Tesoro Logistics up on 1st day trading on NYSE

AP News
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Posted: Apr 20, 2011 10:59 AM
Tesoro Logistics up on 1st day trading on NYSE

Shares of Tesoro Logistics LP climbed more than 12 percent Wednesday in their first day of trading on the New York Stock Exchange.

The San Antonio company said its initial public offering of 13 million units was priced at $21 per unit, the top of its expected $19 to $21 per unit price range. It trades under the symbol "TLLP."

The shares being sold represent a 41.8 percent stake in Tesoro Logistics. The public will own 48 percent if the underwriters fully exercise their option to buy up to an additional 2 million units to cover excess demand.

Oil refiner Tesoro Corp., some Tesoro subsidiaries and Tesoro Logistics' general partner will own the remaining portion of Tesoro Logistics, based in San Antonio.

Tesoro Corp. announced its plan to sell a stake in its logistics business in December.

Tesoro Logistics is a limited partnership that owns, operates, develops and acquires assets involving oil and petroleum products. The partnership's assets include an oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana, eight fuel terminals, a storage facility and pipelines in Utah.

Tesoro Logistics' stock added $2.66, or 12.7 percent, to $23.66 in Wednesday morning trading.