Delek US Holdings, Inc. (NYSE: DK), a diversified energy company with
assets in the petroleum refining, logistics and retail industries, today
announced financial results for the third quarter 2013.
For the three months ended September 30, 2013, Delek US reported a net
loss of $(1.7) million, or $(0.03) per basic share, versus net income of
$94.5 million, or $1.57 per diluted share in the third quarter 2012.
Lower earnings were primarily due to the refining segment, as a
combination of factors in the third quarter 2013 created less favorable
market conditions compared to the prior-year-period. A decline in the
5-3-2 Gulf Coast crack spread, an increase in crude oil prices and
backwardation of the crude oil futures market all contributed to a
decline in refining margins on a year-over-year basis. In addition,
market dynamics were negatively affected by RINs in July and August,
reducing gasoline netbacks in areas served by the El Dorado refinery.
This year-over-year decline in the refining segment performance was
partially offset by improved retail and logistics segment results
compared to the third quarter 2012.
During the third quarter 2013, net income was also negatively affected
by approximately $4.0 million after-tax, or $0.07 per share primarily
due to inventory mark-to-market adjustments and a combination of other
costs related to acquisitions, a higher tax rate and costs associated
with financing related activities.
Since the end of the third quarter 2013, market trends in the refining
segment have gradually improved through October. The 5-3-2 Gulf Coast
crack spread averaged $10.02 per barrel for the month of October, which
included a high of $13.00 per barrel on October 30. This compares to an
average of $7.71 per barrel in September, which included a low of $4.73
per barrel on September 9, 2013. In addition, the crude oil price
discount between WTI Midland and WTI Cushing has widened to
approximately $4.00 to $5.00 per barrel during late October, compared to
levels that were near parity in the third quarter. There has also been a
decline in the price for WTI Cushing gradually to below $100.00 per
barrel in late October, compared to $105.94 per barrel in the third
quarter 2013. Also, crude oil futures markets moved from backwardation
to contango during October, which further lowers the price on the
majority of crude purchased at the Company’s refineries.
As of September 30, 2013, Delek US had a cash balance of $428.2 million
and total debt of $369.0 million, resulting in net cash of $59.2
million. This compares to a net cash position of $155.9 million at June
30, 2013 with this change being primarily driven by cash used in
investing activities. As of September 30, 2013, Delek US’ subsidiary,
Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”), had a cash
balance of approximately $6.7 million and $161.0 million of debt, which
is included in the consolidated amounts on Delek US’ balance sheet. The
increase in debt at Delek Logistics from June 30, 2013, is primarily
related to the purchase of logistics assets for $94.8 million from a
subsidiary of Delek US on July 26, 2013.
In addition, Delek US’ Board of Directors declared a regular quarterly
cash dividend of $0.15 per share. This cash dividend is payable on
December 17, 2013 to shareholders of record on November 26, 2013.
“While the refining environment was challenging in the third quarter,
our refining segment did increase throughput levels compared to the
prior year period. In addition our logistics segment performed well and
we continued to unlock value with the first drop down to Delek Logistics
in July. The retail segment also showed solid year-over-year improvement
during the quarter,” said Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek US. “As we have entered the fourth quarter,
market conditions have improved through October. Crude oil prices have
declined to below $100 per barrel and the discount between WTI Midland
and WTI Cushing has widened. Our refineries are well positioned to
benefit from pipeline access to Midland sourced crude, which accounts
for approximately 87,000 barrels per day out of our 140,000 barrels per
day crude capacity. In addition, we have experienced an improvement in
wholesale margins in our refining system. Finally, our balance sheet
remains strong and provides flexibility to continue investing in our
businesses and growing through acquisitions, while continuing to return
value to our shareholders.”
Refining Segment
Refining segment contribution margin was $38.7 million in the third
quarter 2013, versus $186.6 million in the third quarter 2012.
Contribution margin at the El Dorado refinery was $9.7 million in the
third quarter 2013 compared to a contribution margin of $84.5 million in
the third quarter 2012. At Tyler, the contribution margin was $25.7
million in the third quarter 2013 compared to $101.2 million in the
prior-year-period.
A combination of several factors during the third quarter 2013 reduced
performance on a year-over-year basis. First, the benchmark Gulf Coast
5-3-2 crack spread, which averaged $12.30 per barrel during the quarter,
declined from an average of $29.96 during third quarter 2012. In
addition, the crude oil futures market became backwardated during the
third quarter 2013 compared to a market that was in contango during the
third quarter 2012, which further increased the average crude oil price
on a year-over-year basis at the refineries. Third, the quarterly
average WTI crude oil price increased by approximately $12.00 per barrel
from the second quarter 2013 to the third quarter 2013, versus a decline
of approximately $1.50 per barrel between the second and third quarters
of 2012. This increase was not matched by a corresponding increase in
residual product prices thereby reducing margins, particularly in
asphalt at El Dorado. Finally, a narrowing of the WTI Midland crude
discount to WTI Cushing to an average of $0.28 per barrel in third
quarter 2013 from an average of $1.74 per barrel in the
prior-year-period was also a contributing factor to lower refining
margins as well.
Tyler, Texas Refinery
Total throughput rates at the Tyler refinery were 63,880 barrels per day
in the third quarter 2013, versus 60,589 barrels per day in the prior
year period. Crude throughput of 60,585 barrels per day during the third
quarter 2013 was similar to 60,092 barrels per day in the prior year
period. Total volumes sold increased to 66,493 barrels per day in the
third quarter 2013, compared to 62,467 barrels per day in the third
quarter 2012.
Direct operating expense at Tyler was $26.6 million or $4.35 per barrel
sold, in the third quarter 2013, versus $25.3 million, or $4.40 per
barrel sold, in the third quarter 2012. On a year-over-year basis, this
increase in operating expense was primarily due to variable costs
associated with higher production, higher natural gas prices and
maintenance related activities.
Tyler’s refining margin was $8.56 per barrel sold in the third quarter
2013, compared to $22.01 per barrel sold for the same quarter last year.
This decrease was primarily due to a lower Gulf Coast 5-3-2 crack
spread, a backwardated crude oil futures market and a narrower WTI
Midland discount as compared to the third quarter 2012.
El Dorado, Arkansas Refinery
Total throughput rates at the El Dorado refinery were 75,189 barrels per
day in the third quarter 2013 compared to 69,757 barrels per day in the
third quarter 2012. Net barrels sold, which exclude buy/sell activity,
was 79,804 barrels per day in the third quarter 2013. This compares to
net barrels sold of 69,491, excluding buy/sell activity, in the third
quarter 2012.
The El Dorado refinery operated at 66,920 barrels per day of crude
throughput during the quarter compared to 62,592 barrels per day of
crude throughput in the third quarter 2012. During the second quarter
2012, a suspension of crude oil deliveries from a non-affiliated
supplier’s pipeline caused reduced throughput rates beginning May 1,
2012. This pipeline resumed operation in March 2013. The refinery
processed approximately 2,000 barrels per day of intermediate products
from the Tyler refinery and purchased approximately 8,300 barrels per
day of crude supplied by rail during the third quarter 2013, including
approximately, 4,200 barrels per day of heavy Canadian barrels. As crude
supplied by rail economics became less attractive due to changing crude
oil differentials, supply flexibility at El Dorado and increased access
to Midland crude allowed the refinery to reduce rail supplied volumes in
favor of more economically advantageous sources. As the discount between
Canadian crude prices and WTI Cushing widened during October, economics
improved for rail supplied crude to El Dorado.
Direct operating expense at the El Dorado refinery was $29.6 million, or
$4.04 per net barrel sold compared to $25.5 million, or $3.98 per net
barrel sold, during the third quarter of 2012. On a year-over-year
basis, this increase in operating expense was primarily due to variable
costs associated with higher production, increased natural gas prices
and maintenance related activities.
El Dorado refining margin was $5.36 per net barrel sold in the third
quarter 2013 compared to $17.20 per net barrel sold during the third
quarter of 2012. This decrease was mainly due to the same factors
discussed for the Tyler refinery and lower margins for asphalt. In
addition, RINs reduced the margin at El Dorado during July and August as
netbacks for gasoline declined due to market pressures associated with
RINs in areas served by El Dorado. This market trend has improved as RIN
prices declined through September and into October.
Logistics Segment
Delek US and its affiliates beneficially own approximately 62 percent
(including the 2 percent general partner interest) of all outstanding
Delek Logistics units. While the logistics segment results include 100
percent of the performance of Delek Logistics, adjustments for the
publicly-held minority interest are made on a consolidated basis. Delek
Logistics commenced operations on November 7, 2012, and results prior to
that date are presented on a predecessor basis.
Logistics segment contribution margin in the third quarter 2013 was
$17.6 million. Year over year results benefited from higher volumes, the
sale of renewable identification numbers (RINs) related to blending
ethanol, the contribution from contracts associated with services
provided to Delek US’ refineries and fees generated from the Paline
pipeline. The segment’s results also benefited from Delek Logistics’
acquisition of the product terminal and substantially all of the storage
tanks at the Tyler, Texas refinery from a subsidiary of Delek US on July
26, 2013.
Retail Segment
Retail segment contribution margin was $16.6 million in the third
quarter 2013, which compares to $11.0 million in the third quarter 2012.
Higher fuel margins more than offset lower merchandise margins
increasing results on a year-over-year basis. Fuel margin increased to
20.5 cents per gallon in the third quarter 2013 compared to 13.9 cents
per gallon in the prior-year-period. During the third quarter 2013
wholesale fuel prices declined as retail fuel prices were more stable,
increasing fuel margins on a year-over-year basis. Merchandise margin
was 27.6% in the third quarter 2013, compared to 28.6% in the
prior-year-period. Operating expenses were $33.2 million in the third
quarter 2013 compared to $33.9 million in the third quarter 2012.
At the conclusion of the third quarter 2013, the retail segment operated
362 locations, versus 372 locations at the end of the third quarter
2012. Six new large-format stores have opened during the first nine
months of 2013 including one during the third quarter. An additional
four to six large-format stores are expected to be opened during the
fourth quarter of 2013.
Third Quarter 2013 Results | Conference Call
Information
The Company will hold a conference call to discuss its third quarter
2013 results on November 7, 2013 at 9:00 a.m. Central Time. Investors
may listen to the conference call live via webcast at www.DelekUS.com
by clicking on the Investor Relations tab. Please register at least 15
minutes early to the call, and install any necessary software. For those
who cannot listen to the live broadcast, a telephonic replay will be
available through February 7, 2014 by dialing (855) 859-2056, passcode
80226424. An archived version of the replay will also be available at www.DelekUS.com
for 90 days.
Investors may also wish to listen to Delek Logistics’ (NYSE: DKL) third
quarter earnings conference call held on November 6, 2013 and review
Delek Logistics’ earnings press release. Market trends and information
disclosed by Delek Logistics may be relevant to the logistics segment
reported by Delek US. Both a replay of the conference call and press
release for Delek Logistics are available online at deleklogistics.com.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with
assets in petroleum refining, logistics and convenience store retailing.
The refining segment consists of refineries operated in Tyler, Texas and
El Dorado, Arkansas with a combined nameplate production capacity of
140,000 barrels per day. Delek US Holdings, Inc. and its affiliates also
own approximately 62 percent (including the 2 percent general partner
interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP
(NYSE: DKL) is a growth-oriented master limited partnership focused on
owning and operating midstream energy infrastructure assets. The retail
segment markets motor fuel and convenience merchandise through a network
of approximately 362 company-operated convenience store locations
operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food
and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™
brand names.
Safe Harbor Provisions Regarding
Forward-Looking Statements
This press release contains forward-looking statements that are based
upon current expectations and involve a number of risks and
uncertainties. Statements concerning current estimates, expectations and
projections about future results, performance, prospects and
opportunities and other statements, concerns, or matters that are not
historical facts are “forward-looking statements,” as that term is
defined under the federal securities laws.
Investors are cautioned that the following important factors, among
others, may affect these forward-looking statements. These factors
include but are not limited to: risks and uncertainties with respect to
the quantities and costs of crude oil we are able to obtain and the
price of the refined petroleum products we ultimately sell; losses from
derivative instruments; management’s ability to execute its strategy of
growth through acquisitions and the transactional risks associated with
acquisitions; our competitive position and the effects of competition;
the projected growth of the industries in which we operate; changes in
the scope, costs, and/or timing of capital and maintenance projects;
general economic and business conditions, particularly levels of
spending relating to travel and tourism or conditions affecting the
southeastern United States; potential conflicts of interest between our
majority stockholder and other stockholders; and other risks contained
in our filings with the United States Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future
performance or results and will not be accurate indications of the times
at, or by which such performance or results will be achieved.
Forward-looking information is based on information available at the
time and/or management’s good faith belief with respect to future
events, and is subject to risks and uncertainties that could cause
actual performance or results to differ materially from those expressed
in the statements. Delek US undertakes no obligation to update or revise
any such forward-looking statements.
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Delek US Holdings, Inc.
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Condensed Consolidated Balance Sheets
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September 30,
2013
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December 31,
2012
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(In millions, except share and
per share data)
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
|
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$
|
428.2
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|
$
|
601.7
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|
|
Accounts receivable
|
|
328.7
|
|
|
256.6
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|
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Inventory
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619.7
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|
|
477.6
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|
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Other current assets
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|
32.2
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|
|
23.8
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Total current assets
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1,408.8
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|
1,359.7
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Property, plant and equipment:
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Property, plant and equipment
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1,577.9
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1,456.2
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Less: accumulated depreciation
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(386.6
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)
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(332.0
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)
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Property, plant and equipment, net
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1,191.3
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|
1,124.2
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Goodwill
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|
72.7
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72.7
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Other intangibles, net
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|
13.5
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16.7
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Other non-current assets
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61.9
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|
|
50.4
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Total assets
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|
$
|
2,748.2
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|
|
$
|
2,623.7
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$
|
551.8
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$
|
568.8
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Current portion of long-term debt and capital lease obligations
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53.8
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|
52.2
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Obligation under Supply and Offtake Agreement
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332.3
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|
285.2
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Accrued expenses and other current liabilities
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142.1
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|
|
92.9
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|
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Total current liabilities
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|
1,080.0
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|
|
999.1
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Non-current liabilities:
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|
|
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Long-term debt and capital lease obligations, net of current portion
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315.2
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|
|
310.0
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Environmental liabilities, net of current portion
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|
9.6
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|
|
10.4
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Asset retirement obligations
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|
8.7
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|
|
8.3
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Deferred tax liabilities
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|
170.2
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|
183.2
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Other non-current liabilities
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|
23.7
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|
|
34.7
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Total non-current liabilities
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527.4
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|
546.6
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Shareholders’ equity:
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Common stock, $0.01 par value, 110,000,000 shares authorized,
60,137,424 shares and 59,619,548 shares issued at September 30, 2013
and December 31, 2012, respectively
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0.6
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0.6
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Additional paid-in capital
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|
377.5
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|
|
366.9
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|
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Accumulated other comprehensive income
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|
4.0
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|
|
0.4
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Treasury stock, 1,000,000 shares, at cost
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(37.9
|
)
|
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—
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Retained earnings
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|
612.0
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|
|
531.4
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|
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Non-controlling interest in subsidiaries
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|
184.6
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|
|
178.7
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Total shareholders’ equity
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|
1,140.8
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|
|
1,078.0
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Total liabilities and shareholders’ equity
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|
$
|
2,748.2
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|
|
$
|
2,623.7
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Delek US Holdings, Inc.
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|
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Condensed Consolidated Statements of Income (Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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|
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2013
|
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2012
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2013
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2012
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|
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(In millions, except share and per share data)
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Net sales
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$
|
2,376.9
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|
|
$
|
2,237.6
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|
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$
|
6,948.6
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$
|
6,542.2
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Operating costs and expenses:
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|
|
|
|
|
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|
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Cost of goods sold
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|
2,219.9
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|
1,944.9
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|
|
6,282.6
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|
|
5,781.0
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|
|
Operating expenses
|
|
96.6
|
|
|
92.8
|
|
|
290.6
|
|
|
267.3
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|
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General and administrative expenses
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|
27.0
|
|
|
23.0
|
|
|
87.7
|
|
|
74.7
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|
|
Depreciation and amortization
|
|
20.6
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|
|
20.6
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|
|
64.2
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|
|
61.2
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Other operating income
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|
(0.1
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)
|
|
(0.1
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)
|
|
(1.6
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)
|
|
(0.1
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)
|
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Total operating costs and expenses
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|
2,364.0
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|
|
2,081.2
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|
|
6,723.5
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|
|
6,184.1
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|
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Operating income
|
|
12.9
|
|
|
156.4
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|
|
225.1
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|
|
358.1
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|
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Interest expense
|
|
9.6
|
|
|
11.2
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|
|
28.0
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|
|
35.9
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|
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Interest income
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|
(0.1
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)
|
|
(0.1
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)
|
|
(0.3
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)
|
|
(0.1
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)
|
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Other income, net
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(0.1
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)
|
|
—
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|
|
(6.8
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)
|
|
—
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|
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Total non-operating expenses
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|
9.4
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|
|
11.1
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|
|
20.9
|
|
|
35.8
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|
|
Income before income taxes
|
|
3.5
|
|
|
145.3
|
|
|
204.2
|
|
|
322.3
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|
|
Income tax expense
|
|
0.5
|
|
|
50.8
|
|
|
68.1
|
|
|
113.8
|
|
|
Net income
|
|
3.0
|
|
|
94.5
|
|
|
136.1
|
|
|
208.5
|
|
|
Net income attributed to non-controlling interest
|
|
4.7
|
|
|
—
|
|
|
13.7
|
|
|
—
|
|
|
Net (loss) income attributable to Delek
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|
$
|
(1.7
|
)
|
|
$
|
94.5
|
|
|
$
|
122.4
|
|
|
$
|
208.5
|
|
|
Basic (loss) earnings per share
|
|
$
|
(0.03
|
)
|
|
$
|
1.60
|
|
|
$
|
2.07
|
|
|
$
|
3.57
|
|
|
Diluted (loss) earnings per share
|
|
$
|
(0.03
|
)
|
|
$
|
1.57
|
|
|
$
|
2.04
|
|
|
$
|
3.52
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
59,093,721
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|
|
58,979,301
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|
|
59,195,337
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|
|
58,448,063
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|
Diluted
|
|
59,727,244
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|
|
60,146,933
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|
|
60,097,637
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|
|
59,275,861
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|
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Dividends declared per common share outstanding
|
|
$
|
0.25
|
|
|
$
|
0.1375
|
|
|
$
|
0.70
|
|
|
$
|
0.4025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
(In millions)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
|
2012
|
|
Cash Flow Data
|
|
|
|
|
|
Cash flows provided by operating activities:
|
|
$
|
33.1
|
|
|
$
|
270.9
|
|
|
Cash flows used in investing activities:
|
|
(128.1
|
)
|
|
(107.6
|
)
|
|
Cash flows used in financing activities:
|
|
(78.5
|
)
|
|
(71.4
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(173.5
|
)
|
|
$
|
91.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
|
Segment Data
|
|
(In millions)
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
|
|
Refining
|
|
Retail
|
|
Logistics
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
1,670.0
|
|
|
$
|
484.1
|
|
|
$
|
222.3
|
|
|
$
|
0.5
|
|
|
$
|
2,376.9
|
|
|
Intercompany fees and sales
|
|
136.8
|
|
|
—
|
|
|
21.0
|
|
|
(157.8
|
)
|
|
—
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
1,710.6
|
|
|
434.3
|
|
|
218.2
|
|
|
(143.2
|
)
|
|
2,219.9
|
|
|
Operating expenses
|
|
57.5
|
|
|
33.2
|
|
|
7.5
|
|
|
(1.6
|
)
|
|
96.6
|
|
|
Segment contribution margin
|
|
$
|
38.7
|
|
|
$
|
16.6
|
|
|
$
|
17.6
|
|
|
$
|
(12.5
|
)
|
|
60.4
|
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
27.0
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
20.6
|
|
|
Other Operating Income
|
|
|
|
|
|
|
|
|
|
(0.1
|
)
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
12.9
|
|
|
Total assets
|
|
$
|
1,782.6
|
|
|
$
|
437.4
|
|
|
$
|
287.4
|
|
|
$
|
240.8
|
|
|
$
|
2,748.2
|
|
|
Capital spending (excluding business combinations)
|
|
$
|
32.9
|
|
|
$
|
9.5
|
|
|
$
|
1.0
|
|
|
$
|
9.4
|
|
|
$
|
52.8
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2012
|
|
|
|
Refining
|
|
Retail
|
|
Logistics
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
1,543.8
|
|
|
$
|
495.5
|
|
|
$
|
201.7
|
|
|
$
|
(3.4
|
)
|
|
$
|
2,237.6
|
|
|
Intercompany fees and sales
|
|
34.8
|
|
|
—
|
|
|
6.5
|
|
|
(41.3
|
)
|
|
—
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
1,341.2
|
|
|
450.6
|
|
|
192.6
|
|
|
(39.5
|
)
|
|
1,944.9
|
|
|
Operating expenses
|
|
50.8
|
|
|
33.9
|
|
|
9.4
|
|
|
(1.3
|
)
|
|
92.8
|
|
|
Segment contribution margin
|
|
$
|
186.6
|
|
|
$
|
11.0
|
|
|
$
|
6.2
|
|
|
$
|
(3.9
|
)
|
|
199.9
|
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
23.0
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
20.6
|
|
|
Other Operating Income
|
|
|
|
|
|
|
|
|
|
(0.1
|
)
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
156.4
|
|
|
Total assets
|
|
$
|
1,592.8
|
|
|
$
|
421.2
|
|
|
$
|
290.0
|
|
|
$
|
(24.5
|
)
|
|
$
|
2,279.5
|
|
|
Capital spending (excluding business combinations)
|
|
$
|
15.7
|
|
|
$
|
6.4
|
|
|
$
|
0.2
|
|
|
$
|
7.5
|
|
|
$
|
29.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
|
Segment Data
|
|
(In millions)
|
|
|
|
|
|
Nine Months Ended September 30, 2013
|
|
|
|
Refining
|
|
Retail
|
|
Logistics
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
4,889.7
|
|
|
$
|
1,426.8
|
|
|
$
|
631.2
|
|
|
$
|
0.9
|
|
|
$
|
6,948.6
|
|
|
Intercompany fees and sales
|
|
319.4
|
|
|
—
|
|
|
53.1
|
|
|
(372.5
|
)
|
|
—
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
4,728.4
|
|
|
1,287.4
|
|
|
614.0
|
|
|
(347.2
|
)
|
|
6,282.6
|
|
|
Operating expenses
|
|
171.0
|
|
|
98.9
|
|
|
23.1
|
|
|
(2.4
|
)
|
|
290.6
|
|
|
Segment contribution margin
|
|
$
|
309.7
|
|
|
$
|
40.5
|
|
|
$
|
47.2
|
|
|
$
|
(22.0
|
)
|
|
375.4
|
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
87.7
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
64.2
|
|
|
Other Operating Income
|
|
|
|
|
|
|
|
|
|
(1.6
|
)
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
225.1
|
|
|
Capital spending (excluding business combinations)
|
|
$
|
68.8
|
|
|
$
|
21.6
|
|
|
$
|
3.3
|
|
|
$
|
23.6
|
|
|
$
|
117.3
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2012
|
|
|
|
Refining
|
|
Retail
|
|
Logistics
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
4,541.4
|
|
|
$
|
1,427.3
|
|
|
$
|
584.8
|
|
|
$
|
(11.3
|
)
|
|
$
|
6,542.2
|
|
|
Intercompany fees and sales
|
|
126.6
|
|
|
—
|
|
|
17.7
|
|
|
(144.3
|
)
|
|
—
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
4,072.6
|
|
|
1,294.8
|
|
|
561.2
|
|
|
(147.6
|
)
|
|
5,781.0
|
|
|
Operating expenses
|
|
152.0
|
|
|
96.0
|
|
|
20.6
|
|
|
(1.3
|
)
|
|
267.3
|
|
|
Segment contribution margin
|
|
$
|
443.4
|
|
|
$
|
36.5
|
|
|
$
|
20.7
|
|
|
$
|
(6.7
|
)
|
|
493.9
|
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
74.7
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
61.2
|
|
|
Other Operating Income
|
|
|
|
|
|
|
|
|
|
(0.1
|
)
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
358.1
|
|
|
Capital spending (excluding business combinations)
|
|
$
|
49.7
|
|
|
$
|
17.6
|
|
|
$
|
0.6
|
|
|
$
|
12.3
|
|
|
$
|
80.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining Segment
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Tyler Refinery
|
|
|
|
|
|
|
|
|
|
Days operated in period
|
|
92
|
|
|
92
|
|
|
273
|
|
|
274
|
|
Total sales volume (average barrels per day)(1)
|
|
66,493
|
|
|
62,467
|
|
|
65,045
|
|
|
59,329
|
|
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
33,040
|
|
|
32,444
|
|
|
34,719
|
|
|
31,202
|
|
Diesel/Jet
|
|
25,547
|
|
|
22,849
|
|
|
24,744
|
|
|
21,538
|
|
Petrochemicals, LPG, NGLs
|
|
2,941
|
|
|
2,868
|
|
|
2,536
|
|
|
2,422
|
|
Other
|
|
1,739
|
|
|
2,007
|
|
|
1,889
|
|
|
1,980
|
|
Total production
|
|
63,267
|
|
|
60,168
|
|
|
63,888
|
|
|
57,142
|
|
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
60,585
|
|
|
60,092
|
|
|
59,239
|
|
|
55,246
|
|
Other feedstocks
|
|
3,295
|
|
|
497
|
|
|
5,665
|
|
|
2,379
|
|
Total throughput
|
|
63,880
|
|
|
60,589
|
|
|
64,904
|
|
|
57,625
|
|
Per barrel of sales:
|
|
|
|
|
|
|
|
|
|
Tyler refining margin
|
|
$
|
8.56
|
|
|
$
|
22.01
|
|
|
$
|
15.55
|
|
|
$
|
20.71
|
|
Direct operating expenses
|
|
$
|
4.35
|
|
|
$
|
4.40
|
|
|
$
|
4.54
|
|
|
$
|
4.85
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
El Dorado Refinery
|
|
|
|
|
|
|
|
|
|
Days operated in period
|
|
92
|
|
|
92
|
|
|
273
|
|
|
274
|
|
Total sales volume (average barrels per day)(2)
|
|
79,804
|
|
|
69,491
|
|
|
75,589
|
|
|
74,910
|
|
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
|
Gasoline
|
|
35,916
|
|
|
30,514
|
|
|
34,006
|
|
|
31,849
|
|
Diesel
|
|
28,301
|
|
|
27,484
|
|
|
26,800
|
|
|
27,832
|
|
Petrochemicals, LPG, NGLs
|
|
742
|
|
|
1,198
|
|
|
1,179
|
|
|
1,303
|
|
Asphalt
|
|
7,290
|
|
|
8,489
|
|
|
8,139
|
|
|
9,483
|
|
Other
|
|
944
|
|
|
(589
|
)
|
|
952
|
|
|
928
|
|
Total production
|
|
73,193
|
|
|
67,096
|
|
|
71,076
|
|
|
71,395
|
|
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
66,920
|
|
|
62,592
|
|
|
65,895
|
|
|
66,106
|
|
Other feedstocks
|
|
8,269
|
|
|
7,165
|
|
|
5,253
|
|
|
6,755
|
|
Total throughput
|
|
75,189
|
|
|
69,757
|
|
|
71,148
|
|
|
72,861
|
|
Per barrel of sales:
|
|
|
|
|
|
|
|
|
|
El Dorado refining margin
|
|
$
|
5.36
|
|
|
$
|
17.20
|
|
|
$
|
9.39
|
|
|
$
|
12.49
|
|
Direct operating expenses
|
|
$
|
4.04
|
|
|
$
|
3.98
|
|
|
$
|
4.20
|
|
|
$
|
3.56
|
|
Pricing statistics (average for the period presented):
|
|
|
|
|
|
|
|
|
|
WTI — Cushing crude oil (per barrel)
|
|
$
|
105.94
|
|
|
$
|
92.29
|
|
|
$
|
98.21
|
|
|
$
|
96.21
|
|
Mars crude oil (per barrel)
|
|
$
|
104.92
|
|
|
$
|
104.37
|
|
|
$
|
104.45
|
|
|
$
|
107.91
|
|
US Gulf Coast 5-3-2 crack spread (per barrel)
|
|
$
|
12.30
|
|
|
$
|
29.96
|
|
|
$
|
19.55
|
|
|
$
|
26.43
|
|
US Gulf Coast Unleaded Gasoline (per gallon)
|
|
$
|
2.77
|
|
|
$
|
2.87
|
|
|
$
|
2.76
|
|
|
$
|
2.87
|
|
Ultra low sulfur diesel (per gallon)
|
|
$
|
3.02
|
|
|
$
|
3.07
|
|
|
$
|
2.99
|
|
|
$
|
3.06
|
|
Natural gas (per MMBTU)
|
|
$
|
3.55
|
|
|
$
|
2.88
|
|
|
$
|
3.69
|
|
|
$
|
2.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logistics Segment
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Pipelines & Transportation: (average bpd)
|
|
|
|
|
|
|
|
|
|
|
|
Lion Pipeline System:
|
|
|
|
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered)
|
|
|
47,675
|
|
|
|
44,492
|
|
|
|
47,331
|
|
|
|
46,989
|
|
|
Refined products pipelines to Enterprise Systems
|
|
|
52,301
|
|
|
|
42,862
|
|
|
|
47,691
|
|
|
|
44,495
|
|
|
SALA Gathering System
|
|
|
21,921
|
|
|
|
20,824
|
|
|
|
22,236
|
|
|
|
20,434
|
|
|
East Texas Crude Logistics System
|
|
|
10,148
|
|
|
|
58,652
|
|
|
|
24,104
|
|
|
|
54,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Marketing & Terminalling:
|
|
|
|
|
|
|
|
|
|
|
|
East Texas - Tyler Refinery sales volumes (average bpd)(3)
|
|
|
61,698
|
|
|
|
58,708
|
|
|
|
55,988
|
|
|
|
55,875
|
|
|
West Texas marketing throughputs (average bpd)(4)
|
|
|
18,966
|
|
|
|
16,714
|
|
|
|
18,206
|
|
|
|
16,026
|
|
|
West Texas marketing margin per barrel
|
|
$
|
1.63
|
|
|
$
|
3.01
|
|
|
$
|
2.41
|
|
|
$
|
2.25
|
|
|
Terminalling throughputs (average bpd)(5)
|
|
|
74,024
|
|
|
|
15,465
|
|
|
|
73,996
|
|
|
|
73,157
|
|
|
|
|
|
|
|
|
Retail Segment
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Number of stores (end of period)
|
|
|
362
|
|
|
|
372
|
|
|
|
362
|
|
|
|
372
|
|
|
Average number of stores
|
|
|
367
|
|
|
|
373
|
|
|
|
370
|
|
|
|
374
|
|
|
Retail fuel sales (thousands of gallons)
|
|
|
102,538
|
|
|
|
106,379
|
|
|
|
307,902
|
|
|
|
303,496
|
|
|
Retail fuel margin ($ per gallon)
|
|
$
|
0.205
|
|
|
$
|
0.139
|
|
|
$
|
0.183
|
|
|
$
|
0.148
|
|
|
Merchandise sales (in thousands)
|
|
$
|
102,552
|
|
|
$
|
100,020
|
|
|
$
|
288,028
|
|
|
$
|
287,777
|
|
|
Merchandise margin %
|
|
|
27.6
|
%
|
|
|
28.6
|
%
|
|
|
28.4
|
%
|
|
|
29.2
|
%
|
|
Change in same-store fuel gallons sold
|
|
|
(5.3
|
)%
|
|
|
(0.8
|
)%
|
|
|
0.1
|
%
|
|
|
0.8
|
%
|
|
Change in same-store merchandise sales
|
|
|
2.7
|
%
|
|
|
0.5
|
%
|
|
|
0.5
|
%
|
|
|
4.0
|
%
|
|
|
|
(1) Sales volume includes 532 bpd and 1,745 bpd sold to
the logistics segment during the three and nine months ended
September 30, 2013 and 754 bpd and 554 bpd during the three and
nine months ended September 30, 2012, respectively. Sales volume
also includes sales of 2,047 bpd and 1,253 bpd during the three
and nine months ended September 30, 2013 and 4,466 bpd and 2,979
bpd three and nine months ended September 30, 2012, respectively,
of intermediate products.
|
|
(2) Sales volume includes 9,466 bpd and 11,236 bpd and
1,920 bpd and 2,684 bpd, respectively, sold to the retail segment
during the three and nine months ended September 30, 2013 and
2012. Sales volume excludes 19,750 bpd and 21,534 bpd of buy/sell
activity during the three and nine months ended September 30, 2013
and 14,678 bpd and 9,234 bpd during the three and nine months
ended September 30, 2012, respectively.
|
|
(3) Excludes jet fuel and petroleum coke
|
|
(4) Excludes bulk ethanol and biodiesel
|
|
(5) The information presented includes the results of
operations of our Predecessors. Prior to the completion of the
Offering and the Tyler Acquisition, our Predecessors did not
record all revenues for intercompany gathering, pipeline
transportation, terminalling and storage services. Volumes for all
periods presented include both affiliate and third-party
throughput.
|
|
|
|
|
|
|
Copyright Business Wire 2013