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
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 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,
2016
|
|
December 31,
2015
|
|
(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.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-third-quarter-2016-results-300353074.html
SOURCE Alon USA Energy,
Inc.