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Table of Contents
Ethanol and Retail Operating Highlights
(millions of dollars, except per gallon amounts)
Year Ended December 31,
2014
2013
Change
Ethanol (d):
Operating income $ 782
$ 491
$ 291
Production (thousand gallons per day) 3,422
3,294
128
Gross margin per gallon of production (e) $ 1.06
$ 0.77
$ 0.29
Operating costs per gallon of production:
Operating expenses 0.39
0.32
0.07
Depreciation and amortization expense 0.04
0.04
—
Total operating costs per gallon of production 0.43
0.36
0.07
Operating income per gallon of production $ 0.63
$ 0.41
$ 0.22
Operating income from above $ 782
$ 491
$ 291
LIFO gain (b) 4
—
4
Total ethanol operating income $ 786
$ 491
$ 295
Retail:
Operating income $ —
$ 81
$ (81)
________________
See note references below.
The following notes relate to references on pages 36 through 40.
(a) In May 2014, we abandoned our Aruba Refinery, except for the associated crude oil and refined products terminal assets that we continue to operate. As a
result, the refinery’s results of operations have been presented as discontinued operations and the operating highlights for the refining segment and the
U.S. Gulf Coast region exclude the Aruba Refinery for all years presented.This transaction is more fully described in Note 2 of Notes to Consolidated
Financial Statements.
(b) Cost of sales for the year ended December 31, 2014 reflects a LIFO gain of $233 million ($151 million after taxes), of which $229 million is attributable
to our refining segment and $4 million is attributable to our ethanol segment. These amounts have been excluded from (1) the segment and regional
throughput margins per barrel and the regional operating income amounts for the refining segment, and (2) the operating income and gross margin per
gallon of production amounts for the ethanol segment.
(c) On May 1, 2013, we completed the separation of our retail business. As a result and effective May 1, 2013, our results of operations no longer include
those of CST, our former retail business. The nature and significance of our post-separation participation in the supply of motor fuel to CST represents a
continuation of activities with CST for accounting purposes. As such, the historical results of operations related to CST have not been reported as
discontinued operations in the statements of income. This transaction is more fully discussed in Note 3 of Notes to Consolidated Financial Statements.
(d) The LIFO gain of $233 million recorded in 2014 (see note (b)) is reflected in refining operating income and ethanol operating income for the year ended
December 31, 2014, but is excluded from throughput margin per barrel and operating income per barrel for the refining segment, and from gross margin
per gallon and operating income per gallon for the ethanol segment, respectively, as also described in note (b).
(e) Throughput margin per barrel represents operating revenues less cost of sales of our refining segment divided by throughput volumes. Gross margin per
gallon of production represents operating revenues less cost of sales of our ethanol segment divided by production volumes.
(f) Other products primarily include petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
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