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Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals) -- Ignore unavailable to you. Want to Upgrade?

To: Ga Bard who wrote (828)	4/17/1998 11:22:00 AM
From: jeffrey rainey	Read Replies (1) \| Respond to of 1757

Union 76 all over Calif Circle K all over Florida Just some numbers to think about,And mull over. biz.yahoo.com operating contribution for 1997 increased by $237 million to $423 million primarily due to the 76 Products and Circle K Acquisitions and higher blended fuel margins. The volume of fuel sales approximately doubled to 4.16 billion gallons and the blended fuel margin increased by 1.2 cents per gallon, despite a higher proportion of dealer/jobber sales resulting from the 76 Products Acquisition. Fuel margins at dealer/jobber sites are typically lower than company-operated sites. The increase in blended fuel margins occurred in the fourth quarter due to declining wholesale product prices without a corresponding decline in retail prices. The retail operating contribution also increased in 1997 due to increased merchandise sales ($2.003 billion in 1997 compared to $1.173 billion in 1996) with reasonably consistent margins. CIRCLE K - Tosco completed its acquisition of The Circle K Corporation ("Circle K") on May 30, 1996 (the "Circle K Acquisition") for total consideration of $444 million in cash and approximately 19.5 million shares of Tosco Common Stock. Circle K has approximately 2,300 company-controlled convenience stores, of which some 1,900 sell gasoline. Tosco is now the largest operator of company-controlled convenience stores in the United States. Operating contribution from Tosco's retail operations increased by $111 million to $186 million for 1996, primarily because of the acquisition of Circle K. Retail volume of fuel sales approximately doubled to 2.06 billion gallons, and the blended fuel margin increased by 1.6 cents per gallon to 11.6 cents per gallon. The fuel margin improvement was primarily attributable to the higher proportion of sales from company-operated stores. Operating contribution from retail operations also improved due to expanded merchandise sales of approximately $1.173 billion for 1996 (with margins of 29.7%). These improved margins were reduced by station operating and other costs of the approximately 2,400 convenience stores acquired in the Circle K acquisition Tosco expects to fund its 1998 refinery and retail capital expenditures from cash provided by operations, available credit, and other resources. Capital spending for retail operations in 1998 will be focused on enhancing existing retail sites, integrating operations, and the completion of Tosco's program to upgrade or replace underground storage tanks to meet federal and state regulatory deadlines. The rebranding of BP service stations in Northern California to the 76 tradename is expected to be completed in the first quarter of 1998. Selling, general