Alon USA Energy Comments on EPA's Proposed Tier III Standards
DALLAS, April 8, 2013
DALLAS, April 8, 2013 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) (the
"Company") is providing its current assessment of the Environmental Protection
Agency's recently proposed pollution standards for fuels, referred to as the
Tier III fuel standards. On March 29, 2013, the EPA published its proposed
Tier III fuel standards which require, among other things, a reduction in the
sulfur content of gasoline to a level of no more than 10 parts per million
("ppm") on an annual average basis.
The Company believes that its Krotz Springs, Louisiana refinery and the Big
Spring, Texas refinery, which is owned and operated by Alon USA Partners, LP
("Alon Partners"), will be required to comply with the proposed Tier III fuel
standards no later than 2020. The Company estimates that the capital
investment associated with upgrades necessary to meet the proposed sulfur
levels, on a consolidated basis with Alon Partners, will be less than $30
million. Increased operating costs associated with the incremental
desulfurization processes are not expected to be material to the Company's
performance. The Company's California refineries are currently capable of
producing fuels that satisfy the 10 ppm sulfur standard proposed by the EPA.
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
directly owns crude oil refineries in California, Louisiana and Oregon, with
an aggregate crude oil throughput capacity of approximately 180,000 barrels
per day. Alon also owns 100% of the general partner and approximately 82% of
the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which
owns a crude oil refinery in Texas with an aggregate crude oil throughput
capacity of approximately 70,000 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
Any statements in this press release that are not statements of historical
fact are forward-looking statements. Forward-looking statements reflect our
current expectations regarding future events, results or outcomes. These
expectations may or may not be realized. Some of these expectations may be
based upon assumptions or judgments that prove to be incorrect. In addition,
our business and operations involve numerous risks and uncertainties, many of
which are beyond our control, which could result in our expectations not being
realized or otherwise materially affect our financial condition, results of
operations and cash flows. Additional information regarding these and other
risks is contained in our filings with the Securities and Exchange Commission.
Contacts: Amir Barash, Vice President - IR
Alon USA Energy, Inc.
Investors: Jack Lascar/Sheila Stuewe
Dennard-Lascar & Assoc.
Media: Blake Lewis
Lewis Public Relations
SMG Public Relations
SOURCE Alon USA Energy, Inc.
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