HollyFrontier Corporation Reports 2019 Fourth Quarter and Full Year Results

  • Reported net income attributable to HollyFrontier stockholders of $772.4 million or $4.61 per diluted share and adjusted net income of $821.5 million or $4.90 per diluted share, for the year
  • Reported EBITDA of $1,702.6 million and adjusted EBITDA of $1,714.5 million, for the year
  • Returned $758.3 million to shareholders through dividends and share repurchases in the year

DALLAS–(BUSINESS WIRE)–HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported fourth quarter net income attributable to HollyFrontier stockholders of $60.6 million or $0.37 per diluted share for the quarter ended December 31, 2019, compared to $141.9 million or $0.81 per diluted share for the quarter ended December 31, 2018.

The fourth quarter results reflect special items that collectively decreased net income by a total of $17.4 million. These items include a lower of cost or market inventory valuation adjustment that decreased pre-tax earnings by $30.7 million, a biodiesel blender’s tax credit of $18.0 million and Sonneborn integration and regulatory costs of $4.1 million. Excluding these items, net income for the fourth quarter was $78.0 million ($0.48 per diluted share) compared to $393.9 million ($2.25 per diluted share) for the fourth quarter of 2018, which excludes certain items that collectively decreased net income by $252.0 million for the three months ended December 31, 2018.

HollyFrontier’s President & CEO, Michael Jennings, commented, “Despite heavy maintenance across our refining system in the fourth quarter, HFC achieved healthy financial results in 2019. The resulting strong cash flow generation allowed us to invest over $500 million into our assets, complete the acquisition of Sonneborn and return $758 million in cash to shareholders through dividends and share repurchases during the year. Looking forward to 2020, we are optimistic that demand for gasoline and diesel will strengthen into the summer driving season, margins for finished lubricants will remain strong and the base oil market will improve as existing capacity absorbs growing demand for premium base oils.”

The Refining segment reported adjusted EBITDA of $171.6 million compared to $583.4 million for the fourth quarter of 2018. This decrease was primarily driven by heavy planned refinery maintenance, lower product margins and depressed crude differentials which resulted in a consolidated refinery gross margin of $13.58 per produced barrel, a 39% decrease compared to $22.17 for the fourth quarter of 2018. Crude oil charge averaged 380,560 barrels per day (“BPD”) for the current quarter compared to 405,580 BPD for the fourth quarter 2018.

Our Lubricants and Specialty Products segment reported EBITDA of $34.6 million, compared to $(3.5) million in the fourth quarter 2018. Rack Forward EBITDA was $61.4 million, compared to $48.9 million in the prior year, driven by contributions from our Sonneborn finished lubricants business.

Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $87.8 million for the fourth quarter 2019 compared to $89.9 million in the fourth quarter of 2018.

For the fourth quarter of 2019, net cash provided by operations totaled $137.2 million. During the period, we declared and paid a dividend of $0.35 per share to shareholders totaling $57.2 million and spent $61.1 million in stock repurchases. At December 31, 2019, our cash and cash equivalents totaled $885.2 million, a $96.7 million decrease over cash and cash equivalents of $981.9 million at September 30, 2019. Additionally, our consolidated long-term debt was $2,455.6 million. Our debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $993.6 million at December 31, 2019.

The Company has scheduled a webcast conference call for today, February 20, 2020, at 8:30 AM Eastern Time to discuss fourth quarter financial results. This webcast may be accessed at: https://event.on24.com/wcc/r/2151024/A720AA4739D7D845E99819FC98FCD935. An audio archive of this webcast will be available using the above noted link through March 5, 2020.

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 owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming and Utah and 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 produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.

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 and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets, the demand for and supply of crude oil, refined products and lubricant and specialty 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 or lubricant and specialty 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 and consummating construction projects, the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations, the possibility of terrorist or cyberattacks 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 2018

 

2019

 

2018

 

Change

 

Percent

 

(In thousands, except per share data)

Sales and other revenues

$

4,381,888

 

 

$

4,344,204

 

 

$

37,684

 

 

1

%

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of products sold:

 

 

 

 

 

 

 

Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)

3,610,528

 

 

3,245,507

 

 

365,021

 

 

11

 

Lower of cost or market inventory valuation adjustment

30,708

 

 

329,232

 

 

(298,524

)

 

(91

)

 

3,641,236

 

 

3,574,739

 

 

66,497

 

 

2

 

Operating expenses

383,630

 

 

352,139

 

 

31,491

 

 

9

 

Selling, general and administrative expenses

93,259

 

 

85,955

 

 

7,304

 

 

8

 

Depreciation and amortization

134,580

 

 

113,719

 

 

20,861

 

 

18

 

Total operating costs and expenses

4,252,705

 

 

4,126,552

 

 

126,153

 

 

3

 

Income from operations

129,183

 

 

217,652

 

 

(88,469

)

 

(41

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Earnings of equity method investments

(37

)

 

1,698

 

 

(1,735

)

 

(102

)

Interest income

5,012

 

 

6,232

 

 

(1,220

)

 

(20

)

Interest expense

(36,383

)

 

(33,917

)

 

(2,466

)

 

7

 

Gain on foreign currency transactions

576

 

 

681

 

 

(105

)

 

(15

)

Other, net

2,008

 

 

(528

)

 

2,536

 

 

(480

)

 

(28,824

)

 

(25,834

)

 

(2,990

)

 

12

 

Income before income taxes

100,359

 

 

191,818

 

 

(91,459

)

 

(48

)

Income tax expense

19,290

 

 

28,501

 

 

(9,211

)

 

(32

)

Net income

81,069

 

 

163,317

 

 

(82,248

)

 

(50

)

Less net income attributable to noncontrolling interest

20,464

 

 

21,421

 

 

(957

)

 

(4

)

Net income attributable to HollyFrontier stockholders

$

60,605

 

 

$

141,896

 

 

$

(81,291

)

 

(57

)%

 

 

 

 

 

 

 

 

Earnings per share attributable to HollyFrontier stockholders:

 

 

 

 

 

 

 

Basic

$

0.38

 

 

$

0.82

 

 

$

(0.44

)

 

(54

)%

Diluted

$

0.37

 

 

$

0.81

 

 

$

(0.44

)

 

(54

)%

Cash dividends declared per common share

$

0.35

 

 

$

0.33

 

 

$

0.02

 

 

6

%

Average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

161,398

 

 

172,485

 

 

(11,087

)

 

(6

)%

Diluted

162,898

 

 

174,259

 

 

(11,361

)

 

(7

)%

EBITDA

$

245,846

 

 

$

311,801

 

 

$

(65,955

)

 

(21

)%

Adjusted EBITDA

$

262,660

 

 

$

641,033

 

 

$

(378,373

)

 

(59

)%

 

Years Ended

December 31,

 

Change from 2018

 

2019

 

2018

 

Change

 

Percent

 

(In thousands, except per share data)

Sales and other revenues

$

17,486,578

 

 

$

17,714,666

 

 

$

(228,088

)

 

(1

)%

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of products sold:

 

 

 

 

 

 

 

Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)

13,918,384

 

 

13,940,782

 

 

(22,398

)

 

 

Lower of cost or market inventory valuation adjustment

(119,775

)

 

136,305

 

 

(256,080

)

 

(188

)

 

13,798,609

 

 

14,077,087

 

 

(278,478

)

 

(2

)

Operating expenses

1,394,052

 

 

1,285,838

 

 

108,214

 

 

8

 

Selling, general and administrative expenses

354,236

 

 

290,424

 

 

63,812

 

 

22

 

Depreciation and amortization

509,925

 

 

437,324

 

 

72,601

 

 

17

 

Goodwill impairment

152,712

 

 

 

 

152,712

 

 

 

Total operating costs and expenses

16,209,534

 

 

16,090,673

 

 

118,861

 

 

1

 

Income from operations

1,277,044

 

 

1,623,993

 

 

(346,949

)

 

(21

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Earnings of equity method investments

5,180

 

 

5,825

 

 

(645

)

 

(11

)

Interest income

22,139

 

 

16,892

 

 

5,247

 

 

31

 

Interest expense

(143,321

)

 

(131,363

)

 

(11,958

)

 

9

 

Gain on foreign currency transactions

5,449

 

 

6,197

 

 

(748

)

 

(12

)

Other, net

5,013

 

 

2,923

 

 

2,090

 

 

72

 

 

(105,540

)

 

(99,526

)

 

(6,014

)

 

6

 

Income before income taxes

1,171,504

 

 

1,524,467

 

 

(352,963

)

 

(23

)

Income tax expense

299,152

 

 

347,243

 

 

(48,091

)

 

(14

)

Net income

872,352

 

 

1,177,224

 

 

(304,872

)

 

(26

)

Less net income attributable to noncontrolling interest

99,964

 

 

79,264

 

 

20,700

 

 

26

 

Net income attributable to HollyFrontier stockholders

$

772,388

 

 

$

1,097,960

 

 

$

(325,572

)

 

(30

)%

 

 

 

 

 

 

 

 

Earnings per share attributable to HollyFrontier stockholders:

 

 

 

 

 

 

 

Basic

$

4.64

 

 

$

6.25

 

 

$

(1.61

)

 

(26

)%

Diluted

$

4.61

 

 

$

6.19

 

 

$

(1.58

)

 

(26

)%

Cash dividends declared per common share

$

1.34

 

 

$

1.32

 

 

$

0.02

 

 

2

%

Average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

166,287

 

 

175,009

 

 

(8,722

)

 

(5

)%

Diluted

167,385

 

 

176,661

 

 

(9,276

)

 

(5

)%

EBITDA

$

1,702,647

 

 

$

1,996,998

 

 

$

(294,351

)

 

(15

)%

Adjusted EBITDA

$

1,714,524

 

 

$

2,054,653

 

 

$

(340,129

)

 

(17

)%

Balance Sheet Data

 

Years Ended December 31,

 

2019

 

2018

 

(In thousands)

Cash and cash equivalents

$

885,162

 

 

$

1,154,752

 

Working capital

$

1,620,261

 

 

$

2,128,224

 

Total assets

$

12,164,841

 

 

$

10,994,601

 

Long-term debt

$

2,455,640

 

 

$

2,411,540

 

Total equity

$

6,509,426

 

 

$

6,459,059

 

Segment Information

Our operations are organized into three reportable segments: Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.

The Refining segment includes the operations of our El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross refineries and HollyFrontier Asphalt Company LLC (“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. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

The Lubricants and Specialty Products segment includes Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.

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 processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. 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

 

Lubricants

and Specialty

Products

 

HEP

 

Corporate,

Other and

Eliminations

 

Consolidated

Total

 

 

(In thousands)

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

3,837,269

 

 

$

512,980

 

 

$

31,639

 

 

$

 

 

$

4,381,888

 

Intersegment revenues

 

67,879

 

 

3,150

 

 

99,995

 

 

(171,024

)

 

 

 

 

$

3,905,148

 

 

$

516,130

 

 

$

131,634

 

 

$

(171,024

)

 

$

4,381,888

 

Cost of products sold (exclusive of lower of cost or market inventory adjustment)

 

$

3,381,967

 

 

$

377,740

 

 

$

 

 

$

(149,179

)

 

$

3,610,528

 

Lower of cost or market inventory valuation adjustment

 

$

30,708

 

 

$

 

 

$

 

 

$

 

 

$

30,708

 

Operating expenses

 

$

301,407

 

 

$

60,868

 

 

$

38,951

 

 

$

(17,596

)

 

$

383,630

 

Selling, general and administrative expenses

 

$

32,196

 

 

$

42,914

 

 

$

2,929

 

 

$

15,220

 

 

$

93,259

 

Depreciation and amortization

 

$

82,527

 

 

$

22,890

 

 

$

24,514

 

 

$

4,649

 

 

$

134,580

 

Income (loss) from operations

 

$

76,343

 

 

$

11,718

 

 

$

65,240

 

 

$

(24,118

)

 

$

129,183

 

Income (loss) before interest and income taxes

 

$

76,343

 

 

$

11,681

 

 

$

65,532

 

 

$

(21,826

)

 

$

131,730

 

Net income attributable to noncontrolling interest

 

$

 

 

$

 

 

$

1,457

 

 

$

19,007

 

 

$

20,464

 

Earnings of equity method investments

 

$

 

 

$

 

 

$

(37

)

 

$

 

 

$

(37

)

Capital expenditures

 

$

69,835

 

 

$

15,110

 

 

$

6,284

 

 

$

7,477

 

 

$

98,706

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

3,890,507

 

 

$

422,975

 

 

$

30,613

 

 

$

109

 

 

$

4,344,204

 

Intersegment revenues

 

85,721

 

 

1,313

 

 

102,179

 

 

(189,213

)

 

 

 

 

$

3,976,228

 

 

$

424,288

 

 

$

132,792

 

 

$

(189,104

)

 

$

4,344,204

 

Cost of products sold (exclusive of lower of cost or market inventory adjustment)

 

$

3,071,340

 

 

$

341,126

 

 

$

 

 

$

(166,959

)

 

$

3,245,507

 

Lower of cost or market inventory valuation adjustment

 

$

329,232

 

 

$

 

 

$

 

 

$

 

 

$

329,232

 

Operating expenses

 

$

290,794

 

 

$

42,719

 

 

$

39,699

 

 

$

(21,073

)

 

$

352,139

 

Selling, general and administrative expenses

 

$

30,675

 

 

$

44,325

 

 

$

2,748

 

 

$

8,207

 

 

$

85,955

 

Depreciation and amortization

 

$

73,482

 

 

$

13,232

 

 

$

24,375

 

 

$

2,630

 

 

$

113,719

 

Income (loss) from operations

 

$

180,705

 

 

$

(17,114

)

 

$

65,970

 

 

$

(11,909

)

 

$

217,652

 

Income (loss) before interest and income taxes

 

$

180,705

 

 

$

(16,737

)

 

$

67,719

 

 

$

(12,184

)

 

$

219,503

 

Net income attributable to noncontrolling interest

 

$

 

 

$

 

 

$

1,405

 

 

$

20,016

 

 

$

21,421

 

Earnings of equity method investments

 

$

 

 

$

 

 

$

1,698

 

 

$

 

 

$

1,698

 

Capital expenditures

 

$

70,741

 

 

$

14,309

 

 

$

13,030

 

 

$

3,871

 

 

$

101,951

 

 

 

Refining

 

Lubricants

and Specialty

Products

 

HEP

 

Corporate,

Other and

Eliminations

 

Consolidated

Total

 

 

(In thousands)

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

15,284,110

 

 

$

2,081,221

 

 

$

121,027

 

 

$

220

 

 

$

17,486,578

 

Intersegment revenues

 

312,678

 

 

11,307

 

 

411,750

 

 

(735,735

)

 

 

 

 

$

15,596,788

 

 

$

2,092,528

 

 

$

532,777

 

 

$

(735,515

)

 

$

17,486,578

 

Cost of products sold (exclusive of lower of cost or market inventory adjustment)

 

$

12,980,506

 

 

$

1,580,036

 

 

$

 

 

$

(642,158

)

 

$

13,918,384

 

Lower of cost or market inventory valuation adjustment

 

$

(119,775

)

 

$

 

 

$

 

 

$

 

 

$

(119,775

)

Operating expenses

 

$

1,095,488

 

 

$

231,523

 

 

$

161,996

 

 

$

(94,955

)

 

$

1,394,052

 

Selling, general and administrative expenses

 

$

120,518

 

 

$

168,595

 

 

$

10,251

 

 

$

54,872

 

 

$

354,236

 

Depreciation and amortization

 

$

309,932

 

 

$

88,781

 

 

$

96,706

 

 

$

14,506

 

 

$

509,925

 

Goodwill impairment

 

$

 

 

$

152,712

 

 

$

 

 

$

 

 

$

152,712

 

Income (loss) from operations

 

$

1,210,119

 

 

$

(129,119

)

 

$

263,824

 

 

$

(67,780

)

 

$

1,277,044

 

Income (loss) before interest and income taxes (1)

 

$

1,210,119

 

 

$

(128,837

)

 

$

304,442

 

 

$

(93,038

)

 

$

1,292,686

 

Net income attributable to noncontrolling interest

 

$

 

 

$

 

 

$

4,981

 

 

$

94,983

 

 

$

99,964

 

Earnings of equity method investments

 

$

 

 

$

 

 

$

5,180

 

 

$

 

 

$

5,180

 

Capital expenditures

 

$

199,002

 

 

$

40,997

 

 

$

30,112

 

 

$

23,652

 

 

$

293,763

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

15,806,304

 

 

$

1,799,506

 

 

$

108,412

 

 

$

444

 

 

$

17,714,666

 

Intersegment revenues

 

370,259

 

 

13,197

 

 

397,808

 

 

(781,264

)

 

 

 

 

$

16,176,563

 

 

$

1,812,703

 

 

$

506,220

 

 

$

(780,820

)

 

$

17,714,666

 

Cost of products sold (exclusive of lower of cost or market inventory adjustment)

 

$

13,250,849

 

 

$

1,381,540

 

 

$

 

 

$

(691,607

)

 

$

13,940,782

 

Lower of cost or market inventory valuation adjustment

 

$

136,305

 

 

$

 

 

$

 

 

$

 

 

$

136,305

 

Operating expenses

 

$

1,055,209

 

 

$

167,820

 

 

$

146,430

 

 

$

(83,621

)

 

$

1,285,838

 

Selling, general and administrative expenses

 

$

113,641

 

 

$

143,750

 

 

$

11,041

 

 

$

21,992

 

 

$

290,424

 

Depreciation and amortization

 

$

284,439

 

 

$

43,255

 

 

$

98,492

 

 

$

11,138

 

 

$

437,324

 

Income (loss) from operations

 

$

1,336,120

 

 

$

76,338

 

 

$

250,257

 

 

$

(38,722

)

 

$

1,623,993

 

Income (loss) before interest and income taxes

 

$

1,336,120

 

 

$

77,640

 

 

$

256,204

 

 

$

(31,026

)

 

$

1,638,938

 

Net income attributable to noncontrolling interest

 

$

 

 

$

 

 

$

4,520

 

 

$

74,744

 

 

$

79,264

 

Earnings of equity method investments

 

$

 

 

$

 

 

$

5,825

 

 

$

 

 

$

5,825

 

Capital expenditures

 

$

202,791

 

 

$

37,448

 

 

$

54,141

 

 

$

16,649

 

 

$

311,029

 

(1)

HEP segment includes a $35.2 million gain due to new throughput agreements on specific HEP assets that meet the definition of sales-type leases. This gain is eliminated in HFC consolidation.

 

 

Refining

 

Lubricants

and Specialty

Products

 

HEP

 

Corporate,

Other and

Eliminations

 

Consolidated

Total

 

 

(In thousands)

December 31, 2019

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9,755

 

 

$

169,277

 

 

$

13,287

 

 

$

692,843

 

 

$

885,162

 

Total assets

 

$

7,189,094

 

 

$

2,223,418

 

 

$

2,205,437

 

 

$

546,892

 

 

$

12,164,841

 

Long-term debt

 

$

 

 

$

 

 

$

1,462,031

 

 

$

993,609

 

 

$

2,455,640

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,236

 

 

$

80,931

 

 

$

3,045

 

 

$

1,063,540

 

 

$

1,154,752

 

Total assets

 

$

6,465,155

 

 

$

1,506,209

 

 

$

2,142,027

 

 

$

881,210

 

 

$

10,994,601

 

Long-term debt

 

$

 

 

$

 

 

$

1,418,900

 

 

$

992,640

 

 

$

2,411,540

 

Refining Segment Operating Data

The following tables set forth information, including non-GAAP (Generally Accepted Accounting Principles) performance measures about our refinery operations. 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

December 31,

 

Years Ended

December 31,

 

 

2019

 

2018

 

2019

 

2018

Mid-Continent Region (El Dorado and Tulsa Refineries)

 

 

 

 

 

 

Crude charge (BPD) (1)

 

243,400

 

 

216,870

 

 

254,010

 

 

249,240

 

Refinery throughput (BPD) (2)

 

256,790

 

 

236,240

 

 

268,500

 

 

264,730

 

Sales of produced refined products (BPD) (3)

 

254,950

 

 

243,680

 

 

259,310

 

 

255,800

 

Refinery utilization (4)

 

93.6

%

 

83.4

%

 

97.7

%

 

95.9

%

 

 

 

 

 

 

 

 

 

Average per produced barrel (5)

 

 

 

 

 

 

 

 

Refinery gross margin

 

$

11.15

 

 

$

19.01

 

 

$

13.71

 

 

$

14.44

 

Refinery operating expenses (6)

 

6.66

 

 

6.55

 

 

5.77

 

 

5.51

 

Net operating margin

 

$

4.49

 

 

$

12.46

 

 

$

7.94

 

 

$

8.93

 

 

 

 

 

 

 

 

 

 

Refinery operating expenses per throughput barrel (7)

 

$

6.61

 

 

$

6.76

 

 

$

5.58

 

 

$

5.32

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

54

%

 

56

%

 

55

%

 

54

%

Sour crude oil

 

26

%

 

25

%

 

24

%

 

24

%

Heavy sour crude oil

 

15

%

 

11

%

 

16

%

 

16

%

Other feedstocks and blends

 

5

%

 

8

%

 

5

%

 

6

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

53

%

 

52

%

 

51

%

 

51

%

Diesel fuels

 

30

%

 

30

%

 

32

%

 

33

%

Jet fuels

 

6

%

 

7

%

 

7

%

 

6

%

Fuel oil

 

1

%

 

1

%

 

1

%

 

1

%

Asphalt

 

4

%

 

3

%

 

3

%

 

3

%

Base oils

 

3

%

 

4

%

 

4

%

 

4

%

LPG and other

 

3

%

 

3

%

 

2

%

 

2

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

 

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2019

 

2018

 

2019

 

2018

Southwest Region (Navajo Refinery)

 

 

 

 

 

 

 

 

Crude charge (BPD) (1)

 

85,240

 

 

110,160

 

 

101,760

 

 

109,440

 

Refinery throughput (BPD) (2)

 

94,710

 

 

119,640

 

 

111,870

 

 

118,630

 

Sales of produced refined products (BPD) (3)

 

106,770

 

 

119,390

 

 

117,230

 

 

120,520

 

Refinery utilization (4)

 

85.2

%

 

110.2

%

 

101.8

%

 

109.4

%

 

 

 

 

 

 

 

 

 

Average per produced barrel (5)

 

 

 

 

 

 

 

 

Refinery gross margin

 

$

17.71

 

 

$

22.68

 

 

$

18.97

 

 

$

19.05

 

Refinery operating expenses (6)

 

5.78

 

 

5.37

 

 

5.10

 

 

4.81

 

Net operating margin

 

$

11.93

 

 

$

17.31

 

 

$

13.87

 

 

$

14.24

 

 

 

 

 

 

 

 

 

 

Refinery operating expenses per throughput barrel (7)

 

$

6.52

 

 

$

5.36

 

 

$

5.35

 

 

$

4.89

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

23

%

 

14

%

 

21

%

 

27

%

Sour crude oil

 

67

%

 

78

%

 

70

%

 

65

%

Other feedstocks and blends

 

10

%

 

8

%

 

9

%

 

8

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

54

%

 

51

%

 

52

%

 

50

%

Diesel fuels

 

33

%

 

39

%

 

37

%

 

40

%

Fuel oil

 

2

%

 

3

%

 

3

%

 

3

%

Asphalt

 

5

%

 

4

%

 

5

%

 

4

%

LPG and other

 

6

%

 

3

%

 

3

%

 

3

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

 

Rocky Mountain Region (Cheyenne and Woods Cross Refineries)

 

 

 

 

 

 

Crude charge (BPD) (1)

 

51,920

 

 

78,550

 

 

71,830

 

 

72,890

 

Refinery throughput (BPD) (2)

 

57,230

 

 

84,670

 

 

78,230

 

 

79,980

 

Sales of produced refined products (BPD) (3)

 

57,090

 

 

80,600

 

 

72,650

 

 

76,300

 

Refinery utilization (4)

 

53.5

%

 

81.0

%

 

74.1

%

 

75.1

%

 

 

 

 

 

 

 

 

 

Average per produced barrel (5)

 

 

 

 

 

 

 

 

Refinery gross margin

 

$

16.69

 

 

$

30.96

 

 

$

19.13

 

 

$

26.55

 

Refinery operating expenses (6)

 

16.85

 

 

11.45

 

 

12.47

 

 

11.83

 

Net operating margin

 

$

(0.16

)

 

$

19.51

 

 

$

6.66

 

 

$

14.72

 

 

 

 

 

 

 

 

 

 

Refinery operating expenses per throughput barrel (7)

 

$

16.81

 

 

$

10.90

 

 

$

11.58

 

 

$

11.28

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

37

%

 

34

%

 

36

%

 

28

%

Heavy sour crude oil

 

25

%

 

38

%

 

32

%

 

42

%

Black wax crude oil

 

29

%

 

21

%

 

24

%

 

21

%

Other feedstocks and blends

 

9

%

 

7

%

 

8

%

 

9

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

Contacts

Richard L. Voliva III, Executive Vice President and Chief Financial Officer

Craig Biery, Director, Investor Relations

HollyFrontier Corporation

214-954-6510

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