June 2009 -- Frontier Oil reported net income of $73.5 million, or 70 cents per diluted share, for the first quarter of 2009, compared with net income of $46 million, or 44 cents per diluted share, for the first quarter of 2008. The first-quarter 2009 results include an after-tax inventory gain of $21.3 million, or 20 cents per diluted share, and an after-tax hedging gain of $13.8 million, or 13 cents per diluted share.
"Our first-quarter financial performance provided a strong start in what we expect to be a challenging year for the refining sector." Frontier President and CEO Mike Jennings said. "Gasoline demand appears to have stabilized or marginally improved, while distillate consumption continues to weaken with the economy. We are hopeful that the U.S. driving season will provide a seasonal boost, but we do not foresee significant improvement in demand or product margins without an accompanying U.S. economic recovery."
During the first quarter, Frontier generated $102.8 million in cash flow before changes in working capital, while investing approximately $32.7 million in capital expenditures and reducing working capital by $85.4 million. Frontier's cash balance at March 31 was $631.7 million, up from $483.5 million at Dec. 31, 2008, and exceeded debt by $284.4 million as of March 31.
