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Corporate News Blog - Andeavor Reveals Plans to Construct a $225 Million Pipeline in Delaware Basin

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LONDON, UK / ACCESSWIRE / August 15, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Andeavor (NYSE: ANDV), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=ANDV. The San Antonio, Texas based Company announced on August 11, 2017, that it plans to start the construction of the Conan Crude Oil Gathering Pipeline System (CCOGPS) in the Delaware Basin. The Company, which was earlier known as Tesoro Corp., said that the decision was taken after receiving sufficient level of commitments from third party shippers. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Oil & Gas Refining & Marketing industry. Pro-TD has currently selected Sunoco LP (NYSE: SUN) for due-diligence and potential coverage as the Company announced on August 08, 2017, its financial and operating results for the three-month period which ended on June 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Sunoco when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ANDV; also brushing on SUN. Go directly to your stock of interest and access today's free coverage at:

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The Conan Crude Oil Gathering Pipeline System

The CCOGPS is expected to start at Lea County, New Mexico and Loving County, Texas. The approximately 130 miles long pipeline is expected to transport crude oil from Lea County, New Mexico, and Loving County, Texas to the gathering system at Loving County, Texas, which is yet to be constructed. At the gathering system, the pipeline will interconnect with long-haul pipeline carriers. In the first phase, the CCOGPS would have a capacity to transport approximately 250,000 barrels per day with the capacity being expanded to reach up to 500,000 barrels per day after completion of future developments.

The system is currently under construction and the Company expects that the pipeline will be operational and ready for commercial service in mid-2018. The construction of the first phase of the gathering system would require an initial capital investment of approximately $225 million. Out of this amount, approximately $75 million is expected to be spent in FY17.

History

In May 2017, El Paso, Texas based Western Refining, Inc. (NYSE: WNR) ("WNR") had announced the Open Season for the proposed CCOGPS. CCOGPS would be constructed, owned, and operated by WNR's subsidiary, Western Refining Conan Gathering, LLC. WNR is an independent refining and marketing company and operates refineries in El Paso, Gallup, New Mexico, and St. Paul Park, Minnesota. WNR also has a retail business of service stations and convenience stores in Arizona, Colorado, Minnesota, New Mexico, Texas, and Wisconsin, operating under the Giant, Howdy's, and SuperAmerica brands. In November 2016, Tesoro acquired WNR in a $6.4 billion transaction. Through this acquisition, Tesoro changed its name to Andeavor in August 2017 and became the owner of CCOGPS.

In the May 2017 Open Season, potential shippers were invited to show their support to the CCOGPS by making volume commitments. These commitments were for an initial period of seven years. The pipeline has an initial capacity of approximately 250,000 barrels per day and nearly 90% of this capacity would be reserved for the committed shippers for the duration of the Open Season. Committed shippers had the option of increasing or decreasing their volume commitments over the seven-year period, subject to certain terms and conditions. If sufficient capacity is available any incremental increase in volumes from committed shippers would not be subject to pro-rationing under ordinary operating conditions. This is subject to the fact that at least 10% of the deemed capacity of CCOGPS is available for uncommitted volumes.

About Andeavor

Andeavor is a premier refining, marketing and logistics company. The Company's business is divided into three main verticals - Refining, Logistics, and Marketing.

Through the refinery business the Company operates 10 refineries in Alaska, California, Minnesota, New Mexico, North Dakota, Texas, Utah, and Washington with a combined capacity of approximately 1.2 million barrels per day.

The Logistics business includes ownership in two high-growth independent logistics MLPs – Andeavor Logistics and Western Refining Logistics, L.P. – with access to advantaged crude oil basins.

The marketing business consists of more than 3,000 retail stations operating under the ARCO®, Exxon®, SUPERAMERICA®, Shell®, Mobil®, Conoco®, Tesoro®, USA Gasoline™, and Giant® brands.

Last Close Stock Review

Andeavor's share price finished yesterday's trading session at $95.20, slightly up 0.83%. A total volume of 1.30 million shares have exchanged hands. The Company's stock price surged 16.15% in the last three months, 8.99% in the past six months, and 26.31% in the previous twelve months. Additionally, the stock gained 8.86% since the start of the year. Shares of the Company have a PE ratio of 33.83 and have a dividend yield of 2.31%. The stock currently has a market cap of $14.84 billion.

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