EL PASO, Texas, Aug 07, 2008 (BUSINESS WIRE) -- Western Refining, Inc. (NYSE:WNR) today reported second quarter
2008 net income of $8.2 million, or $0.12 per diluted share, which
includes a non-cash pre-tax charge of $10.9 million, or $0.12 per
diluted share as a result of the write-off of unamortized loan fees.
The Company's net income was $155.0 million, or $2.29 per diluted
share, for the same period in 2007.
The decline in operating income was primarily the result of lower
refined product margins. The decline in margins was the result of
increasing crude oil and other feedstock costs, coupled with softness
in finished product prices, particularly gasoline and lower valued
products such as asphalt, fuel oil and petroleum coke. Higher margins
on diesel offset some of the impact of these lower margins.
Total refinery throughput for the second quarter of 2008 was
240,600 barrels per day, which included 222,100 barrels per day of
crude oil. Total refinery throughput for the second quarter of 2007
was 168,200 barrels per day, including 148,300 barrels per day of
crude oil. Refinery gross margin per throughput barrel was $9.29 for
the quarter ended June 30, 2008, compared to $21.85 for the same
period in 2007. The financial information for the second quarter of
2008 includes the results of the three refineries and the wholesale
and retail operations acquired from Giant on May 31, 2007. The
acquired operations of Giant are not included in the operating results
prior to May 31, 2007.
"We have made significant progress in improving the performance of
our operations notwithstanding the challenging industry fundamentals
that are impacting financial results," said Paul Foster, Western's
President and Chief Executive Officer. "During the quarter, we
continued to increase crude oil throughput at all of our refineries as
well as increasing the amount of cost advantaged crude oil that we are
processing in El Paso to approximately 22,000 barrels per day compared
to approximately 12,000 barrels per day this time last year. We have
also made great strides in the areas of safety and improving the
reliability of our refining operations. Since closing the Giant
merger, we have experienced minimal unplanned outages at our
refineries and our El Paso refinery recently celebrated the
achievement of 1,000,000 man hours of accident free operations."
Commenting on current market conditions, Foster said, "Diesel
margins continue to be strong and we are experiencing significant
improvement in asphalt margins as asphalt prices have increased and
the price of crude oil has declined. Gasoline margins continue to be
lower than historical levels as a result of reduced consumer demand
and product inventory builds."
As previously announced, Western has amended its credit facilities
and added a new $80 million credit facility, which is in addition to
its existing $800 million revolver. Western has also retained Goldman
Sachs & Co. and Banc of America Securities LLC, as its advisors to
evaluate a number of additional options to further strengthen its
balance sheet, including strategic alternatives for specific assets,
including the Yorktown refinery.
"As we continue to make progress on our operating initiatives, we
are also focused on strengthening the Company's capital structure and
reducing debt," said Foster. "Evaluating additional opportunities is a
prudent step towards achieving this goal and will help ensure that we
are best positioned to operate effectively in a business environment
that has changed dramatically over the last year."
Conference Call Information
A conference call is scheduled for August 7, 2008, at 9:00 a.m. ET
to discuss Western's financial results. The call can be accessed at
Western's website, www.wnr.com. The call can also be heard by dialing
(888) 679-8040, passcode: 99567796. The audio replay will be available
through August 21, 2008, by dialing (888) 286-8010, passcode:
25685080.
A copy of this press release, together with the reconciliations of
certain non-GAAP financial measures contained herein, can be accessed
on the investor relations menu on Western's website, www.wnr.com.
About Western Refining
Western Refining, Inc. is an independent refining and marketing
company headquartered in El Paso, Texas. Western has a refinery in El
Paso, two refineries in the Four Corners region of northern New Mexico
and a refinery in Yorktown, Virginia. Western's asset portfolio also
includes refined products terminals in Albuquerque, New Mexico and
Flagstaff, Arizona, asphalt terminals in Phoenix, Tucson, Albuquerque
and El Paso, retail service stations and convenience stores in
Arizona, Colorado and New Mexico, a fleet of crude oil and finished
product truck transports, and wholesale petroleum products operations
in Arizona, California, Colorado, Nevada, New Mexico, Texas and Utah.
More information about the Company is available at www.wnr.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements. The
forward-looking statements contained herein include statements about,
our ability to enhance our financial flexibility, the completion date
and amount of increased sour crude runs related to the completion of
our low sulfur gasoline project at our El Paso refinery and our
ability to reduce processing costs and improve energy efficiency at
all four of our refineries. These statements are subject to the
general risks inherent in our business and reflect our current
expectations regarding these matters. 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 its 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 June Six Months Ended June
30, 30,
------------------------ ------------------------
2008 2007 (1) 2008 2007 (1)
---------- ----------- ---------- -----------
(In thousands, except (In thousands, except
per share data) per share data)
Statement of
Operations Data:
Net sales $3,352,463 $ 1,659,154 $5,903,534 $ 2,653,173
Operating costs
and expenses:
Cost of
products sold
(exclusive of
depreciation and
amortization) 3,104,022 1,312,110 5,506,868 2,156,257
Direct
operating
expenses
(exclusive
of depreciation
and
amortization) 133,418 75,205 266,339 121,748
Selling,
general and
administrative
expenses 27,993 17,777 57,551 27,806
Maintenance
turnaround
expense 255 -- 1,210 --
Depreciation
and
amortization 27,752 12,500 53,349 16,909
---------- ----------- ---------- -----------
Total
operating
costs and
expenses 3,293,440 1,417,592 5,885,317 2,322,720
---------- ----------- ---------- -----------
Operating income 59,023 241,562 18,217 330,453
Interest income 381 5,970 952 10,175
Interest expense (20,121) (9,189) (38,685) (9,498)
Amortization of
loan fees (856) (289) (1,681) (414)
Write-off of
unamortized loan
fees (10,890) -- (10,890) --
Loss from
derivative
activities (11,367) (8,543) (13,848) (10,559)
Other income
(expense) (58) (970) 934 (971)
---------- ----------- ---------- -----------
Income (loss)
before income
taxes 16,112 228,541 (45,001) 319,186
Provision for
income taxes (7,922) (73,590) 12,790 (101,669)
---------- ----------- ---------- -----------
Net income (loss) $ 8,190 $ 154,951 $ (32,211) $ 217,517
========== =========== ========== ===========
Basic earnings
(loss) per share $ 0.12 $ 2.31 $ (0.48) $ 3.25
Dilutive earnings
(loss) per share $ 0.12 $ 2.29 $ (0.48) $ 3.22
Weighted average
basic shares
outstanding 67,746 67,097 67,663 67,018
Weighted average
dilutive shares
outstanding 67,768 67,598 67,663 67,506
Cash dividends
declared per
share $ 0.06 $ 0.06 $ 0.06 $ 0.10
Cash Flow Data:
Net cash provided
by (used in):
Operating
activities $ (32,391) $ 159,920 $ 36,251 $ 227,991
Investing
activities (46,014) (1,101,504) (116,567) (1,126,680)
Financing
activities 156,968 1,103,932 (90,360) 1,099,558
Other Data:
Adjusted
EBITDA(2) $ 75,986 $ 250,519 $ 60,814 $ 346,007
Capital
expenditures 46,239 47,328 116,792 70,111
Balance Sheet
Data (end of
period):
Cash and cash
equivalents $ 118,889 $ 464,034
Working capital 432,619 601,107
Total assets 3,475,664 3,376,010
Total debt 1,517,000 1,423,725
Stockholders'
equity 724,558 737,282
(1) Includes the results of operations for Giant beginning June 1,
2007, the date of the acquisition.
(2) Adjusted EBITDA represents earnings before interest expense,
income tax expense, amortization of loan fees, write-off of
unamortized loan fees, depreciation, amortization and maintenance
turnaround expense. However, Adjusted EBITDA is not a recognized
measurement under 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 and the
accounting effects of significant turnaround activities (which many
of our competitors capitalize and thereby exclude from their measures
of EBITDA) 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 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
-- our calculation of Adjusted EBITDA 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.
Three Months
Ended Six Months Ended
June 30, June 30,
----------------- -------------------
2008 2007 2008 2007
------- -------- -------- --------
(In thousands) (In thousands)
Net income (loss) $ 8,190 $154,951 $(32,211) $217,517
Interest expense 20,121 9,189 38,685 9,498
Provision for income taxes 7,922 73,590 (12,790) 101,669
Amortization of loan fees 856 289 1,681 414
Write-off of unamortized
loan
fees 10,890 -- 10,890 --
Depreciation and
amortization 27,752 12,500 53,349 16,909
Maintenance turnaround
expense 255 -- 1,210 --
------- -------- -------- --------
Adjusted EBITDA $75,986 $250,519 $ 60,814 $346,007
======= ======== ======== ========
Refining Segment
Three Months Ended June 30,
----------------------------------------------------------------------
2008
-----------------------------------
Legacy
El Paso Giant (2) Total
---------- ---------- ----------
(In thousands, except per barrel
data)
Net sales (including intersegment
sales) $1,797,765 $1,461,450 $3,259,215
Operating costs and expenses:
Cost of products sold
(exclusive of
depreciation and amortization) 1,669,748 1,386,107 3,055,855
Direct operating expenses
(exclusive
of depreciation and amortization) 47,105 57,634 104,739
Selling, general and
administrative
expenses 4,294 4,432 8,726
Maintenance turnaround expense 255 -- 255
Depreciation and amortization 5,321 18,466 23,787
---------- ---------- ----------
Total operating costs and
expenses 1,726,723 1,466,639 3,193,362
---------- ---------- ----------
Operating income (loss) $ 71,042 $ (5,189) $ 65,853
---------- ---------- ----------
Key Operating Statistics:
Total sales volume (bpd) (4) 144,667 123,400 268,067
Total refinery production (bpd) 134,707 103,450 238,157
Total refinery throughput (bpd)
(5) 136,635 103,976 240,611
Per barrel of throughput:
Refinery gross margin (6) 10.30 7.96 9.29
Gross profit (6) 9.87 6.01 8.20
Direct operating expenses (7) 3.79 6.09 4.78
2007
----------------------------------
Legacy
Giant
El Paso (1)(2)(3) Total
---------- ---------- ----------
(In thousands, except per barrel
data)
Net sales (including intersegment
sales) $1,311,932 $ 300,120 $1,612,052
Operating costs and expenses:
Cost of products sold (exclusive
of
depreciation and amortization) 1,013,908 263,774 1,277,682
Direct operating expenses
(exclusive
of depreciation and amortization) 51,805 17,312 69,117
Selling, general and
administrative
expenses 3,490 967 4,457
Maintenance turnaround expense -- -- --
Depreciation and amortization 5,134 6,609 11,743
---------- ---------- ----------
Total operating costs and
expenses 1,074,337 288,662 1,362,999
---------- ---------- ----------
Operating income (loss) $ 237,595 $ 11,458 $ 249,053
---------- ---------- ----------
Key Operating Statistics:
Total sales volume (bpd) (4) 153,852 36,615 190,467
Total refinery production (bpd) 135,542 30,757 166,299
Total refinery throughput (bpd) (5) 137,482 30,708 168,190
Per barrel of throughput:
Refinery gross margin (6) 23.82 13.01 21.85
Gross profit (6) 23.41 10.64 21.08
Direct operating expenses (7) 4.14 6.20 4.52
Six Months Ended June 30,
----------------------------------------------------------------------
2008
-----------------------------------
Legacy
El Paso Giant (2) Total
---------- ---------- ----------
(In thousands, except per barrel
data)
Net sales (including intersegment
sales) $3,210,382 $2,604,612 $5,814,994
Operating costs and expenses:
Cost of products sold
(exclusive of
depreciation and amortization) 3,016,516 2,483,651 5,500,167
Direct operating expenses
(exclusive
of depreciation and amortization) 95,339 116,545 211,884
Selling, general and
administrative
expenses 9,473 8,280 17,753
Maintenance turnaround expense 1,210 -- 1,210
Depreciation and amortization 10,764 34,819 45,583
---------- ---------- ----------
Total operating costs and
expenses 3,133,302 2,643,295 5,776,597
---------- ---------- ----------
Operating income (loss) $ 77,080 $ (38,683) $ 38,397
---------- ---------- ----------
Key Operating Statistics:
Total sales volume (bpd) (4) 144,190 122,886 267,076
Total refinery production (bpd) 129,637 104,587 234,224
Total refinery throughput (bpd)
(5) 131,405 104,517 235,922
Per barrel of throughput:
Refinery gross margin (6) 8.11 6.36 7.33
Gross profit (6) 7.66 4.53 6.27
Direct operating expenses (7) 3.99 6.13 4.93
2007
----------------------------------
Legacy
Giant
El Paso (1)(2)(3) Total
---------- ---------- ----------
(In thousands, except per barrel
data)
Net sales (including intersegment
sales) $2,305,951 $300,120 $2,606,071
Operating costs and expenses:
Cost of products sold (exclusive
of
depreciation and amortization) 1,858,055 263,774 2,121,829
Direct operating expenses
(exclusive
of depreciation and amortization) 98,348 17,312 115,660
Selling, general and
administrative
expenses 5,945 966 6,911
Maintenance turnaround expense -- -- --
Depreciation and amortization 9,543 6,609 16,152
---------- ---------- ----------
Total operating costs and
expenses 1,971,891 288,661 2,260,552
---------- ---------- ----------
Operating income (loss) $ 334,060 $ 11,459 $ 345,519
---------- ---------- ----------
Key Operating Statistics:
Total sales volume (bpd) (4) 151,178 18,408 169,586
Total refinery production (bpd) 133,964 15,464 149,428
Total refinery throughput (bpd) (5) 135,720 15,439 151,159
Per barrel of throughput:
Refinery gross margin (6) 18.23 13.01 17.70
Gross profit (6) 17.84 10.64 17.11
Direct operating expenses (7) 4.00 6.20 4.23
(1) Includes the results of operations for Giant beginning June 1,
2007, the date of the acquisition.
(2) Includes transportation and other related revenues and expenses
not specific to a particular refinery.
(3) Total sales volume, refinery production and refinery throughput
related to the refineries acquired from Giant for the three and
six months ended June 30, 2007, was calculated by dividing June
2007 volumes by 91 days and 181 days, respectively.
(4) Includes sales of refined products sourced from our refinery
production as well as refined products purchased from third
parties.
(5) Total refinery throughput includes crude oil, other feedstocks,
and blendstocks.
(6) 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. We have experienced gains or losses
from derivative activities that are not taken into account in
calculating refinery gross margin. 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 tables reconcile gross profit to refinery gross margin
for the periods presented:
Three Months Ended June 30,
----------------------------------------------------------------------
2008
--------------------------------
Giant
El Paso Legacy Total
---------- ---------- ----------
(In thousands, except per barrel
data)
Net sales $1,797,765 $1,461,450 $3,259,215
Cost of products sold (exclusive of
depreciation and amortization) 1,669,748 1,386,107 3,055,855
Depreciation and amortization 5,321 18,466 23,787
---------- ---------- ----------
Gross profit 122,696 56,877 179,573
Plus depreciation and amortization 5,321 18,466 23,787
---------- ---------- ----------
Refinery gross margin $ 128,017 $ 75,343 $ 203,360
========== ========== ==========
Refinery gross margin per refinery
throughput barrel $ 10.30 $ 7.96 $ 9.29
========== ========== ==========
Gross profit per refinery
throughput barrel $ 9.87 $ 6.01 $ 8.20
========== ========== ==========
2007
------------------------------
Giant
El Paso Legacy Total
---------- -------- ----------
(In thousands, except per
barrel data)
Net sales $1,311,932 $300,120 $1,612,052
Cost of products sold (exclusive of
depreciation and amortization) 1,013,908 263,774 1,277,682
Depreciation and amortization 5,134 6,609 11,743
---------- -------- ----------
Gross profit 292,890 29,737 322,627
Plus depreciation and amortization 5,134 6,609 11,743
---------- -------- ----------
Refinery gross margin $ 298,024 $ 36,346 $ 334,370
========== ======== ==========
Refinery gross margin per refinery
throughput barrel $ 23.82 $ 13.01 $ 21.85
========== ======== ==========
Gross profit per refinery
throughput barrel $ 23.41 $ 10.64 $ 21.08
========== ======== ==========
Six Months Ended June 30,
----------------------------------------------------------------------
2008
----------------------------------
Giant
El Paso Legacy Total
---------- ---------- ----------
(In thousands, except per barrel
data)
Net sales $3,210,382 $2,604,612 $5,814,994
Cost of products sold (exclusive of
depreciation and amortization) 3,016,516 2,483,651 5,500,167
Depreciation and amortization 10,764 34,819 45,583
---------- ---------- ----------
Gross profit 183,102 86,142 269,244
Plus depreciation and amortization 10,764 34,819 45,583
---------- ---------- ----------
Refinery gross margin $ 193,866 $ 120,961 $ 314,827
========== ========== ==========
Refinery gross margin per refinery
throughput barrel $ 8.11 $ 6.36 $ 7.33
========== ========== ==========
Gross profit per refinery
throughput barrel $ 7.66 $ 4.53 $ 6.27
========== ========== ==========
2007
--------------------------------
Giant
El Paso Legacy Total
---------- -------- ----------
(In thousands, except per barrel
data)
Net sales $2,305,951 $300,120 $2,606,071
Cost of products sold (exclusive of
depreciation and amortization) 1,858,055 263,774 2,121,829
Depreciation and amortization 9,543 6,609 16,152
---------- -------- ----------
Gross profit 438,353 29,737 468,090
Plus depreciation and amortization 9,543 6,609 16,152
---------- -------- ----------
Refinery gross margin $ 447,896 $ 36,346 $ 484,242
========== ======== ==========
Refinery gross margin per refinery
throughput barrel $ 18.23 $ 13.01 $ 17.70
========== ======== ==========
Gross profit per refinery
throughput barrel $ 17.84 $ 10.64 $ 17.11
========== ======== ==========
(7)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.
The following tables set forth our summary refining throughput and
production data for the periods presented below:
All Refineries
-------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Key Operating Statistics:
Refinery product yields (bpd)
Gasoline 119,958 88,990 119,942 79,644
Diesel and jet fuel 95,470 64,354 91,686 58,656
Residuum 6,670 6,222 5,701 5,917
Other 9,729 5,408 10,422 4,545
-------- -------- -------- --------
Liquid products 231,827 164,974 227,751 148,762
By-products (coke and
sulfur) 6,330 1,325 6,473 666
-------- -------- -------- --------
Total refinery production
(bpd) 238,157 166,299 234,224 149,428
======== ======== ======== ========
Refinery throughput (bpd)
Sweet crude oil 160,567 124,631 157,646 116,155
Sour or heavy crude oil 61,580 23,657 58,379 17,515
Other
feedstocks/blendstocks 18,464 19,902 19,897 17,489
-------- -------- -------- --------
Total refinery throughput
(bpd) 240,611 168,190 235,922 151,159
======== ======== ======== ========
El Paso Refinery
-----------------------------
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
-------- --------- -------- ---------
Key Operating Statistics:
Refinery product yields
(bpd)
Gasoline 66,811 71,939 65,780 71,071
Diesel and jet fuel 57,626 53,881 54,221 53,391
Residuum 6,670 6,222 5,701 5,917
Other 3,600 3,500 3,935 3,585
-------- --------- -------- ---------
Total refinery
production (bpd) 134,707 135,542 129,637 133,964
======== ========= ======== =========
Refinery throughput (bpd)
Sweet crude oil 104,325 108,833 103,225 108,212
Sour crude oil 22,140 12,470 16,996 11,891
Other
feedstocks/blendstocks 10,170 16,179 11,184 15,617
-------- --------- -------- ---------
Total refinery
throughput (bpd) 136,635 137,482 131,405 135,720
======== ========= ======== =========
Total sales volume (bpd) 144,667 153,852 144,190 151,178
Per barrel of throughput:
Refinery gross margin $ 10.30 $ 23.82 $ 8.11 $ 18.23
Direct operating expenses 3.79 4.14 3.99 4.00
Yorktown Refinery
---------------------------
Three Six
Months Months
Ended One Month Ended One Month
June Ended June Ended June
30, June 30, 30, 30,
2008 2007 (1) 2008 2007 (1)
------- --------- ------- -----------
Key Operating Statistics:
Refinery product yields
(bpd)
Gasoline 30,877 32,855 32,892 32,855
Diesel and jet fuel 27,821 24,080 28,136 24,080
Residuum -- -- -- --
Other 4,797 4,763 5,231 4,763
------- --------- ------- -----------
Liquid products 63,495 61,698 66,259 61,698
By-products (coke
and sulfur) 6,330 4,018 6,473 4,018
------- --------- ------- -----------
Total refinery production
(bpd) 69,825 65,716 72,732 65,716
======= ========= ======= ===========
Refinery throughput (bpd)
Sweet crude oil 24,110 23,000 24,551 23,000
Sour or heavy crude oil 39,440 33,932 41,383 33,932
Other
feedstocks/blendstocks 5,461 7,163 5,548 7,163
------- --------- ------- -----------
Total refinery
throughput (bpd) 69,011 64,095 71,482 64,095
======= ========= ======= ===========
Total sales volume (bpd) 79,492 73,508 76,404 73,508
Per barrel of throughput:
Refinery gross margin $ 5.86 $ 6.41 $ 4.57 $ 6.41
Direct operating
expenses 4.61 4.40 4.59 4.40
Four Corners Refineries
---------------------------------
Three One Six One
Months Month Months Month
Ended Ended Ended Ended
June June June June
30, 30, 30, 30,
2008 2007 (1) 2008 2007 (1)
------- -------- ------- --------
Key Operating Statistics:
Refinery product yields (bpd)
Gasoline 22,270 18,868 21,270 18,868
Diesel and jet fuel 10,023 7,688 9,330 7,688
Residuum -- -- -- --
Other 1,332 1,025 1,255 1,025
------- -------- ------- --------
Total refinery production
(bpd) 33,625 27,581 31,855 27,581
======= ======== ======= ========
Refinery throughput (bpd)
Sweet crude oil 32,132 24,922 29,870 24,922
Sour crude oil -- -- -- --
Other feedstocks/blendstocks 2,833 4,130 3,165 4,130
------- -------- ------- --------
Total refinery throughput
(bpd) 34,965 29,052 33,035 29,052
======= ======== ======= ========
Total sales volume (bpd) 43,908 24,923 46,482 24,923
Per barrel of throughput:
Refinery gross margin $ 9.37 $ 25.09 $ 7.97 $ 25.09
Direct operating expenses 7.91 7.03 8.29 7.03
(1) Total sales volume, refinery production and refinery throughput
related to the refineries acquired for June 2007 was calculated by
dividing June 2007 volumes by 30 days.
Retail Segment
Three One Six One
Months Month Months Month
Ended Ended Ended Ended
June June June June
30, 30, 30, 30,
2008 2007 (1) 2008 2007 (1)
-------- -------- -------- --------
(In thousands, except per gallon data)
Statement of Operations
Data:
Net sales (including
intersegment sales) $239,445 $68,526 $428,854 $68,526
Operating costs and
expenses:
Cost of products sold
(exclusive of
depreciation and
amortization) 216,567 60,052 387,116 60,052
Direct operating expenses
(exclusive
of depreciation and
amortization) 16,685 5,173 32,541 5,173
Selling, general and
administrative
expenses 1,444 505 2,691 505
Depreciation and
amortization 2,124 486 4,010 486
-------- -------- -------- --------
Total operating costs
and expenses 236,820 66,216 426,358 66,216
-------- -------- -------- --------
Operating income $ 2,625 $ 2,310 $ 2,496 $ 2,310
======== ======== ======== ========
Operating Data:
Fuel gallons sold (in
thousands) 52,990 18,250 104,473 18,250
Fuel margin per gallon
(1) $ 0.152 $ 0.208 $ 0.134 $ 0.208
Merchandise sales (2) $ 47,883 $15,954 $ 90,035 $15,954
Merchandise margin 28.1% 26.7% 27.8% 26.7%
Operating retail outlets
at period end 154 156 154 156
Three One One
Months Month Six Month
Ended Ended Months Ended
June June Ended June
30, 30, June 30, 30,
2008 2007 (1) 2008 2007 (1)
-------- -------- -------- --------
(In thousands, except per gallon data)
Net sales:
Fuel sales $198,896 $57,400 $359,343 $57,400
Excise taxes included in
fuel revenues (13,456) (6,773) (33,334) (6,773)
Merchandise sales 47,883 15,954 90,035 15,954
Other sales 6,122 1,945 12,810 1,945
-------- -------- -------- --------
Net sales $239,445 $68,526 $428,854 $68,526
======== ======== ======== ========
Cost of products sold:
Fuel cost of products sold $190,850 $53,611 $345,306 $53,611
Excise taxes included in
fuel cost of
products sold (13,456) (6,773) (33,334) (6,773)
Merchandise cost of
products sold 34,410 11,687 65,047 11,687
Other cost of products
sold 4,763 1,527 10,097 1,527
-------- -------- -------- --------
Cost of products sold $216,567 $60,052 $387,116 $60,052
======== ======== ======== ========
Fuel margin per gallon $ 0.152 $ 0.208 $ 0.134 $ 0.208
======== ======== ======== ========
(1) Includes the results of operations for Giant beginning June 1,
2007, the date of the acquisition.
(2) 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.
Wholesale Segment
Three One One
Months Month Month
Ended Ended Six Months Ended
June June Ended June
30, 30, June 30, 30,
2008 2007 (1) 2008 2007 (1)
-------- -------- ---------- --------
(In thousands, except per gallon data)
Statement of Operations
Data:
Net sales (including
intersegment sales) $706,489 $145,751 $1,189,421 $145,751
Operating costs and
expenses:
Cost of products sold
(exclusive of
depreciation and
amortization) 678,860 139,874 1,137,856 139,874
Direct operating
expenses (exclusive
of depreciation and
amortization) 17,418 2,592 33,358 2,592
Selling, general and
administrative
expenses 5,228 1,251 9,569 1,251
Depreciation and
amortization 1,351 221 2,764 221
-------- -------- ---------- --------
Total operating
costs and expenses 702,857 143,938 1,183,547 143,938
-------- -------- ---------- --------
Operating income $ 3,632 $ 1,813 $ 5,874 $ 1,813
======== ======== ========== ========
Operating Data:
Fuel gallons sold (in
thousands) 187,812 55,580 347,287 55,580
Fuel margin per gallon
(1) $ 0.07 $ 0.07 $ 0.07 $ 0.07
Lubricant sales (2) $ 41,020 $ 11,550 $ 79,932 $ 11,550
Lubricant margins 11.7% 10.4% 11.6% 10.4%
One
Three Month
Months Ended Six Months One Month
Ended June Ended Ended
June 30, 30, June 30, June 30,
2008 2007 (1) 2008 2007 (1)
-------- -------- ---------- ---------
(In thousands, except per gallon data)
Net sales:
Fuel sales $704,605 $148,390 $1,185,375 $ 148,390
Excise taxes included
in fuel sales (51,297) (15,060) (98,866) (15,060)
Lubricant sales 41,020 11,550 79,932 11,550
Other sales 12,161 871 22,980 871
-------- -------- ---------- ---------
Net sales $706,489 $145,751 $1,189,421 $ 145,751
======== ======== ========== =========
Cost of products sold:
Fuel cost of products
sold $691,254 $144,527 $1,160,730 $ 144,527
Excise taxes included
in fuel sales (51,297) (15,060) (98,866) (15,060)
Lubricant cost of
products sold 36,221 10,489 70,678 10,489
Other cost of products
sold 2,682 (82) 5,314 (82)
-------- -------- ---------- ---------
Cost of products sold $678,860 $139,874 $1,137,856 $ 139,874
======== ======== ========== =========
Fuel margin per gallon $ 0.07 $ 0.07 $ 0.07 $ 0.07
======== ======== ========== =========
(1) Includes the results of operations for Giant beginning June 1,
2007, the date of the acquisition.
(2) 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.
SOURCE: Western Refining, Inc.
Western Refining, Inc.
Investor and Analyst Contact:
Mark Cox, 915-534-1400
or
Media Contact:
Gary Hanson, 915-534-1400
