[Premcor Logo]
Premier People,
Products and Services
NEWS RELEASE
Premcor Inc.
8182 Maryland Avenue
Suite 600
St. Louis, Missouri 63105
314-854-9696
314-854-1580 fax
PREMCOR ANNOUNCES FOURTH QUARTER AND 2001
FULL YEAR RESULTS
ST. LOUIS, February 12, 2002---Premcor Inc. today reported a net loss
of $44.5 million for the fourth quarter ended December 31, 2001. Excluding the
effect of the special items discussed below, the net loss was $22.8 million,
compared to net income of $18.3 million for the fourth quarter of 2000. Reported
net income for the full year of 2001 reached a record $142.6 million. Excluding
special items, net income rose to $249.8 million, a three-fold increase over
full year 2000 net income of $80.1 million.
Thomas D. O'Malley, who was appointed Premcor's chairman, chief
executive officer and president on February 1, 2002, commented, "Premcor's
record 2001 results clearly demonstrate the benefits of the Port Arthur heavy
oil upgrade project and our presence in the historically strong Midwest refining
region. These factors enabled us to achieve a year over year improvement in our
realized refining margin that was over three times the improvement in the
benchmark industry margins for our refining regions.
"Fourth quarter refining margins declined sharply from third quarter
and prior year levels due to the weak economy and unseasonably warm weather,"
continued O'Malley. "Although industry margin benchmarks dropped 34 percent in
our regions as compared to last year's fourth quarter, our realized refining
margins declined only 22 percent. Excluding a $19.3 million charge related to
the liquidation of high cost LIFO inventory, which was equivalent to $.47 per
barrel, the decline would have been only 10 percent.
"Our leverage to heavy sour crude oil partially mitigated the impact of
the fourth quarter's market conditions, but product differentials to benchmarks
eroded due to the dramatic decline in the demand for transportation fuels. This
was most noticeable in our Midwest operations. Our refineries operated well
during the fourth quarter but our overall fourth quarter results were below
breakeven. This was a disappointing conclusion to a year of transformation,"
O'Malley said.
PREMCOR USA INC.
Premcor USA Inc. (Premcor USA), a wholly-owned subsidiary of Premcor
Inc. and the parent of The Premcor Refining Group Inc. (PRG), reported a fourth
quarter 2001 net loss of $49.0 million. Excluding special items, the net loss
was $27.3 million, compared to net income of $8.8 million for the fourth quarter
of 2000. Reported net income for the full year of 2001 was $26.0 million.
Excluding special items, net income was $133.1 million, compared to $76.1
million for the full year of 2000.
SABINE RIVER HOLDING CORP.
Sabine River Holding Corp. (Sabine), a 90% owned subsidiary of Premcor
Inc. and the general partner of the Port Arthur Coker Company L.P. (PACC),
reported net income of $4.6 million for the fourth quarter 2001, compared to
$12.4 million for the same quarter last year. The company reported net income of
$128.1 million for the full year 2001, compared to $6.3 million for the same
period a year ago. The prior year results for both the quarter and the full year
included approximately one month of operations and only pre-operating and
general and administrative expenses for the balance of the periods.
SPECIAL ITEMS
For the fourth quarter 2001, Premcor Inc. and Premcor USA special items
included restructuring and other charges totaling $15.5 million, representing an
adjustment to reserves established in connection with previously discontinued
retail operations, and the $19.3 million LIFO charge discussed above. The
after-tax effect of these special items on the fourth quarter was a net loss of
$21.7 million
For the full year 2001, special items included a $5.6 million
extraordinary gain associated with the repurchase of long-term debt and
exchangeable preferred stock, a $30 million income tax benefit from prior years,
the $19.3 million LIFO charge, and restructuring and other charges totaling
$205.7 million. Pre-tax restructuring and other charges included $167.2 million
related to the Blue Island refinery closure, $9.0 million for decommissioning
two cokers that were idled in conjunction with the Port Arthur heavy oil upgrade
project and $29.5 million related to previously discontinued retail operations.
The after-tax effect of all special items for 2001 was a net loss of $107.2
million.
CASH BALANCES
At December 31, 2001, Premcor Inc. had $511.8 million of consolidated
cash and short-term investments. Included in the consolidated cash balance was
$286.9 million at Premcor USA, of which $25.5 million was available at the
Premcor USA parent level and $261.4 million was available at the PRG level.
Sabine had $222.8 million in cash in support of PACC operations and obligations.
In addition to these balances, Premcor Inc., through Sabine had $30.8 million in
cash reserved for mandatory debt service. Total capital and turnaround
expenditures at Premcor Inc. for the fourth quarter of 2001 were $44.6 million.
A conference call concerning fourth quarter and full year 2001 results
will be webcast live today at 10:00 a.m. CST on the Investor Relations section
of the Premcor Inc. web site at www.premcor.com.
Premcor Inc., through its principal operating subsidiaries, The Premcor
Refining Group Inc. and the Port Arthur Coker Company L.P., is one of the
largest independent petroleum refiners and marketers of unbranded transportation
fuels, heating oil, petrochemical feedstocks, petroleum coke and other petroleum
products in the United States. The company has an aggregate 490,000 barrels per
day (bpd) of crude distillation capacity at its three refineries located in Port
Arthur, Texas (250,000 bpd), Lima, Ohio (170,000 bpd) and Hartford, Illinois
(70,000 bpd).
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including the
company's current expectations with respect to future market conditions, future
operating results and the future performance of its refinery operations. Words
such as "expects," "intends," "plans," "projects," "believes," "estimates,"
"may," "will," "should," "shall," and similar expressions typically identify
such forward-looking statements. Even though Premcor believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from expectations
include, but are not limited to, operational difficulties, varying market
conditions, potential changes in gasoline, crude oil, distillate and other
commodity prices, government regulations, and other factors contained from time
to time in the reports filed with the Securities and Exchange Commission by the
company and its subsidiaries, including Sabine River Holding Corp., Premcor USA
Inc. and The Premcor Refining Group Inc., including quarterly reports on Form
10-Q, reports on Form 8-K, and annual reports on Form 10-K.
###
Contact:
Investors: Media:
- ---------- ------
Karen Davis Jim Joyce
(314) 854-1424 (314) 854-1511
ir@premcor.com jim.joyce@premcor.com
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended Year ended
December 31, December 31,
------------------------ ------------------------
(dollars in millions, unaudited) 2001 2000 2001 2000
----------- ----------- ----------- -----------
Operating revenues $ 1,246.6 $ 1,989.3 $ 6,417.5 $ 7,301.7
Cost of sales 1,117.7 1,801.0 5,251.4 6,562.5
----------- ----------- ---------- -----------
Gross margin (1) 128.9 188.3 1,166.1 739.2
Operating expenses 111.9 135.8 467.7 467.7
General and administrative expenses 18.0 17.4 63.3 53.0
----------- ----------- ---------- -----------
Adjusted EBITDA (2) (1.0) 35.1 635.1 218.5
Restructuring and other charges 15.5 -- 205.7 --
----------- ----------- ---------- -----------
EBITDA (2) (16.5) 35.1 429.4 218.5
Depreciation and amortization 24.2 19.5 91.9 71.8
----------- ----------- ---------- -----------
Operating income (loss) (40.7) 15.6 337.5 146.7
Interest expense and finance income, net (33.2) (20.0) (139.5) (82.2)
Income tax (provision) benefit 32.3 26.4 (37.8) 25.8
Minority interest (0.4) (1.2) (12.8) (0.6)
----------- ----------- ---------- -----------
Net income (loss) before extraordinary item and dividends (42.0) 20.8 147.4 89.7
Gain on repurchase of long-term debt, net of tax -- -- 5.6 --
Preferred stock dividends (2.5) (2.5) (10.4) (9.6)
----------- ----------- ---------- -----------
Net income (loss) available to common
stockholders $ (44.5) $ 18.3 $ 142.6 $ 80.1
=========== =========== ========== ===========
(1) 2001 results include a $19.3 million loss from liquidation
of high cost LIFO inventory.
(2) EBITDA represents earnings before interest, income taxes,
depreciation and amortization. Adjusted EBITDA excludes
restructuring and other charges
Selected Volumetric and Per Barrel Data
Production (Mbbls per day) 473.4 506.0 463.4 477.3
Crude oil throughput (Mbbls per day) 443.3 508.4 439.7 468.0
Per barrel of throughput:
Gross margin $ 3.16 $ 4.03 $ 7.27 $ 4.32
Operating expenses $ 2.74 $ 2.90 $ 2.91 $ 2.73
Market Indicators (dollars per barrel)
West Texas Intermediate, or "WTI" (sweet) $ 20.32 $ 31.94 $ 25.96 $ 30.37
Crack Spreads (3/2/1):
Gulf Coast $ 1.95 $ 3.73 $ 4.22 $ 4.17
Chicago $ 4.49 $ 5.59 $ 7.90 $ 5.84
Crude Oil Differentials:
WTI less WTS (sour) $ 1.91 $ 2.79 $ 2.81 $ 2.17
WTI less Maya (heavy sour) $ 6.33 $ 9.68 $ 8.76 $ 7.29
WTI less Dated Brent (foreign) $ 0.87 $ 2.42 $ 1.48 $ 1.92
Natural Gas (per mmbtu) $ 2.17 $ 5.25 $ 4.22 $ 3.94
December 31, December 31,
Financial Position 2001 2000
------------ ------------
Cash and short-term investments $ 511.8 $ 291.8
Other working capital (29.2) 33.2
Total assets 2,509.8 2,469.1
Long-term debt and exchangeable preferred stock 1,486.2 1,605.1
Stockholders' equity 294.7 152.1
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended December 31, 2001
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet - 133.7 133.7 29%
Light/medium sour 46.9 56.1 103.0 22%
Heavy sour 196.6 10.0 206.6 45%
----- ----- ----- ---
Total crude oil 243.5 199.8 443.3 96%
Unfinished and blendstocks 12.4 7.4 19.8 4%
----- ----- ----- ---
Total feedstocks 255.9 207.2 463.1 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 85.8 105.5 191.3 40%
Premium and reformulated gasoline 23.7 15.0 38.7 8%
Diesel fuel 85.5 45.5 131.0 28%
Jet fuel 23.0 21.1 44.1 9%
Petrochemical products 16.2 10.1 26.3 6%
----- ----- ----- ---
Total light products 234.2 197.2 431.4 91%
Petroleum coke and sulfur 25.9 5.6 31.5 7%
Residual oil 5.8 4.7 10.5 2%
----- ----- ----- ---
Total production 265.9 207.5 473.4 100%
===== ===== ===== ===
Three months ended December 31, 2000
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet - 174.6 174.6 35%
Light/medium sour 170.8 75.2 246.0 49%
Heavy sour 75.4 12.4 87.8 18%
----- ----- ----- ---
Total crude oil 246.2 262.2 508.4 102%
Unfinished and blendstocks (11.4) 3.6 (7.8) -2%
----- ----- ----- ---
Total feedstocks 234.8 265.8 500.6 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 80.3 119.5 199.8 39%
Premium and reformulated gasoline 17.9 37.2 55.1 11%
Diesel fuel 68.4 63.3 131.7 26%
Jet fuel 18.1 22.9 41.0 8%
Petrochemical products 24.4 11.5 35.9 7%
----- ----- ----- ---
Total light products 209.1 254.4 463.5 91%
Petroleum coke and sulfur 14.5 8.3 22.8 5%
Residual oil 15.0 4.7 19.7 4%
----- ----- ----- ---
Total production 238.6 267.4 506.0 100%
===== ===== ===== ===
Year ended December 31, 2001
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet - 143.6 143.6 32%
Light/medium sour 48.3 59.4 107.7 24%
Heavy sour 181.5 6.9 188.4 42%
----- ----- ----- ---
Total crude oil 229.8 209.9 439.7 98%
Unfinished and blendstocks 11.4 (0.8) 10.6 2%
----- ----- ----- ---
Total feedstocks 241.2 209.1 450.3 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 82.9 101.9 184.8 40%
Premium and reformulated gasoline 24.4 20.5 44.9 10%
Diesel fuel 77.2 44.5 121.7 26%
Jet fuel 19.7 22.7 42.4 9%
Petrochemical products 18.3 10.2 28.5 6%
----- ----- ----- ---
Total light products 222.5 199.8 422.3 91%
Petroleum coke and sulfur 26.5 6.6 33.1 7%
Residual oil 4.8 3.2 8.0 2%
----- ----- ----- ---
Total production 253.8 209.6 463.4 100%
===== ===== ===== ===
Year ended December 31, 2000
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet 3.6 197.9 201.5 43%
Light/medium sour 155.1 52.3 207.4 44%
Heavy sour 43.4 15.7 59.1 12%
----- ----- ----- ---
Total crude oil 202.1 265.9 468.0 99%
Unfinished and blendstocks 5.0 (0.4) 4.6 1%
----- ----- ----- ---
Total feedstocks 207.1 265.5 472.6 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 73.4 119.6 193.0 40%
Premium and reformulated gasoline 18.1 39.7 57.8 12%
Diesel fuel 58.0 59.8 117.8 25%
Jet fuel 16.6 21.4 38.0 8%
Petrochemical products 23.7 12.5 36.2 8%
----- ----- ----- ---
Total light products 189.8 253.0 442.8 93%
Petroleum coke and sulfur 11.3 7.7 19.0 4%
Residual oil 9.5 6.0 15.5 3%
----- ----- ----- ---
Total production 210.6 266.7 477.3 100%
===== ===== ===== ===
* Includes results of the company's Blue Island Three months ended December 31, Year ended December 31,
refinery, which was closed in January 2001 ------------------------------- -----------------------
as follows: 2001 2000 2001 2000
---- ---- ---- ----
Total feedstocks - 63.1 4.3 68.2
Total production - 63.1 4.3 68.0
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended Year ended
December 31, December 31,
--------------------- ---------------------
(dollars in millions, unaudited) 2001 2000 2001 2000
-------- -------- -------- --------
Operating revenues $1,267.8 $1,999.4 $6,532.8 $7,311.8
Cost of sales 1,184.8 1,823.4 5,758.1 6,584.9
-------- -------- -------- --------
Gross margin (1) 83.0 176.0 774.7 726.9
Operating expenses 93.5 131.6 359.7 460.3
General and administrative expenses 16.9 16.8 59.0 51.8
-------- -------- -------- --------
Adjusted EBITDA (2) (27.4) 27.6 356.0 214.8
Restructuring and other charges 15.5 -- 205.7 --
-------- -------- -------- --------
EBITDA (2) (42.9) 27.6 150.3 214.8
Depreciation and amortization 18.9 19.5 71.4 71.8
-------- -------- -------- --------
Operating income (loss) (61.8) 8.1 78.9 143.0
Interest expense and finance income, net:
Premcor USA Inc. (3.8) (4.3) (17.0) (17.9)
The Premcor Refining Group Inc. (14.9) (14.8) (62.2) (61.1)
Income tax benefit 34.0 22.3 31.1 21.7
-------- -------- -------- --------
Net income (loss) before extraordinary item (46.5) 11.3 30.8 85.7
Gain on repurchase of long-term debt, net of tax -- -- 5.6 --
Preferred stock dividends (2.5) (2.5) (10.4) (9.6)
-------- -------- -------- --------
Net income (loss) available to common
stockholder $ (49.0) $ 8.8 $ 26.0 $ 76.1
======== ======== ======== ========
(1) 2001 results include a $19.3 million loss from liquidation
of high cost LIFO inventory.
(2) EBITDA represents earnings before interest, income taxes,
depreciation and amortization. Adjusted EBITDA excludes
restructuring and other charges
Selected Volumetric and Per Barrel Data
Production (Mbbls per day) 453.3 501.0 445.6 476.0
Crude oil throughput (Mbbls per day) 239.6 472.8 253.7 459.1
PACC Intermediate throughput (Mbbls per day) 196.9 35.0 180.0 8.8
-------- -------- -------- --------
Total throughput 436.5 507.8 433.7 467.9
Per barrel of throughput:
Gross margin $ 2.07 $ 3.77 $ 4.89 $ 4.24
Operating expenses $ 2.33 $ 2.82 $ 2.27 $ 2.69
Market Indicators (dollars per barrel)
West Texas Intermediate, or "WTI" (sweet) $ 20.32 $ 31.94 $ 25.96 $ 30.37
Crack Spreads (3/2/1):
Gulf Coast $ 1.95 $ 3.73 $ 4.22 $ 4.17
Chicago $ 4.49 $ 5.59 $ 7.90 $ 5.84
Crude Oil Differentials:
WTI less WTS (sour) $ 1.91 $ 2.79 $ 2.81 $ 2.17
WTI less Maya (heavy sour) $ 6.33 $ 9.68 $ 8.76 $ 7.29
WTI less Dated Brent (foreign) $ 0.87 $ 2.42 $ 1.48 $ 1.92
Natural Gas (per mmbtu) $ 2.17 $ 5.25 $ 4.22 $ 3.94
December 31, December 31,
Financial Position 2001 2000
------------ ------------
Cash and short-term investments:
Premcor USA Inc. $ 25.5 $ 38.9
The Premcor Refining Group Inc. 261.4 216.5
Other working capital 90.3 66.4
Total assets 1,638.9 1,761.0
Long-term debt and exchangeable preferred stock:
Premcor USA Inc. 239.2 265.6
The Premcor Refining Group Inc. 784.0 796.9
Stockholder's equity 69.0 43.0
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended December 31, 2001
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet - 133.7 133.7 29%
Light/medium sour 6.1 56.1 62.2 14%
Heavy sour 33.7 10.0 43.7 10%
----- ----- ----- ---
Total crude oil 39.8 199.8 239.6 53%
PACC Intermediate throughput 196.9 - 196.9 43%
Unfinished and blendstocks 12.4 7.4 19.8 4%
----- ----- ----- ---
Total feedstocks 249.1 207.2 456.3 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 85.8 105.5 191.3 42%
Premium and reformulated gasoline 23.7 15.0 38.7 8%
Diesel fuel 85.5 45.5 131.0 29%
Jet fuel 23.0 21.1 44.1 10%
Petrochemical products 16.2 10.1 26.3 6%
----- ----- ----- ---
Total light products 234.2 197.2 431.4 95%
Petroleum coke and sulfur 6.4 5.6 12.0 3%
Residual oil 5.2 4.7 9.9 2%
----- ----- ----- ---
Total production 245.8 207.5 453.3 100%
===== ===== ===== ===
Three months ended December 31, 2000
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet - 174.6 174.6 35%
Light/medium sour 156.2 75.2 231.4 46%
Heavy sour 54.4 12.4 66.8 14%
----- ----- ----- ---
Total crude oil 210.6 262.2 472.8 95%
PACC Intermediate throughput 35.0 - 35.0 7%
Unfinished and blendstocks (11.4) 3.6 (7.8) -2%
----- ----- ----- ---
Total feedstocks 234.2 265.8 500.0 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 80.3 119.5 199.8 40%
Premium and reformulated gasoline 17.9 37.2 55.1 11%
Diesel fuel 68.4 63.3 131.7 26%
Jet fuel 18.1 22.9 41.0 8%
Petrochemical products 24.4 11.5 35.9 7%
----- ----- ----- ---
Total light products 209.1 254.4 463.5 92%
Petroleum coke and sulfur 10.5 8.3 18.8 4%
Residual oil 14.0 4.7 18.7 4%
----- ----- ----- ---
Total production 233.6 267.4 501.0 100%
===== ===== ===== ===
Year ended December 31, 2001
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet - 143.6 143.6 32%
Light/medium sour 10.3 59.4 69.7 16%
Heavy sour 33.5 6.9 40.4 9%
----- ----- ----- ---
Total crude oil 43.8 209.9 253.7 57%
PACC Intermediate throughput 180.0 - 180.0 41%
Unfinished and blendstocks 11.4 (0.8) 10.6 2%
----- ----- ----- ---
Total feedstocks 235.2 209.1 444.3 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 82.9 101.9 184.8 42%
Premium and reformulated gasoline 24.4 20.5 44.9 10%
Diesel fuel 77.2 44.5 121.7 27%
Jet fuel 19.7 22.7 42.4 10%
Petrochemical products 18.3 10.2 28.5 6%
----- ----- ----- ---
Total light products 222.5 199.8 422.3 95%
Petroleum coke and sulfur 8.8 6.6 15.4 3%
Residual oil 4.7 3.2 7.9 2%
----- ----- ----- ---
Total production 236.0 209.6 445.6 100%
===== ===== ===== ===
Year ended December 31, 2000
--------------------------------------------------
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
- --------------------------------- ------ -------- ----- --------
Feedstocks:
Crude oil throughput:
Sweet 3.6 197.9 201.5 43%
Light/medium sour 151.5 52.3 203.8 43%
Heavy sour 38.1 15.7 53.8 11%
----- ----- ----- ---
Total crude oil 193.2 265.9 459.1 97%
PACC Intermediate throughput 8.8 - 8.8 2%
Unfinished and blendstocks 5.0 (0.4) 4.6 1%
----- ----- ----- ---
Total feedstocks 207.0 265.5 472.5 100%
===== ===== ===== ===
Production:
Light products:
Conventional gasoline 73.4 119.6 193.0 41%
Premium and reformulated gasoline 18.1 39.7 57.8 11%
Diesel fuel 58.0 59.8 117.8 25%
Jet fuel 16.6 21.4 38.0 8%
Petrochemical products 23.7 12.5 36.2 8%
----- ----- ----- ---
Total light products 189.8 253.0 442.8 93%
Petroleum coke and sulfur 10.3 7.7 18.0 4%
Residual oil 9.2 6.0 15.2 3%
----- ----- ----- ---
Total production 209.3 266.7 476.0 100%
===== ===== ===== ===
* Includes results of the company's Blue Island Three months ended December 31, Year ended December 31,
refinery, which was closed in January 2001 ------------------------------- -----------------------
as follows: 2001 2000 2001 2000
---- ---- ---- ----
Total feedstocks - 63.1 4.3 68.2
Total production - 63.1 4.3 68.0
Sabine River Holding Corp. and Subsidiaries
Earnings Release
Three months ended Year ended
December 31, December 31,
----------------------- -------------------------
(dollars in millions, unaudited) 2001 2000 * 2001 2000 *
--------- --------- ----------- ---------
Operating revenues $ 376.4 $ 100.3 $ 1,882.4 $ 100.3
Cost of sales 322.6 83.6 1,460.2 83.6
--------- --------- ----------- ---------
Gross margin 53.8 16.7 422.2 16.7
Operating expenses 26.2 7.0 140.4 10.2
General and administrative expenses 1.1 0.5 4.1 1.1
--------- --------- ----------- ---------
EBITDA(1) 26.5 9.2 277.7 5.4
Depreciation 5.3 -- 20.5 --
--------- --------- ----------- ---------
Operating income 21.2 9.2 257.2 5.4
Interest expense and finance income, net (14.3) (0.9) (60.1) (3.2)
Income tax (provision) benefit (2.3) 4.1 (69.0) 4.1
--------- --------- ----------- ---------
Net income $ 4.6 $ 12.4 $ 128.1 $ 6.3
========= ========= =========== =========
(1) Earnings before interest, income taxes,
depreciation and amortization
Selected Volumetric and Per Barrel Data
Production (Mbbls per day) 217.0 40.0 197.8 10.1
Crude oil throughput (Mbbls per day) 203.7 35.6 186.0 8.9
Per barrel of throughput:
Gross margin $ 2.87 $ 5.11 $ 6.22 $ 5.11
Operating expenses $ 1.40 $ 2.13 $ 2.07 $ 3.10
Market Indicators (dollars per barrel)
West Texas Intermediate, or "WTI" (sweet) $ 20.32 $ 31.94 $ 25.96 $ 30.37
Crack Spreads (3/2/1):
Gulf Coast $ 1.95 $ 3.73 $ 4.22 $ 4.17
Crude Oil Differentials:
WTI less WTS (sour) $ 1.91 $ 2.79 $ 2.81 $ 2.17
WTI less Maya (heavy sour) $ 6.33 $ 9.68 $ 8.76 $ 7.29
WTI less Dated Brent (foreign) $ 0.87 $ 2.42 $ 1.48 $ 1.92
Natural Gas (per mmbtu) $ 2.17 $ 5.25 $ 4.22 $ 3.94
December 31, December 31,
Financial Position 2001 2000
------------ ------------
Cash and short-term investments $ 222.8 $ 36.4
Other working capital (120.8) (35.3)
Total assets 979.1 802.7
Long-term debt 463.0 542.6
Stockholders' equity 242.3 114.2
* Operations of the heavy oil facility commenced in early December of 2000.
Financial results in the pre-operating stage were related primarily to the
construction and financing of the facility.
Sabine River Holding Corp. and Subsidiaries
Earnings Release
Three months ended December 31,
----------------------------------------------
2001 2000
Selected Volumetric Data -------------------- --------------------
(in thousands of barrels per day) Barrels Percent Barrels Percent
------- ------- ------- -------
Feedstocks:
Crude oil:
Sweet - - - -
Light/medium sour 40.8 20% 14.6 41%
Heavy sour 162.9 80% 21.0 59%
------ ------- ------- -------
Total crude oil 203.7 100% 35.6 100%
====== ======= ======= =======
Production:
Intermediate throughput produced for PRG 196.9 91% 35.0 88%
Petroleum coke and sulfur 20.1 9% 5.0 12%
------ ------- ------- -------
Total production 217.0 100% 40.0 100%
====== ======= ======= =======
Year ended December 31,
----------------------------------------------
2001 2000
Selected Volumetric Data -------------------- --------------------
(in thousands of barrels per day) Barrels Percent Barrels Percent
------- ------- ------- -------
Feedstocks:
Crude oil:
Sweet - - - -
Light/medium sour 38.0 20% 3.6 40%
Heavy sour 148.0 80% 5.3 60%
------ ------- ------- -------
Total crude oil 186.0 100% 8.9 100%
====== ======= ======= =======
Production:
Intermediate throughput produced for PRG 180.0 91% 8.8 87%
Petroleum coke and sulfur 17.8 9% 1.3 13%
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Total production 197.8 100% 10.1 100%
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