Tesoro Petroleum Inc fka TSO

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Tesoro Corporation Announces Preliminary Fourth Quarter Results:


SAN ANTONIO, Jan 14, 2009 (BUSINESS WIRE) -- Tesoro Corporation (NYSE:TSO)
announced today that it expects fourth quarter 2008 earnings per share in the
range of $0.60 to $0.75 per share, which includes net one-time adjustments of
approximately $(0.29) per share. The one-time adjustments, using a marginal tax
rate of 38%, include a $(0.41) per share after-tax accrual for doubtful accounts
receivable, partially offset by an accrual reversal of $0.12 per share after-tax
following a reduction in estimated costs associated with asset retirement
obligations. In the course of our review of accounts receivable, we identified
one material account as to which collection in the ordinary course of business
was deemed to be unlikely. As a matter of prudence, we have fully reserved the
account although rigorous collection efforts are being pursued.

Expected earnings in the fourth quarter were positively impacted by:

-- Better capture rates as enhanced crude flexibility provided increased
opportunities to purchase crude oil at discounts to regional benchmarks.

-- A widening of industry benchmark margins beginning around mid-December
occurred as unplanned refinery maintenance on the West Coast led to historically
low inventory of gasoline supply.

-- Better marketing and retail margins.

Operating Results

For the fourth quarter 2008, total throughput is expected to be approximately
555,000 barrels per day versus our guidance of 575,000 barrels per day. Lower
rates were mainly due to the December coker disruption at Los Angeles and
unplanned downtime at Anacortes. The Company estimates its fourth quarter 2008
gross margin, excluding the significant one-time adjustments, will be
approximately $12.00 to $12.50 per barrel or 135% of the TSO benchmark index of
$9.21 per barrel. Retail margins in the fourth quarter 2008 were consistent with
those realized in the third quarter 2008.

Fourth Quarter 2008 Earnings Release Details

The Company will release earnings for the fourth quarter and full year 2008 on
Thursday evening, February 19, 2009. The Company will broadcast, live, its
conference call with analysts regarding fourth quarter and full year 2008
results and other business matters at 8:00 a.m., CST, on Friday, February 20,
2009. Interested parties may listen to the live conference call over the
Internet by logging on to http://www.tsocorp.com, or via phone by dialing
888-241-0558 (international dial-in: 647-427-3417). A replay of the call will be
available for thirty days, and may be accessed via phone by dialing 800-678-0453
(international replay: 402-220-1458) and entering passcode 81028143.

Tesoro Corporation, a Fortune 150 company, is an independent refiner and
marketer of petroleum products. Tesoro, through its subsidiaries, operates seven
refineries in the western United States with a combined capacity of
approximately 660,000 barrels per day. Tesoro's retail-marketing system includes
over 870 branded retail stations, of which over 380 are company operated under
the Tesoro(R), Shell(R), Mirastar(R) and USA Gasoline(TM) brands.

This earnings 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 concerning the market
environment, and our expectations about Tesoro's unaudited fourth quarter 2008
financial result. The final fourth quarter 2008 financial results could be
subject to certain audit adjustments. For more information concerning factors
that could affect these statements see our annual report on Form 10-K and
quarterly reports on Form 10-Q, filed with the Securities and Exchange
Commission.

SOURCE: Tesoro Corporation




CONTACT:
Tesoro Corporation, San Antonio
Investors:
Scott Phipps, 210-626-4882
Director, Investor Relations
or
Media:
Lynn Westfall, 210-626-4697
SVP of External Affairs and Chief Economist