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 7, 2009 at 12:00 P.M. Eastern

DALLAS, May 6 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the first quarter of 2009. Net income for the first quarter of 2009 was $17.4 million, or $0.37 per share, compared to net loss of ($33.6) million, or ($0.72) per share, for the same period last year. Excluding special items, Alon recorded net income of $17.4 million, or $0.37 per share, for the first quarter of 2009, compared to net loss of ($25.2) million, or ($0.54) per share, for the same period last year. Special items for the first quarter of 2008 included after-tax losses for net costs associated with the Big Spring refinery fire of $9.7 million partially offset by an after-tax gain of $1.4 million recognized on disposition of assets. There were no special items to report for the first quarter of 2009.

Jeff Morris, Alon's President and CEO, commented, "We are pleased with the progress we have made during the past year. It was only a little over a year ago when I shared with you the news of the fire at our Big Spring refinery. Today, I have the pleasure of conveying that not only have we recovered, we have made measurable strides forward in our refinery operations, capital structure and growth prospects.

"We recently amended in April 2009 our term loan and revolving credit facility associated with our newest acquisition, the Krotz Springs refinery, which allowed us to delever our Krotz Springs refinery debt by approximately 50%. Our term loan has been reduced to approximately $165 million from $300 million and cash borrowings under our revolving credit facility have been decreased by approximately $100 million. This was achieved, in part, due to the successful unwind and liquidation of the heating oil crack spread hedge that was put in place in July 2008, realizing approximately $185 million in proceeds, including the release of $50 million of cash collateral supporting the hedge.

"We also received during the first quarter of 2009 over $110 million in cash relating to the income tax receivables discussed in the year-end earnings conference call. This cash was applied primarily to reduce borrowings under the Alon USA, LP revolver facility. Thus, it is expected that Alon will reduce its total consolidated debt by approximately $400 million during 2009 using cash from operations, proceeds from unwinding the heating oil hedge, proceeds from income tax receivables and reductions in working capital.

"As we continue into 2009, we are planning to capitalize upon the momentum we've developed by continuing our efforts to strengthen our balance sheet by reducing debt, increase our shareholder value by generating positive operating results and grow our organization by investing in projects consistent with our growth strategy."

Refinery operating margin at the Big Spring refinery was $13.63 per barrel for the first quarter of 2009 compared to $6.54 per barrel for the same period in 2008. This increase was primarily due to the depressed margins experienced in conjunction with the fire at the Big Spring refinery on February 18, 2008. Refinery operating margin at the California refineries was $1.16 per barrel for the first quarter of 2009 compared to ($1.80) per barrel for the same period in 2008. This increase primarily resulted from a 56% decrease in WTI prices from $98.00 per barrel in the first quarter of 2008 to $43.10 per barrel in the first quarter of 2009. The Krotz Springs refinery operating margin for the first quarter of 2009 was $13.19 per barrel.

The combined refineries throughput for the first quarter of 2009 averaged 146,890 barrels per day ("bpd"), consisting of 64,417 bpd at the Big Spring refinery, 28,761 bpd at the California refineries, and 53,712 bpd at the Krotz Springs refinery, compared to a combined average of 66,682 bpd in the first quarter of 2008, consisting of 29,270 bpd at the Big Spring refinery and 37,412 bpd at the California refineries. The Big Spring refinery had higher throughput in the first quarter of 2009 compared to the first quarter of 2008 primarily due to last year's fire at the Big Spring refinery. Throughput at the California refineries was lower in the first quarter of 2009 due to a planned turnaround and completion of the naphtha hydrotreater unit which will increase finished gasoline production by approximately 50%.

Gulf Coast 3-2-1 average crack spreads increased to $9.65 per barrel for the first quarter of 2009 compared to $9.42 per barrel for the first quarter of 2008. West Coast 3-2-1 average crack spreads increased to $17.92 per barrel for the first quarter of 2009 compared to $16.53 per barrel for the first quarter of 2008. The WTI/WTS crude oil differentials for the first quarter of 2009 decreased to $0.94 per barrel compared to $4.67 per barrel for the first quarter of 2008.

Asphalt margins for the first quarter of 2009 decreased to an average of ($51.48) per ton compared to $42.31 per ton for the first quarter of 2008. The lower asphalt margins were a result of a charge to cost of goods sold of $160.09 per ton in the first quarter of 2009 due to a build-up of winter fill inventories that will be sold primarily during the upcoming second and third quarters, while asphalt prices were declining. Also, the average asphalt sales price decreased 20.7% from $396.07 per ton in the first quarter of 2008 to $314.16 per ton in the first quarter of 2009 for blended asphalt and the average asphalt sales price decreased 30.2% from $177.30 per ton in the first quarter of 2008 to $123.73 per ton in the first quarter of 2009 for non-blended asphalt. The percentage decrease in asphalt sales price for both blended and non-blended asphalt was less than the 56% decrease in WTI prices for the same periods.

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, 2009 to shareholders of record as of May 29, 2009.

The Company has scheduled a conference call for Thursday, May 7, 2009, at 12:00 p.m. Eastern, to discuss the first quarter 2009 results. To access the call, please dial 800-240-4186, or 303-262-2190, 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 22, 2009, and may be accessed by calling 800-405-2236, or 303-590-3000, for international callers, and using the passcode 11130251#. A web cast archive will also be available at http://www.alonusa.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at DRG&E at 713-529-6600 or email dmw@drg-e.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon 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 primarily in West Texas and New Mexico substantially under the 7-Eleven and FINA brand names and supplies motor fuels to these stores primarily from its Big Spring refinery. In addition, Alon markets under the FINA branded name to approximately 700 additional locations.

Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.

    Contacts:  Claire A. Hart, Senior Vice President
               Alon USA Energy, Inc.
               972-367-3649

               Investors:  Jack Lascar/Sheila Stuewe
               DRG&E / 713-529-6600
               Media:  Blake Lewis
               Lewis Public Relations
               214-635-3020
               Ruth Sheetrit
               SMG Public Relations
               011-972-547-555551

-Tables to follow-

                ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED
                                EARNINGS RELEASE

    RESULTS OF OPERATIONS - FINANCIAL DATA
    (ALL INFORMATION IN THIS PRESS RELEASE, EXCEPT
     FOR BALANCE SHEET DATA AS OF DECEMBER 31, 2008
     IS UNAUDITED)
                                                 For the Three Months Ended
                                                          March 31,
                                                 --------------------------
                                                     2009           2008
                                                     ----           ----
                                                    (dollars in thousands,
                                                    except per share data)
     STATEMENT OF OPERATIONS DATA:
     Net sales (1)                                  $722,180    $1,020,763
     Operating costs and expenses:
       Cost of sales                                 539,730       968,997
       Direct operating expenses                      68,864        42,289
       Selling, general and administrative
        Expenses (2)                                  31,915        28,854
       Net costs associated with fire (3)                  -        16,462
       Depreciation and amortization (4)              22,090        13,745
                                                      ------        ------
         Total operating costs and expenses          662,599     1,070,347
                                                     -------     ---------
     Gain on disposition of assets                         -         2,311
                                                         ---         -----
     Operating income (loss)                          59,581       (47,273)
     Interest expense (5)                            (28,256)      (10,656)
     Equity earnings (losses) of investees                (3)          316
     Other income, net                                   257           745
                                                         ---           ---
     Income (loss) before income tax expense
      (benefit), non-controlling interest in
      income (loss) of subsidiaries and accumulated
      dividends on preferred stock of subsidiary      31,579       (56,868)
     Income tax expense (benefit)                     10,995       (21,093)
                                                      ------      --------
     Income (loss) before non-controlling interest
      in income (loss) of subsidiaries and
      accumulated dividends on preferred stock of
      subsidiary                                      20,584       (35,775)
     Minority interest in income (loss) of
      subsidiaries                                     1,083        (2,197)
     Accumulated dividends on preferred stock of
      subsidiary                                       2,150             -
                                                       -----           ---
     Net income (loss)                               $17,351      $(33,578)
                                                     =======     =========
     Earnings (loss) per share, basic and diluted      $0.37        $(0.72)
                                                       =====       =======
     Weighted average shares outstanding, basic
      (in thousands)                                  46,806        46,782
                                                      ======        ======

     Cash dividends per share                          $0.04         $0.04
                                                       =====         =====

     CASH FLOW DATA:
     Net cash provided by (used in):
       Operating activities                         $119,527      $(49,624)
       Investing activities                          (15,009)       16,868
       Financing activities                         (104,679)       (4,724)
     OTHER DATA:
     Adjusted net income (loss) (6)                  $17,351      $(25,198)
     Earnings (loss) per share, excluding net
      costs associated with fire, net of tax and
      after-tax gain on disposition of assets (6)      $0.37        $(0.54)
     Adjusted EBITDA (7)                              81,925       (34,778)
     Capital expenditures (8)                         10,357         9,182
     Capital expenditures to rebuild the Big
      Spring refinery                                 32,135             -
     Capital expenditures for turnaround and
      chemical catalyst                                7,363         1,609

                                                    March 31,    December 31,
                                                       2009          2008
                                                       ----          ----
    BALANCE SHEET DATA (end of period):
    Cash and cash equivalents                        $18,293       $18,454
    Working capital                                  186,869       250,384
    Total assets                                   2,407,794     2,413,433
    Total debt                                     1,002,343     1,103,569
    Total equity                                     555,583       536,867



    REFINING AND UNBRANDED MARKETING SEGMENT
                                                 For the Three Months Ended
                                                          March 31,
                                                 --------------------------
                                                   2009              2008
                                                   ----              ----
                                                   (dollars in thousands,
                                                  except per barrel data and
                                                     pricing statistics)
     STATEMENTS OF OPERATIONS DATA:
     Net sales (9)                               $586,928          $772,039
     Operating costs and expenses:
       Cost of sales                              422,994           755,957
       Direct operating expenses                   58,371            30,473
       Selling, general and administrative
        expenses                                    7,327             4,389
       Net costs associated with fire (3)               -            16,462
       Depreciation and amortization               18,037             9,630
                                                   ------             -----
         Total operating costs and expenses       506,729           816,911
                                                  -------           -------
     Gain on disposition of assets                      -             2,311
                                                      ---             -----
     Operating income (loss)                      $80,199          $(42,561)
                                                  =======         =========

     KEY OPERATING STATISTICS:
     Total unbranded sales volume (bpd)           122,459            63,707
     Per barrel of throughput:
       Refinery operating margin - Big
        Spring (10)                                $13.63             $6.54
       Refinery operating margin - CA
        Refineries (10)                              1.16             (1.80)
       Refinery operating margin - Krotz
        Springs (10)                                13.19               N/A
       Refinery direct operating expenses - Big
        Spring (11)                                  3.60              5.93
       Refinery direct operating expenses - CA
        Refineries (11)                              5.84              4.31
       Refinery direct operating expenses -
        Krotz Springs (11)                           4.63               N/A
     Capital expenditures                           9,398             7,702
     Capital expenditures to rebuild Big
      Spring refinery                              32,135                 -
     Capital expenditures for turnaround and
      chemical catalyst                             7,363             1,609

     PRICING STATISTICS:
     WTI crude oil (per barrel)                    $43.10            $98.00
     WTS crude oil (per barrel)                     42.16             93.33
     MAYA crude oil (per barrel)                    38.58             81.15
     Crack spreads (3/2/1) (per barrel):
       Gulf Coast (12)                              $9.65             $9.42
       Group III (12)                                9.72             10.10
       West Coast (12)                              17.92             16.53
     Crack spreads (6/1/2/3) (per barrel):
       West Coast (12)                              $6.21            $(0.86)
     Crack spreads (2/1/1) (per barrel):
       Gulf Coast high sulfur diesel (12)           $9.48             $9.52
     Crude oil differentials (per barrel):
       WTI less WTS (13)                            $0.94             $4.67
       WTI less MAYA (13)                            4.52             16.85
     Product price (dollars per gallon):
       Gulf Coast unleaded gasoline                $1.218            $2.431
       Gulf Coast ultra low-sulfur diesel           1.331             2.811
       Group III unleaded gasoline                  1.232             2.449
       Group III ultra low-sulfur diesel            1.309             2.823
       West Coast LA CARBOB (unleaded gasoline)     1.505             2.690
       West Coast LA ultra low-sulfur diesel        1.349             2.799
       Natural gas (per MMBTU)                      $4.47             $8.74



    THROUGHPUT AND YIELD DATA:
    BIG SPRING
                                          For the Three Months Ended
                                                  March 31,
                                         ----------------------------
                                          2009                2008
                                          ----                ----
                                     bpd        %         bpd        %
                                     ---       ---         ---      ---
    Refinery throughput:
      Sour crude                    55,452     86.1     25,034     85.6
      Sweet crude                    7,864     12.2      2,378      8.1
      Blendstocks                    1,101      1.7      1,858      6.3
                                     -----      ---      -----      ---
    Total refinery throughput (14)  64,417    100.0     29,270    100.0
                                    ======    =====     ======    =====
    Refinery production:
      Gasoline                      28,265     44.9     13,976     48.0
      Diesel/jet                    21,737     34.5      7,640     26.2
      Asphalt                        5,228      8.3      3,098     10.6
      Petrochemicals                 3,026      4.8      1,402      4.8
      Other                          4,672      7.5      3,046     10.4
                                     -----      ---      -----     ----
    Total refinery production (15)  62,928    100.0     29,162    100.0
                                    ======    =====     ======    =====
    Refinery utilization (16)                  90.5%               40.8%



    THROUGHPUT AND YIELD DATA:
    CALIFORNIA REFINERIES
                                          For the Three Months Ended
                                                   March 31,
                                          ---------------------------
                                           2009               2008
                                           ----               ----

                                      bpd        %        bpd        %
                                      ---       ---        ---      ---
    Refinery throughput:
      Sour crude                    12,225     42.5     10,702     28.6
      Heavy crude                   16,498     57.4     25,551     68.3
      Blendstocks                       38      0.1      1,159      3.1
                                       ---      ---      -----      ---
    Total refinery throughput (14)  28,761    100.0     37,412    100.0
                                    ======    =====     ======    =====
    Refinery production:
      Gasoline                       3,266     11.5      5,505     15.3
      Diesel/jet                     6,215     22.0      8,622     23.9
      Asphalt                        8,735     30.9     10,398     28.9
      Light unfinished               1,909      6.7          0      0.0
      Heavy unfinished               7,796     27.6     11,282     31.4
      Other                            370      1.3        197      0.5
                                       ---      ---        ---      ---
    Total refinery production (15)  28,291    100.0     36,004    100.0
                                    ======    =====     ======    =====
    Refinery utilization (16)                  58.5%               50.0%



    THROUGHPUT AND YIELD DATA:
    KROTZ SPRINGS

                                  For the Three Months
                                        Ended
                                       March 31,
                                 --------------------
                                          2009
                                          ----
                                     bpd         %
                                    ----       ---
    Refinery throughput:
      Light sweet crude             27,423     51.1
      Heavy sweet crude             20,083     37.4
      Blendstocks                    6,206     11.5
                                     -----     ----
    Total refinery throughput (14)  53,712    100.0
                                    ======    =====
    Refinery production:
      Gasoline                      24,449     44.7
      Diesel/jet                    24,468     44.7
      Heavy oils                       887      1.6
      Other                          4,885      9.0
                                     -----      ---
    Total refinery production (15)  54,689    100.0
                                    ======    =====
    Refinery utilization (16)                  57.2%



    ASPHALT SEGMENT
                                                For the Three Months Ended
                                                          March 31,
                                                --------------------------
                                                        2009        2008
                                                        ----        ----
                                                   (dollars in thousands,
                                                    except per ton data)
    STATEMENTS OF OPERATIONS DATA:
    Net sales                                          $50,760   $103,940
    Operating costs and expenses:
      Cost of sales (17)                                60,233     92,135
      Direct operating expenses                         10,493     11,816
      Selling, general and administrative expenses       1,154      1,386
      Depreciation and amortization                        538        532
                                                           ---        ---
        Total operating costs and expenses              72,418    105,869
                                                        ------    -------
    Operating loss                                    $(21,658)   $(1,929)
                                                     =========   ========

    KEY OPERATING STATISTICS:
    Blended asphalt sales volume (tons in thousands)
     (18)                                                  147        249
    Non-blended asphalt sales volume (tons in
     thousands) (19)                                        37         30
    Blended asphalt sales price per ton (18)           $314.16    $396.07
    Non-blended asphalt sales price per ton (19)       $123.73    $177.30
    Asphalt margin per ton (20)                        $(51.48)    $42.31
    Capital expenditures                                  $162       $213




    RETAIL AND BRANDED MARKETING SEGMENT
                                                 For the Three Months Ended
                                                           March 31,
                                                 --------------------------
                                                        2009          2008
                                                        ----          ----
                                                     (dollars in thousands,
                                                     except per gallon data)
    STATEMENTS OF OPERATIONS DATA:
    Net sales (1)                                     $167,470     $309,254
    Operating costs and expenses:
      Cost of sales (17)                               139,481      285,375
      Selling, general and administrative expenses      23,244       22,928
      Depreciation and amortization                      3,368        3,360
                                                         -----        -----
        Total operating costs and expenses             166,093      311,663
                                                       -------      -------
    Operating income (loss)                             $1,377      $(2,409)
                                                        ======     ========

    KEY OPERATING STATISTICS:
    Integrated branded fuel sales (thousands of
     gallons) (21)                                      63,646       54,158
    Integrated branded fuel margin (cents per
     gallon) (21)                                          4.7          1.8
    Non-Integrated branded fuel sales (thousands
     of gallons) (21)                                    3,146       38,269
    Non-Integrated branded fuel margin (cents
     per gallon) (21)                                     10.1         (0.2)

    Number of stores (end of period)                       306          307
    Retail fuel sales (thousands of gallons)            28,183       24,871
    Retail fuel sales (thousands of gallons per
     site per month)                                        31           27
    Retail fuel margin (cents per gallon) (22)            16.8         18.4
    Retail fuel sales price (dollars per gallon)
     (23)                                                $1.88        $3.10
    Merchandise sales                                  $63,053      $58,455
    Merchandise sales (per site per month)                  67           63
    Merchandise margin (24)                               31.7%        31.4%
    Capital expenditures                                  $219       $1,127




    (1)  Includes excise taxes on sales by the retail and branded marketing
         segment of $11,044 and $9,654 for the three months ended March 31,
         2009 and 2008, respectively.

    (2)  Includes corporate headquarters selling, general and administrative
         expenses of $190 and $151 for the three months ended March 31, 2009
         and 2008, respectively, which are not allocated to our three
         operating segments.

    (3)  Net costs associated with fire for the three months ended March 31,
         2008 includes $11,672 of expenses incurred from pipeline commitment
         deficiencies, crude sale losses and other incremental costs; $4,000
         for our insurance deductibles under the insurance policies; and $790
         for depreciation for the temporarily idled facilities.

    (4)  Includes corporate depreciation and amortization of $147 and $223 for
         the three months ended March 31, 2009 and 2008, respectively, which
         are not allocated to our three operating segments.

    (5)  Interest expense of $28,256 for the three months ended March 31, 2009
         includes $5,715 related to the unwind of the heating oil hedge.  The
         remaining increase compared to interest expense of $10,656 for the
         three months ended March 31, 2008 is primarily due to interest on
         borrowings related to the Krotz Springs refinery acquisition and
         operations.

    (6)  The following table provides a reconciliation of net income (loss)
         under United States generally accepted accounting principles ("GAAP")
         to adjusted net income (loss) utilized in determining earnings (loss)
         per common share, excluding after-tax loss on net costs associated
         with fire and after-tax gain on disposition of assets.  Our
         management believes that the presentation of adjusted net income
         (loss) and earnings (loss) per common share, excluding these after-
         tax 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,
                                                   --------------------------
                                                          2009        2008
                                                          ----        ----
                                                      (dollars in thousands,
                                                     except per share data)

     Net income (loss)                                   $17,351    $(33,578)
       Plus:  Net costs associated with fire, net of
        tax                                                    -       9,749
       Less:  Gain on disposition of assets, net of tax        -      (1,369)
                                                             ---     -------
     Adjusted net income (loss)                          $17,351    $(25,198)
                                                         =======   =========

     Weighted average shares outstanding (in
      thousands)                                          46,806      46,782
                                                          ======      ======
     Earnings (loss) per share, excluding net costs
      associated with fire, net of tax and after-tax
      gain on disposition of assets                        $0.37      $(0.54)
                                                       ========= ===========


    (7)  Adjusted EBITDA represents earnings before non-controlling
         interest in income of subsidiaries, income tax expense, interest
         expense, depreciation and amortization and gain on disposition of
         assets.  Adjusted EBITDA is not a recognized measurement under
         GAAP; however, the amounts included in Adjusted EBITDA are derived
         from amounts included in our consolidated financial statements.
         Our management believes that the presentation of Adjusted EBITDA
         is useful to investors during periods of normal operations because
         it is frequently used by securities analysts, investors, and other
         interested parties in the evaluation of companies in our industry.
         In addition, our management believes that Adjusted EBITDA is
         useful in evaluating our operating performance compared to that of
         other companies in our industry because the calculation of
         Adjusted EBITDA generally eliminates the effects of non-
         controlling interest in income of subsidiaries, income tax
         expense, interest expense, gain on disposition of assets and the
         accounting effects of capital expenditures and acquisitions, items
         that may vary for different companies for reasons unrelated to
         overall operating performance.

         Adjusted EBITDA has limitations as an analytical tool, and you should
         not consider it in isolation, or as a substitute for analysis of our
         results as reported under GAAP.  Some of these limitations are:

           -- Adjusted EBITDA does not reflect our cash expenditures or
              future requirements for capital expenditures or contractual
              commitments;
           -- Adjusted EBITDA does not reflect the interest expense or the
              cash requirements necessary to service interest or principal
              payments on our debt;
           -- Adjusted EBITDA does not reflect the prior claim that non-
              controlling interest has on the income generated by non-
              wholly-owned subsidiaries;
           -- Adjusted EBITDA does not reflect changes in or cash
              requirements for our working capital needs; and
           -- Our calculation of Adjusted EBITDA may differ from EBITDA
              calculations of other companies in our industry, limiting its
              usefulness as a comparative measure.


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

         The following table reconciles net income (loss) to Adjusted
         EBITDA for the three months ended March 31, 2009 and 2008,
         respectively:



                                                    For the Three Months Ended
                                                              March 31,
                                                    --------------------------
                                                         2009         2008
                                                         ----         ----
                                                       (dollars in thousands)

     Net income (loss)                                  $17,351    $(33,578)
     Non-controlling interest in income (loss) of
      subsidiaries (including accumulated dividends
      on preferred stock of subsidiary)                   3,233      (2,197)
     Income tax expense (benefit)                        10,995     (21,093)
     Interest expense                                    28,256      10,656
     Depreciation and amortization                       22,090      13,745
     Gain on disposition of assets                            -      (2,311)
                                                            ---     -------
     Adjusted EBITDA                                    $81,925    $(34,778)
                                                        =======   =========



         Adjusted EBITDA for the three months ended March 31, 2008 includes
         net costs associated with fire at the Big Spring refinery of $16,462.

    (8)  Includes corporate capital expenditures of $578 and $140 for the
         three months ended March 31, 2009 and 2008, respectively, which are
         not allocated to our three operating segments.

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

    (10) Refinery operating margin is a per barrel measurement calculated by
         dividing the margin between net sales and cost of sales (exclusive of
         unrealized hedging gains and losses) attributable to each refinery by
         the refinery's throughput volumes. Industry-wide refining results are
         driven and measured by the margins between refined product prices and
         the prices for crude oil, which are referred to as crack spreads. We
         compare our refinery operating margins to these crack spreads to
         assess our operating performance relative to other participants in
         our industry. There were unrealized hedging gains of $0.1 million and
         $4.8 million for the California refineries for the three months ended
         March 31, 2009 and 2008, respectively. There were unrealized hedging
         gains of $18.0 million for the Krotz Springs refinery for the three
         months ended March 31, 2009.  The Big Spring refinery had no
         unrealized hedge gains or losses for the three months ended March 31,
         2009 or 2008.

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

    (12) A 3/2/1 crack spread in a given region is calculated assuming that
         three barrels of a benchmark crude oil are converted, or cracked,
         into two barrels of gasoline and one barrel of diesel.  We calculate
         the Gulf Coast 3/2/1 crack spread using the market values of Gulf
         Coast conventional gasoline and ultra low-sulfur diesel and the
         market value of West Texas Intermediate, or WTI, a light sweet crude
         oil.  We calculate the Group III 3/2/1 crack spread using the market
         values of Group III conventional gasoline and ultra low-sulfur diesel
         and the market value of WTI crude oil.  We calculate the West Coast
         3/2/1 crack spread using the market values of West Coast LA CARB
         pipeline gasoline and LA ultra low-sulfur pipeline diesel and the
         market value of WTI crude oil. A 6/1/2/3 crack spread is calculated
         assuming that six barrels of a benchmark crude oil are converted, or
         cracked, into one barrel of gasoline, two barrels of diesel and three
         barrels of fuel oil. We calculate the West Coast 6/1/2/3 crack spread
         using the market values of West Coast LA CARB pipeline gasoline, LA
         ultra low-sulfur pipeline diesel, LA 380 pipeline CST (fuel oil) and
         the market value of WTI crude oil.  A 2/1/1 crack spread in a given
         region is calculated assuming that two barrels of a benchmark crude
         oil are converted, or cracked, into one barrel of gasoline and one
         barrel of diesel.  We calculate the Gulf Coast 2/1/1 crack spread
         using the market values of Gulf Coast conventional gasoline and No. 2
         diesel and the market value of WTI crude oil.

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

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

    (15) Total refinery production represents the barrels per day of various
         products produced from processing crude and other refinery feedstocks
         through the crude units and other conversion units at the refinery.
         Total refinery production at the Big Spring refinery for the three
         months ended March 31, 2008 was reduced due to the fire on February
         18, 2008.

    (16) Refinery utilization represents average daily crude oil throughput
         divided by crude oil capacity, excluding planned periods of downtime
         for maintenance and turnarounds. The 2008 refinery utilization at our
         Big Spring refinery was affected by the fire on February 18, 2008
         which ceased production at the refinery until limited operations were
         resumed on April 5, 2008.

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

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

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

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

    (21) Marketing sales volume represents branded fuel sales to our wholesale
         marketing customers located in both our integrated and non-integrated
         regions. The branded fuels we sell in our integrated region are
         primarily supplied by the Big Spring refinery.  Due to the fire on
         February 18, 2008 at the Big Spring refinery, more fuel was obtained
         from third-party suppliers during the three months ended March 31,
         2008. The branded fuels we sell in the non-integrated region are
         obtained from third-party suppliers. The marketing margin represents
         the margin between the net sales and cost of sales attributable to
         our branded fuel sales volume, expressed on a cents-per-gallon basis.

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

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

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

SOURCE Alon USA Energy, Inc.