Tesoro Corporation said Tuesday that it has acquired Dakota Prairie Refining for an undisclosed sum.
Tesoro made the acquisition through its affiliate Tesoro Refining & Marketing Company LLC.
Dakota Prairie owns a refinery near Dickinson, North Dakota that is located 100 miles west of the Tesoro Mandan Refinery and has “strategic access to advantaged Bakken crude oil,” Tesoro said.
DPR’s refinery has a crude oil capacity of 20,000 barrels per day and produces ultra-low sulfur diesel, naphtha and resid.
Tesoro said it plans to continue to market the ultra-low sulfur diesel to local customers and utilize the naphtha and resid in its integrated value chain system.
In light of the acquisition, Tesoro said it is ensuring the continued servicing of DPR’s $66 million term loan debt and is contributing $10 million toward working capital.
Tesoro Corporation chairman, president and CEO Greg Goff said the company expects to “generate more than $20 million in annual operating income from this business – even if the current economic conditions continue.”
“This acquisition presents new opportunities for continued growth. We have already identified plans to drive substantial improvements, and we are prepared to execute on these plans in 2016,” Goff added.