Paul Eisman President & Chief Executive Officer Credit Suisse Annual Energy Summit February 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 294 stores in Central and West Texas and Third-Party Terminal New Mexico…
What do lower crude prices mean for ALJ Profitability Absolute crude price does not determine profitability for a refiner like it does for an oil producer Refiners profitability depends on the difference between refined product…
Alon USAs Strategic Focus Reduced net debt by over 500 million since the start of 2012 to Strengthening Balance Sheet, 362 million at the end of 3Q 2014 Increasing Returns to Increased regular dividend by 67% to 0.10 per share per…
Where We Are Heading Expect to form a logistics MLP in late 2015 using existing assets across our businesses Expect to drop down Krotz Springs at accretive terms for both ALDW and ALJ After reducing net debt by over 500 million…
Sustainable Feedstock Advantage WTI-based crudes and light sweet Gulf Coast crudes (LLS) are expected to trade at a discount to international benchmarks (Brent), providing a sustainable feedstock advantage for Big Spring and Krotz…
Advantaged Crude Slate Alons crude slate has shifted increasingly towards discounted Midland-priced crudes since 2011 Processed 66% Midland-priced crudes YTD 3Q 2014, up from 42% in 2011 With LLS becoming discounted to Brent, Alons…
Big Spring: In the Heart of the Permian Basin Permian activity is generally expected to be less impacted by lower crude prices than other U.S. shale plays, given stacked zones and more robust well economics 368 active rigs in the…
Big Spring Refinery Overview Refinery Operating Margin1 Big Spring refinery: 73,000 bpd (26 MMbbl/year) sour crude cracking refinery 10.5 Nelson Complexity Processes 100% Midland-priced crude Distillate yield of 38.6% and combined…
How Big Spring Made Money 3Q 2014 Product Yields Crude / Blendstocks Refining Operating Margin1 Per bbl Per bbl Per bbl Sour Gasoline Crude 10.58 21.49 111.60 Gasoline 50.2% 49.2% Jet 1.38 28.34 117.87 Jet 4.9% Sweet…
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 Refinery Operating Margin 74,000 bpd sweet crude residual cracking refinery 8.3 Nelson Complexity Historically processed a mix of LLS and HLS type crudes n Krotz Springs Operating Margin Gulf Coast…
How Krotz Springs Made Money 3Q 2014 Product Yields Crude / Blendstocks Refining Operating Margin1 Per bbl Per bbl Per bbl Gasoline WTI 3.62 7.84 109.14 Gasoline 40.5% 46.2% Jet Jet 3.43 16.63 112.02 20.6% Light Sweet…
Improving Value Proposition of Krotz Springs Evaluating projects with less than two-year paybacks focused on: Increasing LPG value Organic Growth Projects Improving distillate recovery Enhancing gasoline blending Processing…
California Refining Assets Overview In 4Q 2012, ceased refining operations due to unfavorable economics Focused on reducing operating expenses; leveraging logistics assets Terminal Current Permitted Rail Capacity Status Long Beach…
Improving the Asphalt Business U.S. asphalt demand in 2013 was down 41% from the peak in 2005 Asphalt demand is largely driven by federal, state and local spending The countrys highways and bridges require capital investment of 120…
Physically Integrated Retail Network Largest 7-Eleven licensee in the U.S. with 294 Locations in High Growth Markets1 stores (50% fee owned) in Central/West Texas and New Mexico Location Total Big Spring, Texas 7 Operating in one…
Alons Strategic Advantages Strategically located refineries with advantageous sources of crude Existing assets have logistics EBITDA to support new logistics MLP; Bakersfield provides significant logistics EBITDA growth Backlog of…
Growth Initiatives & Operational Improvements Opportunities to implement low-risk, high-return projects Refining Increasing high margin distillate production Evaluating potential to increase throughput at Big Spring Expanding…
Financial Summary 22
Key Financial Metrics Adjusted EBITDA1 Net Leverage (Net Debt/Adjusted EBITDA)2 millions Capital Expenditures & Turnarounds 165 122 Increase in capital expenditures in 2014 mainly relates 105 to major five-year turnaround in…
Alon USA Partners Cash Available for Distribution ALL INFORMATION IS UNAUDITED For the Three Months Ended For the Year Ended (dollars in thousands, except per unit data) December 31, 2014 December 31, 2014 Net sales 800,179 3,221,373…
Adjusted EBITDA Reconciliation (in 000's) 2011 2012 2013 YTD 3Q 20141 Net income available to stockholders 42,507 79,134 22,986 31,750 Net income attributable to non-controlling interest 1,241 11,463 25,129 23,662 Income tax expense…
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