Frontier Oil Reports Record First Quarter Earnings
Apr 27, 2001, 01:00 ET from Frontier Oil Corporation
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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
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