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Alon USA Overview Investor Presentation January 2013 Forward -Looking Statements All statements contained in or made in connection with this presentation that are not statements of historical fact are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 or the Securities Exchange Act of 1934. The words “believe”, “intend”, “plan”, “expect”, “should”, “estimate”, “anticipate”, “potential”, “future”, “will” and similar terms and phrases identify forward-looking statements. Forward-looking statements reflect the current expectations of the management of Alon USA Energy, Inc. (“Alon”) regarding future events, results or outcomes. These expectations may or may not be realized and actual results could differ materially from those projected in forward-looking statements. Alon’s businesses and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in the expectations reflected in forward-looking statements not being realized or which may otherwise affect Alon’s financial condition, results of operations and cash flows. These risks and uncertainties include, among other things, changes in price or demand for our products; changes in the availability or cost of crude oil and other feedstocks; changes in market conditions; actions by governments, competitors, suppliers and customers; operating hazards, natural disasters or other disruptions at our or third-party facilities; and the costs and effects of compliance with current and future state and federal regulations. For more information concerning factors that could cause actual results to differ from those expressed in forward-looking statements, see Alon’s Form 10-Q for the quarter ended September 30, 2012 which has been filed with the Securities and Exchange Commission and is available on the company’s web site at http://www.alonusa.com. Alon undertakes no obligation to update or publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation or to reflect the occurrence of unanticipated events. - 2 - 2 Table of Contents I. Business Overview II. Financial Summary Appendix: Additional Materials - 3 - 3 I. Business Overview Overview of Alon Energy Alon Energy conducts its operations through five business units: Big Spring Refining & Wholesale Fuels Marketing (“Alon USA Partners, LP”), Krotz Springs Refining (“Krotz Springs”), California Refining (“California”), Asphalt Marketing (“Asphalt”), and Retail. ALJ is the general partner and owns 82% of the Alon USA Partners, LP The Company generated $334 million of Adjusted EBITDA 1 for the LTM period ended September 30, 2012 and expects to generate approximately $430 million of Adjusted EBITDA for calendar year 2012 Includes the Big Spring refinery (TX) with a throughput capacity of 70,000 bpd Alon USA Partners, Includes the wholesale fuels marketing business which is integrated through the Big Spring refinery system LP Markets gasoline and diesel to ~630 sites under the ALON brand, including Alon Brands stores Krotz Springs Includes the Krotz Springs (LA) refinery with a throughput capacity of 83,100 bpd Includes the Paramount, Long Beach and Bakersfield refineries with a total nameplate capacity of 90,000 bpd California and a current configuration throughput of 57,000 bpd Owns and operates 11 asphalt terminals in the western U.S. Operations include: — 50% ownership in Paramount Nevada Asphalt Company, and Asphalt — 50% ownership in Wright Asphalt Largest supplier of asphalt in California Second largest supplier of asphalt in Texas Largest 7-Eleven licensee in the U.S. with 300 retail gasoline / convenience stores in Central and West Texas Retail and New Mexico (~50% fee owned) 5 1 See page 30 for a reconciliation of Adjusted EBITDA to Net Income under GAAP. - 5 - Business Strategy Operational Focus Commercial Focus Maintain focus on safety and reliability Optimize crude slate to take advantage of regional Run Big Spring at maximum capacity pricing dislocations Run Krotz Springs at maximum capacity Optimize refined product slate to take advantage of (using 30,000 bpd of WTI) to leverage recent distillate production capacity and strong margin Refining¹ capital improvements environment Improve crude flexibility in our CA refineries Maintain capital discipline and continued via the ability to receive advantaged crude by investments in high return projects rail Enhance branded wholesale business Maintain operating expense leadership Optimize asphalt production and 3 rd party Focus in maintaining our market share in premium, purchases specialty asphalts products (Emulsions, Polymer Leverage existing distribution network Modified Asphalts (“PMA”) and Ground Tire Rubber Asphalt (“GTR”) blends) Optimize 0-Pen shipments to the West Coast Continue improvement of operations through Expand and grow the retail locations in target Clean TEAM efforts: remodel interior and markets exterior retail sites and selectively increase Optimize pricing Retail store count Increase fuels sold under ALON brand Increase sales of high margin food products and inventory turns 1 Refining includes Big Spring, Krotz Springs and the California complex. - 6 - 6 Alon USA Strategic Advantages Strategically Located Refineries with Advantageous Sources of Crude Supply Significant Exposure to High Margin Distillates Physically Integrated Retail and Wholesale Network Diversified Operations Provide Stability High Quality Assets with Low Operating Costs Leading Blended and Modified Asphalt Producer Strong Liquidity Position and Flexibility provided by Supply & Off-take Agreements at each refinery Experienced Management Team - 7 - 7 Strategically Located Assets Refinery Richmond Beach Washington Exchange Terminal Portland Alon USA Terminal Willbridge Third -Party Terminal Oregon Asphalt Terminal Wright JV Asphalt Terminal Alon Pipelines Alon Pipeline (unfinished) Nevada Third Party Pipelines Key Retail Cities Fernley Elk Grove California Mojave Bakersfield Paramount/ Arizona Bloomfield Oklahoma Long Beach New Mexico Tulsa Flagstaff Phoenix Moriarty Albuquerque Arkansas Duncan Lubbock Wichita Falls Tucson Louisiana DFW El Paso Abilene Krotz Springs Big Spring Orla Midland / Odessa Houston Empire Texas Nederland South Marsh Loop Corpus Christi Island 1 California Refineries include the Bakersfield, Long Beach and Paramount refineries with a nameplate- 8 - capacity of 90,000 bpd and a 8 current configuration capacity of 57,000 bpd. Diversified Operations Provide Stability Three separate refinery complexes provide asset and geographic diversification Five business units (Big Spring and wholesale fuels marketing, Krotz Springs refining, California refining, asphalt marketing and retail) provide business diversification — Regional differences in Alon’s refining base (Louisiana, Texas and California) provide diversification during price dislocations — Asphalt business is typically counter-cyclical to refining environment — Retail business provides steady and predictable cash flows LTM 9/30/2012 Gross Margin by LTM 9/30/2012 Production by Refinery Business Unit Total Gross margin: Total Production: $821mm 155Mbpd Retail, 15.4% California, 14.5% Asphalt, 6.2% Big Spring, 44.4% California, - 0.3% $821mm 155Mbpd Krotz Springs, Big Spring, Krotz Springs, 13.2% 65.4% 41.1% - 9 - 9 Significant Exposure to High Margin Distillates Favorable exposure to distillates, which continue to see strong margins and are expected to remain well above gasoline margins for the near and medium-term The forward markets currently indicate USGC diesel prices ~$14.00/bbl over USGC gasoline prices for the next twelve months Alon Distillate Yield % vs. Peers Historical and Forward Diesel and Gasoline Cracks (Based on WTI) $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 $(10.00) Historical USGC Gasoline Crack Spread Forward USGC Gasoline Crack Spread Avg. Forward USGC Gasoline Crack Spread Historical USGC ULSD Crack Spread Forward USGC ULSD Crack Spread Avg. Forward USGC USLD Crack Spread Source: Platts, Argus, NYMEX, Goldman Sachs and Credit Suisse. As of October 9, 2012. 1 Peer Group SEC filings for LTM period ended June 30, 2012 (peer group comprises of CVR Energy, Delek, HollyFrontier, Tesoro, Valero, and Western Refining). Peer Group also includes PBF as of twelve months ended December 31, 2012. Big Spring and Krotz Springs from ALJ SEC filings for LTM period ended June 30, 2012. California refining’s yield assumes 62,500 bpd throughput running light crudes sources from either mid-con basins or locally from the Monterey producing at current configuration of 44% distillate yield. - 10 - 10 Crude Differentials Beginning in 2011, WTI related crudes have shown a substantial divergence from historical trends and differentials for LLS and Buena Vista crudes are significantly greater than any time in past 5 years. 5 Year Average¹--$72.31 5 Year Average --$75.83 5 Year Average --$71.50 5 Year Average --$77.30 2011 ---$93.01 2011 ---$95.07 2011 ---$108.43 2011 ---$110.98 YTD 2012³---$92.08 YTD 2012 ---$96.17 YTD 2012 ---$110.14 YTD 2012 ---$111.81 West Texas Buena Vista Louisiana Light Sweet West Texas Sour ("WTS") Intermediate ("WTI") ("BV") ("LLS") WTI - WTS WTI - BV LLS - WTI 5 Year Average --$3.52 5 Year Average --$4.33 5 Year Average --$1.47 2011 ---$2.06 2011 ---$(13.36) 2011 ---$16.76 YTD 2012 ---$4.09 YTD 2012 ---$(13.97) YTD 2012 ---$15.25 GC321
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