Alon USA Energy, Inc.

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Press Releases

Alon USA Reports Fourth Quarter and Year-End 2007 Results

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Company schedules conference call for March 6, 2008 at 10:00 A.M. Eastern

DALLAS, March 5 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon") today announced results for the quarter ended December 31, 2007. Net loss for the fourth quarter of 2007 was ($39.9) million, or ($0.85) per share, compared to net income of $22.0 million, or $0.47 per share, for the same period last year. Excluding special items, Alon recorded a net loss of ($41.5) million, or ($0.89) per share, for the fourth quarter of 2007, compared to net income of $26.0 million, or $0.56 per share, for the same period last year.

Net income for the year ended December 31, 2007 was $103.9 million, or $2.22 per share, compared to $157.4 million, or $3.37 per share, for the same period last year. Excluding special items, net income for the year ended December 31, 2007 was $99.5 million, or $2.13 per share, compared to $138.5 million, or $2.96 per share, for the same period last year.

Jeff Morris, Alon's President and CEO, commented, "The fourth quarter was a challenging quarter as earnings were negatively affected by record crude oil prices, which resulted in the worst quarter in the history of the company. However, 2007 was the second best year in the history of the company. In 2007 we set throughput records at each of our refineries and reached new sales levels in both our asphalt and convenience retail segments. We believe that the overall increase in sales by almost 50% year over year is a reflection of the potential and the future growth of our company."

Mr. Morris added, "On February 18, 2008, the Big Spring Refinery experienced a major fire. We believe we are adequately insured and are aggressively working to re-establish production at the facility. We are very proud of the performance of all Big Spring personnel and emergency responders which helped to limit the severity of injuries and damage to our equipment. Importantly, no major vessels, compressors, or motors will require replacement. We are currently ahead of our own internal schedule and continue to be optimistic about returning to the first stage of operation, producing gasoline, diesel and asphalt by the end of March.

"We are continuing to progress on our announced hydrotreater and mild hydrocracker projects at our California refineries and expect to complete these projects on schedule. In addition, our board of directors has approved plans for an initial public offering related to our retail and marketing businesses which we will seek to complete by year end. Our board of directors has also instructed us to continue to pursue the M&A activities we are currently evaluating. In sum, while we will be working hard to repair our Big Spring refinery, these efforts will not lessen our focus on opportunities to further our growth strategies."

Fourth Quarter 2007

Special items for the fourth quarter of 2007 included $1.6 million of after-tax gain recognized on the disposition of assets in connection with the contribution of certain pipeline and terminal assets to Holly Energy Partners, L.P., in the first quarter of 2005 (the "HEP Contribution"). Special items for the fourth quarter of 2006 included $6.0 million aggregate after-tax inventories adjustments related to the refinery acquisitions of Paramount Petroleum Corporation ("Paramount") and Edgington Oil Company ("Edgington") in the third quarter of 2006 and $2.0 million of after-tax gain recognized in the HEP Contribution.

The combined refineries throughput for the fourth quarter of 2007 averaged 124,376 barrels per day ("bpd"), consisting of an average of 66,633 bpd at the Big Spring refinery and an average of 57,743 bpd at the California refineries compared to the combined refineries throughput for the fourth quarter of 2006 of 125,584 bpd, consisting of an average of 65,931 bpd at the Big Spring refinery and 59,653 bpd at the California refineries. The lower throughput volumes for the California refineries in the fourth quarter of 2007 was due to reduced rates caused by lower refining margins.

Earnings in the fourth quarter of 2007 compared to the fourth 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 fourth quarter of 2007 were ($9.03) per ton compared to $44.34 per ton in the fourth quarter of 2006. The decrease in asphalt margins is primarily due to increased crude oil prices in the fourth quarter of 2007. Refinery operating margins at the California refineries in the fourth quarter of 2007 were ($5.28) per barrel compared to $6.21 per barrel in the fourth quarter of 2006. West Coast 3-2-1 crack spreads decreased to an average of $16.92 per barrel for the fourth quarter of 2007 compared to an average of $18.90 per barrel for the fourth quarter of 2006. The California refineries operating margins were also negatively impacted by increased crude oil prices. The Big Spring refinery operating margin for the fourth quarter of 2007 was $4.88 per barrel compared to $10.17 per barrel for the fourth quarter of 2006. The Big Spring refinery operating margin was lower for the fourth quarter of 2007 primarily due to operational issues related to the catalytic reformer that were remediated during the scheduled turnaround in January 2008 and higher crude prices. Gulf Coast 3-2-1 crack spreads decreased to an average of $7.94 per barrel for the fourth quarter of 2007 compared to an average of $8.54 per barrel for the fourth quarter of 2006.

Year-End 2007

Special items for the year ended December 31, 2007 included $4.4 million of after-tax gain recognized on disposition of assets in connection with the HEP Contribution. Special items for the year ended December 31, 2006 included: $38.9 million of aggregate after-tax gains resulting from the sale of Alon's inactive Amdel and White Oil crude oil pipelines in the first quarter of 2006 and from the HEP Contribution; $5.8 million of aggregate after-tax interest expense resulting from the prepayment of debt; $12.5 million of after-tax inventories adjustments related to the acquisitions of Paramount and Edgington; and a $1.8 million after-tax charge for special employee bonuses.

The combined refineries throughput for the year ended December 31, 2007 averaged 129,907 bpd, consisting of an average of 68,145 bpd at the Big Spring refinery and an average of 61,762 bpd at the California refineries compared to an average of 65,413 bpd at the Big Spring refinery for the year ended December 31, 2006 and an average of 60,066 bpd at the California refineries from their acquisition in the third quarter of 2006 through December 31, 2006.

Earnings for the year ended December 31, 2007 compared to the year ended December 31, 2006 decreased primarily as a result of the Big Spring catalytic reformer issue discussed above and lower asphalt margins. The Big Spring refinery operating margin for the year ended December 31, 2007 was $13.96 per barrel compared to $13.72 per barrel for the same period in 2006. Gulf Coast 3-2-1 crack spreads increased to an average of $15.00 per barrel for the year ended December 31, 2007 compared to an average of $12.48 per barrel for the year ended December 31, 2006. Refinery operating margins at the California refineries for the year ended December 31, 2007 were $2.54 per barrel compared to $3.50 per barrel from their acquisition in the third quarter of 2006 through December 31, 2006. This decrease in refinery operating margins was primarily due to the increase in crude oil prices. West Coast 3-2-1 crack spreads increased to an average of $27.37 per barrel for the year ended December 31, 2007 compared to an average of $24.30 per barrel for the year ended December 31, 2006. Asphalt margins for the year ended December 31, 2007 were $26.07 per ton compared to $37.12 per ton for the year ended December 31, 2006.

Conference Call

Alon has scheduled a conference call for Thursday, March 6, 2008, at 10:00 a.m. Eastern, to discuss the fourth quarter and year-end 2007 results. To access the call, please dial (800) 240-4186, or (303) 262-2140, 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 call 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 March 20, 2008 and may be accessed by calling (800) 405-2236, or (303) 590-3000, for international callers, and using the passcode 11107168. 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 primarily from its Big Spring refinery. In addition, Alon supplies approximately 780 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.

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

                              -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 AND
    INCOME STATEMENT DATA FOR THE YEAR ENDED
    DECEMBER 31, 2006 IS UNAUDITED)

                            For the Three Months Ended  For the Year Ended
                                     December 31,          December 31,
                                   2007       2006       2007       2006
                              (dollars in thousands, except per share data)
    STATEMENT OF OPERATIONS
     DATA:
    Net sales                   $1,146,694  $837,636  $4,542,151  $3,093,890
    Operating costs and
     expenses:
       Cost of sales             1,122,425   712,403   3,999,287   2,627,321
       Direct operating expenses    48,825    48,263     201,196     129,277
       Selling, general and
        administrative
        expenses (1)                30,219    24,834     105,352      86,939
       Depreciation and
        amortization (2)            14,760    13,792      57,403      34,274
          Total operating costs
           and expenses          1,216,229   799,292   4,363,238   2,877,811
    Gain on disposition of
     assets (3)                      2,618     3,286       7,206      63,255
    Operating income (loss)        (66,917)   41,630     186,119     279,334
    Interest expense (4)           (11,873)  (10,507)    (47,747)    (30,658)
    Equity earnings of investees     1,106       986      11,177       3,161
    Other income, net                1,637     1,492       6,565       7,740
    Income (loss) before income
     tax expense (benefit) and
     minority interest in income
     (loss) of subsidiaries        (76,047)   33,601     156,114     259,577
    Income tax expense (benefit)   (33,583)   10,616      46,199      93,968
    Income (loss) before minority
     interest in income (loss) of
     subsidiaries                  (42,464)   22,985     109,915     165,609
    Minority interest in income
     (loss) of subsidiaries         (2,595)    1,015       5,979       8,241
    Net income (loss)             $(39,869)  $21,970    $103,936    $157,368

    Earnings (loss) per share,
     basic                          $(0.85)    $0.47       $2.22       $3.37

    Weighted average shares
     outstanding (in thousands)     46,775    46,751      46,763      46,738
    Cash dividends per share         $0.04     $0.04       $0.16       $3.03

    CASH FLOW DATA:
    Net cash provided by (used in):
       Operating activities       $(49,645)  $54,549    $123,950    $142,977
       Investing activities          3,330   (19,455)   (147,254)   (421,070)
       Financing activities         (4,496)  (14,841)     27,753     205,439
    OTHER DATA:
    Adjusted net income
     (loss) (5)                   $(41,479)  $26,022     $99,504    $138,545
    Earnings (loss) per share,
     excluding after-tax gain
     on disposition of assets,
     interest expense related
     to the prepayment of debt,
     net of tax, inventories
     adjustments related to
     acquisitions, net of tax
     and special employee bonus
     payment, net of tax (5)        $(0.89)    $0.56       $2.13       $2.96
    Adjusted EBITDA (6)           $(52,032)  $54,614    $254,058    $261,254
    Capital expenditures (7)        13,335    12,454      42,204      39,832
    Capital expenditures for
     turnarounds and chemical
     catalyst                          485       950       9,842       3,940

                                                     December 31, December 31,
                                                         2007         2006
    BALANCE SHEET DATA (end of period):
    Cash, cash equivalents and
     short-term investments                              $95,911     $64,166
    Working capital                                      279,580     228,779
    Total assets                                       1,581,386   1,408,785
    Total debt                                           536,615     498,669
    Total stockholders' equity                           387,767     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
        five months in the results of operations for the year ended
        December 31, 2006.  The Edgington Oil Company refinery was acquired on
        September 28, 2006 and, therefore, comparable data related to this
        refinery is included for three months in the results of operations for
        the year ended December 31, 2006.



    REFINING AND MARKETING SEGMENT (B)
                                     For the Three            For the
                                     Months Ended            Year Ended
                                     December 31,            December 31,
                                   2007        2006        2007       2006
                                      (dollars in thousands, except per
                                      barrel data and pricing statistics)
    STATEMENT OF OPERATIONS DATA:
    Net sales (8)               $1,067,471   $853,154  $4,128,153 $2,744,943
    Operating costs and
     expenses:
       Cost of sales             1,065,099    765,639   3,720,870  2,385,080
       Direct operating expenses    36,634     39,339     154,267    108,673
       Selling, general and
        administrative expenses      6,717      7,505      28,141     21,375
       Depreciation and
        amortization                11,180     10,483      46,628     24,961
          Total operating costs
           and expenses          1,119,630    822,966   3,949,906  2,540,089
    Gain on disposition of
     assets (3)                      2,589      3,282       7,138     63,251
    Operating income (loss)       $(49,570)   $33,470    $185,385   $268,105

    KEY OPERATING STATISTICS:
    Total sales volume (bpd)       108,274    132,436     125,585    131,662
    Non-integrated marketing
     sales volume (bpd) (9)         10,906     15,615      13,346     17,995
    Non-integrated marketing
     margin (per barrel sales
     volume) (9)                     $0.52      $0.75       $0.56     $(0.47)
    Per barrel of throughput:
       Refinery operating margin -
        Big Spring (10)              $4.88     $10.17      $13.96     $13.72
       Refinery operating margin -
        CA Refineries (10) (17)      (5.28)      6.21        2.54       3.50
       Refinery direct operating
        expenses - Big Spring (11)    4.29       4.23        3.67       3.63
       Refinery direct operating
        expenses - CA Refineries
        (11)(17)                      1.95       2.50        2.79       2.38
    Capital expenditures             9,244      5,051      29,498     27,740
    Capital expenditures for
     turnaround and chemical
     catalysts                         485        950       9,842      3,940

    PRICING STATISTICS:
    WTI crude oil (per barrel)      $90.61     $59.39      $72.32     $66.06
    WTS crude oil (per barrel)       84.45      54.54       67.32      60.91
    MAYA crude oil (per barrel)      75.67      46.96       59.86      51.26
    Crack spreads (3/2/1)
     (per barrel):
       Gulf Coast (12)               $7.94      $8.54      $15.00     $12.48
       Group III (12)                 9.77       9.94       19.41      14.37
       West Coast (12)               16.92      18.90       27.37      24.30
    Crack spreads (6/1/2/3)
     (per barrel):
       West Coast (12)               $1.71      $2.50       $6.33      $3.66
    Crude oil differentials
     (per barrel):
       WTI less WTS (13)             $6.16      $4.85       $5.00      $5.15
       WTI less MAYA (13)            14.94      12.43       12.46      14.74
    Product price (dollars per
     gallon):
       Gulf Coast unleaded gasoline $2.256     $1.540      $2.045     $1.829
       Gulf Coast low-sulfur diesel  2.527      1.772       2.147      1.951
       Group III unleaded gasoline   2.302      1.561       2.160      1.866
       Group III low-sulfur diesel   2.567      1.829       2.233      2.014
       West Coast LA CARBOB
        (unleaded gasoline)          2.548      1.872       2.442      2.196
       West Coast LA ultra
        low-sulfur diesel            2.585      1.888       2.237      2.060
       Natural gas (per MMBTU)       $7.39      $7.24       $7.12      $6.98


    (B) Following the acquisitions of the California refineries and asphalt
        assets, we 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       For the Year Ended
                              December 31,                 December 31,
                           2007          2006          2007          2006
                       bpd      %     bpd     %    bpd      %     bpd     %
    Refinery crude
     throughput:
      Sour crude     57,498   86.3  59,383  90.1  58,607  86.0  58,529   89.4
      Sweet crude     4,557    6.8   2,850   4.3   5,017   7.4   2,987    4.6
      Blendstocks     4,578    6.9   3,698   5.6   4,521   6.6   3,897    6.0
    Total refinery
     throughput
     (14)            66,633  100.0  65,931 100.0  68,145 100.0  65,413  100.0
    Refinery
     production:
      Gasoline       33,763   51.2  31,249  48.1  32,135  47.5  29,671   46.0
      Diesel/jet     17,793   27.0  19,785  30.5  19,676  29.1  20,651   32.0
      Asphalt         7,639   11.6   5,691   8.8   7,620  11.3   6,147    9.5
      Petrochemicals  3,406    5.2   4,834   7.4   3,980   5.9   4,465    6.9
      Other           3,277    5.0   3,351   5.2   4,190   6.2   3,627    5.6
    Total refinery
     production
     (15)            65,878  100.0  64,910 100.0  67,601 100.0  64,561  100.0
    Refinery
     Utilization
     (16)                     88.6%         88.9%         92.5%          90.8%


    THROUGHPUT AND YIELD
    DATA:
    CALIFORNIA REFINERIES
                              For the Three         For the         For the
                              Months Ended         Year Ended     Period Ended
                              December 31,         December 31,   December 31,
                           2007          2006          2007           2006
                       bpd      %     bpd     %     bpd     %     bpd      %
    Refinery crude
     throughput:
       Sour crude    14,577   25.2  37,422  62.7  20,839  33.7  37,171   61.9
       Heavy crude   42,410   73.4  21,615  36.2  40,700  65.9  22,533   37.5
       Blendstocks      756    1.3     616   1.0     223   0.4     362    0.6
    Total refinery
     throughput
     (14)(17)        57,743  100.0  59,653 100.0  61,762 100.0  60,066  100.0
    Refinery
     production:
       Gasoline       7,269   12.9   7,555  13.1   7,318  12.1   6,806   11.6
       Diesel/jet    12,319   21.9  10,922  18.9  13,360  22.1  11,026   18.9
       Asphalt       17,717   31.5  18,928  32.7  19,006  31.5  19,500   33.3
       Light
        unfinished    2,252    4.0   6,144  10.6   3,071   5.1   6,144   10.5
       Heavy
        unfinished   16,616   29.5   2,507   4.4  16,793  27.9   2,938    5.0
       Other            133    0.2  11,714  20.3     793   1.3  12,126   20.7
    Total refinery
     production
     (15)(17)        56,306  100.0  57,770 100.0  60,341 100.0  58,540  100.0
    Refinery
     Utilization
     (16)                     79.9%         83.8%         85.9%          83.8%



    ASPHALT SEGMENT             For the Three Months Ended  For the Year Ended
                                       December 31,            December 31,
                                     2007       2006         2007       2006
                                   (dollars in thousands, except per ton data)
    STATEMENT OF OPERATIONS DATA:
    Net sales                      $136,429   $166,766   $642,937   $389,634
    Operating costs and expenses:
       Cost of sales (18)           139,987    146,368    592,709    346,839
       Direct operating expenses     12,191      8,924     46,929     20,604
       Selling, general and
        administrative expenses         651      1,221      2,825      8,773
       Depreciation and
        amortization                    533      1,791      2,145      2,247
          Total operating costs
           and expenses             153,362    158,304    644,608    378,463
    Operating income (loss)        $(16,933)    $8,462    $(1,671)   $11,171

    KEY OPERATING STATISTICS:
    Number of terminals
     (end of period)                     12         12         12         12
    Asphalt sales volume
     (thousands of tons)                394        460      1,927      1,153
    Average sales price per ton     $346.27    $362.53    $333.65    $337.93
    Asphalt margin per ton (19)      $(9.03)    $44.34     $26.07     $37.12
    Capital expenditures               $512     $1,756     $2,167     $3,156


    RETAIL SEGMENT              For the Three Months Ended  For the Year Ended
                                        December 31,           December 31,
                                      2007       2006        2007       2006
                                 (dollars in thousands, except per gallon data)
    STATEMENT OF OPERATIONS DATA:
    Net sales                      $142,519    $87,197   $481,797   $351,493
    Operating costs and expenses:
       Cost of sales (18)           117,064     69,877    396,444    287,582
       Selling, general and
        administrative expenses      22,675     15,941     73,863     56,280
       Depreciation and amortization  2,770      1,262      7,724      5,453
          Total operating costs
           and expenses             142,509     87,080    478,031    349,315
    Gain on disposition of assets        29          4         68          4
    Operating income                    $39       $121     $3,834     $2,182

    KEY OPERATING STATISTICS:
    Number of stores (end of period)    307        206        307        206
    Fuel sales (thousands of
     gallons)                        26,872     20,121     91,946     75,969
    Fuel sales (thousands of
     gallons per site per
     month) (20)                         30         33         30         34
    Fuel margin (cents per
     gallon) (21)                      20.0       14.9       19.0       16.0
    Fuel sales price (dollars per
     gallon) (22)                     $2.97      $2.24      $2.82      $2.55
    Merchandise sales               $63,351    $42,172   $221,640   $157,468
    Merchandise sales (per site
     per month) (20)                     69         68         72         70
    Merchandise margin (23)           31.7%      34.0%      30.6%      32.9%
    Capital expenditures             $3,014     $5,621     $8,968     $8,748



    (1)  Includes corporate headquarters selling, general and administrative
         expenses of $176 and $167 for the three months ended December 31,
         2007 and 2006, respectively, and $523 and $511 for the years ended
         December 31, 2007 and 2006, respectively, which are not allocated to
         our three operating segments.

    (2)  Includes corporate depreciation and amortization of $277 and $256 for
         the three months ended December 31, 2007 and 2006, respectively, and
         $906 and $1,613 for the years ended December 31, 2007 and 2006,
         respectively, which are not allocated to our three operating segments.

    (3)  Gain on disposition of assets reported for the three months and year
         ended December 31, 2007 reflects the recognition of $2,618 and $7,206,
         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 for the year ended December 31,
         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 $10,755 deferred gain recorded primarily in
         connection with the HEP transaction. Deferred gain recorded primarily
         in connection with the HEP transaction for the fourth quarter 2006
         was $3,286.

    (4)  Interest expense for the year ended December 31, 2006 includes $3,600
         of prepayment premiums and $6,094 of unamortized debt issuance costs
         written off as a result of prepayments of $100,000 term loan in
         January 2006 and $30,200 of retail debt in July 2006.

    (5)  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 per
         common share, excluding the after-tax gain on disposition of assets,
         the after-tax interest expense related to prepayments of debt, the
         after-tax inventories adjustments related to acquisitions and the
         after-tax special employee bonus payment.  Adjusted net income (loss)
         is not a recognized measurement under GAAP; however, the amounts
         included in adjusted net income (loss) are calculated based on
         amounts included in our consolidated financial statements.   Our
         management believes that the presentation of adjusted net income
         (loss) 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     Year Ended
                                         December 31,        December 31,
                                        2007      2006      2007      2006
                              (dollars in thousands, except earnings per share)
    Net income (loss)                $(39,869)  $21,970  $103,936  $157,368
    Plus: Interest expense
     related to prepayments of
     debt, net of tax                       -         -         -     5,866
    Plus: Inventories adjustments
     related to acquisitions, net of tax    -     6,074         -    12,459
    Plus: Special employee bonus
     payment, net of tax                    -         -         -     1,780
    Less: Gain on disposition of
     assets, net of tax                (1,610)   (2,022)   (4,432)  (38,928)
    Adjusted net income (loss)       $(41,479)  $26,022   $99,504  $138,545

    Weighted average common
     equivalent shares outstanding     46,775    46,751    46,763    46,738
    Earnings (loss) per share,
     excluding after-tax gain on
     disposition of assets, interest
     expense related to prepayments
     of debt, net of tax, inventories
     adjustments related to
     acquisitions, net of tax
     and special employee bonus
     payment, net of tax               $(0.89)    $0.56     $2.13     $2.96



    (6)  Adjusted EBITDA represents earnings before minority interest in
         income (loss) of subsidiaries, income tax expense (benefit), interest
         expense, depreciation, amortization and gain on disposition of assets.
         Adjusted EBITDA is not a recognized measurement under GAAP; however,
         the amounts included in Adjusted EBITDA are derived from amounts
         included in our consolidated financial statements.  Our management
         believes that the presentation of Adjusted EBITDA is useful to
         investors because it is frequently used by securities analysts,
         investors and other interested parties in the evaluation of companies
         in our industry.  In addition, our management believes that Adjusted
         EBITDA is useful in evaluating our operating performance compared to
         that of other companies in our industry because the calculation of
         Adjusted EBITDA generally eliminates the effects of 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 Adjusted
            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 months and year ended December 31, 2007 and 2006,
         respectively:


                                          For the Three        For the
                                          Months Ended        Year Ended
                                          December 31,        December 31,
                                         2007      2006      2007      2006
                                              (dollars in thousands)
    Net income (loss)                 $(39,869)  $21,970  $103,936  $157,368
    Minority interest in income
     (loss) of subsidiaries             (2,595)    1,015     5,979     8,241
    Income tax expense (benefit)       (33,583)   10,616    46,199    93,968
    Interest expense                    11,873    10,507    47,747    30,658
    Depreciation and amortization       14,760    13,792    57,403    34,274
    Gain on disposition of assets       (2,618)   (3,286)   (7,206)  (63,255)
    Adjusted EBITDA                   $(52,032)  $54,614  $254,058  $261,254


    (7)  Includes corporate capital expenditures of $565 and $26 for the three
         months ended December 31, 2007 and 2006, respectively, and $1,571 and
         $188 for the years ended December 31, 2007 and 2006, respectively,
         which are not included in our three operating segment capital
         expenditures.

    (8)  Net sales include inter-segment sales to our asphalt and retail
         segments at prices which are intended to approximate wholesale market
         prices.  These inter-segment sales are eliminated through
         consolidation of our financial statements. Net sales for the year
         ended December 31, 2006 include $3,300 for the sale of sulfur credits.

    (9)  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.  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 for our Big Spring refinery is a per barrel
         measurement calculated by dividing the margin between net sales
         (exclusive of sale of sulfur credits for $3,300 for the year ended
         December 31, 2006) and cost of sales attributable to our refining and
         marketing segment, exclusive of net sales and cost of sales relating
         to our non-integrated system, by our Big Spring 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.  The
         refinery operating margin for our California refineries is calculated
         by dividing the margin between the net sales and cost of sales by the
         throughput volumes at the California refineries.  The 2006 refinery
         operating margin for the California refineries includes a charge of
         $19,987 to cost of sales for inventories adjustments related to
         acquisitions.

    (11) Refinery direct operating expenses 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 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 low-sulfur diesel and the market
         value of WTI crude oil.  We calculate the Group III 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. 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.

    (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 aggregate volume of crude
         oil and blendstock used in the refinery production process.

    (15) Total refinery production represents the barrels per day of various
         finished products produced from processing crude oil and other
         refinery feedstocks through the crude units and other conversion
         units at the applicable 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) Total refinery throughput and production data includes our Paramount
         refinery for the period from August 1, 2006 through December 31, 2006
         and our Long Beach refinery for the period September 28, 2006 through
         December 31, 2006.

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

    (19) Asphalt margin represents the difference between asphalt sales and
         the related net cost of purchased asphalt, including transportation
         costs and discounts divided by asphalt sales volume. Asphalt margins
         are used in the asphalt industry to measure operating results related
         to asphalt sales.

    (20) Fuel and merchandise sales per site for the year ended December 31,
         2007 were calculated using 206 stores for six months and 307 stores
         for six months due to the acquisition of Skinny's, Inc. on June 29,
         2007. Fuel and merchandise sales per site for the year ended
         December 31, 2006 were calculated using 167 stores for six months and
         206 stores for six months due to the Good Time Stores acquisition on
         July 3, 2006.

    (21) Fuel margin represents the difference between motor fuel revenues and
         the net cost of purchased 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.

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

    (23) 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.