DALLAS -- Alon USA Energy Inc. has reported record net income of $54.2 million for first-quarter 2006, compared to net income of $22.4 million for first-quarter 2005, an increase of $31.8 million. First-quarter 2006 earnings per share were $1.16, compared to $0.64 for first-quarter 2005.
Net income for first-quarter 2006 included $34.3 million of after-tax gain recognized on disposition of assets relating primarily to the sale of the company's inactive Amdel and White Oil Crude Oil pipelines to an affiliate of Sunoco Logistics Partners LP, and $4.2 million [image-nocss] of after-tax interest expense resulting from the prepayment of Alon's $100 million term loan facility.
The increase in net income for first-quarter 2006 over first-quarter 2005 was primarily attributable to stronger industry refining margins, wider WTI/WTS differentials and increased refinery production resulting from the refinery throughput expansion and major turnaround completed in first-quarter 2005. Refinery production increased to an average of 69,603 barrels per day (bpd) during first-quarter 2006, compared to an average of 47,060 bpd during first-quarter 2005.
Alon's cash, cash equivalents and short-term investments totaled $254.8 million at March 31, 2006, after the prepayment of Alon's $100 million term loan and the payment of $19.2 million of dividends in first-quarter 2006. Total debt was reduced by $100.5 million to $31.9 million at March 31, 2006, compared to $132.4 million at Dec. 31, 2005. At March 31, 2006, Alon's cash, cash equivalents and short-term investments exceeded debt by $222.9 million.
Jeff Morris, Alon's president and CEO, said, On May 1, 2006, we announced our intended acquisition of Paramount Petroleum Corp. and the assets of Edgington Oil Co. These two transactions will more than double our refining capacity, improve our risk profile as a single refiner and allow us to expand into higher value-added asphalt business. In addition, our previously announced pending acquisition of up to 55 Good Time Stores in El Paso, Texas, will allow us to expand our retail segment presence in the El Paso market to over 100 stores, further enhancing our physically integrated system.
Alon USA Energy, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the southwestern and south central regions of the United States. It owns and operates a refinery in Big Spring, Texas. Alon markets gasoline and diesel products under the FINA brand. The company also operates convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brands and supplies motor fuels to these stores from the Big Spring refinery.
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