DALLAS--(BUSINESS WIRE)--
HollyFrontier Corporation (NYSE: HFC) ("HollyFrontier" or the "Company")
today reported fourth quarter net income attributable to HollyFrontier
stockholders of $391.6 million or $1.92 per diluted share for the
quarter ended December 31, 2012, compared to $223.4 million or $1.06 per
diluted share for the quarter ended December 31, 2011. For the year
ended December 31, 2012, net income attributable to HollyFrontier
stockholders totaled $1,727.2 million or $8.38 per diluted share
compared to $1,023.4 million or $6.42 per diluted share for the year
ended December 31, 2011.
For the fourth quarter, net income attributable to our stockholders
increased by $168.2 million, or 75% compared to the same period of 2011,
principally reflecting higher fourth quarter refining margins. Refinery
gross margins were $24.00 per produced barrel, a 57% increase compared
to $15.32 for the fourth quarter of 2011. Production levels averaged
approximately 447,000 barrels per day ("BPD") and crude oil charges
averaged approximately 408,000 BPD for the current quarter, compared to
expected crude throughput of 424,000 BPD. Lower crude oil charges in the
quarter resulted from a combination of unplanned downtime and turnaround
activity extending longer than planned. Operating expenses for the
quarter were $296.8 million or $6.29 per barrel compared to $246.1
million or $5.22 per barrel for the fourth quarter of last year.
HollyFrontier's President & CEO, Mike Jennings, commented, "We are
extremely pleased with our solid fourth quarter results and the record
year for HollyFrontier. For the fourth quarter, strength in inland to
coastal crude oil differentials continued to contribute to attractive
refined product margins, particularly considering the effects of lower
seasonal demand that have historically yielded tighter margins. Looking
to 2013, we believe that the structural crude advantages currently
driving our operating margins will positively impact our operating
income, allowing us to continue to pay both regular and special
dividends. We remain committed to increasing total shareholder return
while maintaining a strong balance sheet."
For the fourth quarter of 2012, net cash provided by operations totaled
$490.9 million. During the period, we paid dividends to shareholders of
$275.5 million, which includes our $0.20 regular and a $0.50 special
dividend declared in the fourth quarter. At December 31, 2012, our
combined balance of cash and short-term investments totaled $2.4 billion
and our consolidated debt was $1.3 billion. Our debt, exclusive of Holly
Energy Partners' debt which is nonrecourse to HollyFrontier, was $471.6
million at December 31, 2012. We had no cash borrowings or outstanding
principal under our credit facility during the quarter.
Included in our fourth quarter 2012 results were charges totaling $21.6
million or $0.11 per share after-tax, related to increased environmental
accruals and the partial write-off of a previously capitalized project.
The Company has scheduled a webcast conference call for today, February
26, 2013, at 11:00 AM Eastern Time to discuss fourth quarter financial
results. This webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1012528.
An audio archive of this webcast will be available using the above noted
link through March 12, 2013.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an
independent petroleum refiner and marketer that produces high-value
light products such as gasoline, diesel fuel, jet fuel and other
specialty products. HollyFrontier operates through its subsidiaries a
135,000 barrels per stream day ("bpsd") refinery located in El Dorado,
Kansas, two refinery facilities with a combined capacity of 125,000 bpsd
located in Tulsa, Oklahoma, a 100,000 bpsd refinery located in Artesia,
New Mexico, a 52,000 bpsd refinery located in Cheyenne, Wyoming and a
31,000 bpsd refinery in Woods Cross, Utah. HollyFrontier markets its
refined products principally in the Southwest U.S., the Rocky Mountains
extending into the Pacific Northwest and in other neighboring Plains
states. A subsidiary of HollyFrontier also owns a 44% interest
(including the general partner interest) in Holly Energy Partners, L.P.
The following is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: The statements in this press release
relating to matters that are not historical facts are "forward-looking
statements" based on management's beliefs and assumptions using
currently available information and expectations as of the date hereof,
are not guarantees of future performance and involve certain risks and
uncertainties, including those contained in our filings with the
Securities and Exchange Commission. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable, we cannot assure you that our expectations will prove
correct. Therefore, actual outcomes and results could materially differ
from what is expressed, implied or forecast in such statements. Any
differences could be caused by a number of factors, including, but not
limited to, risks and uncertainties with respect to the actions of
actual or potential competitive suppliers of refined petroleum products
in the Company's markets, 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, the possibility of constraints on the
transportation of refined products, the possibility of inefficiencies,
curtailments or shutdowns in refinery operations or pipelines, effects
of governmental and environmental regulations and policies, the
availability and cost of financing to the Company, the effectiveness of
the Company's capital investments and marketing strategies, the
Company's efficiency in carrying out construction projects, the ability
of the Company to acquire refined product operations or pipeline and
terminal operations on acceptable terms and to integrate any future
acquired operations, the possibility of terrorist attacks and the
consequences of any such attacks, general economic conditions and other
financial, operational and legal risks and uncertainties detailed from
time to time in the Company's Securities and Exchange Commission
filings. The forward-looking statements speak only as of the date made
and, other than as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
RESULTS OF OPERATIONS
|
|
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|
|
|
|
|
Financial Data (all information in this release is unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Change from 2011
|
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
Percent
|
|
|
|
|
(In thousands, except per share data)
|
|
|
Sales and other revenues
|
|
|
$
|
5,147,507
|
|
|
$
|
4,972,412
|
|
|
$
|
175,095
|
|
|
3.5
|
%
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
4,073,226
|
|
|
4,258,439
|
|
|
(185,213
|
)
|
|
(4.3
|
)
|
|
Operating expenses
|
|
|
296,754
|
|
|
246,110
|
|
|
50,644
|
|
|
20.6
|
|
|
General and administrative expenses
|
|
|
39,680
|
|
|
41,473
|
|
|
(1,793
|
)
|
|
(4.3
|
)
|
|
Depreciation and amortization
|
|
|
64,706
|
|
|
53,327
|
|
|
11,379
|
|
|
21.3
|
|
|
Total operating costs and expenses
|
|
|
4,474,366
|
|
|
4,599,349
|
|
|
(124,983
|
)
|
|
(2.7
|
)
|
|
Income from operations
|
|
|
673,141
|
|
|
373,063
|
|
|
300,078
|
|
|
80.4
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Earnings of equity method investments
|
|
|
468
|
|
|
561
|
|
|
(93
|
)
|
|
(16.6
|
)
|
|
Interest income
|
|
|
1,426
|
|
|
338
|
|
|
1,088
|
|
|
321.9
|
|
|
Interest expense
|
|
|
(22,826
|
)
|
|
(21,852
|
)
|
|
(974
|
)
|
|
4.5
|
|
|
|
|
|
(20,932
|
)
|
|
(20,953
|
)
|
|
21
|
|
|
(0.1
|
)
|
|
Income before income taxes
|
|
|
652,209
|
|
|
352,110
|
|
|
300,099
|
|
|
85.2
|
|
|
Income tax provision
|
|
|
252,216
|
|
|
116,261
|
|
|
135,955
|
|
|
116.9
|
|
|
Net income
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|
|
399,993
|
|
|
235,849
|
|
|
164,144
|
|
|
69.6
|
|
|
Less net income attributable to noncontrolling interest
|
|
|
8,389
|
|
|
12,469
|
|
|
(4,080
|
)
|
|
(32.7
|
)
|
|
Net income attributable to HollyFrontier stockholders
|
|
|
$
|
391,604
|
|
|
$
|
223,380
|
|
|
$
|
168,224
|
|
|
75.3
|
%
|
|
Earnings per share attributable to HollyFrontier stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.92
|
|
|
$
|
1.07
|
|
|
$
|
0.85
|
|
|
79.4
|
%
|
|
Diluted
|
|
|
$
|
1.92
|
|
|
$
|
1.06
|
|
|
$
|
0.86
|
|
|
81.1
|
%
|
|
Cash dividends declared per common share
|
|
|
$
|
0.70
|
|
|
$
|
0.60
|
|
|
$
|
0.10
|
|
|
16.7
|
%
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
203,458
|
|
|
209,319
|
|
|
(5,861
|
)
|
|
(2.8
|
)%
|
|
Diluted
|
|
|
204,453
|
|
|
210,159
|
|
|
(5,706
|
)
|
|
(2.7
|
)%
|
|
EBITDA
|
|
|
$
|
729,926
|
|
|
$
|
414,482
|
|
|
$
|
315,444
|
|
|
76.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
Change from 2011
|
|
|
|
|
|
2012
|
|
2011(1) |
|
Change
|
|
Percent
|
|
|
|
|
(In thousands, except per share data)
|
|
|
Sales and other revenues
|
|
|
$
|
20,090,724
|
|
|
$
|
15,439,528
|
|
|
$
|
4,651,196
|
|
|
30.1
|
%
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
15,840,643
|
|
|
12,680,078
|
|
|
3,160,565
|
|
|
24.9
|
|
|
Operating expenses
|
|
|
994,966
|
|
|
748,081
|
|
|
246,885
|
|
|
33.0
|
|
|
General and administrative expenses
|
|
|
128,101
|
|
|
120,114
|
|
|
7,987
|
|
|
6.6
|
|
|
Depreciation and amortization
|
|
|
242,868
|
|
|
159,707
|
|
|
83,161
|
|
|
52.1
|
|
|
Total operating costs and expenses
|
|
|
17,206,578
|
|
|
13,707,980
|
|
|
3,498,598
|
|
|
25.5
|
|
|
Income from operations
|
|
|
2,884,146
|
|
|
1,731,548
|
|
|
1,152,598
|
|
|
66.6
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Earnings of equity method investments
|
|
|
2,923
|
|
|
2,300
|
|
|
623
|
|
|
27.1
|
|
|
Interest income
|
|
|
4,786
|
|
|
1,284
|
|
|
3,502
|
|
|
272.7
|
|
|
Interest expense
|
|
|
(104,186
|
)
|
|
(78,323
|
)
|
|
(25,863
|
)
|
|
33.0
|
|
|
Gain on sale of marketable securities
|
|
|
326
|
|
|
—
|
|
|
326
|
|
|
—
|
|
|
Merger transaction costs
|
|
|
—
|
|
|
(15,114
|
)
|
|
15,114
|
|
|
(100.0
|
)
|
|
|
|
|
(96,151
|
)
|
|
(89,853
|
)
|
|
(6,298
|
)
|
|
7.0
|
|
|
Income before income taxes
|
|
|
2,787,995
|
|
|
1,641,695
|
|
|
1,146,300
|
|
|
69.8
|
|
|
Income tax provision
|
|
|
1,027,962
|
|
|
581,991
|
|
|
445,971
|
|
|
76.6
|
|
|
Net income
|
|
|
1,760,033
|
|
|
1,059,704
|
|
|
700,329
|
|
|
66.1
|
|
|
Less net income attributable to noncontrolling interest
|
|
|
32,861
|
|
|
36,307
|
|
|
(3,446
|
)
|
|
(9.5
|
)
|
|
Net income attributable to HollyFrontier stockholders
|
|
|
$
|
1,727,172
|
|
|
$
|
1,023,397
|
|
|
$
|
703,775
|
|
|
68.8
|
%
|
|
Earnings per share attributable to HollyFrontier stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
8.41
|
|
|
$
|
6.46
|
|
|
$
|
1.95
|
|
|
30.2
|
%
|
|
Diluted
|
|
|
$
|
8.38
|
|
|
$
|
6.42
|
|
|
$
|
1.96
|
|
|
30.5
|
%
|
|
Cash dividends declared per common share
|
|
|
$
|
3.10
|
|
|
$
|
1.34
|
|
|
$
|
1.76
|
|
|
131.3
|
%
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
205,289
|
|
|
158,486
|
|
|
46,803
|
|
|
29.5
|
%
|
|
Diluted
|
|
|
206,184
|
|
|
159,294
|
|
|
46,890
|
|
|
29.4
|
%
|
|
EBITDA
|
|
|
$
|
3,097,402
|
|
|
$
|
1,842,134
|
|
|
$
|
1,255,268
|
|
|
68.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our consolidated financial and operating results reflect the
operations of the merged Frontier businesses beginning July 1, 2011.
|
|
|
|
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
(In thousands)
|
|
Cash, cash equivalents and investments in marketable securities
|
|
|
$
|
2,393,401
|
|
|
$
|
1,840,610
|
|
Working capital
|
|
|
$
|
2,815,821
|
|
|
$
|
2,030,063
|
|
Total assets
|
|
|
$
|
10,328,997
|
|
|
$
|
9,576,243
|
|
Long-term debt
|
|
|
$
|
1,336,238
|
|
|
$
|
1,214,742
|
|
Total equity
|
|
|
$
|
6,642,658
|
|
|
$
|
5,835,900
|
|
|
|
|
|
|
|
|
|
|
Segment Information
Our operations are organized into two reportable segments, Refining and
HEP. Our operations that are not included in the Refining and HEP
segments are included in Corporate and Other. Intersegment transactions
are eliminated in our consolidated financial statements and are included
in Consolidations and Eliminations. The Refining segment includes the
operations of our El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross
refineries and NK Asphalt and involves the purchase and refining of
crude oil and wholesale and branded marketing of refined products, such
as gasoline, diesel fuel, jet fuel, specialty lubricant products, and
specialty and modified asphalt. The petroleum products are primarily
marketed in the Mid-Continent, Southwest and Rocky Mountain regions of
the United States and northern Mexico. Additionally, specialty lubricant
products produced at our Tulsa West facility are marketed throughout
North America and are distributed in Central and South America. NK
Asphalt manufactures and markets asphalt and asphalt products in
Arizona, New Mexico, Oklahoma, Kansas, Missouri, Texas and northern
Mexico.
The HEP segment involves all of the operations of HEP, a consolidated
variable interest entity, which owns and operates logistics assets
consisting of petroleum product and crude oil pipelines and terminal,
tankage and loading rack facilities in the Mid-Continent, Southwest and
Rocky Mountain regions of the United States. Revenues are generated by
charging tariffs for transporting petroleum products and crude oil
through its pipelines and by charging fees for terminalling petroleum
products and other hydrocarbons, and storing and providing other
services at its storage tanks and terminals. The HEP segment also
includes a 75% interest in the UNEV Pipeline (an HEP consolidated
subsidiary) and a 25% interest in the SLC Pipeline. Revenues from the
HEP segment are earned through transactions with unaffiliated parties
for pipeline transportation, rental and terminalling operations as well
as revenues relating to pipeline transportation services provided for
our refining operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining(1)
|
|
HEP
|
|
Corporate
and Other
|
|
Consolidations
and
Eliminations
|
|
Consolidated
Total
|
|
|
|
|
(In thousands)
|
|
Three Months Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
5,135,106
|
|
|
$
|
81,251
|
|
|
$
|
136
|
|
|
$
|
(68,986
|
)
|
|
$
|
5,147,507
|
|
Depreciation and amortization
|
|
|
$
|
48,160
|
|
|
$
|
15,500
|
|
|
$
|
1,253
|
|
|
$
|
(207
|
)
|
|
$
|
64,706
|
|
Income (loss) from operations
|
|
|
$
|
677,735
|
|
|
$
|
32,880
|
|
|
$
|
(36,941
|
)
|
|
$
|
(533
|
)
|
|
$
|
673,141
|
|
Capital expenditures
|
|
|
$
|
106,840
|
|
|
$
|
15,627
|
|
|
$
|
5,259
|
|
|
$
|
—
|
|
|
$
|
127,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
4,960,008
|
|
|
$
|
68,079
|
|
|
$
|
—
|
|
|
$
|
(55,675
|
)
|
|
$
|
4,972,412
|
|
Depreciation and amortization
|
|
|
$
|
41,623
|
|
|
$
|
10,881
|
|
|
$
|
1,030
|
|
|
$
|
(207
|
)
|
|
$
|
53,327
|
|
Income (loss) from operations
|
|
|
$
|
378,566
|
|
|
$
|
34,402
|
|
|
$
|
(41,225
|
)
|
|
$
|
1,320
|
|
|
$
|
373,063
|
|
Capital expenditures
|
|
|
$
|
56,621
|
|
|
$
|
40,420
|
|
|
$
|
2,977
|
|
|
$
|
—
|
|
|
$
|
100,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
20,042,955
|
|
|
$
|
288,501
|
|
|
$
|
1,048
|
|
|
$
|
(241,780
|
)
|
|
$
|
20,090,724
|
|
Depreciation and amortization
|
|
|
$
|
181,247
|
|
|
$
|
57,789
|
|
|
$
|
4,660
|
|
|
$
|
(828
|
)
|
|
$
|
242,868
|
|
Income (loss) from operations
|
|
|
$
|
2,879,383
|
|
|
$
|
133,723
|
|
|
$
|
(126,840
|
)
|
|
$
|
(2,120
|
)
|
|
$
|
2,884,146
|
|
Capital expenditures
|
|
|
$
|
278,705
|
|
|
$
|
44,929
|
|
|
$
|
11,629
|
|
|
$
|
—
|
|
|
$
|
335,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
15,392,430
|
|
|
$
|
212,995
|
|
|
$
|
1,098
|
|
|
$
|
(166,995
|
)
|
|
$
|
15,439,528
|
|
Depreciation and amortization
|
|
|
$
|
122,437
|
|
|
$
|
33,288
|
|
|
$
|
4,810
|
|
|
$
|
(828
|
)
|
|
$
|
159,707
|
|
Income (loss) from operations
|
|
|
$
|
1,739,068
|
|
|
$
|
110,102
|
|
|
$
|
(117,677
|
)
|
|
$
|
55
|
|
|
$
|
1,731,548
|
|
Capital expenditures
|
|
|
$
|
148,699
|
|
|
$
|
216,215
|
|
|
$
|
9,327
|
|
|
$
|
—
|
|
|
$
|
374,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and investments in marketable securities
|
|
|
$
|
2,101
|
|
|
$
|
5,237
|
|
|
$
|
2,386,063
|
|
|
$
|
—
|
|
|
$
|
2,393,401
|
|
Total assets
|
|
|
$
|
6,702,872
|
|
|
$
|
1,426,800
|
|
|
$
|
2,531,967
|
|
|
$
|
(332,642
|
)
|
|
$
|
10,328,997
|
|
Long-term debt
|
|
|
$
|
—
|
|
|
$
|
864,673
|
|
|
$
|
471,565
|
|
|
$
|
—
|
|
|
$
|
1,336,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and investments in marketable securities
|
|
|
$
|
—
|
|
|
$
|
6,369
|
|
|
$
|
1,834,241
|
|
|
$
|
—
|
|
|
$
|
1,840,610
|
|
Total assets
|
|
|
$
|
6,576,966
|
|
|
$
|
1,418,660
|
|
|
$
|
1,997,600
|
|
|
$
|
(416,983
|
)
|
|
$
|
9,576,243
|
|
Long-term debt
|
|
|
$
|
—
|
|
|
$
|
598,761
|
|
|
$
|
688,881
|
|
|
$
|
(72,900
|
)
|
|
$
|
1,214,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Refining segment reflects the operations of the El Dorado and
Cheyenne Refineries beginning July 1, 2011 (date of Holly-Frontier
merger).
Refining Operating Data
The following tables set forth information, including non-GAAP
performance measures about our refinery operations. The cost of products
and refinery gross margin do not include the effect of depreciation and
amortization. Reconciliations to amounts reported under GAAP are
provided under "Reconciliations to Amounts Reported Under Generally
Accepted Accounting Principles" below.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011 (10) |
|
Mid-Continent Region (El Dorado and Tulsa Refineries)
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
|
237,190
|
|
|
250,840
|
|
|
248,360
|
|
|
183,070
|
|
|
Refinery throughput (BPD) (2) |
|
|
267,970
|
|
|
271,940
|
|
|
269,760
|
|
|
194,310
|
|
|
Refinery production (BPD) (3) |
|
|
264,740
|
|
|
265,480
|
|
|
263,310
|
|
|
188,760
|
|
|
Sales of produced refined products (BPD)
|
|
|
269,350
|
|
|
273,460
|
|
|
254,350
|
|
|
188,020
|
|
|
Sales of refined products (BPD) (4) |
|
|
272,790
|
|
|
275,210
|
|
|
258,020
|
|
|
190,340
|
|
|
Refinery utilization (5) |
|
|
91.2
|
%
|
|
96.5
|
%
|
|
95.5
|
%
|
|
94.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
116.42
|
|
|
$
|
113.94
|
|
|
$
|
119.19
|
|
|
$
|
119.51
|
|
|
Cost of products (7) |
|
|
93.77
|
|
|
99.23
|
|
|
95.77
|
|
|
99.92
|
|
|
Refinery gross margin
|
|
|
22.65
|
|
|
14.71
|
|
|
23.42
|
|
|
19.59
|
|
|
Refinery operating expenses (8) |
|
|
5.12
|
|
|
4.94
|
|
|
4.83
|
|
|
5.04
|
|
|
Net operating margin
|
|
|
$
|
17.53
|
|
|
$
|
9.77
|
|
|
$
|
18.59
|
|
|
$
|
14.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (9) |
|
|
$
|
5.15
|
|
|
$
|
4.97
|
|
|
$
|
4.55
|
|
|
$
|
4.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
70
|
%
|
|
77
|
%
|
|
70
|
%
|
|
82
|
%
|
|
Sour crude oil
|
|
|
6
|
%
|
|
5
|
%
|
|
8
|
%
|
|
4
|
%
|
|
Heavy sour crude oil
|
|
|
13
|
%
|
|
10
|
%
|
|
14
|
%
|
|
8
|
%
|
|
Other feedstocks and blends
|
|
|
11
|
%
|
|
8
|
%
|
|
8
|
%
|
|
6
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
51
|
%
|
|
49
|
%
|
|
48
|
%
|
|
44
|
%
|
|
Diesel fuels
|
|
|
30
|
%
|
|
29
|
%
|
|
29
|
%
|
|
32
|
%
|
|
Jet fuels
|
|
|
8
|
%
|
|
7
|
%
|
|
9
|
%
|
|
7
|
%
|
|
Fuel oil
|
|
|
1
|
%
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
Asphalt
|
|
|
3
|
%
|
|
4
|
%
|
|
2
|
%
|
|
4
|
%
|
|
Lubricants
|
|
|
3
|
%
|
|
4
|
%
|
|
5
|
%
|
|
6
|
%
|
|
Gas oil/intermediates
|
|
|
—
|
|
|
2
|
%
|
|
—
|
|
|
3
|
%
|
|
LPG and other
|
|
|
4
|
%
|
|
5
|
%
|
|
6
|
%
|
|
4
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011 (10) |
|
Southwest Region (Navajo Refinery)
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
|
99,610
|
|
|
86,190
|
|
|
93,830
|
|
|
83,700
|
|
|
Refinery throughput (BPD) (2) |
|
|
110,740
|
|
|
99,310
|
|
|
103,120
|
|
|
93,260
|
|
|
Refinery production (BPD) (3) |
|
|
106,280
|
|
|
96,490
|
|
|
100,810
|
|
|
91,810
|
|
|
Sales of produced refined products (BPD)
|
|
|
104,220
|
|
|
101,780
|
|
|
99,160
|
|
|
93,950
|
|
|
Sales of refined products (BPD) (4) |
|
|
111,100
|
|
|
106,140
|
|
|
104,620
|
|
|
98,540
|
|
|
Refinery utilization (5) |
|
|
99.6
|
%
|
|
86.2
|
%
|
|
93.8
|
%
|
|
83.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
119.77
|
|
|
$
|
115.90
|
|
|
$
|
122.62
|
|
|
$
|
118.76
|
|
|
Cost of products (7) |
|
|
91.06
|
|
|
101.14
|
|
|
95.70
|
|
|
98.40
|
|
|
Refinery gross margin
|
|
|
28.71
|
|
|
14.76
|
|
|
26.92
|
|
|
20.36
|
|
|
Refinery operating expenses (8) |
|
|
7.48
|
|
|
5.14
|
|
|
6.07
|
|
|
5.44
|
|
|
Net operating margin
|
|
|
$
|
21.23
|
|
|
$
|
9.62
|
|
|
$
|
20.85
|
|
|
$
|
14.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (9) |
|
|
$
|
7.04
|
|
|
$
|
5.27
|
|
|
$
|
5.84
|
|
|
$
|
5.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
3
|
%
|
|
—
|
|
|
2
|
%
|
|
3
|
%
|
|
Sour crude oil
|
|
|
72
|
%
|
|
86
|
%
|
|
77
|
%
|
|
75
|
%
|
|
Heavy sour crude oil
|
|
|
15
|
%
|
|
1
|
%
|
|
12
|
%
|
|
11
|
%
|
|
Other feedstocks and blends
|
|
|
10
|
%
|
|
13
|
%
|
|
9
|
%
|
|
11
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
51
|
%
|
|
56
|
%
|
|
51
|
%
|
|
52
|
%
|
|
Diesel fuels
|
|
|
39
|
%
|
|
33
|
%
|
|
38
|
%
|
|
34
|
%
|
|
Jet fuels
|
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
1
|
%
|
|
Fuel oil
|
|
|
6
|
%
|
|
4
|
%
|
|
6
|
%
|
|
6
|
%
|
|
Asphalt
|
|
|
1
|
%
|
|
4
|
%
|
|
2
|
%
|
|
4
|
%
|
|
LPG and other
|
|
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
3
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
|
71,100
|
|
|
69,500
|
|
|
73,020
|
|
|
48,230
|
|
|
Refinery throughput (BPD) (2) |
|
|
78,830
|
|
|
77,210
|
|
|
80,860
|
|
|
52,630
|
|
|
Refinery production (BPD) (3) |
|
|
75,500
|
|
|
75,950
|
|
|
78,610
|
|
|
51,320
|
|
|
Sales of produced refined products (BPD)
|
|
|
72,130
|
|
|
75,570
|
|
|
77,550
|
|
|
50,750
|
|
|
Sales of refined products (BPD) (4) |
|
|
79,150
|
|
|
77,430
|
|
|
80,980
|
|
|
51,750
|
|
|
Refinery utilization (5) |
|
|
85.7
|
%
|
|
83.7
|
%
|
|
88.0
|
%
|
|
84.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011 (10) |
|
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
112.94
|
|
|
$
|
111.88
|
|
|
$
|
116.44
|
|
|
$
|
116.37
|
|
|
Cost of products (7) |
|
|
90.69
|
|
|
93.55
|
|
|
89.29
|
|
|
91.33
|
|
|
Refinery gross margin
|
|
|
22.25
|
|
|
18.33
|
|
|
27.15
|
|
|
25.04
|
|
|
Refinery operating expenses (8) |
|
|
8.92
|
|
|
6.34
|
|
|
6.91
|
|
|
6.41
|
|
|
Net operating margin
|
|
|
$
|
13.33
|
|
|
$
|
11.99
|
|
|
$
|
20.24
|
|
|
$
|
18.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (9) |
|
|
$
|
8.16
|
|
|
$
|
6.21
|
|
|
$
|
6.63
|
|
|
$
|
6.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
49
|
%
|
|
48
|
%
|
|
47
|
%
|
|
52
|
%
|
|
Sour crude oil
|
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
Heavy sour crude oil
|
|
|
31
|
%
|
|
30
|
%
|
|
31
|
%
|
|
24
|
%
|
|
Black wax crude oil
|
|
|
9
|
%
|
|
11
|
%
|
|
11
|
%
|
|
15
|
%
|
|
Other feedstocks and blends
|
|
|
10
|
%
|
|
10
|
%
|
|
10
|
%
|
|
8
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
53
|
%
|
|
58
|
%
|
|
55
|
%
|
|
56
|
%
|
|
Diesel fuels
|
|
|
36
|
%
|
|
30
|
%
|
|
32
|
%
|
|
31
|
%
|
|
Jet fuels
|
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
1
|
%
|
|
Fuel oil
|
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
|
Asphalt
|
|
|
3
|
%
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
LPG and other
|
|
|
6
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
|
407,900
|
|
|
406,530
|
|
|
415,210
|
|
|
315,000
|
|
|
Refinery throughput (BPD) (2) |
|
|
457,540
|
|
|
448,460
|
|
|
453,740
|
|
|
340,200
|
|
|
Refinery production (BPD) (3) |
|
|
446,520
|
|
|
437,920
|
|
|
442,730
|
|
|
331,890
|
|
|
Sales of produced refined products (BPD)
|
|
|
445,700
|
|
|
450,810
|
|
|
431,060
|
|
|
332,720
|
|
|
Sales of refined products (BPD) (4) |
|
|
463,040
|
|
|
458,780
|
|
|
443,620
|
|
|
340,630
|
|
|
Refinery utilization (5) |
|
|
92.1
|
%
|
|
91.8
|
%
|
|
93.7
|
%
|
|
89.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
116.64
|
|
|
$
|
114.03
|
|
|
$
|
119.48
|
|
|
$
|
118.82
|
|
|
Cost of products (7) |
|
|
92.64
|
|
|
98.71
|
|
|
94.59
|
|
|
98.18
|
|
|
Refinery gross margin
|
|
|
24.00
|
|
|
15.32
|
|
|
24.89
|
|
|
20.64
|
|
|
Refinery operating expenses (8) |
|
|
6.29
|
|
|
5.22
|
|
|
5.49
|
|
|
5.36
|
|
|
Net operating margin
|
|
|
$
|
17.71
|
|
|
$
|
10.10
|
|
|
$
|
19.40
|
|
|
$
|
15.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (9) |
|
|
$
|
6.12
|
|
|
$
|
5.25
|
|
|
$
|
5.22
|
|
|
$
|
5.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
50
|
%
|
|
55
|
%
|
|
51
|
%
|
|
56
|
%
|
|
Sour crude oil
|
|
|
21
|
%
|
|
22
|
%
|
|
22
|
%
|
|
23
|
%
|
|
Heavy sour crude oil
|
|
|
16
|
%
|
|
12
|
%
|
|
17
|
%
|
|
12
|
%
|
|
Black wax crude oil
|
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Other feedstocks and blends
|
|
|
11
|
%
|
|
9
|
%
|
|
8
|
%
|
|
7
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011 (10) |
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
51
|
%
|
|
52
|
%
|
|
50
|
%
|
|
48
|
%
|
|
Diesel fuels
|
|
|
33
|
%
|
|
31
|
%
|
|
31
|
%
|
|
32
|
%
|
|
Jet fuels
|
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
|
Fuel oil
|
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
2
|
%
|
|
Asphalt
|
|
|
3
|
%
|
|
4
|
%
|
|
3
|
%
|
|
4
|
%
|
|
Lubricants
|
|
|
2
|
%
|
|
2
|
%
|
|
3
|
%
|
|
3
|
%
|
|
Gas oil / intermediates
|
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
2
|
%
|
|
LPG and other
|
|
|
4
|
%
|
|
4
|
%
|
|
5
|
%
|
|
4
|
%
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Crude charge represents the barrels per day of crude oil processed
at our refineries.
|
|
(2)
|
|
Refinery throughput represents the barrels per day of crude and
other refinery feedstocks input to the crude units and other
conversion units at our refineries.
|
|
(3)
|
|
Refinery production represents the barrels per day of refined
products yielded from processing crude and other refinery
feedstocks through the crude units and other conversion units at
our refineries.
|
|
(4)
|
|
Includes refined products purchased for resale.
|
|
(5)
|
|
Represents crude charge divided by total crude capacity (BPSD). As
a result of our merger effective July 1, 2011, our consolidated
crude capacity increased from 256,000 BPSD to 443,000 BPSD.
|
|
(6)
|
|
Represents average per barrel amount for produced refined products
sold, which is a non-GAAP measure. Reconciliations to amounts
reported under GAAP are provided under "Reconciliations to Amounts
Reported Under Generally Accepted Accounting Principles" below.
|
|
(7)
|
|
Transportation, terminal and refinery storage costs billed from
HEP are included in cost of products.
|
|
(8)
|
|
Represents operating expenses of our refineries, exclusive of
depreciation and amortization.
|
|
(9)
|
|
Represents refinery operating expenses, exclusive of depreciation
and amortization divided by refinery throughput.
|
|
(10)
|
|
We merged with Frontier effective July 1, 2011. Refining operating
data for the year ended December 31, 2011 include crude oil
processed and products yielded from the El Dorado and Cheyenne
Refineries for the period from July 1, 2011 through December 31,
2011 only, and averaged over the 365 days in the year ended
December 31, 2011.
|
Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles
Reconciliations of earnings before interest, taxes, depreciation
and amortization ("EBITDA") to amounts reported under generally accepted
accounting principles in financial statements.
Earnings before interest, taxes, depreciation and amortization, which we
refer to as EBITDA, is calculated as net income attributable to
HollyFrontier stockholders plus (i) interest expense, net of interest
income, (ii) income tax provision, and (iii) depreciation and
amortization. EBITDA is not a calculation provided for under accounting
principles generally accepted in the United States; however, the amounts
included in the EBITDA calculation are derived from amounts included in
our consolidated financial statements. EBITDA should not be considered
as an alternative to net income or operating income as an indication of
our operating performance or as an alternative to operating cash flow as
a measure of liquidity. EBITDA is not necessarily comparable to
similarly titled measures of other companies. EBITDA is presented here
because it is a widely used financial indicator used by investors and
analysts to measure performance. EBITDA is also used by our management
for internal analysis and as a basis for financial covenants.
Set forth below is our calculation of EBITDA.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HollyFrontier stockholders
|
|
|
$
|
391,604
|
|
|
$
|
223,380
|
|
|
$
|
1,727,172
|
|
|
$
|
1,023,397
|
|
|
Add income tax provision
|
|
|
252,216
|
|
|
116,261
|
|
|
1,027,962
|
|
|
581,991
|
|
|
Add interest expense
|
|
|
22,826
|
|
|
21,852
|
|
|
104,186
|
|
|
78,323
|
|
|
Subtract interest income
|
|
|
(1,426
|
)
|
|
(338
|
)
|
|
(4,786
|
)
|
|
(1,284
|
)
|
|
Add depreciation and amortization
|
|
|
64,706
|
|
|
53,327
|
|
|
242,868
|
|
|
159,707
|
|
|
EBITDA
|
|
|
$
|
729,926
|
|
|
$
|
414,482
|
|
|
$
|
3,097,402
|
|
|
$
|
1,842,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of refinery operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP performance
measures that are used by our management and others to compare our
refining performance to that of other companies in our industry. We
believe these margin measures are helpful to investors in evaluating our
refining performance on a relative and absolute basis.
Refinery gross margin per barrel is the difference between average net
sales price and average cost of products per barrel of produced refined
products. Net operating margin per barrel is the difference between
refinery gross margin and refinery operating expenses per barrel of
produced refined products. These two margins do not include the effect
of depreciation and amortization. Each of these component performance
measures can be reconciled directly to our consolidated statements of
income.
Other companies in our industry may not calculate these performance
measures in the same manner.
Refinery Gross and Net Operating Margins
Below are reconciliations to our consolidated statements of income for
(i) net sales, cost of products and operating expenses, in each case
averaged per produced barrel sold, and (ii) net operating margin and
refinery gross margin. Due to rounding of reported numbers, some amounts
may not calculate exactly.
Reconciliations of refined product sales from
produced products sold to total sales and other revenues
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Average sales price per produced barrel sold
|
|
|
$
|
116.64
|
|
|
$
|
114.03
|
|
|
$
|
119.48
|
|
|
$
|
118.82
|
|
|
Times sales of produced refined products (BPD)
|
|
|
445,700
|
|
|
450,810
|
|
|
431,060
|
|
|
332,720
|
|
|
Times number of days in period
|
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Refined product sales from produced products sold
|
|
|
$
|
4,782,753
|
|
|
$
|
4,729,340
|
|
|
$
|
18,850,116
|
|
|
$
|
14,429,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total refined product sales
|
|
|
$
|
4,782,753
|
|
|
$
|
4,729,340
|
|
|
$
|
18,850,116
|
|
|
$
|
14,429,833
|
|
|
Add refined product sales from purchased products and rounding (1) |
|
|
194,364
|
|
|
84,132
|
|
|
572,206
|
|
|
350,843
|
|
|
Total refined product sales
|
|
|
4,977,117
|
|
|
4,813,472
|
|
|
19,422,322
|
|
|
14,780,676
|
|
|
Add direct sales of excess crude oil (2) |
|
|
127,935
|
|
|
135,965
|
|
|
505,971
|
|
|
558,855
|
|
|
Add other refining segment revenue (3) |
|
|
30,054
|
|
|
10,571
|
|
|
114,662
|
|
|
52,899
|
|
|
Total refining segment revenue
|
|
|
5,135,106
|
|
|
4,960,008
|
|
|
20,042,955
|
|
|
15,392,430
|
|
|
Add HEP segment sales and other revenues
|
|
|
81,251
|
|
|
68,079
|
|
|
288,501
|
|
|
212,995
|
|
|
Add corporate and other revenues
|
|
|
136
|
|
|
—
|
|
|
1,048
|
|
|
1,098
|
|
|
Subtract consolidations and eliminations
|
|
|
(68,986
|
)
|
|
(55,675
|
)
|
|
(241,780
|
)
|
|
(166,995
|
)
|
|
Sales and other revenues
|
|
|
$
|
5,147,507
|
|
|
$
|
4,972,412
|
|
|
$
|
20,090,724
|
|
|
$
|
15,439,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average cost of products per
produced barrel sold to total cost of products sold
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Average cost of products per produced barrel sold
|
|
|
$
|
92.64
|
|
|
$
|
98.71
|
|
|
$
|
94.59
|
|
|
$
|
98.18
|
|
|
Times sales of produced refined products (BPD)
|
|
|
445,700
|
|
|
450,810
|
|
|
431,060
|
|
|
332,720
|
|
|
Times number of days in period
|
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Cost of products for produced products sold
|
|
|
$
|
3,798,648
|
|
|
$
|
4,093,950
|
|
|
$
|
14,923,271
|
|
|
$
|
11,923,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of products for produced products sold
|
|
|
$
|
3,798,648
|
|
|
$
|
4,093,950
|
|
|
$
|
14,923,271
|
|
|
$
|
11,923,254
|
|
|
Add refined product costs from purchased products sold and rounding (1) |
|
|
194,459
|
|
|
83,012
|
|
|
572,755
|
|
|
351,788
|
|
|
Total cost of refined products sold
|
|
|
3,993,107
|
|
|
4,176,962
|
|
|
15,496,026
|
|
|
12,275,042
|
|
|
Add crude oil cost of direct sales of excess crude oil (2) |
|
|
124,995
|
|
|
134,535
|
|
|
492,790
|
|
|
550,619
|
|
|
Add other refining segment cost of products sold (4) |
|
|
23,011
|
|
|
1,478
|
|
|
90,132
|
|
|
18,672
|
|
|
Total refining segment cost of products sold
|
|
|
4,141,113
|
|
|
4,312,975
|
|
|
16,078,948
|
|
|
12,844,333
|
|
|
Subtract consolidations and eliminations
|
|
|
(67,887
|
)
|
|
(54,536
|
)
|
|
(238,305
|
)
|
|
(164,255
|
)
|
|
Costs of products sold (exclusive of depreciation and amortization)
|
|
|
$
|
4,073,226
|
|
|
$
|
4,258,439
|
|
|
$
|
15,840,643
|
|
|
$
|
12,680,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average refinery operating
expenses per produced barrel sold to total operating expenses
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Average refinery operating expenses per produced barrel sold
|
|
|
$
|
6.29
|
|
|
$
|
5.22
|
|
|
$
|
5.49
|
|
|
$
|
5.36
|
|
|
Times sales of produced refined products (BPD)
|
|
|
445,700
|
|
|
450,810
|
|
|
431,060
|
|
|
332,720
|
|
|
Times number of days in period
|
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Refinery operating expenses for produced products sold
|
|
|
$
|
257,918
|
|
|
$
|
216,497
|
|
|
$
|
866,146
|
|
|
$
|
650,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total refinery operating expenses for produced products sold
|
|
|
$
|
257,918
|
|
|
$
|
216,497
|
|
|
$
|
866,146
|
|
|
$
|
650,933
|
|
|
Add other refining segment operating expenses and rounding (5) |
|
|
10,180
|
|
|
10,347
|
|
|
37,231
|
|
|
35,659
|
|
|
Total refining segment operating expenses
|
|
|
268,098
|
|
|
226,844
|
|
|
903,377
|
|
|
686,592
|
|
|
Add HEP segment operating expenses
|
|
|
27,596
|
|
|
21,208
|
|
|
89,395
|
|
|
63,029
|
|
|
Add corporate and other costs
|
|
|
1,419
|
|
|
310
|
|
|
2,721
|
|
|
427
|
|
|
Subtract consolidations and eliminations
|
|
|
(359
|
)
|
|
(2,252
|
)
|
|
(527
|
)
|
|
(1,967
|
)
|
|
Operating expenses (exclusive of depreciation and amortization)
|
|
|
$
|
296,754
|
|
|
$
|
246,110
|
|
|
$
|
994,966
|
|
|
$
|
748,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating margin per barrel
to refinery gross margin per barrel to total sales and other revenues
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Net operating margin per barrel
|
|
|
$
|
17.71
|
|
|
$
|
10.10
|
|
|
$
|
19.40
|
|
|
$
|
15.28
|
|
|
Add average refinery operating expenses per produced barrel
|
|
|
6.29
|
|
|
5.22
|
|
|
5.49
|
|
|
5.36
|
|
|
Refinery gross margin per barrel
|
|
|
24.00
|
|
|
15.32
|
|
|
24.89
|
|
|
20.64
|
|
|
Add average cost of products per produced barrel sold
|
|
|
92.64
|
|
|
98.71
|
|
|
94.59
|
|
|
98.18
|
|
|
Average sales price per produced barrel sold
|
|
|
$
|
116.64
|
|
|
$
|
114.03
|
|
|
$
|
119.48
|
|
|
$
|
118.82
|
|
|
Times sales of produced refined products (BPD)
|
|
|
445,700
|
|
|
450,810
|
|
|
431,060
|
|
|
332,720
|
|
|
Times number of days in period
|
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Refined product sales from produced products sold
|
|
|
$
|
4,782,753
|
|
|
$
|
4,729,340
|
|
|
$
|
18,850,116
|
|
|
$
|
14,429,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total refined product sales from produced products sold
|
|
|
$
|
4,782,753
|
|
|
$
|
4,729,340
|
|
|
$
|
18,850,116
|
|
|
$
|
14,429,833
|
|
|
Add refined product sales from purchased products and rounding (1) |
|
|
194,364
|
|
|
84,132
|
|
|
572,206
|
|
|
350,843
|
|
|
Total refined product sales
|
|
|
4,977,117
|
|
|
4,813,472
|
|
|
19,422,322
|
|
|
14,780,676
|
|
|
Add direct sales of excess crude oil (2) |
|
|
127,935
|
|
|
135,965
|
|
|
505,971
|
|
|
558,855
|
|
|
Add other refining segment revenue (3) |
|
|
30,054
|
|
|
10,571
|
|
|
114,662
|
|
|
52,899
|
|
|
Total refining segment revenue
|
|
|
5,135,106
|
|
|
4,960,008
|
|
|
20,042,955
|
|
|
15,392,430
|
|
|
Add HEP segment sales and other revenues
|
|
|
81,251
|
|
|
68,079
|
|
|
288,501
|
|
|
212,995
|
|
|
Add corporate and other revenues
|
|
|
136
|
|
|
—
|
|
|
1,048
|
|
|
1,098
|
|
|
Subtract consolidations and eliminations
|
|
|
(68,986
|
)
|
|
(55,675
|
)
|
|
(241,780
|
)
|
|
(166,995
|
)
|
|
Sales and other revenues
|
|
|
$
|
5,147,507
|
|
|
$
|
4,972,412
|
|
|
$
|
20,090,724
|
|
|
$
|
15,439,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
We purchase finished products when opportunities arise that
provide a profit on the sale of such products, or to meet delivery
commitments.
|
|
(2)
|
|
We purchase crude oil that at times exceeds the supply needs of
our refineries. Quantities in excess of our needs are sold at
market prices to purchasers of crude oil that are recorded on a
gross basis with the sales price recorded as revenues and the
corresponding acquisition cost as inventory and then upon sale as
cost of products sold. Additionally, at times we enter into
buy/sell exchanges of crude oil with certain parties to facilitate
the delivery of quantities to certain locations that are netted at
carryover cost.
|
|
(3)
|
|
Other refining segment revenue includes the incremental revenues
associated with NK Asphalt and miscellaneous revenue.
|
|
(4)
|
|
Other refining segment cost of products sold includes the
incremental cost of products for NK Asphalt and miscellaneous costs.
|
|
(5)
|
|
Other refining segment operating expenses include the marketing
costs associated with our refining segment and the operating
expenses of NK Asphalt.
|
HollyFrontier Corporation
Douglas S. Aron, 214-954-6510
Executive
Vice President and Chief Financial Officer
or
Julia
Heidenreich, 214-954-6510
Vice President, Investor Relations
Source: HollyFrontier Corporation
News Provided by Acquire Media