For the six months ended June 30, 2008, net income totaled $105.3 million, or $1.02 per diluted share, compared to $318.5 million, or $2.90 per diluted share, for the six months ended June 30, 2007.
Second quarter results were negatively impacted by the weakening US economy and the effect that record high crude oil prices had on the demand for gasoline, causing a drop in gasoline margins from the comparable period in 2007.
In addition, margins on byproducts declined substantially as sales prices for these products increased only modestly compared to the increase in crude prices. Frontier’s second quarter earnings were also affected by reduced throughput resulting from planned turnarounds at both the Cheyenne and El Dorado refineries.
Frontier said that it continues to benefit from its ability to convert discounted heavy, sour crude oils into a premium product slate. The percentage of heavy crude oil processed in the second quarter of 2008 increased to 37.2% from 23.5% in the second quarter of 2007. The light-heavy crude oil differential averaged $22.07 per barrel in the second quarter of 2008, compared to $15.83 in the second quarter of 2007.
