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.