10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2013

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                     

Commission File No. 001-06198

UNITED REFINING COMPANY (Exact name of registrant as specified in its charter)

Pennsylvania	25-1411751
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
15 Bradley Street
Warren, Pennsylvania	16365
(Address of principal executive office)	(Zip Code)

814-723-1500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  ¨
Non-accelerated filer  x  (Do not check if a smaller reporting company)	Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of April 15, 2013, there were 100 shares of common stock, par value $.10 per share, of the Registrant outstanding.

TABLE OF ADDITIONAL REGISTRANTS

Name	State of Other Jurisdiction of Incorporation	IRS Employer Identification Number		Commission File Number
Kiantone Pipeline Corporation	New York		25-1211902		333-35083-01
Kiantone Pipeline Company	Pennsylvania		25-1416278		333-35083-03
United Refining Company of Pennsylvania	Pennsylvania		25-0850960		333-35083-02
United Jet Center, Inc.	Delaware		52-1623169		333-35083-06
Kwik-Fill Corporation	Pennsylvania		25-1525543		333-35083-05
Independent Gas and Oil Company of Rochester, Inc.	New York		06-1217388		333-35083-11
Bell Oil Corp.	Michigan		38-1884781		333-35083-07
PPC, Inc.	Ohio		31-0821706		333-35083-08
Super Test Petroleum, Inc.	Michigan		38-1901439		333-35083-09
Kwik-Fil, Inc.	New York		25-1525615		333-35083-04
Vulcan Asphalt Refining Corporation	Delaware		23-2486891		333-35083-10
Country Fair, Inc.	Pennsylvania		25-1149799		333-35083-12

2

FORM 10-Q – CONTENTS

		PAGE(S)
PART I.    FINANCIAL INFORMATION			4
Item 1.	Financial Statements.		4
	Consolidated Balance Sheets – February 28, 2013 (unaudited) and August 31, 2012		4
	Consolidated Statements of Operations – Quarter and Six Months Ended February 28, 2013 and February 29, 2012 (unaudited)		5
	Consolidated Statements of Comprehensive Income – Quarter and Six Months Ended February 28, 2013 and February 29, 2012 (unaudited)		6
	Consolidated Statements of Cash Flows – Six Months Ended February 28, 2013 and February 29, 2012 (unaudited)		7
	Notes to Consolidated Financial Statements (unaudited)		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk.		26
Item 4.	Controls and Procedures.		26
PART II.    OTHER INFORMATION			27
Item 1.	Legal Proceedings.		27
Item 1A.	Risk Factors.		27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.		27
Item 3.	Defaults Upon Senior Securities.		27
Item 4.	Mine Safety Disclosures.		27
Item 5.	Other Information.		27
Item 6.	Exhibits.		27
Signatures.			28

3

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share amounts)

	February 28, 2013 (Unaudited)			August 31, 2012
Assets
Current:
Cash and cash equivalents	$	116,640		$	137,540
Accounts receivable, net		109,526			120,599
Inventories, net		203,024			156,220
Prepaid expenses and other assets		49,551			19,813
Deferred income taxes		—			1,048
Amounts due from affiliated companies, net		498			89
Total current assets		479,239			435,309
Property, plant and equipment, net		258,261			253,387
Deferred financing costs, net		7,635			8,471
Goodwill		1,349			1,349
Tradename		10,500			10,500
Amortizable intangible assets, net		1,111			1,164
Deferred turnaround costs and other assets, net		14,459			18,150
	$	772,554		$	728,330
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	1,495		$	1,318
Accounts payable		54,913			42,203
Derivative liability		—			9,098
Accrued liabilities		13,945			16,916
Income taxes payable		16,727			28,931
Sales, use and fuel taxes payable		15,919			21,892
Deferred income taxes		1,843			—
Total current liabilities		104,842			120,358
Long term debt: less current installments		358,605			358,678
Deferred income taxes		14,557			15,022
Deferred retirement benefits		89,949			92,996
Total liabilities		567,953			587,054
Commitments and contingencies
Stockholder’s equity:
Common stock; $.10 par value per share – shares authorized 100; issued and outstanding 100		—			—
Additional paid-in capital		24,825			24,825
Retained earnings		198,920			135,988
Accumulated other comprehensive loss		(19,144	)		(19,537	)
Total stockholder’s equity		204,601			141,276
	$	772,554		$	728,330

See accompanying notes to consolidated financial statements.

4

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Statements of Operations – (Unaudited)

(in thousands)

	Three Months Ended						Six Months Ended
	February 28, 2013			February 29, 2012			February 28, 2013			February 29, 2012
Net sales	$	870,109		$	848,844		$	1,827,171		$	1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)		708,389			782,540			1,507,274			1,615,252
(Gains)/losses on derivative contracts (See Note 3)		(365	)		11,839			2,319			(39,452	)
Selling, general and administrative expenses		40,696			37,940			81,510			78,587
Depreciation and amortization expenses		6,566			5,964			13,422			11,937
		755,286			838,283			1,604,525			1,666,324
Operating income		114,823			10,561			222,646			126,551
Other income (expense):
Interest expense, net		(9,928	)		(10,260	)		(19,080	)		(20,513	)
Other, net		(699	)		(703	)		(1,588	)		(1,280	)
		(10,627	)		(10,963	)		(20,668	)		(21,793	)
Income (loss) before income tax expense (benefit)		104,196			(402	)		201,978			104,758
Income tax expense (benefit)		40,634			(165	)		78,769			42,949
Net income (loss)	$	63,562		$	(237	)	$	123,209		$	61,809

See accompanying notes to consolidated financial statements.

5

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income – (Unaudited)

(in thousands)

	Three Months Ended					Six Months Ended
	February 28,		February 29,			February 28,		February 29,
	2013		2012			2013		2012
Net income (loss)	$	63,562	$	(237	)	$	123,209	$	61,809
Other comprehensive income (loss), net of taxes:
Unrecognized post retirement income, net of taxes of $137 and $(6) for the three months ended February 28, 2013 and February 29, 2012, respectively and $274 and $6,943 for the six months ended February 28, 2013 and February 29, 2012, respectively		196		(9	)		393		9,991
Other comprehensive income (loss)		196		(9	)		393		9,991
Total comprehensive income (loss)	$	63,758	$	(246	)	$	123,602	$	71,800

See accompanying notes to consolidated financial statements.

6

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Unaudited)

(in thousands)

	Six Months Ended
	February 28, 2013			February 29, 2012
Cash flows from operating activities:
Net income	$	123,209		$	61,809
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		14,205			13,704
Unrealized gain on derivative contracts		—			(48,612	)
Deferred income taxes		2,152			25,837
Loss on asset dispositions		590			695
Cash used in working capital items		(83,414	)		(47,438	)
Change in operating assets and liabilities:
Other assets, net		327			(3,264	)
Deferred retirement benefits		(2,380	)		(1,152	)
Total adjustments		68,520			(60,230	)
Net cash provided by operating activities		54,689			1,579
Cash flows from investing activities:
Additions to property, plant and equipment		(14,310	)		(9,955	)
Additions to deferred turnaround costs		(209	)		(1,261	)
Proceeds from asset dispositions		—			7
Net cash used in investing activities		(14,519	)		(11,209	)
Cash flows from financing activities:
Net borrowings on revolving credit facility		—			42,000
Dividends to stockholder		(60,277	)		(31,008	)
Principal reductions of long term debt		(793	)		(560	)
Net cash (used in) provided by financing activities		(61,070	)		10,432
Net (decrease) increase in cash and cash equivalents		(20,900	)		802
Cash and cash equivalents, beginning of year		137,540			16,660
Cash and cash equivalents, end of period	$	116,640		$	17,462
Cash provided by (used in) working capital items:
Accounts receivable, net	$	11,073		$	(1,821	)
Derivative asset/liability		(9,098	)		(1,813	)
Inventories		(46,804	)		(22,545	)
Prepaid expenses and other assets		(29,738	)		17,800
Amounts due from affiliated companies, net		(409	)		688
Accounts payable		12,710			(35,899	)
Accrued liabilities		(2,971	)		(2,921	)
Income taxes payable		(12,204	)		(2,627	)
Sales, use, and fuel taxes payable		(5,973	)		1,700
Total change	$	(83,414	)	$	(47,438	)
Cash paid during the period for:
Interest	$	19,299		$	19,674
Income taxes	$	89,014		$	22,733
Non-cash investing activities:
Property additions & capital leases	$	950		$	750

See accompanying notes to consolidated financial statements.

7

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

1. Description of Business and Basis of Presentation

The consolidated financial statements include the accounts of United Refining Company and its subsidiaries, United Refining Company of Pennsylvania and its subsidiaries, and Kiantone Pipeline Corporation (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

The Company is a petroleum refiner and marketer in its primary market area of Western New York and Northwestern Pennsylvania. Operations are organized into two business segments: wholesale and retail.

The wholesale segment is responsible for the acquisition of crude oil, petroleum refining, supplying petroleum products to the retail segment and the marketing of petroleum products to wholesale and industrial customers. The retail segment operates a network of Company operated retail units under the Red Apple Food Mart^® and Country Fair^® brand names selling petroleum products under the Kwik Fill^®, Citgo^® and Keystone^® brand names, as well as convenience and grocery items.

The Company is a wholly-owned subsidiary of United Refining, Inc., a wholly-owned subsidiary of United Acquisition Corp., which in turn is a wholly-owned subsidiary of Red Apple Group, Inc. (the “Parent”).

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended February 28, 2013 are not necessarily indicative of the results that may be expected for the year ending August 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the fiscal year ended August 31, 2012.

2. Derivative Financial Instruments

From time to time, the Company uses derivatives to reduce its exposure to fluctuations in crude oil purchase costs and refining margins. Derivative products, historically crude oil option contracts (puts) and crackspread option contracts have been used to hedge the volatility of these items. The Company does not enter such contracts for speculative purposes. The Company accounts for changes in the fair value of its contracts by marking them to market and recognizing any resulting gains or losses in its Statement of Operations. The Company includes the carrying amounts of the contracts in derivative asset or derivative liability in its Consolidated Balance Sheet.

At February 28, 2013, the Company had no derivative investments outstanding as part of its risk management strategy.

8

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The fair value and balance sheet classification of our derivative instruments at February 28, 2013 and August 31, 2012 are as follows:

	February 28, 2013
	Notional Balance		Maturity Date		Derivative Liability
	(in thousands)
Not designated as hedges under ASC 815
Heating oil crackspread swaps		0 barrels		Not applicable	$	0
Total derivative instruments		0 barrels			$	0
	August 31, 2012
	Notional Balance		Maturity Date		Derivative Liability
	(in thousands)
Not designated as hedges under ASC 815
Heating oil and gasoline crackspread swaps		780 barrels		Monthly September 2012 through December 2012	$	9,098
Total derivative instruments		780 barrels			$	9,098

During the three months ended February 28, 2013 and February 29, 2012, the Company recognized $(365,000) and $11,839,000 of (gains)/losses in its Consolidated Statements of Operations, respectively. For the six months ended February 28, 2013 and February 29, 2012, the Company recognized $2,319,000 and $(39,452,000) of losses/(gains) in its Consolidated Statement of Operations, respectively.

3. Inventories

Inventories are stated at the lower of cost or market, with cost being determined under the Last-in, First-out (LIFO) method for crude oil and petroleum product inventories and the First-in, First-out (FIFO) method for merchandise. Supply inventories are stated at either the lower of cost or market or replacement cost and include various parts for the refinery operations.

9

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Inventories consist of the following:

	February 28, 2013		August 31, 2012
	(in thousands)
Crude Oil	$	52,272	$	40,419
Petroleum Products		102,084		66,296
Total @ LIFO		154,356		106,715
Merchandise		23,143		23,707
Supplies		25,525		25,798
Total @ FIFO		48,668		49,505
Total Inventory	$	203,024	$	156,220

As of February 28, 2013 and August 31, 2012, the replacement cost of LIFO inventories exceeded their LIFO carrying values by approximately $62,846,000 and $77,727,000, respectively.

10

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

4. Subsidiary Guarantors

All of the Company’s wholly-owned subsidiaries fully and unconditionally guarantee on an unsecured basis, on a joint and several basis, the Company’s 10.50% Senior Secured Notes due 2018. There are no restrictions within the consolidated group on the ability of the Company or any of its subsidiaries to obtain loans from or pay dividends to other members of the consolidated group. Financial information of the Company’s wholly-owned subsidiary guarantors is as follows:

Condensed Consolidating Balance Sheets

(in thousands)

	February 28, 2013												August 31, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Assets
Current:
Cash and cash equivalents	$	107,294		$	9,346		$	—		$	116,640		$	122,219		$	15,321		$	—		$	137,540
Accounts receivable, net		71,017			38,509			—			109,526			79,870			40,729			—			120,599
Inventories, net		173,242			29,782			—			203,024			127,469			28,751			—			156,220
Prepaid expenses and other assets		43,907			5,644			—			49,551			16,311			3,502			—			19,813
Deferred income taxes		—			—			—			—			(114	)		1,162			—			1,048
Amounts due from affiliated companies		—			498			—			498			344			(255	)		—			89
Intercompany		130,622			17,297			(147,919	)		—			117,992			16,703			(134,695	)		—
Total current assets		526,082			101,076			(147,919	)		479,239			464,091			105,913			(134,695	)		435,309
Property, plant and equipment, net		174,653			83,608			—			258,261			176,282			77,105			—			253,387
Deferred financing costs, net		7,635			—			—			7,635			8,471			—			—			8,471
Goodwill and other non-amortizable assets		—			11,849			—			11,849			—			11,849			—			11,849
Amortizable intangible assets, net		—			1,111			—			1,111			—			1,164			—			1,164
Deferred turnaround costs & other assets		11,602			2,857			—			14,459			15,173			2,977			—			18,150
Investment in subsidiaries		13,587			—			(13,587	)		—			17,018			—			(17,018	)		—
	$	733,559		$	200,501		$	(161,506	)	$	772,554		$	681,035		$	199,008		$	(151,713	)	$	728,330
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	959		$	536		$	—		$	1,495		$	939		$	379		$	—		$	1,318
Accounts payable		36,824			18,089			—			54,913			22,528			19,675			—			42,203
Derivative liability		—			—			—			—			9,098			—			—			9,098
Accrued liabilities		8,464			5,481			—			13,945			11,147			5,769			—			16,916
Income taxes payable		19,184			(2,457	)		—			16,727			25,866			3,065			—			28,931
Sales, use and fuel taxes payable		12,542			3,377			—			15,919			17,622			4,270			—			21,892
Deferred income taxes		3,004			(1,161	)		—			1,843			—			—			—			—
Intercompany		—			147,919			(147,919	)		—			—			134,695			(134,695	)		—
Total current liabilities		80,977			171,784			(147,919	)		104,842			87,200			167,853			(134,695	)		120,358
Long term debt: less current installments		356,242			2,363			—			358,605			356,448			2,230			—			358,678
Deferred income taxes		4,512			10,045			—			14,557			5,753			9,269			—			15,022
Deferred retirement benefits		87,227			2,722			—			89,949			90,358			2,638			—			92,996
Total liabilities		528,958			186,914			(147,919	)		567,953			539,759			181,990			(134,695	)		587,054
Commitment and contingencies Stockholder’s equity
Common stock, $.10 par value per share – shares authorized 100; issued and outstanding 100		—			18			(18	)		—			—			18			(18	)		—
Additional paid-in capital		24,825			10,651			(10,651	)		24,825			24,825			10,651			(10,651	)		24,825
Retained earnings		198,920			4,594			(4,594	)		198,920			135,988			8,123			(8,123	)		135,988
Accumulated other comprehensive loss		(19,144	)		(1,676	)		1,676			(19,144	)		(19,537	)		(1,774	)		1,774			(19,537	)
Total stockholder’s equity		204,601			13,587			(13,587	)		204,601			141,276			17,018			(17,018	)		141,276
	$	733,559		$	200,501		$	(161,506	)	$	772,554		$	681,035		$	199,008		$	(151,713	)	$	728,330

11

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Condensed Consolidating Statements of Operations

(in thousands)

	Three Months Ended February 28, 2013												Three Months Ended February 29, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	686,971		$	397,485		$	(214,347	)	$	870,109		$	661,665		$	401,067		$	(213,888	)	$	848,844
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)		552,173			370,563			(214,347	)		708,389			621,933			374,495			(213,888	)		782,540
(Gains) / losses on derivative contracts		(365	)		—			—			(365	)		11,839			—			—			11,839
Selling, general and administrative expenses		6,571			34,125			—			40,696			4,783			33,157			—			37,940
Depreciation and amortization expenses		4,887			1,679			—			6,566			4,411			1,553			—			5,964
		563,266			406,367			(214,347	)		755,286			642,966			409,205			(213,888	)		838,283
Operating income (loss)		123,705			(8,882	)		—			114,823			18,699			(8,138	)		—			10,561
Other income (expense):
Interest expense, net		(9,803	)		(125	)		—			(9,928	)		(10,147	)		(113	)		—			(10,260	)
Other, net		(842	)		143			—			(699	)		(866	)		163			—			(703	)
Equity in net loss of subsidiaries		(5,850	)		—			5,850			—			(4,956	)		—			4,956			—
		(16,495	)		18			5,850			(10,627	)		(15,969	)		50			4,956			(10,963	)
Income (loss) before income tax expense (benefit)		107,210			(8,864	)		5,850			104,196			2,730			(8,088	)		4,956			(402	)
Income tax expense (benefit)		43,648			(3,014	)		—			40,634			2,967			(3,132	)		—			(165	)
Net income (loss)	$	63,562		$	(5,850	)	$	5,850		$	63,562		$	(237	)	$	(4,956	)	$	4,956		$	(237	)

12

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Condensed Consolidating Statements of Operations

(in thousands)

	Six Months Ended February 28, 2013												Six Months Ended February 29, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	1,436,705		$	835,053		$	(444,587	)	$	1,827,171		$	1,399,894		$	822,665		$	(429,684	)	$	1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses/(gains) on derivative contracts)		1,184,009			767,852			(444,587	)		1,507,274			1,290,101			754,835			(429,684	)		1,615,252
Losses/(gains) on derivative contracts		2,319			—			—			2,319			(39,452	)		—			—			(39,452	)
Selling, general and administrative expenses		12,484			69,026			—			81,510			12,091			66,496			—			78,587
Depreciation and amortization expenses		10,074			3,348			—			13,422			8,821			3,116			—			11,937
		1,208,886			840,226			(444,587	)		1,604,525			1,271,561			824,447			(429,684	)		1,666,324
Operating income (loss)		227,819			(5,173	)		—			222,646			128,333			(1,782	)		—			126,551
Other income (expense):
Interest expense, net		(18,833	)		(247	)		—			(19,080	)		(20,282	)		(231	)		—			(20,513	)
Other, net		(1,910	)		322			—			(1,588	)		(1,729	)		449			—			(1,280	)
Equity in net loss of subsidiaries		(3,529	)		—			3,529			—			(1,092	)		—			1,092			—
		(24,272	)		75			3,529			(20,668	)		(23,103	)		218			1,092			(21,793	)
Income (loss) before income tax expense (benefit)		203,547			(5,098	)		3,529			201,978			105,230			(1,564	)		1,092			104,758
Income tax expense (benefit)		80,338			(1,569	)		—			78,769			43,421			(472	)		—			42,949
Net income (loss)	$	123,209		$	(3,529	)	$	3,529		$	123,209		$	61,809		$	(1,092	)	$	1,092		$	61,809

13

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Six Months Ended February 28, 2013											Six Months Ended February 29, 2012
	Issuer			Guarantors			Eliminations		Consolidated			Issuer			Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	50,772		$	3,917		$	—	$	54,689		$	(3,981	)	$	5,560		$	—	$	1,579
Cash flows from investing activities:
Additions to property, plant and equipment		(4,740	)		(9,570	)		—		(14,310	)		(5,769	)		(4,186	)		—		(9,955	)
Additions to deferred turnaround costs		(163	)		(46	)		—		(209	)		(66	)		(1,195	)		—		(1,261	)
Proceeds from asset dispositions		—			—			—		—			—			7			—		7
Net cash used in investing activities		(4,903	)		(9,616	)		—		(14,519	)		(5,835	)		(5,374	)		—		(11,209	)
Cash flows from financing activities:
Net borrowings on revolving credit facility		—			—			—		—			42,000			—			—		42,000
Dividends to stockholder		(60,277	)		—			—		(60,277	)		(31,008	)		—			—		(31,008	)
Principal reductions of long-term debt		(517	)		(276	)		—		(793	)		(376	)		(184	)		—		(560	)
Net cash (used in) provided by financing activities		(60,794	)		(276	)		—		(61,070	)		10,616			(184	)		—		10,432
Net (decrease) increase in cash and cash equivalents		(14,925	)		(5,975	)		—		(20,900	)		800			2			—		802
Cash and cash equivalents, beginning of year		122,219			15,321			—		137,540			5,927			10,733			—		16,660
Cash and cash equivalents, end of period	$	107,294		$	9,346		$	—	$	116,640		$	6,727		$	10,735		$	—	$	17,462

14

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

5. Segments of Business

Intersegment revenues are calculated using market prices and are eliminated upon consolidation. Summarized financial information regarding the Company’s reportable segments is presented in the following tables (in thousands):

	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
Net Sales
Retail	$	396,227		$	399,838		$	832,574		$	820,157
Wholesale		473,882			449,006			994,597			972,718
	$	870,109		$	848,844		$	1,827,171		$	1,792,875
Intersegment Sales
Wholesale	$	213,089		$	212,659		$	442,108		$	427,176
Operating Income (Loss)
Retail	$	(8,653	)	$	(8,036	)	$	(4,663	)	$	(1,816	)
Wholesale		123,476			18,597			227,309			128,367
	$	114,823		$	10,561		$	222,646		$	126,551
Depreciation and Amortization
Retail	$	1,468		$	1,397		$	2,925		$	2,798
Wholesale		5,098			4,567			10,497			9,139
	$	6,566		$	5,964		$	13,422		$	11,937
Capital Expenditures (including non-cash)
Retail	$	5,863		$	1,097		$	8,749		$	3,500
Wholesale		2,928			2,906			6,511			7,205
	$	8,791		$	4,003		$	15,260		$	10,705
Total Assets
Retail							$	171,608		$	161,387
Wholesale								600,946			503,197
							$	772,554		$	664,584

15

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

6. Employee Benefit Plans

For the periods ended February 28, 2013 and February 29, 2012, net pension and other postretirement benefit costs were comprised of the following:

	Pension Benefits
	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
	(in thousands)
Service cost	$	164		$	340		$	328		$	763
Interest cost on benefit obligation		1,279			2,672			2,565			3,990
Expected return on plan assets		(1,462	)		(2,543	)		(2,932	)		(3,722	)
Amortization and deferral of net loss		335			49			670			425
Net periodic benefit cost	$	316		$	518		$	631		$	1,456

	Other Post-Retirement Benefits
	Three Months Ended					Six Months Ended
	February 28,		February 29,			February 28,		February 29,
	2013		2012			2013		2012
	(in thousands)
Service cost	$	235	$	151		$	473	$	617
Interest cost on benefit obligation		471		595			947		1,343
Amortization and deferral of net loss		31		(102	)		62		(366	)
Net periodic benefit cost	$	737	$	644		$	1,482	$	1,594

As of February 28, 2013, $3,255,000 of contributions have been made to the Company pension plans for the fiscal year ending August 31, 2013.

In November 2011, the Company reached an agreement with the International Union of Operating Engineers Local 95, which represents the employees operating the refinery. The new agreement was effective February 1, 2012 and expires on February 1, 2017. Under the new collective bargaining agreement (Agreement), changes were made to healthcare and pension benefits provided by the Company. Effective February 1, 2012, medical benefits in retirement for new hires and active employees covered under the Agreement were eliminated. For employees covered under the Agreement meeting certain age and service requirements, the Company will contribute a defined dollar amount towards the cost of retiree healthcare based upon the employee’s length of service. Similarly, effective February 1, 2012, benefits under the Company’s defined benefit pension plan sponsored for employees covered under the agreement were frozen. The Company will provide an enhanced contribution under its defined contribution 401 (k) plan as well as a transition contribution for older employees. Additionally, deductibles and co-payments will be added to the medical benefits for employees covered under the Agreement.

As a result of the agreement and related plan design changes, a remeasurement of fiscal year 2012 expense pursuant to ASC 715-30 and ASC 715-60 was required, resulting in plan curtailments. As a result of such curtailments during the quarter ended November 30, 2011, the pension liability was reduced by $4,743,000 with a credit to accumulated other comprehensive loss (AOCL) of $4,552,000 and a credit to income of $191,000.

16

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Further, the postretirement welfare plan liability was reduced by $12,161,000 and AOCL credited for $12,298,000, with a charge to income of $137,000. The activity in AOCL was recorded net of related income tax effects.

The Company accrues post-retirement benefits other than pensions, during the years that the employees render the necessary service, of the expected cost of providing those benefits to an employee and the employee’s beneficiaries and covered dependents.

7. Fair Value Measurements

The carrying values of all financial instruments classified as a current asset or a current liability approximate fair value because of the short maturity of these instruments. The fair value of marketable securities is determined by available market prices. The fair value exceeded the carrying value of the long term debt at February 28, 2013 and August 31, 2012 by $41,206,000 and $20,804,000, respectively.

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward Looking Statements

This Quarterly Report on Form 10-Q contains certain statements that constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements may include, among other things, United Refining Company and its subsidiaries current expectations with respect to future operating results, future performance of its refinery and retail operations, capital expenditures and other financial items. Words such as “expects”, “intends”, “plans”, “projects”, “believes”, “estimates”, “may”, “will”, “should”, “shall”, “anticipates”, “predicts”, and similar expressions typically identify such forward looking statements in this Quarterly Report on Form 10-Q.

By their nature, all forward looking statements involve risk and uncertainties. All phases of the Company’s operations involve risks and uncertainties, many of which are outside of the Company’s control, and any one of which, or a combination of which, could materially affect the Company’s results of operations and whether the forward looking statements ultimately prove to be correct. Actual results may differ materially from those contemplated by the forward looking statements for a number of reasons.

Although we believe our expectations are based on reasonable assumptions within the bounds of its knowledge, investors and prospective investors are cautioned that such statements are only projections and that actual events or results may differ materially depending on a variety of factors described in greater detail in the Company’s filings with the SEC, including quarterly reports on Form 10-Q, annual reports on Form 10-K, reports on Form 8-K, etc. In addition to the factors discussed elsewhere in this Quarterly Report on Form 10-Q, the Company’s actual consolidated quarterly or annual operating results have been affected in the past, or could be affected in the future, by additional factors, including, without limitation:

• the demand for and supply of crude oil and refined products;

• the spread between market prices for refined products and market prices for crude oil;

• repayment of debt;

• general economic, business and market conditions;

• risks and uncertainties with respect to the actions of actual or potential competitive suppliers of refined petroleum products in our markets;

• the possibility of inefficiencies or shutdowns in refinery operations or pipelines;

• the availability and cost of financing to us;

• environmental, tax and tobacco legislation or regulation;

• volatility of gasoline prices, margins and supplies;

• merchandising margins;

• labor costs;

• level of capital expenditures;

• customer traffic;

• weather conditions;

• acts of terrorism and war;

• business strategies;

• expansion and growth of operations;

• future projects and investments;

18

• future exposure to currency devaluations or exchange rate fluctuations;

• expected outcomes of legal and administrative proceedings and their expected effects on our financial position, results of operations and cash flows; and

• future operating results and financial condition.

All subsequent written and oral forward looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any such forward looking statements that may be made to reflect events or circumstances that occur, or which we become aware of, after the date of this Quarterly Report on Form 10-Q.

Recent Developments

The Company continues to be impacted by the volatility in petroleum markets in fiscal 2013. The lagged 3-2-1 crackspread is measured by the difference between the prices of crude oil contracts traded on the NYMEX for the preceding month to the prices of NYMEX gasoline and heating oil contracts in the current trading month. The Company uses a lagged crackspread as a margin indicator as it reflects the time period between the purchase of crude oil and its delivery to the refinery for processing. The lagged crackspread for the second quarter of fiscal 2013 was $32.89. Through March 28, 2013 the indicated lagged crackspread for the third quarter ending May 31, 2013 was $33.79, a $.90 increase from the average for the second quarter of fiscal 2013.

On March 6, 2013, United Refining Company, through its subsidiary, United Biofuels, Inc., acquired a partially completed 50 million gallon per year biodiesel facility in Brooklyn, New York. The state-of-the-art facility is estimated to become operational in approximately 12 months and upon completion, will be able to process a variety of feedstocks.

Results of Operations

The Company is a petroleum refiner and marketer in its primary market area of Western New York and Northwestern Pennsylvania. Operations are organized into two business segments: wholesale and retail.

The wholesale segment is responsible for the acquisition of crude oil, petroleum refining, supplying petroleum products to the retail segment and the marketing of petroleum products to wholesale and industrial customers. The retail segment sells petroleum products under the Kwik Fill^®, Citgo^® and Keystone^® brand names through a network of Company-operated retail units and convenience and grocery items through Company-owned gasoline stations and convenience stores under the Red Apple Food Mart^® and Country Fair^® brand names.

A discussion and analysis of the factors contributing to the Company’s results of operations are presented below. The accompanying Consolidated Financial Statements and related Notes, together with the following information, are intended to supply investors with a reasonable basis for evaluating the Company’s operations, but does not serve to predict the Company’s future performance.

19

Retail Operations:

	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
	(dollars in thousands)
Net Sales
Petroleum	$	333,847		$	336,383		$	702,634		$	688,247
Merchandise and other		62,380			63,455			129,940			131,910
Total Net Sales	$	396,227		$	399,838		$	832,574		$	820,157
Costs of goods sold	$	369,390		$	373,427		$	765,504		$	752,908
Selling, general and administrative expenses		34,022			33,050			68,808			66,267
Depreciation and amortization expenses		1,468			1,397			2,925			2,798
Segment Operating Loss	$	(8,653	)	$	(8,036	)	$	(4,663	)	$	(1,816	)
Retail Operating Data:
Petroleum sales (thousands of gallons)		90,828			94,371			185,874			191,870
Petroleum margin (a)	$	10,869		$	10,478		$	34,068		$	34,018
Petroleum margin ($/gallon) (b)		.1197			.1110			.1833			.1773
Merchandise and other margins	$	15,971		$	15,935		$	33,004		$	33,233
Merchandise margin (percent of sales)		25.6	%		25.1	%		25.4	%		25.2	%

(a) Includes the effect of intersegment purchases from the Company’s wholesale segment at prices which approximate market.

(b) Company management calculates petroleum margin per gallon by dividing petroleum gross margin by petroleum sales volumes. Management uses fuel margin per gallon calculations to compare profitability to other companies in the industry. Petroleum margin per gallon may not be comparable to similarly titled measures used by other companies in the industry.

Comparison of Fiscal Quarters Ended February 28, 2013 and February 29, 2012

Net Sales

Retail sales decreased during the fiscal quarter ended February 28, 2013 by $3.6 million or .9% from the comparable period in fiscal 2012 from $399.8 million to $396.2 million. The decrease was primarily due to $2.5 million in petroleum sales and $1.1 million in merchandise sales. The petroleum sales decrease resulted from a 3.5 million gallon or 3.8% decrease in retail petroleum volume, offset by a 3.1% increase in retail selling prices per gallon.

Costs of Goods Sold

Retail costs of goods sold decreased during the fiscal quarter ended February 28, 2013 by $4.0 million or 1.1% from the comparable period in fiscal 2012 from $373.4 million to $369.4 million. The decrease was primarily due to $1.5 million in petroleum purchase prices and freight cost of $.1 million , fuel tax of $1.3 million and merchandise cost of $1.1 million.

Selling, General and Administrative Expenses

Retail Selling, General and Administrative (“SG&A”) expenses increased during the fiscal quarter ended February 28, 2013 by $1.0 million or 2.9% from the comparable period in fiscal 2012 from $33.0 million to $34.0 million. This increase was primarily due to payroll costs of $.4 million, maintenance costs of $.3 million, credit/customer service costs of $.2 million and pension/post-retirement costs of $.1 million.

20

Comparison of Six Months Ended February 28, 2013 and February 29, 2012

Net Sales

Retail sales increased during the six months ended February 28, 2013 by $12.4 million or 1.5% for the comparable period in fiscal 2012 from $820.2 million to $832.6 million. The increase was primarily due to $14.4 million in petroleum sales, offset by a decrease of $2.0 million in merchandise sales. The petroleum sales increase resulted from a 5.4% increase in retail selling prices per gallon offset by a 6.0 million gallon or 3.4% decrease in sales volume.

Costs of Goods Sold

Retail costs of goods sold increased during the six months ended February 28, 2013 by $12.6 million or 1.7% for the comparable period in fiscal 2012 from $752.9 million to $765.5 million. The increase was primarily due to $15.6 million in petroleum purchase prices and freight costs of $.5 million offset by a decrease in merchandise costs of $1.7 million and fuel taxes of $1.8 million.

Selling, General and Administrative Expenses

Retail SG&A expenses increased during the six months ended February 28, 2013 by $2.5 million or 3.8% for the comparable period in fiscal 2012 from $66.3 million to $68.8 million. The increase was due to payroll costs of $.8 million, credit/customer service costs of $.4 million, environmental costs of $.4 million, supplies cost of $.2 million, maintenance costs of $.4 million and pension/post-retirement costs of $.3 million.

Wholesale Operations:

	Three Months Ended					Six Months Ended
	February 28,			February 29,		February 28,		February 29,
	2013			2012		2013		2012
	(dollars in thousands)
Net Sales (a)	$	473,882		$	449,006	$	994,597	$	972,718
Costs of goods sold (exclusive of depreciation and amortization and losses /(gains) on derivative contracts)		338,999			409,113		741,770		862,344
Losses / (gains) on derivative contracts		(365	)		11,839		2,319		(39,452	)
Selling, general and administrative expenses		6,674			4,890		12,702		12,320
Depreciation and amortization expenses		5,098			4,567		10,497		9,139
Segment Operating Income	$	123,476		$	18,597	$	227,309	$	128,367

21

Key Wholesale Operating Statistics:

	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
Refinery Product Yield (thousands of barrels)
Gasoline and gasoline blendstock		2,699			2,648			5,264			5,275
Distillates		1,405			1,468			2,827			2,917
Asphalt		1,908			1,787			3,714			3,724
Butane, propane, residual products, internally produced fuel and other (“Other”)		550			468			1,081			947
Total Product Yield		6,562			6,371			12,886			12,863
% Heavy Crude Oil of Total Refinery Throughput (b)		61	%		59	%		60	%		59	%
Crude throughput (thousand barrels per day)		66.2			64.9			65.8			66.2
Product Sales (thousand of barrels) (a)
Gasoline and gasoline blendstock		1,614			1,470			3,201			3,172
Distillates		1,160			1,131			2,341			2,234
Asphalt		1,555			1,501			3,329			3,622
Other		164			144			369			371
Total Product Sales Volume		4,493			4,246			9,240			9,399
Product Sales (dollars in thousands) (a)
Gasoline and gasoline blendstock	$	192,451		$	169,560		$	389,976		$	365,789
Distillates		155,116			146,022			317,508			289,118
Asphalt		117,028			124,512			266,415			295,111
Other		9,287			8,912			20,698			22,700
Total Product Sales	$	473,882		$	449,006		$	994,597		$	972,718

(a) Sources of total product sales include products manufactured at the refinery located in Warren, Pennsylvania and products purchased from third parties.

(b) The Company defines “heavy” crude oil as crude oil with an American Petroleum Institute specific gravity of 26 or less.

Comparison of Fiscal Quarters Ended February 28, 2013 and February 29, 2012

Net Sales

Wholesale sales increased during the three months ended February 28, 2013 by $24.9 million or 5.5% from the comparable period in fiscal 2012 from $449.0 million to $473.9 million. The increase was due to a 5.8% increase in wholesale volumes offset by a .3% decrease in wholesale prices.

Costs of Goods Sold (exclusive of depreciation and amortization and losses/(gains) on derivative contracts)

Wholesale costs of goods sold decreased during the three months ended February 28, 2013 by $70.1 million or 17.1% from the comparable period in fiscal 2012 from $409.1 million to $339.0 million. The decrease in wholesale costs of goods sold during this period was primarily due to a decrease in cost and volume of raw materials.

Losses / (Gains) on Derivative Contracts

During the three months ended February 28, 2013 and February 29, 2012, the Company recognized $(.4) million and $11.8 million of (gains)/losses in its Consolidated Statements of Operations, respectively. See also Footnote 3 to the Company’s Consolidated Financial Statements.

22

Selling, General and Administrative Expenses

Wholesale SG&A expenses increased during the three months ended February 28, 2013 by $1.8 million or 36.5% from the comparable period in fiscal 2012 from $4.9 million or 1.1% of net wholesale sales to $6.7 million or 1.4% of net wholesale sales. The increase was primarily due to payroll costs and professional services.

Comparison of Six Months Ended February 28, 2013 and February 29, 2012

Net Sales

Wholesale sales increased during the six months ended February 28, 2013 by $21.9 million or 2.2% from the comparable period in fiscal 2012 from $972.7 million to $994.6 million. The increase was due to a 4.0% increase in wholesale prices offset by 1.7% decrease in wholesale volume.

Costs of Goods Sold (exclusive of depreciation and amortization)

Wholesale costs of goods sold decreased during the six months ended February 28, 2013 by $120.6 million or 14.0% for the comparable period in fiscal 2012 from $862.3 million to $741.7 million. The decrease in wholesale costs of goods sold was primarily due to a decrease in the cost of raw materials and volumes.

Losses / (Gains) on Derivative Contracts

For the six months ended February 28, 2013 and February 29, 2012, the Company recognized $2.3 million and $(39.5) million of losses/(gains) in its Consolidated Statement of Operations, respectively. See also Footnote 3 to the Company’s Consolidated Financial Statements.

Selling, General and Administrative Expenses

Wholesale SG&A expenses remained relatively constant during the six months ended February 28, 2013 and fiscal 2012.

Consolidated Expenses:

Interest Expense, net

Net interest expense for the three months ended February 28, 2013 decreased $.4 million from the comparable period in fiscal 2012 from $10.3 million to $9.9 million.

Net interest expense for the six months ended February 28, 2013 decreased $1.4 million or .1% from the comparable period in fiscal 2012 from $20.5 million to $19.1 million.

Income Tax Expense

The Company’s effective tax rate for both the three and six months ended February 28, 2013 and February 29, 2012 was approximately 39% and 41%, respectively. This change is primarily due to the recognition of permanent book to tax adjustments.

Liquidity and Capital Resources

We operate in an environment where our liquidity and capital resources are impacted by changes in the price of crude oil and refined petroleum products, availability of credit, market uncertainty and a variety of additional factors beyond our control. Included in such factors are, among others, the level of customer product demand, weather conditions, governmental regulations, worldwide political conditions and overall market and economic conditions.

23

The following table summarizes selected measures of liquidity and capital sources (in thousands):

	February 28, 2013
Cash and cash equivalents	$	116,640
Working capital	$	374,397
Current ratio		4.6
Debt	$	360,100

Primary sources of liquidity have been cash and cash equivalents, and borrowing availability under a revolving line of credit. We believe available capital resources are adequate to meet our working capital, debt service, and capital expenditure requirements for existing operations.

Our cash and cash equivalents consist of bank balances and investments in money market funds. These investments have staggered maturity dates, none of which exceed three months. They have a high degree of liquidity since the securities are traded in public markets.

	Six Months Ended February 28, 2013
	(in millions)
Significant uses of cash
Investing activities:
Additions to deferred turnaround cost	$	(.2	)
Property, plant and equipment
Other general capital items (tank repairs, refinery piping, etc)		(4.0	)
Retail maintenance (blacktop, roof, HVAC, rehab)		(3.5	)
Retail purchase		(2.7	)
Non refinery capital equipment		(1.8	)
Environmental		(1.7	)
Retail petroleum upgrade		(.6	)
Total property, plant and equipment		(14.3	)
Net cash used in investing activities	$	(14.5	)
Financing activities:
Dividend to stockholder	$	(60.3	)
Principal reductions of long term debt		(.8	)
Net cash used in financing activities	$	(61.1	)
Working capital items:
Accounts payable increase	$	12.7
Accounts receivable decrease		11.1
Increase in inventory		(46.8	)
Prepaid expense increase		(29.7	)
Income taxes payable decrease		(12.2	)
Derivative liability decrease		(9.1	)
Sales, use and fuel taxes payable decrease		(6.0	)
Accrued liabilities decrease		(3.0	)
Amounts due from affiliated companies, net		(.4	)
Cash provided by working capital items	$	(83.4	)

24

We require a substantial investment in working capital which is susceptible to large variations during the year resulting from purchases of inventory and seasonal demands. Inventory purchasing activity is a function of sales activity and turnaround cycles for the different refinery units.

Maintenance and non-discretionary capital expenditures have averaged approximately $6.0 million annually over the last three years for the refining and marketing operations. Management does not foresee any increase in these maintenance and non-discretionary capital expenditures during fiscal year 2013 at this time.

Future liquidity, both short and long-term, will continue to be primarily dependent on realizing a refinery margin sufficient to cover fixed and variable expenses, including planned capital expenditures. We expect to be able to meet our working capital, capital expenditure, contractual obligations, letter of credit and debt service requirements out of cash flow from operations, cash on hand and borrowings under our Amended and Restated Revolving Credit Facility of $175,000,000. This provides the Company with flexibility relative to its cash flow requirements in light of market fluctuations, particularly involving crude oil prices and seasonal business cycles and will assist the Company in meeting its working capital, ongoing capital expenditure needs and for general corporate purposes. The agreement expires on May 18, 2016. Under the Amended and Restated Revolving Credit Facility, the applicable margin is calculated on the average unused availability as follows: (a) for base rate borrowing, at the greater of the Agent Bank’s prime rate or the Federal Funds Open Rate plus 1.5%; or the Daily LIBOR rate plus 3%; plus an applicable margin of 0% to .5%; (b) for euro-rate based borrowings, at the LIBOR Rate plus an applicable margin of 2.75% to 3.25%. The Agent Bank’s prime rate at February 28, 2013 was 3.25%.

The Amended and Restated Revolving Credit Facility is secured primarily by certain cash accounts, accounts receivable and inventory. Until maturity, we may borrow on a borrowing base formula as set forth in the facility. We had standby letters of credit of $6.5 million as of February 28, 2013 and there were no outstanding borrowings under the Amended and Restated Revolving Credit Facility resulting in net availability of $168.5 million. As of April 15, 2013, there were no outstanding borrowings under the Amended and Restated Revolving Credit Facility and there were standby letters of credit in the amount of $6.5 million, resulting in a net availability of $168.5 million and the Company had full access to it. The Company’s working capital ratio was 4.6 as of February 28, 2013.

Although we are not aware of any pending circumstances which would change our expectation, changes in the tax laws, the imposition of and changes in federal and state clean air and clean fuel requirements and other changes in environmental laws and regulations may also increase future capital expenditure levels. Future capital expenditures are also subject to business conditions affecting the industry. We continue to investigate strategic acquisitions and capital improvements to our existing facilities.

Federal, state and local laws and regulations relating to the environment affect nearly all of our operations. As is the case with all the companies engaged in similar industries, we face significant exposure from actual or potential claims and lawsuits involving environmental matters. Future expenditures related to environmental matters cannot be reasonably quantified in many circumstances due to the uncertainties as to required remediation methods and related clean-up cost estimates. We cannot predict what additional environmental legislation or regulations will be enacted or become effective in the future or how existing or future laws or regulations will be administered or interpreted with respect to products or activities to which they have not been previously applied.

Seasonal Factors

Seasonal factors affecting the Company’s business may cause variation in the prices and margins of some of the Company’s products. For example, demand for gasoline tends to be highest in spring and summer months, while demand for home heating oil and kerosene tends to be highest in winter months.

As a result, the margin on gasoline prices versus crude oil costs generally tends to increase in the spring and summer, while margins on home heating oil and kerosene tend to increase in the winter.

25

Inflation

The effect of inflation on the Company has not been significant during the last five fiscal years.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

The Company uses its Amended and Restated Revolving Credit Facility to finance a portion of its operations. This on-balance sheet financial instrument, to the extent it provides for variable rates, exposes the Company to interest rate risk resulting from changes in the Agent Bank’s Prime rate, the Federal Funds or LIBOR rate. As of April 15, 2013, there were no outstanding borrowings under the Amended and Restated Revolving Credit Facility.

From time to time, the Company uses derivatives to reduce its exposure to fluctuations in crude oil purchase costs and refining margins. Derivative products, specifically crude oil option contracts and crack spread option contracts are used to hedge the volatility of these items. The Company accounts for changes in the fair value of its contracts by marking them to market and recognizing any resulting gains or losses in its Statement of Operations.

At the quarter ended February 28, 2013, the Company had no derivative investments outstanding as part of its risk management strategy. The crackspread swaps expired in January 2013. These derivative instruments were being used by the Company to lock in margins on future sales by the Company of heating oil. See also Footnote 3 to the Company’s Consolidated Financial Statements.

Item 4. Controls and Procedures.

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of February 28, 2013. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of February 28, 2013, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

There have not been any changes in the Company’s internal controls over financial reporting that occurred during the Company’s fiscal quarter ended February 28, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

26

Part II OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

There have been no material changes in our Risk Factors disclosed in the Form 10-K for the year ended August 31, 2012.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit 31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101	Interactive XBRL Data

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

UNITED REFINING COMPANY

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

KIANTONE PIPELINE CORPORATION

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

UNITED REFINING COMPANY OF PENNSYLVANIA

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

KIANTONE PIPELINE COMPANY

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

UNITED JET CENTER, INC.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

KWIK-FILL CORPORATION

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

33

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

INDEPENDENT GASOLINE AND OIL COMPANY OF ROCHESTER, INC.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

BELL OIL CORP.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

PPC, INC.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

SUPER TEST PETROLEUM, INC.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

KWIK-FIL, INC.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

38

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

VULCAN ASPHALT REFINING CORPORATION

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 15, 2013

COUNTRY FAIR, INC.

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President and Chief Operating Officer

/s/ James E. Murphy

James E. Murphy

Vice President Finance

40

EX-31.1

Exhibit 31.1

CERTIFICATION

Pursuant to 18 U.S.C. Section 1350,

As adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John A. Catsimatidis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Refining Company (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 15, 2013	Signature:	/s/ John A. Catsimatidis
		John A. Catsimatidis
		Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

Pursuant to 18 U.S.C. Section 1350,

As adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, James E. Murphy, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Refining Company (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 15, 2013	Signature:	/s/ James E. Murphy
		James E. Murphy
		Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of United Refining Company, a Pennsylvania corporation (the “Company”), does hereby certify, to such officer’s knowledge, that:

The Quarterly Report on Form 10-Q for the quarter ended February 28, 2013 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 15, 2013	By:	/s/ John A. Catsimatidis
		John A. Catsimatidis
		Principal Executive Officer

Dated: April 15, 2013	By:	/s/ James E. Murphy
		James E. Murphy
		Principal Financial Officer

XML

Fair Value Measurements - Additional Information (Detail) (USD $)	Feb. 28, 2013	Aug. 31, 2012
Fair Value Measurements [Line Items]
Fair value of long term debt	$ 41,206,000	$ 20,804,000

XML

Subsidiary Guarantors - Additional Information (Detail) (10.50% Senior Secured Notes [Member])	Feb. 28, 2013
10.50% Senior Secured Notes [Member]
Guarantor Obligations [Line Items]
Senior Secured Notes, interest rate	10.50%

XML

Derivative Financial Instruments

6 Months Ended

Feb. 28, 2013

Derivative Financial Instruments

2. Derivative Financial Instruments

From time to time, the Company uses derivatives to reduce its exposure to fluctuations in crude oil purchase costs and refining margins. Derivative products, historically crude oil option contracts (puts) and crackspread option contracts have been used to hedge the volatility of these items. The Company does not enter such contracts for speculative purposes. The Company accounts for changes in the fair value of its contracts by marking them to market and recognizing any resulting gains or losses in its Statement of Operations. The Company includes the carrying amounts of the contracts in derivative asset or derivative liability in its Consolidated Balance Sheet.

At February 28, 2013, the Company had no derivative investments outstanding as part of its risk management strategy.

The fair value and balance sheet classification of our derivative instruments at February 28, 2013 and August 31, 2012 are as follows:

	February 28, 2013
	Notional Balance		Maturity Date		Derivative Liability
	(in thousands)
Not designated as hedges under ASC 815
Heating oil crackspread swaps		0 barrels		Not applicable	$	0
Total derivative instruments		0 barrels			$	0
	August 31, 2012
	Notional Balance		Maturity Date		Derivative Liability
	(in thousands)
Not designated as hedges under ASC 815
Heating oil and gasoline crackspread swaps		780 barrels		Monthly September 2012 through December 2012	$	9,098
Total derivative instruments		780 barrels			$	9,098

During the three months ended February 28, 2013 and February 29, 2012, the Company recognized $(365,000) and $11,839,000 of (gains)/losses in its Consolidated Statements of Operations, respectively. For the six months ended February 28, 2013 and February 29, 2012, the Company recognized $2,319,000 and $(39,452,000) of losses/(gains) in its Consolidated Statement of Operations, respectively.

XML

Subsidiary Guarantors - Schedule of Condensed Consolidating Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 54,689	$ 1,579
Cash flows from investing activities:
Additions to property, plant and equipment	(14,310)	(9,955)
Additions to deferred turnaround costs	(209)	(1,261)
Proceeds from asset dispositions		7
Net cash used in investing activities	(14,519)	(11,209)
Cash flows from financing activities:
Net borrowings on revolving credit facility		42,000
Dividends to stockholder	(60,277)	(31,008)
Principal reductions of long-term debt	(793)	(560)
Net cash (used in) provided by financing activities	(61,070)	10,432
Net (decrease) increase in cash and cash equivalents	(20,900)	802
Cash and cash equivalents, beginning of year	137,540	16,660
Cash and cash equivalents, end of period	116,640	17,462
Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	50,772	(3,981)
Cash flows from investing activities:
Additions to property, plant and equipment	(4,740)	(5,769)
Additions to deferred turnaround costs	(163)	(66)
Proceeds from asset dispositions
Net cash used in investing activities	(4,903)	(5,835)
Cash flows from financing activities:
Net borrowings on revolving credit facility		42,000
Dividends to stockholder	(60,277)	(31,008)
Principal reductions of long-term debt	(517)	(376)
Net cash (used in) provided by financing activities	(60,794)	10,616
Net (decrease) increase in cash and cash equivalents	(14,925)	800
Cash and cash equivalents, beginning of year	122,219	5,927
Cash and cash equivalents, end of period	107,294	6,727
Guarantors [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	3,917	5,560
Cash flows from investing activities:
Additions to property, plant and equipment	(9,570)	(4,186)
Additions to deferred turnaround costs	(46)	(1,195)
Proceeds from asset dispositions		7
Net cash used in investing activities	(9,616)	(5,374)
Cash flows from financing activities:
Principal reductions of long-term debt	(276)	(184)
Net cash (used in) provided by financing activities	(276)	(184)
Net (decrease) increase in cash and cash equivalents	(5,975)	2
Cash and cash equivalents, beginning of year	15,321	10,733
Cash and cash equivalents, end of period	9,346	10,735
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Additions to property, plant and equipment
Additions to deferred turnaround costs
Proceeds from asset dispositions
Net cash used in investing activities
Cash flows from financing activities:
Net borrowings on revolving credit facility
Dividends to stockholder
Principal reductions of long-term debt
Net cash (used in) provided by financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of period

XML

Subsidiary Guarantors - Schedule of Condensed Consolidating Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 870,109	$ 848,844	$ 1,827,171	$ 1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)	708,389	782,540	1,507,274	1,615,252
(Gains) / losses on derivative contracts	(365)	11,839	2,319	(39,452)
Selling, general and administrative expenses	40,696	37,940	81,510	78,587
Depreciation and amortization expenses	6,566	5,964	13,422	11,937
Total expenses	755,286	838,283	1,604,525	1,666,324
Operating Income (Loss)	114,823	10,561	222,646	126,551
Other income (expense):
Interest expense, net	(9,928)	(10,260)	(19,080)	(20,513)
Other, net	(699)	(703)	(1,588)	(1,280)
Total other income (expense)	(10,627)	(10,963)	(20,668)	(21,793)
Income (loss) before income tax expense (benefit)	104,196	(402)	201,978	104,758
Income tax expense (benefit)	40,634	(165)	78,769	42,949
Net income (loss)	63,562	(237)	123,209	61,809
United Refining Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	686,971	661,665	1,436,705	1,399,894
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)	552,173	621,933	1,184,009	1,290,101
(Gains) / losses on derivative contracts	(365)	11,839	2,319	(39,452)
Selling, general and administrative expenses	6,571	4,783	12,484	12,091
Depreciation and amortization expenses	4,887	4,411	10,074	8,821
Total expenses	563,266	642,966	1,208,886	1,271,561
Operating Income (Loss)	123,705	18,699	227,819	128,333
Other income (expense):
Interest expense, net	(9,803)	(10,147)	(18,833)	(20,282)
Other, net	(842)	(866)	(1,910)	(1,729)
Equity in net loss of subsidiaries	(5,850)	(4,956)	(3,529)	(1,092)
Total other income (expense)	(16,495)	(15,969)	(24,272)	(23,103)
Income (loss) before income tax expense (benefit)	107,210	2,730	203,547	105,230
Income tax expense (benefit)	43,648	2,967	80,338	43,421
Net income (loss)	63,562	(237)	123,209	61,809
Guarantors [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	397,485	401,067	835,053	822,665
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)	370,563	374,495	767,852	754,835
Selling, general and administrative expenses	34,125	33,157	69,026	66,496
Depreciation and amortization expenses	1,679	1,553	3,348	3,116
Total expenses	406,367	409,205	840,226	824,447
Operating Income (Loss)	(8,882)	(8,138)	(5,173)	(1,782)
Other income (expense):
Interest expense, net	(125)	(113)	(247)	(231)
Other, net	143	163	322	449
Total other income (expense)	18	50	75	218
Income (loss) before income tax expense (benefit)	(8,864)	(8,088)	(5,098)	(1,564)
Income tax expense (benefit)	(3,014)	(3,132)	(1,569)	(472)
Net income (loss)	(5,850)	(4,956)	(3,529)	(1,092)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	(214,347)	(213,888)	(444,587)	(429,684)
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)	(214,347)	(213,888)	(444,587)	(429,684)
Total expenses	(214,347)	(213,888)	(444,587)	(429,684)
Other income (expense):
Equity in net loss of subsidiaries	5,850	4,956	3,529	1,092
Total other income (expense)	5,850	4,956	3,529	1,092
Income (loss) before income tax expense (benefit)	5,850	4,956	3,529	1,092
Income tax expense (benefit)
Net income (loss)	5,850	4,956	3,529	1,092
United Refining Company & Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	870,109	848,844	1,827,171	1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)	708,389	782,540	1,507,274	1,615,252
(Gains) / losses on derivative contracts	(365)	11,839	2,319	(39,452)
Selling, general and administrative expenses	40,696	37,940	81,510	78,587
Depreciation and amortization expenses	6,566	5,964	13,422	11,937
Total expenses	755,286	838,283	1,604,525	1,666,324
Operating Income (Loss)	114,823	10,561	222,646	126,551
Other income (expense):
Interest expense, net	(9,928)	(10,260)	(19,080)	(20,513)
Other, net	(699)	(703)	(1,588)	(1,280)
Total other income (expense)	(10,627)	(10,963)	(20,668)	(21,793)
Income (loss) before income tax expense (benefit)	104,196	(402)	201,978	104,758
Income tax expense (benefit)	40,634	(165)	78,769	42,949
Net income (loss)	$ 63,562	$ (237)	$ 123,209	$ 61,809

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Segments of Business - Summarized Financial Information of Company's Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012	Aug. 31, 2012
Net Sales
Sales, Net	$ 870,109	$ 848,844	$ 1,827,171	$ 1,792,875
Operating Income (Loss)
Operating Income (Loss)	114,823	10,561	222,646	126,551
Depreciation and Amortization
Depreciation and Amortization	6,566	5,964	13,422	11,937
Capital Expenditures (including non-cash)
Capital Expenditures	8,791	4,003	15,260	10,705
Total Assets
Assets, Total	772,554	664,584	772,554	664,584	728,330
Retail [Member]
Net Sales
Sales, Net	396,227	399,838	832,574	820,157
Operating Income (Loss)
Operating Income (Loss)	(8,653)	(8,036)	(4,663)	(1,816)
Depreciation and Amortization
Depreciation and Amortization	1,468	1,397	2,925	2,798
Capital Expenditures (including non-cash)
Capital Expenditures	5,863	1,097	8,749	3,500
Total Assets
Assets, Total	171,608	161,387	171,608	161,387
Wholesale [Member]
Net Sales
Sales, Net	473,882	449,006	994,597	972,718
Intersegment Sales
Intersegment Sales	213,089	212,659	442,108	427,176
Operating Income (Loss)
Operating Income (Loss)	123,476	18,597	227,309	128,367
Depreciation and Amortization
Depreciation and Amortization	5,098	4,567	10,497	9,139
Capital Expenditures (including non-cash)
Capital Expenditures	2,928	2,906	6,511	7,205
Total Assets
Assets, Total	$ 600,946	$ 503,197	$ 600,946	$ 503,197

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Employee Benefit Plans - Components of Net Pension and Other Postretirement Benefit Costs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 164	$ 340	$ 328	$ 763
Interest cost on benefit obligation	1,279	2,672	2,565	3,990
Expected return on plan assets	(1,462)	(2,543)	(2,932)	(3,722)
Amortization and deferral of net loss	335	49	670	425
Net periodic benefit cost	316	518	631	1,456
Other Post-Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	235	151	473	617
Interest cost on benefit obligation	471	595	947	1,343
Amortization and deferral of net loss	31	(102)	62	(366)
Net periodic benefit cost	$ 737	$ 644	$ 1,482	$ 1,594

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Description of Business and Basis of Presentation

6 Months Ended

Feb. 28, 2013

Description of Business and Basis of Presentation

1. Description of Business and Basis of Presentation

The consolidated financial statements include the accounts of United Refining Company and its subsidiaries, United Refining Company of Pennsylvania and its subsidiaries, and Kiantone Pipeline Corporation (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

The Company is a petroleum refiner and marketer in its primary market area of Western New York and Northwestern Pennsylvania. Operations are organized into two business segments: wholesale and retail.

The wholesale segment is responsible for the acquisition of crude oil, petroleum refining, supplying petroleum products to the retail segment and the marketing of petroleum products to wholesale and industrial customers. The retail segment operates a network of Company operated retail units under the Red Apple Food Mart^® and Country Fair^® brand names selling petroleum products under the Kwik Fill^®, Citgo^® and Keystone^® brand names, as well as convenience and grocery items.

The Company is a wholly-owned subsidiary of United Refining, Inc., a wholly-owned subsidiary of United Acquisition Corp., which in turn is a wholly-owned subsidiary of Red Apple Group, Inc. (the “Parent”).

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended February 28, 2013 are not necessarily indicative of the results that may be expected for the year ending August 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the fiscal year ended August 31, 2012.

XML

Employee Benefit Plans - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended		3 Months Ended
	Feb. 28, 2013	Feb. 28, 2013	Feb. 29, 2012	Nov. 30, 2011 Pension Benefits [Member]	Nov. 30, 2011 Other Post-Retirement Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined pension plan contribution	$ 3,255,000
Pension liability		(2,380,000)	(1,152,000)	4,743,000	12,161,000
Accumulated other comprehensive loss				4,552,000	12,298,000
Liability credited to income				$ 191,000	$ 137,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Aug. 31, 2012
Current:
Cash and cash equivalents	$ 116,640	$ 137,540
Accounts receivable, net	109,526	120,599
Inventories, net	203,024	156,220
Prepaid expenses and other assets	49,551	19,813
Deferred income taxes		1,048
Amounts due from affiliated companies, net	498	89
Total current assets	479,239	435,309
Property, plant and equipment, net	258,261	253,387
Deferred financing costs, net	7,635	8,471
Goodwill	1,349	1,349
Tradename	10,500	10,500
Amortizable intangible assets, net	1,111	1,164
Deferred turnaround costs and other assets, net	14,459	18,150
Total assets	772,554	728,330
Current:
Current installments of long-term debt	1,495	1,318
Accounts payable	54,913	42,203
Derivative liability	0	9,098
Accrued liabilities	13,945	16,916
Income taxes payable	16,727	28,931
Sales, use and fuel taxes payable	15,919	21,892
Deferred income taxes	1,843
Total current liabilities	104,842	120,358
Long term debt: less current installments	358,605	358,678
Deferred income taxes	14,557	15,022
Deferred retirement benefits	89,949	92,996
Total liabilities	567,953	587,054
Commitments and contingencies
Stockholder's equity:
Common stock; $.10 par value per share - shares authorized 100; issued and outstanding 100
Additional paid-in capital	24,825	24,825
Retained earnings	198,920	135,988
Accumulated other comprehensive loss	(19,144)	(19,537)
Total stockholder's equity	204,601	141,276
Total liabilities and stockholder's equity	$ 772,554	$ 728,330

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Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Unrecognized post retirement income, taxes	$ 137	$ (6)	$ 274	$ 6,943

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Derivative Financial Instruments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Derivative Instruments And Hedging Activities [Line Items]
(Gains) / losses on derivative contracts	$ (365)	$ 11,839	$ 2,319	$ (39,452)

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Inventories - Additional Information (Detail) (USD $)	Feb. 28, 2013	Aug. 31, 2012
Inventory Net [Line Items]
Replacement cost of LIFO, over LIFO carrying values	$ 62,846,000	$ 77,727,000

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Cash flows from operating activities:
Net income	$ 123,209	$ 61,809
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,205	13,704
Unrealized gain on derivative contracts		(48,612)
Deferred income taxes	2,152	25,837
Loss on asset dispositions	590	695
Cash used in working capital items	(83,414)	(47,438)
Change in operating assets and liabilities:
Other assets, net	327	(3,264)
Deferred retirement benefits	(2,380)	(1,152)
Total adjustments	68,520	(60,230)
Net cash provided by operating activities	54,689	1,579
Cash flows from investing activities:
Additions to property, plant and equipment	(14,310)	(9,955)
Additions to deferred turnaround costs	(209)	(1,261)
Proceeds from asset dispositions		7
Net cash used in investing activities	(14,519)	(11,209)
Cash flows from financing activities:
Net borrowings on revolving credit facility		42,000
Dividends to stockholder	(60,277)	(31,008)
Principal reductions of long term debt	(793)	(560)
Net cash (used in) provided by financing activities	(61,070)	10,432
Net (decrease) increase in cash and cash equivalents	(20,900)	802
Cash and cash equivalents, beginning of year	137,540	16,660
Cash and cash equivalents, end of period	116,640	17,462
Cash provided by (used in) working capital items:
Accounts receivable, net	11,073	(1,821)
Derivative asset/liability	(9,098)	(1,813)
Inventories	(46,804)	(22,545)
Prepaid expenses and other assets	(29,738)	17,800
Amounts due from affiliated companies, net	(409)	688
Accounts payable	12,710	(35,899)
Accrued liabilities	(2,971)	(2,921)
Income taxes payable	(12,204)	(2,627)
Sales, use, and fuel taxes payable	(5,973)	1,700
Total change	(83,414)	(47,438)
Cash paid during the period for:
Interest	19,299	19,674
Income taxes	89,014	22,733
Non-cash investing activities:
Property additions & capital leases	$ 950	$ 750

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Consolidated Balance Sheets (Parenthetical) (USD $)	Feb. 28, 2013	Aug. 31, 2012
Common stock, par value per share	$ 0.10	$ 0.10
Common stock, shares authorized	100	100
Common stock, shares issued	100	100
Common stock, shares outstanding	100	100

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Subsidiary Guarantors (Tables)

6 Months Ended

Feb. 28, 2013

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

(in thousands)

	February 28, 2013												August 31, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Assets
Current:
Cash and cash equivalents	$	107,294		$	9,346		$	—		$	116,640		$	122,219		$	15,321		$	—		$	137,540
Accounts receivable, net		71,017			38,509			—			109,526			79,870			40,729			—			120,599
Inventories, net		173,242			29,782			—			203,024			127,469			28,751			—			156,220
Prepaid expenses and other assets		43,907			5,644			—			49,551			16,311			3,502			—			19,813
Deferred income taxes		—			—			—			—			(114	)		1,162			—			1,048
Amounts due from affiliated companies		—			498			—			498			344			(255	)		—			89
Intercompany		130,622			17,297			(147,919	)		—			117,992			16,703			(134,695	)		—
Total current assets		526,082			101,076			(147,919	)		479,239			464,091			105,913			(134,695	)		435,309
Property, plant and equipment, net		174,653			83,608			—			258,261			176,282			77,105			—			253,387
Deferred financing costs, net		7,635			—			—			7,635			8,471			—			—			8,471
Goodwill and other non-amortizable assets		—			11,849			—			11,849			—			11,849			—			11,849
Amortizable intangible assets, net		—			1,111			—			1,111			—			1,164			—			1,164
Deferred turnaround costs & other assets		11,602			2,857			—			14,459			15,173			2,977			—			18,150
Investment in subsidiaries		13,587			—			(13,587	)		—			17,018			—			(17,018	)		—
	$	733,559		$	200,501		$	(161,506	)	$	772,554		$	681,035		$	199,008		$	(151,713	)	$	728,330
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	959		$	536		$	—		$	1,495		$	939		$	379		$	—		$	1,318
Accounts payable		36,824			18,089			—			54,913			22,528			19,675			—			42,203
Derivative liability		—			—			—			—			9,098			—			—			9,098
Accrued liabilities		8,464			5,481			—			13,945			11,147			5,769			—			16,916
Income taxes payable		19,184			(2,457	)		—			16,727			25,866			3,065			—			28,931
Sales, use and fuel taxes payable		12,542			3,377			—			15,919			17,622			4,270			—			21,892
Deferred income taxes		3,004			(1,161	)		—			1,843			—			—			—			—
Intercompany		—			147,919			(147,919	)		—			—			134,695			(134,695	)		—
Total current liabilities		80,977			171,784			(147,919	)		104,842			87,200			167,853			(134,695	)		120,358
Long term debt: less current installments		356,242			2,363			—			358,605			356,448			2,230			—			358,678
Deferred income taxes		4,512			10,045			—			14,557			5,753			9,269			—			15,022
Deferred retirement benefits		87,227			2,722			—			89,949			90,358			2,638			—			92,996
Total liabilities		528,958			186,914			(147,919	)		567,953			539,759			181,990			(134,695	)		587,054
Commitment and contingencies Stockholder’s equity
Common stock, $.10 par value per share – shares authorized 100; issued and outstanding 100		—			18			(18	)		—			—			18			(18	)		—
Additional paid-in capital		24,825			10,651			(10,651	)		24,825			24,825			10,651			(10,651	)		24,825
Retained earnings		198,920			4,594			(4,594	)		198,920			135,988			8,123			(8,123	)		135,988
Accumulated other comprehensive loss		(19,144	)		(1,676	)		1,676			(19,144	)		(19,537	)		(1,774	)		1,774			(19,537	)
Total stockholder’s equity		204,601			13,587			(13,587	)		204,601			141,276			17,018			(17,018	)		141,276
	$	733,559		$	200,501		$	(161,506	)	$	772,554		$	681,035		$	199,008		$	(151,713	)	$	728,330

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

(in thousands)

	Three Months Ended February 28, 2013												Three Months Ended February 29, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	686,971		$	397,485		$	(214,347	)	$	870,109		$	661,665		$	401,067		$	(213,888	)	$	848,844
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)		552,173			370,563			(214,347	)		708,389			621,933			374,495			(213,888	)		782,540
(Gains) / losses on derivative contracts		(365	)		—			—			(365	)		11,839			—			—			11,839
Selling, general and administrative expenses		6,571			34,125			—			40,696			4,783			33,157			—			37,940
Depreciation and amortization expenses		4,887			1,679			—			6,566			4,411			1,553			—			5,964
		563,266			406,367			(214,347	)		755,286			642,966			409,205			(213,888	)		838,283
Operating income (loss)		123,705			(8,882	)		—			114,823			18,699			(8,138	)		—			10,561
Other income (expense):
Interest expense, net		(9,803	)		(125	)		—			(9,928	)		(10,147	)		(113	)		—			(10,260	)
Other, net		(842	)		143			—			(699	)		(866	)		163			—			(703	)
Equity in net loss of subsidiaries		(5,850	)		—			5,850			—			(4,956	)		—			4,956			—
		(16,495	)		18			5,850			(10,627	)		(15,969	)		50			4,956			(10,963	)
Income (loss) before income tax expense (benefit)		107,210			(8,864	)		5,850			104,196			2,730			(8,088	)		4,956			(402	)
Income tax expense (benefit)		43,648			(3,014	)		—			40,634			2,967			(3,132	)		—			(165	)
Net income (loss)	$	63,562		$	(5,850	)	$	5,850		$	63,562		$	(237	)	$	(4,956	)	$	4,956		$	(237	)

Condensed Consolidating Statements of Operations

(in thousands)

	Six Months Ended February 28, 2013												Six Months Ended February 29, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	1,436,705		$	835,053		$	(444,587	)	$	1,827,171		$	1,399,894		$	822,665		$	(429,684	)	$	1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses/(gains) on derivative contracts)		1,184,009			767,852			(444,587	)		1,507,274			1,290,101			754,835			(429,684	)		1,615,252
Losses/(gains) on derivative contracts		2,319			—			—			2,319			(39,452	)		—			—			(39,452	)
Selling, general and administrative expenses		12,484			69,026			—			81,510			12,091			66,496			—			78,587
Depreciation and amortization expenses		10,074			3,348			—			13,422			8,821			3,116			—			11,937
		1,208,886			840,226			(444,587	)		1,604,525			1,271,561			824,447			(429,684	)		1,666,324
Operating income (loss)		227,819			(5,173	)		—			222,646			128,333			(1,782	)		—			126,551
Other income (expense):
Interest expense, net		(18,833	)		(247	)		—			(19,080	)		(20,282	)		(231	)		—			(20,513	)
Other, net		(1,910	)		322			—			(1,588	)		(1,729	)		449			—			(1,280	)
Equity in net loss of subsidiaries		(3,529	)		—			3,529			—			(1,092	)		—			1,092			—
		(24,272	)		75			3,529			(20,668	)		(23,103	)		218			1,092			(21,793	)
Income (loss) before income tax expense (benefit)		203,547			(5,098	)		3,529			201,978			105,230			(1,564	)		1,092			104,758
Income tax expense (benefit)		80,338			(1,569	)		—			78,769			43,421			(472	)		—			42,949
Net income (loss)	$	123,209		$	(3,529	)	$	3,529		$	123,209		$	61,809		$	(1,092	)	$	1,092		$	61,809

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Six Months Ended February 28, 2013											Six Months Ended February 29, 2012
	Issuer			Guarantors			Eliminations		Consolidated			Issuer			Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	50,772		$	3,917		$	—	$	54,689		$	(3,981	)	$	5,560		$	—	$	1,579
Cash flows from investing activities:
Additions to property, plant and equipment		(4,740	)		(9,570	)		—		(14,310	)		(5,769	)		(4,186	)		—		(9,955	)
Additions to deferred turnaround costs		(163	)		(46	)		—		(209	)		(66	)		(1,195	)		—		(1,261	)
Proceeds from asset dispositions		—			—			—		—			—			7			—		7
Net cash used in investing activities		(4,903	)		(9,616	)		—		(14,519	)		(5,835	)		(5,374	)		—		(11,209	)
Cash flows from financing activities:
Net borrowings on revolving credit facility		—			—			—		—			42,000			—			—		42,000
Dividends to stockholder		(60,277	)		—			—		(60,277	)		(31,008	)		—			—		(31,008	)
Principal reductions of long-term debt		(517	)		(276	)		—		(793	)		(376	)		(184	)		—		(560	)
Net cash (used in) provided by financing activities		(60,794	)		(276	)		—		(61,070	)		10,616			(184	)		—		10,432
Net (decrease) increase in cash and cash equivalents		(14,925	)		(5,975	)		—		(20,900	)		800			2			—		802
Cash and cash equivalents, beginning of year		122,219			15,321			—		137,540			5,927			10,733			—		16,660
Cash and cash equivalents, end of period	$	107,294		$	9,346		$	—	$	116,640		$	6,727		$	10,735		$	—	$	17,462

XML

Document and Entity Information	6 Months Ended
	Feb. 28, 2013	Apr. 15, 2013
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	UNRF
Entity Registrant Name	UNITED REFINING CO
Entity Central Index Key	0000101462
Current Fiscal Year End Date	--08-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		100

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Segments of Business (Tables)

6 Months Ended

Feb. 28, 2013

Summarized Financial Information of Company's Reportable Segments

Summarized financial information regarding the Company’s reportable segments is presented in the following tables (in thousands):

	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
Net Sales
Retail	$	396,227		$	399,838		$	832,574		$	820,157
Wholesale		473,882			449,006			994,597			972,718
	$	870,109		$	848,844		$	1,827,171		$	1,792,875
Intersegment Sales
Wholesale	$	213,089		$	212,659		$	442,108		$	427,176
Operating Income (Loss)
Retail	$	(8,653	)	$	(8,036	)	$	(4,663	)	$	(1,816	)
Wholesale		123,476			18,597			227,309			128,367
	$	114,823		$	10,561		$	222,646		$	126,551
Depreciation and Amortization
Retail	$	1,468		$	1,397		$	2,925		$	2,798
Wholesale		5,098			4,567			10,497			9,139
	$	6,566		$	5,964		$	13,422		$	11,937
Capital Expenditures (including non-cash)
Retail	$	5,863		$	1,097		$	8,749		$	3,500
Wholesale		2,928			2,906			6,511			7,205
	$	8,791		$	4,003		$	15,260		$	10,705
Total Assets
Retail							$	171,608		$	161,387
Wholesale								600,946			503,197
							$	772,554		$	664,584

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Consolidated Statements of Operations (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Net sales	$ 870,109	$ 848,844	$ 1,827,171	$ 1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)	708,389	782,540	1,507,274	1,615,252
(Gains)/losses on derivative contracts (See Note 3)	(365)	11,839	2,319	(39,452)
Selling, general and administrative expenses	40,696	37,940	81,510	78,587
Depreciation and amortization expenses	6,566	5,964	13,422	11,937
Total costs and expenses	755,286	838,283	1,604,525	1,666,324
Operating income	114,823	10,561	222,646	126,551
Other income (expense):
Interest expense, net	(9,928)	(10,260)	(19,080)	(20,513)
Other, net	(699)	(703)	(1,588)	(1,280)
Total other income (expense)	(10,627)	(10,963)	(20,668)	(21,793)
Income (loss) before income tax expense (benefit)	104,196	(402)	201,978	104,758
Income tax expense (benefit)	40,634	(165)	78,769	42,949
Net income (loss)	$ 63,562	$ (237)	$ 123,209	$ 61,809

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Segments of Business

6 Months Ended

Feb. 28, 2013

Segments of Business

5. Segments of Business

Intersegment revenues are calculated using market prices and are eliminated upon consolidation. Summarized financial information regarding the Company’s reportable segments is presented in the following tables (in thousands):

	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
Net Sales
Retail	$	396,227		$	399,838		$	832,574		$	820,157
Wholesale		473,882			449,006			994,597			972,718
	$	870,109		$	848,844		$	1,827,171		$	1,792,875
Intersegment Sales
Wholesale	$	213,089		$	212,659		$	442,108		$	427,176
Operating Income (Loss)
Retail	$	(8,653	)	$	(8,036	)	$	(4,663	)	$	(1,816	)
Wholesale		123,476			18,597			227,309			128,367
	$	114,823		$	10,561		$	222,646		$	126,551
Depreciation and Amortization
Retail	$	1,468		$	1,397		$	2,925		$	2,798
Wholesale		5,098			4,567			10,497			9,139
	$	6,566		$	5,964		$	13,422		$	11,937
Capital Expenditures (including non-cash)
Retail	$	5,863		$	1,097		$	8,749		$	3,500
Wholesale		2,928			2,906			6,511			7,205
	$	8,791		$	4,003		$	15,260		$	10,705
Total Assets
Retail							$	171,608		$	161,387
Wholesale								600,946			503,197
							$	772,554		$	664,584

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Subsidiary Guarantors

6 Months Ended

Feb. 28, 2013

Subsidiary Guarantors

4. Subsidiary Guarantors

All of the Company’s wholly-owned subsidiaries fully and unconditionally guarantee on an unsecured basis, on a joint and several basis, the Company’s 10.50% Senior Secured Notes due 2018. There are no restrictions within the consolidated group on the ability of the Company or any of its subsidiaries to obtain loans from or pay dividends to other members of the consolidated group. Financial information of the Company’s wholly-owned subsidiary guarantors is as follows:

Condensed Consolidating Balance Sheets

(in thousands)

	February 28, 2013												August 31, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Assets
Current:
Cash and cash equivalents	$	107,294		$	9,346		$	—		$	116,640		$	122,219		$	15,321		$	—		$	137,540
Accounts receivable, net		71,017			38,509			—			109,526			79,870			40,729			—			120,599
Inventories, net		173,242			29,782			—			203,024			127,469			28,751			—			156,220
Prepaid expenses and other assets		43,907			5,644			—			49,551			16,311			3,502			—			19,813
Deferred income taxes		—			—			—			—			(114	)		1,162			—			1,048
Amounts due from affiliated companies		—			498			—			498			344			(255	)		—			89
Intercompany		130,622			17,297			(147,919	)		—			117,992			16,703			(134,695	)		—
Total current assets		526,082			101,076			(147,919	)		479,239			464,091			105,913			(134,695	)		435,309
Property, plant and equipment, net		174,653			83,608			—			258,261			176,282			77,105			—			253,387
Deferred financing costs, net		7,635			—			—			7,635			8,471			—			—			8,471
Goodwill and other non-amortizable assets		—			11,849			—			11,849			—			11,849			—			11,849
Amortizable intangible assets, net		—			1,111			—			1,111			—			1,164			—			1,164
Deferred turnaround costs & other assets		11,602			2,857			—			14,459			15,173			2,977			—			18,150
Investment in subsidiaries		13,587			—			(13,587	)		—			17,018			—			(17,018	)		—
	$	733,559		$	200,501		$	(161,506	)	$	772,554		$	681,035		$	199,008		$	(151,713	)	$	728,330
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	959		$	536		$	—		$	1,495		$	939		$	379		$	—		$	1,318
Accounts payable		36,824			18,089			—			54,913			22,528			19,675			—			42,203
Derivative liability		—			—			—			—			9,098			—			—			9,098
Accrued liabilities		8,464			5,481			—			13,945			11,147			5,769			—			16,916
Income taxes payable		19,184			(2,457	)		—			16,727			25,866			3,065			—			28,931
Sales, use and fuel taxes payable		12,542			3,377			—			15,919			17,622			4,270			—			21,892
Deferred income taxes		3,004			(1,161	)		—			1,843			—			—			—			—
Intercompany		—			147,919			(147,919	)		—			—			134,695			(134,695	)		—
Total current liabilities		80,977			171,784			(147,919	)		104,842			87,200			167,853			(134,695	)		120,358
Long term debt: less current installments		356,242			2,363			—			358,605			356,448			2,230			—			358,678
Deferred income taxes		4,512			10,045			—			14,557			5,753			9,269			—			15,022
Deferred retirement benefits		87,227			2,722			—			89,949			90,358			2,638			—			92,996
Total liabilities		528,958			186,914			(147,919	)		567,953			539,759			181,990			(134,695	)		587,054
Commitment and contingencies Stockholder’s equity
Common stock, $.10 par value per share – shares authorized 100; issued and outstanding 100		—			18			(18	)		—			—			18			(18	)		—
Additional paid-in capital		24,825			10,651			(10,651	)		24,825			24,825			10,651			(10,651	)		24,825
Retained earnings		198,920			4,594			(4,594	)		198,920			135,988			8,123			(8,123	)		135,988
Accumulated other comprehensive loss		(19,144	)		(1,676	)		1,676			(19,144	)		(19,537	)		(1,774	)		1,774			(19,537	)
Total stockholder’s equity		204,601			13,587			(13,587	)		204,601			141,276			17,018			(17,018	)		141,276
	$	733,559		$	200,501		$	(161,506	)	$	772,554		$	681,035		$	199,008		$	(151,713	)	$	728,330

Condensed Consolidating Statements of Operations

(in thousands)

	Three Months Ended February 28, 2013												Three Months Ended February 29, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	686,971		$	397,485		$	(214,347	)	$	870,109		$	661,665		$	401,067		$	(213,888	)	$	848,844
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and (gains)/losses on derivative contracts)		552,173			370,563			(214,347	)		708,389			621,933			374,495			(213,888	)		782,540
(Gains) / losses on derivative contracts		(365	)		—			—			(365	)		11,839			—			—			11,839
Selling, general and administrative expenses		6,571			34,125			—			40,696			4,783			33,157			—			37,940
Depreciation and amortization expenses		4,887			1,679			—			6,566			4,411			1,553			—			5,964
		563,266			406,367			(214,347	)		755,286			642,966			409,205			(213,888	)		838,283
Operating income (loss)		123,705			(8,882	)		—			114,823			18,699			(8,138	)		—			10,561
Other income (expense):
Interest expense, net		(9,803	)		(125	)		—			(9,928	)		(10,147	)		(113	)		—			(10,260	)
Other, net		(842	)		143			—			(699	)		(866	)		163			—			(703	)
Equity in net loss of subsidiaries		(5,850	)		—			5,850			—			(4,956	)		—			4,956			—
		(16,495	)		18			5,850			(10,627	)		(15,969	)		50			4,956			(10,963	)
Income (loss) before income tax expense (benefit)		107,210			(8,864	)		5,850			104,196			2,730			(8,088	)		4,956			(402	)
Income tax expense (benefit)		43,648			(3,014	)		—			40,634			2,967			(3,132	)		—			(165	)
Net income (loss)	$	63,562		$	(5,850	)	$	5,850		$	63,562		$	(237	)	$	(4,956	)	$	4,956		$	(237	)

Condensed Consolidating Statements of Operations

(in thousands)

	Six Months Ended February 28, 2013												Six Months Ended February 29, 2012
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	1,436,705		$	835,053		$	(444,587	)	$	1,827,171		$	1,399,894		$	822,665		$	(429,684	)	$	1,792,875
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses/(gains) on derivative contracts)		1,184,009			767,852			(444,587	)		1,507,274			1,290,101			754,835			(429,684	)		1,615,252
Losses/(gains) on derivative contracts		2,319			—			—			2,319			(39,452	)		—			—			(39,452	)
Selling, general and administrative expenses		12,484			69,026			—			81,510			12,091			66,496			—			78,587
Depreciation and amortization expenses		10,074			3,348			—			13,422			8,821			3,116			—			11,937
		1,208,886			840,226			(444,587	)		1,604,525			1,271,561			824,447			(429,684	)		1,666,324
Operating income (loss)		227,819			(5,173	)		—			222,646			128,333			(1,782	)		—			126,551
Other income (expense):
Interest expense, net		(18,833	)		(247	)		—			(19,080	)		(20,282	)		(231	)		—			(20,513	)
Other, net		(1,910	)		322			—			(1,588	)		(1,729	)		449			—			(1,280	)
Equity in net loss of subsidiaries		(3,529	)		—			3,529			—			(1,092	)		—			1,092			—
		(24,272	)		75			3,529			(20,668	)		(23,103	)		218			1,092			(21,793	)
Income (loss) before income tax expense (benefit)		203,547			(5,098	)		3,529			201,978			105,230			(1,564	)		1,092			104,758
Income tax expense (benefit)		80,338			(1,569	)		—			78,769			43,421			(472	)		—			42,949
Net income (loss)	$	123,209		$	(3,529	)	$	3,529		$	123,209		$	61,809		$	(1,092	)	$	1,092		$	61,809

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Six Months Ended February 28, 2013											Six Months Ended February 29, 2012
	Issuer			Guarantors			Eliminations		Consolidated			Issuer			Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	50,772		$	3,917		$	—	$	54,689		$	(3,981	)	$	5,560		$	—	$	1,579
Cash flows from investing activities:
Additions to property, plant and equipment		(4,740	)		(9,570	)		—		(14,310	)		(5,769	)		(4,186	)		—		(9,955	)
Additions to deferred turnaround costs		(163	)		(46	)		—		(209	)		(66	)		(1,195	)		—		(1,261	)
Proceeds from asset dispositions		—			—			—		—			—			7			—		7
Net cash used in investing activities		(4,903	)		(9,616	)		—		(14,519	)		(5,835	)		(5,374	)		—		(11,209	)
Cash flows from financing activities:
Net borrowings on revolving credit facility		—			—			—		—			42,000			—			—		42,000
Dividends to stockholder		(60,277	)		—			—		(60,277	)		(31,008	)		—			—		(31,008	)
Principal reductions of long-term debt		(517	)		(276	)		—		(793	)		(376	)		(184	)		—		(560	)
Net cash (used in) provided by financing activities		(60,794	)		(276	)		—		(61,070	)		10,616			(184	)		—		10,432
Net (decrease) increase in cash and cash equivalents		(14,925	)		(5,975	)		—		(20,900	)		800			2			—		802
Cash and cash equivalents, beginning of year		122,219			15,321			—		137,540			5,927			10,733			—		16,660
Cash and cash equivalents, end of period	$	107,294		$	9,346		$	—	$	116,640		$	6,727		$	10,735		$	—	$	17,462

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Inventories - Schedule of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Aug. 31, 2012
Inventory [Line Items]
Crude Oil	$ 52,272	$ 40,419
Petroleum Products	102,084	66,296
Total @ LIFO	154,356	106,715
Merchandise	23,143	23,707
Supplies	25,525	25,798
Total @ FIFO	48,668	49,505
Total Inventory	$ 203,024	$ 156,220

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Employee Benefit Plans (Tables)

6 Months Ended

Feb. 28, 2013

Components of Net Pension and Other Postretirement Benefit Costs

For the periods ended February 28, 2013 and February 29, 2012, net pension and other postretirement benefit costs were comprised of the following:

	Pension Benefits
	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
	(in thousands)
Service cost	$	164		$	340		$	328		$	763
Interest cost on benefit obligation		1,279			2,672			2,565			3,990
Expected return on plan assets		(1,462	)		(2,543	)		(2,932	)		(3,722	)
Amortization and deferral of net loss		335			49			670			425
Net periodic benefit cost	$	316		$	518		$	631		$	1,456

	Other Post-Retirement Benefits
	Three Months Ended					Six Months Ended
	February 28,		February 29,			February 28,		February 29,
	2013		2012			2013		2012
	(in thousands)
Service cost	$	235	$	151		$	473	$	617
Interest cost on benefit obligation		471		595			947		1,343
Amortization and deferral of net loss		31		(102	)		62		(366	)
Net periodic benefit cost	$	737	$	644		$	1,482	$	1,594

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Derivative Financial Instruments (Tables)

6 Months Ended

Feb. 28, 2013

Fair Value and Balance Sheet Classification of Derivative Instruments

The fair value and balance sheet classification of our derivative instruments at February 28, 2013 and August 31, 2012 are as follows:

	February 28, 2013
	Notional Balance		Maturity Date		Derivative Liability
	(in thousands)
Not designated as hedges under ASC 815
Heating oil crackspread swaps		0 barrels		Not applicable	$	0
Total derivative instruments		0 barrels			$	0
	August 31, 2012
	Notional Balance		Maturity Date		Derivative Liability
	(in thousands)
Not designated as hedges under ASC 815
Heating oil and gasoline crackspread swaps		780 barrels		Monthly September 2012 through December 2012	$	9,098
Total derivative instruments		780 barrels			$	9,098

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Employee Benefit Plans

6 Months Ended

Feb. 28, 2013

Employee Benefit Plans

6. Employee Benefit Plans

For the periods ended February 28, 2013 and February 29, 2012, net pension and other postretirement benefit costs were comprised of the following:

	Pension Benefits
	Three Months Ended						Six Months Ended
	February 28,			February 29,			February 28,			February 29,
	2013			2012			2013			2012
	(in thousands)
Service cost	$	164		$	340		$	328		$	763
Interest cost on benefit obligation		1,279			2,672			2,565			3,990
Expected return on plan assets		(1,462	)		(2,543	)		(2,932	)		(3,722	)
Amortization and deferral of net loss		335			49			670			425
Net periodic benefit cost	$	316		$	518		$	631		$	1,456

	Other Post-Retirement Benefits
	Three Months Ended					Six Months Ended
	February 28,		February 29,			February 28,		February 29,
	2013		2012			2013		2012
	(in thousands)
Service cost	$	235	$	151		$	473	$	617
Interest cost on benefit obligation		471		595			947		1,343
Amortization and deferral of net loss		31		(102	)		62		(366	)
Net periodic benefit cost	$	737	$	644		$	1,482	$	1,594

As of February 28, 2013, $3,255,000 of contributions have been made to the Company pension plans for the fiscal year ending August 31, 2013.

In November 2011, the Company reached an agreement with the International Union of Operating Engineers Local 95, which represents the employees operating the refinery. The new agreement was effective February 1, 2012 and expires on February 1, 2017. Under the new collective bargaining agreement (Agreement), changes were made to healthcare and pension benefits provided by the Company. Effective February 1, 2012, medical benefits in retirement for new hires and active employees covered under the Agreement were eliminated. For employees covered under the Agreement meeting certain age and service requirements, the Company will contribute a defined dollar amount towards the cost of retiree healthcare based upon the employee’s length of service. Similarly, effective February 1, 2012, benefits under the Company’s defined benefit pension plan sponsored for employees covered under the agreement were frozen. The Company will provide an enhanced contribution under its defined contribution 401 (k) plan as well as a transition contribution for older employees. Additionally, deductibles and co-payments will be added to the medical benefits for employees covered under the Agreement.

As a result of the agreement and related plan design changes, a remeasurement of fiscal year 2012 expense pursuant to ASC 715-30 and ASC 715-60 was required, resulting in plan curtailments. As a result of such curtailments during the quarter ended November 30, 2011, the pension liability was reduced by $4,743,000 with a credit to accumulated other comprehensive loss (AOCL) of $4,552,000 and a credit to income of $191,000. Further, the postretirement welfare plan liability was reduced by $12,161,000 and AOCL credited for $12,298,000, with a charge to income of $137,000. The activity in AOCL was recorded net of related income tax effects.

The Company accrues post-retirement benefits other than pensions, during the years that the employees render the necessary service, of the expected cost of providing those benefits to an employee and the employee’s beneficiaries and covered dependents.

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Fair Value Measurements

6 Months Ended

Feb. 28, 2013

Fair Value Measurements

7. Fair Value Measurements

The carrying values of all financial instruments classified as a current asset or a current liability approximate fair value because of the short maturity of these instruments. The fair value of marketable securities is determined by available market prices. The fair value exceeded the carrying value of the long term debt at February 28, 2013 and August 31, 2012 by $41,206,000 and $20,804,000, respectively.

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Inventories (Tables)

6 Months Ended

Feb. 28, 2013

Schedule of Inventories

Inventories consist of the following:

	February 28, 2013		August 31, 2012
	(in thousands)
Crude Oil	$	52,272	$	40,419
Petroleum Products		102,084		66,296
Total @ LIFO		154,356		106,715
Merchandise		23,143		23,707
Supplies		25,525		25,798
Total @ FIFO		48,668		49,505
Total Inventory	$	203,024	$	156,220

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Derivative Financial Instruments - Fair Value and Balance Sheet Classification of Derivative Instruments (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Feb. 28, 2013 Boe	Aug. 31, 2012 Boe
Derivative Instruments And Hedging Activities [Line Items]
Total derivative instruments, Notional Balance	0	780,000
Total derivative instruments, Derivative Liability	$ 0	$ 9,098
Not designated as hedges under ASC 815 [Member]
Derivative Instruments And Hedging Activities [Line Items]
Total derivative instruments, Notional Balance	0	780,000
Not designated as hedges under ASC 815 [Member] | Heating oil and gasoline crackspread swaps [Member]
Derivative Instruments And Hedging Activities [Line Items]
Derivative instruments, Maturity Date	Not applicable	Monthly September 2012 through December 2012
Total derivative instruments, Derivative Liability	$ 0	$ 9,098

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Subsidiary Guarantors - Schedule of Condensed Consolidating Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Aug. 31, 2012	Feb. 29, 2012	Aug. 31, 2011
Current:
Cash and cash equivalents	$ 116,640	$ 137,540	$ 17,462	$ 16,660
Accounts receivable, net	109,526	120,599
Inventories, net	203,024	156,220
Prepaid expenses and other assets	49,551	19,813
Deferred income taxes		1,048
Amounts due from affiliated companies	498	89
Total current assets	479,239	435,309
Property, plant and equipment, net	258,261	253,387
Deferred financing costs, net	7,635	8,471
Goodwill and other non-amortizable assets	11,849	11,849
Amortizable intangible assets, net	1,111	1,164
Deferred turnaround costs & other assets	14,459	18,150
Total assets	772,554	728,330	664,584
Current:
Current installments of long-term debt	1,495	1,318
Accounts payable	54,913	42,203
Derivative liability	0	9,098
Accrued liabilities	13,945	16,916
Income taxes payable	16,727	28,931
Sales, use and fuel taxes payable	15,919	21,892
Deferred income taxes	1,843
Total current liabilities	104,842	120,358
Long term debt: less current installments	358,605	358,678
Deferred income taxes	14,557	15,022
Deferred retirement benefits	89,949	92,996
Total liabilities	567,953	587,054
Commitment and contingencies
Stockholder's equity
Common stock, $.10 par value per share - shares authorized 100; issued and outstanding 100
Additional paid-in capital	24,825	24,825
Retained earnings	198,920	135,988
Accumulated other comprehensive loss	(19,144)	(19,537)
Total stockholder's equity	204,601	141,276
Total liabilities and shareholders equity	772,554	728,330
United Refining Company [Member]
Current:
Cash and cash equivalents	107,294	122,219
Accounts receivable, net	71,017	79,870
Inventories, net	173,242	127,469
Prepaid expenses and other assets	43,907	16,311
Deferred income taxes		(114)
Amounts due from affiliated companies		344
Intercompany	130,622	117,992
Total current assets	526,082	464,091
Property, plant and equipment, net	174,653	176,282
Deferred financing costs, net	7,635	8,471
Deferred turnaround costs & other assets	11,602	15,173
Investment in subsidiaries	13,587	17,018
Total assets	733,559	681,035
Current:
Current installments of long-term debt	959	939
Accounts payable	36,824	22,528
Derivative liability		9,098
Accrued liabilities	8,464	11,147
Income taxes payable	19,184	25,866
Sales, use and fuel taxes payable	12,542	17,622
Deferred income taxes	3,004
Total current liabilities	80,977	87,200
Long term debt: less current installments	356,242	356,448
Deferred income taxes	4,512	5,753
Deferred retirement benefits	87,227	90,358
Total liabilities	528,958	539,759
Commitment and contingencies
Stockholder's equity
Additional paid-in capital	24,825	24,825
Retained earnings	198,920	135,988
Accumulated other comprehensive loss	(19,144)	(19,537)
Total stockholder's equity	204,601	141,276
Total liabilities and shareholders equity	733,559	681,035
Guarantors [Member]
Current:
Cash and cash equivalents	9,346	15,321	10,735	10,733
Accounts receivable, net	38,509	40,729
Inventories, net	29,782	28,751
Prepaid expenses and other assets	5,644	3,502
Deferred income taxes		1,162
Amounts due from affiliated companies	498	(255)
Intercompany	17,297	16,703
Total current assets	101,076	105,913
Property, plant and equipment, net	83,608	77,105
Goodwill and other non-amortizable assets	11,849	11,849
Amortizable intangible assets, net	1,111	1,164
Deferred turnaround costs & other assets	2,857	2,977
Total assets	200,501	199,008
Current:
Current installments of long-term debt	536	379
Accounts payable	18,089	19,675
Accrued liabilities	5,481	5,769
Income taxes payable	(2,457)	3,065
Sales, use and fuel taxes payable	3,377	4,270
Deferred income taxes	(1,161)
Intercompany	147,919	134,695
Total current liabilities	171,784	167,853
Long term debt: less current installments	2,363	2,230
Deferred income taxes	10,045	9,269
Deferred retirement benefits	2,722	2,638
Total liabilities	186,914	181,990
Commitment and contingencies
Stockholder's equity
Common stock, $.10 par value per share - shares authorized 100; issued and outstanding 100	18	18
Additional paid-in capital	10,651	10,651
Retained earnings	4,594	8,123
Accumulated other comprehensive loss	(1,676)	(1,774)
Total stockholder's equity	13,587	17,018
Total liabilities and shareholders equity	200,501	199,008
Eliminations [Member]
Current:
Cash and cash equivalents
Intercompany	(147,919)	(134,695)
Total current assets	(147,919)	(134,695)
Investment in subsidiaries	(13,587)	(17,018)
Total assets	(161,506)	(151,713)
Current:
Intercompany	(147,919)	(134,695)
Total current liabilities	(147,919)	(134,695)
Total liabilities	(147,919)	(134,695)
Commitment and contingencies
Stockholder's equity
Common stock, $.10 par value per share - shares authorized 100; issued and outstanding 100	(18)	(18)
Additional paid-in capital	(10,651)	(10,651)
Retained earnings	(4,594)	(8,123)
Accumulated other comprehensive loss	1,676	1,774
Total stockholder's equity	(13,587)	(17,018)
Total liabilities and shareholders equity	$ (161,506)	$ (151,713)

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Net income (loss)	$ 63,562	$ (237)	$ 123,209	$ 61,809
Other comprehensive income (loss), net of taxes:
Unrecognized post retirement income, net of taxes of $137 and $(6) for the three months ended February 28, 2013 and February 29, 2012, respectively and $274 and $6,943 for the six months ended February 28, 2013 and February 29, 2012, respectively	196	(9)	393	9,991
Other comprehensive income (loss)	196	(9)	393	9,991
Total comprehensive income (loss)	$ 63,758	$ (246)	$ 123,602	$ 71,800

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Inventories

6 Months Ended

Feb. 28, 2013

Inventories

3. Inventories

Inventories are stated at the lower of cost or market, with cost being determined under the Last-in, First-out (LIFO) method for crude oil and petroleum product inventories and the First-in, First-out (FIFO) method for merchandise. Supply inventories are stated at either the lower of cost or market or replacement cost and include various parts for the refinery operations.

Inventories consist of the following:

	February 28, 2013		August 31, 2012
	(in thousands)
Crude Oil	$	52,272	$	40,419
Petroleum Products		102,084		66,296
Total @ LIFO		154,356		106,715
Merchandise		23,143		23,707
Supplies		25,525		25,798
Total @ FIFO		48,668		49,505
Total Inventory	$	203,024	$	156,220

As of February 28, 2013 and August 31, 2012, the replacement cost of LIFO inventories exceeded their LIFO carrying values by approximately $62,846,000 and $77,727,000, respectively.

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Subsidiary Guarantors - Schedule of Condensed Consolidating Balance Sheets (Parenthetical) (Detail) (USD $)	Feb. 28, 2013	Aug. 31, 2012
Condensed Financial Statements, Captions [Line Items]
Common stock, par value per share	$ 0.10	$ 0.10
Common stock, shares authorized	100	100
Common stock, shares issued	100	100
Common stock, shares outstanding	100	100

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Description of Business and Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Feb. 28, 2013 Segment
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of business segments	2