EXHIBIT 99.1
GIANT INDUSTRIES, INC.
NEWS RELEASE
Contact: Mark B. Cox
Executive Vice President, Treasurer, & Chief Financial Officer
Giant Industries, Inc.
(480) 585-8888
FOR IMMEDIATE RELEASE
November 7, 2005
GIANT INDUSTRIES, INC. ANNOUNCES
THIRD QUARTER 2005 RESULTS
Scottsdale, Arizona - November 7, 2005 - Giant Industries, Inc. [NYSE: GI]
today reported net earnings of $46.6 million, or $3.38 per diluted share for
the third quarter ended September 30, 2005. Net earnings were $6.0 million,
or $0.48 per diluted share in the third quarter of 2004. The Company reported
net earnings of $77.3 million, or $5.80 per diluted share, for the first nine
months of 2005 compared to net earnings of $15.5 million, or $1.41 per
diluted share in 2004.
Giant's Chairman and Chief Executive Officer, Fred Holliger commented,
"Strong operating and financial performances from each of our strategic
business units contributed to the overall financial results in the third
quarter. While two hurricanes had a negative impact on the supply of refined
products nationwide, we had solid operating performance at our refineries
throughout the quarter. The tightened supply and strong demand contributed to
exceptional refining margins, and we were pleased to supply the gasoline and
distillate requirements of both our Four Corners and East Coast customers."
"The refining industry requires significant capital commitments for ongoing
operations as well as to meet government mandated environmental expenditures.
We currently estimate that we will spend in excess of $100 million to produce
ultra low sulfur gasoline and diesel and satisfy other regulatory mandates.
In addition, our working capital requirements have more than doubled this
year because of higher crude oil and finished product prices. The improved
earnings and cash flow from operations over the past several quarters have
placed us in a position to meet these capital requirements, improve the
return on capital employed in our refining business, and enable us to
consider opportunities for further enhancing shareholder value from the
historically low returns in the industry."
"In the third quarter, our retail operations continued to see growth in fuel
volumes and merchandise sales. Same store fuel volumes increased
approximately 3% and same store merchandise sales increased approximately 6%
over the prior year third quarter level. Throughout the quarter, we also
experienced improvement in both fuel and merchandise margins. All of these
factors contributed to increased profitability from our retail operations."
"Phoenix Fuel continued to experience strong demand for gasoline and diesel
in both wholesale and cardlock operations. These volumes, combined with
improved fuel margins, contributed to increased earnings versus the prior
year level."
Holliger continued, "In July, we announced the acquisition of Dial Oil Co.,
one of the premier wholesale distributors of gasoline, diesel and lubricants in
New Mexico, with operations throughout the Southwest. We are very pleased with
this growth opportunity as Dial is complementing our Phoenix Fuel and retail
operations and its financial contribution is exceeding our original
expectations."
"We are moving forward with our plans to place our recently acquired crude
oil pipeline back into service. Currently, we anticipate that we will begin
hydrotesting the pipeline prior to the end of year and subsequent
construction activity should begin early next year. We anticipate that we
should have the pipeline operational before the end of 2006. As previously
noted, when operational the pipeline has sufficient capacity to allow us to
again operate both Four Corners refineries at maximum rates."
Giant's senior management will hold a conference call at 1 p.m. ET on
November 8, 2005 to discuss this earnings release and provide an update on
Company operations. The conference call will be broadcast live on the
Company's website at www.giant.com.
Giant Industries, Inc., headquartered in Scottsdale, Arizona, is a refiner
and marketer of petroleum products. Giant owns and operates one Virginia and
two New Mexico crude oil refineries, a crude oil gathering pipeline system
based in Farmington, New Mexico, which services the New Mexico refineries,
finished products distribution terminals in Albuquerque, New Mexico and
Flagstaff, Arizona, a fleet of crude oil and finished product truck
transports, and a chain of retail service station/convenience stores in New
Mexico, Colorado, and Arizona. Giant is also the parent Company of Phoenix
Fuel Co., Inc. and Dial Oil Co., both of which are wholesale petroleum
products distributors. For more information, please visit Giant's website at
www.giant.com.
This press release contains forward-looking statements that involve known and
unknown risks and uncertainties. Forward-looking statements are identified by
words or phrases such as "believes," "expects," "anticipates," "estimates,"
"should," "could," "plans," "intends," "will," variations of such words and
phrases, and other similar expressions. While these forward-looking
statements are made in good faith, and reflect the Company's current judgment
regarding such matters, actual results could vary materially from the
forward-looking statements. Important factors that could cause actual results
to differ from forward-looking statements include, but are not limited to:
the risk that Dial will not continue to complement our Phoenix Fuel and
retail operations, the risk that the financial contribution from Dial Oil Co.
will not continue to exceed our original expectations, the risk that the
pipeline acquisition and the acquisition of Dial Oil Co. will not result in
additional growth or increased profitability for our Four Corners operations,
the risk that it will not be possible to place the acquired pipeline system
in operation and/or operate the Bloomfield and Ciniza refineries at maximum
rates due to financial, operational or other constraints, the risk that the
timetable for placing the pipeline system into operation will be different
than anticipated, the risk that it will not be possible to obtain additional
crude oil for processing at the Bloomfield and Ciniza refineries at cost
effective prices; and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission. All subsequent written
and oral forward-looking statements attributable to the Company, or persons
acting on behalf of the Company, are expressly qualified in their entirety by
the foregoing. Forward-looking statements made by the Company represent its
judgment on the dates such statements are made. The Company assumes no
obligation to update any forward-looking statements to reflect new or changed
events or circumstance.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands except shares and per share data)
- -----------------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -----------------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------
Net revenues $ 1,085,225 $ 642,439 $ 2,660,309 $ 1,837,282
- -----------------------------------------------------------------------------------------------------------
Cost of products sold (excluding depreciation
and amortization) 920,408 564,563 2,295,082 1,582,656
Operating expenses 53,901 42,158 148,889 129,895
Depreciation and amortization 9,973 9,024 30,435 27,342
Selling, general and administrative expenses 15,431 10,110 35,072 28,362
Net loss/(gain) on disposal of assets, including
assets held for sale 1,055 (889) 835 (327)
Gain from insurance settlement due to fire incident - (958) (3,688) (958)
- -----------------------------------------------------------------------------------------------------------
Operating income 84,457 18,431 153,684 70,312
Interest expense (5,783) (7,173) (19,159) (25,222)
Costs associated with early debt extinguishment 17 - (2,082) (10,875)
Amortization of financing costs (398) (1,012) (2,398) (7,827)
Interest and investment income 479 57 967 138
- -----------------------------------------------------------------------------------------------------------
Earnings from continuing operations before
income taxes 78,772 10,303 131,012 26,526
Provision for income taxes 32,132 4,328 53,776 10,934
- -----------------------------------------------------------------------------------------------------------
Earnings from continuing operations 46,640 5,975 77,236 15,592
Earnings (loss) from discontinued
operations, net of income tax (provision)
benefit of ($7), ($9) and $61 - 12 15 (99)
- -----------------------------------------------------------------------------------------------------------
Net earnings $ 46,640 $ 5,987 $ 77,251 $ 15,493
===========================================================================================================
Net earnings (loss) per common share:
Basic
Continuing operations $ 3.43 $ 0.49 $ 5.88 $ 1.45
Discontinued operations - - - (0.01)
- -----------------------------------------------------------------------------------------------------------
$ 3.43 $ 0.49 $ 5.88 $ 1.44
===========================================================================================================
Assuming dilution
Continuing operations $ 3.38 $ 0.48 $ 5.80 $ 1.42
Discontinued operations - - - (0.01)
- -----------------------------------------------------------------------------------------------------------
$ 3.38 $ 0.48 $ 5.80 $ 1.41
===========================================================================================================
Weighted average number of shares outstanding:
Basic 13,611,847 12,242,994 13,137,526 10,693,386
Assuming dilution 13,786,784 12,496,204 13,324,686 10,960,684
===========================================================================================================
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
- -----------------------------------------------------------------------------------------
September 30, 2005 December 31, 2004
- -----------------------------------------------------------------------------------------
Assets
Current assets $ 447,189 $ 232,005
- -----------------------------------------------------------------------------------------
Property, plant and equipment 745,218 671,851
Less accumulated depreciation and amortization (292,683) (265,475)
452,535 406,376
Other assets 74,721 64,025
- -----------------------------------------------------------------------------------------
Total Assets $ 974,445 $ 702,406
=========================================================================================
Liabilities and Stockholders' Equity
Current liabilities $ 233,031 $ 128,833
Long-term debt 274,742 292,759
Deferred income taxes 72,785 41,039
Other liabilities and deferred income 23,418 23,336
Stockholders' equity 370,469 216,439
- -----------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 974,445 $ 702,406
=========================================================================================
Certain reclassifications have been made to the year 2004 financial statements to conform
to classifications used in 2005. These reclassifications had no effect on reported earnings
or stockholders' equity.
OPERATING STATISTICS
3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005 4 Qtr. 2004 3 Qtr. 2004
- --------------------------------------------------------------------------------------------------------
Refining Group:
- ---------------
Four Corners Operations:
Crude Oil/NGL Throughput (BPD) 29,867 29,811 28,810 29,088 29,271
Refinery Sourced Sales Barrels (BPD) 29,096 29,344 28,559 28,198 28,412
Avg. Crude Oil Costs ($/Bbl) $ 60.59 $ 51.64 $ 47.46 $ 47.18 $ 40.99
Refining Margins ($/Bbl) $ 18.08 $ 13.48 $ 7.86 $ 7.36 $ 8.14
Retail Fuel Volumes Sold as a % of
Four Corners Refinery's Sourced
Sales Barrels 38% 37% 37% 37% 38%
Yorktown Operations:
Crude Oil/NGL Throughput (BPD) 68,201 68,449 65,740 52,941 53,991
Refinery Sourced Sales Barrels (BPD) 70,936 71,539 62,726 56,854 53,585
Avg. Crude Oil Costs ($/Bbl) $ 58.05 $ 48.76 $ 44.96 $ 44.55 $ 38.43
Refining Margins ($/Bbl) $ 11.25 $ 7.30 $ 6.78 $ 4.56 $ 6.01
Retail Group:(1)
- ----------------
Fuel Gallons Sold (000's) 42,529 41,410 39,469 40,253 41,244
Fuel Margins ($/gal) $ 0.21 $ 0.17 $ 0.11 $ 0.17 $ 0.18
Merchandise Sales ($ in 000's) $ 38,285 $ 36,325 $ 31,287 $ 32,635 $ 36,276
Merchandise Margins 27% 27% 27% 26% 20%
Number of Operating Units at
End of Period 124 124 125 124 125
Wholesale Group:
- ----------------
Phoenix Fuel:
- -------------
Fuel Gallons Sold (000's) 118,844 120,344 120,865 116,569 119,253
Fuel Margins ($/gal) $ 0.08 $ 0.06 $ 0.06 $ 0.06 $ 0.05
Lubricant Sales ($ in 000's) $ 8,247 $ 9,027 $ 8,412 $ 7,962 $ 7,933
Lubricant Margins 28% 10% 14% 13% 13%
Dial Oil:
- ---------
Fuel Gallons Sold (000's) 24,963 - - - -
Fuel Margins ($/gal) $ 0.12 - - - -
Lubricant Sales ($ in 000's) $ 5,833 - - - -
Lubricant Margins 13% - - - -
Merchandise Sales ($ in 000's) $ 2,241 - - - -
Merchandise Margins 26% - - - -
Operating Retail Outlets at Period End 12 - - - -
- --------------------------------------------------------------------------------------------------------
3 Qtr. 2005 2 Qtr. 2005 1 Qtr. 2005 4 Qtr. 2004 3 Qtr. 2004
- --------------------------------------------------------------------------------------------------------
Operating Income (Loss) (before
corporate allocations) (in 000's)
- -----------------------------------
Refining - Four Corners Operations $ 32,968 $ 19,724 $ 6,285 $ 2,899 $ 8,150
- Yorktown Operations 52,288 27,312 17,650 4,854 11,652
Retail(1) 3,804 3,114 (1,679) 1,658 1,428
Wholesale:
Phoenix Fuel 6,641 2,815 3,699 3,194 2,216
Dial Oil 1,509 - - - -
Corporate (11,698) (8,557) (5,043) (6,922) (6,879)
Net (loss) gain on disposal/write-down
of assets(1)(2) (1,055) 425 3,505 2,455 1,883
- --------------------------------------------------------------------------------------------------------
Total(1) $ 84,457 $ 44,833 $ 24,417 $ 8,138 $ 18,450
========================================================================================================
Capital Expenditures (in 000's)(3)
- ----------------------------------
Refining - Four Corners Operations(4) $ 12,958 $ 1,930 $ 1,167 $ 1,302 $ 5,915
- Yorktown Operations 14,734 10,790 9,837 12,635 10,523
Retail 1,221 1,230 780 4,220 919
Wholesale:
Phoenix Fuel 470 576 458 414 500
Dial Oil 58 - - - -
Corporate 252 345 584 259 135
- --------------------------------------------------------------------------------------------------------
Total $ 29,693 $ 14,871 $ 12,826 $ 18,830 $ 17,992
========================================================================================================
(1) Includes discontinued operations.
(2) Includes insurance proceeds related to the Ciniza fire incident.
(3) Excludes Yorktown refinery acquisition contingent payments.
(4) Includes disbursements related to the Ciniza fire incident.
Selected Financial Data
September 30, 2005 December 31, 2004
- -------------------------------------------------------------------------------------------
Working Capital (In Thousands) $ 214,158 $ 103,172
Current Ratio 1.92:1 1.80:1
Long-Term Debt As A Percent of Total Capital (5) 42.6% 57.5%
Net Debt As A Percent of Total Net Capital (6) 32.2% 55.4%
Book Value Per Share (7) $ 25.60 $ 17.55
Net cash provided by operating activities $ 102,933 $ 76,514
- -------------------------------------------------------------------------------------------
(5) Total capital represents long-term debt plus total stockholders' equity.
(6) Net debt represents long-term debt less cash and cash equivalents. Total net capital
represents long-term debt less cash and cash equivalents plus total stockholders' equity.
(7) Book value per share represents total stockholders' equity divided by number of common
shares outstanding.
Share Price Data (NYSE: GI)
High Low Close
- -------------------------------------------
2005 3rd Quarter $59.74 $35.90 $58.54
2005 2nd Quarter $36.49 $25.52 $36.00
2005 1st Quarter $31.81 $23.54 $25.70
2004 4th Quarter $28.98 $22.00 $26.51
2004 3rd Quarter $27.25 $20.29 $24.30
RECONCILIATIONS TO AMOUNTS REPORTED UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
REFINING GROUP
- --------------
Refining Margin
- ---------------
Refining margin is the difference between average net sales prices and average cost of products
produced per refinery sourced sales barrel of refined product. Refining margins for each of our
refineries and all of our refineries on a consolidated basis are calculated as shown below.
- -------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------
AVERAGE PER BARREL
Four Corners Operation
Net sales $ 83.48 $ 53.68 $ 70.60 $ 50.29
Less cost of products 65.40 45.54 57.39 40.75
- -------------------------------------------------------------------------------------------------
Refining margin $ 18.08 $ 8.14 $ 13.21 $ 9.54
=================================================================================================
Yorktown Operation
Net sales $ 72.52 $ 47.67 $ 61.42 $ 43.45
Less cost of products 61.27 41.66 52.90 37.52
- -------------------------------------------------------------------------------------------------
Refining margin $ 11.25 $ 6.01 $ 8.52 $ 5.93
=================================================================================================
Consolidated
Net sales $ 75.71 $ 49.75 $ 64.15 $ 45.52
Less cost of products 62.47 43.00 54.24 38.50
- -------------------------------------------------------------------------------------------------
Refining margin $ 13.24 $ 6.75 $ 9.91 $ 7.02
=================================================================================================
Reconciliations of refined product sales from produced products sold per barrel to net revenues
Four Corners Operations
Average sales price per produced
barrel sold $ 83.48 $ 53.68 $ 70.60 $ 50.29
Times refinery sourced sales
barrels per day 29,096 28,412 29,002 27,072
Times number of days in period 92 92 273 274
- -------------------------------------------------------------------------------------------------
Refined product sales from
produced products sold (000's) $ 223,462 $ 140,314 $ 558,979 $ 373,038
=================================================================================================
Yorktown Operations
Average sales price per produced
barrel sold $ 72.52 $ 47.67 $ 61.42 $ 43.45
Times refinery sourced sales
barrels per day 70,936 53,585 68,430 62,391
Times number of days in period 92 92 273 274
- -------------------------------------------------------------------------------------------------
Refined product sales from
produced products sold (000's) $ 473,274 $ 235,005 $1,147,411 $ 742,784
=================================================================================================
Consolidated (000's)
Sum of refined product sales from
produced products sold* $ 696,736 $ 375,319 $1,706,390 $1,115,822
Purchased product, Transportation
and other revenues 49,706 60,118 146,199 150,401
- -------------------------------------------------------------------------------------------------
Net revenue $ 746,442 $ 435,437 $1,852,589 $1,266,223
=================================================================================================
*Includes inter-segment net revenues.
- -------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------
Reconciliation of average cost of
products per produced per barrel sold
to total cost of products sold (excluding
depreciation and amortization)
Four Corners Operation
Average cost of products per
produced barrel sold $ 65.40 $ 45.54 $ 57.39 $ 40.75
Times refinery sourced sales
barrels per day 29,096 28,412 29,002 27,072
Times number of days in period 92 92 273 274
- -------------------------------------------------------------------------------------------------
Cost of products for produced
products sold (000's) $ 175,065 $ 119,037 $ 454,388 $ 302,272
=================================================================================================
Yorktown Operations
Average cost of products per
produced barrel sold $ 61.27 $ 41.66 $ 52.90 $ 37.52
Times refinery sourced sales
barrels per day 70,936 53,585 68,430 62,391
Times number of days in period 92 92 273 274
- -------------------------------------------------------------------------------------------------
Cost of products for produced
products sold (000's) $ 399,855 $ 205,376 $ 988,246 $ 641,409
=================================================================================================
Consolidated (000's)
Sum of refined cost of produced
products sold $ 574,920 $ 324,413 $1,442,634 $ 943,681
Purchased product, transportation
and other cost of products sold 41,174 53,588 121,835 130,778
- -------------------------------------------------------------------------------------------------
Total cost of products sold
(excluding depreciation and
amortization) $ 616,094 $ 378,001 $1,564,469 $1,074,459
=================================================================================================
RETAIL GROUP
- ------------
Fuel Margin
- -----------
Fuel margin is the difference between fuel sales less cost of fuel sales divided by number of
gallons sold.
- -------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 110,975 $ 78,445 $ 281,469 $ 213,438
Less cost of fuel sold 102,168 71,048 261,123 191,973
- -------------------------------------------------------------------------------------------------
Fuel margin $ 8,807 $ 7,397 $ 20,346 $ 21,465
Number of gallons sold 42,529 41,244 123,409 116,664
Fuel margin per gallon $ 0.21 $ 0.18 $ 0.16 $ 0.18
Reconciliation of fuel sales to
net revenues (000's)
Fuel sales $ 110,975 $ 78,445 $ 281,469 $ 213,438
Excise taxes included in sales (15,640) (15,325) (46,006) (42,071)
- -------------------------------------------------------------------------------------------------
Fuel sales, net of excise taxes 95,335 63,120 235,463 171,367
Merchandise sales 38,285 36,276 105,898 101,378
Other sales 3,894 3,550 11,952 11,115
- -------------------------------------------------------------------------------------------------
Net revenues $ 137,514 $ 102,946 $ 353,313 $ 283,860
=================================================================================================
Reconciliation of fuel cost of products
sold to total cost of products sold
(excluding depreciation and amortization)
(000's)
Fuel cost of products sold $ 102,168 $ 71,048 $ 261,123 $ 191,973
Excise taxes included in cost of
products sold (15,640) (15,325) (46,006) (42,071)
- -------------------------------------------------------------------------------------------------
Fuel cost of products sold, net
of excise taxes 86,528 55,723 215,117 149,902
Merchandise cost of products sold 27,888 28,982 77,170 77,643
Other cost of products sold 3,065 2,803 9,494 8,787
- -------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 117,481 $ 87,508 $ 301,781 $ 236,332
=================================================================================================
WHOLESALE GROUP
- ---------------
Fuel Margin
- -----------
Fuel margin is the difference between fuel sales less cost of fuel sales divided by number of
gallons sold.
Phoenix Fuel
- ------------
- -------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel sales $ 286,471 $ 206,048 $ 760,266 $ 595,312
Less cost of fuel sold 276,874 199,959 736,263 576,416
- -------------------------------------------------------------------------------------------------
Fuel margin $ 9,597 $ 6,089 $ 24,003 $ 18,896
Number of gallons sold 118,844 119,253 360,054 356,439
Fuel margin per gallon $ 0.08 $ 0.05 $ 0.07 $ 0.05
Reconciliation of fuel sales to net
revenues (000's)
Fuel sales $ 286,471 $ 206,048 $ 760,266 $ 595,312
Excise taxes included in sales (33,357) (41,622) (119,503) (122,107)
- -------------------------------------------------------------------------------------------------
Fuel sales, net of excise taxes 253,114 164,426 640,763 473,205
Lubricant sales 8,247 7,933 25,686 22,635
Other sales 1,101 966 3,402 2,784
- -------------------------------------------------------------------------------------------------
Net revenues $ 262,462 $ 173,325 $ 669,851 $ 498,624
=================================================================================================
Reconciliation of fuel cost of products
sold to total cost of products sold
excluding (depreciation and amortization)
(000's)
Fuel cost of products sold $ 276,874 $ 199,959 $ 736,263 $ 576,416
Excise taxes included in cost
of products sold (33,357) (41,622) (119,503) (122,107)
- -------------------------------------------------------------------------------------------------
Fuel cost of products sold,
net of excise taxes 243,517 158,337 616,760 454,309
Lubricant cost of products sold 5,942 6,885 21,268 19,669
Other cost of products sold 259 231 724 343
- -------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 249,718 $ 165,453 $ 638,752 $ 474,321
=================================================================================================
Dial Oil(1),(2)
- ---------------
- -------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------
(in 000's except fuel margin per gallon)
Fuel Sales $ 52,254 $ - $ 52,254 $ -
Less cost of fuel sold 49,319 - 49,319 -
- -------------------------------------------------------------------------------------------------
Fuel margin $ 2,935 $ - $ 2,935 $ -
Number of gallons sold 24,963 - 24,963 -
Fuel margin per gallon $ 0.12 $ - $ 0.12 $ -
Reconciliation of fuel sales to
net revenues
Fuel sales $ 52,254 $ - $ 52,254 $ -
Lubricant and merchandise sales 8,575 - 8,575 -
Other sales 760 - 760 -
- -------------------------------------------------------------------------------------------------
Net revenues $ 61,589 $ - $ 61,589 $ -
=================================================================================================
Reconciliation of cost of fuel sold to
total cost of products sold (excluding
depreciation and amortization)
Fuel cost of products sold $ 49,319 $ - $ 49,319 $ -
Lubricant and merchandise cost
of products sold 7,166 - 7,166 -
Other cost of products sold - - - -
- -------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization) $ 56,485 $ - $ 56,485 $ -
=================================================================================================
(1) Statistics presented are from July 13, 2005 to September 30, 2005.
(2) Dial Oil presents sales and cost of sales, net of excise taxes.
- -------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
- -------------------------------------------------------------------------------------------------
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------
Consolidated
Reconciliation to net revenues reported
in Condensed Consolidated Statement of
Earnings (000's)
Net revenues - Refinery Group $ 746,442 $ 435,437 $1,852,589 $1,266,223
Net revenues - Retail Group 137,514 102,946 353,313 283,860
Net revenues - Wholesale Group:
Net revenues - Phoenix Fuel 262,462 173,325 669,851 498,624
Net revenues - Dial Oil 61,589 - 61,589 -
Net revenues - Other 67 154 378 486
Eliminations (122,849) (69,423) (277,411) (211,911)
- -------------------------------------------------------------------------------------------------
Total net revenues reported in
Condensed Consolidated Statement
of Earnings $1,085,225 $ 642,439 $2,660,309 $1,837,282
=================================================================================================
Reconciliation to cost of products sold
(excluding depreciation and amortization)
in Condensed Consolidated Statement of
Earnings (000's)
Cost of products sold - Refinery Group
(excluding depreciation and
amortization) $ 616,094 $ 378,001 $1,564,469 $1,074,459
Cost of products sold - Retail Group
(excluding depreciation and
amortization) 117,481 87,508 301,781 236,332
Cost of products sold - Wholesale Group:
Cost of products sold -
Phoenix Fuel (excluding depreciation
and amortization) 249,718 165,453 638,752 474,321
Cost of products sold - Dial Oil
(excluding depreciation and
amortization) 56,485 - 56,485 -
Eliminations (122,849) (69,423) (277,411) (211,911)
Other 3,479 3,024 11,006 9,455
- -------------------------------------------------------------------------------------------------
Total cost of products sold (excluding
depreciation and amortization)
reported in Condensed Consolidated
Statement of Earnings $ 920,408 $ 564,563 $2,295,082 $1,582,656
=================================================================================================
Our refining margin per barrel is calculated by subtracting cost of products from net sales and
dividing the result by the number of barrels sold for the period. Our fuel margin per gallon is
calculated by subtracting cost of fuel sold from fuel sales and dividing the result by the number
of gallons sold for the period. We use refining margin per barrel and fuel margin per gallon to
evaluate performance, and allocate resources. These measures may not be comparable to similarly
titled measures used by other companies. Investors and analysts use these financial measures to
help analyze and compare companies in the industry on the basis of operating performance. These
financial measures should not be considered as alternatives to segment operating income,
revenues, costs of sales and operating expenses or any other measure of financial performance
presented in accordance with accounting principles generally accepted in the United States of
America.