DALLAS, Feb. 24, 2011 /PRNewswire/ -- Holly Corporation
(NYSE: HOC) ("Holly" or the "Company") today reported fourth
quarter 2010 financial results. For the quarter, net income
attributable to Holly stockholders was $14.7
million ($0.28 per basic and
$0.27 per diluted share) compared to
a net loss attributable to Holly stockholders of $40.5 million ($0.79 per basic and diluted share) for the fourth
quarter of 2009. For the year ended December 31, 2010, net income attributable to
Holly stockholders was $104 million
($1.95 per basic and $1.94 per diluted share) compared to $19.5 million ($0.39 per basic and diluted share) for 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 April 4, 2011, to holders of record on
March 25, 2011.
For the quarter, net income attributable to our stockholders
increased by $55.2 million compared
to the same period of 2009. This increase was due principally
to higher refinery gross margins during the current year fourth
quarter combined with increased sales volumes of produced refined
products. Overall refinery gross margins were $7.87 per produced barrel, a 114% increase
compared to $3.67 for the fourth
quarter of 2009. For the quarter, our overall refinery
production levels averaged 222,750 barrels per day ("BPD"), an
increase of 17% 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 year ended December 31,
2010, net income attributable to our stockholders increased
by $84.4 million compared to 2009.
This increase was due principally to increased sales volumes
of produced refined products combined with higher refinery gross
margins during 2010. Overall refinery gross margins were
$8.79 per produced barrel, a 22%
increase compared to $7.21 in 2009.
For the year ended December 31,
2010, our overall refinery production levels averaged
225,980 BPD, an increase of 49% over 2009 due to production from
our Tulsa refinery facilities and
production increases at our Navajo
and Woods Cross refineries.
"We are pleased with our fourth quarter and full year results,"
said Matthew Clifton, Chairman of
the Board and Chief Executive Officer of Holly. "Significant
year-over-year margin improvements at each of our refineries,
contributed to the much improved EBITDA levels of $69 million and $353.8
million for the three months and year ended December 31, 2010, representing respective
increases of 333% and 126% over the same periods of 2009.
Particularly 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 these improved results. Refinery margins in the
2010 fourth quarter were significantly better than the low margins
experienced in late 2009 and early 2010, yet during the fourth
quarter of 2010 margins somewhat fell off as gasoline prices did
not keep pace with recent crude oil increases.
"Progress continues on our integration and diesel
desulfurization expansion efforts at our Tulsa refinery with the diesel desulfurizer
project expected to be completed within the next two weeks and the
pipeline integration expected to be mechanically complete later
this spring. The Tulsa projects should lower operating
expenses and improve the profit producing potential of what has
been a strong profit contributor during the last three quarters.
"Our affiliated logistic MLP, Holly Energy Partners, had a
strong fourth quarter achieving record quarterly distributable cash
flow and EBITDA levels. We received $9.7 million as a result of HEP's distribution
declaration on January 26, 2010.
"At year end our cash and marketable securities stood at
$230 million. Excluding the
Holly Energy Partners debt that is non-recourse to Holly, our cash
adjusted debt to total capitalization ratio was at 14%, ranking our
balance sheet as one of the strongest among our independent
refining peers.
"To date in the first quarter of 2011, steep discounts on WTI
price related crudes compared to world oil prices and strong
gasoline and diesel prices have raised margins at all three of our
refineries. However, reduced production at our Navajo refinery over the last month due to the
resultant impacts of a plant-wide power failure and bad weather
will result in lower production than expected. Operations at
Navajo are in the process of
ramping back up to more typical levels.
"Looking forward, we are confident that the quality of our
assets, combined with the markets we serve and our strong financial
position will permit us to realize strong returns in 2011," Clifton
said.
Sales and other revenues for the fourth quarter of 2010 were
$2,211.8 million, a 33% increase
compared to the three months ended December
31, 2009. This increase was due to the effects of a
16% year-over-year increase in fourth quarter refined product sales
prices combined with a 19% 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 $1,988 million, a 28% increase compared to the
fourth quarter of 2009 due mainly to higher crude oil acquisition
costs and increased volumes of produced refined products sold.
Sales and other revenues for the year ended December 31, 2010, were $8,322.9 million, a 72% increase compared to the
year ended December 31, 2009.
This increase was due to the effects of a 23% year-over-year
increase in refined product sales prices combined with a 51%
increase in volumes of produced refined products sold. The
volume increase was attributable to our Tulsa refinery operations and year-over-year
production increases at our Navajo
and Woods Cross refineries.
Cost of products sold was $7,367.1
million, a 74% increase compared to 2009 due mainly to
higher crude oil acquisition costs and increased volumes of
produced refined products sold.
Operating costs and expenses for the three months and year ended
December 31, 2010, increased mainly
due to the inclusion of costs attributable to the operations of our
Tulsa east refinery facilities.
Interest expense for the three months and year ended
December 31, 2010, increased by
$3.6 million and $33.9 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.
As previously announced, Holly has entered into a definitive
merger agreement under which it will combine with Frontier Oil
Corporation in an all-stock merger of equals. Based on the closing
market prices for the shares of both companies on Friday, February 18, 2011, and their debt levels
as of December 31, 2010, the new
company would have an enterprise value of $7
billion. The new company, which will be named
HollyFrontier Corporation, will have a well-positioned refining
asset base, enhanced growth opportunities and one of the best
balance sheets in the industry. The transaction is expected to be
completed early in the third quarter of 2011.
The Company has scheduled a webcast conference call for today,
February 24, 2011, at 4:00 PM Eastern Time to discuss financial
results. This webcast may be accessed at:
http://www.videonewswire.com/event.asp?id=76379.
An audio archive of this webcast will be available using the
above noted link through March 9,
2011.
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
December 31,
|
Change from
2009
|
|
|
2010
|
2009
|
Change
|
Percent
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 2,211,791
|
$ 1,661,969
|
$ 549,822
|
33.1%
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
Cost of products sold (exclusive
of depreciation and amortization)
|
1,988,029
|
1,550,990
|
437,039
|
28.2
|
|
|
Operating expenses (exclusive of
depreciation and amortization)
|
125,776
|
115,337
|
10,439
|
9.1
|
|
|
General and administrative
expenses (exclusive of depreciation
and amortization)
|
20,216
|
16,771
|
3,445
|
20.5
|
|
|
Depreciation and
amortization
|
31,810
|
29,384
|
2,426
|
8.3
|
|
|
Total operating costs and
expenses
|
2,165,831
|
1,712,482
|
453,349
|
26.5
|
|
|
Income (loss) from
operations
|
45,960
|
(50,513)
|
96,473
|
191.0
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Equity in earnings of SLC
Pipeline
|
798
|
610
|
188
|
30.8
|
|
|
Interest income
|
410
|
2,484
|
(2,074)
|
(83.5)
|
|
|
Interest
expense
|
(18,083)
|
(14,497)
|
(3,586)
|
24.7
|
|
|
Acquisition costs - Tulsa
refineries
|
-
|
(1,138)
|
1,138
|
(100.0)
|
|
|
(16,875)
|
(12,541)
|
(4,334)
|
(34.6)
|
|
|
Income (loss) from continuing
operations before income taxes
|
29,085
|
(63,054)
|
92,139
|
146.1
|
|
|
Income tax provision
(benefit)
|
4,836
|
(27,208)
|
32,044
|
117.8
|
|
|
Income (loss) from continuing
operations
|
24,249
|
(35,846)
|
60,095
|
167.6
|
|
|
Income from discontinued
operations (1)
|
-
|
13,488
|
(13,488)
|
(100.0)
|
|
|
Net income (loss)
|
24,249
|
(22,358)
|
46,607
|
208.5
|
|
|
Less noncontrolling interest in
net income
|
9,530
|
18,143
|
(8,613)
|
(47.5)
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Holly Corporation stockholders
|
$
14,719
|
$
(40,501)
|
$
55,220
|
136.3%
|
|
|
|
|
|
|
|
|
Earnings (loss) attributable to
Holly Corporation stockholders:
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$ 14,719
|
$ (43,805)
|
$ 58,524
|
133.6%
|
|
|
Income from discontinued
operations
|
-
|
3,304
|
(3,304)
|
(100.0)
|
|
|
Net income
(loss)
|
$
14,719
|
$
(40,501)
|
$
55,220
|
136.3%
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
attributable to Holly Corporation
stockholders – basic:
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$ 0.28
|
$ (0.85)
|
$ 1.13
|
132.9%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.06
|
(0.06)
|
(100.0)
|
|
|
Net income (loss)
|
$
0.28
|
$
(0.79)
|
$
1.07
|
135.4%
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
attributable to Holly Corporation
stockholders –
diluted:
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$ 0.27
|
$ (0.85)
|
$ 1.12
|
131.8%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.06
|
(0.06)
|
(100.0)
|
|
|
Net income (loss)
|
$
0.27
|
$
(0.79)
|
$
1.06
|
134.2%
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share
|
$
0.15
|
$
0.15
|
$
-
|
-%
|
|
|
|
|
|
|
|
|
Average number of common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
53,258
|
51,200
|
2,058
|
4.0%
|
|
|
Diluted
|
53,648
|
51,380
|
2,268
|
4.4%
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations
|
$ 69,038
|
$ (29,616)
|
$ 98,654
|
333.1%
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
Change from
2009
|
|
|
2010
|
2009
|
Change
|
Percent
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 8,322,929
|
$ 4,834,268
|
$ 3,488,661
|
72.2%
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
Cost of products sold (exclusive
of depreciation and amortization)
|
7,367,149
|
4,238,008
|
3,129,141
|
73.8
|
|
|
Operating expenses (exclusive of
depreciation and amortization)
|
504,414
|
356,855
|
147,559
|
41.3
|
|
|
General and administrative
expenses (exclusive of depreciation
and amortization)
|
70,839
|
60,343
|
10,496
|
17.4
|
|
|
Depreciation and
amortization
|
117,529
|
98,751
|
18,778
|
19.0
|
|
|
Total operating costs and
expenses
|
8,059,931
|
4,753,957
|
3,305,974
|
69.5
|
|
|
Income from operations
|
262,998
|
80,311
|
182,687
|
227.5
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Equity in earnings of SLC
Pipeline
|
2,393
|
1,919
|
474
|
24.7
|
|
|
Interest income
|
1,168
|
5,045
|
(3,877)
|
(76.8)
|
|
|
Interest
expense
|
(74,196)
|
(40,346)
|
(33,850)
|
83.9
|
|
|
Acquisition costs - Tulsa
refineries
|
-
|
(3,126)
|
3,126
|
(100.0)
|
|
|
(70,635)
|
(36,508)
|
(34,127)
|
(93.5)
|
|
|
Income from continuing
operations before income taxes
|
192,363
|
43,803
|
148,560
|
339.2
|
|
|
Income tax provision
|
59,312
|
7,460
|
51,852
|
695.1
|
|
|
Income from continuing
operations
|
133,051
|
36,343
|
96,708
|
266.1
|
|
|
Income from discontinued
operations (1)
|
-
|
16,926
|
(16,926)
|
(100.0)
|
|
|
Net income
|
133,051
|
53,269
|
79,782
|
149.8
|
|
|
Less noncontrolling interest in
net income
|
29,087
|
33,736
|
(4,649)
|
(13.8)
|
|
|
|
|
|
|
|
|
Net income attributable to Holly
Corporation stockholders
|
$
103,964
|
$
19,533
|
$
84,431
|
432.2%
|
|
|
|
|
|
|
|
|
Earnings attributable to Holly
Corporation stockholders:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 103,964
|
$ 15,209
|
$ 88,755
|
583.6%
|
|
|
Income from discontinued
operations
|
-
|
4,324
|
(4,324)
|
(100.0)
|
|
|
Net income
|
$
103,964
|
$
19,533
|
$
84,431
|
432.2%
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Holly Corporation
stockholders – basic:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 1.95
|
$ 0.30
|
$ 1.65
|
550.0%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.09
|
(0.09)
|
(100.0)
|
|
|
Net income
|
$
1.95
|
$
0.39
|
$
1.56
|
400.0%
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Holly Corporation
stockholders –
diluted:
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 1.94
|
$ 0.30
|
$ 1.64
|
546.7%
|
|
|
Income from discontinued
operations (1)
|
-
|
0.09
|
(0.09)
|
(100.0)
|
|
|
Net income
|
$
1.94
|
$
0.39
|
$
1.55
|
397.4%
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share
|
$
0.60
|
$
0.60
|
$
-
|
-%
|
|
|
|
|
|
|
|
|
Average number of common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
53,218
|
50,418
|
2,800
|
5.6%
|
|
|
Diluted
|
53,609
|
50,603
|
3,006
|
5.9%
|
|
|
|
|
|
|
|
|
EBITDA from continuing
operations
|
$ 353,833
|
$ 156,721
|
$ 197,112
|
125.8%
|
|
|
|
|
|
|
|
(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
|
|
|
December
31,
|
|
|
2010
|
2009
|
|
|
(In
thousands)
|
|
|
|
|
|
|
Cash, cash equivalents and
investments in marketable securities
|
$
230,444
|
$
125,819
|
|
|
Working capital
|
$
313,580
|
$
257,899
|
|
|
Total assets
|
$ 3,701,475
|
$ 3,145,939
|
|
|
Long-term debt
|
$
810,561
|
$
707,458
|
|
|
Total equity
|
$ 1,288,139
|
$ 1,207,781
|
|
|
|
|
|
|
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 December 31,
2010
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 2,200,757
|
$ 49,384
|
$ 98
|
$ (38,448)
|
$ 2,211,791
|
|
|
Operating expenses
|
$ 110,788
|
$ 12,760
|
$ 2,363
|
$ (135)
|
$ 125,776
|
|
|
General and administrative
expenses
|
$ -
|
$ 1,735
|
$ 18,481
|
$ -
|
$ 20,216
|
|
|
Depreciation and
amortization
|
$ 21,988
|
$ 8,240
|
$ 1,379
|
$ 203
|
$ 31,810
|
|
|
Income (loss) from
operations
|
$ 42,386
|
$ 26,649
|
$ (22,125)
|
$ (950)
|
$ 45,960
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2009
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 1,653,804
|
$ 38,425
|
$ (1,059)
|
$ (29,201)
|
$ 1,661,969
|
|
|
Operating expenses
|
$ 103,529
|
$ 11,928
|
$ 7
|
$ (127)
|
$ 115,337
|
|
|
General and administrative
expenses
|
$ -
|
$ 2,607
|
$ 14,164
|
$ -
|
$ 16,771
|
|
|
Depreciation and
amortization
|
$ 21,038
|
$ 6,804
|
$ 1,542
|
$ -
|
$ 29,384
|
|
|
Income (loss) from
operations
|
$ (50,422)
|
$ 17,086
|
$ (16,772)
|
$ (405)
|
$ (50,513)
|
|
|
Year Ended December 31,
2010
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 8,287,000
|
$ 182,114
|
$ 415
|
$ (146,600)
|
$ 8,322,929
|
|
|
Operating expenses
|
$ 449,590
|
$ 52,947
|
$ 2,387
|
$ (510)
|
$ 504,414
|
|
|
General and administrative
expenses
|
$ -
|
$ 7,719
|
$ 63,120
|
$ -
|
$ 70,839
|
|
|
Depreciation and
amortization
|
$ 84,587
|
$ 29,062
|
$ 4,562
|
$ (682)
|
$ 117,529
|
|
|
Income (loss) from
operations
|
$ 242,466
|
$ 92,386
|
$ (69,654)
|
$ (2,200)
|
$ 262,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
HEP
|
Corporate
And Other
|
Consolidations
and
Eliminations
|
Consolidated
Total
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
2009
|
|
|
|
|
|
|
|
Sales and other revenues
|
$ 4,789,821
|
$ 146,561
|
$ (636)
|
$ (101,478)
|
$ 4,834,268
|
|
|
Operating expenses
|
$ 313,320
|
$ 44,003
|
$ 41
|
$ (509)
|
$ 356,855
|
|
|
General and administrative
expenses
|
$ -
|
$ 7,586
|
$ 52,757
|
$ -
|
$ 60,343
|
|
|
Depreciation and
amortization
|
$ 67,347
|
$ 24,599
|
$ 6,805
|
$ -
|
$ 98,751
|
|
|
Income (loss) from
operations
|
$ 71,281
|
$ 70,373
|
$ (60,239)
|
$ (1,104)
|
$ 80,311
|
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|
|
|
|
|
|
|
Cash, cash equivalents
and
investments in marketable
securities
|
$ -
|
$ 403
|
$
230,041
|
$
-
|
$ 230,444
|
|
|
Total assets
|
$ 2,490,193
|
$
669,820
|
$
573,531
|
$
(32,069)
|
$ 3,701,475
|
|
|
Long-term debt
|
$ -
|
$
482,271
|
$
345,215
|
$
(16,925)
|
$ 810,561
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Long-term debt
|
$ -
|
$
379,198
|
$
345,602
|
$ (17,342)
|
$ 707,458
|
|
|
|
|
|
|
|
|
|
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
December 31,
|
Years Ended
December 31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
89,080
|
82,580
|
83,900
|
78,160
|
|
|
Refinery throughput (2)
|
100,070
|
94,980
|
94,270
|
88,900
|
|
|
Refinery production (BPD)
(3)
|
97,270
|
93,280
|
92,050
|
86,760
|
|
|
Sales of produced refined
products (BPD)
|
97,930
|
96,150
|
92,550
|
87,140
|
|
|
Sales of refined products (BPD)
(4)
|
101,740
|
99,060
|
95,790
|
90,870
|
|
|
|
|
|
|
|
|
Refinery utilization (5)
|
89.1%
|
82.6%
|
83.9%
|
81.2%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(6)
|
|
|
|
|
|
|
Net sales
|
$ 94.18
|
$ 83.40
|
$ 90.37
|
$ 73.15
|
|
|
Cost of products (7)
|
87.74
|
80.75
|
83.12
|
65.95
|
|
|
Refinery gross margin
|
6.44
|
2.65
|
7.25
|
7.20
|
|
|
Refinery operating expenses
(8)
|
4.78
|
4.63
|
4.95
|
4.81
|
|
|
Net operating margin
|
$
1.66
|
$
(1.98)
|
$
2.30
|
$
2.39
|
|
|
|
|
|
|
|
|
Refinery operating expenses per
throughput barrel
|
$ 4.68
|
$ 4.69
|
$ 4.86
|
$ 4.71
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
71%
|
85%
|
81%
|
85%
|
|
|
Sweet crude oil
|
6%
|
4%
|
5%
|
6%
|
|
|
Heavy sour crude oil
|
12%
|
-%
|
4%
|
-%
|
|
|
Other feedstocks and
blends
|
11%
|
11%
|
10%
|
9%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
Years Ended
December 31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
56%
|
59%
|
57%
|
58%
|
|
|
Diesel fuels
|
33%
|
29%
|
32%
|
32%
|
|
|
Jet fuels
|
1%
|
4%
|
3%
|
2%
|
|
|
Fuel oil
|
5%
|
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)
|
22,910
|
22,600
|
25,870
|
24,900
|
|
|
Refinery throughput (2)
|
25,050
|
24,340
|
27,540
|
26,520
|
|
|
Refinery production (BPD)
(3)
|
24,290
|
24,370
|
27,020
|
25,750
|
|
|
Sales of produced refined
products (BPD)
|
26,480
|
26,320
|
27,810
|
26,870
|
|
|
Sales of refined products (BPD)
(4)
|
26,600
|
26,450
|
27,980
|
27,250
|
|
|
|
|
|
|
|
|
Refinery utilization (5)
|
73.9%
|
72.9%
|
83.5%
|
80.3%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(6)
|
|
|
|
|
|
|
Net sales
|
$ 95.99
|
$ 80.56
|
$ 94.26
|
$ 70.25
|
|
|
Cost of products (7)
|
80.33
|
70.46
|
75.54
|
58.98
|
|
|
Refinery gross margin
|
15.66
|
10.10
|
18.72
|
11.27
|
|
|
Refinery operating expenses
(8)
|
6.83
|
7.07
|
6.09
|
6.60
|
|
|
Net operating margin
|
$
8.83
|
$
3.03
|
$
12.63
|
$
4.67
|
|
|
|
|
|
|
|
|
Refinery operating expenses per
throughput barrel
|
$ 7.22
|
$ 7.65
|
$ 6.15
|
$ 6.69
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Heavy sour crude oil
|
6%
|
7%
|
6%
|
5%
|
|
|
Sweet crude oil
|
53%
|
57%
|
59%
|
62%
|
|
|
Black wax crude oil
|
33%
|
28%
|
30%
|
28%
|
|
|
Other feedstocks and
blends
|
8%
|
8%
|
5%
|
5%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
67%
|
62%
|
63%
|
64%
|
|
|
Diesel fuels
|
26%
|
27%
|
30%
|
28%
|
|
|
Jet fuels
|
1%
|
1%
|
1%
|
1%
|
|
|
Fuel oil
|
1%
|
3%
|
1%
|
3%
|
|
|
Asphalt
|
3%
|
3%
|
3%
|
2%
|
|
|
LPG and other
|
2%
|
4%
|
2%
|
2%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Tulsa Refinery
(9)
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
109,660
|
72,250
|
111,670
|
39,370
|
|
|
Refinery throughput (2)
|
110,230
|
72,810
|
113,100
|
39,520
|
|
|
Refinery production (BPD)
(3)
|
101,190
|
73,040
|
106,910
|
38,910
|
|
|
Sales of produced refined
products (BPD)
|
107,300
|
71,660
|
107,780
|
37,570
|
|
|
Sales of refined products (BPD)
(4)
|
107,630
|
71,660
|
108,330
|
37,700
|
|
|
|
|
|
|
|
|
Refinery utilization (5)
|
87.7%
|
85.0%
|
89.3%
|
74.0%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(6)
|
|
|
|
|
|
|
Net sales
|
$ 96.60
|
$ 81.30
|
$ 90.84
|
$ 78.89
|
|
|
Cost of products (7)
|
89.37
|
78.62
|
83.29
|
74.56
|
|
|
Refinery gross margin
|
7.23
|
2.68
|
7.55
|
4.33
|
|
|
Refinery operating expenses
(8)
|
4.47
|
5.77
|
4.94
|
5.25
|
|
|
Net operating margin
|
$
2.76
|
$
(3.09)
|
$
2.61
|
$
(0.92)
|
|
|
|
|
|
|
|
|
Refinery operating expenses per
throughput barrel
|
$ 4.35
|
$ 5.68
|
$ 4.71
|
$ 4.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
Years Ended
December 31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
3%
|
-%
|
5%
|
-%
|
|
|
Sweet crude oil
|
97%
|
99%
|
92%
|
100%
|
|
|
Heavy sour crude oil
|
-%
|
1%
|
3%
|
-%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
34%
|
29%
|
38%
|
26%
|
|
|
Diesel fuels
|
32%
|
28%
|
31%
|
29%
|
|
|
Jet fuels
|
8%
|
10%
|
8%
|
10%
|
|
|
Lubricants
|
11%
|
12%
|
11%
|
16%
|
|
|
Gas oil / intermediates
|
7%
|
18%
|
4%
|
17%
|
|
|
Asphalt
|
6%
|
1%
|
5%
|
-%
|
|
|
LPG and
other
|
2%
|
2%
|
3%
|
2%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
221,650
|
177,430
|
221,440
|
142,430
|
|
|
Refinery throughput (2)
|
235,350
|
192,130
|
234,910
|
154,940
|
|
|
Refinery production (BPD)
(3)
|
222,750
|
190,690
|
225,980
|
151,420
|
|
|
Sales of produced refined
products (BPD)
|
231,710
|
194,130
|
228,140
|
151,580
|
|
|
Sales of refined products (BPD)
(4)
|
235,970
|
197,170
|
232,100
|
155,820
|
|
|
|
|
|
|
|
|
Refinery utilization (5)
|
86.6%
|
77.4%
|
86.5%
|
78.9%
|
|
|
|
|
|
|
|
|
Average per produced barrel
(6)
|
|
|
|
|
|
|
Net sales
|
$ 95.51
|
$ 82.24
|
$ 91.06
|
$ 74.06
|
|
|
Cost of products (7)
|
87.64
|
78.57
|
82.27
|
66.85
|
|
|
Refinery gross margin
|
7.87
|
3.67
|
8.79
|
7.21
|
|
|
Refinery operating expenses
(8)
|
4.87
|
5.38
|
5.08
|
5.24
|
|
|
Net operating margin
|
$
3.00
|
$
(1.71)
|
$
3.71
|
$
1.97
|
|
|
|
|
|
|
|
|
Refinery operating expenses per
throughput barrel
|
$ 4.80
|
$
5.44
|
$ 4.94
|
$
5.12
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
Sour crude oil
|
32%
|
43%
|
35%
|
49%
|
|
|
Sweet crude oil
|
54%
|
47%
|
53%
|
40%
|
|
|
Black wax crude oil
|
4%
|
4%
|
3%
|
5%
|
|
|
Heavy sour crude oil
|
5%
|
-%
|
4%
|
-%
|
|
|
Other feedstocks and
blends
|
5%
|
6%
|
5%
|
6%
|
|
|
Total
|
100%
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
Sales of produced refined
products:
|
|
|
|
|
|
|
Gasolines
|
48%
|
48%
|
49%
|
51%
|
|
|
Diesel fuels
|
31%
|
29%
|
31%
|
31%
|
|
|
Jet fuels
|
5%
|
6%
|
5%
|
4%
|
|
|
Fuel oil
|
2%
|
2%
|
2%
|
2%
|
|
|
Asphalt
|
4%
|
1%
|
3%
|
2%
|
|
|
Lubricants
|
5%
|
5%
|
5%
|
4%
|
|
|
Gas oil / intermediates
|
3%
|
7%
|
2%
|
4%
|
|
|
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 throughput
represents the barrels per day of crude and other refinery
feedstocks input to the crude units and other conversion units at
our refinery.
|
|
|
(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. Refinery
production excludes fuel produced for refinery
consumption.
|
|
|
(4) Includes refined products
purchased for resale.
|
|
|
(5) 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.
|
|
|
(6) Represents average per
barrel amount for produced refined products sold, which is a
non-GAAP measure. Reconciliations to amounts reported under
GAAP are provided under "Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles" below.
|
|
|
(7) Transportation, terminal and
refinery storage costs billed from HEP are included in cost of
products.
|
|
|
(8) Represents operating
expenses of our refineries, exclusive of depreciation and
amortization.
|
|
|
(9) The amounts reported for the
Tulsa refinery for the year ended December 31, 2009 include crude
oil processed and products yielded from the refinery for the period
from June 1, 2009 through December 31, 2009 only, and averaged over
the 365 days for the year ended. Operating data for the
periods from June 1, 2009 through December 31, 2009 and from
December 1, 2009 though December 31, 2009 is as follows:
|
|
|
|
|
|
Tulsa
Refinery
|
Period From
June
1, 2009
Through
December 31,
2009
|
Period From
December 1,
2009 Through
December 31,
2009
|
|
|
|
|
|
|
Crude charge (BPD)
|
67,160
|
93,810
|
|
|
Refinery production
(BPD)
|
66,360
|
99,810
|
|
|
Sales of produced refined
products (BPD)
|
64,080
|
96,170
|
|
|
Sales of refined products
(BPD)
|
64,300
|
96,170
|
|
|
|
|
|
|
Refinery
utilization
|
74%
|
75%
|
|
|
|
|
|
|
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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$ 24,249
|
$ (35,846)
|
$ 133,051
|
$ 36,343
|
|
|
Subtract noncontrolling interest
in income from continuing
operations
|
(9,530)
|
(7,959)
|
(29,087)
|
(21,134)
|
|
|
Add income
tax provision
|
4,836
|
(27,208)
|
59,312
|
7,460
|
|
|
Add interest
expense
|
18,083
|
14,497
|
74,196
|
40,346
|
|
|
Subtract
interest income
|
(410)
|
(2,484)
|
(1,168)
|
(5,045)
|
|
|
Add
depreciation and amortization
|
31,810
|
29,384
|
117,529
|
98,751
|
|
|
EBITDA from continuing
operations
|
$
69,038
|
$
(29,616)
|
$
353,833
|
$
156,721
|
|
|
|
|
|
|
|
|
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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Average per produced
barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Net
sales
|
$ 94.18
|
$ 83.40
|
$ 90.37
|
$ 73.15
|
|
|
Less cost of
products
|
87.74
|
80.75
|
83.12
|
65.95
|
|
|
Refinery
gross margin
|
$
6.44
|
$
2.65
|
$
7.25
|
$
7.20
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Net
sales
|
$ 95.99
|
$ 80.56
|
$ 94.26
|
$ 70.25
|
|
|
Less cost of
products
|
80.33
|
70.46
|
75.54
|
58.98
|
|
|
Refinery
gross margin
|
$
15.66
|
$
10.10
|
$
18.72
|
$
11.27
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Net
sales
|
$ 96.60
|
$ 81.30
|
$ 90.84
|
$ 78.89
|
|
|
Less cost of
products
|
89.37
|
78.62
|
83.29
|
74.56
|
|
|
Refinery
gross margin
|
$
7.23
|
$
2.68
|
$
7.55
|
$
4.33
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Net
sales
|
$ 95.51
|
$ 82.24
|
$ 91.06
|
$ 74.06
|
|
|
Less cost of
products
|
87.64
|
78.57
|
82.27
|
66.85
|
|
|
Refinery
gross margin
|
$
7.87
|
$
3.67
|
$
8.79
|
$
7.21
|
|
|
|
|
|
|
|
|
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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Average per produced
barrel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 6.44
|
$ 2.65
|
$ 7.25
|
$ 7.20
|
|
|
Less
refinery operating expenses
|
4.78
|
4.63
|
4.95
|
4.81
|
|
|
Net
operating margin
|
$
1.66
|
$
(1.98)
|
$
2.30
|
$
2.39
|
|
|
|
|
|
|
|
|
Three Months Ended
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 15.66
|
$ 10.10
|
$ 18.72
|
$ 11.27
|
|
|
Less
refinery operating expenses
|
6.83
|
7.07
|
6.09
|
6.60
|
|
|
Net
operating margin
|
$
8.83
|
$
3.03
|
$
12.63
|
$
4.67
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 7.23
|
$ 2.68
|
$ 7.55
|
$ 4.33
|
|
|
Less
refinery operating expenses
|
4.47
|
5.77
|
4.94
|
5.25
|
|
|
Net
operating margin
|
$
2.76
|
$
(3.09)
|
$
2.61
|
$
(0.92)
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Refinery
gross margin
|
$ 7.87
|
$ 3.67
|
$ 8.79
|
$ 7.21
|
|
|
Less
refinery operating expenses
|
4.87
|
5.38
|
5.08
|
5.24
|
|
|
Net
operating margin
|
$
3.00
|
$
(1.71)
|
$
3.71
|
$
1.97
|
|
|
|
|
|
|
|
|
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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 94.18
|
$ 83.40
|
$ 90.37
|
$ 73.15
|
|
|
Times sales of produced
refined products sold (BPD)
|
97,930
|
96,150
|
92,550
|
87,140
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
848,520
|
$
737,740
|
$
3,052,766
|
$
2,326,616
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 95.99
|
$ 80.56
|
$ 94.26
|
$ 70.25
|
|
|
Times sales of produced
refined products sold (BPD)
|
26,480
|
26,320
|
27,810
|
26,870
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
233,847
|
$
195,071
|
$
956,800
|
$
688,980
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 96.60
|
$ 81.30
|
$ 90.84
|
$ 78.89
|
|
|
Times sales of produced
refined products sold (BPD)
|
107,300
|
71,660
|
107,780
|
37,570
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
953,597
|
$
535,988
|
$3,573,618
|
$
1,081,823
|
|
|
|
|
|
|
|
|
Sum of refined product
sales from produced products sold from our three refineries
(1)
|
$ 2,035,964
|
$ 1,468,799
|
$7,583,184
|
$4,097,419
|
|
|
Add refined product sales
from purchased products and rounding (2)
|
37,211
|
23,285
|
130,348
|
106,969
|
|
|
Total refined product
sales
|
2,073,175
|
1,492,084
|
7,713,532
|
4,204,388
|
|
|
Add direct sales of excess
crude oil (3)
|
104,362
|
133,542
|
459,743
|
453,958
|
|
|
Add other refining segment
revenue (4)
|
23,220
|
28,178
|
113,725
|
131,475
|
|
|
Total refining segment
revenue
|
2,200,757
|
1,653,804
|
8,287,000
|
4,789,821
|
|
|
Add HEP segment sales and
other revenues
|
49,384
|
38,425
|
182,114
|
146,561
|
|
|
Add corporate and other
revenues
|
98
|
(1,059)
|
415
|
(636)
|
|
|
Subtract consolidations
and eliminations
|
(38,448)
|
(29,201)
|
(146,600)
|
(101,478)
|
|
|
Sales and other
revenues
|
$
2,211,791
|
$
1,661,969
|
$8,322,929
|
$4,834,268
|
|
|
|
|
|
|
|
|
|
|
|
(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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Average sales price per
produced barrel sold
|
$ 95.51
|
$ 82.24
|
$ 91.06
|
$ 74.06
|
|
|
Times sales of produced
refined products sold (BPD)
|
231,710
|
194,130
|
228,140
|
151,580
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
2,035,964
|
$
1,468,799
|
$
7,583,184
|
$
4,097,419
|
|
|
|
|
|
|
|
|
Reconciliation of average cost of products per produced barrel
sold to total cost of products sold
|
|
|
Three Months Ended
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Average cost of products
per produced barrel sold
|
$ 87.74
|
$ 80.75
|
$ 83.12
|
$ 65.95
|
|
|
Times sales of produced
refined products sold (BPD)
|
97,930
|
96,150
|
92,550
|
87,140
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Cost of products for
produced products sold
|
$
790,499
|
$
714,298
|
$
2,807,856
|
$
2,097,612
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Average cost of products
per produced barrel sold
|
$ 80.33
|
$ 70.46
|
$ 75.54
|
$ 58.98
|
|
|
Times sales of produced
refined products sold (BPD)
|
26,480
|
26,320
|
27,810
|
26,870
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Cost of products for
produced products sold
|
$
195,697
|
$
170,615
|
$
766,780
|
$
578,449
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Average cost of products
per produced barrel sold
|
$
89.37
|
$
78.62
|
$ 83.29
|
$ 74.56
|
|
|
Times sales of produced
refined products sold (BPD)
|
107,300
|
71,660
|
107,780
|
37,570
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Cost of products for
produced products sold
|
$
882,225
|
$
518,320
|
$
3,276,604
|
$
1,022,445
|
|
|
|
|
|
|
|
|
Sum of cost of products for
produced products sold from our three refineries (1)
|
$1,868,421
|
$1,403,233
|
$6,851,240
|
$ 3,698,506
|
|
|
Add refined product costs from
purchased products sold and rounding (2)
|
36,734
|
26,489
|
131,141
|
114,650
|
|
|
Total refined cost of products
sold
|
1,905,155
|
1,429,722
|
6,982,381
|
3,813,156
|
|
|
Add crude oil cost of direct
sales of excess crude oil (3)
|
102,923
|
131,534
|
454,566
|
449,488
|
|
|
Add other refining segment cost
of products sold (4)
|
17,517
|
18,403
|
73,410
|
75,229
|
|
|
Total refining segment cost of
products sold
|
2,025,595
|
1,579,659
|
7,510,357
|
4,337,873
|
|
|
Subtract consolidations and
eliminations
|
(37,566)
|
(28,669)
|
(143,208)
|
(99,865)
|
|
|
Costs of products sold
(exclusive of depreciation and amortization)
|
$
1,988,029
|
$
1,550,990
|
$
7,367,149
|
$
4,238,008
|
|
|
|
|
|
|
|
(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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Average cost of
products per produced barrel sold
|
$ 87.64
|
$ 78.57
|
$ 82.27
|
$ 66.85
|
|
|
Times sales of
produced refined products sold (BPD)
|
231,710
|
194,130
|
228,140
|
151,580
|
|
|
Times number of days
in period
|
92
|
92
|
365
|
365
|
|
|
Cost of products for
produced products sold
|
$
1,868,421
|
$
1,403,233
|
$
6,851,240
|
$
3,698,506
|
|
|
|
|
|
|
|
|
Reconciliation of average refinery operating expenses per
produced barrel sold to total operating expenses
|
|
|
Three Months Ended
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Average refinery operating
expenses per produced barrel sold
|
$ 4.78
|
$ 4.63
|
$ 4.95
|
$ 4.81
|
|
|
Times sales of produced
refined products sold (BPD)
|
97,930
|
96,150
|
92,550
|
87,140
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refinery operating
expenses for produced products sold
|
$
43,066
|
$
40,956
|
$
167,215
|
$
152,987
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Average refinery operating
expenses per produced barrel sold
|
$ 6.83
|
$ 7.07
|
$ 6.09
|
$ 6.60
|
|
|
Times sales of produced
refined products sold (BPD)
|
26,480
|
26,320
|
27,810
|
26,870
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refinery operating
expenses for produced products sold
|
$
16,639
|
$
17,120
|
$
61,817
|
$
64,730
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Average refinery operating
expenses per produced barrel sold
|
$ 4.47
|
$ 5.77
|
$ 4.94
|
$ 5.25
|
|
|
Times sales of produced
refined products sold (BPD)
|
107,300
|
71,660
|
107,780
|
37,570
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refinery operating
expenses for produced products sold
|
$
44,126
|
$
38,040
|
$
194,338
|
$
71,994
|
|
|
|
|
|
|
|
|
Sum of refinery operating
expenses per produced products sold from our three refineries
(1)
|
$ 103,831
|
$ 96,116
|
$ 423,370
|
$ 289,711
|
|
|
Add other refining segment
operating expenses and rounding (2)
|
6,957
|
7,414
|
26,220
|
23,609
|
|
|
Total refining segment
operating expenses
|
110,788
|
103,529
|
449,590
|
313,320
|
|
|
Add HEP segment operating
expenses
|
12,760
|
11,928
|
52,947
|
44,003
|
|
|
Add corporate and other
costs
|
2,363
|
7
|
2,387
|
41
|
|
|
Subtract consolidations
and eliminations
|
(135)
|
(127)
|
(510)
|
(509)
|
|
|
Operating expenses (exclusive of
depreciation and amortization)
|
$
125,776
|
$
115,337
|
$
504,414
|
$
356,855
|
|
|
|
|
|
|
|
|
|
(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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Average refinery
operating expenses per produced barrel
sold sold
|
$ 4.87
|
$ 5.38
|
$ 5.08
|
$ 5.24
|
|
|
Times sales of
produced refined products sold (BPD)
|
231,710
|
194,130
|
228,140
|
151,580
|
|
|
Times number of days
in period
|
92
|
92
|
365
|
365
|
|
|
Refinery operating
expenses for produced products sold
|
$
103,831
|
$
96,116
|
$
423,370
|
$
289,711
|
|
|
|
|
|
|
|
|
Reconciliation of net operating margin per barrel to refinery
gross margin per barrel to total sales and other revenues
|
|
|
Three Months Ended
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
Navajo
Refinery
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 1.66
|
$ (1.98)
|
$ 2.30
|
$ 2.39
|
|
|
Add average refinery
operating expenses per produced barrel
|
4.78
|
4.63
|
4.95
|
4.81
|
|
|
Refinery gross margin per
barrel
|
6.44
|
2.65
|
7.25
|
7.20
|
|
|
Add average cost of
products per produced barrel sold
|
87.74
|
80.75
|
83.12
|
65.95
|
|
|
Average sales price per
produced barrel sold
|
$ 94.18
|
$ 83.40
|
$ 90.37
|
$ 73.15
|
|
|
Times sales of produced
refined products sold (BPD)
|
97,930
|
96,150
|
92,550
|
87,140
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
848,520
|
$
737,740
|
$
3,052,766
|
$
2,326,616
|
|
|
|
|
|
|
|
|
Woods Cross
Refinery
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 8.83
|
$ 3.03
|
$ 12.63
|
$ 4.67
|
|
|
Add average refinery
operating expenses per produced barrel
|
6.83
|
7.07
|
6.09
|
6.60
|
|
|
Refinery gross margin per
barrel
|
15.66
|
10.10
|
18.72
|
11.27
|
|
|
Add average cost of
products per produced barrel sold
|
80.33
|
70.46
|
75.54
|
58.98
|
|
|
Average sales price per
produced barrel sold
|
$ 95.99
|
$ 80.56
|
$ 94.26
|
$ 70.25
|
|
|
Times sales of produced
refined products sold (BPD)
|
26,480
|
26,320
|
27,810
|
26,870
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
233,847
|
$
195,071
|
$
956,800
|
$
688,980
|
|
|
|
|
|
|
|
|
Tulsa
Refinery
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 2.76
|
$ (3.09)
|
$ 2.61
|
$
(0.92)
|
|
|
Add average refinery
operating expenses per produced barrel
|
4.47
|
5.77
|
4.94
|
5.25
|
|
|
Refinery gross margin per
barrel
|
7.23
|
2.68
|
7.55
|
4.33
|
|
|
Add average cost of
products per produced barrel sold
|
89.37
|
78.62
|
83.29
|
74.56
|
|
|
Average sales price per
produced barrel sold
|
$ 96.60
|
$ 81.30
|
$ 90.84
|
$ 78.89
|
|
|
Times sales of produced
refined products sold (BPD)
|
107,300
|
71,660
|
107,780
|
37,570
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
953,597
|
$
535,988
|
$
3,573,618
|
$
1,081,823
|
|
|
|
|
|
|
|
|
Sum of refined product sales
from produced products sold from our three refineries
(1)
|
$ 2,035,964
|
$ 1,468,799
|
$ 7,583,184
|
$ 4,097,419
|
|
|
Add refined product sales
from purchased products and rounding (2)
|
37,211
|
23,285
|
130,348
|
106,969
|
|
|
Total refined product
sales
|
2,073,175
|
1,492,084
|
7,713,532
|
4,204,388
|
|
|
Add direct sales of excess
crude oil (3)
|
104,362
|
133,542
|
459,743
|
453,958
|
|
|
Add other refining segment
revenue (4)
|
23,220
|
28,178
|
113,725
|
131,475
|
|
|
Total refining segment
revenue
|
2,200,757
|
1,653,804
|
8,287,000
|
4,789,821
|
|
|
Add HEP segment sales and
other revenues
|
49,384
|
38,425
|
182,114
|
146,561
|
|
|
Add corporate and other
revenues
|
98
|
(1,059)
|
415
|
(636)
|
|
|
Subtract consolidations
and eliminations
|
(38,448)
|
(29,201)
|
(146,600)
|
(101,478)
|
|
|
Sales and other
revenues
|
$
2,211,791
|
$
1,661,969
|
$
8,322,929
|
$
4,834,268
|
|
|
|
|
|
|
|
|
|
(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
December
31,
|
Years Ended
December
31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
(Dollars in
thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
Net operating margin per
barrel
|
$ 3.00
|
$
(1.71)
|
$ 3.71
|
$ 1.97
|
|
|
Add average refinery
operating expenses per produced barrel
|
4.87
|
5.38
|
5.08
|
5.24
|
|
|
Refinery gross margin per
barrel
|
7.87
|
3.67
|
8.79
|
7.21
|
|
|
Add average cost of
products per produced barrel sold
|
87.64
|
78.57
|
82.27
|
66.85
|
|
|
Average sales price per
produced barrel sold
|
$ 95.51
|
$ 82.24
|
$ 91.06
|
$ 74.06
|
|
|
Times sales of produced
refined products sold (BPD)
|
231,710
|
194,130
|
228,140
|
151,580
|
|
|
Times number of days in
period
|
92
|
92
|
365
|
365
|
|
|
Refined product sales from
produced products sold
|
$
2,035,964
|
$
1,468,799
|
$7,583,184
|
$4,097,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Holly Corporation