DALLAS, Nov. 4, 2010 /PRNewswire-FirstCall/ -- Holly
Corporation (NYSE: HOC) ("Holly" or the "Company") today reported
third quarter 2010 financial results. For the quarter, net
income attributable to Holly stockholders was $51.2 million ($0.96 per basic and diluted share) compared to
$23.5 million ($0.47 per basic and diluted share) for the third
quarter of 2009. For the nine months ended September 30, 2010, net income attributable to
Holly stockholders was $89.2 million
($1.68 per basic and $1.67 per diluted share) compared to $60 million ($1.20
per basic and $1.19 per diluted
share) for the same period of 2009.
Holly also announced that its Board of Directors has declared a
regular quarterly cash dividend in the amount of $0.15 per share, payable January 4, 2011 to holders of record on
December 20, 2010.
For the quarter, net income attributable to our stockholders
increased by $27.7 million compared
to the same period of 2009. This increase was due principally
to higher refinery gross margins during the current year third
quarter combined with increased sales volumes of produced refined
products. Overall refinery gross margins were $10.41 per produced barrel, a 26% increase
compared to $8.27 for the third
quarter of 2009. For the quarter, our overall refinery
production levels averaged 230,630 barrels per day ("BPD"), an
increase of 24% over the same period of 2009 due principally to
increased production from our Tulsa refinery complex since we acquired the
east facility in December 2009.
For the nine months ended September 30,
2010, net income attributable to our stockholders increased
by $29.2 million compared to the same
period of 2009. This increase was due principally to
increased sales volumes of produced refined products combined with
a slight increase in overall current year-to-date refinery gross
margins. Overall refinery gross margins were $9.10 per produced barrel, a 2% increase compared
to $8.90 for the first nine months of
2009. For the current year-to-date period, our overall
refinery production levels averaged 227,060, an increase of 64%
over the same period of 2009 due to production from our
Tulsa refinery facilities and
production increases at our Navajo
and Woods Cross refineries.
"We are pleased with our third quarter results," said
Matthew Clifton, Chairman of the
Board and Chief Executive Officer of Holly. "Continued strong
diesel cracks at each of our refineries combined with robust
gasoline cracks at our Woods Cross
refinery and attractive lube margins at our Tulsa refinery helped fuel significant
improved year over year third quarter performance.
Unscheduled downtime at certain operating units at our
Navajo refinery during the quarter
reduced our expected run rate and, accordingly, somewhat limited
our capture of solid gross margins at that facility.
"Progress continues on our Tulsa integration and diesel desulfurization
expansion efforts, with expected completion by the end of the first
quarter 2011. The Tulsa projects will reduce emissions and
should improve the profit producing potential of what has been a
strong profit contributor over the last two quarters.
"Our affiliated logistic MLP, Holly Energy Partners, had a
strong third quarter achieving record quarterly distributable cash
flow and EBITDA levels. Our combined limited partner and
general partner distributions during the third quarter were
$9.1 million.
"At the end of the third quarter our cash and marketable
securities stood at $272 million.
Excluding the Holly Energy Partners debt that is non-recourse to
Holly, our cash adjusted debt to total capitalization ratio was
down to 10%. Accordingly, our balance sheet ranks as one of
the strongest among our independent refining peers.
"In October the product margin environment for our refineries
decreased slightly from the average during the third quarter but is
strong for this time of year. Looking forward we feel good
about the quality of our assets, our dedicated personnel, the
markets we serve and our improving strong financial position,"
Clifton said.
Sales and other revenues for the third quarter of 2010 were
$2,091 million, a 41% increase
compared to the three months ended September
30, 2009. This increase was due to the effects of a
14% year-over-year increase in third quarter refined product sales
prices combined with a 28% increase in volumes of produced refined
products sold. The volume increase was primarily due to
volumes attributable to our Tulsa
refinery operations. Cost of products sold was $1,807 million, a 40% increase compared to the
three months ended September 30, 2009
due mainly to higher crude oil acquisition costs and increased
volumes of produced refined products sold.
Sales and other revenues for the nine months ended September 30, 2010 were $6,111.1 million, a 93% increase compared to the
nine months ended September 30, 2009.
This increase was due to the effects of a 28% year-over-year
increase in year-to-date refined product sales prices combined with
a 65% increase in volumes of produced refined products sold.
The volume increase was attributable to our Tulsa refinery operations and year-to-date
production increases at our Navajo
and Woods Cross refineries.
Cost of products sold was $5,379.1
million, a 100% increase compared to the nine months ended
September 30, 2009 due mainly to
higher crude oil acquisition costs and increased volumes of
produced refined products sold.
Operating costs and expenses for the three and the nine months
ended September 30, 2010 increased
mainly due to the inclusion of costs attributable to the operations
of our Tulsa refinery facilities.
Interest expense for the three and the nine months ended
September 30, 2010 increased by
$5 million and $30.3 million, respectively, primarily due to
interest incurred on the $300 million
Holly senior notes and the $150
million 8.25% senior notes issued by HEP in March 2010.
The Company has scheduled a webcast conference call for today,
November 4, 2010 at 4:00 PM Eastern Time to discuss financial
results. This webcast may be accessed at:
http://www.videonewswire.com/event.asp?id=73298.
An audio archive of this webcast will be available using the
above noted link through November 18,
2010.
Holly 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 specialty lubricant
products. Holly operates through its subsidiaries a 100,000
BPSD refinery located in Artesia, New
Mexico, a 31,000 BPSD refinery in Woods Cross, Utah and a 125,000 BPSD refinery
located in Tulsa, Oklahoma.
Also, a subsidiary of Holly owns a 34% interest (including
the 2% general partner interest) in Holly Energy Partners, L.P.,
which through subsidiaries owns or leases approximately 2,500 miles
of petroleum product and crude oil pipelines in Texas, New
Mexico, Utah and
Oklahoma and tankage and refined
product terminals in several Southwest and Rocky Mountain
states.
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
Financial Data (all information
in this release is unaudited)
|
|
|
|
|
Three Months
Ended
September
30,
|
Change from
2009
|
|
|
2010
|
2009
|
Change
|
Percent
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 2,090,988
|
$ 1,488,491
|
$ 602,497
|
40.5%
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
Cost of products sold (exclusive
of depreciation and amortization)
|
1,807,044
|
1,295,438
|
511,606
|
39.5
|
|
|
Operating expenses (exclusive of
depreciation and amortization)
|
130,263
|
96,717
|
33,546
|
34.7
|
|
|
General and administrative
expenses (exclusive of depreciation
and amortization)
|
16,925
|
16,728
|
197
|
1.2
|
|
|
Depreciation and
amortization
|
29,138
|
24,026
|
5,112
|
21.3
|
|
|
Total operating costs and
expenses
|
1,983,370
|
1,432,909
|
550,461
|
38.4
|
|
|
Income from operations
|
107,618
|
55,582
|
52,036
|
93.6
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Equity in earnings of SLC
Pipeline
|
570
|
646
|
(76)
|
(11.8)
|
|
|
Interest income
|
64
|
231
|
(167)
|
(72.3)
|
|
|
Interest expense
|
(17,368)
|
(12,407)
|
(4,961)
|
40.0
|
|
|
Acquisition costs - Tulsa
refinery
|
-
|
(378)
|
378
|
(100.0)
|
|
|
(16,734)
|
(11,908)
|
(4,826)
|
40.5
|
|
|
Income from continuing
operations before income taxes
|
90,884
|
43,674
|
47,210
|
108.1
|
|
|
Income tax provision
|
31,494
|
13,497
|
17,997
|
133.3
|
|
|
Income from continuing
operations
|
59,390
|
30,177
|
29,213
|
96.8
|
|
|
Income from discontinued
operations (1)
|
-
|
901
|
(901)
|
(100.0)
|
|
|
Net income
|
59,390
|
31,078
|
28,312
|
91.1
|
|
|
Less noncontrolling interest in
net income
|
8,213
|
7,594
|
619
|
8.2
|
|
|
|
|
|
|
|
|
Net income attributable to Holly
Corporation stockholders
|
$ 51,177
|
$ 23,484
|
$ 27,693
|
117.9%
|
|
|
|
|
|
|
|
|
Earnings attributable to Holly
Corporation stockholders:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 51,177
|
$ 23,213
|
$ 27,964
|
120.5%
|
|
|
Income from discontinued
operations
|
-
|
271
|
(271)
|
(100.0)
|
|
|
Net income
|
$ 51,177
|
$ 23,484
|
$ 27,693
|
117.9%
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Holly Corporation
stockholders – basic:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 0.96
|
$ 0.46
|
$ 0.50
|
108.7%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.01
|
(0.01)
|
(100.0)
|
|
|
Net income
|
$ 0.96
|
$ 0.47
|
$ 0.49
|
104.3%
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Holly Corporation
stockholders –
diluted:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 0.96
|
$ 0.46
|
$ 0.50
|
108.7%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.01
|
(0.01)
|
(100.0)
|
|
|
Net income
|
$ 0.96
|
$ 0.47
|
$ 0.49
|
104.3%
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share
|
$ 0.15
|
$ 0.15
|
$ -
|
-%
|
|
|
|
|
|
|
|
|
Average number of common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
53,210
|
50,244
|
2,966
|
5.9%
|
|
|
Diluted
|
53,567
|
50,327
|
3,240
|
6.4%
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations
|
$ 129,113
|
$ 72,912
|
$ 56,201
|
77.1%
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September
30,
|
Change from
2009
|
|
|
2010
|
2009
|
Change
|
Percent
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 6,111,138
|
$ 3,172,299
|
$ 2,938,839
|
92.6%
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
Cost of products sold (exclusive
of depreciation and amortization)
|
5,379,120
|
2,687,018
|
2,692,102
|
100.2
|
|
|
Operating expenses (exclusive of
depreciation and amortization)
|
378,638
|
241,518
|
137,120
|
56.8
|
|
|
General and administrative
expenses (exclusive of depreciation
and amortization)
|
50,623
|
43,572
|
7,051
|
16.2
|
|
|
Depreciation and
amortization
|
85,719
|
69,367
|
16,352
|
23.6
|
|
|
Total operating costs and
expenses
|
5,894,100
|
3,041,475
|
2,852,625
|
93.8
|
|
|
Income from operations
|
217,038
|
130,824
|
86,214
|
65.9
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Equity in earnings of SLC
Pipeline
|
1,595
|
1,309
|
286
|
21.8
|
|
|
Interest income
|
758
|
2,561
|
(1,803)
|
(70.4)
|
|
|
Interest expense
|
(56,113)
|
(25,849)
|
(30,264)
|
117.1
|
|
|
Acquisition costs - Tulsa
refinery
|
-
|
(1,988)
|
1,988
|
(100.0)
|
|
|
(53,760)
|
(23,967)
|
(29,793)
|
124.3
|
|
|
Income from continuing
operations before income taxes
|
163,278
|
106,857
|
56,421
|
52.8
|
|
|
Income tax provision
|
54,476
|
34,668
|
19,808
|
57.1
|
|
|
Income from continuing
operations
|
108,802
|
72,189
|
36,613
|
50.7
|
|
|
Income from discontinued
operations (1)
|
-
|
3,438
|
(3,438)
|
(100.0)
|
|
|
Net income
|
108,802
|
75,627
|
33,175
|
43.9
|
|
|
Less noncontrolling interest in
net income
|
19,557
|
15,593
|
3,964
|
25.4
|
|
|
|
|
|
|
|
|
Net income attributable to Holly
Corporation stockholders
|
$ 89,245
|
$ 60,034
|
$ 29,211
|
48.7%
|
|
|
|
|
|
|
|
|
Earnings attributable to Holly
Corporation stockholders:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 89,245
|
$ 59,014
|
$ 30,231
|
51.2%
|
|
|
Income from discontinued
operations
|
-
|
1,020
|
(1,020)
|
(100.0)
|
|
|
Net income
|
$ 89,245
|
$ 60,034
|
$ 29,211
|
48.7%
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Holly Corporation
stockholders – basic:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 1.68
|
$ 1.18
|
$ 0.50
|
42.4%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.02
|
(0.02)
|
(100.0)
|
|
|
Net income
|
$ 1.68
|
$ 1.20
|
$ 0.48
|
40.0%
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Holly Corporation
stockholders –
diluted:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 1.67
|
$ 1.17
|
$ 0.50
|
42.7%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.02
|
(0.02)
|
(100.0)
|
|
|
Net income
|
$ 1.67
|
$ 1.19
|
$ 0.48
|
40.3%
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share
|
$ 0.45
|
$ 0.45
|
$ -
|
-%
|
|
|
|
|
|
|
|
|
Average number of common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
53,172
|
50,153
|
3,019
|
6.0%
|
|
|
Diluted
|
53,531
|
50,272
|
3,259
|
6.5%
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations
|
$ 284,795
|
$ 186,337
|
$ 98,458
|
52.8%
|
|
|
|
|
(1) On December
1, 2009, HEP sold its interest in Rio Grande Pipeline
Company ("Rio Grande"). Results of operations of Rio Grande
are presented in discontinued operations.
|
|
|
|
|
|
|
|
Balance Sheet
Data
|
|
|
|
|
September
30,
|
December
31,
|
|
|
2010
|
2009
|
|
|
(In
thousands)
|
|
|
|
|
|
|
Cash, cash equivalents and
investments in marketable securities
|
$ 273,091
|
$ 125,819
|
|
|
Working capital (1)
|
$ 204,758
|
$ 257,899
|
|
|
Total assets
|
$ 3,397,379
|
$ 3,145,939
|
|
|
Long-term debt
|
$ 650,906
|
$ 707,458
|
|
|
Total equity
|
$ 1,265,477
|
$ 1,207,871
|
|
|
|
|
(1) HEP's credit
agreement expires in August 2011, therefore, working capital at
September 30, 2010 reflects $157 million of HEP credit agreement
borrowings that are classified as current liabilities. HEP
intends to renew its credit agreement prior to expiration and to
continue to finance outstanding borrowings, which HEP will then
reclassify as long-term debt, to the extent not designated for
working capital purposes. Excluding HEP's $157
million in credit agreement borrowings, working capital was $361.8
million at September 30, 2010.
|
|
|
|
|
Segment Information
Our operations are currently 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 Navajo, Woods
Cross and Tulsa refineries
and Holly Asphalt Company ("Holly Asphalt"). The Refining
segment involves the purchase and refining of crude oil and
wholesale and branded marketing of refined products, such as
gasoline, diesel fuel, jet fuel and specialty lubricant products.
The petroleum products produced by the Refining segment are
primarily marketed in the Southwest, Rocky Mountain and
Mid-Continent regions of the United
States and northern Mexico.
Additionally, the Refining segment includes specialty
lubricant products produced at our Tulsa refinery that are marketed throughout
North America and are distributed
in Central and South America.
Holly Asphalt manufactures and markets asphalt and asphalt
products in Arizona, New Mexico, Texas and northern Mexico.
The HEP segment involves all of the operations of HEP. HEP
owns and operates a system of petroleum product and crude gathering
pipelines in Texas, New Mexico, Oklahoma and Utah, distribution terminals in Texas, New
Mexico, Arizona,
Utah, Idaho, and Washington and refinery tankage in
New Mexico, Utah and Oklahoma. Revenues are generated by
charging tariffs for transporting petroleum products and crude oil
through its pipelines, by leasing certain pipeline capacity to Alon
USA, Inc., by charging fees for terminalling refined products and
other hydrocarbons, and storing and providing other services at its
storage tanks and terminals. The HEP segment also includes a 25%
interest in SLC Pipeline LLC ("SLC Pipeline") that services
refineries in the Salt Lake City,
Utah area. 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
|
HEP
|
Corporate
and
Other
|
Consolidations
and
Eliminations
|
Consolidated
Total
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2010
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 2,081,709
|
$ 46,558
|
$ 100
|
$ (37,379)
|
$ 2,090,988
|
|
|
Operating expenses
|
$ 116,757
|
$ 13,632
|
$ 6
|
$ (132)
|
$ 130,263
|
|
|
General and administrative
expenses
|
$ -
|
$ 1,508
|
$ 15,417
|
$ -
|
$ 16,925
|
|
|
Depreciation and
amortization
|
$ 21,274
|
$ 6,830
|
$ 1,329
|
$ (295)
|
$ 29,138
|
|
|
Income (loss) from
operations
|
$ 100,111
|
$ 24,588
|
$ (16,652)
|
$ (429)
|
$ 107,618
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2009
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 1,476,304
|
$ 40,805
|
$ 229
|
$ (28,847)
|
$ 1,488,491
|
|
|
Operating expenses
|
$ 85,735
|
$ 11,103
|
$ 7
|
$ (128)
|
$ 96,717
|
|
|
General and administrative
expenses
|
$ -
|
$ 1,848
|
$ 14,880
|
$ -
|
$ 16,728
|
|
|
Depreciation and
amortization
|
$ 16,527
|
$ 5,974
|
$ 1,525
|
$ -
|
$ 24,026
|
|
|
Income (loss) from
operations
|
$ 50,584
|
$ 21,880
|
$ (16,183)
|
$ (699)
|
$ 55,582
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
HEP
|
Corporate
and
Other
|
Consolidations
and
Eliminations
|
Consolidated
Total
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2010
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 6,086,243
|
$ 132,730
|
$ 317
|
$ (108,152)
|
$ 6,111,138
|
|
|
Operating expenses
|
$ 338,802
|
$ 40,187
|
$ 24
|
$ (375)
|
$ 378,638
|
|
|
General and administrative
expenses
|
$ -
|
$ 5,984
|
$ 44,639
|
$ -
|
$ 50,623
|
|
|
Depreciation and
amortization
|
$ 62,599
|
$ 20,822
|
$ 3,183
|
$ (885)
|
$ 85,719
|
|
|
Income (loss) from
operations
|
$ 200,080
|
$ 65,737
|
$ (47,529)
|
$ (1,250)
|
$ 217,038
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2009
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 3,136,017
|
$ 108,136
|
$ 423
|
$ (72,277)
|
$ 3,172,299
|
|
|
Operating expenses
|
$ 209,790
|
$ 32,076
|
$ 34
|
$ (382)
|
$ 241,518
|
|
|
General and administrative
expenses
|
$ -
|
$ 4,979
|
$ 38,593
|
$ -
|
$ 43,572
|
|
|
Depreciation and
amortization
|
$ 46,310
|
$ 17,794
|
$ 5,263
|
$ -
|
$ 69,367
|
|
|
Income (loss) from
operations
|
$ 121,703
|
$ 53,287
|
$ (43,467)
|
$ (699)
|
$ 130,824
|
|
|
|
|
|
|
|
|
|
September 30,
2010
|
|
|
|
|
|
|
|
Cash, cash equivalents
and
investments in marketable
securities
|
$ -
|
$ 706
|
$
272,385
|
$
-
|
$ 273,091
|
|
|
Total assets
|
$ 2,210,374
|
$
660,727
|
$
555,419
|
$
(29,141)
|
$ 3,397,379
|
|
|
|
|
|
|
|
|
|
December 31, 2009
|
|
|
|
|
|
|
|
Cash, cash equivalents
and
investments in marketable
securities
|
$ -
|
$ 2,508
|
$
123,311
|
$ -
|
$ 125,819
|
|
|
Total assets
|
$ 2,142,317
|
$
641,775
|
$
392,007
|
$ (30,160)
|
$ 3,145,939
|
|
|
|
|
|
|
|
|
|
Refining Operating Data
Our refinery operations include the Navajo, Woods
Cross and Tulsa refineries.
The following tables set forth information, including
non-GAAP performance measures about our consolidated 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
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
85,110
|
86,250
|
82,150
|
76,670
|
|
|
Refinery production (BPD)
(2)
|
91,550
|
93,620
|
90,290
|
84,560
|
|
|
Sales of produced refined
products (BPD)
|
92,180
|
93,996
|
90,730
|
84,102
|
|
|
Sales of refined products (BPD)
(3)
|
94,900
|
96,580
|
93,780
|
88,110
|
|
|
|
|
|
|
|
|
Refinery utilization (4)
|
85.1%
|
86.2%
|
82.2%
|
80.7%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(5)
|
|
|
|
|
|
|
Net sales
|
$ 87.60
|
$ 78.15
|
$ 88.98
|
$ 69.21
|
|
|
Cost of products (6)
|
79.39
|
70.88
|
81.44
|
60.25
|
|
|
Refinery gross margin
|
8.21
|
7.27
|
7.54
|
8.96
|
|
|
Refinery operating expenses
(7)
|
5.25
|
4.37
|
5.01
|
4.88
|
|
|
Net operating margin
|
$ 2.96
|
$ 2.90
|
$ 2.53
|
$ 4.08
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
88%
|
86%
|
86%
|
84%
|
|
|
Sweet crude oil
|
4%
|
6%
|
4%
|
6%
|
|
|
Other feedstocks and
blends
|
8%
|
8%
|
10%
|
10%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
55%
|
56%
|
57%
|
57%
|
|
|
Diesel fuels
|
32%
|
33%
|
31%
|
33%
|
|
|
Jet fuels
|
2%
|
3%
|
4%
|
2%
|
|
|
Fuel oil
|
6%
|
4%
|
4%
|
3%
|
|
|
Asphalt
|
3%
|
2%
|
2%
|
3%
|
|
|
LPG and other
|
2%
|
2%
|
2%
|
2%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
27,440
|
26,860
|
26,870
|
25,670
|
|
|
Refinery production (BPD)
(2)
|
28,410
|
27,630
|
27,940
|
26,220
|
|
|
Sales of produced refined
products (BPD)
|
27,540
|
27,098
|
28,260
|
27,061
|
|
|
Sales of refined products (BPD)
(3)
|
27,840
|
27,150
|
28,450
|
27,520
|
|
|
|
|
|
|
|
|
Refinery utilization (4)
|
88.5%
|
86.7%
|
86.7%
|
81.9%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(5)
|
|
|
|
|
|
|
Net sales
|
$ 94.86
|
$ 80.87
|
$ 93.71
|
$ 66.87
|
|
|
Cost of products (6)
|
73.08
|
65.68
|
74.02
|
55.22
|
|
|
Refinery gross margin
|
21.78
|
15.19
|
19.69
|
11.65
|
|
|
Refinery operating expenses
(7)
|
6.11
|
6.44
|
5.86
|
6.45
|
|
|
Net operating margin
|
$ 15.67
|
$ 8.75
|
$ 13.83
|
$ 5.20
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
5%
|
6%
|
6%
|
4%
|
|
|
Sweet crude oil
|
61%
|
61%
|
60%
|
63%
|
|
|
Black wax crude oil
|
30%
|
27%
|
29%
|
28%
|
|
|
Other feedstocks and
blends
|
4%
|
6%
|
5%
|
5%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
60%
|
59%
|
62%
|
65%
|
|
|
Diesel fuels
|
33%
|
32%
|
31%
|
28%
|
|
|
Jet fuels
|
1%
|
3%
|
1%
|
1%
|
|
|
Fuel oil
|
2%
|
3%
|
1%
|
3%
|
|
|
Asphalt
|
2%
|
2%
|
3%
|
1%
|
|
|
LPG and other
|
2%
|
1%
|
2%
|
2%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Tulsa Refinery
(8)
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
114,820
|
66,230
|
112,340
|
28,300
|
|
|
Refinery production (BPD)
(2)
|
110,670
|
64,230
|
108,830
|
27,400
|
|
|
Sales of produced refined
products (BPD)
|
113,040
|
60,596
|
107,950
|
26,077
|
|
|
Sales of refined products (BPD)
(3)
|
113,040
|
60,850
|
108,560
|
26,250
|
|
|
|
|
|
|
|
|
Refinery utilization (4)
|
91.9%
|
77.9%
|
89.9%
|
74.5%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(5)
|
|
|
|
|
|
|
Net sales
|
$ 89.22
|
$ 76.80
|
$ 88.91
|
$ 76.65
|
|
|
Cost of products (6)
|
79.80
|
70.10
|
81.26
|
70.80
|
|
|
Refinery gross margin
|
9.42
|
6.70
|
7.65
|
5.85
|
|
|
Refinery operating expenses
(7)
|
4.80
|
4.64
|
5.10
|
4.76
|
|
|
Net operating margin
|
$ 4.62
|
$ 2.06
|
$ 2.55
|
$
1.09
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
9%
|
-%
|
6%
|
-%
|
|
|
Sweet crude oil
|
91%
|
100%
|
94%
|
100%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
39%
|
23%
|
39%
|
23%
|
|
|
Diesel fuels
|
30%
|
30%
|
31%
|
30%
|
|
|
Jet fuels
|
8%
|
11%
|
8%
|
11%
|
|
|
Lubricants
|
10%
|
18%
|
10%
|
18%
|
|
|
Gas oil / intermediates
|
4%
|
16%
|
3%
|
16%
|
|
|
Asphalt
|
6%
|
-%
|
5%
|
-%
|
|
|
LPG and other
|
3%
|
2%
|
4%
|
2%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
227,370
|
179,350
|
221,360
|
130,640
|
|
|
Refinery production (BPD)
(2)
|
230,630
|
185,480
|
227,060
|
138,190
|
|
|
Sales of produced refined
products (BPD)
|
232,760
|
181,690
|
226,940
|
137,240
|
|
|
Sales of refined products (BPD)
(3)
|
235,780
|
184,570
|
230,790
|
141,890
|
|
|
|
|
|
|
|
|
Refinery utilization (4)
|
88.8%
|
83.0%
|
86.5%
|
80.5%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(5)
|
|
|
|
|
|
|
Net sales
|
$ 89.25
|
$ 78.11
|
$ 89.53
|
$ 70.16
|
|
|
Cost of products (6)
|
78.84
|
69.84
|
80.43
|
61.26
|
|
|
Refinery gross margin
|
10.41
|
8.27
|
9.10
|
8.90
|
|
|
Refinery operating expenses
(7)
|
5.14
|
4.77
|
5.16
|
5.17
|
|
|
Net operating margin
|
$ 5.27
|
$ 3.50
|
$ 3.94
|
$ 3.73
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
39%
|
44%
|
37%
|
52%
|
|
|
Sweet crude oil
|
54%
|
47%
|
55%
|
36%
|
|
|
Black wax crude oil
|
4%
|
4%
|
4%
|
5%
|
|
|
Other feedstocks and
blends
|
3%
|
5%
|
4%
|
7%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
48%
|
45%
|
49%
|
52%
|
|
|
Diesel fuels
|
31%
|
32%
|
31%
|
31%
|
|
|
Jet fuels
|
5%
|
6%
|
6%
|
3%
|
|
|
Fuel oil
|
3%
|
2%
|
2%
|
3%
|
|
|
Asphalt
|
4%
|
2%
|
3%
|
2%
|
|
|
Lubricants
|
5%
|
6%
|
5%
|
4%
|
|
|
Gas oil / intermediates
|
2%
|
5%
|
1%
|
3%
|
|
|
LPG and other
|
2%
|
2%
|
3%
|
2%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
|
(1) Crude charge
represents the barrels per day of crude oil processed at our
refineries.
(2) 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.
(3) Includes
refined products purchased for resale.
(4) Represents
crude charge divided by total crude capacity (BPSD). Our
consolidated crude capacity was increased by 15,000 BPSD effective
April 1, 2009 (our Navajo refinery expansion), 85,000 BPSD
effective June 1, 2009 (our Tulsa Refinery west facility
acquisition) and 40,000 BPSD effective December 1, 2009 (our Tulsa
refinery east facility acquisition), increasing our consolidated
crude capacity to 256,000 BPSD.
(5) 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.
(6) Transportation, terminal and
refinery storage costs billed from HEP are included in cost of
products.
(7) Represents
operating expenses of our refineries, exclusive of depreciation and
amortization.
(8) The amounts
reported for the Tulsa Refinery for the nine months ended September
30, 2009 include crude oil processed and products yielded from the
Tulsa Refinery west facility for the period from June 1, 2009 (date
of Tulsa Refinery west facility acquisition) through September 30,
2009 only, and averaged over the 273 days for the nine months
ended.
|
|
|
|
Operating data for the
period from June 1, 2009 through September 30, 2009 is as
follows:
|
|
|
Tulsa
Refinery
|
|
|
|
|
Crude charge (BPD)
|
63,330
|
|
|
|
Refinery production
(BPD)
|
61,310
|
|
|
|
Sales of produced refined
products (BPD)
|
58,360
|
|
|
|
Sales of refined products
(BPD)
|
58,740
|
|
|
|
|
|
|
|
Refinery
utilization
|
74.5%
|
|
|
|
|
|
|
|
|
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 Holly Corporation 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 from continuing
operations.
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 59,390
|
$ 30,177
|
$ 108,802
|
$ 72,189
|
|
|
Subtract noncontrolling interest
in income from continuing
operations
|
(8,213)
|
(6,964)
|
(19,557)
|
(13,175)
|
|
|
Add income
tax provision
|
31,494
|
13,497
|
54,476
|
34,668
|
|
|
Add interest
expense
|
17,368
|
12,407
|
56,113
|
25,849
|
|
|
Subtract
interest income
|
(64)
|
(231)
|
(758)
|
(2,561)
|
|
|
Add
depreciation and amortization
|
29,138
|
24,026
|
85,719
|
69,367
|
|
|
EBITDA from continuing
operations
|
$ 129,113
|
$ 72,912
|
$ 284,795
|
$ 186,337
|
|
|
|
|
|
|
|
|
|
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.
We calculate refinery gross margin and net operating margin
using net sales, cost of products and operating expenses, in each
case averaged per produced barrel sold. 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 Margin
Refinery gross margin per barrel is the difference between
average net sales price and average cost of products per barrel of
produced refined products. Refinery gross margin for each of
our refineries and for all of our refineries on a consolidated
basis is calculated as shown below.
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Average per produced
barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Net
sales
|
$ 87.60
|
$ 78.15
|
$ 88.98
|
$ 69.21
|
|
|
Less cost of
products
|
79.39
|
70.88
|
81.44
|
60.25
|
|
|
Refinery
gross margin
|
$ 8.21
|
$ 7.27
|
$ 7.54
|
$ 8.96
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Net
sales
|
$ 94.86
|
$ 80.87
|
$ 93.71
|
$ 66.87
|
|
|
Less cost of
products
|
73.08
|
65.68
|
74.02
|
55.22
|
|
|
Refinery
gross margin
|
$ 21.78
|
$ 15.19
|
$ 19.69
|
$ 11.65
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Net
sales
|
$ 89.22
|
$ 76.80
|
$ 88.91
|
$ 76.65
|
|
|
Less cost of
products
|
79.80
|
70.10
|
81.26
|
70.80
|
|
|
Refinery
gross margin
|
$ 9.42
|
$ 6.70
|
$ 7.65
|
$ 5.85
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Net
sales
|
$ 89.25
|
$ 78.11
|
$ 89.53
|
$ 70.16
|
|
|
Less cost of
products
|
78.84
|
69.84
|
80.43
|
61.26
|
|
|
Refinery
gross margin
|
$ 10.41
|
$ 8.27
|
$ 9.10
|
$ 8.90
|
|
|
|
|
|
|
|
|
Net Operating Margin
Net operating margin per barrel is the difference between
refinery gross margin and refinery operating expenses per barrel of
produced refined products. Net operating margin for each of
our refineries and for all of our refineries on a consolidated
basis is calculated as shown below.
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Average per produced
barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 8.21
|
$ 7.27
|
$ 7.54
|
$ 8.96
|
|
|
Less
refinery operating expenses
|
5.25
|
4.37
|
5.01
|
4.88
|
|
|
Net
operating margin
|
$ 2.96
|
$ 2.90
|
$ 2.53
|
$ 4.08
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 21.78
|
$ 15.19
|
$ 19.69
|
$ 11.65
|
|
|
Less
refinery operating expenses
|
6.11
|
6.44
|
5.86
|
6.45
|
|
|
Net
operating margin
|
$ 15.67
|
$ 8.75
|
$ 13.83
|
$ 5.20
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 9.42
|
$ 6.70
|
$ 7.65
|
$ 5.85
|
|
|
Less
refinery operating expenses
|
4.80
|
4.64
|
5.10
|
4.76
|
|
|
Net
operating margin
|
$ 4.62
|
$ 2.06
|
$ 2.55
|
$ 1.09
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 10.41
|
$ 8.27
|
$ 9.10
|
$ 8.90
|
|
|
Less
refinery operating expenses
|
5.14
|
4.77
|
5.16
|
5.17
|
|
|
Net
operating margin
|
$ 5.27
|
$ 3.50
|
$ 3.94
|
$ 3.73
|
|
|
|
|
|
|
|
|
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
revenue
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 87.60
|
$ 78.15
|
$ 88.98
|
$ 69.21
|
|
|
Times sales of produced
refined products sold (BPD)
|
92,180
|
93,996
|
90,730
|
84,102
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 742,897
|
$ 675,812
|
$ 2,203,971
|
$ 1,589,051
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 94.86
|
$ 80.87
|
$ 93.71
|
$ 66.87
|
|
|
Times sales of produced
refined products sold (BPD)
|
27,540
|
27,098
|
28,260
|
27,061
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 240,345
|
$ 201,610
|
$ 722,971
|
$ 494,012
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 89.22
|
$ 76.80
|
$ 88.91
|
$ 76.65
|
|
|
Times sales of produced
refined products sold (BPD)
|
113,040
|
60,596
|
107,950
|
26,077
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 927,859
|
$ 428,147
|
$ 2,620,209
|
$ 545,673
|
|
|
|
|
|
|
|
|
Sum of refined product sales from produced products sold from our three refineries (1)
|
$ 1,911,101
|
$ 1,305,569
|
$ 5,547,151
|
$ 2,628,736
|
|
|
Add refined product sales from purchased products and rounding (2)
|
24,586
|
21,539
|
93,093
|
83,579
|
|
|
Total refined product
sales
|
1,935,687
|
1,327,108
|
5,640,244
|
2,712,315
|
|
|
Add direct sales of excess
crude oil (3)
|
106,364
|
98,540
|
355,381
|
320,416
|
|
|
Add other refining segment
revenue (4)
|
39,658
|
50,656
|
90,618
|
103,286
|
|
|
Total refining segment
revenue
|
2,081,709
|
1,476,304
|
6,086,243
|
3,136,017
|
|
|
Add HEP segment sales and
other revenues
|
46,558
|
40,805
|
132,730
|
108,136
|
|
|
Add corporate and other
revenues
|
100
|
229
|
317
|
423
|
|
|
Subtract consolidations
and eliminations
|
(37,379)
|
(28,847)
|
(108,152)
|
(72,277)
|
|
|
Sales and other
revenues
|
$ 2,090,988
|
$ 1,488,491
|
$ 6,111,138
|
$ 3,172,299
|
|
|
|
|
(1) The above calculations of
refined product sales from produced products sold can also be
computed on a consolidated basis. These amounts may not
calculate exactly due to rounding of reported numbers.
(2) We purchase finished
products when opportunities
arise that provide a profit on the sale of such products, or to
meet delivery commitments.
(3) 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, 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.
(4) Other refining segment
revenue includes the revenues associated with Holly Asphalt and
revenue derived from feedstock and sulfur credit sales.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 89.25
|
$ 78.11
|
$ 89.53
|
$ 70.16
|
|
|
Times sales of produced
refined products sold (BPD)
|
232,760
|
181,690
|
226,940
|
137,240
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 1,911,101
|
$ 1,305,569
|
$ 5,547,151
|
$2,628,736
|
|
|
|
|
|
|
|
|
|
Reconciliation of average cost
of products per produced barrel sold to total cost of products
sold
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Average cost of products
per produced barrel sold
|
$ 79.39
|
$ 70.88
|
$ 81.44
|
$ 60.25
|
|
|
Times sales of produced
refined products sold (BPD)
|
92,180
|
93,996
|
90,730
|
84,102
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Cost of products for
produced products sold
|
$ 673,272
|
$ 612,944
|
$ 2,017,211
|
$ 1,383,331
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Average cost of products
per produced barrel sold
|
$ 73.08
|
$ 65.68
|
$ 74.02
|
$ 55.22
|
|
|
Times sales of produced
refined products sold (BPD)
|
27,540
|
27,098
|
28,260
|
27,061
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Cost of products for
produced products sold
|
$ 185,161
|
$ 163,741
|
$ 571,063
|
$ 407,946
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Average cost of products
per produced barrel sold
|
$ 79.80
|
$ 70.10
|
$ 81.26
|
$ 70.80
|
|
|
Times sales of produced
refined products sold (BPD)
|
113,040
|
60,596
|
107,950
|
26,077
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Cost of products for
produced products sold
|
$ 829,894
|
$ 390,796
|
$ 2,394,761
|
$ 504,027
|
|
|
|
|
|
|
|
|
Sum of cost of products for
produced products sold from our three refineries (1)
|
$
1,688,327
|
$1,167,481
|
$ 4,983,035
|
$ 2,295,304
|
|
|
Add refined product costs from purchased products sold and rounding (2)
|
24,594
|
22,295
|
93,898
|
88,271
|
|
|
Total refined cost of products
sold
|
1,712,921
|
1,189,776
|
5,076,933
|
2,383,575
|
|
|
Add crude oil cost of direct
sales of excess crude oil (3)
|
105,091
|
97,400
|
351,643
|
317,954
|
|
|
Add other refining segment cost
of products sold (4)
|
25,555
|
36,282
|
56,186
|
56,685
|
|
|
Total refining segment cost of
products sold
|
1,843,567
|
1,323,458
|
5,484,762
|
2,758,214
|
|
|
Subtract consolidations and
eliminations
|
(36,523)
|
(28,020)
|
(105,642)
|
(71,196)
|
|
|
Costs of products sold
(exclusive of depreciation and amortization)
|
$ 1,807,044
|
$ 1,295,438
|
$ 5,379,120
|
$ 2,687,018
|
|
|
|
|
(1) The above calculations of
cost of products for produced products sold can also be computed on
a consolidated basis. These amounts may not calculate exactly
due to rounding of reported numbers.
(2) We purchase finished
products when opportunities arise that provide a profit on the sale
of such products, or to meet delivery commitments.
(3) 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, 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.
(4) Other refining segment cost
of products sold includes the cost of products for Holly Asphalt
and costs attributable to feedstock and sulfur credit
sales.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Average cost of
products per produced barrel sold
|
$ 78.84
|
$ 69.84
|
$ 80.43
|
$ 61.26
|
|
|
Times sales of
produced refined products sold (BPD)
|
232,760
|
181,690
|
226,940
|
137,240
|
|
|
Times number of days
in period
|
92
|
92
|
273
|
273
|
|
|
Cost of products for
produced products sold
|
$ 1,688,327
|
$ 1,167,481
|
$ 4,983,035
|
$ 2,295,304
|
|
|
|
|
|
|
|
|
|
Reconciliation of average
refinery operating expenses per produced barrel sold to total
operating expenses
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Average refinery operating
expenses per produced barrel sold
|
$ 5.25
|
$ 4.37
|
$ 5.01
|
$ 4.88
|
|
|
Times sales of produced
refined products sold (BPD)
|
92,180
|
93,996
|
90,730
|
84,102
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refinery operating
expenses for produced products sold
|
$ 44,523
|
$ 37,790
|
$ 124,094
|
$ 112,044
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Average refinery operating
expenses per produced barrel sold
|
$ 6.11
|
$ 6.44
|
$ 5.86
|
$ 6.45
|
|
|
Times sales of produced
refined products sold (BPD)
|
27,540
|
27,098
|
28,260
|
27,061
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refinery operating
expenses for produced products sold
|
$ 15,481
|
$ 16,055
|
$ 45,210
|
$ 47,650
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Average refinery operating
expenses per produced barrel sold
|
$ 4.80
|
$ 4.64
|
$ 5.10
|
$ 4.76
|
|
|
Times sales of produced
refined products sold (BPD)
|
113,040
|
60,596
|
107,950
|
26,077
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refinery operating
expenses for produced products sold
|
$ 49,918
|
$ 25,867
|
$ 150,299
|
$ 33,887
|
|
|
|
|
|
|
|
|
Sum of refinery operating
expenses per produced products sold from our three refineries
(1)
|
$ 109,922
|
$ 79,712
|
$ 319,603
|
$ 193,581
|
|
|
Add other refining segment operating expenses and rounding (2)
|
6,835
|
6,023
|
19,199
|
16,209
|
|
|
Total refining segment
operating expenses
|
116,757
|
85,735
|
338,802
|
209,790
|
|
|
Add HEP segment operating
expenses
|
13,632
|
11,103
|
40,187
|
32,076
|
|
|
Add corporate and other
costs
|
6
|
7
|
24
|
34
|
|
|
Subtract consolidations
and eliminations
|
(132)
|
(128)
|
(375)
|
(382)
|
|
|
Operating expenses (exclusive of
depreciation and amortization)
|
$ 130,263
|
$ 96,717
|
$ 378,638
|
$ 241,518
|
|
|
|
|
(1) The above
calculations of refinery operating expenses from produced products
sold can also be computed on a consolidated basis. These
amounts may not calculate exactly due to rounding of reported
numbers.
(2) Other
refining segment operating expenses include the marketing costs
associated with our refining segment and the operating expenses of
Holly Asphalt.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Average refinery
operating expenses per produced barrel
sold sold
|
$ 5.14
|
$ 4.77
|
$ 5.16
|
$ 5.17
|
|
|
Times sales of
produced refined products sold (BPD)
|
232,760
|
181,690
|
226,940
|
137,240
|
|
|
Times number of days
in period
|
92
|
92
|
273
|
273
|
|
|
Refinery operating
expenses for produced products sold
|
$ 109,922
|
$ 79,712
|
$ 319,603
|
$ 193,581
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating
margin per barrel to refinery gross margin per barrel to total
sales and other revenues
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 2.96
|
$ 2.90
|
$ 2.53
|
$ 4.08
|
|
|
Add average refinery
operating expenses per produced barrel
|
5.25
|
4.37
|
5.01
|
4.88
|
|
|
Refinery gross margin per
barrel
|
8.21
|
7.27
|
7.54
|
8.96
|
|
|
Add average cost of
products per produced barrel sold
|
79.39
|
70.88
|
81.44
|
60.25
|
|
|
Average sales price per
produced barrel sold
|
$ 87.60
|
$ 78.15
|
$ 88.98
|
$ 69.21
|
|
|
Times sales of produced
refined products sold (BPD)
|
92,180
|
93,996
|
90,730
|
84,102
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 742,897
|
$ 675,812
|
$ 2,203,971
|
$ 1,589,051
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 15.67
|
$ 8.75
|
$ 13.83
|
$ 5.20
|
|
|
Add average refinery
operating expenses per produced barrel
|
6.11
|
6.44
|
5.86
|
6.45
|
|
|
Refinery gross margin per
barrel
|
21.78
|
15.19
|
19.69
|
11.65
|
|
|
Add average cost of
products per produced barrel sold
|
73.08
|
65.68
|
74.02
|
55.22
|
|
|
Average sales price per
produced barrel sold
|
$ 94.86
|
$ 80.87
|
$ 93.71
|
$ 66.87
|
|
|
Times sales of produced
refined products sold (BPD)
|
27,540
|
27,098
|
28,260
|
27,061
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 240,345
|
$ 201,610
|
$ 722,971
|
$ 494,012
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 4.62
|
$ 2.06
|
$ 2.55
|
$ 1.09
|
|
|
Add average refinery
operating expenses per produced barrel
|
4.80
|
4.64
|
5.10
|
4.76
|
|
|
Refinery gross margin per
barrel
|
9.42
|
6.70
|
7.65
|
5.85
|
|
|
Add average cost of
products per produced barrel sold
|
79.80
|
70.10
|
81.26
|
70.80
|
|
|
Average sales price per
produced barrel sold
|
$ 89.22
|
$ 76.80
|
$ 88.91
|
$ 76.65
|
|
|
Times sales of produced
refined products sold (BPD)
|
113,040
|
60,596
|
107,950
|
26,077
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 927,859
|
$ 428,147
|
$ 2,620,209
|
$ 545,673
|
|
|
|
|
|
|
|
|
Sum of refined product sales from produced products sold from our three refineries (1)
|
$ 1,911,101
|
$ 1,305,569
|
$ 5,547,151
|
$ 2,628,736
|
|
|
Add refined product sales from purchased products and rounding (2)
|
24,586
|
21,539
|
93,093
|
83,579
|
|
|
Total refined product
sales
|
1,935,687
|
1,327,108
|
5,640,244
|
2,712,315
|
|
|
Add direct sales of excess
crude oil (3)
|
106,364
|
98,540
|
355,381
|
320,416
|
|
|
Add other refining segment
revenue (4)
|
39,658
|
50,656
|
90,618
|
103,286
|
|
|
Total refining segment
revenue
|
2,081,709
|
1,476,304
|
6,086,243
|
3,136,017
|
|
|
Add HEP segment sales and
other revenues
|
46,558
|
40,805
|
132,730
|
108,136
|
|
|
Add corporate and other
revenues
|
100
|
229
|
317
|
423
|
|
|
Subtract consolidations
and eliminations
|
(37,379)
|
(28,847)
|
(108,152)
|
(72,277)
|
|
|
Sales and other
revenues
|
$ 2,090,988
|
$ 1,488,491
|
$ 6,111,138
|
$ 3,172,299
|
|
|
|
|
(1) The above calculations of
refined product sales from produced products sold can also be
computed on a consolidated basis. These amounts may not
calculate exactly due to rounding of reported numbers.
(2) We purchase finished
products when opportunities arise that provide a profit on the sale
of such products or to meet delivery commitments.
(3) 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, 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.
(4) Other refining segment
revenue includes the revenues associated with Holly Asphalt and
revenue derived from feedstock and sulfur credit sales.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 5.27
|
$ 3.50
|
$ 3.94
|
$ 3.73
|
|
|
Add average refinery
operating expenses per produced barrel
|
5.14
|
4.77
|
5.16
|
5.17
|
|
|
Refinery gross margin per
barrel
|
10.41
|
8.27
|
9.10
|
8.90
|
|
|
Add average cost of
products per produced barrel sold
|
78.84
|
69.84
|
80.43
|
61.26
|
|
|
Average sales price per
produced barrel sold
|
$ 89.25
|
$ 78.11
|
$ 89.53
|
$ 70.16
|
|
|
Times sales of produced
refined products sold (BPD)
|
232,760
|
181,690
|
226,940
|
137,240
|
|
|
Times number of days in
period
|
92
|
92
|
273
|
273
|
|
|
Refined product sales from
produced products sold
|
$ 1,911,101
|
$ 1,305,569
|
$ 5,547,151
|
$2,628,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Holly Corporation