DALLAS--(BUSINESS WIRE)--
HollyFrontier Corporation (NYSE:HFC) ("HollyFrontier" or the "Company")
today reported a fourth quarter net loss attributable to HollyFrontier
stockholders of $222.2 million or $(1.13) per diluted share for the
quarter ended December 31, 2014, compared to net income of $62.9 million
or $0.31 per diluted share for the quarter ended December 31, 2013.
Included in the current quarter results was a non-cash lower of cost or
market inventory valuation adjustment that generated an after-tax charge
of $244.0 million or $1.25 per share.
Excluding this non-cash charge, refinery gross margins were $10.76 per
produced barrel, a 2% decrease compared to $10.96 for the fourth quarter
of 2013. Production levels averaged approximately 374,000 barrels per
day ("BPD") and crude oil charges averaged approximately 361,000 BPD for
the current quarter. Total operating expenses for the quarter were
$318.4 million with refinery operating expenses averaging $7.29 per
produced barrel sold compared to $291.9 million or $6.41 per barrel for
the fourth quarter of last year. Our fourth quarter 2014 operating
results also included charges of $27.0 million attributable to increased
environmental accruals and $20.0 million in asset write-downs.
HollyFrontier's President & CEO, Mike Jennings, commented, "For 2014, we
reported full year refinery utilization of 91.7%, a 5% improvement
versus 2013 as we began to see the benefits from our risk management,
reliability and process safety efforts. Improved operational performance
helped offset the impact of compressing Brent/WTI spreads, which
averaged $6.70 in 2014 compared to $10.61 in 2013. We believe new
inbound pipeline capacity, storage economics and refinery maintenance
activity will continue to drive Cushing inventories higher and create
wider inland crude spreads during 2015. After reaching parity in early
2015, the Brent/WTI crude differential has recently widened to more than
$9.00 per barrel. We believe we are well positioned to reap the benefits
from widening crude spreads given our advantaged geographic location
close to inland crude production, improving reliability and throughput,
and limited amount of planned maintenance scheduled for 2015. During
2014, we returned approximately $783.0 million to shareholders, or
nearly $4.00 per share, in the form of regular and special dividends and
stock repurchases."
For the fourth quarter of 2014, net cash used for operations totaled
$47.3 million. During the period, we declared $0.32 regular and $0.50
special dividends to shareholders totaling approximately $161.0 million.
At December 31, 2014, our combined balance of cash and short-term
investments totaled $1.0 billion and our consolidated debt was $1.1
billion. Our debt, exclusive of Holly Energy Partners' debt which is
nonrecourse to HollyFrontier, was $187.3 million at December 31, 2014.
We had no cash borrowings or outstanding principal under our credit
facility during the quarter.
The Company has scheduled a webcast conference call for today, February
25, 2015, at 8:30 AM Eastern Time to discuss fourth quarter financial
results. This webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1052230.
An audio archive of this webcast will be available using the above noted
link through March 11, 2015.
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 39% 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.
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RESULTS OF OPERATIONS
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Financial Data (all information in this release is unaudited)
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Three Months Ended
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December 31,
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Change from 2013
|
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|
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2014
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2013
|
|
|
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Change
|
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Percent
|
|
|
|
(In thousands, except per share data)
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|
Sales and other revenues
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$
|
4,283,119
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|
|
$
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4,826,801
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|
|
|
$
|
(543,682
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)
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(11
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)%
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|
Operating costs and expenses:
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|
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|
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|
|
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Cost of products sold:
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|
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|
|
|
|
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Cost of products sold (exclusive of lower of cost or market
inventory valuation adjustment)
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3,789,026
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4,332,894
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(543,868
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)
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(13
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)
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Lower of cost or market inventory adjustment
|
|
397,478
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|
—
|
|
|
|
397,478
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—
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|
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4,186,504
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|
4,332,894
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(146,390
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)
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(3
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)
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Operating expenses
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318,363
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|
291,891
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|
|
|
26,472
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|
|
9
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|
|
General and administrative expenses
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|
32,172
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|
|
35,828
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|
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(3,656
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)
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|
(10
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)
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Depreciation and amortization
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100,498
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79,065
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21,433
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27
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Total operating costs and expenses
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4,637,537
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4,739,678
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(102,141
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)
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(2
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)
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Income (loss) from operations
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|
(354,418
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)
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|
87,123
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(441,541
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)
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(507
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)
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Other income (expense):
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|
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Earnings (loss) of equity method investments
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|
949
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|
(1,201
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)
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|
|
2,150
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(179
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)
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Interest income
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|
837
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|
|
1,765
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(928
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)
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(53
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)
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Interest expense
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(10,125
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)
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(12,982
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)
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|
2,857
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|
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(22
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)
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Gain on sale of assets
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1,422
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—
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1,422
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—
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(6,917
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)
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(12,418
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)
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5,501
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(44
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)
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Income (loss) before income taxes
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(361,335
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)
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74,705
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(436,040
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)
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(584
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)
|
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Income tax provision (benefit)
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|
(150,990
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)
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|
4,911
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|
|
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(155,901
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)
|
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(3,175
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)
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Net income (loss)
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|
(210,345
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)
|
|
69,794
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|
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(280,139
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)
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|
(401
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)
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Less net income attributable to noncontrolling interest
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|
11,859
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|
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6,892
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|
|
|
4,967
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|
|
72
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|
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Net income (loss) attributable to HollyFrontier stockholders
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|
$
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(222,204
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)
|
|
$
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62,902
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$
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(285,106
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)
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(453
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)%
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Earnings (loss) per share attributable to HollyFrontier
stockholders:
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|
|
|
|
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|
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Basic
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$
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(1.13
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)
|
|
$
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0.32
|
|
|
|
$
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(1.45
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)
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(453
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)%
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Diluted
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$
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(1.13
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)
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$
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0.31
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|
|
|
$
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(1.44
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)
|
|
(465
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)%
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Cash dividends declared per common share
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|
$
|
0.82
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|
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$
|
0.80
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|
|
|
$
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0.02
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|
|
3
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%
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Average number of common shares outstanding:
|
|
|
|
|
|
|
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Basic
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195,310
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|
|
198,371
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|
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(3,061
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)
|
|
(2
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)%
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Diluted
|
|
195,310
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|
|
199,311
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|
|
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(4,001
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)
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(2
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)%
|
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EBITDA
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|
$
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(263,408
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)
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|
$
|
158,095
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|
|
|
$
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(421,503
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)
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(267
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)%
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Years Ended
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December 31,
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|
|
Change from 2013
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|
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2014
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|
2013
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|
|
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Change
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Percent
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|
|
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(In thousands, except per share data)
|
|
Sales and other revenues
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|
$
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19,764,327
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|
|
$
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20,160,560
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$
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(396,233
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)
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(2
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)%
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|
Operating costs and expenses:
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|
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Cost of products sold:
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|
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|
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|
|
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Cost of products sold (exclusive of lower of cost or market
inventory valuation adjustment)
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|
17,228,385
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|
|
17,392,227
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(163,842
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)
|
|
(1
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)
|
|
Lower of cost or market inventory adjustment
|
|
397,478
|
|
|
—
|
|
|
|
397,478
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|
|
—
|
|
|
|
|
17,625,863
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|
|
17,392,227
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|
|
|
233,636
|
|
|
1
|
|
|
Operating expenses
|
|
1,144,940
|
|
|
1,090,850
|
|
|
|
54,090
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|
|
5
|
|
|
General and administrative expenses
|
|
114,609
|
|
|
127,963
|
|
|
|
(13,354
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)
|
|
(10
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)
|
|
Depreciation and amortization
|
|
363,381
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|
|
303,446
|
|
|
|
59,935
|
|
|
20
|
|
|
Total operating costs and expenses
|
|
19,248,793
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|
|
18,914,486
|
|
|
|
334,307
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|
|
2
|
|
|
Income from operations
|
|
515,534
|
|
|
1,246,074
|
|
|
|
(730,540
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)
|
|
(59
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)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss of equity method investments
|
|
(2,007
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)
|
|
(2,072
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)
|
|
|
65
|
|
|
(3
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)
|
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Interest income
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|
4,430
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|
|
5,556
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|
|
|
(1,126
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)
|
|
(20
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)
|
|
Interest expense
|
|
(43,646
|
)
|
|
(68,050
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)
|
|
|
24,404
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|
|
(36
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)
|
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Loss on early extinguishment of debt
|
|
(7,677
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)
|
|
(22,109
|
)
|
|
|
14,432
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|
|
(65
|
)
|
|
Gain on sale of assets
|
|
866
|
|
|
—
|
|
|
|
866
|
|
|
—
|
|
|
|
|
(48,034
|
)
|
|
(86,675
|
)
|
|
|
38,641
|
|
|
(45
|
)
|
|
Income before income taxes
|
|
467,500
|
|
|
1,159,399
|
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|
|
(691,899
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)
|
|
(60
|
)
|
|
Income tax provision
|
|
141,172
|
|
|
391,576
|
|
|
|
(250,404
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)
|
|
(64
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)
|
|
Net income
|
|
326,328
|
|
|
767,823
|
|
|
|
(441,495
|
)
|
|
(57
|
)
|
|
Less net income attributable to noncontrolling interest
|
|
45,036
|
|
|
31,981
|
|
|
|
13,055
|
|
|
41
|
|
|
Net income attributable to HollyFrontier stockholders
|
|
$
|
281,292
|
|
|
$
|
735,842
|
|
|
|
$
|
(454,550
|
)
|
|
(62
|
)%
|
|
Earnings per share attributable to HollyFrontier stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.42
|
|
|
$
|
3.66
|
|
|
|
$
|
(2.24
|
)
|
|
(61
|
)%
|
|
Diluted
|
|
$
|
1.42
|
|
|
$
|
3.64
|
|
|
|
$
|
(2.22
|
)
|
|
(61
|
)%
|
|
Cash dividends declared per common share
|
|
$
|
3.26
|
|
|
$
|
3.20
|
|
|
|
$
|
0.06
|
|
|
2
|
%
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
197,243
|
|
|
200,419
|
|
|
|
(3,176
|
)
|
|
(2
|
)%
|
|
Diluted
|
|
197,428
|
|
|
201,234
|
|
|
|
(3,806
|
)
|
|
(2
|
)%
|
|
EBITDA
|
|
$
|
832,738
|
|
|
$
|
1,515,467
|
|
|
|
$
|
(682,729
|
)
|
|
(45
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
|
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|
|
|
|
|
|
|
|
December 31,
|
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|
|
2014
|
|
|
2013
|
|
|
|
(In thousands)
|
|
Cash, cash equivalents and investments in marketable securities
|
|
$
|
1,042,095
|
|
|
$
|
1,665,263
|
|
Working capital
|
|
$
|
1,531,595
|
|
|
$
|
2,221,954
|
|
Total assets
|
|
$
|
9,230,640
|
|
|
$
|
10,056,739
|
|
Long-term debt
|
|
$
|
1,054,890
|
|
|
$
|
997,519
|
|
Total equity
|
|
$
|
6,100,719
|
|
|
$
|
6,609,398
|
|
|
|
|
|
|
|
|
|
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 asphalt and asphalt products that are marketed 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.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidations
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
|
|
|
and
|
|
|
Consolidated
|
|
|
|
Refining
|
|
|
HEP
|
|
|
Other
|
|
|
Eliminations
|
|
|
Total
|
|
|
|
(In thousands)
|
|
Three Months Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
$
|
4,266,178
|
|
|
|
$
|
88,449
|
|
|
|
$
|
301
|
|
|
|
$
|
(71,809
|
)
|
|
|
$
|
4,283,119
|
|
|
Depreciation and amortization
|
|
$
|
83,381
|
|
|
|
$
|
14,809
|
|
|
|
$
|
2,515
|
|
|
|
$
|
(207
|
)
|
|
|
$
|
100,498
|
|
|
Income (loss) from operations
|
|
$
|
(344,449
|
)
|
|
|
$
|
38,783
|
|
|
|
$
|
(48,204
|
)
|
|
|
$
|
(548
|
)
|
|
|
$
|
(354,418
|
)
|
|
Capital expenditures
|
|
$
|
175,080
|
|
|
|
$
|
18,162
|
|
|
|
$
|
2,446
|
|
|
|
$
|
—
|
|
|
|
$
|
195,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
$
|
4,811,182
|
|
|
|
$
|
77,823
|
|
|
|
$
|
260
|
|
|
|
$
|
(62,464
|
)
|
|
|
$
|
4,826,801
|
|
|
Depreciation and amortization
|
|
$
|
61,016
|
|
|
|
$
|
16,291
|
|
|
|
$
|
1,965
|
|
|
|
$
|
(207
|
)
|
|
|
$
|
79,065
|
|
|
Income (loss) from operations
|
|
$
|
92,672
|
|
|
|
$
|
31,175
|
|
|
|
$
|
(36,183
|
)
|
|
|
$
|
(541
|
)
|
|
|
$
|
87,123
|
|
|
Capital expenditures
|
|
$
|
112,697
|
|
|
|
$
|
20,757
|
|
|
|
$
|
5,484
|
|
|
|
$
|
—
|
|
|
|
$
|
138,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
$
|
19,706,225
|
|
|
|
$
|
332,626
|
|
|
|
$
|
2,103
|
|
|
|
$
|
(276,627
|
)
|
|
|
$
|
19,764,327
|
|
|
Depreciation and amortization
|
|
$
|
293,871
|
|
|
|
$
|
60,548
|
|
|
|
$
|
9,790
|
|
|
|
$
|
(828
|
)
|
|
|
$
|
363,381
|
|
|
Income (loss) from operations
|
|
$
|
491,106
|
|
|
|
$
|
156,453
|
|
|
|
$
|
(129,874
|
)
|
|
|
$
|
(2,151
|
)
|
|
|
$
|
515,534
|
|
|
Capital expenditures
|
|
$
|
465,472
|
|
|
|
$
|
79,819
|
|
|
|
$
|
19,530
|
|
|
|
$
|
—
|
|
|
|
$
|
564,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
$
|
20,105,443
|
|
|
|
$
|
307,053
|
|
|
|
$
|
1,314
|
|
|
|
$
|
(253,250
|
)
|
|
|
$
|
20,160,560
|
|
|
Depreciation and amortization
|
|
$
|
233,182
|
|
|
|
$
|
64,701
|
|
|
|
$
|
6,391
|
|
|
|
$
|
(828
|
)
|
|
|
$
|
303,446
|
|
|
Income (loss) from operations
|
|
$
|
1,237,687
|
|
|
|
$
|
133,522
|
|
|
|
$
|
(123,030
|
)
|
|
|
$
|
(2,105
|
)
|
|
|
$
|
1,246,074
|
|
|
Capital expenditures
|
|
$
|
344,113
|
|
|
|
$
|
51,856
|
|
|
|
$
|
29,158
|
|
|
|
$
|
—
|
|
|
|
$
|
425,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and investments in marketable securities
|
|
$
|
88
|
|
|
|
$
|
2,830
|
|
|
|
$
|
1,039,177
|
|
|
|
$
|
—
|
|
|
|
$
|
1,042,095
|
|
|
Total assets
|
|
$
|
6,965,245
|
|
|
|
$
|
1,434,572
|
|
|
|
$
|
1,150,865
|
|
|
|
$
|
(320,042
|
)
|
|
|
$
|
9,230,640
|
|
|
Long-term debt
|
|
$
|
—
|
|
|
|
$
|
867,579
|
|
|
|
$
|
187,311
|
|
|
|
$
|
—
|
|
|
|
$
|
1,054,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and investments in marketable securities
|
|
$
|
1,860
|
|
|
|
$
|
6,352
|
|
|
|
$
|
1,657,051
|
|
|
|
$
|
—
|
|
|
|
$
|
1,665,263
|
|
|
Total assets
|
|
$
|
7,094,558
|
|
|
|
$
|
1,413,907
|
|
|
|
$
|
1,881,121
|
|
|
|
$
|
(332,847
|
)
|
|
|
$
|
10,056,739
|
|
|
Long-term debt
|
|
$
|
—
|
|
|
|
$
|
807,630
|
|
|
|
$
|
189,889
|
|
|
|
$
|
—
|
|
|
|
$
|
997,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 non-cash effects of lower
of cost or market inventory valuation adjustments and 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
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Mid-Continent Region (El Dorado and Tulsa Refineries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
200,060
|
|
|
245,140
|
|
|
|
243,240
|
|
|
234,930
|
|
|
Refinery throughput (BPD) (2) |
|
211,460
|
|
|
270,060
|
|
|
|
255,020
|
|
|
257,030
|
|
|
Refinery production (BPD) (3) |
|
202,310
|
|
|
267,490
|
|
|
|
249,350
|
|
|
251,470
|
|
|
Sales of produced refined products (BPD)
|
|
213,200
|
|
|
270,580
|
|
|
|
245,600
|
|
|
247,030
|
|
|
Sales of refined products (BPD) (4) |
|
270,790
|
|
|
288,700
|
|
|
|
273,630
|
|
|
269,790
|
|
|
Refinery utilization (5) |
|
76.9
|
%
|
|
94.3
|
%
|
|
|
93.6
|
%
|
|
90.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
95.88
|
|
|
$
|
108.62
|
|
|
|
$
|
110.79
|
|
|
$
|
115.63
|
|
|
Cost of products (7) |
|
87.83
|
|
|
97.95
|
|
|
|
98.39
|
|
|
99.35
|
|
|
Refinery gross margin (8) |
|
8.05
|
|
|
10.67
|
|
|
|
12.40
|
|
|
16.28
|
|
|
Refinery operating expenses (9) |
|
6.99
|
|
|
5.27
|
|
|
|
5.73
|
|
|
5.50
|
|
|
Net operating margin (8) |
|
$
|
1.06
|
|
|
$
|
5.40
|
|
|
|
$
|
6.67
|
|
|
$
|
10.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10) |
|
$
|
7.05
|
|
|
$
|
5.28
|
|
|
|
$
|
5.52
|
|
|
$
|
5.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
63
|
%
|
|
63
|
%
|
|
|
71
|
%
|
|
69
|
%
|
|
Sour crude oil
|
|
27
|
%
|
|
10
|
%
|
|
|
11
|
%
|
|
6
|
%
|
|
Heavy sour crude oil
|
|
5
|
%
|
|
18
|
%
|
|
|
14
|
%
|
|
16
|
%
|
|
Other feedstocks and blends
|
|
5
|
%
|
|
9
|
%
|
|
|
4
|
%
|
|
9
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
48
|
%
|
|
50
|
%
|
|
|
47
|
%
|
|
47
|
%
|
|
Diesel fuels
|
|
33
|
%
|
|
29
|
%
|
|
|
33
|
%
|
|
31
|
%
|
|
Jet fuels
|
|
7
|
%
|
|
8
|
%
|
|
|
7
|
%
|
|
8
|
%
|
|
Fuel oil
|
|
1
|
%
|
|
1
|
%
|
|
|
1
|
%
|
|
1
|
%
|
|
Asphalt
|
|
3
|
%
|
|
2
|
%
|
|
|
3
|
%
|
|
3
|
%
|
|
Lubricants
|
|
4
|
%
|
|
4
|
%
|
|
|
4
|
%
|
|
4
|
%
|
|
LPG and other
|
|
4
|
%
|
|
6
|
%
|
|
|
5
|
%
|
|
6
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Southwest Region (Navajo Refinery)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
95,430
|
|
|
74,370
|
|
|
|
98,120
|
|
|
87,910
|
|
|
Refinery throughput (BPD) (2) |
|
108,990
|
|
|
83,360
|
|
|
|
110,250
|
|
|
97,310
|
|
|
Refinery production (BPD) (3) |
|
105,260
|
|
|
81,380
|
|
|
|
107,520
|
|
|
94,490
|
|
|
Sales of produced refined products (BPD)
|
|
105,450
|
|
|
88,570
|
|
|
|
106,870
|
|
|
94,830
|
|
|
Sales of refined products (BPD) (4) |
|
116,540
|
|
|
94,930
|
|
|
|
115,620
|
|
|
104,320
|
|
|
Refinery utilization (5) |
|
95.4
|
%
|
|
74.4
|
%
|
|
|
98.1
|
%
|
|
87.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
87.97
|
|
|
$
|
113.14
|
|
|
|
$
|
110.54
|
|
|
$
|
117.79
|
|
|
Cost of products (7) |
|
72.47
|
|
|
103.62
|
|
|
|
94.58
|
|
|
103.88
|
|
|
Refinery gross margin (8) |
|
15.50
|
|
|
9.52
|
|
|
|
15.96
|
|
|
13.91
|
|
|
Refinery operating expenses (9) |
|
5.73
|
|
|
6.70
|
|
|
|
5.43
|
|
|
6.04
|
|
|
Net operating margin (8) |
|
$
|
9.77
|
|
|
$
|
2.82
|
|
|
|
$
|
10.53
|
|
|
$
|
7.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10) |
|
$
|
5.54
|
|
|
$
|
7.12
|
|
|
|
$
|
5.26
|
|
|
$
|
5.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
24
|
%
|
|
6
|
%
|
|
|
13
|
%
|
|
8
|
%
|
|
Sour crude oil
|
|
63
|
%
|
|
74
|
%
|
|
|
74
|
%
|
|
72
|
%
|
|
Heavy sour crude oil
|
|
1
|
%
|
|
9
|
%
|
|
|
2
|
%
|
|
11
|
%
|
|
Other feedstocks and blends
|
|
12
|
%
|
|
11
|
%
|
|
|
11
|
%
|
|
9
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
58
|
%
|
|
53
|
%
|
|
|
54
|
%
|
|
51
|
%
|
|
Diesel fuels
|
|
34
|
%
|
|
38
|
%
|
|
|
38
|
%
|
|
39
|
%
|
|
Fuel oil
|
|
3
|
%
|
|
5
|
%
|
|
|
4
|
%
|
|
6
|
%
|
|
Asphalt
|
|
1
|
%
|
|
1
|
%
|
|
|
1
|
%
|
|
1
|
%
|
|
LPG and other
|
|
4
|
%
|
|
3
|
%
|
|
|
3
|
%
|
|
3
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
65,020
|
|
|
51,380
|
|
|
|
64,820
|
|
|
64,680
|
|
|
Refinery throughput (BPD) (2) |
|
70,190
|
|
|
57,490
|
|
|
|
71,130
|
|
|
70,440
|
|
|
Refinery production (BPD) (3) |
|
66,400
|
|
|
54,550
|
|
|
|
68,140
|
|
|
67,860
|
|
|
Sales of produced refined products (BPD)
|
|
67,740
|
|
|
57,650
|
|
|
|
68,520
|
|
|
68,870
|
|
|
Sales of refined products (BPD) (4) |
|
73,420
|
|
|
62,550
|
|
|
|
72,390
|
|
|
72,280
|
|
|
Refinery utilization (5) |
|
78.3
|
%
|
|
61.9
|
%
|
|
|
78.1
|
%
|
|
77.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
87.19
|
|
|
$
|
105.71
|
|
|
|
$
|
107.51
|
|
|
$
|
112.49
|
|
|
Cost of products (7) |
|
75.26
|
|
|
91.12
|
|
|
|
90.95
|
|
|
94.63
|
|
|
Refinery gross margin (8) |
|
11.93
|
|
|
14.59
|
|
|
|
16.56
|
|
|
17.86
|
|
|
Refinery operating expenses (9) |
|
10.66
|
|
|
11.29
|
|
|
|
10.20
|
|
|
8.65
|
|
|
Net operating margin (8) |
|
$
|
1.27
|
|
|
$
|
3.30
|
|
|
|
$
|
6.36
|
|
|
$
|
9.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10) |
|
$
|
10.29
|
|
|
$
|
11.32
|
|
|
|
$
|
9.83
|
|
|
$
|
8.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
46
|
%
|
|
41
|
%
|
|
|
44
|
%
|
|
43
|
%
|
|
Sour crude oil
|
|
1
|
%
|
|
2
|
%
|
|
|
2
|
%
|
|
1
|
%
|
|
Heavy sour crude oil
|
|
33
|
%
|
|
29
|
%
|
|
|
30
|
%
|
|
34
|
%
|
|
Black wax crude oil
|
|
13
|
%
|
|
18
|
%
|
|
|
15
|
%
|
|
14
|
%
|
|
Other feedstocks and blends
|
|
7
|
%
|
|
10
|
%
|
|
|
9
|
%
|
|
8
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
61
|
%
|
|
62
|
%
|
|
|
56
|
%
|
|
56
|
%
|
|
Diesel fuels
|
|
33
|
%
|
|
26
|
%
|
|
|
33
|
%
|
|
30
|
%
|
|
Jet fuels
|
|
—
|
%
|
|
1
|
%
|
|
|
—
|
%
|
|
1
|
%
|
|
Fuel oil
|
|
1
|
%
|
|
1
|
%
|
|
|
1
|
%
|
|
1
|
%
|
|
Asphalt
|
|
2
|
%
|
|
4
|
%
|
|
|
5
|
%
|
|
5
|
%
|
|
LPG and other
|
|
3
|
%
|
|
6
|
%
|
|
|
5
|
%
|
|
7
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1) |
|
360,510
|
|
|
370,890
|
|
|
|
406,180
|
|
|
387,520
|
|
|
Refinery throughput (BPD) (2) |
|
390,640
|
|
|
410,910
|
|
|
|
436,400
|
|
|
424,780
|
|
|
Refinery production (BPD) (3) |
|
373,970
|
|
|
403,420
|
|
|
|
425,010
|
|
|
413,820
|
|
|
Sales of produced refined products (BPD)
|
|
386,390
|
|
|
416,800
|
|
|
|
420,990
|
|
|
410,730
|
|
|
Sales of refined products (BPD) (4) |
|
460,750
|
|
|
446,180
|
|
|
|
461,640
|
|
|
446,390
|
|
|
Refinery utilization (5) |
|
81.4
|
%
|
|
83.7
|
%
|
|
|
91.7
|
%
|
|
87.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
92.20
|
|
|
$
|
109.17
|
|
|
|
$
|
110.19
|
|
|
$
|
115.60
|
|
|
Cost of products (7) |
|
81.44
|
|
|
98.21
|
|
|
|
96.21
|
|
|
99.61
|
|
|
Refinery gross margin (8) |
|
10.76
|
|
|
10.96
|
|
|
|
13.98
|
|
|
15.99
|
|
|
Refinery operating expenses (9) |
|
7.29
|
|
|
6.41
|
|
|
|
6.38
|
|
|
6.15
|
|
|
Net operating margin (8) |
|
$
|
3.47
|
|
|
$
|
4.55
|
|
|
|
$
|
7.60
|
|
|
$
|
9.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10) |
|
$
|
7.21
|
|
|
$
|
6.50
|
|
|
|
$
|
6.16
|
|
|
$
|
5.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
49
|
%
|
|
48
|
%
|
|
|
53
|
%
|
|
52
|
%
|
|
Sour crude oil
|
|
32
|
%
|
|
22
|
%
|
|
|
23
|
%
|
|
21
|
%
|
|
Heavy sour crude oil
|
|
9
|
%
|
|
18
|
%
|
|
|
15
|
%
|
|
17
|
%
|
|
Black wax crude oil
|
|
2
|
%
|
|
2
|
%
|
|
|
2
|
%
|
|
2
|
%
|
|
Other feedstocks and blends
|
|
8
|
%
|
|
10
|
%
|
|
|
7
|
%
|
|
8
|
%
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
53
|
%
|
|
52
|
%
|
|
|
50
|
%
|
|
50
|
%
|
|
Diesel fuels
|
|
33
|
%
|
|
30
|
%
|
|
|
34
|
%
|
|
33
|
%
|
|
Jet fuels
|
|
4
|
%
|
|
6
|
%
|
|
|
4
|
%
|
|
5
|
%
|
|
Fuel oil
|
|
2
|
%
|
|
2
|
%
|
|
|
2
|
%
|
|
2
|
%
|
|
Asphalt
|
|
2
|
%
|
|
2
|
%
|
|
|
3
|
%
|
|
3
|
%
|
|
Lubricants
|
|
2
|
%
|
|
3
|
%
|
|
|
2
|
%
|
|
2
|
%
|
|
LPG and other
|
|
4
|
%
|
|
5
|
%
|
|
|
5
|
%
|
|
5
|
%
|
|
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). Our
consolidated crude capacity is 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)
|
|
Excludes lower of cost or market inventory valuation adjustment
charge of $397.5 million for the three months and year ended
December 31, 2014.
|
|
(9)
|
|
Represents operating expenses of our refineries, exclusive of
depreciation and amortization and pension settlement costs.
|
|
(10)
|
|
Represents refinery operating expenses, exclusive of depreciation
and amortization and pension settlement costs, divided by refinery
throughput.
|
|
|
|
|
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
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HollyFrontier stockholders
|
|
$
|
(222,204
|
)
|
|
$
|
62,902
|
|
|
|
$
|
281,292
|
|
|
$
|
735,842
|
|
|
Add (subtract) income tax provision (benefit)
|
|
(150,990
|
)
|
|
4,911
|
|
|
|
141,172
|
|
|
391,576
|
|
|
Add interest expense (1) |
|
10,125
|
|
|
12,982
|
|
|
|
51,323
|
|
|
90,159
|
|
|
Subtract interest income
|
|
(837
|
)
|
|
(1,765
|
)
|
|
|
(4,430
|
)
|
|
(5,556
|
)
|
|
Add depreciation and amortization
|
|
100,498
|
|
|
79,065
|
|
|
|
363,381
|
|
|
303,446
|
|
|
EBITDA
|
|
$
|
(263,408
|
)
|
|
$
|
158,095
|
|
|
|
$
|
832,738
|
|
|
$
|
1,515,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes loss on early extinguishment of debt of $7.7 million and
$22.1 million for the years ended December 31, 2014 and 2013,
respectively.
|
|
|
|
|
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 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 non-cash effects of lower of cost
or market inventory valuation adjustments and 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 sold (exclusive of lower of cost or
market inventory valuation adjustment) 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.
Reconciliation of produced refined product sales
to total sales and other revenues
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price per produced barrel sold
|
|
$
|
92.20
|
|
|
$
|
109.17
|
|
|
|
$
|
110.19
|
|
|
$
|
115.60
|
|
|
Times sales of produced refined products (BPD)
|
|
386,390
|
|
|
416,800
|
|
|
|
420,990
|
|
|
410,730
|
|
|
Times number of days in period
|
|
92
|
|
|
92
|
|
|
|
365
|
|
|
365
|
|
|
Produced refined product sales
|
|
$
|
3,277,515
|
|
|
$
|
4,186,189
|
|
|
|
$
|
16,931,944
|
|
|
$
|
17,330,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total produced refined product sales
|
|
$
|
3,277,515
|
|
|
$
|
4,186,189
|
|
|
|
$
|
16,931,944
|
|
|
$
|
17,330,342
|
|
|
Add refined product sales from purchased products and rounding (1) |
|
634,860
|
|
|
301,428
|
|
|
|
1,566,925
|
|
|
1,581,395
|
|
|
Total refined product sales
|
|
3,912,375
|
|
|
4,487,617
|
|
|
|
18,498,869
|
|
|
18,911,737
|
|
|
Add direct sales of excess crude oil (2) |
|
318,820
|
|
|
294,068
|
|
|
|
1,060,354
|
|
|
1,052,915
|
|
|
Add other refining segment revenue (3) |
|
34,983
|
|
|
29,497
|
|
|
|
147,002
|
|
|
140,791
|
|
|
Total refining segment revenue
|
|
4,266,178
|
|
|
4,811,182
|
|
|
|
19,706,225
|
|
|
20,105,443
|
|
|
Add HEP segment sales and other revenues
|
|
88,449
|
|
|
77,823
|
|
|
|
332,626
|
|
|
307,053
|
|
|
Add corporate and other revenues
|
|
301
|
|
|
260
|
|
|
|
2,103
|
|
|
1,314
|
|
|
Subtract consolidations and eliminations
|
|
(71,809
|
)
|
|
(62,464
|
)
|
|
|
(276,627
|
)
|
|
(253,250
|
)
|
|
Sales and other revenues
|
|
$
|
4,283,119
|
|
|
$
|
4,826,801
|
|
|
|
$
|
19,764,327
|
|
|
$
|
20,160,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average cost of products per
produced barrel sold to cost of products sold (exclusive of lower of
cost or market inventory valuation adjustment)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost of products per produced barrel sold
|
|
$
|
81.44
|
|
|
$
|
98.21
|
|
|
|
$
|
96.21
|
|
|
$
|
99.61
|
|
|
Times sales of produced refined products (BPD)
|
|
386,390
|
|
|
416,800
|
|
|
|
420,990
|
|
|
410,730
|
|
|
Times number of days in period
|
|
92
|
|
|
92
|
|
|
|
365
|
|
|
365
|
|
|
Cost of products for produced products sold
|
|
$
|
2,895,019
|
|
|
$
|
3,765,921
|
|
|
|
$
|
14,783,758
|
|
|
$
|
14,933,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of products for produced products sold
|
|
$
|
2,895,019
|
|
|
$
|
3,765,921
|
|
|
|
$
|
14,783,758
|
|
|
$
|
14,933,178
|
|
|
Add refined product costs from purchased products sold and
rounding (1)
|
|
636,647
|
|
|
301,590
|
|
|
|
1,572,944
|
|
|
1,553,476
|
|
|
Total cost of refined products sold
|
|
3,531,666
|
|
|
4,067,511
|
|
|
|
16,356,702
|
|
|
16,486,654
|
|
|
Add crude oil cost of direct sales of excess crude oil (2) |
|
304,639
|
|
|
303,418
|
|
|
|
1,030,235
|
|
|
1,048,224
|
|
|
Add other refining segment cost of products sold (4) |
|
23,399
|
|
|
23,307
|
|
|
|
113,664
|
|
|
106,241
|
|
|
Total refining segment cost of products sold
|
|
3,859,704
|
|
|
4,394,236
|
|
|
|
17,500,601
|
|
|
17,641,119
|
|
|
Subtract consolidations and eliminations
|
|
(70,678
|
)
|
|
(61,342
|
)
|
|
|
(272,216
|
)
|
|
(248,892
|
)
|
|
Costs of products sold (exclusive of lower of cost or market
inventory valuation adjustment)
|
|
$
|
3,789,026
|
|
|
$
|
4,332,894
|
|
|
|
$
|
17,228,385
|
|
|
$
|
17,392,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average refinery operating
expenses per produced barrel sold to total operating expenses
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average refinery operating expenses per produced barrel sold
|
|
$
|
7.29
|
|
|
$
|
6.41
|
|
|
|
$
|
6.38
|
|
|
$
|
6.15
|
|
|
Times sales of produced refined products (BPD)
|
|
386,390
|
|
|
416,800
|
|
|
|
420,990
|
|
|
410,730
|
|
|
Times number of days in period
|
|
92
|
|
|
92
|
|
|
|
365
|
|
|
365
|
|
|
Refinery operating expenses for produced products sold
|
|
$
|
259,144
|
|
|
$
|
245,795
|
|
|
|
$
|
980,359
|
|
|
$
|
921,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total refinery operating expenses for produced products sold
|
|
$
|
259,144
|
|
|
$
|
245,795
|
|
|
|
$
|
980,359
|
|
|
$
|
921,986
|
|
|
Add refining segment pension settlement costs
|
|
—
|
|
|
6,867
|
|
|
|
—
|
|
|
31,657
|
|
|
Add other refining segment operating expenses and rounding (5) |
|
10,920
|
|
|
10,596
|
|
|
|
42,810
|
|
|
39,812
|
|
|
Total refining segment operating expenses
|
|
270,064
|
|
|
263,258
|
|
|
|
1,023,169
|
|
|
993,455
|
|
|
Add HEP segment operating expenses
|
|
31,966
|
|
|
27,355
|
|
|
|
104,801
|
|
|
97,081
|
|
|
Add corporate and other costs
|
|
16,709
|
|
|
1,652
|
|
|
|
18,402
|
|
|
1,739
|
|
|
Subtract consolidations and eliminations
|
|
(376
|
)
|
|
(374
|
)
|
|
|
(1,432
|
)
|
|
(1,425
|
)
|
|
Operating expenses
|
|
$
|
318,363
|
|
|
$
|
291,891
|
|
|
|
$
|
1,144,940
|
|
|
$
|
1,090,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating margin per barrel
to refinery gross margin per barrel to total sales and other revenues
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating margin per barrel
|
|
$
|
3.47
|
|
|
$
|
4.55
|
|
|
|
$
|
7.60
|
|
|
$
|
9.84
|
|
|
Add average refinery operating expenses per produced barrel
|
|
7.29
|
|
|
6.41
|
|
|
|
6.38
|
|
|
6.15
|
|
|
Refinery gross margin per barrel
|
|
10.76
|
|
|
10.96
|
|
|
|
13.98
|
|
|
15.99
|
|
|
Add average cost of products per produced barrel sold
|
|
81.44
|
|
|
98.21
|
|
|
|
96.21
|
|
|
99.61
|
|
|
Average sales price per produced barrel sold
|
|
$
|
92.20
|
|
|
$
|
109.17
|
|
|
|
$
|
110.19
|
|
|
$
|
115.60
|
|
|
Times sales of produced refined products (BPD)
|
|
386,390
|
|
|
416,800
|
|
|
|
420,990
|
|
|
410,730
|
|
|
Times number of days in period
|
|
92
|
|
|
92
|
|
|
|
365
|
|
|
365
|
|
|
Produced refined product sales
|
|
$
|
3,277,515
|
|
|
$
|
4,186,189
|
|
|
|
$
|
16,931,944
|
|
|
$
|
17,330,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total produced refined product sales
|
|
$
|
3,277,515
|
|
|
$
|
4,186,189
|
|
|
|
$
|
16,931,944
|
|
|
$
|
17,330,342
|
|
|
Add refined product sales from purchased products and rounding (1) |
|
634,860
|
|
|
301,428
|
|
|
|
1,566,925
|
|
|
1,581,395
|
|
|
Total refined product sales
|
|
3,912,375
|
|
|
4,487,617
|
|
|
|
18,498,869
|
|
|
18,911,737
|
|
|
Add direct sales of excess crude oil (2) |
|
318,820
|
|
|
294,068
|
|
|
|
1,060,354
|
|
|
1,052,915
|
|
|
Add other refining segment revenue (3) |
|
34,983
|
|
|
29,497
|
|
|
|
147,002
|
|
|
140,791
|
|
|
Total refining segment revenue
|
|
4,266,178
|
|
|
4,811,182
|
|
|
|
19,706,225
|
|
|
20,105,443
|
|
|
Add HEP segment sales and other revenues
|
|
88,449
|
|
|
77,823
|
|
|
|
332,626
|
|
|
307,053
|
|
|
Add corporate and other revenues
|
|
301
|
|
|
260
|
|
|
|
2,103
|
|
|
1,314
|
|
|
Subtract consolidations and eliminations
|
|
(71,809
|
)
|
|
(62,464
|
)
|
|
|
(276,627
|
)
|
|
(253,250
|
)
|
|
Sales and other revenues
|
|
$
|
4,283,119
|
|
|
$
|
4,826,801
|
|
|
|
$
|
19,764,327
|
|
|
$
|
20,160,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
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, Executive Vice President
and Chief Financial Officer
or
Julia Heidenreich, Vice
President, Investor Relations
214-954-6510
Source: HollyFrontier Corporation
News Provided by Acquire Media