Press Release

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September 04, 2001
Frontier Oil Sees Improved Third Quarter Outlook
Frontier Oil Sees Improved Third Quarter Outlook HOUSTON, Sept. 4 /PRNewswire/ -- Frontier Oil Corporation (NYSE: FTO) announced that it expects to earn at least $0.85 per share for the third quarter compared with $0.36 per share in last year's third quarter and the First Call analysts' consensus estimate of $0.28 per share. The analyst estimate does not take into account the impact of FIFO inventory accounting used by Frontier. With one month remaining in the quarter and in the face of volatile product markets, the Company is uncertain as to the ultimate inventory accounting impact on its quarterly results. Based on current information that assumes a relatively stable pricing environment in September, management expects the FIFO inventory impact to be a positive $0.05 to $0.10 per share for the quarter. The strong expected third quarter results of 2001 raise the Company's estimate for year-end earnings to at least $4.10 per share.

James Gibbs, Chairman, President, and Chief Executive Officer of Frontier, said, "We are pleased to announce an increase in our earnings outlook for the year. After the strength in the refined product markets late last spring, we experienced some weakness in July which was followed by elevated demand in August and entering September. In addition to robust product markets, we continue to see positive crude oil differentials that benefit Frontier since we refine large amounts of heavy and sour crudes. Further, our refineries are operating extremely well as we are maintaining adequate supplies for our customers. While we anticipate some seasonal pullback in gasoline margins, we remain very optimistic about the outlook for the Company going forward." In estimating the results for the remainder of the third quarter, the Company is assuming that operations will continue to run at maximum levels of efficiency, with narrower product margins and a modest seasonal widening of the crude oil differentials. For full year results, the stated range assumes results for the fourth quarter of 2001 more closely in line with current analysts' estimates of $0.22 per share.

INVESTOR PRESENTATION

Mr. Gibbs will make a presentation about Frontier Oil at the Lehman Brothers CEO Conference in New York at 1:20 p.m. EDT today. The conference presentation materials are posted in the Fair Disclosure section of the Company's website at http://www.frontieroil.com. You may listen to the presentation by calling (800) 491-4331 using Company code 1181238 at 1:20 pm today. For those individuals outside the United States, please call (303) 224-6999. A recorded replay may be heard through September 11 at (800) 696-1558 (domestic) and (303) 267-1036 (international) with the Company code 1181238.

Frontier operates a 110,000 barrel-per-day refinery located in El Dorado, Kansas, and a 41,000 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.

This news release includes forward-looking statements concerning the Company. These may include statements of plans or objectives for future operations, statements about future economic performance or assumptions or estimates. The accuracy of these forward-looking statements is subject to a wide range of business risks and changes in circumstances that are described in our reports that are filed from time to time with the Securities and Exchange Commission. Actual results and outcomes often differ from expectations.