For the three months ended March 31, 2009, Western generated cash flow from operations of $96.8 million. As of March 31, 2009, there were no cash borrowings outstanding under the company's revolving credit facility, and since that date, the company has not made any cash borrowings.
Paul Foster, Western's CEO, said, "We are pleased with our first quarter results. This was one of the most profitable first quarters in the history of our company. Our earnings growth reflects the operational improvements we have made as well as strong refining margins in January and February."
He added, "We are taking a number of actions to continue this momentum. In addition to raising sour crude throughput, the recent startup of our gasoline hydrotreater unit at the El Paso refinery also gives us the capability to increase our production of Phoenix grade gasoline from approximately 12,000 barrels per day to in excess of 20,000 barrels per day. Historically, Phoenix has been one of our best markets in terms of both product demand and gross margin. In the past year, we have significantly improved our refining operations. The improvements we made have positioned us to process a wide range of crude oils and intermediate feedstocks at our refineries. This flexibility should contribute to continued earnings and cash flow growth in the future."
Commenting on current market conditions, Foster said, "As we begin the spring and summer driving season, we are cautiously optimistic in our outlook for margins as a result of inventory draws, increased gasoline demand, and continued low refinery utilization rates. In our southwest market, several refineries will be undergoing major maintenance turnarounds in the second quarter."
Western Refining is an independent refining and marketing company headquartered in El Paso, Texas. Western has a refinery in El Paso, two refineries in the Four Corners region of northern New Mexico and a refinery in Yorktown, Va. Western's asset portfolio also includes refined products terminals in Albuquerque, N.M., and Flagstaff, Ariz., retail gas stations and convenience stores in Arizona, Colorado and New Mexico, a fleet of crude oil and finished product truck transports and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas and Utah.
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