DALLAS, March 5, 2015 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today
announced results for the fourth quarter and year ended
December 31, 2014. Net income
available to stockholders for the fourth quarter of 2014 was
$6.7 million, or $0.10 per share, compared to net loss available
to stockholders of $(14.0) million,
or $(0.21) per share, for the same
period last year. Excluding special items, Alon recorded net loss
available to stockholders of $(0.2)
million, or $0.00 per share,
for the fourth quarter of 2014, compared to net loss available to
stockholders of $(8.0) million, or
$(0.12) per share, for the same
period last year.
Net income available to stockholders for the full year 2014 was
$38.5 million, or $0.56 per share, compared to net income available
to stockholders of $23.0 million, or
$0.33 per share, for 2013. Excluding
special items, Alon recorded net income available to stockholders
of $38.1 million, or $0.55 per share, for the full year 2014, compared
to net income available to stockholders of $34.5 million, or $0.51 per share, for 2013.
Paul Eisman, CEO and President,
commented, "We are pleased with our accomplishments during 2014. We
achieved the second highest annual adjusted EBITDA in our company's
history, in spite of the major turnaround at the Big Spring refinery in the second quarter of
2014. We increased our regular dividend by 67% from $0.24 to $0.40 per
annum and paid a special dividend of $0.21 per share. Furthermore, we invested in
growth projects across our assets, the largest of which was the
vacuum tower project at the Big
Spring refinery. In addition to these accomplishments, we
were also able to reduce debt net of cash by approximately
$40 million.
"The Big Spring refinery ran
well during the quarter, achieving record quarterly total
throughput of 77,000 barrels per day and liquid recovery of
approximately 101%. The fourth quarter throughput surpassed the
previous record throughput set in the third quarter as we continue
to benefit from investments made during the turnaround completed
earlier in the year. However, our fourth quarter refining results
were negatively impacted by a decline in crude spreads and seasonal
weakness in crack spreads. Despite the volatility in petroleum
markets during the fourth quarter, the Big Spring refinery was able to generate
strong results, once again highlighting the refinery's operating
capabilities and competitive advantages. The solid operational
performance drove strong margin capture, as the refinery operating
margin of $15.12 per barrel exceeded
the Gulf Coast 3/2/1 crack spread adjusted for Midland crude
discounts. The efficiency of our operations was also demonstrated
by Big Spring's low direct
operating expense of only $3.67 per
barrel.
"The Krotz Springs refinery
achieved record total throughput and operating results in 2014. We
accomplished this despite lower throughput in the fourth quarter
resulting from some unplanned maintenance at the refinery. Similar
to the Big Spring refinery, the
Krotz Springs refinery's fourth
quarter results were also negatively impacted by a decline in crude
spreads and seasonal weakness in crack spreads. We continue to
believe that Krotz Springs is well
positioned to take advantage of growing inventories of light crude
oil on the Gulf Coast.
"Looking ahead to the first quarter of 2015, Gulf Coast crack
spreads and crude differentials have improved relative to the
fourth quarter of 2014. We expect total throughput at the
Big Spring refinery to average
approximately 71,000 barrels per day for the first quarter and
72,000 barrels per day for the full year of 2015. We expect total
throughput at the Krotz Springs
refinery to average approximately 71,000 barrels per day for the
first quarter and 69,000 barrels per day for the full year of 2015
due to the turnaround scheduled in the fourth quarter of 2015.
"In California, we are progressing with the engineering and
project development for our Bakersfield rail facility and the
potential revamp and restart of the Bakersfield refinery.
Commercial discussions are ongoing, and we now expect the rail
facility to start up in 2016.
"In the fourth quarter, the retail segment achieved record fuel
sales volumes with good margins. At the same time, we also saw
record merchandise sales with improved margins. All of this
resulted in record operating income for the quarter and the
year."
FOURTH QUARTER 2014
Special items increased earnings by $6.9
million for the fourth quarter of 2014 primarily as a result
of after-tax unrealized gains of $9.0
million associated with commodity swaps, partially offset by
after-tax environmental charges of $1.6
million, after-tax losses of $0.1
million associated with write-offs of unamortized debt
issuance costs and $0.3 million
associated with after-tax losses recognized on disposition of
assets. Special items reduced earnings by $6.0 million for the fourth quarter of 2013
primarily as a result of after-tax losses of $6.5 million associated with a prepayment premium
and write-offs of unamortized original issuance discount and debt
issuance costs recognized for the prepayment of a portion of the
Alon Refining Krotz Springs senior secured notes, partially offset
by $0.5 million associated with
after-tax gains recognized on disposition of assets.
The combined total refinery average throughput for the fourth
quarter of 2014 was 143,252 barrels per day ("bpd"), compared to a
combined total refinery average throughput of 145,922 bpd for the
fourth quarter of 2013. The Big
Spring refinery average throughput for the fourth quarter of
2014 was 76,867 bpd, compared to 73,613 bpd for the fourth quarter
of 2013. The increased throughput at the Big Spring refinery was due to the completion
of both the major turnaround and the vacuum tower project during
the second quarter of 2014, which increased crude oil throughput to
73,000 bpd from 70,000 bpd and increased diesel production by 3,000
bpd. The Krotz Springs refinery
average throughput for the fourth quarter of 2014 was 66,385 bpd,
compared to 72,309 bpd for the fourth quarter of 2013. The
decreased throughput at the Krotz
Springs refinery was due to unplanned maintenance during the
fourth quarter of 2014.
Refinery operating margin at the Big
Spring refinery was $15.12 per
barrel for the fourth quarter of 2014 compared to $9.96 per barrel for the same period in 2013.
This increase in operating margin was primarily due to a widening
of both the WTI Cushing to WTS spread and the WTI Cushing to WTI
Midland spread, partially offset by a lower Gulf Coast 3/2/1 crack
spread.
Refinery operating margin at the Krotz
Springs refinery was $4.04 per
barrel for the fourth quarter of 2014 compared to $8.72 per barrel for the same period in 2013.
This decrease in operating margin was primarily due to a lower Gulf
Coast 2/1/1 high sulfur diesel crack spread, partially offset by a
widening of both the LLS to WTI Cushing spread and the WTI Cushing
to WTI Midland spread. The Krotz
Springs refinery operating margin during the fourth quarter
of 2014 was also impacted by RINs costs of $4.8 million, or $0.79 per barrel of throughput. The Krotz Springs refinery received an exemption
from the renewable fuel standards requirements for 2013 and as a
result did not record costs associated with RINs.
The average Gulf Coast 3/2/1 crack spread was $9.04 per barrel for the fourth quarter of 2014
compared to $13.05 per barrel for the
fourth quarter of 2013, which was primarily influenced by a
reduction in the Brent to WTI Cushing spread. The average Brent to
WTI Cushing spread for the fourth quarter of 2014 was $3.70 per barrel compared to $9.89 per barrel for the same period in 2013. The
average Gulf Coast 2/1/1 high sulfur diesel crack spread was
$4.80 per barrel for the fourth
quarter of 2014 compared to $12.61
per barrel for the fourth quarter of 2013, which was primarily
influenced by a reduction in the Brent to LLS spread. The average
Brent to LLS spread for the fourth quarter of 2014 was $0.54 per barrel compared to $7.31 per barrel for the fourth quarter of
2013.
The average WTI Cushing to WTS spread for the fourth quarter of
2014 was $4.43 per barrel compared to
$3.14 per barrel for the same period
in 2013. The average WTI Cushing to WTI Midland spread for the
fourth quarter of 2014 was $5.79 per
barrel compared to $2.32 per barrel
for the same period in 2013. The average LLS to WTI Cushing spread
for the fourth quarter of 2014 was $3.16 per barrel compared to $2.58 per barrel for the same period in 2013.
Asphalt margins for the fourth quarter of 2014 were $33.53 per ton compared to $65.83 per ton for the fourth quarter of 2013. On
a cash basis (i.e. excluding inventory effects), asphalt margins in
the fourth quarter of 2014 were $36.51 per ton compared to $45.11 per ton in the fourth quarter of 2013.
This decrease was primarily due to higher costs of asphalt
purchased during the fourth quarter of 2014 compared to the fourth
quarter of 2013.
Retail fuel sales volume increased 5.3% to 49.7 million gallons
in the fourth quarter of 2014 from 47.2 million gallons in the
fourth quarter of 2013.
YEAR ENDED DECEMBER 31,
2014
Special items increased earnings by $0.4
million for 2014 primarily as a result of after-tax
unrealized gains of $2.8 million
associated with commodity swaps and $0.2
million associated with after-tax gains recognized on
disposition of assets, partially offset by after-tax environmental
charges of $2.0 million and after-tax
losses of $0.7 million associated
with write-offs of unamortized original issuance discount and debt
issuance costs. Special items reduced earnings by $11.5 million for 2013 which included after-tax
costs for an unplanned reformer shutdown and repair of $11.6 million, after-tax losses of $6.5 million associated with a prepayment premium
and write-offs of unamortized original issuance discount and debt
issuance costs recognized for the prepayment of a portion of the
Alon Refining Krotz Springs senior secured notes, partially offset
by $6.7 million associated with
after-tax gains recognized on disposition of assets.
Combined refinery average throughput for 2014 was 136,378 bpd,
compared to a combined refinery average throughput of 131,808 bpd
in 2013. During the second quarter of 2014, we completed the major
turnaround at the Big Spring
refinery, including the vacuum tower project, which increased crude
oil throughput to 73,000 bpd from 70,000 bpd and increased diesel
production by 3,000 bpd. However, despite the reduced throughput
experienced during the second quarter of 39,000 bpd, our
Big Spring refinery average
throughput was 66,033 bpd for 2014 compared to 67,103 bpd for 2013.
The Krotz Springs refinery average
throughput for 2014 was 70,345 bpd compared to 64,705 bpd for 2013.
Refinery throughput at the Krotz
Springs refinery was lower for 2013 due to the unplanned
shut down and repair of the reformer unit for approximately one
month.
Refinery operating margin at the Big
Spring refinery was $16.69 per
barrel for 2014 compared to $14.59
per barrel for 2013. This increase in operating margin was
primarily due to a widening of both the WTI Cushing to WTS spread
and the WTI Cushing to WTI Midland spread, partially offset by a
lower Gulf Coast 3/2/1 crack spread.
Refinery operating margin at the Krotz
Springs refinery was $7.57 per
barrel for 2014 compared to $6.16 per
barrel for 2013. This increase in operating margin was primarily
due to a higher Gulf Coast 2/1/1 high sulfur diesel crack spread
and a widening WTI Cushing to WTI Midland spread, partially offset
by a narrowing LLS to WTI Cushing spread. In 2014, the refinery
operating margin was negatively impacted by RINs costs of
$21.4 million, or $0.83 per barrel of throughput. The Krotz Springs refinery received an exemption
from the renewable fuel standards requirements for 2013 and as a
result did not record costs associated with RINs.
The average Gulf Coast 3/2/1 crack spread for 2014 was
$14.52 per barrel compared to
$19.16 per barrel for 2013, which was
primarily influenced by a reduction in the Brent to WTI Cushing
spread. The average Brent to WTI Cushing spread for 2014 was
$7.30 per barrel compared to
$12.41 per barrel for the same period
in 2013. The average Gulf Coast 2/1/1 high sulfur diesel crack
spread for 2014 was $9.76 per barrel
compared to $7.89 per barrel for
2013, which was primarily influenced by an increase in the Brent to
LLS spread. The average Brent to LLS spread for 2014 was
$3.45 per barrel compared to
$1.35 per barrel for 2013.
The average WTI Cushing to WTS spread for 2014 was $6.04 per barrel compared to $3.72 per barrel for 2013. The average WTI
Cushing to WTI Midland spread for 2014 was $6.93 per barrel compared to $2.59 per barrel for 2013. The average LLS to WTI
Cushing spread for 2014 was $3.85 per
barrel compared to $11.06 per barrel
for 2013.
Asphalt margins for 2014 were $43.86 per ton compared to $68.67 per ton in 2013. On a cash basis (i.e.
excluding inventory effects), asphalt margins in 2014 were
$41.31 per ton compared to
$62.81 per ton in 2013. This decrease
was primarily due to higher costs of asphalt purchased during
2014.
Retail fuel sales volume increased 2.2% to 192.6 million gallons
in 2014 from 188.5 million gallons in 2013.
CONFERENCE CALL
Alon has scheduled a conference call for Friday, March 6, 2015, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time), to discuss the fourth
quarter 2014 results. To access the call, please dial 877-407-0672,
or 412-902-0003 for international callers, at least 10 minutes
prior to the start time and ask for the Alon USA Energy call. Investors may also listen to
the conference live on the Alon investor relations website,
http://ir.alonusa.com. A telephonic replay of the conference call
will be available through March 20,
2015, and may be accessed by calling 877-660-6853, or
201-612-7415 for international callers, and using the passcode
13599647#. The archived webcast will also be available at
http://ir.alonusa.com shortly after the call and will be
accessible for approximately 90 days. For more information, please
contact Donna Washburn at
Dennard - Lascar Associates at 713-529-6600 or email
dwashburn@dennardlascar.com.
Alon USA Energy, Inc.,
headquartered in Dallas, Texas, is
an independent refiner and marketer of petroleum products,
operating primarily in the South Central, Southwestern and Western
regions of the United States. Alon
owns 100% of the general partner and approximately 82% of the
limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a
crude oil refinery in Big Spring,
Texas, with a crude oil throughput capacity of 73,000
barrels per day. In addition, Alon directly owns crude oil
refineries in Krotz Springs,
Louisiana, with a crude oil throughput capacity of 74,000
barrels per day and in California
with a crude oil throughput capacity of 70,000 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 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 Hudson,
Investor Relations Manager
Alon USA Energy,
Inc.
972-367-3808
|
|
|
|
Investors: Jack
Lascar/Stephanie Smith
Dennard - Lascar
Associates, LLC
713-529-6600
Media: Blake
Lewis
Lewis Public
Relations
214-635-3020
Ruth
Sheetrit
SMG Public
Relations
011-972-547-555551
|
|
|
- Tables to follow -
|
|
ALON USA ENERGY,
INC. AND SUBSIDIARIES CONSOLIDATED
|
EARNINGS
RELEASE
|
|
|
RESULTS OF
OPERATIONS - FINANCIAL DATA
(ALL INFORMATION IN THIS PRESS RELEASE EXCEPT FOR
BALANCE SHEET DATA AS OF DECEMBER 31, 2013, AND INCOME STATEMENT
DATA FOR THE YEAR ENDED DECEMBER 31, 2013, IS
UNAUDITED)
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(dollars in
thousands, except per share data)
|
STATEMENT OF
OPERATIONS DATA:
|
|
Net sales
(1)
|
$
|
1,503,231
|
|
$
|
1,825,754
|
|
$
|
6,779,456
|
|
$
|
7,046,381
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
1,307,198
|
|
1,659,799
|
|
6,002,270
|
|
6,325,088
|
Direct operating
expenses
|
73,022
|
|
70,049
|
|
281,686
|
|
287,752
|
Selling, general and
administrative expenses (2)
|
40,303
|
|
43,106
|
|
170,139
|
|
168,172
|
Depreciation and
amortization (3)
|
32,562
|
|
32,545
|
|
124,063
|
|
125,494
|
Total operating costs
and expenses
|
1,453,085
|
|
1,805,499
|
|
6,578,158
|
|
6,906,506
|
Gain (loss) on
disposition of assets
|
(471)
|
|
712
|
|
274
|
|
9,558
|
Operating
income
|
49,675
|
|
20,967
|
|
201,572
|
|
149,433
|
Interest expense
(4)
|
(25,670)
|
|
(30,878)
|
|
(111,143)
|
|
(94,694)
|
Equity earnings
(losses) of investees
|
(1,123)
|
|
154
|
|
1,678
|
|
5,309
|
Other income (loss),
net
|
33
|
|
(2)
|
|
674
|
|
218
|
Income (loss) before
income tax expense
|
22,915
|
|
(9,759)
|
|
92,781
|
|
60,266
|
Income tax
expense
|
8,459
|
|
2,534
|
|
22,913
|
|
12,151
|
Net income
(loss)
|
14,456
|
|
(12,293)
|
|
69,868
|
|
48,115
|
Net income
attributable to non-controlling interest
|
7,749
|
|
1,692
|
|
31,411
|
|
25,129
|
Net income (loss)
available to stockholders
|
$
|
6,707
|
|
$
|
(13,985)
|
|
$
|
38,457
|
|
$
|
22,986
|
Earnings (loss) per
share, basic
|
$
|
0.10
|
|
$
|
(0.21)
|
|
$
|
0.56
|
|
$
|
0.33
|
Weighted average
shares outstanding, basic (in thousands)
|
69,319
|
|
66,681
|
|
68,985
|
|
63,538
|
Earnings (loss) per
share, diluted
|
$
|
0.10
|
|
$
|
(0.21)
|
|
$
|
0.55
|
|
$
|
0.32
|
Weighted average
shares outstanding, diluted (in thousands)
|
69,842
|
|
66,681
|
|
69,373
|
|
64,852
|
Cash dividends per
share
|
$
|
0.31
|
|
$
|
0.06
|
|
$
|
0.53
|
|
$
|
0.38
|
CASH FLOW
DATA:
|
|
|
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
49,074
|
|
$
|
52,572
|
|
$
|
193,658
|
|
$
|
162,233
|
Investing
activities
|
(24,242)
|
|
(21,251)
|
|
(108,995)
|
|
(51,441)
|
Financing
activities
|
(3,439)
|
|
(97,996)
|
|
(94,201)
|
|
(2,589)
|
OTHER
DATA:
|
|
|
|
|
|
|
|
Adjusted net income
(loss) available to stockholders (5)
|
$
|
(219)
|
|
$
|
(8,007)
|
|
$
|
38,100
|
|
$
|
34,473
|
Adjusted earnings
(loss) per share (5)
|
$
|
—
|
|
$
|
(0.12)
|
|
$
|
0.55
|
|
$
|
0.51
|
Adjusted EBITDA
(6)
|
$
|
67,066
|
|
$
|
52,952
|
|
$
|
323,935
|
|
$
|
270,896
|
Capital expenditures
(7)
|
14,633
|
|
20,202
|
|
88,429
|
|
68,513
|
Capital expenditures
for turnarounds and catalysts
|
11,081
|
|
1,774
|
|
62,473
|
|
8,617
|
|
|
|
|
As of December
31,
|
|
2014
|
|
2013
|
BALANCE SHEET DATA
(end of period):
|
(dollars in
thousands)
|
Cash and cash
equivalents
|
$
|
214,961
|
|
$
|
224,499
|
Inventories
|
122,803
|
|
128,770
|
Replacement cost
(market value) of LIFO inventories in excess of LIFO carrying
amounts
|
8,341
|
|
61,199
|
Working
capital
|
126,665
|
|
60,863
|
Total
assets
|
2,200,874
|
|
2,245,140
|
Total debt
|
563,687
|
|
612,248
|
Total debt less cash
and cash equivalents
|
348,726
|
|
387,749
|
Total
equity
|
673,778
|
|
625,404
|
|
|
|
REFINING AND
MARKETING SEGMENT
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(dollars in
thousands, except per barrel data and pricing
statistics)
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(8)
|
$
|
1,294,459
|
|
$
|
1,621,692
|
|
$
|
5,937,982
|
|
$
|
6,090,688
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
1,142,721
|
|
1,500,386
|
|
5,329,605
|
|
5,561,825
|
Direct operating
expenses
|
63,471
|
|
59,771
|
|
241,833
|
|
244,759
|
Selling, general and
administrative expenses
|
11,367
|
|
13,916
|
|
56,004
|
|
52,846
|
Depreciation and
amortization
|
27,089
|
|
26,730
|
|
104,676
|
|
105,597
|
Total operating costs
and expenses
|
1,244,648
|
|
1,600,803
|
|
5,732,118
|
|
5,965,027
|
Gain (loss) on
disposition of assets
|
1
|
|
(4)
|
|
(1,255)
|
|
7,359
|
Operating
income
|
$
|
49,812
|
|
$
|
20,885
|
|
$
|
204,609
|
|
$
|
133,020
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
Refinery operating
margin – Big Spring (9)
|
$
|
15.12
|
|
$
|
9.96
|
|
$
|
16.69
|
|
$
|
14.59
|
Refinery operating
margin – Krotz Springs (9)
|
4.04
|
|
8.72
|
|
7.57
|
|
6.16
|
Refinery direct
operating expense – Big Spring (10)
|
3.67
|
|
3.98
|
|
4.39
|
|
4.53
|
Refinery direct
operating expense – Krotz Springs (10)
|
4.46
|
|
3.56
|
|
4.12
|
|
4.09
|
Capital
expenditures
|
$
|
7,825
|
|
$
|
10,122
|
|
$
|
63,148
|
|
$
|
40,272
|
Capital expenditures
for turnarounds and catalysts
|
11,081
|
|
1,774
|
|
62,473
|
|
8,617
|
PRICING
STATISTICS:
|
|
|
|
|
|
|
|
Crack spreads (3/2/1)
(per barrel):
|
|
|
|
|
|
|
|
Gulf Coast
(11)
|
$
|
9.04
|
|
$
|
13.05
|
|
$
|
14.52
|
|
$
|
19.16
|
Crack spreads (2/1/1)
(per barrel):
|
|
|
|
|
|
|
|
Gulf Coast high
sulfur diesel (11)
|
$
|
4.80
|
|
$
|
12.61
|
|
$
|
9.76
|
|
$
|
7.89
|
WTI Cushing crude oil
(per barrel)
|
$
|
73.37
|
|
$
|
97.47
|
|
$
|
93.10
|
|
$
|
97.97
|
Crude oil
differentials (per barrel):
|
|
|
|
|
|
|
|
WTI Cushing less WTI
Midland (12)
|
$
|
5.79
|
|
$
|
2.32
|
|
$
|
6.93
|
|
$
|
2.59
|
WTI Cushing less WTS
(12)
|
4.43
|
|
3.14
|
|
6.04
|
|
3.72
|
LLS less WTI Cushing
(12)
|
3.16
|
|
2.58
|
|
3.85
|
|
11.06
|
Brent less LLS
(12)
|
0.54
|
|
7.31
|
|
3.45
|
|
1.35
|
Brent less WTI
Cushing (12)
|
3.70
|
|
9.89
|
|
7.30
|
|
12.41
|
Product prices
(dollars per gallon):
|
|
|
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.85
|
|
$
|
2.49
|
|
$
|
2.49
|
|
$
|
2.70
|
Gulf Coast ultra-low
sulfur diesel
|
2.20
|
|
2.92
|
|
2.71
|
|
2.97
|
Gulf Coast high
sulfur diesel
|
2.03
|
|
2.88
|
|
2.59
|
|
2.87
|
Natural gas (per
MMBtu)
|
3.83
|
|
3.85
|
|
4.26
|
|
3.73
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
BIG SPRING
REFINERY
|
For the Three
Months Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTS crude
|
35,663
|
|
46.4
|
|
39,775
|
|
54.0
|
|
30,323
|
|
45.9
|
|
43,705
|
|
65.1
|
WTI crude
|
35,691
|
|
46.4
|
|
28,690
|
|
39.0
|
|
32,429
|
|
49.1
|
|
20,706
|
|
30.9
|
Blendstocks
|
5,513
|
|
7.2
|
|
5,148
|
|
7.0
|
|
3,281
|
|
5.0
|
|
2,692
|
|
4.0
|
Total refinery
throughput (13)
|
76,867
|
|
100.0
|
|
73,613
|
|
100.0
|
|
66,033
|
|
100.0
|
|
67,103
|
|
100.0
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
41,015
|
|
53.0
|
|
39,170
|
|
53.0
|
|
32,932
|
|
49.7
|
|
33,736
|
|
50.4
|
Diesel/jet
|
27,074
|
|
34.9
|
|
24,529
|
|
33.3
|
|
23,252
|
|
35.1
|
|
22,404
|
|
33.5
|
Asphalt
|
2,749
|
|
3.5
|
|
3,391
|
|
4.6
|
|
2,716
|
|
4.1
|
|
3,640
|
|
5.4
|
Petrochemicals
|
4,476
|
|
5.8
|
|
4,651
|
|
6.3
|
|
3,756
|
|
5.7
|
|
4,152
|
|
6.2
|
Other
|
2,185
|
|
2.8
|
|
2,029
|
|
2.8
|
|
3,565
|
|
5.4
|
|
3,033
|
|
4.5
|
Total refinery
production (14)
|
77,499
|
|
100.0
|
|
73,770
|
|
100.0
|
|
66,221
|
|
100.0
|
|
66,965
|
|
100.0
|
Refinery utilization
(15)
|
|
|
97.7%
|
|
|
|
97.8%
|
|
|
|
97.2%
|
|
|
|
94.9%
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
KROTZ SPRINGS
REFINERY
|
For the Three
Months Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTI crude
|
28,454
|
|
42.9
|
|
29,292
|
|
40.5
|
|
28,373
|
|
40.3
|
|
29,580
|
|
45.7
|
Gulf Coast sweet
crude
|
32,208
|
|
48.5
|
|
40,438
|
|
55.9
|
|
39,636
|
|
56.4
|
|
33,233
|
|
51.4
|
Blendstocks
|
5,723
|
|
8.6
|
|
2,579
|
|
3.6
|
|
2,336
|
|
3.3
|
|
1,892
|
|
2.9
|
Total refinery
throughput (13)
|
66,385
|
|
100.0
|
|
72,309
|
|
100.0
|
|
70,345
|
|
100.0
|
|
64,705
|
|
100.0
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
31,336
|
|
46.5
|
|
35,574
|
|
48.4
|
|
32,925
|
|
45.9
|
|
29,432
|
|
44.6
|
Diesel/jet
|
26,402
|
|
39.2
|
|
29,820
|
|
40.5
|
|
30,060
|
|
41.9
|
|
26,508
|
|
40.2
|
Heavy Oils
|
1,199
|
|
1.8
|
|
1,118
|
|
1.5
|
|
1,146
|
|
1.6
|
|
1,175
|
|
1.8
|
Other
|
8,441
|
|
12.5
|
|
7,083
|
|
9.6
|
|
7,579
|
|
10.6
|
|
8,857
|
|
13.4
|
Total refinery
production (14)
|
67,378
|
|
100.0
|
|
73,595
|
|
100.0
|
|
71,710
|
|
100.0
|
|
65,972
|
|
100.0
|
Refinery utilization
(15)
|
|
|
82.0%
|
|
|
|
94.2%
|
|
|
|
91.9%
|
|
|
|
85.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPHALT
SEGMENT
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(dollars in
thousands, except per ton data)
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(16)
|
$
|
106,572
|
|
$
|
119,157
|
|
$
|
457,412
|
|
$
|
612,443
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales (16)
(17)
|
102,280
|
|
107,505
|
|
431,931
|
|
558,263
|
Direct operating
expenses
|
9,551
|
|
10,278
|
|
39,853
|
|
42,993
|
Selling, general and
administrative expenses
|
1,499
|
|
3,116
|
|
7,874
|
|
8,886
|
Depreciation and
amortization
|
1,166
|
|
1,698
|
|
4,747
|
|
6,398
|
Total operating costs
and expenses
|
114,496
|
|
122,597
|
|
484,405
|
|
616,540
|
Gain (loss) on
disposition of assets
|
(482)
|
|
—
|
|
1,396
|
|
—
|
Operating
loss
|
$
|
(8,406)
|
|
$
|
(3,440)
|
|
$
|
(25,597)
|
|
$
|
(4,097)
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Blended asphalt sales
volume (tons in thousands) (18)
|
104
|
|
144
|
|
516
|
|
701
|
Non-blended asphalt
sales volume (tons in thousands) (19)
|
24
|
|
33
|
|
65
|
|
88
|
Blended asphalt sales
price per ton (18)
|
$
|
571.30
|
|
$
|
561.34
|
|
$
|
571.18
|
|
$
|
573.87
|
Non-blended asphalt
sales price per ton (19)
|
406.17
|
|
359.58
|
|
397.91
|
|
372.00
|
Asphalt margin per
ton (20)
|
33.53
|
|
65.83
|
|
43.86
|
|
68.67
|
Capital
expenditures
|
$
|
1,505
|
|
$
|
3,478
|
|
$
|
5,777
|
|
$
|
9,425
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL
SEGMENT
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(dollars in
thousands, except per gallon data)
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
Net sales
(1)
|
$
|
216,657
|
|
$
|
223,567
|
|
$
|
939,684
|
|
$
|
944,193
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of sales
(17)
|
176,654
|
|
190,570
|
|
796,356
|
|
805,943
|
Selling, general and
administrative expenses
|
27,260
|
|
25,897
|
|
105,556
|
|
105,719
|
Depreciation and
amortization
|
3,697
|
|
3,466
|
|
12,241
|
|
10,826
|
Total operating costs
and expenses
|
207,611
|
|
219,933
|
|
914,153
|
|
922,488
|
Gain on disposition
of assets
|
10
|
|
716
|
|
134
|
|
2,199
|
Operating
income
|
$
|
9,056
|
|
$
|
4,350
|
|
$
|
25,665
|
|
$
|
23,904
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
Number of stores (end
of period) (21)
|
295
|
|
297
|
|
295
|
|
297
|
Retail fuel sales
(thousands of gallons)
|
49,732
|
|
47,234
|
|
192,582
|
|
188,493
|
Retail fuel sales
(thousands of gallons per site per month) (21)
|
59
|
|
55
|
|
57
|
|
55
|
Retail fuel margin
(cents per gallon) (22)
|
27.6
|
|
18.2
|
|
21.6
|
|
19.3
|
Retail fuel sales
price (dollars per gallon) (23)
|
$
|
2.73
|
|
$
|
3.12
|
|
$
|
3.20
|
|
$
|
3.33
|
Merchandise
sales
|
$
|
80,951
|
|
$
|
76,242
|
|
$
|
322,262
|
|
$
|
316,432
|
Merchandise sales
(per site per month) (21)
|
$
|
91
|
|
$
|
86
|
|
$
|
91
|
|
$
|
89
|
Merchandise margin
(24)
|
32.3%
|
|
31.9%
|
|
31.4%
|
|
32.1%
|
Capital
expenditures
|
$
|
4,654
|
|
$
|
6,389
|
|
$
|
16,748
|
|
$
|
17,935
|
|
|
|
|
(1)
|
Includes excise taxes
on sales by the retail segment of $19,486 and $18,454 for the three
months ended December 31, 2014 and 2013, respectively, and $75,409
and $73,597 for the years ended December 31, 2014 and 2013,
respectively.
|
|
|
(2)
|
Includes corporate
headquarters selling, general and administrative expenses of $177
and $177 for the three months ended December 31, 2014 and 2013,
respectively, and $705 and $721 for the years ended December 31,
2014 and 2013, respectively, which are not allocated to our three
operating segments.
|
|
|
(3)
|
Includes corporate
depreciation and amortization of $610 and $651 for the three months
ended December 31, 2014 and 2013, respectively, and $2,399 and
$2,673 for the years ended December 31, 2014 and 2013,
respectively, which are not allocated to our three operating
segments.
|
|
|
(4)
|
Interest expense for
the year ended December 31, 2013 includes $8,467 for a prepayment
premium and write-offs of unamortized original issuance discount
and debt issuance costs recognized for prepayment of a portion of
the Alon Refining Krotz Springs senior secured notes.
|
|
|
(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 the after-tax loss on write-off of unamortized
debt issuance costs, after-tax loss on write-off of unamortized
original issuance discount, after-tax loss on debt prepayment
premium, after-tax costs associated with the unplanned reformer
shutdown and repair, after-tax environmental charges, after-tax
unrealized gains 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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(dollars in
thousands)
|
|
Net income (loss)
available to stockholders
|
$
|
6,707
|
|
$
|
(13,985)
|
|
$
|
38,457
|
|
$
|
22,986
|
|
Plus: Write-off of
debt issuance costs, net of tax
|
123
|
|
1,442
|
|
411
|
|
1,442
|
|
Plus: Write-off of
original issuance discount, net of tax
|
—
|
|
1,442
|
|
265
|
|
1,442
|
|
Plus: Debt prepayment
premium, net of tax
|
—
|
|
3,643
|
|
—
|
|
3,643
|
|
Plus: Costs
associated with the unplanned reformer shutdown and repair, net of
tax
|
—
|
|
—
|
|
—
|
|
11,643
|
|
Plus: Environmental
charges, net of tax
|
1,634
|
|
—
|
|
1,950
|
|
—
|
|
Less: Unrealized
gains on commodity swaps, net of tax
|
(8,973)
|
|
—
|
|
(2,781)
|
|
—
|
|
Less: (Gain) loss on
disposition of assets, net of tax
|
290
|
|
(549)
|
|
(202)
|
|
(6,683)
|
|
Adjusted net income
(loss) available to stockholders
|
$
|
(219)
|
|
$
|
(8,007)
|
|
$
|
38,100
|
|
$
|
34,473
|
|
Adjusted earnings
(loss) per share *
|
$
|
—
|
|
$
|
(0.12)
|
|
$
|
0.55
|
|
$
|
0.51
|
|
|
*
|
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, interest expense,
depreciation and amortization, gain (loss) on disposition of assets
and unrealized gains 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, interest expense,
gain (loss) on disposition of assets, unrealized gains 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.
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|
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, 2014 and
2013:
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(dollars in
thousands)
|
|
Net income (loss)
available to stockholders
|
$
|
6,707
|
|
$
|
(13,985)
|
|
$
|
38,457
|
|
$
|
22,986
|
|
Net income
attributable to non-controlling interest
|
7,749
|
|
1,692
|
|
31,411
|
|
25,129
|
|
Income tax
expense
|
8,459
|
|
2,534
|
|
22,913
|
|
12,151
|
|
Interest
expense
|
25,670
|
|
30,878
|
|
111,143
|
|
94,694
|
|
Depreciation and
amortization
|
32,562
|
|
32,545
|
|
124,063
|
|
125,494
|
|
(Gain) loss on
disposition of assets
|
471
|
|
(712)
|
|
(274)
|
|
(9,558)
|
|
Unrealized gains on
commodity swaps
|
(14,552)
|
|
—
|
|
(3,778)
|
|
—
|
|
Adjusted
EBITDA
|
$
|
67,066
|
|
$
|
52,952
|
|
$
|
323,935
|
|
$
|
270,896
|
|
|
|
|
(7)
|
Includes corporate
capital expenditures of $649 and $213 for the three months ended
December 31, 2014 and 2013, respectively, and $2,756 and $881 for
the years ended December 31, 2014 and 2013, respectively, which are
not allocated to our three operating segments.
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|
|
(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
substantial hedge positions) attributable to each refinery by its
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.
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|
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|
The refinery
operating margin for the three months and year ended December 31,
2014 excludes gains on commodity swaps of $14,552 and $4,660,
respectively.
|
|
|
|
The refinery
operating margin for the three months and year ended December 31,
2013 excludes gains on commodity swaps of $2,567 and $23,900,
respectively.
|
|
|
(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.
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|
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|
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.
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|
|
(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 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.
|
|
|
(13)
|
Total refinery
throughput represents the total barrels per day of crude oil and
blendstock inputs in the refinery production process.
|
|
|
(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.
|
|
|
(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 approximately $37,000 and $26,000 for the
three months ended December 31, 2014 and 2013 respectively, and
approximately $137,000 and $177,000 for the years ended December
31, 2014 and 2013, respectively. The volumes associated with these
sales are excluded from the Key Operating Statistics.
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|
|
(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 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.
|
|
|
(21)
|
At December 31, 2014,
we had 295 convenience stores of which 283 sold fuel. At December
31, 2013, we had 297 convenience stores of which 285 sold
fuel.
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(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.
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(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.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alon-usa-energy-inc-reports-fourth-quarter-and-full-year-2014-results-300046389.html
SOURCE Alon USA Energy,
Inc.