DALLAS, July 27, 2017 /PRNewswire/ -- Alon
USA Partners, LP (NYSE: ALDW)
("Alon Partners") today announced results for the second quarter of
2017. Net income for the second quarter of 2017 was $21.7 million, or $0.35 per unit, compared to net income of
$1.2 million, or $0.02 per unit, for the same period last year.
Net income for the first half of 2017 was $41.8 million, or $0.67 per unit, compared to net loss of
$(7.4) million, or $(0.12) 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 second quarter
of 2017 of $0.35 per unit payable on
August 24, 2017 to common unitholders of record at the close
of business on August 17, 2017, based on cash available for
distribution of $21.7 million.
Alan Moret, CEO, commented,
"Our second quarter 2017 results benefited from an improvement in
our benchmark Gulf Coast crack spread and discounts in
Midland-sourced crude relative to WTI Cushing. The wholesale
marketing environment remained strong as increased economic
activity supported product demand in our markets."
Shai Even, President and CFO,
commented, "The refinery achieved an operating margin of
$12.68 per barrel in the second
quarter of 2017. Our results were impacted by FCCU maintenance in
the second quarter of 2017, which reduced adjusted EBITDA by
$9.5 million and the distribution by
$0.16 per unit. The FCCU maintenance
negatively impacted the refinery's direct operating expense of
$4.21 per barrel for the second
quarter of 2017.
"We are encouraged by the production activity we have seen in
the Permian Basin and the continued discounts for Midland crudes
into the third quarter. 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 third quarter of 2017."
SECOND QUARTER 2017
Refinery operating margin was $12.68 per barrel for the second quarter of 2017
compared to $8.53 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, a widening
of both the WTI Cushing to WTI Midland and WTI Cushing to WTS
spreads and a stronger wholesale marketing environment, partially
offset by a reduced benefit from the contango market environment
which increased the cost of crude. Refinery average throughput for
the second quarter of 2017 was 72,763 barrels per day ("bpd")
compared to 71,153 bpd for the same period in 2016. Refinery
throughput for the second quarter of 2017 was affected by
maintenance on the FCCU and refinery throughput for the second
quarter of 2016 was affected by unplanned downtime due to a power
outage caused by inclement weather, which affected multiple
units.
The average Gulf Coast 3/2/1 crack spread was $15.07 per barrel for the second quarter of 2017
compared to $13.16 per barrel for the
second quarter of 2016. The average WTI Cushing to WTI Midland
spread for the second quarter of 2017 was $0.84 per barrel compared to $0.17 per barrel for the second quarter of 2016.
The average WTI Cushing to WTS spread for the second quarter of
2017 was $1.24 per barrel compared to
$0.75 per barrel for the second
quarter of 2016. The average Brent to WTI Cushing spread for the
second quarter of 2017 was $1.21 per
barrel compared to $(0.18) per barrel
for the same period in 2016. The contango environment in the second
quarter of 2017 created an average cost of crude benefit of
$0.55 per barrel compared to an
average cost of crude benefit of $1.49 per barrel for the same period in 2016. The
average RINs cost effect on refinery operating margin was
$0.34 per barrel in the second
quarter of 2017, compared to $0.32
per barrel for the same period in 2016.
YEAR-TO-DATE 2017
Refinery operating margin was $11.47 per barrel for the first half of 2017
compared to $8.16 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 both the WTI Cushing to WTI Midland and WTI Cushing to
WTS spreads, partially offset by increased RINs costs and a reduced
benefit from the contango market environment which increased the
cost of crude. Refinery average throughput for the first half of
2017 was 75,245 bpd compared to 69,345 bpd for the same period in
2016. Refinery throughput for the first half of 2017 was affected
by maintenance on the FCCU. The lower throughput for the first half
of 2016 was the result of a reformer regeneration and a catalyst
replacement for our diesel hydrotreater unit in 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 average Gulf Coast 3/2/1 crack spread was $14.41 per barrel for the first half of 2017
compared to $12.20 per barrel for the
same period in 2016. The average WTI Cushing to WTI Midland spread
for the first half of 2017 was $0.11
per barrel compared to $0.02 per
barrel for the same period in 2016. The average WTI Cushing to WTS
spread for the first half of 2017 was $1.26 per barrel compared to $0.32 per barrel for the same period in 2016. The
average Brent to WTI Cushing spread for the first half of 2017 was
$1.44 per barrel compared to
$0.15 per barrel for the same period
in 2016. The contango environment for the first half of 2017
created an average cost of crude benefit of $0.77 per barrel compared to an average cost of
crude benefit of $1.66 per barrel for
the same period in 2016. The average RINs cost effect on refinery
operating margin was $0.47 per barrel
in the first half of 2017, compared to $0.23 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 Friday,
July 28, 2017 at 10:00 a.m. Eastern
Time (9:00 a.m. Central Time),
to discuss the second 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 August 4,
2017 and may be accessed by calling 877-660-6853, or
201-612-7415 for international callers, and using the passcode
13666988#. 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 in
which Delek US Holdings, Inc. (NYSE: DK) owns 100% of the general
partner and 81.6% of the limited partner interest. 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 retail convenience
stores owned by Delek US and other third-party distributors.
Contacts:
|
Keith
Johnson
|
|
Vice President of
Investor Relations
|
|
Delek US Holdings,
Inc.
|
|
615-435-1366
|
- 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
|
|
For the Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(dollars in
thousands, except per unit data, per barrel data and pricing
statistics)
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(1)
|
$
|
521,751
|
|
|
$
|
468,457
|
|
|
$
|
1,066,283
|
|
|
$
|
836,466
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
440,895
|
|
|
410,735
|
|
|
911,366
|
|
|
730,068
|
|
Direct operating
expenses
|
27,878
|
|
|
23,255
|
|
|
52,638
|
|
|
48,299
|
|
Selling, general and
administrative expenses
|
7,392
|
|
|
8,802
|
|
|
14,156
|
|
|
16,111
|
|
Depreciation and
amortization
|
14,462
|
|
|
14,667
|
|
|
28,691
|
|
|
28,873
|
|
Total operating costs
and expenses
|
490,627
|
|
|
457,459
|
|
|
1,006,851
|
|
|
823,351
|
|
Loss on disposition
of assets
|
(23)
|
|
|
—
|
|
|
(23)
|
|
|
—
|
|
Operating
income
|
31,101
|
|
|
10,998
|
|
|
59,409
|
|
|
13,115
|
|
Interest
expense
|
(8,652)
|
|
|
(9,920)
|
|
|
(16,497)
|
|
|
(20,507)
|
|
Other income (loss),
net
|
(459)
|
|
|
113
|
|
|
(554)
|
|
|
197
|
|
Income (loss) before
state income tax expense
|
21,990
|
|
|
1,191
|
|
|
42,358
|
|
|
(7,195)
|
|
State income tax
expense
|
310
|
|
|
—
|
|
|
566
|
|
|
176
|
|
Net income
(loss)
|
$
|
21,680
|
|
|
$
|
1,191
|
|
|
$
|
41,792
|
|
|
$
|
(7,371)
|
|
Earnings (loss) per
unit
|
$
|
0.35
|
|
|
$
|
0.02
|
|
|
$
|
0.67
|
|
|
$
|
(0.12)
|
|
Weighted average
common units outstanding (in thousands)
|
62,525
|
|
|
62,515
|
|
|
62,523
|
|
|
62,512
|
|
Cash distribution per
unit
|
$
|
0.38
|
|
|
$
|
—
|
|
|
$
|
0.49
|
|
|
$
|
0.08
|
|
CASH FLOW
DATA:
|
|
|
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
35,373
|
|
|
$
|
39,925
|
|
|
$
|
77,145
|
|
|
$
|
46,587
|
|
Investing
activities
|
(7,316)
|
|
|
(10,131)
|
|
|
(13,191)
|
|
|
(20,924)
|
|
Financing
activities
|
30,148
|
|
|
8,830
|
|
|
29,761
|
|
|
3,204
|
|
OTHER
DATA:
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
45,127
|
|
|
$
|
25,778
|
|
|
$
|
87,569
|
|
|
$
|
42,185
|
|
Capital
expenditures
|
7,149
|
|
|
4,588
|
|
|
12,175
|
|
|
12,700
|
|
Capital expenditures
for turnarounds and catalysts
|
167
|
|
|
5,543
|
|
|
1,016
|
|
|
8,224
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
Refinery operating
margin (3)
|
$
|
12.68
|
|
|
$
|
8.53
|
|
|
$
|
11.47
|
|
|
$
|
8.16
|
|
Refinery direct
operating expense (4)
|
4.21
|
|
|
3.59
|
|
|
3.86
|
|
|
3.83
|
|
PRICING
STATISTICS:
|
|
|
|
|
|
|
|
Crack spreads (per
barrel):
|
|
|
|
|
|
|
|
Gulf Coast 3/2/1
(5)
|
$
|
15.07
|
|
|
$
|
13.16
|
|
|
$
|
14.41
|
|
|
$
|
12.20
|
|
WTI Cushing crude oil
(per barrel)
|
$
|
48.25
|
|
|
$
|
45.48
|
|
|
$
|
50.00
|
|
|
$
|
39.39
|
|
Crude oil
differentials (per barrel):
|
|
|
|
|
|
|
|
WTI Cushing less WTI
Midland (6)
|
$
|
0.84
|
|
|
$
|
0.17
|
|
|
$
|
0.11
|
|
|
$
|
0.02
|
|
WTI Cushing less WTS
(6)
|
1.24
|
|
|
0.75
|
|
|
1.26
|
|
|
0.32
|
|
Brent less WTI
Cushing (6)
|
1.21
|
|
|
(0.18)
|
|
|
1.44
|
|
|
0.15
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.52
|
|
|
$
|
1.42
|
|
|
$
|
1.54
|
|
|
$
|
1.25
|
|
Gulf Coast ultra-low
sulfur diesel
|
1.48
|
|
|
1.34
|
|
|
1.52
|
|
|
1.19
|
|
Natural gas (per
MMBtu)
|
3.14
|
|
|
2.25
|
|
|
3.10
|
|
|
2.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
BALANCE SHEET DATA
(end of period):
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
$
|
167,239
|
|
|
$
|
73,524
|
|
Working
capital
|
|
|
|
|
|
|
|
|
(37,982)
|
|
|
(73,563)
|
|
Total
assets
|
|
|
|
|
|
|
|
|
787,442
|
|
|
695,637
|
|
Total debt
|
|
|
|
|
|
|
|
|
285,996
|
|
|
236,319
|
|
Total debt less cash
and cash equivalents
|
|
|
|
|
|
|
|
|
118,757
|
|
|
162,795
|
|
Total partners'
equity
|
|
|
|
|
|
|
|
|
114,704
|
|
|
103,503
|
|
THROUGHPUT AND
PRODUCTION DATA:
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTS crude
|
17,680
|
|
24.3
|
|
25,698
|
|
36.1
|
|
23,955
|
|
31.8
|
|
31,126
|
|
44.9
|
WTI crude
|
52,207
|
|
71.7
|
|
43,040
|
|
60.5
|
|
47,568
|
|
63.2
|
|
35,400
|
|
51.0
|
Blendstocks
|
2,876
|
|
4.0
|
|
2,415
|
|
3.4
|
|
3,722
|
|
5.0
|
|
2,819
|
|
4.1
|
Total refinery
throughput (7)
|
72,763
|
|
100.0
|
|
71,153
|
|
100.0
|
|
75,245
|
|
100.0
|
|
69,345
|
|
100.0
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
33,506
|
|
46.5
|
|
33,744
|
|
47.6
|
|
36,084
|
|
48.2
|
|
33,922
|
|
49.0
|
Diesel/jet
|
27,885
|
|
38.7
|
|
26,627
|
|
37.6
|
|
28,375
|
|
37.9
|
|
24,655
|
|
35.6
|
Asphalt
|
2,020
|
|
2.8
|
|
2,572
|
|
3.6
|
|
2,454
|
|
3.3
|
|
2,860
|
|
4.2
|
Petrochemicals
|
3,827
|
|
5.3
|
|
3,354
|
|
4.7
|
|
4,176
|
|
5.6
|
|
3,485
|
|
5.0
|
Other
|
4,755
|
|
6.7
|
|
4,569
|
|
6.5
|
|
3,700
|
|
5.0
|
|
4,298
|
|
6.2
|
Total refinery
production (8)
|
71,993
|
|
100.0
|
|
70,866
|
|
100.0
|
|
74,789
|
|
100.0
|
|
69,220
|
|
100.0
|
Refinery utilization
(9)
|
|
|
99.0%
|
|
|
|
94.2%
|
|
|
|
99.6%
|
|
|
|
93.7%
|
|
|
|
|
|
|
CASH AVAILABLE FOR
DISTRIBUTION DATA:
|
|
For the Three
Months Ended
|
|
|
|
June 30,
2017
|
|
|
|
(dollars in
thousands, except
per unit data)
|
|
|
|
|
Net sales
(1)
|
|
$
|
521,751
|
|
Operating costs and
expenses:
|
|
|
Cost of
sales
|
|
440,895
|
|
Direct operating
expenses
|
|
27,878
|
|
Selling, general and
administrative expenses
|
|
7,392
|
|
Depreciation and
amortization
|
|
14,462
|
|
Total operating costs
and expenses
|
|
490,627
|
|
Operating
income
|
|
31,101
|
|
Interest
expense
|
|
(8,652)
|
|
Other loss,
net
|
|
(459)
|
|
Income before state
income tax expense
|
|
21,990
|
|
State income tax
expense
|
|
310
|
|
Net income
|
|
21,680
|
|
Adjustments to
reconcile net income to Adjusted EBITDA:
|
|
|
Interest
expense
|
|
8,652
|
|
State income tax
expense
|
|
310
|
|
Depreciation and
amortization
|
|
14,462
|
|
Adjusted EBITDA
(2)
|
|
45,127
|
|
Adjustments to
reconcile Adjusted EBITDA to cash available for
distribution:
|
|
|
less:
Maintenance/growth capital expenditures
|
|
7,149
|
|
less: Turnaround and
catalyst replacement capital expenditures
|
|
167
|
|
less: Major
turnaround reserve for future years (a)
|
|
3,500
|
|
less: Principal
payments
|
|
625
|
|
less: State income
tax payments
|
|
310
|
|
less: Interest paid
in cash
|
|
7,690
|
|
Cash available for
distribution before special expenses
|
|
25,686
|
|
less: Special reserve
for cost increase in capital expenditures associated with the
consent decree (b)
|
|
4,000
|
|
Cash available for
distribution
|
|
$
|
21,686
|
|
|
|
|
Common units
outstanding (in 000's)
|
|
62,529
|
|
|
|
|
Cash available for
distribution per unit
|
|
$
|
0.35
|
|
|
|
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.
|
|
|
b.
|
The Partnership is
finalizing a consent decree with the U.S. Environmental Protection
Agency to reduce air emissions from the Big Spring refinery, which
will require additional capital expenditures. The Board of
Directors of our general partner has elected to reserve $4 million
from cash available for distribution each quarter through the
fourth quarter of 2018 to cover a $28 million increase in the
expected costs.
|
________________
(1)
|
Includes sales to
related parties of $94,323 and $76,884 for the three months ended
June 30, 2017 and 2016, respectively, and $185,760 and $139,994 for
the six months ended June 30, 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 and
six months ended June 30, 2017 and 2016:
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
21,680
|
|
|
$
|
1,191
|
|
|
$
|
41,792
|
|
|
$
|
(7,371)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State income tax
expense
|
310
|
|
|
—
|
|
|
566
|
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
8,652
|
|
|
9,920
|
|
|
16,497
|
|
|
20,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
14,462
|
|
|
14,667
|
|
|
28,691
|
|
|
28,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
45,127
|
|
|
$
|
25,778
|
|
|
$
|
87,569
|
|
|
$
|
42,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 six months ended June 30, 2017
excludes losses related to inventory adjustments of $(3,106) and
$(1,264), respectively. Refinery operating margin for the three and
six months ended June 30, 2016 excludes gains related to
inventory adjustments of $2,519 and $3,465,
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.
|
View original
content:http://www.prnewswire.com/news-releases/alon-usa-partners-lp-reports-second-quarter-2017-results-and-declares-quarterly-cash-distribution-300495781.html
SOURCE Alon USA Partners,
LP