Alon USA Partners Reports Fourth Quarter and Full Year 2012 Results

     Alon USA Partners Reports Fourth Quarter and Full Year 2012 Results

Company schedules conference call for March 7, 2013 at 10:00 a.m. Eastern

PR Newswire

DALLAS, March 4, 2013

DALLAS, March 4, 2013 /PRNewswire/ -- Alon USA Partners, LP (NYSE: ALDW)
("Alon") today announced results for the quarter and year ended December 31,
2012. Net income for the fourth quarter of 2012 was $113.2 million compared to
$45.5 million for the same period last year. Net income for the year ended
December 31, 2012 was $381.9 million compared to $294.4 million for the same
period last year.

Paul Eisman, CEO and President, commented, "It is exciting to have the
opportunity to present the financial results of our newly formed public
partnership, Alon USA Partners, LP. The partnership had a very successful
year, increasing adjusted EBITDA by almost $100 million dollars from
approximately $370 million in 2011 to $470 million in 2012.

"During the fourth quarter, we generated over $165 million of cash flow from
operating activities as a result of the positive margin environment that
continues to remain strong. We generated an operating margin of $25.26 per
barrel benefiting from both continuing wide Cushing crude differentials but
also from widening location differentials at Midland. Additionally, we
benefited from good operations as we increased throughput during the fourth
quarter to more than 72,000 barrels per day.

"Consequently, as a result of our strong performance, we made prorated cash
distributions in accordance with the prospectus of $0.57 per unit to
unitholders for the period following the IPO. If the cash distribution was for
the entire fourth quarter, then the cash distribution would have been $1.92
per unit.

"Looking forward to first quarter, we see continuing strong crude oil
differentials and resulting good margins. We completed some maintenance work
in the first quarter, and as a result, expect throughput in the first quarter
of 2013 to average approximately 60,000 barrels per day. We anticipate
throughput for the full year to average approximately 68,000 barrels per day."

FOURTH QUARTER 2012

Refinery operating margin at the Big Spring refinery was $25.26 per barrel for
the fourth quarter of 2012 compared to $14.14 per barrel for the same period
in 2011. This increase is due to higher Gulf Coast 3/2/1 crack spreads and a
widening of the WTI to WTS spread. The refinery's throughput for the fourth
quarter of 2012 averaged 72,109 barrels per day ("bpd") compared to 71,700 bpd
for the same period in 2011.

The average Gulf Coast 3/2/1 crack spread was $27.10 per barrel for the fourth
quarter of 2012 compared to $19.95 per barrel for the fourth quarter of 2011.
The average WTI to WTS spread for the fourth quarter of 2012 was $9.55 per
barrel compared to $0.84 per barrel for the same period in 2011.

YEAR-TO-DATE 2012

Refinery operating margin at the Big Spring refinery was $23.50 per barrel for
2012 compared to $20.89 per barrel for 2011. This increase is due to higher
Gulf Coast 3/2/1 crack spreads and a widening of the WTI to WTS spread. The
refinery's throughput for 2012 averaged 68,946 bpd compared to 63,614 bpd for
the same period in 2011.

The average Gulf Coast 3/2/1 crack spread for 2012 was $27.43 per barrel
compared to $23.37 per barrel for 2011. The average WTI to WTS spread for 2012
was $5.46 per barrel compared to $2.06 per barrel for 2011.

CONFERENCE CALL

Alon has scheduled a conference call for Thursday, March 7, 2013, at 10:00
a.m. Eastern, to discuss the fourth quarter 2012 results. To access the call,
please dial 1-800-762-8779, or 480-629-9645, for international callers, and
ask for the Alon USA Partners, LP call at least 10 minutes prior to the start
time. Investors may also listen to the conference live on the Alon Partners
website, http://www.alonpartners.com, by logging onto that site and clicking
"Investors". A telephonic replay of the conference call will be available
through March 21, 2013, and may be accessed by calling 1-800-406-7325, or
303-590-3030, for international callers, and using the passcode 4593733#. A
web cast archive will also be available at www.alonpartners.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.

This release serves as qualified notice to nominees under Treasury Regulation
Section 1.1446-4(b). Please note that 100% of Alon Partners' distributions to
foreign investors are attributable to income that is effectively connected
with a United States trade or business. Accordingly, all of Alon Partners'
distributions to foreign investors are subject to federal income tax
withholding at the highest effective tax rate for individuals or corporations,
as applicable. Nominees, and not Alon Partners, are treated as the withholding
agents responsible for withholding on the distributions received by them on
behalf of foreign investors.

Alon USA Partners, LP is a Delaware limited partnership formed in August 2012
by Alon USA Energy, Inc. (NYSE: ALJ). Alon Partners owns and operates a crude
oil refinery in Big Spring, Texas with total throughput capacity of
approximately 70,000 barrels per day. Alon Partners refines crude oil into
finished products, which is marketed primarily in West Texas, Central Texas,
Oklahoma, New Mexico and Arizona through its wholesale distribution network to
both Alon Energy's retail convenience stores and other third-party
distributors.

          Amir Barash, Vice President-IR
Contacts:
          Alon USA Energy, Inc.
          972-367-3808
          Investors: Jack Lascar/ Sheila Stuewe

          Dennard-Lascar Associates / 713-529-6600
          Media: Blake Lewis

          Lewis Public Relations

          214-635-3020

          Ruth Sheetrit

          SMG Public Relations

          011-972-547-555551



ALON USA PARTNERS, LP AND SUBSIDIARIES CONSOLIDATED
EARNINGS RELEASE
RESULTS OF
OPERATIONS -
FINANCIAL DATA
(ALL INFORMATION
IN THIS PRESS
RELEASE EXCEPT FOR
BALANCE SHEET DATA
AS OF DECEMBER 31,
2011, AND INCOME
STATEMENT DATA FOR
THE YEAR ENDED
DECEMBER 31, 2011,
IS UNAUDITED)
                   Three Months Ended December 31,  Year Ended December 31,
                   2012              2011           2012          2011
STATEMENT OF
OPERATIONS DATA:
Net sales (1)      $   825,626       $  856,488     $ 3,476,817   $ 3,207,969
Operating costs
and expenses:
Cost of sales      658,039           763,190        2,883,741     2,722,918
Direct operating   27,685            25,034         100,908       98,178
expenses
Selling, general
and administrative 4,737             3,420          22,807        15,633
expenses
Depreciation and   11,046            10,242         46,009        40,448
amortization
Total operating    701,507           801,886        3,053,465     2,877,177
costs and expenses
Loss on
disposition of     —                 (10)           —             —
assets
Operating income   124,119           54,592         423,352       330,792
Interest expense   (7,165)           (4,414)        (22,235)      (16,719)
Interest expense - (2,701)           (4,267)        (15,691)      (17,067)
related parties
Other income       (3)               18             8             18
(loss), net
Income before
state income tax   114,250           45,929         385,434       297,024
expense
State income tax   1,018             444            3,536         2,597
expense
Net income         $   113,232       $  45,485      $ 381,898     $ 294,427
Net income         $   113,232                      $ 381,898
less: Net income
attributable to    76,112                           344,778
predecessor
operations
Net income
attributable to    $   37,120                       $ 37,120
Alon USA Partners,
LP
Earnings per unit,
basic and diluted  $   0.59                         $ 0.59
(2)
Weighted average
common units
outstanding, basic 62,500                           62,500
and diluted (in
thousands) (2)
CASH FLOW DATA:
Net cash provided
by (used in):
Operating          $   165,209       $  92,988      $ 528,825     $ 258,575
activities
Investing          (6,314)           (1,549)        (31,769)      (19,545)
activities
Financing          (122,308)         (100,240)      (567,000)     (123,437)
activities
OTHER DATA:
Adjusted EBITDA    $   135,162       $  64,862      $ 469,369     $ 371,258
(3)
Capital            6,314             1,370          24,490        12,460
expenditures
Capital
expenditures for   —                 169            7,279         7,085
turnaround and
catalyst
KEY OPERATING
STATISTICS:
Per barrel of
throughput:
Refinery operating $   25.26         $  14.14       $ 23.50       $ 20.89
margin (4)
Refinery direct
operating expense  4.17              3.80           4.00          4.23
(5)





RESULTS OF OPERATIONS
- FINANCIAL DATA
(ALL INFORMATION IN
THIS PRESS RELEASE
EXCEPT FOR BALANCE
SHEET DATA AS OF
DECEMBER 31, 2011, AND
INCOME STATEMENT DATA
FOR THE YEAR ENDED
DECEMBER 31, 2011, IS
UNAUDITED)
                       Three Months Ended December  Year Ended December 31,
                       31,
                       2012            2011         2012          2011
AVERAGE PRICING
STATISTICS:
WTI crude oil (per     $   88.10       $  94.03     $  94.14      $  95.07
barrel)
WTS crude oil (per     78.55           93.19        88.68         93.01
barrel)
Crack spreads (per
barrel):
Gulf Coast (WTI) 3-2-1 $   27.10       $  19.95     $  27.43      $  23.37
(6)
Crude oil
differentials (per
barrel):
Cushing WTI less       $   9.55        $  0.84      $  5.46       $  2.06
Cushing WTS (7)
Product price (dollars
per gallon):
Gulf Coast unleaded    $   2.60        $  2.59      $  2.82       $  2.75
gasoline
Gulf Coast ultra-low   3.04            2.96         3.05          2.97
sulfur diesel
Natural gas (per       3.54            3.48         2.83          4.03
MMBtu)
                                                    December 31,  December 31,
                                                    2012          2011
BALANCE SHEET DATA (end of period):                 (dollars in thousands)
Cash and cash equivalents                           $  66,001     $  135,945
Working capital                                     1,702         148,222
Total assets                                        763,423       810,480
Total debt                                          295,311       533,592
Total equity                                        181,726       102,689



THROUGHPUT AND For the Three Months Ended          For the Year Ended
PRODUCTION
DATA:          December 31,                        December 31,
               2012              2011              2012              2011
               bpd      %        bpd      %        bpd      %        bpd      %
Refinery
throughput:
WTS crude      48,894   67.8     57,335   80.0     52,190   75.7     51,202   80.4
WTI crude      19,180   26.6     11,306   15.8     14,396   20.9     10,023   15.8
Blendstocks    4,035    5.6      3,059    4.2      2,360    3.4      2,389    3.8
Total refinery 72,109   100.0    71,700   100.0    68,946   100.0    63,614   100.0
throughput (8)
Refinery
production:
Gasoline       37,572   52.3     37,443   52.1     34,637   50.3     31,105   49.1
Diesel/jet     22,612   31.4     23,035   32.0     22,329   32.5     20,544   32.3
Asphalt        3,615    5.0      4,638    6.4      4,084    5.9      4,539    7.1
Petrochemicals 4,199    5.8      4,354    6.1      4,054    5.9      3,837    6.0
Other          3,939    5.5      2,452    3.4      3,706    5.4      3,488    5.5
Total refinery 71,937   100.0    71,922   100.0    68,810   100.0    63,513   100.0
production (9)
Refinery
utilization             97.2  %           98.1  %           97.3  %           90.8  %
(10)
               Includes sales to related parties of $138,412 and $136,761 for the
(1)            three months ended December 31, 2012 and 2011, respectively, and
               $588,828 and $553,253 for the years ended December 31, 2012 and 2011,
               respectively.
               The calculation of earnings per unit includes only earnings for the
(2)            period following the closing of the initial public offering through
               December 31, 2012 ("Post IPO Period") of $37,120 for the three months
               and year ended December 31, 2012.
               Adjusted EBITDA represents earnings before state income tax expense,
               interest expense, depreciation and amortization, and loss 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
(3)            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 state income tax expense, interest expense, loss on
               disposition of assets and the accounting effects of capital
               expenditures and acquisitions, items that may vary for different
               companies for reasons unrelated to overall operating performance.
               Adjusted EBITDA has limitations as an analytical tool, and you should
               not consider it in isolation, or as a substitute for analysis of our
               results as reported under GAAP. Some of these limitations are:
                      Adjusted EBITDA does not reflect our cash expenditures or
               -      future requirements for capital expenditures or contractual
                      commitments;
                      Adjusted EBITDA does not reflect the interest expense or the
               -      cash requirements necessary to service interest or principal
                      payments on our debt;
               -      Adjusted EBITDA does not reflect 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 to Adjusted EBITDA for the three
months and years ended December 31, 2012 and 2011, respectively:

               For the Three Months Ended          For the Year Ended
               December 31,                        December 31,
               2012                2011            2012            2011
               (dollars in thousands)
Net income     $   113,232         $   45,485      $  381,898      $  294,427
State income   1,018               444             3,536           2,597
tax expense
Interest       7,165               4,414           22,235          16,719
expense
Interest
expense -      2,701               4,267           15,691          17,067
related
parties
Depreciation
and            11,046              10,242          46,009          40,448
amortization
Loss on
disposition of —                   10              —               —
assets
Adjusted       $   135,162         $   64,862      $  469,369      $  371,258
EBITDA
               Refinery operating margin is a per barrel measurement
               calculated by dividing the margin between net sales and cost of
               sales by the refinery's throughput volumes. Industry-wide
(4)            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
               margin to these crack spreads to assess our operating
               performance relative to other participants in our industry.
               Refinery direct operating expense is a per barrel measurement
(5)            calculated by dividing direct operating expenses by total
               throughput volumes.
               We compare our refinery 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
(6)            cracked, into two barrels of gasoline and one barrel of diesel.
               We calculate the Gulf Coast 3/2/1 crack spread using the market
               values of Gulf Coast conventional gasoline and ultra-low sulfur
               diesel and the market value of WTI, a light, sweet crude oil.
               The WTI/WTS, or sweet/sour, spread represents the differential
(7)            between the average value per barrel of WTI crude oil and the
               average value per barrel of WTS crude oil.
               Total refinery throughput represents the total barrels per day
(8)            of crude oil and blendstock inputs in the refinery production
               process.
               Total refinery production represents the barrels per day of
(9)            various refined products produced from processing crude and
               other refinery feedstocks through the crude units and other
               conversion units.
               Refinery utilization represents average daily crude oil
(10)           throughput divided by crude oil capacity, excluding planned
               periods of downtime for maintenance and turnarounds.



SOURCE Alon USA Partners, LP