Frontier Oil Reports Most Profitable First Quarter In Company History

For the three months ended March 31, 2011, Frontier generated $180.8 million in cash flow from operations, invested $16.2 million in capital expenditures and paid $35.9 million in dividends. As of March 31, 2011, the Company’s cash balance of $685.4 million reflected an increase of $126.7 million compared to December 31, 2010 and exceeded long-term debt by $337.5 million. In addition, there were no cash borrowings under the Company’s $500.0 million revolving credit facility, which had $200.4 million of borrowing base availability.

Conference Call

A conference call is scheduled for today, May 5, 2011 at 10:00 a.m. central time, to discuss the financial results. To access the call, which is open to the public, please dial [phone] several minutes prior to the call (international callers [phone]), passcode 29497899. A recorded replay of the call may be heard through May 19, 2011 by dialing [phone] (international callers [phone]), passcode 29497899. In addition, the real-time conference call and a recorded replay will be available via webcast by registering from the Investor Relations page of our website www.frontieroil.com.

Frontier operates a 135,000 bpd refinery located in El Dorado, Kansas, and a 52,000 bpd refinery located in Cheyenne, Wyoming, and markets its refined products principally along the eastern slope of the Rocky Mountains and in other neighboring plains states. Information about the Company may be found on its website at www.frontieroil.com .

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements are those concerning strategic plans, expectations and objectives for future operations. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

FRONTIER OIL CORPORATION
		Three Months Ended
		March 31,
			2011				2010
INCOME STATEMENT DATA ($000s except per share)
Revenues		$	1,908,654			$	1,272,144
Raw material, freight and other costs			1,561,403				1,223,764
Refining operating expenses, excluding depreciation (1)			75,807				68,883
Selling and general expenses, excluding depreciation			10,603				10,976
Holly Corporation merger costs			5,148				-
Gain on sale of assets			(21	)			(1	)
Operating income (loss) before depreciation			255,714				(31,478	)
Depreciation, amortization and accretion (1)			26,968				26,609
Operating income (loss)			228,746				(58,087	)
Interest expense and other financing costs			8,634				7,235
Interest and investment income			(347	)			(527	)
Provision (benefit) for income taxes			80,593				(24,531	)
Net income (loss)		$	139,866			$	(40,264	)
Diluted (basic) earnings (loss) per share of common stock		$	1.32			$	(0.39	)
Average shares outstanding (000s)			105,765				103,934
OTHER FINANCIAL DATA ($000s)
Adjusted EBITDA (2)		$	255,714			$	(31,478	)
Cash flow before changes in working capital (3)			184,838				(37,178	)
Working capital changes			(4,006	)			89,422
Net cash provided by operating activities			180,832				52,244
Net cash used by investing activities			(16,188	)			(22,514	)
Net cash used by financing activities			(37,910	)			(8,329	)
OPERATIONS
Consolidated
Operations (bpd)
Total charges			192,272				172,308
Gasoline yields			96,544				82,963
Diesel yields			71,810				66,094
Total sales			198,432				172,431
Refinery operating margins information ($ per bbl)
Refined products revenue		$	107.27			$	82.16
Raw material, freight and other costs			87.43				78.86
Refinery operating expenses, excluding depreciation (1)			4.24				4.44
Depreciation, amortization and accretion (1)			1.50				1.71
Cheyenne Refinery average laid-in crude oil differential ($ per bbl)		$	14.27			$	2.60
Cheyenne Refinery average light/heavy crude oil differential ($ per bbl)			21.43				6.46
Average WTI/WTS differential ($ per bbl)			3.58				1.77
El Dorado Refinery average laid-in crude oil differential ($ per bbl)			4.95				1.59
El Dorado Refinery average light/heavy crude oil differential ($ per bbl)			16.59				3.95
BALANCE SHEET DATA ($000s)		March 31, 2011				December 31, 2010
Cash, including cash equivalents (a)		$	685,375			$	558,641
Working capital			653,454				543,433
Short-term and current debt (b)			-				-
Total long-term debt (c)			347,849				347,773
Shareholders' equity (d)			1,091,359				986,547
Net debt to book capitalization (b+c-a)/(b+c-a+d)			-44.8	%			-27.2	%

(1) Prior period amounts are adjusted to reflect current year presentation of turnaround and catalyst amortization as depreciation, amortization, and accretion instead of refinery operating expense.

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