About Tesoro
Company Profile

Click here for a printable (PDF) version of the Tesoro Fact Sheet.

Tesoro Corporation, headquartered in San Antonio, Texas, is a Fortune 150 and a Global 500 company with approximately 5,500 employees.

As a leading independent refiner and marketer of petroleum products, Tesoro, through its subsidiaries, operates seven refineries primarily in the western United States with a combined crude oil capacity of approximately 660,000 barrels per day (bpd). The seven refineries are located in:

Tesoro's retail marketing system includes over 900 branded retail stations, of which more than 445 are company operated under the Tesoro®, Shell®, Mirastar® and USA Gasoline™ brands. Tesoro's commercial marketing system includes sales of jet and marine fuels.

Business Strategy

Our strategy is to create a value-added refining and marketing business that has economies of
scale, a competitive cost structure, effective management information systems and outstanding
employees focused on achieving operational excellence in a global market while providing
stockholders competitive returns in any economic environment.

Our goals are focused on operating our facilities in a safe, reliable and environmentally responsible
way, improving our profitability by achieving greater operational and administrative efficiencies
and using excess cash flows from operations in a balanced way to create shareholder

Strategic Capital Projects

To achieve our strategy of a competitive cost structure and earning competitive returns
in any margin environment, we focus on capital projects that improve safety and reliability,
enhance our crude oil flexibility, improve clean product yields and increase energy efficiency.
In November 2007, our Board of Directors approved the 2008 capital budget, which is
approximately $966 million.

The coker modification project at our Golden Eagle refinery in Martinez, Calif., is currently
scheduled to be substantially completed during the first quarter of 2008. The modified coker is
designed to reduce regulated criteria air emissions by more than 3,000 tons per year while also
enhancing the refinery's capabilities in terms of reliability, lengthening turnaround cycles and
lowering maintenance costs.

During the third quarter of 2008, we expect to complete the Selective Hydrogenation Unit (SHU)
at our Anacortes refinery, which will reduce the sulfur content in gasoline. The SHU will allow
the refinery to process a higher percentage of sour crude oils.

Refining

Tesoro is one of the largest independent refining companies in the United States and produces a
full range of petroleum products including gasoline, jet, diesel, heavy fuel oils, liquefied petroleum
gas, liquid asphalt, naphtha, propane and butane. From 2003 through 2007, we spent $1.8 billion on
our facilities (almost 78 percent of our net earnings) to improve safety,meet clean air requirements
and increase operational efficiencies. In that time, Tesoro has seen a 22 percent increase in our
refinery throughput rates.

Marketing

Through commercial, wholesale and retail channels, Tesoro's marketing team develops reliable,
profitable outlets for the company's refinery production. In May 2007, Tesoro's retail marketing
presence nearly doubled in size with the acquisition of 276 Shell-branded retail stations and
138 USA Gasoline™ retail stations located primarily in California.

• Commercial: Tesoro's commercial marketing program primarily involves commercial jet
  fuel and military jet fuel and heavy fuel products, including bunker fuel, asphalt, petroleum
  coke and sulfur.
• Wholesale: Tesoro markets gasoline and diesel fuel on a wholesale basis to independent
  marketers, commercial end-users, unbranded jobbers and high-volume retailers
  throughout the western United States.
• Retail: There are over 900 retail stations operating under Tesoro's brands. There are more
  than 445 company-operated retail locations under the Tesoro®, Shell®,Mirastar® and
  USA Gasoline™ brands.
• Pipelines and Terminals: Tesoro operates over 900 miles of crude and product pipelines
  transporting more than 380,000 barrels per day across our system.

Health and Safety

Tesoro is proud of its strong Environmental,Health and Safety culture. A recent survey of employees
identified our commitment to safety, teamwork and the environment as one of our key strengths.

In 2007, our people delivered a record performance on safety and environmental stewardship.We
operated reliably and safely while also protecting our environment with five of our refineries
reducing the number of environmental incidents and our Mandan refinery reporting zero incidents.

Tesoro also published its first Social Responsibility Report during 2007. It focused on our
achievements as a company and reported our performance and program accomplishments in
the communities in which we operate. It is available online at www.tsocorp.com.