Energy | United States
WSD Target Price
Annualized Return Since Publication
Target Equity Value (Δ)
Source: Bloomberg end of day market data; not adjusted for dividends (September 1, 2017).
Returns assume a long investment position on the date that WSD Capital Management published its thesis, and an exit on the date that the WSD Target Price is realized.
Returns do not reflect any fees, expenses or taxes.
The returns are hypothetical and do not reflect the actual results of WSD Capital Management’s investment activities, nor is it necessarily indicative of future results of WSD Capital Management’s investment activities.
Andeavor, formerly Tesoro Corporation (“Tesoro”), is an independent refiner and marketer of petroleum products. The company, through its subsidiaries, operates seven refineries in the western United States, a retail-marketing system with over 2,400 retail stations, and ownership in a logistics business.
WSD Capital Management announced its investment in Tesoro on October 24, 2016. We were attracted to the company due to its midstream and its retail/marketing businesses, which we believe are deeply undervalued by the market.
While lower crude oil prices will continue to burden industry participants, we believe that the company is better protected than its peers from unfavorable Brent-WTI and RIN price trends. As the company's asset portfolio transformation continues to move forward, we foresee lower future earnings volatility with diminishing exposure to challenging commodity price fluctuations.
We exited our investment in Tesoro in December 2016.
On August 1, 2017, Tesoro announced that the company changed its name to Andeavor.