DALLAS, Feb. 24, 2016 /PRNewswire/ -- Alon
USA Energy, Inc. (NYSE: ALJ)
("Alon") today announced results for the fourth quarter and year
ended December 31, 2015. Net loss available to stockholders
for the fourth quarter of 2015 was $(52.5)
million, or $(0.75) per share,
compared to net income available to stockholders of $6.7 million, or $0.10 per share, for the same period last year.
Excluding special items, Alon recorded net loss available to
stockholders of $(14.6) million, or
$(0.21) per share, for the fourth
quarter of 2015, compared to net loss available to stockholders of
$(0.2) million, or $0.00 per share, for the same period last
year.
Net income available to stockholders for the full year 2015 was
$52.8 million, or $0.76 per share, compared to net income available
to stockholders of $38.5 million, or
$0.56 per share, for 2014. Excluding
special items, Alon recorded net income available to stockholders
of $95.5 million, or $1.37 per share, for the full year 2015, compared
to net income available to stockholders of $38.1 million, or $0.55 per share, for 2014.
Paul Eisman, President and CEO,
commented, "We are pleased with our overall operational and
financial performance in 2015. We achieved the second highest
annual adjusted EBITDA in our company's history, increased our
regular dividend by 50% from $0.40 to
$0.60 per annum and reduced our
interest expense in 2015 by over $30
million compared to 2014. As a result, we reduced our net
debt to $322 million, despite high
capital spending of over $160
million, substantially related to capital expenditures and
turnaround costs. With the Krotz
Springs turnaround successfully completed in the fourth
quarter of 2015 and the Big Spring
turnaround executed in 2014, our assets are prepared to run well in
the coming years. Our next major turnaround will not occur until
2019, allowing us to focus on our growth initiatives at both
facilities.
"The Big Spring refinery ran
well in 2015, setting a new total throughput record for the year.
In the fourth quarter, the Big
Spring refinery achieved total throughput of approximately
76,000 barrels per day and refinery operating margin of
$10.02 per barrel. Relative to the
third quarter of 2015, the Big
Spring refinery's fourth quarter results were negatively
impacted by seasonal weakness in crack spreads. Also, an outage at
Big Spring's alkylation unit in
the quarter impacted gasoline yields and direct operating expenses
which were higher than planned at $3.88 per barrel. We also completed a reformer
regeneration and catalyst replacement for our diesel hydrotreater
unit in the beginning of the first quarter of 2016, which we had
postponed from the third quarter of 2015.
"During the fourth quarter of 2015, we successfully completed
the planned major turnaround at the Krotz
Springs refinery. The turnaround negatively impacted total
throughput, which was 41,000 barrels per day, direct operating
expense and refinery operating margin. The refinery operating
margin was also impacted by the seasonal weakness in crack spreads.
In conjunction with the turnaround, we invested nearly $15 million in reliability improvements at the
refinery. We continue to progress with our plans to add a sulfuric
acid alkylation unit at Krotz
Springs.
"Our retail business performed well in 2015 but faced headwinds
in the fourth quarter. In addition to seasonal weakness, our
performance suffered from severe weather conditions in our markets
and weakness in the Midland/Odessa area due to lower economic activity. In
October, we opened a new large-format store in El Paso. The performance of the 14 Albuquerque
locations acquired in August has exceeded our expectations.
"Our asphalt segment significantly improved in 2015, and we
believe the improvements that we have made in our business are
sustainable. In 2015, we reduced our direct operating expense by
$12 million, which contributed in
part to a $28 million improvement in
our operating income in 2015 relative to 2014.
"Due to the volatility in oil prices and contraction of crude
differentials, the expected cash flows from future operations of
our California refining assets,
primarily the Bakersfield rail
crude offloading facility, have been deferred. As a result, in the
fourth quarter of 2015, we have decided to impair our goodwill
associated with the California
refining assets, resulting in a non-cash bottom-line impact of
approximately $39 million.
"We expect total throughput at the Big
Spring refinery to average approximately 68,000 barrels per
day for the first quarter and 73,000 barrels per day for the full
year of 2016. We expect total throughput at the Krotz Springs refinery to average
approximately 72,000 barrels per day for the first quarter and
75,000 barrels per day for the full year of 2016."
FOURTH QUARTER 2015
Special items reduced earnings by $37.9
million for the fourth quarter of 2015 primarily as a result
of a loss on impairment of goodwill of $38.5
million, after-tax losses of $1.2
million related to an asphalt inventory adjustment,
after-tax expenses of $1.0 million
associated with our employee retention plan and after-tax
unrealized losses of $0.8 million
associated with commodity swaps, partially offset by after-tax
insurance recoveries net of professional fees of $2.6 million and $0.9
million associated with after-tax gains recognized on
disposition of assets. 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.
The combined total refinery average throughput for the fourth
quarter of 2015 was 116,995 barrels per day ("bpd"), compared to a
combined total refinery average throughput of 143,252 bpd for the
fourth quarter of 2014. The Big
Spring refinery average throughput for the fourth quarter of
2015 was 75,925 bpd, compared to 76,867 bpd for the fourth quarter
of 2014. The Krotz Springs
refinery average throughput for the fourth quarter of 2015 was
41,070 bpd, compared to 66,385 bpd for the fourth quarter of 2014.
The decreased throughput at the Krotz
Springs refinery was due to downtime necessary to complete
the planned major turnaround during the fourth quarter of 2015.
Refinery operating margin at the Big
Spring refinery was $10.02 per
barrel for the fourth quarter of 2015 compared to $15.12 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to the less
favorable industry margin environment. The unfavorable contraction
in the WTI Cushing to WTI Midland and the WTI Cushing to WTS
spreads was greater than the improvement in the Gulf Coast 3/2/1
spread and the cost of crude benefit from the market moving from
backwardation into contango.
Refinery operating margin at the Krotz
Springs refinery was $1.55 per
barrel for the fourth quarter of 2015 compared to $4.04 per barrel for the same period in 2014.
This decrease in operating margin was primarily due to the negative
impact of the planned major turnaround on refinery production.
The average WTI Cushing to WTI Midland spread for the fourth
quarter of 2015 was $(0.20) per
barrel compared to $5.79 per barrel
for the same period in 2014. The average WTI Cushing to WTS spread
for the fourth quarter of 2015 was $(0.26) per barrel compared to $4.43 per barrel for the same period in 2014. The
average Brent to WTI Cushing spread for the fourth quarter of 2015
was $1.35 per barrel compared to
$3.07 per barrel for the same period
in 2014. The average LLS to WTI Cushing spread for the fourth
quarter of 2015 was $2.08 per barrel
compared to $3.16 per barrel for the
same period in 2014. The average Brent to LLS spread for the fourth
quarter of 2015 was $(0.30) per
barrel compared to $0.54 per barrel
for the same period in 2014.
The average Gulf Coast 3/2/1 crack spread was $10.90 per barrel for the fourth quarter of 2015
compared to $9.04 per barrel for the
fourth quarter of 2014. The average Gulf Coast 2/1/1 high sulfur
diesel crack spread was $7.13 per
barrel for the fourth quarter of 2015 compared to $4.80 per barrel for the fourth quarter of
2014.
The contango environment in the fourth quarter of 2015 created a
cost of crude benefit of $0.94 per
barrel compared to the backwardated environment creating a cost of
crude detriment of $0.68 per barrel
for the same period in 2014.
Asphalt margins for the fourth quarter of 2015 were $102.85 per ton compared to $33.53 per ton for the fourth quarter of 2014. On
a cash basis (i.e. excluding inventory effects), asphalt margins in
the fourth quarter of 2015 were $106.92 per ton compared to $36.51 per ton in the fourth quarter of 2014. The
increase in asphalt margins was primarily due to a smaller
reduction in blended asphalt sales price relative to the reduction
in the cost of blended asphalt during the fourth quarter of 2015
compared to the fourth quarter of 2014.
Retail fuel sales volume increased to 52.2 million gallons in
the fourth quarter of 2015 from 49.7 million gallons in the fourth
quarter of 2014. Merchandise margins decreased to 31.1% in the
fourth quarter of 2015 from 32.3% in the fourth quarter of
2014.
FULL-YEAR 2015
Special items reduced earnings by $42.7
million for 2015 primarily as a result of a loss on
impairment of goodwill of $38.5
million, after-tax losses of $5.7
million related to an asphalt inventory adjustment and
after-tax expenses of $8.0 million
associated with our employee retention plan, partially offset by
after-tax unrealized gains of $5.6
million associated with commodity swaps, after-tax
insurance recoveries net of professional fees of
$2.6 million and $1.4 million associated with after-tax gains
recognized on disposition of assets. 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.
Combined refinery average throughput for 2015 was 140,036 bpd,
compared to a combined refinery average throughput of 136,378 bpd
in 2014. The Big Spring refinery
average throughput for 2015 was 74,906 bpd compared to 66,033 bpd
for 2014. During 2014, refinery throughput at the Big Spring refinery was reduced as we
completed both the planned major turnaround and the vacuum tower
project. The Krotz Springs
refinery average throughput for 2015 was 65,130 bpd compared to
70,345 bpd for 2014. 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 $14.43 per
barrel for 2015 compared to $16.69
per barrel for 2014. This decrease in operating margin was
primarily due to the less favorable industry margin environment.
The unfavorable contraction in the WTI Cushing to WTI Midland and
the WTI Cushing to WTS spreads was greater than the improvement in
the Gulf Coast 3/2/1 spread and the cost of crude benefit from the
market moving from backwardation into contango.
Refinery operating margin at the Krotz
Springs refinery was $7.02 per
barrel for 2015 compared to $7.57 per
barrel for 2014. This decrease in operating margin was primarily
due to the less favorable industry margin environment. The
unfavorable contraction in the WTI Cushing to WTI Midland and the
LLS to WTI Cushing spreads was greater than the improvement in the
Gulf Coast 2/1/1 high sulfur diesel crack spread and the cost of
crude benefit from the market moving from backwardation into
contango.
The average WTI Cushing to WTI Midland spread for 2015 was
$0.39 per barrel compared to
$6.93 per barrel for 2014. The
average WTI Cushing to WTS spread for 2015 was $(0.06) per barrel compared to $6.04 per barrel for 2014. The average Brent to
WTI Cushing spread for 2015 was $3.54
per barrel compared to $6.19 per
barrel for 2014. The average LLS to WTI Cushing spread for 2015 was
$3.73 per barrel compared to
$3.85 per barrel for 2014. The
average Brent to LLS spread for 2015 was $0.14 per barrel compared to $3.45 per barrel for 2014.
The average Gulf Coast 3/2/1 crack spread for 2015 was
$17.02 per barrel compared to
$14.52 per barrel for 2014. The
average Gulf Coast 2/1/1 high sulfur diesel crack spread for 2015
was $10.81 per barrel compared to
$9.76 per barrel for 2014.
The contango environment in 2015 created a cost of crude benefit
of $1.01 per barrel compared to the
backwardated environment creating a cost of crude detriment of
$0.73 per barrel in 2014.
Asphalt margins for 2015 were $105.70 per ton compared to $43.86 per ton in 2014. On a cash basis (i.e.
excluding inventory effects), asphalt margins in 2015 were
$109.35 per ton compared to
$41.31 per ton in 2014. The increase
in asphalt margins was primarily due to a smaller reduction in
blended asphalt sales price relative to the reduction in cost of
blended asphalt during 2015 compared to 2014.
Retail fuel sales volume increased to 199.1 million gallons in
2015 from 192.6 million gallons in 2014. Merchandise margins
increased to 31.9% in 2015 from 31.4% in 2014. Merchandise sales
increased to $328.5 million in 2015
from $322.3 million in 2014.
CONFERENCE CALL
Alon has scheduled a conference call, which will be broadcast
live over the Internet on Thursday, February
25, 2016, at 12:00 p.m. Eastern
Time (11:00 a.m. Central
Time), to discuss the fourth quarter and year-end 2015
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 10, 2016, and may be accessed by calling
877-660-6853, or 201-612-7415 for international callers, and using
the passcode 13629237#. 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. 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.
- 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, 2014, AND INCOME STATEMENT
DATA FOR THE YEAR ENDED DECEMBER 31, 2014, IS
UNAUDITED)
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per share data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
Net sales
(1)
|
$
|
782,367
|
|
|
$
|
1,503,231
|
|
|
$
|
4,338,152
|
|
|
$
|
6,779,456
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
636,794
|
|
|
1,307,198
|
|
|
3,515,406
|
|
|
6,002,270
|
|
|
Direct operating
expenses
|
63,426
|
|
|
73,022
|
|
|
255,534
|
|
|
281,686
|
|
|
Selling, general and
administrative expenses (2)
|
51,306
|
|
|
40,303
|
|
|
200,195
|
|
|
170,139
|
|
|
Depreciation and
amortization (3)
|
32,232
|
|
|
32,562
|
|
|
126,494
|
|
|
124,063
|
|
|
Total operating costs
and expenses
|
783,758
|
|
|
1,453,085
|
|
|
4,097,629
|
|
|
6,578,158
|
|
|
Gain (loss) on
disposition of assets
|
1,319
|
|
|
(471)
|
|
|
1,914
|
|
|
274
|
|
|
Loss on impairment of
goodwill (4)
|
(39,028)
|
|
|
—
|
|
|
(39,028)
|
|
|
—
|
|
|
Operating income
(loss)
|
(39,100)
|
|
|
49,675
|
|
|
203,409
|
|
|
201,572
|
|
|
Interest
expense
|
(19,876)
|
|
|
(25,670)
|
|
|
(79,826)
|
|
|
(111,143)
|
|
|
Equity earnings
(losses) of investees
|
1,944
|
|
|
(1,123)
|
|
|
6,669
|
|
|
1,678
|
|
|
Other income,
net
|
266
|
|
|
33
|
|
|
417
|
|
|
674
|
|
|
Income (loss) before
income tax expense (benefit)
|
(56,766)
|
|
|
22,915
|
|
|
130,669
|
|
|
92,781
|
|
|
Income tax expense
(benefit)
|
(4,860)
|
|
|
8,459
|
|
|
48,282
|
|
|
22,913
|
|
|
Net income
(loss)
|
(51,906)
|
|
|
14,456
|
|
|
82,387
|
|
|
69,868
|
|
|
Net income
attributable to non-controlling interest
|
628
|
|
|
7,749
|
|
|
29,636
|
|
|
31,411
|
|
|
Net income (loss)
available to stockholders
|
$
|
(52,534)
|
|
|
$
|
6,707
|
|
|
$
|
52,751
|
|
|
$
|
38,457
|
|
|
Earnings (loss) per
share, basic
|
$
|
(0.75)
|
|
|
$
|
0.10
|
|
|
$
|
0.76
|
|
|
$
|
0.56
|
|
|
Weighted average
shares outstanding, basic (in thousands)
|
70,027
|
|
|
69,319
|
|
|
69,772
|
|
|
68,985
|
|
|
Earnings (loss) per
share, diluted
|
$
|
(0.75)
|
|
|
$
|
0.10
|
|
|
$
|
0.75
|
|
|
$
|
0.55
|
|
|
Weighted average
shares outstanding, diluted (in thousands)
|
70,027
|
|
|
69,842
|
|
|
70,714
|
|
|
69,373
|
|
|
Cash dividends per
share
|
$
|
0.15
|
|
|
$
|
0.31
|
|
|
$
|
0.55
|
|
|
$
|
0.53
|
|
|
CASH FLOW
DATA:
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
49,755
|
|
|
$
|
49,074
|
|
|
$
|
226,065
|
|
|
$
|
193,658
|
|
|
Investing
activities
|
(81,713)
|
|
|
(24,242)
|
|
|
(160,011)
|
|
|
(108,995)
|
|
|
Financing
activities
|
27,221
|
|
|
(3,439)
|
|
|
(46,888)
|
|
|
(94,201)
|
|
|
OTHER
DATA:
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) available to stockholders (5)
|
$
|
(14,635)
|
|
|
$
|
(219)
|
|
|
$
|
95,459
|
|
|
$
|
38,100
|
|
|
Adjusted earnings
(loss) per share (5)
|
$
|
(0.21)
|
|
|
$
|
—
|
|
|
$
|
1.37
|
|
|
$
|
0.55
|
|
|
Adjusted EBITDA
(6)
|
$
|
34,128
|
|
|
$
|
67,066
|
|
|
$
|
366,166
|
|
|
$
|
323,935
|
|
|
Capital expenditures
(7)
|
43,933
|
|
|
14,633
|
|
|
101,195
|
|
|
88,429
|
|
|
Capital expenditures
for turnarounds and catalysts
|
23,938
|
|
|
11,081
|
|
|
35,348
|
|
|
62,473
|
|
|
|
|
|
As of December
31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
BALANCE SHEET DATA
(end of period):
|
|
|
(dollars in
thousands)
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
$
|
234,127
|
|
|
$
|
214,961
|
|
Working
capital
|
|
|
|
|
|
|
|
78,694
|
|
|
|
126,665
|
|
Total assets
(8)
|
|
|
|
|
|
|
|
2,176,138
|
|
|
|
2,191,644
|
|
Total debt
(8)
|
|
|
|
|
|
|
|
555,962
|
|
|
|
554,457
|
|
Total debt less cash
and cash equivalents (8)
|
|
|
|
|
|
|
|
321,835
|
|
|
|
339,496
|
|
Total
equity
|
|
|
|
|
|
|
|
664,160
|
|
|
|
673,778
|
|
|
|
|
|
|
|
|
|
|
|
REFINING AND
MARKETING SEGMENT
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per barrel data and pricing
statistics)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
Net sales
(9)
|
$
|
627,498
|
|
|
$
|
1,294,459
|
|
|
$
|
3,663,956
|
|
|
$
|
5,937,982
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
528,548
|
|
|
1,142,721
|
|
|
3,034,531
|
|
|
5,329,605
|
|
|
Direct operating
expenses
|
57,063
|
|
|
63,471
|
|
|
227,517
|
|
|
241,833
|
|
|
Selling, general and
administrative expenses
|
19,553
|
|
|
11,367
|
|
|
79,022
|
|
|
56,004
|
|
|
Depreciation and
amortization
|
27,253
|
|
|
27,089
|
|
|
107,619
|
|
|
104,676
|
|
|
Total operating costs
and expenses
|
632,417
|
|
|
1,244,648
|
|
|
3,448,689
|
|
|
5,732,118
|
|
|
Gain (loss) on
disposition of assets
|
1,319
|
|
|
1
|
|
|
1,842
|
|
|
(1,255)
|
|
|
Loss on impairment of
goodwill (4)
|
(39,028)
|
|
|
—
|
|
|
(39,028)
|
|
|
—
|
|
|
Operating income
(loss)
|
$
|
(42,628)
|
|
|
$
|
49,812
|
|
|
$
|
178,081
|
|
|
$
|
204,609
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
|
Refinery operating
margin – Big Spring (10)
|
$
|
10.02
|
|
|
$
|
15.12
|
|
|
$
|
14.43
|
|
|
$
|
16.69
|
|
|
Refinery operating
margin – Krotz Springs (10)
|
1.55
|
|
|
4.04
|
|
|
7.02
|
|
|
7.57
|
|
|
Refinery direct
operating expense – Big Spring (11)
|
3.88
|
|
|
3.67
|
|
|
3.62
|
|
|
4.39
|
|
|
Refinery direct
operating expense – Krotz Springs (11)
|
5.82
|
|
|
4.46
|
|
|
4.03
|
|
|
4.12
|
|
|
Capital
expenditures
|
$
|
37,926
|
|
|
$
|
7,825
|
|
|
$
|
73,429
|
|
|
$
|
63,148
|
|
|
Capital expenditures
for turnarounds and catalysts
|
23,938
|
|
|
11,081
|
|
|
35,348
|
|
|
62,473
|
|
|
PRICING
STATISTICS:
|
|
|
|
|
|
|
|
|
Crack spreads (3/2/1)
(per barrel):
|
|
|
|
|
|
|
|
|
Gulf Coast
(12)
|
$
|
10.90
|
|
|
$
|
9.04
|
|
|
$
|
17.02
|
|
|
$
|
14.52
|
|
|
Crack spreads (2/1/1)
(per barrel):
|
|
|
|
|
|
|
|
|
Gulf Coast high
sulfur diesel (12)
|
$
|
7.13
|
|
|
$
|
4.80
|
|
|
$
|
10.81
|
|
|
$
|
9.76
|
|
|
WTI Cushing crude oil
(per barrel)
|
$
|
42.05
|
|
|
$
|
73.37
|
|
|
$
|
48.68
|
|
|
$
|
93.10
|
|
|
Crude oil
differentials (per barrel):
|
|
|
|
|
|
|
|
|
WTI Cushing less WTI
Midland (13)
|
$
|
(0.20)
|
|
|
$
|
5.79
|
|
|
$
|
0.39
|
|
|
$
|
6.93
|
|
|
WTI Cushing less WTS
(13)
|
(0.26)
|
|
|
4.43
|
|
|
(0.06)
|
|
|
6.04
|
|
|
LLS less WTI Cushing
(13)
|
2.08
|
|
|
3.16
|
|
|
3.73
|
|
|
3.85
|
|
|
Brent less LLS
(13)
|
(0.30)
|
|
|
0.54
|
|
|
0.14
|
|
|
3.45
|
|
|
Brent less WTI
Cushing (13)
|
1.35
|
|
|
3.07
|
|
|
3.54
|
|
|
6.19
|
|
|
Product prices
(dollars per gallon):
|
|
|
|
|
|
|
|
|
Gulf Coast unleaded
gasoline
|
$
|
1.25
|
|
|
$
|
1.85
|
|
|
$
|
1.56
|
|
|
$
|
2.49
|
|
|
Gulf Coast ultra-low
sulfur diesel
|
1.29
|
|
|
2.20
|
|
|
1.58
|
|
|
2.71
|
|
|
Gulf Coast high
sulfur diesel
|
1.19
|
|
|
2.03
|
|
|
1.45
|
|
|
2.59
|
|
|
Natural gas (per
MMBtu)
|
2.23
|
|
|
3.83
|
|
|
2.63
|
|
|
4.26
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
BIG SPRING
REFINERY
|
For the Three
Months Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTS crude
|
29,510
|
|
|
38.9
|
|
|
35,663
|
|
|
46.4
|
|
|
33,647
|
|
|
44.9
|
|
|
30,323
|
|
|
45.9
|
|
|
WTI crude
|
43,968
|
|
|
57.9
|
|
|
35,691
|
|
|
46.4
|
|
|
38,632
|
|
|
51.6
|
|
|
32,429
|
|
|
49.1
|
|
|
Blendstocks
|
2,447
|
|
|
3.2
|
|
|
5,513
|
|
|
7.2
|
|
|
2,627
|
|
|
3.5
|
|
|
3,281
|
|
|
5.0
|
|
|
Total refinery
throughput (14)
|
75,925
|
|
|
100.0
|
|
|
76,867
|
|
|
100.0
|
|
|
74,906
|
|
|
100.0
|
|
|
66,033
|
|
|
100.0
|
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
38,600
|
|
|
50.8
|
|
|
41,015
|
|
|
53.0
|
|
|
37,519
|
|
|
50.0
|
|
|
32,932
|
|
|
49.7
|
|
|
Diesel/jet
|
27,812
|
|
|
36.6
|
|
|
27,074
|
|
|
34.9
|
|
|
27,651
|
|
|
36.8
|
|
|
23,252
|
|
|
35.1
|
|
|
Asphalt
|
2,362
|
|
|
3.1
|
|
|
2,749
|
|
|
3.5
|
|
|
2,639
|
|
|
3.5
|
|
|
2,716
|
|
|
4.1
|
|
|
Petrochemicals
|
4,012
|
|
|
5.3
|
|
|
4,476
|
|
|
5.8
|
|
|
4,579
|
|
|
6.1
|
|
|
3,756
|
|
|
5.7
|
|
|
Other
|
3,176
|
|
|
4.2
|
|
|
2,185
|
|
|
2.8
|
|
|
2,678
|
|
|
3.6
|
|
|
3,565
|
|
|
5.4
|
|
|
Total refinery
production (15)
|
75,962
|
|
|
100.0
|
|
|
77,499
|
|
|
100.0
|
|
|
75,066
|
|
|
100.0
|
|
|
66,221
|
|
|
100.0
|
|
|
Refinery utilization
(16)
|
|
|
100.7
|
%
|
|
|
|
97.7
|
%
|
|
|
|
99.0
|
%
|
|
|
|
97.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THROUGHPUT AND
PRODUCTION DATA:
KROTZ SPRINGS
REFINERY
|
For the Three
Months Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
bpd
|
|
%
|
|
Refinery
throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTI crude
|
8,750
|
|
|
21.3
|
|
|
28,454
|
|
|
42.9
|
|
|
22,408
|
|
|
34.4
|
|
|
28,373
|
|
|
40.3
|
|
|
Gulf Coast sweet
crude
|
29,384
|
|
|
71.6
|
|
|
32,208
|
|
|
48.5
|
|
|
38,699
|
|
|
59.4
|
|
|
39,636
|
|
|
56.4
|
|
|
Blendstocks
|
2,936
|
|
|
7.1
|
|
|
5,723
|
|
|
8.6
|
|
|
4,023
|
|
|
6.2
|
|
|
2,336
|
|
|
3.3
|
|
|
Total refinery
throughput (14)
|
41,070
|
|
|
100.0
|
|
|
66,385
|
|
|
100.0
|
|
|
65,130
|
|
|
100.0
|
|
|
70,345
|
|
|
100.0
|
|
|
Refinery
production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
18,083
|
|
|
43.7
|
|
|
31,336
|
|
|
46.5
|
|
|
30,193
|
|
|
45.5
|
|
|
32,925
|
|
|
45.9
|
|
|
Diesel/jet
|
16,037
|
|
|
38.7
|
|
|
26,402
|
|
|
39.2
|
|
|
27,259
|
|
|
41.0
|
|
|
30,060
|
|
|
41.9
|
|
|
Heavy Oils
|
654
|
|
|
1.6
|
|
|
1,199
|
|
|
1.8
|
|
|
1,165
|
|
|
1.8
|
|
|
1,146
|
|
|
1.6
|
|
|
Other
|
6,632
|
|
|
16.0
|
|
|
8,441
|
|
|
12.5
|
|
|
7,781
|
|
|
11.7
|
|
|
7,579
|
|
|
10.6
|
|
|
Total refinery
production (15)
|
41,406
|
|
|
100.0
|
|
|
67,378
|
|
|
100.0
|
|
|
66,398
|
|
|
100.0
|
|
|
71,710
|
|
|
100.0
|
|
|
Refinery utilization
(16)
|
|
|
83.1
|
%
|
|
|
|
82.0
|
%
|
|
|
|
91.3
|
%
|
|
|
|
91.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASPHALT
SEGMENT
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per ton data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
Net sales
(17)
|
$
|
48,967
|
|
|
$
|
106,572
|
|
|
$
|
257,955
|
|
|
$
|
457,412
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales (17)
(18)
|
38,081
|
|
|
102,280
|
|
|
212,166
|
|
|
431,931
|
|
|
Direct operating
expenses
|
6,363
|
|
|
9,551
|
|
|
28,017
|
|
|
39,853
|
|
|
Selling, general and
administrative expenses
|
3,280
|
|
|
1,499
|
|
|
10,517
|
|
|
7,874
|
|
|
Depreciation and
amortization
|
1,227
|
|
|
1,166
|
|
|
4,892
|
|
|
4,747
|
|
|
Total operating costs
and expenses
|
48,951
|
|
|
114,496
|
|
|
255,592
|
|
|
484,405
|
|
|
Gain (loss) on
disposition of assets
|
—
|
|
|
(482)
|
|
|
—
|
|
|
1,396
|
|
|
Operating income
(loss) (21)
|
$
|
16
|
|
|
$
|
(8,406)
|
|
|
$
|
2,363
|
|
|
$
|
(25,597)
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
|
Blended asphalt sales
volume (tons in thousands) (19)
|
104
|
|
|
104
|
|
|
451
|
|
|
516
|
|
|
Non-blended asphalt
sales volume (tons in thousands) (20)
|
18
|
|
|
24
|
|
|
59
|
|
|
65
|
|
|
Blended asphalt sales
price per ton (19)
|
$
|
451.98
|
|
|
$
|
571.30
|
|
|
$
|
486.34
|
|
|
$
|
571.18
|
|
|
Non-blended asphalt
sales price per ton (20)
|
116.61
|
|
|
406.17
|
|
|
231.00
|
|
|
397.91
|
|
|
Asphalt margin per
ton (21)
|
102.85
|
|
|
33.53
|
|
|
105.70
|
|
|
43.86
|
|
|
Capital
expenditures
|
$
|
901
|
|
|
$
|
1,505
|
|
|
$
|
3,385
|
|
|
$
|
5,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL
SEGMENT
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars in
thousands, except per gallon data)
|
|
STATEMENTS OF
OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
Net sales
(1)
|
$
|
182,960
|
|
|
$
|
216,657
|
|
|
$
|
774,435
|
|
|
$
|
939,684
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
(18)
|
147,223
|
|
|
176,654
|
|
|
626,903
|
|
|
796,356
|
|
|
Selling, general and
administrative expenses
|
28,292
|
|
|
27,260
|
|
|
109,943
|
|
|
105,556
|
|
|
Depreciation and
amortization
|
3,427
|
|
|
3,697
|
|
|
12,431
|
|
|
12,241
|
|
|
Total operating costs
and expenses
|
178,942
|
|
|
207,611
|
|
|
749,277
|
|
|
914,153
|
|
|
Gain on disposition
of assets
|
—
|
|
|
10
|
|
|
72
|
|
|
134
|
|
|
Operating
income
|
$
|
4,018
|
|
|
$
|
9,056
|
|
|
$
|
25,230
|
|
|
$
|
25,665
|
|
|
KEY OPERATING
STATISTICS:
|
|
|
|
|
|
|
|
|
Number of stores (end
of period) (22)
|
309
|
|
|
295
|
|
|
309
|
|
|
295
|
|
|
Retail fuel sales
(thousands of gallons)
|
52,155
|
|
|
49,732
|
|
|
199,147
|
|
|
192,582
|
|
|
Retail fuel
sales (thousands of gallons per site per month)
(22)
|
58
|
|
|
59
|
|
|
58
|
|
|
57
|
|
|
Retail fuel margin
(cents per gallon) (23)
|
20.0
|
|
|
27.6
|
|
|
21.3
|
|
|
21.6
|
|
|
Retail fuel sales
price (dollars per gallon) (24)
|
$
|
1.95
|
|
|
$
|
2.73
|
|
|
$
|
2.24
|
|
|
$
|
3.20
|
|
|
Merchandise
sales
|
$
|
80,958
|
|
|
$
|
80,951
|
|
|
$
|
328,505
|
|
|
$
|
322,262
|
|
|
Merchandise sales
(per site per month) (22)
|
$
|
87
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
Merchandise margin
(25)
|
31.1
|
%
|
|
32.3
|
%
|
|
31.9
|
%
|
|
31.4
|
%
|
|
Capital
expenditures
|
$
|
4,110
|
|
|
$
|
4,654
|
|
|
$
|
18,993
|
|
|
$
|
16,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes excise taxes
on sales by the retail segment of $20,367 and $19,486 for the three
months ended December 31, 2015 and 2014, respectively, and
$77,860 and $75,409 for the years ended December 31, 2015 and
2014, respectively.
|
|
|
|
(2)
|
Includes corporate
headquarters selling, general and administrative expenses of $181
and $177 for the three months ended December 31, 2015 and
2014, respectively, and $713 and $705 for the years ended
December 31, 2015 and 2014, respectively, which are not
allocated to our three operating segments.
|
|
|
|
(3)
|
Includes corporate
depreciation and amortization of $325 and $610 for the three months
ended December 31, 2015 and 2014, respectively, and $1,552 and
$2,399 for the years ended December 31, 2015 and 2014,
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 per share,
excluding the after-tax write-off of unamortized debt issuance
costs, after-tax write-off of unamortized original issuance
discount, after-tax employee retention expense, after-tax
environmental charges, 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,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(dollars in
thousands)
|
|
|
Net income (loss)
available to stockholders
|
$
|
(52,534)
|
|
|
$
|
6,707
|
|
|
$
|
52,751
|
|
|
$
|
38,457
|
|
|
|
Plus: Write-off of
debt issuance costs, net of tax
|
—
|
|
|
123
|
|
|
—
|
|
|
411
|
|
|
|
Plus: Write-off of
original issuance discount, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
265
|
|
|
|
Plus: Employee
retention expense, net of tax
|
956
|
|
|
—
|
|
|
8,007
|
|
|
—
|
|
|
|
Plus: Environmental
charges, net of tax
|
—
|
|
|
1,634
|
|
|
—
|
|
|
1,950
|
|
|
|
Plus: Loss on
impairment of goodwill
|
38,540
|
|
|
—
|
|
|
38,540
|
|
|
—
|
|
|
|
Plus: Loss on asphalt
inventory adjustment, net of tax
|
1,192
|
|
|
—
|
|
|
5,736
|
|
|
—
|
|
|
|
Less: Insurance
recoveries net of professional fees, net of tax
|
(2,615)
|
|
|
—
|
|
|
(2,615)
|
|
|
—
|
|
|
|
Less: Unrealized
(gains) losses on commodity swaps, net of tax
|
772
|
|
|
(8,973)
|
|
|
(5,608)
|
|
|
(2,781)
|
|
|
|
Less: (Gain) loss on
disposition of assets, net of tax
|
(946)
|
|
|
290
|
|
|
(1,352)
|
|
|
(202)
|
|
|
|
Adjusted net income
(loss) available to stockholders
|
$
|
(14,635)
|
|
|
$
|
(219)
|
|
|
$
|
95,459
|
|
|
$
|
38,100
|
|
|
|
Adjusted earnings
(loss) per share *
|
$
|
(0.21)
|
|
|
$
|
—
|
|
|
$
|
1.37
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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, 2015 and
2014:
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(dollars in
thousands)
|
|
|
Net income (loss)
available to stockholders
|
$
|
(52,534)
|
|
|
$
|
6,707
|
|
|
$
|
52,751
|
|
|
$
|
38,457
|
|
|
|
Net income
attributable to non-controlling interest
|
628
|
|
|
7,749
|
|
|
29,636
|
|
|
31,411
|
|
|
|
Income tax expense
(benefit)
|
(4,860)
|
|
|
8,459
|
|
|
48,282
|
|
|
22,913
|
|
|
|
Interest
expense
|
19,876
|
|
|
25,670
|
|
|
79,826
|
|
|
111,143
|
|
|
|
Depreciation and
amortization
|
32,232
|
|
|
32,562
|
|
|
126,494
|
|
|
124,063
|
|
|
|
(Gain) loss on
disposition of assets
|
(1,319)
|
|
|
471
|
|
|
(1,914)
|
|
|
(274)
|
|
|
|
Loss on impairment of
goodwill
|
39,028
|
|
|
—
|
|
|
39,028
|
|
|
—
|
|
|
|
Unrealized (gains)
losses on commodity swaps
|
1,077
|
|
|
(14,552)
|
|
|
(7,937)
|
|
|
(3,778)
|
|
|
|
Adjusted
EBITDA
|
$
|
34,128
|
|
|
$
|
67,066
|
|
|
$
|
366,166
|
|
|
$
|
323,935
|
|
|
|
|
Adjusted EBITDA does
not exclude a loss of $1,662 and $8,118 for the three months and
year ended December 31, 2015, respectively, resulting from a price
adjustment related to asphalt inventory.
|
|
|
|
(7)
|
Includes corporate
capital expenditures of $996 and $649 for the three months ended
December 31, 2015 and 2014, respectively, and $5,388 and
$2,756 for the years ended December 31, 2015 and 2014,
respectively, which are not allocated to our three operating
segments.
|
|
|
|
(8)
|
During the year ended
December 31, 2015, we adopted the FASB's recently issued accounting
guidance simplifying the presentation of debt issuance costs. As a
result of adopting this guidance, debt issuance costs that had
previously been included as deferred charges in our consolidated
balance sheets have been reclassified as a direct deduction from
the carrying value of the associated debt. These changes have been
applied retrospectively to all periods presented.
|
|
|
|
(9)
|
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.
|
|
|
|
(10)
|
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 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.
|
|
|
|
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. For the year ended December 31,
2015, $3,941 primarily related to inventory adjustments was not
included in cost of sales for the Big Spring refinery and the Krotz
Springs refinery.
|
|
|
|
The refinery
operating margin for the three months and year ended December 31,
2014 excludes realized and unrealized gains on commodity swaps of
$14,552 and $4,660, respectively.
|
|
|
|
(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 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.
|
|
|
|
(14)
|
Total refinery
throughput represents the total barrels per day of crude oil and
blendstock inputs in the refinery production process.
|
|
|
|
(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.
|
|
|
|
(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 $0 and $37,409 for the three months ended
December 31, 2015 and 2014, respectively, and $24,988 and $136,818
for the years ended December 31, 2015 and 2014, 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 for
the three months and year ended December 31, 2015 excludes a loss
of $1,662 and $8,118, respectively, resulting from a price
adjustment related to asphalt inventory. This loss is included in
the operating income (loss) of the asphalt segment.
|
|
|
|
(22)
|
At December 31,
2015, we had 309 retail convenience stores of which 298 sold fuel.
At December 31, 2014, we had 295 retail convenience stores of
which 283 sold fuel.
|
|
|
|
The 14 stores
acquired in mid-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 Hudson, Investor Relations
Manager
|
|
Alon USA Energy,
Inc.
|
|
972-367-3808
|
|
|
|
Investors: Jack Lascar/Stephanie
Zhadkevich
|
|
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-2015-results-300225833.html
SOURCE Alon USA Energy,
Inc.