Frontier Oil Corp. Q3 2008 Earnings Call Transcript

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2008-11-06 13:25:28.0

Tags: Barclays Plc., Call Transcript, Gasoline, Earnings, Frontier Oil Corp., October, Financial Accounting, Finance, Seeking Alpha, Barclays Plc., Call Transcript, Gasoline, Earnings, Frontier Oil Corp., October, Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Absolutely. [Operator Instructions]. We'll take our first question from Paul Cheng at Barclays Capital.

James R. Gibbs - President and Chief Executive Officer

Paul, before you start --

Paul Cheng - Barclays Capital

Hey, how are you doing?

James R. Gibbs - President and Chief Executive Officer

Fine. Before you start, you can ask as many questions as you want.

Paul Cheng - Barclays Capital

Oh, thank you.

James R. Gibbs - President and Chief Executive Officer

You're welcome.

Paul Cheng - Barclays Capital

You are so kind. I think that generally in the past, you guys have been very generous to share with us what is the margin look by facility between gasoline, diesel and light heavy discount. So can you do that?

James R. Gibbs - President and Chief Executive Officer

Yes, I think, yes.

Paul Cheng - Barclays Capital

What is the October month and maybe then what is currently that they are doing?

James R. Gibbs - President and Chief Executive Officer

Well Mr. Aron is loaded for bear on that question.

Doug Aron - Vice President, Corporate Finance

Okay, Paul. October, we saw the month start out very strongly. As Jim mentioned, September sort of ended after we saw strength from the hurricanes on Gulf Coast and sort of started with a bang, ended with the whimper. Our gasoline cracks for the month of October were $8.31 at Cheyenne and just under $1 in El Dorado. On diesel, we saw those at $31.61 in the Rockies or for the Cheyenne refinery and at about $23.25 in El Dorado.

As I said, that month of October ended pretty weakly and we started to see that carry over into the month of October, particularly on gasoline where the month to date average on gasoline in the Rockies is about a negative $2.75 and month to date average in the mid continent about a negative $6 currently. In terms of diesel, as Jim mentioned, still very strong. We are seeing about a $25 diesel crack in the Rockies and about a $21 diesel crack in the mid continent.

Paul Cheng - Barclays Capital

How about, Doug, the light heavy discount, the way how you guys define in Cheyenne and El Dorado?

Doug Aron - Vice President, Corporate Finance

We are seeing, Paul, right now about $22 off in terms of the light heavy discount. That's generally more described for our Cheyenne refinery, which is significant if you consider that as a percentage of WTI, compared to where we saw that through the summer when TI was double where it is now and West Texas sour has started to trade in the 5 to $6 off is the most recent quote.

 

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