This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Frontier Oil Reports Most Profitable First Quarter In Company History

Stocks in this article: FTO

May 5, 2011 – Frontier Oil Corporation (NYSE: FTO) today announced record first quarter results. For the quarter ended March 31, 2011, the Company earned net income of $139.9 million, or $1.32 per diluted share, compared to a net loss of $40.3 million, or $0.39 per share, for the quarter ended March 31, 2010. First quarter 2011 results benefited from an increase in refinery throughput and improvements in crude oil differentials and product margins, due largely to the growing crude oil inventories in Cushing, Oklahoma and surrounding areas.

Frontier’s average diesel crack spread increased to $25.53 per barrel in the first quarter of 2011, up from $7.41 per barrel in the same period of 2010, and the average gasoline crack spread improved to $15.43 per barrel in the most recent quarter, compared to $6.37 per barrel in the first quarter of 2010. The Company’s average light/heavy differential improved to $18.60 per barrel in the first quarter of 2011, compared to $4.91 per barrel in the same period of 2010. The WTI/WTS spread improved to an average $3.58 per barrel in the most recent quarter, from $1.77 per barrel in the first quarter of 2010.

Frontier’s total crude charges for the first quarter of 2011 averaged 175,796 barrels per day (“bpd”), up from 159,514 bpd in the first quarter of 2010, partially due to the improved economic incentive to maximize throughput during the most recent period. With these increases in throughput, Frontier’s combined refinery operating expenses, excluding depreciation, were reduced to $4.24 per barrel in the most recent quarter, compared to $4.44 per barrel in the first quarter of 2010.

Frontier’s Chairman, President and CEO, Mike Jennings, commented, “We are extremely pleased with our record quarterly results and with the strength of refining margins continuing into the second quarter. The product crack spreads are the best we have seen since our record results in 2007. In addition, Frontier’s results continue to benefit from midcontinent crude supply that exceeds takeaway capacity and from the ability to process a variable crude slate including large quantities of heavy and sour crudes. The average barrel of crude processed at our refineries in the first quarter priced more than $7 less than a WTI barrel and more than $20 less than a coastal light/sweet crude barrel such as Light Louisiana Sweet (LLS). While these crude differentials were historically unprecedented, we expect to continue to benefit from our close proximity to expanding crude production from the continued development of shale plays in the Rocky Mountains and midcontinent as well as growth from the Canadian oil sands.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,386.50 -292.20 -1.65%
S&P 500 2,042.99 -14.10 -0.69%
NASDAQ 4,698.2940 -73.4690 -1.54%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs