Tesoro to put pipeline, storage assets into MLP

NEW YORK (BestGrowthStock) – Oil refiner Tesoro Corp (TSO.N: ) said on Monday it plans to spin off part of its logistics operations into a partnership through a public offering expected to raise $200 million.

The company said it would put its High Plains pipeline gathering system, eight oil products terminals and an oil and products storage facility into the planned master limited partnership.

Master limited partnerships do not pay corporate taxes and instead distribute nearly all their profits to unit holders.

They are often used in the energy industry as a structure to hold assets such as pipelines and storage facilities.

Shares in Tesoro rose 1.5 percent to $17.69 per share in premarket trade.

(Reporting by Matt Daily, editing by Gerald E. McCormick)

Tesoro to put pipeline, storage assets into MLP