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The latest news released by Alon USA Energy, Inc. (ALJ)
Updated: 54 min 53 sec ago

Alon USA Partners, LP Reports Second Quarter 2017 Results and Declares Quarterly Cash Distribution

Thu, 07/27/2017 - 16:27
Schedules conference call for July 28, 2017 at 10:00 a.m. Eastern

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.

 

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SOURCE Alon USA Partners, LP

Alon USA Partners Announces Second Quarter 2017 Earnings Release And Conference Call Schedule

Mon, 07/17/2017 - 15:30

DALLAS, July 17, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its second quarter 2017 financial results on Thursday, July 27, 2017 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, July 28, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

What:

Alon USA Partners Second Quarter 2017 Earnings Conference Call

When:

Friday, July 28, 2017 – 10:00 a.m. Eastern Time

Where:

Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com.

A telephonic replay of the conference call will be available through 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.

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.

   Contact:   

Keith Johnson


Vice President of Investor Relations


Delek US Holdings, Inc.  


615-435-1366

 

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SOURCE Alon USA Partners, LP

Alon USA Energy Stockholders Approve Merger Transaction

Wed, 06/28/2017 - 17:21

DALLAS, June 28, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that the stockholders of Alon have approved all proposals related to the previously announced merger transaction pursuant to which Delek US Holdings, Inc. ("Delek") will acquire all of the outstanding shares of Alon common stock which it does not already own in an all-stock transaction. At a special meeting held today by Alon, approximately 89% of Alon's outstanding shares and 79% of Alon's outstanding shares beneficially owned by holders of Alon common stock other than Delek and its affiliates voted to approve the adoption of the previously disclosed merger agreement and the transaction. Of the shares voted, approximately 99% were cast in favor of the proposal. The closing of the transaction is subject to approval by the stockholders of Delek at a special meeting of Delek stockholders on June 29, 2017. Alon expects the transaction to close effective as of July 1, 2017.

About Delek US Holdings, Inc.
Delek US Holdings, Inc. (NYSE: DK) is a diversified downstream energy company with assets in petroleum refining and logistics. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 155,000 barrels per day. Delek and its affiliates also own approximately 63 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP (NYSE: DKL) is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek currently owns approximately 47 percent of the outstanding common stock of Alon.

About Alon USA
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding the proposed merger with Alon, integration and transition plans, synergies, opportunities, anticipated future performance and financial position, and other factors.

Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: risks and uncertainties related to the expected timing and likelihood of completion of the proposed merger, including the timing, terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the possibility that stockholders of Delek may not approve the issuance of new shares of common stock in the merger, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Delek's common stock or Alon's common stock, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Delek and Alon to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies, uncertainty related to timing and amount of future share repurchases and dividend payments, risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the southern United States; and other risks contained in Delek's and Alon's filings with the United States Securities and Exchange Commission.

Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek and Alon undertake no obligation to update or revise any such forward-looking statements, except as required by applicable law or regulation.

Alon USA Investor/Media Relations Contacts:
Stacey Morris, Investor Relations Manager
Alon USA Energy, Inc.
972-367-3808

Investors: Jack Lascar
Dennard § Lascar Associates, LLC
713-529-6600

Media: Blake Lewis
Three Box Strategic Communications
214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-stockholders-approve-merger-transaction-300481574.html

SOURCE Alon USA Energy, Inc.

Delek US Holdings and Alon USA Energy Announce Form S-4 Registration Statement Declared Effective by SEC

Wed, 05/31/2017 - 07:30

BRENTWOOD, Tenn. and DALLAS, May 31, 2017 (GLOBE NEWSWIRE) -- Delek US Holdings, Inc. (NYSE:DK) (“Delek US”) and Alon USA Energy, Inc. (NYSE:ALJ) (“Alon”) today announced that, in connection with the proposed merger transaction between the two companies, the registration statement on Form S-4 has been declared effective by the Securities and Exchange Commission (“SEC”) and that each of Alon and Delek US has filed a definitive proxy statement with the SEC for the special meeting of their respective stockholders to vote on the previously announced merger transactions.

The special meeting of Delek US stockholders will be held on June 29, 2017, at 8:30 a.m. CT, at Franklin Marriott Cool Springs, Arabian Room, 700 Cool Springs Boulevard, Franklin, TN 37067. All Delek US common stockholders of record as of the close of business on May 26, 2017, which is the record date for the special meeting, will be entitled to vote their common shares at the special meeting.

The special meeting of Alon’s stockholders will be held on June 28, 2017, at 3:00 p.m. CT, at 12712 Park Central Drive, Conference Room 1, Dallas, Texas 75251. All Alon common stockholders of record as of the close of business on May 26, 2017, which is the record date for the special meeting, will be entitled to vote their common shares at the special meeting.

Delek US currently owns approximately 33.7 million shares of common stock of Alon, or approximately 47 percent of Alon’s shares outstanding. Under terms of the agreement, the owners of the remaining outstanding shares in Alon that Delek US does not currently own will receive a fixed exchange ratio of 0.5040 Delek US shares for each share of Alon, with cash paid in lieu of fractional shares.

This transaction was unanimously approved by the Special Committee of Alon’s board of directors and by the board of directors of Delek US. Additionally, the board of directors of Alon approved the transaction, excluding Delek employed directors which abstained from voting on this matter.  The transaction is expected to close on July 1, 2017, subject to certain closing conditions under the terms of the merger agreement, including receipt of the required approval of Delek US and Alon stockholders.

About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining and logistics.  The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 155,000 barrels per day.  Delek US Holdings, Inc. and its affiliates also own approximately 63 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP.  Delek Logistics Partners, LP (NYSE:DKL) is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.  Delek US Holdings, Inc. currently owns approximately 47 percent of the outstanding common stock of Alon USA Energy, Inc.

About Alon USA
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE:ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws.  These forward-looking statements include, but are not limited to, statements regarding the proposed merger with Alon, integration and transition plans, synergies, opportunities, anticipated future performance and financial position, and other factors.

Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: risks and uncertainties related to the expected timing and likelihood of completion of the proposed merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the possibility that stockholders of Delek US may not approve the issuance of new shares of common stock in the merger or that stockholders of Alon may not approve the merger agreement, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Delek US' common stock or Alon's common stock, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Delek US and Alon to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies, uncertainty related to timing and amount of future share repurchases and dividend payments,  risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the southern United States; and other risks contained in Delek US’ and Alon’s filings with the United States Securities and Exchange Commission.

Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved.  Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Delek US and Alon undertake no obligation to update or revise any such forward-looking statements, except as required by applicable law or regulation.

No Offer or Solicitation
This communication relates to a proposed business combination between Delek US and Alon. This announcement is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed transaction between Delek US and Alon. In connection with the proposed transaction, Delek Holdco filed a registration statement on Form S-4 with the SEC (Registration Statement No. 333-216298), which was declared effective by the SEC on May 26, 2017. Delek US and Alon have filed a joint proxy statement/prospectus and will file other relevant documents concerning the proposed merger with the SEC. Delek US and Alon began mailing the definitive joint proxy statement/prospectus to their respective security holders on May 30, 2017. The definitive joint proxy statement/prospectus, dated May 30, 2017, contains important information about Delek US, Alon, the proposed merger and related matters. This communication is not a substitute for the proxy statement, registration statement, proxy statement/prospectus or any other documents that Delek US or Alon may file with the SEC or send to stockholders in connection with the proposed transaction. STOCKHOLDERS OF DELEK US AND ALON ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT(S), REGISTRATION STATEMENT(S) AND/OR PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement(s) (when available) will be mailed to stockholders of Delek US and/or Alon, as applicable. Investors and security holders will be able to obtain copies of these documents, including the proxy statement/prospectus, and other documents filed with the SEC (when available) free of charge at the SEC's website, http://www.sec.gov. Copies of documents filed with the SEC by Delek US will be made available free of charge on Delek US’ website at http://www.delekus.com or by contacting Delek US’ Investor Relations Department by phone at 615-435-1366. Copies of documents filed with the SEC by Alon will be made available free of charge on Alon's website at http://www.alonusa.com or by contacting Alon's Investor Relations Department by phone at 972-367-3808.

Participants in the Solicitation
Delek US and its directors and executive officers, and Alon and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of Delek US common stock and Alon common stock in respect of the proposed transaction. Information about the directors and executive officers of Delek US is set forth in the proxy statement for Delek US’ 2017 Annual Meeting of Stockholders, which was filed with the SEC on April 6, 2017, and in the other documents filed after the date thereof by Delek US with the SEC. Information about the directors and executive officers of Alon is set forth in the Annual Report on Form 10-K/A, which was filed with the SEC on May 1, 2017, and in the other documents filed after the date thereof by Alon with the SEC. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.

Delek US Investor / Media Relations Contact: Keith Johnson Delek US Holdings, Inc. Vice President of Investor Relations 615-435-1366 Alon USA Investor/Media Relations Contacts: Stacey Morris, Investor Relations Manager Alon USA Energy, Inc. 972-367-3808 Investors: Jack Lascar Dennard § Lascar Associates, LLC 713-529-6600 Media: Blake Lewis Three Box Strategic Communications 214-635-3020

Alon USA Energy, Inc. Reports First Quarter 2017 Results

Mon, 05/08/2017 - 06:35
Declares Quarterly Cash Dividend Schedules conference call for May 9, 2017 at 12:30 p.m. Eastern

DALLAS, May 8, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the first quarter of 2017. Net income available to stockholders for the first quarter of 2017 was $7.3 million, or $0.10 per share, compared to net loss available to stockholders of $(35.5) million, or $(0.51) per share, for the same period last year. Excluding special items, Alon recorded net income available to stockholders of $8.8 million, or $0.12 per share, for the first quarter of 2017, compared to net loss available to stockholders of $(29.2) million, or $(0.42) per share, for the same period last year.

Alan Moret, CEO, commented, "We are very pleased with our strong operational performance in the first quarter of 2017, with both of our refineries setting quarterly total throughput records. Our operations were complemented by an improvement in our benchmark Gulf Coast crack spreads relative to the fourth quarter of 2016 and the same quarter last year. Our first quarter results also benefited from the reduction to RINs expense that was booked during the quarter. We have been encouraged by the positive trends we have seen in refining into the second quarter of 2017, including improved discounts for Midland-priced crudes and improved crack spreads.

"The Big Spring refinery achieved record quarterly total throughput of almost 78,000 barrels per day in the first quarter of 2017. The refinery operating margin of $10.32 per barrel benefited from a strong wholesale marketing environment. Direct operating expense was only $3.54 per barrel as a result of efficient operations. We expect total throughput at the Big Spring refinery to average 73,000 barrels per day for the second quarter of 2017 and 75,000 barrels per day for the full year of 2017.

"The Krotz Springs refinery ran very well in the first quarter of 2017, with total throughput exceeding 77,000 barrels per day setting a new record under our ownership. The refinery operating margin of $5.31 per barrel does not include the $27.7 million benefit from the renewable fuel standard exemption. As was previously announced, in February 2017 the EPA approved a small refinery exemption for the Krotz Springs refinery from the requirements of the renewable fuel standard for the 2016 calendar year. On an after-tax basis, the impact of the exemption was $19.2 million or $0.27 per share. The Krotz Springs refinery's direct operating expense of $3.21 per barrel was very low and reflects continued efforts to control costs at the refinery. We expect total throughput at the Krotz Springs refinery to average 75,000 barrels per day for the second quarter of 2017 and 74,000 barrels per day for the full year of 2017.

"Turning to our retail segment, our fuel sales volumes increased by 6.2 percent in the first quarter of 2017 relative to the same quarter last year, despite a lower store count in the first quarter of 2017. Same-store fuel sales volumes were up 6.7 percent in the first quarter of 2017 compared to the first quarter of 2016. We continue to expect this business to improve as activity in the Permian Basin accelerates and as summer driving season begins."

Shai Even, Senior Vice President and CFO, commented, "The profitability of our California renewable fuels facility in the first quarter of 2017 was negatively impacted by the expiration of the federal blender's tax credit on December 31, 2016. As a result, the facility generated a small operating loss in the first quarter of 2017. However, if the blender's tax credit is reinstated and becomes effective retroactively to the beginning of 2017, we will record additional pre-tax income of $8.8 million before the effect of non-controlling interest. Total throughput for the first quarter of 2017 averaged approximately 2,700 barrels per day."

FIRST QUARTER 2017

Special items reduced net income by $1.4 million for the first quarter of 2017 primarily as a result of employee retention expenses of $2.0 million and expenses related to the Delek merger of $2.0 million, partially offset by gains of $1.7 million related to an asphalt inventory adjustment and $0.5 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $0.4 million. Special items increased net loss by $6.3 million for the first quarter of 2016 primarily as a result of employee retention expenses of $4.7 million, unrealized losses of $3.3 million associated with commodity swaps and $2.1 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $3.8 million.

The combined total refinery average throughput for the first quarter of 2017 was 155,081 barrels per day ("bpd"), consisting of 77,754 bpd at the Big Spring refinery and 77,327 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 138,998 bpd for the first quarter of 2016, consisting of 67,536 bpd at the Big Spring refinery and 71,462 bpd at the Krotz Springs refinery. During the first quarter of 2017, both of the Big Spring and Krotz Springs refineries reported the highest total quarterly average throughput since their respective acquisitions. The reduced throughput at our Big Spring refinery during the first quarter of 2016 was the result of planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit. The reduced throughput at the Krotz Springs refinery during the first quarter of 2016 was the result of our election to reduce the crude rate in order to optimize the refinery yield.

Refinery operating margin at the Big Spring refinery was $10.32 per barrel for the first quarter of 2017 compared to $7.77 per barrel for the same period in 2016. This increase in operating margin was primarily due to a higher Gulf Coast 3/2/1 crack spread and a widening of the WTI Cushing to WTS spread, partially offset by the increased premium in WTI Midland compared to WTI Cushing, increased RINs costs and a reduced benefit from the contango market environment which increased the cost of crude.

Refinery operating margin at the Krotz Springs refinery was $5.31 per barrel for the first quarter of 2017 compared to $1.59 per barrel for the same period in 2016. This increase in operating margin was primarily due to a higher Gulf Coast 2/1/1 high sulfur diesel crack spread and reduced RINs costs, partially offset by the increased premium in WTI Midland compared to WTI Cushing and a reduced benefit from the contango market environment which increased the cost of crude.

In February 2017, the EPA approved a small refinery exemption for the Krotz Springs refinery from the requirements of the renewable fuel standard for the 2016 calendar year, resulting in a reduction to RINs expense of $27.7 million in the first quarter of 2017.

The average Gulf Coast 3/2/1 crack spread was $13.75 per barrel for the first quarter of 2017 compared to $11.24 per barrel for the same period in 2016. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $9.74 per barrel for the first quarter of 2017 compared to $6.74 per barrel for the same period in 2016.

The average WTI Cushing to WTI Midland spread for the first quarter of 2017 was $(0.64) per barrel compared to $(0.13) per barrel for the same period in 2016. The average WTI Cushing to WTS spread for the first quarter of 2017 was $1.27 per barrel compared to $(0.10) per barrel for the same period in 2016. The average LLS to WTI Cushing spread for the first quarter of 2017 was $1.58 per barrel compared to $1.60 per barrel for the same period in 2016. The average Brent to WTI Cushing spread for the first quarter of 2017 was $1.66 per barrel compared to $0.49 per barrel for the same period in 2016. The average Brent to LLS spread for the first quarter of 2017 was $(0.13) per barrel compared to $(0.89) per barrel for the same period in 2016.

The average RINs cost effect on the Big Spring refinery operating margin was $0.59 per barrel for the first quarter of 2017, compared to $0.13 per barrel for the same period in 2016. The average RINs cost effect on the Krotz Springs refinery operating margin, excluding the impact of the 2016 exemption, was $1.49 per barrel for the first quarter of 2017, compared to $1.60 per barrel for the same period in 2016.

The contango environment in the first quarter of 2017 created an average cost of crude benefit of $1.00 per barrel compared to an average cost of crude benefit of $1.83 per barrel for the same period in 2016.

Our California renewable fuels facility generated operating income (loss) of $(2.4) million for the first quarter of 2017, compared to $7.2 million for the first quarter of 2016. The decrease was primarily due to the expiration of the blender's tax credit on December 31, 2016.

Asphalt margins for the first quarter of 2017 were $78.45 per ton compared to $84.16 per ton for the same period in 2016. On a cash basis (i.e., excluding inventory effects), asphalt margins in the first quarter of 2017 were $74.39 per ton compared to $91.12 per ton in the first quarter of 2016.

Retail fuel margins decreased to 19.5 cents per gallon in the first quarter of 2017 from 19.9 cents per gallon in the first quarter of 2016. Retail fuel sales volume increased to 53.1 million gallons in the first quarter of 2017 from 50.0 million gallons in the first quarter of 2016.

Alon also announced today that its Board of Directors has declared the regular quarterly cash dividend of $0.15 per share. The dividend is payable on June 8, 2017 to stockholders of record at the close of business on May 22, 2017.

CONFERENCE CALL

Alon has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2017, at 12:30 p.m. Eastern Time (11:30 a.m. Central Time), to discuss the first quarter 2017 financial results. To access the call, please dial 877-407-0672, or 412-902-0003 for international callers, and ask for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com. A telephonic replay of the conference call will be available through May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660045#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Energy, Inc.

972-367-3808



Investors: Jack Lascar

Dennard § Lascar Associates, LLC

713-529-6600



Media: Blake Lewis
Lewis Public Relations
214-635-3020

- Tables to follow -

ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED
EARNINGS RELEASE

 

RESULTS OF OPERATIONS - FINANCIAL DATA

(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2016, IS UNAUDITED)

For the Three Months Ended


March 31,


2017


2016


(dollars in thousands, except per share
data)

STATEMENTS OF OPERATIONS DATA:




Net sales (1)

$

1,150,593



$

849,973


Operating costs and expenses:




Cost of sales

972,874



735,144


Direct operating expenses

64,242



68,617


Selling, general and administrative expenses (2)

49,225



48,701


Depreciation and amortization (3)

36,547



34,862


Total operating costs and expenses

1,122,888



887,324


Gain (loss) on disposition of assets

476



(2,088)


Operating income (loss)

28,181



(39,439)


Interest expense

(15,117)



(18,307)


Equity earnings (losses) of investees

(133)



378


Other income (loss), net

(89)



72


Income (loss) before income tax expense (benefit)

12,842



(57,296)


Income tax expense (benefit)

2,568



(21,236)


Net income (loss)

10,274



(36,060)


Net income (loss) attributable to non-controlling interest

2,947



(523)


Net income (loss) available to stockholders

$

7,327



$

(35,537)


Earnings (loss) per share, basic

$

0.10



$

(0.51)


Weighted average shares outstanding, basic (in thousands)

71,490



70,143


Earnings (loss) per share, diluted

$

0.10



$

(0.51)


Weighted average shares outstanding, diluted (in thousands)

71,577



70,143


Cash dividends per share

$

0.15



$

0.15


CASH FLOW DATA:




Net cash provided by (used in):




Operating activities

$

82,483



$

(29,351)


Investing activities

(13,239)



(47,017)


Financing activities

(19,417)



35,624


OTHER DATA:




Adjusted net income (loss) available to stockholders (4)

$

8,773



$

(29,233)


Adjusted earnings (loss) per share (4)

$

0.12



$

(0.42)


Adjusted EBITDA (5)

$

64,030



$

1,294


Capital expenditures (6)

13,067



23,446


Capital expenditures for turnarounds and catalysts

1,349



16,610





March 31,
2017


December 31,
2016


(dollars in thousands)

BALANCE SHEET DATA (end of period):




Cash and cash equivalents

$

186,129



$

136,302


Working capital (7)

2,976



25,789


Total assets (7)

2,112,204



2,095,301


Total debt

516,319



527,966


Total debt less cash and cash equivalents

330,190



391,664


Total equity

581,345



582,413


 

REFINING AND MARKETING SEGMENT


For the Three Months Ended


March 31,


2017


2016


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

STATEMENTS OF OPERATIONS DATA:




Net sales (8)

$

1,006,629



$

696,613


Operating costs and expenses:




Cost of sales

871,482



626,036


Direct operating expenses

57,654



62,793


Selling, general and administrative expenses

21,617



18,275


Depreciation and amortization

31,353



29,784


Total operating costs and expenses

982,106



736,888


Gain (loss) on disposition of assets

2



(2,088)


Operating income (loss)

$

24,525



$

(42,363)


KEY OPERATING STATISTICS:




Per barrel of throughput:




Refinery operating margin – Big Spring (9)

$

10.32



$

7.77


Refinery operating margin – Krotz Springs (9)

5.31



1.59


California renewable fuel operating margin (10)

14.96



153.64


Refinery direct operating expense – Big Spring (11)

3.54



4.07


Refinery direct operating expense – Krotz Springs (11)

3.21



3.83


California renewable fuel direct operating expense (11)

14.56



56.41


Capital expenditures

$

6,554



$

18,559


Capital expenditures for turnarounds and catalysts

1,349



16,610


PRICING STATISTICS:




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




Gulf Coast (12)

$

13.75



$

11.24


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




Gulf Coast high sulfur diesel (12)

$

9.74



$

6.74


WTI Cushing crude oil (per barrel)

$

51.78



$

33.30


Crude oil differentials (per barrel):




WTI Cushing less WTI Midland (13)

$

(0.64)



$

(0.13)


WTI Cushing less WTS (13)

1.27



(0.10)


LLS less WTI Cushing (13)

1.58



1.60


Brent less WTI Cushing (13)

1.66



0.49


Brent less LLS (13)

(0.13)



(0.89)


Product prices (dollars per gallon):




Gulf Coast unleaded gasoline

$

1.56



$

1.07


Gulf Coast ultra-low sulfur diesel

1.57



1.03


Gulf Coast high sulfur diesel

1.45



0.91


Natural gas (per MMBtu)

3.07



1.98


 

THROUGHPUT AND PRODUCTION DATA:

BIG SPRING REFINERY

For the Three Months Ended

March 31,


2017


2016


bpd


%


bpd


%

Refinery throughput:








WTS crude

30,301


39.0


36,554


54.1

WTI crude

42,877


55.1


27,760


41.1

Blendstocks

4,576


5.9


3,222


4.8

Total refinery throughput (14)

77,754


100.0


67,536


100.0

Refinery production:








Gasoline

38,690


49.9


34,100


50.5

Diesel/jet

28,871


37.2


22,682


33.6

Asphalt

2,893


3.7


3,148


4.6

Petrochemicals

4,530


5.8


3,617


5.3

Other

2,633


3.4


4,027


6.0

Total refinery production (15)

77,617


100.0


67,574


100.0

Refinery utilization (16)



100.2%




93.2%



THROUGHPUT AND PRODUCTION DATA:

KROTZ SPRINGS REFINERY

For the Three Months Ended

March 31,


2017


2016


bpd


%


bpd


%

Refinery throughput:








WTI crude

22,633


29.3


13,797


19.3

Gulf Coast sweet crude

49,958


64.6


49,350


69.1

Blendstocks

4,736


6.1


8,315


11.6

Total refinery throughput (14)

77,327


100.0


71,462


100.0

Refinery production:








Gasoline

38,255


48.7


36,274


49.7

Diesel/jet

30,772


39.1


26,989


37.0

Heavy Oils

1,244


1.6


1,534


2.1

Other

8,339


10.6


8,157


11.2

Total refinery production (15)

78,610


100.0


72,954


100.0

Refinery utilization (16)



98.1%




85.3%



THROUGHPUT AND PRODUCTION DATA:

CALIFORNIA RENEWABLE FUELS FACILITY

For the Three Months Ended

March 31,


2017


2016


bpd


%


bpd


%

Throughput:








Tallow/vegetable oils

2,361


88.5


2,606


100.0

Other

305


11.5



Total throughput (14)

2,666


100.0


2,606


100.0

Production:








Renewable gasoline

300


11.5



Renewable diesel

2,107


80.6


1,994


81.0

Renewable jet

150


5.7


260


10.6

Naphtha

57


2.2


208


8.4

Total production (15)

2,614


100.0


2,462


100.0

 

ASPHALT SEGMENT


For the Three Months Ended


March 31,


2017


2016


(dollars in thousands, except per ton
data)

STATEMENTS OF OPERATIONS DATA:




Net sales (17)

$

44,821



$

53,499


Operating costs and expenses:




Cost of sales (17) (18)

36,283



43,865


Direct operating expenses

6,588



5,824


Selling, general and administrative expenses

2,212



3,198


Depreciation and amortization

1,219



1,260


Total operating costs and expenses

46,302



54,147


Operating loss (21)

$

(1,481)



$

(648)


KEY OPERATING STATISTICS:




Blended asphalt sales volume (tons in thousands) (19)

65



85


Non-blended asphalt sales volume (tons in thousands) (20)

22



29


Blended asphalt sales price per ton (19)

$

427.98



$

413.78


Non-blended asphalt sales price per ton (20)

163.86



145.17


Asphalt margin per ton (21)

78.45



84.16


Capital expenditures

$

1,482



$

740




RETAIL SEGMENT


For the Three Months Ended


March 31,


2017


2016


(dollars in thousands, except per gallon
data)

STATEMENTS OF OPERATIONS DATA:




Net sales (1)

$

190,143



$

162,971


Operating costs and expenses:




Cost of sales (18)

156,109



128,353


Selling, general and administrative expenses

25,203



27,037


Depreciation and amortization

3,291



3,399


Total operating costs and expenses

184,603



158,789


Gain on disposition of assets

474




Operating income

$

6,014



$

4,182


KEY OPERATING STATISTICS:




Number of stores (end of period) (22)

304



309


Retail fuel sales (thousands of gallons)

53,101



50,005


Retail fuel sales (thousands of gallons per site per month) (22)

60



56


Retail fuel margin (cents per gallon) (23)

19.5



19.9


Retail fuel sales price (dollars per gallon) (24)

$

2.14



$

1.70


Merchandise sales

$

76,332



$

77,825


Merchandise sales (per site per month) (22)

$

84



$

84


Merchandise margin (25)

30.9

%


31.5

%

Capital expenditures

$

4,945



$

2,711




(1)

Includes excise taxes on sales by the retail segment of $20,725 and $19,525 for the three months ended March 31, 2017 and 2016, respectively.



(2)

Includes corporate headquarters selling, general and administrative expenses of $193 and $191 for the three months ended March 31, 2017 and 2016, respectively, which are not allocated to our three operating segments.



(3)

Includes corporate depreciation and amortization of $684 and $419 for the three months ended March 31, 2017 and 2016, respectively, which are not allocated to our three operating segments.



(4)

The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding after-tax employee retention expense, after-tax expenses related to Delek merger, after-tax gains on asphalt inventory adjustment, after-tax unrealized losses on commodity swaps and after-tax (gain) loss on disposition of assets. Adjusted net income (loss) available to stockholders is not a recognized measurement under GAAP; however, the amounts included in adjusted net income (loss) available to stockholders are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) per share, excluding these items, is useful to investors because it provides a more meaningful measurement for evaluation of our Company's operating results.




For the Three Months Ended



March 31,



2017


2016



(dollars in thousands)


Net income (loss) available to stockholders

$

7,327



$

(35,537)



Exclude adjustments:





Employee retention expense

2,000



4,700



Expenses related to Delek merger

2,000





(Gain) on asphalt inventory adjustment

(1,713)





Unrealized losses on commodity swaps



3,333



(Gain) loss on disposition of assets

(476)



2,088



Total adjustments

1,811



10,121



Income tax impact related to adjustments

(362)



(3,751)



Non-controlling interest impact related to adjustments

(3)



(66)



Adjusted net income (loss) available to stockholders

$

8,773



$

(29,233)



Adjusted earnings (loss) per share

$

0.12



$

(0.42)





(5)

Adjusted EBITDA represents earnings before net income (loss) attributable to non-controlling interest, income tax expense (benefit), interest expense, depreciation and amortization, (gain) loss on disposition of assets and unrealized losses on commodity swaps. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of net income (loss) attributable to non-controlling interest, income tax expense (benefit), interest expense, (gain) loss on disposition of assets, unrealized losses on commodity swaps and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.




Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:








Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;




Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;




Adjusted EBITDA does not reflect the prior claim that non-controlling interest have on the income generated by non-wholly-owned subsidiaries;




Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and




Our calculation of Adjusted EBITDA may differ from EBITDA calculations of other companies in our industry, limiting its usefulness as a comparative measure.




Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.




The following table reconciles net income (loss) available to stockholders to Adjusted EBITDA for the three months ended March 31, 2017 and 2016:







For the Three Months Ended



March 31,



2017


2016



(dollars in thousands)


Net income (loss) available to stockholders

$

7,327



$

(35,537)



Net income (loss) attributable to non-controlling interest

2,947



(523)



Income tax expense (benefit)

2,568



(21,236)



Interest expense

15,117



18,307



Depreciation and amortization

36,547



34,862



(Gain) loss on disposition of assets

(476)



2,088



Unrealized losses on commodity swaps



3,333



Adjusted EBITDA

$

64,030



$

1,294





Adjusted EBITDA does not exclude gains of $1,713 and $0 for the three months ended March 31, 2017 and 2016, respectively, resulting from a price adjustment related to asphalt inventory.



(6)

Includes corporate capital expenditures of $86 and $1,436 for the three months ended March 31, 2017 and 2016, respectively, which are not allocated to our three operating segments.



(7)

During the three months ended March 31, 2017, we adopted the FASB's recently issued accounting guidance simplifying the presentation of deferred income taxes. As a result of adopting this guidance, our current deferred income tax asset that had previously been included as a current asset in our consolidated balance sheets has been reclassified as a reduction of our non-current deferred income tax liability. These changes have been applied retrospectively to all periods presented.



(8)

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



(9)

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




The refinery operating margin for the three months ended March 31, 2017 excludes a benefit of $27,746 related to the EPA approval of a small refinery exemption for the Krotz Springs refinery from the requirements of the renewable fuel standard for the 2016 calendar year. The refinery operating margin for the three months ended March 31, 2016 excludes realized and unrealized gains on commodity swaps of $366.



(10)

The California renewable fuels facility operating margin is a per barrel measurement calculated by dividing the facility's margin between net sales and cost of sales by the facility's throughput volumes. Included in net sales are environmental credits in the form of RINs, low-carbon fuel standards credits and blender's tax credits, when effective, generated by the facility.




During the three months ended March 31, 2017, we received no benefit from the federal blender's tax credit as this legislation expired on December 31, 2016. However, if the blender's tax credit is reinstated and becomes effective retroactive to the beginning of 2017, we will record additional pre-tax income of $8,778, or $37.00 per barrel of throughput, related to product sales during the first quarter of 2017 at the California renewable fuels facility.



(11)

Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses at our refineries by the applicable refinery's total throughput volumes.



(12)

We compare our Big Spring refinery's operating margin to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that three barrels of WTI Cushing crude oil are converted, or cracked, into two barrels of Gulf Coast conventional gasoline and one barrel of Gulf Coast ultra-low sulfur diesel.




We compare our Krotz Springs refinery's operating margin to the Gulf Coast 2/1/1 high sulfur diesel crack spread. A Gulf Coast 2/1/1 high sulfur diesel crack spread is calculated assuming that two barrels of LLS crude oil are converted into one barrel of Gulf Coast conventional gasoline and one barrel of Gulf Coast high sulfur diesel.



(13)

The WTI Cushing less WTI Midland spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTI Midland crude oil. The WTI Cushing less WTS, or sweet/sour, spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTS crude oil. The LLS less WTI Cushing spread represents the differential between the average price per barrel of LLS crude oil and the average price per barrel of WTI Cushing crude oil. The Brent less WTI Cushing spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of WTI Cushing crude oil. The Brent less LLS spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of LLS crude oil.



(14)

Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. Total throughput for the California renewable fuels facility represents the total barrels per day of tallow and vegetable oils used by the facility for the period following March 1, 2016.



(15)

Total refinery production represents the barrels per day of various products produced from processing crude and other refinery feedstocks through the crude units and other conversion units at the refineries. Total production for the California renewable fuels facility represents the total barrels per day produced from processing tallow and vegetable oils through the facility's units for the period following March 1, 2016.



(16)

Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds.



(17)

Net sales and cost of sales include asphalt purchases sold as part of a supply and offtake arrangement of $13,397 and $14,118 for the three months ended March 31, 2017 and 2016, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics.



(18)

Cost of sales includes intersegment purchases of asphalt blends and motor fuels from our refining and marketing segment at prices which approximate wholesale market prices. These intersegment purchases are eliminated through consolidation of our financial statements.



(19)

Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product.



(20)

Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product.



(21)

Asphalt margin is a per ton measurement calculated by dividing the margin between net sales and cost of sales by the total sales volume. Asphalt margins are used in the asphalt industry to measure operating results related to asphalt sales.




Asphalt margin excludes gains of $1,713 and $0 for the three months ended March 31, 2017 and 2016, respectively, resulting from a price adjustment related to asphalt inventory. These gains are included in operating loss of the asphalt segment.



(22)

At March 31, 2017, we had 304 retail convenience stores of which 294 sold fuel. At March 31, 2016, we had 309 retail convenience stores of which 298 sold fuel.



(23)

Retail fuel margin represents the difference between retail fuel sales revenue and the net cost of purchased retail fuel, including transportation costs and associated excise taxes, expressed on a cents-per-gallon basis. Retail fuel margins are frequently used in the retail industry to measure operating results related to retail fuel sales.



(24)

Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores.



(25)

Merchandise margin represents the difference between merchandise sales revenues and the delivered cost of merchandise purchases, net of rebates and commissions, expressed as a percentage of merchandise sales revenues. Merchandise margins, also referred to as in-store margins, are commonly used in the retail industry to measure in-store, or non-fuel, operating results.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-first-quarter-2017-results-300452872.html

SOURCE Alon USA Energy, Inc.

Alon USA Partners, LP Reports First Quarter 2017 Results and Declares Quarterly Cash Distribution

Mon, 05/08/2017 - 06:30
Schedules conference call for May 9, 2017 at 11:30 a.m. Eastern

DALLAS, May 8, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the first quarter of 2017. Net income for the first quarter of 2017 was $20.1 million, or $0.32 per unit, compared to net loss of $(8.6) million, or $(0.14) per unit, for the same period last year.

The Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a cash distribution for the first quarter of 2017 of $0.38 per unit payable on May 30, 2017 to common unitholders of record at the close of business on May 22, 2017, based on cash available for distribution of $23.7 million.

Alan Moret, CEO, commented, "We are pleased with our performance in the first quarter of 2017, which resulted in cash available for distribution of $0.38 per unit. Our first quarter results benefited from an improvement in our benchmark Gulf Coast crack spread relative to the fourth quarter of 2016 and the same quarter last year. The improvement in the crack spread was complemented by strong operations, with the Big Spring refinery setting a new record for quarterly total throughput. We have been encouraged by the positive trends we have seen in refining into the second quarter of 2017, including attractive discounts for Midland-priced crudes and improved crack spreads."

Shai Even, President and CFO, commented, "The Big Spring refinery achieved record quarterly total throughput of almost 78,000 barrels per day in the first quarter of 2017. The refinery operating margin of $10.32 per barrel benefited from a strong wholesale marketing environment. Direct operating expense was only $3.54 per barrel as a result of efficient operations in the first quarter.

"We expect total throughput at the Big Spring refinery to average 73,000 barrels per day for the second quarter of 2017 and 75,000 barrels per day for the full year of 2017. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the second quarter of 2017."

FIRST QUARTER 2017

Refinery operating margin was $10.32 per barrel for the first quarter of 2017 compared to $7.77 per barrel for the same period in 2016. This increase in operating margin was primarily due to a higher Gulf Coast 3/2/1 crack spread and a widening of the WTI Cushing to WTS spread, partially offset by the increased premium in WTI Midland compared to WTI Cushing, increased RINs costs and a reduced benefit from the contango market environment which increased the cost of crude. Refinery average throughput for the first quarter of 2017 was 77,754 barrels per day ("bpd") compared to 67,536 bpd for the same period in 2016. The reduced throughput during the first quarter of 2016 was the result of planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit.

The average Gulf Coast 3/2/1 crack spread was $13.75 per barrel for the first quarter of 2017 compared to $11.24 per barrel for the first quarter of 2016. The average WTI Cushing to WTI Midland spread for the first quarter of 2017 was $(0.64) per barrel compared to $(0.13) per barrel for the first quarter of 2016. The average WTI Cushing to WTS spread for the first quarter of 2017 was $1.27 per barrel compared to $(0.10) per barrel for the first quarter of 2016. The average Brent to WTI Cushing spread for the first quarter of 2017 was $1.66 per barrel compared to $0.49 per barrel for the same period in 2016. The contango environment in the first quarter of 2017 created an average cost of crude benefit of $1.00 per barrel compared to an average cost of crude benefit of $1.83 per barrel for the same period in 2016. The average RINs cost effect on refinery operating margin was $0.59 per barrel in the first quarter of 2017, compared to $0.13 per barrel for the same period in 2016.

CONFERENCE CALL

Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2017 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the first quarter 2017 financial results. To access the call, please dial 877-404-9648, or 412-902-0030 for international callers, and ask for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners' website at www.alonpartners.com. A telephonic replay of the conference call will be available through May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660047#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

Any statements in this release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Partners GP, LLC
972-367-3808




Investors: Jack Lascar
Dennard § Lascar Associates, LLC

713-529-6600




Media: Blake Lewis
Lewis Public Relations
214-635-3020

- Tables to follow -

ALON USA PARTNERS, LP AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE










RESULTS OF OPERATIONS - FINANCIAL DATA

(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2016, IS UNAUDITED)

For the Three Months Ended


March 31,


2017


2016


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

STATEMENTS OF OPERATIONS DATA:




Net sales (1)

$

544,532



$

368,009


Operating costs and expenses:




Cost of sales

470,471



319,333


Direct operating expenses

24,760



25,044


Selling, general and administrative expenses

6,764



7,309


Depreciation and amortization

14,229



14,206


Total operating costs and expenses

516,224



365,892


Operating income

28,308



2,117


Interest expense

(7,845)



(10,587)


Other income (loss), net

(95)



84


Income (loss) before state income tax expense

20,368



(8,386)


State income tax expense

256



176


Net income (loss)

$

20,112



$

(8,562)


Earnings (loss) per unit

$

0.32



$

(0.14)


Weighted average common units outstanding (in thousands)

62,520



62,510


Cash distribution per unit

$

0.11



$

0.08


CASH FLOW DATA:




Net cash provided by (used in):




Operating activities

$

41,772



$

6,662


Investing activities

(5,875)



(10,793)


Financing activities

(387)



(5,626)


OTHER DATA:




Adjusted EBITDA (2)

$

42,442



$

16,407


Capital expenditures

5,026



8,112


Capital expenditures for turnarounds and catalysts

849



2,681


KEY OPERATING STATISTICS:




Per barrel of throughput:




Refinery operating margin (3)

$

10.32



$

7.77


Refinery direct operating expense (4)

3.54



4.07


PRICING STATISTICS:




Crack spreads (per barrel):




Gulf Coast 3/2/1 (5)

$

13.75



$

11.24


WTI Cushing crude oil (per barrel)

$

51.78



$

33.30


Crude oil differentials (per barrel):




WTI Cushing less WTI Midland (6)

$

(0.64)



$

(0.13)


WTI Cushing less WTS (6)

1.27



(0.10)


Brent less WTI Cushing (6)

1.66



0.49


Product price (dollars per gallon):




Gulf Coast unleaded gasoline

$

1.56



$

1.07


Gulf Coast ultra-low sulfur diesel

1.57



1.03


Natural gas (per MMBtu)

3.07



1.98





March 31,
2017


December 31,
2016


 (dollars in thousands)

BALANCE SHEET DATA (end of period):


Cash and cash equivalents

$

109,034



$

73,524


Working capital

(92,271)



(73,563)


Total assets

719,487



695,637


Total debt

236,152



236,319


Total debt less cash and cash equivalents

127,118



162,795


Total partners' equity

116,761



103,503



 


THROUGHPUT AND PRODUCTION DATA:

For the Three Months Ended

March 31,


2017


2016


bpd


%


bpd


%

Refinery throughput:








WTS crude

30,301


39.0


36,554


54.1

WTI crude

42,877


55.1


27,760


41.1

Blendstocks

4,576


5.9


3,222


4.8

Total refinery throughput (7)

77,754


100.0


67,536


100.0

Refinery production:







Gasoline

38,690


49.9


34,100


50.5

Diesel/jet

28,871


37.2


22,682


33.6

Asphalt

2,893


3.7


3,148


4.6

Petrochemicals

4,530


5.8


3,617


5.3

Other

2,633


3.4


4,027


6.0

Total refinery production (8)

77,617


100.0


67,574


100.0

Refinery utilization (9)



100.2%




93.2%









 







CASH AVAILABLE FOR DISTRIBUTION DATA:


For the Three
Months Ended



March 31, 2017



(dollars in
thousands, except
per unit data)




Net sales (1)


$

544,532


Operating costs and expenses:



Cost of sales


470,471


Direct operating expenses


24,760


Selling, general and administrative expenses


6,764


Depreciation and amortization


14,229


Total operating costs and expenses


516,224


Operating income


28,308


Interest expense


(7,845)


Other loss, net


(95)


Income before state income tax expense


20,368


State income tax expense


256


Net income


20,112


Adjustments to reconcile net income to Adjusted EBITDA:



Interest expense


7,845


State income tax expense


256


Depreciation and amortization


14,229


Adjusted EBITDA (2)


42,442


Adjustments to reconcile Adjusted EBITDA to cash available for distribution:



less: Maintenance/growth capital expenditures


5,026


less: Turnaround and catalyst replacement capital expenditures


849


less: Major turnaround reserve for future years (a)


3,500


less: Principal payments


625


less: State income tax payments


256


less: Interest paid in cash


8,465


Cash available for distribution


$

23,721





Common units outstanding (in 000's)


62,520





Cash available for distribution per unit


$

0.38





a.

Major turnaround reserve for future years was increased from $1,500 in prior quarters to $3,500 in the first quarter of 2017 to reflect an increase in the estimated cost of the next major five-year turnaround from $30,000 to $50,000.

________________




(1)

Includes sales to related parties of $91,000 and $63,110 for the three months ended March 31, 2017 and 2016, respectively.





(2)

Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of state income tax expense, interest expense and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.






Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:



Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;  



Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;  



Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and



Our calculation of Adjusted EBITDA may differ from EBITDA calculations of other companies in our industry, limiting its usefulness as a comparative measure.







Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.






The following table reconciles net income (loss) to Adjusted EBITDA for the three months ended March 31, 2017 and 2016:


 

















For the Three Months Ended




March 31,




2017


2016




(dollars in thousands)



Net income (loss)

$

20,112



$

(8,562)




State income tax expense

256



176




Interest expense

7,845



10,587




Depreciation and amortization

14,229



14,206




Adjusted EBITDA

$

42,442



$

16,407







(3)

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




Refinery operating margin for the three months ended March 31, 2017 and 2016 excludes gains related to inventory adjustments of $1,842 and $946, respectively.



(4)

Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses by total throughput volumes.



(5)

We compare our refinery operating margin to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that three barrels of WTI Cushing crude oil are converted, or cracked, into two barrels of Gulf Coast conventional gasoline and one barrel of Gulf Coast ultra-low sulfur diesel.



(6)

The WTI Cushing less WTI Midland spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTI Midland crude oil. The WTI Cushing less WTS, or sweet/sour, spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTS crude oil. The Brent less WTI Cushing spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of WTI Cushing crude oil.



(7)

Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process.



(8)

Total refinery production represents the barrels per day of various refined products produced from processing crude and other refinery feedstocks through the crude units and other conversion units.



(9)

Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds.


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-lp-reports-first-quarter-2017-results-and-declares-quarterly-cash-distribution-300452874.html

SOURCE Alon USA Partners, LP

Alon USA Energy Announces First Quarter 2017 Earnings Release And Conference Call Schedule

Wed, 04/12/2017 - 17:15

DALLAS, April 12, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its first quarter 2017 financial results on Monday, May 8, 2017 before the market opens. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2016 at 12:30 p.m. Eastern Time (11:30 a.m. Central Time).

What:

Alon USA Energy, Inc. First Quarter 2017 Earnings Conference Call

When:

Tuesday, May 9, 2017 - 12:30 p.m. Eastern Time

Where:

Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com.

A telephonic replay of the conference call will be available through May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660045#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard • Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 3,000 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Contacts: 

Stacey Morris


Investor Relations Manager


Alon USA Energy, Inc.


972-367-3808




Investors: Jack Lascar


Dennard • Lascar Associates, LLC         


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-announces-first-quarter-2017-earnings-release-and-conference-call-schedule-300439107.html

SOURCE Alon USA Energy, Inc.

Alon USA Partners Announces First Quarter 2017 Earnings Release And Conference Call Schedule

Wed, 04/12/2017 - 17:09

DALLAS, April 12, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its first quarter 2017 financial results on Monday, May 8, 2017 before the market opens. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, May 9, 2017 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time).

What:

Alon USA Partners First Quarter 2017 Earnings Conference Call

When:

Tuesday, May 9, 2017 - 11:30 a.m. Eastern Time

Where:

Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com.

A telephonic replay of the conference call will be available through May 16, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13660047#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard • Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts:

Stacey Morris


Investor Relations Manager


Alon USA Partners GP, LLC


972-367-3808




Investors:  Jack Lascar


Dennard • Lascar Associates, LLC


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-announces-first-quarter-2017-earnings-release-and-conference-call-schedule-300439102.html

SOURCE Alon USA Partners, LP

Alon USA Partners Announces The Availability Of Its Annual Report

Wed, 03/01/2017 - 15:37

DALLAS, March 1, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that its annual report on Form 10-K for the fiscal year ended December 31, 2016 is now available to unitholders. Unitholders may access the annual report on the Alon Partners website at www.alonpartners.com under the "Financials" tab. Copies of the annual report are available free of charge to unitholders upon request to Alon USA Partners, LP, Attention: Investor Relations, 12700 Park Central Drive, Suite 1600, Dallas, Texas 75251.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts:

Stacey Morris

Investor Relations Manager

Alon USA Partners GP, LLC

972-367-3808

Investors:  Jack Lascar

Dennard ▪ Lascar Associates, LLC         

713-529-6600

Media:  Blake Lewis

Lewis Public Relations

214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-announces-the-availability-of-its-annual-report-300416288.html

SOURCE Alon USA Partners, LP

Alon USA Energy Reports Fourth Quarter and Full Year 2016 Results

Thu, 02/23/2017 - 16:23
Declares Quarterly Cash Dividend Schedules conference call for February 24, 2017 at 11:30 a.m. Eastern

DALLAS, Feb. 23, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the fourth quarter and year ended December 31, 2016. Net loss available to stockholders for the fourth quarter of 2016 was $(18.1) million, or $(0.25) per share, compared to net loss available to stockholders of $(52.5) million, or $(0.75) per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(14.3) million, or $(0.20) per share, for the fourth quarter of 2016, compared to net loss available to stockholders of $(14.6) million, or $(0.21) per share, for the same period last year.

Net loss available to stockholders for the full year 2016 was $(82.8) million, or $(1.17) per share, compared to net income available to stockholders of $52.8 million, or $0.76 per share, for 2015. Excluding special items, Alon recorded net loss available to stockholders of $(65.1) million, or $(0.92) per share, for the full year 2016, compared to net income available to stockholders of $95.5 million, or $1.37 per share, for 2015.

As previously announced, in January 2017, Delek US and Alon entered into a definitive agreement under which Delek will acquire the outstanding shares of Alon common stock that Delek does not already own in an all-stock transaction. The transaction is expected to close in the first half of 2017, subject to customary closing conditions, including regulatory approval and approval by Delek US shareholders and Alon shareholders. We believe the economies of scale, financial strength and synergies generated through this merger create the opportunity to drive long-term value for shareholders.

In February 2017, the Krotz Springs refinery received approval from the EPA for a small refinery exemption from the requirements of the renewable fuel standard for the 2016 calendar year. As a result, we expect to book a reduction in RINs expense of $29.0 million in the first quarter of 2017, based on a weighted average RINs price per gallon of $0.58.

Alan Moret, CEO, commented, "Our diversification proved to be an asset for us in 2016, as positive contributions from our asphalt segment, retail segment and our renewable fuels facility in California helped offset the impact of weak crack spreads, high RIN prices and narrower crude differentials on our refining results. Our asphalt business operating income more than doubled in 2016 relative to 2015, as sales volumes increased by 19 percent and direct operating expenses were reduced by 8 percent. Our renewable fuels facility, which began operations in February 2016, produced approximately 30 million gallons of renewable fuel in 2016. We have been encouraged by the improvement in refining fundamentals that we saw at the end of 2016 and into 2017, including the widening of domestic crude discounts relative to Brent. We also are pleased to see RIN prices decline.

"The Big Spring refinery ran well in the fourth quarter, achieving total throughput of almost 77,000 barrels per day. The refinery also set a new quarterly record by processing over 44,000 barrels per day of WTI Midland in the quarter, further demonstrating the flexibility of the asset. The fourth quarter refinery operating margin of $7.65 per barrel is net of a negative impact of approximately $1.10 per barrel related to RINs costs. Operating expense in the quarter was low at $3.39 per barrel. As we've said before, we do not expect any major maintenance at Big Spring in 2017. We expect total throughput at the Big Spring refinery to average 77,000 barrels per day for the first quarter of 2017 and 75,000 barrels per day for the full year of 2017.

"The Krotz Springs refinery also ran well in the fourth quarter with total throughput of 70,000 barrels per day. The refinery operating margin of $3.40 per barrel was negatively impacted by approximately $1.60 per barrel due to the high cost of RINs. Operating expense in the fourth quarter was low at $3.44 per barrel. We expect total throughput at the Krotz Springs refinery to average 77,000 barrels per day for the first quarter of 2017 and 74,000 barrels per day for the full year of 2017.

"Our asphalt business performed exceptionally well in what is typically a seasonally weak quarter. Asphalt operating income of $3.2 million in the fourth quarter was driven by sales volumes of 133 thousand tons and an attractive margin of $108 per ton.

"Our renewable fuels facility in California had its most profitable quarter since operations began, generating $9 million of operating income in the fourth quarter. This was achieved in spite of reduced throughput of 2,400 barrels per day due to maintenance being done by a third-party supplier in the quarter. We expect total throughput at our renewable fuels facility to average 2,500 barrels per day for the first quarter of 2017 and 2,600 barrels per day for the full year of 2017.

"Our retail results were negatively impacted by seasonal weakness and continued economic headwinds in the Permian Basin. That said, we are encouraged by the increase in rig activity in the Permian, and we believe our retail segment is well positioned to benefit as the West Texas economy improves."

FOURTH QUARTER 2016

Special items increased net loss by $3.8 million for the fourth quarter of 2016 primarily as a result of employee retention expenses of $2.0 million, unrealized losses of $3.8 million associated with commodity swaps, losses of $0.7 million related to an asphalt inventory adjustment and $0.1 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.8 million. Special items reduced net income by $37.9 million for the fourth quarter of 2015 primarily as a result of a loss on impairment of goodwill of $39.0 million, losses of $1.7 million related to an asphalt inventory adjustment, employee retention expenses of $1.3 million and unrealized losses of $1.1 million associated with commodity swaps, partially offset by insurance recoveries net of professional fees of $3.6 million and $1.3 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $0.2 million.

The combined total refinery average throughput for the fourth quarter of 2016 was 146,725 barrels per day ("bpd"), compared to a combined total refinery average throughput of 116,995 bpd for the fourth quarter of 2015. The Big Spring refinery average throughput for the fourth quarter of 2016 was 76,654 bpd, compared to 75,925 bpd for the fourth quarter of 2015. The Krotz Springs refinery average throughput for the fourth quarter of 2016 was 70,071 bpd, compared to 41,070 bpd for the fourth quarter of 2015. During the fourth quarter of 2016, the Krotz Springs refinery throughput was impacted by our election to reduce the crude rate in order to optimize the refinery yield. During the fourth quarter of 2015, throughput at our Krotz Springs refinery was lower as a result of downtime necessary to complete the planned major turnaround.

Refinery operating margin at the Big Spring refinery was $7.65 per barrel for the fourth quarter of 2016 compared to $10.02 per barrel for the same period in 2015. This decrease in operating margin was primarily due to increased RINs costs, a reduced benefit from the contango market environment which increased the cost of crude and unfavorable differences in Group III to Gulf Coast gasoline and diesel prices in the fourth quarter of 2016 compared to the same period in 2015.

Refinery operating margin at the Krotz Springs refinery was $3.40 per barrel for the fourth quarter of 2016 compared to $1.55 per barrel for the same period in 2015. During the fourth quarter of 2016, the Krotz Springs operating margin was favorably impacted by a higher Gulf Coast 2/1/1 high sulfur diesel crack spread and a widening of the WTI Cushing to WTI Midland spread, partially offset by a narrowing of the LLS to WTI Cushing spread, increased RINs costs and a reduced benefit from the contango market environment which increased the cost of crude. During the fourth quarter of 2015, the Krotz Springs operating margin reflects the negative impact of the planned major turnaround on refinery production.

The average Gulf Coast 3/2/1 crack spread was $12.83 per barrel for the fourth quarter of 2016 compared to $10.90 per barrel for the fourth quarter of 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $8.63 per barrel for the fourth quarter of 2016 compared to $7.13 per barrel for the fourth quarter of 2015.

The average WTI Cushing to WTI Midland spread for the fourth quarter of 2016 was $0.25 per barrel compared to $(0.20) per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the fourth quarter of 2016 was $1.33 per barrel compared to $(0.26) per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the fourth quarter of 2016 was $1.42 per barrel compared to $2.08 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the fourth quarter of 2016 was $(0.20) per barrel compared to $1.35 per barrel for the same period in 2015. The average Brent to LLS spread for the fourth quarter of 2016 was $(1.36) per barrel compared to $(0.30) per barrel for the same period in 2015.

The average RINs cost effect on the Big Spring refinery operating margin was $1.08 per barrel for the fourth quarter of 2016, compared to $0.45 per barrel for the fourth quarter of 2015. The average RINs cost effect on the Krotz Springs refinery operating margin was $1.58 per barrel for the fourth quarter of 2016, compared to $0.60 per barrel for the fourth quarter of 2015.

The contango environment in the fourth quarter of 2016 created an average cost of crude benefit of $0.79 per barrel compared to an average cost of crude benefit of $0.94 per barrel for the same period in 2015.

For the fourth quarter of 2016, our California renewable fuels facility generated an operating margin of $70.57 per barrel from an average of 2,409 barrels per day of throughput. Our statements of operations include operating income of $8.7 million for the fourth quarter of 2016 related to the facility's operations.

Asphalt margins for the fourth quarter of 2016 were $107.89 per ton compared to $102.85 per ton for the fourth quarter of 2015. On a cash basis (i.e. excluding inventory effects), asphalt margins in the fourth quarter of 2016 were $116.06 per ton compared to $106.92 per ton in the fourth quarter of 2015.

Retail fuel margins decreased to 18.5 cents per gallon in the fourth quarter of 2016 from 20.0 cents per gallon in the fourth quarter of 2015. Retail fuel sales volume increased to 54.0 million gallons in the fourth quarter of 2016 from 52.2 million gallons in the fourth quarter of 2015. Merchandise margins decreased to 30.5% in the fourth quarter of 2016 from 31.1% in the fourth quarter of 2015. Merchandise sales decreased to $78.9 million in the fourth quarter of 2016 from $81.0 million in the fourth quarter of 2015.

FULL-YEAR 2016

Special items increased net loss by $17.7 million for 2016 primarily as a result of employee retention expenses of $10.7 million, losses of $1.0 million related to an asphalt inventory adjustment, unrealized losses of $14.8 million associated with commodity swaps and $1.7 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $10.5 million. Special items reduced net income by $42.7 million for 2015 primarily as a result of a loss on impairment of goodwill of $39.0 million, losses of $8.1 million related to an asphalt inventory adjustment and employee retention expenses of $11.3 million, partially offset by unrealized gains of $7.9 million associated with commodity swaps, insurance recoveries net of professional fees of $3.6 million and $1.9 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.3 million.

Combined refinery average throughput for 2016 was 139,243 bpd, compared to a combined refinery average throughput of 140,036 bpd in 2015. The Big Spring refinery average throughput for 2016 was 71,363 bpd compared to 74,906 bpd for 2015. The reduced throughput at our Big Spring refinery during 2016 was the result of a reformer regeneration during the first quarter of 2016 and third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. The Krotz Springs refinery average throughput for 2016 was 67,880 bpd compared to 65,130 bpd for 2015. During 2016, the Krotz Springs refinery throughput was impacted by our election to reduce the crude rate in order to optimize the refinery yield, as well as maintenance that was performed on the fluid catalytic cracking unit during the second quarter of 2016. During 2015, we completed the planned major turnaround at the Krotz Springs refinery, which reduced throughput during the period.

Refinery operating margin at the Big Spring refinery was $8.28 per barrel for 2016 compared to $14.43 per barrel for 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread and increased RINs costs, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude.

Refinery operating margin at the Krotz Springs refinery was $3.06 per barrel for 2016 compared to $7.02 per barrel for 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads and increased RINs costs, partially offset by an increased benefit from the contango market environment which reduced the cost of crude.

The average Gulf Coast 3/2/1 crack spread for 2016 was $12.64 per barrel compared to $17.02 per barrel for 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for 2016 was $7.95 per barrel compared to $10.81 per barrel for 2015.

The average WTI Cushing to WTI Midland spread for 2016 was $0.15 per barrel compared to $0.39 per barrel for 2015. The average WTI Cushing to WTS spread for 2016 was $0.73 per barrel compared to $(0.06) per barrel for 2015. The average LLS to WTI Cushing spread for 2016 was $1.70 per barrel compared to $3.73 per barrel for 2015. The average Brent to WTI Cushing spread for 2016 was $0.21 per barrel compared to $3.54 per barrel for 2015. The average Brent to LLS spread for 2016 was $(1.45) per barrel compared to $0.14 per barrel for 2015.

The average RINs cost effect on the Big Spring refinery operating margin was $0.55 per barrel for 2016, compared to $0.42 per barrel for 2015. The average RINs cost effect on the Krotz Springs refinery operating margin was $1.48 per barrel for 2016, compared to $0.99 per barrel for 2015.

The contango environment in 2016 created an average cost of crude benefit of $1.24 per barrel compared to an average cost of crude benefit of $1.01 per barrel in 2015.

During 2016, our California renewable fuels facility generated an operating margin of $68.67 per barrel from an average of 2,275 barrels per day of throughput. Our statements of operations include operating income of $24.1 million in 2016 related to the facility's operations.

Asphalt margins for 2016 were $98.80 per ton compared to $105.70 per ton in 2015. On a cash basis (i.e. excluding inventory effects), asphalt margins in 2016 were $100.94 per ton compared to $109.35 per ton in 2015.

Retail fuel margins decreased to 19.8 cents per gallon in 2016 from 21.3 cents per gallon in 2015. Retail fuel sales volume increased to 209.0 million gallons in 2016 from 199.1 million gallons in 2015. Merchandise margins decreased to 31.2% in 2016 from 31.9% in 2015. Merchandise sales decreased to $324.4 million in 2016 from $328.5 million in 2015.

Alon also announced today that its Board of Directors has declared the regular quarterly cash dividend of $0.15 per share. The dividend is payable on March 17, 2017 to stockholders of record at the close of business on March 9, 2017.

CONFERENCE CALL

Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the fourth quarter and year-end 2016 financial results. To access the call, please dial 877-407-0672, or 412-902-0003 for international callers, and ask for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com. A telephonic replay of the conference call will be available through March 3, 2017, and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13652999#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels facility in California, with a throughput capacity of 3,000 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

- Tables to follow -

ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED
EARNINGS RELEASE

RESULTS OF OPERATIONS - FINANCIAL DATA

(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2015 AND INCOME STATEMENT DATA FOR THE YEAR ENDED DECEMBER 31, 2015, IS UNAUDITED)

For the Three Months Ended


For the Year Ended


December 31,


December 31,


2016


2015


2016


2015


(dollars in thousands, except per share data)

STATEMENTS OF OPERATIONS DATA:








Net sales (1)

$

1,011,326



$

782,367



$

3,913,404



$

4,338,152


Operating costs and expenses:








Cost of sales

874,365



636,794



3,376,803



3,515,406


Direct operating expenses

62,812



63,426



262,706



255,534


Selling, general and administrative expenses (2)

46,953



51,306



194,078



200,195


Depreciation and amortization (3)

36,852



32,232



145,577



126,494


Total operating costs and expenses

1,020,982



783,758



3,979,164



4,097,629


Gain (loss) on disposition of assets

(90)



1,319



(1,650)



1,914


Loss on impairment of goodwill (4)



(39,028)





(39,028)


Operating income (loss)

(9,746)



(39,100)



(67,410)



203,409


Interest expense

(16,584)



(19,876)



(69,717)



(79,826)


Equity earnings (losses) of investees

(930)



1,944



9,813



6,669


Other income, net

72



266



692



417


Income (loss) before income tax expense (benefit)

(27,188)



(56,766)



(126,622)



130,669


Income tax expense (benefit)

(11,383)



(4,860)



(46,789)



48,282


Net income (loss)

(15,805)



(51,906)



(79,833)



82,387


Net income attributable to non-controlling interest

2,293



628



2,972



29,636


Net income (loss) available to stockholders

$

(18,098)



$

(52,534)



$

(82,805)



$

52,751


Earnings (loss) per share, basic

$

(0.25)



$

(0.75)



$

(1.17)



$

0.76


Weighted average shares outstanding, basic (in thousands)

71,229



70,027



70,739



69,772


Earnings (loss) per share, diluted

$

(0.25)



$

(0.75)



$

(1.17)



$

0.75


Weighted average shares outstanding, diluted (in thousands)

71,229



70,027



70,739



70,714


Cash dividends per share

$

0.15



$

0.15



$

0.60



$

0.55


CASH FLOW DATA:








Net cash provided by (used in):








Operating activities

$

41,755



$

49,755



$

59,516



$

226,065


Investing activities

(8,822)



(81,713)



(94,129)



(160,011)


Financing activities

(161,433)



27,221



(63,212)



(46,888)


OTHER DATA:








Adjusted net income (loss) available to stockholders (5)

$

(14,279)



$

(14,635)



$

(65,112)



$

95,459


Adjusted earnings (loss) per share (5)

$

(0.20)



$

(0.21)



$

(0.92)



$

1.37


Adjusted EBITDA (6)

$

30,105



$

34,128



$

105,121



$

366,166


Capital expenditures (7)

8,820



43,933



58,644



101,195


Capital expenditures for turnarounds and catalysts

342



23,938



29,806



35,348


 


As of December 31,


2016


2015


(dollars in thousands)

BALANCE SHEET DATA (end of period):




Cash and cash equivalents

$

136,302



$

234,127


Working capital

40,647



78,694


Total assets

2,110,159



2,176,138


Total debt

527,966



555,962


Total debt less cash and cash equivalents

391,664



321,835


Total equity

582,413



664,160


 

REFINING AND MARKETING SEGMENT











For the Three Months Ended


For the Year Ended


December 31,


December 31,


2016


2015


2016


2015


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

STATEMENTS OF OPERATIONS DATA:








Net sales (8)

$

854,521



$

627,498



$

3,240,170



$

3,663,956


Operating costs and expenses:








Cost of sales

765,314



528,548



2,905,470



3,034,531


Direct operating expenses

55,981



57,063



237,053



227,517


Selling, general and administrative expenses

15,138



19,553



68,210



79,022


Depreciation and amortization

31,502



27,253



124,304



107,619


Total operating costs and expenses

867,935



632,417



3,335,037



3,448,689


Gain (loss) on disposition of assets



1,319



(2,079)



1,842


Loss on impairment of goodwill (4)



(39,028)





(39,028)


Operating income (loss)

$

(13,414)



$

(42,628)



$

(96,946)



$

178,081


KEY OPERATING STATISTICS:








Per barrel of throughput:








Refinery operating margin – Big Spring (9)

$

7.65



$

10.02



$

8.28



$

14.43


Refinery operating margin – Krotz Springs (9)

3.40



1.55



3.06



7.02


California renewable fuel operating margin (10)

70.57



N/A



68.67



N/A


Refinery direct operating expense – Big Spring (11)

3.39



3.88



3.73



3.62


Refinery direct operating expense – Krotz Springs (11)

3.44



5.82



3.78



4.03


California renewable fuel direct operating expense (11)

20.56



N/A



22.12



N/A


Capital expenditures

$

8,335



$

37,926



$

48,672



$

73,429


Capital expenditures for turnarounds and catalysts

342



23,938



29,806



35,348


PRICING STATISTICS:








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








Gulf Coast (12)

$

12.83



$

10.90



$

12.64



$

17.02


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








Gulf Coast high sulfur diesel (12)

$

8.63



$

7.13



$

7.95



$

10.81


WTI Cushing crude oil (per barrel)

$

49.21



$

42.05



$

43.24



$

48.68


Crude oil differentials (per barrel):








WTI Cushing less WTI Midland (13)

$

0.25



$

(0.20)



$

0.15



$

0.39


WTI Cushing less WTS (13)

1.33



(0.26)



0.73



(0.06)


LLS less WTI Cushing (13)

1.42



2.08



1.70



3.73


Brent less WTI Cushing (13)

(0.20)



1.35



0.21



3.54


Brent less LLS (13)

(1.36)



(0.30)



(1.45)



0.14


Product prices (dollars per gallon):








Gulf Coast unleaded gasoline

$

1.45



$

1.25



$

1.34



$

1.56


Gulf Coast ultra-low sulfur diesel

1.52



1.29



1.32



1.58


Gulf Coast high sulfur diesel

1.37



1.19



1.18



1.45


Natural gas (per MMBtu)

3.18



2.23



2.55



2.63


 

THROUGHPUT AND PRODUCTION DATA:

BIG SPRING REFINERY

For the Three Months Ended


For the Year Ended

 

December 31,


 

December 31,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTS crude

27,458



35.8



29,510



38.9



31,000



43.4



33,647



44.9


WTI crude

44,112



57.5



43,968



57.9



36,862



51.7



38,632



51.6


Blendstocks

5,084



6.7



2,447



3.2



3,501



4.9



2,627



3.5


Total refinery throughput (14)

76,654



100.0



75,925



100.0



71,363



100.0



74,906



100.0


Refinery production:
















Gasoline

39,371



51.2



38,600



50.8



35,220



49.4



37,519



50.0


Diesel/jet

27,619



35.9



27,812



36.6



25,739



36.1



27,651



36.8


Asphalt

2,533



3.3



2,362



3.1



2,767



3.9



2,639



3.5


Petrochemicals

4,647



6.1



4,012



5.3



3,872



5.4



4,579



6.1


Other

2,714



3.5



3,176



4.2



3,740



5.2



2,678



3.6


Total refinery production (15)

76,884



100.0



75,962



100.0



71,338



100.0



75,066



100.0


Refinery utilization (16)



98.0

%




100.7

%




96.1

%




99.0

%


























THROUGHPUT AND PRODUCTION DATA:

KROTZ SPRINGS REFINERY

For the Three Months Ended


For the Year Ended

December 31,


December 31,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTI crude

23,751



33.9



8,750



21.3



19,990



29.4



22,408



34.4


Gulf Coast sweet crude

40,793



58.2



29,384



71.6



42,835



63.2



38,699



59.4


Blendstocks

5,527



7.9



2,936



7.1



5,055



7.4



4,023



6.2


Total refinery throughput (14)

70,071



100.0



41,070



100.0



67,880



100.0



65,130



100.0


Refinery production:
















Gasoline

34,208



48.1



18,083



43.7



33,706



48.8



30,193



45.5


Diesel/jet

28,946



40.7



16,037



38.7



26,346



38.1



27,259



41.0


Heavy Oils

1,165



1.6



654



1.6



1,238



1.8



1,165



1.8


Other

6,872



9.6



6,632



16.0



7,801



11.3



7,781



11.7


Total refinery production (15)

71,191



100.0



41,406



100.0



69,091



100.0



66,398



100.0


Refinery utilization (16)



87.2

%




83.1

%




84.9

%




91.3

%





















THROUGHPUT AND PRODUCTION DATA:

CALIFORNIA RENEWABLE FUELS FACILITY

For the Three Months Ended


For the Year Ended

December 31,


December 31,

2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Throughput:
















Tallow/vegetable oils

2,409



100.0







2,275



100.0






Total throughput (14)

2,409



100.0







2,275



100.0






Production:
















Renewable diesel

2,154



91.0







1,998



89.0






Renewable jet

143



6.0







149



6.6






Naphtha

70



3.0







99



4.4






Total production (15)

2,367



100.0







2,246



100.0






 

ASPHALT SEGMENT



















For the Three Months Ended


For the Year Ended



December 31,


December 31,



2016


2015


2016


2015



(dollars in thousands, except per ton data)


STATEMENTS OF OPERATIONS DATA:









Net sales (17)

$

53,592



$

48,967



$

248,988



$

257,955



Operating costs and expenses:









Cost of sales (17) (18)

39,983



38,081



190,047



212,166



Direct operating expenses

6,831



6,363



25,653



28,017



Selling, general and administrative expenses

2,299



3,280



10,796



10,517



Depreciation and amortization

1,259



1,227



5,044



4,892



Total operating costs and expenses

50,372



48,951



231,540



255,592



Operating income (21)

$

3,220



$

16



$

17,448



$

2,363



KEY OPERATING STATISTICS:









Blended asphalt sales volume (tons in thousands) (19)

112



104



522



451



Non-blended asphalt sales volume (tons in













thousands) (20)

21



18



85



59



Blended asphalt sales price per ton (19)

$

385.67



$

451.98



$

398.84



$

486.34



Non-blended asphalt sales price per ton (20)

141.38



116.61



146.36



231.00



Asphalt margin per ton (21)

107.89



102.85



98.80



105.70



Capital expenditures

$

1,007



$

901



$

3,001



$

3,385






















RETAIL SEGMENT



















For the Three Months Ended


For the Year Ended



December 31,


December 31,



2016


2015


2016


2015



(dollars in thousands, except per gallon data)


STATEMENTS OF OPERATIONS DATA:









Net sales (1)

$

187,999



$

182,960



$

731,743



$

774,435



Operating costs and expenses:









Cost of sales (18)

153,854



147,223



588,783



626,903



Selling, general and administrative expenses

29,335



28,292



114,334



109,943



Depreciation and amortization

3,378



3,427



13,519



12,431



Total operating costs and expenses

186,567



178,942



716,636



749,277



Gain (loss) on disposition of assets

(90)





429



72



Operating income

$

1,342



$

4,018



$

15,536



$

25,230



KEY OPERATING STATISTICS:









Number of stores (end of period) (22)

306



309



306



309



Retail fuel sales (thousands of gallons)

53,974



52,155



208,963



199,147



Retail fuel sales (thousands of gallons per site per month) (22)

61



58



59



58



Retail fuel margin (cents per gallon) (23)

18.5



20.0



19.8



21.3



Retail fuel sales price (dollars per gallon) (24)

$

2.02



$

1.95



$

1.95



$

2.24



Merchandise sales

$

78,948



$

80,958



$

324,434



$

328,505



Merchandise sales (per site per month) (22)

$

86



$

87



$

88



$

91



Merchandise margin (25)

30.5

%


31.1

%


31.2

%


31.9

%


Capital expenditures

$

850



$

4,110



$

5,630



$

18,993



 


(1)

Includes excise taxes on sales by the retail segment of $21,087 and $20,367 for the three months ended December 31, 2016 and 2015, respectively, and $81,602 and $77,860 for the years ended December 31, 2016 and 2015, respectively.



(2)

Includes corporate headquarters selling, general and administrative expenses of $181 and $181 for the three months ended December 31, 2016 and 2015, respectively, and $738 and $713 for the years ended December 31, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(3)

Includes corporate depreciation and amortization of $713 and $325 for the three months ended December 31, 2016 and 2015, respectively, and $2,710 and $1,552 for the years ended December 31, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(4)

During the three months and year ended December 31, 2015, we recognized a goodwill impairment loss of $39,028 related to our California refining reporting unit.



(5)

The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding after-tax employee retention expense, loss on impairment of goodwill, after-tax loss on asphalt inventory adjustment, after-tax insurance recoveries net of professional fees, after-tax unrealized gains (losses) on commodity swaps and after-tax gain (loss) on disposition of assets. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) per share, excluding these items, is useful to investors because it provides a more meaningful measurement for evaluation of our Company's operating results.








For the Three Months Ended


For the Year Ended



December 31,


December 31,



2016


2015


2016


2015



(dollars in thousands)


Net income (loss) available to stockholders

$

(18,098)



$

(52,534)



$

(82,805)



$

52,751



Exclude adjustments:









Employee retention expense

2,000



1,333



10,700



11,333



Loss on impairment of goodwill



39,028





39,028



Loss on asphalt inventory adjustment

740



1,662



1,032



8,118



Insurance recoveries, net of professional fees



(3,648)





(3,648)



Unrealized (gains) losses on commodity swaps

3,767



1,077



14,799



(7,937)



(Gain) loss on disposition of assets

90



(1,319)



1,650



(1,914)



Total adjustments

6,597



38,133



28,181



44,980



Income tax impact related to adjustments

(2,762)



245



(10,413)



(1,731)



Non-controlling interest impact related to adjustments

(16)



(479)



(75)



(541)



Adjusted net income (loss) available to stockholders

$

(14,279)



$

(14,635)



$

(65,112)



$

95,459



Adjusted earnings (loss) per share *

$

(0.20)



$

(0.21)



$

(0.92)



$

1.37







*

Adjusted earnings (loss) per share includes the effects of dividends on preferred stock on adjusted net income (loss) available to stockholders necessary to calculate earnings (loss) per share.

 

(6)

Adjusted EBITDA represents earnings before net income attributable to non-controlling interest, income tax expense (benefit), interest expense, depreciation and amortization, gain (loss) on disposition of assets, loss on impairment of goodwill and unrealized gains (losses) on commodity swaps. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of net income attributable to non-controlling interest, income tax expense (benefit), interest expense, gain (loss) on disposition of assets, loss on impairment of goodwill, unrealized gains (losses) on commodity swaps and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.




Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:




  • Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

  • Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;

  • Adjusted EBITDA does not reflect the prior claim that non-controlling interest have on the income generated by non-wholly-owned subsidiaries;

  • Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and

  • Our calculation of Adjusted EBITDA may differ from EBITDA calculations of other companies in our industry, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.




The following table reconciles net income (loss) available to stockholders to Adjusted EBITDA for the three months and years ended December 31, 2016 and 2015:








For the Three Months Ended


For the Year Ended



December 31,


December 31,



2016


2015


2016


2015



(dollars in thousands)


Net income (loss) available to stockholders

$

(18,098)



$

(52,534)



$

(82,805)



$

52,751



Net income attributable to non-controlling interest

2,293



628



2,972



29,636



Income tax expense (benefit)

(11,383)



(4,860)



(46,789)



48,282



Interest expense

16,584



19,876



69,717



79,826



Depreciation and amortization

36,852



32,232



145,577



126,494



(Gain) loss on disposition of assets

90



(1,319)



1,650



(1,914)



Loss on impairment of goodwill



39,028





39,028



Unrealized (gains) losses on commodity swaps

3,767



1,077



14,799



(7,937)



Adjusted EBITDA

$

30,105



$

34,128



$

105,121



$

366,166





Adjusted EBITDA does not exclude losses of $(740) and $(1,662) for the three months ended December 31, 2016 and 2015, respectively, and $(1,032) and $(8,118) for the years ended December 31, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory.

 

(7)

Includes corporate capital expenditures of $635 and $996 for the three months ended December 31, 2016 and 2015, respectively, and $3,348 and $5,388 for the years ended December 31, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(8)

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



(9)

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




The refinery operating margin for the three months and year ended December 31, 2016 excludes realized and unrealized gains (losses) on commodity swaps of $(28) and $367, respectively.




The refinery operating margin for the three months and year ended December 31, 2015 excludes realized and unrealized gains on commodity swaps of $9,759 and $59,215, respectively. The refinery operating margin for the three months and year ended December 31, 2015 also excludes insurance recoveries of $10,868. The refinery operating margin for the Big Spring refinery and the Krotz Springs refinery excludes $3,941 related substantially to inventory adjustments for the year ended December 31, 2015.



(10)

The operating margin for our California renewable fuels facility is a per barrel measurement calculated by dividing the facility's margin between net sales and cost of sales by the facility's throughput volumes. Included in net sales are environmental credits in the form of RINs, California low-carbon fuel standards credits and blender's tax credits generated by the facility.



(11)

Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses at our refineries by the applicable refinery's total throughput volumes.



(12)

We compare our Big Spring refinery's operating margin to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that three barrels of WTI Cushing crude oil are converted, or cracked, into two barrels of Gulf Coast conventional gasoline and one barrel of Gulf Coast ultra-low sulfur diesel.




We compare our Krotz Springs refinery's operating margin to the Gulf Coast 2/1/1 high sulfur diesel crack spread. A Gulf Coast 2/1/1 high sulfur diesel crack spread is calculated assuming that two barrels of LLS crude oil are converted into one barrel of Gulf Coast conventional gasoline and one barrel of Gulf Coast high sulfur diesel.



(13)

The WTI Cushing less WTI Midland spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTI Midland crude oil. The WTI Cushing less WTS, or sweet/sour, spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTS crude oil. The LLS less WTI Cushing spread represents the differential between the average price per barrel of LLS crude oil and the average price per barrel of WTI Cushing crude oil. The Brent less WTI Cushing spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of WTI Cushing crude oil. The Brent less LLS spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of LLS crude oil.



(14)

Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. Total throughput for the California renewable fuels facility represents the total barrels per day of tallow and vegetable oils used by the facility for the period following March 1, 2016.



(15)

Total refinery production represents the barrels per day of various products produced from processing crude and other refinery feedstocks through the crude units and other conversion units at the refineries. Total production for the California renewable fuels facility represents the barrels per day of various products produced from processing tallow and vegetable oils through the facility's units for the period following March 1, 2016.



(16)

Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds.



(17)

Net sales and cost of sales include asphalt purchases sold as part of the supply and offtake arrangement of $7,428 and $0 for the three months ended December 31, 2016 and 2015, respectively, and $28,354 and $24,988 for the years ended December 31, 2016 and 2015, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics.



(18)

Cost of sales includes intersegment purchases of asphalt blends and motor fuels from our refining and marketing segment at prices which approximate wholesale market prices. These intersegment purchases are eliminated through consolidation of our financial statements.



(19)

Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product.



(20)

Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product.



(21)

Asphalt margin is a per ton measurement calculated by dividing the margin between net sales and cost of sales by the total sales volume. Asphalt margins are used in the asphalt industry to measure operating results related to asphalt sales.




Asphalt margin excludes losses of $(740) and $(1,662) for the three months ended December 31, 2016 and 2015, respectively, and $(1,032) and $(8,118) for the years ended December 31, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. These losses are included in operating income of the asphalt segment.



(22)

At December 31, 2016, we had 306 retail convenience stores of which 296 sold fuel. At December 31, 2015, we had 309 retail convenience stores of which 298 sold fuel.




The 14 retail convenience stores acquired in August 2015 have been included in the per site key operating statistics only for the period after acquisition.



(23)

Retail fuel margin represents the difference between retail fuel sales revenue and the net cost of purchased retail fuel, including transportation costs and associated excise taxes, expressed on a cents-per-gallon basis. Retail fuel margins are frequently used in the retail industry to measure operating results related to retail fuel sales.



(24)

Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores.



(25)

Merchandise margin represents the difference between merchandise sales revenues and the delivered cost of merchandise purchases, net of rebates and commissions, expressed as a percentage of merchandise sales revenues. Merchandise margins, also referred to as in-store margins, are commonly used in the retail industry to measure in-store, or non-fuel, operating results.

 

Contacts:

Stacey Morris, Investor Relations


Manager


Alon USA Energy, Inc.


972-367-3808




Investors: Jack Lascar


Dennard § Lascar Associates, LLC


713-529-6600




Media: Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-reports-fourth-quarter-and-full-year-2016-results-300412946.html

SOURCE Alon USA Energy, Inc.

Alon USA Partners, LP Reports Fourth Quarter and Full Year 2016 Results

Wed, 02/22/2017 - 16:43
Schedules conference call for February 24, 2017 at 10:00 a.m. Eastern

DALLAS, Feb. 22, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the quarter and year ended December 31, 2016. Net income for the fourth quarter of 2016 was $0.9 million, or $0.01 per unit, compared to net income of $7.2 million, or $0.12 per unit, for the same period last year. Net loss for the full year 2016 was $(4.4) million, or $(0.07) per unit, compared to net income of $156.9 million, or $2.51 per unit, for the same period last year.

Alan Moret, CEO, commented, "Our fourth quarter results reflected the weak refining margin environment that existed throughout 2016, which was exacerbated by high RINs prices negatively impacting our refinery operating margin. The Partnership declared a cash distribution of $0.11 per unit on February 9, 2017 related to our performance in the fourth quarter of 2016. We have been encouraged by the improvement in refining fundamentals that we saw at the end of 2016 and into 2017, including widened discounts for domestic crude relative to Brent and widened discounts in WTS relative to WTI Cushing. We have also been pleased to see RIN prices decline."

During 2016, we generated cash available for distribution of $0.40 per unit compared to $2.81 per unit during 2015.

Shai Even, President and CFO, commented, "The Big Spring refinery ran well in the fourth quarter, achieving total throughput of almost 77,000 barrels per day. The refinery also set a new quarterly record by processing over 44,000 barrels per day of WTI Midland in the quarter, further demonstrating the flexibility of the asset. The refinery operating margin of $7.65 per barrel for the fourth quarter is net of a negative impact of approximately $1.10 per barrel related to RINs costs. Operating expense in the fourth quarter was low at $3.39 per barrel.

"As we've said before, we do not expect any major maintenance at Big Spring in 2017. We expect total throughput at the Big Spring refinery to average 77,000 barrels per day for the first quarter of 2017 and 75,000 barrels per day for the full year of 2017. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the first quarter of 2017."

FOURTH QUARTER 2016

Refinery operating margin was $7.65 per barrel for the fourth quarter of 2016 compared to $10.02 per barrel for the same period in 2015. This decrease in operating margin was primarily due to increased RINs costs, a reduced benefit from the contango market environment which increased the cost of crude and unfavorable differences in Group III to Gulf Coast gasoline and diesel prices in the fourth quarter of 2016 compared to the same period in 2015. Refinery average throughput for the fourth quarter of 2016 was 76,654 barrels per day ("bpd") compared to 75,925 bpd for the same period in 2015.

The average Gulf Coast 3/2/1 crack spread was $12.83 per barrel for the fourth quarter of 2016 compared to $10.90 per barrel for the same period in 2015. The average WTI Cushing to WTI Midland spread for the fourth quarter of 2016 was $0.25 per barrel compared to $(0.20) per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the fourth quarter of 2016 was $1.33 per barrel compared to $(0.26) per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the fourth quarter of 2016 was $(0.20) per barrel compared to $1.35 per barrel for the same period in 2015.

The contango environment in the fourth quarter of 2016 created an average cost of crude benefit of $0.79 per barrel compared to an average cost of crude benefit of $0.94 per barrel for the same period in 2015. The average RINs cost effect on refinery operating margin was $1.08 per barrel in the fourth quarter of 2016, compared to $0.45 per barrel for the same period in 2015.

FULL-YEAR 2016

Refinery operating margin was $8.28 per barrel for 2016 compared to $14.43 per barrel for 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread and increased RINs costs, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for 2016 was 71,363 bpd compared to 74,906 bpd for 2015. The reduced throughput during 2016 was the result of a reformer regeneration during the first quarter of 2016 and third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units.

The average Gulf Coast 3/2/1 crack spread for 2016 was $12.64 per barrel compared to $17.02 per barrel for 2015. The average WTI Cushing to WTI Midland spread for 2016 was $0.15 per barrel compared to $0.39 per barrel for 2015. The average WTI Cushing to WTS spread for 2016 was $0.73 per barrel compared to $(0.06) per barrel for 2015. The average Brent to WTI Cushing spread for 2016 was $0.21 per barrel compared to $3.54 per barrel for 2015. The contango environment in 2016 created an average cost of crude benefit of $1.24 per barrel compared to an average cost of crude benefit of $1.01 per barrel in 2015. The average RINs cost effect on refinery operating margin was $0.55 per barrel in 2016, compared to $0.42 per barrel in 2015.

CONFERENCE CALL

Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time), to discuss the fourth quarter and year-end 2016 financial results. To access the call, please dial 877-404-9648, or 412-902-0030 for international callers, and ask for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners' website at www.alonpartners.com. A telephonic replay of the conference call will be available through March 3, 2017, and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13653001#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholdings on the distributions received by them on behalf of foreign investors.

Any statements in this release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Partners GP, LLC
972-367-3808




Investors: Jack Lascar
Dennard § Lascar Associates, LLC

713-529-6600

 

Media: Blake Lewis
Lewis Public Relations
214-635-3020

 

- Tables to follow -

ALON USA PARTNERS, LP AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE


















RESULTS OF OPERATIONS - FINANCIAL DATA
(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2015, AND INCOME STATEMENT DATA FOR THE YEAR ENDED DECEMBER 31, 2015, IS UNAUDITED)

For the Three Months Ended


For the Year Ended


December 31,


December 31,


2016


2015


2016


2015


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

STATEMENTS OF OPERATIONS DATA:






Net sales (1)

$

509,009



$

437,872



$

1,807,732



$

2,157,191


Operating costs and expenses:








Cost of sales

453,944



369,896



1,588,219



1,767,291


Direct operating expenses

23,914



27,092



97,338



98,929


Selling, general and administrative expenses

7,719



7,699



31,983



32,353


Depreciation and amortization

14,070



13,831



57,524



55,112


Total operating costs and expenses

499,647



418,518



1,775,064



1,953,685


Operating income

9,362



19,354



32,668



203,506


Interest expense

(8,477)



(11,942)



(37,128)



(45,987)


Other income, net

43



26



593



52


Income (loss) before state income tax expense

928



7,438



(3,867)



157,571


State income tax expense

44



192



537



672


Net income (loss)

$

884



$

7,246



$

(4,404)



$

156,899


Earnings (loss) per unit

$

0.01



$

0.12



$

(0.07)



$

2.51


Weighted average common units outstanding (in thousands)

62,520



62,510



62,516



62,509


Cash distribution per unit

$

0.15



$

0.98



$

0.37



$

3.43


CASH FLOW DATA:








Net cash provided by (used in):








Operating activities

$

19,658



$

20,513



$

78,115



$

239,745


Investing activities

(6,473)



(14,228)



(33,351)



(29,550)


Financing activities

(143,424)



(8,610)



(104,193)



(183,567)


OTHER DATA:








Adjusted EBITDA (2)

$

23,475



$

33,211



$

90,785



$

258,670


Cash available for distribution (2)

6,991



5,019






Capital expenditures

6,388



11,458



23,587



23,566


Capital expenditures for turnarounds and catalysts

85



2,770



9,764



5,984


KEY OPERATING STATISTICS:








Per barrel of throughput:








Refinery operating margin (3)

$

7.65



$

10.02



$

8.28



$

14.43


Refinery direct operating expense (4)

3.39



3.88



3.73



3.62




















For the Three Months Ended


For the Year Ended


December 31,


December 31,


2016


2015


2016


2015


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

PRICING STATISTICS:








Crack spreads (per barrel):








Gulf Coast 3/2/1 (5)

$

12.83



$

10.90



$

12.64



$

17.02


WTI Cushing crude oil (per barrel)

$

49.21



$

42.05



$

43.24



$

48.68


Crude oil differentials (per barrel):








WTI Cushing less WTI Midland (6)

$

0.25



$

(0.20)



$

0.15



$

0.39


WTI Cushing less WTS (6)

1.33



(0.26)



0.73



(0.06)


Brent less WTI Cushing (6)

(0.20)



1.35



0.21



3.54


Product price (dollars per gallon):








Gulf Coast unleaded gasoline

$

1.45



$

1.25



$

1.34



$

1.56


Gulf Coast ultra-low sulfur diesel

1.52



1.29



1.32



1.58


Natural gas (per MMBtu)

3.18



2.23



2.55



2.63












As of December 31,


2016


2015


(dollars in thousands)

BALANCE SHEET DATA (end of period):




Cash and cash equivalents

$

73,524



$

132,953


Working capital

(73,563)



(53,804)


Total assets

695,637



748,584


Total debt

236,319



292,082


Total debt less cash and cash equivalents

162,795



159,129


Total partners' equity

103,503



130,957


 


























THROUGHPUT AND PRODUCTION DATA:

For the Three Months Ended
December 31,


For the Year Ended
December 31,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTS crude

27,458



35.8



29,510



38.9



31,000



43.4



33,647



44.9


WTI crude

44,112



57.5



43,968



57.9



36,862



51.7



38,632



51.6


Blendstocks

5,084



6.7



2,447



3.2



3,501



4.9



2,627



3.5


Total refinery throughput (7)

76,654



100.0



75,925



100.0



71,363



100.0



74,906



100.0


Refinery production:
















Gasoline

39,371



51.2



38,600



50.8



35,220



49.4



37,519



50.0


Diesel/jet

27,619



35.9



27,812



36.6



25,739



36.1



27,651



36.8


Asphalt

2,533



3.3



2,362



3.1



2,767



3.9



2,639



3.5


Petrochemicals

4,647



6.1



4,012



5.3



3,872



5.4



4,579



6.1


Other

2,714



3.5



3,176



4.2



3,740



5.2



2,678



3.6


Total refinery production (8)

76,884



100.0



75,962



100.0



71,338



100.0



75,066



100.0


Refinery utilization (9)



98.0

%




100.7

%




96.1

%




99.0

%










(1)

Includes sales to related parties of $84,786 and $77,058 for the three months ended December 31, 2016 and 2015, respectively, and $307,497 and $358,194 for the years ended December 31, 2016 and 2015, respectively.




(2)

Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of state income tax expense, interest expense and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.





Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:





Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;





Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;





Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and





Our calculation of Adjusted EBITDA may differ from EBITDA calculations of other companies in our industry, limiting its usefulness as a comparative measure.





Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.





The following table reconciles net income (loss) to Adjusted EBITDA for the three months and years ended December 31, 2016 and 2015:

























For the Three Months Ended


For the Year Ended




December 31,


December 31,




2016


2015


2016


2015




(dollars in thousands)



Net income (loss)

$

884



$

7,246



$

(4,404)



$

156,899




State income tax expense

44



192



537



672




Interest expense

8,477



11,942



37,128



45,987




Depreciation and amortization

14,070



13,831



57,524



55,112




Adjusted EBITDA

$

23,475



$

33,211



$

90,785



$

258,670







Cash available for distribution is not a recognized term under GAAP. Our management believes that the presentation of cash available for distribution is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of entities in our industry. Cash available for distribution should not be considered in isolation or as an alternative to net income or operating income as a measure of operating performance. In addition, cash available for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Cash available for distribution as reported may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.






Available cash for each quarter generally equals our Adjusted EBITDA for the quarter, less cash needed for maintenance capital expenditures, debt service and other contractual obligations and reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, including reserves for our expenses in the quarters in which our planned major turnarounds and catalyst replacements occur. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.






The following table reconciles Adjusted EBITDA to cash available for distribution for the three months ended December 31, 2016 and 2015:














For the Three Months Ended



December 31,



2016


2015



(dollars in thousands)


   Adjusted EBITDA

$

23,475



$

33,211



      less: Maintenance/growth capital expenditures

6,388



11,458



      less: Turnaround and catalyst replacement capital expenditures

85



2,770



      less: Major turnaround reserve for future years

1,500



1,500



      less: Principal payments

625



625



      less: State income tax payments

44



377



      less: Interest paid in cash

7,842



11,462



   Cash available for distribution

$

6,991



$

5,019




(3)

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




Refinery operating margin for the three months and year ended December 31, 2016 excludes gains related to inventory adjustments of $1,137 and $3,183, respectively. Refinery operating margin for the three months and year ended December 31, 2015 excludes losses related to inventory adjustments of $(1,983) and $(4,746), respectively.



(4)

Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses by total throughput volumes.



(5)

We compare our refinery operating margin to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that three barrels of WTI Cushing crude oil are converted, or cracked, into two barrels of Gulf Coast conventional gasoline and one barrel of Gulf Coast ultra-low sulfur diesel.



(6)

The WTI Cushing less WTI Midland spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTI Midland crude oil. The WTI Cushing less WTS, or sweet/sour, spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTS crude oil. The Brent less WTI Cushing spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of WTI Cushing crude oil.



(7)

Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process.



(8)

Total refinery production represents the barrels per day of various refined products produced from processing crude and other refinery feedstocks through the crude units and other conversion units.



(9)

Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-lp-reports-fourth-quarter-and-full-year-2016-results-300412097.html

SOURCE Alon USA Partners, LP

Alon USA Partners, LP Declares Quarterly Cash Distribution

Thu, 02/09/2017 - 15:47

DALLAS, Feb. 9, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that the Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a distribution of $0.11 per unit payable in cash on February 28, 2017 to common unitholders of record at the close of business on February 21, 2017. Cash available for distribution for the three months ended December 31, 2016 totaled $7.0 million.

This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholdings on the distributions received by them on behalf of foreign investors.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

The preliminary financial results for the three months ended December 31, 2016 presented below, and utilized for the determination of cash available for distribution, are forward-looking statements based on preliminary estimates. These results reflect the best judgment of our management but involve a number of risks and uncertainties which could cause actual results to differ materially from those set forth in our estimates and from past results or performance. Such preliminary results are subject to finalization of our financial closing process for the three months ended December 31, 2016. Consequently, there can be no assurances that the preliminary estimates set forth below will be the actual financial results for the three months ended December 31, 2016, and any variation between the estimates and our actual results set forth below may be material.

 







ALON USA PARTNERS, LP

CASH AVAILABLE FOR DISTRIBUTION

(unaudited)

(dollars in thousands, except per unit data)



For the Three Months
Ended



December 31, 2016




Net sales


$

509,009


Operating costs and expenses:



Cost of sales


453,944


Direct operating expenses


23,914


Selling, general and administrative expenses


7,719


Depreciation and amortization


14,070


Total operating costs and expenses


499,647


Operating income


9,362


Interest expense


(8,477)


Other income, net


43


Income before state income tax expense


928


State income tax expense


44


Net income


$

884


Adjustments to reconcile net income to Adjusted EBITDA:



Interest expense


8,477


State income tax expense


44


Depreciation and amortization


14,070


Adjusted EBITDA


$

23,475


Adjustments to reconcile Adjusted EBITDA to cash available for distribution:



less: Maintenance/growth capital expenditures


6,388


less: Turnaround and catalyst replacement capital expenditures


85


less: Major turnaround reserve for future years


1,500


less: Principal payments


625


less: State income tax payments


44


less: Interest paid in cash


7,842


Cash available for distribution


$

6,991





Common units outstanding (in 000's)


62,520





Cash available for distribution per unit


$

0.11


 

Non-GAAP Financial Measure
Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of state income tax expense, interest expense and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

  • 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 Adjusted 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.

Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Partners GP, LLC

972-367-3808




Investors: Jack Lascar

Dennard § Lascar Associates, LLC

713-529-6600




Media: Blake Lewis

Lewis Public Relations

214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-lp-declares-quarterly-cash-distribution-300405406.html

SOURCE Alon USA Partners, LP

Alon USA Partners Announces Timing For Cash Distribution Announcement And Fourth Quarter And Year-End 2016 Earnings Release And Conference Call Schedule

Mon, 01/23/2017 - 15:35

DALLAS, Jan. 23, 2017 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced plans to declare a cash distribution related to the fourth quarter 2016 after the market closes on Thursday, February 9, 2017. Alon Partners today also announced that it will release its fourth quarter and year-end 2016 financial results on Wednesday, February 22, 2017 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

What:

Alon USA Partners, LP Fourth Quarter and Year-End 2016 Earnings Conference Call

When:

Friday, February 24, 2017 - 10:00 a.m. Eastern Time

Where:

Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com.

A telephonic replay of the conference call will be available through March 3, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13653001#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard ▪ Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts: 

Stacey Morris


Investor Relations Manager


Alon USA Partners GP, LLC


972-367-3808




Investors: Jack Lascar


Dennard ▪ Lascar Associates, LLC


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020



                                                                                                                                      

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-announces-timing-for-cash-distribution-announcement-and-fourth-quarter-and-year-end-2016-earnings-release-and-conference-call-schedule-300394750.html

SOURCE Alon USA Partners, LP

Alon USA Energy Announces Fourth Quarter And Year-End 2016 Earnings Release And Conference Call Schedule

Mon, 01/23/2017 - 15:30

DALLAS, Jan. 23, 2017 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its fourth quarter and year-end 2016 financial results on Thursday, February 23, 2017 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, February 24, 2017 at 11:30 a.m. Eastern Time (10:30 a.m. Central Time).

What:

Alon USA Energy, Inc. Fourth Quarter and Year-End 2016 Earnings Conference Call

When:

Friday, February 24, 2017 – 11:30 a.m. Eastern Time

Where:

Live via phone by dialing 877-407-0672, or 412-902-0003 for international callers, and asking for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com.

 

A telephonic replay of the conference call will be available through March 3, 2017 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13652999#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard ▪ Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Contacts:

Stacey Morris


Investor Relations Manager


Alon USA Energy, Inc.


972-367-3808




Investors:  Jack Lascar


Dennard ▪ Lascar Associates, LLC         


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-announces-fourth-quarter-and-year-end-2016-earnings-release-and-conference-call-schedule-300394957.html

SOURCE Alon USA Energy, Inc.

Delek US Holdings to Acquire Remaining Outstanding Shares of Alon USA

Tue, 01/03/2017 - 06:30
  • Combination creates a Permian focused company with refining, logistics, retail and marketing operations with a combined enterprise value of approximately $2.8 billion
  • All-stock transaction at a fixed exchange ratio of 0.5040
  • Annual synergies of $85 to $105 million expected to be achieved in 2018
  • Expected to be highly accretive in 2018 on an EPS basis, the combined company’s first full year of operation
  • Creates ability to unlock significant logistics value through future potential drop downs to Delek Logistics Partners, LP
  • Larger asphalt and renewables operations created through combination
  • Combined company benefits from Delek US’ strong balance sheet
  • Delek board approved $150 million share repurchase authorization

BRENTWOOD, Tenn. and DALLAS, Jan. 03, 2017 (GLOBE NEWSWIRE) -- Delek US Holdings, Inc. (NYSE:DK) (“Delek US”) and Alon USA Energy, Inc. (NYSE:ALJ) (“Alon”) today announced a definitive agreement under which Delek US will acquire all of the outstanding shares of Alon common stock which Delek US does not already own in an all-stock transaction. Based on a closing price of $24.07 per share for Delek US common stock on Friday, December 30, 2016, the implied price for Alon common stock is $12.13 per share, or $464 million in equity value for the remaining shares. The enterprise value of this transaction to acquire the remaining 53 percent of Alon shares of common stock not already owned by Delek US is approximately $675 million including the proportionate assumption of $152 million of net debt related to this transaction and $59 million of market value for the non-controlling interest in Alon USA Partners, LP (NYSE:ALDW). This transaction was unanimously approved by the Special Committee of Alon’s board of directors and by the board of directors of Delek US. Additionally, the board of directors of Alon approved the transaction, excluding Delek employed directors which abstained from voting on this matter. The combination will create a company with a strong financial position and significant access to the Permian Basin.

Delek US currently owns approximately 33.7 million shares of common stock of Alon. Under terms of the agreement, the owners of the remaining outstanding shares in Alon that Delek US does not currently own will receive a fixed exchange ratio of 0.5040 Delek US shares for each share of Alon. This represents a 5.6 percent premium to the 20 trading day volume weighted average ratio through and including December 30, 2016, of 0.477. Upon closing, the combined company will be primarily led by Delek US’ management team. In conjunction with the Merger Agreement, the Special Committee of Alon’s board of directors will nominate one new director that will be appointed to the Delek US board, and one new director that will be added to the board of Delek Logistics Partners LP’s (NYSE:DKL) (“Delek Logistics”) general partner. Concurrently with the execution of the Merger Agreement, Delek US entered into three separate voting agreements with Alon USA, David Wiessman and Jeff Morris, pursuant to which each of Delek US, Mr. Wiessman and Mr. Morris have agreed to, among other things, vote their shares of Alon in favor of this transaction.

Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US stated, “We are excited to reach this agreement and believe this strategic combination will result in a larger, more diverse company that is well positioned to take advantage of opportunities in the market and better navigate the cyclical nature of our business. We expect to be able to achieve meaningful synergies across the organization and the combination will create a refining system that will be one of the largest buyers of crude from the Permian Basin among the independent refiners. Additionally, we expect the combined company will have the ability to unlock logistics value from Alon’s assets through future potential drop downs to Delek Logistics Partners and create a platform for future logistics projects to support a larger refining system. The combination of an all equity transaction, which will enable both Alon’s and Delek US’ shareholders to participate in future performance of the company, and Delek US’ strong financial position should provide the combined company financial flexibility as it moves forward with initiatives to invest in the business to create value for the shareholders. I would like to thank the employees of Delek US and Alon for their hard work on the transaction and the members of Alon’s Special Committee for their cooperation during this process.”

“We are excited to be joining Delek US and believe this agreement represents an excellent opportunity for Alon’s shareholders,” said David Wiessman, Chairman of Alon’s Special Committee. “The economies of scale, financial strength, and synergies generated through this merger create the opportunity to drive long-term value for shareholders and the all-stock transaction allows all shareholders to participate in the future performance of the combined company. I would like to thank Alon’s employees for their efforts, and our customers, suppliers and banks that supported our company, as we worked together to create value for our shareholders.”

The combined company will have a broad platform consisting of refining, logistics, retail, wholesale marketing, as well as renewables and asphalt operations. The refining system will have approximately 300,000 barrels per day of crude throughput capacity consisting of four locations and an integrated retail platform that includes 307 locations serving central and west Texas and New Mexico. Logistics operations include Delek Logistics which can benefit from future drop downs and organic projects to support a larger refining system. This combination will create a larger marketing operation with 600,000 barrels per month of space on the Colonial Pipeline System and a wholesale business with over 1.2 billion gallons of sales volume annually in the southwest.  

Permian Focused Operations

The combined company will have a larger presence in the Permian Basin. Its refining system will have access to approximately 207,000 barrels per day of Permian sourced crude out of an approximately 300,000 barrel per day crude throughput system, which equates to 69 percent of the crude slate. This will result in the combined company being one of the largest buyers of Permian sourced crude among the independent refiners, creating opportunities to benefit from economies of scale in both refining and logistics. There will be a larger marketing presence with approximately 307 retail locations and wholesale marketing operations in the region that is integrated with the Big Spring, Texas refinery and extends Delek US’ marketing beyond its current west Texas position. From a logistics standpoint, the system will have access to crude oil pipelines, trucking and gathering operations in the area, which is in addition to Delek Logistics’ RIO joint venture crude oil pipeline in west Texas. This larger system also enhances the opportunities for Delek Logistics to expand its current participation in the highly attractive Permian and Delaware basins by supporting a larger operation.

Value Creating Initiatives

Larger, more diverse company benefits all shareholders. This combination creates the ability to leverage a larger system from an operational and commercial standpoint with a stronger financial position. With a more diverse set of business platforms, it offers the ability to create value through synergies, flexibility to invest in growth opportunities and benefit from the relationship with Delek Logistics.  

Synergies on a combined base of an estimated $85 to $105 million expected to be achieved in 2018. Improved efficiencies and cost savings through a combination of commercial, operational, cost of capital and corporate initiatives are expected to drive additional shareholder value. The annual run rate is expected to be achieved in 2018, the first full year of operation following the closing of the transaction. Delek US’ previous experience in improving operations and managing costs can be applied to a broader set of assets to drive value and improvements on a combined basis.

Ability to unlock logistics value with an estimated $70 to $85 million of logistics related annual EBITDA. By leveraging the relationship with Delek Logistics, additional value can be unlocked from Alon’s logistics assets through future potential drop downs. This potential EBITDA includes an estimated $30 to $34 million of annual logistics EBITDA at the Krotz Springs refinery. This should create value for the combined company and provide a more visible growth plan for Delek Logistics that can support its long term distribution growth and create significant cash flow to Delek US.

Strong financial position supports ability to return value to the shareholders. Through an all equity transaction that enables all shareholders to participate in future value creation, we believe the combined company’s financial position will be strong. This financial position should allow the combined company the ability to undertake initiatives to improve its operations and return cash to the shareholders through dividends and share repurchases. This transaction is expected to be highly accretive in 2018 on an earnings per share basis, the first full year of operation of the combined company, assuming a benefit from $95.0 million of synergies. By benefitting from Delek US’ strong financial position, a focus after closing will be to reduce the financing cost of the combined company. Delek US’ share repurchase program, which expired on December 31, 2016, has been replaced with a new $150 million repurchase authorization, which does not have an expiration date.

Increased asphalt and renewable businesses. The combined company will have an integrated asphalt business consisting of Alon’s operations primarily in Texas and California/Washington and Delek US’ asphalt business primarily in Texas/Arkansas/Oklahoma that is approaching 1.0 million tons of sales on an annual basis. This operation is supported through a combination of production and supply/exchange volume with 15 asphalt terminals in the operation. The combined biodiesel/renewable diesel assets, with a total capacity of approximately 61.0 million gallons per year, include Delek US’ Cleburne, Texas and Crossett, Arkansas biodiesel plants and Alon’s renewable diesel and jet plant in California.

Approvals and Timing
The transaction is expected to close in the first half of 2017 and is subject to customary closing conditions, including regulatory approval and approval by a majority of votes cast of Delek US shareholders and approval by the holders of a majority of the remaining 53 percent of Alon shares, which excludes the 47 percent of Alon shares owned by Delek US.

Conference Call Information
Delek US will hold a conference call to discuss this transaction on Tuesday, January 3, 2017 at 10:00 a.m. Central Time. The dial-in information for participants is (866) 354-3148 (Domestic) and (706) 643-0886 (International).  The passcode for both numbers is 47082363. Investors will have the opportunity to listen to the conference call live and access the accompanying presentation slides by going to www.DelekUS.com and clicking on the Investor Relations tab.

Participants are encouraged to register at least 15 minutes early to download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through Tuesday, January 17, 2017 by dialing (855) 859-2056, passcode 47082363. An archived version of the replay will also be available at www.DelekUS.com.

Advisors
Tudor, Pickering, Holt & Co. is serving as exclusive financial advisor on this transaction to Delek US. BofA Merrill Lynch and Barclays provided financial structuring advice to Delek US related to this transaction.  Norton Rose Fulbright US LLP and Morris, Nichols Arsht & Tunnell LLP are serving as legal advisors for Delek US. J.P. Morgan is serving as exclusive financial advisor and Gibson Dunn & Crutcher LLP is serving as legal advisor for the Special Committee of Alon USA’s board of directors. Vinson & Elkins LLP is serving as legal advisor to Alon USA.

About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining and logistics.  The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 155,000 barrels per day.  Delek US Holdings, Inc. and its affiliates also own approximately 62 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP.  Delek Logistics Partners, LP (NYSE:DKL) is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.  Delek US Holdings, Inc. currently owns approximately 47 percent of the outstanding common stock of Alon USA Energy, Inc. (NYSE:ALJ).

About Alon USA
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE:ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws.  These forward-looking statements include, but are not limited to, statements regarding the proposed merger with Alon, integration and transition plans, synergies, opportunities, anticipated future performance and financial position, and other factors.

Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: risks and uncertainties related to the expected timing and likelihood of completion of the proposed merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the possibility that stockholders of Delek US may not approve the issuance of new shares of common stock in the merger or that stockholders of Alon may not approve the merger agreement, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Delek US' common stock or Alon's common stock, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Delek US and Alon to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies, uncertainty related to timing and amount of future share repurchases and dividend payments,  risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the southern United States; and other risks contained in Delek US’ and Alon’s  filings with the United States Securities and Exchange Commission.

Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at or by which such performance or results will be achieved.  Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Delek US undertakes no obligation to update or revise any such forward-looking statements, except as required by applicable law or regulation.

No Offer or Solicitation
This communication relates to a proposed business combination between Delek US and Alon. This announcement is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed transaction between Delek US and Alon. In connection with the proposed transaction, Delek US and/or Alon may file one or more proxy statements, registration statements, proxy statement/prospectuses or other documents with the SEC. This communication is not a substitute for the proxy statement, registration statement, proxy statement/prospectus or any other documents that Delek US or Alon may file with the SEC or send to stockholders in connection with the proposed transaction. STOCKHOLDERS OF DELEK US AND ALON ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT(S), REGISTRATION STATEMENT(S) AND/OR PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Any definitive proxy statement(s) (if and when available) will be mailed to stockholders of Delek US and/or Alon, as applicable. Investors and security holders will be able to obtain copies of these documents, including the proxy statement/prospectus, and other documents filed with the SEC (when available) free of charge at the SEC's website, http://www.sec.gov. Copies of documents filed with the SEC by Delek US will be made available free of charge on Delek US’ website at http://www.delekus.com or by contacting Delek US’ Investor Relations Department by phone at 615-435-1366. Copies of documents filed with the SEC by Alon will be made available free of charge on Alon's website at http://www.alonusa.com or by contacting Alon's Investor Relations Department by phone at 972-367-3808.

Participants in the Solicitation
Delek US and its directors and executive officers, and Alon and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of Delek US common stock and Alon common stock in respect of the proposed transaction. Information about the directors and executive officers of Delek US is set forth in the proxy statement for Delek US’ 2016 Annual Meeting of Stockholders, which was filed with the SEC on April 5, 2016, and in the other documents filed after the date thereof by Delek US with the SEC. Information about the directors and executive officers of Alon is set forth in the proxy statement for Alon's 2016 Annual Meeting of Shareholders, which was filed with the SEC on April 1, 2016, and in the other documents filed after the date thereof by Alon with the SEC. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.

Delek US Investor / Media Relations Contact: Keith Johnson Delek US Holdings, Inc. Vice President of Investor Relations 615-435-1366 Alon USA Investor/Media Relations Contacts: Stacey Morris, Investor Relations Manager Alon USA Energy, Inc. 972-367-3808 Investors: Jack Lascar Dennard § Lascar Associates, LLC 713-529-6600 Media: Blake Lewis Lewis Public Relations 214-635-3020

Alon USA Energy To Participate In The Wolfe Research 2017 Refiners Conference

Wed, 12/28/2016 - 15:15

DALLAS, Dec. 28, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will attend the Wolfe Research 2017 Refiners Conference to be held on January 4, 2017 in Boston, Massachusetts.

Shai Even, Senior Vice President and Chief Financial Officer, will hold one-on-one meetings with investors to discuss both Alon USA Energy and Alon USA Partners, LP (NYSE: ALDW).

The related meeting materials will be available beginning the morning of January 4, 2017 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.com/ as well as on the News & Events section of the Alon USA Partners website at www.alonpartners.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP, which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Contacts:

Stacey Morris


Investor Relations Manager


Alon USA Energy, Inc.


972-367-3808




Investors:  Jack Lascar


Dennard ▪ Lascar Associates, LLC


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-to-participate-in-the-wolfe-research-2017-refiners-conference-300383831.html

SOURCE Alon USA Energy, Inc.

Alon USA Energy, Inc. Reports Third Quarter 2016 Results

Thu, 10/27/2016 - 16:24
Declares Quarterly Cash Dividend Schedules conference call for October 28, 2016 at 10:30 a.m. Eastern

DALLAS, Oct. 27, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the third quarter of 2016. Net loss available to stockholders for the third quarter of 2016 was $(8.8) million, or $(0.12) per share, compared to net income available to stockholders of $41.9 million, or $0.60 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(6.7) million, or $(0.09) per share, for the third quarter of 2016, compared to net income available to stockholders of $42.0 million, or $0.60 per share, for the same period last year.

Net loss available to stockholders for the first nine months of 2016 was $(64.7) million, or $(0.92) per share, compared to net income available to stockholders of $105.3 million, or $1.51 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(50.9) million, or $(0.72) per share, for the first nine months of 2016, compared to net income available to stockholders of $110.1 million, or $1.58 per share, for the same period last year.

Paul Eisman, President and CEO commented, "Our third quarter results reflect a continuation of the difficult refining environment experienced in the first two quarters of 2016. The average Gulf Coast 3-2-1 benchmark crack spread for the third quarter of 2016 was approximately $6.50 per barrel lower than the average for the same period last year. Additionally, high RINs costs continue to weigh on our profitability. We continue to focus on operational excellence and controlling expenditures across the organization in this environment. We were pleased with the contributions in the third quarter from our asphalt marketing business and our renewable fuels project in California.

"The Big Spring refinery achieved total throughput of 70,000 barrels per day and generated refinery operating margin of $9.22 per barrel. As discussed in our previous earnings release, our Big Spring refinery's third quarter results were negatively impacted by a reformer regeneration in August. We estimate that the lost opportunity cost and maintenance expense associated with the reformer regeneration negatively impacted Alon's operating income by $8 million. Our Big Spring refinery's direct operating expense of $3.90 per barrel was negatively impacted by the reformer regeneration, which lowered throughput volumes and increased maintenance expense. We expect total throughput at the Big Spring refinery to average approximately 77,000 barrels per day for the fourth quarter of 2016.

"The Krotz Springs refinery ran well in the third quarter and achieved total throughput of 68,000 barrels per day, as we increased throughput in response to improved market conditions. The Krotz Springs refinery operating margin of $3.42 per barrel was negatively impacted by the high RINs cost of approximately $1.50 per barrel. We expect total throughput at the Krotz Springs refinery to average approximately 69,000 barrels per day in the fourth quarter of 2016. However, we will remain responsive to the crack spread environment and adjust throughput volumes as necessary to optimize our profitability.

"Our renewable fuels project generated operating income of $6 million in the third quarter of 2016 with total throughput of 2,582 barrels per day. The project achieved renewable diesel and renewable jet yields of 87 percent and 7 percent, respectively. Profitability improved as sales stabilized and tallow prices moderated. In the fourth quarter of 2016, the project's raw material supply will be reduced due to a third party completing maintenance on its equipment. As a result, we expect total throughput in the fourth quarter of 2016 to average approximately 2,400 barrels per day.

"The robust performance of our asphalt business continued in the third quarter of 2016, resulting in segment operating income of approximately $10 million, which does not include equity earnings of $6 million from our asphalt partnerships. Sales volumes were strong at 184 thousand tons, and our asphalt margin remained favorable at $94 per ton.

"Our retail business continues to be negatively impacted by economic headwinds in the Permian Basin. Despite this, our operating income in the third quarter of 2016 increased modestly relative to the second quarter of 2016."

THIRD QUARTER 2016

Special items increased net loss by $2.1 million for the third quarter of 2016 primarily as a result of employee retention expense of $2.0 million and unrealized losses of $3.9 million associated with commodity swaps, partially offset by gains of $1.7 million related to an asphalt inventory adjustment and $0.5 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $1.6 million. Special items reduced net income by $0.1 million for the third quarter of 2015 primarily as a result of employee retention expense of $8.7 million, partially offset by gains of $7.5 million related to an asphalt inventory adjustment and unrealized gains of $1.1 million associated with commodity swaps, before income tax and non-controlling interest impacts.

The combined total refinery average throughput for the third quarter of 2016 was 137,767 barrels per day ("bpd"), consisting of 70,063 bpd at the Big Spring refinery and 67,704 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 146,070 bpd for the third quarter of 2015, consisting of 75,797 bpd at the Big Spring refinery and 70,273 bpd at the Krotz Springs refinery. The reduced throughput at the Big Spring refinery was the result of a reformer regeneration during the third quarter of 2016. The reduced throughput at the Krotz Springs refinery during the third quarter of 2016 was the result of our election to reduce the crude rate in order to optimize the refinery yield.

Refinery operating margin at the Big Spring refinery was $9.22 per barrel for the third quarter of 2016 compared to $16.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and increased RINs costs, partially offset by a widening of both the WTI Cushing to WTI Midland and WTI Cushing to WTS spreads and an increased benefit from the contango market environment which reduced the cost of crude.

Refinery operating margin at the Krotz Springs refinery was $3.42 per barrel for the third quarter of 2016 compared to $6.66 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of the LLS to WTI Cushing spread and increased RINs costs, partially offset by a widening of the WTI Cushing to WTI Midland spread and an increased benefit from the contango market environment which reduced the cost of crude.

The average Gulf Coast 3/2/1 crack spread was $13.31 per barrel for the third quarter of 2016 compared to $19.77 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $8.49 per barrel for the third quarter of 2016 compared to $12.57 per barrel for the same period in 2015.

The average WTI Cushing to WTI Midland spread for the third quarter of 2016 was $0.31 per barrel compared to $(0.72) per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the third quarter of 2016 was $0.92 per barrel compared to $(1.46) per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the third quarter of 2016 was $1.74 per barrel compared to $3.89 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the third quarter of 2016 was $0.74 per barrel compared to $3.78 per barrel for the same period in 2015. The average Brent to LLS spread for the third quarter of 2016 was $(1.92) per barrel compared to $(0.26) per barrel for the same period in 2015.

The average RINs cost effect on the Big Spring refinery operating margin was $0.58 per barrel for the third quarter of 2016, compared to $0.27 per barrel for the same period in 2015. The average RINs cost effect on the Krotz Springs refinery operating margin was $1.47 per barrel for the third quarter of 2016, compared to $0.74 per barrel for the same period in 2015.

The contango environment in the third quarter of 2016 created an average cost of crude benefit of $0.84 per barrel compared to an average cost of crude benefit of $0.57 per barrel for the same period in 2015.

For the third quarter of 2016, our California renewable fuels project generated operating margin of $55.81 per barrel from 2,582 barrels per day of throughput.

Asphalt margins for the third quarter of 2016 were $93.57 per ton compared to $120.39 per ton for the same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins in the third quarter of 2016 were $91.72 per ton compared to $115.04 per ton in the third quarter of 2015.

Retail fuel margins decreased to 19.9 cents per gallon in the third quarter of 2016 from 21.7 cents per gallon in the third quarter of 2015. Retail fuel sales volume increased to 54.1 million gallons in the third quarter of 2016 from 51.4 million gallons in the third quarter of 2015. Merchandise margins increased to 31.7% in the third quarter of 2016 from 31.4% in the third quarter of 2015. Merchandise sales decreased to $84.0 million in the third quarter of 2016 from $86.6 million in the third quarter of 2015.

YEAR-TO-DATE 2016

Special items increased net loss by $13.8 million for the first nine months of 2016 primarily as a result of employee retention expense of $8.7 million, losses of $0.3 million related to an asphalt inventory adjustment, unrealized losses of $11.0 million associated with commodity swaps and $1.6 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $7.8 million. Special items reduced net income by $4.8 million for the first nine months of 2015 primarily as a result of employee retention expense of $10.0 million and losses of $6.5 million related to an asphalt inventory adjustment, partially offset by unrealized gains of $9.0 million associated with commodity swaps and $0.6 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.0 million.

The combined total refinery average throughput for the first nine months of 2016 was 136,730 bpd, consisting of 69,586 bpd at the Big Spring refinery and 67,144 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 147,800 bpd for the first nine months of 2015, consisting of 74,562 bpd at the Big Spring refinery and 73,238 bpd at the Krotz Springs refinery. The reduced throughput at our Big Spring refinery during the first nine months of 2016 was the result of a reformer regeneration during the first quarter of 2016, which was repeated during the third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. The reduced throughput at the Krotz Springs refinery during the first nine months of 2016 was the result of our election to reduce the crude rate in order to optimize the refinery yield, as well as maintenance that was performed on the fluid catalytic cracking unit during the second quarter of 2016.

Refinery operating margin at the Big Spring refinery was $8.52 per barrel for the first nine months of 2016 compared to $15.95 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and a narrowing of the WTI Cushing to WTI Midland spread, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude.

Refinery operating margin at the Krotz Springs refinery was $2.94 per barrel for the first nine months of 2016 compared to $8.05 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads and increased RINs costs, partially offset by an increased benefit from the contango market environment which reduced the cost of crude.

The average Gulf Coast 3/2/1 crack spread for the first nine months of 2016 was $12.57 per barrel compared to $19.08 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the first nine months of 2016 was $7.73 per barrel compared to $12.05 per barrel for the same period in 2015.

The average WTI Cushing to WTI Midland spread for the first nine months of 2016 was $0.12 per barrel compared to $0.60 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first nine months of 2016 was $0.53 per barrel compared to $0.02 per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the first nine months of 2016 was $1.79 per barrel compared to $4.27 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first nine months of 2016 was $0.35 per barrel compared to $4.28 per barrel for the same period in 2015. The average Brent to LLS spread for the first nine months of 2016 was $(1.48) per barrel compared to $0.30 per barrel for the same period in 2015.

The average RINs cost effect on the Krotz Springs refinery operating margin was $1.45 per barrel for the first nine months of 2016, compared to $1.06 per barrel for the same period in 2015.

The contango environment in the first nine months of 2016 created an average cost of crude benefit of $1.39 per barrel compared to an average cost of crude benefit of $1.04 per barrel for the same period in 2015.

For the first nine months of 2016, our California renewable fuels project generated operating margin of $55.46 per barrel from 2,000 barrels per day of throughput.

Asphalt margins for the first nine months of 2016 were $96.25 per ton compared to $106.60 per ton for the same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins for the first nine months of 2016 were $96.70 per ton compared to $110.12 per ton for the same period in 2015.

Retail fuel margins decreased to 20.2 cents per gallon in the first nine months of 2016 from 21.8 cents per gallon in the first nine months of 2015. Retail fuel sales volume increased to 155.0 million gallons in the first nine months of 2016 from 147.0 million gallons in the first nine months of 2015. Merchandise margins decreased to 31.4% in the first nine months of 2016 from 32.1% in the first nine months of 2015. Merchandise sales decreased to $245.5 million in the first nine months of 2016 from $247.5 million in the first nine months of 2015.

Alon also announced today that its Board of Directors has declared the regular quarterly cash dividend of $0.15 per share. The dividend is payable on December 23, 2016 to stockholders of record at the close of business on December 7, 2016.

CONFERENCE CALL

Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016, at 10:30 a.m. Eastern Time (9:30 a.m. Central Time), to discuss the third quarter 2016 financial results. To access the call, please dial 877-407-0672, or 412-902-0003 for international callers, and ask for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com. A telephonic replay of the conference call will be available through November 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646162#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.





Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Energy, Inc.

972-367-3808




Investors: Jack Lascar

Dennard § Lascar Associates, LLC

713-529-6600

 

Media: Blake Lewis
Lewis Public Relations
214-635-3020

 

- Tables to follow -

 

ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE


















RESULTS OF OPERATIONS - FINANCIAL DATA

(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2015, IS UNAUDITED)

For the Three Months Ended


For the Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(dollars in thousands, except per share data)

STATEMENTS OF OPERATIONS DATA:








Net sales (1)

$

1,043,717



$

1,151,204



$

2,902,078



$

3,555,785


Operating costs and expenses:








Cost of sales

895,900



914,193



2,502,438



2,878,612


Direct operating expenses

68,095



65,047



199,894



192,108


Selling, general and administrative expenses (2)

46,780



54,100



147,125



148,889


Depreciation and amortization (3)

36,878



31,033



108,725



94,262


Total operating costs and expenses

1,047,653



1,064,373



2,958,182



3,313,871


Gain (loss) on disposition of assets

522



23



(1,560)



595


Operating income (loss)

(3,414)



86,854



(57,664)



242,509


Interest expense

(16,027)



(20,696)



(53,133)



(59,950)


Equity earnings of investees

6,060



3,451



10,743



4,725


Other income, net

402



92



620



151


Income (loss) before income tax expense (benefit)

(12,979)



69,701



(99,434)



187,435


Income tax expense (benefit)

(5,641)



17,325



(35,406)



53,142


Net income (loss)

(7,338)



52,376



(64,028)



134,293


Net income attributable to non-controlling interest

1,462



10,440



679



29,008


Net income (loss) available to stockholders

$

(8,800)



$

41,936



$

(64,707)



$

105,285


Earnings (loss) per share, basic

$

(0.12)



$

0.60



$

(0.92)



$

1.51


Weighted average shares outstanding, basic (in thousands)

71,089



69,893



70,575



69,687


Earnings (loss) per share, diluted

$

(0.12)



$

0.58



$

(0.92)



$

1.46


Weighted average shares outstanding, diluted (in thousands)

71,089



72,526



70,575



72,281


Cash dividends per share

$

0.15



$

0.15



$

0.45



$

0.40


CASH FLOW DATA:








Net cash provided by (used in):








Operating activities

$

29,770



$

60,419



$

17,761



$

176,310


Investing activities

(16,853)



(44,353)



(85,307)



(78,298)


Financing activities

46,032



(41,032)



98,221



(74,109)


OTHER DATA:








Adjusted net income (loss) available to stockholders (4)

$

(6,746)



$

41,981



$

(50,896)



$

110,119


Adjusted earnings (loss) per share (4)

$

(0.09)



$

0.60



$

(0.72)



$

1.58


Adjusted EBITDA (5)

$

43,292



$

120,318



$

75,016



$

332,038


Capital expenditures (6)

12,594



26,211



49,824



57,262


Capital expenditures for turnarounds and catalysts

5,192



7,047



29,464



11,410







September 30,
2016


December 31,
2015


(dollars in thousands)

BALANCE SHEET DATA (end of period):




Cash and cash equivalents

$

264,802



$

234,127


Working capital

89,398



78,694


Total assets

2,277,272



2,176,138


Total debt

550,461



555,962


Total debt less cash and cash equivalents

285,659



321,835


Total equity

608,403



664,160


 


















REFINING AND MARKETING SEGMENT









For the Three Months Ended


For the Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


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

STATEMENTS OF OPERATIONS DATA:








Net sales (7)

$

859,123



$

950,926



$

2,385,649



$

3,036,458


Operating costs and expenses:








Cost of sales

767,796



781,731



2,140,156



2,505,983


Direct operating expenses

61,366



58,162



181,072



170,454


Selling, general and administrative expenses

15,867



23,190



53,072



59,469


Depreciation and amortization

31,504



26,363



92,802



80,366


Total operating costs and expenses

876,533



889,446



2,467,102



2,816,272


Gain (loss) on disposition of assets



1



(2,079)



523


Operating income (loss)

$

(17,410)



$

61,481



$

(83,532)



$

220,709


KEY OPERATING STATISTICS:








Per barrel of throughput:








Refinery operating margin – Big Spring (8)

$

9.22



$

16.71



$

8.52



$

15.95


Refinery operating margin – Krotz Springs (8)

3.42



6.66



2.94



8.05


California renewable fuel operating margin (9)

55.81



N/A



55.46



N/A


Refinery direct operating expense – Big Spring (10)

3.90



3.46



3.85



3.53


Refinery direct operating expense – Krotz Springs (10)

3.81



3.82



3.91



3.70


California renewable fuel direct operating expense (10)

18.66



N/A



20.95



N/A


Capital expenditures

$

10,218



$

18,627



$

40,337



$

35,503


Capital expenditures for turnarounds and catalysts

5,192



7,047



29,464



11,410


PRICING STATISTICS:








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








Gulf Coast (10)

$

13.31



$

19.77



$

12.57



$

19.08


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








Gulf Coast high sulfur diesel (11)

$

8.49



$

12.57



$

7.73



$

12.05


WTI Cushing crude oil (per barrel)

$

44.88



$

46.41



$

41.23



$

50.91


Crude oil differentials (per barrel):








WTI Cushing less WTI Midland (12)

$

0.31



$

(0.72)



$

0.12



$

0.60


WTI Cushing less WTS (12)

0.92



(1.46)



0.53



0.02


LLS less WTI Cushing (12)

1.74



3.89



1.79



4.27


Brent less WTI Cushing (12)

0.74



3.78



0.35



4.28


Brent less LLS (12)

(1.92)



(0.26)



(1.48)



0.30


Product prices (dollars per gallon):








Gulf Coast unleaded gasoline

$

1.39



$

1.61



$

1.30



$

1.66


Gulf Coast ultra-low sulfur diesel

1.37



1.52



1.25



1.68


Gulf Coast high sulfur diesel

1.23



1.39



1.12



1.54


Natural gas (per MMBtu)

2.79



2.73



2.34



2.76


 


























THROUGHPUT AND PRODUCTION DATA:

BIG SPRING REFINERY

For the Three Months Ended


For the Nine Months Ended

September 30,


September 30,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTS crude

34,292



48.9



30,810



40.6



32,189



46.3



35,041



47.0


WTI crude

32,503



46.4



42,503



56.1



34,428



49.4



36,834



49.4


Blendstocks

3,268



4.7



2,484



3.3



2,969



4.3



2,687



3.6


Total refinery throughput (13)

70,063



100.0



75,797



100.0



69,586



100.0



74,562



100.0


Refinery production:
















Gasoline

33,637



48.1



37,503



49.5



33,826



48.7



37,155



49.6


Diesel/jet

26,004



37.2



28,623



37.8



25,108



36.1



27,596



36.9


Asphalt

2,818



4.0



2,452



3.2



2,846



4.1



2,733



3.7


Petrochemicals

3,861



5.5



4,588



6.1



3,611



5.2



4,770



6.4


Other

3,661



5.2



2,595



3.4



4,084



5.9



2,510



3.4


Total refinery production (14)

69,981



100.0



75,761



100.0



69,475



100.0



74,764



100.0


Refinery utilization (15)



99.1

%




100.4

%




95.5

%




98.5

%


























THROUGHPUT AND PRODUCTION DATA:

KROTZ SPRINGS REFINERY

For the Three Months Ended


For the Nine Months Ended

September 30,


September 30,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTI crude

26,381



39.0



21,347



30.4



18,728



27.9



27,010



36.9


Gulf Coast sweet crude

38,639



57.1



43,338



61.7



43,520



64.8



41,838



57.1


Blendstocks

2,684



3.9



5,588



7.9



4,896



7.3



4,390



6.0


Total refinery throughput (13)

67,704



100.0



70,273



100.0



67,144



100.0



73,238



100.0


Refinery production:
















Gasoline

33,229



48.4



32,802



45.7



33,537



49.0



34,274



45.8


Diesel/jet

25,229



36.7



29,943



41.8



25,472



37.2



31,041



41.5


Heavy Oils

1,295



1.9



1,299



1.8



1,263



1.9



1,337



1.8


Other

8,945



13.0



7,676



10.7



8,113



11.9



8,168



10.9


Total refinery production (14)

68,698



100.0



71,720



100.0



68,385



100.0



74,820



100.0


Refinery utilization (15)



87.9

%




87.4

%




84.1

%




93.0

%


























THROUGHPUT AND PRODUCTION DATA:

CALIFORNIA RENEWABLE FUELS PROJECT

For the Three Months Ended


For the Nine Months Ended

September 30,


September 30,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Throughput:
















Tallow/vegetable oils

2,582



100.0







2,000



100.0






Total throughput (13)

2,582



100.0







2,000



100.0






Production:
















Renewable diesel

2,236



88.7







1,662



87.3






Renewable jet

182



7.2







125



6.6






Naphtha

103



4.1







109



5.7






Other









7



0.4






Total production (14)

2,521



100.0







1,903



100.0






 

 


















ASPHALT SEGMENT









For the Three Months Ended


For the Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(dollars in thousands, except per ton data)

STATEMENTS OF OPERATIONS DATA:








Net sales (16)

$

73,800



$

88,436



$

195,396



$

208,988


Operating costs and expenses:








Cost of sales (16) (17)

54,873



59,031



150,064



174,085


Direct operating expenses

6,729



6,885



18,822



21,654


Selling, general and administrative expenses

1,252



2,706



8,497



7,237


Depreciation and amortization

1,264



1,313



3,785



3,665


Total operating costs and expenses

64,118



69,935



181,168



206,641


Operating income (20)

$

9,682



$

18,501



$

14,228



$

2,347


KEY OPERATING STATISTICS:








Blended asphalt sales volume (tons in thousands) (18)

167



174



410



347


Non-blended asphalt sales volume (tons in thousands) (19)

17



8



64



41


Blended asphalt sales price per ton (18)

$

408.47



$

494.45



$

402.43



$

496.63


Non-blended asphalt sales price per ton (19)

166.53



132.13



148.00



281.22


Asphalt margin per ton (20)

93.57



120.39



96.25



106.60


Capital expenditures

$

919



$

840



$

1,994



$

2,484



















RETAIL SEGMENT









For the Three Months Ended


For the Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(dollars in thousands, except per gallon data)

STATEMENTS OF OPERATIONS DATA:








Net sales (1)

$

193,511



$

208,856



$

543,744



$

591,475


Operating costs and expenses:








Cost of sales (17)

155,948



170,445



434,929



479,680


Selling, general and administrative expenses

29,478



28,024



84,999



81,651


Depreciation and amortization

3,392



3,024



10,141



9,004


Total operating costs and expenses

188,818



201,493



530,069



570,335


Gain on disposition of assets

522



22



519



72


Operating income

$

5,215



$

7,385



$

14,194



$

21,212


KEY OPERATING STATISTICS:








Number of stores (end of period) (21)

307



308



307



308


Retail fuel sales (thousands of gallons)

54,107



51,386



154,989



146,992


Retail fuel sales (thousands of gallons per site per month) (21)

61



59



58



57


Retail fuel margin (cents per gallon) (22)

19.9



21.7



20.2



21.8


Retail fuel sales price (dollars per gallon) (23)

$

2.02



$

2.38



$

1.92



$

2.34


Merchandise sales

$

83,988



$

86,567



$

245,486



$

247,547


Merchandise sales (per site per month) (21)

$

91



$

96



$

89



$

93


Merchandise margin (24)

31.7

%


31.4

%


31.4

%


32.1

%

Capital expenditures

$

869



$

5,365



$

4,780



$

14,883





















 



(1)

Includes excise taxes on sales by the retail segment of $21,126 and $20,068 for the three months ended September 30, 2016 and 2015, respectively, and $60,515 and $57,493 for the nine months ended September 30, 2016 and 2015, respectively.



(2)

Includes corporate headquarters selling, general and administrative expenses of $183 and $180 for the three months ended September 30, 2016 and 2015, respectively, and $557 and $532 for the nine months ended September 30, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(3)

Includes corporate depreciation and amortization of $718 and $333 for the three months ended September 30, 2016 and 2015, respectively, and $1,997 and $1,227 for the nine months ended September 30, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(4)

The following table provides a reconciliation of net income (loss) available to stockholders under United States generally accepted accounting principles ("GAAP") to adjusted net income (loss) available to stockholders utilized in determining adjusted earnings (loss) per share, excluding after-tax employee retention expense, after-tax (gain) loss on asphalt inventory adjustment, after-tax unrealized (gains) losses on commodity swaps and after-tax (gain) loss on disposition of assets. Adjusted net income (loss) available to stockholders is not a recognized measurement under GAAP; however, the amounts included in adjusted net income (loss) available to stockholders are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of adjusted net income (loss) available to stockholders and adjusted earnings (loss) per share, excluding these items, is useful to investors because it provides a more meaningful measurement for evaluation of our Company's operating results.






















For the Three Months Ended


For the Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(dollars in thousands)


Net income (loss) available to stockholders

$

(8,800)



$

41,936



$

(64,707)



$

105,285



Exclude adjustments:









Employee retention expense

2,000



8,666



8,700



10,000



(Gain) loss on asphalt inventory adjustment

(1,711)



(7,494)



292



6,456



Unrealized (gains) losses on commodity swaps

3,888



(1,089)



11,032



(9,014)



(Gain) loss on disposition of assets

(522)



(23)



1,560



(595)



Total adjustments

3,655



60



21,584



6,847



Income tax impact related to adjustments

(1,588)



(15)



(7,686)



(1,941)



Non-controlling interest impact related to adjustments

(13)





(87)



(72)



Adjusted net income (loss) available to stockholders

$

(6,746)



$

41,981



$

(50,896)



$

110,119



Adjusted earnings (loss) per share *

$

(0.09)



$

0.60



$

(0.72)



$

1.58







*

Adjusted earnings (loss) per share includes the effects of dividends on preferred stock on adjusted net income (loss) available to stockholders necessary to calculate earnings per share.





(5)


Adjusted EBITDA represents earnings before net income attributable to non-controlling interest, income tax expense (benefit), interest expense, depreciation and amortization, (gain) loss on disposition of assets and unrealized (gains) losses on commodity swaps. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of net income attributable to non-controlling interest, income tax expense (benefit), interest expense, (gain) loss on disposition of assets, unrealized (gains) losses on commodity swaps and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.



























Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:






Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;






Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;






Adjusted EBITDA does not reflect the prior claim that non-controlling interest have on the income generated by non-wholly-owned subsidiaries;






Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and






Our calculation of Adjusted EBITDA may differ from EBITDA calculations of other companies in our industry, limiting its usefulness as a comparative measure.






Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.






The following table reconciles net income (loss) available to stockholders to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015:
























For the Three Months Ended


For the Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(dollars in thousands)


      Net income (loss) available to stockholders

$

(8,800)



$

41,936



$

(64,707)



$

105,285



      Net income attributable to non-controlling interest

1,462



10,440



679



29,008



      Income tax expense (benefit)

(5,641)



17,325



(35,406)



53,142



      Interest expense

16,027



20,696



53,133



59,950



      Depreciation and amortization

36,878



31,033



108,725



94,262



      (Gain) loss on disposition of assets

(522)



(23)



1,560



(595)



      Unrealized (gains) losses on commodity swaps

3,888



(1,089)



11,032



(9,014)



      Adjusted EBITDA

$

43,292



$

120,318



$

75,016



$

332,038





Adjusted EBITDA does not exclude (gains) losses of $(1,711) and $(7,494) for the three months ended September 30, 2016 and 2015, respectively, and $292 and $6,456 for the nine months ended September 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory.





(6)

Includes corporate capital expenditures of $588 and $1,379 for the three months ended September 30, 2016 and 2015, respectively, and $2,713 and $4,392 for the nine months ended September 30, 2016 and 2015, respectively, which are not allocated to our three operating segments.





(7)

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





(8)

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






The refinery operating margin for the three and nine months ended September 30, 2016 excludes realized and unrealized gains (losses) on commodity swaps of $(66) and $395, respectively.






The refinery operating margin for the three and nine months ended September 30, 2015 excludes realized and unrealized gains on commodity swaps of $12,101 and $49,456, respectively. For the nine months ended September 30, 2015, $8,569 related substantially to inventory adjustments was not included in cost of sales for either the Big Spring refinery or the Krotz Springs refinery.





(9)

The California renewable fuels project operating margin is a per barrel measurement calculated by dividing the project's margin between net sales and cost of sales by the project's throughput volumes. Included in net sales are environmental credits in the form of RINs, low-carbon fuel standards credits and blender's tax credits generated by the project.





(10)

Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses at our refineries by the applicable refinery's total throughput volumes.





(11)

We compare our Big Spring refinery's operating margin to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that three barrels of WTI Cushing crude oil are converted, or cracked, into two barrels of Gulf Coast conventional gasoline and one barrel of Gulf Coast ultra-low sulfur diesel.






We compare our Krotz Springs refinery's operating margin to the Gulf Coast 2/1/1 high sulfur diesel crack spread. A Gulf Coast 2/1/1 high sulfur diesel crack spread is calculated assuming that two barrels of LLS crude oil are converted into one barrel of Gulf Coast conventional gasoline and one barrel of Gulf Coast high sulfur diesel.





(12)

The WTI Cushing less WTI Midland spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTI Midland crude oil. The WTI Cushing less WTS, or sweet/sour, spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTS crude oil. The LLS less WTI Cushing spread represents the differential between the average price per barrel of LLS crude oil and the average price per barrel of WTI Cushing crude oil. The Brent less WTI Cushing spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of WTI Cushing crude oil. The Brent less LLS spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of LLS crude oil.





(13)

Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process. Total throughput for the California renewable fuels project represents the total barrels per day of tallow and vegetable oils used by the project.





(14)

Total refinery production represents the barrels per day of various products produced from processing crude and other refinery feedstocks through the crude units and other conversion units at the refineries. Total production for the California renewable fuels project represents the total barrels per day produced from processing tallow and vegetable oils through the project's units.





(15)

Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds.





(16)

Net sales and cost of sales include asphalt purchases sold as part of a supply and offtake arrangement of $2,754 and $1,344 for the three months ended September 30, 2016 and 2015, respectively, and $20,926 and $25,126 for the nine months ended September 30, 2016 and 2015, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics.





(17)

Cost of sales includes intersegment purchases of asphalt blends and motor fuels from our refining and marketing segment at prices which approximate wholesale market prices. These intersegment purchases are eliminated through consolidation of our financial statements.





(18)

Blended asphalt represents base material asphalt that has been blended with other materials necessary to sell the asphalt as a finished product.





(19)

Non-blended asphalt represents base material asphalt and other components that require additional blending before being sold as a finished product.





(20)

Asphalt margin is a per ton measurement calculated by dividing the margin between net sales and cost of sales by the total sales volume. Asphalt margins are used in the asphalt industry to measure operating results related to asphalt sales.






Asphalt margin excludes (gains) losses of $(1,711) and $(7,494) for the three months ended September 30, 2016 and 2015, respectively, and $292 and $6,456 for the nine months ended September 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. These (gains) losses are included in operating income (loss) above.





(21)

At September 30, 2016, we had 307 retail convenience stores of which 297 sold fuel. At September 30, 2015, we had 308 retail convenience stores of which 297 sold fuel.






The 14 retail convenience stores acquired in August 2015 have been included in the per site key operating statistics only for the period after acquisition.





(22)

Retail fuel margin represents the difference between retail fuel sales revenue and the net cost of purchased retail fuel, including transportation costs and associated excise taxes, expressed on a cents-per-gallon basis. Retail fuel margins are frequently used in the retail industry to measure operating results related to retail fuel sales.





(23)

Retail fuel sales price per gallon represents the average sales price for retail fuels sold through our retail convenience stores.





(24)

Merchandise margin represents the difference between merchandise sales revenues and the delivered cost of merchandise purchases, net of rebates and commissions, expressed as a percentage of merchandise sales revenues.






Merchandise margins, also referred to as in-store margins, are commonly used in the retail industry to measure in-store, or non-fuel, operating results.


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-third-quarter-2016-results-300353074.html

SOURCE Alon USA Energy, Inc.

Alon USA Partners, LP Reports Third Quarter 2016 Results and Declares Quarterly Cash Distribution

Wed, 10/26/2016 - 17:07
Schedules conference call for October 28, 2016 at 9:30 a.m. Eastern

DALLAS, Oct. 26, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the third quarter of 2016. Net income for the third quarter of 2016 was $2.1 million, or $0.03 per unit, compared to $53.8 million, or $0.86 per unit, for the same period last year. Net loss for the first nine months of 2016 was $(5.3) million, or $(0.08) per unit, compared to net income of $149.7 million, or $2.39 per unit, for the same period last year.

The Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a cash distribution for the third quarter of 2016 of $0.15 per unit payable on November 22, 2016 to common unitholders of record at the close of business on November 11, 2016, based on cash available for distribution of $9.4 million.

Paul Eisman, President and CEO commented, "Our third quarter results reflect a continuation of the difficult refining environment experienced in the first two quarters of 2016. While crack spreads were relatively flat with the second quarter of 2016, the average benchmark crack spread in the third quarter was down approximately $6.50 per barrel relative to the same quarter last year. As discussed in our previous earnings release, our third quarter results were also negatively impacted by a reformer regeneration in August. We estimate that the lost opportunity cost and maintenance expense associated with the reformer regeneration negatively impacted Alon Partners' adjusted EBITDA by approximately $8 million which reduced cash available for distribution by $0.13 per unit for the third quarter. Additionally, high RINs costs continue to weigh on our profitability.

"The Big Spring refinery achieved total throughput of 70,000 barrels per day and generated refinery operating margin of $9.22 per barrel. Our direct operating expense of $3.90 per barrel was negatively impacted by the reformer regeneration, which lowered throughput volumes and increased maintenance expense. We expect total throughput to average approximately 77,000 barrels per day for the fourth quarter of 2016. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the fourth quarter of 2016."

THIRD QUARTER 2016

Refinery operating margin was $9.22 per barrel for the third quarter of 2016 compared to $16.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and increased RINs costs, partially offset by a widening of both the WTI Cushing to WTI Midland and WTI Cushing to WTS spreads and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for the third quarter of 2016 was 70,063 barrels per day ("bpd") compared to 75,797 bpd for the same period in 2015. The reduced throughput was the result of a reformer regeneration during the third quarter of 2016.

The average Gulf Coast 3/2/1 crack spread was $13.31 per barrel for the third quarter of 2016 compared to $19.77 per barrel for the third quarter of 2015. The average WTI Cushing to WTI Midland spread for the third quarter of 2016 was $0.31 per barrel compared to $(0.72) per barrel for the third quarter of 2015. The average WTI Cushing to WTS spread for the third quarter of 2016 was $0.92 per barrel compared to $(1.46) per barrel for the third quarter of 2015. The average Brent to WTI Cushing spread for the third quarter of 2016 was $0.74 per barrel compared to $3.78 per barrel for the same period in 2015. The contango environment in the third quarter of 2016 created an average cost of crude benefit of $0.84 per barrel compared to an average cost of crude benefit of $0.57 per barrel for the same period in 2015. The average RINs cost effect on refinery operating margin was $0.58 per barrel in the third quarter of 2016, compared to $0.27 per barrel for the same period in 2015.

YEAR-TO-DATE 2016

Refinery operating margin was $8.52 per barrel for the first nine months of 2016 compared to $15.95 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and a narrowing of the WTI Cushing to WTI Midland spread, partially offset by a widening of the WTI Cushing to WTS spread and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for the first nine months of 2016 was 69,586 bpd compared to 74,562 bpd for the same period in 2015. The reduced throughput during the first nine months of 2016 was the result of a reformer regeneration during the first quarter of 2016, which was repeated during the third quarter of 2016. Additionally, throughput was reduced as a result of a catalyst replacement for our diesel hydrotreater unit in the first quarter of 2016 and unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units.

The average Gulf Coast 3/2/1 crack spread was $12.57 per barrel for the first nine months of 2016 compared to $19.08 per barrel for the same period in 2015. The average WTI Cushing to WTI Midland spread for the first nine months of 2016 was $0.12 per barrel compared to $0.60 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first nine months of 2016 was $0.53 per barrel compared to $0.02 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first nine months of 2016 was $0.35 per barrel compared to $4.28 per barrel for the same period in 2015. The contango environment for the first nine months of 2016 created an average cost of crude benefit of $1.39 per barrel compared to an average cost of crude benefit of $1.04 per barrel for the same period in 2015.

CONFERENCE CALL

Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time), to discuss the third quarter 2016 financial results. To access the call, please dial 877-404-9648, or 412-902-0030 for international callers, and ask for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com. A telephonic replay of the conference call will be available through November 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646174#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

This release serves as qualified notice to nominees under Treasury Regulation Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Alon Partners' distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not Alon Partners, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

Any statements in this release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Partners GP, LLC
972-367-3808




Investors: Jack Lascar
Dennard § Lascar Associates, LLC

713-529-6600

 

Media: Blake Lewis
Lewis Public Relations
214-635-3020

 

- Tables to follow -

 

ALON USA PARTNERS, LP AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE






RESULTS OF OPERATIONS - FINANCIAL DATA

(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2015, IS UNAUDITED)

For the Three Months Ended


For the Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


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

STATEMENTS OF OPERATIONS DATA:








Net sales (1)

$

462,257



$

551,813



$

1,298,723



$

1,719,319


Operating costs and expenses:








Cost of sales

404,207



439,678



1,134,275



1,397,395


Direct operating expenses

25,125



24,136



73,424



71,837


Selling, general and administrative expenses

8,153



8,536



24,264



24,654


Depreciation and amortization

14,581



13,697



43,454



41,281


Total operating costs and expenses

452,066



486,047



1,275,417



1,535,167


Operating income

10,191



65,766



23,306



184,152


Interest expense

(8,144)



(11,505)



(28,651)



(34,045)


Other income, net

353



40



550



26


Income (loss) before state income tax expense

2,400



54,301



(4,795)



150,133


State income tax expense

317



525



493



480


Net income (loss)

$

2,083



$

53,776



$

(5,288)



$

149,653


Earnings (loss) per unit

$

0.03



$

0.86



$

(0.08)



$

2.39


Weighted average common units outstanding (in thousands)

62,520



62,510



62,515



62,508


Cash distribution per unit

$

0.14



$

1.04



$

0.22



$

2.45


CASH FLOW DATA:








Net cash provided by (used in):








Operating activities

$

11,870



$

84,834



$

58,457



$

219,232


Investing activities

(5,954)



(5,532)



(26,878)



(15,322)


Financing activities

36,027



(93,908)



39,231



(174,957)


OTHER DATA:








Adjusted EBITDA (2)

$

25,125



$

79,503



$

67,310



$

225,459


Capital expenditures

4,499



4,322



17,199



12,108


Capital expenditures for turnarounds and catalysts

1,455



1,210



9,679



3,214


KEY OPERATING STATISTICS:








Per barrel of throughput:








Refinery operating margin (3)

$

9.22



$

16.71



$

8.52



$

15.95


Refinery direct operating expense (4)

3.90



3.46



3.85



3.53


PRICING STATISTICS:








Crack spreads (per barrel):








Gulf Coast 3/2/1 (5)

$

13.31



$

19.77



$

12.57



$

19.08


WTI Cushing crude oil (per barrel)

$

44.88



$

46.41



$

41.23



$

50.91


Crude oil differentials (per barrel):








WTI Cushing less WTI Midland (6)

$

0.31



$

(0.72)



$

0.12



$

0.60


WTI Cushing less WTS (6)

0.92



(1.46)



0.53



0.02


Brent less WTI Cushing (6)

0.74



3.78



0.35



4.28


Product price (dollars per gallon):








Gulf Coast unleaded gasoline

$

1.39



$

1.61



$

1.30



$

1.66


Gulf Coast ultra-low sulfur diesel

1.37



1.52



1.25



1.68


Natural gas (per MMBtu)

2.79



2.73



2.34



2.76


 










September 30,
2016


December 31,
2015

BALANCE SHEET DATA (end of period):

 (dollars in thousands)

Cash and cash equivalents

$

203,763



$

132,953


Working capital

10,460



(53,804)


Total assets

825,050



748,584


Total debt

291,486



292,082


Total debt less cash and cash equivalents

87,723



159,129


Total partners' equity

111,968



130,957



























THROUGHPUT AND PRODUCTION DATA:

For the Three Months Ended


For the Nine Months Ended

September 30,


September 30,


2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTS crude

34,292



48.9



30,810



40.6



32,189



46.3



35,041



47.0


WTI crude

32,503



46.4



42,503



56.1



34,428



49.4



36,834



49.4


Blendstocks

3,268



4.7



2,484



3.3



2,969



4.3



2,687



3.6


Total refinery throughput (7)

70,063



100.0



75,797



100.0



69,586



100.0



74,562



100.0


Refinery production:
















Gasoline

33,637



48.1



37,503



49.5



33,826



48.7



37,155



49.6


Diesel/jet

26,004



37.2



28,623



37.8



25,108



36.1



27,596



36.9


Asphalt

2,818



4.0



2,452



3.2



2,846



4.1



2,733



3.7


Petrochemicals

3,861



5.5



4,588



6.1



3,611



5.2



4,770



6.4


Other

3,661



5.2



2,595



3.4



4,084



5.9



2,510



3.4


Total refinery production (8)

69,981



100.0



75,761



100.0



69,475



100.0



74,764



100.0


Refinery utilization (9)



99.1

%




100.4

%




95.5

%




98.5

%

























 







CASH AVAILABLE FOR DISTRIBUTION DATA:


For the Three
Months Ended



September 30, 2016



(dollars in
thousands, except
per unit data)




Net sales (1)


$

462,257


Operating costs and expenses:



Cost of sales


404,207


Direct operating expenses


25,125


Selling, general and administrative expenses


8,153


Depreciation and amortization


14,581


Total operating costs and expenses


452,066


Operating income


10,191


Interest expense


(8,144)


Other income, net


353


Income before state income tax expense


2,400


State income tax expense


317


Net income


2,083


Adjustments to reconcile net loss to Adjusted EBITDA:



Interest expense


8,144


State income tax expense


317


Depreciation and amortization


14,581


Adjusted EBITDA (2)


25,125


Adjustments to reconcile Adjusted EBITDA to cash available for distribution:



less: Maintenance/growth capital expenditures


4,499


less: Turnaround and catalyst replacement capital expenditures


1,455


less: Major turnaround reserve for future years


1,500


less: Principal payments


625


less: State income tax payments


317


less: Interest paid in cash


7,337


Calculated cash available for distribution


$

9,392





Common units outstanding (in 000's)


62,520





Cash available for distribution per unit


$

0.15






________________




(1)

Includes sales to related parties of $82,717 and $97,014 for the three months ended September 30, 2016 and 2015, respectively, and $222,711 and $281,136 for the nine months ended September 30, 2016 and 2015, respectively.



(2)

Adjusted EBITDA represents earnings before state income tax expense, interest expense and depreciation and amortization. Adjusted EBITDA is not a recognized measurement under GAAP; however, the amounts included in Adjusted EBITDA are derived from amounts included in our consolidated financial statements. Our management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. In addition, our management believes that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of state income tax expense, interest expense and the accounting effects of capital expenditures and acquisitions, items that may vary for different companies for reasons unrelated to overall operating performance.




Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:




Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;




Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;




Adjusted EBITDA does not reflect changes in or cash requirements for our working capital needs; and




Our calculation of Adjusted EBITDA may differ from EBITDA calculations of other companies in our industry, limiting its usefulness as a comparative measure.




Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.




The following table reconciles net income (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015:
















For the Three Months Ended


For the Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(dollars in thousands)


    Net income (loss)

$

2,083


$

53,776


$

(5,288)


$

149,653


    State income tax expense


317



525



493



480


    Interest expense


8,144



11,505



28,651



34,045


    Depreciation and amortization


14,581



13,697



43,454



41,281


    Adjusted EBITDA

$

25,125


$

79,503


$

67,310


$

225,459




(3)

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




Refinery operating margin for the three and nine months ended September 30, 2016 excludes gains (losses) related to inventory adjustments of $(1,419) and $2,046, respectively. Refinery operating margin for the three and nine months ended September 30, 2015 excludes losses related to inventory adjustments of $(4,385) and $(2,763), respectively.



(4)

Refinery direct operating expense is a per barrel measurement calculated by dividing direct operating expenses by total throughput volumes.



(5)

We compare our refinery operating margin to the Gulf Coast 3/2/1 crack spread. A Gulf Coast 3/2/1 crack spread is calculated assuming that three barrels of WTI Cushing crude oil are converted, or cracked, into two barrels of Gulf Coast conventional gasoline and one barrel of Gulf Coast ultra-low sulfur diesel.



(6)

The WTI Cushing less WTI Midland spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTI Midland crude oil. The WTI Cushing less WTS, or sweet/sour, spread represents the differential between the average price per barrel of WTI Cushing crude oil and the average price per barrel of WTS crude oil. The Brent less WTI Cushing spread represents the differential between the average price per barrel of Brent crude oil and the average price per barrel of WTI Cushing crude oil.



(7)

Total refinery throughput represents the total barrels per day of crude oil and blendstock inputs in the refinery production process.



(8)

Total refinery production represents the barrels per day of various refined products produced from processing crude and other refinery feedstocks through the crude units and other conversion units.



(9)

Refinery utilization represents average daily crude oil throughput divided by crude oil capacity, excluding planned periods of downtime for maintenance and turnarounds.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-lp-reports-third-quarter-2016-results-and-declares-quarterly-cash-distribution-300352102.html

SOURCE Alon USA Partners, LP

Alon USA Energy, Inc. Announces Receipt of Proposal to Purchase Its Outstanding Common Stock

Mon, 10/17/2016 - 05:30

DALLAS, Oct. 17, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (the "Company" or "Alon") (NYSE: ALJ) today announced that it received an offer from Delek US Holdings, Inc. ("Delek") (NYSE: DK) to acquire all of the Company's outstanding shares of common stock not already owned by Delek in an all-stock transaction at a fixed exchange ratio of 0.44 shares of Delek common stock for each outstanding share of the common stock of Alon.  The proposal was submitted to a committee (the "Special Committee") of members of the board of directors of Alon.  As previously disclosed, the Special Committee has reviewed a number of strategic alternatives, including a potential business combination with Delek.  The Special Committee is comprised of directors independent of Delek.

The Special Committee intends to consider Delek's proposal and determine how to respond.  The Special Committee does not intend to disclose or comment further on its analysis or any developments until it determines that such disclosure or comment is appropriate or necessary.

The Special Committee has retained J.P. Morgan as its financial advisor and Gibson Dunn & Crutcher LLP as its legal advisor to assist with its assessment of alternatives. 

Any transaction will be subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement and the transactions contemplated thereunder by the board of directors of Delek and the Special Committee, as well as Alon's stockholders other than Delek.  There can be no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated.

This communication does not constitute an offer to sell any securities. Any such offer will be made only by means of a prospectus, and only if and when a definitive agreement has been entered into by Delek and Alon, pursuant to a registration statement filed with the Securities and Exchange Commission (the "SEC").

If Alon and Delek execute a definitive agreement, one or more registration statements, proxy statements, tender offer statements or other filings may be filed with the SEC.  If and when applicable, investors and security holders are urged to carefully read the documents filed with the SEC regarding the proposed transaction when they become available, because they will contain important information about Delek, Alon and the proposed transaction. If and when applicable, investors and security holders may obtain a free copy of the proxy statement / prospectus and other documents containing information about Delek and Alon, without charge, at the SEC's website at www.sec.gov.

Delek, Alon and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Alon's stockholders in connection with the proposed transaction. Information about the directors and executive officers of Delek is set forth in its proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on April 9, 2016. Information about the directors and executive officers of Alon is set forth in Alon's proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on April 1, 2016. These documents can be obtained without charge at the SEC's website indicated above. Additional information regarding the interests of these participants may be obtained by reading the proxy statement / prospectus regarding the proposed transaction when it becomes available.

About Alon USA Energy, Inc.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP, which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon owns a majority interest in a renewable fuels project in California, with a throughput capacity of 2,500 barrels per day. Alon is a leading marketer of asphalt, which it distributes primarily through asphalt terminals located predominately in the Southwestern and Western United States. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores which also market motor fuels in Central and West Texas and New Mexico.

Forward Looking Statements

This release contains certain "forward-looking statements" which reflect the Company's views and assumptions on the date of this Current Report on Form 8-K regarding future events, results or outcomes. These forward-looking statements include statements about, among other things, the transactions described in Delek's proposal. These statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the Company's control, including the risk that the proposed transaction is not consummated at all or on the initial terms proposed or any other terms, that may cause actual results to differ materially from any future events, results, performance or achievements expressed or implied by the forward-looking statements. All forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update or revise publicly any such forward-looking statements. The Company cautions you not to place undue reliance on these forward-looking statements. Please refer to the Company's filings with the SEC for more detailed information regarding these risks, uncertainties and assumptions.

Contacts: 

Stacey Morris


Investor Relations Manager


Alon USA Energy, Inc.


972-367-3808




Investors:  Jack Lascar


Dennard ▪ Lascar Associates, LLC         


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-announces-receipt-of-proposal-to-purchase-its-outstanding-common-stock-300345591.html

SOURCE Alon USA Energy, Inc.

Alon USA Partners Announces Third Quarter 2016 Earnings Release And Conference Call Schedule

Tue, 09/27/2016 - 15:35

DALLAS, Sept. 27, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced that it will release its third quarter 2016 financial results on Wednesday, October 26, 2016 after the market closes. In conjunction with the release, Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time).

What:

Alon USA Partners, LP Third Quarter 2016 Earnings Conference Call

When:

Friday, October 28, 2016 - 9:30 a.m. Eastern Time

Where:

Live via phone by dialing 877-404-9648, or 412-902-0030 for international callers, and asking for the Alon Partners call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon Partners website at www.alonpartners.com.

A telephonic replay of the conference call will be available through November 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646174#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard ▪ Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ) ("Alon Energy"). Alon Partners owns and operates a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

Contacts:

Stacey Morris


Investor Relations Manager


Alon USA Partners GP, LLC


972-367-3808




Investors:  Jack Lascar


Dennard ▪ Lascar Associates, LLC         


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-partners-announces-third-quarter-2016-earnings-release-and-conference-call-schedule-300334896.html

SOURCE Alon USA Partners, LP

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