Delaware (State or other jurisdiction of incorporation) | 001-03876 (Commission File Number) | 75-1056913 (I.R.S. Employer Identification Number) |
2828 N. Harwood, Suite 1300 Dallas, TX (Address of principal executive offices) | 75201 (Zip code) |
99.1 | — Press Release of the Company issued May 7, 2012 announcing first quarter of 2012 results.* |
99.1 | — Press Release of the Company issued May 7, 2012 announcing first quarter of 2012 results.* |
Press Release May 7, 2012 |
Three Months Ended March 31, | Change from 2011 | |||||||||||||
2012 | 2011 | Change | Percent | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Sales and other revenues | $ | 4,931,738 | $ | 2,326,585 | $ | 2,605,153 | 112.0 | % | ||||||
Operating costs and expenses: | ||||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 4,186,917 | 1,984,617 | 2,202,300 | 111.0 | ||||||||||
Operating expenses (exclusive of depreciation and amortization) | 241,627 | 134,743 | 106,884 | 79.3 | ||||||||||
General and administrative expenses (exclusive of depreciation and amortization) | 27,528 | 16,818 | 10,710 | 63.7 | ||||||||||
Depreciation and amortization | 56,102 | 31,308 | 24,794 | 79.2 | ||||||||||
Total operating costs and expenses | 4,512,174 | 2,167,486 | 2,344,688 | 108.2 | ||||||||||
Income from operations | 419,564 | 159,099 | 260,465 | 163.7 | ||||||||||
Other income (expense): | ||||||||||||||
Earnings in equity method investments | 717 | 740 | (23 | ) | (3.1 | ) | ||||||||
Interest income | 460 | 85 | 375 | 441.2 | ||||||||||
Interest expense | (33,315 | ) | (16,204 | ) | (17,111 | ) | 105.6 | |||||||
Merger transaction costs | — | (3,698 | ) | 3,698 | (100.0 | ) | ||||||||
(32,138 | ) | (19,077 | ) | (13,061 | ) | 68.5 | ||||||||
Income before income taxes | 387,426 | 140,022 | 247,404 | 176.7 | ||||||||||
Income tax provision | 140,406 | 49,011 | 91,395 | 186.5 | ||||||||||
Net income | 247,020 | 91,011 | 156,009 | 171.4 | ||||||||||
Less net income attributable to noncontrolling interest | 5,324 | 6,317 | (993 | ) | (15.7 | ) | ||||||||
Net income attributable to HollyFrontier stockholders | $ | 241,696 | $ | 84,694 | $ | 157,002 | 185.4 | % | ||||||
Earnings per share attributable to HollyFrontier stockholders: | ||||||||||||||
Basic | $ | 1.16 | $ | 0.79 | $ | 0.37 | 46.8 | % | ||||||
Diluted | $ | 1.16 | $ | 0.79 | $ | 0.37 | 46.8 | % | ||||||
Cash dividends declared per common share | $ | 0.60 | $ | 0.075 | $ | 0.525 | 700.0 | % | ||||||
Average number of common shares outstanding: | ||||||||||||||
Basic | 208,531 | 106,614 | 101,917 | 95.6 | % | |||||||||
Diluted | 209,138 | 107,266 | 101,872 | 95.0 | % | |||||||||
EBITDA | $ | 471,059 | $ | 181,132 | $ | 289,927 | 160.1 | % |
March 31, | December 31, | ||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Cash, cash equivalents and investments in marketable securities | $ | 1,927,536 | $ | 1,840,610 | |||
Working capital | $ | 2,009,220 | $ | 2,030,063 | |||
Total assets | $ | 9,785,750 | $ | 9,576,243 | |||
Long-term debt, including current portion | $ | 1,312,042 | $ | 1,214,742 | |||
Total equity | $ | 5,789,579 | $ | 5,835,900 |
Refining | HEP | Corporate and Other | Consolidations and Eliminations | Consolidated Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended March 31, 2012 | |||||||||||||||||||
Sales and other revenues | $ | 4,919,731 | $ | 63,515 | $ | 4,224 | $ | (55,732 | ) | $ | 4,931,738 | ||||||||
Depreciation and amortization | $ | 41,532 | $ | 9,859 | $ | 4,918 | $ | (207 | ) | $ | 56,102 | ||||||||
Income (loss) from operations | $ | 415,126 | $ | 34,629 | $ | (29,749 | ) | $ | (442 | ) | $ | 419,564 | |||||||
Capital expenditures | $ | 45,534 | $ | 6,327 | $ | 9,526 | $ | — | $ | 61,387 | |||||||||
Three Months Ended March 31, 2011 | |||||||||||||||||||
Sales and other revenues | $ | 2,315,092 | $ | 45,005 | $ | 648 | $ | (34,160 | ) | $ | 2,326,585 | ||||||||
Depreciation and amortization | $ | 22,983 | $ | 7,235 | $ | 1,297 | $ | (207 | ) | $ | 31,308 | ||||||||
Income (loss) from operations | $ | 152,104 | $ | 23,611 | $ | (16,098 | ) | $ | (518 | ) | $ | 159,099 | |||||||
Capital expenditures | $ | 22,965 | $ | 11,475 | $ | 39,598 | $ | — | $ | 74,038 | |||||||||
March 31, 2012 | |||||||||||||||||||
Cash, cash equivalents and investments in marketable securities | $ | — | $ | 12,402 | $ | 1,915,134 | $ | — | $ | 1,927,536 | |||||||||
Total assets | $ | 6,350,079 | $ | 998,400 | $ | 2,481,873 | $ | (44,602 | ) | $ | 9,785,750 | ||||||||
Long-term debt, including current portion | $ | — | $ | 624,237 | $ | 704,126 | $ | (16,321 | ) | $ | 1,312,042 | ||||||||
December 31, 2011 | |||||||||||||||||||
Cash, cash equivalents and investments in marketable securities | $ | — | $ | 3,269 | $ | 1,837,341 | $ | — | $ | 1,840,610 | |||||||||
Total assets | $ | 6,280,426 | $ | 992,408 | $ | 2,421,140 | $ | (117,731 | ) | $ | 9,576,243 | ||||||||
Long-term debt, including current portion | $ | — | $ | 598,761 | $ | 705,331 | $ | (89,350 | ) | $ | 1,214,742 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Mid-Continent Region (El Dorado and Tulsa Refineries) | |||||||
Crude charge (BPD) (1) | 256,270 | 105,600 | |||||
Refinery throughput (BPD) (2) | 272,790 | 106,690 | |||||
Refinery production (BPD) (3) | 268,260 | 106,160 | |||||
Sales of produced refined products (BPD) | 259,060 | 100,010 | |||||
Sales of refined products (BPD) (4) | 264,390 | 100,400 | |||||
Refinery utilization (5) | 98.6 | % | 84.5 | % | |||
Average per produced barrel (6) | |||||||
Net sales | $ | 119.99 | $ | 115.29 | |||
Cost of products (7) | 102.20 | 100.50 | |||||
Refinery gross margin | 17.79 | 14.79 | |||||
Refinery operating expenses (8) | 4.81 | 5.98 | |||||
Net operating margin | $ | 12.98 | $ | 8.81 | |||
Refinery operating expenses per throughput barrel (9) | $ | 4.57 | $ | 5.61 | |||
Feedstocks: | |||||||
Sweet crude oil | 70 | % | 97 | % | |||
Sour crude oil | 9 | % | — | % | |||
Heavy sour crude oil | 15 | % | 2 | % | |||
Other feedstocks and blends | 6 | % | 1 | % | |||
Total | 100 | % | 100 | % | |||
Sales of produced refined products: | |||||||
Gasolines | 47 | % | 37 | % | |||
Diesel fuels | 32 | % | 31 | % | |||
Jet fuels | 9 | % | 8 | % | |||
Lubricants | 5 | % | 11 | % | |||
Asphalt | 1 | % | 4 | % | |||
Gas oil/intermediates | 1 | % | 7 | % | |||
LPG and other | 5 | % | 2 | % | |||
Total | 100 | % | 100 | % |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Southwest Region (Navajo Refinery) | |||||||
Crude charge (BPD) (1) | 81,140 | 69,980 | |||||
Refinery throughput (BPD) (2) | 90,400 | 78,930 | |||||
Refinery production (BPD) (3) | 87,060 | 76,720 | |||||
Sales of produced refined products (BPD) | 87,250 | 79,840 | |||||
Sales of refined products (BPD) (4) | 93,130 | 86,700 | |||||
Refinery utilization (5) | 81.1 | % | 70.0 | % | |||
Average per produced barrel (6) | |||||||
Net sales | $ | 125.91 | $ | 110.99 | |||
Cost of products (7) | 106.37 | 95.60 | |||||
Refinery gross margin | 19.54 | 15.39 | |||||
Refinery operating expenses (8) | 6.67 | 6.34 | |||||
Net operating margin | $ | 12.87 | $ | 9.05 | |||
Refinery operating expenses per throughput barrel (9) | $ | 6.44 | $ | 6.42 | |||
Feedstocks: | |||||||
Sweet crude oil | — | % | 5 | % | |||
Sour crude oil | 81 | % | 73 | % | |||
Heavy sour crude oil | 9 | % | 11 | % | |||
Other feedstocks and blends | 10 | % | 11 | % | |||
Total | 100 | % | 100 | % | |||
Sales of produced refined products: | |||||||
Gasolines | 54 | % | 51 | % | |||
Diesel fuels | 36 | % | 35 | % | |||
Jet fuels | — | % | 1 | % | |||
Fuel oil | 5 | % | 5 | % | |||
Asphalt | 2 | % | 5 | % | |||
LPG and other | 3 | % | 3 | % | |||
Total | 100 | % | 100 | % |
Rocky Mountain Region (Cheyenne and Woods Cross Refineries) | |||||
Crude charge (BPD) (1) | 70,240 | 25,770 | |||
Refinery throughput (BPD) (2) | 78,740 | 27,900 | |||
Refinery production (BPD) (3) | 77,200 | 26,620 | |||
Sales of produced refined products (BPD) | 76,640 | 26,650 | |||
Sales of refined products (BPD) (4) | 79,320 | 26,740 | |||
Refinery utilization (5) | 84.6 | % | 83.1 | % |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Rocky Mountain Region (Cheyenne and Woods Cross Refineries) | |||||||
Average per produced barrel (6) | |||||||
Net sales | $ | 110.76 | $ | 108.77 | |||
Cost of products (7) | 96.79 | 89.87 | |||||
Refinery gross margin | 13.97 | 18.90 | |||||
Refinery operating expenses (8) | 6.57 | 6.43 | |||||
Net operating margin | $ | 7.40 | $ | 12.47 | |||
Refinery operating expenses per throughput barrel (9) | $ | 6.39 | $ | 6.14 | |||
Feedstocks: | |||||||
Sweet crude oil | 45 | % | 57 | % | |||
Sour crude oil | 2 | % | — | % | |||
Heavy sour crude oil | 31 | % | 4 | % | |||
Black wax crude oil | 11 | % | 31 | % | |||
Other feedstocks and blends | 11 | % | 8 | % | |||
Total | 100 | % | 100 | % | |||
Sales of produced refined products: | |||||||
Gasolines | 56 | % | 61 | % | |||
Diesel fuels | 30 | % | 29 | % | |||
Jet fuels | 1 | % | 2 | % | |||
Fuel oil | 2 | % | 2 | % | |||
Asphalt | 5 | % | 3 | % | |||
LPG and other | 6 | % | 3 | % | |||
Total | 100 | % | 100 | % |
Consolidated | |||||||
Crude charge (BPD) (1) | 407,650 | 201,350 | |||||
Refinery throughput (BPD) (2) | 441,930 | 213,520 | |||||
Refinery production (BPD) (3) | 432,520 | 209,500 | |||||
Sales of produced refined products (BPD) | 422,950 | 206,500 | |||||
Sales of refined products (BPD) (4) | 436,840 | 213,840 | |||||
Refinery utilization (5) | 92.0 | % | 78.7 | % | |||
Average per produced barrel (6) | |||||||
Net sales | $ | 119.54 | $ | 113.28 | |||
Cost of products (7) | 102.08 | 97.56 | |||||
Refinery gross margin | 17.46 | 15.72 | |||||
Refinery operating expenses (8) | 5.51 | 6.24 | |||||
Net operating margin | $ | 11.95 | $ | 9.48 | |||
Refinery operating expenses per throughput barrel (9) | $ | 5.28 | $ | 5.98 | |||
Feedstocks: | |||||||
Sweet crude oil | 52 | % | 58 | % | |||
Sour crude oil | 22 | % | 27 | % | |||
Heavy sour crude oil | 16 | % | 5 | % | |||
Black wax crude oil | 2 | % | 4 | % | |||
Other feedstocks and blends | 8 | % | 6 | % | |||
Total | 100 | % | 100 | % |
Three Months Ended March 31, | |||||
2012 | 2011 | ||||
Consolidated | |||||
Sales of produced refined products: | |||||
Gasolines | 50 | % | 45 | % | |
Diesel fuels | 32 | % | 33 | % | |
Jet fuels | 6 | % | 4 | % | |
Fuel oil | 2 | % | 2 | % | |
Asphalt | 2 | % | 4 | % | |
Lubricants | 3 | % | 6 | % | |
Gas oil / intermediates | — | % | 3 | % | |
LPG and other | 5 | % | 3 | % | |
Total | 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). As a result of our merger effective July 1, 2011 our consolidated crude capacity increased from 256,000 BPSD to 443,000 BPSD. |
(6) | Represents average per barrel amount for produced refined products sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. |
(7) | Transportation costs billed from HEP are included in cost of products. |
(8) | Represents operating expenses of our refineries, exclusive of depreciation and amortization. |
(9) | Represents refinery operating expenses, exclusive of depreciation and amortization divided by refinery throughput. |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Net income attributable to HollyFrontier stockholders | $ | 241,696 | $ | 84,694 | |||
Add income tax provision | 140,406 | 49,011 | |||||
Add interest expense | 33,315 | 16,204 | |||||
Subtract interest income | (460 | ) | (85 | ) | |||
Add depreciation and amortization | 56,102 | 31,308 | |||||
EBITDA | $ | 471,059 | $ | 181,132 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(Dollars in thousands, except per barrel amounts) | |||||||
Consolidated | |||||||
Average sales price per produced barrel sold | $ | 119.54 | $ | 113.28 | |||
Times sales of produced refined products (BPD) | 422,950 | 206,500 | |||||
Times number of days in period | 91 | 90 | |||||
Refined product sales from produced products sold | $ | 4,600,909 | $ | 2,105,309 | |||
Total refined product sales | $ | 4,600,909 | $ | 2,105,309 | |||
Add refined product sales from purchased products and rounding (1) | 155,613 | 66,624 | |||||
Total refined product sales | 4,756,522 | 2,171,933 | |||||
Add direct sales of excess crude oil (2) | 158,282 | 135,409 | |||||
Add other refining segment revenue (3) | 4,927 | 7,750 | |||||
Total refining segment revenue | 4,919,731 | 2,315,092 | |||||
Add HEP segment sales and other revenues | 63,515 | 45,005 | |||||
Add corporate and other revenues | 4,224 | 648 | |||||
Subtract consolidations and eliminations | (55,732 | ) | (34,160 | ) | |||
Sales and other revenues | $ | 4,931,738 | $ | 2,326,585 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(Dollars in thousands, except per barrel amounts) | |||||||
Consolidated | |||||||
Average cost of products per produced barrel sold | $ | 102.08 | $ | 97.56 | |||
Times sales of produced refined products (BPD) | 422,950 | 206,500 | |||||
Times number of days in period | 91 | 90 | |||||
Cost of products for produced products sold | $ | 3,928,901 | $ | 1,813,153 | |||
Total cost of products for produced products sold | $ | 3,928,901 | $ | 1,813,153 | |||
Add refined product costs from purchased products sold and rounding (1) | 156,672 | 69,555 | |||||
Total cost of refined products sold | 4,085,573 | 1,882,708 | |||||
Add crude oil cost of direct sales of excess crude oil (2) | 155,810 | 132,880 | |||||
Add other refining segment cost of products sold (4) | 409 | 2,338 | |||||
Total refining segment cost of products sold | 4,241,792 | 2,017,926 | |||||
Subtract consolidations and eliminations | (54,875 | ) | (33,309 | ) | |||
Costs of products sold (exclusive of depreciation and amortization) | $ | 4,186,917 | $ | 1,984,617 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(Dollars in thousands, except per barrel amounts) | |||||||
Consolidated | |||||||
Average refinery operating expenses per produced barrel sold | $ | 5.51 | $ | 6.24 | |||
Times sales of produced refined products (BPD) | 422,950 | 206,500 | |||||
Times number of days in period | 91 | 90 | |||||
Refinery operating expenses for produced products sold | $ | 212,071 | $ | 115,970 | |||
Total refinery operating expenses for produced products sold | $ | 212,071 | $ | 115,970 | |||
Add other refining segment operating expenses and rounding (5) | 9,210 | 6,109 | |||||
Total refining segment operating expenses | 221,281 | 122,079 | |||||
Add HEP segment operating expenses | 16,988 | 12,796 | |||||
Add corporate and other costs | 3,566 | (6 | ) | ||||
Subtract consolidations and eliminations | (208 | ) | (126 | ) | |||
Operating expenses (exclusive of depreciation and amortization) | $ | 241,627 | $ | 134,743 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(Dollars in thousands, except per barrel amounts) | |||||||
Consolidated | |||||||
Net operating margin per barrel | $ | 11.95 | $ | 9.48 | |||
Add average refinery operating expenses per produced barrel | 5.51 | 6.24 | |||||
Refinery gross margin per barrel | 17.46 | 15.72 | |||||
Add average cost of products per produced barrel sold | 102.08 | 97.56 | |||||
Average sales price per produced barrel sold | $ | 119.54 | $ | 113.28 | |||
Times sales of produced refined products (BPD) | 422,950 | 206,500 | |||||
Times number of days in period | 91 | 90 | |||||
Refined product sales from produced products sold | $ | 4,600,909 | $ | 2,105,309 | |||
Total refined product sales from produced products sold | $ | 4,600,909 | $ | 2,105,309 | |||
Add refined product sales from purchased products and rounding (1) | 155,613 | 66,624 | |||||
Total refined product sales | 4,756,522 | 2,171,933 | |||||
Add direct sales of excess crude oil (2) | 158,282 | 135,409 | |||||
Add other refining segment revenue (3) | 4,927 | 7,750 | |||||
Total refining segment revenue | 4,919,731 | 2,315,092 | |||||
Add HEP segment sales and other revenues | 63,515 | 45,005 | |||||
Add corporate and other revenues | 4,224 | 648 | |||||
Subtract consolidations and eliminations | (55,732 | ) | (34,160 | ) | |||
Sales and other revenues | $ | 4,931,738 | $ | 2,326,585 |
(1) | We purchase finished products when opportunities arise that provide a profit on the sale of such products, or to meet delivery commitments. |
(2) | We purchase crude oil that at times exceeds the supply needs of our refineries. Quantities in excess of our needs are sold at market prices to purchasers of crude oil that are recorded on a gross basis with the sales price recorded as revenues and the corresponding acquisition cost as inventory and then upon sale as cost of products sold. Additionally, at times we enter into buy/sell exchanges of crude oil with certain parties to facilitate the delivery of quantities to certain locations that are netted at carryover cost. |
(3) | Other refining segment revenue includes the incremental revenues associated with NK Asphalt and miscellaneous revenue. |
(4) | Other refining segment cost of products sold includes the incremental cost of products for NK Asphalt and miscellaneous costs. |
(5) | Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses of NK Asphalt. |