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November 05, 2001
Frontier Oil's Third Quarter Earnings More Than Triple Prior Year
Frontier Oil's Third Quarter Earnings More Than Triple Prior Year HOUSTON, Nov. 5 /PRNewswire/ -- Frontier Oil Corporation (NYSE: FTO) announced record quarterly net income for the three months ended September 30, 2001 of $34.7 million, or $1.27 per share, compared to $10.1 million, or $0.36 per share, in the third quarter of 2000. For the nine months ended September 30, 2001, net income was $118.1 million, or $4.32 per share, compared to $35.9 million, or $1.29 per share, in 2000. The impact of inventory accounting used by Frontier on quarterly earnings was approximately $2.5 million, or $0.09 per share on a FIFO basis. The year-to-date inventory impact was approximately negative $11.5 million, or $0.42 per share. Commenting on the Company's strong performance, Jim Gibbs, Frontier's Chairman, President & CEO said, "We are proud to achieve yet another record quarter. After weak product margins in July, our markets strengthened until the tragic events of September 11th, after which margins deteriorated slightly. We achieved record run rates at both our Cheyenne and El Dorado refineries, allowing us to capture the benefits of the product markets. Importantly, our strong earnings and cash generation of the past six months enabled us to reduce our debt at a much quicker pace than anticipated while building our equity account, positioning us to take advantage of potential growth opportunities."

Total debt outstanding at September 30, 2001 was $211.8 million, down from $220.5 million at June 30 and from $262.6 million at December 31, 2000. Shareholders' equity grew to $182.0 million at September 30, 2001 (after accounting for the acquisition of 600,400 shares during the quarter under the current share repurchase program), up from $156.2 million at June 30 and from $81.4 million at year-end 2000. The Company's cash balance increased to $134.9 million at September 30, 2001, up from $84.0 million at June 30 and from $64.4 million at year-end 2000, resulting in net debt (debt less cash) to book capitalization of 29.7% at September 30.

Frontier's Cheyenne refinery recently received a permit from the Cheyenne Department of Environmental Quality allowing the capacity to be increased to 46,000 barrels per day (bpd) of crude, up from 41,000 bpd. In the next few months, upon the completion of minor equipment upgrades, the Company intends to run at the newly permitted capacity. Frontier is also in the process of applying to increase permitted crude capacity at its El Dorado refinery to 121,000 bpd, up from the current 110,000 bpd capacity.

A conference call is scheduled for this afternoon, November 5, 2001 at 4 pm EST, to discuss third quarter results and the business outlook. To access the call, please dial (888) 869-0374. For those outside the U.S., please call (904) 779-4767. A replay may be heard through November 19 by dialing (800) 252-6030 and entering the passcode 10185241. To access the call or the replay via the Internet, go to http://www.frontieroil.com and register on the Investor Relations page.

Frontier operates a 110,000 barrel-per-day refinery located in El Dorado, Kansas, and a 46,000 barrel-per-day refinery located in Cheyenne, Wyoming, and markets its refined products principally along the eastern slope of the Rocky Mountains and in other neighboring plains states.