Part
I
|
|
Item
1.
|
|
Item
1A.
|
|
Item
1B.
|
|
Item
2.
|
|
Item
3.
|
|
Item
4.
|
|
Part
II
|
|
Item
5.
|
|
Item
6.
|
|
Item
7.
|
|
Item
7A.
|
|
Item
8.
|
|
Item
9.
|
|
Item
9A.
|
|
Item
9B.
|
|
|
|
Part
IV
|
|
Item
15
|
· |
statements,
other than statements of historical fact, that address activities,
events
or developments that we expect, believe or anticipate will or may
occur in
the future;
|
· |
statements
relating to future financial performance, future capital sources
and other
matters; and
|
· |
any
other statements preceded by, followed by or that include the words
“anticipates,” “believes,” “expects,” “plans,” “intends,” “estimates,”
“projects,” “could,” “should,” “may,” or similar
expressions.
|
2006
|
High
|
Low
|
Fourth
quarter
Third
quarter
Second
quarter
First
quarter
|
$
33.00
37.80
33.10
30.98
|
$
24.00
24.33
23.75
18.99
|
2005
|
High
|
Low
|
Fourth
quarter
Third
quarter
Second
quarter
First
quarter
|
$
22.94
23.09
14.91
9.23
|
$
15.77
13.28
9.23
5.98
|
Period
|
Total
Number of Shares Purchased
|
Average
Price
Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
(1)
|
Maximum
Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased
Under the Plans or Programs (2)
|
|||
October
1, 2006 to
October
31, 2006
|
354,300
|
$
24.8123
|
354,300
|
9,606,848
shares
|
|||
November
1, 2006 to
November
30, 2006
|
-
|
-
|
-
|
$100
million
|
|||
December
1, 2006 to
December
31, 2006
|
-
|
-
|
-
|
$100
million
|
|||
Total
fourth quarter
|
354,300
|
$
24.8123
|
354,300
|
$100
million
|
Five
Year Financial Data
|
||||||||||||||||
(Unaudited)
|
Years
Ended December 31,
|
|||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
|
|
As
Adjusted
|
As
Adjusted
|
As
Adjusted
|
As
Adjusted
|
|||||||||||
|
|
(1)
|
(1)
|
(1)
|
(1)
|
|||||||||||
(Dollars
in thousands, except per share amounts)
|
||||||||||||||||
Revenues
|
$
|
4,795,953
|
$
|
4,001,162
|
$
|
2,861,716
|
$
|
2,170,503
|
$
|
1,813,750
|
||||||
Operating
income
|
574,194
|
450,013
|
142,903
|
53,437
|
30,030
|
|||||||||||
Cumulative
effect of accounting
|
-
|
(2,503
|
)
|
-
|
-
|
-
|
||||||||||
change,
net of income taxes (2)
|
||||||||||||||||
Net
income
|
379,277
|
275,158
|
69,392
|
4,200
|
2,300
|
|||||||||||
Basic
earnings per share:
|
||||||||||||||||
Before
cumulative effect of
accounting
change
|
3.40
|
2.51
|
0.65
|
0.04
|
0.02
|
|||||||||||
Cumulative
effect of accounting
change
|
-
|
(0.02
|
)
|
-
|
-
|
-
|
||||||||||
Net
income
|
3.40
|
2.49
|
0.65
|
0.04
|
0.02
|
|||||||||||
Diluted
earnings per share:
|
||||||||||||||||
Before
cumulative effect of
accounting
change
|
3.37
|
2.44
|
0.63
|
0.04
|
0.02
|
|||||||||||
Cumulative
effect of accounting
change
|
-
|
(0.02
|
)
|
-
|
-
|
-
|
||||||||||
Net
income
|
3.37
|
2.42
|
0.63
|
0.04
|
0.02
|
|||||||||||
Working
capital (current assets less
current
liabilities)
|
479,518
|
270,145
|
106,760
|
45,049
|
116,187
|
|||||||||||
Total
assets
|
1,523,925
|
1,223,057
|
770,177
|
662,495
|
646,350
|
|||||||||||
Long-term
debt
|
150,000
|
150,000
|
150,000
|
168,689
|
207,966
|
|||||||||||
Shareholders’
equity
|
775,854
|
478,692
|
271,120
|
200,656
|
198,669
|
|||||||||||
Dividends
declared per
common
share
|
0.10
|
0.575
|
0.055
|
0.05
|
0.05
|
|||||||||||
Contractual
Cash Obligations
|
Payments
Due by Period
|
|||||||||||||||
Total
|
Within
1
Year
|
Within
2-3
years
|
Within
4-5
years
|
After
5
years
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Long-term
debt
|
$
|
150,000
|
$
|
-
|
$
|
-
|
$
|
150,000
|
$
|
-
|
||||||
Interest
on long-term debt
|
47,204
|
9,938
|
19,875
|
17,391
|
-
|
|||||||||||
Operating
leases
|
99,226
|
14,378
|
27,346
|
23,794
|
33,708
|
|||||||||||
Purchase
obligations:
|
||||||||||||||||
Baytex
crude supply (1)
|
290,829
|
290,829
|
-
|
-
|
-
|
|||||||||||
Other
crude supply, feedstocks and
natural
gas (1)
|
177,006
|
175,744
|
1,262
|
-
|
-
|
|||||||||||
Transportation,
terminalling and
storage
|
318,780
|
41,900
|
86,854
|
68,573
|
121,453
|
|||||||||||
Refinery
capital projects (2)
|
85,570
|
85,570
|
-
|
-
|
-
|
|||||||||||
Other
goods and services
|
8,842
|
7,732
|
1,110
|
-
|
-
|
|||||||||||
Total
purchase obligations
|
881,027
|
601,775
|
89,226
|
68,573
|
121,453
|
|||||||||||
Other
long-term liabilities
|
13,746
|
-
|
8,521
|
1,014
|
4,211
|
|||||||||||
Pension
and post-retirement healthcare
and
other benefit plans funding
requirements
(3)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Total
contractual cash
|
$
|
1,191,203
|
$
|
626,091
|
$
|
144,968
|
$
|
260,772
|
$
|
159,372
|
(1) |
Baytex
crude supply and other crude supply, feedstocks and natural gas future
obligations were calculated using current market prices and/or prices
established in applicable contracts. Of these obligations, $208.8
million
relate to January and February 2007 feedstock and natural gas requirements
of the Refineries.
|
(2) |
The
$85.6 million of Refinery capital projects primarily consists of
$71.9
million for the crude unit and vacuum tower expansion project at
our El
Dorado Refinery and $8.3 million for the coker expansion project
at our
Cheyenne Refinery. These amounts for refinery capital projects reflected
here relate to current commitments not accrued as of December 31,
2006,
not the total estimated costs of the
projects.
|
(3) |
No
pension funding will be required in 2007 for our cash balance pension
plan. Funding requirements for remaining years will be based on actuarial
estimates and actual experience. Our retiree health care plan is
unfunded.
Future payments for retiree health care benefits are estimated for
the
next ten years in Note 8 “Employee Benefit Plans” in the “Notes to
Consolidated Financial Statements.”
|
· |
WTI
Cushing crude oil price - the benchmark West Texas Intermediate crude
oil
priced at Cushing, Oklahoma (ConocoPhillips WTI crude oil posting
plus).
|
· |
Charges
- the quantity of crude oil and other feedstock processed through
Refinery
units on a bpd basis.
|
· |
Manufactured
product yields - the volumes of specific materials that are obtained
through the distilling of crude oil and the operations of other refinery
process units on a bpd basis.
|
· |
Gasoline
and diesel crack spreads - the average non-oxygenated gasoline and
diesel
net sales prices that we receive for each product less the average
WTI
Cushing crude oil price.
|
· |
Cheyenne
light/heavy crude oil differential - the average differential between
the
WTI Cushing crude oil price and the heavy crude oil delivered to
the
Cheyenne Refinery.
|
· |
WTI/WTS
crude oil differential - the average differential between the WTI
Cushing
crude oil price and the West Texas sour crude oil priced at Midland,
Texas.
|
· |
El
Dorado Refinery light/heavy crude oil differential - the average
differential between the WTI Cushing crude oil price and the Canadian
heavy crude oil delivered to the El Dorado Refinery. This differential
is
only applicable beginning in 2006 when we began utilizing Canadian
crude
oil at the El Dorado Refinery.
|
Consolidated:
|
||||||||||
Years
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
Charges
(bpd)
|
||||||||||
Light
crude
|
39,730
|
39,210
|
37,486
|
|||||||
Heavy
and intermediate crude
|
114,743
|
113,439
|
110,662
|
|||||||
Other
feed and blend stocks
|
17,346
|
15,955
|
16,609
|
|||||||
Total
|
171,819
|
168,604
|
164,757
|
|||||||
Manufactured
product yields (bpd)
|
||||||||||
Gasoline
|
81,484
|
83,574
|
82,944
|
|||||||
Diesel
and jet fuel
|
57,678
|
55,151
|
53,093
|
|||||||
Asphalt
|
6,032
|
7,434
|
7,475
|
|||||||
Other
|
21,580
|
17,506
|
17,050
|
|||||||
Total
|
166,774
|
163,665
|
160,562
|
|||||||
Total
product sales (bpd)
|
||||||||||
Gasoline
|
89,895
|
90,372
|
90,698
|
|||||||
Diesel
and jet fuel
|
57,326
|
54,350
|
52,818
|
|||||||
Asphalt
|
6,138
|
7,526
|
7,427
|
|||||||
Other
|
18,679
|
18,133
|
15,046
|
|||||||
Total
|
172,038
|
170,381
|
165,989
|
|||||||
Refinery
operating margin information (per sales barrel)
|
||||||||||
Refined
products revenue
|
$
|
75.80
|
$
|
64.32
|
$
|
47.27
|
||||
Raw
material, freight and other costs
(FIFO
inventory accounting)
|
61.33
|
52.22
|
40.04
|
|||||||
Refinery
operating expenses, excluding depreciation
|
4.41
|
3.88
|
3.63
|
|||||||
Depreciation
and amortization
|
0.65
|
0.56
|
0.53
|
|||||||
Average
WTI crude oil price at Cushing, OK (per barrel)
|
$
|
64.94
|
$
|
55.77
|
$
|
41.85
|
||||
Average
gasoline crack spread (per barrel)
|
14.10
|
11.67
|
8.61
|
|||||||
Average
diesel crack spread (per barrel)
|
21.35
|
17.13
|
7.35
|
|||||||
Average
sales price (per sales barrel)
|
||||||||||
Gasoline
|
$
|
80.79
|
$
|
69.09
|
$
|
51.70
|
||||
Diesel
and jet fuel
|
86.62
|
73.61
|
49.81
|
|||||||
Asphalt
|
37.68
|
26.72
|
24.11
|
|||||||
Other
|
31.11
|
28.28
|
23.10
|
Years
Ended December 31,
|
2006
|
2005
|
2004
|
|||||||
Cheyenne
Refinery:
|
||||||||||
Charges
(bpd)
|
||||||||||
Light
crude
|
12,436
|
8,575
|
6,645
|
|||||||
Heavy
crude
|
33,563
|
38,347
|
38,408
|
|||||||
Other
feed and blend stocks
|
1,694
|
4,399
|
4,392
|
|||||||
Total
|
47,693
|
51,321
|
49,445
|
|||||||
Manufactured
product yields (bpd)
|
||||||||||
Gasoline
|
19,089
|
21,035
|
20,039
|
|||||||
Diesel
|
14,261
|
14,580
|
14,387
|
|||||||
Asphalt
|
6,032
|
7,434
|
7,475
|
|||||||
Other
|
6,283
|
6,285
|
5,839
|
|||||||
Total
|
45,665
|
49,334
|
47,740
|
|||||||
Total
product sales (bpd)
|
||||||||||
Gasoline
|
26,569
|
27,186
|
26,744
|
|||||||
Diesel
|
14,147
|
14,428
|
14,581
|
|||||||
Asphalt
|
6,138
|
7,526
|
7,427
|
|||||||
Other
|
4,662
|
6,124
|
5,044
|
|||||||
Total
|
51,516
|
55,264
|
53,796
|
|||||||
Refinery
operating margin information (per sales barrel)
|
||||||||||
Refined
products revenue
|
$
|
74.08
|
$
|
61.16
|
$
|
45.50
|
||||
Raw
material, freight and other costs
(FIFO
inventory accounting)
|
57.07
|
48.49
|
38.08
|
|||||||
Refinery
operating expenses, excluding depreciation
|
5.42
|
3.91
|
3.72
|
|||||||
Depreciation
and amortization
|
1.00
|
0.90
|
0.90
|
|||||||
Average
light/heavy crude oil differential (per barrel)
|
$
|
16.21
|
$
|
15.32
|
$
|
9.90
|
||||
Average
gasoline crack spread (per barrel)
|
15.58
|
13.17
|
9.33
|
|||||||
Average
diesel crack spread (per barrel)
|
24.35
|
19.40
|
9.34
|
|||||||
Average
sales price (per sales barrel)
|
||||||||||
Gasoline
|
$
|
83.35
|
$
|
71.14
|
$
|
53.28
|
||||
Diesel
|
89.99
|
75.57
|
52.35
|
|||||||
Asphalt
|
37.68
|
26.72
|
24.11
|
|||||||
Other
|
20.91
|
25.29
|
15.98
|
El
Dorado Refinery:
|
||||||||||
Charges
(bpd)
|
||||||||||
Light
crude
|
27,295
|
30,635
|
30,841
|
|||||||
Heavy
and intermediate crude
|
81,180
|
75,092
|
72,254
|
|||||||
Other
feed and blend stocks
|
15,652
|
11,556
|
12,218
|
|||||||
Total
|
124,127
|
117,283
|
115,313
|
|||||||
Manufactured
product yields (bpd)
|
||||||||||
Gasoline
|
62,395
|
62,539
|
62,905
|
|||||||
Diesel
and jet fuel
|
43,417
|
40,572
|
38,706
|
|||||||
Other
|
15,297
|
11,222
|
11,212
|
|||||||
Total
|
121,109
|
114,333
|
112,823
|
|||||||
Total
product sales (bpd)
|
||||||||||
Gasoline
|
63,327
|
63,186
|
63,954
|
|||||||
Diesel
and jet fuel
|
43,179
|
39,922
|
38,237
|
|||||||
Other
|
14,018
|
12,009
|
10,002
|
|||||||
Total
|
120,524
|
115,117
|
112,193
|
|||||||
Refinery
operating margin information (per sales barrel)
|
||||||||||
Refined
products revenue
|
$
|
76.53
|
$
|
65.83
|
$
|
48.12
|
||||
Raw
material, freight and other costs
(FIFO
inventory accounting)
|
63.15
|
54.01
|
40.98
|
|||||||
Refinery
operating expenses, excluding depreciation
|
3.98
|
3.87
|
3.59
|
|||||||
Depreciation
and amortization
|
0.50
|
0.40
|
0.35
|
|||||||
Average
WTI/WTS crude oil differential (per barrel)
|
$
|
5.22
|
$
|
4.51
|
$
|
3.74
|
||||
Average
light/heavy crude oil differential (per barrel)
|
18.13
|
-
|
-
|
|||||||
Average
gasoline crack spread (per barrel)
|
13.48
|
11.02
|
8.31
|
|||||||
Average
diesel crack spread (per barrel)
|
20.37
|
16.31
|
6.59
|
|||||||
Average
sales price (per sales barrel)
|
||||||||||
Gasoline
|
$
|
79.72
|
$
|
68.21
|
$
|
51.03
|
||||
Diesel
and jet fuel
|
85.51
|
72.90
|
48.84
|
|||||||
Other
|
34.51
|
29.81
|
26.69
|
1. |
Nature
of Operations
|
2. |
Significant
Accounting Policies
|
Refinery
buildings and equipment
|
5
to 50 years
|
Pipelines
and pipeline improvements
|
5
to 20 years
|
Furniture,
fixtures and other
|
3
to 10 years
|
December
31,
|
|||||||
2006
|
2005
|
||||||
(in
thousands)
|
|||||||
Crude
oil
|
$
|
182,215
|
$
|
97,766
|
|||
Unfinished
products
|
84,682
|
53,200
|
|||||
Finished
products
|
89,457
|
75,790
|
|||||
Process
chemicals
|
1,009
|
5,441
|
|||||
Repairs
and maintenance supplies and other
|
17,213
|
15,424
|
|||||
$
|
374,576
|
$
|
247,621
|
Years
Ended December 31,
|
|||||||
2005
As
Adjusted
(Note
3)
|
2004
As
Adjusted
(Note
3)
|
||||||
(
in
thousands, except per share amounts
)
|
|||||||
Net
income
|
$
|
275,158
|
$
|
69,392
|
|||
Pro
forma compensation expense, net of tax
|
(1,255
|
)
|
(2,029
|
)
|
|||
Pro
forma net income
|
$
|
273,903
|
$
|
67,363
|
|||
Basic
EPS:
|
|||||||
As
reported
|
$
|
2.49
|
$
|
0.65
|
|||
Pro
forma
|
2.47
|
0.63
|
|||||
Diluted
EPS:
|
|||||||
As
reported
|
$
|
2.42
|
$
|
0.63
|
|||
Pro
forma
|
2.41
|
0.61
|
Year
ended December 31,
2006
|
||||
(in
thousands)
|
||||
Asset
retirement obligation, beginning of period
|
$
|
5,468
|
||
Liabilities
settled
|
(255
|
)
|
||
Accretion
expense
|
366
|
|||
Revisions
to estimated cash flows
|
385
|
|||
Asset
retirement obligation, end of period
|
$
|
5,964
|
3. |
Change
in Accounting Principle - Turnarounds
|
Year
ending December 31,
|
|||||||||||||||||||
2005
|
2004
|
||||||||||||||||||
As
Originally Reported
|
As
Adjusted
|
Change
|
As
Originally Reported
|
As
Adjusted
|
Change
|
||||||||||||||
(in
thousands)
|
|||||||||||||||||||
Consolidated
Statements of Income:
|
|||||||||||||||||||
Refinery
operating expenses,
excluding
depreciation
|
$
|
245,449
|
$
|
241,445
|
$
|
(4,004
|
)
|
$
|
219,781
|
$
|
220,427
|
$
|
646
|
||||||
Income
before income taxes
|
443,251
|
447,255
|
4,004
|
112,103
|
111,457
|
(646
|
)
|
||||||||||||
Provision
for income taxes
|
168,216
|
169,594
|
1,378
|
42,339
|
42,065
|
(274
|
)
|
||||||||||||
Income
before cumulative effect
of
accounting change
|
275,035
|
277,661
|
2,626
|
69,764
|
69,392
|
(372
|
)
|
||||||||||||
Net
income
|
$
|
272,532
|
$
|
275,158
|
$
|
2,626
|
$
|
69,764
|
$
|
69,392
|
$
|
(372
|
)
|
||||||
Basic
earnings per share:
|
|||||||||||||||||||
Before
cumulative effect of
accounting
change
|
$
|
2.48
|
$
|
2.51
|
$
|
0.03
|
$
|
0.65
|
$
|
0.65
|
$
|
-
|
|||||||
Cumulative
effect of accounting change
|
(0.02
|
)
|
(0.02
|
)
|
-
|
-
|
-
|
-
|
|||||||||||
Net
income
|
$
|
2.46
|
$
|
2.49
|
$
|
0.03
|
$
|
0.65
|
$
|
0.65
|
$
|
-
|
|||||||
Diluted
earnings per share:
|
|||||||||||||||||||
Before
cumulative effect of
accounting
change
|
$
|
2.42
|
$
|
2.44
|
$
|
0.02
|
$
|
0.64
|
$
|
.63
|
$
|
(0.01
|
)
|
||||||
Cumulative
effect of accounting change
|
(0.02
|
)
|
(0.02
|
)
|
-
|
-
|
-
|
-
|
|||||||||||
Net
income
|
$
|
2.40
|
$
|
2.42
|
$
|
0.02
|
$
|
0.64
|
$
|
.63
|
$
|
(0.01
|
)
|
||||||
Consolidated
Statements of Cash Flows:
|
|||||||||||||||||||
Net
income
|
$
|
272,532
|
$
|
275,158
|
$
|
2,626
|
$
|
69,764
|
$
|
69,392
|
$
|
(372
|
)
|
||||||
Adjustments
to reconcile net income to
net
income from operating activities:
|
|||||||||||||||||||
Depreciation
and amortization
|
35,213
|
47,546
|
12,333
|
32,208
|
45,252
|
13,044
|
|||||||||||||
Deferred
income taxes
|
28,881
|
30,259
|
1,378
|
25,005
|
24,731
|
(274
|
)
|
||||||||||||
Deferred
charges and other
|
(271
|
)
|
(17,316
|
)
|
(17,045
|
)
|
2,458
|
(8,055
|
)
|
(10,513
|
)
|
||||||||
Increase
in long-term
accrued
liabilities
|
6,442
|
4,473
|
(1,969
|
)
|
(2,645
|
)
|
431
|
3,076
|
|||||||||||
Increase
in current accrued liabilities
and
other
|
34,200
|
36,877
|
2,677
|
16,629
|
11,668
|
(4,961
|
)
|
||||||||||||
Net
cash provided by
operating
activities
|
$
|
360,337
|
$
|
360,337
|
$
|
-
|
$
|
177,899
|
$
|
177,899
|
$
|
-
|
December
31, 2005
|
||||||||||
As
Originally Reported
|
As
Adjusted
|
Change
|
||||||||
(in
thousands)
|
||||||||||
Consolidated
Balance Sheet:
|
||||||||||
Deferred
tax assets
|
$
|
6,819
|
$
|
2,004
|
$
|
(4,815
|
)
|
|||
Deferred
charges and other assets
|
2,588
|
28,951
|
26,363
|
|||||||
Total
assets
|
$
|
1,201,509
|
$
|
1,223,057
|
$
|
21,548
|
||||
Accrued
turnaround costs
|
$ |
12,696
|
$ |
-
|
$ |
(12,696
|
)
|
|||
Long-term
accrued turnaround costs
|
15,122
|
-
|
(15,122
|
)
|
||||||
Deferred
income taxes
|
70,727
|
86,460
|
15,733
|
|||||||
Retained
earnings
|
319,150
|
352,783
|
33,633
|
|||||||
Total
shareholders
’
equity
|
445,059
|
478,692
|
33,633
|
|||||||
Total
liabilities and
shareholders’
equity
|
$
|
1,201,509
|
$
|
1,223,057
|
$
|
21,548
|
4. |
Long-term
Debt
|
December
31,
|
|||||||
2006
|
2005
|
||||||
(in
thousands)
|
|||||||
6.625%
Senior Notes, maturing 2011
|
$
|
150,000
|
$
|
150,000
|
5. |
Revolving
Credit Facility
|
6. |
Income
Taxes
|
Years
ended December 31,
|
||||||||||
2006
|
2005
As
Adjusted (Note 3)
|
2004
As
Adjusted (Note 3)
|
||||||||
(in
thousands)
|
||||||||||
Current:
|
||||||||||
Federal
|
$
|
168,950
|
$
|
121,455
|
$
|
13,959
|
||||
State
|
25,814
|
17,880
|
3,375
|
|||||||
Total
current provision
|
194,764
|
139,335
|
17,334
|
|||||||
Deferred:
|
||||||||||
Federal
|
5,269
|
28,065
|
23,166
|
|||||||
State
|
804
|
2,194
|
1,565
|
|||||||
Total
deferred provision
|
6,073
|
30,259
|
24,731
|
|||||||
Total
provision
|
$
|
200,837
|
$
|
169,594
|
$
|
42,065
|
||||
Years
ended December 31,
|
||||||||||
2006
|
2005
As
Adjusted
(Note
3)
|
2004
As
Adjusted
(Note
3)
|
||||||||
(in
thousands)
|
||||||||||
Provision
based on statutory rates
|
$
|
203,040
|
$
|
156,539
|
$
|
39,010
|
||||
Increase
(decrease) resulting from:
|
||||||||||
State
income taxes
|
26,618
|
20,074
|
4,940
|
|||||||
Federal
tax effect of state income taxes
|
(9,316
|
)
|
(7,026
|
)
|
(1,729
|
)
|
||||
Benefit
of the Section 199 manufacturers
production
activities deduction
|
(5,666
|
)
|
(3,229
|
)
|
-
|
|||||
Benefit
of ultra-low sulfur diesel tax credit
|
(14,546
|
)
|
-
|
-
|
||||||
Release
of valuation allowance
|
-
|
-
|
(955
|
)
|
||||||
Other,
including permanent book-tax differences
|
707
|
3,236
|
799
|
|||||||
Provision
as reported
|
$
|
200,837
|
$
|
169,594
|
$
|
42,065
|
December
31, 2006
|
December
31, 2005
As
Adjusted (Note 3)
|
||||||||||||||||||
State
|
Federal
|
Total
|
State
|
Federal
|
Total
|
||||||||||||||
(in
thousands)
|
|||||||||||||||||||
Current
deferred tax assets:
|
|||||||||||||||||||
Gross
current assets:
|
|||||||||||||||||||
Accrued
bonuses
|
$
|
545
|
$
|
4,240
|
$
|
4,785
|
$
|
356
|
$
|
2,772
|
$
|
3,128
|
|||||||
Stock-based
compensation
|
94
|
734
|
828
|
24
|
183
|
207
|
|||||||||||||
Other
|
235
|
2,505
|
2,740
|
212
|
1,793
|
2,005
|
|||||||||||||
Total
gross deferred tax assets
|
874
|
7,479
|
8,353
|
592
|
4,748
|
5,340
|
|||||||||||||
Gross
current liabilities:
|
|||||||||||||||||||
Prepaid
expenses
|
(374
|
)
|
(2,902
|
)
|
(3,276
|
)
|
(342
|
)
|
(2,663
|
)
|
(3,005
|
)
|
|||||||
State
income tax receivable or prepaid
|
-
|
(496
|
)
|
(496
|
)
|
-
|
(243
|
)
|
(243
|
)
|
|||||||||
State
deferred taxes
|
-
|
(126
|
)
|
(126
|
)
|
-
|
(88
|
)
|
(88
|
)
|
|||||||||
Unrealized
gain on derivative contracts
|
(139
|
)
|
(1,079
|
)
|
(1,218
|
)
|
-
|
-
|
-
|
||||||||||
Total
current net deferred tax assets
|
$
|
361
|
$
|
2,876
|
$
|
3,237
|
$
|
250
|
$
|
1,754
|
$
|
2,004
|
|||||||
Long-term
deferred tax liabilities:
|
|||||||||||||||||||
Gross
long-term assets:
|
|||||||||||||||||||
Pension
and other post-retirement benefits
|
$
|
1,265
|
$
|
9,832
|
$
|
11,097
|
$
|
1,090
|
$
|
8,479
|
$
|
9,569
|
|||||||
Stock-based
compensation
|
628
|
4,878
|
5,506
|
-
|
-
|
-
|
|||||||||||||
Environmental
liability accrual
|
315
|
2,450
|
2,765
|
67
|
525
|
592
|
|||||||||||||
Asset
retirement obligations
|
254
|
1,974
|
2,228
|
231
|
1,800
|
2,031
|
|||||||||||||
Other
|
172
|
1,340
|
1,512
|
144
|
1,120
|
1,264
|
|||||||||||||
State
deferred taxes
|
-
|
3,879
|
3,879
|
-
|
3,553
|
3,553
|
|||||||||||||
Total
gross long-term assets
|
2,634
|
24,353
|
26,987
|
1,532
|
15,477
|
17,009
|
|||||||||||||
Gross
long-term liabilities:
|
|||||||||||||||||||
Depreciation
|
(12,606
|
)
|
(98,554
|
)
|
(111,160
|
)
|
(10,495
|
)
|
(82,560
|
)
|
(93,055
|
)
|
|||||||
Deferred
turnaround costs
|
(1,110
|
)
|
(8,624
|
)
|
(9,734
|
)
|
(1,187
|
)
|
(9,227
|
)
|
(10,414
|
)
|
|||||||
Total
long-term net deferred tax liabilities
|
$
|
(11,082
|
)
|
$
|
(82,825
|
)
|
$
|
(93,907
|
)
|
$
|
(10,150
|
)
|
$
|
(76,310
|
)
|
$
|
(86,460
|
)
|
7. |
Common
Stock
|
2006
|
2005
As
Adjusted (Note 3)
|
2004
As
Adjusted (Note 3)
|
||||||||||||||||||||||||||
Income
(Num-erator)
|
Shares
(Denomi-nator)
|
Per
Share Amount
|
Income
(Num-erator)
|
Shares
(Denomi-nator)
|
Per
Share Amount
|
Income
(Num-erator)
|
Shares
(Denomi-nator)
|
Per
Share Amount
|
||||||||||||||||||||
(
in
thousands except per share amounts)
|
||||||||||||||||||||||||||||
Basic
EPS:
|
||||||||||||||||||||||||||||
Net
income
|
$
|
379,277
|
111,408
|
$
|
3.40
|
$
|
275,158
|
110,724
|
$
|
2.49
|
$
|
69,392
|
106,692
|
$
|
0.65
|
|||||||||||||
Dilutive
securities:
|
||||||||||||||||||||||||||||
Stock
options
|
-
|
565
|
-
|
-
|
2,792
|
-
|
-
|
2,871
|
-
|
|||||||||||||||||||
Restricted
stock
|
-
|
539
|
-
|
-
|
120
|
-
|
-
|
41
|
-
|
|||||||||||||||||||
Diluted
EPS:
|
||||||||||||||||||||||||||||
Net
income
|
$
|
379,277
|
112,512
|
$
|
3.37
|
$
|
275,158
|
113,636
|
$
|
2.42
|
$
|
69,392
|
109,604
|
$
|
0.63
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Restricted
shares and units
|
$
|
8,539
|
$
|
1,362
|
$
|
1,180
|
||||
Stock
options
|
2,110
|
-
|
-
|
|||||||
Performance-based
awards
|
7,290
|
-
|
-
|
|||||||
Stock
grant to retiring executive (3,030 shares)
|
90
|
-
|
-
|
|||||||
Total
stock-based compensation expense
|
$
|
18,029
|
$
|
1,362
|
$
|
1,180
|
||||
Income
tax benefit recognized in the income statement
|
$
|
6,851
|
$
|
518
|
$
|
448
|
2006
|
2005
|
2004
|
||||||||||||||||||||
Number
of Awards
|
Weighted-Average
Exercise Price
|
Aggregate
Intrinsic Value of Options
(
in
thousands)
|
Number
of Awards
|
Weighted-Average
Exercise Price
|
Number
of Awards
|
Weighted-Average
Exercise Price
|
||||||||||||||||
Outstanding
at
beginning
of year
|
1,381,700
|
$
|
4.3515
|
8,353,800
|
$
|
3.9935
|
12,286,100
|
$
|
3.3025
|
|||||||||||||
Granted
|
493,226
|
29.3850
|
-
|
-
|
180,000
|
4.6625
|
||||||||||||||||
Exercised
or issued
|
(842,800
|
)
|
4.3560
|
(6,935,300
|
)
|
3.9195
|
(4,103,900
|
)
|
1.9538
|
|||||||||||||
Expired
|
-
|
-
|
(36,800
|
)
|
4.5005
|
(8,400
|
)
|
5.4625
|
||||||||||||||
Outstanding
at end
of
year
|
1,032,126
|
$
|
13,147
|
1,381,700
|
4.3515
|
8,353,800
|
3.9935
|
|||||||||||||||
Vested
or expected to
vest
at end of year
|
1,021,207
|
$
|
13,147
|
1,381,700
|
8,353,800
|
|||||||||||||||||
Exercisable
at end
of
year
|
501,400
|
$
|
12,444
|
640,700
|
4.5115
|
5,840,200
|
3.7555
|
|||||||||||||||
Weighted-average
fair
value
of options
granted
during the
year
|
9.615
|
-
|
1.9175
|
2006
|
2005
|
2004
|
|||||||||||||||||
Shares/
Units
|
Weighted-Average
Grant-Date Market Value
|
Shares/
Units
|
Weighted-Average
Grant-Date Market Value
|
Shares/
Units
|
Weighted-Average
Grant-Date Market Value
|
||||||||||||||
Nonvested
at
beginning
of year
|
415,692
|
$
|
8.8870
|
218,792
|
$
|
4.8575
|
834,316
|
$
|
3.1569
|
||||||||||
Granted
|
459,966
|
26.4773
|
465,616
|
8.9124
|
-
|
-
|
|||||||||||||
Vested
|
(162,622
|
)
|
16.2865
|
(254,696
|
)
|
5.5057
|
(603,724
|
)
|
2.5074
|
||||||||||
Forfeited
|
-
|
-
|
(14,020
|
)
|
8.2750
|
(11,800
|
)
|
4.8575
|
|||||||||||
Nonvested
at e
nd
of year
|
713,036
|
18.5465
|
415,692
|
8.8870
|
218,792
|
4.8575
|
8. |
Employee
Benefit Plans
|
Pension
Benefits
|
Post-retirement
Healthcare and Other Benefits
(1)
|
||||||||||||
2006
|
2005
|
|
2006
|
2005
|
|||||||||
(in
thousands)
|
|||||||||||||
Change
in benefit obligation:
|
|||||||||||||
Benefit
obligation at January 1
|
$
|
9,942
|
$
|
11,810
|
$
|
41,181
|
$
|
29,039
|
|||||
Service
cost
|
-
|
-
|
1,011
|
1,130
|
|||||||||
Interest
cost
|
541
|
526
|
2,075
|
2,093
|
|||||||||
Plan
participant contributions
|
-
|
-
|
49
|
25
|
|||||||||
Actuarial
(gain)/losses
|
(246
|
)
|
(2,210
|
)
|
(2,772
|
)
|
9,077
|
||||||
Amendments
|
-
|
-
|
(13,115
|
)
|
-
|
||||||||
Benefits
paid
|
(266
|
)
|
(184
|
)
|
(206
|
)
|
(183
|
)
|
|||||
Benefit
obligation at December 31
|
$
|
9,971
|
$
|
9,942
|
$
|
28,223
|
$
|
41,181
|
|||||
Change
in plan assets:
|
|||||||||||||
Fair
value of plan assets at January 1
|
$
|
8,279
|
$
|
6,915
|
$
|
-
|
$
|
-
|
|||||
Actual
return on plan assets
|
963
|
374
|
-
|
-
|
|||||||||
Employer
contribution
|
692
|
1,174
|
156
|
158
|
|||||||||
Plan
participant contributions
|
-
|
-
|
50
|
25
|
|||||||||
Benefits
paid
|
(266
|
)
|
(184
|
)
|
(206
|
)
|
(183
|
)
|
|||||
Fair
value of plan assets at December 31
|
$
|
9,668
|
$
|
8,279
|
$
|
-
|
$
|
-
|
|||||
Funded
status at December 31
|
$
|
(303
|
)
|
$
|
(1,663
|
)
|
$
|
(28,223
|
)
|
$
|
(41,181
|
)
|
|
Unrecognized
net actuarial (gain) loss
|
-
|
(43
|
)
|
-
|
17,174
|
||||||||
Net
amount recognized
|
$
|
(303
|
)
|
$
|
(1,706
|
)
|
$
|
(28,223
|
)
|
$
|
(24,007
|
)
|
|
Amounts
recognized in the balance sheets:
|
|||||||||||||
Current
liabilities and other
|
$
|
-
|
n/a
|
$
|
(436
|
)
|
n/a
|
||||||
Post-retirement
employee liabilities
|
(303
|
)
|
n/a
|
(27,787
|
)
|
n/a
|
|||||||
Net
amount recognized
|
$
|
(303
|
)
|
n/a
|
$
|
(28,223
|
)
|
n/a
|
|||||
Amounts
recognized in accumulated OCI:
|
|||||||||||||
(Gain)
loss
|
$
|
(611
|
)
|
$
|
(43
|
)
|
$
|
13,314
|
$
|
-
|
|||
Amendments
(gain) (3)
|
-
|
-
|
(13,115
|
)
|
-
|
||||||||
$
|
(611
|
)
|
$
|
(43
|
)
|
$
|
199
|
$
|
-
|
Pension
Benefits
|
Post-retirement
Healthcare
and
Other Benefits
|
||||||||||||||||||
2006
|
2005
|
2004
|
2006
|
2005
|
2004
|
||||||||||||||
(in
thousands)
|
|||||||||||||||||||
Components
of net periodic benefit
cost
for the year ended December 31:
|
|||||||||||||||||||
Service
cost
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,011
|
$
|
1,130
|
$
|
863
|
|||||||
Interest
cost
|
541
|
526
|
632
|
2,075
|
2,093
|
1,460
|
|||||||||||||
Expected
return on plan assets
|
(640
|
)
|
(606
|
)
|
(479
|
)
|
-
|
-
|
-
|
||||||||||
Recognized
net actuarial loss
|
-
|
-
|
22
|
1,087
|
1,525
|
490
|
|||||||||||||
Net
periodic benefit cost
|
$
|
(99
|
)
|
$
|
(80
|
)
|
$
|
175
|
$
|
4,173
|
$
|
4,748
|
$
|
2,813
|
|||||
Weighted
average assumptions:
|
|||||||||||||||||||
Benefit
obligation discount rate
as
of December 31
|
5.75
|
%
|
5.50
|
%
|
5.50
|
%
|
5.75
|
%
|
5.50
|
%
|
5.50
|
%
|
|||||||
Net
periodic benefit cost discount rate
for
the year ended December 31
|
5.50
|
%
|
5.50
|
%
|
6.00
|
%
|
5.50
|
%
|
5.50
|
%
|
6.00
|
%
|
|||||||
Expected
return on plan assets (2)
|
7.50
|
%
|
8.00
|
%
|
8.00
|
%
|
-
|
-
|
-
|
||||||||||
Salary
increases
|
n/a
|
n/a
|
n/a
|
-
|
-
|
-
|
(1)
|
The
disclosed post-retirement healthcare obligations and net periodic
costs
for 2006 and 2005 reflect government subsidies for prescription drugs
as
allowed under the Medicare Prescription Drug, Improvement and
Modernization Act. The subsidy reduced the benefit obligation at
December
31, 2006 and 2005, by approximately $5.3 million and $4.8 million,
respectively.
|
(2)
|
The
cash balance pension plan assumes a 7.5% expected long-term rate
of return
on assets based on a blend of historic returns of equity and debt
securities. Actual returns on the Company’s plan assets have averaged
nearly the same as expected returns for the two years ended December
31,
2006.
|
Post-retirement
Healthcare
and
Other Benefits
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(dollars
in thousands)
|
||||||||||
Healthcare
cost-trend rate:
|
10.00
|
%
|
11.00
|
%
|
13.00
|
%
|
||||
|
ratable
to
|
ratable
to
|
ratable
to
|
|||||||
5.00
|
%
|
5.00
|
%
|
5.00
|
%
|
|||||
from
2012
|
from
2008
|
from
2008
|
||||||||
Sensitivity
Analysis:
|
||||||||||
Effect
of 1% (-1%) change in healthcare cost-trend rate:
|
||||||||||
Year-end
benefit obligation
|
$
|
4,761
|
$
|
8,641
|
$
|
6,094
|
||||
(3,852
|
)
|
(6,784
|
)
|
(4,767
|
)
|
|||||
Total
service and interest cost
|
662
|
720
|
502
|
|||||||
(519
|
)
|
(560
|
)
|
(392
|
)
|
Estimated
future benefit payments
for
years ending December 31,
(in
thousands)
|
Pension
Benefits
|
Post-retirement
Healthcare
and
Other Benefits
|
||||||||
Payment
|
Payment
|
Subsidy
Receipts
|
||||||||
2007
|
$
|
189
|
$
|
436
|
$
|
-
|
||||
2008
|
151
|
693
|
21
|
|||||||
2009
|
245
|
992
|
28
|
|||||||
2010
|
352
|
1,294
|
41
|
|||||||
2011
|
512
|
1,653
|
53
|
|||||||
Next
5 fiscal years thereafter
|
5,620
|
12,581
|
662
|
|||||||
December
31, 2006:
|
Before
Application of FAS No. 158
|
Adjustments
|
After
Application of FAS No. 158
|
|||||||
(in
thousands)
|
||||||||||
Post-retirement
employee liabilities
|
$
|
28,460
|
$
|
(370
|
)
|
$
|
28,090
|
|||
Deferred
income taxes
|
93,766
|
141
|
93,907
|
|||||||
Accumulated
other comprehensive income
|
27
|
229
|
256
|
|||||||
Total
shareholders’ equity
|
775,625
|
229
|
775,854
|
Percentage
of Plan Assets
at
December 31,
|
|||||||
2006
|
2005
|
||||||
Asset
Category:
|
|||||||
Cash
equivalents
|
7
|
%
|
10
|
%
|
|||
Equity
common trust funds
|
69
|
%
|
52
|
%
|
|||
Fixed
income common trust funds
|
24
|
%
|
26
|
%
|
|||
Stock
fund common trust funds
|
-
|
8
|
%
|
||||
Common
stock
|
-
|
4
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
· |
except
for limitations on investing Fund assets in Company securities or
real
property, the trustee may invest and reinvest in any property, real,
personal or mixed, wherever situated, including, without limitation,
common and preferred stocks, bonds, notes, debentures, mutual funds,
leaseholds, mortgages, certificates of deposit, and oil, mineral
or gas
properties, royalties, interests or
rights;
|
· |
to
make commingled, collective or common investments and to invest or
reinvest all or any portion of the pension plan assets with funds
of other
pension and profit sharing trusts exempt from tax under section 501(a)
of
the Internal Revenue Code; and
|
· |
to
deposit or invest all or a part of the Fund in savings accounts,
certificates of deposit or other deposits which bear a reasonable
rate of
interest in a bank or similar financial institution, including the
commercial department of the
trustee.
|
9. |
Commitments
and Contingencies
|
· |
New
Source Review (“NSR”) - a program requiring permitting of certain facility
modifications,
|
· |
New
Source Performance Standards - a program establishing emission standards
for new emission sources as defined in the regulations,
|
· |
Benzene
Waste National Elimination System for Hazardous Air Pollutants (“NESHAPS”)
- a program limiting the amount of benzene allowable in industrial
wastewaters, and
|
· |
Leak
Detection and Repair (“LDAR”) - a program designed to control hydrocarbon
emissions from refinery pipes, pumps and valves.
|
10. |
Fair
Value of Financial
Instruments
|
11. |
Price
Risk Management Activities
|
· |
Crude
Purchases.
As
of December 31, 2006, the Company had open derivative contracts held
on
Frontier’s behalf by Utexam on 1,050,000 barrels of crude oil to hedge
in-transit Canadian crude oil costs for the El Dorado Refinery. At
December 31, 2006, these positions had a $1.2 million unrealized
gain.
During the year ended December 31, 2006, the Company reported in
“Other
revenues” $14.6 million (including the previously mentioned $1.2 million
unrealized amount), in net gains on positions to hedge in-transit
crude
oil, mainly Canadian crude oil for the El Dorado Refinery. During
the year
ended December 31, 2005, the Company reported in “Other revenues” a net
$461,000 loss on positions to hedge in-transit Canadian crude oil for
the El Dorado Refinery.
|
· |
Derivative
contracts on barrels of crude oil to hedge excess intermediate, finished
product and crude oil inventory for both the Cheyenne and El Dorado
Refineries.
As
of December 31, 2006, the Company had open derivative contracts on
1,649,000 barrels of crude oil to hedge crude oil, intermediate or
finished product inventory.
At
December 31, 2006, these positions had a $1.3 million unrealized
gain.
During the year ended December 31, 2006, the Company reported in
“Other
revenues” $15.9 million (including the previously mentioned $1.3 million
unrealized amount), in net gains on positions
to
hedge crude oil, intermediate or finished product inventory. During
the
years ended December 31, 2005 and 2004, the Company recorded a $1.4
million gain and an $8.1 million loss, respectively, on these types
of
positions.
|
· |
Derivative
contracts to fix the heavy crude differential to the New York Mercantile
Exchange light crude oil contract price for a portion of the committed
purchases under the Company’s crude oil supply agreement with
Baytex.
During the years ended December 31, 2006 and 2005, the Company did
not
purchase any derivative contracts for this purpose.
During
the year ended December 31, 2004, the Company recorded losses of
approximately $2.5 million on contracts purchased for this purpose.
|
CONSOLIDATING
FINANCIAL STATEMENTS
|
||||||||||||||||
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Statement of Income
|
||||||||||||||||
For
the Year Ended December 31, 2006
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
FHI
(Guarantor Subsidiaries)
|
Other
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||
Revenues:
|
||||||||||||||||
Refined
products
|
$
|
-
|
$
|
4,759,661
|
$
|
-
|
$
|
-
|
$
|
4,759,661
|
||||||
Other
|
4
|
36,146
|
142
|
-
|
36,292
|
|||||||||||
|
4
|
4,795,807
|
142
|
-
|
4,795,953
|
|||||||||||
Costs
and expenses:
|
||||||||||||||||
Raw
material, freight and other costs
|
-
|
3,850,937
|
-
|
-
|
3,850,937
|
|||||||||||
Refinery
operating expenses,
excluding
depreciation
|
-
|
277,129
|
-
|
-
|
277,129
|
|||||||||||
Selling
and general expenses,
excluding
depreciation
|
30,194
|
22,294
|
-
|
-
|
52,488
|
|||||||||||
Depreciation
and amortization
|
88
|
41,502
|
-
|
(377
|
)
|
41,213
|
||||||||||
Gains
on sales of assets
|
(8
|
)
|
-
|
-
|
-
|
(8
|
)
|
|||||||||
30,274
|
4,191,862
|
-
|
(377
|
)
|
4,221,759
|
|||||||||||
Operating
income (loss)
|
(30,270
|
)
|
603,945
|
142
|
377
|
574,194
|
||||||||||
Interest
expense and other
financing
costs
|
11,978
|
3,835
|
-
|
(3,674
|
)
|
12,139
|
||||||||||
Interest
and investment income
|
(12,102
|
)
|
(5,957
|
)
|
-
|
-
|
(18,059
|
)
|
||||||||
Equity
in earnings of subsidiaries
|
(609,265
|
)
|
-
|
-
|
609,265
|
-
|
||||||||||
(609,389
|
)
|
(2,122
|
)
|
-
|
605,591
|
(5,920
|
)
|
|||||||||
Income
before income taxes
|
579,119
|
606,067
|
142
|
(605,214
|
)
|
580,114
|
||||||||||
Provision
for income taxes
|
199,842
|
209,951
|
55
|
(209,011
|
)
|
200,837
|
||||||||||
Net
income
|
$
|
379,277
|
$
|
396,116
|
$
|
87
|
$
|
(396,203
|
)
|
$
|
379,277
|
|||||
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Statement of Income
|
||||||||||||||||
For
the Year Ended December 31, 2005
As
Adjusted (Note 3)
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
FHI
(Guarantor Subsidiaries)
|
Other
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||
Revenues:
|
||||||||||||||||
Refined
products
|
$
|
-
|
$
|
3,999,935
|
$
|
-
|
$
|
-
|
$
|
3,999,935
|
||||||
Other
|
(6
|
)
|
1,143
|
90
|
-
|
1,227
|
||||||||||
|
(6
|
)
|
4,001,078
|
90
|
-
|
4,001,162
|
||||||||||
Costs
and expenses:
|
||||||||||||||||
Raw
material, freight and other costs
|
-
|
3,247,372
|
-
|
-
|
3,247,372
|
|||||||||||
Refinery
operating expenses,
excluding
depreciation
|
-
|
241,445
|
-
|
-
|
241,445
|
|||||||||||
Selling
and general expenses,
excluding
depreciation
|
14,681
|
16,034
|
-
|
-
|
30,715
|
|||||||||||
Merger
termination and legal costs
|
48
|
-
|
-
|
-
|
48
|
|||||||||||
Depreciation
and amortization
|
69
|
35,700
|
-
|
(556
|
)
|
35,213
|
||||||||||
Gains
on sales of assets
|
(3
|
)
|
(3,641
|
)
|
-
|
-
|
(3,644
|
)
|
||||||||
14,795
|
3,536,910
|
-
|
(556
|
)
|
3,551,149
|
|||||||||||
Operating
income (loss)
|
(14,801
|
)
|
464,168
|
90
|
556
|
450,013
|
||||||||||
Interest
expense and other
financing
costs
|
10,593
|
2,009
|
-
|
(2,261
|
)
|
10,341
|
||||||||||
Interest
and investment income
|
(5,905
|
)
|
(1,678
|
)
|
-
|
-
|
(7,583
|
)
|
||||||||
Equity
in earnings of subsidiaries
|
(462,027
|
)
|
-
|
-
|
462,027
|
-
|
||||||||||
(457,339
|
)
|
331
|
-
|
459,766
|
2,758
|
|||||||||||
Income
before income taxes
|
442,538
|
463,837
|
90
|
(459,210
|
)
|
447,255
|
||||||||||
Provision
for income taxes
|
168,910
|
171,921
|
-
|
(171,237
|
)
|
169,594
|
||||||||||
Income
before cumulative effect of
accounting
change
|
273,628
|
291,916
|
90
|
(287,973
|
)
|
277,661
|
||||||||||
Cumulative
effect of accounting
change,
net of income taxes
|
1,530
|
(2,503
|
)
|
-
|
(1,530
|
)
|
(2,503
|
)
|
||||||||
Net
income
|
$
|
275,158
|
$
|
289,413
|
$
|
90
|
$
|
(289,503
|
)
|
$
|
275,158
|
|||||
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Statement of Income
|
||||||||||||||||
For
the Year Ended December 31, 2004
As
Adjusted (Note 3)
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
FHI
(Guarantor Subsidiaries)
|
Other
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||
Revenues:
|
||||||||||||||||
Refined
products
|
$
|
-
|
$
|
2,871,592
|
$
|
-
|
$
|
-
|
$
|
2,871,592
|
||||||
Other
|
(6
|
)
|
(9,932
|
)
|
62
|
-
|
(9,876
|
)
|
||||||||
|
(6
|
)
|
2,861,660
|
62
|
-
|
2,861,716
|
||||||||||
Costs
and expenses:
|
||||||||||||||||
Raw
material, freight and other costs
|
-
|
2,432,461
|
-
|
-
|
2,432,461
|
|||||||||||
Refinery
operating expenses,
excluding
depreciation
|
-
|
220,427
|
-
|
-
|
220,427
|
|||||||||||
Selling
and general expenses,
excluding
depreciation
|
15,590
|
14,303
|
-
|
-
|
29,893
|
|||||||||||
Merger
termination and legal costs
|
3,824
|
-
|
-
|
-
|
3,824
|
|||||||||||
Depreciation
and amortization
|
75
|
32,688
|
-
|
(555
|
)
|
32,208
|
||||||||||
19,489
|
2,699,879
|
-
|
(555
|
)
|
2,718,813
|
|||||||||||
Operating
income (loss)
|
(19,495
|
)
|
161,781
|
62
|
555
|
142,903
|
||||||||||
Interest
expense and other
financing
costs
|
35,004
|
2,609
|
-
|
(40
|
)
|
37,573
|
||||||||||
Interest
and investment income
|
(1,545
|
)
|
(171
|
)
|
-
|
-
|
(1,716
|
)
|
||||||||
Equity
in earnings of subsidiaries
|
(164,392
|
)
|
-
|
-
|
164,392
|
-
|
||||||||||
Gain
on involuntary conversion of assets
|
-
|
(4,411
|
)
|
-
|
-
|
(4,411
|
)
|
|||||||||
(130,933
|
)
|
(1,973
|
)
|
-
|
164,352
|
31,446
|
||||||||||
Income
before income taxes
|
111,438
|
163,754
|
62
|
(163,797
|
)
|
111,457
|
||||||||||
Provision
for income taxes
|
42,046
|
62,155
|
-
|
(62,136
|
)
|
42,065
|
||||||||||
Net
income
|
$
|
69,392
|
$
|
101,599
|
$
|
62
|
$
|
(101,661
|
)
|
$
|
69,392
|
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Balance Sheet
|
||||||||||||||||
As
of December 31, 2006
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
FHI
(Guarantor Subsidiaries)
|
Other
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||
ASSETS
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
215,049
|
$
|
190,430
|
$
|
-
|
$
|
-
|
$
|
405,479
|
||||||
Trade
and other receivables
|
1,363
|
136,099
|
-
|
-
|
137,462
|
|||||||||||
Receivable
from
affiliated
companies
|
-
|
1,254
|
251
|
(1,505
|
)
|
-
|
||||||||||
Inventory
|
-
|
374,576
|
-
|
-
|
374,576
|
|||||||||||
Deferred
tax assets
|
3,237
|
7,846
|
-
|
(7,846
|
)
|
3,237
|
||||||||||
Other
current assets
|
2,082
|
16,380
|
-
|
-
|
18,462
|
|||||||||||
Total
current assets
|
221,731
|
726,585
|
251
|
(9,351
|
)
|
939,216
|
||||||||||
Property,
plant and equipment, at cost:
|
1,301
|
817,332
|
-
|
(5,051
|
)
|
813,582
|
||||||||||
Less
- accumulated depreciation
and
amortization
|
1,054
|
284,034
|
-
|
(8,311
|
)
|
276,777
|
||||||||||
247
|
533,298
|
-
|
3,260
|
536,805
|
||||||||||||
Deferred
financing costs, net
|
2,293
|
459
|
-
|
-
|
2,752
|
|||||||||||
Commutation
account
|
7,290
|
-
|
-
|
-
|
7,290
|
|||||||||||
Prepaid
insurance, net
|
2,120
|
-
|
-
|
-
|
2,120
|
|||||||||||
Other
intangible assets, net
|
-
|
1,316
|
-
|
-
|
1,316
|
|||||||||||
Deferred
charges and other assets
|
2,734
|
31,692
|
-
|
-
|
34,426
|
|||||||||||
Investment
in subsidiaries
|
831,082
|
-
|
-
|
(831,082
|
)
|
-
|
||||||||||
Total
assets
|
$
|
1,067,497
|
$
|
1,293,350
|
$
|
251
|
$
|
(837,173
|
)
|
$
|
1,523,925
|
|||||
Current
Liabilities:
|
||||||||||||||||
Accounts
payable
|
$
|
1,436
|
$
|
388,583
|
$
|
-
|
$
|
-
|
$
|
390,019
|
||||||
Contingent
income tax liabilities
|
28,271
|
-
|
-
|
-
|
28,271
|
|||||||||||
Accrued
dividends
|
3,486
|
-
|
-
|
-
|
3,486
|
|||||||||||
Accrued
interest
|
2,484
|
57
|
-
|
-
|
2,541
|
|||||||||||
Accrued
liabilities and other
|
7,924
|
27,268
|
189
|
-
|
35,381
|
|||||||||||
Total
current liabilities
|
43,601
|
415,908
|
189
|
-
|
459,698
|
|||||||||||
Long-term
debt
|
150,000
|
-
|
-
|
-
|
150,000
|
|||||||||||
Long-term
accrued and other liabilities
|
-
|
41,836
|
-
|
-
|
41,836
|
|||||||||||
Deferred
compensation liability
and
other
|
2,630
|
-
|
-
|
-
|
2,630
|
|||||||||||
Deferred
income taxes
|
93,907
|
97,620
|
(97,620
|
)
|
93,907
|
|||||||||||
Payable
to affiliated companies
|
1,505
|
44,644
|
55
|
(46,204
|
)
|
-
|
||||||||||
Shareholders’
equity
|
775,854
|
693,342
|
7
|
(693,349
|
)
|
775,854
|
||||||||||
Total
liabilities and
shareholders’
equity
|
$
|
1,067,497
|
$
|
1,293,350
|
$
|
251
|
$
|
(837,173
|
)
|
$
|
1,523,925
|
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Statement of Cash Flows
|
||||||||||||||||
For
the Year Ended December 31, 2006
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
|
FHI
(Guarantor
Subsidiaries
|
|
Other
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income
|
$
|
379,277
|
$
|
396,116
|
$
|
87
|
($396,203
|
)
|
$
|
379,277
|
||||||
Adjustments
to reconcile net income to net cash from
operating
activities:
|
||||||||||||||||
Equity
in earnings of subsidiaries
|
(609,265
|
)
|
-
|
-
|
609,265
|
-
|
||||||||||
Depreciation
and amortization
|
88
|
54,677
|
-
|
(377
|
)
|
54,388
|
||||||||||
Deferred
income taxes
|
6,073
|
-
|
-
|
-
|
6,073
|
|||||||||||
Stock-based
compensation expense
|
18,029
|
-
|
-
|
-
|
18,029
|
|||||||||||
Excess
income tax benefits of stock-based compensation
|
(8,881
|
)
|
-
|
-
|
-
|
(8,881
|
)
|
|||||||||
Income
taxes eliminated in Consolidation
|
-
|
208,956
|
55
|
(209,011
|
)
|
-
|
||||||||||
Deferred
finance cost amortization
|
482
|
315
|
-
|
-
|
797
|
|||||||||||
Gains
on sales of assets
|
(8
|
)
|
-
|
-
|
-
|
(8
|
)
|
|||||||||
Long-term
commutation account
|
5,316
|
-
|
-
|
-
|
5,316
|
|||||||||||
Amortization
of long-term prepaid insurance
|
1,211
|
-
|
-
|
-
|
1,211
|
|||||||||||
Increase
in long-term accrued liabilities
|
416
|
8,893
|
-
|
-
|
9,309
|
|||||||||||
Deferred
charges and other
|
(420
|
)
|
(18,424
|
)
|
-
|
-
|
(18,844
|
)
|
||||||||
Changes
in components of working capital
|
19,089
|
(124,306
|
)
|
(80
|
)
|
(853
|
)
|
(106,150
|
)
|
|||||||
Net
cash provided by (used in) operating activities
|
(188,593
|
)
|
526,227
|
62
|
2,821
|
340,517
|
||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Additions
to property, plant and equipment
|
(88
|
)
|
(126,794
|
)
|
-
|
(2,821
|
)
|
(129,703
|
)
|
|||||||
El
Dorado Refinery contingent earn-out payment
|
-
|
(7,500
|
)
|
-
|
-
|
(7,500
|
)
|
|||||||||
Proceeds
from sale of assets
|
8
|
-
|
-
|
-
|
8
|
|||||||||||
Net
cash used in investing activities
|
(80
|
)
|
(134,294
|
)
|
-
|
(2,821
|
)
|
(137,195
|
)
|
|||||||
Cash
flows from financing activities:
|
||||||||||||||||
Excess
income tax benefits of stock-based compensation
|
8,881
|
-
|
-
|
-
|
8,881
|
|||||||||||
Proceeds
from issuance of common stock
|
3,672
|
-
|
-
|
-
|
3,672
|
|||||||||||
Purchase
of treasury stock
|
(98,950
|
)
|
-
|
-
|
-
|
(98,950
|
)
|
|||||||||
Dividends
paid
|
(67,498
|
)
|
-
|
-
|
-
|
(67,498
|
)
|
|||||||||
Other
|
-
|
(13
|
)
|
-
|
-
|
(13
|
)
|
|||||||||
Intercompany
transactions
|
313,260
|
(313,198
|
)
|
(62
|
)
|
-
|
-
|
|||||||||
Net
cash provided by (used in) financing activities
|
159,365
|
(313,211
|
)
|
(62
|
)
|
-
|
(153,908
|
)
|
||||||||
Increase
in cash and cash equivalents
|
(29,308
|
)
|
78,722
|
-
|
-
|
49,414
|
||||||||||
Cash
and cash equivalents, beginning of period
|
244,357
|
111,708
|
-
|
-
|
356,065
|
|||||||||||
Cash
and cash equivalents, end of period
|
$
|
215,049
|
$
|
190,430
|
$
|
-
|
$
|
-
|
$
|
405,479
|
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Statement of Cash Flows
|
||||||||||||||||
For
the Year Ended December 31, 2005 - As Adjusted (Note
3)
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
FHI
(Guarantor Subsidiaries)
|
Other
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income
|
$
|
275,158
|
$
|
289,413
|
$
|
90
|
$
|
(289,503
|
)
|
$
|
275,158
|
|||||
Adjustments
to reconcile net
income
to net cash from
operating
activities:
|
||||||||||||||||
Equity
in earnings of subsidiaries
|
(462,027
|
)
|
-
|
-
|
462,027
|
-
|
||||||||||
Cumulative
effect of accounting
change,
net of income taxes
|
(1,530
|
)
|
2,503
|
-
|
1,530
|
2,503
|
||||||||||
Depreciation
and amortization
|
69
|
48,033
|
-
|
(556
|
)
|
47,546
|
||||||||||
Deferred
income taxes
|
30,259
|
-
|
-
|
-
|
30,259
|
|||||||||||
Income
taxes eliminated in
consolidation
|
-
|
171,237
|
-
|
(171,237
|
)
|
-
|
||||||||||
Deferred
finance cost amortization
|
483
|
302
|
-
|
-
|
785
|
|||||||||||
Stock-based
compensation expense
|
1,363
|
-
|
-
|
-
|
1,363
|
|||||||||||
Gains
on sales of assets
|
(3
|
)
|
(3,641
|
)
|
-
|
-
|
(3,644
|
)
|
||||||||
Long-term
commutation account
|
3,832
|
-
|
-
|
-
|
3,832
|
|||||||||||
Amortization
of long-term
prepaid
insurance
|
1,211
|
-
|
-
|
-
|
1,211
|
|||||||||||
Increase
in long-term
accrued
liabilities
|
698
|
3,775
|
4,473
|
|||||||||||||
Deferred
charges and other
|
(206
|
)
|
(17,110
|
)
|
-
|
-
|
(17,316
|
)
|
||||||||
Changes
in components of
working
capital
|
32,645
|
(18,478
|
)
|
-
|
-
|
14,167
|
||||||||||
Net
cash provided by (used in)
operating
activities
|
(118,048
|
)
|
476,034
|
90
|
2,261
|
360,337
|
||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Additions
to property, plant and
equipment
|
(143
|
)
|
(107,306
|
)
|
-
|
(2,261
|
)
|
(109,710
|
)
|
|||||||
El
Dorado Refinery contingent
earn-out
payment
|
-
|
(7,500
|
)
|
-
|
-
|
(7,500
|
)
|
|||||||||
Proceeds
from sale of assets
|
3
|
5,497
|
-
|
-
|
5,500
|
|||||||||||
Net
proceeds from insurance -
involuntary
conversion claim
|
-
|
2,142
|
-
|
-
|
2,142
|
|||||||||||
Net
cash used in investing activities
|
(140
|
)
|
(107,167
|
)
|
-
|
(2,261
|
)
|
(109,568
|
)
|
|||||||
Cash
flows from financing activities:
|
||||||||||||||||
Proceeds
from issuance of
common
stock
|
23,616
|
-
|
-
|
-
|
23,616
|
|||||||||||
Purchase
of treasury stock
|
(34,819
|
)
|
-
|
-
|
-
|
(34,819
|
)
|
|||||||||
Dividends
paid
|
(7,776
|
)
|
-
|
-
|
-
|
(7,776
|
)
|
|||||||||
Debt
issue costs and other
|
(100
|
)
|
(14
|
)
|
-
|
-
|
(114
|
)
|
||||||||
Intercompany
transactions
|
276,215
|
(276,125
|
)
|
(90
|
)
|
-
|
-
|
|||||||||
Net
cash provided by (used in)
financing
activities
|
257,136
|
(276,139
|
)
|
(90
|
)
|
-
|
(19,093
|
)
|
||||||||
Increase
in cash and cash equivalents
|
138,948
|
92,728
|
-
|
-
|
231,676
|
|||||||||||
Cash
and cash equivalents,
beginning
of period
|
105,409
|
18,980
|
-
|
-
|
124,389
|
|||||||||||
Cash
and cash equivalents,
end
of period
|
$
|
244,357
|
$
|
111,708
|
$
|
-
|
$
|
-
|
$
|
356,065
|
FRONTIER
OIL CORPORATION
|
||||||||||||||||
Condensed
Consolidating Statement of Cash Flows
|
||||||||||||||||
For
the Year Ended December 31, 2004 - As Adjusted (Note
3)
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
FOC
(Parent)
|
|
FHI
(Guarantor Subsidiaries)
|
|
Other
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income
|
$
|
69,392
|
$
|
101,599
|
$
|
62
|
($101,661
|
)
|
$
|
69,392
|
||||||
Adjustments
to reconcile net income to net cash from
operating
activities:
|
||||||||||||||||
Equity
in earnings of
subsidiaries
|
(164,392
|
)
|
-
|
-
|
164,392
|
-
|
||||||||||
Depreciation
and amortization
|
75
|
45,732
|
-
|
(555
|
)
|
45,252
|
||||||||||
Deferred
income taxes
|
24,731
|
-
|
-
|
-
|
24,731
|
|||||||||||
Income
taxes eliminated in
consolidation
|
-
|
62,136
|
-
|
(62,136
|
)
|
-
|
||||||||||
Deferred
finance cost and bond
discount
amortization
|
5,180
|
304
|
-
|
-
|
5,484
|
|||||||||||
Stock-based
compensation expense
|
1,180
|
-
|
-
|
-
|
1,180
|
|||||||||||
Gain
on involuntary conversion
of
assets
|
-
|
(4,411
|
)
|
-
|
-
|
(4,411
|
)
|
|||||||||
Long-term
commutation account
|
3,712
|
-
|
-
|
-
|
3,712
|
|||||||||||
Amortization
of long-term
prepaid
insurance
|
1,451
|
-
|
-
|
-
|
1,451
|
|||||||||||
Increase
(decrease) in long-term
accrued
liabilities
|
(2,207
|
)
|
2,638
|
-
|
-
|
431
|
||||||||||
Deferred
charges and other
|
2,789
|
(10,844
|
)
|
-
|
-
|
(8,055
|
)
|
|||||||||
Changes
in components of
working
capital
|
(496
|
)
|
39,231
|
(3
|
)
|
-
|
38,732
|
|||||||||
Net
cash provided by (used in)
operating
activities
|
(58,585
|
)
|
236,385
|
59
|
40
|
177,899
|
||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Additions
to property, plant and equipment
|
(3
|
)
|
(46,459
|
)
|
-
|
(40
|
)
|
(46,502
|
)
|
|||||||
Net
proceeds from insurance –
involuntary
conversion claim
|
-
|
3,395
|
-
|
-
|
3,395
|
|||||||||||
Net
cash used in investing
activities
|
(3
|
)
|
(43,064
|
)
|
-
|
(40
|
)
|
(43,107
|
)
|
|||||||
Cash
flows from financing activities:
|
||||||||||||||||
Proceeds
from issuance of
6.625%
Senior Notes
|
150,000
|
-
|
-
|
-
|
150,000
|
|||||||||||
Repurchase
of 11.75% Senior Notes
|
(170,449
|
)
|
-
|
-
|
-
|
(170,449
|
)
|
|||||||||
Repayments
of revolving credit
facility,
net
|
-
|
(45,750
|
)
|
-
|
-
|
(45,750
|
)
|
|||||||||
Proceeds
from issuance of
common
stock
|
3,923
|
-
|
-
|
-
|
3,923
|
|||||||||||
Purchase
of treasury stock
|
(3,029
|
)
|
-
|
-
|
-
|
(3,029
|
)
|
|||||||||
Dividends
paid
|
(5,664
|
)
|
-
|
-
|
-
|
(5,664
|
)
|
|||||||||
Debt
issue costs and other
|
(3,279
|
)
|
(675
|
)
|
-
|
-
|
(3,954
|
)
|
||||||||
Intercompany
transactions
|
132,649
|
(132,590
|
)
|
(59
|
)
|
-
|
-
|
|||||||||
Net
cash provided by (used in)
financing
activities
|
104,151
|
(179,015
|
)
|
(59
|
)
|
-
|
(74,923
|
)
|
||||||||
Increase
in cash and cash equivalents
|
45,563
|
14,306
|
-
|
-
|
59,869
|
|||||||||||
Cash
and cash equivalents,
beginning
of period
|
59,846
|
4,674
|
-
|
-
|
64,520
|
|||||||||||
Cash
and cash equivalents,
end
of period
|
$
|
105,409
|
$
|
18,980
|
$
|
-
|
$
|
-
|
$
|
124,389
|
(1
)
|
Charges
are the quantity of crude oil and other feedstock processed through
refinery units.
|
(2)
|
Manufactured
product yields are the volumes of specific materials that are obtained
through the distilling of crude oil and the operations of other refinery
process units.
|
(3)
|
During
the fourth quarter of 2006, the Company adopted a change in accounting
method for the costs for turnarounds from the accrual method to the
deferral method. The new method of accounting for turnarounds was
in order
to adhere to FSP No. AUG AIR-1 “Accounting for Planned Major Maintenance
Activities” which prohibits the accrual method of accounting for planned
major maintenance activities. The Company elected to early adopt
the FSP.
See Note 3 in the “Notes to the Consolidated Financial Statements” for
further information. The following consolidated financial statement
line
items for each of the quarters 2005 and the first three quarters
of 2006
were affected by the change in accounting
principle.
|
2006
|
|||||||||||||||||||
Unaudited
|
Third
Quarter
|
Second
Quarter
|
|||||||||||||||||
As
Originally Reported
|
As
Adjusted
|
Change
|
As
Originally Reported
|
As
Adjusted
|
Change
|
||||||||||||||
(in
thousands, except per share amounts)
|
|||||||||||||||||||
Operating
income
|
$
|
176,501
|
$
|
180,762
|
$
|
4,261
|
$
|
222,291
|
$
|
226,355
|
$
|
4,064
|
|||||||
Net
income
|
120,884
|
123,626
|
2,742
|
143,342
|
145,864
|
2,522
|
|||||||||||||
Basic
earnings per share
|
1.09
|
1.11
|
0.02
|
1.28
|
1.30
|
0.02
|
|||||||||||||
Diluted
earnings per share
|
1.08
|
1.10
|
0.02
|
1.26
|
1.29
|
0.03
|
Unaudited
|
First
Quarter 2006
|
|||||||||
As
Originally
Reported
|
As
Adjusted
|
Change
|
||||||||
(in
thousands, except per share amounts)
|
||||||||||
Operating
income
|
$
|
92,021
|
$
|
91,591
|
$
|
(430
|
)
|
|||
Net
income
|
57,620
|
57,353
|
(267
|
)
|
||||||
Basic
earnings per share
|
0.51
|
0.51
|
-
|
|||||||
Diluted
earnings per share
|
0.51
|
0.51
|
-
|
2005
|
|||||||||||||||||||
Unaudited
|
Fourth
Quarter
|
Third
Quarter
|
|||||||||||||||||
As
Originally Reported
|
As
Adjusted
|
Change
|
As
Originally Reported
|
As
Adjusted
|
Change
|
||||||||||||||
(in
thousands, except per share amounts)
|
|||||||||||||||||||
Operating
income
|
$
|
103,408
|
$
|
103,466
|
$
|
58
|
$
|
177,250
|
$
|
178,656
|
$
|
1,406
|
|||||||
Net
income
|
62,950
|
63,043
|
93
|
109,185
|
110,148
|
963
|
|||||||||||||
Basic
earnings per share
|
0.56
|
0.56
|
-
|
0.98
|
0.98
|
-
|
|||||||||||||
Diluted
earnings per share
|
0.55
|
0.55
|
-
|
0.95
|
0.96
|
0.01
|
2005
|
|||||||||||||||||||
Unaudited
|
Second
Quarter
|
First
Quarter
|
|||||||||||||||||
As
Originally Reported
|
As
Adjusted
|
Change
|
As
Originally Reported
|
As
Adjusted
|
Change
|
||||||||||||||
(in
thousands, except per share amounts)
|
|||||||||||||||||||
Operating
income
|
$
|
107,688
|
$
|
108,145
|
$
|
457
|
$
|
57,663
|
$
|
59,746
|
$
|
2,083
|
|||||||
Net
income
|
65,961
|
66,243
|
282
|
34,436
|
35,724
|
1,288
|
|||||||||||||
Basic
earnings per share
|
0.60
|
0.60
|
-
|
0.32
|
0.33
|
0.01
|
|||||||||||||
Diluted
earnings per share
|
0.58
|
0.58
|
-
|
0.31
|
0.32
|
0.01
|
(a)1.
Financial
Statements and Supplemental Data
|
(a)2.
Financial
Statements Schedules
|
Other
Schedules are omitted because of the absence of the conditions under
which
they are required or because the required information is included
in the
financial statements or notes
thereto.
|
*
|
2.1
|
Asset
Purchase and Sale Agreement, dated as of October 19, 1999, among
Frontier
El Dorado Refining Company, as buyer, the Company, as Guarantor,
and
Equilon Enterprises LLC, as seller (Exhibit 10.1 to Form 8-K, File
Number
1-07627, filed December 1, 1999).
|
*
|
3.1
|
Restated
Articles of Incorporation of Wainoco Oil Corporation (now Frontier
Oil
Corporation) dated August 5, 1987 (Exhibit 3.1.1 to Registration
Statement
No. 333-120643, filed November 19,
2004).
|
*
|
3.2
|
Articles
of Amendment to the Restated Articles of Incorporation of Wainoco
Oil
Corporation (now Frontier Oil Corporation) dated June 14, 1988 (Exhibit
3.1.2 to Registration Statement Number 333-120643, filed November
19,
2004).
|
*
|
3.3
|
Articles
of Amendment to the Restated Articles of Incorporation of Wainoco
Oil
Corporation (now Frontier Oil Corporation) dated April 24, 1992 (Exhibit
3.1.3 to Registration Statement Number 333-120643, filed November
19,
2004).
|
*
|
3.4
|
Articles
of Amendment to the Restated Articles of Incorporation of Wainoco
Oil
Corporation (now Frontier Oil Corporation) dated April 27, 1998 (Exhibit
3.1.4 to Registration Statement Number 333-120643, filed November
19,
2004).
|
*
|
3.5
|
Articles
of Amendment to the Restated Articles of Incorporation of Frontier
Oil
Corporation dated May 23, 2005 (Exhibit 3.1 to Form 8-K, File Number
1-07627, filed May 24, 2005).
|
*
|
3.6
|
Articles
of Amendment to the Restated Articles of Incorporation of Frontier
Oil
Corporation dated June 12, 2006 (Exhibit 3.1 to Form 8-K, File Number
1-07627, filed June 15, 2006).
|
*
|
3.7
|
Fourth
Restated Bylaws of Wainoco Oil Corporation (now Frontier Oil Corporation),
as amended through February 20, 2002 (Exhibit 3.2 to Wainoco Oil
Corporation’s Annual Report on Form 10-K, File Number 1-07627, filed March
10, 1993).
|
*
|
4.1
|
Indenture,
dated as of October 1, 2004, among the Company, as issuer, the guarantors
party thereto and Wells Fargo Bank, N.A., as trustee relating to
the
Company’s 6.625% Senior Notes due 2011 (Exhibit 4.1 to Form 8-K, File
Number1-07627, filed October 4,
2004).
|
*
²
|
10.1
|
Frontier
Deferred Compensation Plan (previously named Wainoco Deferred Compensation
Plan dated October 29, 1993 and filed as Exhibit 10.19 to Form 10-K,
File
Number 1-07627, filed March 17, 1995).
|
*
²
|
10.2
|
Frontier
Deferred Compensation Plan for Directors (previously named Wainoco
Deferred Compensation Plan for Directors dated May 1, 1994 and filed
as
Exhibit 10.20 to Form 10-K, File Number 1-07627, filed March 17,
1995).
|
*
²
|
10.3
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and James R. Gibbs (Exhibit 10.1 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.4
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and W. Reed Williams (Exhibit 10.2 to Form 8-K, File
Number
1-07627, filed February 2, 2006).
|
*
²
|
10.5
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Michael C. Jennings (Exhibit 10.3 to Form 8-K, File
Number
1-07627, filed February 2, 2006).
|
*
²
|
10.6
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Doug S. Aron (Exhibit 10.4 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.7
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and J. Currie Bechtol (Exhibit 10.5 to Form 8-K, File
Number
1-07627, filed February 2, 2006).
|
*
²
|
10.8
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Gerald B. Faudel (Exhibit 10.6 to Form 8-K, File
Number
1-07627, filed February 2, 2006).
|
*
²
|
10.9
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Jon D. Galvin (Exhibit 10.7 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.10
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Nancy J. Zupan (Exhibit 10.8 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.11
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Penny S. Newmark (Exhibit 10.9 to Form 8-K, File
Number
1-07627, filed February 2, 2006).
|
*
²
|
10.12
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Lloyd J. Nordhausen (Exhibit 10.10 to Form 8-K, File
Number 1-07627, filed February 2,
2006).
|
*
²
|
10.13
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Kent A. Olsen (Exhibit 10.11 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.14
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Joel W. Purdy (Exhibit 10.12 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.15
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and Billy N. Rigby (Exhibit 10.13 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.16
|
Executive
Change in Control Severance Agreement effective December 30, 2005,
between
the Company and James M. Stump (Exhibit 10.14 to Form 8-K, File Number
1-07627, filed February 2, 2006).
|
*
²
|
10.17
|
Executive
Change in Control Severance Agreement, effective December 30, 2005,
between the Company and Leo J. Hoonakker (Exhibit 10.1 to Form 8-K,
File
Number 1-07627, filed March 9,
2006).
|
*
²
|
10.18
|
Executive
Change in Control Severance Agreement, effective as of May 30, 2006,
by
and between the Company and W. Paul Eisman (Exhibit 10.1 to Form
8-K,
filed May 31, 2006).
|
*
²
|
10.19
|
Form
of Executive Severance Agreement, effective as of May 30, 2006, by
and
between the Company and each of James R. Gibbs, W. Paul Eisman, Michael
C.
Jennings, Doug S. Aron, J. Currie Bechtol, Gerald B. Faudel, Jon
D.
Galvin, Nancy J. Zupan, Leo J. Hoonakker, Penny S. Newmark, Lloyd
J.
Nordhausen, Kent A. Olsen, Joel W. Purdy, Billy N. Rigby, and James
M.
Stump (Exhibit 10.2 to Form 8-K, File Number 1-07627, filed May 31,
2006).
|
*
|
10.20
|
Crude
Oil Supply Agreement dated October 15, 2002, between Baytex Energy
Ltd.
and Frontier Oil and Refining Company (Exhibit 10.2 to Form 10-Q,
File
Number 1-07627, filed October 30, 2002). On November 28, 2002, this
agreement was assigned by Baytex Energy Ltd. to its wholly-owned
subsidiary, Baytex Marketing Ltd.
|
*
|
10.21
|
Master
Crude Oil Purchase and Sale Contract, dated March 10, 2006, among
Utexam
Limited, Frontier Oil and Refining Company and the Company (Exhibit
10.1
to Form 8-K, File Number 1-07627, filed March 14,
2006).
|
*
|
10.22
|
Guaranty,
dated March 10, 2006, by the Company in favor of Utexam Limited (Exhibit
10.2 to Form 8-K, File Number 1-07627, filed March 14,
2006).
|
*
|
10.23
|
Second
Amended and Restated Revolving Credit Agreement dated November 22,
2004,
among the Company, Frontier Oil and Refining Company, as borrower,
the
lenders named therein, Union Bank of California, N.A., as administrative
agent, and PNB Paribas, as syndication agent (Exhibit 10.1 to Form
8-K,
File Number 1-07627, filed November 24,
2004).
|
*
|
10.24
|
First
Amendment to S
econd
Amended
and
Restated Revolving Credit Agreement, dated February 3, 2006, by Frontier
Oil and Refining Company, the Company, each of the financial institutions
party thereto and Union Bank of California, N.A. (Exhibit 10.1 to
Form
10-Q, File Number 1-07627, filed May 8,
2006).
|
*
|
10.25
|
Second
Amendment to Second Amended
and
Restated Revolving Credit Agreement, dated March 10, 2006, by Frontier
Oil
and Refining Company, the Company, each of the financial institutions
party thereto and Union Bank of California, N.A. (Exhibit 10.2 to
Form
10-Q, File Number 1-07627, filed May 8,
2006).
|
*
²
|
10.26
|
Directors’
Compensation Summary Sheet (Exhibit 10.1 to Form 8-K, File Number
1-07627,
filed April 20, 2005).
|
*
²
|
10.27
|
Frontier
Oil Corporation Omnibus Incentive Compensation Plan (Annex A to Proxy
Statement, File Number 1-07627, filed March 21,
2006).
|
*
²
|
10.28
|
Form
of Frontier Oil Corporation Omnibus Incentive Compensation Plan Stock
Unit/Restricted Stock Agreement (Exhibit 4.8 to Form S-8, File Number
333-133595, filed April 27, 2006).
|
*
²
|
10.29
|
Form
of Frontier Oil Corporation Omnibus Incentive Compensation Plan
Nonqualified Stock Option Agreement (Exhibit 4.9 to Form S-8, File
Number
333-133595, filed April 27, 2006).
|
*
²
|
10.30
|
Form
of Non-Employee Director Restricted Stock Unit Grant Agreement (Exhibit
10.1 to Form 8-K, File Number 1-07627, filed April 7,
2006).
|
*
²
|
10.31
|
Form
of First Amendment to Restricted Stock Unit Grant (Exhibit 10.1 to
Form
10-Q, File Number 1-07627, filed August 7,
2006).
|
*
²
|
10.32
|
Form
of Restricted Stock Agreement (Exhibit 10.2 to Form 8-K, File Number
1-07627, filed April 7, 2006).
|
*
²
|
10.33
|
Summary
of Management Incentive Compensation Plan (Exhibit 10.2 to Form 8-K,
File
Number 1-07627, filed May 6, 2005).
|
*
²
|
10.34
|
Summary
of Long-Term Incentive Compensation Plan for 2005 (Exhibit 10.3 to
Form
8-K, File Number 1-07627, filed May 6,
2005).
|
*
²
|
10.35
|
Letter
Agreement dated May 20, 2005, between the Company and Ms. Julie H.
Edwards
(Exhibit 10.1 to Form 8-K, File Number 1-07627, filed May 24,
2005).
|
*
²
|
10.36
|
Separation
Agreement and Release, effective as of March 7, 2006, between W.
Reed
Williams and the Company (Exhibit 10.1 to Form 8-K, File Number 1-07627,
filed March 15, 2006).
|
*
²
|
10.37
|
Executive
Retiree Medical Benefit Plan (Exhibit 10.3 to Form 10-Q, File Number
1-07627, filed May 8, 2006).
|
*
²
|
10.38
|
Management
Incentive Compensation Plan for 2006 (Exhibit 10.1 to Form 8-K, File
Number 1-07627, filed February 28,
2007).
|
²
|
10.41
|
(b)
|
Exhibits
|
Condensed
Financial Information of Registrant
|
|||
Balance
Sheets
|
Schedule
I
|
|||||||
December
31,
|
|||||||
2006
|
2005
As
Adjusted
(Note
3)
|
||||||
ASSETS
|
(in
thousands)
|
||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
215,049
|
$
|
244,357
|
|||
Trade
and other receivables
|
1,363
|
6,381
|
|||||
Deferred
tax assets
|
3,237
|
2,004
|
|||||
Other
current assets
|
2,082
|
499
|
|||||
Total
current assets
|
221,731
|
253,241
|
|||||
Property,
plant and equipment, at cost:
|
|||||||
Furniture,
fixtures and other
|
1,301
|
1,235
|
|||||
Less
- accumulated depreciation
|
1,054
|
988
|
|||||
247
|
247
|
||||||
Deferred
financing costs, net
|
2,293
|
2,775
|
|||||
Commutation
account
|
7,290
|
12,606
|
|||||
Prepaid
insurance, net
|
2,120
|
3,331
|
|||||
Other
assets
|
2,734
|
2,508
|
|||||
Investment
in subsidiaries
|
831,082
|
537,947
|
|||||
Total
assets
|
$
|
1,067,497
|
$
|
812,655
|
|||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Contingent
income tax liabilities
|
$
|
28,271
|
$
|
21,517
|
|||
Accounts
payable
|
1,436
|
2,480
|
|||||
Accrued
interest
|
2,484
|
2,485
|
|||||
Accrued
dividends
|
3,486
|
58,726
|
|||||
Accrued
liabilities and other
|
7,924
|
5,336
|
|||||
Total
current liabilities
|
43,601
|
90,544
|
|||||
Long-term
debt
|
150,000
|
150,000
|
|||||
Deferred
compensation liability
|
2,630
|
2,214
|
|||||
Deferred
income taxes
|
93,907
|
86,460
|
|||||
Payable
to affiliated companies
|
1,505
|
4,745
|
|||||
Shareholders’
equity
|
775,854
|
478,692
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
1,067,497
|
$
|
812,655
|
Frontier
Oil Corporation
|
|||||
Condensed
Financial Information of Registrant
|
|||||
Statements
of Income
|
Schedule
I
|
||||||||||
Years
Ended December 31,
|
||||||||||
2006
|
2005
As
Adjusted (Note 3)
|
2004
As
Adjusted (Note 3)
|
||||||||
(in
thousands)
|
||||||||||
Revenues
|
$
|
4
|
$
|
(6
|
)
|
$
|
(6
|
)
|
||
4
|
(6
|
)
|
(6
|
)
|
||||||
Costs
and expenses:
|
||||||||||
Selling
and general expenses, excluding depreciation
|
30,194
|
14,681
|
15,590
|
|||||||
Merger
termination and legal costs
|
-
|
48
|
3,824
|
|||||||
Depreciation
|
88
|
69
|
75
|
|||||||
Gain
on sale of assets
|
(8
|
)
|
(3
|
)
|
-
|
|||||
30,274
|
14,795
|
19,489
|
||||||||
Operating
income
|
(30,270
|
)
|
(14,801
|
)
|
(19,495
|
)
|
||||
Interest
expense and other financing costs
|
11,978
|
10,593
|
35,004
|
|||||||
Interest
and investment income
|
(12,102
|
)
|
(5,905
|
)
|
(1,545
|
)
|
||||
Equity
in earnings of subsidiaries
|
(609,265
|
)
|
(462,027
|
)
|
(164,392
|
)
|
||||
(609,389
|
)
|
(457,339
|
)
|
(130,933
|
)
|
|||||
Income
before income taxes
|
579,119
|
442,538
|
111,438
|
|||||||
Provision
for income taxes
|
199,842
|
168,910
|
42,046
|
|||||||
Income
before cumulative effect of accounting change
|
379,277
|
273,628
|
69,392
|
|||||||
Income
tax benefit for cumulative effect
of
accounting change
|
-
|
1,530
|
-
|
|||||||
Net
income
|
$
|
379,277
|
$
|
275,158
|
$
|
69,392
|
Frontier
Oil Corporation
|
|||||
Condensed
Financial Information of Registrant
|
|||||
Statements
of Cash Flows
|
Schedule
I
|
||||||||||
Years
Ended December 31,
|
||||||||||
2006
|
2005
As
Adjusted (Note 3)
|
2004
As
Adjusted (Note 3)
|
||||||||
(in
thousands)
|
||||||||||
Operating
Activities
|
||||||||||
Net
income
|
$
|
379,277
|
$
|
275,158
|
$
|
69,392
|
||||
Equity
in earnings of subsidiaries
|
(609,265
|
)
|
(462,027
|
)
|
(164,392
|
)
|
||||
Cumulative
effect of accounting change,
net
of income taxes
|
-
|
(1,530
|
)
|
-
|
||||||
Depreciation
|
88
|
69
|
75
|
|||||||
Deferred
income taxes
|
6,073
|
30,259
|
24,731
|
|||||||
Stock-based
compensation expense
|
18,029
|
1,363
|
1,180
|
|||||||
Excess
income tax benefits of stock-based compensation
|
(8,881
|
)
|
-
|
-
|
||||||
Deferred
finance cost and bond discount amortization
|
482
|
483
|
5,180
|
|||||||
Long-term
commutation account
|
5,316
|
3,832
|
3,712
|
|||||||
Amortization
of long-term prepaid insurance
|
1,211
|
1,211
|
1,451
|
|||||||
Increase
(decrease) in long-term accrued liabilities
|
416
|
698
|
(2,207
|
)
|
||||||
Other
|
(428
|
)
|
(209
|
)
|
2,789
|
|||||
Changes
in components of working capital
|
19,089
|
32,645
|
(496
|
)
|
||||||
Net
cash used by operating activities
|
(188,593
|
)
|
(118,048
|
)
|
(58,585
|
)
|
||||
Investing
Activities
|
||||||||||
Additions
to property, plant and equipment
|
(88
|
)
|
(143
|
)
|
(3
|
)
|
||||
Proceeds
from sale of assets
|
8
|
3
|
-
|
|||||||
Net
cash used by investing activities
|
(80
|
)
|
(140
|
)
|
(3
|
)
|
||||
Financing
Activities
|
||||||||||
Proceeds
from issuance of common stock
|
3,672
|
23,616
|
3,923
|
|||||||
Purchase
of treasury stock
|
(98,950
|
)
|
(34,819
|
)
|
(3,029
|
)
|
||||
Dividends
paid to shareholders
|
(67,498
|
)
|
(7,776
|
)
|
(5,664
|
)
|
||||
Intercompany
transactions, net
|
(3,240
|
)
|
4,215
|
(202
|
)
|
|||||
Dividends
received from subsidiaries
|
316,500
|
272,000
|
132,851
|
|||||||
Excess
income tax benefits of stock-based compensation
|
8,881
|
-
|
-
|
|||||||
Debt
issue costs
|
-
|
(100
|
)
|
(3,279
|
)
|
|||||
Proceeds
from issuance of 6.625% Senior Notes
|
-
|
-
|
150,000
|
|||||||
Repurchases
of 11.75% Senior Notes
|
-
|
-
|
(170,449
|
)
|
||||||
Net
cash provided by financing activities
|
159,365
|
257,136
|
104,151
|
|||||||
Increase
(decrease) in cash and cash equivalents
|
(29,308
|
)
|
138,948
|
45,563
|
||||||
Cash
and cash equivalents, beginning of period
|
244,357
|
105,409
|
59,846
|
|||||||
Cash
and cash equivalents, end of period
|
$
|
215,049
|
$
|
244,357
|
$
|
105,409
|
Valuation
and Qualifying Accounts
|
|||||||||||||
For
the three years ended December 31,
|
Schedule
II
|
||||||||||||
Description
|
Balance
at beginning of period
|
Additions
|
Deductions
|
Balance
at end of period
|
|||||||||
(in
thousands)
|
|||||||||||||
2006
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
500
|
$
|
26
|
$
|
26
|
$
|
500
|
|||||
2005
|
|||||||||||||
Allowance
for doubtful accounts
|
500
|
-
|
-
|
500
|
|||||||||
2004
|
|||||||||||||
Allowance
for doubtful accounts
|
500
|
-
|
-
|
500
|
|||||||||
Valuation
allowance on deferred
tax
assets
|
1,555
|
-
|
1,555
|
-
|
/s/
James R. Gibbs
|
/s/
T. Michael Dossey
|
||
James
R. Gibbs
|
T.
Michael Dossey
|
||
Chairman
of the Board, President and
|
Director
|
||
Chief
Executive Officer and Director
|
|||
(chief
executive officer)
|
|||
/s/
Michael C. Jennings
|
/s/
James H. Lee
|
||
Michael
C. Jennings
|
James
H. Lee
|
||
Executive
Vice President
|
Director
|
||
Chief
Financial Officer
|
|||
(principal
financial officer)
|
|||
/s/
Nancy J. Zupan
|
/s/
Paul B. Loyd, Jr.
|
||
Nancy
J. Zupan
|
Paul
B. Loyd, Jr.
|
||
Vice
President - Controller
|
Director
|
||
(principal
accounting officer)
|
|||
/s/
Douglas Y. Bech
|
/s/
Michael E. Rose
|
||
Douglas
Y. Bech
|
Michael
E. Rose
|
||
Director
|
Director
|
||
/s/
G. Clyde Buck
|
|||
G.
Clyde Buck
|
|||
Director
|
Annual
Board Retainer
|
$
40,000
|
Board
Meeting Fee
|
$
1,500 per meeting attended
|
Committee
Chair Annual Retainer
|
|
Audit/Compensation
|
$
15,000
|
Committee
Chair Annual Retainer
|
|
Other
Committees
|
$
5,000
|
Committee
Meeting Fee
|
$
1,500 per meeting attended
|
Annual
Equity Grant (1)
|
$
125,000
|
· |
a
salary, reviewed annually by the Compensation Committee of the Board
of
Directors of Frontier;
|
· |
eligibility
for an annual cash bonus, as determined by the Compensation
Committee;
|
· |
eligibility
for awards under Frontier’s Omnibus Incentive Compensation Plan, as
determined by the Compensation
Committee;
|
· |
health,
life, disability, death and other insurance and/or
benefits;
|
· |
defined
contribution pension and savings plan;
and
|
· |
vacation,
paid sick leave and all other employee
benefits.
|
Executive
Officer
|
2007
Annual Base Salary
|
Incentive
Target for 2007 (Percentage of Base Salary)
|
James
R. Gibbs
Chairman
of the Board, Chief Executive Officer and President
|
$885,000
|
100%
|
Michael
C. Jennings
Executive
Vice President-Chief Financial Officer
|
$415,000
|
70%
|
W.
Paul Eisman
Executive
Vice President-Refining & Marketing
|
$430,000
|
70%
|
Jon
D. Galvin
Vice
President
|
$280,000
|
50%
|
Nancy
J. Zupan
Vice
President-Controller
|
$280,000
|
50%
|
J.
Currie Bechtol
Vice
President-General Counsel & Secretary
|
$300,000
|
50%
|
Gerald
B. Faudel
Vice
President-Corporate Relations and Environmental Affairs
|
$220,000
|
40%
|
Doug
S. Aron
Vice
President-Corporate Finance
|
$185,000
|
40%
|
FRONTIER
OIL CORPORATION
|
||
By:
__________________________________
|
||
Name:
|
||
Title:
|
||
__________________________________________ | ||
Officer/Director
|
1. |
I
have reviewed this annual report on Form 10-K of Frontier Oil
Corporation;
|
2. |
Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3. |
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4. |
The
registrant’s other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
a) |
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
5. |
The
registrant’s other certifying officers and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
a) |
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
1. |
I
have reviewed this annual report on Form 10-K of Frontier Oil
Corporation;
|
2. |
Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3. |
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4. |
The
registrant’s other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and the internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
a) |
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding reliability of financial reporting
and the preparation of financial statements for external purposes
in
accordance with generally accepted accounting
principles;
|
c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
5. |
The
registrant’s other certifying officers and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
a) |
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|