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Alon USA Inc Apr 05
Standard & Poors, April 2005
Abstract
Local refiner and marketer in physically remote niche markets; Refinery complexity (9.4 Nelson complexity factor) provides production flexibility; and Dominant player in regional asphalt and jet fuel markets. Highly leveraged; Small single refiner, with 65,000 barrels per day throughput capacity; Modest liquidity; High capital intensity and significant earnings volatility; and Possible Longhorn pipeline extension to increase competition. The ratings on Alon USA Inc. reflect the significant challenges the company faces as a small, independent petroleum refiner and marketer with high book leverage and modest liquidity, participating in a competitive, erratically profitable industry that is burdened by excess capacity and high fixed-cost requirements for refinery equipment and regulation compliance. These weaknesses are partially offset by the company's significant advantage as a...
Companies mentioned in this report are: Alon USA Energy Inc.,BP PLC,Williams Cos. Inc. (The),ExxonMobil Corp.,Holly Energy Partners L.P.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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