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Andeavor Opens First ARCO® Station in Mexico

Andeavor Opens First ARCO® Station in Mexico

SAN ANTONIO, TEXAS - August 29, 2017 - Andeavor (NYSE: ANDV) today announced that it has officially begun operating in Mexico and has successfully opened the first ARCO® station in Tijuana, Baja California, Mexico. As announced in July, Andeavor and Profesional Fuels Solutions, S.A. de C.V. (ProFuels) have an established wholesale marketing agreement and have outlined plans to expand the ARCO® brand to achieve a leading market position in the Mexican states of Sonora and Baja California.

"We are excited to have officially introduced the ARCO® brand in Mexico," said Greg Goff, Chairman, President and CEO of Andeavor. "Opening our first ARCO station in Northwest Mexico is a natural and strategic link for our West Coast operations and integrated value chain, furthering our marketing integration in a growing market."

Andeavor is uniquely positioned for growth in Mexico due to several factors, including:

  • Access to terminaling and transportation services: In an important first step, earlier this summer, Andeavor (then known as Tesoro) was awarded capacity in the Open Season for Northwest Mexico on the Petróleos Mexicanos (Pemex) oil products pipelines and in storage terminals. This means that Andeavor has the unique capability to transport its products within the existing infrastructure of the country to bring its fuel to the consumer. 
  • Existing West Coast footprint and integration opportunities: Andeavor plans to integrate product supply to Mexico with its West Coast refining, marketing and logistics system, effectively distributing gasoline and diesel from its refineries into long-term retail and wholesale channels.
  • Strength and Recognition of the ARCO® brand in Mexico: Consumer research indicates Mexico is a natural fit for the ARCO® brand as there is a strong awareness of the brand and its quality offering in the country.
  • Agreement with leading operator, wholesaler and distributor in country: Andeavor has an established wholesale marketing agreement with ProFuels to market and grow the ARCO® fuel brand in the region.

This first station marks the beginning of growth to include an anticipated 200 to 400 ARCO® stations in Baja California and Sonora over the next several years. ProFuels also intends to grow the ARCO® brand through supply contracts with independent owners and operators of existing and new gas stations that are interested in marketing fuel under the ARCO® brand. All ARCO® fueling stations in Mexico will offer consumers TOP TIER(TM) gasoline.

"We're incredibly excited to open the first ARCO® station in Mexico," said Luis Enrique Rodriguez, President of ProFuels. "Mexican consumers are interested in having high-quality fueling options and we believe that ARCO® is the brand best suited to deliver on that consumer value proposition."  Rodriguez continued, "The ARCO® brand is known for its high-quality TOP TIER(TM) gasoline offering, which aligns perfectly with our operation and service culture that provides consumers with a superior filling experience."

To commemorate the launch of ARCO® brand and the opening of the first station, a Grand Opening Celebration is expected to be held in the coming weeks.

In addition, an ARCO® advertising campaign to introduce the ARCO® brand and its high-quality TOP TIER(TM) product offering will soon hit the airwaves. The multi-media campaign will consist of high-profile outdoor billboard placements, print ads, and TV and radio traffic sponsorships. To learn more, visit www.arcogasolina.com.mx.

About Andeavor

Andeavor is a premier, highly integrated marketing, logistics and refining company. Andeavor's retail-marketing system includes more than 3,100 retail stations marketed under multiple well-known fuel brands, including ARCO®, SUPERAMERICA®, Shell®, Exxon®, Mobil®, Tesoro®, USA Gasoline(TM) and Giant®. It also has ownership in two logistics businesses, which include Andeavor Logistics LP and Western Refining Logistics, LP (NYSE: WNRL) and ownership of their general partners. Andeavor operates 10 refineries with a combined capacity of approximately 1.2 million barrels per day in the mid-continent and western United States.

About ARCO®
ARCO® is a trademark owned by Andeavor. ARCO® fueling stations offer quality TOP TIER(TM) gas at approximately 1,500 locations in five western U.S. states, including Arizona, California, Nevada, Oregon and Washington. In August 2017, the ARCO® brand expanded into Mexico by beginning to open stations in Baja California and Sonora.

Forward Looking Statements
This release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation statements concerning: our operational, financial and growth strategies, including our plans to integrate supply to Mexico and expand the ARCO brand throughout Baja California and Sonora; our ability to successfully effect those strategies and the expected timing and results thereof; the anticipated benefits of the agreement with Pemex and other positioning in Mexico; and statements regarding the agreement with ProFuels, and the expected benefits and timing thereof. For more information concerning factors that could affect these statements, see our annual report on Form 10-K, quarterly reports on Form 10-Q, and other public filings and press releases, available at www.tsocorp.com. We undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.

Contact:
Investors:
Brian Randecker, Investor Relations, (210) 626-4757
Media:
Andeavor Media Relations, media@andeavor.com, (210) 626-7702