Paul Eisman President & Chief Executive Officer Barclays CEO Energy-Power Conference September 2015
Alon USA Energy - Overview Alon is an independent refiner and marketer of petroleum products with 217,000 barrels per day of refining capacity focused on growth and innovation to meet both the energy and environmental needs of today,…
Strategically Located Assets Refining Richmond Beach Washington Refinery 217,000 bpd of capacity Exchange Terminal Retail Alon USA Terminal Oregon 308 stores in Central and West Texas and Third-Party Terminal New Mexico…
Alon USAs Strategic Focus Reduced net debt by over 600 million since the end of 2011 to 275 Strengthening Balance Sheet, million at the end of 2Q 2015 Increasing Returns to Increased regular dividend by 67% to 0.10 per share per…
Where We Are Heading Expect an accretive logistics MLP transaction using existing assets across our businesses After reducing net debt by over 600 million since the end of 2011 by mostly using cash from operating activities,…
Sustainable Feedstock Advantage WTI-based crudes and light sweet Gulf Coast crudes (LLS) are expected to trade at a discount to Brent, providing a sustainable feedstock advantage for Big Spring and Krotz Springs LLS discounts narrow…
Big Spring: In the Heart of the Permian Basin Several rigs concentrated in the proximity of the refinery Permian rig count has increased by 24 rigs since bottoming in late June 2015; rig count has risen to 255 rigs as of late August1…
Alon USA Partners Overview Refinery Operating Margin1 Alon USA Energy owns 82% of Alon USA Partners (NYSE: ALDW), a variable distribution MLP, which owns the Big Spring refinery and its integrated wholesale marketing business Big…
Integrated Wholesale Marketing Integrated wholesale fuels marketing business supplies 640 branded sites, including substantially all of Alons retail sites In 2014, approximately 85% of gasoline and over 90% of diesel produced at Big…
How Big Spring Made Money YTD 2Q 2015 Product Yields Crude / Blendstocks Refining Operating Margin1 Per bbl Per bbl Per bbl Gasoline 10.08 20.16 Gasoline Sour 50.0% Crude 71.86 50.3% Jet 1.01 19.72 Jet 71.43 5.1%…
Organic Growth Opportunities at Big Spring Evaluating low-risk projects with payback periods of less than two years to enhance the refinerys gross margin, focused on: LPG recovery, increased aromatics recovery, producing…
Krotz Springs Refinery Overview 74,000 bpd sweet crude residual cracking refinery Refinery Operating Margin 8.3 Nelson Complexity High liquid recovery of approximately 102% One of the newest refineries in the U.S. (1980) with…
How Krotz Springs Made Money YTD 2Q 2015 Product Yields Crude / Blendstocks Refining Operating Margin1 Per bbl Per bbl Per bbl Gasoline 11.74 5.50 WTI Gasoline 40.0% 69.80 46.9% Jet 2.79 13.43 Jet Diesel 71.49 2.10…
Improving Value Proposition of Krotz Springs Expect to make a decision by the end of 2015 on adding a sulfuric acid alkylation unit at Krotz Springs; attractive economics driven by low LPG prices and high values for octane Evaluating…
California Refining Assets Overview In 4Q 2012, ceased refining operations due to unfavorable economics Focused on reducing operating expenses; leveraging logistics assets Received permit in September 2014 to construct a new 140,000…
Physically Integrated Retail Network Largest 7-Eleven licensee in the U.S. with 308 stores (50% fee owned) in Central/West Texas and New Mexico Locations in High Growth Markets1 Purchased 14 retail gas stations in Albuquerque in…
Improving the Asphalt Business In 2014, U.S. asphalt demand was down 40% from the peak in 2005; PADD V demand was down 52% from 20051 Asphalt demand is largely driven by federal, state and local spending The countrys highways and…
Alons Strategic Advantages Strategically located refineries with advantageous sources of crude Existing assets have significant logistics EBITDA to support a logistics MLP market transaction; future projects provide significant…
Growth Initiatives & Operational Improvements Opportunities to implement low-risk, high-return projects focused Refining on achieving higher product value and crude flexibility Evaluating potential to increase throughput at Big…
Key Financial Metrics Alon USA Energy Adjusted EBITDA1 Net Leverage (Net Debt/Adjusted EBITDA)1 millions millions Capital Expenditures & Turnarounds Increase in capital expenditures in 2014 and 2015 relates to the…
Guidance and RINs Information Total throughput at Big Spring is expected to average 74,000 bpd in 3Q 2015 and 74,000 bpd for full-year 2015 Total throughput at Krotz Springs is expected to average 71,000 bpd in 3Q 2015 and 67,000…
Adjusted EBITDA Reconciliation (in 000's) 2012 2013 2014 1 YTD 2Q 20141 YTD 2Q 2015 Net income available to stockholders 79,134 22,986 38,457 (6,732) 63,349 Net income attributable to non-controlling interest 11,463 25,129 31,411…
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