Alon USA Energy, Inc.

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Alon USA Reports First Quarter Results

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Declares Quarterly Cash Dividend

Company schedules conference call for May 7, 2010 at 10:00 A.M. Eastern

DALLAS, May 6 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the first quarter of 2010. Net loss for the first quarter of 2010 was ($52.9) million, or ($0.98) per share, compared to net income of $17.4 million, or $0.37 per share, for the same period last year. Excluding special items, Alon recorded net loss of ($49.1) million, or ($0.91) per share, for the first quarter of 2010, compared to net income of $19.3 million, or $0.41 per share, for the same period last year.

Jeff Morris, Alon's CEO, commented, "In March 2010, Alon Refining Krotz Springs prepaid its revolving credit facility from a new $65 million bridge credit facility that is scheduled to terminate on June 15, 2010.  In April 2010, Alon Refining Krotz Springs signed a multi-year agreement with a major financial institution that will allow us to retire the obligations under this bridge credit facility and support the operation of the Krotz Springs refinery at 75,000 barrels per day.  The structure of this new agreement is also expected to result in lower borrowing costs.  The Krotz Springs refinery has been shut down since November 2009 for turnaround and capital projects work and is expected to be back in full operation in the second half of May 2010.  We appreciate the trust and confidence we received from these financial institutions in entering into these arrangements with us.  

"Also in March 2010, a U.S. bankruptcy court approved our purchase of the Bakersfield refinery from Big West of California, LLC, a subsidiary of Flying J, Inc.  We are continuing our work to finalize this transaction.  As I have noted before, we believe the Bakersfield refinery provides an alternative solution to convert our current vacuum gas oil production at our California refineries into gasoline and distillate products."  

Special items for the first quarter of 2010 include an after-tax loss of ($3.9) million for the write-off of debt issuance costs associated with our prepayment of the Alon Refining Krotz Springs revolving credit facility.  Special items for the first quarter of 2009 included accumulated dividends of $2.0 million on the preferred shares of Alon Refining Louisiana prior to their conversion to common stock of Alon at December 31, 2009.

Refinery operating margin at the Big Spring refinery was $4.91 per barrel for the first quarter of 2010 compared to $13.63 per barrel for the same period in 2009.  This decrease was primarily due to lower Gulf Coast 3/2/1 crack spreads.  Refinery operating margin at the California refineries was ($0.42) per barrel for the first quarter of 2010 compared to $1.21 per barrel for the same period in 2009.  This decrease primarily resulted from lower West Coast 3/2/1 crack spreads.

The Big Spring refinery and California refineries combined throughput for the first quarter of 2010 averaged 61,047 barrels per day ("bpd"), consisting of 42,784 bpd at the Big Spring refinery and 18,263 bpd at the California refineries compared to a combined average of 93,178 bpd in the first quarter of 2009, consisting of 64,417 bpd at the Big Spring refinery and 28,761 bpd at the California refineries.  The Big Spring refinery throughput was lower due to reformer regeneration work performed during the first quarter of 2010.  The California refineries' throughput was lower due to efforts to optimize asphalt production with demand.  There was no throughput at the Krotz Springs refinery in the first quarter of 2010 due to turnaround and capital projects work. Throughput at the Krotz Springs refinery for the first quarter of 2009 was 53,712 bpd.

Gulf Coast 3/2/1 average crack spreads were $7.09 per barrel for the first quarter of 2010 compared to $9.65 per barrel for the first quarter of 2009. Gulf Coast 2/1/1 high sulfur diesel average crack spreads were $6.25 per barrel for the first quarter of 2010 compared to $9.48 per barrel for the first quarter of 2009.  West Coast 3/2/1 average crack spreads were $10.12 per barrel for the first quarter of 2010 compared to $17.92 per barrel for the first quarter of 2009.

Asphalt margins for the first quarter of 2010 increased to an average of ($28.50) per ton compared to ($51.48) per ton for the first quarter of 2009. On a cash basis, asphalt margins in the first quarter of 2010 were $14.44 per ton compared to $108.61 per ton in the first quarter of 2009. Adjusted EBITDA for the asphalt segment in the first quarter of 2010 was ($10.0) million, after excluding negative inventory effects of ($6.5) million, compared to adjusted EBITDA in the first quarter of 2009 of $8.3 million, after excluding negative inventory effects of ($29.5) million.  The average blended asphalt sales price increased 47.5% from $314.16 per ton in the first quarter of 2009 to $463.53 per ton in the first quarter of 2010 and the average non-blended asphalt sales price increased 169.8% from $123.73 per ton in the first quarter of 2009 to $333.82 per ton in the first quarter of 2010. The blended asphalt sales accounted for 89.1% of total asphalt sales in the first quarter of 2010.

In our retail and branded marketing segment, retail fuel sales gallons increased by 15.6% from 28.3 million gallons in the first quarter of 2009 to 32.7 million gallons in the first quarter of 2010.  Our branded fuel sales increased by 5.5% from 66.8 million gallons in the first quarter of 2009 to 70.5 million gallons in the first quarter of 2010.

Alon also announced today that its Board of Directors has approved the regular quarterly cash dividend of $0.04 per share.  The dividend is payable on June 15, 2010, to stockholders of record at the close of business on May 28, 2010.

The Company has scheduled a conference call for Friday, May 7, 2010, at 10:00 a.m. Eastern, to discuss the first quarter 2010 results. To access the call, please dial 877-941-2332, or 480-629-9722, 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 on the Alon corporate website, http://www.alonusa.com, by logging onto that site and clicking "Investors". A telephonic replay of the conference call will be available through May 21, 2010, and may be accessed by calling 800-406-7325, or 303-590-3030, for international callers, and using the passcode 4280015#. A web cast archive will also be available at http://www.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at DRG&E at 713-529-6600 or email dmw@drg-e.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. The Company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is a leading producer of asphalt, which it markets through its asphalt terminals predominately in the Western United States. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico.  Alon markets motor fuel products under the FINA brand at these locations and at approximately 625 distributor-serviced locations.

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.


Contacts: Claire A. Hart, Senior Vice President

          Alon USA Energy, Inc.

          972-367-3649



          Investors: Jack Lascar/Sheila Stuewe

          DRG&E / 713-529-6600

          Media: Blake Lewis

          Lewis Public Relations

          214-635-3020

          Ruth Sheetrit

          SMG Public Relations

          011-972-547-555551






-Tables to follow-






ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE








RESULTS OF OPERATIONS – FINANCIAL DATA
(ALL INFORMATION IN THIS PRESS RELEASE, EXCEPT FOR
BALANCE SHEET DATA AS OF DECEMBER 31, 2009, IS      For the Three Months Ended
UNAUDITED)                                          March 31,

                                                    2010       2009

                                                    (dollars in thousands,
                                                    except per share data)

STATEMENT OF OPERATIONS DATA:

Net sales (1)                                       $ 579,313  $ 722,180

Operating costs and expenses:

Cost of sales                                       538,715    539,730

Direct operating expenses                           61,444     68,864

Selling, general and administrative expenses (2)    31,807     31,915

Depreciation and amortization (3)                   26,322     22,090

Total operating costs and expenses                  658,288    662,599

Operating income (loss)                             (78,975)   59,581

Interest expense (4)                                (26,585)   (28,256)

Equity losses of investees                          (103)      (3)

Other income, net (5)                               14,204     257

Income (loss) before income tax expense (benefit),
non-controlling interest in income (loss) of
subsidiaries and accumulated dividends on preferred
stock of subsidiary                                 (91,459)   31,579

Income tax expense (benefit)                        (34,713)   10,995

Income (loss) before non-controlling interest in
income (loss) of subsidiaries and accumulated
dividends on preferred stock of subsidiary          (56,746)   20,584

Non-controlling interest in income (loss) of
subsidiaries                                        (3,804)    1,083

Accumulated dividends on preferred stock of
subsidiary                                          —        2,150

Net income (loss) available to common stockholders  $ (52,942) $ 17,351

Earnings (loss) per share, basic and diluted        $ (0.98)   $ 0.37

Weighted average shares outstanding, basic (in
thousands)                                          54,161     46,806



Cash dividends per share                            $ 0.04     $ 0.04



CASH FLOW DATA:

Net cash provided by (used in):

Operating activities                                $ (40,979) $ 119,527

Investing activities                                (6,331)    (15,009)

Financing activities                                14,433     (104,679)

OTHER DATA:

Adjusted net income (loss) available to common
stockholders (6)                                    $ (49,068) $ 19,347

Earnings (loss) per share, excluding write-off of
unamortized debt issuance costs, net of tax, and
accumulated dividends on preferred stock of
subsidiary (6)                                      $ (0.91)   $ 0.41

Adjusted EBITDA (7)                                 (38,552)   81,925

Capital expenditures (8)                            7,303      10,357

Capital expenditures to rebuild the Big Spring
refinery                                            —        32,135

Capital expenditures for turnaround and chemical
catalyst                                            10,009     7,363










                                              December 31,
                                    March 31,
                                    2010      2009

BALANCE SHEET DATA (end of period):

Cash and cash equivalents           $ 7,560   $ 40,437

Working capital                     29,198    84,257

Total assets                        2,083,646 2,132,789

Total debt                          954,616   937,024

Total equity                        377,055   431,918










REFINING AND UNBRANDED MARKETING  For the Three Months Ended
SEGMENT                           March 31,

                                  2010       2009

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

STATEMENTS OF OPERATIONS DATA:

Net sales (9)                     $ 483,040  $ 633,297

Operating costs and expenses:

Cost of sales                     463,864    469,363

Direct operating expenses         50,352     58,371

Selling, general and
administrative expenses           6,388      7,327

Depreciation and amortization     20,954     16,877

Total operating costs and
expenses                          541,558    551,938

Operating income (loss)           $ (58,518) $ 81,359



KEY OPERATING STATISTICS:

Total unbranded sales volume
(bpd)                             36,280     122,459

Per barrel of throughput:

Refinery operating margin – Big
Spring (10)                       $ 4.91     $ 13.63

Refinery operating margin – CA
Refineries (10)                   (0.42)     1.21

Refinery operating margin –
Krotz Springs (10)                N/A        13.19

Refinery direct operating
expenses – Big Spring (11)      6.57       3.60

Refinery direct operating
expenses – CA Refineries (11)   8.82       5.84

Refinery direct operating
expenses – Krotz Springs (11)   N/A        4.63

Capital expenditures              $ 6,312    $ 9,398

Capital expenditures to rebuild
Big Spring refinery               —        32,135

Capital expenditures for
turnaround and chemical catalyst  10,009     7,363



PRICING STATISTICS:

WTI crude oil (per barrel)        $ 78.75    $ 43.10

WTS crude oil (per barrel)        76.87      42.16

MAYA crude oil (per barrel)       69.84      38.58

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

Gulf Coast (12)                   $ 7.09     $ 9.65

Group III (12)                    6.75       9.72

West Coast (12)                   10.12      17.92

Crack spreads (6/1/2/3) (per
barrel):

West Coast (12)                   $ 1.45     $ 6.21

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

Gulf Coast high sulfur diesel
(12)                              $ 6.25     $ 9.48

Crude oil differentials (per
barrel):

WTI less WTS (13)                 $ 1.88     $ 0.94

WTI less MAYA (13)                8.91       4.52

Product price (dollars per
gallon):

Gulf Coast unleaded gasoline      $ 2.040    $ 1.218

Gulf Coast ultra low-sulfur
diesel                            2.052      1.331

Gulf Coast high sulfur diesel     2.008      1.285

Group III unleaded gasoline       2.036      1.232

Group III ultra low-sulfur diesel 2.035      1.309

West Coast LA CARBOB (unleaded
gasoline)                         2.136      1.505

West Coast LA ultra low-sulfur
diesel                            2.076      1.349

Natural gas (per MMBTU)           $ 4.99     $ 4.47










THROUGHPUT AND YIELD DATA:     For the Three Months Ended
BIG SPRING                     March 31,

                               2010         2009

                               bpd    %     bpd    %

Refinery throughput:

Sour crude                     35,978 84.1  55,452 86.1

Sweet crude                    5,258  12.3  7,864  12.2

Blendstocks                    1,548  3.6   1,101  1.7

Total refinery throughput (14) 42,784 100.0 64,417 100.0

Refinery production:

Gasoline                       20,618 48.9  28,265 44.9

Diesel/jet                     13,743 32.6  21,737 34.5

Asphalt                        2,359  5.6   5,228  8.3

Petrochemicals                 2,021  4.8   3,026  4.8

Other                          3,396  8.1   4,672  7.5

Total refinery production (15) 42,137 100.0 62,928 100.0

Refinery utilization (16)             64.8%        90.5%










THROUGHPUT AND YIELD DATA:     For the Three Months Ended
CALIFORNIA REFINERIES          March 31,

                               2010         2009

                               bpd    %     bpd    %

Refinery throughput:

Sour crude                     4,106  22.5  12,225 42.5

Heavy crude                    13,740 75.2  16,498 57.4

Blendstocks                    417    2.3   38     0.1

Total refinery throughput (14) 18,263 100.0 28,761 100.0

Refinery production:

Gasoline                       2,469  14.0  3,266  11.5

Diesel/jet                     3,370  19.1  6,215  22.0

Asphalt                        6,163  34.9  8,735  30.9

Light unfinished               —    —   1,909  6.7

Heavy unfinished               5,259  29.8  7,796  27.6

Other                          393    2.2   370    1.3

Total refinery production (15) 17,654 100.0 28,291 100.0

Refinery utilization (16)             24.6%        58.5%










THROUGHPUT AND YIELD DATA:     For the Three Months Ended
KROTZ SPRINGS                  March 31,

                               2010    2009

                               bpd %   bpd    %

Refinery throughput:

Light sweet crude              — — 27,423 51.1

Heavy sweet crude              — — 20,083 37.4

Blendstocks                    — — 6,206  11.5

Total refinery throughput (14) — — 53,712 100.0

Refinery production:

Gasoline                       — — 24,449 44.7

Diesel/jet                     — — 24,468 44.7

Heavy oils                     — — 887    1.6

Other                          — — 4,885  9.0

Total refinery production (15) — — 54,689 100.0

Refinery utilization (16)          N/A        57.2%










                                                     For the Three Months Ended
ASPHALT SEGMENT                                      March 31,

                                                     2010       2009

                                                     (dollars in thousands,
                                                     except per ton data)

STATEMENTS OF OPERATIONS DATA:

Net sales                                            $ 67,141   $ 50,760

Operating costs and expenses:

Cost of sales (17)                                   71,445     60,233

Direct operating expenses                            11,092     10,493

Selling, general and administrative expenses         1,066      1,154

Depreciation and amortization                        1,717      1,698

Total operating costs and expenses                   85,320     73,578

Operating loss                                       $ (18,179) $ (22,818)



KEY OPERATING STATISTICS:

Blended asphalt sales volume (tons in thousands)
(18)                                                 129        147

Non-blended asphalt sales volume (tons in thousands)
(19)                                                 22         37

Blended asphalt sales price per ton (18)             $ 463.53   $ 314.16

Non-blended asphalt sales price per ton (19)         $ 333.82   $ 123.73

Asphalt margin per ton (20)                          $ (28.50)  $ (51.48)

Capital expenditures                                 $ 179      $ 162










                                                     For the Three Months Ended
RETAIL AND BRANDED MARKETING SEGMENT                 March 31,

                                                     2010      2009

                                                     (dollars in thousands,
                                                     except per gallon data)

STATEMENTS OF OPERATIONS DATA:

Net sales (1)                                        $ 226,028 $ 167,470

Operating costs and expenses:

Cost of sales (17)                                   200,302   139,481

Selling, general and administrative expenses         24,165    23,244

Depreciation and amortization                        3,420     3,368

Total operating costs and expenses                   227,887   166,093

Operating income (loss)                              $ (1,859) $ 1,377



KEY OPERATING STATISTICS:

Branded fuel sales (thousands of gallons) (21)       70,469    66,792

Branded fuel margin (cents per gallon) (21)          4.2       5.6



Number of stores (end of period)                     308       306

Retail fuel sales (thousands of gallons)             32,714    28,283

Retail fuel sales (thousands of gallons per site per
month)                                               35        31

Retail fuel margin (cents per gallon) (22)           9.0       14.2

Retail fuel sales price (dollars per gallon) (23)    $ 2.63    $ 1.87

Merchandise sales                                    $ 63,482  $ 63,053

Merchandise sales (per site per month)               69        69

Merchandise margin (24)                              30.0%     31.7%

Capital expenditures                                 $ 397     $ 219








(1) Includes excise taxes on sales by the retail and branded marketing segment
of $12,786 and $11,044 for the three months ended March 31, 2010 and 2009,
respectively. Net sales also include royalty and related net credit card fees
of $773 and $266 for the three months ended March 31, 2010 and 2009,
respectively.



(2) Includes corporate headquarters selling, general and administrative
expenses of $188 and $190 for the three months ended March 31, 2010 and 2009,
respectively, which are not allocated to our three operating segments.



(3) Includes corporate depreciation and amortization of $231 and $147 for the
three months ended March 31, 2010 and 2009, respectively, which are not
allocated to our three operating segments.



(4) Interest expense of $26,585 for the three months ended March 31, 2010,
includes a charge of $6,659 for the write-off of debt issuance costs associated
with our prepayment of the Alon Refining Krotz Springs, Inc. revolving credit
facility. Interest expense of $28,256 for the three months ended March 31, 2009
includes $5,715 related to the unwind of the heating oil crack spread hedge at
the Krotz Springs refinery.



(5) In the first quarter of 2010, Alon sold approximately two thirds of its
investment in Holly Energy Partners for $22,760, resulting in a gain of $8,047.
Subsequently, Alon marked-to-market its remaining investment, resulting in an
unrealized gain of $6,291.



(6) The following table provides a reconciliation of net income (loss)
available to common stockholders under United States generally accepted
accounting principles ("GAAP") to adjusted net income (loss) available to
common stockholders utilized in determining earnings (loss) per common share,
excluding after-tax loss on write-off of unamortized debt issuance costs and
accumulated dividends on preferred stock of subsidiary. Our management believes
that the presentation of adjusted net income (loss) available to common
stockholders and earnings (loss) per common share, excluding these items, is
useful to investors because it provides a more meaningful measurement for
evaluation of our Company's operating results.








                                                    For the Three Months Ended
                                                    March 31,

                                                    2010       2009

                                                    (dollars in thousands,

                                                    except per share data)

Net income (loss) available to common stockholders  $ (52,942) $ 17,351

Plus: Write-off of unamortized debt issuance costs,
net of tax                                          3,874      —

Plus: Accumulated dividends on preferred stock of
subsidiary                                          —        1,996

Adjusted net income (loss) available to common
stockholders                                        $ (49,068) $ 19,347



Weighted average shares outstanding (in thousands)  54,161     46,806

Earnings (loss) per share, excluding write-off of
unamortized debt issuance costs, net of tax, and
accumulated dividends on preferred stock of
subsidiary                                          $ (0.91)   $ 0.41








(7) Adjusted EBITDA represents earnings before non-controlling interest in
income of subsidiaries, income tax expense, interest expense, depreciation and
amortization and gain on disposition of assets. 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 non-controlling interest in income of subsidiaries, income tax
expense, interest expense, gain on disposition of assets 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 has 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 common stockholders to Adjusted EBITDA for the three months ended March 31, 2010 and 2009, respectively:




                                                   For the Three Months Ended
                                                   March 31,

                                                   2010       2009

                                                   (dollars in thousands)

Net income (loss) available to common stockholders $ (52,942) $ 17,351

Non-controlling interest in income (loss) of
subsidiaries (including accumulated dividends on
preferred stock of subsidiary)                     (3,804)    3,233

Income tax expense (benefit)                       (34,713)   10,995

Interest expense                                   26,585     28,256

Depreciation and amortization                      26,322     22,090

Adjusted EBITDA                                    $ (38,552) $ 81,925








(8) Includes corporate capital expenditures of $415 and $578 for the three
months ended March 31, 2010 and 2009, respectively, which are not allocated to
our three operating segments.



(9) Net sales include intersegment sales to our asphalt and retail and branded
marketing segments at prices which approximate wholesale market price. 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
substantial unrealized hedge positions) 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. There were unrealized hedging gains of
$18,026 for the Krotz Springs refinery for the three months ended March 31,
2009.



(11) Refinery direct operating expense is a per barrel measurement calculated
by dividing direct operating expenses at our Big Spring, California, and Krotz
Springs refineries, exclusive of depreciation and amortization, by the
applicable refinery's total throughput volumes.



(12) A 3/2/1 crack spread in a given region is calculated assuming that three
barrels of a benchmark crude oil are converted, or cracked, into two barrels of
gasoline and one barrel of diesel. We calculate the Gulf Coast 3/2/1 crack
spread using the market values of Gulf Coast conventional gasoline and ultra
low-sulfur diesel and the market value of West Texas Intermediate, or WTI, a
light sweet crude oil. We calculate the Group III 3/2/1 crack spread using the
market values of Group III conventional gasoline and ultra low-sulfur diesel
and the market value of WTI crude oil. We calculate the West Coast 3/2/1 crack
spread using the market values of West Coast LA CARBOB pipeline gasoline and LA
ultra low-sulfur pipeline diesel and the market value of WTI crude oil. A
6/1/2/3 crack spread is calculated assuming that six barrels of a benchmark
crude oil are converted, or cracked, into one barrel of gasoline, two barrels
of diesel and three barrels of fuel oil. We calculate the West Coast 6/1/2/3
crack spread using the market values of West Coast LA CARBOB pipeline gasoline,
LA ultra low-sulfur pipeline diesel, LA 380 pipeline CST (fuel oil) and the
market value of WTI crude oil. A 2/1/1 crack spread in a given region is
calculated assuming that two barrels of a benchmark crude oil are converted, or
cracked, into one barrel of gasoline and one barrel of diesel. We calculate the
Gulf Coast 2/1/1 crack spread using the market values of Gulf Coast
conventional gasoline and high sulfur diesel and the market value of WTI crude
oil.



(13) The WTI/WTS, or sweet/sour, spread represents the differential between the
average value per barrel of WTI crude oil and the average value per barrel of
WTS crude oil. The WTI/Maya, or light/heavy, spread represents the differential
between the average value per barrel of WTI crude oil and the average value per
barrel of Maya 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 refinery.



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



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



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



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



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



(21) Marketing sales volume represents branded fuel sales to our wholesale
marketing customers that are primarily supplied by the Big Spring refinery. The
branded fuels that are not supplied by the Big Spring refinery are obtained
from third-party suppliers. The marketing margin represents the margin between
the net sales and cost of sales attributable to our branded fuel sales volume,
expressed on a cents-per-gallon basis.



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



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



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





SOURCE Alon USA Energy, Inc.