Alon USA Energy Inc. (ALJ, Financial) filed Quarterly Report for the period ended 2009-09-30.
Alon USA Energy Inc. is an independent refiner and marketer of petroleum products operating primarily in the Southwestern and South Central regions of the United States. Alon markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt in the State of Texas. The Company also operates convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery. Alon Usa Energy Inc. has a market cap of $395.7 million; its shares were traded at around $8.45 with a P/E ratio of 4.4 and P/S ratio of 0.1. The dividend yield of Alon Usa Energy Inc. stocks is 2%.
The results of operations from our refining and unbranded marketing segment are also significantly affected by our refineries operating costs, particularly the cost of natural gas used for fuel and the cost of electricity. Natural gas prices have historically been volatile. For example, natural gas prices ranged between $5.29 and $13.58 per million British thermal units, or MMBTU, in 2008. Typically, electricity prices fluctuate with natural gas prices.
On July 3, 2008, we completed the acquisition of all the capital stock of the refining business located in Krotz Springs, Louisiana, from Valero Energy Corporation (Valero). The purchase price was $333,000 in cash plus $141,494 for working capital, including inventories. The completion of the Krotz Springs refinery acquisition increased our crude refining capacity by 50% to approximately 250,000 barrels per day (bpd) including our refineries located on the West Coast and West Texas. The results from our Krotz Springs refinery are included in our results of operations for the three and nine months ending September 30, 2009 and for the three months ended September 30, 2008.
In the three and nine months ended September 30, 2008, an involuntary gain on conversion of assets was recorded of $103.1 million and $199.7 million, respectively, for the insurance proceeds received in excess of the book value of the assets impaired of $25.3 million and demolition and repair expenses of $25.0 million incurred through September 30, 2008.
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Alon USA Energy Inc. is an independent refiner and marketer of petroleum products operating primarily in the Southwestern and South Central regions of the United States. Alon markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt in the State of Texas. The Company also operates convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery. Alon Usa Energy Inc. has a market cap of $395.7 million; its shares were traded at around $8.45 with a P/E ratio of 4.4 and P/S ratio of 0.1. The dividend yield of Alon Usa Energy Inc. stocks is 2%.
Highlight of Business Operations:
Third quarter of 2009 operating loss was ($34.3) million, compared to operating income of $92.5 million in the same period last year. Operating income in 2009 was lower compared to 2008 principally due to the recognition of net gains from the involuntary conversion of assets and recoveries for business interruption claims in the third quarter of 2008. These 2008 gains were partially offset by an increase in production volumes in 2009 as a result of the rebuild of the Big Spring refinery. Other operational and financial highlights for the third quarter of 2009 include the following:The results of operations from our refining and unbranded marketing segment are also significantly affected by our refineries operating costs, particularly the cost of natural gas used for fuel and the cost of electricity. Natural gas prices have historically been volatile. For example, natural gas prices ranged between $5.29 and $13.58 per million British thermal units, or MMBTU, in 2008. Typically, electricity prices fluctuate with natural gas prices.
On July 3, 2008, we completed the acquisition of all the capital stock of the refining business located in Krotz Springs, Louisiana, from Valero Energy Corporation (Valero). The purchase price was $333,000 in cash plus $141,494 for working capital, including inventories. The completion of the Krotz Springs refinery acquisition increased our crude refining capacity by 50% to approximately 250,000 barrels per day (bpd) including our refineries located on the West Coast and West Texas. The results from our Krotz Springs refinery are included in our results of operations for the three and nine months ending September 30, 2009 and for the three months ended September 30, 2008.
In the three and nine months ended September 30, 2008, an involuntary gain on conversion of assets was recorded of $103.1 million and $199.7 million, respectively, for the insurance proceeds received in excess of the book value of the assets impaired of $25.3 million and demolition and repair expenses of $25.0 million incurred through September 30, 2008.
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