Alon USA Energy, Inc.

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Alon USA Reports First Quarter Earnings; Declares Quarterly Cash Dividend

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Company schedules conference call for May 10, 2007 at 10:00 A.M. Eastern

DALLAS, May 9 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the quarter ended March 31, 2007. Excluding special items, Alon recorded record net income of $35.0 million, or $0.75 per share, for the first quarter of 2007, compared to $24.1 million, or $0.52 per share, for the same period last year. Including special items, net income for the first quarter of 2007 was $35.6 million, or $0.76 per share, compared to $54.2 million, or $1.16 per share, for the same period last year.

Special items for the first quarter of 2007 included $0.6 million of after-tax gain recognized on disposition of assets in connection with the contribution of certain pipeline and terminal assets to Holly Energy Partners, LP in the first quarter of 2005. Special items for the first quarter of 2006 included $34.3 million of after-tax gain recognized on disposition of assets primarily relating to the sale of Alon's Amdel and White Oil crude oil pipelines in March 2006 and $4.2 million of after-tax interest expense resulting from the prepayment of Alon's $100.0 million term loan facility in January 2006.

The increase in net income (excluding special items) for the first quarter of 2007 over the first quarter of 2006 is evidenced by the increase in Adjusted EBITDA. Adjusted EBITDA for the first quarter of 2007 was $84.3 million compared to $48.7 million in the first quarter of 2006, an increase of $35.6 million. The California refineries and the asphalt assets acquired in the third quarter of 2006 contributed $22.4 million and $6.2 million of the Adjusted EBITDA increase, respectively. The Big Spring refinery contributed $7.0 million to the increase in Adjusted EBITDA. A reconciliation of net income to Adjusted EBITDA is provided in footnote 6 of this release.

The combined refineries throughput for the first quarter of 2007 averaged 124,615 barrels per day ("bpd"), consisting of an average of 65,451 bpd at the Big Spring refinery and an average of 59,164 bpd at the California refineries compared to an average of 70,529 bpd at the Big Spring refinery in the first quarter of 2006. The lower refinery throughput at the Big Spring refinery was due to a scheduled turnaround that was successfully completed in January 2007. Throughput at the California refineries reflects the effects of a regulatory required turnaround in one of the four crude units in March 2007, which was successfully completed during the second week of April 2007.

Gulf Coast 3-2-1 crack spreads increased to an average of $12.75 per barrel for the first quarter of 2007 compared to an average of $9.70 per barrel for the first quarter of 2006. West Coast 3-2-1 crack spreads increased to an average of $32.49 per barrel for the first quarter of 2007 compared to an average of $19.35 per barrel for the first quarter of 2006. The WTI/WTS crude oil differentials for the first quarter of 2007 decreased to an average of $3.98 per barrel compared to an average of $6.57 per barrel for the first quarter of 2006.

Jeff Morris, Alon's President and CEO, commented, "We are pleased with the increased earnings achieved in the first quarter resulting primarily from our California refineries and related asphalt assets acquired last year. Our integration of the California refineries and asphalt business is progressing according to plan and we look forward to increasing profit contributions from these operations."

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 14, 2007 to shareholders of record as of June 1, 2007.

The Company has scheduled a conference call for Thursday, May 10, 2007, at 10:00 a.m. Eastern, to discuss the first quarter 2007 results. To access the call, please dial (800) 218-0204, or (303) 262-2142, 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 on that site and clicking "Investors." A telephonic replay of the conference call will be available through May 24, 2007 and may be accessed by calling (800) 405-2236, or (303) 590-3000, for international callers, and using the passcode 11087729. 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 and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with an aggregate crude oil throughput capacity of approximately 170,000 barrels per day. Alon markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt. Alon also operates more than 200 convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery.

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.

                              -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                              For the Three
     DATA AS OF DECEMBER 31, 2006 IS UNAUDITED)             Months Ended
                                                             March 31,
                                                          2007       2006
    CONSOLIDATED                                       (dollars in thousands,
                                                       except per share data)

    STATEMENT OF OPERATIONS DATA:
    Net sales                                            $965,532   $584,701
    Operating costs and expenses:
      Cost of sales                                       811,261    497,827
      Direct operating expenses                            49,283     23,271
      Selling, general and administrative expenses (1)     22,165     17,453
      Depreciation and amortization (2)                    14,442      5,523
        Total operating costs and expenses                897,151    544,074
    Gain on disposition of assets (3)                         955     55,386
    Operating income                                       69,336     96,013
    Interest expense (4)                                  (11,418)    (9,047)
    Equity earnings of investees                              604        577
    Other income, net                                         890      1,927
    Income before income tax expense and minority
     interest in income of subsidiaries                    59,412     89,470
    Income tax expense                                     21,971     32,526
    Income before minority interest in income of
     subsidiaries                                          37,441     56,944
    Minority interest in income of subsidiaries             1,876      2,780
    Net income                                            $35,565    $54,164

    Earnings per share                                      $0.76      $1.16
    Weighted average shares outstanding (in thousands)     46,757     46,731
    Cash dividends per share                                $0.04      $0.41

    CASH FLOW DATA:
    Net cash provided by (used in):
      Operating activities                                $38,868    $(9,723)
      Investing activities                                 (8,876)   129,387
      Financing activities                                 (5,662)  (119,660)

    OTHER DATA:
    Adjusted net income (5)                               $34,977    $24,117
    Earnings per share, excluding after-tax gain on
     disposition of assets and interest expense
     related to the prepayment of debt, net of tax (5)      $0.75      $0.52
    Adjusted EBITDA (6)                                    84,317     48,654
    Capital expenditures (7)                                4,592      4,638
    Capital expenditures for turnaround and chemical
     catalysts                                              4,674      1,303


                                                        March 31, December 31,
    BALANCE SHEET DATA (end of period):                    2007        2006

    Cash and cash equivalents                             $88,496    $64,166
    Working capital                                       263,374    228,779
    Total assets                                        1,490,379  1,408,785
    Total debt                                            496,970    498,669
    Total stockholders' equity                            324,085    290,330



                                                        For the Three Months
                                                           Ended March 31,
                                                           2007      2006
    REFINING AND MARKETING SEGMENT (A)                 (dollars in thousands,
                                                    except per barrel data and
                                                         pricing statistics)

    STATEMENT OF OPERATIONS DATA:
    Net sales (8)                                         $893,969  $539,987
    Operating costs and expenses:
      Cost of sales                                        774,391   462,572
      Direct operating expenses                             38,447    21,599
      Selling, general and administrative expenses           6,199     3,554
      Depreciation and amortization                         12,719     3,786
        Total operating costs and expenses                $831,756  $491,511
    Gain on disposition of assets (3)                        1,024    55,386
    Operating income                                       $63,237  $103,862

    KEY OPERATING STATISTICS:
    Total sales volume (bpd)                               133,337    85,370
    Non-integrated marketing sales volume (bpd) (9)         13,878    19,347
    Non-integrated marketing margin (per barrel sales
     volume) (9)                                            $(0.07)   $(0.56)
    Per barrel of throughput:
    Refinery operating margin - Big Spring (10)             $14.36    $12.35

      Refinery operating margin - CA Refineries (10)          6.59       N/A
      Refinery direct operating expenses - Big Spring (11)    3.89      3.40
      Refinery direct operating expenses -
       CA Refineries (11)                                     2.91       N/A
    Capital expenditures                                     3,855     4,325
    Capital expenditures for turnaround
      and chemical catalysts                                 4,674     1,303

    PRICING STATISTICS:
    WTI crude oil (per barrel)                              $57.95    $63.34
    WTS crude oil (per barrel)                               53.97     56.77
    MAYA crude oil (per barrel)                              45.42     47.73
    Crack spreads (3/2/1) (per barrel):
      Gulf Coast (12)                                       $12.75     $9.70
      Group III (12)                                         15.00      9.66
      West Coast (12)                                        32.49     19.35
    Crude oil differentials (per barrel):
      WTI less WTS (13)                                      $3.98     $6.57
      WTI less MAYA (13)                                     12.53     15.61
    Product price (dollars per gallon):
      Gulf Coast unleaded gasoline                          $1.627    $1.702
      Gulf Coast low-sulfur diesel                           1.796     1.813
      Group III unleaded gasoline                            1.672     1.707
      Group III low-sulfur diesel                            1.866     1.801
      West Coast LA CARBOB (unleaded gasoline)               2.260     1.998
      West Coast LA ultra low-sulfur diesel                  1.939     1.912
      Natural gas (per MMBTU)                                $7.18     $7.84

      (A) Alon acquired the California refineries in the third quarter of
          2006; therefore, comparable data related to these refineries for the
          first quarter of 2006 is not included.  Following the acquisitions
          of the California refineries and the asphalt terminal assets, Alon
          added a third reporting segment, the Asphalt segment, beginning in
          the third quarter ended September 30, 2006.  As a result, asphalt is
          no longer included in the Refining and Marketing segment.  All
          comparable periods for the Refining and Marketing segment exclude
          asphalt, as this information is now reflected in the Asphalt
          segment.




    THROUGHPUT AND YIELD DATA:  BIG SPRING         For the Three Months Ended
                                                           March 31,
                                                      2007           2006
                                                   Bpd     %      Bpd     %
    Refinery crude throughput:
      Sour crude                                 58,617   89.6  62,720  88.9
      Sweet crude                                 2,373    3.6   3,191   4.5
      Blendstocks                                 4,461    6.8   4,618   6.6
    Total refinery throughput (14)               65,451  100.0  70,529 100.0

    Refinery production:
      Gasoline                                   30,517   47.2  32,846  47.2
      Diesel/jet                                 18,856   29.1  23,701  34.1
      Asphalt                                     6,956   10.7   6,444   9.3
      Petrochemicals                              4,768    7.4   4,266   6.0
      Other                                       3,653    5.6   2,346   3.4
    Total refinery production (15)               64,750  100.0  69,603 100.0

    Refinery Utilization (16)                             90.8%         94.2%



    THROUGHPUT AND YIELD DATA:  CALIFORNIA
                                                    For the Three Months Ended
    REFINERIES                                               March 31,
                                                               2007
                                                          Bpd         %
    Refinery crude throughput:
      Sour crude                                         21,463      36.3
      Heavy crude                                        37,405      63.2
      Blendstocks                                           296       0.5
    Total refinery throughput (14)                       59,164     100.0

    Refinery production:
      Gasoline                                            6,873      11.9
      Diesel/jet                                         14,086      24.4
      Asphalt                                            18,753      32.5
      Light unfinished                                    2,503       4.3
      Heavy unfinished                                   14,566      25.2
      Other                                                 997       1.7
    Total refinery production (15)                       57,778     100.0

    Refinery Utilization (16)                                        83.9%



                                                            For the Three
                                                            Months Ended
                                                              March 31,
    ASPHALT SEGMENT                                        2007       2006
                                                       (dollars in thousands,
                                                      except for per ton data)
    STATEMENT OF OPERATIONS DATA:
    Net sales                                            $113,946    $22,292
    Operating costs and expenses:
      Cost of sales (17)                                   95,795     26,481
      Direct operating expenses                            10,836      1,672
      Selling, general and administrative expenses            557      1,322
      Depreciation and amortization                           497         59
        Total operating costs and expenses                107,685     29,534
    Operating income (loss)                                $6,261    $(7,242)

    KEY OPERATING STATISTICS:
    Total sales volume (tons in thousands)                    358         80
    Sales price per ton                                   $318.28    $278.65
    Asphalt margin per ton (18)                            $50.70    $(52.36)
    Capital expenditures                                     $136        $71



                                                    For the Three Months Ended
                                                             March 31,
    RETAIL SEGMENT                                        2007       2006
                                                     (dollars in thousands,
                                                   except for per gallon data)

    STATEMENT OF OPERATIONS DATA:
    Net sales                                             $85,839    $72,615
    Operating costs and expenses:
      Cost of sales (17)                                   69,297     58,967
      Selling, general and administrative expenses         15,322     12,450
      Depreciation and amortization                           992      1,154
        Total operating costs and expenses                 85,611     72,571
    Loss on disposition of assets                             (69)       ---
    Operating income                                         $159        $44

    KEY OPERATING STATISTICS:
    Number of stores (end of period)                          206        167
    Fuel sales (thousands of gallons)                      18,867     17,133
    Fuel sales (thousands of gallons per site per month)       31         34
    Fuel margin (cents per gallon) (19)                      19.7       17.2
    Fuel sales price (dollars per gallon) (20)              $2.32      $2.33
    Merchandise sales                                     $42,040    $32,414
    Merchandise sales (per site per month)                    $67        $65
    Merchandise margin (21)                                  30.5%      33.2%
    Capital expenditures                                     $479       $223

      (1)  Includes corporate headquarters selling, general and administrative
           expenses of $87 and $127 for the three months ended March 31, 2007
           and 2006, respectively, which are not allocated to our three
           operating segments.

      (2)  Includes corporate depreciation and amortization of $234 and $524
           for the three months ended March 31, 2007 and 2006, respectively,
           which are not allocated to our three operating segments.

      (3)  Gain on disposition of assets reported in the three months ended
           March 31, 2007, includes the recognition of $955 deferred gain
           recorded primarily in connection with the Holly Energy Partners, LP
           ("HEP") transaction.  Gain on disposition of assets reported in the
           three months ended March 31, 2006, reflects the $52,500 initial
           pre-tax gain recorded in connection with the Amdel and White Oil
           crude oil pipelines transaction and $2,886 deferred gain recorded
           in connection with the HEP transaction.

      (4)  Includes $3,000 prepayment premium and $3,894 of unamortized debt
           issuance costs written off as a result of the prepayment of the
           $100,000 term loan in January 2006.

      (5)  The following table provides a reconciliation of net income under
           United States generally accepted accounting principles ("GAAP") to
           adjusted net income utilized in determining earnings per common
           share, excluding the after-tax gain on disposition of assets and
           the after-tax interest expense related to the prepayment of debt.
           Our management believes that the presentation of adjusted net
           income and earnings per common share, excluding these after-tax
           items, is useful to investors because it provides a more meaningful
           measurement of operating performance for evaluation of our
           Company's results and for comparison to other companies in our
           industry.


                                                           For the Three
                                                            Months Ended
                                                              March 31,
                                                           2007       2006
                                                       (dollars in thousands,
                                                        except per share data)
         Net income                                       $35,565    $54,164
           Plus:  Interest expense related
            to the prepayment of debt, net of tax             ---      4,240
           Less:  Gain on disposition of assets,
            net of tax                                       (588)   (34,287)
         Adjusted net income                              $34,977    $24,117

         Weighted average shares outstanding
          (in thousands)                                   46,757     46,731
         Earnings per share, excluding after-tax gain on
          disposition of assets and interest expense
          related to prepayment of debt, net of tax         $0.75      $0.52

      (6)  EBITDA represents earnings before minority interest in income of
           subsidiaries, income tax expense, interest expense, depreciation
           and amortization.  Adjusted EBITDA represents EBITDA, exclusive of
           gain on disposition of assets.  EBITDA and Adjusted EBITDA are not
           recognized measurements under GAAP; however, the amounts included
           in EBITDA and Adjusted EBITDA are derived from amounts included in
           our consolidated financial statements.  Alon's 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, Alon's 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 minority
           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 which may vary for
           different companies for reasons unrelated to overall operating
           performance.  EBITDA is the basis for calculating selected
           financial ratios as required per our credit facilities.

           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 minority
                stockholders 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 the EBITDA
                calculations of other companies in our industry, limiting its
                usefulness as a comparative measure.

           Because of these limitations, EBITDA and Adjusted EBITDA should
           not be considered a measure of discretionary cash available to us
           to invest in the growth of our business.  Alon compensates for
           these limitations by relying primarily on our GAAP results and
           using EBITDA and Adjusted EBITDA only supplementally.

              The following table reconciles net income to Adjusted EBITDA for
           the three months ended March 31, 2007 and 2006, respectively:



                                                       For the Three Months
                                                          Ended March 31,
                                                        2007          2006
                                                      (dollars in thousands)

    Net income                                         $35,565       $54,164
      Minority interest in income of subsidiaries        1,876         2,780
      Income tax expense                                21,971        32,526
      Interest expense                                  11,418         9,047
      Depreciation and amortization                     14,442         5,523
    EBITDA                                              85,272       104,040
      Gain on disposition of assets                       (955)      (55,386)
    Adjusted EBITDA                                    $84,317       $48,654

      (7)  Includes corporate capital expenditures of $122 and $19 for the
           three months ended March 31, 2007 and 2006, respectively, which are
           not allocated to Alon's other operating segments.

      (8)  Net sales include intersegment sales to our asphalt and retail
           segments at prices which approximate wholesale market price.  These
           intersegment sales are eliminated through consolidation of our
           financial statements.

      (9)  The non-integrated marketing sales volume represents refined
           products sales to our wholesale marketing customers located in our
           non-integrated region.  The refined products we sell in this region
           are obtained from third-party suppliers.  The non-integrated
           marketing margin represents the margin between the net sales and
           cost of sales attributable to our non-integrated refined products
           sales volume, expressed on a per barrel basis.

     (10)  Refinery operating margin is a per barrel measurement calculated by
           dividing the margin between net sales and cost of sales
           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.  Alon compares its
           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
           and California 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 crude oil are converted, or cracked, into two
           barrels of gasoline and one barrel of diesel.  Alon calculates the
           Gulf Coast 3/2/1 crack spread using the market values of Gulf Coast
           conventional gasoline and low-sulfur diesel and the market value of
           WTI crude oil.  Alon calculates the Group 3/2/1 crack spread using
           the market values of Group III conventional gasoline and low-sulfur
           diesel and the market value of WTI crude oil.  Alon calculates the
           West Coast 3/2/1 crack spread using the market values of West Coast
           LA CARBOB pipeline gasoline and LA #2 CARB pipeline 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
           finished 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 marketing segment at prices which
           approximate wholesale market prices.  These intersegment purchases
           are eliminated through consolidation of our financial statements.

     (18)  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.

     (19)  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.

     (20)  Fuel sales price per gallon represents the average sales price for
           motor fuels sold through our retail segment.

     (21)  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:  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
                214-269-2093
                Ruth Sheetrit
                SMG Public Relations
                011-972-547-555551

SOURCE Alon USA Energy, Inc.