EL PASO, Texas, Nov 05, 2008 (BUSINESS WIRE) -- Western Refining, Inc. (NYSE:WNR) today reported third quarter 2008 net
income of $109.2 million, or $1.61 per diluted share. The Company's
net income was $46.6 million, or $0.69 per diluted share, for the same
period in 2007. For the first nine months of 2008, the Company reported
net earnings of $77.0 million, or $1.14 per diluted share, versus net
earnings of $264.1 million, or $3.91 per diluted share, for the first
nine months of 2007.
The improvement in operating income in the 2008 third quarter was due to
higher refined product margins. The increase in margins was primarily
the result of an increase in the amount of lower-cost crude oil
processed at the Company's refineries during
the 2008 quarter. Margins also improved in the quarter as the cost of
crude oil declined faster than the prices of finished products.
Total refinery throughput for the third quarter of 2008 was 230,814
barrels per day, which included 212,032 barrels per day of crude oil.
Total refinery throughput for the third quarter of 2007 was 227,052
barrels per day, including 212,213 barrels per day of crude oil.
Refinery gross margin per throughput barrel was $15.03 for the quarter
ended September 30, 2008, compared to $10.45 for the same period in 2007.
"We are pleased with our third quarter
financial results. Although Hurricanes Gustav and Ike had a positive
impact on margins in the quarter, the actions we have taken to improve
and enhance our Four Corners and Yorktown refineries contributed
significantly to earnings in the quarter and should continue to do so in
future quarters," said Paul Foster, Western's
President and Chief Executive Officer.
"In the third quarter at Yorktown, we averaged
84% heavy crude oil processed. We increased the amount of heavy crude
oil processed from approximately 66% at the beginning of the quarter, to
a sustainable level in excess of 95% throughout the entire month of
September. This increased processing of lower cost, heavy crude oil
reduced Yorktown's feedstock costs by
approximately $16.5 million in the month of September compared to the
same period in 2007. At the Four Corners refineries, we renegotiated
several crude oil supply agreements and reduced our average cost by
approximately $5.75 per barrel, for a savings of approximately $3.6
million per month compared to the same period in 2007. We have also made
great strides in the areas of safety and reliability of our refining
operations. To date, our total recordable incident rate is approximately
one-half what it was last year. As we look ahead, this progress gives us
confidence in our ability to sustain the improved level of performance
that we are achieving."
Commenting on the fourth quarter, Foster said, "Despite
the ongoing economic uncertainty, refining margins remained strong at
our four refineries throughout the month of October. In fact, our
combined refining gross margin for the month exceeded the third quarter
level of $15.03 per barrel. Our Retail and Wholesale operations also
posted strong financial results for the month. Looking at the remainder
of the quarter, distillate margins look good as a result of steady
demand and continued tight supply. While gasoline demand has declined
the last couple of months, we believe the significantly lower prices at
the pump today could stimulate demand and improve gasoline margins."
As previously announced, Western is working with its financial advisors
to evaluate a number of options to further strengthen the Company's
balance sheet, including strategic alternatives for specific assets.
That process is ongoing, and the Company is pleased with how the process
is progressing.
Conference Call Information
A conference call is scheduled for November 6, 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) 713-4216, passcode:
29502291. The audio replay will be available through November 20, 2008,
by dialing (888) 286-8010, passcode: 17920818.
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 sustain improved refinery performance levels, our ability to
process heavy crude oil at Yorktown at 95% of our crude slate, and our
expectations for the supply, demand and corresponding margins of
distillate and gasoline. 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 our 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 Nine Months Ended
September 30, September 30,
2008 2007 2008 2007 (1)
(In thousands, except per share data) (In thousands, except per share data)
Statement of Operations Data:
Net sales $ 3,165,308 $ 2,232,890 $ 9,068,842 $ 4,886,063
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization) 2,790,475 1,977,070 8,297,385 4,133,327
Direct operating expenses (exclusive of depreciation and 133,206 125,381 399,503 247,129
amortization)
Selling, general and administrative expenses 32,449 27,783 90,000 55,589
Maintenance turnaround expense 528 13,665 1,738 13,665
Depreciation and amortization 29,218 21,896 82,567 38,805
Total operating costs and expenses 2,985,876 2,165,795 8,871,193 4,488,515
Operating income 179,432 67,095 197,649 397,548
Interest income 478 6,599 1,430 16,774
Interest expense (31,153 ) (22,476 ) (69,838 ) (31,974 )
Amortization of loan fees (1,553 ) (750 ) (3,234 ) (1,164 )
Write-off of unamortized loan fees -- -- (10,890 ) --
Loss on early extinguishment of debt -- (774 ) -- (774 )
Gain (loss) from derivative activities 6,022 9,106 (7,826 ) (1,453 )
Other income (expense) 422 193 1,356 (778 )
Income before income taxes 153,648 58,993 108,647 378,179
Provision for income taxes (44,411 ) (12,371 ) (31,621 ) (114,040 )
Net income $ 109,237 $ 46,622 $ 77,026 $ 264,139
Basic earnings per share $ 1.61 $ 0.69 $ 1.14 $ 3.94
Dilutive earnings per share $ 1.61 $ 0.69 $ 1.14 $ 3.91
Weighted average basic shares outstanding 67,760 67,246 67,696 67,095
Weighted average dilutive shares outstanding 67,760 67,683 67,752 67,566
Cash dividends declared per share $ -- $ 0.06 $ 0.06 $ 0.16
Cash Flow Data:
Net cash provided by (used in):
Operating activities $ 133,859 $ 28,724 $ 170,110 $ 256,715
Investing activities (39,135 ) (96,031 ) (155,702 ) (1,222,711 )
Financing activities (41,118 ) (130,555 ) (131,478 ) 969,003
Other Data:
Adjusted EBITDA(2) $ 216,100 $ 118,554 $ 276,914 $ 464,561
Capital expenditures 39,368 95,665 156,160 165,776
Balance Sheet Data (end of period):
Cash and cash equivalents $ 172,495 $ 266,172
Working capital 511,159 439,760
Total assets 3,474,801 3,316,910
Total debt 1,483,750 1,300,000
Stockholders' equity 834,539 783,149
(1) Includes the results of operations for Giant beginning June1,
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, loss on early extinguishment of debt,
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 Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
(In thousands)
Net income $ 109,237 $ 46,622 $ 77,026 $ 264,139
Interest expense 31,153 22,476 69,838 31,974
Provision for income taxes 44,411 12,371 31,621 114,040
Amortization of loan fees 1,553 750 3,234 1,164
Write-off of unamortized loan fees -- -- 10,890 --
Loss on early extinguishment of debt -- 774 -- 774
Depreciation and amortization 29,218 21,896 82,567 38,805
Maintenance turnaround expense 528 13,665 1,738 13,665
Adjusted EBITDA $ 216,100 $ 118,554 $ 276,914 $ 464,561
Refining Segment
Three Months Ended September 30,
2008 2007
Legacy
Legacy Giant
El Paso Giant (2) Total El Paso (1)(2)(3) Total
(In thousands, except per barrel data) (In thousands, except per barrel data)
Net sales (including intersegment sales) $ 1,708,622 $ 1,381,101 $ 3,089,723 $ 1,233,768 $ 868,362 $ 2,102,130
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization) 1,549,705 1,220,835 2,770,540 1,092,090 791,702 1,883,792
Direct operating expenses (exclusive of depreciation and 46,626 55,652 102,278 45,176 61,333 106,509
amortization)
Selling, general and administrative expenses 5,894 5,372 11,266 3,101 2,289 5,390
Maintenance turnaround expense 528 ---- 528 820 12,845 13,665
Depreciation and amortization 6,093 18,237 24,330 4,963 13,774 18,737
Total operating costs and expenses 1,608,846 1,300,096 2,908,942 1,146,150 881,943 2,028,093
Operating income (loss) $ 99,776 $ 81,005 $ 180,781 $ 87,618 $ (13,581 ) $ 74,037
Key Operating Statistics:
Total sales volume (bpd) (4) 137,632 118,856 256,488 148,482 108,502 256,984
Total refinery production (bpd) 130,114 99,298 229,412 130,599 94,626 225,225
Total refinery throughput (bpd) (5) 132,567 98,247 230,814 132,536 94,516 227,052
Per barrel of throughput:
Refinery gross margin (6) $ 13.03 $ 17.73 $ 15.03 $ 11.62 $ 8.82 $ 10.45
Gross profit (6) 12.53 15.71 13.89 11.21 7.23 9.56
Direct operating expenses (7) 3.82 6.16 4.82 3.70 7.05 5.10
Nine Months Ended September 30,
2008 2007
Legacy
Legacy Giant
El Paso Giant (2) Total El Paso (1)(2)(3) Total
(In thousands, except per barrel data) (In thousands, except per barrel data)
Net sales (including intersegment sales) $ 4,919,004 $ 3,985,713 $ 8,904,717 $ 3,539,719 $ 1,168,482 $ 4,708,201
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization) 4,566,221 3,704,486 8,270,707 2,950,145 1,055,476 4,005,621
Direct operating expenses (exclusive of depreciation and 141,965 172,197 314,162 143,524 78,645 222,169
amortization)
Selling, general and administrative expenses 15,367 13,652 29,019 9,716 3,256 12,972
Maintenance turnaround expense 1,738 ---- 1,738 820 12,845 13,665
Depreciation and amortization 16,857 53,056 69,913 14,506 20,383 34,889
Total operating costs and expenses 4,742,148 3,943,391 8,685,539 3,118,711 1,170,605 4,289,316
Operating income (loss) $ 176,856 $ 42,322 $ 219,178 $ 421,008 $ (2,123 ) $ 418,885
Key Operating Statistics:
Total sales volume (bpd) (4) 141,988 121,533 263,521 150,269 48,770 199,039
Total refinery production (bpd) 129,798 102,810 232,608 132,830 42,141 174,971
Total refinery throughput (bpd) (5) 131,795 102,412 234,207 134,647 42,088 176,735
Per barrel of throughput:
Refinery gross margin (6) $ 9.77 $ 10.02 $ 9.88 $ 16.04 $ 9.84 $ 14.56
Gross profit (6) 9.30 8.13 8.79 15.64 8.06 13.84
Direct operating expenses (7) 3.93 6.14 4.90 3.90 6.84 4.60
(1) Includes the results of operations for Giant beginning June1,
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 nine months
ended September30, 2007, was calculated by dividing September
2007 volumes by 273days.
(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 September 30,
2008 2007
Legacy Legacy
El Paso Giant Total El Paso Giant Total
(In thousands, except per barrel data) (In thousands, except per barrel data)
Net sales $ 1,708,622 $ 1,381,101 $ 3,089,723 $ 1,233,768 $ 868,362 $ 2,102,130
Cost of products sold (exclusive of depreciation and amortization) 1,549,705 1,220,835 2,770,540 1,092,090 791,702 1,883,792
Depreciation and amortization 6,093 18,237 24,330 4,963 13,774 18,737
Gross profit 152,824 142,029 294,853 136,715 62,886 199,601
Plus depreciation and amortization 6,093 18,237 24,330 4,963 13,774 18,737
Refinery gross margin $ 158,917 $ 160,266 $ 319,183 $ 141,678 $ 76,660 $ 218,338
Refinery gross margin per refinery throughput barrel $ 13.03 $ 17.73 $ 15.03 $ 11.62 $ 8.82 $ 10.45
Gross profit per refinery throughput barrel $ 12.53 $ 15.71 $ 13.89 $ 11.21 $ 7.23 $ 9.56
Nine Months Ended September 30,
2008 2007
Legacy Legacy
El Paso Giant Total El Paso Giant Total
(In thousands, except per barrel data) (In thousands, except per barrel data)
Net sales $ 4,919,004 $ 3,985,713 $ 8,904,717 $ 3,539,719 $ 1,168,482 $ 4,708,201
Cost of products sold (exclusive of depreciation and amortization) 4,566,221 3,704,486 8,270,707 2,950,145 1,055,476 4,005,621
Depreciation and amortization 16,857 53,056 69,913 14,506 20,383 34,889
Gross profit 335,926 228,171 564,097 575,068 92,623 667,691
Plus depreciation and amortization 16,857 53,056 69,913 14,506 20,383 34,889
Refinery gross margin $ 352,783 $ 281,227 $ 634,010 $ 589,574 $ 113,006 $ 702,580
Refinery gross margin per refinery throughput barrel $ 9.77 $ 10.02 $ 9.88 $ 16.04 $ 9.84 $ 14.56
Gross profit per refinery throughput barrel $ 9.30 $ 8.13 $ 8.79 $ 15.64 $ 8.06 $ 13.84
(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 Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Key Operating Statistics:
Refinery product yields (bpd)
Gasoline 112,733 116,180 117,522 91,957
Diesel and jet fuel 93,420 88,179 92,268 68,605
Residuum 6,255 6,085 5,887 5,974
Other 9,579 9,622 10,139 6,255
Liquid products 221,987 220,066 225,816 172,791
By-products (coke and sulfur) 7,425 5,159 6,792 2,180
Total refinery production (bpd) 229,412 225,225 232,608 174,971
Refinery throughput (bpd)
Sweet crude oil 142,822 162,810 152,668 131,877
Sour or heavy crude oil 69,210 49,403 62,016 28,261
Other feedstocks/blendstocks 18,782 14,839 19,523 16,597
Total refinery throughput (bpd) 230,814 227,052 234,207 176,735
El Paso Refinery
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Key Operating Statistics:
Refinery product yields (bpd)
Gasoline 64,018 66,235 65,189 69,441
Diesel and jet fuel 56,226 54,596 54,894 53,797
Residuum 6,255 6,085 5,887 5,974
Other 3,615 3,683 3,828 3,618
Total refinery production (bpd) 130,114 130,599 129,798 132,830
Refinery throughput (bpd)
Sweet crude oil 104,845 108,230 103,768 108,218
Sour crude oil 18,487 13,235 17,497 12,344
Other feedstocks/blendstocks 9,235 11,071 10,530 14,085
Total refinery throughput (bpd) 132,567 132,536 131,795 134,647
Total sales volume (bpd) 137,632 148,482 141,988 150,269
Per barrel of throughput:
Refinery gross margin $ 13.03 $ 11.62 $ 9.77 $ 16.04
Direct operating expenses 3.82 3.70 3.93 3.90
Yorktown Refinery
Nine Months Four Months
Three Months Ended Ended Ended
September 30, September 30, September 30,
2008 2007 2008 2007 (1)
Key Operating Statistics:
Refinery product yields (bpd)
Gasoline 29,919 31,717 31,893 31,997
Diesel and jet fuel 28,525 26,526 28,266 25,925
Residuum ---- ---- ---- ----
Other 4,940 4,930 5,134 4,895
Liquid products 63,384 63,173 65,293 62,817
By-products (coke and sulfur) 7,425 5,159 6,792 4,878
Total refinery production (bpd) 70,809 68,332 72,085 67,695
Refinery throughput (bpd)
Sweet crude oil 9,813 27,504 19,603 26,396
Sour or heavy crude oil 50,723 36,168 44,519 35,618
Other feedstocks / blendstocks 7,946 3,021 6,353 4,040
Total refinery throughput (bpd) 68,482 66,693 70,475 66,054
Total sales volume (bpd) 79,501 69,281 77,444 70,320
Per barrel of throughput:
Refinery gross margin $ 14.91 $ 5.69 $ 7.95 $ 5.86
Direct operating expenses 4.72 4.49 4.64 4.52
Four Corners Refineries
Nine Months Four Months
Three Months Ended Ended Ended
September 30, September 30, September 30,
2008 2007 2008 2007 (1)
Key Operating Statistics:
Refinery product yields (bpd)
Gasoline 18,796 18,228 20,440 18,386
Diesel and jet fuel 8,669 7,057 9,108 7,212
Residuum ---- ---- ---- ----
Other 1,024 1,009 1,177 1,012
Total refinery production (bpd) 28,489 26,294 30,725 26,610
Refinery throughput (bpd)
Sweet crude oil 28,164 27,076 29,297 26,547
Sour crude oil ---- -- ---- --
Other feedstocks / blendstocks 1,601 747 2,640 1,578
Total refinery throughput (bpd) 29,765 27,823 31,937 28,125
Total sales volume (bpd) 39,355 39,221 44,089 38,812
Per barrel of throughput:
Refinery gross margin $ 23.02 $ 13.81 $ 12.68 $ 16.36
Direct operating expenses 7.84 9.39 8.15 8.76
(1) Total sales volume, refinery production and refinery throughput
related to the refineries acquired from Giant was calculated by
dividing the four months ended September 30, 2007 volumes by 122
days.
Retail Segment
Nine Four
Months Months
Three Months Ended Ended Ended
September 30, September 30, September 30,
2008 2007 2008 2007 (1)
(In thousands, except per gallon data)
Statement of Operations Data:
Net sales (including intersegment sales) $ 245,951 $ 197,974 $ 674,805 $ 266,500
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization) 219,047 172,106 606,163 232,158
Direct operating expenses (exclusive of depreciation and 17,146 16,239 49,687 21,412
amortization)
Selling, general and administrative expenses 1,271 1,318 3,962 1,823
Depreciation and amortization 2,172 1,537 6,182 2,023
Total operating costs and expenses 239,636 191,200 665,994 257,416
Operating income $ 6,315 $ 6,774 $ 8,811 $ 9,084
Operating Data:
Fuel gallons sold (in thousands) 53,606 56,203 158,079 74,453
Fuel margin per gallon (2) $ 0.22 $ 0.20 $ 0.16 $ 0.20
Merchandise sales $ 50,141 $ 48,463 $ 140,176 $ 64,417
Merchandise margin 27.4 % 28.1 % 27.6 % 27.7 %
Operating retail outlets at period end 154 156
Nine Four
Months Months
Three Months Ended Ended Ended
September 30, September 30, September 30,
2008 2007 2008 2007 (1)
(In thousands, except per gallon data)
Net sales:
Fuel sales $ 207,519 $ 164,576 $ 566,862 $ 221,976
Excise taxes included in fuel revenues (17,567 ) (21,128 ) (50,901 ) (27,901 )
Merchandise sales 50,141 48,463 140,176 64,417
Other sales 5,858 6,063 18,668 8,008
Net sales $ 245,951 $ 197,974 $ 674,805 $ 266,500
Cost of products sold:
Fuel cost of products sold $ 195,635 $ 153,505 $ 540,941 $ 207,116
Excise taxes included in fuel cost of products sold (17,567 ) (21,128 ) (50,901 ) (27,901 )
Merchandise cost of products sold 36,421 34,866 101,468 46,553
Other cost of products sold 4,558 4,863 14,655 6,390
Cost of products sold $ 219,047 $ 172,106 $ 606,163 $ 232,158
Fuel margin per gallon (2) $ 0.22 $ 0.20 $ 0.16 $ 0.20
(1) Includes the results of operations for Giant beginning June1,
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
Nine Four
Months Months
Three Months Ended Ended Ended
September 30, September 30, September 30,
2008 2007 2008 2007 (1)
(In thousands, except per gallon data)
Statement of Operations Data:
Net sales (including intersegment sales) $ 702,755 $ 418,189 $ 1,892,176 $ 563,940
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization) 670,971 400,509 1,808,869 540,388
Direct operating expenses (exclusive of depreciation and 16,840 8,711 50,156 11,298
amortization)
Selling, general and administrative Expenses 4,826 4,111 14,395 5,362
Depreciation and amortization 1,310 1,145 4,074 1,366
Total operating costs and Expenses 693,947 414,476 1,877,494 558,414
Operating income $ 8,808 $ 3,713 $ 14,682 $ 5,526
Operating Data:
Fuel gallons sold (in thousands) 187,047 166,665 534,334 222,187
Fuel margin per gallon (2) $ 0.09 $ 0.07 $ 0.08 $ 0.08
Lubricant sales $ 43,784 $ 37,518 $ 123,716 $ 49,068
Lubricant margins 15.0 % 9.8 % 12.8 % 9.6 %
Nine Four
Months Months
Three Months Ended Ended Ended
September 30, September 30, September 30,
2008 2007 2008 2007 (1)
(In thousands, except per gallon data)
Net sales:
Fuel sales $ 698,226 $ 422,960 $ 1,883,601 $ 571,350
Excise taxes included in fuel sales (48,433 ) (46,153 ) (147,299 ) (61,213 )
Lubricant sales 43,784 37,518 123,716 49,068
Other sales 9,178 3,864 32,158 4,735
Net sales $ 702,755 $ 418,189 $ 1,892,176 $ 563,940
Cost of products sold:
Fuel cost of products sold $ 680,470 $ 410,855 $ 1,841,257 $ 554,240
Excise taxes included in fuel sales (48,433 ) (46,153 ) (147,299 ) (61,213 )
Lubricant cost of products sold 37,197 33,850 107,860 44,339
Other cost of products sold 1,737 1,957 7,051 3,022
Cost of products sold $ 670,971 $ 400,509 $ 1,808,869 $ 540,388
Fuel margin per gallon (2) $ 0.09 $ 0.07 $ 0.08 $ 0.08
(1) Includes the results of operations for Giant beginning June1,
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
Media Contact:
Gary Hanson, 915-534-1400
