Andeavor and Andeavor Logistics Respond to FERC Announcement
SAN ANTONIO - March 15, 2018 - The Federal Energy Regulatory Commission ("FERC"), today announced that it would be revising its policy regarding income tax allowances in the rates of pipelines operated by MLPs.
Andeavor Logistics (NYSE: ANDX) operates some FERC regulated pipelines, but anticipates that the ruling may only have a possible annual negative impact to Andeavor Logistics' net earnings and EBITDA of less than $10 million, which reflects the entire potential impact of changes in the FERC corporate tax allowance.
In addition, the FERC ruling also addressed the rate structure of certain pipelines operated by SFPP, L.P. Andeavor (NYSE: ANDV) is a party to these cases involving SFPP, L.P. and anticipates receiving refunds that will have a positive impact upon future cash flows, which we are in the process of estimating.
Andeavor is a premier, highly integrated marketing, logistics and refining company. Andeavor's retail-marketing system includes more than 3,200 stores marketed under multiple well-known fuel brands, including ARCO®, SUPERAMERICA®, Shell®, Exxon(TM), Mobil(TM), Tesoro, USA Gasoline(TM) and Giant®. It also has ownership in Andeavor Logistics LP (NYSE: ANDX) and its non-economic general partner. Andeavor operates 10 refineries with a combined capacity of approximately 1.2 million barrels per day in the mid-continent and western United States.
About Andeavor Logistics LP
Andeavor Logistics LP is a leading full-service logistics company operating primarily in the western and mid-continent regions of the United States. Andeavor Logistics owns and operates a network of crude oil, refined products and natural gas pipelines. Andeavor Logistics also owns and operates crude oil and refined products truck terminals, marine terminals and dedicated storage facilities. In addition, Andeavor Logistics owns and operates natural gas processing and fractionation complexes. Andeavor Logistics owns a fee-based fuel wholesale business. Andeavor Logistics is a fee-based, growth oriented Delaware limited partnership formed by Andeavor.
Forward Looking Statements
This release contains "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical fact, are forward-looking statements, including without limitation statements concerning: the FERC's announced policy revision; the anticipated impact of the policy revision to Andeavor Logistics' EBITDA and related assumptions; the anticipated refunds to Andeavor as a result of the policy revision and the impact to its future cash flows; and other aspects of future performance. Although we believe the assumptions concerning future events are reasonable, a number of factors could cause results to differ materially from those projected. Our operations involve risks and uncertainties, many of which are outside of our control and could materially affect our results. For more information concerning factors that could affect these statements, see Andeavor's and Andeavor Logistics' annual reports on Form 10-K, quarterly reports on Form 10-Q, and other public filings, available at http://www.andeavor.com and andeavorlogistics.com. We undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.
Brad Troutman, Investor Relations, (210) 626-4568
Andrew Woodward, Sr. Director, Finance and Investor Relations, (210) 626-7202
Andeavor Media Relations, email@example.com, (210) 626-7702