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Alon USA Energy, Inc. Reports Second Quarter 2014 Results and Announces Increase in Quarterly Cash Dividend

August 7, 2014

Schedules conference call for August 8, 2014 at 11:30 a.m. Eastern

DALLAS, Aug. 7, 2014 /PRNewswire/ — Alon USA Energy, Inc. (NYSE: ALJ) (“Alon”) today announced results for the second quarter of 2014. Net loss available to stockholders for the second quarter of 2014 was $(7.5) million, or $(0.11) per share, compared to net income available to stockholders of $11.5 million, or $0.17 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(3.4) million, or $(0.05) per share, for the second quarter of 2014, compared to net income available to stockholders of $17.2 million, or $0.27 per share, for the same period last year.

Net loss available to stockholders for the first half of 2014 was $(6.7) million, or $(0.10) per share, compared to net income available to stockholders of $65.7 million, or $1.03 per share, for the same period last year. Excluding special items, Alon recorded net income available to stockholders of $0.5 million, or $0.01 per share, for the first half of 2014, compared to net income available to stockholders of $71.4 million, or $1.12 per share, for the same period last year.

Alon also announced today that its Board of Directors has approved an increase in its regular quarterly cash dividend of $0.06 per share to $0.10 per share, or from $0.24 per share to $0.40 per share per annum. The dividend of $0.10 per share is payable on September 22, 2014 to stockholders of record at the close of business on September 8, 2014.

Paul Eisman, CEO and President, commented, “Our results in the second quarter were largely impacted by the planned major turnaround at the Big Spring refinery, which resulted in reduced throughput rates in the quarter. However, this was partially offset by excellent operational performance at Krotz Springs, which achieved record quarterly throughput of almost 76,000 barrels per day and generated a refinery operating margin of $8.89 per barrel with operating expenses of $3.70 per barrel. We remain optimistic for the future performance of Krotz Springs as growing local crude production and additional pipeline capacity increases light-sweet crude supplies on the Gulf Coast resulting in wider discounts in LLS crude relative to Brent crude.

“During the second quarter we completed the planned major turnaround and the vacuum tower revamp project at the Big Spring refinery. The completion of the turnaround and the vacuum tower revamp project allows us to increase the refinery’s crude throughput by 3,000 barrels per day to 73,000 barrels per day. The distillate recovery and energy savings resulting from the vacuum tower revamp project have exceeded expectations with distillate yield increasing by 3,000 barrels per day. This will drive an improvement in our margin capture rate going forward.

“The turnaround was challenging given its very significant scope. The turnaround duration was impacted by difficult weather conditions and a longer than expected maintenance period particularly in the FCC. This resulted in lower throughput than planned in the second quarter. However, we were very pleased with the good safety performance of our people and our contractors during the turnaround. We’ve also been encouraged by the operating performance of the Big Spring refinery since the turnaround.

“We expect total throughput at the Big Spring refinery for the third and fourth quarters to be 74,000 barrels per day and 75,000 barrels per day, respectively. At the Krotz Springs refinery we expect total throughput for the third and fourth quarters to be 75,000 barrels per day and 76,000 barrels per day, respectively. The profitability of both Big Spring and Krotz Springs should be supported in the third quarter by widening differentials for Midland-priced crude oil. Midland-priced crudes traded at attractive discounts to WTI Cushing in June and July, which will positively affect the cost of crude and refinery operating margins at our Big Spring and Krotz Springs refineries in the third quarter. The WTI Cushing to WTI Midland differentials that will favorably affect the cost of crude for July and August averaged $8.59 per barrel.

“In July we redeemed in full the remaining principal balance of $35.6 million on our Krotz Springs senior secured notes due October 2014.”

SECOND QUARTER 2014

Special items reduced earnings by $4.1 million for the second quarter of 2014 primarily as a result of after-tax losses of $3.6 million associated with unrealized losses on commodity swaps and $0.5 million of costs associated with the May redemption of our Krotz Springs senior secured notes. Special items reduced earnings by $5.7 million for the second quarter of 2013 which primarily included after-tax costs for an unplanned reformer shutdown and repair of $11.6 million, partially offset by $5.9 million associated with gains recognized on disposition of assets.

The combined refinery average throughput for the second quarter of 2014 was 114,869 barrels per day (“bpd”), consisting of 38,994 bpd at the Big Spring refinery and 75,875 bpd at the Krotz Springs refinery, compared to a combined refinery average throughput of 130,928 bpd for the second quarter of 2013, consisting of 72,124 bpd at the Big Spring refinery and 58,804 bpd at the Krotz Springs refinery. The lower throughput at our Big Spring refinery during the second quarter of 2014 was due to our planned turnaround that was completed in June 2014. During the second quarter of 2013, the Krotz Springs refinery was impacted by the unplanned shut down and repair of the reformer unit for approximately one month.

Refinery operating margin at the Big Spring refinery was $17.04 per barrel for the second quarter of 2014 compared to $14.99 per barrel for the same period in 2013. This increase in operating margin was primarily due to a widening of both the WTI Cushing to WTS spread and the WTI Cushing to WTI Midland spread, partially offset by a lower Gulf Coast 3/2/1 crack spread. Also impacting the Big Spring refinery operating margin during the second quarter of 2014 were RINs credits of $0.8 million, generated as a result of reduced production during the planned turnaround at our refinery, compared to RINs costs of $8.0 million for the same period in 2013.

Refinery operating margin at the Krotz Springs refinery was $8.89 per barrel for the second quarter of 2014 compared to $1.97 per barrel for the same period in 2013. This increase was primarily due to a higher Gulf Coast 2/1/1 high sulfur diesel crack spread and a widening WTI Cushing to WTI Midland spread, partially offset by a narrowing LLS to WTI Cushing spread. The Krotz Springs refinery operating margin was also impacted during the second quarter of 2014 by $5.5 million of costs associated with RINs obligations. The Krotz Springs refinery received an exemption from the RFS2 requirements for 2013 and as a result did not record costs associated with RINs.

The average Gulf Coast 3/2/1 crack spread was $16.42 per barrel for the second quarter of 2014 compared to $21.17 per barrel for the same period in 2013, which was primarily influenced by a reduction in the Brent to WTI Cushing spread. The average Brent to WTI Cushing spread for the second quarter of 2014 was $7.56 per barrel compared to $12.51 per barrel for the same period in 2013. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $12.47 per barrel for the second quarter of 2014 compared to $4.15 per barrel for the same period in 2013, which was primarily influenced by an increase in the Brent to LLS spread. The average Brent to LLS spread for the second quarter of 2014 was $4.67 per barrel compared to $(2.56) per barrel for the same period in 2013.

The average WTI Cushing to WTS spread for the second quarter of 2014 was $7.88 per barrel compared to $0.36 per barrel for the same period in 2013. The average WTI Cushing to WTI Midland spread for the second quarter of 2014 was $8.37 per barrel compared to $0.14 per barrel for the same period in 2013. The average LLS to WTI Cushing spread for the second quarter of 2014 was $2.89 per barrel compared to $15.07 per barrel for the same period in 2013.

Asphalt margins for the second quarter of 2014 were $67.64 per ton compared to $83.27 per ton for the same period in 2013. On a cash basis (i.e., excluding inventory effects), asphalt margins in the second quarter of 2014 were $55.45 per ton compared to $90.06 per ton in the second quarter of 2013. This decrease was primarily due to lower asphalt sales prices during the second quarter of 2014 compared to the second quarter of 2013. The average blended asphalt sales price decreased 4.6% to $564.75 per ton in the second quarter of 2014 from $591.81 per ton in the second quarter of 2013, and the average non-blended asphalt sales price decreased 21.6% to $302.75 per ton in the second quarter of 2014 from $386.40 per ton in the second quarter of 2013.

Retail fuel sales volume increased by 2.7% to 48.8 million gallons in the second quarter of 2014 from 47.5 million gallons in the second quarter of 2013.

YEAR-TO-DATE 2014

Special items reduced earnings by $7.2 million for the first half of 2014 primarily as a result of after-tax losses of $8.7 million associated with unrealized losses on commodity swaps and $0.5 million of costs associated with the May redemption of our Krotz Springs senior secured notes, partially offset by $1.9 million associated with gains recognized on disposition of assets. Special items decreased earnings by $5.7 million for the first half of 2013 which primarily included after-tax costs for an unplanned reformer shutdown and repair of $11.6 million, offset by $6.0 million associated with gains recognized on disposition of assets.

The combined refinery average throughput for the first half of 2014 averaged 125,059 bpd, consisting of 56,050 bpd at the Big Spring refinery and 69,009 bpd at the Krotz Springs refinery, compared to a combined refinery average throughput of 124,457 bpd for the first half of 2013, consisting of 65,835 bpd at the Big Spring refinery and 58,622 bpd at the Krotz Springs refinery. The lower throughput at the Big Spring refinery was primarily due to the planned turnaround during the second quarter of 2014. During the first half of 2013, the Krotz Springs refinery was impacted by the unplanned shut down and repair of the reformer unit for approximately one month.

Refinery operating margin at the Big Spring refinery was $15.56 per barrel for the first half of 2014 compared to $21.18 per barrel for the same period in 2013. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, partially offset by a widening WTI Cushing to WTI Midland spread. Also impacting refinery operating margin for the first half of 2014 was $2.2 million of costs associated with the purchase of RINs needed to satisfy our obligation to blend biofuels into the products we produce, compared to $8.0 million for the same period in 2013.

Refinery operating margin at the Krotz Springs refinery was $8.22 per barrel for the first half of 2014 compared to $7.51 per barrel for the same period in 2013. This increase is mainly due to higher Gulf Coast 2/1/1 high sulfur diesel crack spreads and a widening WTI Cushing to WTI Midland spread, partially offset by a narrowing LLS to WTI Cushing spread. Also impacting refinery operating margin for the first half of 2014 was $10.6 million of costs associated with the purchase of RINs needed to satisfy our obligation to blend biofuels into the products we produce. The Krotz Springs refinery received an exemption from the RFS2 requirements for 2013 and as a result did not record costs associated with RINs.

The average Gulf Coast 3/2/1 crack spread for the first half of 2014 was $16.61 per barrel compared to $24.76 per barrel for the same period in 2013, which was primarily influenced by a reduction in the Brent to WTI Cushing spread. The average Brent to WTI Cushing spread for the first half of 2014 was $10.25 per barrel compared to $16.98 per barrel for the same period in 2013. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the first half of 2014 was $11.62 per barrel compared to $6.16 per barrel for the same period in 2013, which was primarily influenced by an increase in the Brent to LLS spread. The average Brent to LLS spread for the first half of 2014 was $5.81 per barrel compared to $(0.65) per barrel for the same period in 2013.

The average WTI Cushing to WTI Midland spread for the first half of 2014 was $5.96 per barrel compared to $3.91 per barrel for the same period in 2013. The average LLS to WTI Cushing spread for the first half of 2014 was $4.42 per barrel compared to $17.63 per barrel for the same period in 2013.

Asphalt margins for the first half of 2014 were $72.67 per ton compared to $73.74 per ton for same period in 2013. On a cash basis (i.e. excluding inventory effects), asphalt margins in the first half of 2014 were $69.48 per ton compared to $77.81 per ton in the first half of 2013. This decrease is primarily due to lower asphalt sales prices during the first half of 2014. The average blended asphalt sales price decreased 2.2% from $570.28 per ton in the first half of 2013 to $557.86 per ton in the first half of 2014 and the average non-blended asphalt sales price decreased 3.5% from $389.59 per ton in the first half of 2013 to $375.85 per ton in the first half of 2014.

Retail fuel sales volume increased by 2.6% from 91.9 million gallons in the first half of 2013 to 94.3 million gallons in the first half of 2014.

CONFERENCE CALL

Alon has scheduled a conference call for Friday, August 8, 2014, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the second quarter 2014 results. To access the call, please dial 888-427-9419, or 719-325-2144 for international callers, at least 10 minutes prior to the start time and ask for the Alon USA Energy call. Investors may also listen to the conference live on the Alon investor relations website, http://ir.alonusa.com. A telephonic replay of the conference call will be available through August 22, 2014, and may be accessed by calling 888-203-1112, or 719-457-0820 for international callers, and using the passcode 8791719#. The archived webcast will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and approximately 82% of the limited partner interests in Alon USA Partners, LP, which owns a crude oil refinery in Texas with an aggregate crude oil throughput capacity of approximately 73,000 barrels per day. In addition, Alon directly owns crude oil refineries in Louisiana and California, with an aggregate crude oil throughput capacity of approximately 144,000 barrels per day. Alon is a leading marketer of asphalt, which it distributes through its asphalt terminals predominately in the Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores in 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 Hudson, 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
                                 Ruth Sheetrit
                                 SMG Public Relations
                                 011-972-547-555551

- Tables to follow -

                                                                                     ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED

                                                                                                      EARNINGS RELEASE

    RESULTS OF OPERATIONS -
     FINANCIAL DATA          For the Three Months Ended                             For the Six Months Ended

    (ALL INFORMATION IN THIS
     PRESS RELEASE EXCEPT
     FOR BALANCE SHEET DATA
     AS OF DECEMBER 31,
     2013, IS UNAUDITED)

                                    June 30,                                           June 30,
                                    --------                                           --------

                                  2014                               2013                      2014                               2013
                                  ----                               ----                      ----                               ----

                                            (dollars in thousands, except per share data)

    STATEMENTS OF OPERATIONS
     DATA:

    Net sales (1)                            $1,742,883                                 $1,676,595                                      $3,426,128 $3,327,791

    Operating costs and
     expenses:

    Cost of sales            1,580,447                          1,497,712                 3,086,992                          2,875,969

    Direct operating
     expenses                   67,630                             71,446                   138,308                            145,668

    Selling, general and
     administrative expenses
     (2)                       46,333                             43,101                    85,722                             84,842

    Depreciation and
     amortization (3)           29,453                             30,798                    59,331                             61,961
                                ------                             ------                    ------                             ------

    Total operating costs
     and expenses            1,723,863                          1,643,057                 3,370,353                          3,168,440
                             ---------                          ---------                 ---------                          ---------

    Gain (loss) on
     disposition of assets        (88)                             8,494                     2,117                              8,512
                                   ---                              -----                     -----                              -----

    Operating income            18,932                             42,032                    57,892                            167,863

    Interest expense          (29,256)                          (20,261)                 (57,271)                          (41,553)

    Equity earnings of
     investees                   1,278                              2,110                       819                              1,729

    Other income, net              638                                 46                       621                                129
                                   ---                                ---                       ---                                ---

    Income (loss) before
     income tax expense        (8,408)                            23,927                     2,061                            128,168

    Income tax expense
     (benefit)                 (1,971)                             3,985                       123                             34,575
                                ------                              -----                       ---                             ------

    Net income (loss)          (6,437)                            19,942                     1,938                             93,593

    Net income attributable
     to non-controlling
     interest                    1,080                              8,446                     8,670                             27,913
                                 -----                              -----

    Net income (loss)
     available to
     stockholders                              $(7,517)                                   $11,496                                        $(6,732)   $65,680
                                                =======                                    =======                                         =======    =======

    Earnings (loss) per
     share, basic                               $(0.11)                                     $0.17                                         $(0.10)     $1.03
                                                 ======                                      =====                                          ======      =====

    Weighted average shares
     outstanding, basic (in
     thousands)                 68,851                             62,614                    68,734                             62,285
                                ======                             ======                    ======                             ======

    Earnings (loss) per
     share, diluted                             $(0.11)                                     $0.17                                         $(0.10)     $0.97
                                                 ======                                      =====                                          ======      =====

    Weighted average shares
     outstanding, diluted
     (in thousands)             68,851                             68,071                    68,734                             67,743
                                ======                             ======                    ======                             ======

    Cash dividends per share                      $0.06                                      $0.22                                           $0.12      $0.26
                                                  =====                                      =====                                           =====      =====

    CASH FLOW DATA:

    Net cash provided by
     (used in):

    Operating activities                      $(31,072)                                 $(31,016)                                        $31,642   $129,754

    Investing activities      (47,403)                             1,491                  (41,007)                          (12,082)

    Financing activities      (79,666)                          (88,873)                 (17,983)                          (99,500)

    OTHER DATA:

    Adjusted net income
     (loss) available to
     stockholders (4)                          $(3,420)                                   $17,200                                            $484    $71,372

    Adjusted earnings (loss)
     per share (4)                              $(0.05)                                     $0.27                                           $0.01      $1.12

    Adjusted EBITDA (5)                         $53,293                                    $66,492                                        $126,056   $223,170

    Capital expenditures (6)    36,495                             22,208                    54,655                             30,622

    Capital expenditures for
     turnarounds and
     catalysts                  11,422                              1,408                    26,269                              6,624


                                                                                                                               June 30,                   December 31,
                                                                                                                                    2014                            2013
                                                                                                                                    ----                            ----

    BALANCE SHEET DATA (end of period):                                                                                          (dollars in thousands)

    Cash and cash equivalents                                                                                                                    $197,151                           $224,499

    Working capital                                                                                                           128,827                          60,863

    Total assets                                                                                                            2,234,107                       2,245,140

    Total debt                                                                                                                643,710                         612,248

    Total debt less cash and cash equivalents                                                                                 446,559                         387,749

    Total equity                                                                                                              638,807                         625,404

    REFINING AND MARKETING SEGMENT

                                               For the Three Months Ended                 For the Six Months Ended

                                                        June 30,                                  June 30,
                                                        --------                                  --------

                                                        2014                          2013                           2014      2013
                                                        ----                          ----                           ----      ----

                                              (dollars in thousands, except per barrel data and pricing statistics)

    STATEMENTS OF OPERATIONS DATA:

    Net sales (7)                                                  $1,521,324                                 $1,443,614             $3,026,242                          $2,857,739

    Operating costs and expenses:

    Cost of sales                                  1,403,843                     1,316,953                      2,772,057 2,500,275

    Direct operating
     expenses                                         57,478                        60,347                        118,276   124,016

    Selling, general and
     administrative expenses                          18,466                        14,598                         29,000    28,519

    Depreciation and
     amortization                                     24,713                        26,107                         50,081    52,612
                                                      ------                        ------                         ------    ------

    Total operating costs
     and expenses                                  1,504,500                     1,418,005                      2,969,414 2,705,422

    Gain (loss) on
     disposition of assets                              (59)                        7,405                           (59)    7,405
                                                         ---                         -----

    Operating income                                                  $16,765                                    $33,014                $56,769                            $159,722
                                                                      =======                                    =======                =======                            ========

    KEY OPERATING STATISTICS:

    Per barrel of throughput:

    Refinery operating
     margin - Big Spring (8)                                           $17.04                                     $14.99                 $15.56                              $21.18

    Refinery operating
     margin - Krotz Springs
     (8)                                               8.89                          1.97                           8.22      7.51

    Refinery direct
     operating expense - Big
     Spring (9)                                         7.09                          4.16                           5.33      4.85

    Refinery direct
     operating expense -
     Krotz Springs (9)                                  3.70                          4.63                           4.09      4.53

    Capital expenditures                                              $31,659                                    $12,646                $43,855                             $18,615

    Capital expenditures for
     turnarounds and
     catalysts                                        11,422                         1,408                         26,269     6,624

    PRICING STATISTICS:

    Crack spreads (3/2/1) (per barrel):

    Gulf Coast (10)                                                    $16.42                                     $21.17                 $16.61                              $24.76

    Crack spreads (2/1/1) (per barrel):

    Gulf Coast high sulfur
     diesel (10)                                                       $12.47                                      $4.15                 $11.62                               $6.16

    WTI Cushing crude oil
     (per barrel)                                                     $103.04                                     $94.20                $100.86                              $94.23

    Crude oil differentials (per barrel):

    WTI Cushing less WTI
     Midland (11)                                                       $8.37                                      $0.14                  $5.96                               $3.91

    WTI Cushing less WTS
     (11)                                              7.88                          0.36                           5.79      5.86

    LLS less WTI Cushing
     (11)                                              2.89                         15.07                           4.42     17.63

    Brent less LLS (11)                                 4.67                        (2.56)                          5.81    (0.65)

    Brent less WTI Cushing
     (11)                                              7.56                         12.51                          10.25     16.98

    Product prices (dollars per gallon):

    Gulf Coast unleaded
     gasoline                                                           $2.81                                      $2.69                  $2.73                               $2.77

    Gulf Coast ultra-low
     sulfur diesel                                      2.92                          2.86                           2.93      2.97

    Gulf Coast high sulfur
     diesel                                             2.83                          2.71                           2.83      2.86

    Natural gas (per MMBtu)                             4.58                          4.02                           4.65      3.76


    THROUGHPUT AND PRODUCTION
     DATA:                                 For the Three Months Ended                        For the Six Months Ended

    BIG SPRING REFINERY

                                          June 30,                                                                         June 30,
                                          --------                                                                         --------

                                                 2014                      2013                     2014                      2013
                                                 ----                      ----                     ----                      ----

                              bpd                         %            bpd                    %                         bpd                   %        bpd               %

    Refinery throughput:

    WTS crude                      12,634                         32.4        53,627                     74.4                    23,927           42.7      49,446           75.1

    WTI crude                      23,391                         60.0        17,180                     23.8                    29,652           52.9      14,380           21.8

    Blendstocks                     2,969                          7.6         1,317                      1.8                     2,471            4.4       2,009            3.1
                                    -----                          ---         -----                      ---                     -----            ---       -----            ---

    Total refinery throughput
     (12)                         38,994                        100.0        72,124                    100.0                    56,050          100.0      65,835          100.0
                                   ======                        =====        ======                    =====                    ======          =====      ======          =====

    Refinery production:

    Gasoline                       17,484                         45.1        35,057                     48.7                    26,835           48.0      32,436           49.4

    Diesel/jet                     12,315                         31.8        24,748                     34.4                    18,461           33.0      22,038           33.6

    Asphalt                         1,660                          4.3         4,453                      6.2                     2,529            4.5       3,909            6.0

    Petrochemicals                  1,825                          4.7         4,628                      6.4                     3,111            5.5       4,179            6.4

    Other                           5,483                         14.1         3,088                      4.3                     5,022            9.0       3,029            4.6
                                    -----                         ----         -----                      ---                     -----            ---       -----            ---

    Total refinery production
     (13)                         38,767                        100.0        71,974                    100.0                    55,958          100.0      65,591          100.0
                                   ======                        =====        ======                    =====                    ======          =====      ======          =====

    Refinery utilization (14)                     85.4%                              101.2%                                             95.7%                      97.1%

    THROUGHPUT AND PRODUCTION
     DATA:                               For the Three Months Ended                   For the Six Months Ended

    KROTZ SPRINGS REFINERY

                                      June 30,                                                                        June 30,
                                      --------                                                                        --------

                                                 2014                      2013                     2014                      2013
                                                 ----                      ----                     ----                      ----

                              bpd                         %            bpd                    %                         bpd                   %        bpd               %

    Refinery throughput:

    WTI crude                      29,737                         39.2        31,060                     52.8                    26,904           39.0      28,088           47.9

    Gulf Coast sweet crude         46,138                         60.8        26,226                     44.6                    40,953           59.3      28,857           49.2

    Blendstocks                         -                           -        1,518                      2.6                     1,152            1.7       1,677            2.9
                                      ---                         ---        -----                      ---                     -----            ---       -----            ---

    Total refinery throughput
     (12)                         75,875                        100.0        58,804                    100.0                    69,009          100.0      58,622          100.0
                                   ======                        =====        ======                    =====                    ======          =====      ======          =====

    Refinery production:

    Gasoline                       33,909                         43.7        22,710                     37.9                    32,407           46.0      24,800           41.5

    Diesel/jet                     33,665                         43.4        24,267                     40.5                    29,791           42.3      23,330           39.0

    Heavy Oils                      1,362                          1.8           521                      0.9                       980            1.4       1,144            1.9

    Other                           8,616                         11.1        12,410                     20.7                     7,225           10.3      10,559           17.6
                                    -----                         ----        ------                     ----                     -----           ----      ------           ----

    Total refinery production
     (13)                         77,552                        100.0        59,908                    100.0                    70,403          100.0      59,833          100.0
                                   ======                        =====        ======                    =====                    ======          =====      ======          =====

    Refinery utilization (14)                    102.5%                               77.4%                                             91.7%                      78.9%



    ASPHALT SEGMENT

                                         For the Three Months Ended                        For the Six Months Ended

                                                  June 30,                                         June 30,
                                                  --------                                         --------

                                             2014                                2013                             2014                              2013
                                             ----                                ----                             ----                              ----

                                                   (dollars in thousands, except per ton data)

    STATEMENTS OF OPERATIONS DATA:

    Net sales (15)                                           $117,677                                        $144,191      $213,848   $299,056

    Operating costs and expenses:

    Cost of sales (15)(16)                107,801                             127,953                          195,535                           273,469

    Direct operating expenses              10,152                              11,099                           20,032                            21,652

    Selling, general and
     administrative expenses                2,299                               1,555                            5,027                             3,203

    Depreciation and amortization           1,162                               1,563                            2,362                             3,112
                                            -----                               -----                            -----                             -----

    Total operating costs and expenses    121,414                             142,170                          222,956                           301,436
                                          -------                             -------                          -------                           -------

    Gain (loss) on disposition of
     assets                                 (152)                                  -                           2,014                         -
                                             ----                                 ---                           -----                       ---

    Operating income (loss)                                  $(3,889)                                         $2,021      $(7,094)  $(2,380)
                                                              =======                                          ======       =======    =======

    KEY OPERATING STATISTICS:

    Blended asphalt sales volume (tons
     in thousands) (17)                       142                                 180                              226                               310

    Non-blended asphalt sales volume
     (tons in thousands) (18)                   4                                  15                               26                                37

    Blended asphalt sales price per
     ton (17)                                                 $564.75                                         $591.81       $557.86    $570.28

    Non-blended asphalt sales price
     per ton (18)                          302.75                              386.40                           375.85                            389.59

    Asphalt margin per ton (19)             67.64                               83.27                            72.67                             73.74

    Capital expenditures                                       $1,501                                          $2,599        $3,219     $4,391

    RETAIL SEGMENT

                                       For the Three Months Ended                     For the Six Months Ended

                                                June 30,                                      June 30,
                                                --------                                      --------

                                             2014                                2013                             2014                              2013
                                             ----                                ----                             ----                              ----

                                                                           (dollars in thousands, except per gallon data)

    STATEMENTS OF OPERATIONS DATA:

    Net sales (1)                                            $252,659                                        $244,833      $473,907   $468,938

    Operating costs and expenses:

    Cost of sales (16)                    217,580                             208,849                          407,269                           400,167

    Selling, general and
     administrative
     expenses                              25,393                              26,755                           51,345                            52,752

    Depreciation and
     amortization                           2,983                               2,554                            5,697                             4,822
                                            -----                               -----                            -----                             -----

    Total operating costs
     and expenses                         245,956                             238,158                          464,311                           457,741
                                          -------                             -------                          -------                           -------

    Gain on disposition
     of assets                                123                               1,089                              163                             1,107
                                              ---                               -----                              ---                             -----

    Operating income                                           $6,826                                          $7,764        $9,759    $12,304
                                                               ======                                          ======        ======    =======

    KEY OPERATING STATISTICS:

    Number of stores (end
     of period) (20)                          296                                 298                              296                               298

    Retail fuel sales
     (thousands of
     gallons)                              48,767                              47,490                           94,283                            91,896

    Retail fuel sales
     (thousands of
     gallons per site per
     month) (20)                               57                                  55                               55                                54

    Retail fuel margin
     (cents per gallon)
     (21)                                   19.4                                20.2                             18.9                              20.2

    Retail fuel sales
     price (dollars per
     gallon) (22)                                               $3.47                                           $3.40         $3.36      $3.40

    Merchandise sales                                         $83,182                                         $83,243      $156,517   $156,576

    Merchandise sales
     (per site per month)
     (20)                                                        $94                                             $93           $88        $88

    Merchandise margin
     (23)                                  30.7%                              31.6%                           31.1%                             31.9%

    Capital expenditures                                       $2,841                                          $6,537        $6,222     $7,177

    (1)              Includes excise taxes on sales by
                     the retail segment of $19,101 and
                     $18,531 for the three months
                     ended June 30, 2014 and 2013,
                     respectively, and $36,911 and
                     $35,836 for the six months ended
                     June 30, 2014 and 2013,
                     respectively.

    (2)              Includes corporate headquarters
                     selling, general and
                     administrative expenses of $175
                     and $193 for the three months
                     ended June 30, 2014 and 2013,
                     respectively, and $350 and $368
                     for the six months ended June 30,
                     2014 and 2013, respectively,
                     which are not allocated to our
                     three operating segments.

    (3)              Includes corporate depreciation
                     and amortization of $595 and $574
                     for the three months ended June
                     30, 2014 and 2013, respectively,
                     and $1,191 and $1,415 for the six
                     months ended June 30, 2014 and
                     2013, 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 write-off
                     of original issuance discount,
                     after-tax write-off of debt
                     issuance costs, after-tax
                     unrealized losses on commodity
                     swaps, after-tax costs
                     associated with the unplanned
                     reformer shutdown and repair 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,
                                              --------                                --------

                                            2014                       2013                      2014         2013
                                            ----                       ----                      ----         ----

                                                               (dollars in thousands)

     Net income (loss) available to
     stockholders                                    $(7,517)                               $11,496                $(6,732)  $65,680

     Plus: Write-off of original
     issuance discount, net of tax           232                          -                      232            -

     Plus: Write-off of debt
     issuance costs, net of tax              231                          -                      231            -

     Plus: Unrealized losses on
     commodity swaps, net of tax           3,568                          -                    8,687            -

     Plus: Costs associated with the
     unplanned reformer shutdown and
     repair, net of tax                        -                    11,643                         -      11,643

     Less: (Gain) loss on disposition
     of assets, net of tax                    66                    (5,939)                  (1,934)     (5,951)
                                             ---                                              ------       ------

     Adjusted net income (loss)
     available to stockholders                       $(3,420)                               $17,200                    $484   $71,372
                                                      =======                                =======                    ====   =======

     Adjusted earnings (loss) per
     share *                                          $(0.05)                                 $0.27                   $0.01     $1.12
                                                       ======                                  =====                   =====     =====

                 * Adjusted
                                    earnings
                                    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 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
                     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, 2014 and 2013:


                                      For the Three Months Ended                    For the Six Months Ended

                                               June 30,                                    June 30,
                                               --------                                    --------

                                            2014                         2013                   2014              2013
                                            ----                         ----                   ----              ----

                                                             (dollars in thousands)

      Net income (loss) available to
      stockholders                                    $(7,517)                             $11,496                     $(6,732)  $65,680

      Net income attributable to non-
      controlling interest                 1,080                        8,446                  8,670            27,913

     Income tax expense (benefit)        (1,971)                       3,985                    123            34,575

     Interest expense                     29,256                       20,261                 57,271            41,553

     Depreciation and amortization        29,453                       30,798                 59,331            61,961

      (Gain) loss on disposition of
      assets                                  88                      (8,494)               (2,117)          (8,512)

      Unrealized losses on commodity
      swaps                                2,904                            -                 9,510                 -

     Adjusted EBITDA                                   $53,293                              $66,492                     $126,056  $223,170
                                                       =======                              =======                     ========  ========


    (6)                 Includes
                        corporate
                        capital
                        expenditures
                        of $494 and
                        $426 for the
                        three months
                        ended June
                        30, 2014 and
                        2013,
                        respectively,
                        and $1,359
                        and $439 for
                        the six
                        months ended
                        June 30,
                        2014 and
                        2013,
                        respectively,
                        which are
                        not
                        allocated to
                        our three
                        operating
                        segments.

    (7)                 Net sales include intersegment
                        sales to our asphalt and retail
                        segments at prices which
                        approximate wholesale market
                        prices. These intersegment sales
                        are eliminated through
                        consolidation of our financial
                        statements.

    (8)                 Refinery operating margin is a per
                        barrel measurement calculated by
                        dividing the margin between net
                        sales and cost of sales
                        (exclusive of substantial hedge
                        positions and certain inventory
                        adjustments) attributable to each
                        refinery by the refinery's
                        throughput volumes. Industry-
                        wide refining results are driven
                        and measured by the margins
                        between refined product prices
                        and the prices for crude oil,
                        which are referred to as crack
                        spreads. We compare our refinery
                        operating margins to these crack
                        spreads to assess our operating
                        performance relative to other
                        participants in our industry.

                       The refinery operating margin for
                        the three and six months ended
                        June 30, 2014 excludes losses on
                        commodity swaps of $2,389 and
                        $8,627, respectively, as well as
                        negative inventory effects of
                        $907 and $8,041, respectively.

                       The refinery operating margin for
                        the three and six months ended
                        June 30, 2013 excludes gains on
                        commodity swaps of $10,018 and
                        $9,994, respectively, as well as
                        positive inventory effects of
                        $3,830 and $6,794, respectively.

    (9)                 Refinery direct operating expense
                        is a per barrel measurement
                        calculated by dividing direct
                        operating expenses at our Big
                        Spring and Krotz Springs
                        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 approximately
                        $36,000 and $32,000 for the three
                        months and approximately $78,000
                        and $108,000 for the six months
                        ended June 30, 2014 and 2013,
                        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
                        asphalt that has been blended
                        with other materials necessary to
                        sell the asphalt as a finished
                        product.

                       Non-blended asphalt represents
                        base material asphalt and other
                        components that require
                        additional blending before being
    (18)                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.

    (20)                At June 30, 2014 we had 296 retail
                        convenience stores of which 285
                        sold fuel. At June 30, 2013 we
                        had 298 retail convenience stores
                        of which 286 sold fuel.

    (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.


Source: PR Newswire



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