Alon USA Energy, Inc.

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Alon USA Reports Third Quarter Results; Declares Quarterly Cash Dividend

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Company schedules conference call for November 8, 2007 at 10:00 A.M. Eastern

DALLAS, Nov. 7 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the quarter ended September 30, 2007. Net income for the third quarter of 2007 was $12.6 million, or $0.27 per share, compared to $38.1 million, or $0.82 per share, for the same period last year. Excluding special items, Alon recorded net income of $11.9 million, or $0.26 per share, for the third quarter of 2007, compared to $46.5 million, or $1.00 per share, for the same period last year.

Net income for the nine months ended September 30, 2007 was $143.8 million, or $3.08 per share, compared to $135.4 million, or $2.90 per share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2007 was $141.0 million, or $3.02 per share, compared to $112.5 million, or $2.41 per share, for the same period last year.

Special items for the third quarter of 2007 included an after-tax gain of $0.7 million, compared to $1.4 million for the same period in 2006, recognized primarily on disposition of assets in connection with the contribution of certain pipeline and terminal assets to Holly Energy Partners, LP in the second quarter of 2005 ("HEP transaction"). Special items for the three months ended September 30, 2006, also included a $6.4 million after-tax LIFO non-cash charge to cost of sales related to the difference between the fair market value of the inventories acquired from Paramount on July 31, 2006 and Alon's recorded amounts under LIFO accounting attributable to those inventories; a $1.6 million after-tax charge relating to the prepayment of a loan by a wholly-owned subsidiary; and a $1.8 million after-tax charge for a special employee bonus payment related to special dividend payments on September 14, 2006.

Special items for the nine months ended September 30, 2007 included $2.8 million of after-tax gain recognized on disposition of assets in connection with the HEP transaction. Special items for the nine months ended September 30, 2006 included $36.9 million of after-tax gain related to the sale of Alon's inactive Amdel and White Oil crude oil pipelines to an affiliate of Sunoco, Inc. in the first quarter of 2006, and to the gain recognized in the HEP transaction; $5.8 million of after-tax interest expense resulting from the prepayment of Alon's $100.0 million term loan facility and the prepayment of a loan by a wholly-owned subsidiary; the $6.4 million non-cash after-tax LIFO charge discussed above; and the $1.8 million after-tax charge for special employee bonuses discussed above.

The combined refineries throughput for the third quarter of 2007 averaged 134,608 barrels per day ("bpd"), consisting of an average of 67,824 bpd at the Big Spring refinery and a record average of 66,784 bpd at the California refineries compared to 68,870 bpd at the Big Spring refinery and 45,585 bpd at the California refineries in the third quarter of 2006. The Big Spring refinery throughput in the third quarter of 2007 was affected by a scheduled turnaround in July 2007. The increase in the refinery throughput at the California refineries was due to the inclusion of the Edgington Oil Company refinery throughput in the third quarter of 2007 (Edgington Oil Company was acquired on September 28, 2006 and was combined with the operations of Paramount Petroleum Corporation refinery from that time.) and higher refinery throughput volumes at the Paramount Petroleum Corporation refinery (Paramount Petroleum Corporation was acquired effective July 31, 2006). The combined refineries throughput for the nine months ended September 30, 2007 averaged 131,770 bpd, consisting of an average of 68,654 bpd at the Big Spring refinery and an average of 63,116 bpd at the California refineries compared to an average of 65,238 bpd at the Big Spring refinery and an average of 45,585 bpd at the California refineries for the nine months ended September 30, 2006.

Earnings in the third quarter of 2007 compared to the third quarter of 2006 were adversely affected by lower asphalt margins and lower refinery operating margins at both the Big Spring and California refineries. Asphalt margins in the third quarter of 2007 were $15.67 per ton compared to $40.37 per ton in the third quarter of 2006. The decrease in asphalt margins is primarily due to increased crude oil prices in the third quarter of 2007. Refinery operating margins at the California refineries for the third quarter of 2007 were $0.45 per barrel compared to $2.67 per barrel in the third quarter of 2006. West Coast 3-2-1 crack spreads decreased to an average of $20.50 per barrel for the third quarter of 2007 compared to an average of $24.60 per barrel for the third quarter of 2006. The California refineries operating margins were also negatively impacted by California logistical and supply issues primarily related to the increase in throughput and increased use of waterborne crude, which is hedged. The Big Spring refinery operating margin for the third quarter of 2007 was $10.90 per barrel compared to $14.78 per barrel in the third quarter of 2006. The Big Spring refinery operating margin was lower for the third quarter of 2007 primarily due to the scheduled turnaround in July 2007. Gulf Coast 3-2-1 crack spreads decreased to an average of $13.14 per barrel for the third quarter of 2007 compared to an average of $13.38 per barrel for the third quarter of 2006.

Earnings for the nine months ended September, 30 2007 compared to the same prior year period increased primarily as a result of higher refinery and asphalt margins. The Big Spring refinery operating margin for the nine months ended September 30, 2007 was $16.93 per barrel compared to $14.93 per barrel for the same period in 2006. GulfCoast 3-2-1 crack spreads increased to an average of $17.38 per barrel for the nine months ended September 30, 2007 compared to an average of $13.78 per barrel for the nine months ended September 30, 2006. Refinery operating margins at the California refineries for the nine months ended September 30, 2007 were $4.95 per barrel compared to $2.67 per barrel for the nine months ended September 30, 2006. West Coast 3-2-1 crack spreads increased to an average of $30.89 per barrel for the nine months ended September 30, 2007 compared to an average of $26.45 per barrel for the nine months ended September 30, 2006. Asphalt margins for the nine months ended September 30, 2007 were $35.09 per ton compared to $32.32 per ton for the nine months ended September 30, 2006.

Jeff Morris, Alon's President and CEO, commented "This was a challenging quarter as earnings were negatively affected by record crude oil prices, which resulted in lower margins, particularly in Alon's asphalt segment. Asphalt market prices did not reflect the sharp increase in costs of crude oil and other raw materials. Due to the fact that a substantial portion of Alon's asphalt sales are made pursuant to forward, fixed-price contracts, our asphalt margins are negatively affected when crude prices rise prior to the asphalt delivery and positively affected when crude prices fall prior to asphalt delivery.

"We remain optimistic about our future operations. At the end of the third quarter we started up the fourth crude unit in the California refineries, furthering our long term plan of running 90,000 bpd. Also, our Big Spring refinery was acknowledged as being the best refinery in the Mid-Continent (RSC4) region, based on the latest Solomon Study."

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 December 14, 2007 to stockholders of record as of November 30, 2007.

The Company has scheduled a conference call for Thursday, November 8, 2007, at 10:00 a.m. Eastern, to discuss the third quarter 2007 results. To access the call, please dial (800) 219-6110, or (303) 262-2211, 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 November 22, 2007 and may be accessed by calling (800) 405-2236, or (303) 590-3000, for international callers, and using the passcode 11098821. 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 300 convenience stores in West Texas and New Mexico substantially under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery. In addition, Alon supplies approximately 800 additional FINA branded stations.

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 (A)
     (ALL INFORMATION IN
     THIS PRESS RELEASE,
     EXCEPT FOR BALANCE SHEET
     DATA AS OF DECEMBER 31,
     2006 IS UNAUDITED)           For the Three            For the Nine
                                   Months Ended            Months Ended
                                   September 30,           September 30,
                                2007         2006        2007        2006
                              (dollars in thousands, except per share data)
    STATEMENT OF OPERATIONS
     DATA:
    Net sales               $1,243,232   $1,000,187  $3,395,457  $2,257,150
    Operating costs and
     expenses:
      Cost of sales          1,136,026      861,298   2,876,862   1,915,814
      Direct operating
       expenses                 48,342       35,579     152,371      81,014
      Selling, general and
       administrative
       expenses (1)             25,934       24,298      75,133      62,105
      Depreciation and
       amortization (2)         17,048        9,551      42,643      20,482
        Total operating costs
         and expenses        1,227,350      930,726   3,147,009   2,079,415
    Gain on disposition
     of assets (3)               1,108        2,304       4,588      59,969
    Operating income            16,990       71,765     253,036     237,704
    Interest expense (4)       (12,787)      (9,755)    (35,874)    (20,151)
    Equity earnings of
     investees                   5,531        1,422      10,071       2,175
    Other income, net            1,747        2,147       4,928       6,248
    Income before income tax
     expense and minority
     interest in income of
     subsidiaries               11,481       65,579     232,161     225,976
    Income tax expense
     (benefit) (5)              (1,839)      25,219      79,782      83,352
    Income before minority
     interest in income of
     subsidiaries               13,320       40,360     152,379     142,624
    Minority interest in
     income of subsidiaries        693        2,217       8,574       7,226
    Net income                 $12,627      $38,143    $143,805    $135,398

    Earnings per share, basic    $0.27        $0.82       $3.08       $2.90

    Weighted average shares
     outstanding (in thousands) 46,761       46,737      46,758      46,734
    Cash dividends per share     $0.04        $2.54       $0.12       $2.99

    CASH FLOW DATA:
    Net cash provided by
     (used in):
      Operating activities     $14,687      $93,138    $173,595     $88,428
      Investing activities     (50,595)    (597,223)   (150,584)   (401,615)
      Financing activities      (4,334)     343,650      32,249     220,280
    OTHER DATA:
    Adjusted net income (6)    $11,950      $46,516    $141,000    $112,523
    Earnings per share,
     excluding after-tax gain
     on disposition of assets,
     interest expense related
     to the prepayment of debt,
     net of tax, LIFO adjustment
     related to acquisition, net
     of tax and special
     employee bonus payment,
     net of tax (6)              $0.26        $1.00       $3.02       $2.41
    Adjusted EBITDA (7)        $40,208     $ 82,581    $306,090    $206,640
    Capital expenditures (8)    11,202        4,213      28,869      27,378
    Capital expenditures for
     turnaround and chemical
     catalyst                    4,220           65       9,357       2,990

                                                   September 30,  December 31,
                                                       2007         2006
    BALANCE SHEET DATA
     (end of period):
    Cash and cash equivalents
     and short-term
     investments                                     $154,434      $64,166
    Working capital                                   317,295      228,779
    Total assets                                    1,701,013    1,408,785
    Total debt                                        539,117      498,669
    Total stockholders' equity                        429,338      290,330


    (A)  Alon acquired the California refineries and asphalt assets in the
         third quarter of 2006.  Comparable data related to the Paramount
         Petroleum Corporation refinery and asphalt assets are included for
         two months in the results of operations for the three and nine months
         ended September 30, 2006.   The Edgington Oil Company refinery was
         acquired on September 28, 2006 and, therefore, comparable data
         related to this refinery is not included in the results of operations
         for the three and nine months ended September 30, 2006.



    REFINING AND MARKETING         For the Three           For the Nine
     SEGMENT (B)                    Months Ended           Months Ended
                                    September 30,          September 30,
                                2007         2006        2007        2006
                                  (dollars in thousands, except per
                                    barrel data and pricing statistics)
    STATEMENTS OF OPERATIONS
     DATA:
    Net sales (9)           $1,107,566     $784,463  $3,060,682  $1,891,789
    Operating costs and
     expenses:
      Cost of sales          1,035,589      682,214   2,655,771   1,619,441
      Direct operating
       expenses                 36,396       27,074     117,633      69,334
      Selling, general and
       administrative expenses   5,497        4,197      21,424      13,870
      Depreciation and
       amortization             13,475        6,954      35,448      14,478
        Total operating
         costs and expenses  1,090,957      720,439   2,830,276   1,717,123
    Gain on disposition of
     assets (3)                  1,125        2,304       4,549      59,969
    Operating income           $17,734      $66,328    $234,955    $234,635

    KEY OPERATING STATISTICS:
    Total sales volume (bpd)   125,487      112,114     131,418      92,733
    Non-integrated marketing
     sales volume (bpd) (10)    14,298       17,651      14,168      18,797
    Non-integrated marketing
     margin (per barrel sales
     volume) (10)                $0.89        $0.75       $0.57      $(0.18)
    Per barrel of throughput:
      Refinery operating
       margin - Big Spring (11) $10.90       $14.78      $16.93      $14.93
      Refinery operating margin
       - CA Refineries (11)       0.45         2.67        4.95        2.67
      Refinery direct operating
       expenses - Big Spring (12) 3.22         2.98        3.47        3.43
      Refinery direct operating
       expenses - CA
       Refineries (12)            2.65         2.94        3.05        2.94
    Capital expenditures         6,151        2,142      20,254      22,689
    Capital expenditures for
     turnaround and chemical
     catalysts                   4,220           66       9,357       2,991

    PRICING STATISTICS:
    WTI crude oil (per barrel)  $75.43       $70.45      $66.15      $68.09
    WTS crude oil (per barrel)   70.17        66.01       61.54       62.86
    MAYA crude oil (per barrel)  63.04        55.58       54.59       52.69
    Crack spreads (3/2/1)
     (per barrel):
      Gulf Coast (13)           $13.14       $13.38      $17.38      $13.78
      Group III (13)             21.23        18.30       22.66       15.83
      West Coast (13)            20.50        24.60       30.89       26.45
    Crack spreads (6/1/2/3)
     (per barrel):
      West Coast (13)            $2.35        $1.59      $ 7.89       $4.05
    Crude oil differentials
     (per barrel):
      WTI less WTS (14)          $5.26        $4.44       $4.61       $5.23
      WTI less MAYA (14)         12.39        14.80       11.56       15.33
    Product price (dollars
     per gallon):
      Gulf Coast unleaded
       gasoline                 $2.073       $1.952      $1.973      $1.921
      Gulf Coast low-sulfur
       diesel                    2.181        2.084       2.019       2.005
      Group III unleaded
       gasoline                  2.288        2.051       2.112       1.963
      Group III low-sulfur
       diesel                    2.330        2.237       2.120       2.069
      West Coast LA CARBOB
       (unleaded gasoline)       2.307        2.315       2.406       2.306
      West Coast LA ultra
       low-sulfur diesel         2.238        2.160       2.120       2.142
      Natural gas (per MMBTU)    $6.24        $6.18       $7.02       $6.89


    (B)  Following the acquisitions of the California refineries and asphalt
         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:     For the Three Months Ended  For the Nine Months Ended
     BIG SPRING             September 30,                 September 30,
                          2007          2006           2007           2006
                       bpd     %     bpd      %     bpd      %     bpd     %
    Refinery crude
     throughput:
      Sour crude     56,292  83.0  62,961   91.4  58,980   85.9  58,241  89.3
      Sweet crude     5,903   8.7   2,728    4.0   5,172    7.5   3,033   4.6
      Blendstocks     5,629   8.3   3,181    4.6   4,502    6.6   3,964   6.1
    Total refinery
     throughput (15) 67,824 100.0  68,870  100.0  68,654  100.0  65,238 100.0
    Refinery
     production:
      Gasoline       30,516  45.1  30,347   44.6  31,586   46.3  29,139  45.2
      Diesel/jet     19,560  28.9  22,775   33.5  20,310   29.8  20,942  32.5
      Asphalt         8,485  12.6   6,740    9.9   7,614   11.2   6,301   9.8
      Petrochemicals  3,658   5.4   4,990    7.3   4,174    6.1   4,341   6.7
      Other           5,392   8.0   3,171    4.7   4,497    6.6   3,720   5.8
    Total refinery
     production (16) 67,611 100.0  68,023  100.0  68,181  100.0  64,443 100.0
    Refinery
     Utilization (17)        97.1%          93.8%          93.9%         91.5%



    THROUGHPUT AND
     YIELD DATA:
     CALIFORNIA      For the Three Months Ended    For the Nine Months Ended
     REFINERIES              September 30,               September 30,
                          2007          2006           2007          2006
                       bpd     %     bpd      %     bpd     %     bpd      %
    Refinery crude
     throughput:
      Sour crude     24,395  36.5  23,847   52.3  22,949  36.4  23,847   52.3
      Heavy crude    42,562  63.8  21,969   48.2  40,124  63.5  21,969   48.2
      Blendstocks      (173) (0.3)   (231)  (0.5)     43   0.1    (231)  (0.5)
    Total refinery
     throughput
     (15)(18)        66,784 100.0  45,585  100.0  63,116 100.0  45,585  100.0
    Refinery
     production:
      Gasoline        8,090  12.3   5,677   12.7   7,335  11.9   5,677   12.7
      Diesel/jet     14,490  22.1  11,182   25.0  13,711  22.2  11,182   25.0
      Asphalt        21,507  32.8  15,130   33.8  19,440  31.5  15,130   33.8
      Light
       unfinished     3,196   4.9   1,904    4.3   3,346   5.4   1,904    4.3
      Heavy
       unfinished    17,248  26.3  10,222   22.8  16,853  27.3  10,222   22.8
      Other           1,057   1.6     622    1.4   1,015   1.7     622    1.4
    Total refinery
     production
     (16)(18)        65,588 100.0  44,737  100.0  61,700 100.0  44,737  100.0
    Refinery
     Utilization (17)        92.4%          84.8%         87.9%          84.8%



    ASPHALT SEGMENT               For the Three            For the Nine
                                   Months Ended             Months Ended
                                   September 30,            September 30,
                                2007         2006        2007        2006
                                (dollars in thousands, except per ton data)
    STATEMENTS OF OPERATIONS
     DATA:
    Net sales                 $211,117     $162,187    $506,508    $222,868
    Operating costs and
     expenses:
      Cost of sales (19)       201,447      143,131     452,722     200,471
      Direct operating expenses 11,946        8,505      34,738      11,680
      Selling, general and
       administrative expenses     358        5,120       2,174       7,552
      Depreciation and
       amortization                557          334       1,612         456
        Total operating costs
         and expenses          214,308      157,090     491,246     220,159
    Gain (loss) on disposition
     of assets                      (4)           -           -           -
    Operating income (loss)    $(3,195)      $5,097     $15,262      $2,709

    KEY OPERATING STATISTICS:
    Total sales volume
     (tons in thousands)           617          472       1,533         693
    Sales price per ton        $342.17      $343.92     $330.40     $322.07
    Asphalt margin per ton (20) $15.67       $40.37      $35.09      $32.32
    Capital expenditures          $495       $1,032      $1,655      $1,400



    RETAIL SEGMENT                For the Three             For the Nine
                                   Months Ended             Months Ended
                                   September 30,            September 30,
                                2007         2006        2007        2006
                              (dollars in thousands, except per gallon data)
    STATEMENTS OF OPERATIONS
     DATA:
    Net sales                 $147,614     $104,866    $339,278    $264,296
    Operating costs and
     expenses:
      Cost of sales (19)       122,055       87,282     279,380     217,705
      Selling, general and
       administrative expenses  19,949       14,859      51,188      40,339
      Depreciation and
       amortization              2,822        1,927       4,954       4,191
        Total operating costs
         and expenses          144,826      104,068     335,522     262,235
    Gain on disposition of
     assets                        (13)           -          39           -
    Operating income            $2,775         $798      $3,795      $2,061

    KEY OPERATING STATISTICS:
    Number of stores
     (end of period)               308          207         308         207
    Fuel sales
     (thousands of gallons)     27,049       21,265      65,075      55,848
    Fuel sales (thousands of
     gallons per site
     per month) (21)                29           34          30          34
    Fuel margin
     (cents per gallon) (22)      16.0         15.0        19.3        16.3
    Fuel sales price
     (dollars per gallon) (23)   $2.92        $2.83       $2.77       $2.67
    Merchandise sales          $69,180      $44,692    $159,289    $115,296
    Merchandise sales
     (per site per month) (21)      75           72          74          71
    Merchandise margin (24)       30.7%        32.2%       29.7%       32.5%
    Capital expenditures        $3,977         $953      $5,954      $3,127


    (1)  Includes corporate headquarters selling, general and administrative
         expenses of $130 and $122 for the three months ended September 30,
         2007 and 2006, respectively, and $347 and $344 for the nine months
         ended September 30, 2007 and 2006, respectively, which are not
         allocated to our three operating segments.

    (2)  Includes corporate depreciation and amortization of $194 and $336 for
         the three months ended September 30, 2007 and 2006, respectively, and
         $629 and $1,357 for the nine months ended September 30, 2007 and
         2006, respectively, which are not allocated to our three operating
         segments.

    (3)  Gain on disposition of assets reported in the three and nine months
         ended September 30, 2007 reflects the recognition of $1,108 and
         $4,588, respectively, of deferred gain recorded primarily in
         connection with the contribution of certain product pipelines and
         terminals to Holly Energy Partners, LP ("HEP") in March 2005 ("HEP
         Transaction").  Gain on disposition of assets reported in the nine
         months ended September 30, 2006 reflects the $52,500 pre-tax gain on
         disposition of assets, recorded in connection with the Amdel and
         White Oil transaction and the recognition of $7,469 deferred gain
         recorded primarily in connection with the HEP transaction. Deferred
         gain recorded primarily in connection with the HEP transaction for
         the third quarter 2006 was $2,304.

    (4)  Interest expense for the nine months ended September 30, 2006
         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)  Income tax expense for the three and nine months ended September 30,
         2007 includes a benefit of $5,485 resulting from the true-up of the
         prior year income tax expense.

    (6)  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.
         Adjusted net income is not a recognized measurement under GAAP;
         however, the amounts included in adjusted net income are calculated
         based on amounts included in our consolidated financial statements.
         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.


                                  Three Months Ended      Nine Months Ended
                                     September 30,           September 30,
                                  2007         2006        2007        2006
                             (dollars in thousands, except earnings per share)
    Net income                 $12,627      $38,143    $143,805    $135,398
    Plus:  Interest expense
     related to prepayment of
     debt, net of tax                -        1,626           -       5,866
    Plus:  LIFO adjustment
     related to acquisition,
     net of tax                      -        6,385           -       6,385
    Plus: Special employee
     bonus payment, net of tax       -        1,780           -       1,780
    Less:  Gain on disposition
     of assets, net of tax        (677)      (1,418)     (2,805)    (36,906)
    Adjusted net income         11,950       46,516     141,000     112,523

    Weighted average common
     equivalent shares
     outstanding                46,761       46,737      46,758      46,734
    Earnings per share, excluding
     after-tax gain on
     disposition of assets,
     interest expense related to
     the prepayment of debt,
     net of tax, LIFO adjustment
     related to acquisition,
     net of tax and special
     employee bonus payment,
     net of tax                  $0.26        $1.00       $3.02       $2.41


    (7)  Adjusted EBITDA represents earnings (net income) before minority
         interest in income of subsidiaries, income tax expense, interest
         expense, depreciation and amortization, and is exclusive of 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 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.

         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, 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 to Adjusted EBITDA for
         the three and nine months ended September 30, 2007 and 2006,
         respectively:

                                    For the Three           For the Nine
                                     Months Ended           Months Ended
                                     September 30,          September 30,
                                 2007         2006        2007        2006
                                           (dollars in thousands)
    Net income                 $12,627      $38,143    $143,805    $135,398
      Minority interest in
       income of subsidiaries      693        2,217       8,574       7,226
      Income tax expense
       (benefit)                (1,839)      25,219      79,782      83,352
      Interest expense          12,787        9,755      35,874      20,151
      Depreciation and
       amortization             17,048        9,551      42,643      20,482
      Gain on disposition
       of assets                (1,108)      (2,304)     (4,588)    (59,969)
    Adjusted EBITDA            $40,208      $82,581    $306,090    $206,640


    (8)  Includes corporate capital expenditures of $579 and $86 for the three
         months ended September 30, 2007 and 2006, respectively, and $1,006
         and $162 for the nine months ended September 30, 2007 and 2006,
         respectively, which are not allocated to our  three operating
         segments.

    (9)  Net sales include intersegment sales to our asphalt and retail
         segments at prices which are intended to approximate wholesale market
         prices.  These intersegment sales are eliminated through
         consolidation of our financial statements. Net sales for the nine
         months ended September 30, 2006, includes $3,300 for the sale of
         sulfur credits.

    (10) 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.

    (11) Refinery operating margin is a per barrel measurement calculated by
         dividing the margin between net sales  (exclusive of sale of sulfur
         credits from the Big Spring refinery) 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.

    (12) 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.

    (13) 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.  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 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. Alon calculates 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.

    (14) 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.

    (15) Total refinery throughput represents the total barrels per day of
         crude oil and blendstock inputs in the refinery production process.

    (16) 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.

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

    (18) Total refinery throughput and total refinery production for the three
         and nine month periods ended September 30, 2006 are calculated using
         two months of data. Our acquisition of Paramount Petroleum
         Corporation was effective as of July 31, 2006.

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

    (20) Asphalt margin is a per ton measurement calculated by dividing the
         difference 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) Fuel and merchandise sales per site for the nine months ended
         September 30, 2007 were calculated using 206 stores for six months
         and 308 stores for three months due to the acquisition of Skinny's,
         Inc. on June 29, 2007. Fuel and merchandise sales per site for the
         nine months ended September 30, 2006 were calculated using 167 stores
         for six months and 207 stores for three months due to the Good Time
         Stores acquisition on July 3, 2006.

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

    (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.

    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.