DALLAS -- Coming off the best quarterly and annual results in the company's history, with deep pockets flushed with cash, and with a tax incentive to spend it, there is strong reason to believe Dallas-based refiner/marketer Alon USA Energy Inc. will make some retail or other acquisitions to announce this spring.
Growthremains a primary focus for us, president and CEO Jeff Morris said during the company's fourth-quarter conference call. We are evaluating and developing some opportunities at this time. Although I don't have anything to announce today, [image-nocss] I can tell you we are working hard on some things we have identified.
The company, owners of the 160-store Southwest Convenience Stores LLC chain, also has a tax incentive following it sale last month of its Amdel and White Oil pipelines to an affiliate of Sunoco Logistics Partners LP for $68 million.
We have escrowed the $68 million we received from that transaction, such that we can use that money if we have the opportunity in a like-kind exchange transaction [for other real property], said Morris. To use a like-kind exchange for tax purposes, we need to identify and close a transaction within the next 180 days, and we're hopeful that we will do that.
This cash comes on top of more than $200 million the company has in the bank following its initial public offering of stock last year. There's several different operators in our region [West Texas and New Mexico] with periodic opportunities [to make a purchase], Morris said. We're working on items not only in retail, but in asphalt and other areas. I think we've progressed on our growth opportunities.
Regarding Alon USA's quarterly results, Morris announced record net income of $29.7 million for the fourth quarter 2005, compared to net income of $2.2 million for the fourth quarter 2004, an increase of $27.5 million. Fourth-quarter 2005 earnings per share were 64 cents, compared to six cents for fourth-quarter 2004. Earnings per share for the fourth quarter and year ended Dec. 31, 2005, include the effect of the additional 11.7 million shares of common stock issued in our initial public offering on Aug. 2, 2005.
Net income for fourth-quarter 2005 included $800,000 of after-tax gain recognized on disposition of assets relating to the contribution of certain pipeline and terminal assets to Holly Energy Partners LP in first-quarter 2005. Net income for fourth-quarter 2005 excluding the effects of the after-tax gain would have been a record $28.9 million, or 62 cents earnings per share.
Net income for the year ended Dec. 31, 2005, was a record $104 million, compared to net income of $25.1 million for the year ended December 31, 2004, an increase of $78.9 million. Year-end 2005 earnings per share were $2.61, compared to 72 cents for 2004.
The increase in net income for fourth-quarter 2005 over fourth-quarter 2004 was primarily attributable to continued strong industry refining margins in fourth-quarter 2005 and increased refinery production as a result of the expansion of the Big Spring refinery's crude oil throughput capacity and the major turnaround completed in first-quarter 2005.
The increase in net income for the year ended Dec. 31, 2005, over the year ended Dec. 31, 2004, was primarily attributable to the higher refining margin environment, favorable differentials between WTI and WTS crude oil and increased overall refinery production as a result of the crude oil capacity expansion and the major turnaround completed in first-quarter 2005.
We are very pleased with our fourth-quarter and full-year-2005 results, Morris said. Not only was the margin environment exceptional, but we also reaped rewards from our sour crude processing capabilities and our successful expansion project. We set new records for our financial results, but I am most pleased with our cash-flow performance. For the year, we generated over $102 million of free cash flow from operations, or almost $4.35 per barrel. This is truly extraordinary.
Alon USA Energy is an independent refiner and marketer of petroleum products, operating primarily in the Southwest and South Central regions of the United States. The company owns and operates a refinery in Big Spring, Texas, which has a crude-oil throughput capacity of 70,000 barrels per day, and it is a major producer of asphalt in Texas. Alon USA markets gasoline and diesel products under the FINA brand name. The company also operates 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.
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