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This excerpt taken from the MRO 10-Q filed Nov 7, 2007. Refining, Marketing and Transportation (“RM&T”)
Crude oil throughput was one percent and four percent higher in the third quarter and first nine months of 2007 compared to the same periods in 2006 and we expect crude oil throughput for the full year 2007 to exceed the record level we set in 2006. Our total refinery throughput was down slightly in the third quarter of 2007 compared to the same period of 2006 primarily as a result of planned turnarounds underway at the end of the third quarter of 2007 at our
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Catlettsburg, Kentucky and St. Paul Park, Minnesota refineries. Total refinery throughput for the first nine months of 2007 was two percent higher than the same period of 2006. Our refining and wholesale marketing gross margin averaged 17.17 cents per gallon and 23.17 cents per gallon in the third quarter and first nine months of 2007 compared to 32.71 cents per gallon and 24.78 cents per gallon in the comparable periods of 2006. The declines in both periods are primarily due to crude oil prices, which increased significantly during the third quarter of 2007 while falling substantially during the third quarter of 2006. For example, the average Light Louisiana Sweet crude oil price increased over $6 per barrel in the third quarter of 2007 compared to a decline of $12 per barrel in the same quarter of 2006. Favorably impacting our refining and wholesale marketing gross margin per gallon for the first nine months of 2007 was the change in accounting for matching buy/sell arrangements effective April 1, 2006, as the sales volumes recognized in the first nine months of 2007 were less than the volumes that would have been recognized under previous accounting practices. Our ethanol blending program increased to 41 thousand barrels per day (“mbpd”) in the third quarter of 2007 from 36 mbpd in the third quarter of 2006. The future expansion or contraction of our ethanol blending program will be driven by the economics of the ethanol supply and government regulations.
Speedway SuperAmerica LLC (“SSA”) increased same store merchandise sales three percent and same store gasoline sales volumes two percent when compared to the third quarter of 2006. SSA’s merchandise gross margin was higher while the gasoline and distillates gross margin per gallon was lower in the third quarter and first nine months of 2007 than in the comparable periods of 2006.
Construction of the Garyville, Louisiana refinery expansion continues on schedule. Site preparation, piling and initial foundation work is progressing to support process unit construction over the next two years.
In October 2007, we approved a projected $1.9 billion heavy oil upgrading and expansion project at our Detroit, Michigan refinery. This project will enable the refinery to process additional heavy, sour crude oils, including Canadian bitumen blends, and will increase its crude oil refining capacity by about 15 percent. The project is subject to obtaining necessary environmental permits and is expected to be completed in late 2010.
Also in October 2007, we acquired a 35 percent interest in an entity which owns and operates a 110-million-gallon-per-year ethanol plant in Clymers, Indiana. The plant began production in May 2007. With this acquisition, we further enhance our strategic ethanol production partnership with The Andersons, Inc. by participating in two facilities, including the Greenville, Ohio plant that is under construction and on target to be operational in the first quarter of 2008.
We have also continued our investment in supply and transportation infrastructure, including the October 2007 agreement to purchase four terminals in Ohio and an ownership interest in a pipeline. The purchase will increase our flexibility in supplying transportation fuels to the Midwest. The transaction is expected to close by the end of the first quarter of 2008, pending completion of various pre-closing activities.
The above discussion includes forward-looking statements with respect to projections of crude oil throughput and ethanol blending that could be affected by planned and unplanned refinery maintenance projects, the levels of refining and wholesale marketing gross margin, other operating considerations and government regulations. The above discussion also contains forward-looking information with respect to the Garyville and Detroit refinery expansion projects and the operational date of an ethanol production facility. Factors that could affect those projects include transportation logistics, availability of materials and labor, unforeseen hazards such as weather conditions, necessary government and third-party approvals, and other risks customarily associated with construction projects. The purchase of four terminals and an interest in a pipeline is subject to customary closing conditions and may be affected by the inability or delay in obtaining necessary regulatory approvals and other operating and economic considerations. These factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements.
This excerpt taken from the MRO 8-K filed Sep 7, 2007. Refining, Marketing and Transportation ("RM&T") In the first quarter of 2007, our total refinery throughput was four percent higher than the same quarter of 2006 and we expect refinery crude oil throughput during 2007 to exceed the record level we set in 2006. Our refining and wholesale marketing gross margin per gallon was higher in the first quarter of 2007 than the comparable period of 2006, however, the increase was primarily the result of the change in accounting for matching buy/sell arrangements effective April 1, 2006, as the sales volumes recognized during the first quarter of 2007 were less than the volumes that would have been recognized under previous accounting practices. Our refining and wholesale marketing gross margin averaged 12.46 cents per gallon in the first quarter of 2007 versus 11.37 cents per gallon in the first quarter of 2006. Our ethanol blending program increased to 37 thousand barrels per day ("mbpd") in the first quarter of 2007 from 30 mbpd in the first quarter of 2006. The future expansion or contraction of our ethanol blending program will be driven by the economics of the ethanol supply and changes in government regulations. Speedway SuperAmerica LLC ("SSA") increased same store merchandise sales by six percent and same store gasoline sales volume by three percent when compared to the first quarter of 2006. In addition, SSA's gasoline and distillates gross margin per gallon and merchandise gross margin were stronger in the first quarter of 2007. Construction of the Garyville refinery expansion commenced on schedule in early March 2007, including site clearing and preparation activities. The above discussion includes forward-looking statements with respect to projections of crude oil throughput and ethanol blending that could be affected by planned and unplanned refinery maintenance projects, the levels of refining margins and other operating considerations. These factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. This excerpt taken from the MRO 10-Q filed Aug 7, 2007. Refining, Marketing and Transportation (“RM&T”) In the second quarter and first six months of 2007, our total refinery throughput was three percent and four percent higher than the same periods of 2006. Crude oil throughput was three percent and five percent higher in these periods and we expect crude oil throughput for the full year 2007 to exceed the record level we set in 2006. Our refining and wholesale marketing gross margin averaged 39.25 cents per gallon in the second quarter of 2007 compared to 29.78 cents per gallon in the second quarter of 2006. This margin improvement was consistent with the relevant market indicators in the Midwest and Gulf Coast markets. The increase in our refining and wholesale marketing gross margin for the first six months of 2007 was also impacted by the change in accounting for matching buy/sell arrangements effective April 1, 2006, as the sales volumes recognized in the first six months of 2007 were less than the volumes that would have been recognized under previous accounting practices. Our ethanol blending program increased to 40 thousand barrels per day (“mbpd”) in the second quarter of 2007 from 35 mbpd in the second quarter of 2006. The future expansion or contraction of our ethanol blending program will be driven by the economics of the ethanol supply and government regulations. Speedway SuperAmerica LLC (“SSA”) increased same store merchandise sales three percent and same store gasoline sales volumes one percent when compared to the second quarter of 2006. In addition SSA’s gasoline and distillates gross margin per gallon and merchandise gross margin were stronger in the second quarter and first six months of 2007 than in the comparable periods of 2006. Construction of the Garyville, Louisiana, refinery commenced on schedule in early March 2007. Construction crews are clearing the site and driving piles that will be used to support the foundation for the equipment that will be constructed at this site over the next two years. The above discussion includes forward-looking statements with respect to projections of crude oil throughput and ethanol blending that could be affected by planned and unplanned refinery maintenance projects, the levels of refining margins, other operating considerations and government regulations. The above discussion also contains forward- 16 looking information with respect to the Garyville expansion project. Factors that could affect that project include crude oil supply, transportation logistics, availability of material and labor, unforeseen hazards such as weather conditions, necessary government and third party approvals, and other risks customarily associated with construction projects. These factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. This excerpt taken from the MRO 10-Q filed May 7, 2007. Refining, Marketing and Transportation (“RM&T”) In the first quarter of 2007, our total refinery throughput was four percent higher than the same quarter of 2006 and we expect refinery crude oil throughput during 2007 to exceed the record level we set in 2006. Our refining and wholesale marketing gross margin per gallon was higher in the first quarter of 2007 than the comparable period of 2006, however, the increase was primarily the result of the change in accounting for matching buy/sell arrangements effective April 1, 2006, as the sales volumes recognized during the first quarter of 2007 were less than the volumes that would have been recognized under previous accounting practices. Our refining and wholesale marketing gross margin averaged 12.46 cents per gallon in the first quarter of 2007 versus 11.37 cents per gallon in the first quarter of 2006. Our ethanol blending program increased to 37 thousand barrels per day (“mbpd”) in the first quarter of 2007 from 30 mbpd in the first quarter of 2006. The future expansion or contraction of our ethanol blending program will be driven by the economics of the ethanol supply and changes in government regulations. Speedway SuperAmerica LLC (“SSA”) increased same store merchandise sales by six percent and same store gasoline sales volume by three percent when compared to the first quarter of 2006. In addition, SSA’s gasoline and distillates gross margin per gallon and merchandise gross margin were stronger in the first quarter of 2007. Construction of the Garyville refinery expansion commenced on schedule in early March 2007, including site clearing and preparation activities. The above discussion includes forward-looking statements with respect to projections of crude oil throughput and ethanol blending that could be affected by planned and unplanned refinery maintenance projects, the levels of refining margins and other operating considerations. These factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. | EXCERPTS ON THIS PAGE:
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