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This excerpt taken from the MRO 10-Q filed Nov 7, 2007. RM&T
segment income decreased by $544 million, or 53 percent, and $189
million, or 8 percent, in the third quarter and first nine months of 2007
compared to the same periods of 2006.
Pretax income decreased $938 million and $432 million in the same
periods, while the effective income tax rate decreased from 39 percent to 35
percent in the third quarter and from 39 percent to 36 percent in the
nine-month period. The decreases in
RM&T pretax income in both periods are primarily the result of a lower
refining and wholesale marketing gross margin in the third quarter of
2007. The refining and wholesale
marketing gross margin averaged 17.17 cents per gallon in the third quarter of
2007 and 23.17 cents per gallon in the 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 most significant cause of this margin decline was that crude oil
prices increased significantly during the third quarter of 2007 while crude oil
prices fell substantially in the third quarter of 2006. Our cost of crude oil and other feedstocks
increased in the third quarter of 2007 compared to the comparable prior-year
quarter due to these higher crude prices, a narrowing of the difference in the
acquisition costs for sweet and sour crude oils and the effects of refining
more sweet crude oil. In addition, the
increase in our wholesale sales price realizations was less than the increase
in crude oil and other feedstock costs.
Our refining and wholesale marketing gross margin also included
derivative losses of $360 million in the third quarter of 2007 compared to
derivative gains of $384 million in the third quarter of 2006. The change in
the impact of derivatives primarily reflects the realized effects of closed
derivative positions, but also includes the unrealized effects of marking open
derivative positions to market. These derivatives have an underlying physical
commodity transaction; however, the income effect related to the derivatives
and the income effect related to the underlying physical transactions are not necessarily
recognized in segment income in the same period because we do not attempt to
qualify these commodity derivatives for hedge accounting.
23
Crude oil refined averaged 1,042 mbpd and 1,028 mbpd, during the third quarter and first nine months of 2007, 11 mbpd and 39 mbpd higher than the averages for the same periods of 2006.
This excerpt taken from the MRO 10-Q filed Aug 7, 2007. RM&T segment income increased
by $329 million, or 36 percent, and $355 million, or 29 percent, in the second
quarter and first six months of 2007 compared to the same periods of 2006. Pretax income increased $486 million and $506
million in the same periods, while the effective income tax rate decreased slightly
in both periods. The increases in RM&T pretax income are primarily a result
of improvement in the refining and wholesale marketing gross margin, which
averaged 39.25 cents per gallon in the second quarter of 2007 and 26.34 cents
per gallon in the first six months of 2007, compared to 29.78 cents per gallon
and 20.77 cents per gallon in the comparable periods of 2006. This margin improvement was consistent with
the relevant market indicators in the Midwest and Gulf Coast markets. Crude oil refined averaged 1,072 mbpd and
1,021 mbpd, during the second quarter and first six months of 2007, 34 mbpd and
53 mbpd higher than the averages for the same periods of 2006.
This excerpt taken from the MRO 10-Q filed May 7, 2007. RM&T segment income in the first quarter of 2007 increased $26 million,
or 8 percent, from the first quarter of 2006. Pretax income increased $20 million
and the effective income tax rate declined from 39 percent to 36 percent. The
increase in RM&T pretax income is primarily a result of increases in SSA’s
gasoline and distillates gross margin and merchandise gross margin. The SSA
gasoline and distillates gross margin averaged 12.17 cents per gallon in the
first quarter of 2007 compared to 10.55 cents per gallon in the first quarter
of 2006, while the merchandise gross margin grew to $160 million in the
first quarter of 2007 from $148 million in the first quarter of 2006.
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