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The latest news released by Alon USA Energy, Inc. (ALJ)
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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

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

Tue, 09/27/2016 - 15:30

DALLAS, Sept. 27, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced that it will release its third quarter 2016 financial results on Thursday, October 27, 2016 after the market closes. In conjunction with the release, Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, October 28, 2016 at 10:30 a.m. Eastern Time (9:30 a.m. Central Time).

What:

Alon USA Energy, Inc. Third Quarter 2016 Earnings Conference Call

When:

Friday, October 28, 2016 – 10:30 a.m. Eastern Time

Where:

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

A telephonic replay of the conference call will be available through November 4, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13646162#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard ▪ Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

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

Contacts:

Stacey Morris


Investor Relations Manager


Alon USA Energy, Inc.


972-367-3808




Investors:  Jack Lascar


Dennard ▪ Lascar Associates, LLC         


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-announces-third-quarter-2016-earnings-release-and-conference-call-schedule-300334874.html

SOURCE Alon USA Energy, Inc.

Alon USA Energy To Participate In The Barclays CEO Energy-Power Conference

Wed, 08/31/2016 - 15:30

DALLAS, Aug. 31, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will attend the 2016 Barclays CEO Energy-Power Conference to be held on September 6-8, 2016 in New York City.

Paul Eisman, President and Chief Executive Officer, will participate in one-on-one meetings with investors to discuss both Alon USA Energy and Alon USA Partners, LP (NYSE: ALDW) on September 7, 2016.

The related meeting materials will be available beginning the morning of September 7, 2016 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.com/ as well as on the News & Events section of the Alon USA Partners website at www.alonpartners.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP, which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon 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-barclays-ceo-energy-power-conference-300320914.html

SOURCE Alon USA Energy, Inc.

Alon USA Energy To Participate In The Barclays CEO Energy-Power Conference

Wed, 08/31/2016 - 15:30

DALLAS, Aug. 31, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) today announced that its management will attend the 2016 Barclays CEO Energy-Power Conference to be held on September 6-8, 2016 in New York City.

Paul Eisman, President and Chief Executive Officer, will participate in one-on-one meetings with investors to discuss both Alon USA Energy and Alon USA Partners, LP (NYSE: ALDW) on September 7, 2016.

The related meeting materials will be available beginning the morning of September 7, 2016 on the Investor Relations section of the Alon USA Energy website at http://ir.alonusa.com/ as well as on the News & Events section of the Alon USA Partners website at www.alonpartners.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners, LP, which owns a crude oil refinery in Big Spring, Texas, with a crude oil throughput capacity of 73,000 barrels per day and an integrated wholesale marketing business. In addition, Alon directly owns a crude oil refinery in Krotz Springs, Louisiana, with a crude oil throughput capacity of 74,000 barrels per day. Alon also owns crude oil refineries in California, which have not processed crude oil since 2012. Alon 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-barclays-ceo-energy-power-conference-300320914.html

SOURCE Alon USA Energy, Inc.

Alon USA Energy, Inc. Reports Second Quarter 2016 Results

Thu, 07/28/2016 - 18:43
Declares Quarterly Cash Dividend Schedules conference call for July 29, 2016 at 10:30 a.m. Eastern

DALLAS, July 28, 2016 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the second quarter of 2016. Net loss available to stockholders for the second quarter of 2016 was $(20.4) million, or $(0.29) per share, compared to net income available to stockholders of $36.4 million, or $0.52 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(14.9) million, or $(0.21) per share, for the second quarter of 2016, compared to net income available to stockholders of $46.4 million, or $0.67 per share, for the same period last year.

Net loss available to stockholders for the first half of 2016 was $(55.9) million, or $(0.80) per share, compared to net income available to stockholders of $63.3 million, or $0.91 per share, for the same period last year. Excluding special items, Alon recorded net loss available to stockholders of $(44.2) million, or $(0.63) per share, for the first half of 2016, compared to net income available to stockholders of $68.0 million, or $0.98 per share, for the same period last year.

Paul Eisman, President and CEO, commented, "The refining environment in the second quarter of 2016 remained challenging as crack spreads were pressured by high product inventories. The average Gulf Coast 3-2-1 benchmark crack spread for the second quarter of 2016 was approximately $6.50 per barrel lower than the average for the same period last year. We continue to optimize our operations and control our costs in this difficult environment.

"As previously discussed, the Big Spring refinery's second quarter results were negatively impacted by a power outage in late May. We estimate the lost opportunity cost and maintenance cost associated with the power outage negatively impacted Alon's operating income by approximately $10 million. Big Spring's refinery operating margin of $8.53 per barrel was negatively impacted by approximately $1.30 per barrel due to the unplanned downtime during the quarter. Despite the interruption to normal operations, the refinery achieved low operating costs of $3.59 per barrel. We expect to perform maintenance on the Big Spring refinery's reformer in August. As a result, we expect total throughput at the Big Spring refinery to average approximately 69,000 barrels per day for the third quarter and 70,000 barrels per day for the full year of 2016.

"The Krotz Springs refinery's results were negatively impacted by weakness in crack spreads, a larger premium in LLS crude relative to Brent crude and maintenance performed on the fluid catalytic cracking unit in the first half of April, which was previously discussed. We estimate the downtime associated with this maintenance work negatively impacted Krotz Springs' refinery operating margin by approximately $0.86 per barrel and Alon's operating income by approximately $5 million. Based on the projected margin environment, we expect total throughput at the Krotz Springs refinery to average approximately 63,000 barrels per day for the third quarter and 66,000 barrels per day for the full year of 2016.

"Our asphalt business performed very well in the second quarter with the onset of paving season. Relative to the second quarter of 2015, our asphalt sales volumes were up 43 percent, and our asphalt margin was up by 6 percent to $107 per ton. This business is benefiting from a stronger demand environment, as well as operational improvements implemented over recent quarters.

"Our retail results were negatively impacted by headwinds in the Permian Basin. However, we believe we are positioned well to benefit as the markets in which we operate improve and are expecting greater profitability in the second half of the year.

"The results of the AltAir renewable fuels project in California were negatively impacted by an increase in the price of feedstock costs (tallow) relative to the first quarter of 2016. A test run of soybean oil was successfully completed in late June, validating the feedstock flexibility of the unit."

SECOND QUARTER 2016

Special items increased net loss by $5.5 million for the second quarter of 2016 primarily as a result of employee retention expense of $2.0 million, losses of $2.0 million associated with an asphalt inventory adjustment and unrealized losses of $3.8 million associated with commodity swaps, before income tax and non-controlling interest impacts of $2.4 million. Special items reduced net income by $9.9 million for the second quarter of 2015 primarily as a result of employee retention expense of $1.3 million, losses of $3.3 million related to an asphalt inventory adjustment and unrealized losses of $10.5 million associated with commodity swaps, before income tax and non-controlling interest impacts of $5.2 million.

The combined total refinery average throughput for the second quarter of 2016 was 133,413 barrels per day ("bpd"), consisting of 71,153 bpd at the Big Spring refinery and 62,260 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 152,092 bpd for the second quarter of 2015, consisting of 75,491 bpd at the Big Spring refinery and 76,601 bpd at the Krotz Springs refinery. The reduced throughput at our Big Spring refinery was the result of unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. During the second quarter of 2016, we performed maintenance on the fluid catalytic cracking unit at the Krotz Springs refinery, which reduced total throughput for the quarter.

Refinery operating margin at the Big Spring refinery was $8.53 per barrel for the second quarter of 2016 compared to $17.22 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread, a reduced cost of crude benefit from the contango market in 2016 and the unplanned refinery downtime discussed above, partially offset by a widening of the WTI Cushing to WTS spread.

Refinery operating margin at the Krotz Springs refinery was $3.96 per barrel for the second quarter of 2016 compared to $7.95 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads, the premium in LLS compared to Brent, the refinery downtime discussed above and a reduced cost of crude benefit from the contango market in 2016.

The average Gulf Coast 3/2/1 crack spread was $13.16 per barrel for the second quarter of 2016 compared to $19.71 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread was $7.92 per barrel for the second quarter of 2016 compared to $10.21 per barrel for the same period in 2015.

The average WTI Cushing to WTI Midland spread for the second quarter of 2016 was $0.17 per barrel compared to $0.60 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the second quarter of 2016 was $0.75 per barrel compared to $(0.21) per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the second quarter of 2016 was $(0.18) per barrel compared to $3.66 per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the second quarter of 2016 was $2.04 per barrel compared to $6.28 per barrel for the same period in 2015. The average Brent to LLS spread for the second quarter of 2016 was $(1.64) per barrel compared to $0.32 per barrel for the same period in 2015.

The contango environment in the second quarter of 2016 created an average cost of crude benefit of $1.49 per barrel compared to an average cost of crude benefit of $1.90 per barrel for the same period in 2015.

Asphalt margins for the second quarter of 2016 were $106.90 per ton compared to $100.92 per ton for the same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins in the second quarter of 2016 were $105.55 per ton compared to $99.51 per ton in the second quarter of 2015.

Retail fuel margins increased to 20.8 cents per gallon in the second quarter of 2016 from 20.3 cents per gallon in the second quarter of 2015. Retail fuel sales volume increased to 50.9 million gallons in the second quarter of 2016 from 49.5 million gallons in the second quarter of 2015. Merchandise margins decreased to 31.0% in the second quarter of 2016 from 31.8% in the second quarter of 2015. Merchandise sales decreased to $83.7 million in the second quarter of 2016 from $84.9 million in the second quarter of 2015.

YEAR-TO-DATE 2016

Special items increased net loss by $11.8 million for the first half of 2016 primarily as a result of employee retention expenses of $6.7 million, losses of $2.0 million related to an asphalt inventory adjustment, unrealized losses of $7.1 million associated with commodity swaps and $2.1 million associated with losses recognized on disposition of assets, before income tax and non-controlling interest impacts of $6.2 million. Special items reduced net income by $4.6 million for the first half of 2015 primarily as a result of employee retention expense of $1.3 million and losses of $14.0 million related to an asphalt inventory adjustment, partially offset by unrealized gains of $7.9 million associated with commodity swaps and $0.6 million associated with gains recognized on disposition of assets, before income tax and non-controlling interest impacts of $2.1 million.

The combined total refinery average throughput for the first half of 2016 was 136,206 bpd, consisting of 69,345 bpd at the Big Spring refinery and 66,861 bpd at the Krotz Springs refinery, compared to a combined total refinery average throughput of 148,679 bpd for the first half of 2015, consisting of 73,934 bpd at the Big Spring refinery and 74,745 bpd at the Krotz Springs refinery. The reduced throughput at our Big Spring refinery was the result of planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit in the beginning of the first quarter of 2016, as well as unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units. The reduced throughput at the Krotz Springs refinery during the six months ended June 30, 2016 was the result of our election to reduce the crude rate to improve the refinery yield structure, as well as maintenance that was performed on the fluid catalytic cracking unit.

Refinery operating margin at the Big Spring refinery was $8.16 per barrel for the first half of 2016 compared to $15.56 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of both the WTI Cushing to WTI Midland and the WTI Cushing to WTS spreads and the refinery downtime discussed above, partially offset by the cost of crude benefit from the market moving further into contango in 2016.

Refinery operating margin at the Krotz Springs refinery was $2.69 per barrel for the first half of 2016 compared to $8.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 2/1/1 high sulfur diesel crack spread, a narrowing of both the WTI Cushing to WTI Midland and the LLS to WTI Cushing spreads, the premium in LLS compared to Brent and the refinery downtime discussed above, partially offset by the cost of crude benefit from the market moving further into contango in 2016.

The average Gulf Coast 3/2/1 crack spread for the first half of 2016 was $12.20 per barrel compared to $18.73 per barrel for the same period in 2015. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the first half of 2016 was $7.33 per barrel compared to $11.79 per barrel for the same period in 2015.

The average WTI Cushing to WTI Midland spread for the first half of 2016 was $0.02 per barrel compared to $1.27 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first half of 2016 was $0.32 per barrel compared to $0.76 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first half of 2016 was $0.15 per barrel compared to $4.54 per barrel for the same period in 2015. The average LLS to WTI Cushing spread for the first half of 2016 was $1.82 per barrel compared to $4.48 per barrel for the same period in 2015. The average Brent to LLS spread for the first half of 2016 was $(1.26) per barrel compared to $0.57 per barrel for the same period in 2015.

The contango environment in the first half of 2016 created an average cost of crude benefit of $1.66 per barrel compared to an average cost of crude benefit of $1.28 per barrel for the same period in 2015.

Asphalt margins for the first half of 2016 were $97.96 per ton compared to $94.41 per ton for same period in 2015. On a cash basis (i.e., excluding inventory effects), asphalt margins in the first half of 2016 were $99.87 per ton compared to $105.77 per ton in the first half of 2015.

Retail fuel margins decreased to 20.4 cents per gallon in the first half of 2016 from 21.9 cents per gallon in the first half of 2015. Retail fuel sales volume increased to 100.9 million gallons in the first half of 2016 from 95.6 million gallons in the first half of 2015. Merchandise margins decreased to 31.3% in the first half of 2016 from 32.5% in the first half of 2015. Merchandise sales increased to $161.5 million in the first half of 2016 from $161.0 million in the first half of 2015.

Alon also announced today that its Board of Directors has declared the regular quarterly cash dividend of $0.15 per share. The dividend is payable on September 6, 2016 to stockholders of record at the close of business on August 19, 2016.

CONFERENCE CALL

Alon has scheduled a conference call, which will be broadcast live over the Internet on Friday, July 29, 2016, at 10:30 a.m. Eastern Time (9:30 a.m. Central Time), to discuss the second quarter 2016 financial results. To access the call, please dial 877-407-0672, or 412-902-0003 for international callers, and ask for the Alon USA Energy call at least 10 minutes prior to the start time. Investors may also listen to the conference live by logging on to the Alon investor relations website, http://ir.alonusa.com. A telephonic replay of the conference call will be available through August 12, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13640012#. A webcast archive will also be available at http://ir.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

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

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

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

Contacts:

Stacey Morris, Investor Relations Manager

Alon USA Energy, Inc.

972-367-3808




Investors: Jack Lascar

Dennard § Lascar Associates, LLC

713-529-6600




Media: Blake Lewis

Lewis Public Relations

214-635-3020

- Tables to follow -

 

ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE



















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

For the Three Months Ended


For the Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


(dollars in thousands, except per share data)

STATEMENTS OF OPERATIONS DATA:








Net sales (1)

$

1,008,388



$

1,301,341



$

1,858,361



$

2,404,581


Operating costs and expenses:








Cost of sales

871,394



1,069,931



1,606,538



1,964,419


Direct operating expenses

63,182



62,856



131,799



127,061


Selling, general and administrative expenses (2)

51,644



49,193



100,345



94,789


Depreciation and amortization (3)

36,985



31,267



71,847



63,229


Total operating costs and expenses

1,023,205



1,213,247



1,910,529



2,249,498


Gain (loss) on disposition of assets

6





(2,082)



572


Operating income (loss)

(14,811)



88,094



(54,250)



155,655


Interest expense

(18,799)



(18,217)



(37,106)



(39,254)


Equity earnings of investees

4,305



1,828



4,683



1,274


Other income, net

146



13



218



59


Income (loss) before income tax expense (benefit)

(29,159)



71,718



(86,455)



117,734


Income tax expense (benefit)

(8,529)



23,856



(29,765)



35,817


Net income (loss)

(20,630)



47,862



(56,690)



81,917


Net income (loss) attributable to non-controlling interest

(260)



11,452



(783)



18,568


Net income (loss) available to stockholders

$

(20,370)



$

36,410



$

(55,907)



$

63,349


Earnings (loss) per share, basic

$

(0.29)



$

0.52



$

(0.80)



$

0.91


Weighted average shares outstanding, basic (in thousands)

70,493



69,684



70,318



69,584


Earnings (loss) per share, diluted

$

(0.29)



$

0.50



$

(0.80)



$

0.87


Weighted average shares outstanding, diluted (in thousands)

70,493



72,501



70,318



72,395


Cash dividends per share

$

0.15



$

0.15



$

0.30



$

0.25


CASH FLOW DATA:








Net cash provided by (used in):








Operating activities

$

17,342



$

135,112



$

(12,009)



$

115,891


Investing activities

(21,437)



(22,332)



(68,454)



(33,945)


Financing activities

16,565



(39,415)



52,189



(33,077)


OTHER DATA:








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

$

(14,916)



$

46,354



$

(44,152)



$

67,993


Adjusted earnings (loss) per share (4)

$

(0.21)



$

0.67



$

(0.63)



$

0.98


Adjusted EBITDA (5)

$

30,430



$

131,680



$

31,724



$

211,720


Capital expenditures (6)

13,784



20,302



37,230



31,051


Capital expenditures for turnarounds and catalysts

7,662



2,030



24,272



4,363


 



June 30,
2016


December 31,
2015

BALANCE SHEET DATA (end of period):


(dollars in thousands)

Cash and cash equivalents


$

205,853



$

234,127


Working capital


39,005



78,694


Total assets


2,245,464



2,176,138


Total debt


552,264



555,962


Total debt less cash and cash equivalents


346,411



321,835


Total equity


626,907



664,160






REFINING AND MARKETING SEGMENT





For the Three Months Ended


For the Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


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

STATEMENTS OF OPERATIONS DATA:








Net sales (7)

$

829,913



$

1,126,040



$

1,526,526



$

2,085,532


Operating costs and expenses:








Cost of sales

746,324



940,861



1,372,360



1,724,252


Direct operating expenses

56,913



55,966



119,706



112,292


Selling, general and administrative expenses

18,930



18,940



37,205



36,279


Depreciation and amortization

31,514



26,692



61,298



54,003


Total operating costs and expenses

853,681



1,042,459



1,590,569



1,926,826


Gain (loss) on disposition of assets

9





(2,079)



522


Operating income (loss)

$

(23,759)



$

83,581



$

(66,122)



$

159,228


KEY OPERATING STATISTICS:








Per barrel of throughput:








Refinery operating margin – Big Spring (8)

$

8.53



$

17.22



$

8.16



$

15.56


Refinery operating margin – Krotz Springs (8)

3.96



7.95



2.69



8.71


Refinery direct operating expense – Big Spring (9)

3.59



3.54



3.83



3.56


Refinery direct operating expense – Krotz Springs (9)

4.10



3.49



3.96



3.64


Capital expenditures

$

11,560



$

12,470



$

30,119



$

16,876


Capital expenditures for turnarounds and catalysts

7,662



2,030



24,272



4,363


PRICING STATISTICS:








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








Gulf Coast (10)

$

13.16



$

19.71



$

12.20



$

18.73


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








Gulf Coast high sulfur diesel (10)

$

7.92



$

10.21



$

7.33



$

11.79


WTI Cushing crude oil (per barrel)

$

45.48



$

57.86



$

39.39



$

53.20


Crude oil differentials (per barrel):








WTI Cushing less WTI Midland (11)

$

0.17



$

0.60



$

0.02



$

1.27


WTI Cushing less WTS (11)

0.75



(0.21)



0.32



0.76


LLS less WTI Cushing (11)

2.04



6.28



1.82



4.48


Brent less LLS (11)

(1.64)



0.32



(1.26)



0.57


Brent less WTI Cushing (11)

(0.18)



3.66



0.15



4.54


Product prices (dollars per gallon):








Gulf Coast unleaded gasoline

$

1.42



$

1.86



$

1.25



$

1.69


Gulf Coast ultra-low sulfur diesel

1.34



1.83



1.19



1.76


Gulf Coast high sulfur diesel

1.22



1.68



1.06



1.62


Natural gas (per MMBtu)

2.25



2.74



2.12



2.77


 

THROUGHPUT AND PRODUCTION DATA: BIG SPRING REFINERY

For the Three Months Ended

June 30,


For the Six Months Ended

June 30,



2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTS crude

25,698



36.1



29,605



39.2



31,126



44.9



37,193



50.3


WTI crude

43,040



60.5



43,659



57.8



35,400



51.0



33,952



45.9


Blendstocks

2,415



3.4



2,227



3.0



2,819



4.1



2,789



3.8


Total refinery throughput (12)

71,153



100.0



75,491



100.0



69,345



100.0



73,934



100.0


Refinery production:
















Gasoline

33,744



47.6



37,755



49.8



33,922



49.0



36,978



49.8


Diesel/jet

26,627



37.6



28,052



37.0



24,655



35.6



27,074



36.5


Asphalt

2,572



3.6



2,479



3.3



2,860



4.2



2,876



3.9


Petrochemicals

3,354



4.7



4,915



6.5



3,485



5.0



4,863



6.5


Other

4,569



6.5



2,537



3.4



4,298



6.2



2,466



3.3


Total refinery production (13)

70,866



100.0



75,738



100.0



69,220



100.0



74,257



100.0


Refinery utilization (14)



94.2

%




100.4

%




93.7

%




97.5

%

 


























THROUGHPUT AND PRODUCTION DATA: KROTZ SPRINGS REFINERY

For the Three Months Ended

June 30,


For the Six Months Ended

June 30,



2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTI crude

15,921



25.5



29,429



38.4



14,859



22.2



29,888



40.0


Gulf Coast sweet crude

42,624



68.5



45,069



58.8



45,987



68.8



41,076



55.0


Blendstocks

3,715



6.0



2,103



2.8



6,015



9.0



3,781



5.0


Total refinery throughput (12)

62,260



100.0



76,601



100.0



66,861



100.0



74,745



100.0


Refinery production:
















Gasoline

31,112



49.0



35,511



45.4



33,693



49.4



35,021



45.8


Diesel/jet

24,201



38.1



32,496



41.5



25,595



37.5



31,599



41.4


Heavy Oils

959



1.5



1,378



1.8



1,246



1.8



1,356



1.8


Other

7,226



11.4



8,838



11.3



7,692



11.3



8,419



11.0


Total refinery production (13)

63,498



100.0



78,223



100.0



68,226



100.0



76,395



100.0


Refinery utilization (14)



79.1

%




100.7

%




82.2

%




95.9

%

 

ASPHALT SEGMENT









For the Three Months Ended


For the Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


(dollars in thousands, except per ton data)

STATEMENTS OF OPERATIONS DATA:








Net sales (15)

$

68,097



$

69,900



$

121,596



$

120,552


Operating costs and expenses:








Cost of sales (15) (16)

51,326



60,771



95,191



115,054


Direct operating expenses

6,269



6,890



12,093



14,769


Selling, general and administrative expenses

4,047



2,755



7,245



4,531


Depreciation and amortization

1,261



1,207



2,521



2,352


Total operating costs and expenses

62,903



71,623



117,050



136,706


Operating loss (19)

$

5,194



$

(1,723)



$

4,546



$

(16,154)


KEY OPERATING STATISTICS:








Blended asphalt sales volume (tons in thousands) (17)

158



108



243



173


Non-blended asphalt sales volume (tons in thousands) (18)

18



15



47



33


Blended asphalt sales price per ton (17)

$

389.95



$

505.54



$

398.28



$

498.83


Non-blended asphalt sales price per ton (18)

135.06



229.20



141.30



317.36


Asphalt margin per ton (19)

106.90



100.92



97.96



94.41


Capital expenditures

$

335



$

238



$

1,075



$

1,644



















RETAIL SEGMENT









For the Three Months Ended


For the Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


(dollars in thousands, except per gallon data)

STATEMENTS OF OPERATIONS DATA:








Net sales (1)

$

187,262



$

206,634



$

350,233



$

382,619


Operating costs and expenses:








Cost of sales (16)

150,628



169,532



278,981



309,235


Selling, general and administrative expenses

28,484



27,322



55,521



53,627


Depreciation and amortization

3,350



2,943



6,749



5,980


Total operating costs and expenses

182,462



199,797



341,251



368,842


Gain on disposition of assets

(3)





(3)



50


Operating income

$

4,797



$

6,837



$

8,979



$

13,827


KEY OPERATING STATISTICS:








Number of stores (end of period) (20)

306



294



306



294


Retail fuel sales (thousands of gallons)

50,877



49,511



100,882



95,606


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

57



58



57



56


Retail fuel margin (cents per gallon) (21)

20.8



20.3



20.4



21.9


Retail fuel sales price (dollars per gallon) (22)

$

2.03



$

2.46



$

1.87



$

2.32


Merchandise sales

$

83,673



$

84,878



$

161,498



$

160,980


Merchandise sales (per site per month) (20)

$

91



$

96



$

88



$

91


Merchandise margin (23)

31.0

%


31.8

%


31.3

%


32.5

%

Capital expenditures

$

1,200



$

6,202



$

3,911



$

9,518




(1)

Includes excise taxes on sales by the retail segment of $19,864 and $19,369 for the three months ended June 30, 2016 and 2015, respectively, and $39,389 and $37,425 for the six months ended June 30, 2016 and 2015, respectively.



(2)

Includes corporate headquarters selling, general and administrative expenses of $183 and $176 for the three months ended June 30, 2016 and 2015, respectively, and $374 and $352 for the six months ended June 30, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(3)

Includes corporate depreciation and amortization of $860 and $425 for the three months ended June 30, 2016 and 2015, respectively, and $1,279 and $894 for the six months ended June 30, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(4)

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

 






















For the Three Months Ended


For the Six Months Ended



June 30,


June 30,



2016


2015


2016


2015



(dollars in thousands)


Net income (loss) available to stockholders

$

(20,370)



$

36,410



$

(55,907)



$

63,349



Exclude adjustments:













   Employee retention expense

2,000



1,334



6,700



1,334



   Loss on asphalt inventory adjustment

2,003



3,284



2,003



13,950



   Unrealized (gains) losses on commodity swaps

3,811



10,478



7,144



(7,925)



   (Gain) loss on disposition of assets

(6)





2,082



(572)



      Total adjustments

7,808



15,096



17,929



6,787



Income tax impact related to adjustments


(2,302)




(4,983)




(6,070)




(2,065)



Non-controlling interest impact related to adjustments


(52)




(169)




(104)




(78)



Adjusted net income (loss) available to stockholders

$

(14,916)



$

46,354



$

(44,152)



$

67,993



Adjusted earnings (loss) per share *

$

(0.21)



$

0.67



$

(0.63)



$

0.98




*

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




(5)

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




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








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





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





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





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





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





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




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

























For the Three Months Ended


For the Six Months Ended




June 30,


June 30,




2016


2015


2016


2015




(dollars in thousands)



Net income (loss) available to stockholders

$

(20,370)



$

36,410



$

(55,907)



$

63,349




Net income (loss) attributable to non-controlling interest

(260)



11,452



(783)



18,568




Income tax expense (benefit)

(8,529)



23,856



(29,765)



35,817




Interest expense

18,799



18,217



37,106



39,254




Depreciation and amortization

36,985



31,267



71,847



63,229




(Gain) loss on disposition of assets

(6)





2,082



(572)




Unrealized (gains) losses on commodity swaps

3,811



10,478



7,144



(7,925)




Adjusted EBITDA

$

30,430



$

131,680



$

31,724



$

211,720







Adjusted EBITDA does not exclude losses of $2,003 and $3,284 for the three months ended June 30, 2016 and 2015, respectively, and $2,003 and $13,950 for the six months ended June 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory.



(6)

Includes corporate capital expenditures of $689 and $1,392 for the three months ended June 30, 2016 and 2015, respectively, and $2,125 and $3,013 for the six months ended June 30, 2016 and 2015, respectively, which are not allocated to our three operating segments.



(7)

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



(8)

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




The refinery operating margin for the three and six months ended June 30, 2016 excludes realized and unrealized gains on commodity swaps of $96 and $461, respectively.




The refinery operating margin for the three and six months ended June 30, 2015 excludes realized and unrealized gains on commodity swaps of $7,512 and $37,355, respectively. For the six months ended June 30, 2015, $8,926 related substantially to inventory adjustments was not included in cost of sales for either the Big Spring refinery or the Krotz Springs refinery.



(9)

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



(10)

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




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



(11)

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



(12)

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



(13)

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



(14)

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



(15)

Net sales and cost of sales include asphalt purchases sold as part of a supply and offtake arrangement of $4,054 and $11,864 for the three months ended June 30, 2016 and 2015, respectively, and $18,172 and $23,782 for the six months ended June 30, 2016 and 2015, respectively. The volumes associated with these sales are excluded from the Key Operating Statistics.



(16)

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



(17)

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



(18)

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



(19)

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




Asphalt margin excludes losses of $2,003 and $3,284 for the three months ended June 30, 2016 and 2015, respectively, and $2,003 and $13,950 for the six months ended June 30, 2016 and 2015, respectively, resulting from a price adjustment related to asphalt inventory. This loss is included in the operating income (loss) above.



(20)

At June 30, 2016, we had 306 retail convenience stores of which 296 sold fuel. At June 30, 2015, we had 294 retail convenience stores of which 283 sold fuel.




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



(21)

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



(22)

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



(23)

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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-second-quarter-2016-results-300306051.html

SOURCE Alon USA Energy, Inc.

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

Thu, 07/28/2016 - 18:42
Schedules conference call for July 29, 2016 at 9:30 a.m. Eastern

DALLAS, July 28, 2016 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW) ("Alon Partners") today announced results for the second quarter of 2016. Net income for the second quarter of 2016 was $1.2 million, or $0.02 per unit, compared to $59.4 million, or $0.95 per unit, for the same period last year. Net loss for the first half of 2016 was $(7.4) million, or $(0.12) per unit, compared to net income of $95.9 million, or $1.53 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 2016 of $0.14 per unit payable on August 25, 2016 to common unitholders of record at the close of business on August 18, 2016, based on cash available for distribution of $8.8 million.

Paul Eisman, President and CEO, commented, "The refining environment in the second quarter of 2016 remained challenging as crack spreads were pressured by high product inventories. While crack spreads improved seasonally from the first quarter of 2016, the average benchmark crack spread in the second quarter was down approximately $6.50 per barrel relative to the same quarter last year. As previously discussed, our second quarter results were also negatively impacted by unplanned downtime related to a power outage in late May. We estimate the lost opportunity cost and maintenance cost associated with the power outage negatively impacted Alon Partners' adjusted EBITDA by approximately $10 million or the distribution by $0.16 per unit.

"Big Spring's refinery operating margin of $8.53 per barrel was negatively impacted by approximately $1.30 per barrel due to the unplanned downtime during the quarter. Despite the interruption to normal operations, the refinery achieved low operating costs of $3.59 per barrel. We currently expect to perform maintenance on the Big Spring refinery's reformer in August. As a result, we expect total throughput at the Big Spring refinery to average approximately 69,000 barrels per day for the third quarter and 70,000 barrels per day for the full year of 2016. 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 2016."

SECOND QUARTER 2016

Refinery operating margin was $8.53 per barrel for the second quarter of 2016 compared to $17.22 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread, a narrowing of the WTI Cushing to WTI Midland spread and a reduced cost of crude benefit from the contango market in 2016, partially offset by a widening of the WTI Cushing to WTS spread. The Big Spring refinery average throughput for the second quarter of 2016 was 71,153 barrels per day ("bpd") compared to 75,491 bpd for the same period in 2015. The Big Spring refinery's throughput and operating margin were negatively affected by the 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 $13.16 per barrel for the second quarter of 2016 compared to $19.71 per barrel for the second quarter of 2015. The average WTI Cushing to WTI Midland spread for the second quarter of 2016 was $0.17 per barrel compared to $0.60 per barrel for the second quarter of 2015. The average WTI Cushing to WTS spread for the second quarter of 2016 was $0.75 per barrel compared to $(0.21) per barrel for the second quarter of 2015. The average Brent to WTI Cushing spread for the second quarter of 2016 was $(0.18) per barrel compared to $3.66 per barrel for the same period in 2015. The contango environment in the second quarter of 2016 created an average cost of crude benefit of $1.49 per barrel compared to an average cost of crude benefit of $1.90 per barrel for the same period in 2015.

YEAR-TO-DATE 2016

Refinery operating margin was $8.16 per barrel for the first half of 2016 compared to $15.56 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and a narrowing of both the WTI Cushing to WTI Midland and the WTI Cushing to WTS spreads, partially offset by the cost of crude benefit from the market moving further into contango in 2016. The Big Spring refinery average throughput for the first half of 2016 was 69,345 bpd compared to 73,934 bpd for the same period in 2015. The Big Spring refinery's throughput and operating margin were negatively affected by the planned downtime to complete a reformer regeneration and catalyst replacement for our diesel hydrotreater unit in the beginning of the first quarter of 2016, as well as unplanned downtime during the second quarter of 2016 due to a power outage caused by inclement weather, which affected multiple units.

The average Gulf Coast 3/2/1 crack spread was $12.20 per barrel for the first half of 2016 compared to $18.73 per barrel for the same period in 2015. The average WTI Cushing to WTI Midland spread for the first half of 2016 was $0.02 per barrel compared to $1.27 per barrel for the same period in 2015. The average WTI Cushing to WTS spread for the first half of 2016 was $0.32 per barrel compared to $0.76 per barrel for the same period in 2015. The average Brent to WTI Cushing spread for the first half of 2016 was $0.15 per barrel compared to $4.54 per barrel for the same period in 2015. The contango environment for the first half of 2016 created an average cost of crude benefit of $1.66 per barrel compared to an average cost of crude benefit of $1.28 per barrel for the same period in 2015.

CONFERENCE CALL

Alon Partners has scheduled a conference call, which will be broadcast live over the Internet on Friday, July 29, 2016 at 9:30 a.m. Eastern Time (8:30 a.m. Central Time), to discuss the second 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 August 12, 2016 and may be accessed by calling 877-660-6853, or 201-612-7415 for international callers, and using the passcode 13640014#. A webcast archive will also be available at www.alonpartners.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard § Lascar Associates at 713-529-6600 or email dwashburn@dennardlascar.com.

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 Six Months Ended


June 30,


June 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)

$

468,457



$

625,064



$

836,466



$

1,167,506


Operating costs and expenses:








Cost of sales

410,735



507,122



730,068



957,717


Direct operating expenses

23,255



24,285



48,299



47,701


Selling, general and administrative expenses

8,802



10,215



16,111



16,118


Depreciation and amortization

14,667



13,591



28,873



27,584


Total operating costs and expenses

457,459



555,213



823,351



1,049,120


Operating income

10,998



69,851



13,115



118,386


Interest expense

(9,920)



(10,847)



(20,507)



(22,540)


Other income (loss), net

113



27



197



(14)


Income (loss) before state income tax expense (benefit)

1,191



59,031



(7,195)



95,832


State income tax expense (benefit)



(395)



176



(45)


Net income (loss)

$

1,191



$

59,426



$

(7,371)



$

95,877


Earnings (loss) per unit

$

0.02



$

0.95



$

(0.12)



$

1.53


Weighted average common units outstanding (in thousands)

62,515



62,509



62,512



62,508


Cash distribution per unit

$



$

0.71



$

0.08



$

1.41


CASH FLOW DATA:








Net cash provided by (used in):








Operating activities

$

34,862



$

107,311



$

46,587



$

134,398


Investing activities

(5,068)



(5,985)



(20,924)



(9,790)


Financing activities

8,830



(61,829)



3,204



(81,049)


OTHER DATA:








Adjusted EBITDA (2)

$

25,778



$

83,469



$

42,185



$

145,956


Capital expenditures

4,588



5,465



12,700



7,786


Capital expenditures for turnarounds and catalysts

480



520



8,224



2,004


KEY OPERATING STATISTICS:








Per barrel of throughput:








Refinery operating margin (3)

$

8.53



$

17.22



$

8.16



$

15.56


Refinery direct operating expense (4)

3.59



3.54



3.83



3.56


PRICING STATISTICS:








Crack spreads (per barrel):








Gulf Coast 3/2/1 (5)

$

13.16



$

19.71



$

12.20



$

18.73


WTI Cushing crude oil (per barrel)

$

45.48



$

57.86



$

39.39



$

53.20


Crude oil differentials (per barrel):








WTI Cushing less WTI Midland (6)

$

0.17



$

0.60



$

0.02



$

1.27


WTI Cushing less WTS (6)

0.75



(0.21)



0.32



0.76


Brent less WTI Cushing (6)

(0.18)



3.66



0.15



4.54


Product price (dollars per gallon):








Gulf Coast unleaded gasoline

$

1.42



$

1.86



$

1.25



$

1.69


Gulf Coast ultra-low sulfur diesel

1.34



1.83



1.19



1.76


Natural gas (per MMBtu)

2.25



2.74



2.12



2.77


 


June 30,
2016


December 31,
2015

BALANCE SHEET DATA (end of period):

 (dollars in thousands)

Cash and cash equivalents

$

161,820



$

132,953


Working capital

(40,661)



(53,804)


Total assets

792,661



748,584


Total debt

291,681



292,082


Total debt less cash and cash equivalents

129,861



159,129


Total partners' equity

118,613



130,957



























THROUGHPUT AND PRODUCTION DATA:

For the Three Months Ended

June 30,


For the Six Months Ended

June 30,



2016


2015


2016


2015


bpd


%


bpd


%


bpd


%


bpd


%

Refinery throughput:
















WTS crude

25,698



36.1



29,605



39.2



31,126



44.9



37,193



50.3


WTI crude

43,040



60.5



43,659



57.8



35,400



51.0



33,952



45.9


Blendstocks

2,415



3.4



2,227



3.0



2,819



4.1



2,789



3.8


Total refinery throughput (7)

71,153



100.0



75,491



100.0



69,345



100.0



73,934



100.0


Refinery production:
















Gasoline

33,744



47.6



37,755



49.8



33,922



49.0



36,978



49.8


Diesel/jet

26,627



37.6



28,052



37.0



24,655



35.6



27,074



36.5


Asphalt

2,572



3.6



2,479



3.3



2,860



4.2



2,876



3.9


Petrochemicals

3,354



4.7



4,915



6.5



3,485



5.0



4,863



6.5


Other

4,569



6.5



2,537



3.4



4,298



6.2



2,466



3.3


Total refinery production (8)

70,866



100.0



75,738



100.0



69,220



100.0



74,257



100.0


Refinery utilization (9)



94.2

%




100.4

%




93.7

%




97.5

%































 

CASH AVAILABLE FOR DISTRIBUTION DATA:


For the Three Months Ended



June 30, 2016



(dollars in thousands, except per unit data)




Net sales (1)


$

468,457


Operating costs and expenses:



Cost of sales


410,735


Direct operating expenses


23,255


Selling, general and administrative expenses


8,802


Depreciation and amortization


14,667


  Total operating costs and expenses


457,459


Operating income


10,998


Interest expense


(9,920)


Other income, net


113


Income before state income tax expense


1,191


State income tax expense



Net income


1,191


Adjustments to reconcile net loss to Adjusted EBITDA:



Interest expense


9,920


State income tax expense



Depreciation and amortization


14,667


Adjusted EBITDA (2)


25,778


Adjustments to reconcile Adjusted EBITDA to cash available for distribution:



less: Maintenance/growth capital expenditures


4,588


less: Turnaround and catalyst replacement capital expenditures


480


less: Major turnaround reserve for future years


1,500


less: Principal payments


625


less: State income tax payments



less: Interest paid in cash


9,738


Calculated cash available for distribution


$

8,847





Common units outstanding (in 000's)


62,520





Cash available for distribution per unit


$

0.14





________________

(1)

Includes sales to related parties of $76,884 and $101,233 for the three months ended June 30, 2016 and 2015, respectively, and $139,994 and $184,122 for the six months ended June 30, 2016 and 2015, respectively.




(2)

Adjusted EBITDA represents earnings before state income tax expense (benefit), 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 (benefit), 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, 2016 and 2015:

 




For the Three Months Ended


For the Six Months Ended




June 30,


June 30,




2016


2015


2016


2015




(dollars in thousands)



Net income (loss)

$

1,191



$

59,426



$

(7,371)



$

95,877




State income tax expense (benefit)



(395)



176



(45)




Interest expense

9,920



10,847



20,507



22,540




Depreciation and amortization

14,667



13,591



28,873



27,584




Adjusted EBITDA

$

25,778



$

83,469



$

42,185



$

145,956








(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, 2016 excludes gains related to inventory adjustments of $2,519 and $3,465, respectively. Refinery operating margin for the three and six months ended June 30, 2015 excludes gains (losses) related to inventory adjustments of $(368) and $1,622, 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-second-quarter-2016-results-and-declares-quarterly-cash-distribution-300306050.html

SOURCE Alon USA Partners, LP

Alon USA Energy, Inc. Provides Update on the Activities of its Special Committee to Review Strategic Alternatives

Mon, 07/11/2016 - 15:30

DALLAS, July 11, 2016 /PRNewswire/ -- As noted in the Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") proxy statement, filed with the SEC on April 1, 2016, Alon's Board of Directors has formed a Special Committee (the "Special Committee"). The Special Committee is comprised of directors having no affiliation with Delek US Holdings, Inc. ("Delek"). Since its formation, the Special Committee has reviewed a number of strategic alternatives, a potential business combination with Delek, the analysis of capital investments, shareholder distributions, a sale or merger and a spin-off or separation of a selected business.

The Special Committee has set no timetable for the strategic review process and has not made a decision to pursue any particular transaction, and there can be no assurance that any transaction will be approved or consummated. Alon does not intend to disclose or comment on further developments regarding the review of strategic alternatives until it determines that such disclosure or comment is appropriate or necessary.

The Special Committee has retained J.P. Morgan as its financial advisor and Gibson Dunn as its legal advisor to assist in the assessment of strategic alternatives.

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

Contacts:

Stacey Morris


Investor Relations Manager


Alon USA Energy, Inc.


972-367-3808




Investors:  Jack Lascar


Dennard ▪ Lascar Associates, LLC


713-529-6600




Media:  Blake Lewis


Lewis Public Relations


214-635-3020

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-provides-update-on-the-activities-of-its-special-committee-to-review-strategic-alternatives-300296532.html

SOURCE Alon USA Energy, Inc.

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