Guarantor Subsidiaries

Certain of the Company’s 100% owned, domestic subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guarantee, on a joint and several basis, certain of the outstanding indebtedness of the Company, including the 6.00% senior notes due 2023. The following consolidating schedules present financial information on a consolidated basis in conformity with the SEC’s Regulation S-X Rule 3-10(d):

CONSOLIDATING BALANCE SHEET

(unaudited)



(Thousands of dollars)	September 30, 2016
Assets	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	206,692		$	—		$	—		$	—		$	206,692
Accounts receivable—trade, less allowance for doubtful accounts of $1,988 in 2016	—			139,692			—			—			—			139,692
Inventories, at lower of cost or market	—			152,542			—			—			—			152,542
Prepaid expenses and other current assets	—			29,153			—			—			—			29,153
Total current assets	—			528,079			—			—			—			528,079
Property, plant and equipment, at cost less accumulated depreciation and amortization of $756,305 in 2016	—			1,488,261			—			—			—			1,488,261
Restricted cash	—			—			—			—			—			—
Investments in subsidiaries	1,934,292			144,920			—			—			(2,079,212		)	—
Other assets	—			40,489			—			—			—			40,489
Total assets	$	1,934,292		$	2,201,749		$	—		$	—		$	(2,079,212	)	$	2,056,829
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt	$	—		$	40,471		$	—		$	—		$	—		$	40,471
Inter-company accounts payable	512,372			(305,973		)	(52,061		)	(154,338		)	—			—
Trade accounts payable and accrued liabilities	—			376,897			—			—			—			376,897
Deferred income taxes	—			—			—			—			—			—
Total current liabilities	512,372			111,395			(52,061		)	(154,338		)	—			417,368
Long-term debt, including capitalized lease obligations	—			638,911			—			—			—			638,911
Deferred income taxes	—			200,601			—			—						200,601
Asset retirement obligations	—			25,637			—			—			—			25,637
Deferred credits and other liabilities	—			15,125			—			—			—			15,125
Total liabilities	512,372			991,669			(52,061		)	(154,338		)	—			1,297,642
Stockholders' Equity
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)	—			—			—			—			—			—
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at September 30, 2016)	468			1			60			—			(61		)	468
Treasury Stock (8,167,623 shares held at September 30, 2016)	(497,111		)	—			—			—			—			(497,111		)
Additional paid in capital (APIC)	1,213,109			566,104			52,004			87,543			(1,368,384		)	550,376
Retained earnings	705,454			643,975			(3		)	66,795			(710,767		)	705,454
Total stockholders' equity	1,421,920			1,210,080			52,061			154,338			(2,079,212		)	759,187
Total liabilities and stockholders' equity	$	1,934,292		$	2,201,749		$	—		$	—		$	(2,079,212	)	$	2,056,829

CONSOLIDATING BALANCE SHEET



(Thousands of dollars)	December 31, 2015
Assets	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	102,335		$	—		$	—		$	—		$	102,335
Accounts receivable—trade, less allowance for doubtful accounts of $1,963 in 2015	—			136,253			—			—			—			136,253
Inventories, at lower of cost or market	—			155,906			—			—			—			155,906
Prepaid expenses and other current assets	—			41,173			—			—			—			41,173
Total current assets	—			435,667			—			—			—			435,667
Property, plant and equipment, at cost less accumulated depreciation and amortization of $724,486 in 2015	—			1,369,318			—			—			—			1,369,318
Restricted cash	—			68,571			—			—			—			68,571
Investments in subsidiaries	1,756,617			144,921			—			—			(1,901,538		)	—
Other assets	—			12,685			—			—			—			12,685
Total assets	$	1,756,617		$	2,031,162		$	—		$	—		$	(1,901,538	)	$	1,886,241
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt	$	—		$	222		$	—		$	—		$	—		$	222
Inter-company accounts payable	300,044			(93,644		)	(52,062		)	(154,338		)	—			—
Trade accounts payable and accrued liabilities	—			390,341			—			—			—			390,341
Deferred income taxes	—			1,729			—			—			—			1,729
Total current liabilities	300,044			298,648			(52,062		)	(154,338		)	—			392,292
Long-term debt, including capitalized lease obligations	—			490,160			—			—			—			490,160
Deferred income taxes	—			161,236			—			—			—			161,236
Asset retirement obligations	—			24,345			—			—			—			24,345
Deferred credits and other liabilities	—			25,918			—			—			—			25,918
Total liabilities	300,044			1,000,307			(52,062		)	(154,338		)	—			1,093,951
Stockholders' Equity
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)	—			—			—			—			—			—
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at December 31, 2015)	468			1			60			—			(61		)	468
Treasury Stock (5,088,434 shares held at December 31, 2015)	(294,139		)	—			—			—			—			(294,139		)
Additional paid in capital (APIC)	1,222,465			564,554			52,004			87,543			(1,368,384		)	558,182
Retained earnings	527,779			466,300			(2		)	66,795			(533,093		)	527,779
Total stockholders' equity	1,456,573			1,030,855			52,062			154,338			(1,901,538		)	792,290
Total liabilities and stockholders' equity	$	1,756,617		$	2,031,162		$	—		$	—		$	(1,901,538	)	$	1,886,241

CONSOLIDATING INCOME STATEMENT

(unaudited)



(Thousands of dollars)	Three Months Ended September 30, 2016
Revenues	Parent Company		Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	2,394,951		$	—	$	—	$	—		$	2,394,951
Merchandise sales	—		598,968			—		—		—			598,968
Other operating revenues	—		48,819			—		—		—			48,819
Total revenues	$	—	$	3,042,738		$	—	$	—	$	—		$	3,042,738
Costs and Operating Expenses
Petroleum product cost of goods sold	—		2,275,487			—		—		—			2,275,487
Merchandise cost of goods sold	—		503,266			—		—		—			503,266
Station and other operating expenses	—		127,991			—		—		—			127,991
Depreciation and amortization	—		25,576			—		—		—			25,576
Selling, general and administrative	—		30,726			—		—		—			30,726
Accretion of asset retirement obligations	—		411			—		—		—			411
Total costs and operating expenses	—		2,963,457			—		—		—			2,963,457
Income (loss) from operations	$	—	$	79,281		$	—	$	—	$	—		$	79,281
Other income (expense)
Interest income	—		144			—		—		—			144
Interest expense	—		(10,182		)	—		—		—			(10,182		)
Loss on sale of assets	—		(335		)	—		—		—			(335		)
Other nonoperating income	—		2,848			—		—		—			2,848
Total other income (expense)	$	—	$	(7,525	)	$	—	$	—	$	—		$	(7,525	)
Income (loss) from continuing operations before income taxes	—		71,756			—		—		—			71,756
Income tax expense	—		26,265			—		—		—			26,265
Income (loss) from continuing operations	—		45,491			—		—		—			45,491
Income from discontinued operations, net of taxes	—		—			—		—		—			—
Equity earnings in affiliates, net of tax	45,491		—			—		—		(45,491		)	—
Net Income (Loss)	$	45,491	$	45,491		$	—	$	—	$	(45,491	)	$	45,491

CONSOLIDATING INCOME STATEMENT

(unaudited)



(Thousands of dollars)	Three Months Ended September 30, 2015
Revenues	Parent Company		Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	2,805,369		$	—	$	—	$	(35,200	)	$	2,770,169
Merchandise sales	—		591,584			—		—		—			591,584
Other operating revenues	—		20,754			—		—		—			20,754
Total revenues	$	—	$	3,417,707		$	—	$	—	$	(35,200	)	$	3,382,507
Costs and Operating Expenses
Petroleum product cost of goods sold	—		2,629,473			—		—		(35,200		)	2,594,273
Merchandise cost of goods sold	—		505,200			—		—		—			505,200
Station and other operating expenses	—		121,551			—		—		—			121,551
Depreciation and amortization	—		21,695			—		—		—			21,695
Selling, general and administrative	—		33,016			—		—		—			33,016
Accretion of asset retirement obligations	—		380			—		—		—			380
Total costs and operating expenses	—		3,311,315			—		—		(35,200		)	3,276,115
Income (loss) from operations	$	—	$	106,392		$	—	$	—	$	—		$	106,392
Other income (expense)
Interest income	—		20			—		—		—			20
Interest expense	—		(8,382		)	—		—		—			(8,382		)
Loss on sale of assets	—		(4,072		)	—		—		—			(4,072		)
Other nonoperating income	—		106			—		—		—			106
Total other income (expense)	$	—	$	(12,328	)	$	—	$	—	$	—		$	(12,328	)
Income (loss) from continuing operations before income taxes	—		94,064			—		—		—			94,064
Income tax expense	—		34,043			—		—		—			34,043
Income (loss) from continuing operations	—		60,021			—		—		—			60,021
Income from discontinued operations, net of taxes	—		—			—		510		—			510
Equity earnings in affiliates, net of tax	60,531		510			—		—		(61,041		)	—
Net Income (Loss)	$	60,531	$	60,531		$	—	$	510	$	(61,041	)	$	60,531

CONSOLIDATING INCOME STATEMENT

(unaudited)




(Thousands of dollars)	Nine Months Ended September 30, 2016
Revenues	Parent Company		Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	6,654,970		$	—		$	—	$	—		$	6,654,970
Merchandise sales	—		1,750,162			—			—		—			1,750,162
Other operating revenues	—		133,630			—			—		—			133,630
Total revenues	$	—	$	8,538,762		$	—		$	—	$	—		$	8,538,762
Costs and Operating Expenses
Petroleum product cost of goods sold	—		6,301,552			—			—		—			6,301,552
Merchandise cost of goods sold	—		1,475,869			—			—		—			1,475,869
Station and other operating expenses	—		369,910			—			—		—			369,910
Depreciation and amortization	—		72,747			—			—		—			72,747
Selling, general and administrative	—		94,548			1			—		—			94,549
Accretion of asset retirement obligations	—		1,236			—			—		—			1,236
Total costs and operating expenses	—		8,315,862			1			—		—			8,315,863
Income (loss) from operations	$	—	$	222,900		$	(1	)	$	—	$	—		$	222,899
Other income (expense)
Interest income	—		474			—			—		—			474
Interest expense	—		(29,780		)	—			—		—			(29,780		)
Gain on sale of assets	—		88,640			—			—		—			88,640
Other nonoperating income	—		2,966			—			—		—			2,966
Total other income (expense)	$	—	$	62,300		$	—		$	—	$	—		$	62,300
Income (loss) from continuing operations before income taxes	—		285,200			(1		)	—		—			285,199
Income tax expense	—		107,524			—			—		—			107,524
Income (loss) from continuing operations	—		177,676			(1		)	—		—			177,675
Income from discontinued operations, net of taxes	—		—			—			—		—			—
Equity earnings in affiliates, net of tax	177,675		(1		)	—			—		(177,674		)	—
Net Income (Loss)	$	177,675	$	177,675		$	(1	)	$	—	$	(177,674	)	$	177,675

CONSOLIDATING INCOME STATEMENT

(unaudited)




(Thousands of dollars)	Nine Months Ended September 30, 2015
Revenues	Parent Company		Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	8,094,075		$	—		$	—	$	(106,917	)	$	7,987,158
Merchandise sales	—		1,687,885			—			—		—			1,687,885
Other operating revenues	—		96,214			—			—		—			96,214
Total revenues	$	—	$	9,878,174		$	—		$	—	$	(106,917	)	$	9,771,257
Costs and Operating Expenses
Petroleum product cost of goods sold	—		7,712,878			—			—		(106,917		)	7,605,961
Merchandise cost of goods sold	—		1,444,293			—			—		—			1,444,293
Station and other operating expenses	—		358,463			—			—		—			358,463
Depreciation and amortization	—		64,013			—			—		—			64,013
Selling, general and administrative	—		96,994			1			—		—			96,995
Accretion of asset retirement obligations	—		1,137			—			—		—			1,137
Total costs and operating expenses	—		9,677,778			1			—		(106,917		)	9,570,862
Income (loss) from operations	$	—	$	200,396		$	(1	)	$	—	$	—		$	200,395
Other income (expense)
Interest income	—		1,908			—			—		—			1,908
Interest expense	—		(25,040		)	—			—		—			(25,040		)
Loss on sale of assets	—		(4,091		)	—			—		—			(4,091		)
Other nonoperating income	—		616			—			—		—			616
Total other income (expense)	$	—	$	(26,607	)	$	—		$	—	$	—		$	(26,607	)
Income (loss) from continuing operations before income taxes	—		173,789			(1		)	—		—			173,788
Income tax expense	—		65,430			—			—		—			65,430
Income (loss) from continuing operations	—		108,359			(1		)	—		—			108,358
Income from discontinued operations, net of taxes	—		—			—			1,296		—			1,296
Equity earnings in affiliates, net of tax	109,654		1,295			—			—		(110,949		)	—
Net Income (Loss)	$	109,654	$	109,654		$	(1	)	$	1,296	$	(110,949	)	$	109,654

CONSOLIDATING STATEMENT OF CASH FLOW

(unaudited)



(Thousands of dollars)	Nine Months Ended September 30, 2016
Operating Activities	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	177,675		$	177,675		$	(1	)	$	—	$	(177,674	)	$	177,675
Adjustments to reconcile net income to net cash provided by operating activities
(Income) loss from discontinued operations, net of tax	—			—			—			—		—			—
Depreciation and amortization	—			72,747			—			—		—			72,747
Deferred and noncurrent income tax charges	—			37,636			—			—		—			37,636
Accretion of asset retirement obligations	—			1,236			—			—		—			1,236
Pretax gains from sale of assets	—			(88,640		)	—			—		—			(88,640		)
Net (increase) decrease in noncash operating working capital	—			5,382			—			—		—			5,382
Equity in earnings of affiliates	(177,675		)	1			—			—		177,674			—
Other operating activities - net	—			3,792			—					—			3,792
Net cash provided by (required by) operating activities	—			209,829			(1		)	—		—			209,828
Investing Activities
Property additions	—			(198,911		)	—			—		—			(198,911		)
Proceeds from sale of assets	—			85,001			—			—		—			85,001
Changes in restricted cash	—			68,571			—			—		—			68,571
Other investing activities - net	—			(28,888		)	—			—		—			(28,888		)
Investing activities of discontinued operations
Other	—			—			—			—		—			—
Net cash required by investing activities	—			(74,227		)	—			—		—			(74,227		)
Financing Activities
Purchase of treasury stock	(212,328		)	—			—			—		—			(212,328		)
Borrowings of debt	—			200,000			—			—		—			200,000
Repayments of debt	—			(10,281		)	—			—		—			(10,281		)
Debt issuance costs	—			(3,240		)	—			—		—			(3,240		)
Amounts related to share-based compensation	—			(5,395		)	—			—		—			(5,395		)
Net distributions to parent	212,328			(212,329		)	1			—		—			—
Net cash provided by (required by) financing activities	—			(31,245		)	1			—		—			(31,244		)
Net increase in cash and cash equivalents	—			104,357			—			—		—			104,357
Cash and cash equivalents at January 1	—			102,335			—			—		—			102,335
Cash and cash equivalents at September 30	$	—		$	206,692		$	—		$	—	$	—		$	206,692

CONSOLIDATING STATEMENT OF CASH FLOW

(unaudited)



(Thousands of dollars)	Nine Months Ended September 30, 2015
Operating Activities	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	109,654		$	109,654		$	(1	)	$	1,296		$	(110,949	)	$	109,654
Adjustments to reconcile net income to net cash provided by operating activities
(Income) loss from discontinued operations, net of tax	—			—			—			(1,296		)	—			(1,296		)
Depreciation and amortization	—			64,013			—			—			—			64,013
Deferred and noncurrent income tax credits	—			(11,939		)	—			—			—			(11,939		)
Accretion of asset retirement obligations	—			1,137			—			—			—			1,137
Pretax losses from sale of assets	—			4,091			—			—			—			4,091
Net (increase) decrease in noncash operating working capital	—			(33,194		)	—			—			—			(33,194		)
Equity in earnings of affiliates	(109,654		)	(1,295		)	—			—			110,949			—
Other operating activities - net	—			5,428			—			—			—			5,428
Net cash provided by (required by) continuing operations	—			137,895			(1		)	—			—			137,894
Net cash provided by discontinued operations	—			—			—			10,948			—			10,948
Net cash provided by (required by) operating activities	—			137,895			(1		)	10,948			—			148,842
Investing Activities
Property additions	—			(151,521		)	—			—			—			(151,521		)
Proceeds from sale of assets	—			725			—			—			—			725
Changes in restricted cash	—			—			—			—			—			—
Other investing activities - net	—			(2,889		)	—			—			—			(2,889		)
Investing activities of discontinued operations
Other	—			—			—			(4,945		)	—			(4,945		)
Net cash required by investing activities	—			(153,685		)	—			(4,945		)	—			(158,630		)
Financing Activities
Purchase of treasury stock	(248,695		)	—			—			—			—			(248,695		)
Borrowings of debt	—			—			—			—			—			—
Repayments of debt	—			(89		)	—			—			—			(89		)
Debt issuance costs	—			(58		)	—			—			—			(58		)
Amounts related to share-based compensation	—			(3,036		)	—			—			—			(3,036		)
Net distributions to parent	248,695			(242,888		)	1			(5,808		)	—			—
Net cash provided by (required by) financing activities	—			(246,071		)	1			(5,808		)	—			(251,878		)
Net increase (decrease) in cash and cash equivalents	—			(261,861		)	—			195			—			(261,666		)
Cash and cash equivalents at January 1	—			327,163			—			942			—			328,105
Cash and cash equivalents at September 30	$	—		$	65,302		$	—		$	1,137		$	—		$	66,439
Less: Cash and cash equivalents of held for sale	—			—			—			1,137			—			1,137
Cash and cash equivalents of continuing operations at September 30	$	—		$	65,302		$	—		$	—		$	—		$	65,302

CONSOLIDATING STATEMENT OF CHANGES IN EQUITY

(unaudited)



(Thousands of dollars)	Nine Months Ended September 30, 2016
Statement of Stockholders' Equity	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Common Stock
Balance as of December 31, 2015	$	468		$	1		$	60		$	—	$	(61	)	$	468
Issuance of common stock	—			—			—			—		—			—
Balance as of September 30, 2016	$	468		$	1		$	60		$	—	$	(61	)	$	468
Treasury Stock
Balance as of December 31, 2015	$	(294,139	)	$	—		$	—		$	—	$	—		$	(294,139	)
Issuance of common stock	9,356			—			—			—		—			9,356
Repurchase of common stock	(212,328		)	—			—			—		—			(212,328		)
Balance as of September 30, 2016	$	(497,111	)	$	—		$	—		$	—	$	—		$	(497,111	)
APIC
Balance as of December 31, 2015	$	1,222,465		$	564,554		$	52,004		$	87,543	$	(1,368,384	)	$	558,182
Issuance of common stock	(9,356		)	—			—			—		—			(9,356		)
Amounts related to share-based compensation	—			(5,395		)	—			—		—			(5,395		)
Share-based compensation expense	—			6,945			—			—		—			6,945
Balance as of September 30, 2016	$	1,213,109		$	566,104		$	52,004		$	87,543	$	(1,368,384	)	$	550,376
Retained Earnings
Balance as of December 31, 2015	$	527,779		$	466,300		$	(2	)	$	66,795	$	(533,093	)	$	527,779
Net income	177,675			177,675			(1		)	—		(177,674		)	177,675
Balance as of September 30, 2016	$	705,454		$	643,975		$	(3	)	$	66,795	$	(710,767	)	$	705,454

CONSOLIDATING STATEMENT OF CHANGES IN EQUITY

(unaudited)



(Thousands of dollars)	Nine Months Ended September 30, 2015
Statement of Stockholders' Equity	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Common Stock
Balance as of December 31, 2014	$	468		$	1		$	60		$	—	$	(61	)	$	468
Issuance of common stock	—			—			—			—		—			—
Balance as of September 30, 2015	$	468		$	1		$	60		$	—	$	(61	)	$	468
Treasury Stock
Balance as of December 31, 2014	$	(51,073	)	$	—		$	—		$	—	$	—		$	(51,073	)
Issuance of common stock	5,562			—			—			—		—			5,562
Repurchase of common stock	(248,695		)	—			—			—		—			(248,695		)
Balance as of September 30, 2015	$	(294,206	)	$	—		$	—		$	—	$	—		$	(294,206	)
APIC
Balance as of December 31, 2014	$	1,228,095		$	558,611		$	52,004		$	35,677	$	(1,316,516	)	$	557,871
Issuance of common stock	(5,562		)	—			—			—		—			(5,562		)
Amounts related to share-based compensation	—			(3,035		)	—			—		—			(3,035		)
Share-based compensation expense	—			6,811			—			—		—			6,811
Balance as of September 30, 2015	$	1,222,533		$	562,387		$	52,004		$	35,677	$	(1,316,516	)	$	556,085
Retained Earnings
Balance as of December 31, 2014	$	351,439		$	351,439		$	(1	)	$	89,525	$	(440,963	)	$	351,439
Net income	109,654			109,654			(1		)	1,296		(110,949		)	109,654
Balance as of September 30, 2015	$	461,093		$	461,093		$	(2	)	$	90,821	$	(551,912	)	$	461,093