Tesoro approves $500 million repurchase program, to redeem 6¼% notes

By Sahara Marte

New York, Aug. 2 - Tesoro Corp. has authorized a stock repurchase program to benefit its shareholders, Gregory Goff, president and chief executive officer, said during the company's second quarter earnings conference call.

"We remain cautiously optimistic about U.S. refining market conditions," he added. "Now we are well positioned to be returning cash to our shareholders through share repurchases and regular dividends."

The company's board of directors has approved a $500 million share repurchase program and a regular cash dividend of $0.12 per share. The program has no time limit.

The first dividend is payable on Sept. 14.

At the end of the second quarter, Tesoro reported credit capacity of about $950 million on its revolving credit facility.

The company plans to redeem the remaining 6¼% senior notes at their maturity in November.

"We're investing in high-return, short pay-back projects," said Goff in a news release. "That will drive fundamental improvements in our business and deliver further cash flow growth."

The company expects to spend $670 million by the end of the year.

Tesoro is a San Antonio-based refiner and marketer of petroleum products.

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