Alon USA publishes first quarter results and quarterly distribution

Alon USA Partners, LP has announced results for the first quarter of 2015. Net income for 1Q15 was US$36.5 million, or US$0.58 per unit, compared to US$42.2 million, or US$0.68 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 1Q15 of US$0.71 per unit payable on 26 May 2015 to common unitholders of record at the close of business on 18 May 2015, based on cash available for distribution of US$44.7 million.

Paul Eisman, President and CEO, commented, "We are pleased with our 1Q15 operations and financial performance. For 1Q15, we generated cash available for distribution of US$44.7 million. In the last three quarters following the completion of the major five year turnaround, we have generated total cash available for distribution of US$2.43 per unit. The Big Spring refinery operated very well during the quarter, achieving liquid recovery of approximately 101% and low direct operating expense of only US$3.60/bbl. Big Spring generated refinery operating margin of US$13.80 per barrel. Our results for the first quarter were negatively impacted by a challenging wholesale marketing environment resulting from seasonal gasoline weakness in addition to an increase in fuel and RINs prices during the quarter.

"We expect total throughput at the Big Spring refinery to average approximately 73 000 bpd for 2Q15 and 72 000 bpd for the full year of 2015."

First quarter highlights

• Refinery operating margin was US$13.80/bbl for 1Q15 compared to US$14.77/bbl for the same period in 2014. This decrease in operating margin was primarily due to a narrowing of both the WTI Cushing to WTS spread and the WTI Cushing to WTI Midland spread, partially offset by a higher Gulf Coast 3/2/1 crack spread.
• The total refinery throughput for 1Q15 averaged 72 360 bpd compared to 73 296 bpd for the same period in 2014.
• The average WTI Cushing to WTS spread for the first quarter of 2015 was US$1.76/bbl compared to US$3.67/bbl for 1Q14. The average WTI Cushing to WTI Midland spread for 1Q15 was US$1.95/bbl compared to US$3.54/bbl for 1Q14.
• The average Gulf Coast 3/2/1 crack spread was US$17.74/bbl for 1Q15 compared to US$16.81/bbl for 1Q14.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/07052015/alon-usa-publishes-first-quarter-results-and-quarterly-distribution-722/