Alon USA Partners sees Q2 crude throughput of ~39K barrels/day


Alon USA Partners (ALDW) says crude throughput at its Big Spring refinery in Texas has been ~73K bbl/day since completion of the turnaround and the vacuum tower project.

The vacuum tower project increased distillate recovery by 2K bbl/day, which allows the refinery to increase utilization of various process units.

Total throughput for Q2 was ~39K bbl/day, with Q3 throughput expected at ~74K bbl/day and Q4 throughput seen at 75K bbl/day.

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Comments (7)
  • mooseye
    , contributor
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    I was wondering if the lack of performance in aldw might be due to the fact that most people may not know that Alon has a captive audience. The broad market should not affect their operations as much as a general refinery. I understand that they do hedge their raw materials as well, so spikes should not have a physical effect either. I know it may be down now due to speculation concerning the turnaround this quarter, but that was reported to be covered by designated reserve funds.
    I think they are about to get leveled back out and start to increase the output and the distribution. It may be low this quarter due to the low throughput during the turnaround, but look for an increase in the next few quarters. I wish I had some cash to get in while it is down.
    8 Jul 2014, 06:20 PM Reply Like
  • 244
    , contributor
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    I sold 1,600 units last week at $ 18.20. Today I purchased 200 units at $ 17.10. Wish I had purchased more. Like everyone else I knew it was just a matter of time before throughput was restored. I even expected it to be finished in the second quarter but could not be sure. I just did not expect ALDW to announce it until the August 6th earning release. I was expecting the unit price to continue on a downward trend until then. I was really hoping to pick up a bunch of units nearer to $ 16.00. As often as refineries have accidents, with only one refinery ALDW is always going to be a risky investment. I will buy some units at this price. Just wish I could have gotten more for less.
    8 Jul 2014, 06:43 PM Reply Like
  • mooseye
    , contributor
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    Risky and relatively young, but thats what is making it a cash machine. That and just the life time dist. %tile is very high. Even if the dist. drops significantly, the % will still be competitive.
    8 Jul 2014, 06:52 PM Reply Like
  • 244
    , contributor
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    I'm with you mooseye, this is no trust with an expiration date. This is an MLP that goes on and on. At some point they may buy another refinery or merge with another creating more value and less risk. I would really like to see ALDW merge with CVRR. The more refineries the safer the distributions. But I see the value in ALDW as it is and will pick up more units ASAP now that throughput is back up. Or should I say. Now that throughput has increased by roughly four percent above where it was before the their refinery accident.
    8 Jul 2014, 07:04 PM Reply Like
  • mooseye
    , contributor
    Comments (73) | Send Message
     
    I don't look for any mergers. Some one might buy the whole shebang, but the captive audience thing would play a part in any M/A. I would think that would have to involve alj.
    It is internet stock market players too. No telling what bit of world news could put them back to the mid twenties or higher. Or the other way?
    8 Jul 2014, 07:29 PM Reply Like
  • sonny.dinger78@gmail.com
    , contributor
    Comments (3) | Send Message
     
    Hi There,
    I am reading your comments which is interesting. But I am new in the stock market. I have stocks in A L D W, But , I buy and hold which is not what I want to do. I want to work the chart and make a few dollars a week or in a few days , but I haven't learned to work that way yet .I am still studying the chart and the info from Alpha .
    Thank you for listening.
    Sonny
    11 Jul 2014, 11:49 AM Reply Like
  • 244
    , contributor
    Comments (941) | Send Message
     
    sonny.dinger78@gmail.com ALDW will not have a good distribution until the 3rd quarter. Many may sit on the sidelines until then which means the unit price may not rise until then. Or may even continue to go down. On the other hand. Knowing that ALDW's throughput is fully recovered and then some. There is a chance the unit price could rise before then.

     

    I have purchased 1,200 additional units this week. I have a bid in for 200 more at $ 16.40. I almost changed the order to a market order when ALDW hit $ 16.53 this morning. Now that it has fully recovered I wish I did. In my opinion, if things do not change much from here. One year to one and a half years from now I expect ALDW to be somewhere in the $ 26.00-$ 30.00+ range.

     

    Of course, expecting things not to change is expecting a lot. But their distributions should rise quite a bit from where they were last quarter. The distribution should be very low if at all this quarter though. It will be interesting to see if it causes the unit price to drop or if people can see the future in their forward guidance and bid it up. Time will tell.
    11 Jul 2014, 01:24 PM Reply Like
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