Frontier Oil Reports Record First Quarter Earnings

Apr 27, 2001, 01:00 ET from Frontier Oil Corporation

    HOUSTON, April 27 /PRNewswire/ -- Frontier Oil Corporation (NYSE:   FTO)
 announced record quarterly net income for the three months ended
 March 31, 2001 of $4.5 million, or $0.17 per share, which is $10.6 million
 better than the net loss of $6.1 million, or $0.22 per share, for the same
 period of 2000.  The analysts' consensus estimate for the first quarter, $0.28
 per share, does not take into account the impact of FIFO inventory accounting
 used by Frontier.  In the first quarter of 2001, the FIFO inventory impact on
 the Company's earnings was a negative $6.9 million, or $0.25 per share,
 bringing the results on a basis comparable to analysts' expectations to $0.42
 per share.
     The record first quarter results can be attributed to higher than normal
 crack spreads on the Company's major refined products, gasoline and diesel,
 and widening of the light/heavy crude oil differentials despite reduced sales
 due to a planned major turnaround at El Dorado and in the face of
 significantly higher energy costs at both refineries.  The light/heavy spread
 at Cheyenne increased to $8.20 per barrel for first quarter 2001 from $3.88
 for first quarter 2000.  The WTI/WTS spread at El Dorado for first quarter
 2001 was $3.73 per barrel compared to $1.70 for the same period 2000.  The
 resulting strong product margins were slightly offset by higher operating
 expenses in the quarter caused by a more than 125% increase in the price of
 natural gas compared to a year ago.  Sales volumes were down approximately 11%
 compared to the first quarter of 2000, chiefly due to the turnaround
 activities at the El Dorado Refinery.
     "I am pleased we could report such a strong quarter despite the impact of
 the planned major turnaround at El Dorado which took ten units off line during
 the last two weeks of March.  Since the successful completion of the
 turnaround in mid-April and with strong operations at both our refineries, we
 are looking forward to a robust season," said Mr. James Gibbs, Frontier's
 Chairman, President and Chief Executive Officer.  He continued, "Based on the
 market conditions we have experienced through April, we estimate that our
 second quarter results will significantly exceed not only analysts'
 expectations, but also last year's record quarterly earnings of $1.13 per
 share."
     Cash flow before changes in working capital was $11.0 million, or $0.41
 per share, for the first quarter 2001 compared to $300,000, or $0.01 per
 share, for the same period 2000.  Despite a heavy use of working capital in
 the recent quarter, also due to the turnaround that started in mid-March, the
 Company continued its reduction of long-term debt by repurchasing $4.25
 million (face amount) of its senior notes during the quarter, and purchased
 372,200 shares of its common stock in the open market under its previously
 announced share repurchase program.
     Frontier operates a 110,000 barrel-per-day refinery located in El Dorado,
 Kansas, and a 41,000 barrel-per-day 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.
     The primary purpose of this news release is to present the results of the
 quarter just ended.  This news release may include forward-looking statements
 concerning the Company.  These may include statements of plans or objectives
 for future operations, statements about future economic performance or
 assumptions or estimates.  The accuracy of these forward-looking statements is
 subject to a wide range of business risks and changes in circumstances that
 are described in our reports that are filed from time to time with the
 Securities and Exchange Commission.  Actual results and outcomes often differ
 from expectations.
 
                              FRONTIER OIL CORPORATION
 
                                                         Three Months Ended
                                                               March 31,
                                                         2001           2000
 
     INCOME STATEMENT DATA* ($000's except per share)
     Revenues                                          $431,143       $449,699
     Refining operating costs                           409,578        439,636
     Selling and general expenses                         3,327          2,583
     Operating income before depreciation (EBITDA)       18,238          7,480
     Depreciation                                         6,080          5,669
     Operating income                                    12,158          1,811
     Interest expense, net                                7,187          8,252
     Provision for income taxes                             459           (359)
     Net income (loss)                                   $4,512        $(6,082)
     Net income per diluted share
       (loss per basic share)                             $0.17         $(0.22)
     Diluted average shares outstanding (000's)          27,038         27,398
 
     OTHER FINANCIAL DATA ($000's)
     Cash flow before changes in working capital        $11,002           $302
     Working capital changes                            (44,576)        (1,166)
     Net cash provided (used) by operating activities   (33,574)          (864)
     Net cash provided (used) by investing activities    (4,407)        (1,887)
     Net cash provided (used) by financing activities    17,069         (2,411)
 
     BALANCE SHEET DATA ($000's)
     Cash, including cash equivalents                   $43,534        $33,183
     Working capital                                     42,583         19,612
     Short-term and current debt                         47,000         23,000
     Total long-term debt                               235,372        257,324
     Shareholders' equity                                83,255         45,241
 
     OPERATIONS
     Cheyenne Refinery
     Operations (bpd)
         Total charges                                   36,441         41,123
         Gasoline yields                                 15,313         17,612
         Diesel yields                                   11,778         12,052
         Total sales                                     36,497         42,036
 
     Operating Margins ($ per bbl)
         Revenues                                        $34.53         $29.93
         Raw material, freight and other costs            26.87          25.98
         Refined product margin                            7.66           3.95
         Operating costs excluding depreciation            4.17           2.97
         Margin before depreciation                        3.49           0.98
         Depreciation                                      1.01           0.79
         Net margin                                       $2.48          $0.19
     Light/Heavy crude spread ($ per bbl)                 $8.20          $3.88
 
 
                                                          Three Months Ended
                                                               March 31,
                                                          2001          2000
 
     El Dorado Refinery
     Operations (bpd)
          Total charges                                 110,191        115,121
          Gasoline yields                                53,888         62,289
          Diesel and jet fuel yields                     36,469         38,492
          Total sales                                   102,272        113,626
 
     Operating Margins ($ per bbl)
          Revenues                                       $34.30         $32.40
          Raw material, freight and other costs           29.33          29.15
          Refined product margin                           4.97           3.25
          Operating costs excluding depreciation           4.10           2.66
          Margin before depreciation                       0.87           0.59
          Depreciation                                     0.29           0.25
          Net margin                                      $0.58          $0.34
 
          KEY TERMS: bpd = barrels per day; bbl = barrel
 
          *  Frontier uses the FIFO method of inventory valuation.
 
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SOURCE Frontier Oil Corporation
    HOUSTON, April 27 /PRNewswire/ -- Frontier Oil Corporation (NYSE:   FTO)
 announced record quarterly net income for the three months ended
 March 31, 2001 of $4.5 million, or $0.17 per share, which is $10.6 million
 better than the net loss of $6.1 million, or $0.22 per share, for the same
 period of 2000.  The analysts' consensus estimate for the first quarter, $0.28
 per share, does not take into account the impact of FIFO inventory accounting
 used by Frontier.  In the first quarter of 2001, the FIFO inventory impact on
 the Company's earnings was a negative $6.9 million, or $0.25 per share,
 bringing the results on a basis comparable to analysts' expectations to $0.42
 per share.
     The record first quarter results can be attributed to higher than normal
 crack spreads on the Company's major refined products, gasoline and diesel,
 and widening of the light/heavy crude oil differentials despite reduced sales
 due to a planned major turnaround at El Dorado and in the face of
 significantly higher energy costs at both refineries.  The light/heavy spread
 at Cheyenne increased to $8.20 per barrel for first quarter 2001 from $3.88
 for first quarter 2000.  The WTI/WTS spread at El Dorado for first quarter
 2001 was $3.73 per barrel compared to $1.70 for the same period 2000.  The
 resulting strong product margins were slightly offset by higher operating
 expenses in the quarter caused by a more than 125% increase in the price of
 natural gas compared to a year ago.  Sales volumes were down approximately 11%
 compared to the first quarter of 2000, chiefly due to the turnaround
 activities at the El Dorado Refinery.
     "I am pleased we could report such a strong quarter despite the impact of
 the planned major turnaround at El Dorado which took ten units off line during
 the last two weeks of March.  Since the successful completion of the
 turnaround in mid-April and with strong operations at both our refineries, we
 are looking forward to a robust season," said Mr. James Gibbs, Frontier's
 Chairman, President and Chief Executive Officer.  He continued, "Based on the
 market conditions we have experienced through April, we estimate that our
 second quarter results will significantly exceed not only analysts'
 expectations, but also last year's record quarterly earnings of $1.13 per
 share."
     Cash flow before changes in working capital was $11.0 million, or $0.41
 per share, for the first quarter 2001 compared to $300,000, or $0.01 per
 share, for the same period 2000.  Despite a heavy use of working capital in
 the recent quarter, also due to the turnaround that started in mid-March, the
 Company continued its reduction of long-term debt by repurchasing $4.25
 million (face amount) of its senior notes during the quarter, and purchased
 372,200 shares of its common stock in the open market under its previously
 announced share repurchase program.
     Frontier operates a 110,000 barrel-per-day refinery located in El Dorado,
 Kansas, and a 41,000 barrel-per-day 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.
     The primary purpose of this news release is to present the results of the
 quarter just ended.  This news release may include forward-looking statements
 concerning the Company.  These may include statements of plans or objectives
 for future operations, statements about future economic performance or
 assumptions or estimates.  The accuracy of these forward-looking statements is
 subject to a wide range of business risks and changes in circumstances that
 are described in our reports that are filed from time to time with the
 Securities and Exchange Commission.  Actual results and outcomes often differ
 from expectations.
 
                              FRONTIER OIL CORPORATION
 
                                                         Three Months Ended
                                                               March 31,
                                                         2001           2000
 
     INCOME STATEMENT DATA* ($000's except per share)
     Revenues                                          $431,143       $449,699
     Refining operating costs                           409,578        439,636
     Selling and general expenses                         3,327          2,583
     Operating income before depreciation (EBITDA)       18,238          7,480
     Depreciation                                         6,080          5,669
     Operating income                                    12,158          1,811
     Interest expense, net                                7,187          8,252
     Provision for income taxes                             459           (359)
     Net income (loss)                                   $4,512        $(6,082)
     Net income per diluted share
       (loss per basic share)                             $0.17         $(0.22)
     Diluted average shares outstanding (000's)          27,038         27,398
 
     OTHER FINANCIAL DATA ($000's)
     Cash flow before changes in working capital        $11,002           $302
     Working capital changes                            (44,576)        (1,166)
     Net cash provided (used) by operating activities   (33,574)          (864)
     Net cash provided (used) by investing activities    (4,407)        (1,887)
     Net cash provided (used) by financing activities    17,069         (2,411)
 
     BALANCE SHEET DATA ($000's)
     Cash, including cash equivalents                   $43,534        $33,183
     Working capital                                     42,583         19,612
     Short-term and current debt                         47,000         23,000
     Total long-term debt                               235,372        257,324
     Shareholders' equity                                83,255         45,241
 
     OPERATIONS
     Cheyenne Refinery
     Operations (bpd)
         Total charges                                   36,441         41,123
         Gasoline yields                                 15,313         17,612
         Diesel yields                                   11,778         12,052
         Total sales                                     36,497         42,036
 
     Operating Margins ($ per bbl)
         Revenues                                        $34.53         $29.93
         Raw material, freight and other costs            26.87          25.98
         Refined product margin                            7.66           3.95
         Operating costs excluding depreciation            4.17           2.97
         Margin before depreciation                        3.49           0.98
         Depreciation                                      1.01           0.79
         Net margin                                       $2.48          $0.19
     Light/Heavy crude spread ($ per bbl)                 $8.20          $3.88
 
 
                                                          Three Months Ended
                                                               March 31,
                                                          2001          2000
 
     El Dorado Refinery
     Operations (bpd)
          Total charges                                 110,191        115,121
          Gasoline yields                                53,888         62,289
          Diesel and jet fuel yields                     36,469         38,492
          Total sales                                   102,272        113,626
 
     Operating Margins ($ per bbl)
          Revenues                                       $34.30         $32.40
          Raw material, freight and other costs           29.33          29.15
          Refined product margin                           4.97           3.25
          Operating costs excluding depreciation           4.10           2.66
          Margin before depreciation                       0.87           0.59
          Depreciation                                     0.29           0.25
          Net margin                                      $0.58          $0.34
 
          KEY TERMS: bpd = barrels per day; bbl = barrel
 
          *  Frontier uses the FIFO method of inventory valuation.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32026966
 
 SOURCE  Frontier Oil Corporation