This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Western Refining's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: WNR

This debt reduction will lower our cash interest expense by approximately $54 million annually, compared to a year ago. We are pleased with the debt reduction we’ve achieved and we believe the improvements we have made in the balance sheet have made Western a much stronger company.

Another key component of our plan is our crack spread hedging activity. Given the strong forward margin environment during the quarter we added to our 2013 and 2014 crack spread hedges, and also put on crack spread hedges for 2015. A summary of our hedge positions as of June 30th can be found on slide five.

We also continue to invest in our business with approximately 40% of our 2012 capital budget dedicated to discretionary projects. Our major initiatives, which include the Delaware Basin Logistic projects and refinery expansions continue to progress on time and on budget.

In addition, we continue to evaluate other projects that will enable us to capitalize on the growing crude production in our region, allowing us to further enhance the value of our assets.

For the second quarter, we generated $365.9 million in adjusted EBITDA. This performance was due to our excellent operations and continued strong refining margins. These margins continue to be driven by the wide Brent/WTI spreads and strong refined product values in our region.

In addition, El Paso refinery benefited from the WTI Midland/Cushing differential, which averaged $4.48 per barrel during the quarter, compared to $0.40 per barrel in Q2 2011.

Our wholesale business performed well in the quarter with significantly higher operating income driven by increased fuel margins, and improved fuel and loop volumes compared to Q2 2011.

In our Retail business we added 11 locations during the quarter by leasing an existing network of stores in Northern New Mexico bringing our total count to 222 stores. This addition is consistent with our strategy to opportunistically grow retail in order to secure a long term outlet for our refinery production.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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