DALLAS, June 28, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that the stockholders of Alon have approved all proposals related to the previously announced merger transaction pursuant to which Delek US Holdings, Inc. ("Delek") will acquire all of the outstanding shares of Alon common stock which it does not already own in an all-stock transaction. At a special meeting held today by Alon, approximately 89% of Alon's outstanding shares and 79% of Alon's outstanding shares beneficially owned by holders of Alon common stock other than Delek and its affiliates voted to approve the adoption of the previously disclosed merger agreement and the transaction. Of the shares voted, approximately 99% were cast in favor of the proposal. The closing of the transaction is subject to approval by the stockholders of Delek at a special meeting of Delek stockholders on June 29, 2017. Alon expects the transaction to close effective as of July 1, 2017.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. (NYSE: DK) is a diversified downstream energy company with assets in petroleum refining and logistics. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 155,000 barrels per day. Delek and its affiliates also own approximately 63 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP (NYSE: DKL) is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek currently owns approximately 47 percent of the outstanding common stock of Alon.
About Alon USA
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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding the proposed merger with Alon, integration and transition plans, synergies, opportunities, anticipated future performance and financial position, and other factors.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: risks and uncertainties related to the expected timing and likelihood of completion of the proposed merger, including the timing, terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the possibility that stockholders of Delek may not approve the issuance of new shares of common stock in the merger, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Delek's common stock or Alon's common stock, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Delek and Alon to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies, uncertainty related to timing and amount of future share repurchases and dividend payments, risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the southern United States; and other risks contained in Delek's and Alon's filings with the United States Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek and Alon undertake no obligation to update or revise any such forward-looking statements, except as required by applicable law or regulation.
Alon USA Investor/Media Relations Contacts:
Stacey Morris, Investor Relations Manager
Alon USA Energy, Inc.
972-367-3808
Investors: Jack Lascar
Dennard § Lascar Associates, LLC
713-529-6600
Media: Blake Lewis
Three Box Strategic Communications
214-635-3020
SOURCE Alon USA Energy, Inc.
NEW ORLEANS, June 6, 2017 /PRNewswire/ -- Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of Alon USA Energy, Inc. ("Alon" or the "Company") (NYSE: ALJ) to Delek US Holdings, Inc. (NYSE: DK). Under the terms of the proposed transaction, shareholders of Alon will receive only 0.5040 shares of Delek for each share of Alon that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn (lewis.kahn@ksfcounsel.com) toll free at any time at 855-768-1857.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
206 Covington St.
Madisonville, LA 70447
SOURCE Kahn Swick & Foti, LLC
DALLAS, May 8, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the first quarter of 2017. Net income available to stockholders for the first quarter of 2017 was $7.3 million, or $0.10 per share, compared to net loss available to stockholders of $(35.5) million, or $(0.51) per share, for the same period last year. Excluding special items, Alon recorded net income available to stockholders of $8.8 million, or $0.12 per share, for the first quarter of 2017, compared to net loss available to stockholders of $(29.2) million, or $(0.42) per share, for the same period last year.
Alan Moret, CEO, commented, "We are very pleased with our strong operational performance in the first quarter of 2017, with both of our refineries setting quarterly total throughput records. Our operations were complemented by an improvement in our benchmark Gulf Coast crack spreads relative to the fourth quarter of 2016 and the same quarter last year. Our first quarter results also benefited from the reduction to RINs expense that was booked during the quarter. We have been encouraged by the positive trends we have seen in refining into the second quarter of 2017, including improved discounts for Midland-priced crudes and improved crack spreads.
"The Big Spring refinery achieved record quarterly total throughput of almost 78,000 barrels per day in the first quarter of 2017. The refinery operating margin of $10.32 per barrel benefited from a strong wholesale marketing environment. Direct operating expense was only $3.54 per barrel as a result of efficient operations. We expect total throughput at the Big Spring refinery to average 73,000 barrels per day for the second quarter of 2017 and 75,000 barrels per day for the full year of 2017.
"The Krotz Springs refinery ran very well in the first quarter of 2017, with total throughput exceeding 77,000 barrels per day setting a new record under our ownership. The refinery operating margin of $5.31 per barrel does not include the $27.7 million benefit from the renewable fuel standard exemption. As was previously announced, in February 2017 the EPA approved a small refinery exemption for the Krotz Springs refinery from the requirements of the renewable fuel standard for the 2016 calendar year. On an after-tax basis, the impact of the exemption was $19.2 million or $0.27 per share. The Krotz Springs refinery's direct operating expense of $3.21 per barrel was very low and reflects continued efforts to control costs at the refinery. We expect total throughput at the Krotz Springs refinery to average 75,000 barrels per day for the second quarter of 2017 and 74,000 barrels per day for the full year of 2017.
"Turning to our retail segment, our fuel sales volumes increased by 6.2 percent in the first quarter of 2017 relative to the same quarter last year, despite a lower store count in the first quarter of 2017. Same-store fuel sales volumes were up 6.7 percent in the first quarter of 2017 compared to the first quarter of 2016. We continue to expect this business to improve as activity in the Permian Basin accelerates and as summer driving season begins."
Shai Even, Senior Vice President and CFO, commented, "The profitability of our California renewable fuels facility in the first quarter of 2017 was negatively impacted by the expiration of the federal blender's tax credit on December 31, 2016. As a result, the facility generated a small operating loss in the first quarter of 2017. However, if the blender's tax credit is reinstated and becomes effective retroactively to the beginning of 2017, we will record additional pre-tax income of $8.8 million before the effect of non-controlling interest. Total throughput for the first quarter of 2017 averaged approximately 2,700 barrels per day."
FIRST QUARTER 2017
Special items reduced net income by $1.4 million for the first quarter of 2017 primarily as a result of employee retention expenses of $2.0 million and expenses related to the Delek merger of $2.0 million, partially offset by gains of $1.7 million related to an asphalt inventory adjustment and $0.5 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $0.4 million. Special items increased net loss by $6.3 million for the first quarter of 2016 primarily as a result of employee retention expenses of $4.7 million, unrealized losses of $3.3 million associated with commodity swaps and $2.1 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $3.8 million.
The combined total refinery average throughput for the first quarter of 2017 was 155,081 barrels per day ("bpd"), consisting of 77,754 bpd at the Big Spring refinery and 77,327 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 138,998 bpd for the first quarter of 2016, consisting of 67,536 bpd at the Big Spring refinery and 71,462 bpd at the Krotz Springs refinery. During the first quarter of 2017, both of the Big Spring and Krotz Springs refineries reported the highest total quarterly average throughput since their respective acquisitions. The reduced throughput at our Big Spring refinery during the first quarter of 2016 was the result of planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit. The reduced throughput at the Krotz Springs refinery during the first quarter of 2016 was the result of our election to reduce the crude rate in order to optimize the refinery yield.
Refinery operating margin at the Big Spring refinery was $10.32 per barrel for the first quarter of 2017 compared to $7.77 per barrel for the same period in 2016. This increase in operating margin was primarily due to a higher Gulf Coast 3/2/1 crack spread and a widening of the WTI Cushing to WTS spread, partially offset by the increased premium in WTI Midland compared to WTI Cushing, increased RINs costs and a reduced benefit from the contango market environment which increased the cost of crude.
Refinery operating margin at the Krotz Springs refinery was $5.31 per barrel for the first quarter of 2017 compared to $1.59 per barrel for the same period in 2016. This increase in operating margin was primarily due to a higher Gulf Coast 2/1/1 high sulfur diesel crack spread and reduced RINs costs, partially offset by the increased premium in WTI Midland compared to WTI Cushing and a reduced benefit from the contango market environment which increased the cost of crude.
In February 2017, the EPA approved a small refinery exemption for the Krotz Springs refinery from the requirements of the renewable fuel standard for the 2016 calendar year, resulting in a reduction to RINs expense of $27.7 million in the first quarter of 2017.
The average Gulf Coast 3/2/1 crack spread was $13.75 per barrel for the first quarter of 2017 compared to $11.24 per barrel for the same period in 2016. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $9.74 per barrel for the first quarter of 2017 compared to $6.74 per barrel for the same period in 2016.
The average WTI Cushing to WTI Midland spread for the first quarter of 2017 was $(0.64) per barrel compared to $(0.13) per barrel for the same period in 2016. The average WTI Cushing to WTS spread for the first quarter of 2017 was $1.27 per barrel compared to $(0.10) per barrel for the same period in 2016. The average LLS to WTI Cushing spread for the first quarter of 2017 was $1.58 per barrel compared to $1.60 per barrel for the same period in 2016. The average Brent to WTI Cushing spread for the first quarter of 2017 was $1.66 per barrel compared to $0.49 per barrel for the same period in 2016. The average Brent to LLS spread for the first quarter of 2017 was $(0.13) per barrel compared to $(0.89) per barrel for the same period in 2016.
The average RINs cost effect on the Big Spring refinery operating margin was $0.59 per barrel for the first quarter of 2017, compared to $0.13 per barrel for the same period in 2016. The average RINs cost effect on the Krotz Springs refinery operating margin, excluding the impact of the 2016 exemption, was $1.49 per barrel for the first quarter of 2017, compared to $1.60 per barrel for the same period in 2016.
The contango environment in the first quarter of 2017 created an average cost of crude benefit of $1.00 per barrel compared to an average cost of crude benefit of $1.83 per barrel for the same period in 2016.
Our California renewable fuels facility generated operating income (loss) of $(2.4) million for the first quarter of 2017, compared to $7.2 million for the first quarter of 2016. The decrease was primarily due to the expiration of the blender's tax credit on December 31, 2016.
Asphalt margins for the first quarter of 2017 were $78.45 per ton compared to $84.16 per ton for the same period in 2016. On a cash basis (i.e., excluding inventory effects), asphalt margins in the first quarter of 2017 were $74.39 per ton compared to $91.12 per ton in the first quarter of 2016.
Retail fuel margins decreased to 19.5 cents per gallon in the first quarter of 2017 from 19.9 cents per gallon in the first quarter of 2016. Retail fuel sales volume increased to 53.1 million gallons in the first quarter of 2017 from 50.0 million gallons in the first quarter of 2016.
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 June 8, 2017 to stockholders of record at the close of business on May 22, 2017.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2017, at 12:30 p.m. Eastern Time (11:30 a.m. Central Time), to discuss the first quarter 2017 financial 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 May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660045#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 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 approximately 300 convenience stores which also market motor fuels 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.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Energy, Inc. 972-367-3808 | |
Investors: Jack Lascar Dennard § Lascar Associates, LLC 713-529-6600 | ||
Media: Blake Lewis |
- 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, 2016, IS UNAUDITED) |
For the Three Months Ended | ||||||
March 31, | |||||||
2017 |
2016 | ||||||
(dollars in thousands, except per share | |||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||
Net sales (1) |
$ |
1,150,593 |
$ |
849,973 |
|||
Operating costs and expenses: |
|||||||
Cost of sales |
972,874 |
735,144 |
|||||
Direct operating expenses |
64,242 |
68,617 |
|||||
Selling, general and administrative expenses (2) |
49,225 |
48,701 |
|||||
Depreciation and amortization (3) |
36,547 |
34,862 |
|||||
Total operating costs and expenses |
1,122,888 |
887,324 |
|||||
Gain (loss) on disposition of assets |
476 |
(2,088) |
|||||
Operating income (loss) |
28,181 |
(39,439) |
|||||
Interest expense |
(15,117) |
(18,307) |
|||||
Equity earnings (losses) of investees |
(133) |
378 |
|||||
Other income (loss), net |
(89) |
72 |
|||||
Income (loss) before income tax expense (benefit) |
12,842 |
(57,296) |
|||||
Income tax expense (benefit) |
2,568 |
(21,236) |
|||||
Net income (loss) |
10,274 |
(36,060) |
|||||
Net income (loss) attributable to non-controlling interest |
2,947 |
(523) |
|||||
Net income (loss) available to stockholders |
$ |
7,327 |
$ |
(35,537) |
|||
Earnings (loss) per share, basic |
$ |
0.10 |
$ |
(0.51) |
|||
Weighted average shares outstanding, basic (in thousands) |
71,490 |
70,143 |
|||||
Earnings (loss) per share, diluted |
$ |
0.10 |
$ |
(0.51) |
|||
Weighted average shares outstanding, diluted (in thousands) |
71,577 |
70,143 |
|||||
Cash dividends per share |
$ |
0.15 |
$ |
0.15 |
|||
CASH FLOW DATA: |
|||||||
Net cash provided by (used in): |
|||||||
Operating activities |
$ |
82,483 |
$ |
(29,351) |
|||
Investing activities |
(13,239) |
(47,017) |
|||||
Financing activities |
(19,417) |
35,624 |
|||||
OTHER DATA: |
|||||||
Adjusted net income (loss) available to stockholders (4) |
$ |
8,773 |
$ |
(29,233) |
|||
Adjusted earnings (loss) per share (4) |
$ |
0.12 |
$ |
(0.42) |
|||
Adjusted EBITDA (5) |
$ |
64,030 |
$ |
1,294 |
|||
Capital expenditures (6) |
13,067 |
23,446 |
|||||
Capital expenditures for turnarounds and catalysts |
1,349 |
16,610 |
|||||
March 31, |
December 31, | ||||||
(dollars in thousands) | |||||||
BALANCE SHEET DATA (end of period): |
|||||||
Cash and cash equivalents |
$ |
186,129 |
$ |
136,302 |
|||
Working capital (7) |
2,976 |
25,789 |
|||||
Total assets (7) |
2,112,204 |
2,095,301 |
|||||
Total debt |
516,319 |
527,966 |
|||||
Total debt less cash and cash equivalents |
330,190 |
391,664 |
|||||
Total equity |
581,345 |
582,413 |
REFINING AND MARKETING SEGMENT | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
2017 |
2016 | ||||||
(dollars in thousands, except per barrel | |||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||
Net sales (8) |
$ |
1,006,629 |
$ |
696,613 |
|||
Operating costs and expenses: |
|||||||
Cost of sales |
871,482 |
626,036 |
|||||
Direct operating expenses |
57,654 |
62,793 |
|||||
Selling, general and administrative expenses |
21,617 |
18,275 |
|||||
Depreciation and amortization |
31,353 |
29,784 |
|||||
Total operating costs and expenses |
982,106 |
736,888 |
|||||
Gain (loss) on disposition of assets |
2 |
(2,088) |
|||||
Operating income (loss) |
$ |
24,525 |
$ |
(42,363) |
|||
KEY OPERATING STATISTICS: |
|||||||
Per barrel of throughput: |
|||||||
Refinery operating margin – Big Spring (9) |
$ |
10.32 |
$ |
7.77 |
|||
Refinery operating margin – Krotz Springs (9) |
5.31 |
1.59 |
|||||
California renewable fuel operating margin (10) |
14.96 |
153.64 |
|||||
Refinery direct operating expense – Big Spring (11) |
3.54 |
4.07 |
|||||
Refinery direct operating expense – Krotz Springs (11) |
3.21 |
3.83 |
|||||
California renewable fuel direct operating expense (11) |
14.56 |
56.41 |
|||||
Capital expenditures |
$ |
6,554 |
$ |
18,559 |
|||
Capital expenditures for turnarounds and catalysts |
1,349 |
16,610 |
|||||
PRICING STATISTICS: |
|||||||
Crack spreads (3/2/1) (per barrel): |
|||||||
Gulf Coast (12) |
$ |
13.75 |
$ |
11.24 |
|||
Crack spreads (2/1/1) (per barrel): |
|||||||
Gulf Coast high sulfur diesel (12) |
$ |
9.74 |
$ |
6.74 |
|||
WTI Cushing crude oil (per barrel) |
$ |
51.78 |
$ |
33.30 |
|||
Crude oil differentials (per barrel): |
|||||||
WTI Cushing less WTI Midland (13) |
$ |
(0.64) |
$ |
(0.13) |
|||
WTI Cushing less WTS (13) |
1.27 |
(0.10) |
|||||
LLS less WTI Cushing (13) |
1.58 |
1.60 |
|||||
Brent less WTI Cushing (13) |
1.66 |
0.49 |
|||||
Brent less LLS (13) |
(0.13) |
(0.89) |
|||||
Product prices (dollars per gallon): |
|||||||
Gulf Coast unleaded gasoline |
$ |
1.56 |
$ |
1.07 |
|||
Gulf Coast ultra-low sulfur diesel |
1.57 |
1.03 |
|||||
Gulf Coast high sulfur diesel |
1.45 |
0.91 |
|||||
Natural gas (per MMBtu) |
3.07 |
1.98 |
THROUGHPUT AND PRODUCTION DATA: BIG SPRING REFINERY |
For the Three Months Ended | ||||||||||
March 31, | |||||||||||
2017 |
2016 | ||||||||||
bpd |
% |
bpd |
% | ||||||||
Refinery throughput: |
|||||||||||
WTS crude |
30,301 |
39.0 |
36,554 |
54.1 | |||||||
WTI crude |
42,877 |
55.1 |
27,760 |
41.1 | |||||||
Blendstocks |
4,576 |
5.9 |
3,222 |
4.8 | |||||||
Total refinery throughput (14) |
77,754 |
100.0 |
67,536 |
100.0 | |||||||
Refinery production: |
|||||||||||
Gasoline |
38,690 |
49.9 |
34,100 |
50.5 | |||||||
Diesel/jet |
28,871 |
37.2 |
22,682 |
33.6 | |||||||
Asphalt |
2,893 |
3.7 |
3,148 |
4.6 | |||||||
Petrochemicals |
4,530 |
5.8 |
3,617 |
5.3 | |||||||
Other |
2,633 |
3.4 |
4,027 |
6.0 | |||||||
Total refinery production (15) |
77,617 |
100.0 |
67,574 |
100.0 | |||||||
Refinery utilization (16) |
100.2% |
93.2% | |||||||||
THROUGHPUT AND PRODUCTION DATA: KROTZ SPRINGS REFINERY |
For the Three Months Ended | ||||||||||
March 31, | |||||||||||
2017 |
2016 | ||||||||||
bpd |
% |
bpd |
% | ||||||||
Refinery throughput: |
|||||||||||
WTI crude |
22,633 |
29.3 |
13,797 |
19.3 | |||||||
Gulf Coast sweet crude |
49,958 |
64.6 |
49,350 |
69.1 | |||||||
Blendstocks |
4,736 |
6.1 |
8,315 |
11.6 | |||||||
Total refinery throughput (14) |
77,327 |
100.0 |
71,462 |
100.0 | |||||||
Refinery production: |
|||||||||||
Gasoline |
38,255 |
48.7 |
36,274 |
49.7 | |||||||
Diesel/jet |
30,772 |
39.1 |
26,989 |
37.0 | |||||||
Heavy Oils |
1,244 |
1.6 |
1,534 |
2.1 | |||||||
Other |
8,339 |
10.6 |
8,157 |
11.2 | |||||||
Total refinery production (15) |
78,610 |
100.0 |
72,954 |
100.0 | |||||||
Refinery utilization (16) |
98.1% |
85.3% | |||||||||
THROUGHPUT AND PRODUCTION DATA: CALIFORNIA RENEWABLE FUELS FACILITY |
For the Three Months Ended | ||||||||||
March 31, | |||||||||||
2017 |
2016 | ||||||||||
bpd |
% |
bpd |
% | ||||||||
Throughput: |
|||||||||||
Tallow/vegetable oils |
2,361 |
88.5 |
2,606 |
100.0 | |||||||
Other |
305 |
11.5 |
— |
— | |||||||
Total throughput (14) |
2,666 |
100.0 |
2,606 |
100.0 | |||||||
Production: |
|||||||||||
Renewable gasoline |
300 |
11.5 |
— |
— | |||||||
Renewable diesel |
2,107 |
80.6 |
1,994 |
81.0 | |||||||
Renewable jet |
150 |
5.7 |
260 |
10.6 | |||||||
Naphtha |
57 |
2.2 |
208 |
8.4 | |||||||
Total production (15) |
2,614 |
100.0 |
2,462 |
100.0 |
ASPHALT SEGMENT | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2017 |
2016 | |||||||
(dollars in thousands, except per ton | ||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||
Net sales (17) |
$ |
44,821 |
$ |
53,499 |
||||
Operating costs and expenses: |
||||||||
Cost of sales (17) (18) |
36,283 |
43,865 |
||||||
Direct operating expenses |
6,588 |
5,824 |
||||||
Selling, general and administrative expenses |
2,212 |
3,198 |
||||||
Depreciation and amortization |
1,219 |
1,260 |
||||||
Total operating costs and expenses |
46,302 |
54,147 |
||||||
Operating loss (21) |
$ |
(1,481) |
$ |
(648) |
||||
KEY OPERATING STATISTICS: |
||||||||
Blended asphalt sales volume (tons in thousands) (19) |
65 |
85 |
||||||
Non-blended asphalt sales volume (tons in thousands) (20) |
22 |
29 |
||||||
Blended asphalt sales price per ton (19) |
$ |
427.98 |
$ |
413.78 |
||||
Non-blended asphalt sales price per ton (20) |
163.86 |
145.17 |
||||||
Asphalt margin per ton (21) |
78.45 |
84.16 |
||||||
Capital expenditures |
$ |
1,482 |
$ |
740 |
||||
RETAIL SEGMENT | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2017 |
2016 | |||||||
(dollars in thousands, except per gallon | ||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||
Net sales (1) |
$ |
190,143 |
$ |
162,971 |
||||
Operating costs and expenses: |
||||||||
Cost of sales (18) |
156,109 |
128,353 |
||||||
Selling, general and administrative expenses |
25,203 |
27,037 |
||||||
Depreciation and amortization |
3,291 |
3,399 |
||||||
Total operating costs and expenses |
184,603 |
158,789 |
||||||
Gain on disposition of assets |
474 |
— |
||||||
Operating income |
$ |
6,014 |
$ |
4,182 |
||||
KEY OPERATING STATISTICS: |
||||||||
Number of stores (end of period) (22) |
304 |
309 |
||||||
Retail fuel sales (thousands of gallons) |
53,101 |
50,005 |
||||||
Retail fuel sales (thousands of gallons per site per month) (22) |
60 |
56 |
||||||
Retail fuel margin (cents per gallon) (23) |
19.5 |
19.9 |
||||||
Retail fuel sales price (dollars per gallon) (24) |
$ |
2.14 |
$ |
1.70 |
||||
Merchandise sales |
$ |
76,332 |
$ |
77,825 |
||||
Merchandise sales (per site per month) (22) |
$ |
84 |
$ |
84 |
||||
Merchandise margin (25) |
30.9 |
% |
31.5 |
% | ||||
Capital expenditures |
$ |
4,945 |
$ |
2,711 |
(1) |
Includes excise taxes on sales by the retail segment of $20,725 and $19,525 for the three months ended March 31, 2017 and 2016, respectively. | |||||||
(2) |
Includes corporate headquarters selling, general and administrative expenses of $193 and $191 for the three months ended March 31, 2017 and 2016, respectively, which are not allocated to our three operating segments. | |||||||
(3) |
Includes corporate depreciation and amortization of $684 and $419 for the three months ended March 31, 2017 and 2016, respectively, which are not allocated to our three operating segments. | |||||||
(4) |
The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding after-tax employee retention expense, after-tax expenses related to Delek merger, after-tax gains on asphalt inventory adjustment, after-tax unrealized losses on commodity swaps and after-tax (gain) loss on disposition of assets. Adjusted net income (loss) available to stockholders is not a recognized measurement under GAAP; however, the amounts included in adjusted net income (loss) available to stockholders are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) 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 | ||||||||
March 31, | ||||||||
2017 |
2016 | |||||||
(dollars in thousands) | ||||||||
Net income (loss) available to stockholders |
$ |
7,327 |
$ |
(35,537) |
||||
Exclude adjustments: |
||||||||
Employee retention expense |
2,000 |
4,700 |
||||||
Expenses related to Delek merger |
2,000 |
— |
||||||
(Gain) on asphalt inventory adjustment |
(1,713) |
— |
||||||
Unrealized losses on commodity swaps |
— |
3,333 |
||||||
(Gain) loss on disposition of assets |
(476) |
2,088 |
||||||
Total adjustments |
1,811 |
10,121 |
||||||
Income tax impact related to adjustments |
(362) |
(3,751) |
||||||
Non-controlling interest impact related to adjustments |
(3) |
(66) |
||||||
Adjusted net income (loss) available to stockholders |
$ |
8,773 |
$ |
(29,233) |
||||
Adjusted earnings (loss) per share |
$ |
0.12 |
$ |
(0.42) |
(5) |
Adjusted EBITDA represents earnings before net income (loss) attributable to non-controlling interest, income tax expense (benefit), interest expense, depreciation and amortization, (gain) loss on disposition of assets and unrealized 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 (loss) attributable to non-controlling interest, income tax expense (benefit), interest expense, (gain) loss on disposition of assets, unrealized 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 (loss) available to stockholders to Adjusted EBITDA for the three months ended March 31, 2017 and 2016: | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2017 |
2016 | |||||||
(dollars in thousands) | ||||||||
Net income (loss) available to stockholders |
$ |
7,327 |
$ |
(35,537) |
||||
Net income (loss) attributable to non-controlling interest |
2,947 |
(523) |
||||||
Income tax expense (benefit) |
2,568 |
(21,236) |
||||||
Interest expense |
15,117 |
18,307 |
||||||
Depreciation and amortization |
36,547 |
34,862 |
||||||
(Gain) loss on disposition of assets |
(476) |
2,088 |
||||||
Unrealized losses on commodity swaps |
— |
3,333 |
||||||
Adjusted EBITDA |
$ |
64,030 |
$ |
1,294 |
Adjusted EBITDA does not exclude gains of $1,713 and $0 for the three months ended March 31, 2017 and 2016, respectively, resulting from a price adjustment related to asphalt inventory. | |
(6) |
Includes corporate capital expenditures of $86 and $1,436 for the three months ended March 31, 2017 and 2016, respectively, which are not allocated to our three operating segments. |
(7) |
During the three months ended March 31, 2017, we adopted the FASB's recently issued accounting guidance simplifying the presentation of deferred income taxes. As a result of adopting this guidance, our current deferred income tax asset that had previously been included as a current asset in our consolidated balance sheets has been reclassified as a reduction of our non-current deferred income tax liability. These changes have been applied retrospectively to all periods presented. |
(8) |
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. |
(9) |
Refinery operating margin is a per barrel measurement calculated by dividing the margin between net sales and cost of sales (exclusive of certain 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 months ended March 31, 2017 excludes a benefit of $27,746 related to the EPA approval of a small refinery exemption for the Krotz Springs refinery from the requirements of the renewable fuel standard for the 2016 calendar year. The refinery operating margin for the three months ended March 31, 2016 excludes realized and unrealized gains on commodity swaps of $366. | |
(10) |
The California renewable fuels facility operating margin is a per barrel measurement calculated by dividing the facility's margin between net sales and cost of sales by the facility's throughput volumes. Included in net sales are environmental credits in the form of RINs, low-carbon fuel standards credits and blender's tax credits, when effective, generated by the facility. |
During the three months ended March 31, 2017, we received no benefit from the federal blender's tax credit as this legislation expired on December 31, 2016. However, if the blender's tax credit is reinstated and becomes effective retroactive to the beginning of 2017, we will record additional pre-tax income of $8,778, or $37.00 per barrel of throughput, related to product sales during the first quarter of 2017 at the California renewable fuels facility. | |
(11) |
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. |
(12) |
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. | |
(13) |
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 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. 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. |
(14) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. Total throughput for the California renewable fuels facility represents the total barrels per day of tallow and vegetable oils used by the facility for the period following March 1, 2016. |
(15) |
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. Total production for the California renewable fuels facility represents the total barrels per day produced from processing tallow and vegetable oils through the facility's units for the period following March 1, 2016. |
(16) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
(17) |
Net sales and cost of sales include asphalt purchases sold as part of a supply and offtake arrangement of $13,397 and $14,118 for the three months ended March 31, 2017 and 2016, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics. |
(18) |
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. |
(19) |
Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product. |
(20) |
Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product. |
(21) |
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 excludes gains of $1,713 and $0 for the three months ended March 31, 2017 and 2016, respectively, resulting from a price adjustment related to asphalt inventory. These gains are included in operating loss of the asphalt segment. | |
(22) |
At March 31, 2017, we had 304 retail convenience stores of which 294 sold fuel. At March 31, 2016, we had 309 retail convenience stores of which 298 sold fuel. |
(23) |
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. |
(24) |
Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores. |
(25) |
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. |
SOURCE Alon USA Energy, Inc.
DALLAS, May 8, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the first quarter of 2017. Net income for the first quarter of 2017 was $20.1 million, or $0.32 per unit, compared to net loss of $(8.6) million, or $(0.14) per unit, for the same period last year.
The Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a cash distribution for the first quarter of 2017 of $0.38 per unit payable on May 30, 2017 to common unitholders of record at the close of business on May 22, 2017, based on cash available for distribution of $23.7 million.
Alan Moret, CEO, commented, "We are pleased with our performance in the first quarter of 2017, which resulted in cash available for distribution of $0.38 per unit. Our first quarter results benefited from an improvement in our benchmark Gulf Coast crack spread relative to the fourth quarter of 2016 and the same quarter last year. The improvement in the crack spread was complemented by strong operations, with the Big Spring refinery setting a new record for quarterly total throughput. We have been encouraged by the positive trends we have seen in refining into the second quarter of 2017, including attractive discounts for Midland-priced crudes and improved crack spreads."
Shai Even, President and CFO, commented, "The Big Spring refinery achieved record quarterly total throughput of almost 78,000 barrels per day in the first quarter of 2017. The refinery operating margin of $10.32 per barrel benefited from a strong wholesale marketing environment. Direct operating expense was only $3.54 per barrel as a result of efficient operations in the first quarter.
"We expect total throughput at the Big Spring refinery to average 73,000 barrels per day for the second quarter of 2017 and 75,000 barrels per day for the full year of 2017. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the second quarter of 2017."
FIRST QUARTER 2017
Refinery operating margin was $10.32 per barrel for the first quarter of 2017 compared to $7.77 per barrel for the same period in 2016. This increase in operating margin was primarily due to a higher Gulf Coast 3/2/1 crack spread and a widening of the WTI Cushing to WTS spread, partially offset by the increased premium in WTI Midland compared to WTI Cushing, increased RINs costs and a reduced benefit from the contango market environment which increased the cost of crude. Refinery average throughput for the first quarter of 2017 was 77,754 barrels per day ("bpd") compared to 67,536 bpd for the same period in 2016. The reduced throughput during the first quarter of 2016 was the result of planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit.
The average Gulf Coast 3/2/1 crack spread was $13.75 per barrel for the first quarter of 2017 compared to $11.24 per barrel for the first quarter of 2016. The average WTI Cushing to WTI Midland spread for the first quarter of 2017 was $(0.64) per barrel compared to $(0.13) per barrel for the first quarter of 2016. The average WTI Cushing to WTS spread for the first quarter of 2017 was $1.27 per barrel compared to $(0.10) per barrel for the first quarter of 2016. The average Brent to WTI Cushing spread for the first quarter of 2017 was $1.66 per barrel compared to $0.49 per barrel for the same period in 2016. The contango environment in the first quarter of 2017 created an average cost of crude benefit of $1.00 per barrel compared to an average cost of crude benefit of $1.83 per barrel for the same period in 2016. The average RINs cost effect on refinery operating margin was $0.59 per barrel in the first quarter of 2017, compared to $0.13 per barrel for the same period in 2016.
CONFERENCE CALL
Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2017 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the first quarter 2017 financial results. To access the call, please dial 877-404-9648, or 412-902-0030 for international callers, and ask for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners' website at www.alonpartners.com. A telephonic replay of the conference call will be available through May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660047#. A webcast archive will also be available at www.alonpartners.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.
This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Any statements in this 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.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Partners GP, LLC |
Investors: Jack Lascar 713-529-6600 | |
Media: Blake Lewis Lewis Public Relations 214-635-3020 |
- Tables to follow -
ALON USA PARTNERS, LP 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, 2016, IS UNAUDITED) |
For the Three Months Ended | |||||||
March 31, | ||||||||
2017 |
2016 | |||||||
(dollars in thousands, except per unit | ||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||
Net sales (1) |
$ |
544,532 |
$ |
368,009 |
||||
Operating costs and expenses: |
||||||||
Cost of sales |
470,471 |
319,333 |
||||||
Direct operating expenses |
24,760 |
25,044 |
||||||
Selling, general and administrative expenses |
6,764 |
7,309 |
||||||
Depreciation and amortization |
14,229 |
14,206 |
||||||
Total operating costs and expenses |
516,224 |
365,892 |
||||||
Operating income |
28,308 |
2,117 |
||||||
Interest expense |
(7,845) |
(10,587) |
||||||
Other income (loss), net |
(95) |
84 |
||||||
Income (loss) before state income tax expense |
20,368 |
(8,386) |
||||||
State income tax expense |
256 |
176 |
||||||
Net income (loss) |
$ |
20,112 |
$ |
(8,562) |
||||
Earnings (loss) per unit |
$ |
0.32 |
$ |
(0.14) |
||||
Weighted average common units outstanding (in thousands) |
62,520 |
62,510 |
||||||
Cash distribution per unit |
$ |
0.11 |
$ |
0.08 |
||||
CASH FLOW DATA: |
||||||||
Net cash provided by (used in): |
||||||||
Operating activities |
$ |
41,772 |
$ |
6,662 |
||||
Investing activities |
(5,875) |
(10,793) |
||||||
Financing activities |
(387) |
(5,626) |
||||||
OTHER DATA: |
||||||||
Adjusted EBITDA (2) |
$ |
42,442 |
$ |
16,407 |
||||
Capital expenditures |
5,026 |
8,112 |
||||||
Capital expenditures for turnarounds and catalysts |
849 |
2,681 |
||||||
KEY OPERATING STATISTICS: |
||||||||
Per barrel of throughput: |
||||||||
Refinery operating margin (3) |
$ |
10.32 |
$ |
7.77 |
||||
Refinery direct operating expense (4) |
3.54 |
4.07 |
||||||
PRICING STATISTICS: |
||||||||
Crack spreads (per barrel): |
||||||||
Gulf Coast 3/2/1 (5) |
$ |
13.75 |
$ |
11.24 |
||||
WTI Cushing crude oil (per barrel) |
$ |
51.78 |
$ |
33.30 |
||||
Crude oil differentials (per barrel): |
||||||||
WTI Cushing less WTI Midland (6) |
$ |
(0.64) |
$ |
(0.13) |
||||
WTI Cushing less WTS (6) |
1.27 |
(0.10) |
||||||
Brent less WTI Cushing (6) |
1.66 |
0.49 |
||||||
Product price (dollars per gallon): |
||||||||
Gulf Coast unleaded gasoline |
$ |
1.56 |
$ |
1.07 |
||||
Gulf Coast ultra-low sulfur diesel |
1.57 |
1.03 |
||||||
Natural gas (per MMBtu) |
3.07 |
1.98 |
||||||
March 31, |
December 31, | |||||||
(dollars in thousands) | ||||||||
BALANCE SHEET DATA (end of period): |
||||||||
Cash and cash equivalents |
$ |
109,034 |
$ |
73,524 |
||||
Working capital |
(92,271) |
(73,563) |
||||||
Total assets |
719,487 |
695,637 |
||||||
Total debt |
236,152 |
236,319 |
||||||
Total debt less cash and cash equivalents |
127,118 |
162,795 |
||||||
Total partners' equity |
116,761 |
103,503 |
||||||
THROUGHPUT AND PRODUCTION DATA: |
For the Three Months Ended | |||||||||||
March 31, | ||||||||||||
2017 |
2016 | |||||||||||
bpd |
% |
bpd |
% | |||||||||
Refinery throughput: |
||||||||||||
WTS crude |
30,301 |
39.0 |
36,554 |
54.1 | ||||||||
WTI crude |
42,877 |
55.1 |
27,760 |
41.1 | ||||||||
Blendstocks |
4,576 |
5.9 |
3,222 |
4.8 | ||||||||
Total refinery throughput (7) |
77,754 |
100.0 |
67,536 |
100.0 | ||||||||
Refinery production: |
||||||||||||
Gasoline |
38,690 |
49.9 |
34,100 |
50.5 | ||||||||
Diesel/jet |
28,871 |
37.2 |
22,682 |
33.6 | ||||||||
Asphalt |
2,893 |
3.7 |
3,148 |
4.6 | ||||||||
Petrochemicals |
4,530 |
5.8 |
3,617 |
5.3 | ||||||||
Other |
2,633 |
3.4 |
4,027 |
6.0 | ||||||||
Total refinery production (8) |
77,617 |
100.0 |
67,574 |
100.0 | ||||||||
Refinery utilization (9) |
100.2% |
93.2% | ||||||||||
CASH AVAILABLE FOR DISTRIBUTION DATA: |
For the Three | |||
March 31, 2017 | ||||
(dollars in | ||||
Net sales (1) |
$ |
544,532 |
||
Operating costs and expenses: |
||||
Cost of sales |
470,471 |
|||
Direct operating expenses |
24,760 |
|||
Selling, general and administrative expenses |
6,764 |
|||
Depreciation and amortization |
14,229 |
|||
Total operating costs and expenses |
516,224 |
|||
Operating income |
28,308 |
|||
Interest expense |
(7,845) |
|||
Other loss, net |
(95) |
|||
Income before state income tax expense |
20,368 |
|||
State income tax expense |
256 |
|||
Net income |
20,112 |
|||
Adjustments to reconcile net income to Adjusted EBITDA: |
||||
Interest expense |
7,845 |
|||
State income tax expense |
256 |
|||
Depreciation and amortization |
14,229 |
|||
Adjusted EBITDA (2) |
42,442 |
|||
Adjustments to reconcile Adjusted EBITDA to cash available for distribution: |
||||
less: Maintenance/growth capital expenditures |
5,026 |
|||
less: Turnaround and catalyst replacement capital expenditures |
849 |
|||
less: Major turnaround reserve for future years (a) |
3,500 |
|||
less: Principal payments |
625 |
|||
less: State income tax payments |
256 |
|||
less: Interest paid in cash |
8,465 |
|||
Cash available for distribution |
$ |
23,721 |
||
Common units outstanding (in 000's) |
62,520 |
|||
Cash available for distribution per unit |
$ |
0.38 |
||
a. |
Major turnaround reserve for future years was increased from $1,500 in prior quarters to $3,500 in the first quarter of 2017 to reflect an increase in the estimated cost of the next major five-year turnaround from $30,000 to $50,000. |
________________
(1) |
Includes sales to related parties of $91,000 and $63,110 for the three months ended March 31, 2017 and 2016, respectively. |
||
(2) |
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. 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 state income tax expense, interest expense 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 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 (loss) to Adjusted EBITDA for the three months ended March 31, 2017 and 2016: |
For the Three Months Ended | |||||||||
March 31, | |||||||||
2017 |
2016 | ||||||||
(dollars in thousands) | |||||||||
Net income (loss) |
$ |
20,112 |
$ |
(8,562) |
|||||
State income tax expense |
256 |
176 |
|||||||
Interest expense |
7,845 |
10,587 |
|||||||
Depreciation and amortization |
14,229 |
14,206 |
|||||||
Adjusted EBITDA |
$ |
42,442 |
$ |
16,407 |
|||||
(3) |
Refinery operating margin is a per barrel measurement calculated by dividing the margin between net sales and cost of sales (exclusive of certain inventory adjustments) 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 margin to these crack spreads to assess our operating performance relative to other participants in our industry. |
Refinery operating margin for the three months ended March 31, 2017 and 2016 excludes gains related to inventory adjustments of $1,842 and $946, respectively. | |
(4) |
Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses by total throughput volumes. |
(5) |
We compare our refinery 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. |
(6) |
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 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. |
(7) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. |
(8) |
Total refinery production represents the barrels per day of various refined products produced from processing crude and other refinery feedstocks through the crude units and other conversion units. |
(9) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
SOURCE Alon USA Partners, LP
NEW YORK, April 19, 2017 /PRNewswire/ -- The following statement is being issued by Levi & Korsinsky, LLP:
To: All Persons or Entities who purchased Alon USA Energy, Inc. ("Alon USA")(NYSE: ALJ)stock prior to January 3, 2017.
You are hereby notified that Levi & Korsinsky, LLP has commenced an investigation into the fairness of the sale of Alon to Delek US Holdings, Inc. (NYSE: DK) for 0.5040 shares of Delek for each share of Alon. Delek already own approximately 33.7 million shares of Alon common stock. To learn more about the action and your rights, go to:
or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972. There is no cost or obligation to you.
Levi & Korsinsky is a national firm with offices in New York, New Jersey, Connecticut, California, and Washington D.C. The firm's attorneys have extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities lawsuits and have recovered hundreds of millions of dollars for aggrieved shareholders. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Eduard Korsinsky, Esq.
30 Broad Street - 24th Floor
New York, NY 10004
Tel: (212) 363-7500
Toll Free: (877) 363-5972
Fax: (212) 363-7171
www.zlk.com
SOURCE Levi & Korsinsky, LLP
DALLAS, April 12, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its first quarter 2017 financial results on Monday, May 8, 2017 before the market opens. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2016 at 12:30 p.m. Eastern Time (11:30 a.m. Central Time).
What: |
Alon USA Energy, Inc. First Quarter 2017 Earnings Conference Call |
When: |
Tuesday, May 9, 2017 - 12:30 p.m. Eastern Time |
Where: |
Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking 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 May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660045#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 3,000 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard • Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, April 12, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its first quarter 2017 financial results on Monday, May 8, 2017 before the market opens. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2017 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time).
What: |
Alon USA Partners First Quarter 2017 Earnings Conference Call |
When: |
Tuesday, May 9, 2017 - 11:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. |
A telephonic replay of the conference call will be available through May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660047#. A webcast archive will also be available at www.alonpartners.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 Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard • Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, March 1, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that its annual report on Form 10-K for the fiscal year ended December 31, 2016 is now available to unitholders. Unitholders may access the annual report on the Alon Partners website at www.alonpartners.com under the "Financials" tab. Copies of the annual report are available free of charge to unitholders upon request to Alon USA Partners, LP, Attention: Investor Relations, 12700 Park Central Drive, Suite 1600, Dallas, Texas 75251.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, Feb. 23, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the fourth quarter and year ended December 31, 2016. Net loss available to stockholders for the fourth quarter of 2016 was $(18.1) million, or $(0.25) per share, compared to net loss available to stockholders of $(52.5) million, or $(0.75) per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(14.3) million, or $(0.20) per share, for the fourth quarter of 2016, compared to net loss available to stockholders of $(14.6) million, or $(0.21) per share, for the same period last year.
Net loss available to stockholders for the full year 2016 was $(82.8) million, or $(1.17) per share, compared to net income available to stockholders of $52.8 million, or $0.76 per share, for 2015. Excluding special items, Alon recorded net loss available to stockholders of $(65.1) million, or $(0.92) per share, for the full year 2016, compared to net income available to stockholders of $95.5 million, or $1.37 per share, for 2015.
As previously announced, in January 2017, Delek US and Alon entered into a definitive agreement under which Delek will acquire the outstanding shares of Alon common stock that Delek does not already own in an all-stock transaction. The transaction is expected to close in the first half of 2017, subject to customary closing conditions, including regulatory approval and approval by Delek US shareholders and Alon shareholders. We believe the economies of scale, financial strength and synergies generated through this merger create the opportunity to drive long-term value for shareholders.
In February 2017, the Krotz Springs refinery received approval from the EPA for a small refinery exemption from the requirements of the renewable fuel standard for the 2016 calendar year. As a result, we expect to book a reduction in RINs expense of $29.0 million in the first quarter of 2017, based on a weighted average RINs price per gallon of $0.58.
Alan Moret, CEO, commented, "Our diversification proved to be an asset for us in 2016, as positive contributions from our asphalt segment, retail segment and our renewable fuels facility in California helped offset the impact of weak crack spreads, high RIN prices and narrower crude differentials on our refining results. Our asphalt business operating income more than doubled in 2016 relative to 2015, as sales volumes increased by 19 percent and direct operating expenses were reduced by 8 percent. Our renewable fuels facility, which began operations in February 2016, produced approximately 30 million gallons of renewable fuel in 2016. We have been encouraged by the improvement in refining fundamentals that we saw at the end of 2016 and into 2017, including the widening of domestic crude discounts relative to Brent. We also are pleased to see RIN prices decline.
"The Big Spring refinery ran well in the fourth quarter, achieving total throughput of almost 77,000 barrels per day. The refinery also set a new quarterly record by processing over 44,000 barrels per day of WTI Midland in the quarter, further demonstrating the flexibility of the asset. The fourth quarter refinery operating margin of $7.65 per barrel is net of a negative impact of approximately $1.10 per barrel related to RINs costs. Operating expense in the quarter was low at $3.39 per barrel. As we've said before, we do not expect any major maintenance at Big Spring in 2017. We expect total throughput at the Big Spring refinery to average 77,000 barrels per day for the first quarter of 2017 and 75,000 barrels per day for the full year of 2017.
"The Krotz Springs refinery also ran well in the fourth quarter with total throughput of 70,000 barrels per day. The refinery operating margin of $3.40 per barrel was negatively impacted by approximately $1.60 per barrel due to the high cost of RINs. Operating expense in the fourth quarter was low at $3.44 per barrel. We expect total throughput at the Krotz Springs refinery to average 77,000 barrels per day for the first quarter of 2017 and 74,000 barrels per day for the full year of 2017.
"Our asphalt business performed exceptionally well in what is typically a seasonally weak quarter. Asphalt operating income of $3.2 million in the fourth quarter was driven by sales volumes of 133 thousand tons and an attractive margin of $108 per ton.
"Our renewable fuels facility in California had its most profitable quarter since operations began, generating $9 million of operating income in the fourth quarter. This was achieved in spite of reduced throughput of 2,400 barrels per day due to maintenance being done by a third-party supplier in the quarter. We expect total throughput at our renewable fuels facility to average 2,500 barrels per day for the first quarter of 2017 and 2,600 barrels per day for the full year of 2017.
"Our retail results were negatively impacted by seasonal weakness and continued economic headwinds in the Permian Basin. That said, we are encouraged by the increase in rig activity in the Permian, and we believe our retail segment is well positioned to benefit as the West Texas economy improves."
FOURTH QUARTER 2016
Special items increased net loss by $3.8 million for the fourth quarter of 2016 primarily as a result of employee retention expenses of $2.0 million, unrealized losses of $3.8 million associated with commodity swaps, losses of $0.7 million related to an asphalt inventory adjustment and $0.1 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.8 million. Special items reduced net income by $37.9 million for the fourth quarter of 2015 primarily as a result of a loss on impairment of goodwill of $39.0 million, losses of $1.7 million related to an asphalt inventory adjustment, employee retention expenses of $1.3 million and unrealized losses of $1.1 million associated with commodity swaps, partially offset by insurance recoveries net of professional fees of $3.6 million and $1.3 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $0.2 million.
The combined total refinery average throughput for the fourth quarter of 2016 was 146,725 barrels per day ("bpd"), compared to a combined total refinery average throughput of 116,995 bpd for the fourth quarter of 2015. The Big Spring refinery average throughput for the fourth quarter of 2016 was 76,654 bpd, compared to 75,925 bpd for the fourth quarter of 2015. The Krotz Springs refinery average throughput for the fourth quarter of 2016 was 70,071 bpd, compared to 41,070 bpd for the fourth quarter of 2015. During the fourth quarter of 2016, the Krotz Springs refinery throughput was impacted by our election to reduce the crude rate in order to optimize the refinery yield. During the fourth quarter of 2015, throughput at our Krotz Springs refinery was lower as a result of downtime necessary to complete the planned major turnaround.
Refinery operating margin at the Big Spring refinery was $7.65 per barrel for the fourth quarter of 2016 compared to $10.02 per barrel for the same period in 2015. This decrease in operating margin was primarily due to increased RINs costs, a reduced benefit from the contango market environment which increased the cost of crude and unfavorable differences in Group III to Gulf Coast gasoline and diesel prices in the fourth quarter of 2016 compared to the same period in 2015.
Refinery operating margin at the Krotz Springs refinery was $3.40 per barrel for the fourth quarter of 2016 compared to $1.55 per barrel for the same period in 2015. During the fourth quarter of 2016, the Krotz Springs operating margin was favorably impacted by a higher Gulf Coast 2/1/1 high sulfur diesel crack spread and a widening of the WTI Cushing to WTI Midland spread, partially offset by a narrowing of the LLS to WTI Cushing spread, increased RINs costs and a reduced benefit from the contango market environment which increased the cost of crude. During the fourth quarter of 2015, the Krotz Springs operating margin reflects the negative impact of the planned major turnaround on refinery production.
The average Gulf Coast 3/2/1 crack spread was $12.83 per barrel for the fourth quarter of 2016 compared to $10.90 per barrel for the fourth quarter of 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $8.63 per barrel for the fourth quarter of 2016 compared to $7.13 per barrel for the fourth quarter of 2015.
The average WTI Cushing to WTI Midland spread for the fourth quarter of 2016 was $0.25 per barrel compared to $(0.20) per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the fourth quarter of 2016 was $1.33 per barrel compared to $(0.26) per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the fourth quarter of 2016 was $1.42 per barrel compared to $2.08 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the fourth quarter of 2016 was $(0.20) per barrel compared to $1.35 per barrel for the same period in 2015. The average Brent to LLS spread for the fourth quarter of 2016 was $(1.36) per barrel compared to $(0.30) per barrel for the same period in 2015.
The average RINs cost effect on the Big Spring refinery operating margin was $1.08 per barrel for the fourth quarter of 2016, compared to $0.45 per barrel for the fourth quarter of 2015. The average RINs cost effect on the Krotz Springs refinery operating margin was $1.58 per barrel for the fourth quarter of 2016, compared to $0.60 per barrel for the fourth quarter of 2015.
The contango environment in the fourth quarter of 2016 created an average cost of crude benefit of $0.79 per barrel compared to an average cost of crude benefit of $0.94 per barrel for the same period in 2015.
For the fourth quarter of 2016, our California renewable fuels facility generated an operating margin of $70.57 per barrel from an average of 2,409 barrels per day of throughput. Our statements of operations include operating income of $8.7 million for the fourth quarter of 2016 related to the facility's operations.
Asphalt margins for the fourth quarter of 2016 were $107.89 per ton compared to $102.85 per ton for the fourth quarter of 2015. On a cash basis (i.e. excluding inventory effects), asphalt margins in the fourth quarter of 2016 were $116.06 per ton compared to $106.92 per ton in the fourth quarter of 2015.
Retail fuel margins decreased to 18.5 cents per gallon in the fourth quarter of 2016 from 20.0 cents per gallon in the fourth quarter of 2015. Retail fuel sales volume increased to 54.0 million gallons in the fourth quarter of 2016 from 52.2 million gallons in the fourth quarter of 2015. Merchandise margins decreased to 30.5% in the fourth quarter of 2016 from 31.1% in the fourth quarter of 2015. Merchandise sales decreased to $78.9 million in the fourth quarter of 2016 from $81.0 million in the fourth quarter of 2015.
FULL-YEAR 2016
Special items increased net loss by $17.7 million for 2016 primarily as a result of employee retention expenses of $10.7 million, losses of $1.0 million related to an asphalt inventory adjustment, unrealized losses of $14.8 million associated with commodity swaps and $1.7 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $10.5 million. Special items reduced net income by $42.7 million for 2015 primarily as a result of a loss on impairment of goodwill of $39.0 million, losses of $8.1 million related to an asphalt inventory adjustment and employee retention expenses of $11.3 million, partially offset by unrealized gains of $7.9 million associated with commodity swaps, insurance recoveries net of professional fees of $3.6 million and $1.9 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.3 million.
Combined refinery average throughput for 2016 was 139,243 bpd, compared to a combined refinery average throughput of 140,036 bpd in 2015. The Big Spring refinery average throughput for 2016 was 71,363 bpd compared to 74,906 bpd for 2015. The reduced throughput at our Big Spring refinery during 2016 was the result of a reformer regeneration during the first quarter of 2016 and third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. The Krotz Springs refinery average throughput for 2016 was 67,880 bpd compared to 65,130 bpd for 2015. During 2016, the Krotz Springs refinery throughput was impacted by our election to reduce the crude rate in order to optimize the refinery yield, as well as maintenance that was performed on the fluid catalytic cracking unit during the second quarter of 2016. During 2015, we completed the planned major turnaround at the Krotz Springs refinery, which reduced throughput during the period.
Refinery operating margin at the Big Spring refinery was $8.28 per barrel for 2016 compared to $14.43 per barrel for 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread and increased RINs costs, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude.
Refinery operating margin at the Krotz Springs refinery was $3.06 per barrel for 2016 compared to $7.02 per barrel for 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads and increased RINs costs, partially offset by an increased benefit from the contango market environment which reduced the cost of crude.
The average Gulf Coast 3/2/1 crack spread for 2016 was $12.64 per barrel compared to $17.02 per barrel for 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for 2016 was $7.95 per barrel compared to $10.81 per barrel for 2015.
The average WTI Cushing to WTI Midland spread for 2016 was $0.15 per barrel compared to $0.39 per barrel for 2015. The average WTI Cushing to WTS spread for 2016 was $0.73 per barrel compared to $(0.06) per barrel for 2015. The average LLS to WTI Cushing spread for 2016 was $1.70 per barrel compared to $3.73 per barrel for 2015. The average Brent to WTI Cushing spread for 2016 was $0.21 per barrel compared to $3.54 per barrel for 2015. The average Brent to LLS spread for 2016 was $(1.45) per barrel compared to $0.14 per barrel for 2015.
The average RINs cost effect on the Big Spring refinery operating margin was $0.55 per barrel for 2016, compared to $0.42 per barrel for 2015. The average RINs cost effect on the Krotz Springs refinery operating margin was $1.48 per barrel for 2016, compared to $0.99 per barrel for 2015.
The contango environment in 2016 created an average cost of crude benefit of $1.24 per barrel compared to an average cost of crude benefit of $1.01 per barrel in 2015.
During 2016, our California renewable fuels facility generated an operating margin of $68.67 per barrel from an average of 2,275 barrels per day of throughput. Our statements of operations include operating income of $24.1 million in 2016 related to the facility's operations.
Asphalt margins for 2016 were $98.80 per ton compared to $105.70 per ton in 2015. On a cash basis (i.e. excluding inventory effects), asphalt margins in 2016 were $100.94 per ton compared to $109.35 per ton in 2015.
Retail fuel margins decreased to 19.8 cents per gallon in 2016 from 21.3 cents per gallon in 2015. Retail fuel sales volume increased to 209.0 million gallons in 2016 from 199.1 million gallons in 2015. Merchandise margins decreased to 31.2% in 2016 from 31.9% in 2015. Merchandise sales decreased to $324.4 million in 2016 from $328.5 million in 2015.
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 March 17, 2017 to stockholders of record at the close of business on March 9, 2017.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the fourth quarter and year-end 2016 financial 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 March 3, 2017, and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13652999#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 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 approximately 300 convenience stores which also market motor fuels 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, 2015 AND INCOME STATEMENT DATA FOR THE YEAR ENDED DECEMBER 31, 2015, IS UNAUDITED) |
For the Three Months Ended |
For the Year Ended | |||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
1,011,326 |
$ |
782,367 |
$ |
3,913,404 |
$ |
4,338,152 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
874,365 |
636,794 |
3,376,803 |
3,515,406 |
|||||||||||
Direct operating expenses |
62,812 |
63,426 |
262,706 |
255,534 |
|||||||||||
Selling, general and administrative expenses (2) |
46,953 |
51,306 |
194,078 |
200,195 |
|||||||||||
Depreciation and amortization (3) |
36,852 |
32,232 |
145,577 |
126,494 |
|||||||||||
Total operating costs and expenses |
1,020,982 |
783,758 |
3,979,164 |
4,097,629 |
|||||||||||
Gain (loss) on disposition of assets |
(90) |
1,319 |
(1,650) |
1,914 |
|||||||||||
Loss on impairment of goodwill (4) |
— |
(39,028) |
— |
(39,028) |
|||||||||||
Operating income (loss) |
(9,746) |
(39,100) |
(67,410) |
203,409 |
|||||||||||
Interest expense |
(16,584) |
(19,876) |
(69,717) |
(79,826) |
|||||||||||
Equity earnings (losses) of investees |
(930) |
1,944 |
9,813 |
6,669 |
|||||||||||
Other income, net |
72 |
266 |
692 |
417 |
|||||||||||
Income (loss) before income tax expense (benefit) |
(27,188) |
(56,766) |
(126,622) |
130,669 |
|||||||||||
Income tax expense (benefit) |
(11,383) |
(4,860) |
(46,789) |
48,282 |
|||||||||||
Net income (loss) |
(15,805) |
(51,906) |
(79,833) |
82,387 |
|||||||||||
Net income attributable to non-controlling interest |
2,293 |
628 |
2,972 |
29,636 |
|||||||||||
Net income (loss) available to stockholders |
$ |
(18,098) |
$ |
(52,534) |
$ |
(82,805) |
$ |
52,751 |
|||||||
Earnings (loss) per share, basic |
$ |
(0.25) |
$ |
(0.75) |
$ |
(1.17) |
$ |
0.76 |
|||||||
Weighted average shares outstanding, basic (in thousands) |
71,229 |
70,027 |
70,739 |
69,772 |
|||||||||||
Earnings (loss) per share, diluted |
$ |
(0.25) |
$ |
(0.75) |
$ |
(1.17) |
$ |
0.75 |
|||||||
Weighted average shares outstanding, diluted (in thousands) |
71,229 |
70,027 |
70,739 |
70,714 |
|||||||||||
Cash dividends per share |
$ |
0.15 |
$ |
0.15 |
$ |
0.60 |
$ |
0.55 |
|||||||
CASH FLOW DATA: |
|||||||||||||||
Net cash provided by (used in): |
|||||||||||||||
Operating activities |
$ |
41,755 |
$ |
49,755 |
$ |
59,516 |
$ |
226,065 |
|||||||
Investing activities |
(8,822) |
(81,713) |
(94,129) |
(160,011) |
|||||||||||
Financing activities |
(161,433) |
27,221 |
(63,212) |
(46,888) |
|||||||||||
OTHER DATA: |
|||||||||||||||
Adjusted net income (loss) available to stockholders (5) |
$ |
(14,279) |
$ |
(14,635) |
$ |
(65,112) |
$ |
95,459 |
|||||||
Adjusted earnings (loss) per share (5) |
$ |
(0.20) |
$ |
(0.21) |
$ |
(0.92) |
$ |
1.37 |
|||||||
Adjusted EBITDA (6) |
$ |
30,105 |
$ |
34,128 |
$ |
105,121 |
$ |
366,166 |
|||||||
Capital expenditures (7) |
8,820 |
43,933 |
58,644 |
101,195 |
|||||||||||
Capital expenditures for turnarounds and catalysts |
342 |
23,938 |
29,806 |
35,348 |
As of December 31, | |||||||
2016 |
2015 | ||||||
(dollars in thousands) | |||||||
BALANCE SHEET DATA (end of period): |
|||||||
Cash and cash equivalents |
$ |
136,302 |
$ |
234,127 |
|||
Working capital |
40,647 |
78,694 |
|||||
Total assets |
2,110,159 |
2,176,138 |
|||||
Total debt |
527,966 |
555,962 |
|||||
Total debt less cash and cash equivalents |
391,664 |
321,835 |
|||||
Total equity |
582,413 |
664,160 |
REFINING AND MARKETING SEGMENT |
|||||||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per barrel data and pricing statistics) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (8) |
$ |
854,521 |
$ |
627,498 |
$ |
3,240,170 |
$ |
3,663,956 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
765,314 |
528,548 |
2,905,470 |
3,034,531 |
|||||||||||
Direct operating expenses |
55,981 |
57,063 |
237,053 |
227,517 |
|||||||||||
Selling, general and administrative expenses |
15,138 |
19,553 |
68,210 |
79,022 |
|||||||||||
Depreciation and amortization |
31,502 |
27,253 |
124,304 |
107,619 |
|||||||||||
Total operating costs and expenses |
867,935 |
632,417 |
3,335,037 |
3,448,689 |
|||||||||||
Gain (loss) on disposition of assets |
— |
1,319 |
(2,079) |
1,842 |
|||||||||||
Loss on impairment of goodwill (4) |
— |
(39,028) |
— |
(39,028) |
|||||||||||
Operating income (loss) |
$ |
(13,414) |
$ |
(42,628) |
$ |
(96,946) |
$ |
178,081 |
|||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Per barrel of throughput: |
|||||||||||||||
Refinery operating margin – Big Spring (9) |
$ |
7.65 |
$ |
10.02 |
$ |
8.28 |
$ |
14.43 |
|||||||
Refinery operating margin – Krotz Springs (9) |
3.40 |
1.55 |
3.06 |
7.02 |
|||||||||||
California renewable fuel operating margin (10) |
70.57 |
N/A |
68.67 |
N/A |
|||||||||||
Refinery direct operating expense – Big Spring (11) |
3.39 |
3.88 |
3.73 |
3.62 |
|||||||||||
Refinery direct operating expense – Krotz Springs (11) |
3.44 |
5.82 |
3.78 |
4.03 |
|||||||||||
California renewable fuel direct operating expense (11) |
20.56 |
N/A |
22.12 |
N/A |
|||||||||||
Capital expenditures |
$ |
8,335 |
$ |
37,926 |
$ |
48,672 |
$ |
73,429 |
|||||||
Capital expenditures for turnarounds and catalysts |
342 |
23,938 |
29,806 |
35,348 |
|||||||||||
PRICING STATISTICS: |
|||||||||||||||
Crack spreads (3/2/1) (per barrel): |
|||||||||||||||
Gulf Coast (12) |
$ |
12.83 |
$ |
10.90 |
$ |
12.64 |
$ |
17.02 |
|||||||
Crack spreads (2/1/1) (per barrel): |
|||||||||||||||
Gulf Coast high sulfur diesel (12) |
$ |
8.63 |
$ |
7.13 |
$ |
7.95 |
$ |
10.81 |
|||||||
WTI Cushing crude oil (per barrel) |
$ |
49.21 |
$ |
42.05 |
$ |
43.24 |
$ |
48.68 |
|||||||
Crude oil differentials (per barrel): |
|||||||||||||||
WTI Cushing less WTI Midland (13) |
$ |
0.25 |
$ |
(0.20) |
$ |
0.15 |
$ |
0.39 |
|||||||
WTI Cushing less WTS (13) |
1.33 |
(0.26) |
0.73 |
(0.06) |
|||||||||||
LLS less WTI Cushing (13) |
1.42 |
2.08 |
1.70 |
3.73 |
|||||||||||
Brent less WTI Cushing (13) |
(0.20) |
1.35 |
0.21 |
3.54 |
|||||||||||
Brent less LLS (13) |
(1.36) |
(0.30) |
(1.45) |
0.14 |
|||||||||||
Product prices (dollars per gallon): |
|||||||||||||||
Gulf Coast unleaded gasoline |
$ |
1.45 |
$ |
1.25 |
$ |
1.34 |
$ |
1.56 |
|||||||
Gulf Coast ultra-low sulfur diesel |
1.52 |
1.29 |
1.32 |
1.58 |
|||||||||||
Gulf Coast high sulfur diesel |
1.37 |
1.19 |
1.18 |
1.45 |
|||||||||||
Natural gas (per MMBtu) |
3.18 |
2.23 |
2.55 |
2.63 |
THROUGHPUT AND PRODUCTION DATA: BIG SPRING REFINERY |
For the Three Months Ended |
For the Year Ended | |||||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTS crude |
27,458 |
35.8 |
29,510 |
38.9 |
31,000 |
43.4 |
33,647 |
44.9 |
|||||||||||||||
WTI crude |
44,112 |
57.5 |
43,968 |
57.9 |
36,862 |
51.7 |
38,632 |
51.6 |
|||||||||||||||
Blendstocks |
5,084 |
6.7 |
2,447 |
3.2 |
3,501 |
4.9 |
2,627 |
3.5 |
|||||||||||||||
Total refinery throughput (14) |
76,654 |
100.0 |
75,925 |
100.0 |
71,363 |
100.0 |
74,906 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
39,371 |
51.2 |
38,600 |
50.8 |
35,220 |
49.4 |
37,519 |
50.0 |
|||||||||||||||
Diesel/jet |
27,619 |
35.9 |
27,812 |
36.6 |
25,739 |
36.1 |
27,651 |
36.8 |
|||||||||||||||
Asphalt |
2,533 |
3.3 |
2,362 |
3.1 |
2,767 |
3.9 |
2,639 |
3.5 |
|||||||||||||||
Petrochemicals |
4,647 |
6.1 |
4,012 |
5.3 |
3,872 |
5.4 |
4,579 |
6.1 |
|||||||||||||||
Other |
2,714 |
3.5 |
3,176 |
4.2 |
3,740 |
5.2 |
2,678 |
3.6 |
|||||||||||||||
Total refinery production (15) |
76,884 |
100.0 |
75,962 |
100.0 |
71,338 |
100.0 |
75,066 |
100.0 |
|||||||||||||||
Refinery utilization (16) |
98.0 |
% |
100.7 |
% |
96.1 |
% |
99.0 |
% | |||||||||||||||
THROUGHPUT AND PRODUCTION DATA: KROTZ SPRINGS REFINERY |
For the Three Months Ended |
For the Year Ended | |||||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTI crude |
23,751 |
33.9 |
8,750 |
21.3 |
19,990 |
29.4 |
22,408 |
34.4 |
|||||||||||||||
Gulf Coast sweet crude |
40,793 |
58.2 |
29,384 |
71.6 |
42,835 |
63.2 |
38,699 |
59.4 |
|||||||||||||||
Blendstocks |
5,527 |
7.9 |
2,936 |
7.1 |
5,055 |
7.4 |
4,023 |
6.2 |
|||||||||||||||
Total refinery throughput (14) |
70,071 |
100.0 |
41,070 |
100.0 |
67,880 |
100.0 |
65,130 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
34,208 |
48.1 |
18,083 |
43.7 |
33,706 |
48.8 |
30,193 |
45.5 |
|||||||||||||||
Diesel/jet |
28,946 |
40.7 |
16,037 |
38.7 |
26,346 |
38.1 |
27,259 |
41.0 |
|||||||||||||||
Heavy Oils |
1,165 |
1.6 |
654 |
1.6 |
1,238 |
1.8 |
1,165 |
1.8 |
|||||||||||||||
Other |
6,872 |
9.6 |
6,632 |
16.0 |
7,801 |
11.3 |
7,781 |
11.7 |
|||||||||||||||
Total refinery production (15) |
71,191 |
100.0 |
41,406 |
100.0 |
69,091 |
100.0 |
66,398 |
100.0 |
|||||||||||||||
Refinery utilization (16) |
87.2 |
% |
83.1 |
% |
84.9 |
% |
91.3 |
% | |||||||||||||||
THROUGHPUT AND PRODUCTION DATA: CALIFORNIA RENEWABLE FUELS FACILITY |
For the Three Months Ended |
For the Year Ended | |||||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Tallow/vegetable oils |
2,409 |
100.0 |
— |
— |
2,275 |
100.0 |
— |
— |
|||||||||||||||
Total throughput (14) |
2,409 |
100.0 |
— |
— |
2,275 |
100.0 |
— |
— |
|||||||||||||||
Production: |
|||||||||||||||||||||||
Renewable diesel |
2,154 |
91.0 |
— |
— |
1,998 |
89.0 |
— |
— |
|||||||||||||||
Renewable jet |
143 |
6.0 |
— |
— |
149 |
6.6 |
— |
— |
|||||||||||||||
Naphtha |
70 |
3.0 |
— |
— |
99 |
4.4 |
— |
— |
|||||||||||||||
Total production (15) |
2,367 |
100.0 |
— |
— |
2,246 |
100.0 |
— |
— |
ASPHALT SEGMENT |
||||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
December 31, |
December 31, |
|||||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||
(dollars in thousands, except per ton data) |
||||||||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||||||||||||||
Net sales (17) |
$ |
53,592 |
$ |
48,967 |
$ |
248,988 |
$ |
257,955 |
||||||||||||
Operating costs and expenses: |
||||||||||||||||||||
Cost of sales (17) (18) |
39,983 |
38,081 |
190,047 |
212,166 |
||||||||||||||||
Direct operating expenses |
6,831 |
6,363 |
25,653 |
28,017 |
||||||||||||||||
Selling, general and administrative expenses |
2,299 |
3,280 |
10,796 |
10,517 |
||||||||||||||||
Depreciation and amortization |
1,259 |
1,227 |
5,044 |
4,892 |
||||||||||||||||
Total operating costs and expenses |
50,372 |
48,951 |
231,540 |
255,592 |
||||||||||||||||
Operating income (21) |
$ |
3,220 |
$ |
16 |
$ |
17,448 |
$ |
2,363 |
||||||||||||
KEY OPERATING STATISTICS: |
||||||||||||||||||||
Blended asphalt sales volume (tons in thousands) (19) |
112 |
104 |
522 |
451 |
||||||||||||||||
Non-blended asphalt sales volume (tons in |
||||||||||||||||||||
thousands) (20) |
21 |
18 |
85 |
59 |
||||||||||||||||
Blended asphalt sales price per ton (19) |
$ |
385.67 |
$ |
451.98 |
$ |
398.84 |
$ |
486.34 |
||||||||||||
Non-blended asphalt sales price per ton (20) |
141.38 |
116.61 |
146.36 |
231.00 |
||||||||||||||||
Asphalt margin per ton (21) |
107.89 |
102.85 |
98.80 |
105.70 |
||||||||||||||||
Capital expenditures |
$ |
1,007 |
$ |
901 |
$ |
3,001 |
$ |
3,385 |
||||||||||||
RETAIL SEGMENT |
||||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
December 31, |
December 31, |
|||||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||
(dollars in thousands, except per gallon data) |
||||||||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||||||||||||||
Net sales (1) |
$ |
187,999 |
$ |
182,960 |
$ |
731,743 |
$ |
774,435 |
||||||||||||
Operating costs and expenses: |
||||||||||||||||||||
Cost of sales (18) |
153,854 |
147,223 |
588,783 |
626,903 |
||||||||||||||||
Selling, general and administrative expenses |
29,335 |
28,292 |
114,334 |
109,943 |
||||||||||||||||
Depreciation and amortization |
3,378 |
3,427 |
13,519 |
12,431 |
||||||||||||||||
Total operating costs and expenses |
186,567 |
178,942 |
716,636 |
749,277 |
||||||||||||||||
Gain (loss) on disposition of assets |
(90) |
— |
429 |
72 |
||||||||||||||||
Operating income |
$ |
1,342 |
$ |
4,018 |
$ |
15,536 |
$ |
25,230 |
||||||||||||
KEY OPERATING STATISTICS: |
||||||||||||||||||||
Number of stores (end of period) (22) |
306 |
309 |
306 |
309 |
||||||||||||||||
Retail fuel sales (thousands of gallons) |
53,974 |
52,155 |
208,963 |
199,147 |
||||||||||||||||
Retail fuel sales (thousands of gallons per site per month) (22) |
61 |
58 |
59 |
58 |
||||||||||||||||
Retail fuel margin (cents per gallon) (23) |
18.5 |
20.0 |
19.8 |
21.3 |
||||||||||||||||
Retail fuel sales price (dollars per gallon) (24) |
$ |
2.02 |
$ |
1.95 |
$ |
1.95 |
$ |
2.24 |
||||||||||||
Merchandise sales |
$ |
78,948 |
$ |
80,958 |
$ |
324,434 |
$ |
328,505 |
||||||||||||
Merchandise sales (per site per month) (22) |
$ |
86 |
$ |
87 |
$ |
88 |
$ |
91 |
||||||||||||
Merchandise margin (25) |
30.5 |
% |
31.1 |
% |
31.2 |
% |
31.9 |
% |
||||||||||||
Capital expenditures |
$ |
850 |
$ |
4,110 |
$ |
5,630 |
$ |
18,993 |
(1) |
Includes excise taxes on sales by the retail segment of $21,087 and $20,367 for the three months ended December 31, 2016 and 2015, respectively, and $81,602 and $77,860 for the years ended December 31, 2016 and 2015, respectively. | |||||||||||||||
(2) |
Includes corporate headquarters selling, general and administrative expenses of $181 and $181 for the three months ended December 31, 2016 and 2015, respectively, and $738 and $713 for the years ended December 31, 2016 and 2015, respectively, which are not allocated to our three operating segments. | |||||||||||||||
(3) |
Includes corporate depreciation and amortization of $713 and $325 for the three months ended December 31, 2016 and 2015, respectively, and $2,710 and $1,552 for the years ended December 31, 2016 and 2015, respectively, which are not allocated to our three operating segments. | |||||||||||||||
(4) |
During the three months and year ended December 31, 2015, we recognized a goodwill impairment loss of $39,028 related to our California refining reporting unit. | |||||||||||||||
(5) |
The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding after-tax employee retention expense, loss on impairment of goodwill, after-tax loss on asphalt inventory adjustment, after-tax insurance recoveries net of professional fees, after-tax unrealized gains (losses) on commodity swaps and after-tax gain (loss) on disposition of assets. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) 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 Year Ended | |||||||||||||||
December 31, |
December 31, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net income (loss) available to stockholders |
$ |
(18,098) |
$ |
(52,534) |
$ |
(82,805) |
$ |
52,751 |
||||||||
Exclude adjustments: |
||||||||||||||||
Employee retention expense |
2,000 |
1,333 |
10,700 |
11,333 |
||||||||||||
Loss on impairment of goodwill |
— |
39,028 |
— |
39,028 |
||||||||||||
Loss on asphalt inventory adjustment |
740 |
1,662 |
1,032 |
8,118 |
||||||||||||
Insurance recoveries, net of professional fees |
— |
(3,648) |
— |
(3,648) |
||||||||||||
Unrealized (gains) losses on commodity swaps |
3,767 |
1,077 |
14,799 |
(7,937) |
||||||||||||
(Gain) loss on disposition of assets |
90 |
(1,319) |
1,650 |
(1,914) |
||||||||||||
Total adjustments |
6,597 |
38,133 |
28,181 |
44,980 |
||||||||||||
Income tax impact related to adjustments |
(2,762) |
245 |
(10,413) |
(1,731) |
||||||||||||
Non-controlling interest impact related to adjustments |
(16) |
(479) |
(75) |
(541) |
||||||||||||
Adjusted net income (loss) available to stockholders |
$ |
(14,279) |
$ |
(14,635) |
$ |
(65,112) |
$ |
95,459 |
||||||||
Adjusted earnings (loss) per share * |
$ |
(0.20) |
$ |
(0.21) |
$ |
(0.92) |
$ |
1.37 |
||||||||
* |
Adjusted earnings (loss) per share includes the effects of dividends on preferred stock on adjusted net income (loss) available to stockholders necessary to calculate earnings (loss) per share. |
(6) |
Adjusted EBITDA represents earnings before net income attributable to non-controlling interest, income tax expense (benefit), interest expense, depreciation and amortization, gain (loss) on disposition of assets, loss on impairment of goodwill 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 (benefit), interest expense, gain (loss) on disposition of assets, loss on impairment of goodwill, 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: | ||||||||||||||||
| ||||||||||||||||
| ||||||||||||||||
| ||||||||||||||||
| ||||||||||||||||
| ||||||||||||||||
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 (loss) available to stockholders to Adjusted EBITDA for the three months and years ended December 31, 2016 and 2015: | ||||||||||||||||
For the Three Months Ended |
For the Year Ended | |||||||||||||||
December 31, |
December 31, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net income (loss) available to stockholders |
$ |
(18,098) |
$ |
(52,534) |
$ |
(82,805) |
$ |
52,751 |
||||||||
Net income attributable to non-controlling interest |
2,293 |
628 |
2,972 |
29,636 |
||||||||||||
Income tax expense (benefit) |
(11,383) |
(4,860) |
(46,789) |
48,282 |
||||||||||||
Interest expense |
16,584 |
19,876 |
69,717 |
79,826 |
||||||||||||
Depreciation and amortization |
36,852 |
32,232 |
145,577 |
126,494 |
||||||||||||
(Gain) loss on disposition of assets |
90 |
(1,319) |
1,650 |
(1,914) |
||||||||||||
Loss on impairment of goodwill |
— |
39,028 |
— |
39,028 |
||||||||||||
Unrealized (gains) losses on commodity swaps |
3,767 |
1,077 |
14,799 |
(7,937) |
||||||||||||
Adjusted EBITDA |
$ |
30,105 |
$ |
34,128 |
$ |
105,121 |
$ |
366,166 |
||||||||
Adjusted EBITDA does not exclude losses of $(740) and $(1,662) for the three months ended December 31, 2016 and 2015, respectively, and $(1,032) and $(8,118) for the years ended December 31, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. |
(7) |
Includes corporate capital expenditures of $635 and $996 for the three months ended December 31, 2016 and 2015, respectively, and $3,348 and $5,388 for the years ended December 31, 2016 and 2015, respectively, which are not allocated to our three operating segments. |
(8) |
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. |
(9) |
Refinery operating margin is a per barrel measurement calculated by dividing the margin between net sales and cost of sales (exclusive of certain 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 months and year ended December 31, 2016 excludes realized and unrealized gains (losses) on commodity swaps of $(28) and $367, respectively. | |
The refinery operating margin for the three months and year ended December 31, 2015 excludes realized and unrealized gains on commodity swaps of $9,759 and $59,215, respectively. The refinery operating margin for the three months and year ended December 31, 2015 also excludes insurance recoveries of $10,868. The refinery operating margin for the Big Spring refinery and the Krotz Springs refinery excludes $3,941 related substantially to inventory adjustments for the year ended December 31, 2015. | |
(10) |
The operating margin for our California renewable fuels facility is a per barrel measurement calculated by dividing the facility's margin between net sales and cost of sales by the facility's throughput volumes. Included in net sales are environmental credits in the form of RINs, California low-carbon fuel standards credits and blender's tax credits generated by the facility. |
(11) |
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. |
(12) |
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. | |
(13) |
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 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. 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. |
(14) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. Total throughput for the California renewable fuels facility represents the total barrels per day of tallow and vegetable oils used by the facility for the period following March 1, 2016. |
(15) |
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. Total production for the California renewable fuels facility represents the barrels per day of various products produced from processing tallow and vegetable oils through the facility's units for the period following March 1, 2016. |
(16) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
(17) |
Net sales and cost of sales include asphalt purchases sold as part of the supply and offtake arrangement of $7,428 and $0 for the three months ended December 31, 2016 and 2015, respectively, and $28,354 and $24,988 for the years ended December 31, 2016 and 2015, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics. |
(18) |
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. |
(19) |
Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product. |
(20) |
Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product. |
(21) |
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 excludes losses of $(740) and $(1,662) for the three months ended December 31, 2016 and 2015, respectively, and $(1,032) and $(8,118) for the years ended December 31, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. These losses are included in operating income of the asphalt segment. | |
(22) |
At December 31, 2016, we had 306 retail convenience stores of which 296 sold fuel. At December 31, 2015, we had 309 retail convenience stores of which 298 sold fuel. |
The 14 retail convenience stores acquired in August 2015 have been included in the per site key operating statistics only for the period after acquisition. | |
(23) |
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. |
(24) |
Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores. |
(25) |
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 Morris, Investor Relations |
Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard § Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, Feb. 22, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the quarter and year ended December 31, 2016. Net income for the fourth quarter of 2016 was $0.9 million, or $0.01 per unit, compared to net income of $7.2 million, or $0.12 per unit, for the same period last year. Net loss for the full year 2016 was $(4.4) million, or $(0.07) per unit, compared to net income of $156.9 million, or $2.51 per unit, for the same period last year.
Alan Moret, CEO, commented, "Our fourth quarter results reflected the weak refining margin environment that existed throughout 2016, which was exacerbated by high RINs prices negatively impacting our refinery operating margin. The Partnership declared a cash distribution of $0.11 per unit on February 9, 2017 related to our performance in the fourth quarter of 2016. We have been encouraged by the improvement in refining fundamentals that we saw at the end of 2016 and into 2017, including widened discounts for domestic crude relative to Brent and widened discounts in WTS relative to WTI Cushing. We have also been pleased to see RIN prices decline."
During 2016, we generated cash available for distribution of $0.40 per unit compared to $2.81 per unit during 2015.
Shai Even, President and CFO, commented, "The Big Spring refinery ran well in the fourth quarter, achieving total throughput of almost 77,000 barrels per day. The refinery also set a new quarterly record by processing over 44,000 barrels per day of WTI Midland in the quarter, further demonstrating the flexibility of the asset. The refinery operating margin of $7.65 per barrel for the fourth quarter is net of a negative impact of approximately $1.10 per barrel related to RINs costs. Operating expense in the fourth quarter was low at $3.39 per barrel.
"As we've said before, we do not expect any major maintenance at Big Spring in 2017. We expect total throughput at the Big Spring refinery to average 77,000 barrels per day for the first quarter of 2017 and 75,000 barrels per day for the full year of 2017. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the first quarter of 2017."
FOURTH QUARTER 2016
Refinery operating margin was $7.65 per barrel for the fourth quarter of 2016 compared to $10.02 per barrel for the same period in 2015. This decrease in operating margin was primarily due to increased RINs costs, a reduced benefit from the contango market environment which increased the cost of crude and unfavorable differences in Group III to Gulf Coast gasoline and diesel prices in the fourth quarter of 2016 compared to the same period in 2015. Refinery average throughput for the fourth quarter of 2016 was 76,654 barrels per day ("bpd") compared to 75,925 bpd for the same period in 2015.
The average Gulf Coast 3/2/1 crack spread was $12.83 per barrel for the fourth quarter of 2016 compared to $10.90 per barrel for the same period in 2015. The average WTI Cushing to WTI Midland spread for the fourth quarter of 2016 was $0.25 per barrel compared to $(0.20) per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the fourth quarter of 2016 was $1.33 per barrel compared to $(0.26) per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the fourth quarter of 2016 was $(0.20) per barrel compared to $1.35 per barrel for the same period in 2015.
The contango environment in the fourth quarter of 2016 created an average cost of crude benefit of $0.79 per barrel compared to an average cost of crude benefit of $0.94 per barrel for the same period in 2015. The average RINs cost effect on refinery operating margin was $1.08 per barrel in the fourth quarter of 2016, compared to $0.45 per barrel for the same period in 2015.
FULL-YEAR 2016
Refinery operating margin was $8.28 per barrel for 2016 compared to $14.43 per barrel for 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread and increased RINs costs, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for 2016 was 71,363 bpd compared to 74,906 bpd for 2015. The reduced throughput during 2016 was the result of a reformer regeneration during the first quarter of 2016 and third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units.
The average Gulf Coast 3/2/1 crack spread for 2016 was $12.64 per barrel compared to $17.02 per barrel for 2015. The average WTI Cushing to WTI Midland spread for 2016 was $0.15 per barrel compared to $0.39 per barrel for 2015. The average WTI Cushing to WTS spread for 2016 was $0.73 per barrel compared to $(0.06) per barrel for 2015. The average Brent to WTI Cushing spread for 2016 was $0.21 per barrel compared to $3.54 per barrel for 2015. The contango environment in 2016 created an average cost of crude benefit of $1.24 per barrel compared to an average cost of crude benefit of $1.01 per barrel in 2015. The average RINs cost effect on refinery operating margin was $0.55 per barrel in 2016, compared to $0.42 per barrel in 2015.
CONFERENCE CALL
Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time), to discuss the fourth quarter and year-end 2016 financial results. To access the call, please dial 877-404-9648, or 412-902-0030 for international callers, and ask for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners' website at www.alonpartners.com. A telephonic replay of the conference call will be available through March 3, 2017, and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13653001#. A webcast archive will also be available at www.alonpartners.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.
This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholdings on the distributions received by them on behalf of foreign investors.
Any statements in this 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.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Partners GP, LLC |
Investors: Jack Lascar 713-529-6600
Media: Blake Lewis |
- Tables to follow -
ALON USA PARTNERS, LP AND SUBSIDIARIES CONSOLIDATED | |||||||||||||||
EARNINGS RELEASE | |||||||||||||||
RESULTS OF OPERATIONS - FINANCIAL DATA |
For the Three Months Ended |
For the Year Ended | |||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per unit data, per barrel data and pricing statistics) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
509,009 |
$ |
437,872 |
$ |
1,807,732 |
$ |
2,157,191 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
453,944 |
369,896 |
1,588,219 |
1,767,291 |
|||||||||||
Direct operating expenses |
23,914 |
27,092 |
97,338 |
98,929 |
|||||||||||
Selling, general and administrative expenses |
7,719 |
7,699 |
31,983 |
32,353 |
|||||||||||
Depreciation and amortization |
14,070 |
13,831 |
57,524 |
55,112 |
|||||||||||
Total operating costs and expenses |
499,647 |
418,518 |
1,775,064 |
1,953,685 |
|||||||||||
Operating income |
9,362 |
19,354 |
32,668 |
203,506 |
|||||||||||
Interest expense |
(8,477) |
(11,942) |
(37,128) |
(45,987) |
|||||||||||
Other income, net |
43 |
26 |
593 |
52 |
|||||||||||
Income (loss) before state income tax expense |
928 |
7,438 |
(3,867) |
157,571 |
|||||||||||
State income tax expense |
44 |
192 |
537 |
672 |
|||||||||||
Net income (loss) |
$ |
884 |
$ |
7,246 |
$ |
(4,404) |
$ |
156,899 |
|||||||
Earnings (loss) per unit |
$ |
0.01 |
$ |
0.12 |
$ |
(0.07) |
$ |
2.51 |
|||||||
Weighted average common units outstanding (in thousands) |
62,520 |
62,510 |
62,516 |
62,509 |
|||||||||||
Cash distribution per unit |
$ |
0.15 |
$ |
0.98 |
$ |
0.37 |
$ |
3.43 |
|||||||
CASH FLOW DATA: |
|||||||||||||||
Net cash provided by (used in): |
|||||||||||||||
Operating activities |
$ |
19,658 |
$ |
20,513 |
$ |
78,115 |
$ |
239,745 |
|||||||
Investing activities |
(6,473) |
(14,228) |
(33,351) |
(29,550) |
|||||||||||
Financing activities |
(143,424) |
(8,610) |
(104,193) |
(183,567) |
|||||||||||
OTHER DATA: |
|||||||||||||||
Adjusted EBITDA (2) |
$ |
23,475 |
$ |
33,211 |
$ |
90,785 |
$ |
258,670 |
|||||||
Cash available for distribution (2) |
6,991 |
5,019 |
|||||||||||||
Capital expenditures |
6,388 |
11,458 |
23,587 |
23,566 |
|||||||||||
Capital expenditures for turnarounds and catalysts |
85 |
2,770 |
9,764 |
5,984 |
|||||||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Per barrel of throughput: |
|||||||||||||||
Refinery operating margin (3) |
$ |
7.65 |
$ |
10.02 |
$ |
8.28 |
$ |
14.43 |
|||||||
Refinery direct operating expense (4) |
3.39 |
3.88 |
3.73 |
3.62 |
|||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per unit data, per barrel data and pricing statistics) | |||||||||||||||
PRICING STATISTICS: |
|||||||||||||||
Crack spreads (per barrel): |
|||||||||||||||
Gulf Coast 3/2/1 (5) |
$ |
12.83 |
$ |
10.90 |
$ |
12.64 |
$ |
17.02 |
|||||||
WTI Cushing crude oil (per barrel) |
$ |
49.21 |
$ |
42.05 |
$ |
43.24 |
$ |
48.68 |
|||||||
Crude oil differentials (per barrel): |
|||||||||||||||
WTI Cushing less WTI Midland (6) |
$ |
0.25 |
$ |
(0.20) |
$ |
0.15 |
$ |
0.39 |
|||||||
WTI Cushing less WTS (6) |
1.33 |
(0.26) |
0.73 |
(0.06) |
|||||||||||
Brent less WTI Cushing (6) |
(0.20) |
1.35 |
0.21 |
3.54 |
|||||||||||
Product price (dollars per gallon): |
|||||||||||||||
Gulf Coast unleaded gasoline |
$ |
1.45 |
$ |
1.25 |
$ |
1.34 |
$ |
1.56 |
|||||||
Gulf Coast ultra-low sulfur diesel |
1.52 |
1.29 |
1.32 |
1.58 |
|||||||||||
Natural gas (per MMBtu) |
3.18 |
2.23 |
2.55 |
2.63 |
|||||||||||
As of December 31, | |||||||||||||||
2016 |
2015 | ||||||||||||||
(dollars in thousands) | |||||||||||||||
BALANCE SHEET DATA (end of period): |
|||||||||||||||
Cash and cash equivalents |
$ |
73,524 |
$ |
132,953 |
|||||||||||
Working capital |
(73,563) |
(53,804) |
|||||||||||||
Total assets |
695,637 |
748,584 |
|||||||||||||
Total debt |
236,319 |
292,082 |
|||||||||||||
Total debt less cash and cash equivalents |
162,795 |
159,129 |
|||||||||||||
Total partners' equity |
103,503 |
130,957 |
THROUGHPUT AND PRODUCTION DATA: |
For the Three Months Ended |
For the Year Ended | |||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTS crude |
27,458 |
35.8 |
29,510 |
38.9 |
31,000 |
43.4 |
33,647 |
44.9 |
|||||||||||||||
WTI crude |
44,112 |
57.5 |
43,968 |
57.9 |
36,862 |
51.7 |
38,632 |
51.6 |
|||||||||||||||
Blendstocks |
5,084 |
6.7 |
2,447 |
3.2 |
3,501 |
4.9 |
2,627 |
3.5 |
|||||||||||||||
Total refinery throughput (7) |
76,654 |
100.0 |
75,925 |
100.0 |
71,363 |
100.0 |
74,906 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
39,371 |
51.2 |
38,600 |
50.8 |
35,220 |
49.4 |
37,519 |
50.0 |
|||||||||||||||
Diesel/jet |
27,619 |
35.9 |
27,812 |
36.6 |
25,739 |
36.1 |
27,651 |
36.8 |
|||||||||||||||
Asphalt |
2,533 |
3.3 |
2,362 |
3.1 |
2,767 |
3.9 |
2,639 |
3.5 |
|||||||||||||||
Petrochemicals |
4,647 |
6.1 |
4,012 |
5.3 |
3,872 |
5.4 |
4,579 |
6.1 |
|||||||||||||||
Other |
2,714 |
3.5 |
3,176 |
4.2 |
3,740 |
5.2 |
2,678 |
3.6 |
|||||||||||||||
Total refinery production (8) |
76,884 |
100.0 |
75,962 |
100.0 |
71,338 |
100.0 |
75,066 |
100.0 |
|||||||||||||||
Refinery utilization (9) |
98.0 |
% |
100.7 |
% |
96.1 |
% |
99.0 |
% |
(1) |
Includes sales to related parties of $84,786 and $77,058 for the three months ended December 31, 2016 and 2015, respectively, and $307,497 and $358,194 for the years ended December 31, 2016 and 2015, respectively. | |
(2) |
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. 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 state income tax expense, interest expense 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 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 (loss) to Adjusted EBITDA for the three months and years ended December 31, 2016 and 2015: |
For the Three Months Ended |
For the Year Ended | ||||||||||||||||
December 31, |
December 31, | ||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income (loss) |
$ |
884 |
$ |
7,246 |
$ |
(4,404) |
$ |
156,899 |
|||||||||
State income tax expense |
44 |
192 |
537 |
672 |
|||||||||||||
Interest expense |
8,477 |
11,942 |
37,128 |
45,987 |
|||||||||||||
Depreciation and amortization |
14,070 |
13,831 |
57,524 |
55,112 |
|||||||||||||
Adjusted EBITDA |
$ |
23,475 |
$ |
33,211 |
$ |
90,785 |
$ |
258,670 |
Cash available for distribution is not a recognized term under GAAP. Our management believes that the presentation of cash available for distribution is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of entities in our industry. Cash available for distribution should not be considered in isolation or as an alternative to net income or operating income as a measure of operating performance. In addition, cash available for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Cash available for distribution as reported may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure. | ||
Available cash for each quarter generally equals our Adjusted EBITDA for the quarter, less cash needed for maintenance capital expenditures, debt service and other contractual obligations and reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, including reserves for our expenses in the quarters in which our planned major turnarounds and catalyst replacements occur. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all. | ||
The following table reconciles Adjusted EBITDA to cash available for distribution for the three months ended December 31, 2016 and 2015: |
For the Three Months Ended | ||||||||
December 31, | ||||||||
2016 |
2015 | |||||||
(dollars in thousands) | ||||||||
Adjusted EBITDA |
$ |
23,475 |
$ |
33,211 |
||||
less: Maintenance/growth capital expenditures |
6,388 |
11,458 |
||||||
less: Turnaround and catalyst replacement capital expenditures |
85 |
2,770 |
||||||
less: Major turnaround reserve for future years |
1,500 |
1,500 |
||||||
less: Principal payments |
625 |
625 |
||||||
less: State income tax payments |
44 |
377 |
||||||
less: Interest paid in cash |
7,842 |
11,462 |
||||||
Cash available for distribution |
$ |
6,991 |
$ |
5,019 |
(3) |
Refinery operating margin is a per barrel measurement calculated by dividing the margin between net sales and cost of sales (exclusive of certain inventory adjustments) 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 margin to these crack spreads to assess our operating performance relative to other participants in our industry. | ||||||
Refinery operating margin for the three months and year ended December 31, 2016 excludes gains related to inventory adjustments of $1,137 and $3,183, respectively. Refinery operating margin for the three months and year ended December 31, 2015 excludes losses related to inventory adjustments of $(1,983) and $(4,746), respectively. | |||||||
(4) |
Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses by total throughput volumes. | ||||||
(5) |
We compare our refinery 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. | ||||||
(6) |
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 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. | ||||||
(7) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. | ||||||
(8) |
Total refinery production represents the barrels per day of various refined products produced from processing crude and other refinery feedstocks through the crude units and other conversion units. | ||||||
(9) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
SOURCE Alon USA Partners, LP
DALLAS, Feb. 9, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that the Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a distribution of $0.11 per unit payable in cash on February 28, 2017 to common unitholders of record at the close of business on February 21, 2017. Cash available for distribution for the three months ended December 31, 2016 totaled $7.0 million.
This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholdings on the distributions received by them on behalf of foreign investors.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
The preliminary financial results for the three months ended December 31, 2016 presented below, and utilized for the determination of cash available for distribution, are forward-looking statements based on preliminary estimates. These results reflect the best judgment of our management but involve a number of risks and uncertainties which could cause actual results to differ materially from those set forth in our estimates and from past results or performance. Such preliminary results are subject to finalization of our financial closing process for the three months ended December 31, 2016. Consequently, there can be no assurances that the preliminary estimates set forth below will be the actual financial results for the three months ended December 31, 2016, and any variation between the estimates and our actual results set forth below may be material.
ALON USA PARTNERS, LP | ||||
CASH AVAILABLE FOR DISTRIBUTION | ||||
(unaudited) | ||||
(dollars in thousands, except per unit data) | ||||
For the Three Months | ||||
December 31, 2016 | ||||
Net sales |
$ |
509,009 |
||
Operating costs and expenses: |
||||
Cost of sales |
453,944 |
|||
Direct operating expenses |
23,914 |
|||
Selling, general and administrative expenses |
7,719 |
|||
Depreciation and amortization |
14,070 |
|||
Total operating costs and expenses |
499,647 |
|||
Operating income |
9,362 |
|||
Interest expense |
(8,477) |
|||
Other income, net |
43 |
|||
Income before state income tax expense |
928 |
|||
State income tax expense |
44 |
|||
Net income |
$ |
884 |
||
Adjustments to reconcile net income to Adjusted EBITDA: |
||||
Interest expense |
8,477 |
|||
State income tax expense |
44 |
|||
Depreciation and amortization |
14,070 |
|||
Adjusted EBITDA |
$ |
23,475 |
||
Adjustments to reconcile Adjusted EBITDA to cash available for distribution: |
||||
less: Maintenance/growth capital expenditures |
6,388 |
|||
less: Turnaround and catalyst replacement capital expenditures |
85 |
|||
less: Major turnaround reserve for future years |
1,500 |
|||
less: Principal payments |
625 |
|||
less: State income tax payments |
44 |
|||
less: Interest paid in cash |
7,842 |
|||
Cash available for distribution |
$ |
6,991 |
||
Common units outstanding (in 000's) |
62,520 |
|||
Cash available for distribution per unit |
$ |
0.11 |
Non-GAAP Financial Measure
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. 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 state income tax expense, interest expense 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:
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.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Partners GP, LLC 972-367-3808 |
Investors: Jack Lascar Dennard § Lascar Associates, LLC 713-529-6600 | |
Media: Blake Lewis Lewis Public Relations 214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, Jan. 23, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced plans to declare a cash distribution related to the fourth quarter 2016 after the market closes on Thursday, February 9, 2017. Alon Partners today also announced that it will release its fourth quarter and year-end 2016 financial results on Wednesday, February 22, 2017 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).
What: |
Alon USA Partners, LP Fourth Quarter and Year-End 2016 Earnings Conference Call |
When: |
Friday, February 24, 2017 - 10:00 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. |
A telephonic replay of the conference call will be available through March 3, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13653001#. A webcast archive will also be available at www.alonpartners.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 Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 | |
SOURCE Alon USA Partners, LP
DALLAS, Jan. 23, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its fourth quarter and year-end 2016 financial results on Thursday, February 23, 2017 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time).
What: |
Alon USA Energy, Inc. Fourth Quarter and Year-End 2016 Earnings Conference Call |
When: |
Friday, February 24, 2017 – 11:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking 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 March 3, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13652999#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
NEW ORLEANS, Jan. 11, 2017 /PRNewswire/ -- Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of Alon USA Energy, Inc. ("Alon" or the "Company") (NYSE: ALJ) to Delek US Holdings, Inc. (NYSE: DK). Under the terms of the proposed transaction, shareholders of Alon will receive only 0.5040 shares of Delek for each share of Alon that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn (lewis.kahn@ksfcounsel.com) toll free at any time at 855-768-1857.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
206 Covington St.
Madisonville, LA 70447
SOURCE Kahn Swick & Foti, LLC
DALLAS, Dec. 28, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will attend the Wolfe Research 2017 Refiners Conference to be held on January 4, 2017 in Boston, Massachusetts.
Shai Even, Senior Vice President and Chief Financial Officer, will hold one-on-one meetings with investors to discuss both Alon USA Energy and Alon USA Partners, LP (NYSE: ALDW).
The related meeting materials will be available beginning the morning of January 4, 2017 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.com/ as well as on the News & Events section of the Alon USA Partners website at www.alonpartners.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 81.6% 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 and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, Oct. 27, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the third quarter of 2016. Net loss available to stockholders for the third quarter of 2016 was $(8.8) million, or $(0.12) per share, compared to net income available to stockholders of $41.9 million, or $0.60 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(6.7) million, or $(0.09) per share, for the third quarter of 2016, compared to net income available to stockholders of $42.0 million, or $0.60 per share, for the same period last year.
Net loss available to stockholders for the first nine months of 2016 was $(64.7) million, or $(0.92) per share, compared to net income available to stockholders of $105.3 million, or $1.51 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(50.9) million, or $(0.72) per share, for the first nine months of 2016, compared to net income available to stockholders of $110.1 million, or $1.58 per share, for the same period last year.
Paul Eisman, President and CEO commented, "Our third quarter results reflect a continuation of the difficult refining environment experienced in the first two quarters of 2016. The average Gulf Coast 3-2-1 benchmark crack spread for the third quarter of 2016 was approximately $6.50 per barrel lower than the average for the same period last year. Additionally, high RINs costs continue to weigh on our profitability. We continue to focus on operational excellence and controlling expenditures across the organization in this environment. We were pleased with the contributions in the third quarter from our asphalt marketing business and our renewable fuels project in California.
"The Big Spring refinery achieved total throughput of 70,000 barrels per day and generated refinery operating margin of $9.22 per barrel. As discussed in our previous earnings release, our Big Spring refinery's third quarter results were negatively impacted by a reformer regeneration in August. We estimate that the lost opportunity cost and maintenance expense associated with the reformer regeneration negatively impacted Alon's operating income by $8 million. Our Big Spring refinery's direct operating expense of $3.90 per barrel was negatively impacted by the reformer regeneration, which lowered throughput volumes and increased maintenance expense. We expect total throughput at the Big Spring refinery to average approximately 77,000 barrels per day for the fourth quarter of 2016.
"The Krotz Springs refinery ran well in the third quarter and achieved total throughput of 68,000 barrels per day, as we increased throughput in response to improved market conditions. The Krotz Springs refinery operating margin of $3.42 per barrel was negatively impacted by the high RINs cost of approximately $1.50 per barrel. We expect total throughput at the Krotz Springs refinery to average approximately 69,000 barrels per day in the fourth quarter of 2016. However, we will remain responsive to the crack spread environment and adjust throughput volumes as necessary to optimize our profitability.
"Our renewable fuels project generated operating income of $6 million in the third quarter of 2016 with total throughput of 2,582 barrels per day. The project achieved renewable diesel and renewable jet yields of 87 percent and 7 percent, respectively. Profitability improved as sales stabilized and tallow prices moderated. In the fourth quarter of 2016, the project's raw material supply will be reduced due to a third party completing maintenance on its equipment. As a result, we expect total throughput in the fourth quarter of 2016 to average approximately 2,400 barrels per day.
"The robust performance of our asphalt business continued in the third quarter of 2016, resulting in segment operating income of approximately $10 million, which does not include equity earnings of $6 million from our asphalt partnerships. Sales volumes were strong at 184 thousand tons, and our asphalt margin remained favorable at $94 per ton.
"Our retail business continues to be negatively impacted by economic headwinds in the Permian Basin. Despite this, our operating income in the third quarter of 2016 increased modestly relative to the second quarter of 2016."
THIRD QUARTER 2016
Special items increased net loss by $2.1 million for the third quarter of 2016 primarily as a result of employee retention expense of $2.0 million and unrealized losses of $3.9 million associated with commodity swaps, partially offset by gains of $1.7 million related to an asphalt inventory adjustment and $0.5 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $1.6 million. Special items reduced net income by $0.1 million for the third quarter of 2015 primarily as a result of employee retention expense of $8.7 million, partially offset by gains of $7.5 million related to an asphalt inventory adjustment and unrealized gains of $1.1 million associated with commodity swaps, before income tax and non-controlling interest impacts.
The combined total refinery average throughput for the third quarter of 2016 was 137,767 barrels per day ("bpd"), consisting of 70,063 bpd at the Big Spring refinery and 67,704 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 146,070 bpd for the third quarter of 2015, consisting of 75,797 bpd at the Big Spring refinery and 70,273 bpd at the Krotz Springs refinery. The reduced throughput at the Big Spring refinery was the result of a reformer regeneration during the third quarter of 2016. The reduced throughput at the Krotz Springs refinery during the third quarter of 2016 was the result of our election to reduce the crude rate in order to optimize the refinery yield.
Refinery operating margin at the Big Spring refinery was $9.22 per barrel for the third quarter of 2016 compared to $16.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and increased RINs costs, partially offset by a widening of both the WTI Cushing to WTI Midland and WTI Cushing to WTS spreads and an increased benefit from the contango market environment which reduced the cost of crude.
Refinery operating margin at the Krotz Springs refinery was $3.42 per barrel for the third quarter of 2016 compared to $6.66 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of the LLS to WTI Cushing spread and increased RINs costs, partially offset by a widening of the WTI Cushing to WTI Midland spread and an increased benefit from the contango market environment which reduced the cost of crude.
The average Gulf Coast 3/2/1 crack spread was $13.31 per barrel for the third quarter of 2016 compared to $19.77 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $8.49 per barrel for the third quarter of 2016 compared to $12.57 per barrel for the same period in 2015.
The average WTI Cushing to WTI Midland spread for the third quarter of 2016 was $0.31 per barrel compared to $(0.72) per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the third quarter of 2016 was $0.92 per barrel compared to $(1.46) per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the third quarter of 2016 was $1.74 per barrel compared to $3.89 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the third quarter of 2016 was $0.74 per barrel compared to $3.78 per barrel for the same period in 2015. The average Brent to LLS spread for the third quarter of 2016 was $(1.92) per barrel compared to $(0.26) per barrel for the same period in 2015.
The average RINs cost effect on the Big Spring refinery operating margin was $0.58 per barrel for the third quarter of 2016, compared to $0.27 per barrel for the same period in 2015. The average RINs cost effect on the Krotz Springs refinery operating margin was $1.47 per barrel for the third quarter of 2016, compared to $0.74 per barrel for the same period in 2015.
The contango environment in the third quarter of 2016 created an average cost of crude benefit of $0.84 per barrel compared to an average cost of crude benefit of $0.57 per barrel for the same period in 2015.
For the third quarter of 2016, our California renewable fuels project generated operating margin of $55.81 per barrel from 2,582 barrels per day of throughput.
Asphalt margins for the third quarter of 2016 were $93.57 per ton compared to $120.39 per ton for the same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins in the third quarter of 2016 were $91.72 per ton compared to $115.04 per ton in the third quarter of 2015.
Retail fuel margins decreased to 19.9 cents per gallon in the third quarter of 2016 from 21.7 cents per gallon in the third quarter of 2015. Retail fuel sales volume increased to 54.1 million gallons in the third quarter of 2016 from 51.4 million gallons in the third quarter of 2015. Merchandise margins increased to 31.7% in the third quarter of 2016 from 31.4% in the third quarter of 2015. Merchandise sales decreased to $84.0 million in the third quarter of 2016 from $86.6 million in the third quarter of 2015.
YEAR-TO-DATE 2016
Special items increased net loss by $13.8 million for the first nine months of 2016 primarily as a result of employee retention expense of $8.7 million, losses of $0.3 million related to an asphalt inventory adjustment, unrealized losses of $11.0 million associated with commodity swaps and $1.6 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $7.8 million. Special items reduced net income by $4.8 million for the first nine months of 2015 primarily as a result of employee retention expense of $10.0 million and losses of $6.5 million related to an asphalt inventory adjustment, partially offset by unrealized gains of $9.0 million associated with commodity swaps and $0.6 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.0 million.
The combined total refinery average throughput for the first nine months of 2016 was 136,730 bpd, consisting of 69,586 bpd at the Big Spring refinery and 67,144 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 147,800 bpd for the first nine months of 2015, consisting of 74,562 bpd at the Big Spring refinery and 73,238 bpd at the Krotz Springs refinery. The reduced throughput at our Big Spring refinery during the first nine months of 2016 was the result of a reformer regeneration during the first quarter of 2016, which was repeated during the third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. The reduced throughput at the Krotz Springs refinery during the first nine months of 2016 was the result of our election to reduce the crude rate in order to optimize the refinery yield, as well as maintenance that was performed on the fluid catalytic cracking unit during the second quarter of 2016.
Refinery operating margin at the Big Spring refinery was $8.52 per barrel for the first nine months of 2016 compared to $15.95 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and a narrowing of the WTI Cushing to WTI Midland spread, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude.
Refinery operating margin at the Krotz Springs refinery was $2.94 per barrel for the first nine months of 2016 compared to $8.05 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads and increased RINs costs, partially offset by an increased benefit from the contango market environment which reduced the cost of crude.
The average Gulf Coast 3/2/1 crack spread for the first nine months of 2016 was $12.57 per barrel compared to $19.08 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the first nine months of 2016 was $7.73 per barrel compared to $12.05 per barrel for the same period in 2015.
The average WTI Cushing to WTI Midland spread for the first nine months of 2016 was $0.12 per barrel compared to $0.60 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first nine months of 2016 was $0.53 per barrel compared to $0.02 per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the first nine months of 2016 was $1.79 per barrel compared to $4.27 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first nine months of 2016 was $0.35 per barrel compared to $4.28 per barrel for the same period in 2015. The average Brent to LLS spread for the first nine months of 2016 was $(1.48) per barrel compared to $0.30 per barrel for the same period in 2015.
The average RINs cost effect on the Krotz Springs refinery operating margin was $1.45 per barrel for the first nine months of 2016, compared to $1.06 per barrel for the same period in 2015.
The contango environment in the first nine months of 2016 created an average cost of crude benefit of $1.39 per barrel compared to an average cost of crude benefit of $1.04 per barrel for the same period in 2015.
For the first nine months of 2016, our California renewable fuels project generated operating margin of $55.46 per barrel from 2,000 barrels per day of throughput.
Asphalt margins for the first nine months of 2016 were $96.25 per ton compared to $106.60 per ton for the same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins for the first nine months of 2016 were $96.70 per ton compared to $110.12 per ton for the same period in 2015.
Retail fuel margins decreased to 20.2 cents per gallon in the first nine months of 2016 from 21.8 cents per gallon in the first nine months of 2015. Retail fuel sales volume increased to 155.0 million gallons in the first nine months of 2016 from 147.0 million gallons in the first nine months of 2015. Merchandise margins decreased to 31.4% in the first nine months of 2016 from 32.1% in the first nine months of 2015. Merchandise sales decreased to $245.5 million in the first nine months of 2016 from $247.5 million in the first nine months of 2015.
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 23, 2016 to stockholders of record at the close of business on December 7, 2016.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016, at 10:30 a.m. Eastern Time (9:30 a.m. Central Time), to discuss the third quarter 2016 financial 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 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646162#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 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 approximately 300 convenience stores which also market motor fuels 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.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Energy, Inc. 972-367-3808 |
Investors: Jack Lascar Dennard § Lascar Associates, LLC 713-529-6600
Media: Blake Lewis |
- 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, 2015, IS UNAUDITED) |
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
1,043,717 |
$ |
1,151,204 |
$ |
2,902,078 |
$ |
3,555,785 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
895,900 |
914,193 |
2,502,438 |
2,878,612 |
|||||||||||
Direct operating expenses |
68,095 |
65,047 |
199,894 |
192,108 |
|||||||||||
Selling, general and administrative expenses (2) |
46,780 |
54,100 |
147,125 |
148,889 |
|||||||||||
Depreciation and amortization (3) |
36,878 |
31,033 |
108,725 |
94,262 |
|||||||||||
Total operating costs and expenses |
1,047,653 |
1,064,373 |
2,958,182 |
3,313,871 |
|||||||||||
Gain (loss) on disposition of assets |
522 |
23 |
(1,560) |
595 |
|||||||||||
Operating income (loss) |
(3,414) |
86,854 |
(57,664) |
242,509 |
|||||||||||
Interest expense |
(16,027) |
(20,696) |
(53,133) |
(59,950) |
|||||||||||
Equity earnings of investees |
6,060 |
3,451 |
10,743 |
4,725 |
|||||||||||
Other income, net |
402 |
92 |
620 |
151 |
|||||||||||
Income (loss) before income tax expense (benefit) |
(12,979) |
69,701 |
(99,434) |
187,435 |
|||||||||||
Income tax expense (benefit) |
(5,641) |
17,325 |
(35,406) |
53,142 |
|||||||||||
Net income (loss) |
(7,338) |
52,376 |
(64,028) |
134,293 |
|||||||||||
Net income attributable to non-controlling interest |
1,462 |
10,440 |
679 |
29,008 |
|||||||||||
Net income (loss) available to stockholders |
$ |
(8,800) |
$ |
41,936 |
$ |
(64,707) |
$ |
105,285 |
|||||||
Earnings (loss) per share, basic |
$ |
(0.12) |
$ |
0.60 |
$ |
(0.92) |
$ |
1.51 |
|||||||
Weighted average shares outstanding, basic (in thousands) |
71,089 |
69,893 |
70,575 |
69,687 |
|||||||||||
Earnings (loss) per share, diluted |
$ |
(0.12) |
$ |
0.58 |
$ |
(0.92) |
$ |
1.46 |
|||||||
Weighted average shares outstanding, diluted (in thousands) |
71,089 |
72,526 |
70,575 |
72,281 |
|||||||||||
Cash dividends per share |
$ |
0.15 |
$ |
0.15 |
$ |
0.45 |
$ |
0.40 |
|||||||
CASH FLOW DATA: |
|||||||||||||||
Net cash provided by (used in): |
|||||||||||||||
Operating activities |
$ |
29,770 |
$ |
60,419 |
$ |
17,761 |
$ |
176,310 |
|||||||
Investing activities |
(16,853) |
(44,353) |
(85,307) |
(78,298) |
|||||||||||
Financing activities |
46,032 |
(41,032) |
98,221 |
(74,109) |
|||||||||||
OTHER DATA: |
|||||||||||||||
Adjusted net income (loss) available to stockholders (4) |
$ |
(6,746) |
$ |
41,981 |
$ |
(50,896) |
$ |
110,119 |
|||||||
Adjusted earnings (loss) per share (4) |
$ |
(0.09) |
$ |
0.60 |
$ |
(0.72) |
$ |
1.58 |
|||||||
Adjusted EBITDA (5) |
$ |
43,292 |
$ |
120,318 |
$ |
75,016 |
$ |
332,038 |
|||||||
Capital expenditures (6) |
12,594 |
26,211 |
49,824 |
57,262 |
|||||||||||
Capital expenditures for turnarounds and catalysts |
5,192 |
7,047 |
29,464 |
11,410 |
|||||||||||
September 30, |
December 31, | ||||||||||||||
(dollars in thousands) | |||||||||||||||
BALANCE SHEET DATA (end of period): |
|||||||||||||||
Cash and cash equivalents |
$ |
264,802 |
$ |
234,127 |
|||||||||||
Working capital |
89,398 |
78,694 |
|||||||||||||
Total assets |
2,277,272 |
2,176,138 |
|||||||||||||
Total debt |
550,461 |
555,962 |
|||||||||||||
Total debt less cash and cash equivalents |
285,659 |
321,835 |
|||||||||||||
Total equity |
608,403 |
664,160 |
REFINING AND MARKETING SEGMENT |
|||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per barrel data and pricing statistics) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (7) |
$ |
859,123 |
$ |
950,926 |
$ |
2,385,649 |
$ |
3,036,458 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
767,796 |
781,731 |
2,140,156 |
2,505,983 |
|||||||||||
Direct operating expenses |
61,366 |
58,162 |
181,072 |
170,454 |
|||||||||||
Selling, general and administrative expenses |
15,867 |
23,190 |
53,072 |
59,469 |
|||||||||||
Depreciation and amortization |
31,504 |
26,363 |
92,802 |
80,366 |
|||||||||||
Total operating costs and expenses |
876,533 |
889,446 |
2,467,102 |
2,816,272 |
|||||||||||
Gain (loss) on disposition of assets |
— |
1 |
(2,079) |
523 |
|||||||||||
Operating income (loss) |
$ |
(17,410) |
$ |
61,481 |
$ |
(83,532) |
$ |
220,709 |
|||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Per barrel of throughput: |
|||||||||||||||
Refinery operating margin – Big Spring (8) |
$ |
9.22 |
$ |
16.71 |
$ |
8.52 |
$ |
15.95 |
|||||||
Refinery operating margin – Krotz Springs (8) |
3.42 |
6.66 |
2.94 |
8.05 |
|||||||||||
California renewable fuel operating margin (9) |
55.81 |
N/A |
55.46 |
N/A |
|||||||||||
Refinery direct operating expense – Big Spring (10) |
3.90 |
3.46 |
3.85 |
3.53 |
|||||||||||
Refinery direct operating expense – Krotz Springs (10) |
3.81 |
3.82 |
3.91 |
3.70 |
|||||||||||
California renewable fuel direct operating expense (10) |
18.66 |
N/A |
20.95 |
N/A |
|||||||||||
Capital expenditures |
$ |
10,218 |
$ |
18,627 |
$ |
40,337 |
$ |
35,503 |
|||||||
Capital expenditures for turnarounds and catalysts |
5,192 |
7,047 |
29,464 |
11,410 |
|||||||||||
PRICING STATISTICS: |
|||||||||||||||
Crack spreads (3/2/1) (per barrel): |
|||||||||||||||
Gulf Coast (10) |
$ |
13.31 |
$ |
19.77 |
$ |
12.57 |
$ |
19.08 |
|||||||
Crack spreads (2/1/1) (per barrel): |
|||||||||||||||
Gulf Coast high sulfur diesel (11) |
$ |
8.49 |
$ |
12.57 |
$ |
7.73 |
$ |
12.05 |
|||||||
WTI Cushing crude oil (per barrel) |
$ |
44.88 |
$ |
46.41 |
$ |
41.23 |
$ |
50.91 |
|||||||
Crude oil differentials (per barrel): |
|||||||||||||||
WTI Cushing less WTI Midland (12) |
$ |
0.31 |
$ |
(0.72) |
$ |
0.12 |
$ |
0.60 |
|||||||
WTI Cushing less WTS (12) |
0.92 |
(1.46) |
0.53 |
0.02 |
|||||||||||
LLS less WTI Cushing (12) |
1.74 |
3.89 |
1.79 |
4.27 |
|||||||||||
Brent less WTI Cushing (12) |
0.74 |
3.78 |
0.35 |
4.28 |
|||||||||||
Brent less LLS (12) |
(1.92) |
(0.26) |
(1.48) |
0.30 |
|||||||||||
Product prices (dollars per gallon): |
|||||||||||||||
Gulf Coast unleaded gasoline |
$ |
1.39 |
$ |
1.61 |
$ |
1.30 |
$ |
1.66 |
|||||||
Gulf Coast ultra-low sulfur diesel |
1.37 |
1.52 |
1.25 |
1.68 |
|||||||||||
Gulf Coast high sulfur diesel |
1.23 |
1.39 |
1.12 |
1.54 |
|||||||||||
Natural gas (per MMBtu) |
2.79 |
2.73 |
2.34 |
2.76 |
THROUGHPUT AND PRODUCTION DATA: BIG SPRING REFINERY |
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||||
September 30, |
September 30, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTS crude |
34,292 |
48.9 |
30,810 |
40.6 |
32,189 |
46.3 |
35,041 |
47.0 |
|||||||||||||||
WTI crude |
32,503 |
46.4 |
42,503 |
56.1 |
34,428 |
49.4 |
36,834 |
49.4 |
|||||||||||||||
Blendstocks |
3,268 |
4.7 |
2,484 |
3.3 |
2,969 |
4.3 |
2,687 |
3.6 |
|||||||||||||||
Total refinery throughput (13) |
70,063 |
100.0 |
75,797 |
100.0 |
69,586 |
100.0 |
74,562 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
33,637 |
48.1 |
37,503 |
49.5 |
33,826 |
48.7 |
37,155 |
49.6 |
|||||||||||||||
Diesel/jet |
26,004 |
37.2 |
28,623 |
37.8 |
25,108 |
36.1 |
27,596 |
36.9 |
|||||||||||||||
Asphalt |
2,818 |
4.0 |
2,452 |
3.2 |
2,846 |
4.1 |
2,733 |
3.7 |
|||||||||||||||
Petrochemicals |
3,861 |
5.5 |
4,588 |
6.1 |
3,611 |
5.2 |
4,770 |
6.4 |
|||||||||||||||
Other |
3,661 |
5.2 |
2,595 |
3.4 |
4,084 |
5.9 |
2,510 |
3.4 |
|||||||||||||||
Total refinery production (14) |
69,981 |
100.0 |
75,761 |
100.0 |
69,475 |
100.0 |
74,764 |
100.0 |
|||||||||||||||
Refinery utilization (15) |
99.1 |
% |
100.4 |
% |
95.5 |
% |
98.5 |
% | |||||||||||||||
THROUGHPUT AND PRODUCTION DATA: KROTZ SPRINGS REFINERY |
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||||
September 30, |
September 30, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTI crude |
26,381 |
39.0 |
21,347 |
30.4 |
18,728 |
27.9 |
27,010 |
36.9 |
|||||||||||||||
Gulf Coast sweet crude |
38,639 |
57.1 |
43,338 |
61.7 |
43,520 |
64.8 |
41,838 |
57.1 |
|||||||||||||||
Blendstocks |
2,684 |
3.9 |
5,588 |
7.9 |
4,896 |
7.3 |
4,390 |
6.0 |
|||||||||||||||
Total refinery throughput (13) |
67,704 |
100.0 |
70,273 |
100.0 |
67,144 |
100.0 |
73,238 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
33,229 |
48.4 |
32,802 |
45.7 |
33,537 |
49.0 |
34,274 |
45.8 |
|||||||||||||||
Diesel/jet |
25,229 |
36.7 |
29,943 |
41.8 |
25,472 |
37.2 |
31,041 |
41.5 |
|||||||||||||||
Heavy Oils |
1,295 |
1.9 |
1,299 |
1.8 |
1,263 |
1.9 |
1,337 |
1.8 |
|||||||||||||||
Other |
8,945 |
13.0 |
7,676 |
10.7 |
8,113 |
11.9 |
8,168 |
10.9 |
|||||||||||||||
Total refinery production (14) |
68,698 |
100.0 |
71,720 |
100.0 |
68,385 |
100.0 |
74,820 |
100.0 |
|||||||||||||||
Refinery utilization (15) |
87.9 |
% |
87.4 |
% |
84.1 |
% |
93.0 |
% | |||||||||||||||
THROUGHPUT AND PRODUCTION DATA: CALIFORNIA RENEWABLE FUELS PROJECT |
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||||
September 30, |
September 30, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Tallow/vegetable oils |
2,582 |
100.0 |
— |
— |
2,000 |
100.0 |
— |
— |
|||||||||||||||
Total throughput (13) |
2,582 |
100.0 |
— |
— |
2,000 |
100.0 |
— |
— |
|||||||||||||||
Production: |
|||||||||||||||||||||||
Renewable diesel |
2,236 |
88.7 |
— |
— |
1,662 |
87.3 |
— |
— |
|||||||||||||||
Renewable jet |
182 |
7.2 |
— |
— |
125 |
6.6 |
— |
— |
|||||||||||||||
Naphtha |
103 |
4.1 |
— |
— |
109 |
5.7 |
— |
— |
|||||||||||||||
Other |
— |
— |
— |
— |
7 |
0.4 |
— |
— |
|||||||||||||||
Total production (14) |
2,521 |
100.0 |
— |
— |
1,903 |
100.0 |
— |
— |
ASPHALT SEGMENT |
||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||
September 30, |
September 30, | |||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||
(dollars in thousands, except per ton data) | ||||||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||||||||||||
Net sales (16) |
$ |
73,800 |
$ |
88,436 |
$ |
195,396 |
$ |
208,988 |
||||||||||
Operating costs and expenses: |
||||||||||||||||||
Cost of sales (16) (17) |
54,873 |
59,031 |
150,064 |
174,085 |
||||||||||||||
Direct operating expenses |
6,729 |
6,885 |
18,822 |
21,654 |
||||||||||||||
Selling, general and administrative expenses |
1,252 |
2,706 |
8,497 |
7,237 |
||||||||||||||
Depreciation and amortization |
1,264 |
1,313 |
3,785 |
3,665 |
||||||||||||||
Total operating costs and expenses |
64,118 |
69,935 |
181,168 |
206,641 |
||||||||||||||
Operating income (20) |
$ |
9,682 |
$ |
18,501 |
$ |
14,228 |
$ |
2,347 |
||||||||||
KEY OPERATING STATISTICS: |
||||||||||||||||||
Blended asphalt sales volume (tons in thousands) (18) |
167 |
174 |
410 |
347 |
||||||||||||||
Non-blended asphalt sales volume (tons in thousands) (19) |
17 |
8 |
64 |
41 |
||||||||||||||
Blended asphalt sales price per ton (18) |
$ |
408.47 |
$ |
494.45 |
$ |
402.43 |
$ |
496.63 |
||||||||||
Non-blended asphalt sales price per ton (19) |
166.53 |
132.13 |
148.00 |
281.22 |
||||||||||||||
Asphalt margin per ton (20) |
93.57 |
120.39 |
96.25 |
106.60 |
||||||||||||||
Capital expenditures |
$ |
919 |
$ |
840 |
$ |
1,994 |
$ |
2,484 |
||||||||||
RETAIL SEGMENT |
||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||
September 30, |
September 30, | |||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||
(dollars in thousands, except per gallon data) | ||||||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
||||||||||||||||||
Net sales (1) |
$ |
193,511 |
$ |
208,856 |
$ |
543,744 |
$ |
591,475 |
||||||||||
Operating costs and expenses: |
||||||||||||||||||
Cost of sales (17) |
155,948 |
170,445 |
434,929 |
479,680 |
||||||||||||||
Selling, general and administrative expenses |
29,478 |
28,024 |
84,999 |
81,651 |
||||||||||||||
Depreciation and amortization |
3,392 |
3,024 |
10,141 |
9,004 |
||||||||||||||
Total operating costs and expenses |
188,818 |
201,493 |
530,069 |
570,335 |
||||||||||||||
Gain on disposition of assets |
522 |
22 |
519 |
72 |
||||||||||||||
Operating income |
$ |
5,215 |
$ |
7,385 |
$ |
14,194 |
$ |
21,212 |
||||||||||
KEY OPERATING STATISTICS: |
||||||||||||||||||
Number of stores (end of period) (21) |
307 |
308 |
307 |
308 |
||||||||||||||
Retail fuel sales (thousands of gallons) |
54,107 |
51,386 |
154,989 |
146,992 |
||||||||||||||
Retail fuel sales (thousands of gallons per site per month) (21) |
61 |
59 |
58 |
57 |
||||||||||||||
Retail fuel margin (cents per gallon) (22) |
19.9 |
21.7 |
20.2 |
21.8 |
||||||||||||||
Retail fuel sales price (dollars per gallon) (23) |
$ |
2.02 |
$ |
2.38 |
$ |
1.92 |
$ |
2.34 |
||||||||||
Merchandise sales |
$ |
83,988 |
$ |
86,567 |
$ |
245,486 |
$ |
247,547 |
||||||||||
Merchandise sales (per site per month) (21) |
$ |
91 |
$ |
96 |
$ |
89 |
$ |
93 |
||||||||||
Merchandise margin (24) |
31.7 |
% |
31.4 |
% |
31.4 |
% |
32.1 |
% | ||||||||||
Capital expenditures |
$ |
869 |
$ |
5,365 |
$ |
4,780 |
$ |
14,883 |
||||||||||
(1) |
Includes excise taxes on sales by the retail segment of $21,126 and $20,068 for the three months ended September 30, 2016 and 2015, respectively, and $60,515 and $57,493 for the nine months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
(2) |
Includes corporate headquarters selling, general and administrative expenses of $183 and $180 for the three months ended September 30, 2016 and 2015, respectively, and $557 and $532 for the nine months ended September 30, 2016 and 2015, respectively, which are not allocated to our three operating segments. | |||||||||||||||||||||
(3) |
Includes corporate depreciation and amortization of $718 and $333 for the three months ended September 30, 2016 and 2015, respectively, and $1,997 and $1,227 for the nine months ended September 30, 2016 and 2015, respectively, which are not allocated to our three operating segments. | |||||||||||||||||||||
(4) |
The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding 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 (loss) available to stockholders is not a recognized measurement under GAAP; however, the amounts included in adjusted net income (loss) available to stockholders are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) 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, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net income (loss) available to stockholders |
$ |
(8,800) |
$ |
41,936 |
$ |
(64,707) |
$ |
105,285 |
||||||||
Exclude adjustments: |
||||||||||||||||
Employee retention expense |
2,000 |
8,666 |
8,700 |
10,000 |
||||||||||||
(Gain) loss on asphalt inventory adjustment |
(1,711) |
(7,494) |
292 |
6,456 |
||||||||||||
Unrealized (gains) losses on commodity swaps |
3,888 |
(1,089) |
11,032 |
(9,014) |
||||||||||||
(Gain) loss on disposition of assets |
(522) |
(23) |
1,560 |
(595) |
||||||||||||
Total adjustments |
3,655 |
60 |
21,584 |
6,847 |
||||||||||||
Income tax impact related to adjustments |
(1,588) |
(15) |
(7,686) |
(1,941) |
||||||||||||
Non-controlling interest impact related to adjustments |
(13) |
— |
(87) |
(72) |
||||||||||||
Adjusted net income (loss) available to stockholders |
$ |
(6,746) |
$ |
41,981 |
$ |
(50,896) |
$ |
110,119 |
||||||||
Adjusted earnings (loss) per share * |
$ |
(0.09) |
$ |
0.60 |
$ |
(0.72) |
$ |
1.58 |
||||||||
* |
Adjusted earnings (loss) per share includes the effects of dividends on preferred stock on adjusted net income (loss) 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 (benefit), 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 (benefit), 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 (loss) available to stockholders to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015: | |||||||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||||
September 30, |
September 30, | |||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Net income (loss) available to stockholders |
$ |
(8,800) |
$ |
41,936 |
$ |
(64,707) |
$ |
105,285 |
||||||||||||||
Net income attributable to non-controlling interest |
1,462 |
10,440 |
679 |
29,008 |
||||||||||||||||||
Income tax expense (benefit) |
(5,641) |
17,325 |
(35,406) |
53,142 |
||||||||||||||||||
Interest expense |
16,027 |
20,696 |
53,133 |
59,950 |
||||||||||||||||||
Depreciation and amortization |
36,878 |
31,033 |
108,725 |
94,262 |
||||||||||||||||||
(Gain) loss on disposition of assets |
(522) |
(23) |
1,560 |
(595) |
||||||||||||||||||
Unrealized (gains) losses on commodity swaps |
3,888 |
(1,089) |
11,032 |
(9,014) |
||||||||||||||||||
Adjusted EBITDA |
$ |
43,292 |
$ |
120,318 |
$ |
75,016 |
$ |
332,038 |
||||||||||||||
Adjusted EBITDA does not exclude (gains) losses of $(1,711) and $(7,494) for the three months ended September 30, 2016 and 2015, respectively, and $292 and $6,456 for the nine months ended September 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. |
|||||||||||||||||||||||
(6) |
Includes corporate capital expenditures of $588 and $1,379 for the three months ended September 30, 2016 and 2015, respectively, and $2,713 and $4,392 for the nine months ended September 30, 2016 and 2015, 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 certain 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, 2016 excludes realized and unrealized gains (losses) on commodity swaps of $(66) and $395, respectively. |
|||||||||||||||||||||||
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 either the Big Spring refinery or the Krotz Springs refinery. |
|||||||||||||||||||||||
(9) |
The California renewable fuels project operating margin is a per barrel measurement calculated by dividing the project's margin between net sales and cost of sales by the project's throughput volumes. Included in net sales are environmental credits in the form of RINs, low-carbon fuel standards credits and blender's tax credits generated by the project. |
||||||||||||||||||||||
(10) |
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. |
||||||||||||||||||||||
(11) |
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. |
|||||||||||||||||||||||
(12) |
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 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. 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. |
||||||||||||||||||||||
(13) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. Total throughput for the California renewable fuels project represents the total barrels per day of tallow and vegetable oils used by the project. |
||||||||||||||||||||||
(14) |
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. Total production for the California renewable fuels project represents the total barrels per day produced from processing tallow and vegetable oils through the project's units. |
||||||||||||||||||||||
(15) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
||||||||||||||||||||||
(16) |
Net sales and cost of sales include asphalt purchases sold as part of a supply and offtake arrangement of $2,754 and $1,344 for the three months ended September 30, 2016 and 2015, respectively, and $20,926 and $25,126 for the nine months ended September 30, 2016 and 2015, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics. |
||||||||||||||||||||||
(17) |
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. |
||||||||||||||||||||||
(18) |
Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product. |
||||||||||||||||||||||
(19) |
Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product. |
||||||||||||||||||||||
(20) |
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 excludes (gains) losses of $(1,711) and $(7,494) for the three months ended September 30, 2016 and 2015, respectively, and $292 and $6,456 for the nine months ended September 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. These (gains) losses are included in operating income (loss) above. |
|||||||||||||||||||||||
(21) |
At September 30, 2016, we had 307 retail convenience stores of which 297 sold fuel. At September 30, 2015, we had 308 retail convenience stores of which 297 sold fuel. |
||||||||||||||||||||||
The 14 retail convenience stores acquired in August 2015 have been included in the per site key operating statistics only for the period after acquisition. |
|||||||||||||||||||||||
(22) |
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. |
||||||||||||||||||||||
(23) |
Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores. |
||||||||||||||||||||||
(24) |
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. |
SOURCE Alon USA Energy, Inc.
DALLAS, Oct. 26, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the third quarter of 2016. Net income for the third quarter of 2016 was $2.1 million, or $0.03 per unit, compared to $53.8 million, or $0.86 per unit, for the same period last year. Net loss for the first nine months of 2016 was $(5.3) million, or $(0.08) per unit, compared to net income of $149.7 million, or $2.39 per unit, for the same period last year.
The Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a cash distribution for the third quarter of 2016 of $0.15 per unit payable on November 22, 2016 to common unitholders of record at the close of business on November 11, 2016, based on cash available for distribution of $9.4 million.
Paul Eisman, President and CEO commented, "Our third quarter results reflect a continuation of the difficult refining environment experienced in the first two quarters of 2016. While crack spreads were relatively flat with the second quarter of 2016, the average benchmark crack spread in the third quarter was down approximately $6.50 per barrel relative to the same quarter last year. As discussed in our previous earnings release, our third quarter results were also negatively impacted by a reformer regeneration in August. We estimate that the lost opportunity cost and maintenance expense associated with the reformer regeneration negatively impacted Alon Partners' adjusted EBITDA by approximately $8 million which reduced cash available for distribution by $0.13 per unit for the third quarter. Additionally, high RINs costs continue to weigh on our profitability.
"The Big Spring refinery achieved total throughput of 70,000 barrels per day and generated refinery operating margin of $9.22 per barrel. Our direct operating expense of $3.90 per barrel was negatively impacted by the reformer regeneration, which lowered throughput volumes and increased maintenance expense. We expect total throughput to average approximately 77,000 barrels per day for the fourth quarter of 2016. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the fourth quarter of 2016."
THIRD QUARTER 2016
Refinery operating margin was $9.22 per barrel for the third quarter of 2016 compared to $16.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and increased RINs costs, partially offset by a widening of both the WTI Cushing to WTI Midland and WTI Cushing to WTS spreads and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for the third quarter of 2016 was 70,063 barrels per day ("bpd") compared to 75,797 bpd for the same period in 2015. The reduced throughput was the result of a reformer regeneration during the third quarter of 2016.
The average Gulf Coast 3/2/1 crack spread was $13.31 per barrel for the third quarter of 2016 compared to $19.77 per barrel for the third quarter of 2015. The average WTI Cushing to WTI Midland spread for the third quarter of 2016 was $0.31 per barrel compared to $(0.72) per barrel for the third quarter of 2015. The average WTI Cushing to WTS spread for the third quarter of 2016 was $0.92 per barrel compared to $(1.46) per barrel for the third quarter of 2015. The average Brent to WTI Cushing spread for the third quarter of 2016 was $0.74 per barrel compared to $3.78 per barrel for the same period in 2015. The contango environment in the third quarter of 2016 created an average cost of crude benefit of $0.84 per barrel compared to an average cost of crude benefit of $0.57 per barrel for the same period in 2015. The average RINs cost effect on refinery operating margin was $0.58 per barrel in the third quarter of 2016, compared to $0.27 per barrel for the same period in 2015.
YEAR-TO-DATE 2016
Refinery operating margin was $8.52 per barrel for the first nine months of 2016 compared to $15.95 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and a narrowing of the WTI Cushing to WTI Midland spread, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for the first nine months of 2016 was 69,586 bpd compared to 74,562 bpd for the same period in 2015. The reduced throughput during the first nine months of 2016 was the result of a reformer regeneration during the first quarter of 2016, which was repeated during the third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units.
The average Gulf Coast 3/2/1 crack spread was $12.57 per barrel for the first nine months of 2016 compared to $19.08 per barrel for the same period in 2015. The average WTI Cushing to WTI Midland spread for the first nine months of 2016 was $0.12 per barrel compared to $0.60 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first nine months of 2016 was $0.53 per barrel compared to $0.02 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first nine months of 2016 was $0.35 per barrel compared to $4.28 per barrel for the same period in 2015. The contango environment for the first nine months of 2016 created an average cost of crude benefit of $1.39 per barrel compared to an average cost of crude benefit of $1.04 per barrel for the same period in 2015.
CONFERENCE CALL
Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time), to discuss the third quarter 2016 financial results. To access the call, please dial 877-404-9648, or 412-902-0030 for international callers, and ask for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. A telephonic replay of the conference call will be available through November 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646174#. A webcast archive will also be available at www.alonpartners.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.
This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Any statements in this 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.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Partners GP, LLC |
Investors: Jack Lascar 713-529-6600
Media: Blake Lewis |
- Tables to follow -
ALON USA PARTNERS, LP 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, 2015, IS UNAUDITED) |
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per unit data, per barrel data and pricing statistics) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
462,257 |
$ |
551,813 |
$ |
1,298,723 |
$ |
1,719,319 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
404,207 |
439,678 |
1,134,275 |
1,397,395 |
|||||||||||
Direct operating expenses |
25,125 |
24,136 |
73,424 |
71,837 |
|||||||||||
Selling, general and administrative expenses |
8,153 |
8,536 |
24,264 |
24,654 |
|||||||||||
Depreciation and amortization |
14,581 |
13,697 |
43,454 |
41,281 |
|||||||||||
Total operating costs and expenses |
452,066 |
486,047 |
1,275,417 |
1,535,167 |
|||||||||||
Operating income |
10,191 |
65,766 |
23,306 |
184,152 |
|||||||||||
Interest expense |
(8,144) |
(11,505) |
(28,651) |
(34,045) |
|||||||||||
Other income, net |
353 |
40 |
550 |
26 |
|||||||||||
Income (loss) before state income tax expense |
2,400 |
54,301 |
(4,795) |
150,133 |
|||||||||||
State income tax expense |
317 |
525 |
493 |
480 |
|||||||||||
Net income (loss) |
$ |
2,083 |
$ |
53,776 |
$ |
(5,288) |
$ |
149,653 |
|||||||
Earnings (loss) per unit |
$ |
0.03 |
$ |
0.86 |
$ |
(0.08) |
$ |
2.39 |
|||||||
Weighted average common units outstanding (in thousands) |
62,520 |
62,510 |
62,515 |
62,508 |
|||||||||||
Cash distribution per unit |
$ |
0.14 |
$ |
1.04 |
$ |
0.22 |
$ |
2.45 |
|||||||
CASH FLOW DATA: |
|||||||||||||||
Net cash provided by (used in): |
|||||||||||||||
Operating activities |
$ |
11,870 |
$ |
84,834 |
$ |
58,457 |
$ |
219,232 |
|||||||
Investing activities |
(5,954) |
(5,532) |
(26,878) |
(15,322) |
|||||||||||
Financing activities |
36,027 |
(93,908) |
39,231 |
(174,957) |
|||||||||||
OTHER DATA: |
|||||||||||||||
Adjusted EBITDA (2) |
$ |
25,125 |
$ |
79,503 |
$ |
67,310 |
$ |
225,459 |
|||||||
Capital expenditures |
4,499 |
4,322 |
17,199 |
12,108 |
|||||||||||
Capital expenditures for turnarounds and catalysts |
1,455 |
1,210 |
9,679 |
3,214 |
|||||||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Per barrel of throughput: |
|||||||||||||||
Refinery operating margin (3) |
$ |
9.22 |
$ |
16.71 |
$ |
8.52 |
$ |
15.95 |
|||||||
Refinery direct operating expense (4) |
3.90 |
3.46 |
3.85 |
3.53 |
|||||||||||
PRICING STATISTICS: |
|||||||||||||||
Crack spreads (per barrel): |
|||||||||||||||
Gulf Coast 3/2/1 (5) |
$ |
13.31 |
$ |
19.77 |
$ |
12.57 |
$ |
19.08 |
|||||||
WTI Cushing crude oil (per barrel) |
$ |
44.88 |
$ |
46.41 |
$ |
41.23 |
$ |
50.91 |
|||||||
Crude oil differentials (per barrel): |
|||||||||||||||
WTI Cushing less WTI Midland (6) |
$ |
0.31 |
$ |
(0.72) |
$ |
0.12 |
$ |
0.60 |
|||||||
WTI Cushing less WTS (6) |
0.92 |
(1.46) |
0.53 |
0.02 |
|||||||||||
Brent less WTI Cushing (6) |
0.74 |
3.78 |
0.35 |
4.28 |
|||||||||||
Product price (dollars per gallon): |
|||||||||||||||
Gulf Coast unleaded gasoline |
$ |
1.39 |
$ |
1.61 |
$ |
1.30 |
$ |
1.66 |
|||||||
Gulf Coast ultra-low sulfur diesel |
1.37 |
1.52 |
1.25 |
1.68 |
|||||||||||
Natural gas (per MMBtu) |
2.79 |
2.73 |
2.34 |
2.76 |
September 30, |
December 31, | ||||||||||||||||||||||||||||
BALANCE SHEET DATA (end of period): |
(dollars in thousands) | ||||||||||||||||||||||||||||
Cash and cash equivalents |
$ |
203,763 |
$ |
132,953 |
|||||||||||||||||||||||||
Working capital |
10,460 |
(53,804) |
|||||||||||||||||||||||||||
Total assets |
825,050 |
748,584 |
|||||||||||||||||||||||||||
Total debt |
291,486 |
292,082 |
|||||||||||||||||||||||||||
Total debt less cash and cash equivalents |
87,723 |
159,129 |
|||||||||||||||||||||||||||
Total partners' equity |
111,968 |
130,957 |
|||||||||||||||||||||||||||
THROUGHPUT AND PRODUCTION DATA: |
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||||||||||
September 30, |
September 30, | ||||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||||||||
WTS crude |
34,292 |
48.9 |
30,810 |
40.6 |
32,189 |
46.3 |
35,041 |
47.0 |
|||||||||||||||||||||
WTI crude |
32,503 |
46.4 |
42,503 |
56.1 |
34,428 |
49.4 |
36,834 |
49.4 |
|||||||||||||||||||||
Blendstocks |
3,268 |
4.7 |
2,484 |
3.3 |
2,969 |
4.3 |
2,687 |
3.6 |
|||||||||||||||||||||
Total refinery throughput (7) |
70,063 |
100.0 |
75,797 |
100.0 |
69,586 |
100.0 |
74,562 |
100.0 |
|||||||||||||||||||||
Refinery production: |
|||||||||||||||||||||||||||||
Gasoline |
33,637 |
48.1 |
37,503 |
49.5 |
33,826 |
48.7 |
37,155 |
49.6 |
|||||||||||||||||||||
Diesel/jet |
26,004 |
37.2 |
28,623 |
37.8 |
25,108 |
36.1 |
27,596 |
36.9 |
|||||||||||||||||||||
Asphalt |
2,818 |
4.0 |
2,452 |
3.2 |
2,846 |
4.1 |
2,733 |
3.7 |
|||||||||||||||||||||
Petrochemicals |
3,861 |
5.5 |
4,588 |
6.1 |
3,611 |
5.2 |
4,770 |
6.4 |
|||||||||||||||||||||
Other |
3,661 |
5.2 |
2,595 |
3.4 |
4,084 |
5.9 |
2,510 |
3.4 |
|||||||||||||||||||||
Total refinery production (8) |
69,981 |
100.0 |
75,761 |
100.0 |
69,475 |
100.0 |
74,764 |
100.0 |
|||||||||||||||||||||
Refinery utilization (9) |
99.1 |
% |
100.4 |
% |
95.5 |
% |
98.5 |
% | |||||||||||||||||||||
CASH AVAILABLE FOR DISTRIBUTION DATA: |
For the Three | |||
September 30, 2016 | ||||
(dollars in | ||||
Net sales (1) |
$ |
462,257 |
||
Operating costs and expenses: |
||||
Cost of sales |
404,207 |
|||
Direct operating expenses |
25,125 |
|||
Selling, general and administrative expenses |
8,153 |
|||
Depreciation and amortization |
14,581 |
|||
Total operating costs and expenses |
452,066 |
|||
Operating income |
10,191 |
|||
Interest expense |
(8,144) |
|||
Other income, net |
353 |
|||
Income before state income tax expense |
2,400 |
|||
State income tax expense |
317 |
|||
Net income |
2,083 |
|||
Adjustments to reconcile net loss to Adjusted EBITDA: |
||||
Interest expense |
8,144 |
|||
State income tax expense |
317 |
|||
Depreciation and amortization |
14,581 |
|||
Adjusted EBITDA (2) |
25,125 |
|||
Adjustments to reconcile Adjusted EBITDA to cash available for distribution: |
||||
less: Maintenance/growth capital expenditures |
4,499 |
|||
less: Turnaround and catalyst replacement capital expenditures |
1,455 |
|||
less: Major turnaround reserve for future years |
1,500 |
|||
less: Principal payments |
625 |
|||
less: State income tax payments |
317 |
|||
less: Interest paid in cash |
7,337 |
|||
Calculated cash available for distribution |
$ |
9,392 |
||
Common units outstanding (in 000's) |
62,520 |
|||
Cash available for distribution per unit |
$ |
0.15 |
________________ | ||||||||||||||||||||
(1) |
Includes sales to related parties of $82,717 and $97,014 for the three months ended September 30, 2016 and 2015, respectively, and $222,711 and $281,136 for the nine months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||
(2) |
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. 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 state income tax expense, interest expense 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 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 (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015: | ||||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, | |||||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Net income (loss) |
$ |
2,083 |
$ |
53,776 |
$ |
(5,288) |
$ |
149,653 | ||||||||||||
State income tax expense |
317 |
525 |
493 |
480 | ||||||||||||||||
Interest expense |
8,144 |
11,505 |
28,651 |
34,045 | ||||||||||||||||
Depreciation and amortization |
14,581 |
13,697 |
43,454 |
41,281 | ||||||||||||||||
Adjusted EBITDA |
$ |
25,125 |
$ |
79,503 |
$ |
67,310 |
$ |
225,459 | ||||||||||||
(3) |
Refinery operating margin is a per barrel measurement calculated by dividing the margin between net sales and cost of sales (exclusive of certain inventory adjustments) 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 margin to these crack spreads to assess our operating performance relative to other participants in our industry. | ||||||||||||||||||
Refinery operating margin for the three and nine months ended September 30, 2016 excludes gains (losses) related to inventory adjustments of $(1,419) and $2,046, respectively. Refinery operating margin for the three and nine months ended September 30, 2015 excludes losses related to inventory adjustments of $(4,385) and $(2,763), respectively. | |||||||||||||||||||
(4) |
Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses by total throughput volumes. | ||||||||||||||||||
(5) |
We compare our refinery 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. | ||||||||||||||||||
(6) |
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 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. | ||||||||||||||||||
(7) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. | ||||||||||||||||||
(8) |
Total refinery production represents the barrels per day of various refined products produced from processing crude and other refinery feedstocks through the crude units and other conversion units. | ||||||||||||||||||
(9) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
SOURCE Alon USA Partners, LP
DALLAS, Oct. 17, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (the "Company" or "Alon") (NYSE: ALJ) today announced that it received an offer from Delek US Holdings, Inc. ("Delek") (NYSE: DK) to acquire all of the Company's outstanding shares of common stock not already owned by Delek in an all-stock transaction at a fixed exchange ratio of 0.44 shares of Delek common stock for each outstanding share of the common stock of Alon. The proposal was submitted to a committee (the "Special Committee") of members of the board of directors of Alon. As previously disclosed, the Special Committee has reviewed a number of strategic alternatives, including a potential business combination with Delek. The Special Committee is comprised of directors independent of Delek.
The Special Committee intends to consider Delek's proposal and determine how to respond. The Special Committee does not intend to disclose or comment further on its analysis or any developments until it determines that such disclosure or comment is appropriate or necessary.
The Special Committee has retained J.P. Morgan as its financial advisor and Gibson Dunn & Crutcher LLP as its legal advisor to assist with its assessment of alternatives.
Any transaction will be subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement and the transactions contemplated thereunder by the board of directors of Delek and the Special Committee, as well as Alon's stockholders other than Delek. There can be no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated.
This communication does not constitute an offer to sell any securities. Any such offer will be made only by means of a prospectus, and only if and when a definitive agreement has been entered into by Delek and Alon, pursuant to a registration statement filed with the Securities and Exchange Commission (the "SEC").
If Alon and Delek execute a definitive agreement, one or more registration statements, proxy statements, tender offer statements or other filings may be filed with the SEC. If and when applicable, investors and security holders are urged to carefully read the documents filed with the SEC regarding the proposed transaction when they become available, because they will contain important information about Delek, Alon and the proposed transaction. If and when applicable, investors and security holders may obtain a free copy of the proxy statement / prospectus and other documents containing information about Delek and Alon, without charge, at the SEC's website at www.sec.gov.
Delek, Alon and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Alon's stockholders in connection with the proposed transaction. Information about the directors and executive officers of Delek is set forth in its proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on April 9, 2016. Information about the directors and executive officers of Alon is set forth in Alon's proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on April 1, 2016. These documents can be obtained without charge at the SEC's website indicated above. Additional information regarding the interests of these participants may be obtained by reading the proxy statement / prospectus regarding the proposed transaction when it becomes available.
About Alon USA Energy, Inc.
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 81.6% 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 and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Forward Looking Statements
This release contains certain "forward-looking statements" which reflect the Company's views and assumptions on the date of this Current Report on Form 8-K regarding future events, results or outcomes. These forward-looking statements include statements about, among other things, the transactions described in Delek's proposal. These statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the Company's control, including the risk that the proposed transaction is not consummated at all or on the initial terms proposed or any other terms, that may cause actual results to differ materially from any future events, results, performance or achievements expressed or implied by the forward-looking statements. All forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update or revise publicly any such forward-looking statements. The Company cautions you not to place undue reliance on these forward-looking statements. Please refer to the Company's filings with the SEC for more detailed information regarding these risks, uncertainties and assumptions.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, Sept. 27, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its third quarter 2016 financial results on Wednesday, October 26, 2016 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time).
What: |
Alon USA Partners, LP Third Quarter 2016 Earnings Conference Call |
When: |
Friday, October 28, 2016 - 9:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. |
A telephonic replay of the conference call will be available through November 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646174#. A webcast archive will also be available at www.alonpartners.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 Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, Sept. 27, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its third quarter 2016 financial results on Thursday, October 27, 2016 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time).
What: |
Alon USA Energy, Inc. Third Quarter 2016 Earnings Conference Call |
When: |
Friday, October 28, 2016 – 10:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking 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 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646162#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, July 28, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the second quarter of 2016. Net loss available to stockholders for the second quarter of 2016 was $(20.4) million, or $(0.29) per share, compared to net income available to stockholders of $36.4 million, or $0.52 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(14.9) million, or $(0.21) per share, for the second quarter of 2016, compared to net income available to stockholders of $46.4 million, or $0.67 per share, for the same period last year.
Net loss available to stockholders for the first half of 2016 was $(55.9) million, or $(0.80) per share, compared to net income available to stockholders of $63.3 million, or $0.91 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(44.2) million, or $(0.63) per share, for the first half of 2016, compared to net income available to stockholders of $68.0 million, or $0.98 per share, for the same period last year.
Paul Eisman, President and CEO, commented, "The refining environment in the second quarter of 2016 remained challenging as crack spreads were pressured by high product inventories. The average Gulf Coast 3-2-1 benchmark crack spread for the second quarter of 2016 was approximately $6.50 per barrel lower than the average for the same period last year. We continue to optimize our operations and control our costs in this difficult environment.
"As previously discussed, the Big Spring refinery's second quarter results were negatively impacted by a power outage in late May. We estimate the lost opportunity cost and maintenance cost associated with the power outage negatively impacted Alon's operating income by approximately $10 million. Big Spring's refinery operating margin of $8.53 per barrel was negatively impacted by approximately $1.30 per barrel due to the unplanned downtime during the quarter. Despite the interruption to normal operations, the refinery achieved low operating costs of $3.59 per barrel. We expect to perform maintenance on the Big Spring refinery's reformer in August. As a result, we expect total throughput at the Big Spring refinery to average approximately 69,000 barrels per day for the third quarter and 70,000 barrels per day for the full year of 2016.
"The Krotz Springs refinery's results were negatively impacted by weakness in crack spreads, a larger premium in LLS crude relative to Brent crude and maintenance performed on the fluid catalytic cracking unit in the first half of April, which was previously discussed. We estimate the downtime associated with this maintenance work negatively impacted Krotz Springs' refinery operating margin by approximately $0.86 per barrel and Alon's operating income by approximately $5 million. Based on the projected margin environment, we expect total throughput at the Krotz Springs refinery to average approximately 63,000 barrels per day for the third quarter and 66,000 barrels per day for the full year of 2016.
"Our asphalt business performed very well in the second quarter with the onset of paving season. Relative to the second quarter of 2015, our asphalt sales volumes were up 43 percent, and our asphalt margin was up by 6 percent to $107 per ton. This business is benefiting from a stronger demand environment, as well as operational improvements implemented over recent quarters.
"Our retail results were negatively impacted by headwinds in the Permian Basin. However, we believe we are positioned well to benefit as the markets in which we operate improve and are expecting greater profitability in the second half of the year.
"The results of the AltAir renewable fuels project in California were negatively impacted by an increase in the price of feedstock costs (tallow) relative to the first quarter of 2016. A test run of soybean oil was successfully completed in late June, validating the feedstock flexibility of the unit."
SECOND QUARTER 2016
Special items increased net loss by $5.5 million for the second quarter of 2016 primarily as a result of employee retention expense of $2.0 million, losses of $2.0 million associated with an asphalt inventory adjustment and unrealized losses of $3.8 million associated with commodity swaps, before income tax and non-controlling interest impacts of $2.4 million. Special items reduced net income by $9.9 million for the second quarter of 2015 primarily as a result of employee retention expense of $1.3 million, losses of $3.3 million related to an asphalt inventory adjustment and unrealized losses of $10.5 million associated with commodity swaps, before income tax and non-controlling interest impacts of $5.2 million.
The combined total refinery average throughput for the second quarter of 2016 was 133,413 barrels per day ("bpd"), consisting of 71,153 bpd at the Big Spring refinery and 62,260 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 152,092 bpd for the second quarter of 2015, consisting of 75,491 bpd at the Big Spring refinery and 76,601 bpd at the Krotz Springs refinery. The reduced throughput at our Big Spring refinery was the result of unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. During the second quarter of 2016, we performed maintenance on the fluid catalytic cracking unit at the Krotz Springs refinery, which reduced total throughput for the quarter.
Refinery operating margin at the Big Spring refinery was $8.53 per barrel for the second quarter of 2016 compared to $17.22 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread, a reduced cost of crude benefit from the contango market in 2016 and the unplanned refinery downtime discussed above, partially offset by a widening of the WTI Cushing to WTS spread.
Refinery operating margin at the Krotz Springs refinery was $3.96 per barrel for the second quarter of 2016 compared to $7.95 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads, the premium in LLS compared to Brent, the refinery downtime discussed above and a reduced cost of crude benefit from the contango market in 2016.
The average Gulf Coast 3/2/1 crack spread was $13.16 per barrel for the second quarter of 2016 compared to $19.71 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $7.92 per barrel for the second quarter of 2016 compared to $10.21 per barrel for the same period in 2015.
The average WTI Cushing to WTI Midland spread for the second quarter of 2016 was $0.17 per barrel compared to $0.60 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the second quarter of 2016 was $0.75 per barrel compared to $(0.21) per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the second quarter of 2016 was $(0.18) per barrel compared to $3.66 per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the second quarter of 2016 was $2.04 per barrel compared to $6.28 per barrel for the same period in 2015. The average Brent to LLS spread for the second quarter of 2016 was $(1.64) per barrel compared to $0.32 per barrel for the same period in 2015.
The contango environment in the second quarter of 2016 created an average cost of crude benefit of $1.49 per barrel compared to an average cost of crude benefit of $1.90 per barrel for the same period in 2015.
Asphalt margins for the second quarter of 2016 were $106.90 per ton compared to $100.92 per ton for the same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins in the second quarter of 2016 were $105.55 per ton compared to $99.51 per ton in the second quarter of 2015.
Retail fuel margins increased to 20.8 cents per gallon in the second quarter of 2016 from 20.3 cents per gallon in the second quarter of 2015. Retail fuel sales volume increased to 50.9 million gallons in the second quarter of 2016 from 49.5 million gallons in the second quarter of 2015. Merchandise margins decreased to 31.0% in the second quarter of 2016 from 31.8% in the second quarter of 2015. Merchandise sales decreased to $83.7 million in the second quarter of 2016 from $84.9 million in the second quarter of 2015.
YEAR-TO-DATE 2016
Special items increased net loss by $11.8 million for the first half of 2016 primarily as a result of employee retention expenses of $6.7 million, losses of $2.0 million related to an asphalt inventory adjustment, unrealized losses of $7.1 million associated with commodity swaps and $2.1 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $6.2 million. Special items reduced net income by $4.6 million for the first half of 2015 primarily as a result of employee retention expense of $1.3 million and losses of $14.0 million related to an asphalt inventory adjustment, partially offset by unrealized gains of $7.9 million associated with commodity swaps and $0.6 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.1 million.
The combined total refinery average throughput for the first half of 2016 was 136,206 bpd, consisting of 69,345 bpd at the Big Spring refinery and 66,861 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 148,679 bpd for the first half of 2015, consisting of 73,934 bpd at the Big Spring refinery and 74,745 bpd at the Krotz Springs refinery. The reduced throughput at our Big Spring refinery was the result of planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit in the beginning of the first quarter of 2016, as well as unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. The reduced throughput at the Krotz Springs refinery during the six months ended June 30, 2016 was the result of our election to reduce the crude rate to improve the refinery yield structure, as well as maintenance that was performed on the fluid catalytic cracking unit.
Refinery operating margin at the Big Spring refinery was $8.16 per barrel for the first half of 2016 compared to $15.56 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of both the WTI Cushing to WTI Midland and the WTI Cushing to WTS spreads and the refinery downtime discussed above, partially offset by the cost of crude benefit from the market moving further into contango in 2016.
Refinery operating margin at the Krotz Springs refinery was $2.69 per barrel for the first half of 2016 compared to $8.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads, the premium in LLS compared to Brent and the refinery downtime discussed above, partially offset by the cost of crude benefit from the market moving further into contango in 2016.
The average Gulf Coast 3/2/1 crack spread for the first half of 2016 was $12.20 per barrel compared to $18.73 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the first half of 2016 was $7.33 per barrel compared to $11.79 per barrel for the same period in 2015.
The average WTI Cushing to WTI Midland spread for the first half of 2016 was $0.02 per barrel compared to $1.27 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first half of 2016 was $0.32 per barrel compared to $0.76 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first half of 2016 was $0.15 per barrel compared to $4.54 per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the first half of 2016 was $1.82 per barrel compared to $4.48 per barrel for the same period in 2015. The average Brent to LLS spread for the first half of 2016 was $(1.26) per barrel compared to $0.57 per barrel for the same period in 2015.
The contango environment in the first half of 2016 created an average cost of crude benefit of $1.66 per barrel compared to an average cost of crude benefit of $1.28 per barrel for the same period in 2015.
Asphalt margins for the first half of 2016 were $97.96 per ton compared to $94.41 per ton for same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins in the first half of 2016 were $99.87 per ton compared to $105.77 per ton in the first half of 2015.
Retail fuel margins decreased to 20.4 cents per gallon in the first half of 2016 from 21.9 cents per gallon in the first half of 2015. Retail fuel sales volume increased to 100.9 million gallons in the first half of 2016 from 95.6 million gallons in the first half of 2015. Merchandise margins decreased to 31.3% in the first half of 2016 from 32.5% in the first half of 2015. Merchandise sales increased to $161.5 million in the first half of 2016 from $161.0 million in the first half of 2015.
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 September 6, 2016 to stockholders of record at the close of business on August 19, 2016.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, July 29, 2016, at 10:30 a.m. Eastern Time (9:30 a.m. Central Time), to discuss the second quarter 2016 financial 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 August 12, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13640012#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels 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.
Contacts: |
Stacey Morris, Investor Relations Manager Alon USA Energy, Inc. 972-367-3808 |
Investors: Jack Lascar Dennard § Lascar Associates, LLC 713-529-6600 | |
Media: Blake Lewis Lewis Public Relations 214-635-3020 |
- 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, 2015, IS UNAUDITED) |
For the Three Months Ended |
For the Six Months Ended | |||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
1,008,388 |
$ |
1,301,341 |
$ |
1,858,361 |
$ |
2,404,581 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
871,394 |
1,069,931 |
1,606,538 |
1,964,419 |
|||||||||||
Direct operating expenses |
63,182 |
62,856 |
131,799 |
127,061 |
|||||||||||
Selling, general and administrative expenses (2) |
51,644 |
49,193 |
100,345 |
94,789 |
|||||||||||
Depreciation and amortization (3) |
36,985 |
31,267 |
71,847 |
63,229 |
|||||||||||
Total operating costs and expenses |
1,023,205 |
1,213,247 |
1,910,529 |
2,249,498 |
|||||||||||
Gain (loss) on disposition of assets |
6 |
— |
(2,082) |
572 |
|||||||||||
Operating income (loss) |
(14,811) |
88,094 |
(54,250) |
155,655 |
|||||||||||
Interest expense |
(18,799) |
(18,217) |
(37,106) |
(39,254) |
|||||||||||
Equity earnings of investees |
4,305 |
1,828 |
4,683 |
1,274 |
|||||||||||
Other income, net |
146 |
13 |
218 |
59 |
|||||||||||
Income (loss) before income tax expense (benefit) |
(29,159) |
71,718 |
(86,455) |
117,734 |
|||||||||||
Income tax expense (benefit) |
(8,529) |
23,856 |
(29,765) |
35,817 |
|||||||||||
Net income (loss) |
(20,630) |
47,862 |
(56,690) |
81,917 |
|||||||||||
Net income (loss) attributable to non-controlling interest |
(260) |
11,452 |
(783) |
18,568 |
|||||||||||
Net income (loss) available to stockholders |
$ |
(20,370) |
$ |
36,410 |
$ |
(55,907) |
$ |
63,349 |
|||||||
Earnings (loss) per share, basic |
$ |
(0.29) |
$ |
0.52 |
$ |
(0.80) |
$ |
0.91 |
|||||||
Weighted average shares outstanding, basic (in thousands) |
70,493 |
69,684 |
70,318 |
69,584 |
|||||||||||
Earnings (loss) per share, diluted |
$ |
(0.29) |
$ |
0.50 |
$ |
(0.80) |
$ |
0.87 |
|||||||
Weighted average shares outstanding, diluted (in thousands) |
70,493 |
72,501 |
70,318 |
72,395 |
|||||||||||
Cash dividends per share |
$ |
0.15 |
$ |
0.15 |
$ |
0.30 |
$ |
0.25 |
|||||||
CASH FLOW DATA: |
|||||||||||||||
Net cash provided by (used in): |
|||||||||||||||
Operating activities |
$ |
17,342 |
$ |
135,112 |
$ |
(12,009) |
$ |
115,891 |
|||||||
Investing activities |
(21,437) |
(22,332) |
(68,454) |
(33,945) |
|||||||||||
Financing activities |
16,565 |
(39,415) |
52,189 |
(33,077) |
|||||||||||
OTHER DATA: |
|||||||||||||||
Adjusted net income (loss) available to stockholders (4) |
$ |
(14,916) |
$ |
46,354 |
$ |
(44,152) |
$ |
67,993 |
|||||||
Adjusted earnings (loss) per share (4) |
$ |
(0.21) |
$ |
0.67 |
$ |
(0.63) |
$ |
0.98 |
|||||||
Adjusted EBITDA (5) |
$ |
30,430 |
$ |
131,680 |
$ |
31,724 |
$ |
211,720 |
|||||||
Capital expenditures (6) |
13,784 |
20,302 |
37,230 |
31,051 |
|||||||||||
Capital expenditures for turnarounds and catalysts |
7,662 |
2,030 |
24,272 |
4,363 |
June 30, |
December 31, | ||||||||||||||
BALANCE SHEET DATA (end of period): |
(dollars in thousands) | ||||||||||||||
Cash and cash equivalents |
$ |
205,853 |
$ |
234,127 |
|||||||||||
Working capital |
39,005 |
78,694 |
|||||||||||||
Total assets |
2,245,464 |
2,176,138 |
|||||||||||||
Total debt |
552,264 |
555,962 |
|||||||||||||
Total debt less cash and cash equivalents |
346,411 |
321,835 |
|||||||||||||
Total equity |
626,907 |
664,160 |
|||||||||||||
REFINING AND MARKETING SEGMENT |
|||||||||||||||
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per barrel data and pricing statistics) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (7) |
$ |
829,913 |
$ |
1,126,040 |
$ |
1,526,526 |
$ |
2,085,532 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
746,324 |
940,861 |
1,372,360 |
1,724,252 |
|||||||||||
Direct operating expenses |
56,913 |
55,966 |
119,706 |
112,292 |
|||||||||||
Selling, general and administrative expenses |
18,930 |
18,940 |
37,205 |
36,279 |
|||||||||||
Depreciation and amortization |
31,514 |
26,692 |
61,298 |
54,003 |
|||||||||||
Total operating costs and expenses |
853,681 |
1,042,459 |
1,590,569 |
1,926,826 |
|||||||||||
Gain (loss) on disposition of assets |
9 |
— |
(2,079) |
522 |
|||||||||||
Operating income (loss) |
$ |
(23,759) |
$ |
83,581 |
$ |
(66,122) |
$ |
159,228 |
|||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Per barrel of throughput: |
|||||||||||||||
Refinery operating margin – Big Spring (8) |
$ |
8.53 |
$ |
17.22 |
$ |
8.16 |
$ |
15.56 |
|||||||
Refinery operating margin – Krotz Springs (8) |
3.96 |
7.95 |
2.69 |
8.71 |
|||||||||||
Refinery direct operating expense – Big Spring (9) |
3.59 |
3.54 |
3.83 |
3.56 |
|||||||||||
Refinery direct operating expense – Krotz Springs (9) |
4.10 |
3.49 |
3.96 |
3.64 |
|||||||||||
Capital expenditures |
$ |
11,560 |
$ |
12,470 |
$ |
30,119 |
$ |
16,876 |
|||||||
Capital expenditures for turnarounds and catalysts |
7,662 |
2,030 |
24,272 |
4,363 |
|||||||||||
PRICING STATISTICS: |
|||||||||||||||
Crack spreads (3/2/1) (per barrel): |
|||||||||||||||
Gulf Coast (10) |
$ |
13.16 |
$ |
19.71 |
$ |
12.20 |
$ |
18.73 |
|||||||
Crack spreads (2/1/1) (per barrel): |
|||||||||||||||
Gulf Coast high sulfur diesel (10) |
$ |
7.92 |
$ |
10.21 |
$ |
7.33 |
$ |
11.79 |
|||||||
WTI Cushing crude oil (per barrel) |
$ |
45.48 |
$ |
57.86 |
$ |
39.39 |
$ |
53.20 |
|||||||
Crude oil differentials (per barrel): |
|||||||||||||||
WTI Cushing less WTI Midland (11) |
$ |
0.17 |
$ |
0.60 |
$ |
0.02 |
$ |
1.27 |
|||||||
WTI Cushing less WTS (11) |
0.75 |
(0.21) |
0.32 |
0.76 |
|||||||||||
LLS less WTI Cushing (11) |
2.04 |
6.28 |
1.82 |
4.48 |
|||||||||||
Brent less LLS (11) |
(1.64) |
0.32 |
(1.26) |
0.57 |
|||||||||||
Brent less WTI Cushing (11) |
(0.18) |
3.66 |
0.15 |
4.54 |
|||||||||||
Product prices (dollars per gallon): |
|||||||||||||||
Gulf Coast unleaded gasoline |
$ |
1.42 |
$ |
1.86 |
$ |
1.25 |
$ |
1.69 |
|||||||
Gulf Coast ultra-low sulfur diesel |
1.34 |
1.83 |
1.19 |
1.76 |
|||||||||||
Gulf Coast high sulfur diesel |
1.22 |
1.68 |
1.06 |
1.62 |
|||||||||||
Natural gas (per MMBtu) |
2.25 |
2.74 |
2.12 |
2.77 |
THROUGHPUT AND PRODUCTION DATA: BIG SPRING REFINERY |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, | |||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTS crude |
25,698 |
36.1 |
29,605 |
39.2 |
31,126 |
44.9 |
37,193 |
50.3 |
|||||||||||||||
WTI crude |
43,040 |
60.5 |
43,659 |
57.8 |
35,400 |
51.0 |
33,952 |
45.9 |
|||||||||||||||
Blendstocks |
2,415 |
3.4 |
2,227 |
3.0 |
2,819 |
4.1 |
2,789 |
3.8 |
|||||||||||||||
Total refinery throughput (12) |
71,153 |
100.0 |
75,491 |
100.0 |
69,345 |
100.0 |
73,934 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
33,744 |
47.6 |
37,755 |
49.8 |
33,922 |
49.0 |
36,978 |
49.8 |
|||||||||||||||
Diesel/jet |
26,627 |
37.6 |
28,052 |
37.0 |
24,655 |
35.6 |
27,074 |
36.5 |
|||||||||||||||
Asphalt |
2,572 |
3.6 |
2,479 |
3.3 |
2,860 |
4.2 |
2,876 |
3.9 |
|||||||||||||||
Petrochemicals |
3,354 |
4.7 |
4,915 |
6.5 |
3,485 |
5.0 |
4,863 |
6.5 |
|||||||||||||||
Other |
4,569 |
6.5 |
2,537 |
3.4 |
4,298 |
6.2 |
2,466 |
3.3 |
|||||||||||||||
Total refinery production (13) |
70,866 |
100.0 |
75,738 |
100.0 |
69,220 |
100.0 |
74,257 |
100.0 |
|||||||||||||||
Refinery utilization (14) |
94.2 |
% |
100.4 |
% |
93.7 |
% |
97.5 |
% |
THROUGHPUT AND PRODUCTION DATA: KROTZ SPRINGS REFINERY |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, | |||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTI crude |
15,921 |
25.5 |
29,429 |
38.4 |
14,859 |
22.2 |
29,888 |
40.0 |
|||||||||||||||
Gulf Coast sweet crude |
42,624 |
68.5 |
45,069 |
58.8 |
45,987 |
68.8 |
41,076 |
55.0 |
|||||||||||||||
Blendstocks |
3,715 |
6.0 |
2,103 |
2.8 |
6,015 |
9.0 |
3,781 |
5.0 |
|||||||||||||||
Total refinery throughput (12) |
62,260 |
100.0 |
76,601 |
100.0 |
66,861 |
100.0 |
74,745 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
31,112 |
49.0 |
35,511 |
45.4 |
33,693 |
49.4 |
35,021 |
45.8 |
|||||||||||||||
Diesel/jet |
24,201 |
38.1 |
32,496 |
41.5 |
25,595 |
37.5 |
31,599 |
41.4 |
|||||||||||||||
Heavy Oils |
959 |
1.5 |
1,378 |
1.8 |
1,246 |
1.8 |
1,356 |
1.8 |
|||||||||||||||
Other |
7,226 |
11.4 |
8,838 |
11.3 |
7,692 |
11.3 |
8,419 |
11.0 |
|||||||||||||||
Total refinery production (13) |
63,498 |
100.0 |
78,223 |
100.0 |
68,226 |
100.0 |
76,395 |
100.0 |
|||||||||||||||
Refinery utilization (14) |
79.1 |
% |
100.7 |
% |
82.2 |
% |
95.9 |
% |
ASPHALT SEGMENT |
|||||||||||||||
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per ton data) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (15) |
$ |
68,097 |
$ |
69,900 |
$ |
121,596 |
$ |
120,552 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales (15) (16) |
51,326 |
60,771 |
95,191 |
115,054 |
|||||||||||
Direct operating expenses |
6,269 |
6,890 |
12,093 |
14,769 |
|||||||||||
Selling, general and administrative expenses |
4,047 |
2,755 |
7,245 |
4,531 |
|||||||||||
Depreciation and amortization |
1,261 |
1,207 |
2,521 |
2,352 |
|||||||||||
Total operating costs and expenses |
62,903 |
71,623 |
117,050 |
136,706 |
|||||||||||
Operating loss (19) |
$ |
5,194 |
$ |
(1,723) |
$ |
4,546 |
$ |
(16,154) |
|||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Blended asphalt sales volume (tons in thousands) (17) |
158 |
108 |
243 |
173 |
|||||||||||
Non-blended asphalt sales volume (tons in thousands) (18) |
18 |
15 |
47 |
33 |
|||||||||||
Blended asphalt sales price per ton (17) |
$ |
389.95 |
$ |
505.54 |
$ |
398.28 |
$ |
498.83 |
|||||||
Non-blended asphalt sales price per ton (18) |
135.06 |
229.20 |
141.30 |
317.36 |
|||||||||||
Asphalt margin per ton (19) |
106.90 |
100.92 |
97.96 |
94.41 |
|||||||||||
Capital expenditures |
$ |
335 |
$ |
238 |
$ |
1,075 |
$ |
1,644 |
|||||||
RETAIL SEGMENT |
|||||||||||||||
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(dollars in thousands, except per gallon data) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
187,262 |
$ |
206,634 |
$ |
350,233 |
$ |
382,619 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales (16) |
150,628 |
169,532 |
278,981 |
309,235 |
|||||||||||
Selling, general and administrative expenses |
28,484 |
27,322 |
55,521 |
53,627 |
|||||||||||
Depreciation and amortization |
3,350 |
2,943 |
6,749 |
5,980 |
|||||||||||
Total operating costs and expenses |
182,462 |
199,797 |
341,251 |
368,842 |
|||||||||||
Gain on disposition of assets |
(3) |
— |
(3) |
50 |
|||||||||||
Operating income |
$ |
4,797 |
$ |
6,837 |
$ |
8,979 |
$ |
13,827 |
|||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Number of stores (end of period) (20) |
306 |
294 |
306 |
294 |
|||||||||||
Retail fuel sales (thousands of gallons) |
50,877 |
49,511 |
100,882 |
95,606 |
|||||||||||
Retail fuel sales (thousands of gallons per site per month) (20) |
57 |
58 |
57 |
56 |
|||||||||||
Retail fuel margin (cents per gallon) (21) |
20.8 |
20.3 |
20.4 |
21.9 |
|||||||||||
Retail fuel sales price (dollars per gallon) (22) |
$ |
2.03 |
$ |
2.46 |
$ |
1.87 |
$ |
2.32 |
|||||||
Merchandise sales |
$ |
83,673 |
$ |
84,878 |
$ |
161,498 |
$ |
160,980 |
|||||||
Merchandise sales (per site per month) (20) |
$ |
91 |
$ |
96 |
$ |
88 |
$ |
91 |
|||||||
Merchandise margin (23) |
31.0 |
% |
31.8 |
% |
31.3 |
% |
32.5 |
% | |||||||
Capital expenditures |
$ |
1,200 |
$ |
6,202 |
$ |
3,911 |
$ |
9,518 |
(1) |
Includes excise taxes on sales by the retail segment of $19,864 and $19,369 for the three months ended June 30, 2016 and 2015, respectively, and $39,389 and $37,425 for the six months ended June 30, 2016 and 2015, respectively. |
(2) |
Includes corporate headquarters selling, general and administrative expenses of $183 and $176 for the three months ended June 30, 2016 and 2015, respectively, and $374 and $352 for the six months ended June 30, 2016 and 2015, respectively, which are not allocated to our three operating segments. |
(3) |
Includes corporate depreciation and amortization of $860 and $425 for the three months ended June 30, 2016 and 2015, respectively, and $1,279 and $894 for the six months ended June 30, 2016 and 2015, respectively, which are not allocated to our three operating segments. |
(4) |
The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding after-tax employee retention expense, after-tax 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 (loss) available to stockholders is not a recognized measurement under GAAP; however, the amounts included in adjusted net income (loss) available to stockholders are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) 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 Six Months Ended | |||||||||||||||
June 30, |
June 30, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net income (loss) available to stockholders |
$ |
(20,370) |
$ |
36,410 |
$ |
(55,907) |
$ |
63,349 |
||||||||
Exclude adjustments: |
||||||||||||||||
Employee retention expense |
2,000 |
1,334 |
6,700 |
1,334 |
||||||||||||
Loss on asphalt inventory adjustment |
2,003 |
3,284 |
2,003 |
13,950 |
||||||||||||
Unrealized (gains) losses on commodity swaps |
3,811 |
10,478 |
7,144 |
(7,925) |
||||||||||||
(Gain) loss on disposition of assets |
(6) |
— |
2,082 |
(572) |
||||||||||||
Total adjustments |
7,808 |
15,096 |
17,929 |
6,787 |
||||||||||||
Income tax impact related to adjustments |
(2,302) |
(4,983) |
(6,070) |
(2,065) |
||||||||||||
Non-controlling interest impact related to adjustments |
(52) |
(169) |
(104) |
(78) |
||||||||||||
Adjusted net income (loss) available to stockholders |
$ |
(14,916) |
$ |
46,354 |
$ |
(44,152) |
$ |
67,993 |
||||||||
Adjusted earnings (loss) per share * |
$ |
(0.21) |
$ |
0.67 |
$ |
(0.63) |
$ |
0.98 |
||||||||
* |
Adjusted earnings (loss) per share includes the effects of dividends on preferred stock on adjusted net income (loss) available to stockholders necessary to calculate earnings per share. |
(5) |
Adjusted EBITDA represents earnings before net income (loss) attributable to non-controlling interest, income tax expense (benefit), 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 (loss) attributable to non-controlling interest, income tax expense (benefit), 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 (loss) available to stockholders to Adjusted EBITDA for the three and six months ended June 30, 2016 and 2015: |
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||||
June 30, |
June 30, | ||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income (loss) available to stockholders |
$ |
(20,370) |
$ |
36,410 |
$ |
(55,907) |
$ |
63,349 |
|||||||||
Net income (loss) attributable to non-controlling interest |
(260) |
11,452 |
(783) |
18,568 |
|||||||||||||
Income tax expense (benefit) |
(8,529) |
23,856 |
(29,765) |
35,817 |
|||||||||||||
Interest expense |
18,799 |
18,217 |
37,106 |
39,254 |
|||||||||||||
Depreciation and amortization |
36,985 |
31,267 |
71,847 |
63,229 |
|||||||||||||
(Gain) loss on disposition of assets |
(6) |
— |
2,082 |
(572) |
|||||||||||||
Unrealized (gains) losses on commodity swaps |
3,811 |
10,478 |
7,144 |
(7,925) |
|||||||||||||
Adjusted EBITDA |
$ |
30,430 |
$ |
131,680 |
$ |
31,724 |
$ |
211,720 |
|||||||||
Adjusted EBITDA does not exclude losses of $2,003 and $3,284 for the three months ended June 30, 2016 and 2015, respectively, and $2,003 and $13,950 for the six months ended June 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. |
(6) |
Includes corporate capital expenditures of $689 and $1,392 for the three months ended June 30, 2016 and 2015, respectively, and $2,125 and $3,013 for the six months ended June 30, 2016 and 2015, 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 certain 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 six months ended June 30, 2016 excludes realized and unrealized gains on commodity swaps of $96 and $461, respectively. | |
The refinery operating margin for the three and six months ended June 30, 2015 excludes realized and unrealized gains on commodity swaps of $7,512 and $37,355, respectively. For the six months ended June 30, 2015, $8,926 related substantially to inventory adjustments was not included in cost of sales for either the Big Spring refinery or the Krotz Springs refinery. | |
(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 $4,054 and $11,864 for the three months ended June 30, 2016 and 2015, respectively, and $18,172 and $23,782 for the six months ended June 30, 2016 and 2015, 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 excludes losses of $2,003 and $3,284 for the three months ended June 30, 2016 and 2015, respectively, and $2,003 and $13,950 for the six months ended June 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. This loss is included in the operating income (loss) above. | |
(20) |
At June 30, 2016, we had 306 retail convenience stores of which 296 sold fuel. At June 30, 2015, we had 294 retail convenience stores of which 283 sold fuel. |
The 14 retail convenience stores acquired in 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. |
SOURCE Alon USA Energy, Inc.
DALLAS, July 11, 2016 /PRNewswire/ -- As noted in the Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") proxy statement, filed with the SEC on April 1, 2016, Alon's Board of Directors has formed a Special Committee (the "Special Committee"). The Special Committee is comprised of directors having no affiliation with Delek US Holdings, Inc. ("Delek"). Since its formation, the Special Committee has reviewed a number of strategic alternatives, a potential business combination with Delek, the analysis of capital investments, shareholder distributions, a sale or merger and a spin-off or separation of a selected business.
The Special Committee has set no timetable for the strategic review process and has not made a decision to pursue any particular transaction, and there can be no assurance that any transaction will be approved or consummated. Alon does not intend to disclose or comment on further developments regarding the review of strategic alternatives until it determines that such disclosure or comment is appropriate or necessary.
The Special Committee has retained J.P. Morgan as its financial advisor and Gibson Dunn as its legal advisor to assist in the assessment of strategic alternatives.
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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, July 6, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its second quarter 2016 financial results on Thursday, July 28, 2016 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, July 29, 2016 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time).
What: |
Alon USA Energy, Inc. Second Quarter 2016 Earnings Conference Call |
When: |
Friday, July 29, 2016 – 10:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking 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 August 12, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13640012#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, July 6, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its second quarter 2016 financial results on Thursday, July 28, 2016 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, July 29, 2016 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time).
What: |
Alon USA Partners, LP Second Quarter 2016 Earnings Conference Call |
When: |
Friday, July 29, 2016 - 9:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. |
A telephonic replay of the conference call will be available through August 12, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13640014#. A webcast archive will also be available at www.alonpartners.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 Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, June 21, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will attend the J.P. Morgan Inaugural Energy Equity Conference to be held on June 27-29, 2016 in New York City.
Paul Eisman, President and Chief Executive Officer, will participate in one-on-one meetings with investors to discuss both Alon USA Energy and Alon USA Partners, LP (NYSE: ALDW) on June 28, 2016.
The related meeting materials will be available beginning the morning of June 28, 2016 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.com/ as well as on the News & Events section of the Alon USA Partners website at www.alonpartners.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 81.6% 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 and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
Investors: Jack Lascar | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, Texas, June 3, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that the Big Spring refinery experienced an unplanned shutdown on May 30, 2016 due to a power outage caused by inclement weather. The power outage affected multiple units, which we are working to safely return to service. We now expect total throughput at the Big Spring refinery to average approximately 70,000 barrels per day for the second quarter of 2016.
Despite the power outage, we still expect to generate sufficient cash to support a distribution for the second quarter.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. ("Alon Energy") (NYSE: ALJ). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard • Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, May 6, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will be participating in three investor conferences during the month of May to discuss both Alon USA Energy and Alon USA Partners, LP (NYSE: ALDW).
On May 11, 2016, Paul Eisman, President and Chief Executive Officer, will be participating in a roundtable discussion to be held at 2:00 p.m. Eastern Time at the Citi 2016 Global Energy & Utilities Conference being held in Boston. He will also be conducting one-on-one meetings at the conference.
On May 12, 2016, Mr. Eisman will be participating in one-on-one meetings with investors at the Morgan Stanley Refining Corporate Access Day being held in New York City.
On May 17, 2016, Shai Even, Senior Vice President and Chief Financial Officer, will be participating in one-on-one-meetings with investors at the Goldman Sachs First Annual Leveraged Finance Conference being held in Rancho Palos Verdes, California.
The related meeting materials will be available beginning the morning of May 11, 2016 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.com/ as well as the News & Events section of the Alon USA Partners website at www.alonpartners.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 81.6% 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 and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
972-367-3808 | |
Investors: Jack Lascar | |
Dennard - Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, March 30, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its first quarter 2016 financial results on Wednesday, May 4, 2016 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Thursday, May 5, 2016 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The company also announced that its annual report is now available to unitholders.
What: |
Alon USA Partners, LP First Quarter 2016 Earnings Conference Call |
When: |
Thursday, May 5, 2016 - 10:00 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. |
A telephonic replay of the conference call will be available through May 19, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13634013#. A webcast archive will also be available at www.alonpartners.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 Partners' annual report is now available to unitholders. Unitholders may access the annual report on the Alon Partners website at www.alonpartners.com under the "Financials" tab. Copies of the annual report are available free of charge to unitholders upon request to Alon USA Partners, LP, Attention: Investor Relations, 12700 Park Central Drive, Suite 1600, Dallas, Texas 75251.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. ("Alon Energy") (NYSE: ALJ). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar/Stephanie Zhadkevich | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, March 30, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its first quarter 2016 financial results on Wednesday, May 4, 2016 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Thursday, May 5, 2016 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time).
What: |
Alon USA Energy, Inc. First Quarter 2016 Earnings Conference Call |
When: |
Thursday, May 5, 2016 - 11:30 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking 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 May 19, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13634020#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
Contacts: |
Stacey Morris |
Investor Relations Manager | |
Alon USA Energy, Inc. | |
Investors: Jack Lascar/Stephanie Zhadkevich | |
Dennard • Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Energy, Inc.
DALLAS, Feb. 24, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the fourth quarter and year ended December 31, 2015. Net loss available to stockholders for the fourth quarter of 2015 was $(52.5) million, or $(0.75) per share, compared to net income available to stockholders of $6.7 million, or $0.10 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(14.6) million, or $(0.21) per share, for the fourth quarter of 2015, compared to net loss available to stockholders of $(0.2) million, or $0.00 per share, for the same period last year.
Net income available to stockholders for the full year 2015 was $52.8 million, or $0.76 per share, compared to net income available to stockholders of $38.5 million, or $0.56 per share, for 2014. Excluding special items, Alon recorded net income available to stockholders of $95.5 million, or $1.37 per share, for the full year 2015, compared to net income available to stockholders of $38.1 million, or $0.55 per share, for 2014.
Paul Eisman, President and CEO, commented, "We are pleased with our overall operational and financial performance in 2015. We achieved the second highest annual adjusted EBITDA in our company's history, increased our regular dividend by 50% from $0.40 to $0.60 per annum and reduced our interest expense in 2015 by over $30 million compared to 2014. As a result, we reduced our net debt to $322 million, despite high capital spending of over $160 million, substantially related to capital expenditures and turnaround costs. With the Krotz Springs turnaround successfully completed in the fourth quarter of 2015 and the Big Spring turnaround executed in 2014, our assets are prepared to run well in the coming years. Our next major turnaround will not occur until 2019, allowing us to focus on our growth initiatives at both facilities.
"The Big Spring refinery ran well in 2015, setting a new total throughput record for the year. In the fourth quarter, the Big Spring refinery achieved total throughput of approximately 76,000 barrels per day and refinery operating margin of $10.02 per barrel. Relative to the third quarter of 2015, the Big Spring refinery's fourth quarter results were negatively impacted by seasonal weakness in crack spreads. Also, an outage at Big Spring's alkylation unit in the quarter impacted gasoline yields and direct operating expenses which were higher than planned at $3.88 per barrel. We also completed a reformer regeneration and catalyst replacement for our diesel hydrotreater unit in the beginning of the first quarter of 2016, which we had postponed from the third quarter of 2015.
"During the fourth quarter of 2015, we successfully completed the planned major turnaround at the Krotz Springs refinery. The turnaround negatively impacted total throughput, which was 41,000 barrels per day, direct operating expense and refinery operating margin. The refinery operating margin was also impacted by the seasonal weakness in crack spreads. In conjunction with the turnaround, we invested nearly $15 million in reliability improvements at the refinery. We continue to progress with our plans to add a sulfuric acid alkylation unit at Krotz Springs.
"Our retail business performed well in 2015 but faced headwinds in the fourth quarter. In addition to seasonal weakness, our performance suffered from severe weather conditions in our markets and weakness in the Midland/Odessa area due to lower economic activity. In October, we opened a new large-format store in El Paso. The performance of the 14 Albuquerque locations acquired in August has exceeded our expectations.
"Our asphalt segment significantly improved in 2015, and we believe the improvements that we have made in our business are sustainable. In 2015, we reduced our direct operating expense by $12 million, which contributed in part to a $28 million improvement in our operating income in 2015 relative to 2014.
"Due to the volatility in oil prices and contraction of crude differentials, the expected cash flows from future operations of our California refining assets, primarily the Bakersfield rail crude offloading facility, have been deferred. As a result, in the fourth quarter of 2015, we have decided to impair our goodwill associated with the California refining assets, resulting in a non-cash bottom-line impact of approximately $39 million.
"We expect total throughput at the Big Spring refinery to average approximately 68,000 barrels per day for the first quarter and 73,000 barrels per day for the full year of 2016. We expect total throughput at the Krotz Springs refinery to average approximately 72,000 barrels per day for the first quarter and 75,000 barrels per day for the full year of 2016."
FOURTH QUARTER 2015
Special items reduced earnings by $37.9 million for the fourth quarter of 2015 primarily as a result of a loss on impairment of goodwill of $38.5 million, after-tax losses of $1.2 million related to an asphalt inventory adjustment, after-tax expenses of $1.0 million associated with our employee retention plan and after-tax unrealized losses of $0.8 million associated with commodity swaps, partially offset by after-tax insurance recoveries net of professional fees of $2.6 million and $0.9 million associated with after-tax gains recognized on disposition of assets. Special items increased earnings by $6.9 million for the fourth quarter of 2014 primarily as a result of after-tax unrealized gains of $9.0 million associated with commodity swaps, partially offset by after-tax environmental charges of $1.6 million, after-tax losses of $0.1 million associated with write-offs of unamortized debt issuance costs and $0.3 million associated with after-tax losses recognized on disposition of assets.
The combined total refinery average throughput for the fourth quarter of 2015 was 116,995 barrels per day ("bpd"), compared to a combined total refinery average throughput of 143,252 bpd for the fourth quarter of 2014. The Big Spring refinery average throughput for the fourth quarter of 2015 was 75,925 bpd, compared to 76,867 bpd for the fourth quarter of 2014. The Krotz Springs refinery average throughput for the fourth quarter of 2015 was 41,070 bpd, compared to 66,385 bpd for the fourth quarter of 2014. The decreased throughput at the Krotz Springs refinery was due to downtime necessary to complete the planned major turnaround during the fourth quarter of 2015.
Refinery operating margin at the Big Spring refinery was $10.02 per barrel for the fourth quarter of 2015 compared to $15.12 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 $1.55 per barrel for the fourth quarter of 2015 compared to $4.04 per barrel for the same period in 2014. This decrease in operating margin was primarily due to the negative impact of the planned major turnaround on refinery production.
The average WTI Cushing to WTI Midland spread for the fourth quarter of 2015 was $(0.20) per barrel compared to $5.79 per barrel for the same period in 2014. The average WTI Cushing to WTS spread for the fourth quarter of 2015 was $(0.26) per barrel compared to $4.43 per barrel for the same period in 2014. The average Brent to WTI Cushing spread for the fourth quarter of 2015 was $1.35 per barrel compared to $3.07 per barrel for the same period in 2014. The average LLS to WTI Cushing spread for the fourth quarter of 2015 was $2.08 per barrel compared to $3.16 per barrel for the same period in 2014. The average Brent to LLS spread for the fourth quarter of 2015 was $(0.30) per barrel compared to $0.54 per barrel for the same period in 2014.
The average Gulf Coast 3/2/1 crack spread was $10.90 per barrel for the fourth quarter of 2015 compared to $9.04 per barrel for the fourth quarter of 2014. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $7.13 per barrel for the fourth quarter of 2015 compared to $4.80 per barrel for the fourth quarter of 2014.
The contango environment in the fourth quarter of 2015 created a cost of crude benefit of $0.94 per barrel compared to the backwardated environment creating a cost of crude detriment of $0.68 per barrel for the same period in 2014.
Asphalt margins for the fourth quarter of 2015 were $102.85 per ton compared to $33.53 per ton for the fourth quarter of 2014. On a cash basis (i.e. excluding inventory effects), asphalt margins in the fourth quarter of 2015 were $106.92 per ton compared to $36.51 per ton in the fourth 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 the cost of blended asphalt during the fourth quarter of 2015 compared to the fourth quarter of 2014.
Retail fuel sales volume increased to 52.2 million gallons in the fourth quarter of 2015 from 49.7 million gallons in the fourth quarter of 2014. Merchandise margins decreased to 31.1% in the fourth quarter of 2015 from 32.3% in the fourth quarter of 2014.
FULL-YEAR 2015
Special items reduced earnings by $42.7 million for 2015 primarily as a result of a loss on impairment of goodwill of $38.5 million, after-tax losses of $5.7 million related to an asphalt inventory adjustment and after-tax expenses of $8.0 million associated with our employee retention plan, partially offset by after-tax unrealized gains of $5.6 million associated with commodity swaps, after-tax insurance recoveries net of professional fees of $2.6 million and $1.4 million associated with after-tax gains recognized on disposition of assets. Special items increased earnings by $0.4 million for 2014 primarily as a result of after-tax unrealized gains of $2.8 million associated with commodity swaps and $0.2 million associated with after-tax gains recognized on disposition of assets, partially offset by after-tax environmental charges of $2.0 million and after-tax losses of $0.7 million associated with write-offs of unamortized original issuance discount and debt issuance costs.
Combined refinery average throughput for 2015 was 140,036 bpd, compared to a combined refinery average throughput of 136,378 bpd in 2014. The Big Spring refinery average throughput for 2015 was 74,906 bpd compared to 66,033 bpd for 2014. During 2014, refinery throughput at the Big Spring refinery was reduced as we completed both the planned major turnaround and the vacuum tower project. The Krotz Springs refinery average throughput for 2015 was 65,130 bpd compared to 70,345 bpd for 2014. During 2015, we completed the planned major turnaround at the Krotz Springs refinery, which reduced throughput during the period.
Refinery operating margin at the Big Spring refinery was $14.43 per barrel for 2015 compared to $16.69 per barrel for 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 $7.02 per barrel for 2015 compared to $7.57 per barrel for 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 LLS to WTI Cushing spreads was greater than the improvement in the Gulf Coast 2/1/1 high sulfur diesel crack spread and the cost of crude benefit from the market moving from backwardation into contango.
The average WTI Cushing to WTI Midland spread for 2015 was $0.39 per barrel compared to $6.93 per barrel for 2014. The average WTI Cushing to WTS spread for 2015 was $(0.06) per barrel compared to $6.04 per barrel for 2014. The average Brent to WTI Cushing spread for 2015 was $3.54 per barrel compared to $6.19 per barrel for 2014. The average LLS to WTI Cushing spread for 2015 was $3.73 per barrel compared to $3.85 per barrel for 2014. The average Brent to LLS spread for 2015 was $0.14 per barrel compared to $3.45 per barrel for 2014.
The average Gulf Coast 3/2/1 crack spread for 2015 was $17.02 per barrel compared to $14.52 per barrel for 2014. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for 2015 was $10.81 per barrel compared to $9.76 per barrel for 2014.
The contango environment in 2015 created a cost of crude benefit of $1.01 per barrel compared to the backwardated environment creating a cost of crude detriment of $0.73 per barrel in 2014.
Asphalt margins for 2015 were $105.70 per ton compared to $43.86 per ton in 2014. On a cash basis (i.e. excluding inventory effects), asphalt margins in 2015 were $109.35 per ton compared to $41.31 per ton in 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 2015 compared to 2014.
Retail fuel sales volume increased to 199.1 million gallons in 2015 from 192.6 million gallons in 2014. Merchandise margins increased to 31.9% in 2015 from 31.4% in 2014. Merchandise sales increased to $328.5 million in 2015 from $322.3 million in 2014.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast live over the Internet on Thursday, February 25, 2016, at 12:00 p.m. Eastern Time (11:00 a.m. Central Time), to discuss the fourth quarter and year-end 2015 financial 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 March 10, 2016, and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13629237#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), 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 a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels 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 | |||||||||||||||
RESULTS OF OPERATIONS - FINANCIAL DATA
(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2014, AND INCOME STATEMENT DATA FOR THE YEAR ENDED DECEMBER 31, 2014, IS UNAUDITED) |
For the Three Months Ended |
For the Year Ended | |||||||||||||
December 31, |
December 31, | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (1) |
$ |
782,367 |
$ |
1,503,231 |
$ |
4,338,152 |
$ |
6,779,456 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
636,794 |
1,307,198 |
3,515,406 |
6,002,270 |
|||||||||||
Direct operating expenses |
63,426 |
73,022 |
255,534 |
281,686 |
|||||||||||
Selling, general and administrative expenses (2) |
51,306 |
40,303 |
200,195 |
170,139 |
|||||||||||
Depreciation and amortization (3) |
32,232 |
32,562 |
126,494 |
124,063 |
|||||||||||
Total operating costs and expenses |
783,758 |
1,453,085 |
4,097,629 |
6,578,158 |
|||||||||||
Gain (loss) on disposition of assets |
1,319 |
(471) |
1,914 |
274 |
|||||||||||
Loss on impairment of goodwill (4) |
(39,028) |
— |
(39,028) |
— |
|||||||||||
Operating income (loss) |
(39,100) |
49,675 |
203,409 |
201,572 |
|||||||||||
Interest expense |
(19,876) |
(25,670) |
(79,826) |
(111,143) |
|||||||||||
Equity earnings (losses) of investees |
1,944 |
(1,123) |
6,669 |
1,678 |
|||||||||||
Other income, net |
266 |
33 |
417 |
674 |
|||||||||||
Income (loss) before income tax expense (benefit) |
(56,766) |
22,915 |
130,669 |
92,781 |
|||||||||||
Income tax expense (benefit) |
(4,860) |
8,459 |
48,282 |
22,913 |
|||||||||||
Net income (loss) |
(51,906) |
14,456 |
82,387 |
69,868 |
|||||||||||
Net income attributable to non-controlling interest |
628 |
7,749 |
29,636 |
31,411 |
|||||||||||
Net income (loss) available to stockholders |
$ |
(52,534) |
$ |
6,707 |
$ |
52,751 |
$ |
38,457 |
|||||||
Earnings (loss) per share, basic |
$ |
(0.75) |
$ |
0.10 |
$ |
0.76 |
$ |
0.56 |
|||||||
Weighted average shares outstanding, basic (in thousands) |
70,027 |
69,319 |
69,772 |
68,985 |
|||||||||||
Earnings (loss) per share, diluted |
$ |
(0.75) |
$ |
0.10 |
$ |
0.75 |
$ |
0.55 |
|||||||
Weighted average shares outstanding, diluted (in thousands) |
70,027 |
69,842 |
70,714 |
69,373 |
|||||||||||
Cash dividends per share |
$ |
0.15 |
$ |
0.31 |
$ |
0.55 |
$ |
0.53 |
|||||||
CASH FLOW DATA: |
|||||||||||||||
Net cash provided by (used in): |
|||||||||||||||
Operating activities |
$ |
49,755 |
$ |
49,074 |
$ |
226,065 |
$ |
193,658 |
|||||||
Investing activities |
(81,713) |
(24,242) |
(160,011) |
(108,995) |
|||||||||||
Financing activities |
27,221 |
(3,439) |
(46,888) |
(94,201) |
|||||||||||
OTHER DATA: |
|||||||||||||||
Adjusted net income (loss) available to stockholders (5) |
$ |
(14,635) |
$ |
(219) |
$ |
95,459 |
$ |
38,100 |
|||||||
Adjusted earnings (loss) per share (5) |
$ |
(0.21) |
$ |
— |
$ |
1.37 |
$ |
0.55 |
|||||||
Adjusted EBITDA (6) |
$ |
34,128 |
$ |
67,066 |
$ |
366,166 |
$ |
323,935 |
|||||||
Capital expenditures (7) |
43,933 |
14,633 |
101,195 |
88,429 |
|||||||||||
Capital expenditures for turnarounds and catalysts |
23,938 |
11,081 |
35,348 |
62,473 |
As of December 31, | |||||||||||||||
2015 |
2014 | ||||||||||||||
BALANCE SHEET DATA (end of period): |
(dollars in thousands) | ||||||||||||||
Cash and cash equivalents |
$ |
234,127 |
$ |
214,961 | |||||||||||
Working capital |
78,694 |
126,665 | |||||||||||||
Total assets (8) |
2,176,138 |
2,191,644 | |||||||||||||
Total debt (8) |
555,962 |
554,457 | |||||||||||||
Total debt less cash and cash equivalents (8) |
321,835 |
339,496 | |||||||||||||
Total equity |
664,160 |
673,778 | |||||||||||||
REFINING AND MARKETING SEGMENT |
|||||||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(dollars in thousands, except per barrel data and pricing statistics) | |||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||
Net sales (9) |
$ |
627,498 |
$ |
1,294,459 |
$ |
3,663,956 |
$ |
5,937,982 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of sales |
528,548 |
1,142,721 |
3,034,531 |
5,329,605 |
|||||||||||
Direct operating expenses |
57,063 |
63,471 |
227,517 |
241,833 |
|||||||||||
Selling, general and administrative expenses |
19,553 |
11,367 |
79,022 |
56,004 |
|||||||||||
Depreciation and amortization |
27,253 |
27,089 |
107,619 |
104,676 |
|||||||||||
Total operating costs and expenses |
632,417 |
1,244,648 |
3,448,689 |
5,732,118 |
|||||||||||
Gain (loss) on disposition of assets |
1,319 |
1 |
1,842 |
(1,255) |
|||||||||||
Loss on impairment of goodwill (4) |
(39,028) |
— |
(39,028) |
— |
|||||||||||
Operating income (loss) |
$ |
(42,628) |
$ |
49,812 |
$ |
178,081 |
$ |
204,609 |
|||||||
KEY OPERATING STATISTICS: |
|||||||||||||||
Per barrel of throughput: |
|||||||||||||||
Refinery operating margin – Big Spring (10) |
$ |
10.02 |
$ |
15.12 |
$ |
14.43 |
$ |
16.69 |
|||||||
Refinery operating margin – Krotz Springs (10) |
1.55 |
4.04 |
7.02 |
7.57 |
|||||||||||
Refinery direct operating expense – Big Spring (11) |
3.88 |
3.67 |
3.62 |
4.39 |
|||||||||||
Refinery direct operating expense – Krotz Springs (11) |
5.82 |
4.46 |
4.03 |
4.12 |
|||||||||||
Capital expenditures |
$ |
37,926 |
$ |
7,825 |
$ |
73,429 |
$ |
63,148 |
|||||||
Capital expenditures for turnarounds and catalysts |
23,938 |
11,081 |
35,348 |
62,473 |
|||||||||||
PRICING STATISTICS: |
|||||||||||||||
Crack spreads (3/2/1) (per barrel): |
|||||||||||||||
Gulf Coast (12) |
$ |
10.90 |
$ |
9.04 |
$ |
17.02 |
$ |
14.52 |
|||||||
Crack spreads (2/1/1) (per barrel): |
|||||||||||||||
Gulf Coast high sulfur diesel (12) |
$ |
7.13 |
$ |
4.80 |
$ |
10.81 |
$ |
9.76 |
|||||||
WTI Cushing crude oil (per barrel) |
$ |
42.05 |
$ |
73.37 |
$ |
48.68 |
$ |
93.10 |
|||||||
Crude oil differentials (per barrel): |
|||||||||||||||
WTI Cushing less WTI Midland (13) |
$ |
(0.20) |
$ |
5.79 |
$ |
0.39 |
$ |
6.93 |
|||||||
WTI Cushing less WTS (13) |
(0.26) |
4.43 |
(0.06) |
6.04 |
|||||||||||
LLS less WTI Cushing (13) |
2.08 |
3.16 |
3.73 |
3.85 |
|||||||||||
Brent less LLS (13) |
(0.30) |
0.54 |
0.14 |
3.45 |
|||||||||||
Brent less WTI Cushing (13) |
1.35 |
3.07 |
3.54 |
6.19 |
|||||||||||
Product prices (dollars per gallon): |
|||||||||||||||
Gulf Coast unleaded gasoline |
$ |
1.25 |
$ |
1.85 |
$ |
1.56 |
$ |
2.49 |
|||||||
Gulf Coast ultra-low sulfur diesel |
1.29 |
2.20 |
1.58 |
2.71 |
|||||||||||
Gulf Coast high sulfur diesel |
1.19 |
2.03 |
1.45 |
2.59 |
|||||||||||
Natural gas (per MMBtu) |
2.23 |
3.83 |
2.63 |
4.26 |
THROUGHPUT AND PRODUCTION DATA: BIG SPRING REFINERY |
For the Three Months Ended December 31, |
For the Year Ended December 31, | |||||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTS crude |
29,510 |
38.9 |
35,663 |
46.4 |
33,647 |
44.9 |
30,323 |
45.9 |
|||||||||||||||
WTI crude |
43,968 |
57.9 |
35,691 |
46.4 |
38,632 |
51.6 |
32,429 |
49.1 |
|||||||||||||||
Blendstocks |
2,447 |
3.2 |
5,513 |
7.2 |
2,627 |
3.5 |
3,281 |
5.0 |
|||||||||||||||
Total refinery throughput (14) |
75,925 |
100.0 |
76,867 |
100.0 |
74,906 |
100.0 |
66,033 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
38,600 |
50.8 |
41,015 |
53.0 |
37,519 |
50.0 |
32,932 |
49.7 |
|||||||||||||||
Diesel/jet |
27,812 |
36.6 |
27,074 |
34.9 |
27,651 |
36.8 |
23,252 |
35.1 |
|||||||||||||||
Asphalt |
2,362 |
3.1 |
2,749 |
3.5 |
2,639 |
3.5 |
2,716 |
4.1 |
|||||||||||||||
Petrochemicals |
4,012 |
5.3 |
4,476 |
5.8 |
4,579 |
6.1 |
3,756 |
5.7 |
|||||||||||||||
Other |
3,176 |
4.2 |
2,185 |
2.8 |
2,678 |
3.6 |
3,565 |
5.4 |
|||||||||||||||
Total refinery production (15) |
75,962 |
100.0 |
77,499 |
100.0 |
75,066 |
100.0 |
66,221 |
100.0 |
|||||||||||||||
Refinery utilization (16) |
100.7 |
% |
97.7 |
% |
99.0 |
% |
97.2 |
% | |||||||||||||||
THROUGHPUT AND PRODUCTION DATA: KROTZ SPRINGS REFINERY |
For the Three Months Ended December 31, |
For the Year Ended December 31, | |||||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||
bpd |
% |
bpd |
% |
bpd |
% |
bpd |
% | ||||||||||||||||
Refinery throughput: |
|||||||||||||||||||||||
WTI crude |
8,750 |
21.3 |
28,454 |
42.9 |
22,408 |
34.4 |
28,373 |
40.3 |
|||||||||||||||
Gulf Coast sweet crude |
29,384 |
71.6 |
32,208 |
48.5 |
38,699 |
59.4 |
39,636 |
56.4 |
|||||||||||||||
Blendstocks |
2,936 |
7.1 |
5,723 |
8.6 |
4,023 |
6.2 |
2,336 |
3.3 |
|||||||||||||||
Total refinery throughput (14) |
41,070 |
100.0 |
66,385 |
100.0 |
65,130 |
100.0 |
70,345 |
100.0 |
|||||||||||||||
Refinery production: |
|||||||||||||||||||||||
Gasoline |
18,083 |
43.7 |
31,336 |
46.5 |
30,193 |
45.5 |
32,925 |
45.9 |
|||||||||||||||
Diesel/jet |
16,037 |
38.7 |
26,402 |
39.2 |
27,259 |
41.0 |
30,060 |
41.9 |
|||||||||||||||
Heavy Oils |
654 |
1.6 |
1,199 |
1.8 |
1,165 |
1.8 |
1,146 |
1.6 |
|||||||||||||||
Other |
6,632 |
16.0 |
8,441 |
12.5 |
7,781 |
11.7 |
7,579 |
10.6 |
|||||||||||||||
Total refinery production (15) |
41,406 |
100.0 |
67,378 |
100.0 |
66,398 |
100.0 |
71,710 |
100.0 |
|||||||||||||||
Refinery utilization (16) |
83.1 |
% |
82.0 |
% |
91.3 |
% |
91.9 |
% |
ASPHALT SEGMENT |
|||||||||||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||
(dollars in thousands, except per ton data) | |||||||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||||||
Net sales (17) |
$ |
48,967 |
$ |
106,572 |
$ |
257,955 |
$ |
457,412 |
|||||||||||
Operating costs and expenses: |
|||||||||||||||||||
Cost of sales (17) (18) |
38,081 |
102,280 |
212,166 |
431,931 |
|||||||||||||||
Direct operating expenses |
6,363 |
9,551 |
28,017 |
39,853 |
|||||||||||||||
Selling, general and administrative expenses |
3,280 |
1,499 |
10,517 |
7,874 |
|||||||||||||||
Depreciation and amortization |
1,227 |
1,166 |
4,892 |
4,747 |
|||||||||||||||
Total operating costs and expenses |
48,951 |
114,496 |
255,592 |
484,405 |
|||||||||||||||
Gain (loss) on disposition of assets |
— |
(482) |
— |
1,396 |
|||||||||||||||
Operating income (loss) (21) |
$ |
16 |
$ |
(8,406) |
$ |
2,363 |
$ |
(25,597) |
|||||||||||
KEY OPERATING STATISTICS: |
|||||||||||||||||||
Blended asphalt sales volume (tons in thousands) (19) |
104 |
104 |
451 |
516 |
|||||||||||||||
Non-blended asphalt sales volume (tons in thousands) (20) |
18 |
24 |
59 |
65 |
|||||||||||||||
Blended asphalt sales price per ton (19) |
$ |
451.98 |
$ |
571.30 |
$ |
486.34 |
$ |
571.18 |
|||||||||||
Non-blended asphalt sales price per ton (20) |
116.61 |
406.17 |
231.00 |
397.91 |
|||||||||||||||
Asphalt margin per ton (21) |
102.85 |
33.53 |
105.70 |
43.86 |
|||||||||||||||
Capital expenditures |
$ |
901 |
$ |
1,505 |
$ |
3,385 |
$ |
5,777 |
|||||||||||
RETAIL SEGMENT |
|||||||||||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||
(dollars in thousands, except per gallon data) | |||||||||||||||||||
STATEMENTS OF OPERATIONS DATA: |
|||||||||||||||||||
Net sales (1) |
$ |
182,960 |
$ |
216,657 |
$ |
774,435 |
$ |
939,684 |
|||||||||||
Operating costs and expenses: |
|||||||||||||||||||
Cost of sales (18) |
147,223 |
176,654 |
626,903 |
796,356 |
|||||||||||||||
Selling, general and administrative expenses |
28,292 |
27,260 |
109,943 |
105,556 |
|||||||||||||||
Depreciation and amortization |
3,427 |
3,697 |
12,431 |
12,241 |
|||||||||||||||
Total operating costs and expenses |
178,942 |
207,611 |
749,277 |
914,153 |
|||||||||||||||
Gain on disposition of assets |
— |
10 |
72 |
134 |
|||||||||||||||
Operating income |
$ |
4,018 |
$ |
9,056 |
$ |
25,230 |
$ |
25,665 |
|||||||||||
KEY OPERATING STATISTICS: |
|||||||||||||||||||
Number of stores (end of period) (22) |
309 |
295 |
309 |
295 |
|||||||||||||||
Retail fuel sales (thousands of gallons) |
52,155 |
49,732 |
199,147 |
192,582 |
|||||||||||||||
Retail fuel sales (thousands of gallons per site per month) (22) |
58 |
59 |
58 |
57 |
|||||||||||||||
Retail fuel margin (cents per gallon) (23) |
20.0 |
27.6 |
21.3 |
21.6 |
|||||||||||||||
Retail fuel sales price (dollars per gallon) (24) |
$ |
1.95 |
$ |
2.73 |
$ |
2.24 |
$ |
3.20 |
|||||||||||
Merchandise sales |
$ |
80,958 |
$ |
80,951 |
$ |
328,505 |
$ |
322,262 |
|||||||||||
Merchandise sales (per site per month) (22) |
$ |
87 |
$ |
91 |
$ |
91 |
$ |
91 |
|||||||||||
Merchandise margin (25) |
31.1 |
% |
32.3 |
% |
31.9 |
% |
31.4 |
% | |||||||||||
Capital expenditures |
$ |
4,110 |
$ |
4,654 |
$ |
18,993 |
$ |
16,748 |
|||||||||||
(1) |
Includes excise taxes on sales by the retail segment of $20,367 and $19,486 for the three months ended December 31, 2015 and 2014, respectively, and $77,860 and $75,409 for the years ended December 31, 2015 and 2014, respectively. |
(2) |
Includes corporate headquarters selling, general and administrative expenses of $181 and $177 for the three months ended December 31, 2015 and 2014, respectively, and $713 and $705 for the years ended December 31, 2015 and 2014, respectively, which are not allocated to our three operating segments. |
(3) |
Includes corporate depreciation and amortization of $325 and $610 for the three months ended December 31, 2015 and 2014, respectively, and $1,552 and $2,399 for the years ended December 31, 2015 and 2014, respectively, which are not allocated to our three operating segments. |
(4) |
During the three months and year ended December 31, 2015, we recognized a goodwill impairment loss of $39,028 related to our California refining reporting unit. |
(5) |
The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings per share, excluding the after-tax write-off of unamortized debt issuance costs, after-tax write-off of unamortized original issuance discount, after-tax employee retention expense, after-tax environmental charges, loss on impairment of goodwill, after-tax loss on asphalt inventory adjustment, after-tax insurance recoveries net of professional fees, after-tax unrealized gains (losses) on commodity swaps and after-tax gain (loss) on disposition of assets. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) 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 Year Ended | ||||||||||||||||
December 31, |
December 31, | ||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income (loss) available to stockholders |
$ |
(52,534) |
$ |
6,707 |
$ |
52,751 |
$ |
38,457 |
|||||||||
Plus: Write-off of debt issuance costs, net of tax |
— |
123 |
— |
411 |
|||||||||||||
Plus: Write-off of original issuance discount, net of tax |
— |
— |
— |
265 |
|||||||||||||
Plus: Employee retention expense, net of tax |
956 |
— |
8,007 |
— |
|||||||||||||
Plus: Environmental charges, net of tax |
— |
1,634 |
— |
1,950 |
|||||||||||||
Plus: Loss on impairment of goodwill |
38,540 |
— |
38,540 |
— |
|||||||||||||
Plus: Loss on asphalt inventory adjustment, net of tax |
1,192 |
— |
5,736 |
— |
|||||||||||||
Less: Insurance recoveries net of professional fees, net of tax |
(2,615) |
— |
(2,615) |
— |
|||||||||||||
Less: Unrealized (gains) losses on commodity swaps, net of tax |
772 |
(8,973) |
(5,608) |
(2,781) |
|||||||||||||
Less: (Gain) loss on disposition of assets, net of tax |
(946) |
290 |
(1,352) |
(202) |
|||||||||||||
Adjusted net income (loss) available to stockholders |
$ |
(14,635) |
$ |
(219) |
$ |
95,459 |
$ |
38,100 |
|||||||||
Adjusted earnings (loss) per share * |
$ |
(0.21) |
$ |
— |
$ |
1.37 |
$ |
0.55 |
|||||||||
* Adjusted earnings (loss) per share includes the effects of dividends on preferred stock on adjusted net income (loss) |
(6) |
Adjusted EBITDA represents earnings before net income attributable to non-controlling interest, income tax expense (benefit), interest expense, depreciation and amortization, gain (loss) on disposition of assets, loss on impairment of goodwill 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 (benefit), interest expense, gain (loss) on disposition of assets, loss on impairment of goodwill, 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 (loss) available to stockholders to Adjusted EBITDA for the three months and years ended December 31, 2015 and 2014: | ||
For the Three Months Ended |
For the Year Ended | ||||||||||||||||
December 31, |
December 31, | ||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income (loss) available to stockholders |
$ |
(52,534) |
$ |
6,707 |
$ |
52,751 |
$ |
38,457 |
|||||||||
Net income attributable to non-controlling interest |
628 |
7,749 |
29,636 |
31,411 |
|||||||||||||
Income tax expense (benefit) |
(4,860) |
8,459 |
48,282 |
22,913 |
|||||||||||||
Interest expense |
19,876 |
25,670 |
79,826 |
111,143 |
|||||||||||||
Depreciation and amortization |
32,232 |
32,562 |
126,494 |
124,063 |
|||||||||||||
(Gain) loss on disposition of assets |
(1,319) |
471 |
(1,914) |
(274) |
|||||||||||||
Loss on impairment of goodwill |
39,028 |
— |
39,028 |
— |
|||||||||||||
Unrealized (gains) losses on commodity swaps |
1,077 |
(14,552) |
(7,937) |
(3,778) |
|||||||||||||
Adjusted EBITDA |
$ |
34,128 |
$ |
67,066 |
$ |
366,166 |
$ |
323,935 |
Adjusted EBITDA does not exclude a loss of $1,662 and $8,118 for the three months and year ended December 31, 2015, respectively, resulting from a price adjustment related to asphalt inventory. | |
(7) |
Includes corporate capital expenditures of $996 and $649 for the three months ended December 31, 2015 and 2014, respectively, and $5,388 and $2,756 for the years ended December 31, 2015 and 2014, respectively, which are not allocated to our three operating segments. |
(8) |
During the year ended December 31, 2015, we adopted the FASB's recently issued accounting guidance simplifying the presentation of debt issuance costs. As a result of adopting this guidance, debt issuance costs that had previously been included as deferred charges in our consolidated balance sheets have been reclassified as a direct deduction from the carrying value of the associated debt. These changes have been applied retrospectively to all periods presented. |
(9) |
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. |
(10) |
Refinery operating margin is a per barrel measurement calculated by dividing the margin between net sales and cost of sales (exclusive of certain adjustments) attributable to each refinery by its 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 months and year ended December 31, 2015 excludes realized and unrealized gains on commodity swaps of $9,759 and $59,215, respectively. The refinery operating margin for the three months and year ended December 31, 2015 also excludes insurance recoveries of $10,868. For the year ended December 31, 2015, $3,941 primarily related 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 months and year ended December 31, 2014 excludes realized and unrealized gains on commodity swaps of $14,552 and $4,660, respectively. | |
(11) |
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. |
(12) |
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. | |
(13) |
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. |
(14) |
Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. |
(15) |
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. |
(16) |
Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds. |
(17) |
Net sales and cost of sales include asphalt purchases sold as part of the supply and offtake arrangement of $0 and $37,409 for the three months ended December 31, 2015 and 2014, respectively, and $24,988 and $136,818 for the years ended December 31, 2015 and 2014, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics. |
(18) |
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. |
(19) |
Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product. |
(20) |
Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product. |
(21) |
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 months and year ended December 31, 2015 excludes a loss of $1,662 and $8,118, respectively, resulting from a price adjustment related to asphalt inventory. This loss is included in the operating income (loss) of the asphalt segment. | |
(22) |
At December 31, 2015, we had 309 retail convenience stores of which 298 sold fuel. At December 31, 2014, we had 295 retail convenience stores of which 283 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. | |
(23) |
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. |
(24) |
Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores. |
(25) |
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 |
SOURCE Alon USA Energy, Inc.
DALLAS, Feb. 11, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that its Board of Directors has approved the regular quarterly cash dividend of $0.15 per share. The dividend is payable on March 18, 2016, to stockholders of record at the close of business on February 26, 2016.
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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day ("bpd") and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 bpd. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
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 |
SOURCE Alon USA Energy, Inc.
DALLAS, Feb. 10, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that the Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a distribution of $0.08 per unit payable in cash on February 29, 2016 to common unitholders of record at the close of business on February 22, 2016. Cash available for distribution for the three months ended December 31, 2015 totaled $5.0 million.
This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholdings on the distributions received by them on behalf of foreign investors.
Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. ("Alon Energy") (NYSE: ALJ). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
- Tables to follow -
The preliminary financial results for the three months ended December 31, 2015 presented below, and utilized for the determination of cash available for distribution, are forward-looking statements based on preliminary estimates. These results reflect the best judgment of our management but involve a number of risks and uncertainties which could cause actual results to differ materially from those set forth in our estimates and from past results or performance. Such preliminary results are subject to finalization of our financial closing process for the three months ended December 31, 2015. Consequently, there can be no assurances that the preliminary estimates set forth below will be the actual financial results for the three months ended December 31, 2015, and any variation between the estimates and our actual results set forth below may be material.
ALON USA PARTNERS, LP | |||
CASH AVAILABLE FOR DISTRIBUTION | |||
(unaudited) | |||
(dollars in thousands, except per unit data) | |||
For the Three Months Ended | |||
December 31, 2015 | |||
Net sales |
$ |
437,872 | |
Operating costs and expenses: |
|||
Cost of sales |
369,896 | ||
Direct operating expenses |
27,092 | ||
Selling, general and administrative expenses |
7,699 | ||
Depreciation and amortization |
13,831 | ||
Total operating costs and expenses |
418,518 | ||
Operating income |
19,354 | ||
Interest expense |
(11,942) | ||
Other income, net |
26 | ||
Income before state income tax expense |
7,438 | ||
State income tax expense |
192 | ||
Net income |
$ |
7,246 | |
Adjustments to reconcile net income to Adjusted EBITDA: |
|||
Interest expense |
11,942 | ||
State income tax expense |
192 | ||
Depreciation and amortization |
13,831 | ||
Adjusted EBITDA |
$ |
33,211 | |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution: |
|||
less: Maintenance/growth capital expenditures |
11,458 | ||
less: Turnaround and catalyst replacement capital expenditures |
2,770 | ||
less: Major turnaround reserve for future years |
1,500 | ||
less: Principal payments |
625 | ||
less: State income tax payments |
377 | ||
less: Interest paid in cash |
11,462 | ||
Cash available for distribution |
$ |
5,019 | |
Common units outstanding (in 000's) |
62,510 | ||
Cash available for distribution per unit |
$ |
0.08 |
Non-GAAP Financial Measure
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. 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 state income tax expense, interest expense 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:
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.
Contacts: |
Stacey Hudson, Investor Relations Manager |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar/Stephanie Zhadkevich | |
Dennard § Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, Jan. 25, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced plans to declare a cash distribution related to the fourth quarter 2015 after the market closes on February 10, 2016. Alon Partners today also announced that it will release its fourth quarter and year-end 2015 financial results on Wednesday, February 24, 2016 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Thursday, February 25, 2016 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
What: |
Alon USA Partners, LP Fourth Quarter and Year-End 2015 Earnings Conference Call |
When: |
Thursday, February 25, 2016 - 9:00 a.m. Eastern Time |
Where: |
Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. |
A telephonic replay of the conference call will be available through March 10, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13629238#. A webcast archive will also be available at www.alonpartners.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 Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.
Contacts: |
Stacey Hudson |
Investor Relations Manager | |
Alon USA Partners GP, LLC | |
972-367-3808 | |
Investors: Jack Lascar/Stephanie Zhadkevich | |
Dennard ▪ Lascar Associates, LLC | |
713-529-6600 | |
Media: Blake Lewis | |
Lewis Public Relations | |
214-635-3020 |
SOURCE Alon USA Partners, LP
DALLAS, Jan. 25, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its fourth quarter and year-end 2015 financial results on Wednesday, February 24, 2016 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Thursday, February 25, 2016 at 12:00 p.m. Eastern Time (11:00 a.m. Central Time).
What: |
Alon USA Energy, Inc. Fourth Quarter and Year-End 2015 Earnings Conference Call |
When: |
Thursday, February 25, 2016 - 12:00 p.m. Eastern Time |
Where: |
Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking 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 March 10, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13629237#. 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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day ("bpd") and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 bpd. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
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 |
SOURCE Alon USA Energy, Inc.
DALLAS, Dec. 29, 2015 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will be attending two investor conferences during the first week of January 2016.
On Tuesday, January 5, Mr. Paul Eisman, President and Chief Executive Officer, will be attending one-on-one meetings with institutional investors at the Wolfe Research 2016 Oil & Gas Refiners One-on-One Conference in Boston, Massachusetts.
On Thursday, January 7, Mr. Shai Even, Senior Vice President and Chief Financial Officer, will be participating in a panel discussion at 1:00 p.m. Eastern Time at the Goldman Sachs Global Energy Conference 2016 in Miami, Florida. Mr. Even will also be conducting one-on-one meetings at the conference.
The related materials for both conferences will be available beginning the morning of January 5, 2016 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.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 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day ("bpd") and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 bpd. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. 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 approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.
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 |
SOURCE Alon USA Energy, Inc.
Permian Gulf Coast Pipeline (PGC) (subscriber access)
Status: (subscriber access)
Parent Entities:
Energy Transfer Operating, L.P.
Magellan Midstream Partners LP
MPLX LP
Delek US Holdings, Inc.
Wink to Webster Crude Oil Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
ExxonMobil Corporation
Plains All American Pipeline
Lotus Midstream, LLC
Wink to Webster Pipeline LLC
MPLX LP
Delek US Holdings, Inc.
Rattler Midstream LLC
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