June 2007 -- Alon USA Energy Inc. is a refiner and marketer of petroleum products, operating primarily in the Southwestern and Western regions of the United States. Alon owns and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with crude oil throughput capacity of approximately 170,000 barrels per day. Alon markets gasoline and diesel products under the FINA brand name and is also a producer of asphalt. Alon also operates more than 200 convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery.
In March 2007, Alon acquired Skinny's Inc., a privately held company that owns and operates 102 FINA-branded stores in Central and West Texas, for approximately $70 million. At the time, Jeff Morris, president and CEO of Alon, said, "This acquisition builds on our strategic objective of expanding the physical integration of our Big Spring refinery with our retail outlets via Southwest Convenience Stores. Furthermore, the addition of 102 stores to our current retail operations will strengthen our leadership position as the largest 7-Eleven licensee in the United States."
Fiscal 2006 was a very good year for Alon, as the company reported its most profitable annual results ever. Net income for the year was $138.5 million, compared to $80.1 million for 2005. Net sales for 2006 were $3.2 billion, compared to $2.3 billion in 2005. Those positive trends continued into 2007, as Alon reported record net income of $35.0 million for the first quarter, compared with $24.1 million for the same quarter the previous year. Net sales for first-quarter 2007 were $965.5 million, compared with $584.7 million in first-quarter 2006.
