DALLAS, Nov. 2, 2015 /PRNewswire/ -- Alon
USA Energy, Inc. (NYSE: ALJ)
("Alon") today announced results for the third quarter of 2015. Net
income available to stockholders for the third quarter of 2015 was
$41.9 million, or $0.60 per share, compared to net income available
to stockholders of $38.5 million, or
$0.56 per share, for the same period
last year. Excluding special items, Alon recorded net income
available to stockholders of $42.0
million, or $0.60 per share,
for the third quarter of 2015, compared to net income available to
stockholders of $40.6 million, or
$0.59 per share, for the same period
last year.
Net income available to stockholders for the first nine months
of 2015 was $105.3 million, or
$1.51 per share, compared to net
income available to stockholders of $31.8
million, or $0.46 per share,
for the same period last year. Excluding special items, Alon
recorded net income available to stockholders of $110.1 million, or $1.58 per share, for the first nine months of
2015, compared to net income available to stockholders of
$41.4 million, or $0.60 per share, for the same period last
year.
Paul Eisman, President and CEO,
commented, "We are pleased with the strong third quarter results
across most of our businesses. Our refining segment capitalized on
a robust crack spread environment during the third quarter to
generate solid margins. Our retail business continued to perform
well, and we are encouraged by the strong results from our asphalt
segment and the return to profitability in this business.
"While strong financial results are an important driver of
shareholder value, we are also focused on unlocking the value
embedded in our assets and pursuing growth opportunities to
increase shareholder value. We have identified $71 million in annual existing logistics EBITDA
across our businesses as discussed in the detail below. We are
committed to realizing value from these assets, which we believe
are undervalued in our current structure. We also see the potential
to implement growth projects in logistics and refining as discussed
below.
"The Big Spring refinery ran
well during the third quarter of 2015, achieving total throughput
of almost 76,000 barrels per day. Despite unfavorable Midland crude
differentials, Big Spring
generated a refinery operating margin of $16.71 per barrel. The refinery also achieved low
direct operating expense of $3.46 per
barrel. Our results benefited from a strong wholesale marketing
environment driven by a robust gasoline market. During the quarter,
our wholesale marketing business sold on average approximately
3,800 barrels per day of gasoline into the Phoenix market.
"The Krotz Springs refinery
achieved refinery operating margin of $6.66 per barrel in the third quarter of 2015 and
direct operating expense of $3.82 per
barrel. The planned major turnaround at Krotz Springs began in late September, and the
refinery is currently in the process of restarting. This is a
significant effort which takes years of planning, and we are
pleased with how the turnaround work has progressed.
"We are pleased to announce that our board has approved moving
forward with detailed engineering and procurement of long lead
equipment for the sulfuric acid alkylation unit at Krotz Springs. We expect the project to cost
$85 million and to generate annual
EBITDA of $45 million once completed.
The alkylation unit capitalizes on low LPG prices and high values
for octane. We believe this project will enhance gasoline margins
for Krotz Springs and increase our
flexibility in gasoline blending. We expect this project to be
completed in 2017.
"Our asphalt segment generated operating income of $18.5 million in the third quarter of 2015. This
is the third best quarter in the history of this business. It comes
as a result of improved market conditions, especially in
West Texas, along with our
successful cost reduction initiative. We are encouraged with our
results and believe that the improvements in profitability we
experienced are sustainable.
"Our retail business continues to perform well. In August, we
closed on the acquisition of 14 retail gas stations in the
Albuquerque area, and in October, we opened a new, large-format
store in El Paso.
"We expect total throughput at the Big
Spring refinery to average approximately 75,000 barrels per
day for the fourth quarter of 2015. We expect total throughput at
the Krotz Springs refinery to
average approximately 40,000 barrels per day for the fourth quarter
of 2015 due to the planned major turnaround."
STRATEGIC UPDATE - LOGISTICS
Alon has identified approximately $71
million in annual existing logistics EBITDA associated with
the Big Spring refinery and
wholesale marketing business owned by Alon USA Partners (NYSE: ALDW) and the Krotz Springs refinery as shown in detail in
the table below. The $71 million in
logistics EBITDA includes $37 million
associated with ALDW and $34 million
associated with Krotz Springs.
Logistics master limited partnerships (MLPs) continue to trade
at a premium to independent refiners and refining MLPs, implying
that these assets are undervalued in Alon's current structure. The
management team is committed to realizing the value of these
logistics assets for Alon USA
shareholders and Alon Partners unitholders.
Existing Logistics
Assets
|
|
Assumed
Utilization
|
|
Estimated Annual
EBITDA
|
|
|
|
|
(dollars in
thousands)
|
Alon USA Partners
- Big Spring Refinery:
|
|
|
|
|
Wholesale marketing
business
|
|
75,000 bpd
|
|
$
|
24,000
|
Crude and product
storage*
|
|
2.56
MMBbls
|
|
9,000
|
Other assets (rail
and truck racks, product rack, pipelines, salt wells,
etc.)
|
|
|
|
4,000
|
Total Alon USA
Partners Logistics EBITDA
|
|
|
|
$
|
37,000
|
|
|
|
|
|
Alon USA Energy -
Krotz Springs Refinery:
|
|
|
|
|
Crude and product
docks
|
|
64,000 bpd
|
|
$
|
17,000
|
Crude and product
storage*
|
|
2.68
MMBbls
|
|
14,000
|
Other assets (truck
rack, pipeline)
|
|
|
|
3,000
|
Total Krotz Springs
Logistics EBITDA
|
|
|
|
$
|
34,000
|
|
|
|
*
|
Represents shell
capacity.
|
|
In addition to the existing logistics assets above, there is the
potential for significant growth in MLP-oriented EBITDA across our
asset base. We have identified several growth opportunities and are
actively developing these projects.
THIRD QUARTER 2015
Special items reduced earnings by $0.1
million for the third quarter of 2015 primarily as a result
of after-tax unrealized gains of $0.8
million associated with commodity swaps and an after-tax
gain of $5.5 million related to an
asphalt inventory adjustment, partially offset by an after-tax
employee retention expense of $6.4
million. Special items reduced earnings by $2.1 million for the third quarter of 2014
primarily as a result of after-tax unrealized losses of
$1.0 million associated with
commodity swaps and $1.1 million
associated with losses recognized on disposition of assets.
The combined total refinery average throughput for the third
quarter of 2015 was 146,070 barrels per day ("bpd"), consisting of
75,797 bpd at the Big Spring
refinery and 70,273 bpd at the Krotz
Springs refinery, compared to a combined total refinery
average throughput of 151,772 bpd for the third quarter of 2014,
consisting of 74,838 bpd at the Big
Spring refinery and 76,934 bpd at the Krotz Springs refinery. The reduced throughput
at the Krotz Springs refinery
during the third quarter of 2015 was in anticipation and
preparation for the planned major turnaround, which began in
September 2015.
Refinery operating margin at the Big
Spring refinery was $16.71 per
barrel for the third quarter of 2015 compared to $19.98 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to the less
favorable industry margin environment. The unfavorable contraction
in the WTI Cushing to WTI Midland and the WTI Cushing to WTS
spreads was greater than the improvement in the Gulf Coast 3/2/1
spread and the cost of crude benefit from the market moving from
backwardation into contango.
Refinery operating margin at the Krotz
Springs refinery was $6.66 per
barrel for the third quarter of 2015 compared to $9.48 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to the less
favorable industry margin environment. The unfavorable contraction
in the WTI Cushing to WTI Midland spread was greater than the
improvement in the Gulf Coast 2/1/1 high sulfur diesel crack
spread, the benefit from the widening LLS to WTI Cushing spread and
the cost of crude benefit from the market moving from backwardation
into contango.
The average Gulf Coast 3/2/1 crack spread was $19.77 per barrel for the third quarter of 2015
compared to $15.90 per barrel for the
same period in 2014. The average Gulf Coast 2/1/1 high sulfur
diesel crack spread was $12.57 per
barrel for the third quarter of 2015 compared to $11.07 per barrel for the same period in
2014.
The average WTI Cushing to WTI Midland spread for the third
quarter of 2015 was $(0.72) per
barrel compared to $9.93 per barrel
for the same period in 2014. The average WTI Cushing to WTS spread
for the third quarter of 2015 was $(1.46) per barrel compared to $8.14 per barrel for the same period in 2014. The
average LLS to WTI Cushing spread for the third quarter of 2015 was
$3.89 per barrel compared to
$3.41 per barrel for the same period
in 2014.
The contango environment in the third quarter of 2015 created a
cost of crude benefit of $0.57 per
barrel compared to the backwardated environment creating a cost of
crude detriment of $1.16 per barrel
for the same period in 2014.
Asphalt margins for the third quarter of 2015 were $120.39 per ton compared to $14.31 per ton for the same period in 2014. On a
cash basis (i.e., excluding inventory effects), asphalt margins in
the third quarter of 2015 were $115.04 per ton compared to $9.03 per ton in the third quarter of 2014. The
increase in asphalt margins was primarily due to a smaller
reduction in blended asphalt sales price relative to the reduction
in cost of blended asphalt during the third quarter of 2015
compared to the third quarter of 2014.
Retail fuel margins increased to 21.7
cents per gallon in the third quarter of 2015 from
20.8 cents per gallon in the third
quarter of 2014. Retail fuel sales volume increased to 51.4 million
gallons in the third quarter of 2015 from 48.6 million gallons in
the third quarter of 2014. Merchandise margins increased to 31.4%
in the third quarter of 2015 from 31.2% in the third quarter of
2014. Merchandise sales increased to $86.6
million in the third quarter of 2015 from $84.8 million in the third quarter of 2014.
YEAR-TO-DATE 2015
Special items reduced earnings by $4.8
million for the first nine months of 2015 primarily as a
result of after-tax losses of $4.6
million related to an asphalt inventory adjustment and
after-tax expenses of $7.1 million
associated with our employee retention plan, partially offset by
after-tax unrealized gains of $6.4
million associated with commodity swaps and $0.4 million associated with gains recognized on
disposition of assets. Special items reduced earnings by
$9.6 million for the first nine
months of 2014 primarily as a result of after-tax unrealized losses
of $9.7 million associated with
commodity swaps.
The combined total refinery average throughput for the first
nine months of 2015 was 147,800 bpd, consisting of 74,562 bpd at
the Big Spring refinery and 73,238
bpd at the Krotz Springs refinery,
compared to a combined total refinery average throughput of 134,062
bpd for the first nine months of 2014, consisting of 62,382 bpd at
the Big Spring refinery and 71,680
bpd at the Krotz Springs refinery.
During the first nine months of 2014, refinery throughput at the
Big Spring refinery was reduced as
we completed both the planned major turnaround and the vacuum tower
project.
Refinery operating margin at the Big
Spring refinery was $15.95 per
barrel for the first nine months of 2015 compared to $17.35 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to the less
favorable industry margin environment. The unfavorable contraction
in the WTI Cushing to WTI Midland and the WTI Cushing to WTS
spreads was greater than the improvement in the Gulf Coast 3/2/1
spread and the cost of crude benefit from the market moving from
backwardation into contango.
Refinery operating margin at the Krotz
Springs refinery was $8.05 per
barrel for the first nine months of 2015 compared to $8.68 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to the less
favorable industry margin environment. The unfavorable contraction
in the WTI Cushing to WTI Midland spread was greater than the
improvement in the Gulf Coast 2/1/1 high sulfur diesel crack
spread, the benefit from the widening LLS to WTI Cushing spread and
the cost of crude benefit from the market moving from backwardation
into contango.
The average Gulf Coast 3/2/1 crack spread for the first nine
months of 2015 was $19.08 per barrel
compared to $16.37 per barrel for the
same period in 2014. The average Gulf Coast 2/1/1 high sulfur
diesel crack spread for the first nine months of 2015 was
$12.05 per barrel compared to
$11.43 per barrel for the same period
in 2014.
The average WTI Cushing to WTI Midland spread for the first nine
months of 2015 was $0.60 per barrel
compared to $7.31 per barrel for the
same period in 2014. The average WTI Cushing to WTS spread for the
first nine months of 2015 was $0.02
per barrel compared to $6.58 per
barrel for the same period in 2014. The average LLS to WTI Cushing
spread for the first nine months of 2015 was $4.27 per barrel compared to $4.09 per barrel for the same period in 2014.
The contango environment for the first nine months of 2015
created a cost of crude benefit of $1.04 per barrel compared to the backwardated
environment creating a cost of crude detriment of $0.74 per barrel for the same period in 2014.
Asphalt margins for the first nine months of 2015 were
$106.60 per ton compared to
$46.77 per ton for same period in
2014. On a cash basis (i.e., excluding inventory effects), asphalt
margins in the first nine months of 2015 were $110.12 per ton compared to $42.65 per ton in the first nine months of 2014.
The increase in asphalt margins was primarily due to a smaller
reduction in blended asphalt sales price relative to the reduction
in cost of blended asphalt during the first nine months of 2015
compared to the first nine months of 2014.
Retail fuel margins increased to 21.8
cents per gallon in the first nine months of 2015 from
19.5 cents per gallon in the first
nine months of 2014. Retail fuel sales volume increased to 147.0
million gallons in the first nine months of 2015 from 142.9 million
gallons in the first nine months of 2014. Merchandise margins
increased to 32.1% in the first nine months of 2015 from 31.1% in
the first nine months of 2014. Merchandise sales increased to
$247.5 million in the first nine
months of 2015 from $241.3 million in
the first nine months of 2014.
Alon also announced today that its Board of Directors has
declared the regular quarterly cash dividend of $0.15 per share. The dividend is payable on
December 24, 2015 to stockholders of record at the close of
business on December 8, 2015.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast
live over the Internet on Tuesday, November
3, 2015, at 11:00 a.m. Eastern
Time (10:00 a.m. Central
Time), to discuss the third quarter 2015 results. To access
the call, please dial 877-407-0672, or 412-902-0003 for
international callers, and ask for the Alon USA Energy call at least 10 minutes prior to
the start time. Investors may also listen to the conference live by
logging on to the Alon investor relations website,
http://ir.alonusa.com. A telephonic replay of the conference call
will be available through November 17,
2015 and may be accessed by calling 877-660-6853, or
201-612-7415 for international callers, and using the passcode
13621429#. A webcast archive will also be available at
http://ir.alonusa.com shortly after the call and will be accessible
for approximately 90 days. For more information, please contact
Donna Washburn at Dennard -
Lascar Associates at 713-529-6600 or email
dwashburn@dennardlascar.com.
Alon USA Energy, Inc.,
headquartered in Dallas, Texas, is
an independent refiner and marketer of petroleum products,
operating primarily in the South Central, Southwestern and Western
regions of the United States. Alon
owns 100% of the general partner and approximately 82% of the
limited partner interests in Alon USA Partners, LP, which owns a crude oil
refinery in Big Spring, Texas with
a crude oil throughput capacity of 73,000 barrels per day. In
addition, Alon directly owns crude oil refineries in Krotz Springs, Louisiana with a crude oil
throughput capacity of 74,000 barrels per day and in California with a crude oil throughput
capacity of 70,000 barrels per day. Alon is a leading marketer of
asphalt, which it distributes primarily through asphalt terminals
located predominately in the Southwestern and Western United States. Alon is the largest
7-Eleven licensee in the United
States and operates over 300 convenience stores in Central
and West Texas and New Mexico.
Any statements in this press release that are not statements of
historical fact are forward-looking statements. Forward-looking
statements reflect our current expectations regarding future
events, results or outcomes. These expectations may or may not be
realized. Some of these expectations may be based upon assumptions
or judgments that prove to be incorrect. In addition, our business
and operations involve numerous risks and uncertainties, many of
which are beyond our control, which could result in our
expectations not being realized or otherwise materially affect our
financial condition, results of operations and cash flows.
Additional information regarding these and other risks is contained
in our filings with the Securities and Exchange Commission.
This press release does not constitute an offer to sell or the
solicitation of offers to buy any security and shall not constitute
an offer, solicitation or sale of any security in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
- Tables to follow -
ALON USA ENERGY,
INC. AND SUBSIDIARIES CONSOLIDATED
|
EARNINGS
RELEASE
|
|
RESULTS OF
OPERATIONS - FINANCIAL DATA
(ALL INFORMATION
IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER
31, 2014, IS UNAUDITED)
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per share data)
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(1)
|
$
|
1,151,204
|
|
|
$
|
1,850,097
|
|
|
$
|
3,555,785
|
|
|
$
|
5,276,225
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
914,193
|
|
|
1,608,080
|
|
|
2,878,612
|
|
|
4,695,072
|
|
Direct operating
expenses
|
65,047
|
|
|
70,356
|
|
|
192,108
|
|
|
208,664
|
|
Selling, general and
administrative expenses (2)
|
54,100
|
|
|
44,114
|
|
|
148,889
|
|
|
129,836
|
|
Depreciation and
amortization (3)
|
31,033
|
|
|
32,170
|
|
|
94,262
|
|
|
91,501
|
|
Total operating costs
and expenses
|
1,064,373
|
|
|
1,754,720
|
|
|
3,313,871
|
|
|
5,125,073
|
|
Gain (loss) on
disposition of assets
|
23
|
|
|
(1,372)
|
|
|
595
|
|
|
745
|
|
Operating
income
|
86,854
|
|
|
94,005
|
|
|
242,509
|
|
|
151,897
|
|
Interest
expense
|
(20,696)
|
|
|
(28,202)
|
|
|
(59,950)
|
|
|
(85,473)
|
|
Equity earnings of
investees
|
3,451
|
|
|
1,982
|
|
|
4,725
|
|
|
2,801
|
|
Other income,
net
|
92
|
|
|
20
|
|
|
151
|
|
|
641
|
|
Income before income
tax expense
|
69,701
|
|
|
67,805
|
|
|
187,435
|
|
|
69,866
|
|
Income tax
expense
|
17,325
|
|
|
14,331
|
|
|
53,142
|
|
|
14,454
|
|
Net income
|
52,376
|
|
|
53,474
|
|
|
134,293
|
|
|
55,412
|
|
Net income
attributable to non-controlling interest
|
10,440
|
|
|
14,992
|
|
|
29,008
|
|
|
23,662
|
|
Net income available
to stockholders
|
$
|
41,936
|
|
|
$
|
38,482
|
|
|
$
|
105,285
|
|
|
$
|
31,750
|
|
Earnings per share,
basic
|
$
|
0.60
|
|
|
$
|
0.56
|
|
|
$
|
1.51
|
|
|
$
|
0.46
|
|
Weighted average
shares outstanding, basic (in thousands)
|
69,893
|
|
|
69,153
|
|
|
69,687
|
|
|
68,873
|
|
Earnings per share,
diluted
|
$
|
0.58
|
|
|
$
|
0.55
|
|
|
$
|
1.46
|
|
|
$
|
0.46
|
|
Weighted average
shares outstanding, diluted (in thousands)
|
72,526
|
|
|
69,556
|
|
|
72,281
|
|
|
69,261
|
|
Cash dividends per
share
|
$
|
0.15
|
|
|
$
|
0.10
|
|
|
$
|
0.40
|
|
|
$
|
0.22
|
|
CASH FLOW
DATA:
|
|
|
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
60,419
|
|
|
$
|
112,942
|
|
|
$
|
176,310
|
|
|
$
|
144,584
|
|
Investing
activities
|
(44,353)
|
|
|
(43,746)
|
|
|
(78,298)
|
|
|
(84,753)
|
|
Financing
activities
|
(41,032)
|
|
|
(72,779)
|
|
|
(74,109)
|
|
|
(90,762)
|
|
OTHER
DATA:
|
|
|
|
|
|
|
|
Adjusted net income
available to stockholders (4)
|
$
|
41,981
|
|
|
$
|
40,603
|
|
|
$
|
110,119
|
|
|
$
|
41,389
|
|
Adjusted earnings per
share (4)
|
$
|
0.60
|
|
|
$
|
0.59
|
|
|
$
|
1.58
|
|
|
$
|
0.60
|
|
Adjusted EBITDA
(5)
|
$
|
120,318
|
|
|
$
|
130,813
|
|
|
$
|
332,038
|
|
|
$
|
256,869
|
|
Capital expenditures
(6)
|
26,211
|
|
|
19,141
|
|
|
57,262
|
|
|
73,796
|
|
Capital expenditures
for turnarounds and catalysts
|
7,047
|
|
|
25,123
|
|
|
11,410
|
|
|
51,392
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
BALANCE SHEET DATA
(end of period):
|
(dollars in
thousands)
|
Cash and cash
equivalents
|
$
|
238,864
|
|
|
$
|
214,961
|
|
Working
capital
|
161,573
|
|
|
126,665
|
|
Total
assets
|
2,220,029
|
|
|
2,200,874
|
|
Total debt
|
560,825
|
|
|
563,687
|
|
Total debt less cash
and cash equivalents
|
321,961
|
|
|
348,726
|
|
Total
equity
|
739,936
|
|
|
673,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REFINING AND
MARKETING SEGMENT
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per barrel data and pricing
statistics)
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(7)
|
$
|
950,926
|
|
|
$
|
1,617,281
|
|
|
$
|
3,036,458
|
|
|
$
|
4,643,523
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
781,731
|
|
|
1,414,827
|
|
|
2,505,983
|
|
|
4,186,884
|
|
Direct operating
expenses
|
58,162
|
|
|
60,086
|
|
|
170,454
|
|
|
178,362
|
|
Selling, general and
administrative expenses
|
23,190
|
|
|
15,637
|
|
|
59,469
|
|
|
44,637
|
|
Depreciation and
amortization
|
26,363
|
|
|
27,506
|
|
|
80,366
|
|
|
77,587
|
|
Total operating costs
and expenses
|
889,446
|
|
|
1,518,056
|
|
|
2,816,272
|
|
|
4,487,470
|
|
Gain (loss) on
disposition of assets
|
1
|
|
|
(1,197)
|
|
|
523
|
|
|
(1,256)
|
|
Operating
income
|
$
|
61,481
|
|
|
$
|
98,028
|
|
|
$
|
220,709
|
|
|
$
|
154,797
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
Refinery operating
margin – Big Spring (8)
|
$
|
16.71
|
|
|
$
|
19.98
|
|
|
$
|
15.95
|
|
|
$
|
17.35
|
|
Refinery operating
margin – Krotz Springs (8)
|
6.66
|
|
|
9.48
|
|
|
8.05
|
|
|
8.68
|
|
Refinery direct
operating expense – Big Spring (9)
|
3.46
|
|
|
3.74
|
|
|
3.53
|
|
|
4.69
|
|
Refinery direct
operating expense – Krotz Springs (9)
|
3.82
|
|
|
3.88
|
|
|
3.70
|
|
|
4.01
|
|
Capital
expenditures
|
$
|
18,627
|
|
|
$
|
11,468
|
|
|
$
|
35,503
|
|
|
$
|
55,323
|
|
Capital expenditures
for turnarounds and catalysts
|
7,047
|
|
|
25,123
|
|
|
11,410
|
|
|
51,392
|
|
PRICING
STATISTICS:
|
|
|
|
|
|
|
|
Crack spreads (3/2/1)
(per barrel):
|
|
|
|
|
|
|
|
Gulf Coast
(10)
|
$
|
19.77
|
|
|
$
|
15.90
|
|
|
$
|
19.08
|
|
|
$
|
16.37
|
|
Crack spreads (2/1/1)
(per barrel):
|
|
|
|
|
|
|
|
Gulf Coast high
sulfur diesel (10)
|
$
|
12.57
|
|
|
$
|
11.07
|
|
|
$
|
12.05
|
|
|
$
|
11.43
|
|
WTI Cushing crude oil
(per barrel)
|
$
|
46.41
|
|
|
$
|
97.55
|
|
|
$
|
50.91
|
|
|
$
|
99.74
|
|
Crude oil
differentials (per barrel):
|
|
|
|
|
|
|
|
WTI Cushing less WTI
Midland (11)
|
$
|
(0.72)
|
|
|
$
|
9.93
|
|
|
$
|
0.60
|
|
|
$
|
7.31
|
|
WTI Cushing less WTS
(11)
|
(1.46)
|
|
|
8.14
|
|
|
0.02
|
|
|
6.58
|
|
LLS less WTI Cushing
(11)
|
3.89
|
|
|
3.41
|
|
|
4.27
|
|
|
4.09
|
|
Brent less LLS
(11)
|
(0.26)
|
|
|
1.72
|
|
|
0.30
|
|
|
4.43
|
|
Brent less WTI
Cushing (11)
|
3.78
|
|
|
4.15
|
|
|
4.28
|
|
|
7.25
|
|
Product prices
(dollars per gallon):
|
|
|
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.61
|
|
|
$
|
2.65
|
|
|
$
|
1.66
|
|
|
$
|
2.71
|
|
Gulf Coast ultra-low
sulfur diesel
|
1.52
|
|
|
2.80
|
|
|
1.68
|
|
|
2.88
|
|
Gulf Coast high
sulfur diesel
|
1.39
|
|
|
2.68
|
|
|
1.54
|
|
|
2.78
|
|
Natural gas (per
MMBtu)
|
2.73
|
|
|
3.95
|
|
|
2.76
|
|
|
4.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
BIG SPRING
REFINERY
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
September 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTS crude
|
30,810
|
|
|
40.6
|
|
|
37,566
|
|
|
50.2
|
|
|
35,041
|
|
|
47.0
|
|
|
28,524
|
|
|
45.7
|
|
WTI crude
|
42,503
|
|
|
56.1
|
|
|
34,633
|
|
|
46.3
|
|
|
36,834
|
|
|
49.4
|
|
|
31,330
|
|
|
50.2
|
|
Blendstocks
|
2,484
|
|
|
3.3
|
|
|
2,639
|
|
|
3.5
|
|
|
2,687
|
|
|
3.6
|
|
|
2,528
|
|
|
4.1
|
|
Total refinery
throughput (12)
|
75,797
|
|
|
100.0
|
|
|
74,838
|
|
|
100.0
|
|
|
74,562
|
|
|
100.0
|
|
|
62,382
|
|
|
100.0
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
37,503
|
|
|
49.5
|
|
|
36,842
|
|
|
49.0
|
|
|
37,155
|
|
|
49.6
|
|
|
30,207
|
|
|
48.4
|
|
Diesel/jet
|
28,623
|
|
|
37.8
|
|
|
28,857
|
|
|
38.4
|
|
|
27,596
|
|
|
36.9
|
|
|
21,964
|
|
|
35.2
|
|
Asphalt
|
2,452
|
|
|
3.2
|
|
|
3,052
|
|
|
4.1
|
|
|
2,733
|
|
|
3.7
|
|
|
2,705
|
|
|
4.3
|
|
Petrochemicals
|
4,588
|
|
|
6.1
|
|
|
4,305
|
|
|
5.7
|
|
|
4,770
|
|
|
6.4
|
|
|
3,514
|
|
|
5.6
|
|
Other
|
2,595
|
|
|
3.4
|
|
|
2,078
|
|
|
2.8
|
|
|
2,510
|
|
|
3.4
|
|
|
4,030
|
|
|
6.5
|
|
Total refinery
production (13)
|
75,761
|
|
|
100.0
|
|
|
75,134
|
|
|
100.0
|
|
|
74,764
|
|
|
100.0
|
|
|
62,420
|
|
|
100.0
|
|
Refinery utilization
(14)
|
|
|
100.4
|
%
|
|
|
|
98.9
|
%
|
|
|
|
98.5
|
%
|
|
|
|
97.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
KROTZ SPRINGS
REFINERY
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
September 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTI crude
|
21,347
|
|
|
30.4
|
|
|
31,182
|
|
|
40.5
|
|
|
27,010
|
|
|
36.9
|
|
|
28,346
|
|
|
39.5
|
|
Gulf Coast sweet
crude
|
43,338
|
|
|
61.7
|
|
|
44,473
|
|
|
57.8
|
|
|
41,838
|
|
|
57.1
|
|
|
42,139
|
|
|
58.8
|
|
Blendstocks
|
5,588
|
|
|
7.9
|
|
|
1,279
|
|
|
1.7
|
|
|
4,390
|
|
|
6.0
|
|
|
1,195
|
|
|
1.7
|
|
Total refinery
throughput (12)
|
70,273
|
|
|
100.0
|
|
|
76,934
|
|
|
100.0
|
|
|
73,238
|
|
|
100.0
|
|
|
71,680
|
|
|
100.0
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
32,802
|
|
|
45.7
|
|
|
35,532
|
|
|
45.2
|
|
|
34,274
|
|
|
45.8
|
|
|
33,459
|
|
|
45.7
|
|
Diesel/jet
|
29,943
|
|
|
41.8
|
|
|
34,246
|
|
|
43.6
|
|
|
31,041
|
|
|
41.5
|
|
|
31,292
|
|
|
42.8
|
|
Heavy Oils
|
1,299
|
|
|
1.8
|
|
|
1,421
|
|
|
1.8
|
|
|
1,337
|
|
|
1.8
|
|
|
1,129
|
|
|
1.5
|
|
Other
|
7,676
|
|
|
10.7
|
|
|
7,414
|
|
|
9.4
|
|
|
8,168
|
|
|
10.9
|
|
|
7,289
|
|
|
10.0
|
|
Total refinery
production (13)
|
71,720
|
|
|
100.0
|
|
|
78,613
|
|
|
100.0
|
|
|
74,820
|
|
|
100.0
|
|
|
73,169
|
|
|
100.0
|
|
Refinery utilization
(14)
|
|
|
87.4
|
%
|
|
|
|
102.2
|
%
|
|
|
|
93.0
|
%
|
|
|
|
95.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPHALT
SEGMENT
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per ton data)
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(15)
|
$
|
88,436
|
|
|
$
|
136,992
|
|
|
$
|
208,988
|
|
|
$
|
350,840
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales (15)
(16)
|
59,031
|
|
|
134,116
|
|
|
174,085
|
|
|
329,651
|
|
Direct operating
expenses
|
6,885
|
|
|
10,270
|
|
|
21,654
|
|
|
30,302
|
|
Selling, general and
administrative expenses
|
2,706
|
|
|
1,348
|
|
|
7,237
|
|
|
6,375
|
|
Depreciation and
amortization
|
1,313
|
|
|
1,219
|
|
|
3,665
|
|
|
3,581
|
|
Total operating costs
and expenses
|
69,935
|
|
|
146,953
|
|
|
206,641
|
|
|
369,909
|
|
Gain (loss) on
disposition of assets
|
—
|
|
|
(136)
|
|
|
—
|
|
|
1,878
|
|
Operating income
(loss) (19)
|
$
|
18,501
|
|
|
$
|
(10,097)
|
|
|
$
|
2,347
|
|
|
$
|
(17,191)
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Blended asphalt sales
volume (tons in thousands) (17)
|
174
|
|
|
186
|
|
|
347
|
|
|
412
|
|
Non-blended asphalt
sales volume (tons in thousands) (18)
|
8
|
|
|
15
|
|
|
41
|
|
|
41
|
|
Blended asphalt sales
price per ton (17)
|
$
|
494.45
|
|
|
$
|
587.31
|
|
|
$
|
496.63
|
|
|
$
|
571.15
|
|
Non-blended asphalt
sales price per ton (18)
|
132.13
|
|
|
422.93
|
|
|
281.22
|
|
|
393.07
|
|
Asphalt margin per
ton (19)
|
120.39
|
|
|
14.31
|
|
|
106.60
|
|
|
46.77
|
|
Capital
expenditures
|
$
|
840
|
|
|
$
|
1,053
|
|
|
$
|
2,484
|
|
|
$
|
4,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL
SEGMENT
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per gallon data)
|
STATEMENT OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(1)
|
$
|
208,856
|
|
|
$
|
249,120
|
|
|
$
|
591,475
|
|
|
$
|
723,027
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales
(16)
|
170,445
|
|
|
212,433
|
|
|
479,680
|
|
|
619,702
|
|
Selling, general and
administrative expenses
|
28,024
|
|
|
26,951
|
|
|
81,651
|
|
|
78,296
|
|
Depreciation and
amortization
|
3,024
|
|
|
2,847
|
|
|
9,004
|
|
|
8,544
|
|
Total operating costs
and expenses
|
201,493
|
|
|
242,231
|
|
|
570,335
|
|
|
706,542
|
|
Gain (loss) on
disposition of assets
|
22
|
|
|
(39)
|
|
|
72
|
|
|
124
|
|
Operating
income
|
$
|
7,385
|
|
|
$
|
6,850
|
|
|
$
|
21,212
|
|
|
$
|
16,609
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Number of stores (end
of period) (20)
|
308
|
|
|
296
|
|
|
308
|
|
|
296
|
|
Retail fuel sales
(thousands of gallons)
|
51,386
|
|
|
48,567
|
|
|
146,992
|
|
|
142,850
|
|
Retail fuel sales
(thousands of gallons per site per month) (20)
|
59
|
|
|
57
|
|
|
57
|
|
|
56
|
|
Retail fuel margin
(cents per gallon) (21)
|
21.7
|
|
|
20.8
|
|
|
21.8
|
|
|
19.5
|
|
Retail fuel sales
price (dollars per gallon) (22)
|
$
|
2.38
|
|
|
$
|
3.38
|
|
|
$
|
2.34
|
|
|
$
|
3.37
|
|
Merchandise
sales
|
$
|
86,567
|
|
|
$
|
84,794
|
|
|
$
|
247,547
|
|
|
$
|
241,311
|
|
Merchandise sales
(per site per month) (20)
|
$
|
96
|
|
|
$
|
95
|
|
|
$
|
93
|
|
|
$
|
91
|
|
Merchandise margin
(23)
|
31.4
|
%
|
|
31.2
|
%
|
|
32.1
|
%
|
|
31.1
|
%
|
Capital
expenditures
|
$
|
5,365
|
|
|
$
|
5,872
|
|
|
$
|
14,883
|
|
|
$
|
12,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes excise taxes on sales by the retail segment
of $20,068 and $19,012 for the three months ended September 30,
2015 and 2014, respectively, and $57,493 and $55,923 for the nine
months ended September 30, 2015 and 2014,
respectively.
|
|
|
(2)
|
Includes corporate headquarters selling, general and
administrative expenses of $180 and $178 for the three months ended
September 30, 2015 and 2014, respectively, and $532 and $528 for
the nine months ended September 30, 2015 and 2014,
respectively, which are not allocated to our three operating
segments.
|
|
|
(3)
|
Includes corporate depreciation and amortization of
$333 and $598 for the three months ended September 30, 2015 and
2014, respectively, and $1,227 and $1,789 for the nine months ended
September 30, 2015 and 2014, respectively, which are not
allocated to our three operating segments.
|
|
|
(4)
|
The following table provides a reconciliation of net
income available to stockholders under United States generally
accepted accounting principles ("GAAP") to adjusted net income
available to stockholders utilized in determining adjusted earnings
per share, excluding after-tax write-off of original issuance
discount, after-tax write-off of debt issuance costs, after-tax
employee retention expense, after-tax (gain) loss on asphalt
inventory adjustment, after-tax unrealized (gains) losses on
commodity swaps and after-tax (gain) loss on disposition of assets.
Adjusted net income available to stockholders is not a recognized
measurement under GAAP; however, the amounts included in adjusted
net income available to stockholders are derived from amounts
included in our consolidated financial statements. Our management
believes that the presentation of adjusted net income available to
stockholders and adjusted earnings per share, excluding these
items, is useful to investors because it provides a more meaningful
measurement for evaluation of our Company's operating
results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(dollars in
thousands)
|
|
|
Net income available
to stockholders
|
$
|
41,936
|
|
|
$
|
38,482
|
|
|
$
|
105,285
|
|
|
$
|
31,750
|
|
|
|
Plus: Write-off of
original issuance discount, net of tax
|
—
|
|
|
46
|
|
|
—
|
|
|
278
|
|
|
|
Plus: Write-off of
debt issuance costs, net of tax
|
—
|
|
|
46
|
|
|
—
|
|
|
277
|
|
|
|
Plus: Employee
retention expense, net of tax
|
6,417
|
|
|
|
|
|
7,060
|
|
|
|
|
|
|
Less: (Gain) loss on
asphalt inventory adjustment, net of tax
|
(5,549)
|
|
|
—
|
|
|
4,558
|
|
|
—
|
|
|
|
Less: Unrealized
(gains) losses on commodity swaps, net of tax
|
(806)
|
|
|
973
|
|
|
(6,364)
|
|
|
9,660
|
|
|
|
Less: (Gain) loss on
disposition of assets, net of tax
|
(17)
|
|
|
1,056
|
|
|
(420)
|
|
|
(576)
|
|
|
|
Adjusted net income
available to stockholders
|
$
|
41,981
|
|
|
$
|
40,603
|
|
|
$
|
110,119
|
|
|
$
|
41,389
|
|
|
|
Adjusted earnings per
share *
|
$
|
0.60
|
|
|
$
|
0.59
|
|
|
$
|
1.58
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
*
Adjusted earnings per share includes the
effects of dividends on preferred stock on adjusted net income
available to stockholders necessary to calculate
earnings per share.
|
|
|
(5)
|
Adjusted EBITDA represents earnings before net income
attributable to non-controlling interest, income tax expense,
interest expense, depreciation and amortization, (gain) loss on
disposition of assets and unrealized (gains) losses on commodity
swaps. Adjusted EBITDA is not a recognized measurement under GAAP;
however, the amounts included in Adjusted EBITDA are derived from
amounts included in our consolidated financial statements. Our
management believes that the presentation of Adjusted EBITDA is
useful to investors because it is frequently used by securities
analysts, investors, and other interested parties in the evaluation
of companies in our industry. In addition, our management believes
that Adjusted EBITDA is useful in evaluating our operating
performance compared to that of other companies in our industry
because the calculation of Adjusted EBITDA generally eliminates the
effects of net income attributable to non-controlling interest,
income tax expense, interest expense, (gain) loss on disposition of
assets, unrealized (gains) losses on commodity swaps and the
accounting effects of capital expenditures and acquisitions, items
that may vary for different companies for reasons unrelated to
overall operating performance.
|
|
|
|
Adjusted EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our results as
reported under GAAP. Some of these limitations are:
|
|
|
|
- Adjusted EBITDA does not reflect our cash
expenditures or future requirements for capital expenditures or
contractual commitments;
|
|
- Adjusted EBITDA does not reflect the interest expense
or the cash requirements necessary to service interest or principal
payments on our debt;
|
|
- Adjusted EBITDA does not reflect the prior claim that
non-controlling interest have on the income generated by
non-wholly-owned subsidiaries;
|
|
- Adjusted EBITDA does not reflect changes in or cash
requirements for our working capital needs; and
|
|
- Our calculation of Adjusted EBITDA may differ from
EBITDA calculations of other companies in our industry, limiting
its usefulness as a comparative measure.
|
|
Because of these
limitations, Adjusted EBITDA should not be considered a measure of
discretionary cash available to us to invest in the growth of our
business. We compensate for these limitations by relying primarily
on our GAAP results and using Adjusted EBITDA only
supplementally.
|
|
|
|
The following table
reconciles net income available to stockholders to Adjusted EBITDA
for the three and nine months ended September 30, 2015 and
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(dollars in
thousands)
|
|
|
Net income available
to stockholders
|
$
|
41,936
|
|
|
$
|
38,482
|
|
|
$
|
105,285
|
|
|
$
|
31,750
|
|
|
|
Net income
attributable to non-controlling interest
|
10,440
|
|
|
14,992
|
|
|
29,008
|
|
|
23,662
|
|
|
|
Income tax
expense
|
17,325
|
|
|
14,331
|
|
|
53,142
|
|
|
14,454
|
|
|
|
Interest
expense
|
20,696
|
|
|
28,202
|
|
|
59,950
|
|
|
85,473
|
|
|
|
Depreciation and
amortization
|
31,033
|
|
|
32,170
|
|
|
94,262
|
|
|
91,501
|
|
|
|
(Gain) loss on
disposition of assets
|
(23)
|
|
|
1,372
|
|
|
(595)
|
|
|
(745)
|
|
|
|
Unrealized (gains)
losses on commodity swaps
|
(1,089)
|
|
|
1,264
|
|
|
(9,014)
|
|
|
10,774
|
|
|
|
Adjusted
EBITDA
|
$
|
120,318
|
|
|
$
|
130,813
|
|
|
$
|
332,038
|
|
|
$
|
256,869
|
|
|
|
|
Adjusted EBITDA does
not exclude a (gain) loss of $(7,494) and $6,456 for the three and
nine months ended September 30, 2015, respectively, resulting
from a price adjustment related to asphalt inventory.
|
|
|
(6)
|
Includes corporate capital expenditures of $1,379 and
$748 for the three months ended September 30, 2015 and 2014,
respectively, and $4,392 and $2,107 for the nine months ended
September 30, 2015 and 2014, respectively, which are not
allocated to our three operating segments.
|
|
|
(7)
|
Net sales include intersegment sales to our asphalt
and retail segments at prices which approximate wholesale market
prices. These intersegment sales are eliminated through
consolidation of our financial statements.
|
|
|
(8)
|
Refinery operating margin is a per barrel measurement
calculated by dividing the margin between net sales and cost of
sales (exclusive of substantial hedge positions and certain
inventory adjustments) attributable to each refinery by the
refinery's throughput volumes. Industry-wide refining results are
driven and measured by the margins between refined product prices
and the prices for crude oil, which are referred to as crack
spreads. We compare our refinery operating margins to these crack
spreads to assess our operating performance relative to other
participants in our industry.
|
|
|
|
The refinery
operating margin for the three and nine months ended
September 30, 2015 excludes realized and unrealized gains on
commodity swaps of $12,101 and $49,456, respectively. For the nine
months ended September 30, 2015, $8,569 related substantially
to inventory adjustments was not included in cost of sales for the
Big Spring refinery and the Krotz Springs refinery.
|
|
|
|
The refinery
operating margin for the three and nine months ended
September 30, 2014 excludes realized and unrealized losses on
commodity swaps of $1,264 and $9,891, respectively.
|
|
|
(9)
|
Refinery direct operating expense is a per barrel
measurement calculated by dividing direct operating expenses at our
refineries by the applicable refinery's total throughput
volumes.
|
|
|
(10)
|
We compare our Big Spring refinery's operating margin
to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack
spread is calculated assuming that three barrels of WTI Cushing
crude oil are converted, or cracked, into two barrels of Gulf Coast
conventional gasoline and one barrel of Gulf Coast ultra-low sulfur
diesel.
|
|
|
|
We compare our Krotz
Springs refinery's operating margin to the Gulf Coast 2/1/1 high
sulfur diesel crack spread. A Gulf Coast 2/1/1 high sulfur diesel
crack spread is calculated assuming that two barrels of LLS crude
oil are converted into one barrel of Gulf Coast conventional
gasoline and one barrel of Gulf Coast high sulfur
diesel.
|
|
|
(11)
|
The WTI Cushing less WTI Midland spread represents
the differential between the average price per barrel of WTI
Cushing crude oil and the average price per barrel of WTI Midland
crude oil. The WTI Cushing less WTS, or sweet/sour, spread
represents the differential between the average price per barrel of
WTI Cushing crude oil and the average price per barrel of WTS crude
oil. The LLS less WTI Cushing spread represents the differential
between the average price per barrel of LLS crude oil and the
average price per barrel of WTI Cushing crude oil. The Brent less
LLS spread represents the differential between the average price
per barrel of Brent crude oil and the average price per barrel of
LLS crude oil. The Brent less WTI Cushing spread represents the
differential between the average price per barrel of Brent crude
oil and the average price per barrel of WTI Cushing crude
oil.
|
|
|
(12)
|
Total refinery throughput represents the total
barrels per day of crude oil and blendstock inputs in the refinery
production process.
|
|
|
(13)
|
Total refinery production represents the barrels per
day of various products produced from processing crude and other
refinery feedstocks through the crude units and other conversion
units at the refineries.
|
|
|
(14)
|
Refinery utilization represents average daily crude
oil throughput divided by crude oil capacity, excluding planned
periods of downtime for maintenance and
turnarounds.
|
|
|
(15)
|
Net sales and cost of sales include asphalt purchases
sold as part of a supply and offtake arrangement of $1,344 and
$21,409 for the three months ended September 30, 2015 and 2014,
respectively, and $25,126 and $99,409 for the nine months ended
September 30, 2015 and 2014, respectively. The volumes
associated with these sales are excluded from the Key Operating
Statistics.
|
|
|
(16)
|
Cost of sales includes intersegment purchases of
asphalt blends and motor fuels from our refining and marketing
segment at prices which approximate wholesale market prices. These
intersegment purchases are eliminated through consolidation of our
financial statements.
|
|
|
(17)
|
Blended asphalt represents base material asphalt that
has been blended with other materials necessary to sell the asphalt
as a finished product.
|
|
|
(18)
|
Non-blended asphalt represents base material asphalt
and other components that require additional blending before being
sold as a finished product.
|
|
|
(19)
|
Asphalt margin is a per ton measurement calculated by
dividing the margin between net sales and cost of sales by the
total sales volume. Asphalt margins are used in the asphalt
industry to measure operating results related to asphalt
sales.
|
|
|
|
Asphalt margin for
the three and nine months ended September 30, 2015 excludes a
(gain) loss of $(7,494) and $6,456, respectively, resulting from a
price adjustment related to asphalt inventory. This (gain) loss is
included in the operating income (loss) of the asphalt
segment.
|
|
|
(20)
|
At September 30, 2015, we had 308 retail convenience
stores of which 297 sold fuel. At September 30, 2014, we had
296 retail convenience stores of which 284 sold
fuel.
|
|
|
|
The 14 stores
acquired in mid-August 2015 have been included in the per site key
operating statistics only for the period after
acquisition.
|
|
|
(21)
|
Retail fuel margin represents the difference between
retail fuel sales revenue and the net cost of purchased retail
fuel, including transportation costs and associated excise taxes,
expressed on a cents-per-gallon basis. Retail fuel margins are
frequently used in the retail industry to measure operating results
related to retail fuel sales.
|
|
|
(22)
|
Retail fuel sales price per gallon represents the
average sales price for retail fuels sold through our retail
convenience stores.
|
|
|
(23)
|
Merchandise margin represents the difference between
merchandise sales revenues and the delivered cost of merchandise
purchases, net of rebates and commissions, expressed as a
percentage of merchandise sales revenues. Merchandise margins, also
referred to as in-store margins, are commonly used in the retail
industry to measure in-store, or non-fuel, operating
results.
|
Contacts:
|
Stacey Hudson,
Investor Relations Manager
Alon USA Energy,
Inc.
972-367-3808
|
|
|
|
Investors: Jack
Lascar/Stephanie Zhadkevich
Dennard - Lascar
Associates, LLC
713-529-6600
|
|
|
|
Media: Blake
Lewis
Lewis Public Relations
214-635-3020
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-third-quarter-2015-results-300170691.html
SOURCE Alon USA Energy,
Inc.