Total Refining

2011
1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year 1Q
Throughput (Mbpd)
Heavy Crude (a) 176 184 221 186 192 181 186 162 180 177 167 193 191 173 181 186
Light Crude 390 388 364 332 369 320 343 361 313 335 276 251 251 303 270 338
Other Feedstocks 27 38 37 37 34 34 36 41 37 37 28 30 30 29 29 37
Total Throughput (Mbpd) 593 610 622 555 595 535 565 564 530 549 471 474 472 505 480 561
Yield (Mbpd)
Gasoline & Gasoline Blendstocks 283 280 283 256 275 258 286 289 238 268 233 222 238 236 232 289
J et Fuel 76 82 82 72 78 64 67 79 71 70 70 64 63 75 68 79
Diesel Fuel 128 145 158 141 143 121 111 113 111 114 94 103 104 112 103 126
Heavy Oils, Residual Products, Internally Produced Fuel & Other 133 135 132 116 129 123 133 115 138 127 103 112 95 110 106 100
Total Yield (Mbpd) 620 642 655 585 625 566 597 596 558 579 500 501 500 533 509 594
Gross Refining Margin ($ millions) (b) (c) $353 $561 $955 $637 $2,506 $585 $438 $498 $262 $1,783 $270 $555 $577 $572 $1,974 $724
Refining Margin ($/throughput barrel) (d)
Gross (c) $6.54 $10.10 $16.69 $12.47 $11.50 $12.14 $8.52 $9.59 $5.37 $8.90 $6.36 $12.89 $13.28 $12.33 $11.26 $14.33
Manufacturing cost before depreciation and amortization expense $5.29 $5.35 $5.24 $4.86 $5.19 $5.33 $4.63 $4.79 $5.35 $5.01 $5.94 $5.74 $6.14 $5.50 $5.83 $5.22
Refined Product Sales (Mbpd) (e)
Gasoline & Gasoline Blendstocks 330 334 327 313 326 307 317 309 291 306 284 277 294 296 288 325
J et Fuel 97 92 94 86 92 77 79 92 88 84 89 97 92 91 92 86
Diesel Fuel 123 151 164 136 144 120 123 129 112 121 97 113 131 122 116 130
Heavy Oils, Residual Products & Other 94 104 97 81 94 85 88 81 87 85 77 77 72 77 76 74
Total Refined Product Sales (Mbpd) 644 681 682 616 656 589 607 611 578 596 547 564 589 586 572 615
Refined Product Sales Margin ($/barrel) (e)
Average sales price $106.01 $135.73 $131.21 $71.24 $112.06 $56.40 $69.63 $83.71 $82.26 $72.17 $87.08 $90.91 $88.81 $96.98 $91.03 $113.33
Average costs of sales 99.41 125.19 117.83 63.36 102.37 46.00 61.80 76.47 78.76 64.93 82.82 82.00 78.95 86.85 82.66 99.98
Refined Product Sales Margin $6.60 $10.54 $13.38 $7.88 $9.69 $10.40 $7.83 $7.24 $3.50 $7.24 $4.26 $8.91 $9.86 $10.13 $8.37 $13.35
Notes:
TESORO CORPORATION
SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION
Exhibit 5
2009 2008
(d) Management uses gross refining margin per barrel to evaluate performance and compare profitability to other companies in the industry. There are a variety of ways to calculate gross refining margin per barrel; different companies may calculate it in
different ways. We calculate gross refining margin per barrel by dividing gross refining margin (revenue less costs of feedstocks, purchased refined products, transportation and distribution) by total refining throughput. Management uses manufacturing
costs per barrel to evaluate the efficiency of refining operations. There are a variety of ways to calculate manufacturing costs per barrel; different companies may calculate it in different ways. We calculate manufacturing costs per barrel by dividing
manufacturing costs by total refining throughput. Investors and analysts use these financial measures to help analyze and compare companies in the industry on the basis of operating performance. These financial measures should not be considered
alternatives to segment operating income, revenues, costs of sales, operating expenses or any other measure of financial performance presented in accordance with accounting principles generally accepted in the United States of America.
(e) Sources of total refined product sales include refined products manufactured at our refineries and refined products purchased from third parties. The total refined product sales margin includes margins on sales of manufactured and purchased refined
products.
2010
(b) During 2Q08, 3Q08, 3Q09 and 4Q09, reductions in inventory quantities resulted in liquidations of applicable LIFO inventory quantities carried at lower costs in prior years. The LIFO liquidations resulted in decreases of costs of sales of $78 million in
2Q08, $68 million in 3Q08, $12 million in 3Q09 and $57 million in 4Q09. During 4Q08, a LIFO liquidation resulted in an increase to costs of sales of $8 million as the applicable LIFO inventory quantities were carried at a higher cost. Gross refining margin
is calculated as revenues less costs of feedstocks, purchased refined products, transportation and distribution. Gross refining margin approximates total refining throughput times gross refining margin per barrel. Gross refining margin also includes the
effect of intersegment sales to the retail segment at prices which approximate market.
(c) 4Q10 includes $55 million in business interruption insurance recoveries related to the April 2, 2010 incident at our Washington refinery. The Gross refining margin per barrel impact of this amount is $1.18 ($/throughput bbl) for 4Q10. This is calculated
as business interruption insurance recoveries divided by total refining throughput for the period.
(a) We define heavy crude oil as crude oil with an American Petroleum Institute gravity of 24 degrees or less.
Updated on 05/04/11
(Unaudited)