Compared to 2008, we continue to expect higher results from our storage segment and comparable or better results
from our transportation segment in 2009; however, results from our asphalt operations will be lower than anticipated
Third and fourth quarter 2009 results from our asphalt operations will be lower than expected primarily due to reduced
product margins
􀂢 Asphalt prices have not kept pace with the over 50% increase in crude oil prices 2009 year-to-date, which reduces our product
margin
􀂢 Our product margin per barrel for the third quarter of 2009 is expected to be in the range of $4.50 to $5.50 per barrel
We expect fourth quarter 2009 earnings from our asphalt operations to follow the typical seasonal pattern of decline
􀂢 Fourth quarter 2009 asphalt prices are forecasted to decline at a faster rate than crude prices
Although we continue to expect that federal stimulus construction work will materialize primarily in 2010 and 2011, only a
small percentage of the dedicated federal stimulus funds have been spent in 2009, or, roughly $1.4 billion of the nearly $27
billion available for highway projects
􀂢 We expect a positive impact to public sector asphalt demand primarily in 2010 and 2011 when most of the federal stimulus
spending is expected to occur
Private sector activity expected to be limited for the balance of 2009 by the continued weak economy
􀂢 Economic recovery should support private sector demand
EBITDA from our asphalt operations now expected to be in the range of $50 to $80 million for the full year of 2009, which,
while not as high as expected earlier in the year, is still a solid contribution in a demonstrably weak worldwide economy
􀂢 The two-year EBITDA contribution on our acquisition of the former CITGO asphalt refineries, excluding the 2008 hedging loss in
our asphalt operations, is expected to be in the range of $200 to $230 million (or $140 million to $170 million including the
hedging loss)
Based on the latest forecast, we now expect third quarter 2009 earnings to be in the range of $0.80 to $1.20 per unit
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