DALLAS--(BUSINESS WIRE)--
HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”)
today reported second quarter net income attributable to HollyFrontier
stockholders of $57.8 million or $0.33 per diluted share for the quarter
ended June 30, 2017, compared to net loss of $(409.4) million or $(2.33)
per diluted share for the quarter ended June 30, 2016.
The second quarter included several special items that together reduced
net income by a total of $58.2 million. On a pre-tax basis, these items
included a lower of cost or market inventory valuation charge of $84.0
million, long-lived asset impairment charges of $23.2 million,
incremental cost of products sold attributable to our Petro-Canada
Lubricants Inc. (“PCLI”) inventory value step-up of $5.1 million and
PCLI integration costs totaling $3.7 million, partially offset by a
$30.5 million reduction to RINs costs as a result of our Cheyenne
refinery's small refinery exemption.
Excluding these items, net income for the current quarter was $116.1
million ($0.66 per diluted share) compared to $49.0 million ($0.28 per
diluted share) for the same period of 2016, which excludes net after-tax
charges totaling $458.4 million. Special items for the second quarter of
2016 included pre-tax goodwill and asset impairment charges of $654.1
million that was partially offset by a lower of cost or market inventory
valuation adjustment of $138.5 million. Adjusted for these items, the
increase in net income for the current quarter was principally driven by
higher product sales volumes and margins combined with earnings
attributable to our recently acquired PCLI operations totaling $12.7
million. For the current quarter, production levels averaged
approximately 483,000 barrels per day (“BPD”) and crude oil charges
averaged 467,000 BPD. On a per barrel basis, consolidated refinery gross
margin was $11.47 per produced barrel, a 29% increase compared to $8.88
for the second quarter of 2016. Total operating expenses for the quarter
were $315.7 million compared to $251.3 million for the second quarter of
last year and include $52.7 million in costs attributable to our PCLI
operations.
HollyFrontier’s President & CEO, George Damiris, commented, “Excellent
operational performance, margin improvement and our PCLI operations
contributed to stronger earnings for the second quarter of 2017. Thanks
to the efforts of HollyFrontier employees, our refining segment reached
a new quarterly production record, which drove operating and free cash
flow. With no major planned downtime until November, our refineries
remain well positioned for strong operational and financial performance
for the remainder of the year.”
For the second quarter of 2017, net cash provided by operations totaled
$512.8 million. During the period, we declared and paid a dividend of
$0.33 per share to shareholders totaling $58.8 million. At June 30,
2017, our cash and cash equivalents totaled $460.3 million, a $330.8
million increase over cash and cash equivalents of $129.5 million at
March 31, 2017. Additionally, our consolidated debt was $2,228.0
million. Our debt, exclusive of Holly Energy Partners' debt, which is
nonrecourse to HollyFrontier, was $991.2 million at June 30, 2017.
HollyFrontier also announced today that its Board of Directors declared
a regular quarterly dividend of $0.33 per share. The dividend will be
paid on September 20, 2017 to holders of record of common stock on
August 23, 2017.
The Company has scheduled a webcast conference call for today, August 2,
2017, at 8:30 AM Eastern Time to discuss second quarter financial
results. This webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1154338&tp_key=25e3e5850f.
An audio archive of this webcast will be available using the above noted
link through August 16, 2017.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an
independent petroleum refiner and marketer that produces high-value
light products such as gasoline, diesel fuel, jet fuel and other
specialty products. HollyFrontier operates through its subsidiaries a
135,000 barrels per stream day (“BPSD”) refinery located in El Dorado,
Kansas, two refinery facilities with a combined capacity of 125,000 BPSD
located in Tulsa, Oklahoma, a 100,000 BPSD refinery located in Artesia,
New Mexico, a 52,000 BPSD refinery located in Cheyenne, Wyoming and a
45,000 BPSD refinery in Woods Cross, Utah. HollyFrontier markets its
refined products principally in the Southwest U.S., the Rocky Mountains
extending into the Pacific Northwest and in other neighboring Plains
states. In addition, HollyFrontier, through its subsidiary, owns
Petro-Canada Lubricants Inc., whose Mississauga, Ontario facility
produces 15,600 barrels per day of base oils and other specialized
lubricant products, and also owns a 36% interest (including the 2%
general partner interest) in Holly Energy Partners, L.P.
The following is a “safe harbor” statement under the Private Securities
Litigation Reform Act of 1995: The statements in this press release
relating to matters that are not historical facts are “forward-looking
statements” based on management’s beliefs and assumptions using
currently available information and expectations as of the date hereof,
are not guarantees of future performance and involve certain risks and
uncertainties, including those contained in our filings with the
Securities and Exchange Commission. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable, we cannot assure you that our expectations will prove
correct. Therefore, actual outcomes and results could materially differ
from what is expressed, implied or forecast in such statements. Any
differences could be caused by a number of factors, including, but not
limited to, risks and uncertainties with respect to the actions of
actual or potential competitive suppliers of refined petroleum products
in the Company’s markets, the demand for and supply of crude oil and
refined products, the spread between market prices for refined products
and market prices for crude oil, the possibility of constraints on the
transportation of refined products, the possibility of inefficiencies,
curtailments or shutdowns in refinery operations or pipelines, effects
of governmental and environmental regulations and policies, the
availability and cost of financing to the Company, the effectiveness of
the Company’s capital investments and marketing strategies, the
Company’s efficiency in carrying out construction projects, the ability
of the Company to acquire refined product operations or pipeline and
terminal operations on acceptable terms and to integrate any recent and
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
June 30,
|
|
|
|
Change from 2016
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Change
|
|
|
Percent
|
|
|
|
|
(In thousands, except per share data)
|
|
Sales and other revenues
|
|
|
$
|
3,458,864
|
|
|
|
$
|
2,714,638
|
|
|
|
|
$
|
744,226
|
|
|
|
27
|
%
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (exclusive of lower of cost or market
inventory valuation adjustment)
|
|
|
|
2,753,440
|
|
|
|
|
2,248,155
|
|
|
|
|
|
505,285
|
|
|
|
22
|
|
|
Lower of cost or market inventory valuation adjustment
|
|
|
|
83,982
|
|
|
|
|
(138,473
|
)
|
|
|
|
|
222,455
|
|
|
|
(161
|
)
|
|
|
|
|
|
2,837,422
|
|
|
|
|
2,109,682
|
|
|
|
|
|
727,740
|
|
|
|
34
|
|
|
Operating expenses
|
|
|
|
315,652
|
|
|
|
|
251,336
|
|
|
|
|
|
64,316
|
|
|
|
26
|
|
|
General and administrative expenses
|
|
|
|
59,576
|
|
|
|
|
29,655
|
|
|
|
|
|
29,921
|
|
|
|
101
|
|
|
Depreciation and amortization
|
|
|
|
105,282
|
|
|
|
|
90,423
|
|
|
|
|
|
14,859
|
|
|
|
16
|
|
|
Goodwill and asset impairment
|
|
|
|
19,247
|
|
|
|
|
654,084
|
|
|
|
|
|
(634,837
|
)
|
|
|
(97
|
)
|
|
Total operating costs and expenses
|
|
|
|
3,337,179
|
|
|
|
|
3,135,180
|
|
|
|
|
|
201,999
|
|
|
|
6
|
|
|
Income (loss) from operations
|
|
|
|
121,685
|
|
|
|
|
(420,542
|
)
|
|
|
|
|
542,227
|
|
|
|
(129
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings of equity method investments
|
|
|
|
4,053
|
|
|
|
|
3,623
|
|
|
|
|
|
430
|
|
|
|
12
|
|
|
Interest income
|
|
|
|
176
|
|
|
|
|
527
|
|
|
|
|
|
(351
|
)
|
|
|
(67
|
)
|
|
Interest expense
|
|
|
|
(29,645
|
)
|
|
|
|
(14,251
|
)
|
|
|
|
|
(15,394
|
)
|
|
|
108
|
|
|
Gain on foreign currency transactions
|
|
|
|
10,328
|
|
|
|
|
—
|
|
|
|
|
|
10,328
|
|
|
|
—
|
|
|
Other, net
|
|
|
|
(528
|
)
|
|
|
|
128
|
|
|
|
|
|
(656
|
)
|
|
|
(513
|
)
|
|
|
|
|
|
(15,616
|
)
|
|
|
|
(9,973
|
)
|
|
|
|
|
(5,643
|
)
|
|
|
57
|
|
|
Income (loss) before income taxes
|
|
|
|
106,069
|
|
|
|
|
(430,515
|
)
|
|
|
|
|
536,584
|
|
|
|
(125
|
)
|
|
Income tax expense (benefit)
|
|
|
|
31,996
|
|
|
|
|
(38,045
|
)
|
|
|
|
|
70,041
|
|
|
|
(184
|
)
|
|
Net income (loss)
|
|
|
|
74,073
|
|
|
|
|
(392,470
|
)
|
|
|
|
|
466,543
|
|
|
|
(119
|
)
|
|
Less net income attributable to noncontrolling interest
|
|
|
|
16,306
|
|
|
|
|
16,898
|
|
|
|
|
|
(592
|
)
|
|
|
(4
|
)
|
|
Net income (loss) attributable to HollyFrontier stockholders
|
|
|
$
|
57,767
|
|
|
|
$
|
(409,368
|
)
|
|
|
|
$
|
467,135
|
|
|
|
(114
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to HollyFrontier
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.33
|
|
|
|
$
|
(2.33
|
)
|
|
|
|
$
|
2.66
|
|
|
|
(114
|
)%
|
|
Diluted
|
|
|
$
|
0.33
|
|
|
|
$
|
(2.33
|
)
|
|
|
|
$
|
2.66
|
|
|
|
(114
|
)%
|
|
Cash dividends declared per common share
|
|
|
$
|
0.33
|
|
|
|
$
|
0.33
|
|
|
|
|
$
|
—
|
|
|
|
—
|
%
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
176,147
|
|
|
|
|
175,865
|
|
|
|
|
|
282
|
|
|
|
—
|
%
|
|
Diluted
|
|
|
|
176,302
|
|
|
|
|
175,865
|
|
|
|
|
|
437
|
|
|
|
—
|
%
|
|
EBITDA
|
|
|
$
|
224,514
|
|
|
|
$
|
(343,266
|
)
|
|
|
|
$
|
567,780
|
|
|
|
(165
|
)%
|
|
Adjusted EBITDA
|
|
|
$
|
306,069
|
|
|
|
$
|
172,345
|
|
|
|
|
$
|
133,724
|
|
|
|
78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
Change from 2016
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Change
|
|
|
Percent
|
|
|
|
|
(In thousands, except per share data)
|
|
Sales and other revenues
|
|
|
$
|
6,539,347
|
|
|
|
$
|
4,733,362
|
|
|
|
|
$
|
1,805,985
|
|
|
|
38
|
%
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (exclusive of lower of cost or market
inventory valuation adjustment)
|
|
|
|
5,394,597
|
|
|
|
|
3,873,318
|
|
|
|
|
|
1,521,279
|
|
|
|
39
|
|
|
Lower of cost or market inventory valuation adjustment
|
|
|
|
95,805
|
|
|
|
|
(194,594
|
)
|
|
|
|
|
290,399
|
|
|
|
(149
|
)
|
|
|
|
|
|
5,490,402
|
|
|
|
|
3,678,724
|
|
|
|
|
|
1,811,678
|
|
|
|
49
|
|
|
Operating expenses
|
|
|
|
622,769
|
|
|
|
|
503,919
|
|
|
|
|
|
118,850
|
|
|
|
24
|
|
|
General and administrative expenses
|
|
|
|
116,646
|
|
|
|
|
55,276
|
|
|
|
|
|
61,370
|
|
|
|
111
|
|
|
Depreciation and amortization
|
|
|
|
201,322
|
|
|
|
|
178,303
|
|
|
|
|
|
23,019
|
|
|
|
13
|
|
|
Goodwill and asset impairment
|
|
|
|
19,247
|
|
|
|
|
654,084
|
|
|
|
|
|
(634,837
|
)
|
|
|
(97
|
)
|
|
Total operating costs and expenses
|
|
|
|
6,450,386
|
|
|
|
|
5,070,306
|
|
|
|
|
|
1,380,080
|
|
|
|
27
|
|
|
Income (loss) from operations
|
|
|
|
88,961
|
|
|
|
|
(336,944
|
)
|
|
|
|
|
425,905
|
|
|
|
(126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings of equity method investments
|
|
|
|
5,893
|
|
|
|
|
6,388
|
|
|
|
|
|
(495
|
)
|
|
|
(8
|
)
|
|
Interest income
|
|
|
|
995
|
|
|
|
|
602
|
|
|
|
|
|
393
|
|
|
|
65
|
|
|
Interest expense
|
|
|
|
(56,803
|
)
|
|
|
|
(26,338
|
)
|
|
|
|
|
(30,465
|
)
|
|
|
116
|
|
|
Loss on early extinguishment of debt
|
|
|
|
(12,225
|
)
|
|
|
|
(8,718
|
)
|
|
|
|
|
(3,507
|
)
|
|
|
40
|
|
|
Gain on foreign currency swaps
|
|
|
|
24,545
|
|
|
|
|
—
|
|
|
|
|
|
24,545
|
|
|
|
—
|
|
|
Loss on foreign currency transactions
|
|
|
|
395
|
|
|
|
|
—
|
|
|
|
|
|
395
|
|
|
|
—
|
|
|
Other, net
|
|
|
|
(263
|
)
|
|
|
|
193
|
|
|
|
|
|
(456
|
)
|
|
|
(236
|
)
|
|
|
|
|
|
(37,463
|
)
|
|
|
|
(27,873
|
)
|
|
|
|
|
(9,590
|
)
|
|
|
34
|
|
|
Income (loss) before income taxes
|
|
|
|
51,498
|
|
|
|
|
(364,817
|
)
|
|
|
|
|
416,315
|
|
|
|
(114
|
)
|
|
Income tax expense (benefit)
|
|
|
|
15,207
|
|
|
|
|
(15,737
|
)
|
|
|
|
|
30,944
|
|
|
|
(197
|
)
|
|
Net income (loss)
|
|
|
|
36,291
|
|
|
|
|
(349,080
|
)
|
|
|
|
|
385,371
|
|
|
|
(110
|
)
|
|
Less net income attributable to noncontrolling interest
|
|
|
|
23,992
|
|
|
|
|
39,035
|
|
|
|
|
|
(15,043
|
)
|
|
|
(39
|
)
|
|
Net income (loss) attributable to HollyFrontier stockholders
|
|
|
$
|
12,299
|
|
|
|
$
|
(388,115
|
)
|
|
|
|
$
|
400,414
|
|
|
|
(103
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to HollyFrontier
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.07
|
|
|
|
$
|
(2.20
|
)
|
|
|
|
$
|
2.27
|
|
|
|
(103
|
)%
|
|
Diluted
|
|
|
$
|
0.07
|
|
|
|
$
|
(2.20
|
)
|
|
|
|
$
|
2.27
|
|
|
|
(103
|
)%
|
|
Cash dividends declared per common share
|
|
|
$
|
0.66
|
|
|
|
$
|
0.66
|
|
|
|
|
$
|
—
|
|
|
|
—
|
%
|
|
Average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
176,141
|
|
|
|
|
176,301
|
|
|
|
|
|
(160
|
)
|
|
|
—
|
%
|
|
Diluted
|
|
|
|
176,490
|
|
|
|
|
176,301
|
|
|
|
|
|
189
|
|
|
|
—
|
%
|
|
EBITDA
|
|
|
$
|
296,861
|
|
|
|
$
|
(191,095
|
)
|
|
|
|
$
|
487,956
|
|
|
|
(255
|
)%
|
|
Adjusted EBITDA
|
|
|
$
|
391,529
|
|
|
|
$
|
268,395
|
|
|
|
|
$
|
123,134
|
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(In thousands)
|
|
Cash, cash equivalents and total investments in marketable securities
|
|
|
$
|
460,326
|
|
|
$
|
1,134,727
|
|
Working capital
|
|
|
$
|
1,073,315
|
|
|
$
|
1,767,780
|
|
Total assets
|
|
|
$
|
9,643,035
|
|
|
$
|
9,435,661
|
|
Long-term debt
|
|
|
$
|
2,227,951
|
|
|
$
|
2,235,137
|
|
Total equity
|
|
|
$
|
5,242,084
|
|
|
$
|
5,301,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information
Our operations are organized into three reportable segments, Refining,
PCLI and HEP. Our operations that are not included in the Refining, PCLI
and HEP segments are included in Corporate and Other. Intersegment
transactions are eliminated in our consolidated financial statements and
are included in Consolidations and Eliminations. The Refining segment
includes the operations of our El Dorado, Tulsa, Navajo, Cheyenne and
Woods Cross refineries and HFC Asphalt (aggregated as a reportable
segment). Refining activities involve the purchase and refining of crude
oil and wholesale and branded marketing of refined products, such as
gasoline, diesel fuel and jet fuel. These petroleum products are
primarily marketed in the Mid-Continent, Southwest and Rocky Mountain
regions of the United States. Additionally, the Refining segment
includes specialty lubricant products produced at our Tulsa refineries
that are marketed throughout North America and are distributed in
Central and South America. HFC Asphalt operates various asphalt
terminals in Arizona, New Mexico and Oklahoma.
On February 1, 2017, we acquired PCLI, a Canadian-based producer of
lubricant products such as base oils, white oils, specialty products and
finished lubricants. The PCLI segment involves production operations,
located in Mississauga, Ontario, and marketing of its products to both
retail and wholesale outlets through a global sales network with
locations in Canada, the United States, Europe and China.
The HEP segment involves all of the operations of HEP, a consolidated
variable interest entity, which owns and operates logistics assets
consisting of petroleum product and crude oil pipelines, terminals,
tankage, loading rack facilities and refinery process units in the
Mid-Continent, Southwest and Rocky Mountain regions of the United
States. The HEP segment also includes a 75% interest in the UNEV
Pipeline (an HEP consolidated subsidiary), a 50% ownership interest in
each of the Frontier Pipeline, Osage Pipeline and the Cheyenne Pipeline
and a 25% ownership interest in SLC Pipeline. Revenues from the HEP
segment are earned through transactions with unaffiliated parties for
pipeline transportation, rental and terminalling operations as well as
revenues relating to pipeline transportation services provided for our
refining operations. Due to certain basis differences, our reported
amounts for the HEP segment may not agree to amounts reported in HEP's
periodic public filings.
|
|
|
|
Refining
|
|
|
PCLI
|
|
|
HEP
|
|
|
Corporate
and Other
|
|
|
Consolidations
and
Eliminations
|
|
|
Consolidated
Total
|
|
|
|
|
(In thousands)
|
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
3,141,137
|
|
|
|
$
|
309,566
|
|
|
$
|
109,143
|
|
|
$
|
15
|
|
|
|
$
|
(100,997
|
)
|
|
|
$
|
3,458,864
|
|
|
Operating expenses
|
|
|
$
|
245,265
|
|
|
|
$
|
52,652
|
|
|
$
|
34,097
|
|
|
$
|
1,322
|
|
|
|
$
|
(17,684
|
)
|
|
|
$
|
315,652
|
|
|
Depreciation and amortization
|
|
|
$
|
75,656
|
|
|
|
$
|
7,302
|
|
|
$
|
19,541
|
|
|
$
|
2,990
|
|
|
|
$
|
(207
|
)
|
|
|
$
|
105,282
|
|
|
Income (loss) from operations
|
|
|
$
|
86,603
|
|
|
|
$
|
17,511
|
|
|
$
|
52,890
|
|
|
$
|
(34,746
|
)
|
|
|
$
|
(573
|
)
|
|
|
$
|
121,685
|
|
|
Net income (loss)
|
|
|
$
|
86,603
|
|
|
|
$
|
12,640
|
|
|
$
|
43,260
|
|
|
$
|
(68,378
|
)
|
|
|
$
|
(52
|
)
|
|
|
$
|
74,073
|
|
|
Capital expenditures
|
|
|
$
|
52,190
|
|
|
|
$
|
8,757
|
|
|
$
|
12,259
|
|
|
$
|
4,087
|
|
|
|
$
|
—
|
|
|
|
$
|
77,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
2,699,022
|
|
|
|
$
|
—
|
|
|
$
|
94,896
|
|
|
$
|
47
|
|
|
|
$
|
(79,327
|
)
|
|
|
$
|
2,714,638
|
|
|
Operating expenses
|
|
|
$
|
225,683
|
|
|
|
$
|
—
|
|
|
$
|
29,212
|
|
|
$
|
1,152
|
|
|
|
$
|
(4,711
|
)
|
|
|
$
|
251,336
|
|
|
Depreciation and amortization
|
|
|
$
|
72,023
|
|
|
|
$
|
—
|
|
|
$
|
15,308
|
|
|
$
|
3,299
|
|
|
|
$
|
(207
|
)
|
|
|
$
|
90,423
|
|
|
Income (loss) from operations
|
|
|
$
|
(436,214
|
)
|
|
|
$
|
—
|
|
|
$
|
47,514
|
|
|
$
|
(31,197
|
)
|
|
|
$
|
(645
|
)
|
|
|
$
|
(420,542
|
)
|
|
Net income (loss)
|
|
|
$
|
(436,214
|
)
|
|
|
$
|
—
|
|
|
$
|
39,921
|
|
|
$
|
3,843
|
|
|
|
$
|
(20
|
)
|
|
|
$
|
(392,470
|
)
|
|
Capital expenditures
|
|
|
$
|
105,875
|
|
|
|
$
|
—
|
|
|
$
|
33,201
|
|
|
$
|
1,396
|
|
|
|
$
|
—
|
|
|
|
$
|
140,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
6,003,213
|
|
|
|
$
|
511,506
|
|
|
$
|
214,777
|
|
|
$
|
42
|
|
|
|
$
|
(190,191
|
)
|
|
|
$
|
6,539,347
|
|
|
Operating expenses
|
|
|
$
|
502,380
|
|
|
|
$
|
88,681
|
|
|
$
|
66,586
|
|
|
$
|
2,335
|
|
|
|
$
|
(37,213
|
)
|
|
|
$
|
622,769
|
|
|
Depreciation and amortization
|
|
|
$
|
145,324
|
|
|
|
$
|
12,376
|
|
|
$
|
37,914
|
|
|
$
|
6,122
|
|
|
|
$
|
(414
|
)
|
|
|
$
|
201,322
|
|
|
Income (loss) from operations
|
|
|
$
|
36,348
|
|
|
|
$
|
29,905
|
|
|
$
|
105,028
|
|
|
$
|
(81,181
|
)
|
|
|
$
|
(1,139
|
)
|
|
|
$
|
88,961
|
|
|
Net income (loss)
|
|
|
$
|
36,348
|
|
|
|
$
|
21,056
|
|
|
$
|
71,543
|
|
|
$
|
(92,561
|
)
|
|
|
$
|
(95
|
)
|
|
|
$
|
36,291
|
|
|
Capital expenditures
|
|
|
$
|
99,864
|
|
|
|
$
|
10,352
|
|
|
$
|
20,524
|
|
|
$
|
6,310
|
|
|
|
$
|
—
|
|
|
|
$
|
137,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other revenues
|
|
|
$
|
4,698,609
|
|
|
|
$
|
—
|
|
|
$
|
196,906
|
|
|
$
|
157
|
|
|
|
$
|
(162,310
|
)
|
|
|
$
|
4,733,362
|
|
|
Operating expenses
|
|
|
$
|
453,512
|
|
|
|
$
|
—
|
|
|
$
|
56,968
|
|
|
$
|
2,407
|
|
|
|
$
|
(8,968
|
)
|
|
|
$
|
503,919
|
|
|
Depreciation and amortization
|
|
|
$
|
140,901
|
|
|
|
$
|
—
|
|
|
$
|
31,337
|
|
|
$
|
6,479
|
|
|
|
$
|
(414
|
)
|
|
|
$
|
178,303
|
|
|
Income (loss) from operations
|
|
|
$
|
(380,281
|
)
|
|
|
$
|
—
|
|
|
$
|
102,648
|
|
|
$
|
(58,052
|
)
|
|
|
$
|
(1,259
|
)
|
|
|
$
|
(336,944
|
)
|
|
Net income (loss)
|
|
|
$
|
(380,281
|
)
|
|
|
$
|
—
|
|
|
$
|
87,293
|
|
|
$
|
(56,060
|
)
|
|
|
$
|
(32
|
)
|
|
|
$
|
(349,080
|
)
|
|
Capital expenditures
|
|
|
$
|
210,582
|
|
|
|
$
|
—
|
|
|
$
|
75,385
|
|
|
$
|
4,078
|
|
|
|
$
|
—
|
|
|
|
$
|
290,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and total investments in marketable securities
|
|
|
$
|
2,311
|
|
|
|
$
|
68,346
|
|
|
$
|
16,339
|
|
|
$
|
373,330
|
|
|
|
$
|
—
|
|
|
|
$
|
460,326
|
|
|
Total assets
|
|
|
$
|
6,354,911
|
|
|
|
$
|
1,194,478
|
|
|
$
|
1,904,951
|
|
|
$
|
471,367
|
|
|
|
$
|
(282,672
|
)
|
|
|
$
|
9,643,035
|
|
|
Long-term debt
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
1,236,739
|
|
|
$
|
991,212
|
|
|
|
$
|
—
|
|
|
|
$
|
2,227,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and total investments in marketable securities
|
|
|
$
|
49
|
|
|
|
$
|
—
|
|
|
$
|
3,657
|
|
|
$
|
1,131,021
|
|
|
|
$
|
—
|
|
|
|
$
|
1,134,727
|
|
|
Total assets
|
|
|
$
|
6,513,806
|
|
|
|
$
|
—
|
|
|
$
|
1,920,487
|
|
|
$
|
1,306,169
|
|
|
|
$
|
(304,801
|
)
|
|
|
$
|
9,435,661
|
|
|
Long-term debt
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
1,243,912
|
|
|
$
|
991,225
|
|
|
|
$
|
—
|
|
|
|
$
|
2,235,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining Operating Data
The following tables set forth information, including non-GAAP
performance measures about our refinery operations. The cost of products
and refinery gross and net operating margins do not include the non-cash
effects of lower of cost or market inventory valuation adjustments and
depreciation and amortization. Reconciliations to amounts reported under
GAAP are provided under “Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles” below.
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
Mid-Continent Region (El Dorado and Tulsa Refineries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
|
|
|
290,460
|
|
|
|
|
270,590
|
|
|
|
|
|
256,370
|
|
|
|
|
252,070
|
|
|
Refinery throughput (BPD) (2)
|
|
|
|
304,840
|
|
|
|
|
292,320
|
|
|
|
|
|
263,730
|
|
|
|
|
272,240
|
|
|
Refinery production (BPD) (3)
|
|
|
|
293,860
|
|
|
|
|
280,590
|
|
|
|
|
|
263,400
|
|
|
|
|
261,340
|
|
|
Sales of produced refined products (BPD)
|
|
|
|
281,670
|
|
|
|
|
264,660
|
|
|
|
|
|
254,830
|
|
|
|
|
249,010
|
|
|
Sales of refined products (BPD) (4)
|
|
|
|
308,280
|
|
|
|
|
285,780
|
|
|
|
|
|
281,970
|
|
|
|
|
274,000
|
|
|
Refinery utilization (5)
|
|
|
|
111.7
|
%
|
|
|
|
104.1
|
%
|
|
|
|
|
98.6
|
%
|
|
|
|
97.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
65.01
|
|
|
|
$
|
60.24
|
|
|
|
|
$
|
65.76
|
|
|
|
$
|
53.89
|
|
|
Cost of products (7)
|
|
|
|
55.63
|
|
|
|
|
52.55
|
|
|
|
|
|
57.59
|
|
|
|
|
46.13
|
|
|
Refinery gross margin (8)
|
|
|
|
9.38
|
|
|
|
|
7.69
|
|
|
|
|
|
8.17
|
|
|
|
|
7.76
|
|
|
Refinery operating expenses (9)
|
|
|
|
4.48
|
|
|
|
|
4.56
|
|
|
|
|
|
5.21
|
|
|
|
|
4.95
|
|
|
Net operating margin (8)
|
|
|
$
|
4.90
|
|
|
|
$
|
3.13
|
|
|
|
|
$
|
2.96
|
|
|
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10)
|
|
|
$
|
4.14
|
|
|
|
$
|
4.13
|
|
|
|
|
$
|
5.03
|
|
|
|
$
|
4.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
|
62
|
%
|
|
|
|
58
|
%
|
|
|
|
|
60
|
%
|
|
|
|
55
|
%
|
|
Sour crude oil
|
|
|
|
18
|
%
|
|
|
|
17
|
%
|
|
|
|
|
19
|
%
|
|
|
|
19
|
%
|
|
Heavy sour crude oil
|
|
|
|
15
|
%
|
|
|
|
17
|
%
|
|
|
|
|
15
|
%
|
|
|
|
19
|
%
|
|
Other feedstocks and blends
|
|
|
|
5
|
%
|
|
|
|
8
|
%
|
|
|
|
|
6
|
%
|
|
|
|
7
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
|
50
|
%
|
|
|
|
47
|
%
|
|
|
|
|
50
|
%
|
|
|
|
48
|
%
|
|
Diesel fuels
|
|
|
|
34
|
%
|
|
|
|
35
|
%
|
|
|
|
|
32
|
%
|
|
|
|
35
|
%
|
|
Jet fuels
|
|
|
|
6
|
%
|
|
|
|
6
|
%
|
|
|
|
|
7
|
%
|
|
|
|
6
|
%
|
|
Fuel oil
|
|
|
|
1
|
%
|
|
|
|
1
|
%
|
|
|
|
|
1
|
%
|
|
|
|
1
|
%
|
|
Asphalt
|
|
|
|
3
|
%
|
|
|
|
3
|
%
|
|
|
|
|
3
|
%
|
|
|
|
2
|
%
|
|
Lubricants
|
|
|
|
4
|
%
|
|
|
|
5
|
%
|
|
|
|
|
5
|
%
|
|
|
|
5
|
%
|
|
LPG and other
|
|
|
|
2
|
%
|
|
|
|
3
|
%
|
|
|
|
|
2
|
%
|
|
|
|
3
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
Southwest Region (Navajo Refinery)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
|
|
|
102,120
|
|
|
|
|
101,660
|
|
|
|
|
|
88,370
|
|
|
|
|
99,890
|
|
|
Refinery throughput (BPD) (2)
|
|
|
|
112,720
|
|
|
|
|
111,610
|
|
|
|
|
|
96,200
|
|
|
|
|
110,370
|
|
|
Refinery production (BPD) (3)
|
|
|
|
111,240
|
|
|
|
|
110,520
|
|
|
|
|
|
94,770
|
|
|
|
|
109,020
|
|
|
Sales of produced refined products (BPD)
|
|
|
|
108,390
|
|
|
|
|
110,360
|
|
|
|
|
|
92,460
|
|
|
|
|
111,870
|
|
|
Sales of refined products (BPD) (4)
|
|
|
|
110,350
|
|
|
|
|
111,570
|
|
|
|
|
|
100,570
|
|
|
|
|
112,660
|
|
|
Refinery utilization (5)
|
|
|
|
102.1
|
%
|
|
|
|
101.7
|
%
|
|
|
|
|
88.4
|
%
|
|
|
|
99.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
65.97
|
|
|
|
$
|
61.86
|
|
|
|
|
$
|
66.46
|
|
|
|
$
|
53.67
|
|
|
Cost of products (7)
|
|
|
|
54.63
|
|
|
|
|
50.71
|
|
|
|
|
|
56.32
|
|
|
|
|
44.66
|
|
|
Refinery gross margin (8)
|
|
|
|
11.34
|
|
|
|
|
11.15
|
|
|
|
|
|
10.14
|
|
|
|
|
9.01
|
|
|
Refinery operating expenses (9)
|
|
|
|
4.96
|
|
|
|
|
4.77
|
|
|
|
|
|
5.76
|
|
|
|
|
4.50
|
|
|
Net operating margin (8)
|
|
|
$
|
6.38
|
|
|
|
$
|
6.38
|
|
|
|
|
$
|
4.38
|
|
|
|
$
|
4.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10)
|
|
|
$
|
4.77
|
|
|
|
$
|
4.72
|
|
|
|
|
$
|
5.54
|
|
|
|
$
|
4.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
|
25
|
%
|
|
|
|
27
|
%
|
|
|
|
|
22
|
%
|
|
|
|
30
|
%
|
|
Sour crude oil
|
|
|
|
66
|
%
|
|
|
|
64
|
%
|
|
|
|
|
70
|
%
|
|
|
|
60
|
%
|
|
Other feedstocks and blends
|
|
|
|
9
|
%
|
|
|
|
9
|
%
|
|
|
|
|
8
|
%
|
|
|
|
10
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
|
52
|
%
|
|
|
|
54
|
%
|
|
|
|
|
52
|
%
|
|
|
|
55
|
%
|
|
Diesel fuels
|
|
|
|
42
|
%
|
|
|
|
41
|
%
|
|
|
|
|
41
|
%
|
|
|
|
40
|
%
|
|
Fuel oil
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
|
|
|
3
|
%
|
|
|
|
2
|
%
|
|
Asphalt
|
|
|
|
1
|
%
|
|
|
|
1
|
%
|
|
|
|
|
1
|
%
|
|
|
|
1
|
%
|
|
LPG and other
|
|
|
|
3
|
%
|
|
|
|
2
|
%
|
|
|
|
|
3
|
%
|
|
|
|
2
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
|
|
|
74,510
|
|
|
|
|
56,340
|
|
|
|
|
|
74,610
|
|
|
|
|
57,880
|
|
|
Refinery throughput (BPD) (2)
|
|
|
|
80,740
|
|
|
|
|
54,680
|
|
|
|
|
|
82,240
|
|
|
|
|
61,950
|
|
|
Refinery production (BPD) (3)
|
|
|
|
78,110
|
|
|
|
|
51,550
|
|
|
|
|
|
79,630
|
|
|
|
|
58,900
|
|
|
Sales of produced refined products (BPD)
|
|
|
|
75,840
|
|
|
|
|
56,090
|
|
|
|
|
|
78,300
|
|
|
|
|
61,370
|
|
|
Sales of refined products (BPD) (4)
|
|
|
|
76,070
|
|
|
|
|
61,950
|
|
|
|
|
|
78,740
|
|
|
|
|
65,960
|
|
|
Refinery utilization (5)
|
|
|
|
76.8
|
%
|
|
|
|
67.9
|
%
|
|
|
|
|
76.9
|
%
|
|
|
|
69.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
68.52
|
|
|
|
$
|
62.26
|
|
|
|
|
$
|
67.14
|
|
|
|
$
|
53.86
|
|
|
Cost of products (7)
|
|
|
|
49.05
|
|
|
|
|
52.22
|
|
|
|
|
|
52.47
|
|
|
|
|
45.04
|
|
|
Refinery gross margin (8)
|
|
|
|
19.47
|
|
|
|
|
10.04
|
|
|
|
|
|
14.67
|
|
|
|
|
8.82
|
|
|
Refinery operating expenses (9)
|
|
|
|
10.34
|
|
|
|
|
11.48
|
|
|
|
|
|
10.20
|
|
|
|
|
10.51
|
|
|
Net operating margin (8)
|
|
|
$
|
9.13
|
|
|
|
$
|
(1.44
|
)
|
|
|
|
$
|
4.47
|
|
|
|
$
|
(1.69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10)
|
|
|
$
|
9.71
|
|
|
|
$
|
11.78
|
|
|
|
|
$
|
9.71
|
|
|
|
$
|
10.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
|
32
|
%
|
|
|
|
45
|
%
|
|
|
|
|
35
|
%
|
|
|
|
42
|
%
|
|
Heavy sour crude oil
|
|
|
|
39
|
%
|
|
|
|
35
|
%
|
|
|
|
|
36
|
%
|
|
|
|
34
|
%
|
|
Black wax crude oil
|
|
|
|
21
|
%
|
|
|
|
20
|
%
|
|
|
|
|
20
|
%
|
|
|
|
17
|
%
|
|
Other feedstocks and blends
|
|
|
|
8
|
%
|
|
|
|
—
|
%
|
|
|
|
|
9
|
%
|
|
|
|
7
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
|
59
|
%
|
|
|
|
58
|
%
|
|
|
|
|
59
|
%
|
|
|
|
60
|
%
|
|
Diesel fuels
|
|
|
|
33
|
%
|
|
|
|
36
|
%
|
|
|
|
|
33
|
%
|
|
|
|
34
|
%
|
|
Fuel oil
|
|
|
|
3
|
%
|
|
|
|
1
|
%
|
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
Asphalt
|
|
|
|
3
|
%
|
|
|
|
1
|
%
|
|
|
|
|
4
|
%
|
|
|
|
1
|
%
|
|
LPG and other
|
|
|
|
2
|
%
|
|
|
|
4
|
%
|
|
|
|
|
2
|
%
|
|
|
|
3
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude charge (BPD) (1)
|
|
|
|
467,090
|
|
|
|
|
428,590
|
|
|
|
|
|
419,350
|
|
|
|
|
409,840
|
|
|
Refinery throughput (BPD) (2)
|
|
|
|
498,300
|
|
|
|
|
458,610
|
|
|
|
|
|
442,170
|
|
|
|
|
444,560
|
|
|
Refinery production (BPD) (3)
|
|
|
|
483,210
|
|
|
|
|
442,660
|
|
|
|
|
|
437,800
|
|
|
|
|
429,260
|
|
|
Sales of produced refined products (BPD)
|
|
|
|
465,900
|
|
|
|
|
431,110
|
|
|
|
|
|
425,590
|
|
|
|
|
422,250
|
|
|
Sales of refined products (BPD) (4)
|
|
|
|
494,700
|
|
|
|
|
459,300
|
|
|
|
|
|
461,280
|
|
|
|
|
452,620
|
|
|
Refinery utilization (5)
|
|
|
|
102.2
|
%
|
|
|
|
96.7
|
%
|
|
|
|
|
91.8
|
%
|
|
|
|
92.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per produced barrel (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
65.80
|
|
|
|
$
|
60.92
|
|
|
|
|
$
|
66.17
|
|
|
|
$
|
53.83
|
|
|
Cost of products (7)
|
|
|
|
54.33
|
|
|
|
|
52.04
|
|
|
|
|
|
56.37
|
|
|
|
|
45.58
|
|
|
Refinery gross margin (8)
|
|
|
|
11.47
|
|
|
|
|
8.88
|
|
|
|
|
|
9.80
|
|
|
|
|
8.25
|
|
|
Refinery operating expenses (9)
|
|
|
|
5.54
|
|
|
|
|
5.51
|
|
|
|
|
|
6.25
|
|
|
|
|
5.64
|
|
|
Net operating margin (8)
|
|
|
$
|
5.93
|
|
|
|
$
|
3.37
|
|
|
|
|
$
|
3.55
|
|
|
|
$
|
2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery operating expenses per throughput barrel (10)
|
|
|
$
|
5.18
|
|
|
|
$
|
5.18
|
|
|
|
|
$
|
6.01
|
|
|
|
$
|
5.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feedstocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet crude oil
|
|
|
|
49
|
%
|
|
|
|
49
|
%
|
|
|
|
|
48
|
%
|
|
|
|
47
|
%
|
|
Sour crude oil
|
|
|
|
26
|
%
|
|
|
|
27
|
%
|
|
|
|
|
26
|
%
|
|
|
|
27
|
%
|
|
Heavy sour crude oil
|
|
|
|
16
|
%
|
|
|
|
15
|
%
|
|
|
|
|
15
|
%
|
|
|
|
16
|
%
|
|
Black wax crude oil
|
|
|
|
3
|
%
|
|
|
|
2
|
%
|
|
|
|
|
4
|
%
|
|
|
|
2
|
%
|
|
Other feedstocks and blends
|
|
|
|
6
|
%
|
|
|
|
7
|
%
|
|
|
|
|
7
|
%
|
|
|
|
8
|
%
|
|
Total
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of produced refined products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
|
52
|
%
|
|
|
50
|
%
|
|
|
|
52
|
%
|
|
|
51
|
%
|
|
Diesel fuels
|
|
|
36
|
%
|
|
|
37
|
%
|
|
|
|
34
|
%
|
|
|
36
|
%
|
|
Jet fuels
|
|
|
4
|
%
|
|
|
4
|
%
|
|
|
|
5
|
%
|
|
|
4
|
%
|
|
Fuel oil
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
|
1
|
%
|
|
|
1
|
%
|
|
Asphalt
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
|
2
|
%
|
|
Lubricants
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
|
3
|
%
|
|
|
3
|
%
|
|
LPG and other
|
|
|
2
|
%
|
|
|
3
|
%
|
|
|
|
3
|
%
|
|
|
3
|
%
|
|
Total
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Crude charge represents the barrels per day of crude oil processed
at our refineries.
|
|
(2)
|
|
Refinery throughput represents the barrels per day of crude and
other refinery feedstocks input to the crude units and other
conversion units at our refineries.
|
|
(3)
|
|
Refinery production represents the barrels per day of refined
products yielded from processing crude and other refinery feedstocks
through the crude units and other conversion units at our refineries.
|
|
(4)
|
|
Includes refined products purchased for resale.
|
|
(5)
|
|
Represents crude charge divided by total crude capacity (BPSD).
Effective July 1, 2016, our consolidated crude capacity increased
from 443,000 BPSD to 457,000 BPSD upon completion of our Woods Cross
Refinery expansion project.
|
|
(6)
|
|
Represents average per barrel amount for produced refined products
sold, which is a non-GAAP measure. Reconciliations to amounts
reported under GAAP are provided under “Reconciliations to Amounts
Reported Under Generally Accepted Accounting Principles” below.
|
|
(7)
|
|
Transportation, terminal and refinery storage costs billed from HEP
are included in cost of products.
|
|
(8)
|
|
Excludes lower of cost or market inventory valuation adjustments of
$84.0 million and $138.5 million for the three months ended June 30,
2017 and 2016, respectively, and $95.8 million and $194.6 million
for the six months ended June 30, 2017 and 2016, respectively.
|
|
(9)
|
|
Represents operating expenses of our refineries, exclusive of
depreciation and amortization.
|
|
(10)
|
|
Represents refinery operating expenses, exclusive of depreciation
and amortization, divided by refinery throughput.
|
|
|
|
|
|
|
|
|
PCLI Operating Data
The following table sets forth information about our PCLI operations for
the period from February 1, 2017 (date of acquisition) through June 30,
2017.
|
|
|
|
Three Months Ended
June 30,
|
|
|
Period From
February 1, 2017
Through
June 30, 2017
|
|
PCLI
|
|
|
|
|
|
|
|
Throughput (BPD) (1)
|
|
|
21,470
|
|
|
21,750
|
|
Production (BPD) (2)
|
|
|
20,880
|
|
|
21,230
|
|
Sales of produced products (BPD)
|
|
|
23,720
|
|
|
20,690
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Throughput represents the barrels per day of feedstocks (principally
vacuum gas oil and hydrocracker bottoms) input into our PCLI
production facilities.
|
|
(2)
|
|
Production represents the barrels per day of products yielded from
our PCLI production facilities.
|
|
|
|
|
|
|
|
|
Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles
Reconciliations of earnings before interest, taxes, depreciation
and amortization (“EBITDA”) and EBITDA excluding lower of cost or market
inventory valuation adjustments and PCLI acquisition and integration
costs, incremental cost of products sold attributable to our PCLI
inventory value step-up and net gain on foreign currency swaps
("Adjusted EBITDA") to amounts reported under generally accepted
accounting principles ("GAAP") in financial statements.
Earnings before interest, taxes, depreciation and amortization, which we
refer to as EBITDA, is calculated as net income (loss) attributable to
HollyFrontier stockholders plus (i) interest expense, net of interest
income, (ii) income tax provision, and (iii) depreciation and
amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i)
lower of cost or market inventory valuation adjustments, (ii)
incremental cost of products sold attributable to our PCLI inventory
value step-up, (iii) PCLI acquisition and integration costs, (iv)
goodwill and asset impairment charges, (v) our RINs cost reduction
related to our Cheyenne Refinery small refinery exemption, and (vi) net
gain on foreign currency swaps.
EBITDA and Adjusted EBITDA are not calculations provided for under
accounting principles generally accepted in the United States; however,
the amounts included in these calculations are derived from amounts
included in our consolidated financial statements. EBITDA and Adjusted
EBITDA should not be considered as alternatives 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 and
Adjusted EBITDA are not necessarily comparable to similarly titled
measures of other companies. These are presented here because they are
widely used financial indicators used by investors and analysts to
measure performance.
EBITDA and Adjusted EBITDA are also used by our management for internal
analysis and as a basis for financial covenants.
Set forth below is our calculation of EBITDA and adjusted EBITDA.
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(In thousands)
|
|
Net income (loss) attributable to HollyFrontier stockholders
|
|
|
$
|
57,767
|
|
|
|
$
|
(409,368
|
)
|
|
|
|
$
|
12,299
|
|
|
|
$
|
(388,115
|
)
|
|
Add income tax provision
|
|
|
|
31,996
|
|
|
|
|
(38,045
|
)
|
|
|
|
|
15,207
|
|
|
|
|
(15,737
|
)
|
|
Add interest expense (1)
|
|
|
|
29,645
|
|
|
|
|
14,251
|
|
|
|
|
|
69,028
|
|
|
|
|
35,056
|
|
|
Subtract interest income
|
|
|
|
(176
|
)
|
|
|
|
(527
|
)
|
|
|
|
|
(995
|
)
|
|
|
|
(602
|
)
|
|
Add depreciation and amortization
|
|
|
|
105,282
|
|
|
|
|
90,423
|
|
|
|
|
|
201,322
|
|
|
|
|
178,303
|
|
|
EBITDA
|
|
|
$
|
224,514
|
|
|
|
$
|
(343,266
|
)
|
|
|
|
$
|
296,861
|
|
|
|
$
|
(191,095
|
)
|
|
Add (subtract) lower of cost or market inventory valuation adjustment
|
|
|
|
83,982
|
|
|
|
|
(138,473
|
)
|
|
|
|
|
95,805
|
|
|
|
|
(194,594
|
)
|
|
Add Incremental cost of products sold attributable to PCLI inventory
value step-up
|
|
|
|
5,089
|
|
|
|
|
—
|
|
|
|
|
|
15,327
|
|
|
|
|
—
|
|
|
Add PCLI acquisition and integration costs
|
|
|
|
3,693
|
|
|
|
|
—
|
|
|
|
|
|
19,290
|
|
|
|
|
—
|
|
|
Add goodwill and asset impairment
|
|
|
|
19,247
|
|
|
|
|
654,084
|
|
|
|
|
|
19,247
|
|
|
|
|
654,084
|
|
|
Subtract RINs cost reduction
|
|
|
|
(30,456
|
)
|
|
|
|
—
|
|
|
|
|
|
(30,456
|
)
|
|
|
|
—
|
|
|
Subtract gain on foreign currency swaps
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
(24,545
|
)
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
$
|
306,069
|
|
|
|
$
|
172,345
|
|
|
|
|
$
|
391,529
|
|
|
|
$
|
268,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to our PCLI segment is calculated as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCLI income from operations (see segment data on page 6)
|
|
|
$
|
17,511
|
|
|
|
|
|
|
|
$
|
29,905
|
|
|
|
|
|
Add depreciation and amortization (see segment data on page 6)
|
|
|
|
7,302
|
|
|
|
|
|
|
|
|
12,376
|
|
|
|
|
|
PCLI EBITDA
|
|
|
$
|
24,813
|
|
|
|
|
|
|
|
$
|
42,281
|
|
|
|
|
|
Add Incremental cost of products sold attributable to PCLI inventory
value step-up
|
|
|
|
5,089
|
|
|
|
|
|
|
|
|
15,327
|
|
|
|
|
|
Adjusted PCLI EBITDA
|
|
|
$
|
29,902
|
|
|
|
|
|
|
|
$
|
57,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes loss on early extinguishment of debt of $12.2 million and
$8.7 million for the six months ended June 30, 2017 and 2016,
respectively.
|
|
|
|
|
|
|
|
|
Reconciliations of refinery operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP performance
measures that are used by our management and others to compare our
refining performance to that of other companies in our industry. We
believe these margin measures are helpful to investors in evaluating our
refining performance on a relative and absolute basis. Refinery gross
margin per barrel is the difference between average net sales price and
average cost of products per barrel of produced refined products. Net
operating margin per barrel is the difference between refinery gross
margin and refinery operating expenses per barrel of produced refined
products.
These two margins do not include the non-cash effects of lower of cost
or market inventory valuation adjustments or depreciation and
amortization. Each of these component performance measures can be
reconciled directly to our consolidated statements of income. Other
companies in our industry may not calculate these performance measures
in the same manner.
Refinery Gross and Net Operating Margins
Below are reconciliations to our consolidated statements of income for
(i) net sales, cost of products sold (exclusive of lower of cost or
market inventory valuation adjustment) and operating expenses, in each
case averaged per produced barrel sold, and (ii) net operating margin
and refinery gross margin. Due to rounding of reported numbers, some
amounts may not calculate exactly.
Reconciliation of produced refined product sales
to total sales and other revenues
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price per produced barrel sold
|
|
|
$
|
65.80
|
|
|
|
$
|
60.92
|
|
|
|
|
$
|
66.17
|
|
|
|
$
|
53.83
|
|
|
Times sales of produced refined products (BPD)
|
|
|
|
465,900
|
|
|
|
|
431,110
|
|
|
|
|
|
425,590
|
|
|
|
|
422,250
|
|
|
Times number of days in period
|
|
|
|
91
|
|
|
|
|
91
|
|
|
|
|
|
181
|
|
|
|
|
182
|
|
|
Produced refined product sales
|
|
|
$
|
2,789,716
|
|
|
|
$
|
2,389,953
|
|
|
|
|
$
|
5,097,194
|
|
|
|
$
|
4,136,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total produced refined product sales
|
|
|
$
|
2,789,716
|
|
|
|
$
|
2,389,953
|
|
|
|
|
$
|
5,097,194
|
|
|
|
$
|
4,136,809
|
|
|
Add refined product sales from purchased products and rounding (1)
|
|
|
|
172,841
|
|
|
|
|
161,860
|
|
|
|
|
|
433,131
|
|
|
|
|
293,460
|
|
|
Total refined product sales
|
|
|
|
2,962,557
|
|
|
|
|
2,551,813
|
|
|
|
|
|
5,530,325
|
|
|
|
|
4,430,269
|
|
|
Add direct sales of excess crude oil (2)
|
|
|
|
121,566
|
|
|
|
|
100,782
|
|
|
|
|
|
380,307
|
|
|
|
|
191,700
|
|
|
Add other refining segment revenue (3)
|
|
|
|
57,014
|
|
|
|
|
46,427
|
|
|
|
|
|
92,581
|
|
|
|
|
76,640
|
|
|
Total refining segment revenue
|
|
|
|
3,141,137
|
|
|
|
|
2,699,022
|
|
|
|
|
|
6,003,213
|
|
|
|
|
4,698,609
|
|
|
Add PCLI segment sales and other revenues
|
|
|
|
309,566
|
|
|
|
|
—
|
|
|
|
|
|
511,506
|
|
|
|
|
—
|
|
|
Add HEP segment sales and other revenues
|
|
|
|
109,143
|
|
|
|
|
94,896
|
|
|
|
|
|
214,777
|
|
|
|
|
196,906
|
|
|
Add corporate and other revenues
|
|
|
|
15
|
|
|
|
|
47
|
|
|
|
|
|
42
|
|
|
|
|
157
|
|
|
Subtract consolidations and eliminations
|
|
|
|
(100,997
|
)
|
|
|
|
(79,327
|
)
|
|
|
|
|
(190,191
|
)
|
|
|
|
(162,310
|
)
|
|
Sales and other revenues
|
|
|
$
|
3,458,864
|
|
|
|
$
|
2,714,638
|
|
|
|
|
$
|
6,539,347
|
|
|
|
$
|
4,733,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average cost of products per
produced barrel sold to cost of products sold (exclusive of lower of
cost or market inventory valuation adjustment)
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost of products per produced barrel sold
|
|
|
$
|
54.33
|
|
|
|
$
|
52.04
|
|
|
|
|
$
|
56.37
|
|
|
|
$
|
45.58
|
|
|
Times sales of produced refined products (BPD)
|
|
|
|
465,900
|
|
|
|
|
431,110
|
|
|
|
|
|
425,590
|
|
|
|
|
422,250
|
|
|
Times number of days in period
|
|
|
|
91
|
|
|
|
|
91
|
|
|
|
|
|
181
|
|
|
|
|
182
|
|
|
Cost of products for produced products sold
|
|
|
$
|
2,303,424
|
|
|
|
$
|
2,041,582
|
|
|
|
|
$
|
4,342,282
|
|
|
|
$
|
3,502,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of products for produced products sold
|
|
|
$
|
2,303,424
|
|
|
|
$
|
2,041,582
|
|
|
|
|
$
|
4,342,282
|
|
|
|
$
|
3,502,800
|
|
|
Add refined product costs from purchased products sold and rounding (1)
|
|
|
|
172,554
|
|
|
|
|
159,155
|
|
|
|
|
|
433,615
|
|
|
|
|
297,519
|
|
|
Total cost of refined products sold
|
|
|
|
2,475,978
|
|
|
|
|
2,200,737
|
|
|
|
|
|
4,775,897
|
|
|
|
|
3,800,319
|
|
|
Add crude oil cost of direct sales of excess crude oil (2)
|
|
|
|
121,454
|
|
|
|
|
101,719
|
|
|
|
|
|
381,284
|
|
|
|
|
193,307
|
|
|
Add other refining segment cost of products sold (4)
|
|
|
|
32,952
|
|
|
|
|
19,463
|
|
|
|
|
|
46,928
|
|
|
|
|
31,361
|
|
|
Total refining segment cost of products sold
|
|
|
|
2,630,384
|
|
|
|
|
2,321,919
|
|
|
|
|
|
5,204,109
|
|
|
|
|
4,024,987
|
|
|
Add PCLI segment cost of products sold
|
|
|
|
205,559
|
|
|
|
|
—
|
|
|
|
|
|
341,863
|
|
|
|
|
—
|
|
|
Subtract consolidations and eliminations
|
|
|
|
(82,503
|
)
|
|
|
|
(73,764
|
)
|
|
|
|
|
(151,375
|
)
|
|
|
|
(151,669
|
)
|
|
Costs of products sold (exclusive of lower of cost or market
inventory valuation adjustment and depreciation and amortization)
|
|
|
$
|
2,753,440
|
|
|
|
$
|
2,248,155
|
|
|
|
|
$
|
5,394,597
|
|
|
|
$
|
3,873,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average refinery operating
expenses per produced barrel sold to total operating expenses
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average refinery operating expenses per produced barrel sold
|
|
|
$
|
5.54
|
|
|
|
$
|
5.51
|
|
|
|
|
$
|
6.25
|
|
|
|
$
|
5.64
|
|
|
Times sales of produced refined products (BPD)
|
|
|
|
465,900
|
|
|
|
|
431,110
|
|
|
|
|
|
425,590
|
|
|
|
|
422,250
|
|
|
Times number of days in period
|
|
|
|
91
|
|
|
|
|
91
|
|
|
|
|
|
181
|
|
|
|
|
182
|
|
|
Refinery operating expenses for produced products sold
|
|
|
$
|
234,879
|
|
|
|
$
|
216,163
|
|
|
|
|
$
|
481,449
|
|
|
|
$
|
433,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total refinery operating expenses for produced products sold
|
|
|
$
|
234,879
|
|
|
|
$
|
216,163
|
|
|
|
|
$
|
481,449
|
|
|
|
$
|
433,431
|
|
|
Add other refining segment operating expenses and rounding(5)
|
|
|
|
10,386
|
|
|
|
|
9,520
|
|
|
|
|
|
20,931
|
|
|
|
|
20,081
|
|
|
Total refining segment operating expenses
|
|
|
|
245,265
|
|
|
|
|
225,683
|
|
|
|
|
|
502,380
|
|
|
|
|
453,512
|
|
|
Add PCLI segment operating expenses
|
|
|
|
52,652
|
|
|
|
|
—
|
|
|
|
|
|
88,681
|
|
|
|
|
—
|
|
|
Add HEP segment operating expenses
|
|
|
|
34,097
|
|
|
|
|
29,212
|
|
|
|
|
|
66,586
|
|
|
|
|
56,968
|
|
|
Add corporate and other costs
|
|
|
|
1,322
|
|
|
|
|
1,152
|
|
|
|
|
|
2,335
|
|
|
|
|
2,407
|
|
|
Subtract consolidations and eliminations
|
|
|
|
(17,684
|
)
|
|
|
|
(4,711
|
)
|
|
|
|
|
(37,213
|
)
|
|
|
|
(8,968
|
)
|
|
Operating expenses (exclusive of depreciation and amortization)
|
|
|
$
|
315,652
|
|
|
|
$
|
251,336
|
|
|
|
|
$
|
622,769
|
|
|
|
$
|
503,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating margin per barrel
to refinery gross margin per barrel to total sales and other revenues
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(Dollars in thousands, except per barrel amounts)
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating margin per barrel
|
|
|
$
|
5.93
|
|
|
|
$
|
3.37
|
|
|
|
|
$
|
3.55
|
|
|
|
$
|
2.61
|
|
|
Add average refinery operating expenses per produced barrel
|
|
|
|
5.54
|
|
|
|
|
5.51
|
|
|
|
|
|
6.25
|
|
|
|
|
5.64
|
|
|
Refinery gross margin per barrel
|
|
|
|
11.47
|
|
|
|
|
8.88
|
|
|
|
|
|
9.80
|
|
|
|
|
8.25
|
|
|
Add average cost of products per produced barrel sold
|
|
|
|
54.33
|
|
|
|
|
52.04
|
|
|
|
|
|
56.37
|
|
|
|
|
45.58
|
|
|
Average sales price per produced barrel sold
|
|
|
$
|
65.80
|
|
|
|
$
|
60.92
|
|
|
|
|
$
|
66.17
|
|
|
|
$
|
53.83
|
|
|
Times sales of produced refined products (BPD)
|
|
|
|
465,900
|
|
|
|
|
431,110
|
|
|
|
|
|
425,590
|
|
|
|
|
422,250
|
|
|
Times number of days in period
|
|
|
|
91
|
|
|
|
|
91
|
|
|
|
|
|
181
|
|
|
|
|
182
|
|
|
Produced refined product sales
|
|
|
$
|
2,789,716
|
|
|
|
$
|
2,389,953
|
|
|
|
|
$
|
5,097,194
|
|
|
|
$
|
4,136,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total produced refined product sales
|
|
|
$
|
2,789,716
|
|
|
|
$
|
2,389,953
|
|
|
|
|
$
|
5,097,194
|
|
|
|
$
|
4,136,809
|
|
|
Add refined product sales from purchased products and rounding (1)
|
|
|
|
172,841
|
|
|
|
|
161,860
|
|
|
|
|
|
433,131
|
|
|
|
|
293,460
|
|
|
Total refined product sales
|
|
|
|
2,962,557
|
|
|
|
|
2,551,813
|
|
|
|
|
|
5,530,325
|
|
|
|
|
4,430,269
|
|
|
Add direct sales of excess crude oil (2)
|
|
|
|
121,566
|
|
|
|
|
100,782
|
|
|
|
|
|
380,307
|
|
|
|
|
191,700
|
|
|
Add other refining segment revenue (3)
|
|
|
|
57,014
|
|
|
|
|
46,427
|
|
|
|
|
|
92,581
|
|
|
|
|
76,640
|
|
|
Total refining segment revenue
|
|
|
|
3,141,137
|
|
|
|
|
2,699,022
|
|
|
|
|
|
6,003,213
|
|
|
|
|
4,698,609
|
|
|
Add PCLI segment sales and other revenues
|
|
|
|
309,566
|
|
|
|
|
—
|
|
|
|
|
|
511,506
|
|
|
|
|
—
|
|
|
Add HEP segment sales and other revenues
|
|
|
|
109,143
|
|
|
|
|
94,896
|
|
|
|
|
|
214,777
|
|
|
|
|
196,906
|
|
|
Add corporate and other revenues
|
|
|
|
15
|
|
|
|
|
47
|
|
|
|
|
|
42
|
|
|
|
|
157
|
|
|
Subtract consolidations and eliminations
|
|
|
|
(100,997
|
)
|
|
|
|
(79,327
|
)
|
|
|
|
|
(190,191
|
)
|
|
|
|
(162,310
|
)
|
|
Sales and other revenues
|
|
|
$
|
3,458,864
|
|
|
|
$
|
2,714,638
|
|
|
|
|
$
|
6,539,347
|
|
|
|
$
|
4,733,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
We purchase finished products to facilitate delivery to certain
locations or to meet delivery commitments.
|
|
(2)
|
|
We purchase crude oil that at times exceeds the supply needs of our
refineries. Quantities in excess of our needs are sold at market
prices to purchasers of crude oil that are recorded on a gross basis
with the sales price recorded as revenues and the corresponding
acquisition cost as inventory and then upon sale as cost of products
sold. Additionally, at times we enter into buy/sell exchanges of
crude oil with certain parties to facilitate the delivery of
quantities to certain locations that are netted at cost.
|
|
(3)
|
|
Other refining segment revenue includes the incremental revenues
associated with HFC Asphalt, product purchased and sold forward for
profit as market conditions and available storage capacity allows
and miscellaneous revenue.
|
|
(4)
|
|
Other refining segment cost of products sold includes the
incremental cost of products for HFC Asphalt, the incremental cost
associated with storing product purchased and sold forward as market
conditions and available storage capacity allows and miscellaneous
costs.
|
|
(5)
|
|
Other refining segment operating expenses include the marketing
costs associated with our refining segment and the operating
expenses of HFC Asphalt.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802005314/en/
Source: HollyFrontier Corporation