WRONG again Pave!
From the DL CFO in the Q3 Conference Call: (via Seeking Alpha)
"The refinery made a $19 million profit for the quarter which lowered our fuel price by $0.02 per gallon. The refinery?s profit represents a $16 million improvement over the same period last year. A key driver of the profitability was our domestic crude initiative as we processed 100,000 barrels per day of domestic crude during the quarter. We are on-pace to achieve our goal of averaging 70,000 barrels per day for the full year, which should increase to 100,000 barrels per day in 2015. For the December quarter, we?re expecting to pay $2.69 to $2.74 per gallon for fuel including the refinery and hedge impacts. This includes the projected profit of the refinery of $20 million driven by widening crack spreads. The refinery team is running a great operation and continuous to generate meaningful year-over-year improvements there.
At current crude prices, we?ll have approximately $100 million of hedge losses in the December quarter while our 2015 hedge book is near breakeven with a solid amount of protection at current price levels. Even with these hedge losses, we?ve participated in 80% of the price declines since late June. With the expected December quarter losses, our hedges reduced our overall fuel costs by roughly $160 million for 2014.
Turning to cash, our strong cash generation continued to differentiate us from the industry. This quarter we generated $1.3 billion of operating cash flow and reinvested $411 million into the business primarily related to fleet. In the fourth quarter, we expect to spend $800 million on capital expenditures which will bring our total CapEx to approximately $2.3 billion for the year. With another quarter of solid cash generation ahead of us, we?re on-track to produce $3.5 billion of free cash flow this year. We used that to continue to strengthen the balance sheet and return cash to shareholders with our $910 million of free cash flow during the quarter. Our adjusted net debt is down to $7.4 billion which held lower our interest expense by $60 million versus last year.
We have a clear line of site to achieve our $5 billion adjusted net debt targeted 2016. During the September quarter, we also returned $325 million to shareholders through dividends and buybacks. We paid out $75 million in dividends as we increased our dividend by 50% to $0.09 per share. In addition, we repurchased $250 million in shares during the quarter. Once again I want to thank the entire Delta team for another record breaking quarter. Our performance this quarter and throughout this year shows what we can do when we all work together to drive change and deliver."
Bye Bye---General Lee