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Western Refining Reports Second Quarter 2008 Financial Results
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