April  2014  Investor  Presenta4on  

All  statements  contained  in  or  made  in  connec/on  with  this  presenta/on  that  are  not  statements  of  historical  fact  are  forward-­‐looking  statements  intended  to  be  covered  by  the  safe  harbor  provisions  of  the  Securi/es  Act  of  1933  or   the  Securi/es  Exchange  Act  of  1934.     The  words   “believe”,   “intend”,   “plan”,   “expect”,   “should”,  “es/mate”,   “an/cipate”,   “poten/al”,   “future”,   “will”   and   similar   terms  and  phrases   iden/fy   forward-­‐looking  statements.       Forward-­‐looking   statements   reflect   the  current  expecta/ons  of   the  management  of  Alon  USA  Energy,   Inc.   (“Alon”)   regarding   future   events,   results   or   outcomes.     These   expecta/ons  may  or  may  not   be  realized  and  actual  results  could  differ  materially  from  those  projected  in  forward-­‐looking  statements.    Alon’s  businesses  and  opera/ons   involve  numerous  risks  and  uncertain/es,  many  of  which  are  beyond  our  control,  which  could  result  in  the  expecta/ons  reflected  in  forward-­‐looking  statements  not  being  realized  or  which  may  otherwise  affect  Alon’s  financial  condi/on,  results  of  opera/ons  and  cash  flows.    These  risks  and  uncertain/es  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  condi/ons;  ac/ons  by  governments,  compe/tors,  suppliers  and  customers;  opera/ng  hazards,  natural  disasters  or  other  disrup/ons  at  our  or  third-­‐party  facili/es;  and  the  costs  and  effects  of  compliance    with  current  and  future  state  and  federal  regula/ons.    For  more  informa/on  concerning   factors   that   could   cause   actual   results   to   differ   from   those   expressed   in   forward-­‐looking  statements,   see   Alon’s   Form   10-­‐K   for   the   year   ended   December   31,   2013   which   has   been   filed   with   the  Securi/es  and  Exchange  Commission  and  is  available  on  the  company’s  web  site  at  hXp://www.alonusa.com.    Alon  undertakes  no  obliga/on  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,  a[er  the  date  of  this  presenta/on  or  to  reflect  the  occurrence  of  unan/cipated  events.  

Forward-­‐Looking  Statements  

2  

Alon  USA  Energy  -­‐  Overview  

» $6.1  Billion  of  Revenue  in  2013  » $271  Million  of  Adjusted  EBITDA  in  20131  

» $162  Million  Opera/ng  Cash  Flow  in  2013  

» $388  Million  in  Net  Debt  as  of  December  31,  2013  » ~720  branded  independent  and  company-­‐owned  Alon  retail  loca/ons    

» Largest  licensee  of  7-­‐Eleven  in  the  U.S.,  opera/ng  nearly  300  convenience  stores  

» Largest  asphalt  supplier  in  California  and  second  largest  asphalt  supplier  in  Texas  

Alon  is  an  independent  refiner  and  marketer  of  petroleum  products  focused  on  growth   and   innova/on   to  meet   both   the   energy   and   environmental   needs   of  today,  opera/ng  primarily  in  the  western  and  south-­‐central  regions  of  the  U.S.  

1  See  page  32  for  a  reconcilia/on  of  Adjusted  EBITDA  to  Net  Income  under  GAAP.    3  

The  Energy  to  Innovate    

Refining  capacity  of  nearly  214,000  barrels  per  day,  producing  grades  of  clean-­‐burning  gasoline,  ultra-­‐low-­‐sulfur  diesel,  jet  fuel,  specialty  chemicals  and  advanced-­‐performance  asphalt  products  for  road  construc4on.    

One  of  the  largest  suppliers  of  high-­‐performance  asphalt  products  in  the  country,  opera4ng  an  integrated  network  of  asphalt  facili4es  from  Texas  to  the  West  Coast.  

Alon  supplies  motor  fuels  or  provides  services  to  more  than  900  independent  and  company-­‐owned  retail  loca4ons.  Alon  is  also  the  largest  licensee  of  7-­‐Eleven  in  the  U.S.,  opera4ng  nearly  300  convenience  stores  in  Central  and  West  Texas  and  New  Mexico.  

4  

California  

Arizona  

Texas  

Oklahoma  

Arkansas  

Louisiana  

Bakersfield  

Tucson  El Paso  

Nederland  

Duncan  

Abilene  Wichita Falls  

Big Spring  

Albuquerque  

Bloomfield  

Moriarty  

Midland / Odessa  

New  Mexico  

Nevada  

Oregon  

Washington  

Paramount/  Long Beach  

Richmond Beach  

Elk Grove  

Flagstaff  

Mojave  

Fernley  

Tulsa  

Corpus Christi  

Houston  

Krotz  Springs  

Lubbock  

DFW  

Phoenix  

Orla  

South Marsh Island   Loop  

Empire  

 Refinery  

Capacity  (bpd)  

Nelson  Complexity  

Big  Spring   70,000   10.5  

Krotz  Springs   74,000   8.3  

California   70,000   TBD  

Strategically  Located  Assets  

5  

Third-­‐Party  Terminal  

Asphalt  Terminal  

Refinery  

Key  Retail  Ci/es  

Exchange  Terminal  

Alon  Pipelines  

Third  Party  Pipelines    

Alon  USA  Terminal  

What  We  Have  Accomplished  So  Far  

» Strengthening  Balance  Sheet  ›  Reduced  net  debt  to  $388  million  at  year-­‐end  2013  from  over  $1  billion  at  

year-­‐end  2008  

» Capitalizing  on  crude  slate  flexibility  at  refineries  ›  Krotz  Springs  rail  rack  added;  pipeline-­‐to-­‐barge  access  to  30,000  barrels  

per  day  of  WTI  Midland  crude    

›  Big  Spring  processing  up  to  40,000  barrels  per  day  of  sweet  crude  

» Restructuring  West  Coast  business  

›  West  Coast  assets  (California  refining  and  asphalt)  generated  $(80)  million  in  EBITDA  in  2012;  goal  for  West  Coast  to  become  breakeven  in  2014  

›  Laid  groundwork  for  growing  West  Coast  logis/cs  business  

›  Sold  Willbridge,  Oregon  terminal  in  January  2014  for  $40  million  in  cash;  asset  had  been  unprofitable  as  an  asphalt  terminal  

6  

Where  We  Are  Heading  

» Refocusing  cash  flow  to  investments  that  enhance  gross  margin    

» Transforming  California  assets  from  a  drag  on  earnings  to  an  earnings  contributor  by  leveraging  exis/ng  assets  in  growing  logis/cs  business  

» Growing  retail  business  through  new  builds  and/or  acquisi/ons  

» Improving  asphalt  by  focusing  on  reducing  costs  and  growing  market  share  

7  

Big  Spring  Refinery  Texas  -­‐  Permian  Basin  

Krotz  Springs  Refinery  Louisiana  

California  Refineries    Paramount,  Long  Beach  and  Bakersfield  

Refining  Assets  

8  

WTI-­‐based  crudes  and  light  sweet  Gulf  Coast  crudes,  such  as  LLS,  are  expected  to  trade  at  a  discount  to  interna/onal  benchmarks  (Brent)  over  the  next  few  years,  providing  a  sustainable   feedstock   advantage   for  Mid-­‐Con/nent   refineries   like   Big   Spring   and   for  Gulf  Coast   refineries   like  Krotz  Springs.  The  U.S.  exports   refined  products,   compe/ng  directly  with  global  refineries  whose  feedstock  costs  (crude  purchase  prices)  are  based  on  Brent  crude.  

  Brent-­‐WTI  Spread  Analyst  Forecasts  1  

1  Source:  Goldman  Sachs    Global    Investment  Research  (Equity  Research),  Barclays.  Es/mates  as  of  April  1,  2014    2  From  2009  through  2012,  LLS  traded  at  a  ~$1.50  premium  to  Brent.    Note:  We  believe  analysts’  forecasts  are  a  beXer  indica/on  of  crude  spreads  in  out  years  than  forward  curves  due  to  the  lower  liquidity  in  out-­‐year  contracts  and  other  factors  that  can  skew  the  forward  curves.    

Sustainable  Feedstock  Advantage  

9  

$10.00   $10.00   $10.00   $10.00  

$14.25  $13.25   $12.50  

$8.00  $9.00  

 $-­‐

 $2.00

 $4.00

 $6.00

 $8.00

 $10.00

 $12.00

 $14.00

 $16.00

2014 2015 2016 2017 2018Goldman  Sachs Barclays

$/bb

l

Brent-­‐LLS  Spread  Analyst  Forecasts  2  

$5.00   $5.00   $5.00   $5.00  

$10.75  

$8.00  

$5.00  

$3.00   $3.00  

 $-­‐

 $2.00

 $4.00

 $6.00

 $8.00

 $10.00

 $12.00

2014 2015 2016 2017 2018Goldman  Sachs Barclays

$/bb

l

7%

22%

38%35%

34%

33%

40%

30%

25%

18% 14%3%

0%

20%

40%

60%

80%

100%

2011 2012 2013

WTI Midland WTS Gulf Coast Sweet Other

42%56%

71%

25%

Advantaged  Crude  Slate  

Alon’s  Consolidated  Crude  Slate  1  

1Other  includes    heavy  crude,  medium  sour  crude,  and  blendstocks.  Chart  includes  California  refining  opera/ons,  which  were  suspended  in  Nov.  2012.    

»  Alon’s  crude  slate  has  shi[ed  increasingly  towards  WTI-­‐linked  crudes  to  take  advantage  of  discounted  Mid-­‐Con/nent  crude  oil  pricing  since  2011  

»  Processed  71%  WTI-­‐linked  crudes  in  2013,  up  from  42%  in  2011,  reducing  exposure  to  more  expensive  crudes  

» With  LLS  becoming  advantaged,  Alon’s  crude  slate  is  100%  advantaged,  including  3%  related  to  discounted  blendstocks    

10  

Now  discounted  

»  518  ac/ve  rigs  in  the  Permian  in  March  2014  vs.  the  average  of  less  than  300  rigs  in  2010  »  Analysts  expect  Permian  produc/on  to  grow  over  200  Mbpd  annually  in  2014  and  20151  

»  Raymond  James  expects  Permian  produc/on  to  exceed  ~3,000  Mbpd  by  2020  

»  Big  Spring  is  located  in  Howard  County,  where  27  rigs  were  opera/ng  as  of  March  28,  20142  

»  Local  WTI  supplied  into  Big  Spring  increased  by  40%  in  2013  vs.  2012  

 

¹  Source:  Raymond  James  &  Associates,  Simmons  &  Company  2  Source:  Baker  Hughes,  RigData;  Rig  informa/on  as  of  March  28,  2014  

Permian  Basin  Ac4vity  Overview  2      

Oil  Rig  

Big  Spring:  In  the  Heart  of  the  Permian  Basin  

11  

Lubbock  

Big  Spring  

Alon  USA  Partners,  LP  Overview  

»  On  November  20,  2012  Alon  USA  Partners,  LP  (“ALDW”)  completed  an  ini/al  public  offering  as  a  variable  distribu/on  MLP  

›  Issued  11.5  million  of  limited  partner  units  raising  gross  proceeds  of  $184  million  (The  public  owns  18.4%  of  the  limited  partner  units)  

»  ALDW’s  assets  include  the  Big  Spring,  Texas  refinery  and  the  integrated  wholesale  fuels  marke/ng  business  

»  Big  Spring  refinery:  ›  70,000  bpd  (~26  MMbbl/year)  sour  crude  cracking  refinery  

›  10.5  Nelson  Complexity  

»  Integrated  wholesale  fuels  marke/ng  business  supplies  640  branded  sites,  including  substan/ally  all  of  Alon’s  retail  sites  

›  In  2013,  ~60%  of  the  gasoline  and  ~28%  of  the  diesel  produced  at  Big  Spring  was  transferred  to  our  branded  marke/ng  business  

»  Closest  refinery  to  robust  West  Texas  crude  oil  produc/on  (Permian  Basin),  which  provides  a  significant  crude  cost  advantage  

»  Flexible  refinery  with  the  ability  to  process  100%  WTS  or  100%  WTI  »  Benefirng  from  processing  ~70%  WTS,  which  traded  at  an  average  discount  to  WTI  of  $3.72/bbl  in  2013  

»  Entered  into  a  supply  and  osake  agreement  in  March  2011  

Refinery  Opera4ng  Margin  

Refinery  Throughput  (bpd)  

Refinery  Product  Yield  

12  

49% 50% 50%

32% 32% 33%

7% 6% 5% 12% 11% 11%

99.8% 99.8% 99.8%

0%

20%

40%

60%

80%

100%

2011 2012 2013

Gasoline Diesel/jet Asphalt Other

80% 76%65%

16% 21%31%

4%3% 4%

63,61468,946 67,103

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2011 2012 2013

WTS crude WTI crude Blendstocks

$20.89  $23.50  

$14.59  

$23.37  

$27.43  

$19.16  

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2011 2012 2013

Big  Spring  Operating  Margin Gulf  Coast  321  Crack  Spread

How  Big  Spring  Makes  Money  

¹  Refining  Margin  represents  liquid  recovery  of    99.79%.    Graph  is  based  on  2013.  Some  numbers  may  not  add  due  to  rounding.  “Wholesale  &  Other”  includes  costs  rela/ng  to  pipeline  fees,  supply  related  costs  and  other  raw  materials  purchased  at  the  refinery.    

Product  Yields   Crude  /  Blendstocks   Refining  Opera4ng  Margin¹  

13  

Other  10.7%

Asphalt  5.4%

Diesel  28.6%

Jet  4.9%

Gasoline50.4%

$122.34

$112.95

$125.19

$59.42

$111.88

$93.17

Per  bbl

Blendstocks4.0%

Sweet  Crude30.9%

Sour  Crude  65.1%

$94.72

Per  bbl

Wholesale  &  Other    $(1.36)

Asphalt    $(35.10)

Diesel    $30.66  

Jet    $27.82  

Gasoline    $18.43  

$(1.91)

$9.28  

$1.35  

$8.76  

$14.59  

-­‐$2.89

Per  bbl

Organic  Growth  Opportuni4es  at  Big  Spring  

Short-­‐term  low  cost  projects  will  drive  meaningful  returns  at  Big  Spring  

14  

Ini4a4ve   Cost   Incremental  EBITDA   Implementa4on  

Increase  dis/llate  produc/on  by  2,000  bpd;  enhance  energy  efficiency  and  ability  to  process  lighter  shale  crude;  increase  crude  throughput  by  3  Mbpd  

$25  million   $19  million1   During  2Q14  turnaround  

Selling  aroma/cs  due  to  conversion  from  conven/onal  gasoline  to  CBOB  

produc/on  $0   $14  million  

Ongoing,  expect  to  achieve  ratable  benefit  

by  end  of  2014  

Totals   $25  million   $33  million  

»  Evalua/ng  poten/al  to  expand  Big  Spring’s  capacity  »  Evalua/ng  low-­‐risk  projects  with  payback  periods  of  less  than  two  years  to  enhance  the  refinery’s  gross  margin,  focused  on:  

›  LPG  recovery  ›  Increased  aroma/cs  recovery  

›  Producing  chemical-­‐grade  propylene  

¹$19  million  annual  EBITDA  upli[  based  on  $10/bbl  spread  between  diesel  and  gasoline,  natural  gas  price  of  $3.80/MMBtu,  and  a  Gulf  Coast  WTI-­‐Based  3-­‐2-­‐1  benchmark  crack  spread  of  $16.90/bbl.    

Krotz  Springs  Refinery  Overview  

» 74,000  bpd  sweet  crude  residual  cracking  refinery    

» 8.3  Nelson  Complexity  

» Historically  processed  a  mix  of  LLS  and  HLS  type  crudes  

» Access  to  30,000  bpd  of  WTI  Midland  priced  crude  through  the  AMDEL  pipeline    

» Current  rail  rack  capacity  of  9,000  bpd  expandable  to  14,000  bpd  

» High  liquid  recovery  of  over  101%  

» One  of  the  newest  refineries  in  the  U.S.  (1980)¹  with  industry  low  opera/ng  costs  

» High  dis/llate  yield  capability  of  over  40%  

¹  Source:  US  Energy  Informa/on  Administra/on.  

Refinery  Opera4ng  Margin  

Refinery  Throughput  (bpd)  

Refinery  Product  Yield  

15  

$3.05  

$8.30  

$6.16  

$7.00  

$11.29  

$7.89  

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2011 2012 2013Krotz  Springs  Operating  Margin Gulf  Coast  221  (LLS)  Crack  Spread

42% 43% 45%

46% 42% 41%

13% 16% 16%

100.6% 101.2% 102.0%

0%

20%

40%

60%

80%

100%

2011 2012 2013

Gasoline Diesel/Jet Other

30%46%

99%

69% 51%

1%1% 3%59,720

67,877 64,705

0

20,000

40,000

60,000

80,000

2011 2012 2013WTI crude Gulf Coast sweet crude Blendstocks

How  Krotz  Springs  Makes  Money  

Product  Yields   Crude  /  Blendstocks   Refining  Opera4ng  Margin¹  

¹  Refining  Margin  represents  liquid  recovery  of    101.96%.  Graph  is  based  on  2013.  Some  numbers  may  not  add  due  to  rounding.  “Other”  includes  costs  rela/ng  to  pipeline  fees,  supply  related  costs  and  other  raw  materials  purchased  at  the  refinery.   16  

Other  15.2%

Diesel  23.8%

Jet16.4%

Gasoline44.6%

$122.01

$110.87

$120.67

$88.40

$110.58

$81.60

Per  bbl

Blendstocks2.9%

Sweet  Crude51.4%

WTI45.7%

$105.53

Per  bbl

Other    $(25.99)

Diesel    $13.08  

Jet    $14.42  

Gasoline    $3.28  $1.46  

$2.36  

$3.11  

$6.16  

$(0.77)

Per  bbl

Organic  Growth  Opportuni4es  at  Krotz  Springs      

Terminal  and  Logis4cs  Ini4a4ves:    

» Completed  work  to  place  crude  oil  rail  rack  into  service  in  June  2013  » Received  over  140,000  bbls  of  railed  crude  in  2013,  including  Niobrara  as  a  new  crude  » The  current  capacity  of  the  rail  rack  is  9,000  bpd,  expandable  to  14,000  bpd,  but  ini/ally  restricted  to  3,000  bpd  due  to  railroad  opera/ons  and  tank  car  availability  » Increasing  the  amount  of  crude  delivered  by  truck  to  the  refinery  from  10,000  bpd  currently  » Ability  to  access  significant  quan//es  of  LLS-­‐type  crudes,  which  are  now  discounted  to  Brent  

Opera4onal  Ini4a4ves:    

» Benefi/ng  from  efforts  to  improve  dis/llate  recovery  and  reduce  FCC  catalyst  costs  » Evalua/ng  low-­‐cost  projects  with  payback  periods  of  less  than  two  years  to  enhance  the  refinery’s  gross  margin,  focused  on:  ›  Increasing  LPG  value  (Example:  Polyisobutane  project-­‐  $2.5  million  cost,  $5.5  million  benefit)  ›  Improving  dis/llate  recovery    ›  Increasing  gasoline  values  by  producing  RBOB  gasoline  

Short-­‐term  low  cost  projects  will  drive  meaningful  returns  at  Krotz  Springs  

17  

California  Refining  Overview  

»  In  4Q  2012,  ceased  refining  opera/ons  for  interim  period    

»  Focused  on  reducing  opera/ng  expenses;  leveraging  logis/cs  assets    

 

 

»  SubmiXed  permit  applica/ons  for  rail  unloading  facility  at  Bakersfield  capable  of  unloading  two  unit  trains  per  day  

›  Will  allow  shipments  of  light  Mid-­‐Con/nent  crudes  or  other  crudes  to  replace  heavy  West  Coast  crudes,  providing  improved  product  slate  (less  asphalt)  for  refining  assets  

›  Expect  to  receive  permits  in  the  coming  months  

»  Long-­‐term,  the  California  system  is  expected  to  benefit  from  Monterey  shale  produc/on  

18  

Terminal   Permibed  Rail  Capacity   Status  

Long  Beach   12,000  bpd   Providing  services  to  third  party  

Paramount   14,000  bpd   In  discussions  with  third  par/es  

Bakersfield   13,000  bpd   In  discussions  with  third  par/es  

Note:  Refinery  direct  expense  is  a  per  barrel  measurement  calculated  by  dividing  direct  opera/ng  expenses  by  total  throughput  volume.  (1)  CVRR  costs  include  major  turnaround  expense;  (2)  WNR  2Q  2013  opera/ng  expenses  normalized  for  property  tax  refund  benefit;    costs  include  WNRL  expenses  (3)  HFC  Mid-­‐Con/nent  region  includes  the  El  Dorado  and  Tulsa  Refineries.  HFC  Southwest  region  includes  the  Navajo  refinery;  (4)  VLO  Gulf  Coast  region  includes  the  Corpus  Chris/  ,  Port  Arthur,  St.  Charles,  Texas  City,  Houston,  Three  Rivers  and  Meraux  Refineries.  

Mid-­‐Con4nent  Peer  Group   Gulf  Coast  Peer  Group  

Flexible  Refineries  with  Low  Opera4ng  Expenses  

2013  Refinery  Opera4ng  Expenses  ($/bbl)  –  Mid-­‐Con4nent  and  Gulf  Coast  Groups  

19  

Source:  Derived  from  public  company  filings  with  SEC.  

$4.53  $4.81  

$5.23   $5.28  $5.57  

$5.66  

$3.66  $4.09  

$4.36  

ALJ  Big  Spring,TX

DK  Tyler,  TX NTI  St.  Paul,  MN CVRR  (1) WNR  (2) HFC  Mid-­‐Con  &Southwestregions  (3)

VLO  Gulf  Coast(4)

ALJ  KrotzSprings,  LA

DK  El  Dorado,  AR

¹  Source:  Internal  Alon  Asphalt  marke/ng  analysis  and  market  studies.  

Note:  The  Mojave  and  Flagstaff  asphalt  terminals  are  not  currently  opera/ng.    

 

»  Operate  10  asphalt  terminals  in  the  western  U.S.  Opera/ons  include:    

›  50%  ownership  in  Paramount  Nevada  Asphalt  Company  –  the  largest  Polymer  Modified  Asphalt  (PMA)  plant  in  Nevada  

›  50%  ownership  in  Wright  Asphalt  Products  Company,  which  brings  exclusive  rights  to  Neste’s  GTR  technology  

»  Largest  supplier  of  asphalt  in  California  and  second  largest  asphalt  supplier  in  Texas  

»  Largest  manufacturer  of  PMA    and  GTR  asphalt  in  the  U.S.  

›  PMA  and  GTR  increasingly  specified  by  government  agencies  for  use  in  highway  projects  in  Texas  and  California  

›  California  and  Texas  are  the  largest  asphalt  consuming  states  in  the  U.S.  

›  States  focused  on  extending  the  life  of  roads,  increasing  PMA  demand  

Krotz Springs

Paramount

Among  U.S.  Refiners¹:  »  #7  asphalt  supplier  in  U.S.  »  #2  asphalt  supplier  West  of  Mississippi  

»  #1  asphalt  supplier  in  PADD  V  states  »  #1  terminally  blended  /re  rubber  asphalt  

marketer  in  U.S.  

Houston

Tulsa Phoenix

Flagstaff

Elk Grove (Sacramento)

Bakersfield Mojave

Fernley (Reno)

Paramount / Long Beach

Big Spring

Corpus Christi

Richmond Beach (Seattle)

Refineries Asphalt terminals

Legend

Leading  Asphalt  Supplier  

20  

Physically  Integrated  Retail  Network  

»  Largest  7-­‐Eleven  licensee  in  the  U.S.  with  296  stores  (~50%  fee  owned)  in  Central/West  Texas  and  New  Mexico  

» Completed  re-­‐branding  to  ALON  brand  

» Remodel  program  con/nues  to  progress  

»  Expanding  store  count  through  new  builds  and/or  acquisi/ons  

» Record  fuel  sales  achieved  in  2013,  represen/ng  a  10%  increase  from  2012  

»  In  2013,  retail  gasoline  and  diesel  sales  represented  28%  and  9%,  respec/vely,  of  Big  Spring’s  gasoline  and  diesel  produc/on  

Loca4ons  in  High  Growth  Markets  

Loca4on   Total  

Big  Spring,  Texas   8  

Wichita  Falls,  Texas   11  

Waco,  Texas   10  

Midland,  Texas   17  

Lubbock,  Texas   21  

Albuquerque,  New  Mexico   23  

Odessa,  Texas   35  

Abilene,  Texas   41  

El  Paso,  Texas   82  

Other  loca/ons  in  Central  and  West  Texas   48  

Total  Stores   296  

21  Note:  Store  count  as  of  March  2014.    

 

Retail  Fuel  Volumes  &  In-­‐Store  Sales  

Retail:  4th  Quarter  Fuel  Sales  in  Gallons  

Retail:  Annual  Fuel  Sales  in  Gallons  

Retail:  4th  Quarter  In-­‐Store  Sales  

Retail:  Annual  In-­‐Store  Sales  

22  

142.2156.7

170.8

188.5

2010 2011 2012 2013

(#  in  millions)

$281.7  

$298.2  

$315.1  $316.4  

2010 2011 2012 2013

(#  in  millions)

37.3

40.7

44.0

47.2

4Q  2010 4Q  2011 4Q  2012 4Q  2013

(#  in  millions)

$70.0  $72.4  

$77.0   $76.2  

4Q  2010 4Q  2011 4Q  2012 4Q  2013

(#  in  millions)

Financial  Summary  

23  

Key  Financial  Metrics  

Adjusted  EBITDA  1  

Net  Income  

(in  $  millions)  

1  See  page  32  for  a  reconcilia/on  of  Adjusted  EBITDA  to  Net  Income  under  GAAP.  24  

$  268  

$  434  

$  271  

2011 2012 2013

$  43  

$  79  

$  23  

2011 2012 2013

Key  Financial  Metrics  

Capital  Expenditures  &  Turnarounds  

Net  Leverage  (Net  Debt/Adjusted  EBITDA)1  

(in  $  millions)  

1  See  page  32  for  a  reconcilia/on  of  Adjusted  EBITDA  to  Net  Income  under  GAAP.  Some  numbers  may  not  add  due  to  rounding.   25  

$  893  

$  471  $  388  

3.3  x

1.1  x1.4  x

2011 2012 2013Net  Debt Net  Leverage

$36 $53 $49 $48$10

$11 $9$33

$77 $41$20

$68

2011 2012 2013 2014  BudgetSustaining  &  Regulatory Turnaround  &  Catalyst Growth

$  122 $  105

$  77

$  149

Debt  Reduc4on  

»  Reduced  net  debt  by  $422  million  in  2012    

»  Reduced  net  debt  by  over  $500  million  since  the  start  of  2012  

»  Completed  $150  million  3.00%  conver/ble  debt  offering  in  September  2013  and  redeemed  $140  million  of  the  13.5%  Krotz  Springs  senior  secured  notes  in  October  2013  

»  The  balance  of  the  Krotz  notes  expected  to  be  paid  off  with  cash  on  hand;  $40  million  of  the  ~$75  million  remaining  will  be  redeemed  in  May  2014  

(in  $  millions)  

26  

 $-­‐

 $200

 $400

 $600

 $800

 $1,000

1Q-­‐12 2Q-­‐12 3Q-­‐12 4Q-­‐12 1Q-­‐13 2Q-­‐13 3Q-­‐13 4Q-­‐13

Net  Debt    

(in  $  millions) 2008 2009 2010 2011 2012 2013

Net  Debt 1,085           897                 845                 893                 471                 388                

Alon’s  Strategic  Advantages  

» Strategically  located  refineries  with  advantageous  sources  of  crude    » Physically  integrated  refining  and  marke/ng  system  (cap/ve  wholesale  and  retail  network)  at  Big  Spring  

» Diversified  opera/ons  provide  stability  » High  quality  assets  with  low  opera/ng  costs  » Leading  blended  and  modified  asphalt  producer  

» Strong  liquidity  posi/on  and  flexibility  provided  by  supply  &  osake  agreements  at  each  refinery  

» Experienced  management  team  

27  

Growth  Opportuni4es  

» Evalua/ng  poten/al  to  increase  throughput  at  Big  Spring  

» Opportuni/es  to  implement  low-­‐risk  projects  at  Big  Spring  and  Krotz  Springs  with  high  returns  

» Growing  West  Coast    logis/cs  business  

›  Developing  West  Coast  logis/cs  business  capable  of  genera/ng  $40-­‐60  million  in  EBITDA  in  the  next  few  years,  allowing  eventual  drop  down  to  logis/cs  MLP1  

» Opportuni/es  to  expand  retail  store  count  through  new  builds  or  acquisi/ons  

» Significant  earnings  poten/al  in  asphalt  business  as  fundamentals  improve  

  28  1  EBITDA  es/mates  exclude  Willbridge  terminal,  which  was  sold  in  January  2014.  

Investment  Highlights  

» Expanding  crude  sources  to  enhance  flexibility  and  margins  

» Increasing  high  margin  dis/llate  produc/on  

» Evalua/ng  several  low-­‐risk  refining  projects  with  payback  periods  of  less  than  two  years  

» Opportunity  to  grow  terminal  and  logis/cs  business  

» Genera/ng  RINs  internally  

» Genera/ng  returns  from  retail  marke/ng  remodeling  program  

» Increasing  volumes  in  wholesale  marke/ng  business  

29  

Stacey  Hudson,  CFA    Investor  RelaCons  Manager  

972-­‐367-­‐3808  Stacey.Hudson@alonusa.com  

Investor  Rela4ons  Contact  

30  

Appendix  

31  

Adjusted  EBITDA  Reconcilia4on  

Note:    Adjusted  EBITDA  above  excludes  unrealized  gains  (losses)  on  commodity  swaps  of  $(31,936)  for  the  year  ended  December  31,  2012.  Adjusted  EBITDA  also  excludes  a  loss  on  hea/ng  oil  call  op/on  crack  spread  contracts  of  $7,297  for  the  year  ended  December  31,  2012.        Adjusted  EBITDA  including  the  impact  of  these  items  would  be  $394,291  for  the  year  ended  December  31,  2012.        

32  

(in  $  000's) 2011 2012 2013

Net  Income 42,507   79,134   22,986  Non-­‐controlling  interest  in  income  (loss)  of  subsidiaries 1,241   11,463   25,129  

Income  tax  expense  (benefit) 18,918   49,884   12,151  

Interest  expense 88,310   129,572   94,694  

Depreciation  and  Amortization 113,730   121,929   125,494  

(Gain)  loss  on  disposition  of  assets (729) 2,309   (9,558)

Unrealized  (gains)  losses  on  commodity  swaps (31,936) 31,936   -­‐(Gain)  loss  on  heating  oil  call  option  crack  spread  contracts 36,280   7,297   -­‐

Adjusted  EBITDA 268,321   433,524   270,896  

33  

»  Big  Spring’s  value  highlighted  by  ALDW;  other  segments  underappreciated  

»  Krotz  Springs’  earnings  poten/al  enhanced  by  discount  in  LLS  rela/ve  to  Brent  crude  ›  Assuming  60%  LLS  crude  slate  and  95%  u/liza/on,  each  $1/bbl  move  in  Brent-­‐LLS  represents  ~$15.4  million  in  EBITDA  at  Krotz  Springs  on  an  annual  basis  

›  Combining  historical  LLS  premium  to  Brent  with  analysts’  forecasts  of  a  $5  -­‐  10.75/bbl  discount  in  LLS  for  2014,  poten/al  incremental  EBITDA  totals  $100  -­‐  189  million1  

›  Low-­‐risk,  high-­‐return  projects  to  increase  gross  margin  

»  Losses  in  California  have  been  mi/gated;  building  growing  logis/cs  business  capable  of  genera/ng  $40  -­‐  60  million  in  EBITDA2  

»  Retail  business  has  seen  consistent  growth  in  fuel  volumes  and  merchandise  sales;  generates  strong    fuel  and  merchandise  margins  

›  The  apprecia/on  in  C-­‐Store  mul/ples  not  realized  in  our  retail  segment  

»  Significant  earnings  poten/al  in  asphalt  business  as  fundamentals  improve  

›  Asphalt  generated  $100  million  in  EBITDA  in  2008  

›  Lackluster  industry  demand  in  recent  years,  likely  resul/ng  in  pent-­‐up  demand  ¹  From  2009  through  2012,  LLS  traded  at  a  ~$1.50  premium  to  Brent  .  The  $6.50/bbl  swing  in  prices  implied  by  a  $5  /bbl  discount    in  LLS  results  in    $100  million  in  incremental  EBITDA.  The  $12.25/bbl  swing  in  prices  implied  by  a  $10.75/bbl  discount  in  LLS  results  in  $189  million  in  incremental  EBITDA.  2  EBITDA  es/mates  exclude  Willbridge  terminal,  which  was  sold  in  January  2014.  

Value  Above  and  Beyond  Big  Spring  

Guidance  and  Hedging  Informa4on  

34  

»  Throughput  at  Big  Spring  is  expected  to  average  73,000  bpd  in  1Q  2014,  46,000  bpd  in  2Q  2014  as  a  result  of  the  turnaround  and  67,000  bpd  for  full-­‐year  2014  

»  Throughput  at  Krotz  Springs  is  expected  to  average  64,000  bpd  in  1Q  2014  and  71,000  bpd  for  full-­‐year  2014;  Krotz  Springs  is  expected  to  process  30,000  bpd  of  Midland-­‐priced  crudes  throughout  2014  

»  Full-­‐year  2014  RINs  cost  expected  to  be  approximately  $35  million  total  based  on  a  weighted  average  RINs  price  of  $0.54/RIN,  including  ~$12  million  for  the  Big  Spring  refinery  

» Alon  has  entered  into  swaps  to  hedge  crude-­‐product  cracks.  As  of  mid-­‐March  2014,  these  amounted  to:  

Year   Volume   Crack  Spread   Strike  Price  

2014   6  Mbpd   Gulf  Coast  Jet  vs.  LLS   $19.43  

2015   10  Mbpd   Gulf  Coast  Jet  vs.  LLS   $22.58  

Natural  Gas  Sensi4vity  

» Big  Spring  ›  For  $1/MMBTU  change  in  natural  gas  prices,  opera/ng  expenses  change  by  $0.28/bbl  based  on  2014  throughput  guidance  of  67,000  bpd  

 

» Krotz  Springs  ›  For  $1/MMBTU  change  in  natural  gas  prices,  opera/ng  expenses  change  by  $0.15/bbl  based  on  2014  throughput  guidance  of  71,000  bpd  

 

» Higher  natural  gas  prices  increase  LPG  values,  resul/ng  in  an  increase  in  gross  margin  that  is  expected  to  more  than  offset  higher  opera/ng  expenses  at  both  refineries  

35  

Mi4ga4ng  RINs  Exposure  

»  The  Renewable  Fuel  Standard  (“RFS”)  requires  refiners  to  blend  a  certain  amount  of  renewable  fuels  into  gasoline  and  diesel.    Compliance  with  the  RFS  is  monitored  through  Renewable  Iden/fica/on  Numbers  (“RINs”)  

» RINs  prices  increased  in  2013  as  the  “blend  wall”  approached  –  the  point  where  refiners  are  required  to  blend  more  renewable  fuels  than  is  supported  by  demand  for  E-­‐10  and  E-­‐85  gasoline  

» Alon’s  increasing  branded  and  unbranded  sales  contributes  to  the  ability  to  generate  RINs  internally  

›  Branded  sales  were  up  13%  in  2013  rela/ve  to  2012  

»  Full-­‐year  2013  RINs  cost  was  $14.9  million  at  Big  Spring;  Krotz  Springs  received  a  one-­‐year  exemp/on  from  the  calendar  year  2013  requirements  of  RFS    

»  Full-­‐year  2014  RINs  cost  expected  to  be  approximately  $35  million  total  based  on  a  weighted  average  RINs  price  of  $0.54/RIN,  including  ~$12  million  for  the  Big  Spring  refinery  

36  

Business  Focus  

Refining¹  

»  Primary  focus:  safety  &  reliability    »  Run  Big  Spring  at  maximum  capacity  »  Run  Krotz  Springs  capacity  (using  30,000+  bpd  of  WTI  Midland)  leveraging  capital  improvements  

»  Improve  crude  flexibility  in  CA  refineries  by  receiving  advantaged  crude  by  rail  

»  Achieve  opera/ng  expense  leadership  »  Leverage  West  Coast  assets  in  growing  logis/cs  business  

»  Op/mize  crude  slate  to  take  advantage  of  regional  pricing  disloca/ons  

»  Op/mize  refined  product  slate  to  take  advantage  of  dis/llate  produc/on  capacity  and  strong  margin  environment  

»  Maintain  capital  discipline  and  con/nued  investments  in  high  return  growth  projects  

»  Enhance  branded  wholesale  business  

Asphalt  

»  Op/mize  asphalt  produc/on  and  3rd  party  purchases  

»  Leverage  exis/ng  distribu/on  network  

»  Maintain  leading  market  share  in  premium,  specialty  asphalt  products  (emulsions,  polymer  modified  asphalt  and  ground  /re  rubber  blends)  

»  Op/mize  zero-­‐pen  shipments  to  West  Coast  

Retail  

»  Con/nue  Clean  TEAM  efforts  to  improve  opera/ons:  remodel  interior/exterior  retail  sites;  selec/vely  grow  store  count  

»  Increase  fuels  sold  under  ALON  brand    »  Grow  high  margin  food  sales  and  inventory  turns  

»  Expand  and  grow  the  retail  loca/ons  in  target  markets  through  new  builds  and/or  acquisi/ons  

»  Op/mize  pricing  and  maintain  high  merchandise  margin  

Commercial  Focus  

1  Refining  includes  Big  Spring  and  Wholesale  Fuels  Marke/ng,  Krotz  Springs  and  the  California  complex.

Opera4onal  Focus  

37  

Crude  Prices  &  Crack  Spread  Trends  

38  ¹  5  Year  Average  of  2008  to  2012  ²  As  reported  in  annual  10K  filing  

West  Texas  Sour  ("WTS")

West  Texas  Intermediate  

("WTI")Brent

Louisiana  Light  Sweet  ("LLS")

LLS  -­‐ WTI                                                                                5  Year  Average  -­‐-­‐$7.25      

2013  -­‐-­‐-­‐$11.06            1Q  2014  -­‐-­‐-­‐$6.00

WTI                                                                          5  Year  Average¹-­‐-­‐$86.00        

2013²  -­‐-­‐-­‐$97.97                                1Q  2014-­‐-­‐-­‐$98.65

WTI  -­‐ WTS                                                                  5  Year  Average  -­‐-­‐$2.99    

2013  -­‐-­‐-­‐$3.72      1Q  2014  -­‐-­‐-­‐$3.67

GC321                                                          5  Year  Average  -­‐-­‐$15.35  

2013  -­‐-­‐-­‐$19.16  1Q  2014-­‐-­‐-­‐$16.81

GC  211  (HSD/LLS)                                                          5  Year  Average  -­‐-­‐$8.08    

2013  -­‐-­‐-­‐$7.89    1Q  2014  -­‐-­‐-­‐$10.75

Brent  -­‐ WTI                                                                                5  Year  Average  -­‐-­‐$6.51      

2013  -­‐-­‐-­‐$11.63            1Q  2014  -­‐-­‐-­‐$10.45

GC321(Brent)                                                          5  Year  Average  -­‐-­‐$8.84  

2013  -­‐-­‐-­‐$7.53  1Q  2014-­‐-­‐-­‐$6.35

March  trade-­‐month  differen/als  (impact  April  gross  margin):  WTI  Cushing  –  WTS:  $7.67/bbl  WTI  Cushing  –  WTI  Midland:  $8.68/bbl