Western Refining Announces Fourth Quarter and Full Year 2012 Results

Western Refining Announces Fourth Quarter and Full Year 2012 Results

        Strong Margin Environment Leads to Significant Debt Reduction,

                  Shareholder Return, and Capital Investment

EL PASO, Texas, Feb. 28, 2013 (GLOBE NEWSWIRE) -- Western Refining, Inc.
(NYSE:WNR) today reported fourth quarter 2012 net income, excluding special
items, of $155.7 million, or $1.45 per diluted share. This compares to fourth
quarter 2011 net income, excluding special items, of $50.8 million, or $0.50
per diluted share. Including special items, the Company recorded fourth
quarter 2012 net income of $207.6 million, or $1.92 per diluted share as
compared to a net loss of $64.6 million, or $0.72 per diluted share for the
fourth quarter of 2011. The special item for the fourth quarter of 2012 was a
non-cash unrealized pre-tax hedging gain of $81.5 million. The
quarter-on-quarter improvement was due in large part to higher refining
margins resulting from cost-advantaged crude oils and strong product values in
the Southwest U.S.

For the year ended December 31, 2012, the Company reported net income,
excluding special items, of $552.3 million, or $5.08 per diluted share as
compared to net income, excluding special items, of $330.4 million, or $3.14
per diluted share for the year ended December 31, 2011. Including special
items, Western recorded full year 2012 net income of $398.9 million, or $3.71
per diluted share compared to full year 2011 net income of $132.7 million, or
$1.34 per diluted share.

A reconciliation of reported earnings and description of special items can be
found in the accompanying financial tables.

Jeff Stevens, Western's President and Chief Executive Officer, said, "In 2012,
Western Refining realized its highest fourth quarter and full year Adjusted
EBITDA in Company history. We undertook a number of strategic actions to
capitalize on the strong margin environment, strengthen our balance sheet, and
invest in the business. Over the last two years, we believe we have
demonstrated our ability to capture these positive market conditions and
dramatically transform the earnings power of the Company."

The Company successfully completed a number of strategic initiatives during
2012:

  *reduced total debt by $304 million
  *returned $323 million in cash to shareholders via dividends and share
    repurchases
  *expanded the crude oil capacity of the Gallup Refinery
  *invested in a gathering system for cost-advantaged crude oil in the
    Permian Basin

For the fourth quarter of 2012, Adjusted EBITDA was $298.5million compared to
Adjusted EBITDA of $144.7million for the fourth quarter of 2011. For the year
ended December31, 2012, Adjusted EBITDA was a $1,083.7million compared to
the full year 2011 Adjusted EBITDA of $786.2million.

Total debt as of December31, 2012, was $499.9million and cash was
$454.0million resulting in net debt of $45.9million.

Stevens continued, "We have established ambitious goals for the Company in
2013.We will continue to focus on safety and reliability.We also plan to
further enhance our cost-advantaged crude oil position, grow our logistics
assets, increase our financial flexibility, and return cash to shareholders.
The Gallup refinery is running at expanded rates, our crude oil gathering
system in the Permian Basin is nearing completion, and we continue to maximize
the use of cost-advantaged crude oil available in our region. All of these
actions, coupled with the location of our assets, position Western well for
2013."

Conference Call Information

A conference call is scheduled for Thursday,February28, 2013, at 10:00 a.m.
ET to discuss Western's financial results. A slide presentation will also be
available for reference during the conference call. The call, press release,
and slide presentation can be accessed on the Investor Relations section on
Western's website, www.wnr.com. The call can also be heard by dialing (866)
566-8590 or (702) 224-9819, passcode: 85926413. The audio replay will be
available two hours after the end of the call through March 7, 2013, by
dialing (800) 585-8367 or (404) 537-3406, passcode: 85926413.

Non-GAAP Financial Measures

In a number of places in the press release and related tables, we have
excluded the impact of the non-cashloss and impairments on disposal of
assets, the impact of the non-cash unrealized net gains and losses from our
commodity hedging activities, and the non-cash loss on extinguishment of
debt.We believe it is useful for investors to understand our financial
performance excluding these special items so that investors can see the
operating trends underlying our business.Investors should not consider these
non-GAAP measures in isolation from, or as a substitute for, the financial
information that we report in accordance with GAAP.

About Western Refining

Western Refining, Inc. is an independent refining and marketing company
headquartered in El Paso, Texas. Western operates refineries in El Paso, and
Gallup, New Mexico. Western's asset portfolio also includes stand-alone
refined products terminals in Albuquerque and Bloomfield, New Mexico, asphalt
terminals in Albuquerque, El Paso, and Phoenix and Tucson, Arizona, retail
service stations and convenience stores in Arizona, Colorado, New Mexico, and
Texas, a fleet of crude oil and finished product truck transports, and
wholesale petroleum products operations in Arizona, California, Colorado,
Maryland, Nevada, New Mexico, Texas, and Virginia. More information about the
Company is available at www.wnr.com.

The Western Refining, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7615

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements covered by the safe
harbor provisions of the PSLRA. The forward-looking statements contained
herein include statements about our future:continued focus on safety and
reliability; ability to further enhance and maximize our use
ofcost-advantaged crude oil; ability to grow our logistics assets including
the completion of our crude oil gathering system in the Permian Basin; ability
to increase our financial flexibility; return of cash to shareholders; ability
to run the Gallup refinery at expanded rates; and our positioning for
2013.These statements are subject to the general risks inherent in the
Company's business. 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, Western's business and operations involve numerous
risks and uncertainties, many of which are beyond Western's control, which
could result in Western's expectations not being realized, or otherwise
materially affect Western's financial condition, results of operations, and
cash flows. Additional information relating to the uncertainties affecting
Western's business is contained in the Company's filings with the Securities
and Exchange Commission. The forward-looking statements are only as of the
date made, and Western does not undertake any obligation to (and expressly
disclaims any obligation to) update any forward-looking statements to reflect
events or circumstances after the date such statements were made, or to
reflect the occurrence of unanticipated events.

Consolidated Financial Data

The following tables set forth our summary historical financial and operating
data for the periods indicated below:

                                  Three Months Ended    Year Ended
                                  December 31,          December 31,
                                  2012       2011       2012       2011
                                  (In thousands, except per share data)
Statements of Operations Data                                    
Net sales (1)                      $2,248,257 $2,276,426 $9,503,134 $9,071,037
Operating costs and expenses:                                    
Cost of products sold (exclusive
of depreciation and amortization)  1,710,775  1,678,103  8,054,385  7,532,423
(1)
Direct operating expenses
(exclusive of depreciation and     122,813    125,992    483,070    463,563
amortization) (1)
Selling, general, and              34,545     29,781     114,628    105,768
administrative expenses
(Gain) loss and impairments on     —          450,796    (1,891)    447,166
disposal of assets, net
Maintenance turnaround expense     13,763     1,107      47,140     2,443
Depreciation and amortization      24,799     30,594     93,907     135,895
Total operating costs and expenses 1,906,695  2,316,373  8,791,239  8,687,258
Operating income                   341,562    (39,947)   711,895    383,779
Other income (expense):                                          
Interest income                    136        165        696        510
Interest expense and other         (17,419)   (33,410)   (81,349)   (134,601)
financing costs
Amortization of loan fees          (1,641)    (2,057)    (6,860)    (8,926)
Loss on extinguishment of debt     —          (29,695)   (7,654)    (34,336)
Other, net                         (278)      140        359        (3,898)
Income (loss)before income taxes  322,360    (104,804)  617,087    202,528
Provision for income taxes         (114,773)  40,247     (218,202)  (69,861)
Net income (loss)                  $207,587   $(64,557)  $398,885   $132,667
Basic earnings (loss)per share    $2.35      $(0.72)    $4.42      $1.46
Diluted earnings (loss)per share  $1.92      $(0.72)    $3.71      $1.34
(2)
Weighted average basic shares      87,589     89,285     89,270     88,981
outstanding
Weighted average dilutive shares   110,250    89,285     111,822    109,792
outstanding
Cash Flow Data                                                   
Net cash provided by (used in):                                  
Operating activities               $320,056   $107,649   $916,353   $508,200
Investing activities               (71,418)   (39,149)   18,506     (72,194)
Financing activities               (304,515)  (300,306)  (651,721)  (325,089)
Other Data                                                       
Adjusted EBITDA (3)                $298,463   $144,656   $1,083,669 $786,239
Capital expenditures               71,434     39,154     202,157    83,809
Balance Sheet Data (at end of                                    
period)
Cash and cash equivalents                              $453,967   $170,829
Restricted cash                                        —          220,355
Working capital                                        559,213    544,981
Total assets                                           2,480,407  2,570,344
Total debt                                             499,863    803,990
Stockholders' equity                                   909,070    819,828

(1)Excludes $1,099.0million, $4,909.4million, $1,345.1million, and
$5,022.8million of intercompany sales; $1,096.4million, $4,901.5million,
$1,342.1million, and $5,010.9million of intercompany cost of products sold;
and $2.6million, $7.9million, $3.0million and $11.9million, of
intercompany direct operating expenses for the three and twelve months ended
December31, 2012 and 2011, respectively.

(2)Our computation of diluted earnings (loss)per share potentially includes
our Convertible Senior Notes and our restricted shares and share units. If
determined to be dilutive to period earnings, these securities are included in
the denominator of our diluted earnings (loss) per share calculation. For
purposes of the diluted earnings (loss) per share calculation, we assumed
issuance of 0.6million and 0.5million restricted shares and share units for
the three and twelve months ended December31, 2012, respectively, and assumed
issuance of 22.1million shares related to the Convertible Senior Notes,
respectively for both periods. We assumed issuance of 0.7million and
0.9million restricted shares and share units for the three and twelve months
ended December31, 2011, respectively, and assumed issuance of 19.9million
shares related to the Convertible Senior Notes, respectively for both periods.

(3)Adjusted EBITDA represents earnings before interest expense and other
financing costs, amortization of loan fees, provision for income taxes,
depreciation, amortization, maintenance turnaround expense, and certain other
non-cash income and expense items. However, Adjusted EBITDA is not a
recognized measurement under United States generally accepted accounting
principles ("GAAP"). 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 financings, income taxes, the accounting
effects of significant turnaround activities (that many of our competitors
capitalize and thereby exclude from their measures of EBITDA), and certain
non-cash charges that are 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 significant turnaround activities, 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 changes in, or cash requirements for, our
    working capital needs; and
  *Adjusted EBITDA, as we calculate it, may differ from the Adjusted EBITDA
    calculations of other companies in our industry, thereby 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 periods presented:

                                      Three Months Ended Twelve Months Ended
                                      December31,       December31,
                                      2012     2011      2012       2011
                                      (In thousands)
Net income (loss)                      $207,587 $(64,557) $398,885   $132,667
Interest expense and other financing   17,419   33,410    81,349     134,601
costs
Amortization of loan fees              1,641    2,057     6,860      8,926
Provision for income taxes             114,773  (40,247)  218,202    69,861
Depreciation and amortization          24,799   30,594    93,907     135,895
Maintenance turnaround expense         13,763   1,107     47,140     2,443
Loss and impairments on disposal of    —        450,796   —          450,796
assets, net (a)
Loss on extinguishment of debt         —        29,695    7,654      34,336
Unrealized loss (gain) on commodity    (81,519) (298,199) 229,672    (183,286)
hedging transactions (b)
Adjusted EBITDA                        $298,463 $144,656  $1,083,669 $786,239

(a) The calculation of Adjusted EBITDA for the year ended December31, 2011
includes the add-back of net gains and losses of $450.8 million incurred from
the sale of the Yorktown refining and certain pipeline assets, and to a lesser
extent the impairment of Bloomfield refining assets. We have adjusted this
amount to exclude a $3.6 million gain related to the sale of platinum catalyst
that was previously included in the net loss from other sales transactions. We
consider the sale of catalyst to be a routine transaction occurring in the
normal course of business and as such, should not be added back to net income
(loss) in our calculation of Adjusted EBITDA.

(b) Adjusted EBITDA has been adjusted for the impact of net non-cash
unrealized gains and losses related to our commodity hedging transactions. We
believe the inclusion of this component of net income provides a better
representation of Adjusted EBITDA given the non-cash and potentially volatile
nature of commodity hedging.

Refining Segment                                                 
                                            
All Refineries and Related Operations                              
                                                                  
                                  Three Months Ended    Year Ended
                                  December31,          December31,
                                  2012 (6)   2011 (6)   2012 (6)   2011 (6)
                                  (In thousands, except per barrel data)
Statement of Operations Data:     
Net sales (including intersegment  $1,923,146 $2,151,333 $8,340,178 $8,399,698
sales)
Operating costs and expenses:                                    
Cost of products sold (exclusive
of depreciation and amortization)  1,446,878  1,594,655  7,133,308  7,059,210
(5)
Direct operating expenses
(exclusive of depreciation and     83,123     87,670     320,659    329,237
amortization)
Selling, general, and              7,858      7,218      27,136     27,451
administrative expenses
(Gain) loss and impairments on     —          450,796    (1,382)    447,166
disposal of assets,net
Maintenance turnaround expense     13,763     1,107      47,140     2,443
Depreciation and amortization      20,747     26,424     77,575     119,057
Total operating costs and expenses 1,572,369  2,167,870  7,604,436  7,984,564
Operating income (loss)            $350,777   $(16,537)  $735,742   $415,134
Key Operating Statistics                                         
Total sales volume (bpd) (1)       173,726    198,826    184,086    189,339
Total refinery production (bpd)    149,842    142,437    147,461    140,124
Total refinery throughput (bpd)    152,280    144,643    149,809    142,257
(2)
Per barrel of throughput:                                        
Refinery gross margin (3) (5)      $34.00     $41.83     $22.01     $25.82
Refinery gross margin excluding    30.74      20.58      28.40      23.83
hedging activities (3) (5)
Gross profit (3) (5)               32.51      39.85      20.60      23.52
Direct operating expenses (4)      5.93       6.59       5.85       6.34


Southwest Refineries (El Paso and Gallup with Related Operations)
                                                                
                                  Three Months Ended    Year Ended
                                  December 31,          December 31,
                                  2012 (6)   2011 (6)   2012 (6)   2011 (6)
                                  (In thousands, except per barrel data)
Net sales (including intersegment  $1,923,146 $2,146,257 $8,339,492 $8,383,594
sales)
Operating costs and expenses:                                     
Cost of products sold (exclusive
of depreciation and amortization)  1,446,723  1,590,158  7,137,486  7,048,140
(5)
Direct operating expenses
(exclusive of depreciation and     83,123     76,909     320,659    285,800
amortization)
Selling, general, and              7,858      7,218      27,136     27,451
administrative expenses
(Gain) loss and impairments on     —          (14,829)   (1,382)    (14,829)
disposal of assets,net
Maintenance turnaround expense     13,763     1,107      47,140     2,443
Depreciation and amortization      20,747     18,966     77,575     76,254
Total operating costs and expenses 1,572,214  1,679,529  7,608,614  7,425,259
Operating income                   $350,932   $466,728   $730,878   $958,335
Key Operating Statistics                                         
Total sales volume (bpd) (1)       173,726    198,446    184,070    189,007
Total refinery production (bpd)    149,842    142,437    147,461    140,124
Total refinery throughput (bpd)    152,280    144,643    149,809    142,257
(2)
Per barrel of throughput:                                        
Refinery gross margin (3) (5)      $34.01     $41.79     $21.92     $25.72
Refinery gross margin excluding    30.75      20.54      28.31      23.73
hedging activities (3) (5)
Gross profit (3) (5)               32.53      40.36      20.51      24.25
Direct operating expenses (4)      5.93       5.78       5.85       5.50
                                                                 
All Refineries (El Paso and Gallup)                               
                                                                
                                  Three Months Ended    Year Ended
                                  December 31,          December 31,
                                  2012       2011       2012       2011
Key Operating Statistics                                         
Refinery product yields (bpd):                                    
Gasoline                           78,516     75,300     76,536     74,224
Diesel and jet fuel                61,497     57,548     61,224     57,037
Residuum                           5,873      5,373      5,655      5,219
Other                              3,956      4,216      4,046      3,644
Total refinery production (bpd)    149,842    142,437    147,461    140,124
Refinery throughput (bpd):                                       
Sweet crude oil                    119,187    114,246    115,345    113,347
Sour or heavy crude oil            26,665     20,776     24,792     19,876
Other feedstocks and blendstocks   6,428      9,621      9,672      9,034
Total refinery throughput (bpd)    152,280    144,643    149,809    142,257
(2)
                                                                
El Paso Refinery                                                 
                                                                
                                  Three Months Ended    Year Ended
                                  December31,          December31,
                                  2012       2011       2012       2011
Key Operating Statistics                                         
Refinery product yields (bpd):                                    
Gasoline                           64,637     59,638     61,669     58,236
Diesel and jet fuel                55,056     50,729     54,600     50,211
Residuum                           5,873      5,373      5,655      5,219
Other                              3,417      3,483      3,280      2,882
Total refinery production (bpd)    128,983    119,223    125,204    116,548
Refinery throughput (bpd):                                       
Sweet crude oil                    98,184     92,683     94,404     91,589
Sour crude oil                     26,665     20,776     24,792     19,876
Other feedstocks and blendstocks   5,936      7,403      7,734      6,680
Total refinery throughput (bpd)    130,785    120,862    126,930    118,145
(2)
Total sales volume (bpd) (1)       142,671    165,285    151,352    155,196
Per barrel of throughput:                                        
Refinery gross margin (3) (5)      $30.77     $20.71     $28.25     $23.18
Direct operating expenses (4)      4.36       4.84       4.50       4.50
                                                                
Gallup Refinery                                                  
                                                                
                                  Three Months Ended    Year Ended
                                  December31,          December31,
                                  2012       2011       2012       2011
Key Operating Statistics                                         
Refinery product yields (bpd):                                    
Gasoline                           13,879     15,662     14,867     15,988
Diesel and jet fuel                6,441      6,819      6,624      6,826
Other                              539        733        766        762
Total refinery production (bpd)    20,859     23,214     22,257     23,576
Refinery throughput (bpd):                                       
Sweet crude oil                    21,003     21,563     20,941     21,758
Other feedstocks and blendstocks   492        2,218      1,938      2,354
Total refinery throughput (bpd)    21,495     23,781     22,879     24,112
(2)
Total sales volume (bpd) (1)       31,055     33,161     32,718     33,811
Per barrel of throughput:                                        
Refinery gross margin (3) (5)      $30.26     $19.47     $28.25     $26.05
Direct operating expenses (4)      11.43      8.27       9.60       8.27

(1) Sales volume includes sales of refined products sourced primarily from our
refinery production as well as refined products purchased from third parties.
We purchase additional refined products from third parties to supplement
supply to our customers. These products are similar to the products that we
currently manufacture and represented 13.83% and 14.78% of our total
consolidated sales volumes for the years ended December31, 2012 and 2011,
respectively. The majority of the purchased refined products are distributed
through our wholesale refined product sales activities in the Mid-Atlantic
region where we satisfy our refined product customer sales requirements
through a third-party supply agreement.

(2)Total refinery throughput includes crude oil, other feedstocks, and
blendstocks.

(3)Refinery gross margin is a per barrel measurement calculated by dividing
the difference between net sales and cost of products sold by our refineries'
total throughput volumes for the respective periods presented. Net realized
and net non-cash unrealized economic hedging gains and losses included in the
combined refining segment gross margin are not allocated to the individual
refineries. Cost of products sold does not include any depreciation or
amortization. Refinery gross margin is a non-GAAP performance measure that we
believe is important to investors in evaluating our refinery performance as a
general indication of the amount above our cost of products that we are able
to sell refined products. Each of the components used in this calculation (net
sales and cost of products sold) can be reconciled directly to our statement
of operations. Our calculation of refinery gross margin may differ from
similar calculations of other companies in our industry, thereby limiting its
usefulness as a comparative measure.

The following table reconciles combined gross profit for all refineries to
combined gross margin for all refineries for the periods presented:

                                  Three Months Ended    Year Ended
                                  December31,          December31,
                                  2012       2011       2012       2011
                                  (In thousands, except per barrel data)
Net sales (including intersegment  $1,923,146 $2,151,333 $8,340,178 $8,399,698
sales)
Cost of products sold (exclusive   1,446,878  1,594,655  7,133,308  7,059,210
of depreciation and amortization)
Depreciation and amortization      20,747     26,424     77,575     119,057
Gross profit                       455,521    530,254    1,129,295  1,221,431
Plus depreciation and amortization 20,747     26,424     77,575     119,057
Refinery gross margin              $476,268   $556,678   $1,206,870 $1,340,488
Refinery gross margin per refinery $34.00     $41.83     $22.01     $25.82
throughput barrel (4)
Gross profit per refinery          $32.51     $39.85     $20.60     $23.52
throughput barrel (4)

The following table reconciles gross profit for our Southwest refineries to
combined gross margin for our Southwest refineries for the periods presented:

                        Three Months Ended          Year Ended
                        December 31,                December 31,
                        2012          2011          2012         2011
                        (In thousands, except per barrel data)
Net sales (including     $1,923,146    $2,146,257    $8,339,492   $8,383,594
intersegment sales)
Cost of products sold
(exclusive of            1,446,723     1,590,158     7,137,486    7,048,140
depreciation and
amortization)
Depreciation and         20,747        18,966        77,575       76,254
amortization
Gross profit             455,676       537,133       1,124,431    1,259,200
Plus depreciation and    20,747        18,966        77,575       76,254
amortization
Refinery gross margin    $476,423      $556,099      $1,202,006   $1,335,454
Refinery gross margin
per refinery throughput  $34.01        $41.79        $21.92       $25.72
barrel (4)
Gross profit per
refinery throughput      $32.53        $40.36        $20.51       $24.25
barrel (4)

(4)Refinery direct operating expenses per throughput barrel is calculated by
dividing direct operating expenses by total throughput volumes for the
respective periods presented. Direct operating expenses do not include any
depreciation or amortization.

(5)Cost of products sold for the combined refining segment includes the net
realized and net non-cash unrealized hedging activity shown in the table
below. The hedging gains and losses are also included in the combined gross
profit and refinery gross margin but are not included in those measures for
the individual refineries.
                                                   
                        Three Months Ended          Year Ended
                        December 31,                December 31,
                        2012          2011          2012         2011
                        (In thousands)
Realized hedging loss,   $(35,932)     $(16,445)     $(120,805)   $(78,995)
net
Unrealized hedging gain  81,519        299,266       (229,672)    182,343
(loss), net
Total hedging gain       $45,587       $282,821      $(350,477)   $103,348
(loss), net

(6)The difference between the total refining financial data and our Southwest
refining financial data represents the sale of refined products associated
with the Yorktown operations. We sold 5,707 barrels of feedstocks during 2012
and 120,783 barrels during 2011.

                                                                 
                                                                 
Wholesale Segment                                                 
                                  Three Months Ended    Year Ended
                                  December 31,          December 31,
                                  2012       2011 (3)   2012       2011 (3)
                                  (In thousands, except per gallon data)
Statement of Operations Data                                       
Net sales (including intersegment  $1,120,455 $1,200,003 $4,860,291 $4,753,790
sales)
Operating costs and expenses:                                      
Cost of products sold (exclusive   1,091,538  1,182,818  4,748,077  4,645,851
of depreciation and amortization)
Direct operating expenses
(exclusive of depreciation and     15,176     16,599     67,491     65,829
amortization)
Selling, general, and              2,800      3,185      10,407     11,177
administrative expenses
Gain on disposal of assets,net    —          —          (509)      —
Depreciation and amortization      988        1,055      3,814      4,312
Total operating costs and expenses 1,110,502  1,203,657  4,829,280  4,727,169
Operating income (loss)            $9,953     $(3,654)   $31,011    $26,621
Operating Data                                                   
Fuel gallons sold                  356,183    401,306    1,520,581  1,543,173
Fuel gallons sold to retail        62,937     35,038     244,906    213,137
Average fuel sales price per       $3.28      $3.12      $3.32      $3.22
gallon
Average fuel cost per gallon       3.21       3.10       3.27       3.17
Fuel margin per gallon (1)         0.08       0.03       0.07       0.06
                                                                
Lubricant gallons sold             2,811      2,726      11,492     10,823
Average lubricant sales price per  $11.11     $11.46     $11.15     $10.85
gallon
Average lubricant cost per gallon  10.06      10.30      10.05      9.60
Lubricant margin (2)               9.5%       10.1%      9.9%       11.5%
                                                                
Realized hedging gain (loss)       $—         $(1,201)   $(23,643)  $2,962
Unrealized hedging gain (loss)     —          (1,067)    —          943
                                                       
                                  Three Months Ended    Year Ended
                                  December 31,          December 31,
                                  2012       2011 (3)   2012       2011 (3)
                                  (In thousands, except per gallon data)
Net Sales                                                        
Fuel sales (including intersegment $1,167,674 $1,251,983 $5,054,987 $4,971,199
sales)
Excise taxes included in fuel      (85,861)   (90,838)   (355,957)  (366,393)
sales
Lubricant sales                    31,232     31,236     128,171    117,478
Other sales (including             7,410      7,622      33,090     31,506
intersegment sales)
Net sales                          $1,120,455 $1,200,003 $4,860,291 $4,753,790
Cost of Products Sold                                            
Fuel cost of products sold         $1,144,503 $1,242,044 $4,970,965 $4,895,302
Excise taxes included in fuel cost (85,861)   (90,838)   (355,957)  (366,393)
of products sold
Lubricant cost of products sold    28,269     28,075     115,540    103,925
Other cost of products sold        4,627      3,537      17,529     13,017
Cost of products sold              $1,091,538 $1,182,818 $4,748,077 $4,645,851
Fuel margin per gallon (1)         $0.08      $0.03      $0.07      $0.06

(1)Fuel margin per gallon is a measurement calculated by dividing the
difference between fuel sales and cost of fuel sales for our wholesale segment
by the number of gallons sold. Fuel margin per gallon is a measure frequently
used in the petroleum products wholesale industry to measure operating results
related to fuel sales.

(2)Lubricant margin is a measurement calculated by dividing the difference
between lubricant sales and lubricant cost of products sold by lubricant
sales. Lubricant margin is a measure frequently used in the petroleum products
wholesale industry to measure operating results related to lubricant sales.

(3)Our wholesale segment began selling finished product through our Yorktown
facility during January2011. The finished products sold through our Yorktown
facility were purchased from third parties. Net sales of $347.3 million and
$1,338.7million, cost of products sold of $353.2 million and $1,327.6
million, and direct operating costs of $1.6 million and $6.8 million for the
three and nine months ended December31, 2011, respectively, were from new
wholesale activities through our Yorktown facility with no comparable activity
in the prior periods.

                                                         
Retail Segment                                            
                                       Three Months Ended Year Ended
                                       December 31,       December 31,
                                       2012      2011     2012       2011
                                       (In thousands, except per gallon data)
Statement of Operations Data                                       
Net sales (including intersegment       $303,672  $270,232 $1,212,070 $940,395
sales)
Operating costs and expenses:                                      
Cost of products sold (exclusive of     268,835   242,733  1,074,532  838,247
depreciation and amortization)
Direct operating expenses (exclusive of 27,054    24,762   102,793    80,458
depreciation and amortization)
Selling, general, and administrative    2,194     2,297    8,161      7,329
expenses
Depreciation and amortization           2,615     2,421    10,473     9,653
Total operating costs and expenses      300,698   272,213  1,195,959  935,687
Operating income (loss)                 $2,974    $(1,981) $16,111    $4,708
Operating Data                                                     
Fuel gallons sold                       75,024    70,296   291,244    230,429
Average fuel sales price per gallon     $3.47     $3.27    $3.56      $3.44
Average fuel cost per gallon            3.27      3.12     3.36       3.27
Fuel margin per gallon (1)              0.20      0.15     0.20       0.17
                                                                  
Merchandise sales                       $61,481   $56,402  $248,023   $204,998
Merchandise margin (2)                  28.5%     27.2%    29.0%      28.0%
Operating retail outlets at period end                   222        209
(3)
                                                                  
                                                                  
                                       Three Months Ended Year Ended
                                       December 31,       December 31,
                                       2012      2011     2012       2011
                                       (In thousands, except per gallon data)
Net Sales                                                            
Fuel sales (including intersegment      $260,294  $229,810 $1,036,404 $792,502
sales)
Excise taxes included in fuel sales     (29,091)  (23,498) (111,805)  (83,255)
Merchandise sales                       61,481    56,402   248,023    204,998
Other sales                             10,988    7,518    39,448     26,150
Net sales                               $303,672  $270,232 $1,212,070 $940,395
Costs of Products Sold                                             
Fuel cost of products sold              $245,105  $219,260 $978,979   $753,487
Excise taxes included in fuel cost of   (29,091)  (23,498) (111,805)  (83,255)
products sold
Merchandise cost of products sold       43,988    41,033   176,215    147,692
Other cost of products sold             8,833     5,938    31,143     20,323
Cost of products sold                   $268,835  $242,733 $1,074,532 $838,247
Fuel margin per gallon (1)              $0.20     $0.15    $0.20      $0.17

(1) Fuel margin per gallon is a measurement calculated by dividing the
difference between fuel sales and cost of fuel sales for our retail segment by
the number of gallons sold. Fuel margin per gallon is a measure frequently
used in the convenience store industry to measure operating results related to
fuel sales.

(2) Merchandise margin is a measurement calculated by dividing the difference
between merchandise sales and merchandise cost of products sold by merchandise
sales. Merchandise margin is a measure frequently used in the convenience
store industry to measure operating results related to merchandise sales.

(3) During the twelve months ended December31, 2012, we added 13 retail
outlets. We did not add any retail outlets during the fourth quarter of 2012.

Reconciliation of Special Items

We present certain additional financial measures below that are non-GAAP
measures within the meaning of Regulation G under the Securities Exchange Act
of 1934.

We present these non-GAAP measures to provide investors with additional
information to analyze our performance from period to period. We believe it is
useful for investors to understand our financial performance excluding these
special items so that investors can see the operating trends underlying our
business. Investors should not consider these non-GAAP measures in isolation
from, or as a substitute for, the financial information that we report in
accordance with GAAP. These non-GAAP measures reflect subjective
determinations by management and may differ from similarly titled non-GAAP
measures presented by other companies.

                                      Three Months Ended  Year Ended
                                      December31,        December31,
                                      2012     2011       2012      2011
                                      (In thousands, except per share data)
Reported diluted earnings (loss) per   $1.92    $(0.72)    $3.71     $1.34
share
Earnings (loss) before income taxes    $322,360 $(104,804) $617,087  $202,528
Loss and impairments on disposal of    —        450,796    —         450,796
assets,net
Unrealized (gain) loss from hedging    (81,519) (298,199)  229,672   (183,286)
future production
Loss on extinguishment of debt         —        29,695     7,654     34,336
Earnings before income taxes excluding 240,841  77,488     854,413   504,374
special items
Recomputed income taxes after special  (85,161) (26,729)   (302,120) (173,981)
items
Net income excluding special items     $155,680 $50,759    $552,293  $330,393
Diluted earnings per share excluding   $1.45    $0.50      $5.08     $3.14
special items

CONTACT: Investor and Analyst Contact:
         Jeffrey S. Beyersdorfer
         (602) 286-1530
        
         Media Contact:
         Gary W. Hanson
         (602) 286-1777

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