HOUSTON, July 31 /PRNewswire-FirstCall/ -- Frontier Oil Corporation (NYSE: FTO - News) announced a net loss of ($3.0) million, or ($0.12) per share, for the second quarter ended June 30, 2002, compared to net income of $78.9 million, or $2.86 per share, for the same period of 2001. The second quarter results included a FIFO inventory benefit of approximately $7.6 million, or $0.29 per share. The First Call consensus estimate of a net loss of ($0.25) per share does not take into account the inventory impact. Earnings on a basis comparable to analysts' expectations were a net loss of ($0.41) per share.

Several factors contributed to the significant decrease in earnings from the prior year. The gasoline and distillate crack spreads at El Dorado were $6.62 and $2.22, respectively, in second quarter 2002 compared to $15.24 and $10.04 for the second quarter of 2001. In Cheyenne, the gasoline and distillate crack spreads were $7.98 and $5.19, respectively, in second quarter 2002 compared to $17.77 and $13.99 for the same period in 2001. The WTI/WTS crude oil spread, which has a significant impact at El Dorado, decreased to $1.22 in the second quarter of 2002, or less than half the $3.77 differential for the same period in 2001. The light/heavy crude oil spread, an important driver of profitability at Cheyenne, also declined, to $3.52 for the second quarter of 2002 from $7.55 for the second quarter of 2001.

James Gibbs, Chairman, President, and CEO said, "We are extremely disappointed with the loss in the second quarter. Many important market variables affected us negatively with the exception of gasoline, where demand was robust. While a weak diesel market and narrow crude oil spreads are lingering into the third quarter, we are encouraged that the fundamentals driving these conditions are positioned for improvement. Importantly, we are excited about the current acquisition market, as there are more refineries on the market today than at any time since we entered the business. We have almost $110 million in cash and remain interested in pursuing attractive opportunities."

Six months ended June 30, 2002

Frontier Oil Corporation recorded a net loss of ($2.7) million, or ($0.11) per share, for the six months ended June 30, 2002, compared to net income of $83.4 million, or $3.05 per share, for the same period in 2001. The Company recognized FIFO inventory gains of $16.2 million, or $0.63 per share, in the first half of 2002.

A conference call is scheduled for 11:00 am EDT today. To access the call, please dial (800) 997-8642. For those outside the U.S., please call (973) 694-6836. A replay may be heard through August 13th by dialing (800) 428-6051 and entering the passcode 250924. To access the call or the replay via the Internet, go to www.frontieroil.com and register on the Investor Relations page.

Frontier operates a 110,000 barrel-per-day refinery located in El Dorado, Kansas, and a 46,000 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.

                           FRONTIER OIL CORPORATION

                                Six Months Ended         Three Months Ended
                                     June 30                   June 30
                                2002         2001         2002        2001

    INCOME STATEMENT DATA
     ($000's except per share)
    Revenues                  $795,512    $984,792     $459,162    $553,649
    Refining operating costs   765,832     850,831      446,554     441,253
    Selling and
     general expenses            8,004       8,603        4,201       5,276
    Operating income (loss)
     before depreciation
     (EBITDA)                   21,676     125,358        8,407     107,120
    Depreciation                13,374      12,284        6,776       6,204
    Operating income (loss)      8,302     113,074        1,631     100,916
    Interest expense, net       12,814      15,353        6,502       8,166
    Provision (benefit)
     for income taxes           (1,766)     14,308       (1,864)     13,849
    Net income (loss)          $(2,746)    $83,413      $(3,007)    $78,901
    Net income (loss) per
     diluted (basic) share      $(0.11)      $3.05       $(0.12)      $2.86
    Diluted average shares
     outstanding (000's)        25,721      27,330       25,814      27,623

    OTHER FINANCIAL DATA
     ($000's)
    Cash flow before changes
     in working capital         $9,940    $100,721       $2,585     $89,719
    Working capital changes    (23,104)    (25,131)      (5,705)     19,445
    Net cash provided (used)
     by operating activities   (13,164)     75,590       (3,120)    109,164
    Net cash provided (used)
     by investing activities   (26,195)     (8,967)     (10,560)     (4,560)
    Net cash provided (used)
     by financing activities    45,085     (47,035)      15,494     (64,104)

    BALANCE SHEET DATA
     ($000's)
    Cash, including cash
     equivalents              $109,721     $84,034
    Working capital            100,926     110,862
    Short-term and
     current debt               46,800         ---
    Total long-term debt       208,966     220,450
    Shareholders' equity       167,099     156,183


                           FRONTIER OIL CORPORATION

                                  Six Months Ended        Three Months Ended
                                      June 30                   June 30
                                 2002         2001         2002       2001
    OPERATIONS
    Cheyenne Refinery
    Operations (bpd)
      Total charges             42,991       40,663       45,248     44,839
      Gasoline yields           16,122       16,507       15,737     17,688
      Diesel yields             12,762       12,824       12,882     13,859
      Total sales               45,497       42,611       50,409     48,659

    Operating Margins
     ($ per bbl)
      Revenues                  $27.28       $36.21       $29.77     $37.45
      Raw material, freight
       and other costs           22.90        26.09        25.62      25.51
      Refined product margin      4.38        10.12         4.15      11.94
      Operating costs
       excluding depreciation     3.46         3.42         3.32       2.86
      Margin before
       depreciation               0.92         6.70         0.83       9.08
      Depreciation                0.87         0.87         0.81       0.76
      Net margin                 $0.05        $5.83        $0.02      $8.32
    Light/Heavy crude
     spread ($ per bbl)          $3.64        $7.88        $3.52      $7.55

    El Dorado Refinery
    Operations (bpd)
      Total charges            118,221      113,621      119,826    117,014
      Gasoline yields           65,955       56,757       66,313     59,595
      Diesel and jet
       fuel yields              39,978       37,638       41,308     38,794
      Total sales              116,168      106,595      118,956    110,873

    Operating Margins
     ($ per bbl)
      Revenues                  $27.10       $36.67       $29.82     $38.83
      Raw material, freight
       and other costs           23.24        28.52        26.18      27.79
      Refined product margin      3.86         8.15         3.64      11.04
      Operating costs
       excluding depreciation     2.86         3.78         2.81       3.49
      Margin before
       depreciation               1.00         4.37         0.83       7.55
      Depreciation                0.28         0.28         0.28       0.27
      Net margin                 $0.72        $4.09        $0.55      $7.28
    WTI/WTS Differential
     ($ per bbl)                 $1.38        $3.75        $1.22      $3.77

     KEY TERMS:  bpd = barrels per day; bbl = barrel

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.