HOUSTON, Nov. 7 /PRNewswire-FirstCall/ -- Frontier Oil Corporation
(NYSE: FTO) today announced quarterly net income of $120.9 million, or
$1.08 per diluted share for the quarter ended September 30, 2006, compared
to net income of $109.2 million or $0.95 per diluted share, for the quarter
ended September 30, 2005. For the nine months ended September 30, 2006,
Frontier reported net income of $321.8 million, or $2.85 per diluted share,
compared to net income of $209.6 million, or $1.85 per diluted share, for
the nine months ended September 30, 2005.
Frontier's ability to process heavy and sour crude oil continues to
provide a significant advantage compared to light/sweet crude oil
refineries. The Cheyenne light/heavy crude oil differential averaged $16.30
per barrel for the quarter ended September 30, 2006 compared to $14.93 for
the same quarter of 2005. Similarly, the WTI/WTS spread increased to $4.69
per barrel for the recent quarter compared to $3.13 per barrel for the
third quarter of 2005. The diesel crack spread remained strong throughout
the quarter, averaging $26.21 per barrel for the quarter ended September
30, 2006 compared to $18.38 per barrel for the same quarter of 2005.
Frontier's gasoline crack spread was outstanding during July and August but
weakened significantly in September. Notwithstanding the tightening in
September, the gasoline crack spread averaged $18.38 for the three months
ended September 30, 2006 compared to $18.11 for the three months ended
September 30, 2005.
Frontier's total charges for the third quarter of 2006 averaged 175,907
barrels per day (bpd), slightly below the average 176,566 bpd the Company
charged in the third quarter of 2005. The most recent quarter's total
charge rate represents the second highest charge rate in Company history.
Frontier's Chairman, President and CEO, James Gibbs, commented, "We are
pleased with the continued strength and profitability of our business.
Although we have seen a seasonal reduction in gasoline margins, diesel
remains strong and our crude oil differentials are excellent. We are
excited about the capital projects we recently announced and are committed
to delivering these projects on time and on budget. These projects
represent much higher return opportunities than other growth opportunities
currently available to us. As always, we are focused on creating value and
returning it to our shareholders as efficiently as possible."
For the three months ending September 30, 2006, Frontier generated
$141.1 million in cash before changes in working capital, while investing
approximately $26.3 million in capital expenditures and repurchasing
approximately 1.7 million shares of its common stock. Frontier's cash
balance of $396.5 million exceeded debt by $246.5 million as of September
30, 2006. There were no borrowings under the Company's revolving credit
facility. For the nine months ended September 30, 2006, Frontier generated
$382.6 million in cash before changes in working capital, while investing
$93.6 million in capital expenditures and $85.4 million in share
repurchases (3.2 million shares). Subsequent to the end of the third
quarter 2006, Frontier repurchased an additional 354,000 shares, completing
the $100 million share repurchase that was announced in December of 2005.
The third quarter 2006 results include an after-tax inventory loss of
approximately $15.7 million or $0.14 per diluted share, compared to a gain
of $25.4 million, or $0.22 per diluted share, for the third quarter of
2005. The nine months ended September 30, 2006 include an after-tax
inventory gain of approximately $7.9 million or $0.07 per diluted share
compared to a gain of $43.7 million, or $0.39 per diluted share for the
same period in 2005.
Conference Call
A conference call is scheduled for today, November 7, 2006, at 11:00
a.m. eastern time, to discuss the financial results. To access the call,
please dial (866) 564-7444. For those individuals outside the United
States, please call (719) 234-0008. A recorded replay of the call may be
heard through November 21, 2006 by dialing (888) 203-1112 (international
callers (719) 457- 0820) and entering the code 1393846. In addition, the
real-time conference call and a recorded replay will be webcast by PR
Newswire. To access the call or the replay via the Internet, go to
http://www.frontieroil.com and register from the Investor Relations page of
the site.
Frontier operates a 110,000 bpd refinery located in El Dorado, Kansas,
and a 52,000 bpd 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. Information about the Company may
be found on its web site http://www.frontieroil.com .
This press release includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those
concerning strategic plans, expectations and objectives for future
operations. All statements, other than statements of historical fact,
included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may
occur in the future are forward- looking statements. These statements are
based on certain assumptions made by the Company based on its experience
and perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of the
Company. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking
statements.
FRONTIER OIL CORPORATION
Nine Months Ended Three Months Ended
September 30 September 30
2006 2005 2006 2005
INCOME STATEMENT DATA
($000's except per share)
Revenues $3,708,694 $2,850,850 $1,381,135 $1,185,930
Raw material, freight and
other costs 2,939,309 2,282,546 1,110,214 931,495
Refining operating
expenses, excluding
depreciation 211,703 173,877 68,188 58,702
Selling and general
expenses, excluding
depreciation 36,823 25,118 15,094 8,677
Merger termination and
legal costs --- 47 --- 10
Operating income before
depreciation 520,859 369,262 187,639 187,046
Depreciation, accretion
and amortization 30,046 26,661 11,138 9,796
Operating income 490,813 342,601 176,501 177,250
Interest expense and other
financing costs 8,898 8,335 3,616 2,359
Interest and investment
income (12,393) (3,864) (5,937) (2,137)
Provision for income taxes 172,462 128,548 57,938 67,843
Net income $321,846 $209,582 $120,884 $109,185
Net income per diluted
share $2.85 $1.85 $1.08 $0.95
Average shares outstanding
(000's) 113,025 113,398 112,324 114,606
OTHER FINANCIAL DATA
($000's)
EBITDA (1) $520,859 $369,262 $187,639 $187,046
Cash flow before changes
in working capital 382,576 287,366 141,070 141,851
Working capital changes (99,163) (47,625) (19,714) (1,274)
Net cash provided (used)
by operating activities 283,413 239,741 121,356 140,577
Net cash provided (used)
by investing activities (101,110) (78,532) (26,309) (20,157)
OPERATIONS
Consolidated
Operations (bpd)
Total charges 171,215 166,249 175,907 176,566
Gasoline yields 80,877 80,449 79,298 85,827
Diesel yields 56,575 54,216 62,137 55,409
Total sales 171,073 166,656 174,803 177,196
Refinery operating margins
information ($ per bbl)
Refined products revenue $78.87 $62.69 $84.63 $72.85
Raw material, freight
and other costs 62.94 50.17 69.04 57.14
Refinery operating
expenses, excluding
depreciation 4.53 3.82 4.24 3.60
Depreciation,
accretion and amortization 0.64 0.58 0.69 0.60
Cheyenne Refinery
Light/Heavy crude oil
differential ($ per bbl) $16.82 $14.39 $16.30 $14.93
WTI/WTS Differential
($ per bbl) 5.34 4.16 4.69 3.13
El Dorado Refinery
Light/Heavy crude oil
differential ($ per bbl) 19.91 n/a 12.83 n/a
BALANCE SHEET DATA
($000's) At September 30, 2006 At December 31, 2005
Cash, including cash
equivalents (a) $396,455 $356,065
Working capital 458,093 262,264
Short-term and current
debt (b) --- ---
Total long-term debt (c) 150,000 150,000
Shareholders' equity (d) 691,254 445,059
Net debt to book
capitalization
(b+c-a)/(b+c-a+d) -55.4% -86.2%
(1) EBITDA represents income before interest expense and other financing
costs, interest and investment income, income tax, and depreciation,
accretion and amortization. EBITDA is not a calculation based upon
generally accepted accounting principles; however, the amounts
included in the EBITDA calculation are derived from amounts included
in the consolidated financial statements of the Company. EBITDA
should not be considered as an alternative to net income or operating
income, as an indication of operating performance of the Company or
as an alternative to operating cash flow as a measure of liquidity.
EBITDA is not necessarily comparable to similarly titled measures of
other companies. EBITDA is presented here because the Company
believes it enhances an investor's understanding of Frontier's
ability to satisfy principal and interest obligations with respect to
Frontier's indebtedness and to use cash for other purposes, including
capital expenditures. EBITDA is also used for internal analysis and
as a basis for financial covenants. Frontier's EBITDA for the nine
months and three months ended September 30, 2006 and 2005 is
reconciled to net income as follows:
Nine Months Ended Three Months Ended
September 30 September 30
2006 2005 2006 2005
Net income $321,846 $209,582 $120,884 $109,185
Add provision for income taxes 172,462 128,548 57,938 67,843
Add interest expense and other
financing costs 8,898 8,335 3,616 2,359
Subtract interest and investment
income (12,393) (3,864) (5,937) (2,137)
Add depreciation, accretion and
amortization 30,046 26,661 11,138 9,796
EBITDA $520,859 $369,262 $187,639 $187,046
SOURCE Frontier Oil Corporation
 back to top
Related links:
http://www.frontieroil.com
CONTACT:
Doug Aron of Frontier Oil Corporation,
+1-713-688-9600, ext. 145
|
