Alon USA Energy Comments on EPA's Proposed Tier III Standards

Apr 08, 2013, 06:00 ET from Alon USA Energy, Inc.

DALLAS, April 8, 2013 /PRNewswire/ -- Alon USA Energy, Inc. (NYSE: ALJ) (the "Company") is providing its current assessment of the Environmental Protection Agency's recently proposed pollution standards for fuels, referred to as the Tier III fuel standards.  On March 29, 2013, the EPA published its proposed Tier III fuel standards which require, among other things, a reduction in the sulfur content of gasoline to a level of no more than 10 parts per million ("ppm") on an annual average basis.

The Company believes that its Krotz Springs, Louisiana refinery and the Big Spring, Texas refinery, which is owned and operated by Alon USA Partners, LP ("Alon Partners"), will be required to comply with the proposed Tier III fuel standards no later than 2020.  The Company estimates that the capital investment associated with upgrades necessary to meet the proposed sulfur levels, on a consolidated basis with Alon Partners, will be less than $30 million.  Increased operating costs associated with the incremental desulfurization processes are not expected to be material to the Company's performance.  The Company's California refineries are currently capable of producing fuels that satisfy the 10 ppm sulfur standard proposed by the EPA.

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 directly owns crude oil refineries in California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 180,000 barrels per day. Alon also owns 100% of the general partner and approximately 82% of the limited partner interests in Alon USA Partners, LP (NYSE: ALDW), which owns a crude oil refinery in Texas with an aggregate crude oil throughput capacity of approximately 70,000 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 approximately 300 convenience stores in Texas and New Mexico.

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.


Amir Barash, Vice President - IR

Alon USA Energy, Inc.


Investors: Jack Lascar/Sheila Stuewe

Dennard-Lascar & Assoc.


Media: Blake Lewis

Lewis Public Relations


Ruth Sheetrit

SMG Public Relations


SOURCE Alon USA Energy, Inc.