Andeavor Logistics LP (NYSE:ANDX) And Andeavor (NYSE:ANDV) Outlines 2018-2020 Plan


Andeavor Logistics LP (NYSE:ANDX) and Andeavor (NYSE:ANDV) jointly hosed their Investor and Analyst Day for the year to outline their financial objectives and strategic plans for 2018 through 2020. Greg Goff, Chairman, the CEO and President of Andeavor, expressed that company’s integrated value chain is all set to meet their objectives to grow yearly EBITDA by $1.4 billion to $4.5 billion in 2020, after a transformational 2017. They are also extremely assured that they will capture Western Refining synergies of minimum $400 million by 2020 and achieve their intended run rate of $350 million to $425 million by mid-2019.

The details

Mike Morrison, the SVP, Marketing, outlined Andeavor’s Marketing plan to grow division EBITDA to $1.2 billion by 2020, led by a focus on the firm’s branded portfolio in each region to develop stores, expand branded volume and improve and increase convenience margins. In addition, Morrison will showcase the firm’s marketing expansion and prospects in Mexico.

Steven Sterin, the EVP, CFO of Andeavor and CFO and President of Andeavor Logistics’ general partner, offered an overview of Andeavor Logistics’ plan for sustainable growth, with an objective on investments in the Bakken and Permian Basin. They intend to deliver $1.2 billion to $1.3 billion in division EBITDA in 2018 and their consumer-focused, full-service midstream operation is positioned to progress and record $1.4 billion to $1.5 billion in segment EBITDA by 2020.

CJ Warner, the EVP, Operations, discussed Andeavor’s plan to improve its refining system and enhance segment EBITDA to as much as $2.3 billion by 2020. This development is led by the delivery of additional Western Refining synergies worth $200 million and earnings improvement of $350 million, comprising of $175 million from key strategic capital assignments and $175 million from the impact of the Western Refining deal and increasing productivity.

Keith Casey, the EVP, Commercial and Value Chain, highlighted Andeavor’s plan to identify and capture prospects across the firm’s value chain to offer higher integrated margins, resulting in considerable enhancement to profitability.

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