Alon USA Energy, Inc. - FORM S-1 - EX-12.1

Exhibit 12.1

Alon USA Energy, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)


	Six months
	ended
	June 30,			Year ended December 31,
	2010			2009			2008			2007		2006		2005
Ratio of Earnings to Fixed Charges:

Earnings:

Income before income tax expense (benefit), non-controlling interest in income (loss) of subsidiaries, accumulated dividends on preferred stock of subsidiary and income (loss) from equity earnings (losses) of investees	$	(141,170	)	$	(191,642	)	$	157,427		$	144,937	$	256,416	$	174,212

Add:

Fixed charges		52,973			121,232			83,663			52,889		35,832		23,998
Amortization of capitalized interest		222			425			344			394		441		311
Distributions from equity investees		331			19,167			2,774			9,301		2,422		1,617

Less:

Interest capitalized		(771	)		(1,692	)		(3,417	)		—		—		(927	)


Total earnings	$	(88,415	)	$	(52,510	)	$	240,791		$	207,521	$	295,111	$	199,211


Fixed charges:

Interest expense, net	$	48,320		$	111,137		$	67,550		$	47,747	$	30,658	$	19,326
Interest capitalized		771			1,692			3,417			—		—		927
Rental expense interest factor (1)		3,882			8,403			12,696			5,142		5,174		3,745


Total fixed charges	$	52,973		$	121,232		$	83,663		$	52,889	$	35,832	$	23,998


Ratio of earnings to fixed charges		(B	)		(B	)		2.9x			3.9x		8.2x		8.3x


Ratio of Earnings to Fixed Charges and Preferred Stock Dividends:


Total earnings	$	(88,415	)	$	(52,510	)	$	240,791		$	207,521	$	295,111	$	199,211


Total fixed charges	$	52,973		$	121,232		$	83,663		$	52,889	$	35,832	$	23,998
Preferred stock dividends		—			—			6,615			—		—		—

Total fixed charges and preferred stock dividends	$	52,973		$	121,232		$	90,278		$	52,889	$	35,832	$	23,998


Ratio of earnings to fixed charges		(B	)		(B	)		2.7x			3.9x		8.2x		8.3x


(A)		The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.

(B)		For the year ended December 31, 2009, our ratio of earnings to fixed charges was less than one-to-one, and our coverage deficiency was approximately $141.4 million for the six months ended June 30, 2010 and $173.7 million for the year ended December 31, 2009.

Income Statement from 10-K documents


	2010			2009			2008			2007			2006			2005
Net sales	$	1,419,674		$	3,915,732		$	5,156,706		$	4,542,151		$	3,198,084		$	2,328,507
Operating costs		1,526,837			3,994,977			5,258,153			4,363,238			2,982,005			2,178,335
Gain on involuntary conversion		—			—			279,680			—			—			—
Gain on dispostion of assets		474			(1,591	)		45,244			7,206			63,255			38,591

Operating income		(106,689	)		(80,836	)		223,477			186,119			279,334			188,763
Interest expense		(48,320	)		(111,137	)		(67,550	)		(47,747	)		(30,658	)		(19,326	)
Equity earnings of investees		1,106			24,558			(1,522	)		11,177			3,161			1,086
Other income, net		13,839			331			1,500			6,565			7,740			4,775

Income before income tax expense, minority interest in income of subsidiaries and accumulated dividends on preferred stock of subsidiary		(140,064	)		(167,084	)		155,905			156,114			259,577			175,298
Income tax expense		(51,806	)		(64,877	)		62,781			46,199			93,968			65,518

Income before minority interest in income of subsidiaries and accumulated dividends on preferred stock of subsidiary		(88,258	)		(102,207	)		93,124			109,915			165,609			109,780
Minority interest in income of subsidiaries		(6,057	)		(8,551	)		5,941			5,979			8,241			5,792
Accumulated dividends on preferred stock of subsidiary		—			21,500			4,300			—			—			—

Net income available to common	$	(82,201	)	$	(115,156	)	$	82,883		$	103,936		$	157,368		$	103,988

Calculations used in Exhibit 12 — Ratio of Earnings to Fixed Charges


Income before income tax expense, minority interest in income of subsidiaries and accumulated dividends on preferred stock of subsidiary	(140,064	)	(167,084	)	155,905	156,114		259,577		175,298
less:
Equity earnings of investees	(1,106	)	(24,558	)	1,522	(11,177	)	(3,161	)	(1,086	)

Income before income tax expense, minority interest in income of subsidiaries, accumulated dividends on preferred stock of subsidiary and income from equity earnings of investees	(141,170	)	(191,642	)	157,427	144,937		256,416		174,212


Equity earnings (loss) of investees (net of dividends)	(775	)	(5,391	)	4,296	(1,876	)	(739	)	531
Equity earnings (loss) from income statement	(1,106	)	(24,558	)	1,522	(11,177	)	(3,161	)	(1,086	)

Distributions from equity investees	331		19,167		2,774	9,301		2,422		1,617


Rental expense	11,645		25,208		38,089	15,425		15,523		11,235
Multiply: Rental factor	0.3		0.3		0.3	0.3		0.3		0.3

Rental expense interest factor	3,882		8,403		12,696	5,142		5,174		3,745

Alon USA Energy, Inc. - FORM S-1 - EX-12.1 - August 23, 2010