Alon USA Energy, Inc. (NYSE: ALJ) (“Alon”) announced that the Reformer Unit at the Company’s Krotz Springs refinery (“KSR”) resumed production activity today after being shut-down for unplanned repairs since late April 2013. As a result of these repairs, the Company estimates higher KSR operating expenses (net of expected insurance proceeds) of approximately $0.40 per barrel for the second quarter of 2013.
The Company also expects to incur a one-time cost that will reduce the KSR operating margin per barrel for the second quarter of 2013 by approximately $2.50 per barrel.
Throughput guidance at KSR for the second quarter of 2013 is 60,000 barrels per day (“bpd”) and 66,000 bpd for the year. During the second quarter of 2013, KSR expects to process 30,000 bpd of WTI crude.
Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company directly owns crude oil refineries in California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 144,000 barrels per day.
