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 May 31, 2014

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 July 15, 2014, 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 – May 31, 2014 (unaudited) and August 31, 2013		4
	Consolidated Statements of Operations – Quarter and Nine Months Ended May 31, 2014 and 2013 (unaudited)		5
	Consolidated Statements of Comprehensive Income – Quarter and Nine Months Ended May 31, 2014 and 2013 (unaudited)		6
	Consolidated Statements of Cash Flows – Nine Months Ended May 31, 2014 and 2013 (unaudited)		7
	Notes to Consolidated Financial Statements (unaudited)		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		14
Item 3.	Quantitative and Qualitative Disclosures about Market Risk.		22
Item 4.	Controls and Procedures.		22
PART II. OTHER INFORMATION			23
Item 1.	Legal Proceedings.		23
Item 1A.	Risk Factors.		23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.		23
Item 3.	Defaults Upon Senior Securities.		23
Item 4.	Mine Safety Disclosures.		23
Item 5.	Other Information.		23
Item 6.	Exhibits.		23
Signatures.			24

3

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share amounts)

	May 31, 2014 (Unaudited)			August 31, 2013
Assets
Current:
Cash and cash equivalents	$	46,033		$	158,537
Accounts receivable, net		108,018			125,196
Refundable income taxes		—			20,890
Inventories, net		248,227			130,966
Prepaid income taxes		6,532			—
Prepaid expenses and other assets		57,136			42,093
Total current assets		465,946			477,682
Property, plant and equipment, net		309,697			289,132
Deferred financing costs, net		3,882			4,803
Goodwill		1,349			1,349
Tradename		10,500			10,500
Amortizable intangible assets, net		977			1,057
Deferred turnaround costs and other assets, net		37,416			11,772
	$	829,767		$	796,295
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	1,599		$	1,592
Accounts payable		65,269			54,170
Accrued liabilities		24,772			18,715
Income taxes payable		—			8,587
Sales, use and fuel taxes payable		23,693			19,247
Deferred income taxes		365			365
Amounts due to affiliated companies, net		823			434
Total current liabilities		116,521			103,110
Long term debt: less current installments		238,098			237,114
Deferred income taxes		31,060			29,193
Deferred retirement benefits		65,396			69,675
Total liabilities		451,075			439,092
Commitments and contingencies
Stockholder’s equity:
Common stock; $.10 par value per share – shares authorized 100; issued and outstanding 100		—			—
Series A Preferred stock; $1,000 par value per share – shares authorized 25,000; issued and outstanding 14,116		14,116			14,116
Additional paid-in capital		157,251			159,844
Retained earnings		214,930			190,333
Accumulated other comprehensive loss		(7,605	)		(7,090	)
Total stockholder’s equity		378,692			357,203
	$	829,767		$	796,295

See accompanying notes to consolidated financial statements.

4

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Statements of Operations – (Unaudited)

(in thousands)

	Three Months Ended May 31,						Nine Months Ended May 31,
	2014			2013			2014			2013
Net sales	$	784,269		$	883,520		$	2,449,703		$	2,710,691
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses on derivative contracts)		722,327			752,047			2,183,453			2,259,321
Losses on derivative contracts		—			—			—			2,319
Selling, general and administrative expenses		41,942			41,307			124,869			122,817
Depreciation and amortization expenses		7,199			6,478			21,329			19,900
		771,468			799,832			2,329,651			2,404,357
Operating income		12,801			83,688			120,052			306,334
Other expense:
Interest expense, net		(6,597	)		(9,878	)		(19,700	)		(28,958	)
Other, net		(905	)		(738	)		(2,302	)		(2,326	)
		(7,502	)		(10,616	)		(22,002	)		(31,284	)
Income before income tax expense		5,299			73,072			98,050			275,050
Income tax expense		2,067			28,513			38,235			107,282
Net income	$	3,232		$	44,559		$	59,815		$	167,768

See accompanying notes to consolidated financial statements.

5

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income – (Unaudited)

(in thousands)

	Three Months  Ended May 31,					Nine Months Ended May 31,
	2014			2013		2014			2013
Net income	$	3,232		$	44,559	$	59,815		$	167,768
Other comprehensive (loss) income, net of taxes:
Unrecognized post retirement (loss) income, net of taxes of $(119) and $136 for the three months ended May 31, 2014 and 2013, respectively and $(358) and $410 for the nine months ended May 31, 2014 and 2013, respectively		(172	)		197		(515	)		590
Other comprehensive (loss) income		(172	)		197		(515	)		590
Total comprehensive income	$	3,060		$	44,756	$	59,300		$	168,358

See accompanying notes to consolidated financial statements.

6

UNITED REFINING COMPANY AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Unaudited)

(in thousands)

	Nine Months Ended May 31,
	2014			2013
Cash flows from operating activities:
Net income	$	59,815		$	167,768
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		23,074			21,490
Deferred income taxes		2,225			2,810
Loss on asset dispositions		1,045			530
Cash used in working capital items		(87,364	)		(80,886	)
Change in operating assets and liabilities:
Other assets, net		507			370
Deferred retirement benefits		(5,152	)		(2,555	)
Total adjustments		(65,665	)		(58,241	)
Net cash (used in) provided by operating activities		(5,850	)		109,527
Cash flows from investing activities:
Additions to property, plant and equipment		(36,608	)		(29,466	)
Additions to deferred turnaround costs		(32,219	)		(316	)
Proceeds from asset dispositions		58			75
Net cash used in investing activities		(68,769	)		(29,707	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		1,426			—
Dividends to preferred shareholder and common stockholder		(35,218	)		(92,058	)
Principal reductions of long-term debt		(1,500	)		(1,210	)
Distribution to parent under the tax sharing agreement		(2,593	)		—
Net cash used in financing activities		(37,885	)		(93,268	)
Net decrease in cash and cash equivalents		(112,504	)		(13,448	)
Cash and cash equivalents, beginning of year		158,537			137,540
Cash and cash equivalents, end of period	$	46,033		$	124,092
Cash provided by (used in) working capital items:
Accounts receivable, net	$	17,178		$	16,718
Refundable income taxes		20,890			—
Inventories, net		(117,261	)		(70,241	)
Prepaid income taxes		(6,532	)		—
Prepaid expenses and other assets		(15,043	)		(25,249	)
Amounts due to affiliated companies, net		389			833
Accounts payable		11,099			17,218
Derivative liability		—			(9,098	)
Accrued liabilities		6,057			7,800
Income taxes payable		(8,587	)		(17,941	)
Sales, use, and fuel taxes payable		4,446			(926	)
Total change	$	(87,364	)	$	(80,886	)
Cash paid during the period for:
Interest	$	12,954		$	19,368
Income taxes	$	48,950		$	122,774
Non-cash investing activities:
Property additions & capital leases	$	241		$	1,693

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, United Biofuels, Inc. 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 nine months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the year ending August 31, 2014. 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, 2013.

2. 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:

	May 31, 2014		August 31, 2013
	(in thousands)
Crude Oil	$	85,208	$	21,344
Petroleum Products		108,934		60,094
Total @ LIFO		194,142		81,438
Merchandise		24,714		24,002
Supplies		29,371		25,526
Total @ FIFO		54,085		49,528
Total Inventory	$	248,227	$	130,966

8

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

As of May 31, 2014 and August 31, 2013, the replacement cost of LIFO inventories exceeded their LIFO carrying values by approximately $93,278,000 and $108,984,000, respectively.

3. 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 May 31,				Nine Months Ended May 31,
	2014		2013		2014			2013
Net Sales
Retail	$	436,564	$	436,697	$	1,243,048		$	1,269,271
Wholesale		347,705		446,823		1,206,655			1,441,420
	$	784,269	$	883,520	$	2,449,703		$	2,710,691
Intersegment Sales
Wholesale	$	240,360	$	229,942	$	657,951		$	672,050
Operating Income (Loss)
Retail	$	3,238	$	2,678	$	(1,292	)	$	(1,985	)
Wholesale		9,563		81,010		121,344			308,319
	$	12,801	$	83,688	$	120,052		$	306,334
Depreciation and Amortization
Retail	$	1,610	$	1,453	$	4,749		$	4,378
Wholesale		5,589		5,025		16,580			15,522
	$	7,199	$	6,478	$	21,329		$	19,900
					May 31, 2014			August 31, 2013
Total Assets
Retail					$	186,717		$	182,662
Wholesale						643,050			613,633
					$	829,767		$	796,295

9

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)

	May 31, 2014												August 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Assets
Current:
Cash and cash equivalents	$	28,881		$	17,152		$	—		$	46,033		$	141,386		$	17,151		$	—		$	158,537
Accounts receivable, net		66,844			41,174			—			108,018			83,800			41,396			—			125,196
Refundable income taxes		—			—			—			—			21,944			(1,054	)		—			20,890
Inventories, net		219,027			29,200			—			248,227			101,891			29,075			—			130,966
Prepaid income taxes		5,281			1,251			—			6,532			—			—			—			—
Prepaid expenses and other assets		52,945			4,191			—			57,136			37,860			4,233			—			42,093
Intercompany		139,286			2,529			(141,815	)		—			133,159			6,545			(139,704	)		—
Total current assets		512,264			95,497			(141,815	)		465,946			520,040			97,346			(139,704	)		477,682
Property, plant and equipment, net		194,602			115,095			—			309,697			179,326			109,806			—			289,132
Deferred financing costs, net		3,882			—			—			3,882			4,803			—			—			4,803
Goodwill and other non-amortizable assets		—			11,849			—			11,849			—			11,849			—			11,849
Amortizable intangible assets, net		—			977			—			977			—			1,057			—			1,057
Deferred turnaround costs & other assets		34,848			2,568			—			37,416			9,055			2,717			—			11,772
Investment in subsidiaries		25,812			—			(25,812	)		—			27,503			—			(27,503	)		—
	$	771,408		$	225,986		$	(167,627	)	$	829,767		$	740,727		$	222,775		$	(167,207	)	$	796,295
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	591		$	1,008		$	—		$	1,599		$	836		$	756		$	—		$	1,592
Accounts payable		40,894			24,375			—			65,269			31,625			22,545			—			54,170
Accrued liabilities		18,346			6,426			—			24,772			12,399			6,316			—			18,715
Income taxes payable		—			—			—			—			8,242			345			—			8,587
Sales, use and fuel taxes payable		18,789			4,904			—			23,693			14,933			4,314			—			19,247
Deferred income taxes		1,734			(1,369	)		—			365			1,734			(1,369	)		—			365
Amounts due to affiliated companies, net		—			823			—			823			(169	)		603			—			434
Intercompany		—			141,815			(141,815	)		—			—			139,704			(139,704	)		—
Total current liabilities		80,354			177,982			(141,815	)		116,521			69,600			173,214			(139,704	)		103,110
Long term debt: less current installments		232,784			5,314			—			238,098			232,180			4,934			—			237,114
Deferred income taxes		16,264			14,796			—			31,060			14,325			14,868			—			29,193
Deferred retirement benefits		63,314			2,082			—			65,396			67,419			2,256			—			69,675
Total liabilities		392,716			200,174			(141,815	)		451,075			383,524			195,272			(139,704	)		439,092
Commitment and contingencies
Stockholder’s equity
Common stock; $.10 par value per share – shares authorized 100; issued and outstanding 100		—			18			(18	)		—			—			18			(18	)		—
Series A Preferred stock; $1,000 par value share – shares authorized 25,000; issued and outstanding 14,116		14,116			—			—			14,116			14,116			—			—			14,116
Additional paid-in capital		157,251			16,626			(16,626	)		157,251			159,844			16,626			(16,626	)		159,844
Retained earnings		214,930			10,460			(10,460	)		214,930			190,333			12,253			(12,253	)		190,333
Accumulated other comprehensive loss		(7,605	)		(1,292	)		1,292			(7,605	)		(7,090	)		(1,394	)		1,394			(7,090	)
Total stockholder’s equity		378,692			25,812			(25,812	)		378,692			357,203			27,503			(27,503	)		357,203
	$	771,408		$	225,986		$	(167,627	)	$	829,767		$	740,727		$	222,775		$	(167,207	)	$	796,295

10

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Condensed Consolidating Statements of Operations

(in thousands)

	Three Months Ended May 31, 2014												Three Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Net sales	$	588,065		$	437,393		$	(241,189	)	$	784,269		$	676,765		$	437,885		$	(231,130	)	$	883,520
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization)		566,498			397,018			(241,189	)		722,327			584,966			398,211			(231,130	)		752,047
Selling, general and administrative expenses		6,201			35,741			—			41,942			5,900			35,407			—			41,307
Depreciation and amortization expenses		5,333			1,866			—			7,199			4,813			1,665			—			6,478
		578,032			434,625			(241,189	)		771,468			595,679			435,283			(231,130	)		799,832
Operating income		10,033			2,768			—			12,801			81,086			2,602			—			83,688
Other income (expense):
Interest expense, net		(6,347	)		(250	)		—			(6,597	)		(9,751	)		(127	)		—			(9,878	)
Other, net		(818	)		(87	)		—			(905	)		(895	)		157			—			(738	)
Equity in net income of subsidiaries		1,283			—			(1,283	)		—			1,666			—			(1,666	)		—
		(5,882	)		(337	)		(1,283	)		(7,502	)		(8,980	)		30			(1,666	)		(10,616	)
Income before income tax expense		4,151			2,431			(1,283	)		5,299			72,106			2,632			(1,666	)		73,072
Income tax expense		919			1,148			—			2,067			27,547			966			—			28,513
Net income	$	3,232		$	1,283		$	(1,283	)	$	3,232		$	44,559		$	1,666		$	(1,666	)	$	44,559
	Nine Months Ended May 31, 2014												Nine Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	1,864,606		$	1,246,280		$	(661,183	)	$	2,449,703		$	2,113,470		$	1,272,938		$	(675,717	)	$	2,710,691
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses on derivative contracts)		1,707,098			1,137,538			(661,183	)		2,183,453			1,768,975			1,166,063			(675,717	)		2,259,321
Losses on derivative contracts		—			—			—			—			2,319			—			—			2,319
Selling, general and administrative expenses		19,205			105,664			—			124,869			18,384			104,433			—			122,817
Depreciation and amortization expenses		15,812			5,517			—			21,329			14,887			5,013			—			19,900
		1,742,115			1,248,719			(661,183	)		2,329,651			1,804,565			1,275,509			(675,717	)		2,404,357
Operating income (loss)		122,491			(2,439	)		—			120,052			308,905			(2,571	)		—			306,334
Other income (expense):
Interest expense, net		(18,976	)		(724	)		—			(19,700	)		(28,584	)		(374	)		—			(28,958	)
Other, net		(2,538	)		236			—			(2,302	)		(2,805	)		479			—			(2,326	)
Equity in net loss of subsidiaries		(1,793	)		—			1,793			—			(1,863	)		—			1,863			—
		(23,307	)		(488	)		1,793			(22,002	)		(33,252	)		105			1,863			(31,284	)
Income (loss) before income tax expense (benefit)		99,184			(2,927	)		1,793			98,050			275,653			(2,466	)		1,863			275,050
Income tax expense (benefit)		39,369			(1,134	)		—			38,235			107,885			(603	)		—			107,282
Net income (loss)	$	59,815		$	(1,793	)	$	1,793		$	59,815		$	167,768		$	(1,863	)	$	1,863		$	167,768

11

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Nine Months Ended May 31, 2014											Nine Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations		United Refining Company and Subsidiaries			United Refining Company			Guarantors			Eliminations		United Refining Company and Subsidiaries
Net cash (used in) provided by operating activities	$	(16,866	)	$	11,016		$	—	$	(5,850	)	$	90,216		$	19,311		$	—	$	109,527
Cash flows from investing activities:
Additions to property, plant and equipment		(25,150	)		(11,458	)		—		(36,608	)		(8,641	)		(20,825	)		—		(29,466	)
Additions to deferred turnaround costs		(32,028	)		(191	)		—		(32,219	)		(268	)		(48	)		—		(316	)
Proceeds from asset dispositions		56			2			—		58			65			10			—		75
Net cash used in investing activities		(57,122	)		(11,647	)		—		(68,769	)		(8,844	)		(20,863	)		—		(29,707	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			1,426			—		1,426			—			—			—		—
Dividends to preferred shareholder and common stockholder		(35,218	)		—			—		(35,218	)		(92,058	)		—			—		(92,058	)
Principal reductions of long-term debt		(706	)		(794	)		—		(1,500	)		(782	)		(428	)		—		(1,210	)
Distribution to parent under the tax sharing agreement		(2,593	)		—			—		(2,593	)		—			—			—		—
Net cash (used in) provided by financing activities		(38,517	)		632			—		(37,885	)		(92,840	)		(428	)		—		(93,268	)
Net (decrease) increase in cash and cash equivalents		(112,505	)		1			—		(112,504	)		(11,468	)		(1,980	)		—		(13,448	)
Cash and cash equivalents, beginning of year		141,386			17,151			—		158,537			122,219			15,321			—		137,540
Cash and cash equivalents, end of period	$	28,881		$	17,152		$	—	$	46,033		$	110,751		$	13,341		$	—	$	124,092

12

UNITED REFINING COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

5. Employee Benefit Plans

For the periods ended May 31, 2014 and 2013, net pension and other postretirement benefit costs were comprised of the following:

	Pension Benefits
	Three Months Ended May 31,						Nine Months Ended May 31,
	2014			2013			2014			2013
	(in thousands)
Service cost	$	149		$	163		$	447		$	491
Interest cost on benefit obligation		1,312			1,280			3,934			3,845
Expected return on plan assets		(1,404	)		(1,463	)		(4,210	)		(4,395	)
Amortization and deferral of net loss		175			335			526			1,005
Net periodic benefit cost	$	232		$	315		$	697		$	946

	Other Post-Retirement Benefits
	Three Months Ended May 31,					Nine Months Ended May 31,
	2014			2013		2014			2013
	(in thousands)
Service cost	$	194		$	235	$	581		$	708
Interest cost on benefit obligation		518			471		1,554			1,418
Amortization and deferral of net loss		(465	)		31		(1,395	)		93
Net periodic benefit cost	$	247		$	737	$	740		$	2,219

As of May 31, 2014, $4,642,000 of contributions have been made to the Company pension plans for the fiscal year ending August 31, 2014.

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.

6. 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 May 31, 2014 and August 31, 2013 by $18,645,000 and $26,642,000, respectively.

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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, current 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;

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• 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

Our scheduled maintenance turnaround for the refinery was successfully completed during the third fiscal quarter ended May 31, 2014. A refinery turnaround generally occurs every three to five years, during which time units are shut down for internal inspection and repair. The scheduled maintenance turnarounds result in an inventory build of petroleum products to meet minimum sales demand during the maintenance shutdown period. Our turnaround lasted approximately 33 days. This affected refinery production and runs resulting in crude throughput for the quarter averaging 39.7 thousand barrels per day (bpd) versus crude throughput averaging 61.9 bpd for the same period a year ago.

The Company continues to be impacted by the volatility in petroleum markets in fiscal 2014. 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 margin during the time period between the purchase of crude oil and its delivery to the refinery for processing. The lagged crackspread for the third quarter of fiscal 2014 was $23.24. Through June 27, 2014 the indicated lagged crackspread for the fourth quarter ending August 31, 2014 was $23.75, a $.51 increase from the average for the third quarter of fiscal 2014.

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.

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Retail Operations:

	Three Months Ended May 31,						Nine Months Ended May 31,
	2014			2013			2014			2013
	(dollars in thousands)
Net Sales
Petroleum	$	368,495		$	367,088		$	1,044,956		$	1,069,721
Merchandise and other		68,069			69,609			198,092			199,550
Total Net Sales		436,564			436,697			1,243,048			1,269,271
Costs of goods sold		396,073			397,270			1,134,228			1,162,774
Selling, general and administrative expenses		35,643			35,296			105,363			104,104
Depreciation and amortization expenses		1,610			1,453			4,749			4,378
Segment Operating Income / (Loss)	$	3,238		$	2,678		$	(1,292	)	$	(1,985	)
Retail Operating Data:
Petroleum sales (thousands of gallons)		97,416			99,455			286,546			285,329
Petroleum margin (a)	$	23,196		$	21,969		$	58,951		$	56,037
Petroleum margin ($/gallon) (b)		.2381			.2209			.2057			.1964
Merchandise and other margins	$	17,294		$	17,456		$	49,867		$	50,460
Merchandise margin (percent of sales)		25.4	%		25.1	%		25.2	%		25.3	%

(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 May 31, 2014 and 2013

Net Sales

Retail sales remained relatively consistent during the fiscal quarter ended May 31, 2014 and fiscal 2013

Costs of Goods Sold

Retail costs of goods sold decreased during the fiscal quarter ended May 31, 2014 by $1.2 million or .3% from the comparable period in fiscal 2013 from $397.3 million to $396.1 million. The decrease was primarily due to $1.4 million in merchandise cost and freight cost of $2.7 million, offset by an increase in petroleum purchase price of $.3 million and fuel tax of $2.6 million.

Selling, General and Administrative Expenses

Retail Selling, General and Administrative (“SG&A”) expenses remained relatively consistent during the fiscal quarter ended May 31, 2014 and fiscal 2013.

Comparison of Nine Months Ended May 31, 2014 and 2013

Net Sales

Retail sales decreased during the nine months ended May 31, 2014 by $26.2 million or 2.1% for the comparable period in fiscal 2013 from $1,269.3 million to $1,243.1 million. The decrease was primarily due to

16

$24.8 million in petroleum sales and $1.4 million in merchandise sales. The petroleum sales decrease resulted from a 2.7% decrease in retail selling prices per gallon offset by a 1.2 million gallon or .4% increase in sales volume.

Costs of Goods Sold

Retail costs of goods sold decreased during the nine months ended May 31, 2014 by $28.6 million or 2.5% for the comparable period in fiscal 2013 from $1,162.8 million to $1,134.2 million. The decrease was primarily due to $26.4 million in petroleum purchase prices and freight costs of $8.0 million, and merchandise costs of $.9 million offset by an increase in fuel taxes of $6.7 million.

Selling, General and Administrative Expenses

Retail SG&A expenses increased during the nine months ended May 31, 2014 by $1.3 million or 1.2% for the comparable period in fiscal 2013 from $104.1 million to $105.4 million. The increase was due to payroll costs of $.2 million, insurance, utilities and taxes of $.2 million, promotion/advertising costs of $.5 million, supplies cost of $.4 million and maintenance costs of $.9 million, offset by a decrease in pension/post-retirement costs of $.4 million and environmental costs of $.5 million.

Wholesale Operations:

	Three Months Ended May 31,				Nine Months Ended May 31,
	2014		2013		2014		2013
	(dollars in thousands)
Net Sales (a)	$	347,705	$	446,823	$	1,206,655	$	1,441,420
Costs of goods sold (exclusive of depreciation and amortization and losses on derivative contracts)		326,254		354,777		1,049,225		1,096,547
Losses on derivative contracts		—		—		—		2,319
Selling, general and administrative expenses		6,299		6,011		19,506		18,713
Depreciation and amortization expenses		5,589		5,025		16,580		15,522
Segment Operating Income	$	9,563	$	81,010	$	121,344	$	308,319

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Key Wholesale Operating Statistics:

	Three Months Ended May 31,						Nine Months Ended May 31,
	2014			2013			2014			2013
Refinery Product Yield (thousands of barrels)
Gasoline and gasoline blendstock		1,393			2,311			6,525			7,575
Distillates		855			1,310			3,492			4,137
Asphalt		1,104			1,754			4,791			5,468
Butane, propane, residual products, internally produced fuel and other (“Other”)		682			736			1,872			1,817
Total Product Yield		4,034			6,111			16,680			18,997
% Heavy Crude Oil of Total Refinery Throughput (b)		60	%		60	%		61	%		60	%
Crude throughput (thousand barrels per day (“bpd”))		39.7			61.9			55.7			64.7
Product Sales (thousand of barrels) (a)
Gasoline and gasoline blendstock		1,198			1,469			3,983			4,670
Distillates		693			1,048			2,661			3,389
Asphalt		1,272			1,659			4,498			4,987
Other		123			208			588			577
Total Product Sales Volume		3,286			4,384			11,730			13,623
Product Sales (dollars in thousands) (a)
Gasoline and gasoline blendstock	$	144,216		$	174,109		$	459,110		$	564,086
Distillates		91,413			132,926			351,590			450,433
Asphalt		105,673			128,673			360,272			395,088
Other		6,403			11,115			35,683			31,813
Total Product Sales	$	347,705		$	446,823		$	1,206,655		$	1,441,420

(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 May 31, 2014 and 2013

A scheduled maintenance turnaround for the refinery was successfully completed during the third fiscal quarter ended May 31, 2014 for approximately 33 days. This affected refinery production and runs resulting in crude throughput for the quarter averaging 39.7 bpd versus crude throughput averaging 61.9 bpd for the same comparable period in fiscal 2013.

Net Sales

Wholesale sales decreased during the three months ended May 31, 2014 by $99.1 million or 22.2% from the comparable period in fiscal 2013 from $446.8 million to $347.7 million. The decrease was due to a 25.0% decrease in wholesale volumes offset by a 3.8% increase in wholesale prices. The decrease in sales volume was the result of reducing incremental sales volume during the turnaround.

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

Wholesale costs of goods sold decreased during the three months ended May 31, 2014 by $28.5 million or 8.0% from the comparable period in fiscal 2013 from $354.8 million to $326.3 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.

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Selling, General and Administrative Expenses

Wholesale SG&A expenses remained relatively constant during the three months ended May 31, 2014 and fiscal 2013.

Comparison of Nine Months Ended May 31, 2014 and 2013

Net Sales

Wholesale sales decreased during the nine months ended May 31, 2014 by $234.8 million or 16.3% from the comparable period in fiscal 2013 from $1,441.4 million to $1,206.6 million. The decrease was due to a 2.8% decrease in wholesale prices and 13.9% decrease in wholesale volume.

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

Wholesale costs of goods sold decreased during the nine months ended May 31, 2014 by $47.3 million or 4.3% for the comparable period in fiscal 2013 from $1,096.5 million to $1,049.2 million. The decrease in wholesale costs of goods sold was primarily due to a decrease in the cost and volume of raw materials.

Losses on Derivative Contracts

For the nine months ended May 31, 2014 and 2013, the Company recognized $0 and $2.3 million of losses in its Consolidated Statement of Operations, respectively. There has been no such activity in fiscal 2014. All derivatives were settled by December 31, 2012.

Selling, General and Administrative Expenses

Wholesale SG&A expenses remained relatively constant during the nine months ended May 31, 2014 and fiscal 2013.

Consolidated Expenses:

Interest Expense, net

Net interest expense (interest expense less interest income) decreased during the three months ended May 31, 2014 by $3.3 million for the comparable period for fiscal 2013 from $9.9 million to $6.6 million. The decrease was due to the partial redemption in August 2013 of $127.8 million of 10.500% First Priority Senior Secured Notes due 2018 (“Senior Notes”).

Net interest expense (interest expense less interest income) decreased during the nine months ended May 31, 2014 by $9.3 million for the comparable period for fiscal 2013 from $29.0 million to $19.7 million. The decrease was due to the partial redemption in August 2013 of $127.8 million of Senior Notes.

Income Tax Expense

The Company’s effective tax rate for the three months and nine months ended May 31, 2014 and 2013 remained approximately 39%.

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.

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

	May 31, 2014
Cash and cash equivalents	$	46,033
Working capital	$	349,425
Current ratio		4.0
Debt	$	239,697

Primary sources of liquidity have been cash and cash equivalents, and borrowing availability under our revolving credit facility (the “Amended and Restated Revolving Credit Facility”) with PNC Bank, N.A. as Administrator (the “Agent Bank”). 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.

Significant Uses of Cash

The changes in cash for the nine months ended May 31, 2014 are described below.

The cash used in working capital is shown below:

	Nine Months Ended May 31, 2014
	(in millions)
Cash used in working capital items:
Refundable income tax decrease	$	20.9
Accounts receivable decrease		17.2
Accounts payable increase		11.1
Accrued liabilities increase		6.0
Sales, use and fuel taxes payable increase		4.4
Amounts due from affiliated companies, net		.4
Inventory increase		(117.3	)
Prepaid expense increase		(15.0	)
Income taxes payable decrease		(8.6	)
Prepaid income taxes increase		(6.5	)
Total change	$	(87.4	)

The decrease of available cash on hand of $112.5 million includes $1.4 million of net cash received from capital lease proceeds. Other cash uses included:

• Fund operating activities used in working capital items of $87.4 million

• Fund capital expenditures and deferred turnaround costs of $68.8 million

• Distribution to parent under tax sharing agreement of $2.6 million

• Dividends to preferred stockholder and common stockholder of $35.2 million

• Scheduled long-term debt repayments of $1.5 million

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.

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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 2014 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 May 31, 2014 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 $8.8 million as of May 31, 2014 and there were no outstanding borrowings under the Amended and Restated Revolving Credit Facility resulting in net availability of $166.2 million. As of July 15, 2014, there were no outstanding borrowings under the Amended and Restated Revolving Credit Facility and there were standby letters of credit in the amount of $8.8 million, resulting in a net availability of $166.2 million and the Company had full access to it. The Company’s working capital ratio was 4.0 as of May 31, 2014.

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.

21

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 July 15, 2014, 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 Consolidated Statement of Operations. There has been no derivative activity in fiscal 2014.

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 May 31, 2014. 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 May 31, 2014, 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 May 31, 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

22

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, 2013.

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

23

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: July 15, 2014

UNITED REFINING COMPANY

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

24

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: July 15, 2014

KIANTONE PIPELINE CORPORATION

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

25

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: July 15, 2014

UNITED REFINING COMPANY OF

PENNSYLVANIA

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

26

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: July 15, 2014

KIANTONE PIPELINE COMPANY

(Registrant)

/s/ Myron L. Turfitt

Myron L. Turfitt

President

/s/ James E. Murphy

James E. Murphy

Chief Financial Officer

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: July 15, 2014

UNITED JET CENTER, INC.

(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: July 15, 2014

KWIK-FILL 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: July 15, 2014

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

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: July 15, 2014

BELL OIL CORP.

(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: July 15, 2014

PPC, 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: July 15, 2014

SUPER TEST PETROLEUM, INC.

(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: July 15, 2014

KWIK-FIL, 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: July 15, 2014

VULCAN ASPHALT REFINING CORPORATION

(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: July 15, 2014

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

36

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: July 15, 2014	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: July 15, 2014	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 May 31, 2014 (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: July 15, 2014	By:	/s/ John A. Catsimatidis
		John A. Catsimatidis
		Principal Executive Officer

Dated: July 15, 2014	By:	/s/ James E. Murphy
		James E. Murphy
		Principal Financial Officer

XML

Subsidiary Guarantors - Schedule of Condensed Consolidating Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	May 31, 2014	May 31, 2013	May 31, 2014	May 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 784,269	$ 883,520	$ 2,449,703	$ 2,710,691
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization and losses on derivative contracts)	722,327	752,047	2,183,453	2,259,321
Losses on derivative contracts				2,319
Selling, general and administrative expenses	41,942	41,307	124,869	122,817
Depreciation and amortization expenses	7,199	6,478	21,329	19,900
Total Expenses	771,468	799,832	2,329,651	2,404,357
Operating income (loss)	12,801	83,688	120,052	306,334
Other income (expense):
Interest expense, net	(6,597)	(9,878)	(19,700)	(28,958)
Other, net	(905)	(738)	(2,302)	(2,326)
Total other income (expense)	(7,502)	(10,616)	(22,002)	(31,284)
Income (loss) before income tax expense (benefit)	5,299	73,072	98,050	275,050
Income tax expense (benefit)	2,067	28,513	38,235	107,282
Net income (loss)	3,232	44,559	59,815	167,768
United Refining Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	588,065	676,765	1,864,606	2,113,470
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization and losses on derivative contracts)	566,498	584,966	1,707,098	1,768,975
Losses on derivative contracts				2,319
Selling, general and administrative expenses	6,201	5,900	19,205	18,384
Depreciation and amortization expenses	5,333	4,813	15,812	14,887
Total Expenses	578,032	595,679	1,742,115	1,804,565
Operating income (loss)	10,033	81,086	122,491	308,905
Other income (expense):
Interest expense, net	(6,347)	(9,751)	(18,976)	(28,584)
Other, net	(818)	(895)	(2,538)	(2,805)
Equity in net income (loss) of subsidiaries	1,283	1,666	(1,793)	(1,863)
Total other income (expense)	(5,882)	(8,980)	(23,307)	(33,252)
Income (loss) before income tax expense (benefit)	4,151	72,106	99,184	275,653
Income tax expense (benefit)	919	27,547	39,369	107,885
Net income (loss)	3,232	44,559	59,815	167,768
Guarantors [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	437,393	437,885	1,246,280	1,272,938
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization and losses on derivative contracts)	397,018	398,211	1,137,538	1,166,063
Selling, general and administrative expenses	35,741	35,407	105,664	104,433
Depreciation and amortization expenses	1,866	1,665	5,517	5,013
Total Expenses	434,625	435,283	1,248,719	1,275,509
Operating income (loss)	2,768	2,602	(2,439)	(2,571)
Other income (expense):
Interest expense, net	(250)	(127)	(724)	(374)
Other, net	(87)	157	236	479
Total other income (expense)	(337)	30	(488)	105
Income (loss) before income tax expense (benefit)	2,431	2,632	(2,927)	(2,466)
Income tax expense (benefit)	1,148	966	(1,134)	(603)
Net income (loss)	1,283	1,666	(1,793)	(1,863)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	(241,189)	(231,130)	(661,183)	(675,717)
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization and losses on derivative contracts)	(241,189)	(231,130)	(661,183)	(675,717)
Total Expenses	(241,189)	(231,130)	(661,183)	(675,717)
Other income (expense):
Equity in net income (loss) of subsidiaries	(1,283)	(1,666)	1,793	1,863
Total other income (expense)	(1,283)	(1,666)	1,793	1,863
Income (loss) before income tax expense (benefit)	(1,283)	(1,666)	1,793	1,863
Net income (loss)	$ (1,283)	$ (1,666)	$ 1,793	$ 1,863

XML

Inventories

9 Months Ended

May 31, 2014

Inventory Disclosure [Abstract]

Inventories

2. 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:

	May 31, 2014		August 31, 2013
	(in thousands)
Crude Oil	$	85,208	$	21,344
Petroleum Products		108,934		60,094
Total @ LIFO		194,142		81,438
Merchandise		24,714		24,002
Supplies		29,371		25,526
Total @ FIFO		54,085		49,528
Total Inventory	$	248,227	$	130,966

As of May 31, 2014 and August 31, 2013, the replacement cost of LIFO inventories exceeded their LIFO carrying values by approximately $93,278,000 and $108,984,000, respectively.

XML

Fair Value Measurements - Additional Information (Detail) (USD $)	May 31, 2014	Aug. 31, 2013
Fair Value Disclosures [Abstract]
Fair value of long term debt	$ 18,645,000	$ 26,642,000

XML

Employee Benefit Plans - Additional Information (Detail) (USD $)	9 Months Ended
	May 31, 2014
Compensation And Retirement Disclosure [Abstract]
Defined pension plan contributions	$ 4,642,000

XML

Description of Business and Basis of Presentation

9 Months Ended

May 31, 2014

Accounting Policies [Abstract]

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, United Biofuels, Inc. 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 nine months ended May 31, 2014 are not necessarily indicative of the results that may be expected for the year ending August 31, 2014. 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, 2013.

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	May 31, 2014	Aug. 31, 2013
Current:
Cash and cash equivalents	$ 46,033	$ 158,537
Accounts receivable, net	108,018	125,196
Refundable income taxes		20,890
Inventories, net	248,227	130,966
Prepaid income taxes	6,532
Prepaid expenses and other assets	57,136	42,093
Total current assets	465,946	477,682
Property, plant and equipment, net	309,697	289,132
Deferred financing costs, net	3,882	4,803
Goodwill	1,349	1,349
Tradename	10,500	10,500
Amortizable intangible assets, net	977	1,057
Deferred turnaround costs and other assets, net	37,416	11,772
Total assets	829,767	796,295
Current:
Current installments of long-term debt	1,599	1,592
Accounts payable	65,269	54,170
Accrued liabilities	24,772	18,715
Income taxes payable		8,587
Sales, use and fuel taxes payable	23,693	19,247
Deferred income taxes	365	365
Amounts due to affiliated companies, net	823	434
Total current liabilities	116,521	103,110
Long term debt: less current installments	238,098	237,114
Deferred income taxes	31,060	29,193
Deferred retirement benefits	65,396	69,675
Total liabilities	451,075	439,092
Commitments and contingencies
Stockholder's equity:
Common stock; $.10 par value per share - shares authorized 100; issued and outstanding 100	0	0
Additional paid-in capital	157,251	159,844
Retained earnings	214,930	190,333
Accumulated other comprehensive loss	(7,605)	(7,090)
Total stockholder's equity	378,692	357,203
Total liabilities and stockholder's equity	829,767	796,295
Series A Preferred Stock [Member]
Stockholder's equity:
Series A Preferred stock; $1,000 par value per share - shares authorized 25,000; issued and outstanding 14,116	$ 14,116	$ 14,116

XML

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	May 31, 2014	May 31, 2013	May 31, 2014	May 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Unrecognized post retirement (loss) income, taxes	$ (119)	$ 136	$ (358)	$ 410

XML

Subsidiary Guarantors - Additional Information (Detail) (10.50% Senior Secured Notes [Member])	9 Months Ended
	May 31, 2014
10.50% Senior Secured Notes [Member]
Guarantor Obligations [Line Items]
Senior Secured Notes, interest rate	10.50%
Senior Secured Notes, maturity year	2018

XML

Subsidiary Guarantors - Schedule of Condensed Consolidating Balance Sheets (Parenthetical) (Detail) (USD $)	May 31, 2014	Aug. 31, 2013
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
Series A Preferred Stock [Member]
Condensed Financial Statements, Captions [Line Items]
Preferred stock, par value per share	$ 1,000	$ 1,000
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	14,116	14,116
Preferred stock, shares outstanding	14,116	14,116
Eliminations [Member]
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
United Refining Company [Member] | Series A Preferred Stock [Member]
Condensed Financial Statements, Captions [Line Items]
Preferred stock, par value per share	$ 1,000	$ 1,000
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	14,116	14,116
Preferred stock, shares outstanding	14,116	14,116
Guarantors [Member]
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

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	May 31, 2014	May 31, 2013
Cash flows from operating activities:
Net income	$ 59,815	$ 167,768
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	23,074	21,490
Deferred income taxes	2,225	2,810
Loss on asset dispositions	1,045	530
Cash used in working capital items	(87,364)	(80,886)
Change in operating assets and liabilities:
Other assets, net	507	370
Deferred retirement benefits	(5,152)	(2,555)
Total adjustments	(65,665)	(58,241)
Net cash (used in) provided by operating activities	(5,850)	109,527
Cash flows from investing activities:
Additions to property, plant and equipment	(36,608)	(29,466)
Additions to deferred turnaround costs	(32,219)	(316)
Proceeds from asset dispositions	58	75
Net cash used in investing activities	(68,769)	(29,707)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,426
Dividends to preferred shareholder and common stockholder	(35,218)	(92,058)
Principal reductions of long-term debt	(1,500)	(1,210)
Distribution to parent under the tax sharing agreement	(2,593)
Net cash used in financing activities	(37,885)	(93,268)
Net decrease in cash and cash equivalents	(112,504)	(13,448)
Cash and cash equivalents, beginning of year	158,537	137,540
Cash and cash equivalents, end of period	46,033	124,092
Cash provided by (used in) working capital items:
Accounts receivable, net	17,178	16,718
Refundable income taxes	20,890
Inventories, net	(117,261)	(70,241)
Prepaid income taxes	(6,532)
Prepaid expenses and other assets	(15,043)	(25,249)
Amounts due to affiliated companies, net	389	833
Accounts payable	11,099	17,218
Derivative liability		(9,098)
Accrued liabilities	6,057	7,800
Income taxes payable	(8,587)	(17,941)
Sales, use, and fuel taxes payable	4,446	(926)
Total change	(87,364)	(80,886)
Cash paid during the period for:
Interest	12,954	19,368
Income taxes	48,950	122,774
Non-cash investing activities:
Property additions & capital leases	$ 241	$ 1,693

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Consolidated Balance Sheets (Parenthetical) (USD $)	May 31, 2014	Aug. 31, 2013
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
Series A Preferred Stock [Member]
Preferred stock, par value per share	$ 1,000	$ 1,000
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	14,116	14,116
Preferred stock, shares outstanding	14,116	14,116

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Employee Benefit Plans (Tables)

9 Months Ended

May 31, 2014

Compensation And Retirement Disclosure [Abstract]

Components of Net Pension and Other Postretirement Benefit Costs

For the periods ended May 31, 2014 and 2013, net pension and other postretirement benefit costs were comprised of the following:

	Pension Benefits
	Three Months Ended May 31,						Nine Months Ended May 31,
	2014			2013			2014			2013
	(in thousands)
Service cost	$	149		$	163		$	447		$	491
Interest cost on benefit obligation		1,312			1,280			3,934			3,845
Expected return on plan assets		(1,404	)		(1,463	)		(4,210	)		(4,395	)
Amortization and deferral of net loss		175			335			526			1,005
Net periodic benefit cost	$	232		$	315		$	697		$	946

	Other Post-Retirement Benefits
	Three Months Ended May 31,					Nine Months Ended May 31,
	2014			2013		2014			2013
	(in thousands)
Service cost	$	194		$	235	$	581		$	708
Interest cost on benefit obligation		518			471		1,554			1,418
Amortization and deferral of net loss		(465	)		31		(1,395	)		93
Net periodic benefit cost	$	247		$	737	$	740		$	2,219

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Document and Entity Information	9 Months Ended
	May 31, 2014	Jul. 15, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
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

XML

Description of Business and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	May 31, 2014 Segment
Accounting Policies [Abstract]
Number of business segments	2

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Consolidated Statements of Operations (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	May 31, 2014	May 31, 2013	May 31, 2014	May 31, 2013
Income Statement [Abstract]
Net sales	$ 784,269	$ 883,520	$ 2,449,703	$ 2,710,691
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses on derivative contracts)	722,327	752,047	2,183,453	2,259,321
Losses on derivative contracts				2,319
Selling, general and administrative expenses	41,942	41,307	124,869	122,817
Depreciation and amortization expenses	7,199	6,478	21,329	19,900
Total costs and expenses	771,468	799,832	2,329,651	2,404,357
Operating income	12,801	83,688	120,052	306,334
Other expense:
Interest expense, net	(6,597)	(9,878)	(19,700)	(28,958)
Other, net	(905)	(738)	(2,302)	(2,326)
Total other income (expense)	(7,502)	(10,616)	(22,002)	(31,284)
Income before income tax expense	5,299	73,072	98,050	275,050
Income tax expense	2,067	28,513	38,235	107,282
Net income	$ 3,232	$ 44,559	$ 59,815	$ 167,768

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Employee Benefit Plans

9 Months Ended

May 31, 2014

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

5. Employee Benefit Plans

For the periods ended May 31, 2014 and 2013, net pension and other postretirement benefit costs were comprised of the following:

	Pension Benefits
	Three Months Ended May 31,						Nine Months Ended May 31,
	2014			2013			2014			2013
	(in thousands)
Service cost	$	149		$	163		$	447		$	491
Interest cost on benefit obligation		1,312			1,280			3,934			3,845
Expected return on plan assets		(1,404	)		(1,463	)		(4,210	)		(4,395	)
Amortization and deferral of net loss		175			335			526			1,005
Net periodic benefit cost	$	232		$	315		$	697		$	946

	Other Post-Retirement Benefits
	Three Months Ended May 31,					Nine Months Ended May 31,
	2014			2013		2014			2013
	(in thousands)
Service cost	$	194		$	235	$	581		$	708
Interest cost on benefit obligation		518			471		1,554			1,418
Amortization and deferral of net loss		(465	)		31		(1,395	)		93
Net periodic benefit cost	$	247		$	737	$	740		$	2,219

As of May 31, 2014, $4,642,000 of contributions have been made to the Company pension plans for the fiscal year ending August 31, 2014.

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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Subsidiary Guarantors

9 Months Ended

May 31, 2014

Organization Consolidation And Presentation Of Financial Statements [Abstract]

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)

	May 31, 2014												August 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Assets
Current:
Cash and cash equivalents	$	28,881		$	17,152		$	—		$	46,033		$	141,386		$	17,151		$	—		$	158,537
Accounts receivable, net		66,844			41,174			—			108,018			83,800			41,396			—			125,196
Refundable income taxes		—			—			—			—			21,944			(1,054	)		—			20,890
Inventories, net		219,027			29,200			—			248,227			101,891			29,075			—			130,966
Prepaid income taxes		5,281			1,251			—			6,532			—			—			—			—
Prepaid expenses and other assets		52,945			4,191			—			57,136			37,860			4,233			—			42,093
Intercompany		139,286			2,529			(141,815	)		—			133,159			6,545			(139,704	)		—
Total current assets		512,264			95,497			(141,815	)		465,946			520,040			97,346			(139,704	)		477,682
Property, plant and equipment, net		194,602			115,095			—			309,697			179,326			109,806			—			289,132
Deferred financing costs, net		3,882			—			—			3,882			4,803			—			—			4,803
Goodwill and other non-amortizable assets		—			11,849			—			11,849			—			11,849			—			11,849
Amortizable intangible assets, net		—			977			—			977			—			1,057			—			1,057
Deferred turnaround costs & other assets		34,848			2,568			—			37,416			9,055			2,717			—			11,772
Investment in subsidiaries		25,812			—			(25,812	)		—			27,503			—			(27,503	)		—
	$	771,408		$	225,986		$	(167,627	)	$	829,767		$	740,727		$	222,775		$	(167,207	)	$	796,295
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	591		$	1,008		$	—		$	1,599		$	836		$	756		$	—		$	1,592
Accounts payable		40,894			24,375			—			65,269			31,625			22,545			—			54,170
Accrued liabilities		18,346			6,426			—			24,772			12,399			6,316			—			18,715
Income taxes payable		—			—			—			—			8,242			345			—			8,587
Sales, use and fuel taxes payable		18,789			4,904			—			23,693			14,933			4,314			—			19,247
Deferred income taxes		1,734			(1,369	)		—			365			1,734			(1,369	)		—			365
Amounts due to affiliated companies, net		—			823			—			823			(169	)		603			—			434
Intercompany		—			141,815			(141,815	)		—			—			139,704			(139,704	)		—
Total current liabilities		80,354			177,982			(141,815	)		116,521			69,600			173,214			(139,704	)		103,110
Long term debt: less current installments		232,784			5,314			—			238,098			232,180			4,934			—			237,114
Deferred income taxes		16,264			14,796			—			31,060			14,325			14,868			—			29,193
Deferred retirement benefits		63,314			2,082			—			65,396			67,419			2,256			—			69,675
Total liabilities		392,716			200,174			(141,815	)		451,075			383,524			195,272			(139,704	)		439,092
Commitment and contingencies
Stockholder’s equity
Common stock; $.10 par value per share – shares authorized 100; issued and outstanding 100		—			18			(18	)		—			—			18			(18	)		—
Series A Preferred stock; $1,000 par value share – shares authorized 25,000; issued and outstanding 14,116		14,116			—			—			14,116			14,116			—			—			14,116
Additional paid-in capital		157,251			16,626			(16,626	)		157,251			159,844			16,626			(16,626	)		159,844
Retained earnings		214,930			10,460			(10,460	)		214,930			190,333			12,253			(12,253	)		190,333
Accumulated other comprehensive loss		(7,605	)		(1,292	)		1,292			(7,605	)		(7,090	)		(1,394	)		1,394			(7,090	)
Total stockholder’s equity		378,692			25,812			(25,812	)		378,692			357,203			27,503			(27,503	)		357,203
	$	771,408		$	225,986		$	(167,627	)	$	829,767		$	740,727		$	222,775		$	(167,207	)	$	796,295

Condensed Consolidating Statements of Operations

(in thousands)

	Three Months Ended May 31, 2014												Three Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Net sales	$	588,065		$	437,393		$	(241,189	)	$	784,269		$	676,765		$	437,885		$	(231,130	)	$	883,520
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization)		566,498			397,018			(241,189	)		722,327			584,966			398,211			(231,130	)		752,047
Selling, general and administrative expenses		6,201			35,741			—			41,942			5,900			35,407			—			41,307
Depreciation and amortization expenses		5,333			1,866			—			7,199			4,813			1,665			—			6,478
		578,032			434,625			(241,189	)		771,468			595,679			435,283			(231,130	)		799,832
Operating income		10,033			2,768			—			12,801			81,086			2,602			—			83,688
Other income (expense):
Interest expense, net		(6,347	)		(250	)		—			(6,597	)		(9,751	)		(127	)		—			(9,878	)
Other, net		(818	)		(87	)		—			(905	)		(895	)		157			—			(738	)
Equity in net income of subsidiaries		1,283			—			(1,283	)		—			1,666			—			(1,666	)		—
		(5,882	)		(337	)		(1,283	)		(7,502	)		(8,980	)		30			(1,666	)		(10,616	)
Income before income tax expense		4,151			2,431			(1,283	)		5,299			72,106			2,632			(1,666	)		73,072
Income tax expense		919			1,148			—			2,067			27,547			966			—			28,513
Net income	$	3,232		$	1,283		$	(1,283	)	$	3,232		$	44,559		$	1,666		$	(1,666	)	$	44,559
	Nine Months Ended May 31, 2014												Nine Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	1,864,606		$	1,246,280		$	(661,183	)	$	2,449,703		$	2,113,470		$	1,272,938		$	(675,717	)	$	2,710,691
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses on derivative contracts)		1,707,098			1,137,538			(661,183	)		2,183,453			1,768,975			1,166,063			(675,717	)		2,259,321
Losses on derivative contracts		—			—			—			—			2,319			—			—			2,319
Selling, general and administrative expenses		19,205			105,664			—			124,869			18,384			104,433			—			122,817
Depreciation and amortization expenses		15,812			5,517			—			21,329			14,887			5,013			—			19,900
		1,742,115			1,248,719			(661,183	)		2,329,651			1,804,565			1,275,509			(675,717	)		2,404,357
Operating income (loss)		122,491			(2,439	)		—			120,052			308,905			(2,571	)		—			306,334
Other income (expense):
Interest expense, net		(18,976	)		(724	)		—			(19,700	)		(28,584	)		(374	)		—			(28,958	)
Other, net		(2,538	)		236			—			(2,302	)		(2,805	)		479			—			(2,326	)
Equity in net loss of subsidiaries		(1,793	)		—			1,793			—			(1,863	)		—			1,863			—
		(23,307	)		(488	)		1,793			(22,002	)		(33,252	)		105			1,863			(31,284	)
Income (loss) before income tax expense (benefit)		99,184			(2,927	)		1,793			98,050			275,653			(2,466	)		1,863			275,050
Income tax expense (benefit)		39,369			(1,134	)		—			38,235			107,885			(603	)		—			107,282
Net income (loss)	$	59,815		$	(1,793	)	$	1,793		$	59,815		$	167,768		$	(1,863	)	$	1,863		$	167,768

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Nine Months Ended May 31, 2014											Nine Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations		United Refining Company and Subsidiaries			United Refining Company			Guarantors			Eliminations		United Refining Company and Subsidiaries
Net cash (used in) provided by operating activities	$	(16,866	)	$	11,016		$	—	$	(5,850	)	$	90,216		$	19,311		$	—	$	109,527
Cash flows from investing activities:
Additions to property, plant and equipment		(25,150	)		(11,458	)		—		(36,608	)		(8,641	)		(20,825	)		—		(29,466	)
Additions to deferred turnaround costs		(32,028	)		(191	)		—		(32,219	)		(268	)		(48	)		—		(316	)
Proceeds from asset dispositions		56			2			—		58			65			10			—		75
Net cash used in investing activities		(57,122	)		(11,647	)		—		(68,769	)		(8,844	)		(20,863	)		—		(29,707	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			1,426			—		1,426			—			—			—		—
Dividends to preferred shareholder and common stockholder		(35,218	)		—			—		(35,218	)		(92,058	)		—			—		(92,058	)
Principal reductions of long-term debt		(706	)		(794	)		—		(1,500	)		(782	)		(428	)		—		(1,210	)
Distribution to parent under the tax sharing agreement		(2,593	)		—			—		(2,593	)		—			—			—		—
Net cash (used in) provided by financing activities		(38,517	)		632			—		(37,885	)		(92,840	)		(428	)		—		(93,268	)
Net (decrease) increase in cash and cash equivalents		(112,505	)		1			—		(112,504	)		(11,468	)		(1,980	)		—		(13,448	)
Cash and cash equivalents, beginning of year		141,386			17,151			—		158,537			122,219			15,321			—		137,540
Cash and cash equivalents, end of period	$	28,881		$	17,152		$	—	$	46,033		$	110,751		$	13,341		$	—	$	124,092

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Subsidiary Guarantors - Schedule of Condensed Consolidating Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	May 31, 2014	Aug. 31, 2013	May 31, 2013	Aug. 31, 2012
Current:
Cash and cash equivalents	$ 46,033	$ 158,537	$ 124,092	$ 137,540
Accounts receivable, net	108,018	125,196
Refundable income taxes		20,890
Inventories, net	248,227	130,966
Prepaid income taxes	6,532
Prepaid expenses and other assets	57,136	42,093
Total current assets	465,946	477,682
Property, plant and equipment, net	309,697	289,132
Deferred financing costs, net	3,882	4,803
Goodwill and other non-amortizable assets	11,849	11,849
Amortizable intangible assets, net	977	1,057
Deferred turnaround costs & other assets	37,416	11,772
Total assets	829,767	796,295
Current:
Current installments of long-term debt	1,599	1,592
Accounts payable	65,269	54,170
Accrued liabilities	24,772	18,715
Income taxes payable		8,587
Sales, use and fuel taxes payable	23,693	19,247
Deferred income taxes	365	365
Amounts due to affiliated companies, net	823	434
Total current liabilities	116,521	103,110
Long term debt: less current installments	238,098	237,114
Deferred income taxes	31,060	29,193
Deferred retirement benefits	65,396	69,675
Total liabilities	451,075	439,092
Commitment and contingencies
Stockholder's equity
Common stock; $.10 par value per share - shares authorized 100; issued and outstanding 100	0	0
Additional paid-in capital	157,251	159,844
Retained earnings	214,930	190,333
Accumulated other comprehensive loss	(7,605)	(7,090)
Total stockholder's equity	378,692	357,203
Total liabilities and stockholder's equity	829,767	796,295
United Refining Company [Member]
Current:
Cash and cash equivalents	28,881	141,386	110,751	122,219
Accounts receivable, net	66,844	83,800
Refundable income taxes		21,944
Inventories, net	219,027	101,891
Prepaid income taxes	5,281
Prepaid expenses and other assets	52,945	37,860
Intercompany	139,286	133,159
Total current assets	512,264	520,040
Property, plant and equipment, net	194,602	179,326
Deferred financing costs, net	3,882	4,803
Deferred turnaround costs & other assets	34,848	9,055
Investment in subsidiaries	25,812	27,503
Total assets	771,408	740,727
Current:
Current installments of long-term debt	591	836
Accounts payable	40,894	31,625
Accrued liabilities	18,346	12,399
Income taxes payable		8,242
Sales, use and fuel taxes payable	18,789	14,933
Deferred income taxes	1,734	1,734
Amounts due to affiliated companies, net		(169)
Total current liabilities	80,354	69,600
Long term debt: less current installments	232,784	232,180
Deferred income taxes	16,264	14,325
Deferred retirement benefits	63,314	67,419
Total liabilities	392,716	383,524
Commitment and contingencies
Stockholder's equity
Additional paid-in capital	157,251	159,844
Retained earnings	214,930	190,333
Accumulated other comprehensive loss	(7,605)	(7,090)
Total stockholder's equity	378,692	357,203
Total liabilities and stockholder's equity	771,408	740,727
Guarantors [Member]
Current:
Cash and cash equivalents	17,152	17,151	13,341	15,321
Accounts receivable, net	41,174	41,396
Refundable income taxes		(1,054)
Inventories, net	29,200	29,075
Prepaid income taxes	1,251
Prepaid expenses and other assets	4,191	4,233
Intercompany	2,529	6,545
Total current assets	95,497	97,346
Property, plant and equipment, net	115,095	109,806
Goodwill and other non-amortizable assets	11,849	11,849
Amortizable intangible assets, net	977	1,057
Deferred turnaround costs & other assets	2,568	2,717
Total assets	225,986	222,775
Current:
Current installments of long-term debt	1,008	756
Accounts payable	24,375	22,545
Accrued liabilities	6,426	6,316
Income taxes payable		345
Sales, use and fuel taxes payable	4,904	4,314
Deferred income taxes	(1,369)	(1,369)
Amounts due to affiliated companies, net	823	603
Intercompany	141,815	139,704
Total current liabilities	177,982	173,214
Long term debt: less current installments	5,314	4,934
Deferred income taxes	14,796	14,868
Deferred retirement benefits	2,082	2,256
Total liabilities	200,174	195,272
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	16,626	16,626
Retained earnings	10,460	12,253
Accumulated other comprehensive loss	(1,292)	(1,394)
Total stockholder's equity	25,812	27,503
Total liabilities and stockholder's equity	225,986	222,775
Series A Preferred Stock [Member]
Stockholder's equity
Series A Preferred stock; $1,000 par value share - shares authorized 25,000; issued and outstanding 14,116	14,116	14,116
Series A Preferred Stock [Member] | United Refining Company [Member]
Stockholder's equity
Series A Preferred stock; $1,000 par value share - shares authorized 25,000; issued and outstanding 14,116	14,116	14,116
Eliminations [Member]
Current:
Intercompany	(141,815)	(139,704)
Total current assets	(141,815)	(139,704)
Investment in subsidiaries	(25,812)	(27,503)
Total assets	(167,627)	(167,207)
Current:
Intercompany	(141,815)	(139,704)
Total current liabilities	(141,815)	(139,704)
Total liabilities	(141,815)	(139,704)
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	(16,626)	(16,626)
Retained earnings	(10,460)	(12,253)
Accumulated other comprehensive loss	1,292	1,394
Total stockholder's equity	(25,812)	(27,503)
Total liabilities and stockholder's equity	$ (167,627)	$ (167,207)

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Inventories - Schedule of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	May 31, 2014	Aug. 31, 2013
Inventory Disclosure [Abstract]
Crude Oil	$ 85,208	$ 21,344
Petroleum Products	108,934	60,094
Total @ LIFO	194,142	81,438
Merchandise	24,714	24,002
Supplies	29,371	25,526
Total @ FIFO	54,085	49,528
Total Inventory	$ 248,227	$ 130,966

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Segments of Business (Tables)

9 Months Ended

May 31, 2014

Segment Reporting [Abstract]

Summarized Financial Information of Company's Reportable Segments

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 May 31,				Nine Months Ended May 31,
	2014		2013		2014			2013
Net Sales
Retail	$	436,564	$	436,697	$	1,243,048		$	1,269,271
Wholesale		347,705		446,823		1,206,655			1,441,420
	$	784,269	$	883,520	$	2,449,703		$	2,710,691
Intersegment Sales
Wholesale	$	240,360	$	229,942	$	657,951		$	672,050
Operating Income (Loss)
Retail	$	3,238	$	2,678	$	(1,292	)	$	(1,985	)
Wholesale		9,563		81,010		121,344			308,319
	$	12,801	$	83,688	$	120,052		$	306,334
Depreciation and Amortization
Retail	$	1,610	$	1,453	$	4,749		$	4,378
Wholesale		5,589		5,025		16,580			15,522
	$	7,199	$	6,478	$	21,329		$	19,900
					May 31, 2014			August 31, 2013
Total Assets
Retail					$	186,717		$	182,662
Wholesale						643,050			613,633
					$	829,767		$	796,295

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Fair Value Measurements

9 Months Ended

May 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

6. 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 May 31, 2014 and August 31, 2013 by $18,645,000 and $26,642,000, respectively.

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Inventories (Tables)

9 Months Ended

May 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

	May 31, 2014		August 31, 2013
	(in thousands)
Crude Oil	$	85,208	$	21,344
Petroleum Products		108,934		60,094
Total @ LIFO		194,142		81,438
Merchandise		24,714		24,002
Supplies		29,371		25,526
Total @ FIFO		54,085		49,528
Total Inventory	$	248,227	$	130,966

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Subsidiary Guarantors (Tables)

9 Months Ended

May 31, 2014

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

(in thousands)

	May 31, 2014												August 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Assets
Current:
Cash and cash equivalents	$	28,881		$	17,152		$	—		$	46,033		$	141,386		$	17,151		$	—		$	158,537
Accounts receivable, net		66,844			41,174			—			108,018			83,800			41,396			—			125,196
Refundable income taxes		—			—			—			—			21,944			(1,054	)		—			20,890
Inventories, net		219,027			29,200			—			248,227			101,891			29,075			—			130,966
Prepaid income taxes		5,281			1,251			—			6,532			—			—			—			—
Prepaid expenses and other assets		52,945			4,191			—			57,136			37,860			4,233			—			42,093
Intercompany		139,286			2,529			(141,815	)		—			133,159			6,545			(139,704	)		—
Total current assets		512,264			95,497			(141,815	)		465,946			520,040			97,346			(139,704	)		477,682
Property, plant and equipment, net		194,602			115,095			—			309,697			179,326			109,806			—			289,132
Deferred financing costs, net		3,882			—			—			3,882			4,803			—			—			4,803
Goodwill and other non-amortizable assets		—			11,849			—			11,849			—			11,849			—			11,849
Amortizable intangible assets, net		—			977			—			977			—			1,057			—			1,057
Deferred turnaround costs & other assets		34,848			2,568			—			37,416			9,055			2,717			—			11,772
Investment in subsidiaries		25,812			—			(25,812	)		—			27,503			—			(27,503	)		—
	$	771,408		$	225,986		$	(167,627	)	$	829,767		$	740,727		$	222,775		$	(167,207	)	$	796,295
Liabilities and Stockholder’s Equity
Current:
Current installments of long-term debt	$	591		$	1,008		$	—		$	1,599		$	836		$	756		$	—		$	1,592
Accounts payable		40,894			24,375			—			65,269			31,625			22,545			—			54,170
Accrued liabilities		18,346			6,426			—			24,772			12,399			6,316			—			18,715
Income taxes payable		—			—			—			—			8,242			345			—			8,587
Sales, use and fuel taxes payable		18,789			4,904			—			23,693			14,933			4,314			—			19,247
Deferred income taxes		1,734			(1,369	)		—			365			1,734			(1,369	)		—			365
Amounts due to affiliated companies, net		—			823			—			823			(169	)		603			—			434
Intercompany		—			141,815			(141,815	)		—			—			139,704			(139,704	)		—
Total current liabilities		80,354			177,982			(141,815	)		116,521			69,600			173,214			(139,704	)		103,110
Long term debt: less current installments		232,784			5,314			—			238,098			232,180			4,934			—			237,114
Deferred income taxes		16,264			14,796			—			31,060			14,325			14,868			—			29,193
Deferred retirement benefits		63,314			2,082			—			65,396			67,419			2,256			—			69,675
Total liabilities		392,716			200,174			(141,815	)		451,075			383,524			195,272			(139,704	)		439,092
Commitment and contingencies
Stockholder’s equity
Common stock; $.10 par value per share – shares authorized 100; issued and outstanding 100		—			18			(18	)		—			—			18			(18	)		—
Series A Preferred stock; $1,000 par value share – shares authorized 25,000; issued and outstanding 14,116		14,116			—			—			14,116			14,116			—			—			14,116
Additional paid-in capital		157,251			16,626			(16,626	)		157,251			159,844			16,626			(16,626	)		159,844
Retained earnings		214,930			10,460			(10,460	)		214,930			190,333			12,253			(12,253	)		190,333
Accumulated other comprehensive loss		(7,605	)		(1,292	)		1,292			(7,605	)		(7,090	)		(1,394	)		1,394			(7,090	)
Total stockholder’s equity		378,692			25,812			(25,812	)		378,692			357,203			27,503			(27,503	)		357,203
	$	771,408		$	225,986		$	(167,627	)	$	829,767		$	740,727		$	222,775		$	(167,207	)	$	796,295

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

(in thousands)

	Three Months Ended May 31, 2014												Three Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries
Net sales	$	588,065		$	437,393		$	(241,189	)	$	784,269		$	676,765		$	437,885		$	(231,130	)	$	883,520
Costs and expenses:
Costs of goods sold (exclusive of depreciation and amortization)		566,498			397,018			(241,189	)		722,327			584,966			398,211			(231,130	)		752,047
Selling, general and administrative expenses		6,201			35,741			—			41,942			5,900			35,407			—			41,307
Depreciation and amortization expenses		5,333			1,866			—			7,199			4,813			1,665			—			6,478
		578,032			434,625			(241,189	)		771,468			595,679			435,283			(231,130	)		799,832
Operating income		10,033			2,768			—			12,801			81,086			2,602			—			83,688
Other income (expense):
Interest expense, net		(6,347	)		(250	)		—			(6,597	)		(9,751	)		(127	)		—			(9,878	)
Other, net		(818	)		(87	)		—			(905	)		(895	)		157			—			(738	)
Equity in net income of subsidiaries		1,283			—			(1,283	)		—			1,666			—			(1,666	)		—
		(5,882	)		(337	)		(1,283	)		(7,502	)		(8,980	)		30			(1,666	)		(10,616	)
Income before income tax expense		4,151			2,431			(1,283	)		5,299			72,106			2,632			(1,666	)		73,072
Income tax expense		919			1,148			—			2,067			27,547			966			—			28,513
Net income	$	3,232		$	1,283		$	(1,283	)	$	3,232		$	44,559		$	1,666		$	(1,666	)	$	44,559
	Nine Months Ended May 31, 2014												Nine Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations			United Refining Company  & Subsidiaries			United Refining Company			Guarantors			Eliminations			United Refining Company & Subsidiaries
Net sales	$	1,864,606		$	1,246,280		$	(661,183	)	$	2,449,703		$	2,113,470		$	1,272,938		$	(675,717	)	$	2,710,691
Costs and expenses:
Costs of goods sold (exclusive of depreciation, amortization and losses on derivative contracts)		1,707,098			1,137,538			(661,183	)		2,183,453			1,768,975			1,166,063			(675,717	)		2,259,321
Losses on derivative contracts		—			—			—			—			2,319			—			—			2,319
Selling, general and administrative expenses		19,205			105,664			—			124,869			18,384			104,433			—			122,817
Depreciation and amortization expenses		15,812			5,517			—			21,329			14,887			5,013			—			19,900
		1,742,115			1,248,719			(661,183	)		2,329,651			1,804,565			1,275,509			(675,717	)		2,404,357
Operating income (loss)		122,491			(2,439	)		—			120,052			308,905			(2,571	)		—			306,334
Other income (expense):
Interest expense, net		(18,976	)		(724	)		—			(19,700	)		(28,584	)		(374	)		—			(28,958	)
Other, net		(2,538	)		236			—			(2,302	)		(2,805	)		479			—			(2,326	)
Equity in net loss of subsidiaries		(1,793	)		—			1,793			—			(1,863	)		—			1,863			—
		(23,307	)		(488	)		1,793			(22,002	)		(33,252	)		105			1,863			(31,284	)
Income (loss) before income tax expense (benefit)		99,184			(2,927	)		1,793			98,050			275,653			(2,466	)		1,863			275,050
Income tax expense (benefit)		39,369			(1,134	)		—			38,235			107,885			(603	)		—			107,282
Net income (loss)	$	59,815		$	(1,793	)	$	1,793		$	59,815		$	167,768		$	(1,863	)	$	1,863		$	167,768

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Nine Months Ended May 31, 2014											Nine Months Ended May 31, 2013
	United Refining Company			Guarantors			Eliminations		United Refining Company and Subsidiaries			United Refining Company			Guarantors			Eliminations		United Refining Company and Subsidiaries
Net cash (used in) provided by operating activities	$	(16,866	)	$	11,016		$	—	$	(5,850	)	$	90,216		$	19,311		$	—	$	109,527
Cash flows from investing activities:
Additions to property, plant and equipment		(25,150	)		(11,458	)		—		(36,608	)		(8,641	)		(20,825	)		—		(29,466	)
Additions to deferred turnaround costs		(32,028	)		(191	)		—		(32,219	)		(268	)		(48	)		—		(316	)
Proceeds from asset dispositions		56			2			—		58			65			10			—		75
Net cash used in investing activities		(57,122	)		(11,647	)		—		(68,769	)		(8,844	)		(20,863	)		—		(29,707	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			1,426			—		1,426			—			—			—		—
Dividends to preferred shareholder and common stockholder		(35,218	)		—			—		(35,218	)		(92,058	)		—			—		(92,058	)
Principal reductions of long-term debt		(706	)		(794	)		—		(1,500	)		(782	)		(428	)		—		(1,210	)
Distribution to parent under the tax sharing agreement		(2,593	)		—			—		(2,593	)		—			—			—		—
Net cash (used in) provided by financing activities		(38,517	)		632			—		(37,885	)		(92,840	)		(428	)		—		(93,268	)
Net (decrease) increase in cash and cash equivalents		(112,505	)		1			—		(112,504	)		(11,468	)		(1,980	)		—		(13,448	)
Cash and cash equivalents, beginning of year		141,386			17,151			—		158,537			122,219			15,321			—		137,540
Cash and cash equivalents, end of period	$	28,881		$	17,152		$	—	$	46,033		$	110,751		$	13,341		$	—	$	124,092

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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		9 Months Ended
	May 31, 2014	May 31, 2013	May 31, 2014	May 31, 2013	Aug. 31, 2013
Net Sales
Sales, Net	$ 784,269	$ 883,520	$ 2,449,703	$ 2,710,691
Operating Income (Loss)
Operating income	12,801	83,688	120,052	306,334
Depreciation and Amortization
Depreciation and Amortization	7,199	6,478	21,329	19,900
Total Assets
Assets, Total	829,767		829,767		796,295
Operating Segments [Member] | Retail [Member]
Net Sales
Sales, Net	436,564	436,697	1,243,048	1,269,271
Operating Income (Loss)
Operating income	3,238	2,678	(1,292)
Depreciation and Amortization
Depreciation and Amortization	1,610	1,453	4,749	4,378
Total Assets
Assets, Total	186,717		186,717		182,662
Operating Segments [Member] | Wholesale [Member]
Net Sales
Sales, Net	347,705	446,823	1,206,655	1,441,420
Operating Income (Loss)
Operating income	9,563	81,010	121,344	308,319
Depreciation and Amortization
Depreciation and Amortization	5,589	5,025	16,580	15,522
Total Assets
Assets, Total	643,050		643,050		613,633
Intersegment Eliminations [Member] | Wholesale [Member]
Intersegment Sales
Intersegment Sales	$ 240,360	$ 229,942	$ 657,951	$ 672,050

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Subsidiary Guarantors - Schedule of Condensed Consolidating Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	May 31, 2014	May 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	$ (5,850)	$ 109,527
Cash flows from investing activities:
Additions to property, plant and equipment	(36,608)	(29,466)
Additions to deferred turnaround costs	(32,219)	(316)
Proceeds from asset dispositions	58	75
Net cash used in investing activities	(68,769)	(29,707)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,426
Dividends to preferred shareholder and common stockholder	(35,218)	(92,058)
Principal reductions of long-term debt	(1,500)	(1,210)
Distribution to parent under the tax sharing agreement	(2,593)
Net cash (used in) provided by financing activities	(37,885)	(93,268)
Net (decrease) increase in cash and cash equivalents	(112,504)	(13,448)
Cash and cash equivalents, beginning of year	158,537	137,540
Cash and cash equivalents, end of period	46,033	124,092
United Refining Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(16,866)	90,216
Cash flows from investing activities:
Additions to property, plant and equipment	(25,150)	(8,641)
Additions to deferred turnaround costs	(32,028)	(268)
Proceeds from asset dispositions	56	65
Net cash used in investing activities	(57,122)	(8,844)
Cash flows from financing activities:
Dividends to preferred shareholder and common stockholder	(35,218)	(92,058)
Principal reductions of long-term debt	(706)	(782)
Distribution to parent under the tax sharing agreement	(2,593)
Net cash (used in) provided by financing activities	(38,517)	(92,840)
Net (decrease) increase in cash and cash equivalents	(112,505)	(11,468)
Cash and cash equivalents, beginning of year	141,386	122,219
Cash and cash equivalents, end of period	28,881	110,751
Guarantors [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	11,016	19,311
Cash flows from investing activities:
Additions to property, plant and equipment	(11,458)	(20,825)
Additions to deferred turnaround costs	(191)	(48)
Proceeds from asset dispositions	2	10
Net cash used in investing activities	(11,647)	(20,863)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,426
Principal reductions of long-term debt	(794)	(428)
Net cash (used in) provided by financing activities	632	(428)
Net (decrease) increase in cash and cash equivalents	1	(1,980)
Cash and cash equivalents, beginning of year	17,151	15,321
Cash and cash equivalents, end of period	$ 17,152	$ 13,341

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	May 31, 2014	May 31, 2013	May 31, 2014	May 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 3,232	$ 44,559	$ 59,815	$ 167,768
Other comprehensive (loss) income, net of taxes:
Unrecognized post retirement (loss) income, net of taxes of $(119) and $136 for the three months ended May 31, 2014 and 2013, respectively and $(358) and $410 for the nine months ended May 31, 2014 and 2013, respectively	(172)	197	(515)	590
Other comprehensive (loss) income	(172)	197	(515)	590
Total comprehensive income	$ 3,060	$ 44,756	$ 59,300	$ 168,358

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Segments of Business

9 Months Ended

May 31, 2014

Segment Reporting [Abstract]

Segments of Business

3. 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 May 31,				Nine Months Ended May 31,
	2014		2013		2014			2013
Net Sales
Retail	$	436,564	$	436,697	$	1,243,048		$	1,269,271
Wholesale		347,705		446,823		1,206,655			1,441,420
	$	784,269	$	883,520	$	2,449,703		$	2,710,691
Intersegment Sales
Wholesale	$	240,360	$	229,942	$	657,951		$	672,050
Operating Income (Loss)
Retail	$	3,238	$	2,678	$	(1,292	)	$	(1,985	)
Wholesale		9,563		81,010		121,344			308,319
	$	12,801	$	83,688	$	120,052		$	306,334
Depreciation and Amortization
Retail	$	1,610	$	1,453	$	4,749		$	4,378
Wholesale		5,589		5,025		16,580			15,522
	$	7,199	$	6,478	$	21,329		$	19,900
					May 31, 2014			August 31, 2013
Total Assets
Retail					$	186,717		$	182,662
Wholesale						643,050			613,633
					$	829,767		$	796,295

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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		9 Months Ended
	May 31, 2014	May 31, 2013	May 31, 2014	May 31, 2013
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 149	$ 163	$ 447	$ 491
Interest cost on benefit obligation	1,312	1,280	3,934	3,845
Expected return on plan assets	(1,404)	(1,463)	(4,210)	(4,395)
Amortization and deferral of net loss	175	335	526	1,005
Net periodic benefit cost	232	315	697	946
Other Post-Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	194	235	581	708
Interest cost on benefit obligation	518	471	1,554	1,418
Amortization and deferral of net loss	(465)	31	(1,395)	93
Net periodic benefit cost	$ 247	$ 737	$ 740	$ 2,219

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Inventories - Additional Information (Detail) (USD $)	May 31, 2014	Aug. 31, 2013
Inventory Disclosure [Abstract]
Replacement cost of LIFO, over LIFO carrying values	$ 93,278,000	$ 108,984,000