Alon USA

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Alon USA Energy Inc.
Type Public
Traded as NYSEALJ
Industry Oil & Gas Refining & Marketing
Predecessor(s) Fina
Founded August 2000
Headquarters Corporate headquarters in Dallas, Texas, United States
Key people David Wiessman, (Chairman)
Paul Eisman, (CEO)
Shai Even, (CFO)
Products Fuels, Petrochemicals
Revenue IncreaseUS$8.02 Billion (FY 2012)[1]
Operating income IncreaseUS$269.50 Million (FY 2012)[1]
Net income IncreaseUS$79.13 Million (FY 2012)[1]
Total assets DecreaseUS$2.22 Billion (FY 2012)[2]
Total equity IncreaseUS$584.71 Million (FY 2012)[2]
Employees 2,821
Website www.alonusa.com

Alon USA Energy Inc. is headquartered in Dallas, Texas and engages in refining and marketing petroleum products primarily in the southwestern and south central regions of the United States. Alon USA was formed after Alon Oil Company Ltd, purchased over 1,700 FINA retail stations, an oil refinery, pipelines and terminals in the US from Total S.A..

The Refining and Marketing segment refines crude oil into petroleum products, including gasoline, diesel fuel, jet fuel, petrochemicals, asphalt, and other products. The segment primarily markets its gasoline and diesel under the FINA brand name at approximately 1,250 locations. Alon USA's integrated system includes a crude oil pipeline system operating via throughput agreements with outside parties and totaling approximately 500 miles (800 km). The segments product pipeline and terminal network consisted of 7 product pipelines totaling approximately 840 miles (1,350 km) and 6 product terminals. The Retail segment operates more than 200 convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brands.

Expansion[edit]

Alon USA announced it would buy Paramount Petroleum Corp. for $307 million cash, and assume $100 million in debt. The deal closed in August 2006.

Alon USA also plans to buy the assets of Edgington Oil Co. for $52 million cash, a deal delayed in closing due to an FTC request for further information.

Among Paramount's assets are a 54,000 barrels per day (8,600 m3/d) refinery in Paramount, California, and seven asphalt terminals. Edgington is a topping refinery located in Long Beach, California with a listed capacity of about 40,000 barrels per day (6,400 m3/d).

In July 2006 Alon USA closed on the transaction to purchase 40 convenience stores from Good Time Stores. They are in the process of converting these stores to the FINA and 7-Eleven brands.

In March 2007 Alon USA announced that it would purchase Abilene Based Skinny's convenience stores for 70 million dollars.

In May 2008 Valero announced they had sold the 85,000 BPD Krotz Springs, Louisiana refinery to Alon USA for $433 million.

On June 2nd, 2010 Alon announced that it has completed the acquisition of the Bakersfield, California refinery from Big West of California, LLC, a subsidiary of Flying J Inc. The purchase price of the Bakersfield transaction, including substantially all of the assets of Big West, consists of $40 million in cash. The Company also acquired the Bakersfield refinery's existing inventory as of the closing date of the transaction. The Bakersfield refinery is located in California's Central Valley and has the capacity to refine up to 70,000 barrels per day of crude oil. The refinery is supplied by crude oil produced in the San Joaquin Valley with its products marketed in California, and is a major provider of motor fuels in central California.

Refinery explosion[edit]

On February 18, 2008, an explosion occurred at an oil refinery in Big Spring, Texas owned by Alon USA. The plant employs about 170 employees and has a capacity of 70,000 barrels (11,000 m3) of oil a day. This event has caused portions of Interstate 20 to be shut down. Initial reports state that four workers were injured.[3] In addition to the four workers, a passing motorist on Interstate 20 sustained an injury when debris struck her vehicle, according to local reports.[4] According to a press release by the company on February 19, the explosion occurred in the area around the propylene splitter unit, although the cause has not yet been determined.[5] Information on the company's website states that ALON USA acquired ownership of the Big Spring, Texas refinery in August 2000, when ALON Israel Oil Company Ltd. purchased the U.S. fuels marketing and refining assets of Atofina Petrochemicals, Inc. (FINA). The refinery has been in service for more than 75 years, and produces fuel products and asphalt for the southwestern United States. It was constructed in 1928 by the original owner, Joshua Cosden.

References[edit]

  1. ^ a b c Alon USA Energy (ALJ) annual SEC income statement filing via Wikinvest.
  2. ^ a b Alon USA Energy (ALJ) annual SEC balance sheet filing via Wikinvest.
  3. ^ "West Texas Refinery Explodes". Associated Press. 18 February 2008. 
  4. ^ "Miracle on I-20: 5 injured in huge explosion". Big Spring Herald. 19 February. 
  5. ^ "Alon USA Provides Additional Information Regarding the Explosion at the Big Spring Refinery". Alon USA. 18 February 2008. 

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