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

Western Refining Announces Fourth Quarter And Full Year 2012 Results

Stocks in this article: WNR

(2) Total refinery throughput includes crude oil, other feedstocks, and blendstocks.

(3) Refinery gross margin is a per barrel measurement calculated by dividing the difference between net sales and cost of products sold by our refineries' total throughput volumes for the respective periods presented. Net realized and net non-cash unrealized economic hedging gains and losses included in the combined refining segment gross margin are not allocated to the individual refineries. Cost of products sold does not include any depreciation or amortization. Refinery gross margin is a non-GAAP performance measure that we believe is important to investors in evaluating our refinery performance as a general indication of the amount above our cost of products that we are able to sell refined products. Each of the components used in this calculation (net sales and cost of products sold) can be reconciled directly to our statement of operations. Our calculation of refinery gross margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure.

The following table reconciles combined gross profit for all refineries to combined gross margin for all refineries for the periods presented:

  Three Months Ended Year Ended
  December 31, December 31,
  2012 2011 2012 2011
    (In thousands, except per barrel data)
Net sales (including intersegment sales) $1,923,146 $2,151,333 $8,340,178 $8,399,698
Cost of products sold (exclusive of depreciation and amortization) 1,446,878 1,594,655 7,133,308 7,059,210
Depreciation and amortization 20,747 26,424 77,575 119,057
Gross profit 455,521 530,254 1,129,295 1,221,431
Plus depreciation and amortization 20,747 26,424 77,575 119,057
Refinery gross margin $476,268 $556,678 $1,206,870 $1,340,488
Refinery gross margin per refinery throughput barrel (4) $34.00 $41.83 $22.01 $25.82
Gross profit per refinery throughput barrel (4) $32.51 $39.85 $20.60 $23.52

The following table reconciles gross profit for our Southwest refineries to combined gross margin for our Southwest refineries for the periods presented:

  Three Months Ended Year Ended
  December 31, December 31,
  2012 2011 2012 2011
    (In thousands, except per barrel data)
Net sales (including intersegment sales) $1,923,146 $2,146,257 $8,339,492 $8,383,594
Cost of products sold (exclusive of depreciation and amortization) 1,446,723 1,590,158 7,137,486 7,048,140
Depreciation and amortization 20,747 18,966 77,575 76,254
Gross profit 455,676 537,133 1,124,431 1,259,200
Plus depreciation and amortization 20,747 18,966 77,575 76,254
Refinery gross margin $476,423 $556,099 $1,202,006 $1,335,454
Refinery gross margin per refinery throughput barrel (4) $34.01 $41.79 $21.92 $25.72
Gross profit per refinery throughput barrel (4) $32.53 $40.36 $20.51 $24.25
 
(4) Refinery direct operating expenses per throughput barrel is calculated by dividing direct operating expenses by total throughput volumes for the respective periods presented. Direct operating expenses do not include any depreciation or amortization.
 
(5) Cost of products sold for the combined refining segment includes the net realized and net non-cash unrealized hedging activity shown in the table below. The hedging gains and losses are also included in the combined gross profit and refinery gross margin but are not included in those measures for the individual refineries.
     
  Three Months Ended Year Ended
  December 31, December 31,
  2012 2011 2012 2011
  (In thousands)
Realized hedging loss, net $(35,932) $(16,445) $(120,805) $(78,995)
Unrealized hedging gain (loss), net 81,519 299,266 (229,672) 182,343
Total hedging gain (loss), net $45,587 $282,821 $(350,477) $103,348
 
(6) The difference between the total refining financial data and our Southwest refining financial data represents the sale of refined products associated with the Yorktown operations. We sold 5,707 barrels of feedstocks during 2012 and 120,783 barrels during 2011.
       
       
Wholesale Segment      
  Three Months Ended Year Ended
  December 31, December 31,
  2012 2011 (3) 2012 2011 (3)
  (In thousands, except per gallon data)
Statement of Operations Data    
Net sales (including intersegment sales) $1,120,455 $1,200,003 $4,860,291 $4,753,790
Operating costs and expenses:    
Cost of products sold (exclusive of depreciation and amortization) 1,091,538 1,182,818 4,748,077 4,645,851
Direct operating expenses (exclusive of depreciation and amortization) 15,176 16,599 67,491 65,829
Selling, general, and administrative expenses 2,800 3,185 10,407 11,177
Gain on disposal of assets, net (509)
Depreciation and amortization 988 1,055 3,814 4,312
Total operating costs and expenses 1,110,502 1,203,657 4,829,280 4,727,169
Operating income (loss) $9,953 $(3,654) $31,011 $26,621
Operating Data        
Fuel gallons sold 356,183 401,306 1,520,581 1,543,173
Fuel gallons sold to retail 62,937 35,038 244,906 213,137
Average fuel sales price per gallon $3.28 $3.12 $3.32 $3.22
Average fuel cost per gallon 3.21 3.10 3.27 3.17
Fuel margin per gallon (1) 0.08 0.03 0.07 0.06
         
Lubricant gallons sold 2,811 2,726 11,492 10,823
Average lubricant sales price per gallon $11.11 $11.46 $11.15 $10.85
Average lubricant cost per gallon 10.06 10.30 10.05 9.60
Lubricant margin (2) 9.5% 10.1% 9.9% 11.5%
         
Realized hedging gain (loss) $— $(1,201) $(23,643) $2,962
Unrealized hedging gain (loss) (1,067) 943
     
  Three Months Ended Year Ended
  December 31, December 31,
  2012 2011 (3) 2012 2011 (3)
  (In thousands, except per gallon data)
Net Sales        
Fuel sales (including intersegment sales) $1,167,674 $1,251,983 $5,054,987 $4,971,199
Excise taxes included in fuel sales (85,861) (90,838) (355,957) (366,393)
Lubricant sales 31,232 31,236 128,171 117,478
Other sales (including intersegment sales) 7,410 7,622 33,090 31,506
Net sales $1,120,455 $1,200,003 $4,860,291 $4,753,790
Cost of Products Sold        
Fuel cost of products sold $1,144,503 $1,242,044 $4,970,965 $4,895,302
Excise taxes included in fuel cost of products sold (85,861) (90,838) (355,957) (366,393)
Lubricant cost of products sold 28,269 28,075 115,540 103,925
Other cost of products sold 4,627 3,537 17,529 13,017
Cost of products sold $1,091,538 $1,182,818 $4,748,077 $4,645,851
Fuel margin per gallon (1) $0.08 $0.03 $0.07 $0.06

(1) Fuel margin per gallon is a measurement calculated by dividing the difference between fuel sales and cost of fuel sales for our wholesale segment by the number of gallons sold. Fuel margin per gallon is a measure frequently used in the petroleum products wholesale industry to measure operating results related to fuel sales.

7 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • 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