Stacey Morris, Investor Relations Manager
Alon USA Partners GP, LLC
FOR IMMEDIATE RELEASE
Investors: Jack Lascar
Dennard § Lascar Associates, LLC
Media: Blake Lewis
Lewis Public Relations
Alon USA Partners, LP Reports Third Quarter 2016 Results and Declares Quarterly Cash Distribution
Schedules conference call for October 28, 2016 at 9:30 a.m. Eastern
DALLAS, TEXAS, October 26, 2016 - Alon USA Partners, LP (NYSE: ALDW) (“Alon Partners”) today announced results for the third quarter of 2016. Net income for the third quarter of 2016 was $2.1 million, or $0.03 per unit, compared to $53.8 million, or $0.86 per unit, for the same period last year. Net loss for the first nine months of 2016 was $(5.3) million, or $(0.08) per unit, compared to net income of $149.7 million, or $2.39 per unit, for the same period last year.
The Board of Directors of Alon USA Partners GP, LLC, the general partner of Alon Partners, declared a cash distribution for the third quarter of 2016 of $0.15 per unit payable on November 22, 2016 to common unitholders of record at the close of business on November 11, 2016, based on cash available for distribution of $9.4 million.
Paul Eisman, President and CEO commented, “Our third quarter results reflect a continuation of the difficult refining environment experienced in the first two quarters of 2016. While crack spreads were relatively flat with the second quarter of 2016, the average benchmark crack spread in the third quarter was down approximately $6.50 per barrel relative to the same quarter last year. As discussed in our previous earnings release, our third quarter results were also negatively impacted by a reformer regeneration in August. We estimate that the lost opportunity cost and maintenance expense associated with the reformer regeneration negatively impacted Alon Partners’ adjusted EBITDA by approximately $8 million which reduced cash available for distribution by $0.13 per unit for the third quarter. Additionally, high RINs costs continue to weigh on our profitability.
“The Big Spring refinery achieved total throughput of 70,000 barrels per day and generated refinery operating margin of$9.22 per barrel. Our direct operating expense of $3.90 per barrel was negatively impacted by the reformer regeneration, which lowered throughput volumes and increased maintenance expense. We expect total throughput to average approximately 77,000 barrels per day for the fourth quarter of 2016. Based on current forward curve crack spreads, it is our expectation that with operations consistent with our plan we should generate sufficient cash available for distribution during the fourth quarter of 2016.”
THIRD QUARTER 2016
Refinery operating margin was $9.22 per barrel for the third quarter of 2016 compared to $16.71 per barrel for the same period in 2015. This decrease in operating margin was primarily due to a lower Gulf Coast 3/2/1 crack spread and increased RINs costs, partially offset by a widening of both the WTI Cushing to WTI Midland and WTI Cushing to WTS spreads and an increased benefit from the contango market environment which reduced the cost of crude. Refinery average throughput for the third quarter of 2016 was 70,063 barrels per day (“bpd”) compared to 75,797 bpd for the same period in 2015. The reduced throughput was the result of a reformer regeneration during the third quarter of 2016.
The average Gulf Coast 3/2/1 crack spread was $13.31 per barrel for the third quarter of 2016 compared to $19.77 per barrel for the third quarter of 2015. The average WTI Cushing to WTI Midland spread for the third quarter of 2016 was $0.31 per barrel compared to $(0.72) per barrel for the third quarter of 2015. The average WTI Cushing to WTS spread for the third quarter of 2016 was $0.92 per barrel compared to $(1.46) per barrel for the third quarter of 2015. The average Brent to WTI
The following information was filed by Alon Usa Partners, Lp (ALDW) on Thursday, October 27, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.