Alon USA Announces Plans for New Inventory Arrangements for its California Refineries
DALLAS, Texas, Feb. 28, 2012 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) ("Alon" or "the Company") announced today that is has completed the repayment of its obligations under its Revolving Credit Facility with Bank of America. Alon also announced that it had entered into a Supply and Offtake Agreement with J. Aron & Company ("J. Aron"). This agreement provides for (i) J. Aron to sell to Paramount Petroleum Company (a subsidiary of the Company and operator of our California refineries) ("Paramount"), and Paramount to buy from J. Aron, at market price, crude oil for processing at the Company's California refineries and (ii) Paramount to sell, and J. Aron to buy, at market price, certain refined products produced at the Company's California refineries.
Paul Eisman, Alon's President and CEO commented, "We are excited by the prospects of a new supply and offtake arrangement for our California refineries. Our experience with these arrangements at our Big Spring and Krotz Springs refineries has been very positive because it provides a cost-effective and flexible structure with to supply our crude oil needs. We believe that securing this new arrangement is an important step towards ensuring the future success of our California refineries."
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company owns four crude oil refineries in Texas, California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 250,000 barrels per day. Alon is a leading producer of asphalt, which it markets through its asphalt terminals predominately in the Western United States. Alon is the largest 7-Eleven licensee in the United States and operates more than 300 convenience stores in Texas and New Mexico. Alon markets motor fuel products under the FINA brand at these locations and at approximately 610 distributor-serviced locations.
Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows. Additional information regarding these and other risks is contained in our filings with the Securities and Exchange Commission.
Contacts: |
Amir Barash, Vice President - IR |
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Alon USA Energy, Inc. |
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972-367-3808
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Investors: Jack Lascar/Sheila Stuewe |
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DRG&L / 713-529-6600 |
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Media: Blake Lewis |
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Lewis Public Relations |
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214-635-3020 |
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Ruth Sheetrit |
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SMG Public Relations |
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011-972-547-555551 |
SOURCE Alon USA Energy, Inc.
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