Alon USA Reports Third Quarter Results

                    Alon USA Reports Third Quarter Results

Declares Quarterly Cash Dividend

Company schedules conference call for November 7, 2012 at 9:00 a.m. Eastern

PR Newswire

DALLAS, Nov. 5, 2012

DALLAS, Nov. 5, 2012 /PRNewswire/ --Alon USA Energy, Inc. (NYSE: ALJ)
("Alon") today announced results for the third quarter of 2012. Net income for
the third quarter of 2012 was $43.2 million, or $0.76 per share, compared to
net income of $28.6 million, or $0.51 per share, for the same period last
year. Excluding special items, Alon recorded net income of $47.6 million, or
$0.84 per share, for the third quarter of 2012, compared to net income of
$39.0 million, or $0.70 per share, for the same period last year.

Net income for the first nine months of 2012 was $56.9 million, or $1.01 per
share, compared to net income of $55.4 million, or $1.00 per share, for the
same period last year. Excluding special items, Alon recorded net income of
$91.3 million, or $1.62 per share, for the first nine months of 2012, compared
to net income of $74.5 million, or $1.35 per share, for the same period last
year.

Paul Eisman, CEO and President, commented, "We are pleased with our third
quarter results, and the positive impact these results are having on our
balance sheet. The Company continues to benefit from good operations in a
positive margin environment. During the third quarter, we increased throughput
at each of our refineries versus the second quarter, and also realized
increased sales in both Asphalt Marketing and Alon Brands. We generated very
favorable operating margins of $28.19 per barrel at our Big Spring Refinery
and $11.28 per barrel at our Krotz Springs Refinery. In Krotz Springs we
processed on average a record of over 23,000 barrels per day of WTI.

"During the third quarter, we generated over $100 million of cash flow from
operating activities, which was used to reduce total debt by $75 million. We
were able to achieve this even though our reported results for the quarter
were negatively impacted by $39 million of losses on commodity swap hedge
positions comprised of $34 million of realized losses and $5 million of
unrealized losses.

"We filed an amendment to the Form S-1 of Alon USA Partners, LP. We intend to
use the net proceeds of the offering to reduce our outstanding indebtedness.

"California remains challenging from an asphalt refining perspective, as low
demand and value for produced asphalt in a high cost West Coast crude
environment led to disappointing financial results. We are currently
evaluating alternatives to improve the short and long term profitability of
our California refining operations. With the end of the asphalt season, we are
suspending refining operations in California. As mentioned last quarter, we
have submitted permit applications to ship via rail lighter mid-continent
crudes to replace the heavier West Coast crudes currently used in the
California system. We expect to receive these permits, as well as to complete
required infrastructure build out and to enter into the required supply
arrangements, by the fourth quarter of 2013.

"For the fourth quarter of 2012, we expect the average throughput at the Big
Spring refinery to be approximately 71,000 barrels per day and 74,000 barrels
per day at the Krotz Springs refinery. At Krotz Springs, we expect to process
25,000 barrels per day of WTI increasing to 30,000 barrels per day of WTI by
year end."

THIRD QUARTER 2012

Special items reduced earnings by $4.4 million for the third quarter of 2012
which included after-tax losses of $2.8 million associated with unrealized
losses on commodity swaps and $1.6 million associated with loss recognized on
disposition of assets. Special items reduced earnings by $10.4 million for the
third quarter of 2011 which primarily included an after-tax loss associated
with heating oil call option crack spread contracts.

Refinery operating margin at the Big Spring refinery was $28.19 per barrel for
the third quarter of 2012 compared to $23.05 per barrel for the same period in
2011. This increase is mainly due to higher Gulf Coast 3/2/1 crack spreads and
a widening sweet/sour spread. Refinery operating margin at the California
refineries was $0.12 per barrel for the third quarter of 2012, compared to
$3.64 per barrel for the same period in 2011. This decrease is mainly due to
the cost of crude oil used by the refinery. The Krotz Springs refinery
operating margin was $11.28 per barrel for the third quarter of 2012, compared
to $7.77 per barrel for the same period in 2011. This increase is mainly due
to lower crude oil costs with the addition of WTI priced crude oils and higher
Gulf Coast 2/1/1 high sulfur diesel crack spreads.

The refineries' combined refinery throughput for the third quarter of 2012
averaged 171,086 barrels per day ("bpd"), consisting of 69,563 bpd at the Big
Spring refinery, 32,298 bpd at the California refineries, and 69,225 bpd at
the Krotz Springs refinery, compared to 162,214 bpd for the third quarter of
2011, consisting of 56,828 bpd at the Big Spring refinery, 39,056 bpd at the
California refineries, and 66,330 bpd at the Krotz Springs refinery.

The average Gulf Coast 3/2/1 crack spread for the third quarter of 2012 was
$31.76 per barrel compared to $31.28 per barrel for the same period in 2011.
The average West Coast 3/1/1/1 crack spread for the third quarter of 2012 was
$14.40 per barrel compared to $11.22 per barrel for the same period in 2011.
The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the third
quarter of 2012 was $15.91 per barrel compared to $12.44 per barrel for the
same period in 2011.

The average WTI to WTS spread for the third quarter of 2012 was $3.34 per
barrel compared to $0.82 per barrel for the same period in 2011. The average
LLS to WTI spread for the third quarter of 2012 was $15.02 per barrel compared
to $18.87 per barrel for the same period in 2011. The average WTI to Buena
Vista spread for the third quarter of 2012 was $(14.14) per barrel compared to
$(17.52) per barrel for the same period in 2011.

Asphalt margins for the third quarter of 2012 were $25.49 per ton compared to
$25.68 per ton for same period in 2011. On a cash basis (i.e. excluding
inventory effects), asphalt margins in the third quarter of 2012 were $37.13
per ton compared to $23.07 per ton in the third quarter of 2011. This increase
is due primarily to higher asphalt sales prices. The average blended asphalt
sales price increased 21.8% from $540.07 per ton in the third quarter of 2011
to $657.68 per ton in the third quarter of 2012 and the average non-blended
asphalt sales price increased 2.3% from $383.87 per ton in the third quarter
of 2011 to $392.76 per ton in the third quarter of 2012.

Retail fuel sales volume increased by 7.9% from 40.8 million gallons in the
third quarter of 2011 to 44.0 million gallons in the third quarter of 2012.
Our branded fuel sales volume increased by 5.9% from 95.2 million gallons in
the third quarter of 2011 to 100.8 million gallons in the third quarter of
2012.

Also impacting earnings for the third quarter of 2012 was pre-tax realized
losses on commodity swaps of $33.8 million. There were no significant realized
losses on commodity swaps for the third quarter of 2011.

YEAR-TO-DATE 2012

Special items reduced earnings by $34.3 million for the first nine months of
2012 which included after-tax losses of $22.4 million associated with
unrealized losses on commodity swaps, $4.4 million associated with heating oil
call option crack spread contracts, $5.8 million associated with the write-off
of unamortized original issuance discount due to the repayment of the Alon
Brands term loan and $1.7 million associated with loss recognized on
disposition of assets. Special items reduced earnings by $19.1 million for the
first nine months of 2011 which included primarily an after-tax loss of $32.7
million associated with heating oil call option crack spread contracts and an
after-tax gain of $13.5 million associated with a reduction in system
inventories.

Refinery operating margin at the Big Spring refinery was $23.85 per barrel for
the first nine months of 2012 compared to $20.67 per barrel for the same
period in 2011. This increase is primarily due to higher Gulf Coast 3/2/1
crack spreads and a widening of the sweet/sour spread. Refinery operating
margin at the California refineries was $1.60 per barrel for the first nine
months of 2012, compared to $(0.16) per barrel for the same period in 2011.
This increase is mainly due to an increase in West Coast 3/1/1/1 crack
spreads. Refinery operating margin at the Krotz Springs refinery was $7.55 per
barrel for the first nine months of 2012 compared to $5.61 per barrel for the
same period in 2011. This increase is mainly due to lower crude oil costs with
the addition of WTI priced crude oils and higher Gulf Coast 2/1/1 high sulfur
diesel crack spreads.

The refineries' combined throughput for the first nine months of 2012 averaged
155,769 bpd, consisting of 67,884 bpd at the Big Spring refinery, 21,472 bpd
at the California refineries and 66,413 bpd at the Krotz Springs refinery
compared to 144,515 bpd in the first nine months of 2011, consisting of 60,889
bpd at the Big Spring refinery, 21,357 bpd at the California refineries and
62,269 bpd at the Krotz Springs refinery. The California refineries were not
in operation for the first quarter of 2012 and 2011.

The average Gulf Coast 3/2/1 crack spread for the first nine months of 2012
was $27.54 per barrel compared to $24.53 per barrel for the same period in
2011. The average West Coast 3/1/1/1 crack spread for the first nine months of
2012 was $12.84 per barrel compared to $11.09 per barrel for the same period
in 2011. The average Gulf Coast 2/1/1 high sulfur diesel crack spread for the
first nine months of 2012 was $12.05 per barrel compared to $9.87 per barrel
for the first nine months of 2011.

The average WTI to WTS spread for the first nine months of 2012 was $4.09 per
barrel compared to $2.47 per barrel for the first nine months of 2011. The
average LLS to WTI spread for the first nine months of 2012 was $15.25 per
barrel compared to $14.55 per barrel for the same period in 2011. The average
WTI to Buena Vista spread for the first nine months of 2012 was $(13.97) per
barrel compared to $(11.20) per barrel for the same period in 2011.

Asphalt margins in the first nine months of 2012 increased to $46.76 per ton
compared to $15.99 per ton in the first nine months of 2011. On a cash basis,
asphalt margins in the first nine months of 2012 were $31.10 per ton compared
to $12.86 per ton in the first nine months of 2011. This increase was
primarily due to asphalt sales prices increasing more than crude oil costs.
The average blended asphalt sales price increased 15.5% from $539.52 per ton
in the first nine months of 2011 to $623.24 per ton in the first nine months
of 2012 and the average non-blended asphalt sales price increased 12.9% from
$337.82 per ton in the first nine months of 2011 to $381.49 per ton in the
first nine months of 2012. The average price for Buena Vista crude increased
3.3%, from $106.62 per barrel in the first nine months of 2011 to $110.14 per
barrel in the first nine months of 2012.

Retail fuel sales volume increased by 9.4% from 115.9 million gallons in the
first nine months of 2011 to 126.8 million gallons in the first nine months of
2012. Our branded fuel sales volume increased by 6.8% from 272.1 million
gallons in the first nine months of 2011 to 290.7 million gallons in the first
nine months of 2012.

Also impacting earnings for the first nine months of 2012 was pre-tax realized
losses on commodity swaps of $68.3 million. There were no significant realized
losses on commodity swaps for the first nine months of 2011.

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 17, 2012 to stockholders of record at the close of business on
December 3, 2012.

CONFERENCE CALL

The Company has scheduled a conference call for Wednesday, November 7, 2012,
at 9:00 a.m. Eastern, to discuss the third quarter 2012 results. To access the
call, please dial 877-941-8609, or 480-629-9692, 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 November 23, 2012, and may be accessed by calling 800-406-7325, or
303-590-3030, for international callers, and using the passcode 4570319#. A
web cast archive will also be available at http://www.alonusa.com shortly
after the call and will be accessible for approximately 90 days. For more
information, please contact Donna Washburn at DRG&L at 713-529-6600 or email
dmw@drg-l.com.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent
refiner and marketer of petroleum products, operating primarily in the South
Central, Southwestern and Western regions of the United States. The Company
owns four crude oil refineries in Texas, California, Louisiana and Oregon,
with an aggregate crude oil throughput capacity of approximately 250,000
barrels per day. Alon is a leading producer of asphalt, which it markets
through its asphalt terminals predominately in the Western United States. Alon
is the largest 7-Eleven licensee in the United States and operates
approximately 300 convenience stores in Texas and New Mexico. Alon markets
motor fuel products under the Alon brand name through a network of
approximately 625 locations, including Alon's convenience stores.

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.

          Amir Barash, Vice President-IR

Contacts: Alon USA Energy, Inc.

          972-367-3808
          Investors: Jack Lascar/ Sheila Stuewe

          DRG&L / 713-529-6600

          Media: Blake Lewis

          Lewis Public Relations

          214-635-3020

          Ruth Sheetrit

          SMG Public Relations

          011-972-547-555551

- Tables to follow -





ALON USA ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED

EARNINGS RELEASE
RESULTS OF OPERATIONS -
FINANCIAL DATA

(ALL INFORMATION IN
THIS PRESS RELEASE      For the Three Months Ended  For the Nine Months Ended
EXCEPT FOR BALANCE
SHEET DATA AS OF
DECEMBER 31, 2011, IS
UNAUDITED)
                        September 30,               September 30,
                        2012          2011          2012          2011
                        (dollars in thousands, except per share data)
STATEMENTS OF
OPERATIONS DATA:
Net sales (1)           $ 2,360,334   $ 2,056,653   $ 6,062,956   $ 5,303,388
Operating costs and
expenses:
Cost of sales           2,101,647     1,827,098     5,407,197     4,717,673
Unrealized losses on    5,017         —             37,458        —
commodity swaps
Direct operating        81,160        83,338        230,243       202,476
expenses
Selling, general and
administrative expenses 47,670        34,680        119,018       107,595
(2)
Depreciation and        31,870        29,812        93,000        80,046
amortization (3)
Total operating costs   2,267,364     1,974,928     5,886,916     5,107,790
and expenses
Gain (loss) on          (2,624)       229           (2,838)       161
disposition of assets
Operating income        90,346        81,954        173,202       195,759
Interest expense (4)    (22,773)      (22,582)      (78,113)      (63,780)
Equity earnings of      4,542         2,005         6,112         3,775
investees
Other income (loss),    202           (14,272)      (6,791)       (51,065)
net (5)
Income before income    72,317        47,105        94,410        84,689
tax expense
Income tax expense      26,776        17,004        34,705        26,952
Net income              45,541        30,101        59,705        57,737
Net income attributable
to non-controlling      2,318         1,480         2,758         2,317
interest
Net income available to $ 43,223      $ 28,621      $ 56,947      $ 55,420
common stockholders
Earnings per share,     $ 0.76        $ 0.51        $ 1.01        $ 1.00
basic
Weighted average shares
outstanding, basic (in  56,699        55,755        56,322        55,290
thousands)
Earnings per share,     $ 0.69        $ 0.46        $ 0.91        $ 0.91
diluted
Weighted average shares
outstanding, diluted    63,060        61,690        62,679        61,231
(in thousands)
Cash dividends per      $ 0.04        $ 0.04        $ 0.12        $ 0.12
share
CASH FLOW DATA:
Net cash provided by
(used in):
Operating activities    $ 101,276     $ 109,478     $ 215,498     $ 58,362
Investing activities    (34,170)      (28,055)      (83,436)      (104,130)
Financing activities    (78,930)      (22,964)      (243,436)     149,682
OTHER DATA:
Adjusted net income
available to common     $ 47,587      $ 39,028      $ 91,255      $ 74,506
stockholders (6)
Adjusted earnings per   $ 0.84        $ 0.70        $ 1.62        $ 1.35
share (6)
Adjusted EBITDA (7)     134,601       113,539       313,116       279,447
Capital expenditures    31,748        23,162        72,273        91,120
(8)
Capital expenditures
for turnaround and      2,680         2,733         11,437        6,995
chemical catalyst



                                    September 30,  December 31,

                                    2012           2011
BALANCE SHEET DATA (end of period): (dollars in thousands)
Cash and cash equivalents           $   45,692     $  157,066
Working capital (A)                 (337,021)      99,452
Total assets                        2,320,937      2,330,382
Total debt                          798,733        1,050,196
Total equity                        456,341        395,784

    We have launched syndication of $450,000 of new term debt and expect
(A) funding within a week; proceeds will be used to retire existing debt of
    $421,875 due August 2013.



REFINING AND UNBRANDED MARKETING SEGMENT
                     For the Three Months Ended     For the Nine Months Ended
                     September 30,                  September 30,
                     2012             2011          2012          2011
                     (dollars in thousands, except per barrel data and pricing
                     statistics)
STATEMENTS OF
OPERATIONS DATA:
Net sales (9)        $  2,136,619     $ 1,862,181   $ 5,527,395   $ 4,797,125
Operating costs and
expenses:
Cost of sales        1,917,852        1,681,163     5,005,249     4,336,655
Unrealized losses on 5,017            —             37,458        —
commodity swaps
Direct operating     72,259           72,271        204,001       170,214
expenses
Selling, general and
administrative       17,426           6,189         31,733        24,946
expenses
Depreciation and     26,330           25,179        77,242        64,799
amortization
Total operating      2,038,884        1,784,802     5,355,683     4,596,614
costs and expenses
Gain (loss) on
disposition of       (2,532)          1             (2,528)       12
assets
Operating income     $  95,203        $ 77,380      $ 169,184     $ 200,523
KEY OPERATING
STATISTICS:
Per barrel of
throughput:
Refinery operating
margin – Big Spring  $  28.19         $ 23.05       $ 23.85       $ 20.67
(10)
Refinery operating
margin – CA          0.12             3.64          1.60          (0.16)
Refineries (10)
Refinery operating
margin – Krotz       11.28            7.77          7.55          5.61
Springs (10)
Refinery direct
operating expense –  3.92             4.68          3.92          4.40
Big Spring (11)
Refinery direct
operating expense –  7.82             7.20          10.35         6.13
CA Refineries (11)
Refinery direct
operating expense –  3.76             3.61          3.86          3.42
Krotz Springs (11)
Capital expenditures $  23,520        $ 14,931      $ 45,606      $ 76,119
Capital expenditures
for turnaround and   2,680            2,733         11,437        6,995
chemical catalyst
PRICING STATISTICS:
WTI crude oil (per   $  92.09         $ 89.75       $ 96.17       $ 95.42
barrel)
WTS crude oil (per   88.75            88.93         92.08         92.95
barrel)
Buena Vista crude    106.23           107.27        110.14        106.62
oil (per barrel)
LLS crude oil (per   102.54           112.94        111.81        110.50
barrel)
Crack spreads
(3/2/1) (per
barrel):
Gulf Coast (12)      $  31.76         $ 31.28       $ 27.54       $ 24.53
Crack spreads
(3/1/1/1) (per
barrel):
West Coast (12)      $  14.40         $ 11.22       $ 12.84       $ 11.09
Crack spreads
(2/1/1) (per
barrel):
Gulf Coast high      $  15.91         $ 12.44       $ 12.05       $ 9.87
sulfur diesel (12)
Crude oil
differentials (per
barrel):
WTI less WTS (13)    $  3.34          $ 0.82        $ 4.09        $ 2.47
LLS less WTI (13)    15.02            18.87         15.25         14.55
WTI less Buena Vista (14.14)          (17.52)       (13.97)       (11.20)
(13)
Product prices
(dollars per
gallon):
Gulf Coast unleaded  $  2.89          $ 2.82        $ 2.89        $ 2.80
gasoline
Gulf Coast ultra-low 3.07             3.01          3.06          2.97
sulfur diesel
Gulf Coast high      2.97             2.95          2.99          2.91
sulfur diesel
West Coast LA CARBOB 3.04             2.89          3.09          2.92
(unleaded gasoline)
West Coast LA
ultra-low sulfur     3.13             3.03          3.12          3.05
diesel
Natural gas (per     2.89             4.05          2.58          4.21
MMBTU)



THROUGHPUT AND
               For the Three Months Ended          For the Nine Months Ended
PRODUCTION
DATA:

BIG SPRING     September 30,                       September 30,
REFINERY
               2012              2011              2012              2011
               bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
WTS crude      52,108   74.9     42,769   75.2     53,297   78.6     48,882   80.2
WTI crude      15,398   22.1     10,904   19.2     12,790   18.8     9,845    16.2
Blendstocks    2,057    3.0      3,155    5.6      1,797    2.6      2,162    3.6
Total refinery
throughput     69,563   100.0    56,828   100.0    67,884   100.0    60,889   100.0
(14)
Refinery
production:
Gasoline       34,918   50.3     26,846   47.3     33,653   49.6     28,969   47.8
Diesel/jet     23,215   33.5     18,570   32.6     22,234   32.8     19,704   32.5
Asphalt        4,148    6.0      4,619    8.1      4,241    6.3      4,505    7.4
Petrochemicals 4,040    5.8      3,422    6.0      4,005    5.9      3,664    6.0
Other          3,045    4.4      3,423    6.0      3,627    5.4      3,837    6.3
Total refinery
production     69,366   100.0    56,880   100.0    67,760   100.0    60,679   100.0
(15)
Refinery
utilization             96.4  %           89.9  %           97.3  %           88.3  %
(16)
THROUGHPUT AND
               For the Three Months Ended          For the Nine Months Ended
PRODUCTION
DATA:

CALIFORNIA     September 30,                       September 30,
REFINERIES
               2012              2011              2012              2011
               bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
Medium sour    23,228   71.9     9,363    24.0     9,903    46.1     4,632    21.7
crude
Heavy crude    8,065    25.0     23,928   61.2     10,259   47.8     14,707   68.9
Blendstocks    1,005    3.1      5,765    14.8     1,310    6.1      2,018    9.4
Total refinery
throughput     32,298   100.0    39,056   100.0    21,472   100.0    21,357   100.0
(14)
Refinery
production:
Gasoline       7,867    24.4     10,178   26.1     3,798    17.8     4,433    20.9
Diesel/jet     13,929   43.2     14,863   38.3     7,152    33.4     6,933    32.9
Asphalt        7,528    23.4     10,918   28.0     5,906    27.7     6,456    30.5
Light          —        —        525      1.3      267      1.3      177      0.8
unfinished
Heavy          1,833    5.7      960      2.5      3,668    17.2     2,462    11.6
unfinished
Other          1,057    3.3      1,498    3.8      554      2.6      708      3.3
Total refinery
production     32,214   100.0    38,942   100.0    21,345   100.0    21,169   100.0
(15)
Refinery
utilization             43.2  %           45.9  %           27.8  %           26.7  %
(16)

THROUGHPUT
AND
            For the Three Months Ended          For the Nine Months Ended
PRODUCTION
DATA:

KROTZ       September 30,                       September 30,
SPRINGS
REFINERY
            2012              2011              2012              2011
            bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
WTI crude   23,159   33.5     —        —        16,640   25.1     —        —
Gulf Coast  45,925   66.3     66,265   99.9     49,381   74.3     61,423   98.6
sweet crude
Blendstocks 141      0.2      65       0.1      392      0.6      846      1.4
Total
refinery    69,225   100.0    66,330   100.0    66,413   100.0    62,269   100.0
throughput
(14)
Refinery
production:
Gasoline    28,693   41.1     27,396   41.1     27,170   40.5     25,905   41.5
Diesel/jet  28,184   40.2     30,491   45.7     28,056   41.8     28,757   46.0
Heavy Oils  2,554    3.6      2,828    4.2      2,737    4.1      2,577    4.1
Other       10,605   15.1     6,017    9.0      9,162    13.6     5,245    8.4
Total
refinery    70,036   100.0    66,732   100.0    67,125   100.0    62,484   100.0
production
(15)
Refinery
utilization          83.1  %           79.7  %           79.4  %           80.2  %
(16)



ASPHALT SEGMENT
                         For the Three Months Ended  For the Nine Months Ended
                         September 30,               September 30,
                         2012            2011        2012          2011
                         (dollars in thousands, except per ton data)
STATEMENTS OF OPERATIONS
DATA:
Net sales                $  203,982      $ 201,081   $  449,442    $ 435,135
Operating costs and
expenses:
Cost of sales (17)       195,903         191,296     414,323       421,480
Direct operating         8,901           11,067      26,242        32,262
expenses
Selling, general and     1,268           1,310       3,188         3,833
administrative expenses
Depreciation and         1,485           1,522       4,281         4,999
amortization
Total operating costs    207,557         205,195     448,034       462,574
and expenses
Gain on disposition of   1               —           1             —
assets
Operating income (loss)  $  (3,574)      $ (4,114)   $  1,409      $ (27,439)
KEY OPERATING
STATISTICS:
Blended asphalt sales
volume (tons in          300             351         674           727
thousands) (18)
Non-blended asphalt
sales volume (tons in    17              30          77            127
thousands) (19)
Blended asphalt sales    $  657.68       $ 540.07    $  623.24     $ 539.52
price per ton (18)
Non-blended asphalt      392.76          383.87      381.49        337.82
sales price per ton (19)
Asphalt margin per ton   25.49           25.68       46.76         15.99
(20)
Capital expenditures     $  1,075        $ 125       $  8,535      $ 1,458

RETAIL AND BRANDED
MARKETING SEGMENT
                      For the Three Months Ended  For the Nine Months Ended
                      September 30,               September 30,
                      2012           2011         2012           2011
                      (dollars in thousands, except per gallon data)
STATEMENTS OF
OPERATIONS DATA:
Net sales (1)         $  400,140     $ 383,636    $ 1,159,369    $ 1,083,455
Operating costs and
expenses:
Cost of sales (17)    368,299        344,884      1,060,875      971,865
Selling, general and
administrative        28,773         26,993       83,513         78,252
expenses
Depreciation and      3,444          2,707        9,689          9,037
amortization
Total operating costs 400,516        374,584      1,154,077      1,059,154
and expenses
Gain (loss) on        (93)           228          (311)          149
disposition of assets
Operating income      $  (469)       $ 9,280      $ 4,981        $ 24,450
(loss)
KEY OPERATING
STATISTICS:
Branded fuel sales
(thousands of         100,800        95,160       290,708        272,101
gallons) (21)
Branded fuel margin
(cents per gallon)    (2.5)          5.5          (0.6)          5.0
(21)
Number of stores (end 299            303          299            303
of period) (22)
Retail fuel sales
(thousands of         43,978         40,769       126,845        115,931
gallons)
Retail fuel sales
(thousands of gallons 51             47           49             44
per site per month)
(22)
Retail fuel margin
(cents per gallon)    14.5           15.9         14.6           16.7
(23)
Retail fuel sales
price (dollars per    $  3.46        $ 3.52       $ 3.51         $ 3.47
gallon) (24)
Merchandise sales     $  82,069      $ 79,366     $ 238,062      $ 225,812
Merchandise sales
(per site per month)  $  91          $ 87         $ 88           $ 83
(22)
Merchandise margin    32.3        %  32.4      %  32.5        %  33.0        %
(25)
Capital expenditures  $  6,669       $ 7,777      $ 16,865       $ 12,271

    Includes excise taxes on sales by the retail and branded marketing segment
    of $17,159 and $15,476 for the three months ended September 30, 2012 and
    2011, respectively, and $49,481 and $44,887 for the nine months ended
(1) September 30, 2012 and 2011, respectively. Net sales also includes net
    royalty and related net credit card fees of $1,427 and $1,265 for the
    three months ended September 30, 2012 and 2011, respectively, and $4,346
    and $4,177 for the nine months ended September 30, 2012 and 2011,
    respectively.
    Includes corporate headquarters selling, general and administrative
    expenses of $203 and $188 for the three months ended September 30, 2012
(2) and 2011, respectively, and $584 and $564 for the nine months ended
    September 30, 2012 and 2011, respectively, which are not allocated to our
    three operating segments.
    Includes corporate depreciation and amortization of $611 and $404 for the
(3) three months ended September 30, 2012 and 2011, respectively, and $1,788
    and $1,211 for the nine months ended September 30, 2012 and 2011,
    respectively, which are not allocated to our three operating segments.
    Interest expense for the nine months ended September 30, 2012, includes a
(4) charge of $9,624 for the write-off of unamortized original issuance
    discount associated with our repayment of the Alon Brands Term Loan.
    Other income (loss), net for the nine months ended September 30, 2012 and
(5) the three and nine months ended September 30, 2011, is substantially the
    loss on heating oil call option crack spread contracts.
    The following table provides a reconciliation of net income available to
    common stockholders under United States generally accepted accounting
    principles ("GAAP") to adjusted net income available to common
    stockholders utilized in determining adjusted earnings per share,
    excluding the after-tax loss on write-off of unamortized original issuance
    discount, after-tax loss on heating oil call option crack spread
(6) contracts, after-tax unrealized losses on commodity swaps, after-tax gain
    from reduction in system inventories and after-tax gain (loss) on
    disposition of assets. Our management believes that the presentation of
    adjusted net income available to common stockholders and adjusted earnings
    per share, excluding these items, is useful to investors because it
    provides a more meaningful measurement for evaluation of our Company's
    operating results.

                         For the Three Months Ended  For the Nine Months Ended
                         September 30,               September 30,
                         2012           2011         2012           2011
                         (dollars in thousands)
Net income available to  $  43,223      $  28,621    $  56,947      $  55,420
common stockholders
Plus: Write-off of
original issuance        —              —            5,781          —
discount, net of tax
Plus: Loss on heating
oil call option crack    —              10,551       4,413          32,697
spread contracts, net of
tax
Plus: Unrealized losses
on commodity swaps, net  2,795          —            22,416         —
of tax
Less: Gain from
reduction in system      —              —            —              (13,508)
inventories, net of tax
Less: (Gain) loss on
disposition of assets,   1,569          (144)        1,698          (103)
net of tax
Adjusted net income
available to common      $  47,587      $  39,028    $  91,255      $  74,506
stockholders
Adjusted earnings per    $  0.84        $  0.70      $  1.62        $  1.35
share

      Adjusted EBITDA represents earnings before net income attributable to
      non-controlling interest, income tax expense, interest expense,
      depreciation and amortization, gain (loss) on disposition of assets,
      unrealized losses on commodity swaps and loss on heating oil call option
      crack spread contracts. Adjusted EBITDA is not a recognized measurement
      under GAAP; however, the amounts included in Adjusted EBITDA are derived
      from amounts included in our consolidated financial statements. Our
      management believes that the presentation of Adjusted EBITDA is useful
      to investors because it is frequently used by securities analysts,
(7)   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 net income
      attributable to non-controlling interest, income tax expense, interest
      expense, gain (loss) on disposition of assets, unrealized losses on
      commodity swaps, loss on heating oil call option crack spread contracts
      and the accounting effects of capital expenditures and acquisitions,
      items that may vary for different companies for reasons unrelated to
      overall operating performance.
      Adjusted EBITDA has
      limitations as an
      analytical tool, and you
      should not consider it in
      isolation, or as a
      substitute for analysis of
      our results as reported
      under GAAP. Some of these
      limitations are:
      Adjusted EBITDA does not
      reflect our cash
•     expenditures or future
      requirements for capital
      expenditures or contractual
      commitments;
      Adjusted EBITDA does not
      reflect the interest
      expense or the cash
•     requirements necessary to
      service interest or
      principal payments on our
      debt;
      Adjusted EBITDA does not
      reflect the prior claim
      that non-controlling
•     interest have on the income
      generated by
      non-wholly-owned
      subsidiaries;
      Adjusted EBITDA does not
•     reflect changes in or cash
      requirements for our
      working capital needs; and
      Our calculation of Adjusted
      EBITDA may differ from
      EBITDA calculations of
•     other companies in our
      industry, limiting its
      usefulness as a comparative
      measure.
Because of these limitations,
Adjusted EBITDA should not be
considered a measure of
discretionary cash available to
us to invest in the growth of our
business. We compensate for these
limitations by relying primarily
on our GAAP results and using
Adjusted EBITDA only
supplementally.
The following table reconciles
net income available to common
stockholders to Adjusted EBITDA
for the three and nine months
ended September 30, 2012 and
2011:

                         For the Three Months Ended  For the Nine Months Ended
                         September 30,               September 30,
                         2012            2011        2012           2011
                         (dollars in thousands)
Net income available to  $  43,223       $ 28,621    $  56,947      $ 55,420
common stockholders
Net income attributable
to non-controlling       2,318           1,480       2,758          2,317
interest
Income tax expense       26,776          17,004      34,705         26,952
Interest expense         22,773          22,582      78,113         63,780
Depreciation and         31,870          29,812      93,000         80,046
amortization
(Gain) loss on           2,624           (229)       2,838          (161)
disposition of assets
Unrealized losses on     5,017           —           37,458         —
commodity swaps
Loss on heating oil call
option crack spread      —               14,269      7,297          51,093
contracts
Adjusted EBITDA          $  134,601      $ 113,539   $  313,116     $ 279,447

     Includes corporate capital expenditures of $484 and $329 for the three
(8)  months ended September 30, 2012 and 2011, respectively, and $1,267 and
     $1,272 for the nine months ended September 30, 2012 and 2011,
     respectively, which are not allocated to our three operating segments.
     Net sales include intersegment sales to our asphalt and
     retail and branded marketing segments at prices which
(9)  approximate wholesale market prices. These intersegment
     sales are eliminated through consolidation of our financial
     statements.
     Refinery operating margin is a per barrel measurement
     calculated by dividing the margin between net sales and
     cost of sales (exclusive of substantial hedge positions and
     certain inventory adjustments) attributable to each
     refinery by the refinery's throughput volumes.
(10) 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 excludes unrealized losses on
     commodity swaps of $5,017 and $37,458 for the three and
     nine months ended September 30, 2012, as shown separately
     in the statements of operations. The refinery operating
     margin excludes realized losses on commodity swaps of
     $33,839 and $68,260 for the three and nine months ended
     September 30, 2012, respectively.
     The refinery operating margin for the nine months ended
     September 30, 2011, excludes a benefit from inventory
     reductions of $22,460.
     Refinery direct operating expense is a per barrel
     measurement calculated by dividing direct operating
     expenses at our Big Spring, California, and Krotz Springs
(11) refineries, exclusive of depreciation and amortization, by
     the applicable refinery's total throughput volumes. Direct
     operating expenses related to the Bakersfield refinery of
     $3,356 for the nine months ended September 30, 2011 have
     been excluded from the per barrel measurement calculation.
     We compare our Big Spring refinery's per barrel operating
     margin to the Gulf Coast 3/2/1 crack spread. A 3/2/1 crack
     spread is calculated assuming that three barrels of a
     benchmark crude oil are converted, or cracked, into two
(12) 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
     Cushing, or WTI, a light, sweet crude oil.
     We compare our California refineries' per barrel operating
     margin to the West Coast 3/1/1/1 crack spread. A 3/1/1/1
     crack spread is calculated assuming that three barrels of a
     benchmark crude oil are converted into one barrel of
     gasoline, one barrel of diesel and one barrel of fuel oil.
     We calculate the West Coast 3/1/1/1 crack spread using the
     market values of West Coast LA CARBOB pipeline gasoline, LA
     ultra-low sulfur pipeline diesel, and LA 380 pipeline CST
     (fuel oil) and the market value of Buena Vista crude oil.
     We compare our Krotz Springs refinery's per barrel
     operating margin to the Gulf Coast 2/1/1 crack spread. A
     2/1/1 crack spread is calculated assuming that two barrels
     of a benchmark crude oil are converted into one barrel of
     gasoline and one barrel of diesel. We calculate the Gulf
     Coast 2/1/1 crack spread using the market values of Gulf
     Coast conventional gasoline and Gulf Coast high sulfur
     diesel and the market value of Light Louisiana Sweet, or
     LLS, crude oil.
     The WTI/WTS, or sweet/sour, spread represents the
     differential between the average value per barrel of WTI
     crude oil and the average value per barrel of WTS crude
     oil. The WTI less Buena Vista spread represents the
(13) differential between the average value per barrel of WTI
     crude oil and the average value per barrel of Buena Vista
     crude oil. The LLS less WTI spread represents the
     differential between the average value per barrel of LLS
     crude oil and the average value per barrel of WTI crude
     oil.
     Total refinery throughput represents the total barrels per
     day of crude oil and blendstock inputs in the refinery
     production process. Throughput data for the California
     refineries for the nine months ended September 30, 2012 and
     2011 reflects substantially six months of operations as the
(14) California refineries were not in operation for the first
     quarter of 2012 and 2011. The throughput data of the Krotz
     Springs refinery for the nine months ended September 30,
     2011, reflects approximately a one month shutdown due to
     flooding in Louisiana and the impact on crude oil supply to
     the refinery.
     Total refinery production represents the barrels per day of
(15) various products produced from processing crude and other
     refinery feedstocks through the crude units and other
     conversion units at the refineries.
     Refinery utilization represents average daily crude oil
(16) throughput divided by crude oil capacity, excluding planned
     periods of downtime for maintenance and turnarounds.
     Cost of sales includes intersegment purchases of asphalt
     blends and motor fuels from our refining and unbranded
(17) marketing segment at prices which approximate wholesale
     market prices. These intersegment purchases are eliminated
     through consolidation of our financial statements.
     Blended asphalt represents base asphalt that has been
(18) blended with other materials necessary to sell the asphalt
     as a finished product.
     Non-blended asphalt represents base material asphalt and
(19) other components that require additional blending before
     being sold as a finished product.
     Asphalt margin is a per ton measurement calculated by
     dividing the margin between net sales and cost of sales by
(20) the total sales volume. Asphalt margins are used in the
     asphalt industry to measure operating results related to
     asphalt sales.
     Branded fuel sales represent branded fuel sales to our
     wholesale marketing customers that are primarily supplied
     by the Big Spring refinery. The branded fuels that are not
(21) supplied by the Big Spring refinery are obtained from
     third-party suppliers. The branded fuel 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.
     At September 30, 2012 we had 299 retail convenience stores
(22) of which 286 sold fuel. At September 30, 2011 we had 303
     retail convenience stores of which 290 sold fuel.
     Retail fuel margin represents the difference between motor
     fuel sales revenue and the net cost of purchased motor
(23) 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.
     Retail fuel sales price per gallon represents the average
(24) sales price for motor fuels sold through our retail
     convenience stores.
     Merchandise margin represents the difference between
     merchandise sales revenues and the delivered cost of
     merchandise purchases, net of rebates and commissions,
(25) 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.

Website: http://www.alonusa.com
 
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