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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information
Segment Information

Our operations are organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Consolidations and Eliminations.

The Refining segment represents the operations of the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and NK Asphalt. 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. NK Asphalt operates various asphalt terminals in Arizona and New Mexico.

The HEP segment includes all of the operations of HEP, a consolidated VIE, which owns and operates logistic assets consisting of petroleum product and crude oil pipelines and terminal, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Revenues are generated by charging tariffs for transporting petroleum products and crude oil through its pipelines, by leasing certain pipeline capacity to Alon USA, Inc., by charging fees for terminalling refined products and other hydrocarbons and storing and providing other services at its storage tanks and terminals. The HEP segment also includes a 25% interest in SLC Pipeline that services refineries in the Salt Lake City, Utah area. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Our revaluation of HEP’s assets and liabilities at March 1, 2008 (date of reconsolidation) resulted in basis adjustments to our consolidated HEP balances. Therefore, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings.

The accounting policies for our segments are the same as those described in the summary of significant accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2011.
 
 
Refining (1)
 
HEP
 
Corporate
and Other
 
Consolidations
and Eliminations
 
Consolidated
Total
 
 
(In thousands)
Three Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
4,795,469

 
$
63,692

 
$
4,411

 
$
(56,891
)
 
$
4,806,681

Depreciation and amortization
 
$
43,665

 
$
8,728

 
$
4,762

 
$
(207
)
 
$
56,948

Income (loss) from operations
 
$
812,936

 
$
34,554

 
$
(33,756
)
 
$
(597
)
 
$
813,137

Capital expenditures
 
$
56,262

 
$
5,681

 
$
4,690

 
$
—

 
$
66,633

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2011
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
2,953,226

 
$
50,940

 
$
153

 
$
(37,186
)
 
$
2,967,133

Depreciation and amortization
 
$
23,478

 
$
7,309

 
$
1,252

 
$
(207
)
 
$
31,832

Income (loss) from operations
 
$
321,032

 
$
27,692

 
$
(18,040
)
 
$
(505
)
 
$
330,179

Capital expenditures
 
$
25,152

 
$
11,425

 
$
45,690

 
$
—

 
$
82,267

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
9,715,200

 
$
127,207

 
$
8,635

 
$
(112,623
)
 
$
9,738,419

Depreciation and amortization
 
$
85,197

 
$
18,587

 
$
9,680

 
$
(414
)
 
$
113,050

Income (loss) from operations
 
$
1,228,062

 
$
69,183

 
$
(63,505
)
 
$
(1,039
)
 
$
1,232,701

Capital expenditures
 
$
101,796

 
$
12,008

 
$
14,216

 
$
—

 
$
128,020

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2011
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
5,268,318

 
$
95,945

 
$
801

 
$
(71,346
)
 
$
5,293,718

Depreciation and amortization
 
$
46,461

 
$
14,544

 
$
2,549

 
$
(414
)
 
$
63,140

Income (loss) from operations
 
$
473,136

 
$
51,303

 
$
(34,138
)
 
$
(1,023
)
 
$
489,278

Capital expenditures
 
$
45,784

 
$
22,900

 
$
87,621

 
$
—

 
$
156,305

 
 
Refining (1)
 
HEP
 
Corporate and Other
 
Consolidations and Eliminations
 
Consolidated Total
 
 
(in thousands)
June 30, 2012
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and investments in marketable securities
 
$
19

 
$
4,216

 
$
1,644,211

 
$
—

 
$
1,648,446

Total assets
 
$
7,213,749

 
$
988,670

 
$
1,222,787

 
$
(42,674
)
 
$
9,382,532

Long-term debt
 
$
—

 
$
613,195

 
$
698,156

 
$
(16,188
)
 
$
1,295,163

 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and investments in marketable securities
 
$
—

 
$
3,269

 
$
1,837,341

 
$
—

 
$
1,840,610

Total assets
 
$
6,280,426

 
$
995,120

 
$
2,421,140

 
$
(120,443
)
 
$
9,576,243

Long-term debt
 
$
—

 
$
598,761

 
$
705,331

 
$
(89,350
)
 
$
1,214,742

(1) The Refining segment reflects the operations of the El Dorado and Cheyenne Refineries beginning July 1, 2011 (date of Holly-Frontier merger).

HEP segment revenues from external customers were $9.5 million and $13.8 million for the three months ended June 30, 2012 and 2011, respectively, and $20.2 million and $24.7 million for the six months ended June 30, 2012 and 2011, respectively.