEAN FUELS AND CLEAN AIR CAPITAL 1 TESORO PETROLEUM CORPORATION SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION GLOSSARY OF TERMS Branded Jobber/Dealer Stations - Retail stations owned by third parties that sell products purchased from or through the Company and carry one of the Company's brands (Tesoro, Tesoro Alaska or Amoco). Clean Fuels Capital - Capital expenditures required to meet Clean Air Act regulations related to reductions in emissions and new manufacturing standards required to reduce the sulfur content in gasoline starting January 1, 2004 and highway diesel fuels starting June 1, 2006. Company-Owned Stations - Retail stations owned by the Company. Discretionary Capital - Capital expenditures undertaken primarily for increased economic return on investment. EBITDA - Earnings before interest and financing costs, income taxes and depreciation and amortization. The Company uses EBITDA as a measure for internal analysis and in presentations to analysts, investors and lenders. The calculation of EBITDA is not based on accounting principles generally accepted in the United States ("U.S. GAAP") and should not be considered as an alternative to net earnings or cash flows from operating activities (which are determined in accordance with U.S. GAAP), as an indicator of operating performance or as a measure of liquidity. EBITDA may not be comparable to similarly titled measures used by other entities. EBITDA has been restated from the Company's other public documents to exclude interest income from EBITDA. Gross Refining Margin - Margin on products manufactured and purchased, including those sold to the Company's Retail System. Sales to the Retail System have been based on average bulk market prices adjusted for transportation and other differentials. Heavy Oils, Residual Products & Other - Product yields other than gasoline, jet fuel and diesel produced in the refining process. These include products such as residual fuels, gas oils, propane, and internally-produced fuel. Manufacturing Costs - Costs associated directly with the manufacturing process including cash operating expenses and non-cash amortization of maintenance turnaround costs, but excluding depreciation. Manufacturing costs also include costs of internally-produced fuel. Mbpd - Thousand barrels per day. Net Refining Margin - Gross Refining Margin minus Manufacturing Costs. Non-Discretionary Capital - Capital expenditures required for continuing operations. 2 TESORO PETROLEUM CORPORATION SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION Refining and Marketing - Includes the Refinery System and the Retail System described below. Refinery System - The Company's operations of refining crude oil and other feedstocks and wholesale marketing of refined products. It includes refinery operations, wholesale operations, product supply and distribution, and transportation operations. Retail System - The Company's system of selling gasoline to retail customers through an arrangement with Wal-Mart, through Company-Owned and operated sites, and through agreements with third-party Branded Jobbers/Dealers. It also includes merchandise sales through the Company's locations with convenience stores. Retail Fuel Margin - The margin on fuel products sold through the Company's Retail System. Costs of sales in fuel margin have been based on purchases from the Company's Refinery System, using average bulk market prices adjusted for transportation and other differentials. Retail Merchandise Margin - The margin on products and services, other than fuel, sold through the Company's Retail System. 3 REFINERIES BY REGION Exhibits 1 through 4 provide Tesoro's throughput, yields and gross refining margin by region as well as for Tesoro's total refinery system. Tesoro's regions are presented as follows: (1) Pacific Northwest (Tesoro's Alaska and Washington refineries combined); (2) Mid-Pacific (Tesoro's Hawaii refinery); and (3) Mid-Continent (Tesoro's North Dakota and Utah refineries combined). EXHIBIT 1 PACIFIC NORTHWEST REFINERIES (ALASKA & WASHINGTON)
2000 2001 1999 -------------------------------------- -------------------------------------- YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ THROUGHPUT (MBPD) Heavy Crude 35.9 57.0 60.2 60.7 59.3 59.3 77.9 71.0 76.8 85.9 77.9 Light Crude 106.0 78.3 103.7 104.0 97.0 95.8 73.7 91.0 94.7 74.7 83.6 Other Feedstocks 4.9 9.3 8.3 12.5 9.9 10.0 8.2 8.0 8.8 6.6 7.9 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL THROUGHPUT (MBPD) 146.8 144.6 172.2 177.2 166.2 165.1 159.8 170.0 180.3 167.2 169.4 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== YIELD (MBPD) Gasoline & Gasoline Blendstocks 71.4 67.7 78.1 78.6 72.6 74.2 70.1 73.1 75.5 73.8 73.1 Jet Fuel 29.7 27.1 33.4 32.9 32.3 31.4 29.0 27.0 30.4 27.0 28.4 Diesel Fuel 21.3 19.8 29.8 31.9 28.3 27.5 22.3 30.8 35.2 29.5 29.5 Heavy Oils, Residual Products & Other 29.7 36.1 37.0 39.3 39.2 38.0 44.5 44.2 45.2 43.6 44.3 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL YIELD (MBPD) 152.1 150.7 178.3 182.7 172.4 171.1 165.9 175.1 186.3 173.9 175.3 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== GROSS REFINING MARGIN ($/THROUGHPUT BBL) $ 6.55 $ 8.02 $ 6.41 $ 9.00 $ 8.11 $ 7.89 $ 8.04 $ 8.16 $ 7.69 $ 5.82 $ 7.42
NOTES: Scheduled maintenance turnarounds were as follows: *Alaska in 2Q 1999 and 2Q 2001 *Washington in 4Q 1999 Next turnarounds are scheduled as follows: *Washington in 1Q 2002 and 3Q 2003 *Alaska in 2Q 2003 The distillate treater at the Company's Washington refinery was placed in service during December 1999. The Company commenced a heavy oil conversion project at its Washington refinery in 2000, which will enable the Company to manufacture a larger proportion of higher-value gasoline and to reduce production of lower-value heavy products. The Company expects to spend approximately $109 million (including capitalized interest) for this project, of which $97 million had been spent through December 31, 2001. The first stage of the project, the installation of a de-asphalting unit, was completed in late September 2001. Management expects the upgrade of the fluid catalytic cracking unit, the final major component of the heavy oil conversion project, to be operational in March 2002. Updated on 2/4/02 (Unaudited) EXHIBIT 2 MID-PACIFIC REFINERY (HAWAII)
2000 2001 1999 -------------------------------------- -------------------------------------- YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ THROUGHPUT (MBPD) Heavy Crude 45.7 49.1 47.1 45.9 44.9 46.7 61.1 47.0 47.2 56.8 53.0 Light Crude 41.2 36.7 33.6 33.3 47.1 37.7 25.6 42.5 40.3 28.0 34.1 Other Feedstocks -- -- -- -- -- -- -- -- -- -- -- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL THROUGHPUT (MBPD) 86.9 85.8 80.7 79.2 92.0 84.4 86.7 89.5 87.5 84.8 87.1 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== YIELD (MBPD) Gasoline & Gasoline Blendstocks 21.5 23.2 21.9 20.2 17.6 20.8 18.4 18.6 20.3 22.0 19.8 Jet Fuel 28.6 26.9 24.1 23.7 30.0 26.2 29.0 31.1 25.8 24.2 27.5 Diesel Fuel 11.4 10.2 12.0 9.7 15.2 11.7 11.9 14.1 15.4 14.7 14.0 Heavy Oils, Residual Products & Other 30.2 27.0 23.5 26.9 29.9 26.8 28.4 27.0 26.9 24.8 26.8 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL YIELD (MBPD) 91.7 87.3 81.5 80.5 92.7 85.5 87.7 90.8 88.4 85.7 88.1 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== GROSS REFINING MARGIN ($/THROUGHPUT BBL) $ 4.46 $ 4.03 $ 5.15 $ 3.07 $ 6.70 $ 4.80 $ 5.94 $ 4.84 $ 5.72 $ 6.95 $ 5.85
NOTES: Scheduled maintenance turnaround was held in 3Q 2000. Next turnaround is planned for 3Q 2003. Updated on 2/4/02 (Unaudited) EXHIBIT 3 MID-CONTINENT REFINERIES (NORTH DAKOTA & UTAH)
2001 ------------------------------ MONTH SEPT. 4Q YEAR -------- -------- -------- THROUGHPUT (MBPD)(a) Heavy Crude -- -- -- Light Crude 105.6 103.6 104.0 Other Feedstocks 0.2 1.2 1.0 -------- -------- -------- TOTAL THROUGHPUT (MBPD) 105.8 104.8 105.0 ======== ======== ======== YIELD (MBPD)(a) Gasoline & Gasoline Blendstocks 55.7 54.5 54.7 Jet Fuel 9.5 11.3 10.9 Diesel Fuel 30.3 28.8 29.1 Heavy Oils, Residual Products & Other 13.2 14.1 14.0 -------- -------- -------- TOTAL YIELD(MBPD) 108.7 108.7 108.7 ======== ======== ======== GROSS REFINING MARGIN ($/THROUGHPUT BBL)(b) $ 12.91 $ 6.90 $ 8.19
NOTES: (a) The Mid-Continent refineries were acquired from BP p.l.c. on September 6, 2001. The volumes and margins for 2001 include amounts since the date of acquisition. (b) The Mid-Continent refineries contributed $13 million and $19 million to Tesoro's operating profit in the 3Q and 4Q of 2001, respectively. Next maintenance turnarounds are scheduled as follows: *North Dakota in 3Q 2003 *Utah in 1Q 2003 See Exhibit 9 for historical and pro forma information related to the acquired assets. Updated on 2/4/02 (Unaudited) EXHIBIT 4 TOTAL REFINERY SYSTEM
2000 2001 1999 -------------------------------------- -------------------------------------- YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ THROUGHPUT (MBPD)(a) Heavy Crude 81.6 106.1 107.3 106.6 104.2 106.0 139.0 118.0 124.0 142.7 130.9 Light Crude 147.2 115.0 137.3 137.3 144.1 133.5 99.3 133.5 163.7 206.3 151.0 Other Feedstocks 4.9 9.3 8.3 12.5 9.9 10.0 8.2 8.0 8.8 7.8 8.2 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL THROUGHPUT (MBPD) 233.7 230.4 252.9 256.4 258.2 249.5 246.5 259.5 296.5 356.8 290.1 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== YIELD (MBPD)(a) Gasoline & Gasoline Blendstocks 92.9 90.9 100.0 98.8 90.2 95.0 88.5 91.7 110.9 150.3 110.5 Jet Fuel 58.3 54.0 57.5 56.6 62.3 57.6 58.0 58.1 58.8 62.5 59.4 Diesel Fuel 32.7 30.0 41.8 41.6 43.5 39.2 34.2 44.9 58.8 73.0 52.9 Heavy Oils, Residual Products & Other 59.9 63.1 60.5 66.2 69.1 64.8 72.9 71.2 75.7 82.5 75.5 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL YIELD (MBPD) 243.8 238.0 259.8 263.2 265.1 256.6 253.6 265.9 304.2 368.3 298.3 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== REFINING MARGIN ($/THROUGHPUT BBL) Gross $ 5.89 $ 6.54 $ 6.01 $ 7.16 $ 7.60 $ 6.84 $ 7.30 $ 7.01 $ 7.61 $ 6.40 $ 7.04 Other Manufacturing Costs(b) 2.98 2.90 2.76 2.82 2.93 2.85 3.44 2.94 2.87 3.17 3.10 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Net $ 2.91 $ 3.64 $ 3.25 $ 4.34 $ 4.67 $ 3.99 $ 3.86 $ 4.07 $ 4.74 $ 3.23 $ 3.94 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
NOTES: (a) Volumes for 2001 include amounts for North Dakota and Utah operations since their acquisition on September 6, 2001 averaged over the periods presented (28.7 Mbpd in throughput and 29.5 Mbpd in yield in 3Q01; 104.8 Mbpd in throughput and 108.7 Mbpd in yield in 4Q01; 33.7 Mbpd in throughput and 34.8 Mbpd in yield for the year 2001). For the first 25 days of operations in 3Q01, refinery throughput and yield averaged 105.8 Mbpd and 108.7 Mbpd, respectively. For the 117 days in operations during the year 2001, refinery throughput and yield averaged 105.0 Mbpd and 108.7 Mbpd, respectively. The classification of crude oil between heavy crude and light crude has been revised for Mid-Continent refineries resulting in heavy crude throughput percentages for the total refinery system in 2001 to 42% for 3Q, 40% for 4Q and 45% for the year. (b) Excludes depreciation, but includes non-cash amortization of major maintenance costs. Also includes costs of internally-produced fuel. Updated on 2/4/02 (Unaudited) EXHIBIT 5 RETAIL SYSTEM
2000 2001 1999 ------------------------------------------- ------------------------------------------- YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NUMBER OF STATIONS (END OF PERIOD) Company-Owned 62 63 63 69 83 83 94 116 163 213 213 Branded Jobber/Dealer 182 183 200 201 193 193 183 184 487 464 464 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total Stations 244 246 263 270 276 276 277 300 650 677 677 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= AVERAGE STATIONS (DURING PERIOD) Company-Owned 61 62 63 66 76 68 90 106 128 196 132 Branded Jobber/Dealer 177 183 192 201 197 192 187 183 260 475 274 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total Average Retail Stations 238 245 255 267 273 260 277 289 388 671 406 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= FUEL VOLUME (THOUSANDS OF GALLONS) Company-Owned Stations 93,513 22,932 23,696 25,889 26,662 99,179 34,776 44,717 57,574 72,643 209,710 Branded Jobber/Dealer Stations 105,777 25,990 30,576 34,776 24,343 115,685 26,460 29,429 48,686 81,530 186,106 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Volume - Total Stations 199,290 48,922 54,272 60,665 51,005 214,864 61,236 74,146 106,260 154,173 395,816 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= FUEL VOLUME (THOUSANDS OF GALLONS/MONTH/AVERAGE STATION) Company-Owned Stations 126.7 123.3 125.4 130.8 116.9 121.5 128.2 140.6 149.4 123.5 132.8 Branded Jobber/Dealer Stations 49.9 47.5 53.2 57.8 41.2 50.3 47.3 53.6 62.5 57.2 56.6 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Average Volume - Total Stations 69.8 66.7 71.1 75.9 62.3 68.9 73.7 85.5 91.2 76.6 81.3 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= RETAIL FUEL MARGIN ($/GALLON) $ 0.18 $ 0.09 $ 0.22 $ 0.10 $ 0.27 $ 0.17 $ 0.24 $ 0.25 $ 0.18 $ 0.22 $ 0.22 RETAIL MERCHANDISE MARGIN (IN MILLIONS) $ 15.7 $ 3.9 $ 4.4 $ 4.6 $ 4.0 $ 16.9 $ 4.0 $ 4.8 $ 6.0 $ 5.4 $ 20.2 RETAIL MERCHANDISE MARGIN % 31% 32% 32% 32% 30% 32% 31% 31% 32% 26% 30% OTHER NON-FUEL MARGIN (IN MILLIONS) $ 1.3 $ 0.4 $ 0.3 $ 0.6 $ 0.7 $ 2.0 $ 0.5 $ 0.6 $ 0.6 $ 0.6 $ 2.3
NOTES: On September 6, 2001, Tesoro acquired 42 company-owned stations from BP p.l.c. and agreements to supply over 280 jobber/dealer sites. The above information includes those sites from the acquisition date. In addition, the Company purchased 46 retail fueling facilities, including 37 retail stations with convenience stores and nine commercial cardlock facilities, located in Washington, Oregon and Idaho in the 4Q of 2001. Updated on 2/4/02 (Unaudited) EXHIBIT 6 MARINE SERVICES ($ in millions)
2000 2001 1999 -------------------------------------- -------------------------------------- YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ FUEL SALES (MILLIONS OF GALLONS) 148.3 41.5 42.5 41.1 44.9 170.0 42.3 45.1 44.6 38.8 170.8 SERVICE REVENUES $ 11.7 $ 3.2 $ 3.1 $ 3.5 $ 3.5 $ 13.3 $ 3.5 $ 4.4 $ 3.9 $ 3.1 $ 14.9 EBITDA $ 8.5 $ 4.4 $ 2.6 $ 3.6 $ 2.5 $ 13.1 $ 3.4 $ 4.0 $ 3.9 $ 1.4 $ 12.7
NOTES: 1Q 2000 EBITDA included other income of $1.2 million from settlement of a service contract. Updated on 2/4/02 (Unaudited) EXHIBIT 7 CONSOLIDATED SUMMARY OF OPERATIONS ($ millions except per unit amounts)
2000 2001 1999 ---------------------------------------- ------------------------------------------- YEAR(a) 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- REFINING AND MARKETING Refinery System Gross refining margin ($/bbl) $ 5.89 $ 6.54 $ 6.01 $ 7.16 $ 7.60 $ 6.84 $ 7.30 $ 7.01 $ 7.61 $ 6.40 $ 7.04 Throughput (Mbpd) 233.7 230.4 252.9 256.4 258.2 249.5 246.5 259.5 296.5 356.8 290.1 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total gross refining margin before inventory changes 502.3 137.0 138.2 169.1 180.5 624.8 161.8 165.5 207.6 210.1 745.0 Impact of inventory changes(b) 6.5 (2.5) 4.5 2.2 (17.7) (13.5) 1.6 (0.8) (7.6) (17.0) (23.8) Expenses 363.7 92.7 96.4 99.7 97.9 386.7 104.7 99.7 109.1 142.5 456.0 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- REFINERY SYSTEM OPERATING EBITDA 145.1 41.8 46.3 71.6 64.9 224.6 58.7 65.0 90.9 50.6 265.2 RETAIL SYSTEM Gross fuel margin ($/gallon) $ 0.18 $ 0.09 $ 0.22 $ 0.10 $ 0.27 $ 0.17 $ 0.24 $ 0.25 $ 0.18 $ 0.22 $ 0.22 Total gallons of fuel sold (millions) 199.3 48.9 54.3 60.7 51.0 214.9 61.2 74.1 106.3 154.2 395.8 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total gross fuel margin 36.5 4.6 11.8 6.2 14.0 36.6 14.5 18.9 18.8 34.5 86.7 Merchandise and other non-fuel margin 17.0 4.3 4.7 5.2 4.7 18.9 4.5 5.4 6.6 6.0 22.5 Expenses 35.6 11.2 13.0 11.5 14.9 50.6 14.2 15.1 18.2 25.7 73.2 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- RETAIL SYSTEM OPERATING EBITDA 17.9 (2.3) 3.5 (0.1) 3.8 4.9 4.8 9.2 7.2 14.8 36.0 TOTAL REFINING AND MARKETING EBITDA 163.0 39.5 49.8 71.5 68.7 229.5 63.5 74.2 98.1 65.4 301.2 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- MARINE SERVICES EBITDA 8.5 4.4 2.6 3.6 2.5 13.1 3.4 4.0 3.9 1.4 12.7 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- CORPORATE EBITDA(c) (41.0) (10.0) (9.8) (12.8) (11.1) (43.7) (11.4) (11.7) (17.4) (17.3) (57.8) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- CONSOLIDATED EBITDA(d) 130.5 33.9 42.6 62.3 60.1 198.9 55.5 66.5 84.6 49.5 256.1 DEPRECIATION EXPENSE Refinery System (29.3) (7.8) (7.8) (8.7) (9.5) (33.8) (7.9) (7.6) (9.1) (16.1) (40.7) Retail System (8.6) (1.5) (1.5) (1.6) (2.0) (6.6) (2.8) (1.9) (2.2) (4.2) (11.1) Marine Services (2.6) (0.6) (0.6) (0.7) (0.8) (2.7) (0.7) (0.7) (0.7) (0.7) (2.8) Corporate (2.4) (0.6) (0.6) (0.6) (0.6) (2.4) (0.6) (0.7) (0.7) (0.8) (2.8) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- TOTAL DEPRECIATION EXPENSE (42.9) (10.5) (10.5) (11.6) (12.9) (45.5) (12.0) (10.9) (12.7) (21.8) (57.4) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- OPERATING INCOME 87.6 23.4 32.1 50.7 47.2 153.4 43.5 55.6 71.9 27.7 198.7 Interest & Financing Costs Before Capitalized Interest (38.2) (9.6) (8.4) (7.8) (7.6) (33.4) (8.4) (8.2) (19.1) (22.2) (57.9) Less: Capitalized Interest on Major Projects 0.6 -- 0.1 0.1 0.5 0.7 0.9 1.6 1.8 0.8 5.1 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Net Interest & Financing Costs (37.6) (9.6) (8.3) (7.7) (7.1) (32.7) (7.5) (6.6) (17.3) (21.4) (52.8) Interest Income 1.2 1.5 0.3 0.4 0.6 2.8 0.3 0.2 0.1 0.4 1.0 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- EARNINGS BEFORE INCOME TAXES 51.2 15.3 24.1 43.4 40.7 123.5 36.3 49.2 54.7 6.7 146.9 Income Tax Provision (19.0) (6.0) (9.5) (18.4) (16.3) (50.2) (14.6) (19.7) (21.9) (2.7) (58.9) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET EARNINGS 32.2 9.3 14.6 25.0 24.4 73.3 21.7 29.5 32.8 4.0 88.0 Preferred Dividends (12.0) (3.0) (3.0) (3.0) (3.0) (12.0) (3.0) (3.0) -- -- (6.0) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET EARNINGS TO COMMON $ 20.2 $ 6.3 $ 11.6 $ 22.0 $ 21.4 $ 61.3 $ 18.7 $ 26.5 $ 32.8 $ 4.0 $ 82.0 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= AVERAGE DILUTED SHARES (IN MILLIONS) 32.8 32.3 41.7 41.4 41.4 41.8 41.8 42.3 41.7 41.9 41.9 DILUTED EPS $ 0.62 $ 0.20 $ 0.35 $ 0.60 $ 0.59 $ 1.75 $ 0.52 $ 0.70 $ 0.79 $ 0.10 $ 2.10
NOTES: (a) Excludes discontinued E&P operations that were sold in 1999. (b) Represents adjustments due to selling a volume and mix of product that is different than actual products manufactured. Refined product inventories totaled 5.8 million barrels, 7.0 million barrels and 10.3 million barrels at 12/31/99, 12/31/00 and 12/31/01, respectively. In 2001, the Washington refinery increased product inventory to meet demand during the 1Q 2002 turnaround, and inventories were rebuilt at refineries and terminals acquired from BP p.l.c. in September 2001. (c) Includes corporate general and administrative expenses and other expense. (d) Consolidated EBITDA has been restated from the Company's other public documents to exclude interest income from EBITDA. Updated on 2/4/02 (Unaudited) EXHIBIT 8 CAPITAL EXPENDITURES ($ millions)
2000 2001 1999 -------------------------------------- -------------------------------------- YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 3Q 4Q YEAR ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ REFINING AND MARKETING REFINERY SYSTEM(a) Pacific Northwest Discretionary $ 23.9 $ 2.0 $ 3.2 $ 6.7 $ 16.0 $ 27.9 $ 22.4 $ 31.4 $ 30.9 $ 14.8 $ 99.5 Non-Discretionary 19.2 2.2 3.4 4.4 8.2 18.2 3.4 5.5 9.5 10.7 29.1 Mid-Pacific Discretionary 7.7 1.2 1.2 1.5 2.3 6.2 0.2 0.7 0.7 1.8 3.4 Non-Discretionary 3.9 1.1 0.7 0.8 1.6 4.2 0.5 1.2 0.6 0.7 3.0 Mid-Continent Discretionary -- -- -- -- -- -- -- -- -- 1.7 1.7 Non-Discretionary -- -- -- -- -- -- -- -- 0.4 2.9 3.3 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL REFINERY SYSTEM 54.7 6.5 8.5 13.4 28.1 56.5 26.5 38.8 42.1 32.6 140.0 RETAIL SYSTEM(a)(b) Discretionary 13.8 0.9 4.6 3.9 20.2 29.6 4.1 6.3 8.1 15.2 33.7 Non-Discretionary 3.9 -- 0.5 0.1 0.8 1.4 1.5 1.1 1.9 5.0 9.5 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL RETAIL SYSTEM 17.7 0.9 5.1 4.0 21.0 31.0 5.6 7.4 10.0 20.2 43.2 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL REFINING AND MARKETING 72.4 7.4 13.6 17.4 49.1 87.5 32.1 46.2 52.1 52.8 183.2 MARINE SERVICES 1.5 1.4 0.5 0.3 1.0 3.2 0.2 0.8 1.3 0.8 3.1 CORPORATE(b) 10.8 0.5 0.1 1.5 1.2 3.3 1.2 1.4 16.4 4.2 23.2 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL CAPITAL EXPENDITURES $ 84.7 $ 9.3 $ 14.2 $ 19.2 $ 51.3 $ 94.0 $ 33.5 $ 48.4 $ 69.8 $ 57.8 $209.5 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== TOTAL NON-DISCRETIONARY CAPITAL (PRESENTED ABOVE) $ 27.0 $ 3.3 $ 4.6 $ 5.3 $ 10.6 $ 23.8 $ 5.4 $ 7.8 $ 12.4 $ 19.3 $ 44.9 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
NOTES: (a) Capital expenditures exclude amounts for the acquisition of refining, marketing and pipeline assets from BP in 2001 and certain retail assets acquired in the fourth quarter of 2001. (b) Certain costs have been reclassified between Corporate and Retail. Updated on 2/4/02 (Unaudited) MID-CONTINENT REFINERIES - HISTORICAL On September 6, 2001, Tesoro acquired two refineries in North Dakota and Utah and related storage, distribution and retail assets from certain affiliates of BP p.l.c. The acquisitions increased the Company's number of refineries from three to five, with aggregate refining capacity rising from 275,000 barrels per day ("bpd") to 390,000 bpd, and increased the Company's retail gas station network from approximately 300 stations to 650 stations. In addition, on November 1, 2001, the Company acquired a crude oil gathering and transmission system located in Montana and North Dakota, which provides crude oil to the North Dakota refinery. EXHIBIT 9 MID-CONTINENT REFINERIES (NORTH DAKOTA & UTAH) - HISTORICAL
2000 2001 1999 -------------------------------------- ---------------------- HISTORICAL DATA OF NEWLY-ACQUIRED ASSETS(a) YEAR 1Q 2Q 3Q 4Q YEAR 1Q 2Q 1H ------ ------ ------ ------ ------ ------ ------ ------ ------ THROUGHPUT (MBPD) Crude Oil 100.5 89.7 92.0 104.2 101.6 96.9 95.8 104.5 100.2 Other 4.7 5.3 4.1 4.8 5.3 4.8 5.8 4.2 5.0 ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL THROUGHPUT (MBPD) 105.2 95.0 96.1 109.0 106.9 101.7 101.6 108.7 105.2 ====== ====== ====== ====== ====== ====== ====== ====== ====== YIELD (MBPD) Gasoline & Gasoline Blendstocks 60.6 56.8 54.2 60.7 60.5 58.2 56.2 58.0 57.1 Jet Fuel 12.0 9.4 10.0 11.5 9.3 10.0 8.5 8.8 8.7 Diesel Fuel 27.8 24.8 25.9 30.3 31.8 28.2 29.3 34.4 31.9 Heavy Oils, Residual Products & Other 4.8 3.7 5.1 5.3 5.9 5.0 6.1 5.4 5.8 ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL YIELD (MBPD) 105.2 94.7 95.2 107.8 107.5 101.4 100.1 106.6 103.5 ====== ====== ====== ====== ====== ====== ====== ====== ======
YEAR 1H TESORO PRO FORMA FOR THE ACQUIRED ASSETS(b) 2000 2001 ------ ------ TOTAL REFINERY SYSTEM THROUGHPUT (MBPD) 352 358 TOTAL REFINERY SYSTEM YIELD (MBPD) 358 363 CONSOLIDATED REVENUES (IN MILLIONS) $6,588 $3,253 CONSOLIDATED EBITDA (IN MILLIONS) $ 318 $ 217
NOTES: (a) The historical data above represents information prior to Tesoro's acquisition of these assets from BP. Results from these acquired assets are included in Tesoro's consolidated financials since the date of acquisition, or September 6, 2001. Results from the crude gathering and pipeline system are included in Tesoro's results from the date of acquisition on November 1, 2001. Gross refining margins per barrel for this region were approximately $5.23 for the year 1999, $6.36 for the year 2000, and $8.28 for the first half of 2001. Margins were derived from historical BP financial statements and were not calculated in the same manner as Tesoro's other refineries. (b) The unaudited pro forma information gives effect to the acquisitions of the BP assets (including the crude gathering and pipeline system) and the effect of the Company's recent financings and notes offering, as if these transactions had occurred on January 1, 2000. The unaudited pro forma information is not necessarily indicative of the results that actually would have been achieved had these transactions been consummated on January 1, 2000, or that may be achieved in the future. Prepared on 11/26/01 (Unaudited) CLEAN FUELS AND CLEAN AIR CAPITAL Exhibit 10 contains the Company's preliminary estimates of its capital requirements to meet new Clean Fuels and Clean Air standards. Actual expenditures, and the timing of these expenditures, will likely differ from these estimates due to a number of factors, including, among others, the final selections of technology, equipment design changes, regional variations in requirements, implementation of other refinery improvements, and other factors which are beyond the Company's control (see Forward-Looking Statements disclaimer at www.tesoropetroleum.com/forwardlooking.html). EXHIBIT 10 CLEAN FUELS AND CLEAN AIR CAPITAL ($ in millions)
YEAR YEAR YEAR YEAR YEAR BEYOND 2002 2003 2004 2005 2006 2006 ------ ------ ------ ------ ------ ------ ESTIMATED CLEAN FUELS CAPITAL LOW SULPHUR GASOLINE Alaska $ -- $ -- $ -- $ -- $ -- $ -- Hawaii -- -- -- -- -- -- Washington 1.5 12.5 12.0 20.0 6.0 -- North Dakota -- 1.0 1.0 6.0 5.0 -- Utah -- -- -- -- -- 15.0 ------ ------ ------ ------ ------ ------ TOTAL FOR GASOLINE 1.5 13.5 13.0 26.0 11.0 15.0 ------ ------ ------ ------ ------ ------ LOW SULPHUR DIESEL Alaska -- -- -- -- -- -- Hawaii -- -- -- -- -- -- Washington -- -- -- -- -- 30.0 North Dakota -- -- -- 4.0 -- -- Utah* 2.0 15.0 14.0 -- -- -- ------ ------ ------ ------ ------ ------ TOTAL FOR DIESEL 2.0 15.0 14.0 4.0 -- 30.0 ------ ------ ------ ------ ------ ------ TOTAL ESTIMATED CLEAN FUELS CAPITAL 3.5 28.5 27.0 30.0 11.0 45.0 TOTAL ESTIMATED CLEAN AIR CAPITAL (MACT II) -- 2.0 7.5 18.0 7.5 -- ------ ------ ------ ------ ------ ------ TOTAL $ 3.5 $ 30.5 $ 34.5 $ 48.0 $ 18.5 $ 45.0 ====== ====== ====== ====== ====== ======
* Contains capital in 2003 and 2004 required to meet Clean Fuels standards, but which the Company believes will provide economic benefits. This exhibit contains forward-looking information (see Forward-Looking Statements disclaimer at www.tesoropetroleum.com/forwardlooking.html). Updated on 2/4/02 (Unaudited) EX-99.2 4 d93915ex99-2.txt PRESS RELEASE EXHIBIT 99.2 [TESORO LOGO] FOR IMMEDIATE RELEASE CONTACT: JOHN ROBERTSON, DIRECTOR INVESTOR RELATIONS, (210) 283-2687 TARA FORD, DIRECTOR PUBLIC RELATIONS, (210) 283-2676 TESORO REPORTS RECORD FULL-YEAR 2001 EARNINGS SAN ANTONIO - JANUARY 30, 2002 - Tesoro Petroleum Corporation (NYSE:TSO) today reported record net earnings for 2001 of $88.0 million or $2.10 per diluted share, an increase of 20 percent compared to year ago net earnings of $73.3 million or $1.75 per diluted share. Fourth-quarter 2001 net earnings of $4.0 million or $0.10 per diluted share compared to net earnings of $24.4 million or $0.59 per diluted share for the fourth quarter of 2000. "I am very proud of how we executed our 2001 business plan and that we delivered on the earnings growth that marked Tesoro's sixth consecutive annual earnings increase," said Bruce A. Smith, Chairman, President and CEO of Tesoro. "Driven by improved industry fundamentals, our growth initiative and asset realignment, we reached the high end of our earnings target for 2001 and added another $0.14 per share from recently acquired operations." Full-year 2001 operating profit from the Company's Refining and Marketing operations increased 32 percent to a record $249.4 million compared to last year's operating profit record of $189.1 million. This improvement was primarily a result of higher refined product margins, increased refining throughput, improved operating performance and incremental operating profit from acquisitions. Page 2 of 4 Tesoro Reports Full Year Earnings Operating expenses increased over last year's level reflecting the addition of two refineries, eight terminals, 130 company-owned retail sites and 1,100 miles of pipelines. General and administrative and interest expenses also increased over last year due to the asset acquisitions and related business expansion. FOURTH QUARTER RESULTS Refining and Marketing operating profit in the fourth quarter was $45.1 million versus $57.2 million for the fourth quarter of 2000. "This drop was due primarily to the decline in our realized refining margin as the overall weak economy and unseasonably warm weather caused margin erosion compared to the 2000 quarter, which was seasonally strong. Partially offsetting the drop in spreads was $19 million in incremental operating profit from acquisitions. This demonstrates the benefits of growing our business along with the geographic diversity our Company has achieved this year," added Smith. 2002 CAPITAL BUDGET Tesoro's Board of Directors has approved a $150 million capital budget for 2002, which is approximately 28 percent less than the $210 million spent in 2001. "We are continuing to focus on growing shareholder value through improved operations and accretive acquisitions, which will necessitate, strong capital stewardship. Tesoro will continue to grow and is well positioned to benefit from further industry consolidation in the future," said Smith. Capital budget for Refining and Marketing operations is planned at $129 million, including $72 million for refinery projects and $57 million for retail projects. Included in refinery projects are $29 million of economic capital, $26 million of sustaining capital and $17 million of compliance capital. Approximately 45 percent of the $29 million in Page 3 of 4 Tesoro Reports Full Year Earnings economic capital will be used to complete the Company's heavy oil conversion project at its Washington refinery. This project is slated to be completed in March. Tesoro's Mirastar program accounts for approximately 60 percent of its retail capital budget. The Company estimates it will build 50 additional Mirastar sites during 2002. The remainder of the retail capital is divided between other company-owned stores and the expansion of the Company's branded dealer network. FIRST QUARTER 2002 OUTLOOK Looking ahead to the first quarter of 2002 and beyond, industry refining margins are improving from the lows seen in December and January. Annual throughput in 2002 for Tesoro's combined refinery system is targeted to average approximately 373,000 barrels per day, including 179,000 barrels per day for the Company's Northwest refineries, 86,000 barrels per day for its Hawaii Refinery and 108,000 barrels per day for its Mid-Continent refineries. Throughput for the first quarter is expected to be about 340 to 345 thousand barrels per day principally due to the planned turnaround at the Washington refinery. PUBLIC INVITED TO LISTEN TO ANALYST CONFERENCE CALL VIA INTERNET At 2 p.m., CST, Wednesday, January 30, 2002 Tesoro will broadcast, live, its conference call with analysts regarding fourth quarter earnings. Interested parties may listen to the live conference call over the Internet by logging on to Tesoro's Internet site at http://www/tesoropetroleum.com and clicking on the "What's New" section. Tesoro Petroleum Corporation is an independent refiner and marketer of petroleum products and provider of marine logistics services. Tesoro operates five refineries in the western U.S. with a combined capacity of 390,000 barrels per day. Tesoro's growing retail marketing system includes more than 600 branded retail stations, Page 4 of 4 Tesoro Reports Full Year Earnings of which approximately 200 are company owned and operated under the Tesoro and Mirastar brand. This news release contains certain statements that are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements contain expectations of future capital spending, performance of the heavy oil conversion project and refining throughput. Factors which may cause actual results to differ from those forward-looking statements include: changes in general economic conditions, the timing and extent of changes in demand for refined products, availability and cost of crude oil, other feedstocks, or of refined products, the price differentials between light and heavy crude oils and light and heavy refined products, throughput and yield levels, disruptions due to equipment interruptions or failure at Company or third-party facilities, execution of planned capital projects and other factors beyond the Company's control. For more information concerning factors that could cause such a difference, see the company's annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances that occur, or which the Company becomes aware of, after the date hereof. ### TESORO PETROLEUM CORPORATION FINANCIAL AND OPERATING DATA (CONDENSED AND UNAUDITED) (Dollars in millions except per unit amounts)
THREE MONTHS ENDED YEARS ENDED DECEMBER 31, DECEMBER 31, ---------------------- ---------------------- 2001 2000 2001 2000 --------- --------- --------- --------- REVENUES Refining and Marketing: Refined products .............................................. $ 1,163.2 $ 1,239.1 $ 4,711.9 $ 4,536.0 Other, primarily crude oil resales and merchandise ............ 82.6 142.9 333.4 381.6 Marine Services .................................................... 33.1 54.3 172.5 186.8 --------- --------- --------- --------- Total Revenues ............................................ $ 1,278.9 $ 1,436.3 $ 5,217.8 $ 5,104.4 ========= ========= ========= ========= SUMMARY OF OPERATIONS Operating Profit: Refining and Marketing ........................................ $ 45.1 $ 57.2 $ 249.4 $ 189.1 Marine Services ............................................... 0.7 1.7 9.9 10.4 --------- --------- --------- --------- Total Operating Profit .................................... 45.8 58.9 259.3 199.5 General and Administrative Expenses ................................ (16.2) (11.3) (53.6) (40.3) Interest and Financing Costs, Net of Capitalized Interest .......... (21.4) (7.1) (52.8) (32.7) Interest Income .................................................... 0.4 0.6 1.0 2.8 Other Expenses ..................................................... (1.9) (0.4) (7.0) (5.8) --------- --------- --------- --------- Earnings Before Income Tax Provision .......................... 6.7 40.7 146.9 123.5 Income Tax Provision ............................................... 2.7 16.3 58.9 50.2 --------- --------- --------- --------- Net Earnings .................................................. 4.0 24.4 88.0 73.3 Preferred Dividend Requirements .................................... -- 3.0 6.0 12.0 --------- --------- --------- --------- Net Earnings Applicable to Common Stock ....................... $ 4.0 $ 21.4 $ 82.0 $ 61.3 ========= ========= ========= ========= Net Earnings Per Share: Basic ......................................................... $ 0.10 $ 0.69 $ 2.26 $ 1.96 ========= ========= ========= ========= Diluted ....................................................... $ 0.10 $ 0.59 $ 2.10 $ 1.75 ========= ========= ========= ========= Weighted Average Common Shares - Basic (in millions) ............... 41.4 30.8 36.2 31.2 ========= ========= ========= ========= Weighted Average Common Shares and Potentially Dilutive Common Shares - Diluted (in millions) ......................... 41.9 41.4 41.9 41.8 ========= ========= ========= ========= DEPRECIATION AND AMORTIZATION Refining and Marketing (a) ......................................... $ 20.3 $ 11.5 $ 51.8 $ 40.4 Marine Services .................................................... 0.7 0.8 2.8 2.7 Corporate .......................................................... 0.8 0.6 2.8 2.4 --------- --------- --------- --------- Total Depreciation and Amortization ........................... $ 21.8 $ 12.9 $ 57.4 $ 45.5 ========= ========= ========= ========= CAPITAL EXPENDITURES (b) Refining and Marketing ............................................. $ 52.8 $ 49.1 $ 183.2 $ 87.5 Marine Services .................................................... 0.8 1.0 3.1 3.2 Corporate .......................................................... 4.2 1.2 23.2 3.3 --------- --------- --------- --------- Total Capital Expenditures .................................... $ 57.8 $ 51.3 $ 209.5 $ 94.0 ========= ========= ========= =========
- ---------- Note: Refining and Marketing includes the Company's refinery system and retail system. (a) Includes manufacturing depreciation per throughput barrel of $0.36 and $0.28 for the three months ended December 31, 2001 and 2000, respectively, and $0.28 and $0.26 for the years ended December 31, 2001 and 2000, respectively. (b) Capital expenditures exclude amounts for the acquisitions of refining, marketing and pipeline assets from BP in 2001 and certain retail assets acquired in the fourth quarter of 2001. TESORO PETROLEUM CORPORATION FINANCIAL AND OPERATING DATA (CONDENSED AND UNAUDITED) (Dollars in millions except per unit amounts)
THREE MONTHS ENDED YEARS ENDED DECEMBER 31, DECEMBER 31, ----------------------- ----------------------- 2001 2000 2001 2000 --------- --------- --------- --------- OTHER FINANCIAL DATA EBITDA (c): Refining and Marketing ........................................ $ 65.4 $ 68.7 $ 301.2 $ 229.5 Marine Services ............................................... 1.4 2.5 12.7 13.1 --------- --------- --------- --------- Total Operating EBITDA ...................................... 66.8 71.2 313.9 242.6 Corporate and Unallocated ...................................... (16.9) (10.5) (56.8) (40.9) --------- --------- --------- --------- Total EBITDA ................................................ $ 49.9 $ 60.7 $ 257.1 $ 201.7 ========= ========= ========= ========= OPERATING DATA Refinery Throughput (thousand Bbls/day) (d): Washington ..................................................... 116.4 115.6 119.4 116.6 Hawaii ......................................................... 84.8 92.0 87.1 84.4 Alaska ......................................................... 50.8 50.6 50.0 48.5 North Dakota ................................................... 53.2 -- 17.1 -- Utah ........................................................... 51.6 -- 16.5 -- --------- --------- --------- --------- Total Refinery Throughput .................................... 356.8 258.2 290.1 249.5 ========= ========= ========= ========= % Heavy crude oil ............................................. 44% 40% 46% 43% Total Refining and Marketing Product Spread ($/Bbl) (e) ........... $ 7.16 $ 8.16 $ 7.65 $ 6.99 Refined Products Manufactured (thousand Bbls/day) (d): Gasoline and gasoline blendstocks .............................. 150.3 90.2 110.5 95.0 Jet fuel ....................................................... 62.5 62.3 59.4 57.6 Diesel fuel .................................................... 73.0 43.5 52.9 39.2 Heavy oils, residual products and other ........................ 82.5 69.1 75.5 64.8 --------- --------- --------- --------- Total Refined Products Manufactured .......................... 368.3 265.1 298.3 256.6 ========= ========= ========= ========= Refining and Marketing - Product Sales (thousand Bbls/day) (d) (e): Gasoline and gasoline blendstocks .............................. 205.8 128.6 161.3 135.0 Jet fuel ....................................................... 84.4 76.9 80.7 76.3 Diesel fuel .................................................... 95.7 58.1 73.5 53.6 Heavy oils, residual products and other ........................ 63.7 56.5 60.8 57.6 --------- --------- --------- --------- Total Product Sales .......................................... 449.6 320.1 376.3 322.5 ========= ========= ========= ========= Refining and Marketing - Gross Margins (e): Refinery (f) ................................................... $ 217.9 $ 176.3 $ 785.9 $ 625.2 Purchased product and crude oil resales ........................ 9.6 (1.0) 19.3 14.4 Merchandise and other .......................................... 6.1 6.2 25.2 27.2 --------- --------- --------- --------- Total Gross Margins .......................................... $ 233.6 $ 181.5 $ 830.4 $ 666.8 ========= ========= ========= ========= Refining and Marketing - Total Operating Expenses (e) (g) ......... $ 168.2 $ 112.8 $ 529.2 $ 437.3 ========= ========= ========= ========= Marine Services - Fuel Sales (millions of gallons) ................ 38.8 44.9 170.8 170.0 Marine Services - Service Revenues ($ millions) ................... $ 3.1 $ 3.5 $ 14.9 $ 13.3
- ---------- (c) EBITDA is a measure used by the Company for internal analysis and in presentations to analysts, investors and lenders. The calculation of this measure is not based on accounting principles generally accepted in the United States ("U.S. GAAP") and should not be considered as an alternative to net earnings or cash flows from operating activities (which are determined in accordance with U.S. GAAP), as an indicator of operating performance or as a measure of liquidity. EBITDA represents earnings before interest and financing costs, income taxes and depreciation and amortization. This measure may not be comparable to similarly titled measures used by other entities. (d) Volumes for the year ended 2001 include amounts for North Dakota and Utah operations since their acquisition on September 6, 2001, averaged over the full year. Refinery throughput averaged over the period owned was 54,000 Bbls/day and 52,000 Bbls/day for the North Dakota and Utah refineries, respectively. (e) Includes amounts from the Company's retail system. (f) Approximates refinery system throughput times the refining and marketing product spread, adjusted for changes in refined product inventory. (g) Includes manufacturing costs per throughput barrel of $3.17 and $2.93 for the three months ended December 31, 2001 and 2000, respectively, and $3.10 and $2.85 for the years ended December 31, 2001 and 2000, respectively. Manufacturing costs include non-cash amortization of maintenance turnaround costs of $5.3 million and $4.5 million for the three months ended December 31, 2001 and 2000, respectively, and $18.5 million and $20.1 million for the years ended December 31, 2001 and 2000, respectively. Manufacturing costs also include costs of internally-produced fuel. TESORO PETROLEUM CORPORATION FINANCIAL AND OPERATING DATA (CONDENSED AND UNAUDITED) (Dollars in millions)
DECEMBER 31, December 31, 2001 (h) 2000 ------------ ------------ BALANCE SHEET DATA: Total Assets .............................. $ 2,662.3 $ 1,543.6 Total Debt ................................ $ 1,146.9 $ 310.6 Total Stockholders' Equity ................ $ 757.0 $ 669.9 Total Debt to Capitalization Ratio ........ 60% 32%
- ---------- (h) The purchase price of the North Dakota and Utah operations, acquired in September 2001, has been allocated on a preliminary basis to the assets and liabilities acquired, including goodwill and other intangible assets. -----END PRIVACY-ENHANCED MESSAGE-----