Alon USA Energy, Inc.

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Press Releases

Alon USA Reports First Quarter Results

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Declares Quarterly Cash Dividend

Company schedules conference call for May 6, 2011 at 10:00 a.m. Eastern

DALLAS, May 5, 2011 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the first quarter of 2011.  Net income for the first quarter of 2011 was $13.1 million, or $0.24 per share, compared to net loss of $(52.9) million, or $(0.98) per share, for the same period in the prior year.  Excluding special items, Alon recorded net income of $18.7 million, or $0.34 per share, for the first quarter of 2011, compared to net loss of $(49.1) million, or $(0.91) per share, for the same period last year.

Jeff Morris commented, "We are very pleased with our operations during the first quarter of 2011.  Big Spring refinery throughput in March averaged 65,000 barrels per day and the operating margin for the quarter was $19.50 per barrel.  Krotz Springs refinery throughput in March averaged 72,000 barrels per day and the refinery operating margin for the quarter was $5.06 per barrel.  We continue with our initiatives to significantly reduce our crude costs to the Krotz Springs refinery.  In addition, we have identified small capital expenditure projects that will result in the improvement of the profitability of the Krotz Springs refinery.  As previously discussed, we restarted our California refineries at the end of March and remain on schedule to begin production from the Bakersfield hydrocracker unit in June 2011.

"Our adjusted EBITDA for the first quarter of 2011 improved substantially to $98.5 million by having the Big Spring and Krotz Springs refineries operate near full capacity with the improved refining margin environment for the entire quarter.

"Our retail and branded marketing segment had adjusted EBITDA of $7.5 million in the first quarter of 2011 and over the last twelve months through March 31, 2011, adjusted EBITDA was $38.9 million.

"We are very encouraged by the current refining margin environment and look forward to having our California refining assets operational in full in June 2011."

Special items for the first quarter of 2011 included an after-tax loss of $19.2 million for the loss associated with heating oil crack spread contracts and an after-tax gain of $13.5 million associated with a reduction in system inventories.  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 Krotz Springs revolving credit facility.

The Big Spring refinery operating margin was $19.50 per barrel for the first quarter of 2011 compared to $4.91 per barrel for the same period in 2010.  The increase is due to higher Gulf Coast 3/2/1 crack spreads, improved operating efficiencies at higher throughputs and a widening of the sweet/sour differentials.  The Krotz Springs refinery operating margin was $5.06 per barrel for the first quarter of 2011.  The Krotz Springs refinery was shut down in the first quarter of 2010 for turnaround and capital projects work.

The Big Spring refinery throughput for the first quarter 2011 averaged 62,181 barrels per day ("bpd") compared to 42,784 bpd in the first quarter of 2010. The Krotz Springs refinery throughput for the first quarter of 2011 averaged 73,457 bpd.  As mentioned previously, the Krotz Springs refinery was shut down in the first quarter of 2010 for turnaround and capital projects work.  The California refineries were shut down for most of the first quarter of 2011 to redeploy resources to expedite the integration of the Bakersfield hydrocracker unit to process vacuum gas oil produced at the California refineries.

The average Gulf Coast 3/2/1 crack spread was $18.09 per barrel for the first quarter of 2011 compared to $7.09 per barrel for the first quarter of 2010.  Gulf Coast 2/1/1 high sulfur diesel crack spread averaged $18.38 per barrel for the first quarter of 2011 compared to $6.25 per barrel for the first quarter of 2010.

The average sweet/sour spread for the first quarter of 2011 was $4.10 per barrel compared to $1.88 per barrel for the same period in 2010. The average LLS to WTI spread for the first quarter of 2011 was $13.05 per barrel compared to $1.21 per barrel for the same period in 2010.

Asphalt margins for the first quarter of 2011 were $18.18 per ton compared to $(28.50) per ton for the first quarter of 2010.  On a cash basis, asphalt margins in the first quarter of 2011 were $15.41 per ton compared to $14.44 per ton in the first quarter of 2010.  The blended asphalt sales price increased 9.3% from $463.53 per ton in the first quarter of 2010 to $506.55 per ton in the first quarter of 2011 and the average non-blended asphalt sales price decreased 9.4% from $333.82 per ton in the first quarter of 2010 to $302.57 per ton in the first quarter of 2011.  The price of WTI crude increased 19.5% from $78.75 per barrel in the first quarter of 2010 to $94.13 per barrel in the first quarter of 2011.

In addition, Alon USA is announcing today the following changes in executive management; effective May 3rd Paul Eisman was named CEO of the company in addition to his role as President and Jeff Morris was named as Vice Chairman of the Board of Directors and will continue to serve as an executive of the company.  Jeff Morris said, “I am very pleased this transition is taking place.  It has been my personal priority to transition out of the role of CEO after 10 years.  I appreciate the Board of Directors allowing me to make this transition while also allowing me to continue in a leadership role in the company.  I have known Paul for many years and believe there is no one better to lead our company.  He is a skilled refiner and leader.”  In addition Jeff Morris will be provided the opportunity to be the Chief Technology Officer and the right to invest up to 20% in a Clean Energy Research Company should Alon choose to form such an enterprise.  Jeff Morris added, “I have long been interested in the coming transitions in transportation fuels and am excited to be able to spend more thoughtful time in this area.”

Paul Eisman followed Mr. Morris’ comments with “I am excited and honored to be named the CEO of Alon USA, and thank the Board of Directors, David Wiessman, and Jeff Morris for the confidence that they’ve expressed by providing me this opportunity.  I am particularly pleased that Jeff will continue his involvement as Vice-Chairman of the Board. Since my arrival a year ago I have been continually impressed by the energy, abilities and achievements of our workforce.  We’ve accomplished a lot, but still have many opportunities in front of us.  I am looking forward to working with all of our employees to build upon the good foundation we have in place.”

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, 2011, for stockholders of record on June 1, 2011.

CONFERENCE CALL

The Company has scheduled a conference call for Friday, May 6, 2011, at 10:00 a.m. Eastern, to discuss the first quarter 2011 results. To access the call, please dial 877-941-8609, or 480-629-9819, 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 20, 2011, and may be accessed by calling 800-406-7325, or 303-590-3030, for international callers, and using the passcode 4433502#. 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&L at 713-529-6600 or email dmw@drg-l.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 over 600 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.

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


Contacts: Amir Barash, Vice President-IR

          Alon USA Energy, Inc.

          972-367-3808

          Investors: Jack Lascar/ Sheila Stuewe

          DRG&L / 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,
2010, IS UNAUDITED)                           For the Three Months Ended

                                              March 31,

                                              2011          2010

                                              (dollars in thousands, except per

                                              share data)

STATEMENT OF OPERATIONS DATA:

Net sales (1)                                 $ 1,651,104   $ 579,313

Operating costs and expenses:

Cost of sales                                 1,461,123     538,715

Direct operating expenses                     56,923        61,444

Selling, general and administrative expenses
(2)                                           34,330        31,807

Depreciation and amortization (3)             25,447        26,322

Total operating costs and expenses            1,577,823     658,288

Gain on disposition of assets                 12            —

Operating income (loss)                       73,293        (78,975)

Interest expense (4)                          (20,440)      (26,585)

Equity loss of investees                      (245)         (103)

Other income (loss), net (5)                  (31,913)      14,204

Income (loss) before income tax expense
(benefit) and non-controlling interest in
income (loss) of subsidiaries                 20,695        (91,459)

Income tax expense (benefit)                  7,470         (34,713)

Income (loss) before non-controlling interest
in income (loss) of subsidiaries              13,225        (56,746)

Non-controlling interest in income (loss) of
subsidiaries                                  160           (3,804)

Net income (loss) available to common
stockholders                                  $ 13,065      $ (52,942)

Income (loss) per share, basic                $ 0.24        $ (0.98)

Weighted average shares outstanding, basic
(in thousands)                                54,549        54,161

Income (loss) per share, diluted              $ 0.22        $ (0.98)

Weighted average shares outstanding, diluted
(in thousands)                                60,484        54,161

Cash dividends per share                      $ 0.04        $ 0.04

CASH FLOW DATA:

Net cash provided by (used in):

Operating activities                          $ 24,381      $ (40,979)

Investing activities                          (25,022)      (6,331)

Financing activities                          48,399        14,433

OTHER DATA:

Adjusted net income (loss) available to
common stockholders (6)                       $ 18,746      $ (49,068)

Income (loss) per share, excluding write-off
of unamortized debt issuance costs, net of
tax; loss associated with heating oil crack
spread contracts, net of tax; gain from
reduction in system inventories, net of tax;
and gain on disposition of assets, net of tax
(6)                                           $ 0.34        $ (0.91)

Adjusted EBITDA (7)                           98,489        (38,552)

Capital expenditures (8)                      25,163        7,303

Capital expenditures for turnaround and
chemical catalyst                             185           10,009






                                    March 31,   December 31,

                                    2011        2010

BALANCE SHEET DATA (end of period): (dollars in thousands)

Cash and cash equivalents           $ 119,445   $ 71,687

Working capital                     63,879      990

Total assets                        2,199,796   2,088,521

Total debt                          947,246     916,305

Total equity                        373,968     341,767






REFINING AND UNBRANDED
MARKETING SEGMENT

                              For the Three Months Ended

                              March 31,

                              2011          2010

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

STATEMENTS OF OPERATIONS
DATA:

Net sales (9)                 $ 1,499,024   $ 483,040

Operating costs and expenses:

Cost of sales                 1,345,021     463,864

Direct operating expenses     46,949        50,352

Selling, general and
administrative expenses       7,728         6,388

Depreciation and amortization 20,037        20,954

Total operating costs and
expenses                      1,419,735     541,558

Operating income (loss)       $ 79,289      $ (58,518)

KEY OPERATING STATISTICS:

Per barrel of throughput:

Refinery operating margin –
Big Spring (10)               $ 19.50       $ 4.91

Refinery operating margin –
CA Refineries (10)            N/A           (0.42)

Refinery operating margin –
Krotz Springs (10)            5.06          N/A

Refinery direct operating
expense – Big Spring (11)   4.13          6.57

Refinery direct operating
expense – CA Refineries
(11)                          N/A           8.82

Refinery direct operating
expense – Krotz Springs
(11)                          2.85          N/A

Capital expenditures          23,093        6,312

Capital expenditures for
turnaround and chemical
catalyst                      185           10,009

PRICING STATISTICS:

WTI crude oil (per barrel)    $ 94.13       $ 78.75

WTS crude oil (per barrel)    90.03         76.87

Buena Vista crude oil (per
barrel)                       99.31         77.11

HLS crude oil (per barrel)    106.51        78.82

LLS crude oil (per barrel)    107.18        79.96

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

Gulf Coast (12)               $ 18.09       $ 7.09

West Coast (12)               24.59         10.12

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

Gulf Coast high sulfur diesel
(12)                          $ 18.38       $ 6.25

Crude oil differentials (per
barrel):

WTI less WTS (13)             $ 4.10        $ 1.88

LLS less WTI (13)             13.05         1.21

WTI less Buena Vista (13)     (5.18)        1.64

Product prices (dollars per
gallon):

Gulf Coast unleaded gasoline  $ 2.595       $ 2.040

Gulf Coast ultra-low sulfur
diesel                        2.825         2.052

Gulf Coast high sulfur diesel 2.762         2.008

West Coast LA CARBOB
(unleaded gasoline)           2.786         2.136

West Coast LA ultra-low
sulfur diesel                 2.907         2.076

Natural gas (per MMBTU)       4.20          4.99








THROUGHPUT AND PRODUCTION DATA: For the Three Months Ended

BIG SPRING REFINERY             March 31,

                                2011              2010

                                bpd      %        bpd      %

Refinery throughput:

Sour crude                      52,124   83.8     35,978   84.1

Sweet crude                     8,499    13.7     5,258    12.3

Blendstocks                     1,558    2.5      1,548    3.6

Total refinery throughput (14)  62,181   100.0    42,784   100.0

Refinery production:

Gasoline                        30,373   49.3     20,618   48.9

Diesel/jet                      19,988   32.4     13,743   32.6

Asphalt                         4,340    7.0      2,359    5.6

Petrochemicals                  3,824    6.2      2,021    4.8

Other                           3,165    5.1      3,396    8.1

Total refinery production (15)  61,690   100.0    42,137   100.0

Refinery utilization (16)                86.6  %           64.8  %






THROUGHPUT AND PRODUCTION DATA: For the Three Months Ended

CALIFORNIA REFINERIES           March 31,

                                2011         2010

                                bpd   %      bpd      %

Refinery throughput:

Medium sour crude               —   —    4,106    22.5

Heavy crude                     —   —    13,740   75.2

Blendstocks                     —   —    417      2.3

Total refinery throughput (14)  —   —    18,263   100.0

Refinery production:

Gasoline                        —   —    2,469    14.0

Diesel/jet                      —   —    3,370    19.1

Asphalt                         —   —    6,163    34.9

Light unfinished                —   —    —      —

Heavy unfinished                —   —    5,259    29.8

Other                           —   —    393      2.2

Total refinery production (15)  —   —    17,654   100.0

Refinery utilization (16)             — %           24.6  %






THROUGHPUT AND PRODUCTION DATA: For the Three Months Ended

KROTZ SPRINGS REFINERY          March 31,

                                2011              2010

                                bpd      %        bpd   %

Refinery throughput:

Light sweet crude               52,930   72.0     —   —

Heavy sweet crude               19,224   26.2     —   —

Blendstocks                     1,303    1.8      —   —

Total refinery throughput (14)  73,457   100.0    —   —

Refinery production:

Gasoline                        31,175   42.4     —   —

Diesel/jet                      34,542   46.9     —   —

Heavy Oils                      1,659    2.3      —   —

Other                           6,146    8.4      —   —

Total refinery production (15)  73,522   100.0    —   —

Refinery utilization (16)                86.8  %        — %






ASPHALT SEGMENT

                                    For the Three Months Ended

                                    March 31,

                                    2011        2010

                                    (dollars in thousands, except per ton data)

STATEMENTS OF OPERATIONS DATA:

Net sales                           $ 86,243    $ 67,141

Operating costs and expenses:

Cost of sales (17)                  82,752      71,445

Direct operating expenses           9,974       11,092

Selling, general and administrative
expenses                            1,415       1,066

Depreciation and amortization       1,730       1,717

Total operating costs and expenses  95,871      85,320

Operating loss                      $ (9,628)   $ (18,179)

KEY OPERATING STATISTICS:

Blended asphalt sales volume (tons
in thousands) (18)                  138         129

Non-blended asphalt sales volume
(tons in thousands) (19)            54          22

Blended asphalt sales price per ton
(18)                                $ 506.55    $ 463.53

Non-blended asphalt sales price per
ton (19)                            302.57      333.82

Asphalt margin per ton (20)         18.18       (28.50)

Capital expenditures                $ 660       $ 179






RETAIL AND BRANDED MARKETING
SEGMENT

                                 For the Three Months Ended

                                 March 31,

                                 2011         2010

                                 (dollars in thousands, except per gallon data)

STATEMENTS OF OPERATIONS DATA:

Net sales (1)                    $ 316,184    $ 226,028

Operating costs and expenses:

Cost of sales (17)               283,697      200,302

Selling, general and
administrative expenses          24,999       24,165

Depreciation and amortization    3,277        3,420

Total operating costs and
expenses                         311,973      227,887

Gain on disposition of assets    12           —

Operating income (loss)          $ 4,223      $ (1,859)

KEY OPERATING STATISTICS:

Branded fuel sales (thousands of
gallons) (21)                    85,570       70,469

Branded fuel margin (cents per
gallon) (21)                     3.7          4.2

Number of stores (end of period) 304          308

Retail fuel sales (thousands of
gallons)                         36,655       32,714

Retail fuel sales (thousands of
gallons per site per month)      40           35

Retail fuel margin (cents per
gallon) (22)                     14.6         9.0

Retail fuel sales price (dollars
per gallon) (23)                 $ 3.19       $ 2.63

Merchandise sales                $ 68,001     $ 63,482

Merchandise sales (per site per
month)                           $ 75         $ 69

Merchandise margin (24)          33.1      %  30.0      %

Capital expenditures             $ 1,345      $ 397










(1) Includes excise taxes on sales by the retail and branded marketing
segment of $14,218 and $12,786 for the three months ended March 31, 2011 and
2010, respectively. Includes net royalty and related net credit card fees of
$1,419 and $773 for the three months ended March 31, 2011 and 2010,
respectively.



(2) Includes corporate headquarters selling, general and administrative
expenses of $188 and $188 for the three months ended March 31, 2011 and 2010,
respectively, which are not allocated to our three operating segments.



(3) Includes corporate depreciation and amortization of $403 and $231 for the
three months ended March 31, 2011 and 2010, 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.



(5) Other income (loss) for the three months ended March 31, 2011 is
substantially the loss on heating oil crack spread contracts. 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 income (loss) per common share,
excluding the after-tax loss on write-off of unamortized debt issuance costs,
after-tax loss on heating oil crack spread contracts, after-tax gain from
reduction in system inventories and after-tax gain on disposition of assets.
Our management believes that the presentation of adjusted net income (loss)
available to common stockholders and income (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,

                                                     2011       2010

                                                     (dollars in thousands)

Net income (loss) available to common stockholders   $ 13,065   $ (52,942)

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

Plus: Loss on heating oil crack spread contracts,
net of tax                                           19,196     —

Less: Gain from reduction in system inventories, net
of tax                                               (13,508)   —

Less: Gain on disposition of assets, net of tax      (7)        —

Adjusted net income (loss) available to common
stockholders                                         $ 18,746   $ (49,068)

Income (loss) per share, excluding write-off of
unamortized debt issuance costs, net of tax; loss
associated with heating oil crack spread contracts,
net of tax; gain from reduction in system
inventories, net of tax; and gain on disposition of
assets, net of tax                                   $ 0.34     $ (0.91)








(7) Adjusted EBITDA represents earnings before non-controlling interest in
income of subsidiaries, income tax expense, interest expense, depreciation and
amortization, gain on disposition of assets and loss on heating oil crack
spread contracts. 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 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 common
stockholders to Adjusted EBITDA for the three months ended March 31, 2011 and
2010, respectively:








                                                   For the Three Months Ended

                                                   March 31,

                                                   2011       2010

                                                   (dollars in thousands)

Net income (loss) available to common stockholders $ 13,065   $ (52,942)

Non-controlling interest in income (loss) of
subsidiaries                                       160        (3,804)

Income tax expense (benefit)                       7,470      (34,713)

Interest expense                                   20,440     26,585

Depreciation and amortization                      25,447     26,322

Gain on disposition of assets                      (12)       —

Loss on heating oil crack spread contracts         31,919     —

Adjusted EBITDA                                    $ 98,489   $ (38,552)








Adjusted EBITDA for our retail and branded marketing segment 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 but is
also subject to many of the limitations discussed above; therefore, Adjusted
EBITDA for our retail and branded marketing segment 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 operating income (loss) to Adjusted EBITDA for our retail and
branded marketing segment for the three months ended March 31, 2011 and 2010,
respectively:








RETAIL AND BRANDED MARKETING
SEGMENT                       For the Year Ended  For the Three Months Ended

                              December 31,        March 31,

                              2010                2011      2010

                              (dollars in thousands)

Operating income (loss)       $ 19,801            $ 4,223   $ (1,859)

Depreciation and amortization 13,440              3,277     3,420

Gain on disposition of assets (286)               (12)      —

Adjusted EBITDA               $ 32,955            $ 7,488   $ 1,561








Adjusted EBITDA for our retail and branded marketing segment for the 12 months
ended March 31, 2011 of $38,882 is equal to adjusted EBITDA for the year ended
December 31, 2010, of $32,955, plus adjusted EBITDA for the three months ended
March 31, 2011 of $7,488, less adjusted EBITDA for the three months ended March
31, 2010 of $1,561.



(8) Includes corporate capital expenditures of $65 and $415 for the three
months ended March 31, 2011 and 2010, 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 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
substantial unrealized hedge positions and inventory adjustments related to
acquisitions) 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.



(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. Direct operating expenses
related to the Bakersfield refinery of $1,512 have been excluded from the per
barrel measurement calculation for the three months ended March 31, 2011.



(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 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 2/1/1 crack spread is calculated assuming that two barrels of a benchmark
crude oil are converted into one barrel of gasoline and one barrel of diesel.
We calculate the Gulf Coast high sulfur diesel 2/1/1 crack spread using the
market values of Gulf Coast conventional gasoline and Gulf Coast 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 less Buena Vista spread represents the differential
between the average value per barrel of WTI crude and the average value per
barrel Buena Vista crude oil. The Light Louisiana Sweet ("LLS") less WTI spread
represents the differential between the average value per barrel of LLS crude
oil and the average value per barrel of WTI.



(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) 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) Branded fuel sales represent 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 branded fuel sales 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 industry to measure in-store, or non-fuel, operating results.





SOURCE Alon USA Energy, Inc.