ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-1056913 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2828 N. Harwood, Suite 1300 Dallas, Texas | 75201 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Page | |
Consolidated Balance Sheets | |
Consolidated Statements of Comprehensive Income (Unaudited) | |
• | risks and uncertainties with respect to the actions of actual or potential competitive suppliers of refined petroleum products in our 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 our financing; |
• | the effectiveness of our capital investments and marketing strategies; |
• | our efficiency in carrying out construction projects; |
• | our ability to acquire refined product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or 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 our SEC filings. |
Item 1. | Financial Statements |
September 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | As Adjusted (see Note 2) | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents (HEP: $1,993 and $6,369, respectively) | $ | 2,057,408 | $ | 1,578,904 | |||
Marketable securities | 280,409 | 211,639 | |||||
Accounts receivable: Product and transportation (HEP: $42,832 and $37,290, respectively) | 734,662 | 703,691 | |||||
Crude oil resales | 2,212 | 5,166 | |||||
736,874 | 708,857 | ||||||
Inventories: Crude oil and refined products | 1,406,147 | 1,052,084 | |||||
Materials and supplies (HEP: $1,233 and $1,483, respectively) | 79,303 | 62,535 | |||||
1,485,450 | 1,114,619 | ||||||
Income taxes receivable | 40,548 | 87,277 | |||||
Prepayments and other (HEP: $3,080 and $2,246, respectively) | 31,232 | 219,450 | |||||
Total current assets | 4,631,921 | 3,920,746 | |||||
Properties, plants and equipment, at cost (HEP: $1,122,334 and $1,099,579, respectively) | 3,823,731 | 3,631,787 | |||||
Less accumulated depreciation (HEP: $(127,408) and $(93,200), respectively) | (703,799 | ) | (578,882 | ) | |||
3,119,932 | 3,052,905 | ||||||
Marketable securities (long-term) | 5,519 | 50,067 | |||||
Other assets: Turnaround costs | 83,585 | 57,060 | |||||
Goodwill (HEP: $288,991 and $288,991, respectively) | 2,338,302 | 2,336,510 | |||||
Intangibles and other (HEP: $76,096 and $75,902, respectively) | 166,677 | 158,955 | |||||
2,588,564 | 2,552,525 | ||||||
Total assets | $ | 10,345,936 | $ | 9,576,243 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable (HEP: $11,303 and $21,709, respectively) | $ | 1,530,714 | $ | 1,504,694 | |||
Income taxes payable | 150,899 | 40,366 | |||||
Accrued liabilities (HEP: $19,315 and $16,006, respectively) | 219,980 | 169,940 | |||||
Deferred income tax liabilities | 175,567 | 175,683 | |||||
Total current liabilities | 2,077,160 | 1,890,683 | |||||
Long-term debt (HEP: $874,434 and $598,761, respectively) | 1,346,227 | 1,214,742 | |||||
Deferred income taxes | 399,205 | 463,721 | |||||
Other long-term liabilities (HEP: $7,574 and $4,000, respectively) | 163,848 | 171,197 | |||||
Equity: | |||||||
HollyFrontier stockholders’ equity: | |||||||
Preferred stock, $1.00 par value – 5,000,000 shares authorized; none issued | — | — | |||||
Common stock $.01 par value – 320,000,000 shares authorized; 255,962,866 shares issued as of September 30, 2012 and December 31, 2011 | 2,560 | 2,563 | |||||
Additional capital | 3,904,379 | 3,859,367 | |||||
Retained earnings | 2,806,117 | 1,964,656 | |||||
Accumulated other comprehensive income (loss) | (62,521 | ) | 77,873 | ||||
Common stock held in treasury, at cost – 52,417,146 and 46,630,220 shares as of September 30, 2012 and December 31, 2011, respectively | (886,259 | ) | (700,449 | ) | |||
Total HollyFrontier stockholders’ equity | 5,764,276 | 5,204,010 | |||||
Noncontrolling interest | 595,220 | 631,890 | |||||
Total equity | 6,359,496 | 5,835,900 | |||||
Total liabilities and equity | $ | 10,345,936 | $ | 9,576,243 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Sales and other revenues | $ | 5,204,798 | $ | 5,173,398 | $ | 14,943,217 | $ | 10,467,116 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 3,898,736 | 3,989,927 | 11,767,417 | 8,421,639 | ||||||||||||
Operating expenses (exclusive of depreciation and amortization) | 233,859 | 227,883 | 698,212 | 501,971 | ||||||||||||
General and administrative expenses (exclusive of depreciation and amortization) | 28,787 | 43,141 | 88,421 | 78,641 | ||||||||||||
Depreciation and amortization | 65,112 | 43,240 | 178,162 | 106,380 | ||||||||||||
Total operating costs and expenses | 4,226,494 | 4,304,191 | 12,732,212 | 9,108,631 | ||||||||||||
Income from operations | 978,304 | 869,207 | 2,211,005 | 1,358,485 | ||||||||||||
Other income (expense): | ||||||||||||||||
Earnings of equity method investments | 852 | 532 | 2,455 | 1,739 | ||||||||||||
Interest income | 2,219 | 204 | 3,360 | 946 | ||||||||||||
Interest expense | (21,103 | ) | (25,074 | ) | (81,360 | ) | (56,471 | ) | ||||||||
Gain on sale of marketable equity securities | — | — | 326 | — | ||||||||||||
Merger transaction costs | — | (9,100 | ) | — | (15,114 | ) | ||||||||||
(18,032 | ) | (33,438 | ) | (75,219 | ) | (68,900 | ) | |||||||||
Income before income taxes | 960,272 | 835,769 | 2,135,786 | 1,289,585 | ||||||||||||
Income tax provision: | ||||||||||||||||
Current | 324,211 | 296,670 | 753,018 | 461,210 | ||||||||||||
Deferred | 25,411 | 8,088 | 22,728 | 4,520 | ||||||||||||
349,622 | 304,758 | 775,746 | 465,730 | |||||||||||||
Net income | 610,650 | 531,011 | 1,360,040 | 823,855 | ||||||||||||
Less net income attributable to noncontrolling interest | 10,277 | 7,923 | 24,472 | 23,838 | ||||||||||||
Net income attributable to HollyFrontier stockholders | $ | 600,373 | $ | 523,088 | $ | 1,335,568 | $ | 800,017 | ||||||||
Earnings per share attributable to HollyFrontier stockholders: | ||||||||||||||||
Basic | $ | 2.95 | $ | 2.50 | $ | 6.46 | $ | 5.66 | ||||||||
Diluted | $ | 2.94 | $ | 2.48 | $ | 6.44 | $ | 5.63 | ||||||||
Cash dividends declared per common share | $ | 1.15 | $ | 0.59 | $ | 2.40 | $ | 0.74 | ||||||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 203,557 | 209,583 | 206,657 | 141,353 | ||||||||||||
Diluted | 204,434 | 210,579 | 207,546 | 142,092 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net income | $ | 610,650 | $ | 531,011 | $ | 1,360,040 | $ | 823,855 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | 13 | (655 | ) | (203 | ) | (972 | ) | |||||||||
Unrealized gain (loss), net of reclassifications from contract settlements of hedging instruments | (111,333 | ) | 23,272 | (236,147 | ) | 24,864 | ||||||||||
Pension curtailment adjustment | — | — | 7,102 | — | ||||||||||||
Retirement medical obligation adjustment | — | 9 | — | 9 | ||||||||||||
Other comprehensive income (loss) before income taxes | (111,320 | ) | 22,626 | (229,248 | ) | 23,901 | ||||||||||
Income tax expense (benefit) | (43,353 | ) | 8,520 | (89,383 | ) | 8,618 | ||||||||||
Other comprehensive income (loss) | (67,967 | ) | 14,106 | (139,865 | ) | 15,283 | ||||||||||
Total comprehensive income | 542,683 | 545,117 | 1,220,175 | 839,138 | ||||||||||||
Less noncontrolling interest in comprehensive income | 10,406 | 8,640 | 25,001 | 25,575 | ||||||||||||
Comprehensive income attributable to HollyFrontier stockholders | $ | 532,277 | $ | 536,477 | $ | 1,195,174 | $ | 813,563 |
Nine Months Ended | ||||||||
September 30, | ||||||||
2012 | 2011 | |||||||
As Adjusted (See Note 2) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 1,360,040 | $ | 823,855 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 178,162 | 106,380 | ||||||
Earnings of equity method investments, net of distributions | 169 | 198 | ||||||
Gain on sale of marketable equity securities | (326 | ) | — | |||||
Deferred income taxes | 22,728 | 4,520 | ||||||
Equity-based compensation expense | 25,399 | 15,535 | ||||||
Change in fair value – derivative instruments | (10,977 | ) | (5,920 | ) | ||||
(Increase) decrease in current assets: | ||||||||
Accounts receivable | (29,474 | ) | 495,971 | |||||
Inventories | (370,831 | ) | (195,575 | ) | ||||
Income taxes receivable | 53,465 | 51,034 | ||||||
Prepayments and other | 16,690 | 7,778 | ||||||
Increase (decrease) in current liabilities: | ||||||||
Accounts payable | (96,263 | ) | (403,762 | ) | ||||
Income taxes payable | 110,533 | 182,468 | ||||||
Accrued liabilities | (6,166 | ) | 28,999 | |||||
Turnaround expenditures | (74,612 | ) | (27,985 | ) | ||||
Other, net | (6,749 | ) | 5,707 | |||||
Net cash provided by operating activities | 1,171,788 | 1,089,203 | ||||||
Cash flows from investing activities: | ||||||||
Additions to properties, plants and equipment | (178,235 | ) | (98,428 | ) | ||||
Additions to properties, plants and equipment – HEP | (29,302 | ) | (175,795 | ) | ||||
Increase in cash due to merger with Frontier | — | 872,158 | ||||||
Investment in Sabine Biofuels | (2,000 | ) | (9,125 | ) | ||||
Purchases of marketable securities | (236,315 | ) | (370,042 | ) | ||||
Sales and maturities of marketable securities | 212,216 | 194,386 | ||||||
Net cash provided by (used for) investing activities | (233,636 | ) | 413,154 | |||||
Cash flows from financing activities: | ||||||||
Borrowings under credit agreement – HEP | 523,000 | 93,000 | ||||||
Repayments under credit agreement – HEP | (292,000 | ) | (50,000 | ) | ||||
Net proceeds from issuance of senior notes – HEP | 294,750 | — | ||||||
Principal tender on senior notes – HFC | (205,000 | ) | (15 | ) | ||||
Principal tender on senior notes – HEP | (185,000 | ) | — | |||||
Purchase of treasury stock | (190,307 | ) | (38,955 | ) | ||||
Structured stock repurchase arrangement | 8,620 | — | ||||||
Contribution from joint venture partner | 6,000 | 27,500 | ||||||
Dividends | (382,610 | ) | (129,377 | ) | ||||
Distributions to noncontrolling interest | (43,749 | ) | (37,929 | ) | ||||
Excess tax benefit from equity-based compensation | 16,021 | 1,399 | ||||||
Purchase of units for incentive grants – HEP | (4,919 | ) | (1,641 | ) | ||||
Deferred financing costs | (3,289 | ) | (11,724 | ) | ||||
Other | (1,165 | ) | (857 | ) | ||||
Net cash used for financing activities | (459,648 | ) | (148,599 | ) | ||||
Cash and cash equivalents: | ||||||||
Increase for the period | 478,504 | 1,353,758 | ||||||
Beginning of period | 1,578,904 | 229,101 | ||||||
End of period | $ | 2,057,408 | $ | 1,582,859 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 77,184 | $ | 50,570 | ||||
Income taxes | $ | 622,314 | $ | 225,499 |
NOTE 1: | Description of Business and Presentation of Financial Statements |
• | owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”), a refinery located in Cheyenne, Wyoming (the “Cheyenne Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”); |
• | owned and operated NK Asphalt Partners (“NK Asphalt”) which operates various asphalt terminals in Arizona and New Mexico; |
• | owned Ethanol Management Company (“EMC”), a products terminal and blending facility near Denver, Colorado and a 50% interest in Sabine Biofuels II, LLC (“Sabine Biofuels”), a biodiesel production facility located in Port Arthur, Texas; and |
• | owned a 44% interest in HEP, a consolidated variable interest entity (“VIE”), which includes our 2% general partner interest. HEP owns and operates logistic assets consisting of petroleum product and crude oil pipelines and terminal, tankage and loading rack facilities that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain regions of the United States and Alon USA, Inc.'s (“Alon”) refinery in Big Spring, Texas. Additionally, HEP owns a 75% interest in UNEV, which owns a 12-inch refined products pipeline from Salt Lake City, Utah to Las Vegas, Nevada, together with terminal facilities in the Cedar City, Utah and North Las Vegas areas (the “UNEV Pipeline”) and a 25% interest in SLC Pipeline LLC (the “SLC Pipeline”), a 95-mile intrastate pipeline system that serves refineries in the Salt Lake City area. |
NOTE 2: | Change in Accounting Principle |
As Originally Reported | As Adjusted | Effect of Change | |||||||||
(In thousands) | |||||||||||
Accounts receivable: Crude oil resales | $ | 743,544 | $ | 5,166 | $ | (738,378 | ) | ||||
Total current assets | 4,659,124 | 3,920,746 | (738,378 | ) | |||||||
Total assets | $ | 10,314,621 | $ | 9,576,243 | $ | (738,378 | ) | ||||
Accounts payable | $ | 2,243,072 | $ | 1,504,694 | $ | (738,378 | ) | ||||
Total current liabilities | 2,629,061 | 1,890,683 | (738,378 | ) | |||||||
Total liabilities and equity | $ | 10,314,621 | $ | 9,576,243 | $ | (738,378 | ) |
As Originally Reported | As Adjusted | Effect of Change | |||||||||
(In thousands) | |||||||||||
(Increase) decrease in current assets: | |||||||||||
Accounts receivable | $ | 389,289 | $ | 495,971 | $ | 106,682 | |||||
Increase (decrease) in current liabilities: | |||||||||||
Accounts payable | $ | (297,080 | ) | $ | (403,762 | ) | $ | (106,682 | ) |
NOTE 3: | Holly-Frontier Merger |
Nine Months Ended September 30, 2011 | ||||
(In thousands, except per share amounts) | ||||
Sales and other revenues | $ | 14,446,297 | ||
Net income attributable to HollyFrontier stockholders | $ | 1,118,018 | ||
Basic earnings per share | $ | 5.34 | ||
Diluted earnings per share | $ | 5.31 |
NOTE 4: | Holly Energy Partners |
NOTE 5: | Financial Instruments |
• | (Level 1) Quoted prices in active markets for identical assets or liabilities. |
• | (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. |
• | (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. |
Fair Value by Input Level | ||||||||||||||||||||
Financial Instrument | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Marketable debt securities | $ | 285,928 | $ | 285,928 | $ | — | $ | 285,928 | $ | — | ||||||||||
NYMEX futures contracts | 4,126 | 4,126 | 4,126 | — | — | |||||||||||||||
Total assets | $ | 290,054 | $ | 290,054 | $ | 4,126 | $ | 285,928 | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||||
Commodity price swaps | $ | 57,457 | $ | 57,457 | $ | — | $ | 29,409 | $ | 28,048 | ||||||||||
HollyFrontier senior notes | 435,139 | 475,977 | — | 475,977 | — | |||||||||||||||
HEP senior notes | 443,434 | 473,625 | — | 473,625 | — | |||||||||||||||
HEP interest rate swaps | 3,764 | 3,764 | — | 3,764 | — | |||||||||||||||
Total liabilities | $ | 939,794 | $ | 1,010,823 | $ | — | $ | 982,775 | $ | 28,048 |
December 31, 2011 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Equity securities | $ | 753 | $ | 753 | $ | 753 | $ | — | $ | — | ||||||||||
Marketable debt securities | 260,953 | 260,953 | — | 260,953 | — | |||||||||||||||
Commodity price swaps | 175,654 | 175,654 | — | 144,038 | 31,616 | |||||||||||||||
Total assets | $ | 437,360 | $ | 437,360 | $ | 753 | $ | 404,991 | $ | 31,616 | ||||||||||
Liabilities: | ||||||||||||||||||||
NYMEX futures contracts | $ | 1,252 | $ | 1,252 | $ | 1,252 | $ | — | $ | — | ||||||||||
HollyFrontier senior notes | 651,262 | 693,979 | — | 693,979 | — | |||||||||||||||
HEP senior notes | 325,860 | 344,350 | — | 344,350 | — | |||||||||||||||
HEP interest rate swaps | 520 | 520 | — | 520 | — | |||||||||||||||
Total liabilities | $ | 978,894 | $ | 1,040,101 | $ | 1,252 | $ | 1,038,849 | $ | — |
Level 3 Financial Instruments | Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||
(In thousands) | |||||||
Asset balance at beginning of period | $ | 119,461 | $ | 31,616 | |||
Change in fair value | (192,446 | ) | (158,893 | ) | |||
Settlement date fair value of contracts open at beginning of period | 44,937 | 99,229 | |||||
Liability balance at end of period | $ | (28,048 | ) | $ | (28,048 | ) |
NOTE 6: | Earnings Per Share |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Earnings attributable to HollyFrontier stockholders | $ | 600,373 | $ | 523,088 | $ | 1,335,568 | $ | 800,017 | ||||||||
Average number of shares of common stock outstanding | 203,557 | 209,583 | 206,657 | 141,353 | ||||||||||||
Effect of dilutive variable restricted shares and performance share units (1) | 877 | 996 | 889 | 739 | ||||||||||||
Average number of shares of common stock outstanding assuming dilution | 204,434 | 210,579 | 207,546 | 142,092 | ||||||||||||
Basic earnings per share | $ | 2.95 | $ | 2.50 | $ | 6.46 | $ | 5.66 | ||||||||
Diluted earnings per share | $ | 2.94 | $ | 2.48 | $ | 6.44 | $ | 5.63 | ||||||||
(1) Excludes anti-dilutive restricted and performance share units of: | — | 39 | 3 | 179 |
NOTE 7: | Stock-Based Compensation |
Restricted Stock | Grants | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value ($000) | ||||||||
Outstanding at January 1, 2012 (non-vested) | 1,122,350 | $ | 25.48 | ||||||||
Granted | 420,922 | 33.97 | |||||||||
Vesting and transfer of ownership to recipients | (574,408 | ) | 23.48 | ||||||||
Forfeited | (3,975 | ) | 33.06 | ||||||||
Outstanding at September 30, 2012 (non-vested) | 964,889 | $ | 30.35 | $ | 39,821 |
Performance Share Units | Grants | ||
Outstanding at January 1, 2012 (non-vested) | 774,788 | ||
Granted | 298,559 | ||
Vesting and transfer of ownership to recipients | (240,019 | ) | |
Forfeited | (5,057 | ) | |
Outstanding at September 30, 2012 (non-vested) | 828,271 |
NOTE 8: | Cash and Cash Equivalents and Investments in Marketable Securities |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value (Net Carrying Amount) | |||||||||||||
(In thousands) | ||||||||||||||||
September 30, 2012 | ||||||||||||||||
Marketable debt securities (state and political subdivisions) | $ | 285,915 | $ | 26 | $ | (13 | ) | $ | 285,928 | |||||||
December 31, 2011 | ||||||||||||||||
Marketable debt securities (state and political subdivisions) | $ | 260,879 | $ | 74 | $ | — | $ | 260,953 | ||||||||
Equity securities | 610 | 143 | — | 753 | ||||||||||||
Total marketable securities | $ | 261,489 | $ | 217 | $ | — | $ | 261,706 |
NOTE 9: | Inventories |
September 30, 2012 | December 31, 2011 | |||||||
(In thousands) | ||||||||
Crude oil | $ | 526,783 | $ | 400,952 | ||||
Other raw materials and unfinished products(1) | 126,406 | 137,356 | ||||||
Finished products(2) | 752,958 | 513,776 | ||||||
Process chemicals(3) | 2,663 | 1,180 | ||||||
Repairs and maintenance supplies and other | 76,640 | 61,355 | ||||||
Total inventory | $ | 1,485,450 | $ | 1,114,619 |
(1) | Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. |
(2) | Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. |
(3) | Process chemicals include additives and other chemicals. |
NOTE 10: | Goodwill |
Refining Segment | HEP | Total | |||||||||
(In thousands) | |||||||||||
Balance at January 1, 2012 | $ | 2,047,519 | $ | 288,991 | $ | 2,336,510 | |||||
Adjustment to goodwill related to Frontier merger | 1,792 | — | 1,792 | ||||||||
Balance at September 30, 2012 | $ | 2,049,311 | $ | 288,991 | $ | 2,338,302 |
NOTE 11: | Environmental |
NOTE 12: | Debt |
• | 9.875% senior notes ($286.8 million principal amount maturing June 2017) |
• | 6.875% senior notes ($150 million principal amount maturing November 2018) |
• | 8.25% HEP senior notes ($150 million principal amount maturing March 2018) |
• | 6.5% HEP senior notes ($300 million principal amount maturing March 2020) |
September 30, 2012 | December 31, 2011 | |||||||
(In thousands) | ||||||||
9.875% Senior Notes | ||||||||
Principal | $ | 286,812 | $ | 291,812 | ||||
Unamortized discount | (7,788 | ) | (8,930 | ) | ||||
279,024 | 282,882 | |||||||
6.875% Senior Notes | ||||||||
Principal | 150,000 | 150,000 | ||||||
Unamortized premium | 6,115 | 6,490 | ||||||
156,115 | 156,490 | |||||||
8.5% Senior Notes | ||||||||
Principal | — | 199,985 | ||||||
Unamortized premium | — | 11,905 | ||||||
— | 211,890 | |||||||
Financing Obligation | 36,654 | 37,620 | ||||||
Total HollyFrontier long-term debt | 471,793 | 688,882 | ||||||
HEP Credit Agreement | 431,000 | 200,000 | ||||||
HEP 8.25% Senior Notes | ||||||||
Principal | 150,000 | 150,000 | ||||||
Unamortized discount | (1,678 | ) | (1,907 | ) | ||||
148,322 | 148,093 | |||||||
HEP 6.5% Senior Notes | ||||||||
Principal | 300,000 | — | ||||||
Unamortized discount | (4,888 | ) | — | |||||
295,112 | — | |||||||
HEP 6.25% Senior Notes | ||||||||
Principal | — | 185,000 | ||||||
Unamortized discount | — | (8,331 | ) | |||||
Unamortized premium – designated fair value hedge | — | 1,098 | ||||||
— | 177,767 | |||||||
Total HEP long-term debt | 874,434 | 525,860 | ||||||
Total long-term debt | $ | 1,346,227 | $ | 1,214,742 |
• | our inventory positions; |
• | natural gas purchases; |
• | costs of crude oil and related grade differentials; |
• | prices of refined products; and |
• | our refining margins. |
Unrealized Gain (Loss) Recognized in OCI | Gain (Loss) Recognized in Earnings Due to Settlements | Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings | |||||||||||||
Location | Amount | Location | Amount | ||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||
Commodity price swaps | |||||||||||||||
Change in fair value | $ | (144,635 | ) | Sales and other revenues | $ | (44,936 | ) | Sales and other revenues | $ | (3,531 | ) | ||||
Loss reclassified to earnings due to settlements | 33,409 | Cost of products sold | 11,527 | Cost of products sold | 6,208 | ||||||||||
Total | $ | (111,226 | ) | $ | (33,409 | ) | $ | 2,677 | |||||||
Three Months Ended September 30, 2011 | |||||||||||||||
Commodity price swaps | |||||||||||||||
Change in fair value | $ | 22,181 | Cost of products sold | $ | — | Cost of products sold | $ | 362 | |||||||
Nine Months Ended September 30, 2012 | |||||||||||||||
Commodity price swaps | |||||||||||||||
Change in fair value | $ | (257,711 | ) | Sales and other revenues | $ | (99,228 | ) | Sales and other revenues | $ | (1,876 | ) | ||||
Loss reclassified to earnings due to settlements | 20,986 | Cost of products sold | 78,242 | Cost of products sold | (109 | ) | |||||||||
Total | $ | (236,725 | ) | $ | (20,986 | ) | $ | (1,985 | ) | ||||||
Nine Months Ended September 30, 2011 | |||||||||||||||
Commodity price swaps | |||||||||||||||
Change in fair value | $ | 22,053 | |||||||||||||
Loss reclassified to earnings due to settlements | 166 | Operating expenses | $ | (166 | ) | Cost of products sold | $ | 362 | |||||||
Total | $ | 22,219 | $ | (166 | ) | $ | 362 |
Notional Contract Volumes by Year of Maturity | |||||||||
Commodity Price Swaps | Total Outstanding Notional | 2012 | 2013 | ||||||
WTI crude oil - long | 13,351,000 | 5,336,000 | 8,015,000 | ||||||
Ultra-low sulfur diesel - short | 10,143,000 | 2,668,000 | 7,475,000 | ||||||
Conventional unleaded gasoline - short | 3,208,000 | 2,668,000 | 540,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Location of Gain Recognized in Income | 2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||||
Cost of products sold | $ | 19,869 | $ | 10,034 | $ | 55,738 | $ | 9,382 | ||||||||
Operating expenses | 604 | — | 446 | — | ||||||||||||
Total | $ | 20,473 | $ | 10,034 | $ | 56,184 | $ | 9,382 |
Notional Contract Volumes by Year of Maturity | |||||||||||
Derivative Instrument | Total Outstanding Notional | 2012 | 2013 | Unit of Measure | |||||||
Commodity price swap (natural gas) - long | 3,312,000 | 3,312,000 | — | MMBTU | |||||||
Commodity price swap (WCS spread) - long | 6,117,500 | 460,000 | 5,657,500 | Barrels | |||||||
Commodity price swap (WTI) - short | 150,000 | — | 150,000 | Barrels | |||||||
Commodity price swap (gasoline) - short | 630,000 | 150,000 | 480,000 | Barrels | |||||||
NYMEX futures (WTI) - long | 234,000 | — | 234,000 | Barrels | |||||||
NYMEX futures (WTI)- short | 2,206,000 | 1,856,000 | 350,000 | Barrels |
Unrealized Gain (Loss) Recognized in OCI | Loss Recognized in Earnings Due to Settlements | ||||||||
Location | Amount | ||||||||
(In thousands) | |||||||||
Three Months Ended September 30, 2012 | |||||||||
Interest rate swaps | |||||||||
Change in fair value | $ | (1,802 | ) | ||||||
Loss reclassified to earnings due to settlements | 1,695 | Interest expense | $ | (1,695 | ) | ||||
Total | $ | (107 | ) | $ | (1,695 | ) | |||
Three Months Ended September 30, 2011 | |||||||||
Interest rate swaps | |||||||||
Change in fair value | $ | (310 | ) | ||||||
Loss reclassified to earnings due to settlements | 1,403 | Interest expense | $ | (1,403 | ) | ||||
Total | $ | 1,093 | $ | (1,403 | ) | ||||
Nine Months Ended September 30, 2012 | |||||||||
Interest rate swaps | |||||||||
Change in fair value | $ | (4,240 | ) | ||||||
Loss reclassified to earnings due to settlements | 4,818 | Interest expense | $ | (4,818 | ) | ||||
Total | $ | 578 | $ | (4,818 | ) | ||||
Nine Months Ended September 30, 2011 | |||||||||
Interest rate swaps | |||||||||
Change in fair value | $ | (1,485 | ) | ||||||
Loss reclassified to earnings due to settlements | 4,132 | Interest expense | $ | (4,132 | ) | ||||
Total | $ | 2,647 | $ | (4,132 | ) |
Asset Derivatives | Liability Derivatives | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
(In thousands) | ||||||||||||
September 30, 2012 | ||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||
Commodity price swap contracts | Accrued liabilities | $ | 22,018 | Accrued liabilities | $ | 86,945 | ||||||
Variable-to-fixed interest rate swap contracts | Other long-term liabilities | 3,764 | ||||||||||
Total | $ | 22,018 | $ | 90,709 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity price swap contracts | Prepayments and other current assets | $ | 4,126 | |||||||||
Accrued liabilities | 20,986 | Accrued liabilities | $ | 13,516 | ||||||||
Total | $ | 25,112 | $ | 13,516 | ||||||||
December 31, 2011 | ||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||
Commodity price swap contracts | Prepayments and other current assets | $ | 173,784 | |||||||||
Variable-to-fixed interest rate swap contracts | Other long-term liabilities | $ | 520 | |||||||||
Total | $ | 173,784 | $ | 520 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity price swap contracts | Prepayments and other current assets | $ | 1,870 | Accrued liabilities | $ | 1,252 |
NOTE 14: | Equity |
HollyFrontier Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||
(In thousands) | ||||||||||||
Balance at December 31, 2011 | $ | 5,204,010 | $ | 631,890 | $ | 5,835,900 | ||||||
Net income | 1,335,568 | 24,472 | 1,360,040 | |||||||||
Other comprehensive income (loss) | (140,394 | ) | 529 | (139,865 | ) | |||||||
Dividends | (494,107 | ) | — | (494,107 | ) | |||||||
Distributions to noncontrolling interest holders | — | (43,749 | ) | (43,749 | ) | |||||||
Allocated equity on HEP unit issuances | 11,469 | (18,763 | ) | (7,294 | ) | |||||||
Contribution from joint venture partner | — | 3,000 | 3,000 | |||||||||
Equity-based compensation | 23,166 | 2,233 | 25,399 | |||||||||
Excess tax benefit attributable to equity-based compensation | 16,020 | — | 16,020 | |||||||||
Purchase of treasury stock (1) | (200,076 | ) | — | (200,076 | ) | |||||||
Net proceeds received under structured share repurchase arrangement | 8,620 | — | 8,620 | |||||||||
Purchase of HEP units for restricted grants | — | (4,392 | ) | (4,392 | ) | |||||||
Balance at September 30, 2012 | $ | 5,764,276 | $ | 595,220 | $ | 6,359,496 |
(1) | Includes 329,631 shares withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards. |
NOTE 15: | Other Comprehensive Income (Loss) |
Before-Tax | Tax Expense (Benefit) | After-Tax | ||||||||||
(In thousands) | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||
Unrealized gain, net of reclassifications from sale or maturity, on available-for-sale securities | $ | 13 | $ | 6 | $ | 7 | ||||||
Unrealized loss on hedging activities | (111,333 | ) | (43,359 | ) | (67,974 | ) | ||||||
Other comprehensive loss | (111,320 | ) | (43,353 | ) | (67,967 | ) | ||||||
Less other comprehensive income attributable to noncontrolling interest | 129 | — | 129 | |||||||||
Other comprehensive loss attributable to HollyFrontier stockholders | $ | (111,449 | ) | $ | (43,353 | ) | $ | (68,096 | ) | |||
Three Months Ended September 30, 2011 | ||||||||||||
Unrealized loss on available-for-sale securities | $ | (655 | ) | $ | (252 | ) | $ | (403 | ) | |||
Unrealized gain on hedging activities | 23,272 | 8,772 | 14,500 | |||||||||
Retirement medical obligation adjustment | 9 | — | 9 | |||||||||
Other comprehensive income | 22,626 | 8,520 | 14,106 | |||||||||
Less other comprehensive income attributable to noncontrolling interest | 717 | — | 717 | |||||||||
Other comprehensive income attributable to HollyFrontier stockholders | $ | 21,909 | $ | 8,520 | $ | 13,389 | ||||||
Nine Months Ended September 30, 2012 | ||||||||||||
Unrealized loss, net of reclassifications from sale or maturity, on available-for-sale securities | $ | (203 | ) | $ | (78 | ) | $ | (125 | ) | |||
Unrealized loss on hedging activities | (236,147 | ) | (92,068 | ) | (144,079 | ) | ||||||
Pension plan curtailment | 7,102 | 2,763 | 4,339 | |||||||||
Other comprehensive loss | (229,248 | ) | (89,383 | ) | (139,865 | ) | ||||||
Less other comprehensive income attributable to noncontrolling interest | 529 | — | 529 | |||||||||
Other comprehensive loss attributable to HollyFrontier stockholders | $ | (229,777 | ) | $ | (89,383 | ) | $ | (140,394 | ) | |||
Nine Months Ended September 30, 2011 | ||||||||||||
Unrealized loss on available-for-sale securities | $ | (972 | ) | $ | (376 | ) | $ | (596 | ) | |||
Unrealized gain on hedging activities | 24,864 | 8,994 | 15,870 | |||||||||
Retirement medical obligation adjustment | 9 | — | 9 | |||||||||
Other comprehensive income | 23,901 | 8,618 | 15,283 | |||||||||
Less other comprehensive income attributable to noncontrolling interest | 1,737 | — | 1,737 | |||||||||
Other comprehensive income attributable to HollyFrontier stockholders | $ | 22,164 | $ | 8,618 | $ | 13,546 |
September 30, 2012 | December 31, 2011 | |||||||
(In thousands) | ||||||||
Pension obligation adjustment | $ | (18,376 | ) | $ | (22,715 | ) | ||
Retiree medical obligation adjustment | (4,042 | ) | (4,042 | ) | ||||
Unrealized gain on available-for-sale securities | 9 | 134 | ||||||
Unrealized gain (loss) on hedging activities, net of noncontrolling interest | (40,112 | ) | 104,496 | |||||
Accumulated other comprehensive income (loss) | $ | (62,521 | ) | $ | 77,873 |
NOTE 16: | Retirement Plan |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(In thousands) | ||||||||||||||||
Service cost – benefit earned during the period | $ | — | $ | 1,268 | $ | 679 | $ | 3,803 | ||||||||
Interest cost on projected benefit obligations | 955 | 1,281 | 3,007 | 3,844 | ||||||||||||
Expected return on plan assets | (950 | ) | (1,244 | ) | (2,849 | ) | (3,923 | ) | ||||||||
Amortization of prior service cost | — | 97 | 67 | 293 | ||||||||||||
Amortization of net loss | 415 | 529 | 1,518 | 1,594 | ||||||||||||
Estimated effect of curtailment | — | 798 | 899 | 798 | ||||||||||||
Net periodic pension expense | $ | 420 | $ | 2,729 | $ | 3,321 | $ | 6,409 |
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||
(In thousands) | ||||||||
Service cost – benefit earned during the period | $ | 475 | $ | 1,425 | ||||
Interest cost on projected benefit obligations | 875 | 2,625 | ||||||
Amortization of prior service credit | (550 | ) | (1,650 | ) | ||||
Amortization of net loss | 75 | 225 | ||||||
Net periodic pension expense | $ | 875 | $ | 2,625 |
NOTE 17: | Contingencies |
NOTE 18: | Segment Information |
Refining (1) | HEP (2) | Corporate and Other | Consolidations and Eliminations | Consolidated Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Sales and other revenues | $ | 5,192,649 | $ | 72,496 | $ | 352 | $ | (60,699 | ) | $ | 5,204,798 | |||||||||
Depreciation and amortization | $ | 47,890 | $ | 12,636 | $ | 4,793 | $ | (207 | ) | $ | 65,112 | |||||||||
Income (loss) from operations | $ | 973,586 | $ | 37,137 | $ | (31,871 | ) | $ | (548 | ) | $ | 978,304 | ||||||||
Capital expenditures | $ | 70,069 | $ | 5,683 | $ | 3,765 | $ | — | $ | 79,517 | ||||||||||
Three Months Ended September 30, 2011 | ||||||||||||||||||||
Sales and other revenues | $ | 5,164,853 | $ | 49,131 | $ | 299 | $ | (40,885 | ) | $ | 5,173,398 | |||||||||
Depreciation and amortization | $ | 35,070 | $ | 7,505 | $ | 872 | $ | (207 | ) | $ | 43,240 | |||||||||
Income (loss) from operations | $ | 884,997 | $ | 24,587 | $ | (40,135 | ) | $ | (242 | ) | $ | 869,207 | ||||||||
Capital expenditures | $ | 46,294 | $ | 68,101 | $ | 3,523 | $ | — | $ | 117,918 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Sales and other revenues | $ | 14,907,849 | $ | 207,250 | $ | 912 | $ | (172,794 | ) | $ | 14,943,217 | |||||||||
Depreciation and amortization | $ | 133,087 | $ | 38,683 | $ | 7,013 | $ | (621 | ) | $ | 178,162 | |||||||||
Income (loss) from operations | $ | 2,201,648 | $ | 100,843 | $ | (89,899 | ) | $ | (1,587 | ) | $ | 2,211,005 | ||||||||
Capital expenditures | $ | 171,865 | $ | 29,302 | $ | 6,370 | $ | — | $ | 207,537 | ||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Sales and other revenues | $ | 10,432,720 | $ | 144,916 | $ | 1,100 | $ | (111,620 | ) | $ | 10,467,116 | |||||||||
Depreciation and amortization | $ | 81,875 | $ | 22,407 | $ | 2,719 | $ | (621 | ) | $ | 106,380 | |||||||||
Income (loss) from operations | $ | 1,357,739 | $ | 75,700 | $ | (73,689 | ) | $ | (1,265 | ) | $ | 1,358,485 | ||||||||
Capital expenditures | $ | 92,078 | $ | 175,795 | $ | 6,350 | $ | — | $ | 274,223 |
September 30, 2012 | ||||||||||||||||||||
Cash, cash equivalents and investments in marketable securities | $ | 557 | $ | 1,993 | $ | 2,340,786 | $ | — | $ | 2,343,336 | ||||||||||
Total assets | $ | 6,567,224 | $ | 1,409,151 | $ | 2,426,067 | $ | (56,506 | ) | $ | 10,345,936 | |||||||||
Long-term debt | $ | — | $ | 874,434 | $ | 487,843 | $ | (16,050 | ) | $ | 1,346,227 | |||||||||
December 31, 2011 | ||||||||||||||||||||
Cash, cash equivalents and investments in marketable securities | $ | — | $ | 6,369 | $ | 1,834,241 | $ | — | $ | 1,840,610 | ||||||||||
Total assets | $ | 6,280,426 | $ | 1,418,660 | $ | 1,997,601 | $ | (120,444 | ) | $ | 9,576,243 | |||||||||
Long-term debt | $ | — | $ | 598,761 | $ | 705,331 | $ | (89,350 | ) | $ | 1,214,742 |
NOTE 19: | Supplemental Guarantor/Non-Guarantor Financial Information |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||||||
September 30, 2012 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | Eliminations | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,053,324 | $ | 2,089 | $ | 2 | $ | — | $ | 2,055,415 | $ | 1,993 | $ | — | $ | 2,057,408 | ||||||||||||||||
Marketable securities | 280,401 | 8 | — | — | 280,409 | — | — | 280,409 | ||||||||||||||||||||||||
Accounts receivable, net | 2,265 | 732,777 | — | — | 735,042 | 42,832 | (41,000 | ) | 736,874 | |||||||||||||||||||||||
Intercompany accounts receivable (payable) | 1,175,041 | (1,431,906 | ) | 256,865 | — | — | — | — | — | |||||||||||||||||||||||
Inventories | — | 1,484,217 | — | — | 1,484,217 | 1,233 | — | 1,485,450 | ||||||||||||||||||||||||
Income taxes receivable | 40,544 | — | 4 | — | 40,548 | — | — | 40,548 | ||||||||||||||||||||||||
Prepayments and other | 6,557 | 29,973 | — | — | 36,530 | 3,080 | (8,378 | ) | 31,232 | |||||||||||||||||||||||
Total current assets | 3,558,132 | 817,158 | 256,871 | — | 4,632,161 | 49,138 | (49,378 | ) | 4,631,921 | |||||||||||||||||||||||
Properties, plants and equip, net | 22,483 | 2,108,183 | — | — | 2,130,666 | 994,926 | (5,660 | ) | 3,119,932 | |||||||||||||||||||||||
Marketable securities (long-term) | 5,519 | — | — | — | 5,519 | — | — | 5,519 | ||||||||||||||||||||||||
Investment in subsidiaries | 3,251,918 | 280,048 | (181,421 | ) | (3,350,545 | ) | — | — | — | — | ||||||||||||||||||||||
Intangibles and other assets | 9,608 | 2,215,337 | 25,000 | (25,000 | ) | 2,224,945 | 365,087 | (1,468 | ) | 2,588,564 | ||||||||||||||||||||||
Total assets | $ | 6,847,660 | $ | 5,420,726 | $ | 100,450 | $ | (3,375,545 | ) | $ | 8,993,291 | $ | 1,409,151 | $ | (56,506 | ) | $ | 10,345,936 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | $ | 135,714 | $ | 1,424,692 | $ | 4 | $ | — | $ | 1,560,410 | $ | 11,303 | $ | (40,999 | ) | $ | 1,530,714 | |||||||||||||||
Income taxes payable | 2,319 | 148,580 | — | — | 150,899 | — | — | 150,899 | ||||||||||||||||||||||||
Accrued liabilities | 87,232 | 120,858 | 954 | — | 209,044 | 19,315 | (8,379 | ) | 219,980 | |||||||||||||||||||||||
Deferred income tax liabilities | 191,958 | (16,381 | ) | (10 | ) | — | 175,567 | — | — | 175,567 | ||||||||||||||||||||||
Total current liabilities | 417,223 | 1,677,749 | 948 | — | 2,095,920 | 30,618 | (49,378 | ) | 2,077,160 | |||||||||||||||||||||||
Long-term debt | 460,139 | 27,704 | — | — | 487,843 | 874,434 | (16,050 | ) | 1,346,227 | |||||||||||||||||||||||
Deferred income tax liabilities | 189,613 | 203,766 | 875 | — | 394,254 | — | 4,951 | 399,205 | ||||||||||||||||||||||||
Other long-term liabilities | 91,153 | 92,733 | — | (25,000 | ) | 158,886 | 7,574 | (2,612 | ) | 163,848 | ||||||||||||||||||||||
Investment in HEP | — | 166,856 | — | — | 166,856 | — | (166,856 | ) | — | |||||||||||||||||||||||
Equity – HollyFrontier | 5,689,532 | 3,251,918 | 98,627 | (3,350,545 | ) | 5,689,532 | 396,644 | (321,900 | ) | 5,764,276 | ||||||||||||||||||||||
Equity – noncontrolling interest | — | — | — | — | — | 99,881 | 495,339 | 595,220 | ||||||||||||||||||||||||
Total liabilities and equity | $ | 6,847,660 | $ | 5,420,726 | $ | 100,450 | $ | (3,375,545 | ) | $ | 8,993,291 | $ | 1,409,151 | $ | (56,506 | ) | $ | 10,345,936 |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||||||
December 31, 2011 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | Eliminations | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,575,891 | $ | (3,358 | ) | $ | 2 | $ | — | $ | 1,572,535 | $ | 6,369 | $ | — | $ | 1,578,904 | |||||||||||||||
Marketable securities | 210,886 | 753 | — | — | 211,639 | — | — | 211,639 | ||||||||||||||||||||||||
Accounts receivable, net | 8,317 | 698,911 | — | — | 707,228 | 37,290 | (35,661 | ) | 708,857 | |||||||||||||||||||||||
Intercompany accounts receivable (payable) | 3,075,563 | (3,373,844 | ) | 298,281 | — | — | — | — | — | |||||||||||||||||||||||
Inventories | — | 1,113,136 | — | — | 1,113,136 | 1,483 | — | 1,114,619 | ||||||||||||||||||||||||
Income taxes receivable | 87,273 | 4 | — | — | 87,277 | — | — | 87,277 | ||||||||||||||||||||||||
Prepayments and other | 19,379 | 202,428 | 4 | — | 221,811 | 2,246 | (4,607 | ) | 219,450 | |||||||||||||||||||||||
Total current assets | 4,977,309 | (1,361,970 | ) | 298,287 | — | 3,913,626 | 47,388 | (40,268 | ) | 3,920,746 | ||||||||||||||||||||||
Properties, plants and equip, net | 26,702 | 2,026,105 | — | — | 2,052,807 | 1,006,379 | (6,281 | ) | 3,052,905 | |||||||||||||||||||||||
Marketable securities (long-term) | 50,067 | — | — | — | 50,067 | — | — | 50,067 | ||||||||||||||||||||||||
Investment in subsidiaries | 846,359 | 295,902 | (240,060 | ) | (902,201 | ) | — | — | — | — | ||||||||||||||||||||||
Intangibles and other assets | 19,329 | 2,242,197 | — | — | 2,261,526 | 364,893 | (73,894 | ) | 2,552,525 | |||||||||||||||||||||||
Total assets | $ | 5,919,766 | $ | 3,202,234 | $ | 58,227 | $ | (902,201 | ) | $ | 8,278,026 | $ | 1,418,660 | $ | (120,443 | ) | $ | 9,576,243 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | $ | 23,497 | $ | 1,494,790 | $ | 359 | $ | — | $ | 1,518,646 | $ | 21,709 | $ | (35,661 | ) | $ | 1,504,694 | |||||||||||||||
Income taxes payable | (109,320 | ) | 149,686 | — | — | 40,366 | — | — | 40,366 | |||||||||||||||||||||||
Accrued liabilities | 53,390 | 103,981 | 1,170 | — | 158,541 | 16,006 | (4,607 | ) | 169,940 | |||||||||||||||||||||||
Deferred income tax liabilities | 192,073 | (16,390 | ) | — | — | 175,683 | — | — | 175,683 | |||||||||||||||||||||||
Total current liabilities | 159,640 | 1,732,067 | 1,529 | — | 1,893,236 | 37,715 | (40,268 | ) | 1,890,683 | |||||||||||||||||||||||
Long-term debt | 651,261 | 54,070 | — | — | 705,331 | 598,761 | (89,350 | ) | 1,214,742 | |||||||||||||||||||||||
Deferred income tax liabilities | 162,021 | 295,893 | 856 | — | 458,770 | — | 4,951 | 463,721 | ||||||||||||||||||||||||
Other long-term liabilities | 116,443 | 52,892 | — | — | 169,335 | 4,000 | (2,138 | ) | 171,197 | |||||||||||||||||||||||
Investment in HEP | — | 220,953 | — | — | 220,953 | — | (220,953 | ) | — | |||||||||||||||||||||||
Equity – HollyFrontier | 4,830,401 | 846,359 | 55,842 | (902,201 | ) | 4,830,401 | 679,182 | (305,573 | ) | 5,204,010 | ||||||||||||||||||||||
Equity – noncontrolling interest | — | — | — | — | — | 99,002 | 532,888 | 631,890 | ||||||||||||||||||||||||
Total liabilities and equity | $ | 5,919,766 | $ | 3,202,234 | $ | 58,227 | $ | (902,201 | ) | $ | 8,278,026 | $ | 1,418,660 | $ | (120,443 | ) | $ | 9,576,243 |
Condensed Consolidating Statement of Income and Comprehensive Income | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | Eliminations | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and other revenues | $ | 195 | $ | 5,192,846 | $ | 35 | $ | — | $ | 5,193,076 | $ | 72,496 | $ | (60,774 | ) | $ | 5,204,798 | |||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of products sold | — | 3,958,261 | — | — | 3,958,261 | — | (59,525 | ) | 3,898,736 | |||||||||||||||||||||||
Operating expenses | — | 213,021 | 9 | — | 213,030 | 21,324 | (495 | ) | 233,859 | |||||||||||||||||||||||
General and administrative | 26,723 | 637 | 28 | — | 27,388 | 1,399 | — | 28,787 | ||||||||||||||||||||||||
Depreciation and amortization | 4,665 | 48,018 | — | — | 52,683 | 12,636 | (207 | ) | 65,112 | |||||||||||||||||||||||
Total operating costs and expenses | 31,388 | 4,219,937 | 37 | — | 4,251,362 | 35,359 | (60,227 | ) | 4,226,494 | |||||||||||||||||||||||
Income (loss) from operations | (31,193 | ) | 972,909 | (2 | ) | — | 941,714 | 37,137 | (547 | ) | 978,304 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Earnings of equity method investments | 988,255 | 15,720 | 15,586 | (1,004,000 | ) | 15,561 | 877 | (15,586 | ) | 852 | ||||||||||||||||||||||
Interest income (expense) | (6,747 | ) | (374 | ) | 161 | — | (6,960 | ) | (12,432 | ) | 508 | (18,884 | ) | |||||||||||||||||||
981,508 | 15,346 | 15,747 | (1,004,000 | ) | 8,601 | (11,555 | ) | (15,078 | ) | (18,032 | ) | |||||||||||||||||||||
Income before income taxes | 950,315 | 988,255 | 15,745 | (1,004,000 | ) | 950,315 | 25,582 | (15,625 | ) | 960,272 | ||||||||||||||||||||||
Income tax provision | 349,485 | — | — | — | 349,485 | 137 | — | 349,622 | ||||||||||||||||||||||||
Net income | 600,830 | 988,255 | 15,745 | (1,004,000 | ) | 600,830 | 25,445 | (15,625 | ) | 610,650 | ||||||||||||||||||||||
Less net income attributable to noncontrolling interest | — | — | — | — | — | 10,277 | — | 10,277 | ||||||||||||||||||||||||
Net income attributable to HollyFrontier stockholders | $ | 600,830 | $ | 988,255 | $ | 15,745 | $ | (1,004,000 | ) | $ | 600,830 | $ | 15,168 | $ | (15,625 | ) | $ | 600,373 | ||||||||||||||
Comprehensive income attributable to HollyFrontier stockholders | $ | 502,238 | $ | 1,018,987 | $ | 15,745 | $ | (1,004,000 | ) | $ | 532,970 | $ | 14,932 | $ | (15,625 | ) | $ | 532,277 |
Condensed Consolidating Statement of Income and Comprehensive Income | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2011 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | Eliminations | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and other revenues | $ | 266 | $ | 5,164,628 | $ | 33 | $ | — | $ | 5,164,927 | $ | 49,131 | $ | (40,660 | ) | $ | 5,173,398 | |||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of products sold | — | 4,029,997 | — | — | 4,029,997 | — | (40,070 | ) | 3,989,927 | |||||||||||||||||||||||
Operating expenses | — | 213,002 | 7 | — | 213,009 | 15,015 | (141 | ) | 227,883 | |||||||||||||||||||||||
General and administrative | 39,555 | 1,562 | — | — | 41,117 | 2,024 | — | 43,141 | ||||||||||||||||||||||||
Depreciation and amortization | 872 | 35,070 | — | — | 35,942 | 7,505 | (207 | ) | 43,240 | |||||||||||||||||||||||
Total operating costs and expenses | 40,427 | 4,279,631 | 7 | — | 4,320,065 | 24,544 | (40,418 | ) | 4,304,191 | |||||||||||||||||||||||
Income (loss) from operations | (40,161 | ) | 884,997 | 26 | — | 844,862 | 24,587 | (242 | ) | 869,207 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Earnings of equity method investments | 892,420 | 8,400 | 8,469 | (900,929 | ) | 8,360 | 641 | (8,469 | ) | 532 | ||||||||||||||||||||||
Interest income (expense) | (15,162 | ) | (977 | ) | 14 | — | (16,125 | ) | (9,391 | ) | 646 | (24,870 | ) | |||||||||||||||||||
Merger transaction costs | (9,100 | ) | — | — | — | (9,100 | ) | — | — | (9,100 | ) | |||||||||||||||||||||
868,158 | 7,423 | 8,483 | (900,929 | ) | (16,865 | ) | (8,750 | ) | (7,823 | ) | (33,438 | ) | ||||||||||||||||||||
Income before income taxes | 827,997 | 892,420 | 8,509 | (900,929 | ) | 827,997 | 15,837 | (8,065 | ) | 835,769 | ||||||||||||||||||||||
Income tax provision | 304,835 | — | — | — | 304,835 | (77 | ) | — | 304,758 | |||||||||||||||||||||||
Net income | 523,162 | 892,420 | 8,509 | (900,929 | ) | 523,162 | 15,914 | (8,065 | ) | 531,011 | ||||||||||||||||||||||
Less net income attributable to noncontrolling interest | — | — | — | — | — | 7,923 | — | 7,923 | ||||||||||||||||||||||||
Net income attributable to HollyFrontier stockholders | $ | 523,162 | $ | 892,420 | $ | 8,509 | $ | (900,929 | ) | $ | 523,162 | $ | 7,991 | $ | (8,065 | ) | $ | 523,088 | ||||||||||||||
Comprehensive income attributable to HollyFrontier stockholders | $ | 514,759 | $ | 913,835 | $ | 8,509 | $ | (900,929 | ) | $ | 536,174 | $ | 8,368 | $ | (8,065 | ) | $ | 536,477 |
Condensed Consolidating Statement of Income and Comprehensive Income | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | Eliminations | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and other revenues | $ | 394 | $ | 14,908,154 | $ | 138 | $ | — | $ | 14,908,686 | $ | 207,250 | $ | (172,719 | ) | $ | 14,943,217 | |||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of products sold | — | 11,932,230 | — | — | 11,932,230 | — | (164,813 | ) | 11,767,417 | |||||||||||||||||||||||
Operating expenses | — | 642,153 | 33 | — | 642,186 | 61,724 | (5,698 | ) | 698,212 | |||||||||||||||||||||||
General and administrative | 81,147 | 1,299 | 50 | — | 82,496 | 5,925 | — | 88,421 | ||||||||||||||||||||||||
Depreciation and amortization | 6,644 | 133,456 | — | — | 140,100 | 38,683 | (621 | ) | 178,162 | |||||||||||||||||||||||
Total operating costs and expenses | 87,791 | 12,709,138 | 83 | — | 12,797,012 | 106,332 | (171,132 | ) | 12,732,212 | |||||||||||||||||||||||
Income (loss) from operations | (87,397 | ) | 2,199,016 | 55 | — | 2,111,674 | 100,918 | (1,587 | ) | 2,211,005 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Earnings of equity method investments | 2,240,275 | 42,707 | 42,163 | (2,283,029 | ) | 42,116 | 2,502 | (42,163 | ) | 2,455 | ||||||||||||||||||||||
Interest income (expense) | (34,194 | ) | (1,774 | ) | 536 | — | (35,432 | ) | (44,306 | ) | 1,738 | (78,000 | ) | |||||||||||||||||||
Gain on sale of marketable securities | — | 326 | — | — | 326 | — | — | 326 | ||||||||||||||||||||||||
2,206,081 | 41,259 | 42,699 | (2,283,029 | ) | 7,010 | (41,804 | ) | (40,425 | ) | (75,219 | ) | |||||||||||||||||||||
Income before income taxes | 2,118,684 | 2,240,275 | 42,754 | (2,283,029 | ) | 2,118,684 | 59,114 | (42,012 | ) | 2,135,786 | ||||||||||||||||||||||
Income tax provision | 775,459 | — | — | — | 775,459 | 287 | — | 775,746 | ||||||||||||||||||||||||
Net income | 1,343,225 | 2,240,275 | 42,754 | (2,283,029 | ) | 1,343,225 | 58,827 | (42,012 | ) | 1,360,040 | ||||||||||||||||||||||
Less net income attributable to noncontrolling interest | — | — | — | — | — | 24,472 | — | 24,472 | ||||||||||||||||||||||||
Net income attributable to HollyFrontier stockholders | $ | 1,343,225 | $ | 2,240,275 | $ | 42,754 | $ | (2,283,029 | ) | $ | 1,343,225 | $ | 34,355 | $ | (42,012 | ) | $ | 1,335,568 | ||||||||||||||
Comprehensive income attributable to HollyFrontier stockholders | $ | 1,179,627 | $ | 2,263,429 | $ | 42,754 | $ | (2,283,029 | ) | $ | 1,202,781 | $ | 34,405 | $ | (42,012 | ) | $ | 1,195,174 |
Condensed Consolidating Statement of Income and Comprehensive Income | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2011 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | Eliminations | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Sales and other revenues | $ | 1,067 | $ | 10,432,420 | $ | 33 | $ | — | $ | 10,433,520 | $ | 144,916 | $ | (111,320 | ) | $ | 10,467,116 | |||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of products sold | — | 8,531,358 | — | — | 8,531,358 | — | (109,719 | ) | 8,421,639 | |||||||||||||||||||||||
Operating expenses | — | 459,679 | 186 | — | 459,865 | 41,821 | 285 | 501,971 | ||||||||||||||||||||||||
General and administrative | 71,884 | 1,769 | — | — | 73,653 | 4,988 | — | 78,641 | ||||||||||||||||||||||||
Depreciation and amortization | 2,719 | 81,875 | — | — | 84,594 | 22,407 | (621 | ) | 106,380 | |||||||||||||||||||||||
Total operating costs and expenses | 74,603 | 9,074,681 | 186 | — | 9,149,470 | 69,216 | (110,055 | ) | 9,108,631 | |||||||||||||||||||||||
Income (loss) from operations | (73,536 | ) | 1,357,739 | (153 | ) | — | 1,284,050 | 75,700 | (1,265 | ) | 1,358,485 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Earnings of equity method investments | 1,380,375 | 25,231 | 25,454 | (1,405,715 | ) | 25,345 | 1,848 | (25,454 | ) | 1,739 | ||||||||||||||||||||||
Interest income (expense) | (27,033 | ) | (2,595 | ) | 39 | — | (29,589 | ) | (27,789 | ) | 1,853 | (55,525 | ) | |||||||||||||||||||
Merger transaction costs | (15,114 | ) | — | — | — | (15,114 | ) | — | — | (15,114 | ) | |||||||||||||||||||||
1,338,228 | 22,636 | 25,493 | (1,405,715 | ) | (19,358 | ) | (25,941 | ) | (23,601 | ) | (68,900 | ) | ||||||||||||||||||||
Income before income taxes | 1,264,692 | 1,380,375 | 25,340 | (1,405,715 | ) | 1,264,692 | 49,759 | (24,866 | ) | 1,289,585 | ||||||||||||||||||||||
Income tax provision | 465,561 | — | — | — | 465,561 | 169 | — | 465,730 | ||||||||||||||||||||||||
Net income | 799,131 | 1,380,375 | 25,340 | (1,405,715 | ) | 799,131 | 49,590 | (24,866 | ) | 823,855 | ||||||||||||||||||||||
Less net income attributable to noncontrolling interest | — | — | — | — | — | 23,838 | — | 23,838 | ||||||||||||||||||||||||
Net income attributable to HollyFrontier stockholders | $ | 799,131 | $ | 1,380,375 | $ | 25,340 | $ | (1,405,715 | ) | $ | 799,131 | $ | 25,752 | $ | (24,866 | ) | $ | 800,017 | ||||||||||||||
Comprehensive income attributable to HollyFrontier stockholders | $ | 790,561 | $ | 1,401,542 | $ | 25,340 | $ | (1,405,715 | ) | $ | 811,728 | $ | 26,701 | $ | (24,866 | ) | $ | 813,563 |
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Cash flows from operating activities | $ | 1,260,731 | $ | (142,743 | ) | $ | — | $ | 1,117,988 | $ | 100,652 | $ | (46,852 | ) | $ | 1,171,788 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||||||
Additions to properties, plants and equip | (4,993 | ) | (173,242 | ) | — | (178,235 | ) | — | — | (178,235 | ) | |||||||||||||||||
Additions to properties, plants and equip – HEP | — | — | — | — | (29,302 | ) | — | (29,302 | ) | |||||||||||||||||||
Investment in Sabine Biofuels | — | (2,000 | ) | — | (2,000 | ) | — | — | (2,000 | ) | ||||||||||||||||||
Purchases of marketable securities | (236,315 | ) | — | — | (236,315 | ) | — | — | (236,315 | ) | ||||||||||||||||||
Sales and maturities of marketable securities | 211,286 | 930 | — | 212,216 | — | — | 212,216 | |||||||||||||||||||||
(30,022 | ) | (174,312 | ) | — | (204,334 | ) | (29,302 | ) | — | (233,636 | ) | |||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||
Net borrowings under credit agreement – HEP | — | — | — | — | 231,000 | — | 231,000 | |||||||||||||||||||||
Repayment of promissory notes | — | 72,900 | — | 72,900 | (72,900 | ) | — | — | ||||||||||||||||||||
Net proceeds from issuance of senior notes - HEP | — | — | — | — | 294,750 | — | 294,750 | |||||||||||||||||||||
Principal tender on senior notes - HFC | (205,000 | ) | — | — | (205,000 | ) | — | — | (205,000 | ) | ||||||||||||||||||
Principal tender on senior notes - HEP | — | — | — | — | (185,000 | ) | — | (185,000 | ) | |||||||||||||||||||
Purchase of treasury stock | (190,307 | ) | — | — | (190,307 | ) | — | — | (190,307 | ) | ||||||||||||||||||
Structured stock repurchase agreement | 8,620 | — | — | 8,620 | — | — | 8,620 | |||||||||||||||||||||
Contribution from joint venture partner | — | — | — | — | 6,000 | — | 6,000 | |||||||||||||||||||||
Contribution from general partner | — | (10,286 | ) | — | (10,286 | ) | 10,286 | — | — | |||||||||||||||||||
Distribution from HEP upon UNEV transfer | — | 260,922 | — | 260,922 | (260,922 | ) | — | — | ||||||||||||||||||||
Dividends | (382,610 | ) | — | — | (382,610 | ) | — | — | (382,610 | ) | ||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | (91,063 | ) | 47,314 | (43,749 | ) | |||||||||||||||||||
Excess tax benefit from equity-based compensation | 16,021 | — | — | 16,021 | — | — | 16,021 | |||||||||||||||||||||
Purchase of units for incentive grants - HEP | — | — | — | — | (4,919 | ) | — | (4,919 | ) | |||||||||||||||||||
Deferred financing costs | — | (67 | ) | — | (67 | ) | (3,222 | ) | — | (3,289 | ) | |||||||||||||||||
Other | — | (967 | ) | — | (967 | ) | 264 | (462 | ) | (1,165 | ) | |||||||||||||||||
(753,276 | ) | 322,502 | — | (430,774 | ) | (75,726 | ) | 46,852 | (459,648 | ) | ||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Increase (decrease) for the period | 477,433 | 5,447 | — | 482,880 | (4,376 | ) | — | 478,504 | ||||||||||||||||||||
Beginning of period | 1,575,891 | (3,358 | ) | 2 | 1,572,535 | 6,369 | — | 1,578,904 | ||||||||||||||||||||
End of period | $ | 2,053,324 | $ | 2,089 | $ | 2 | $ | 2,055,415 | $ | 1,993 | $ | — | $ | 2,057,408 |
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2011 | Parent | Guarantor Restricted Subsidiaries | Non- Guarantor Restricted Subsidiaries | HollyFrontier Corp. Before Consolidation of HEP | Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) | Eliminations | Consolidated | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Cash flows from operating activities | $ | 1,690,926 | $ | (664,988 | ) | $ | — | $ | 1,025,938 | $ | 93,299 | $ | (30,034 | ) | $ | 1,089,203 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Additions to properties, plants and equip | (6,056 | ) | (92,372 | ) | — | (98,428 | ) | — | — | (98,428 | ) | |||||||||||||||||
Additions to properties, plants and equip – HEP | — | — | — | — | (175,795 | ) | — | (175,795 | ) | |||||||||||||||||||
Investment in Sabine Biofuels | (9,125 | ) | — | — | (9,125 | ) | — | — | (9,125 | ) | ||||||||||||||||||
Cash received in merger with Frontier | 182 | 871,976 | — | 872,158 | — | — | 872,158 | |||||||||||||||||||||
Purchases of marketable securities | (370,042 | ) | — | — | (370,042 | ) | — | — | (370,042 | ) | ||||||||||||||||||
Sales and maturities of marketable securities | 194,386 | — | — | 194,386 | — | — | 194,386 | |||||||||||||||||||||
(190,655 | ) | 779,604 | — | 588,949 | (175,795 | ) | — | 413,154 | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Net borrowings under credit agreement – HEP | — | — | — | — | 43,000 | — | 43,000 | |||||||||||||||||||||
Purchase of treasury stock | (38,955 | ) | — | — | (38,955 | ) | — | — | (38,955 | ) | ||||||||||||||||||
Principal tender on senior notes – HFC | (15 | ) | — | — | (15 | ) | — | — | (15 | ) | ||||||||||||||||||
Contribution to HEP | — | (96,000 | ) | — | (96,000 | ) | 96,000 | — | — | |||||||||||||||||||
Contribution from UNEV joint venture partner | — | — | — | — | 27,500 | — | 27,500 | |||||||||||||||||||||
Dividends | (129,377 | ) | — | — | (129,377 | ) | — | — | (129,377 | ) | ||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | (67,963 | ) | 30,034 | (37,929 | ) | |||||||||||||||||||
Excess tax benefit from equity-based compensation | 1,399 | — | — | 1,399 | — | — | 1,399 | |||||||||||||||||||||
Purchase of units for restricted grants - HEP | — | — | — | — | (1,641 | ) | — | (1,641 | ) | |||||||||||||||||||
Deferred financing costs | (8,574 | ) | — | — | (8,574 | ) | (3,150 | ) | — | (11,724 | ) | |||||||||||||||||
Other | — | (857 | ) | — | (857 | ) | — | — | (857 | ) | ||||||||||||||||||
(175,522 | ) | (96,857 | ) | — | (272,379 | ) | 93,746 | 30,034 | (148,599 | ) | ||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Increase (decrease) for the period: | 1,324,749 | 17,759 | — | 1,342,508 | 11,250 | — | 1,353,758 | |||||||||||||||||||||
Beginning of period | 230,082 | (9,035 | ) | 2 | 221,049 | 8,052 | — | 229,101 | ||||||||||||||||||||
End of period | $ | 1,554,831 | $ | 8,724 | $ | 2 | $ | 1,563,557 | $ | 19,302 | $ | — | $ | 1,582,859 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended September 30, | Change from 2011 | ||||||||||||||
2012 | 2011 | Change | Percent | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Sales and other revenues | $ | 5,204,798 | $ | 5,173,398 | $ | 31,400 | 0.6 | % | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 3,898,736 | 3,989,927 | (91,191 | ) | (2.3 | ) | |||||||||
Operating expenses (exclusive of depreciation and amortization) | 233,859 | 227,883 | 5,976 | 2.6 | |||||||||||
General and administrative expenses (exclusive of depreciation and amortization) | 28,787 | 43,141 | (14,354 | ) | (33.3 | ) | |||||||||
Depreciation and amortization | 65,112 | 43,240 | 21,872 | 50.6 | |||||||||||
Total operating costs and expenses | 4,226,494 | 4,304,191 | (77,697 | ) | (1.8 | ) | |||||||||
Income from operations | 978,304 | 869,207 | 109,097 | 12.6 | |||||||||||
Other income (expense): | |||||||||||||||
Earnings of equity method investments | 852 | 532 | 320 | 60.2 | |||||||||||
Interest income | 2,219 | 204 | 2,015 | 987.7 | |||||||||||
Interest expense | (21,103 | ) | (25,074 | ) | 3,971 | (15.8 | ) | ||||||||
Merger transaction costs | — | (9,100 | ) | 9,100 | (100.0 | ) | |||||||||
(18,032 | ) | (33,438 | ) | 15,406 | (46.1 | ) | |||||||||
Income before income taxes | 960,272 | 835,769 | 124,503 | 14.9 | |||||||||||
Income tax provision | 349,622 | 304,758 | 44,864 | 14.7 | |||||||||||
Net income | 610,650 | 531,011 | 79,639 | 15.0 | |||||||||||
Less net income attributable to noncontrolling interest | 10,277 | 7,923 | 2,354 | 29.7 | |||||||||||
Net income attributable to HollyFrontier stockholders | $ | 600,373 | $ | 523,088 | $ | 77,285 | 14.8 | % | |||||||
Earnings per share attributable to HollyFrontier stockholders: | |||||||||||||||
Basic | $ | 2.95 | $ | 2.50 | $ | 0.45 | 18.0 | % | |||||||
Diluted | $ | 2.94 | $ | 2.48 | $ | 0.46 | 18.5 | % | |||||||
Cash dividends declared per common share | $ | 1.15 | $ | 0.59 | $ | 0.56 | 94.9 | % | |||||||
Average number of common shares outstanding: | |||||||||||||||
Basic | 203,557 | 209,583 | (6,026 | ) | (2.9 | )% | |||||||||
Diluted | 204,434 | 210,579 | (6,145 | ) | (2.9 | )% |
Nine Months Ended | |||||||||||||||
September 30, | Change from 2011 | ||||||||||||||
2012 | 2011 (1) | Change | Percent | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Sales and other revenues | $ | 14,943,217 | $ | 10,467,116 | $ | 4,476,101 | 42.8 | % | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 11,767,417 | 8,421,639 | 3,345,778 | 39.7 | |||||||||||
Operating expenses (exclusive of depreciation and amortization) | 698,212 | 501,971 | 196,241 | 39.1 | |||||||||||
General and administrative expenses (exclusive of depreciation and amortization) | 88,421 | 78,641 | 9,780 | 12.4 | |||||||||||
Depreciation and amortization | 178,162 | 106,380 | 71,782 | 67.5 | |||||||||||
Total operating costs and expenses | 12,732,212 | 9,108,631 | 3,623,581 | 39.8 | |||||||||||
Income from operations | 2,211,005 | 1,358,485 | 852,520 | 62.8 | |||||||||||
Other income (expense): | |||||||||||||||
Earnings of equity method investments | 2,455 | 1,739 | 716 | 41.2 | |||||||||||
Interest income | 3,360 | 946 | 2,414 | 255.2 | |||||||||||
Interest expense | (81,360 | ) | (56,471 | ) | (24,889 | ) | 44.1 | ||||||||
Gain on sale of marketable securities | 326 | — | 326 | — | |||||||||||
Merger transaction costs | — | (15,114 | ) | 15,114 | (100.0 | ) | |||||||||
(75,219 | ) | (68,900 | ) | (6,319 | ) | 9.2 | |||||||||
Income before income taxes | 2,135,786 | 1,289,585 | 846,201 | 65.6 | |||||||||||
Income tax provision | 775,746 | 465,730 | 310,016 | 66.6 | |||||||||||
Net income | 1,360,040 | 823,855 | 536,185 | 65.1 | |||||||||||
Less net income attributable to noncontrolling interest | 24,472 | 23,838 | 634 | 2.7 | |||||||||||
Net income attributable to HollyFrontier stockholders | $ | 1,335,568 | $ | 800,017 | $ | 535,551 | 66.9 | % | |||||||
Earnings per share attributable to HollyFrontier stockholders: | |||||||||||||||
Basic | $ | 6.46 | $ | 5.66 | $ | 0.80 | 14.1 | % | |||||||
Diluted | $ | 6.44 | $ | 5.63 | $ | 0.81 | 14.4 | % | |||||||
Cash dividends declared per common share | $ | 2.40 | $ | 0.74 | $ | 1.66 | 224.3 | % | |||||||
Average number of common shares outstanding: | |||||||||||||||
Basic | 206,657 | 141,353 | 65,304 | 46.2 | % | ||||||||||
Diluted | 207,546 | 142,092 | 65,454 | 46.1 | % |
Nine Months Ended September 30, 2011 | ||||
(In thousands) | ||||
Sales and other revenues | $ | 14,446,297 | ||
Net income attributable to HollyFrontier stockholders | $ | 1,118,018 |
September 30, 2012 | December 31, 2011 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash, cash equivalents and investments in marketable securities | $ | 2,343,336 | $ | 1,840,610 | ||||
Working capital | $ | 2,554,761 | $ | 2,030,063 | ||||
Total assets | $ | 10,345,936 | $ | 9,576,243 | ||||
Long-term debt | $ | 1,346,227 | $ | 1,214,742 | ||||
Total equity | $ | 6,359,496 | $ | 5,835,900 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(In thousands) | ||||||||||||||||
Net cash provided by operating activities | $ | 742,285 | $ | 631,207 | $ | 1,171,788 | $ | 1,089,203 | ||||||||
Net cash provided by (used for) investing activities | $ | (89,183 | ) | $ | 668,216 | $ | (233,636 | ) | $ | 413,154 | ||||||
Net cash provided by (used for) financing activities | $ | 32,108 | $ | (143,253 | ) | $ | (459,648 | ) | $ | (148,599 | ) | |||||
Capital expenditures | $ | 79,517 | $ | 117,918 | $ | 207,537 | $ | 274,223 | ||||||||
EBITDA (1) | $ | 1,033,991 | $ | 895,956 | $ | 2,367,476 | $ | 1,427,652 |
(1) | Earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA”, is calculated as net income plus (i) interest expense, net of interest income, (ii) income tax provision, and (iii) depreciation and amortization. EBITDA is not a calculation provided for under GAAP; however, the amounts included in the EBITDA calculation are derived from amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented here because it is a widely used financial indicator used by investors and analysts to measure performance. EBITDA is also used by our management for internal analysis and as a basis for financial covenants. EBITDA presented above is reconciled to net income under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following Item 3 of Part I of this Form 10-Q. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 (10) | |||||||||||||
Mid-Continent Region (El Dorado and Tulsa Refineries) | ||||||||||||||||
Crude charge (BPD) (1) | 256,850 | 263,260 | 252,110 | 160,230 | ||||||||||||
Refinery throughput (BPD) (2) | 278,990 | 283,970 | 270,380 | 168,150 | ||||||||||||
Refinery production (BPD) (3) | 268,310 | 272,790 | 262,830 | 162,900 | ||||||||||||
Sales of produced refined products (BPD) | 246,360 | 263,180 | 249,320 | 159,230 | ||||||||||||
Sales of refined products (BPD) (4) | 248,690 | 268,680 | 253,050 | 161,750 | ||||||||||||
Refinery utilization (5) | 98.8 | % | 101.3 | % | 97.0 | % | 94.0 | % | ||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 121.83 | $ | 122.82 | $ | 120.19 | $ | 122.74 | ||||||||
Cost of products (7) | 92.84 | 96.18 | 96.49 | 100.32 | ||||||||||||
Refinery gross margin | 28.99 | 26.64 | 23.70 | 22.42 | ||||||||||||
Refinery operating expenses (8) | 4.71 | 4.57 | 4.72 | 5.09 | ||||||||||||
Net operating margin | $ | 24.28 | $ | 22.07 | $ | 18.98 | $ | 17.33 | ||||||||
Refinery operating expenses per throughput barrel (9) | $ | 4.16 | $ | 4.23 | $ | 4.35 | $ | 4.82 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 69 | % | 75 | % | 70 | % | 84 | % | ||||||||
Sour crude oil | 9 | % | 7 | % | 8 | % | 4 | % | ||||||||
Heavy sour crude oil | 14 | % | 11 | % | 15 | % | 7 | % | ||||||||
Other feedstocks and blends | 8 | % | 7 | % | 7 | % | 5 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 (10) | |||||||||
Mid-Continent Region (El Dorado and Tulsa Refineries) | ||||||||||||
Sales of produced refined products: | ||||||||||||
Gasolines | 50 | % | 44 | % | 47 | % | 41 | % | ||||
Diesel fuels | 26 | % | 35 | % | 29 | % | 33 | % | ||||
Jet fuels | 10 | % | 7 | % | 10 | % | 7 | % | ||||
Fuel oil | 1 | % | — | % | 1 | % | — | % | ||||
Asphalt | 2 | % | 2 | % | 2 | % | 4 | % | ||||
Lubricants | 5 | % | 4 | % | 5 | % | 7 | % | ||||
Gas oil / intermediates | — | % | 2 | % | — | % | 4 | % | ||||
LPG and other | 6 | % | 6 | % | 6 | % | 4 | % | ||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Southwest Region (Navajo Refinery) | ||||||||||||||||
Crude charge (BPD) (1) | 101,480 | 92,270 | 91,890 | 82,860 | ||||||||||||
Refinery throughput (BPD) (2) | 110,080 | 100,290 | 100,558 | 91,220 | ||||||||||||
Refinery production (BPD) (3) | 108,810 | 100,100 | 98,980 | 90,230 | ||||||||||||
Sales of produced refined products (BPD) | 106,370 | 99,530 | 97,470 | 91,310 | ||||||||||||
Sales of refined products (BPD) (4) | 110,760 | 102,940 | 102,450 | 95,980 | ||||||||||||
Refinery utilization (5) | 101.5 | % | 92.3 | % | 91.9 | % | 82.9 | % | ||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 122.16 | $ | 120.67 | $ | 123.64 | $ | 119.84 | ||||||||
Cost of products (7) | 92.26 | 92.33 | 97.37 | 97.37 | ||||||||||||
Refinery gross margin | 29.90 | 28.34 | 26.27 | 22.47 | ||||||||||||
Refinery operating expenses (8) | 5.14 | 5.30 | 5.57 | 5.56 | ||||||||||||
Net operating margin | $ | 24.76 | $ | 23.04 | $ | 20.70 | $ | 16.91 | ||||||||
Refinery operating expenses per throughput barrel (9) | $ | 4.97 | $ | 5.26 | $ | 5.40 | $ | 5.57 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 2 | % | 4 | % | 2 | % | 4 | % | ||||||||
Sour crude oil | 75 | % | 70 | % | 78 | % | 72 | % | ||||||||
Heavy sour crude oil | 16 | % | 18 | % | 11 | % | 15 | % | ||||||||
Other feedstocks and blends | 7 | % | 8 | % | 9 | % | 9 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Sales of produced refined products: | ||||||||||||||||
Gasolines | 52 | % | 50 | % | 52 | % | 51 | % | ||||||||
Diesel fuels | 36 | % | 34 | % | 37 | % | 34 | % | ||||||||
Jet fuels | — | % | 1 | % | — | % | 1 | % | ||||||||
Fuel oil | 7 | % | 7 | % | 6 | % | 6 | % | ||||||||
Asphalt | 2 | % | 5 | % | 2 | % | 5 | % | ||||||||
LPG and other | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Rocky Mountain Region (Cheyenne and Woods Cross Refineries) | ||||||||||||
Crude charge (BPD) (1) | 75,040 | 70,060 | 73,660 | 41,050 | ||||||||
Refinery throughput (BPD) (2) | 82,030 | 75,860 | 81,550 | 44,340 | ||||||||
Refinery production (BPD) (3) | 79,500 | 73,620 | 79,650 | 43,030 | ||||||||
Sales of produced refined products (BPD) | 81,200 | 72,400 | 79,360 | 42,390 | ||||||||
Sales of refined products (BPD) (4) | 83,080 | 74,410 | 81,590 | 43,090 | ||||||||
Refinery utilization (5) | 90.4 | % | 84.4 | % | 88.7 | % | 84.6 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 (10) | |||||||||||||
Rocky Mountain Region (Cheyenne and Woods Cross Refineries) | ||||||||||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 120.44 | $ | 119.40 | $ | 117.51 | $ | 119.07 | ||||||||
Cost of products (7) | 84.35 | 86.35 | 88.87 | 90.00 | ||||||||||||
Refinery gross margin | 36.09 | 33.05 | 28.64 | 29.07 | ||||||||||||
Refinery operating expenses (8) | 6.30 | 6.55 | 6.30 | 6.44 | ||||||||||||
Net operating margin | $ | 29.79 | $ | 26.50 | $ | 22.34 | $ | 22.63 | ||||||||
Refinery operating expenses per throughput barrel (9) | $ | 6.24 | $ | 6.25 | $ | 6.13 | $ | 6.16 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 51 | % | 49 | % | 44 | % | 53 | % | ||||||||
Sour crude oil | 2 | % | 3 | % | 2 | % | 2 | % | ||||||||
Heavy sour crude oil | 28 | % | 31 | % | 33 | % | 20 | % | ||||||||
Black wax crude oil | 11 | % | 10 | % | 11 | % | 18 | % | ||||||||
Other feedstocks and blends | 8 | % | 7 | % | 10 | % | 7 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Sales of produced refined products: | ||||||||||||||||
Gasolines | 56 | % | 50 | % | 55 | % | 55 | % | ||||||||
Diesel fuels | 31 | % | 34 | % | 31 | % | 32 | % | ||||||||
Jet fuels | — | % | — | % | — | % | 1 | % | ||||||||
Fuel oil | 2 | % | 1 | % | 2 | % | 2 | % | ||||||||
Asphalt | 7 | % | 7 | % | 6 | % | 5 | % | ||||||||
LPG and other | 4 | % | 8 | % | 6 | % | 5 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Consolidated | ||||||||||||||||
Crude charge (BPD) (1) | 433,370 | 425,590 | 417,660 | 284,140 | ||||||||||||
Refinery throughput (BPD) (2) | 471,100 | 460,120 | 452,488 | 303,710 | ||||||||||||
Refinery production (BPD) (3) | 456,620 | 446,510 | 441,460 | 296,160 | ||||||||||||
Sales of produced refined products (BPD) | 433,930 | 435,110 | 426,150 | 292,930 | ||||||||||||
Sales of refined products (BPD) (4) | 442,530 | 446,030 | 437,090 | 300,820 | ||||||||||||
Refinery utilization (5) | 97.8 | % | 96.1 | % | 94.3 | % | 89.1 | % | ||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 121.66 | $ | 121.76 | $ | 120.48 | $ | 121.31 | ||||||||
Cost of products (7) | 91.11 | 93.66 | 95.28 | 97.91 | ||||||||||||
Refinery gross margin | 30.55 | 28.10 | 25.20 | 23.40 | ||||||||||||
Refinery operating expenses (8) | 5.11 | 5.07 | 5.21 | 5.43 | ||||||||||||
Net operating margin | $ | 25.44 | $ | 23.03 | $ | 19.99 | $ | 17.97 | ||||||||
Refinery operating expenses per throughput barrel (9) | $ | 4.71 | $ | 4.79 | $ | 4.91 | $ | 5.24 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 50 | % | 55 | % | 49 | % | 55 | % | ||||||||
Sour crude oil | 23 | % | 20 | % | 22 | % | 24 | % | ||||||||
Heavy sour crude oil | 17 | % | 15 | % | 16 | % | 12 | % | ||||||||
Black wax crude oil | 2 | % | 2 | % | 2 | % | 3 | % | ||||||||
Other feedstocks and blends | 8 | % | 8 | % | 11 | % | 6 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 (10) | |||||||||
Consolidated | ||||||||||||
Sales of produced refined products: | ||||||||||||
Gasolines | 51 | % | 47 | % | 50 | % | 47 | % | ||||
Diesel fuels | 29 | % | 35 | % | 31 | % | 33 | % | ||||
Jet fuels | 6 | % | 4 | % | 6 | % | 4 | % | ||||
Fuel oil | 3 | % | 2 | % | 2 | % | 2 | % | ||||
Asphalt | 3 | % | 4 | % | 3 | % | 4 | % | ||||
Lubricants | 3 | % | 2 | % | 3 | % | 4 | % | ||||
Gas oil / intermediates | — | % | 1 | % | — | % | 2 | % | ||||
LPG and other | 5 | % | 5 | % | 5 | % | 4 | % | ||||
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). 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” following Item 3 of Part I of this Form 10-Q. |
(7) | Transportation, terminal and refinery storage costs billed from HEP are included in cost of products. |
(8) | Represents operating expenses of our refineries, exclusive of depreciation and amortization. |
(9) | Represents refinery operating expenses, exclusive of depreciation and amortization, divided by refinery throughput. |
(10) | Refining operating data for the nine months ended September 30, 2011 include crude oil processed and products yielded from the El Dorado and Cheyenne Refineries for the period from July 1, 2011 through September 30, 2011 only, and averaged over the 273 days in the nine months ended September 30, 2011. |
• | 9.875% senior notes ($286.8 million principal amount maturing June 2017) |
• | 6.875% senior notes ($150 million principal amount maturing November 2018) |
• | 8.25% HEP senior notes ($150 million principal amount maturing March 2018) |
• | 6.5% HEP senior notes ($300 million principal amount maturing March 2020) |
• | our inventory positions; |
• | natural gas purchases; |
• | costs of crude oil and related grade differentials; |
• | prices of refined products; and |
• | our refining margins. |
Notional Contract Volumes by Year of Maturity | |||||||||
Commodity Price Swaps | Total Outstanding Notional | 2012 | 2013 | ||||||
WTI crude oil - long | 13,351,000 | 5,336,000 | 8,015,000 | ||||||
Ultra-low sulfur diesel - short | 10,143,000 | 2,668,000 | 7,475,000 | ||||||
Conventional unleaded gasoline - short | 3,208,000 | 2,668,000 | 540,000 |
Notional Contract Volumes by Year of Maturity | |||||||||||
Derivative Instrument | Total Outstanding Notional | 2012 | 2013 | Unit of Measure | |||||||
Commodity price swap (natural gas) - long | 3,312,000 | 3,312,000 | — | MMBTU | |||||||
Commodity price swap (WCS spread) - long | 6,117,500 | 460,000 | 5,657,500 | Barrels | |||||||
Commodity price swap (WTI) - short | 150,000 | — | 150,000 | Barrels | |||||||
Commodity price swap (gasoline) - short | 630,000 | 150,000 | 480,000 | Barrels | |||||||
NYMEX futures (WTI) - long | 234,000 | — | 234,000 | Barrels | |||||||
NYMEX futures (WTI)- short | 2,206,000 | 1,856,000 | 350,000 | Barrels |
Outstanding Principal | Estimated Fair Value | Estimated Change in Fair Value | ||||||||||
(In thousands) | ||||||||||||
HollyFrontier Senior Notes | $ | 436,812 | $ | 475,977 | $ | 13,215 | ||||||
HEP Senior Notes | $ | 450,000 | $ | 473,625 | $ | 16,309 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income attributable to HollyFrontier stockholders | $ | 600,373 | $ | 523,088 | $ | 1,335,568 | $ | 800,017 | ||||||||
Add income tax provision | 349,622 | 304,758 | 775,746 | 465,730 | ||||||||||||
Add interest expense | 21,103 | 25,074 | 81,360 | 56,471 | ||||||||||||
Subtract interest income | (2,219 | ) | (204 | ) | (3,360 | ) | (946 | ) | ||||||||
Add depreciation and amortization | 65,112 | 43,240 | 178,162 | 106,380 | ||||||||||||
EBITDA | $ | 1,033,991 | $ | 895,956 | $ | 2,367,476 | $ | 1,427,652 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Average sales price per produced barrel sold | $ | 121.66 | $ | 121.76 | $ | 120.48 | $ | 121.31 | ||||||||
Times sales of produced refined products sold (BPD) | 433,930 | 435,110 | 426,150 | 292,930 | ||||||||||||
Times number of days in period | 92 | 92 | 274 | 273 | ||||||||||||
Refined product sales from produced products sold | $ | 4,856,857 | $ | 4,874,067 | $ | 14,067,859 | $ | 9,701,147 | ||||||||
Total refined product sales | $ | 4,856,857 | $ | 4,874,067 | $ | 14,067,859 | $ | 9,701,147 | ||||||||
Add refined product sales from purchased products and rounding (1) | 100,674 | 127,520 | 376,813 | 266,355 | ||||||||||||
Total refined product sales | 4,957,531 | 5,001,587 | 14,444,672 | 9,967,502 | ||||||||||||
Add direct sales of excess crude oil (2) | 187,196 | 148,989 | 378,036 | 422,890 | ||||||||||||
Add other refining segment revenue (3) | 47,922 | 14,277 | 85,141 | 42,328 | ||||||||||||
Total refining segment revenue | 5,192,649 | 5,164,853 | 14,907,849 | 10,432,720 | ||||||||||||
Add HEP segment sales and other revenues | 72,496 | 49,131 | 207,250 | 144,916 | ||||||||||||
Add corporate and other revenues | 352 | 299 | 912 | 1,100 | ||||||||||||
Subtract consolidations and eliminations | (60,699 | ) | (40,885 | ) | (172,794 | ) | (111,620 | ) | ||||||||
Sales and other revenues | $ | 5,204,798 | $ | 5,173,398 | $ | 14,943,217 | $ | 10,467,116 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Average cost of products per produced barrel sold | $ | 91.11 | $ | 93.66 | $ | 95.28 | $ | 97.91 | ||||||||
Times sales of produced refined products sold (BPD) | 433,930 | 435,110 | 426,150 | 292,930 | ||||||||||||
Times number of days in period | 92 | 92 | 274 | 273 | ||||||||||||
Cost of products for produced products sold | $ | 3,637,253 | $ | 3,749,221 | $ | 11,125,379 | $ | 7,829,852 | ||||||||
Total cost of products for produced products sold | $ | 3,637,253 | $ | 3,749,221 | $ | 11,125,379 | $ | 7,829,852 | ||||||||
Add refined product costs from purchased products and rounding (1) | 100,078 | 128,857 | 377,476 | 268,390 | ||||||||||||
Total cost of refined products sold | 3,737,331 | 3,878,078 | 11,502,855 | 8,098,242 | ||||||||||||
Add crude oil cost of direct sales of excess crude oil (2) | 182,252 | 147,223 | 367,795 | 416,084 | ||||||||||||
Add other refining segment cost of products sold (4) | 38,743 | 4,696 | 67,185 | 17,032 | ||||||||||||
Total refining segment cost of products sold | 3,958,326 | 4,029,997 | 11,937,835 | 8,531,358 | ||||||||||||
Subtract consolidations and eliminations | (59,590 | ) | (40,070 | ) | (170,418 | ) | (109,719 | ) | ||||||||
Costs of products sold (exclusive of depreciation and amortization) | $ | 3,898,736 | $ | 3,989,927 | $ | 11,767,417 | $ | 8,421,639 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Average refinery operating expenses per produced barrel sold | $ | 5.11 | $ | 5.07 | $ | 5.21 | $ | 5.43 | ||||||||
Times sales of produced refined products sold (BPD) | 433,930 | 435,110 | 426,150 | 292,930 | ||||||||||||
Times number of days in period | 92 | 92 | 274 | 273 | ||||||||||||
Refinery operating expenses for produced products sold | $ | 203,999 | $ | 202,953 | $ | 608,346 | $ | 434,237 | ||||||||
Total refinery operating expenses per produced products sold | $ | 203,999 | $ | 202,953 | $ | 608,346 | $ | 434,237 | ||||||||
Add other refining segment operating expenses and rounding (5) | 8,848 | 10,080 | 26,933 | 26,156 | ||||||||||||
Total refining segment operating expenses | 212,847 | 213,033 | 635,279 | 460,393 | ||||||||||||
Add HEP segment operating expenses | 21,324 | 15,015 | 61,799 | 41,821 | ||||||||||||
Add corporate and other costs | 42 | 291 | 1,302 | 168 | ||||||||||||
Subtract consolidations and eliminations | (354 | ) | (456 | ) | (168 | ) | (411 | ) | ||||||||
Operating expenses (exclusive of depreciation and amortization) | $ | 233,859 | $ | 227,883 | $ | 698,212 | $ | 501,971 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Net operating margin per barrel | $ | 25.44 | $ | 23.03 | $ | 19.99 | $ | 17.97 | ||||||||
Add average refinery operating expenses per produced barrel | 5.11 | 5.07 | 5.21 | 5.43 | ||||||||||||
Refinery gross margin per barrel | 30.55 | 28.10 | 25.20 | 23.40 | ||||||||||||
Add average cost of products per produced barrel sold | 91.11 | 93.66 | 95.28 | 97.91 | ||||||||||||
Average sales price per produced barrel sold | $ | 121.66 | $ | 121.76 | $ | 120.48 | $ | 121.31 | ||||||||
Times sales of produced refined products sold (BPD) | 433,930 | 435,110 | 426,150 | 292,930 | ||||||||||||
Times number of days in period | 92 | 92 | 274 | 273 | ||||||||||||
Refined product sales from produced products sold | $ | 4,856,857 | $ | 4,874,067 | $ | 14,067,859 | $ | 9,701,147 | ||||||||
Total refined product sales from produced products sold | $ | 4,856,857 | $ | 4,874,067 | $ | 14,067,859 | $ | 9,701,147 | ||||||||
Add refined product sales from purchased products and rounding (1) | 100,674 | 127,520 | 376,813 | 266,355 | ||||||||||||
Total refined product sales | 4,957,531 | 5,001,587 | 14,444,672 | 9,967,502 | ||||||||||||
Add direct sales of excess crude oil (2) | 187,196 | 148,989 | 378,036 | 422,890 | ||||||||||||
Add other refining segment revenue (3) | 47,922 | 14,277 | 85,141 | 42,328 | ||||||||||||
Total refining segment revenue | 5,192,649 | 5,164,853 | 14,907,849 | 10,432,720 | ||||||||||||
Add HEP segment sales and other revenues | 72,496 | 49,131 | 207,250 | 144,916 | ||||||||||||
Add corporate and other revenues | 352 | 299 | 912 | 1,100 | ||||||||||||
Subtract consolidations and eliminations | (60,699 | ) | (40,885 | ) | (172,794 | ) | (111,620 | ) | ||||||||
Sales and other revenues | $ | 5,204,798 | $ | 5,173,398 | $ | 14,943,217 | $ | 10,467,116 |
(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. |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased under Approved Stock Repurchase Programs | Maximum Dollar Value of Shares Yet to be Purchased under Approved Stock Repurchase Programs | ||||||||||
July 2012 | — | $ | — | — | $ | 510,228,860 | ||||||||
August 2012 | — | $ | — | — | $ | 510,228,860 | ||||||||
September 2012 (1) | 13,600 | $ | 39.39 | — | $ | 510,228,860 | ||||||||
Total for July to September 2012 | 13,600 | — |
Item 6. | Exhibits |
HOLLYFRONTIER CORPORATION | |||
(Registrant) | |||
Date: November 7, 2012 | /s/ Douglas S. Aron | ||
Douglas S. Aron | |||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||
Date: November 7, 2012 | /s/ J. W. Gann, Jr. | ||
J. W. Gann, Jr. | |||
Vice President and Controller (Principal Accounting Officer) |
Exhibit Number | Description | |
3.1 | Amended and Restated Certificate of Incorporation of HollyFrontier Corporation (incorporated by reference to Exhibit 3.1 of Registrant's Form 8-K Current Report filed July 8, 2011, File No. 1-03876). | |
3.2 | Amended and Restated By-Laws of HollyFrontier Corporation (incorporated by reference to Exhibit 3.1 of Registrant's Form 8-K Current Report filed November 21, 2011, File No. 1-03876). | |
4.1+ | Fourth Supplemental Indenture, dated August 6, 2012, among HEP UNEV Holdings LLC, HEP UNEV Pipeline LLC, Holly Energy Partners, L.P., Holly Energy Finance Corp., the other guarantors party thereto and U.S. Bank National Association to the Indenture, dated March 10, 2010, among Holly Energy Partners, L.P., Holly Energy Finance Corp., each of the guarantors party thereto and U.S. Bank National Association. | |
4.2+ | First Supplemental Indenture, dated August 6, 2012, among HEP UNEV Holdings LLC, HEP UNEV Pipeline LLC, Holly Energy Partners, L.P., Holly Energy Finance Corp., the other guarantors party thereto and U.S. Bank National Association to the Indenture, dated March 12, 2012, among Holly Energy Partners, L.P., Holly Energy Finance Corp., each of the guarantors party thereto and U.S. Bank National Association. | |
10.1 | LLC Interest Purchase Agreement, dated July 12, 2012, by and among HollyFrontier Corporation, Holly Energy Partners, L.P. and HEP UNEV Holdings LLC (incorporated by reference to Exhibit 10.2 of Registrant's Quarterly Report on Form 10-Q for its quarterly period ended June 30, 2012, File No. 1-03876). | |
10.2 | Seventh Amended and Restated Omnibus Agreement, dated July 12, 2012, by and among HollyFrontier Corporation, Holly Energy Partners, L.P. and certain of their respective subsidiaries (incorporated by reference to Exhibit 10.3 of Registrant's Quarterly Report on Form 10-Q for its quarterly period ended June 30, 2012, File No. 1-03876). | |
10.3 | Limited Partial Waiver of Incentive Distribution Rights under the First Amended and Restated Agreement of Limited Partnership of Holly Energy Partners, L.P., dated as of July 12, 2012 (incorporated by reference to Exhibit 10.4 of Registrant's Quarterly Report on Form 10-Q for its quarterly period ended June 30, 2012, File No. 1-03876). | |
10.4 | Amended and Restated Limited Liability Company Agreement of HEP UNEV Holdings LLC, dated July 12, 2012, by and among HEP UNEV Holdings LLC, HollyFrontier Holdings LLC and Holly Energy Partners, L.P. (incorporated by reference to Exhibit 10.5 of Registrant's Quarterly Report on Form 10-Q for its quarterly period ended June 30, 2012, File No. 1-03876). | |
10.5 | Termination of Option Agreement, dated July 12, 2012, by and among HollyFrontier Corporation, HEP UNEV Pipeline LLC (f/k/a Holly UNEV Pipeline Company), Navajo Pipeline Co., L.P., Holly Logistic Services, L.L.C., HEP Logistics Holdings, L.P., Holly Energy Partners, L.P., HEP Logistics GP, L.L.C. and Holly Energy Partners - Operating, L.P. (incorporated by reference to Exhibit 10.6 of Registrant's Quarterly Report on Form 10-Q for its quarterly period ended June 30, 2012, File No. 1-03876). | |
31.1+ | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2+ | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1++ | Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2++ | Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002. | |
101* | The following financial information from HollyFrontier Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) Notes to the Consolidated Financial Statements. |
By: | HEP Logistic Holdings, L.P., Its General Partner |
Each By: | Holly Energy Partners – Operating, L.P., a Delaware limited liability company and Its Sole Member |
Each by: | HEP Pipeline GP, L.L.C., a Delaware limited liability company, its General Partner |
By: | HEP Refining GP, L.L.C., a Delaware limited liability company, its General Partner |
By: | HEP Logistic Holdings, L.P., Its General Partner |
Each By: | Holly Energy Partners – Operating, L.P., a Delaware limited liability company and Its Sole Member |
Each by: | HEP Pipeline GP, L.L.C., a Delaware limited liability company, its General Partner |
By: | HEP Refining GP, L.L.C., a Delaware limited liability company, its General Partner |
1. | I have reviewed this quarterly report on Form 10-Q of HollyFrontier Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting |
Date: November 7, 2012 | /s/ Michael C. Jennings | |
Michael C. Jennings | ||
Chief Executive Officer and President |
1. | I have reviewed this quarterly report on Form 10-Q of HollyFrontier Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's most recent fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 7, 2012 | /s/ Douglas S. Aron | |
Douglas S. Aron | ||
Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 7, 2012 | /s/ Michael C. Jennings | |
Michael C. Jennings | ||
Chief Executive Officer and President |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 7, 2012 | /s/ Douglas S. Aron | |
Douglas S. Aron | ||
Executive Vice President and Chief Financial Officer |
Retirement Plan (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
|
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Pension and Other Postretirement Benefit Expense [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Expense | The net periodic pension expense consisted of the following components:
The net periodic benefit expense of this plan consisted of the following components:
|
Financial Instruments (Changes in Level 3 Inputs) (Details) (USD $)
|
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2012
|
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Hypothetical change to estimated future cash flows attributable to commodity price swaps, percent | 10.00% | |
Estimated change in fair value resulting from hypothetical percentage change in future cash flows attributable to commodity price swaps | $ 4,000,000 | |
Commodity Contract [Member] | Level 3 [Member]
|
||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance, January 1, 2012 | 119,461,000 | 31,616,000 |
Unrealized losses included in other comprehensive income | (192,446,000) | (158,893,000) |
Settlements | 44,937,000 | 99,229,000 |
Ending balance, March 31, 2012 | (28,048,000) | $ (28,048,000) |
Retirement Plan (Narrative) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Jun. 30, 2012
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | $ 0 | $ 9,000 | $ 700,000 | $ 0 | $ 9,000 |
Other Comprehensive Income (Loss), Finalization of Pension and Non-Pension Postretirement Plan Valuation, before Tax | 7,102,000 | ||||
Expected long-term annual rate of return on plan assets | 6.50% | ||||
Maximum [Member]
|
|||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated contributions in 2012 | 22,400,000 | ||||
Pension Plans, Defined Benefit [Member]
|
|||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Amendments | 3,200,000 | 10,100,000 | |||
Estimated effect of curtailment | $ 0 | $ 798,000 | $ 7,100,000 | $ 899,000 | $ 798,000 |
Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Inventories | ||||||||||
Crude oil | $ 526,783 | $ 400,952 | ||||||||
Other raw materials and unfinished products | 126,406 | [1] | 137,356 | [1] | ||||||
Finished products | 752,958 | [2] | 513,776 | [2] | ||||||
Process chemicals | 2,663 | [3] | 1,180 | [3] | ||||||
Repairs and maintenance supplies and other | 76,640 | 61,355 | ||||||||
Inventories, total | $ 1,485,450 | $ 1,114,619 | ||||||||
|
Holly Energy Partners (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
3 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2011
|
Jul. 12, 2012
|
Sep. 30, 2012
HEP [Member]
Customers
|
Sep. 30, 2012
HEP [Member]
|
Sep. 30, 2012
UNEV Pipeline [Member]
|
Sep. 30, 2012
Securities Pledged As Collateral [Member]
HEP [Member]
|
Sep. 30, 2012
Twelve Inch Refined Products Pipeline Project
|
Jul. 12, 2012
UNEV Pipeline [Member]
|
|
Variable Interest Entity [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 75.00% | |||||||
Aggregate consideration paid in connection with merger | $ 3,700.0 | $ 315.0 | ||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 260.0 | |||||||
Percentage of general partner interest | 2.00% | |||||||
Term for Transportation Agreement | 10 years | |||||||
Number of primary customers | 2 | |||||||
Percentage of revenue Holly Corp represents | 83.00% | 83.00% | ||||||
Percentage of ownership in variable interest entity | 44.00% | 21.00% | ||||||
Common HEP units collateralized for crude oil | 6,000,000 | |||||||
Annual contract payment | $ 16.9 | $ 200.3 | ||||||
Percentage of interest owned In pipeline project | 75.00% |
Inventories (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
|
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Components | Inventory consists of the following components:
|
Segment Information (Schedule Of Segment Reporting Information) (Details) (USD $)
|
3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and other revenues | $ 5,204,798,000 | $ 5,173,398,000 | $ 14,943,217,000 | $ 10,467,116,000 | ||||||||||
Depreciation and amortization | 65,112,000 | 43,240,000 | 178,162,000 | 106,380,000 | ||||||||||
Income (loss) from operations | 978,304,000 | 869,207,000 | 2,211,005,000 | 1,358,485,000 | ||||||||||
Capital expenditures | 79,517,000 | 117,918,000 | 207,537,000 | 274,223,000 | ||||||||||
Cash, Cash Equivalents, And Investments In Marketable Securities | 2,343,336,000 | 2,343,336,000 | 1,840,610,000 | |||||||||||
Assets | 10,345,936,000 | 10,345,936,000 | 9,576,243,000 | |||||||||||
Long-term Debt | 1,346,227,000 | 1,346,227,000 | 1,214,742,000 | |||||||||||
Refining [Member]
|
||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and other revenues | 5,192,649,000 | [1] | 5,164,853,000 | [1] | 14,907,849,000 | [1] | 10,432,720,000 | [1] | ||||||
Depreciation and amortization | 47,890,000 | [1] | 35,070,000 | [1] | 133,087,000 | [1] | 81,875,000 | [1] | ||||||
Income (loss) from operations | 973,586,000 | [1] | 884,997,000 | [1] | 2,201,648,000 | [1] | 1,357,739,000 | [1] | ||||||
Capital expenditures | 70,069,000 | [1] | 46,294,000 | [1] | 171,865,000 | [1] | 92,078,000 | [1] | ||||||
Cash, Cash Equivalents, And Investments In Marketable Securities | 557,000 | [1] | 557,000 | [1] | 0 | [1] | ||||||||
Assets | 6,567,224,000 | [1] | 6,567,224,000 | [1] | 6,280,426,000 | [1] | ||||||||
Long-term Debt | 0 | [1] | 0 | [1] | 0 | |||||||||
Corporate And Other [Member]
|
||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and other revenues | 352,000 | 299,000 | 912,000 | 1,100,000 | ||||||||||
Depreciation and amortization | 4,793,000 | 872,000 | 7,013,000 | 2,719,000 | ||||||||||
Income (loss) from operations | (31,871,000) | (40,135,000) | (89,899,000) | (73,689,000) | ||||||||||
Capital expenditures | 3,765,000 | 3,523,000 | 6,370,000 | 6,350,000 | ||||||||||
Cash, Cash Equivalents, And Investments In Marketable Securities | 2,340,786,000 | 2,340,786,000 | 1,834,241,000 | |||||||||||
Assets | 2,426,067,000 | 2,426,067,000 | 1,997,601,000 | |||||||||||
Long-term Debt | 487,843,000 | 487,843,000 | 705,331,000 | |||||||||||
Consolidations And Eliminations [Member]
|
||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and other revenues | (60,699,000) | (40,885,000) | (172,794,000) | (111,620,000) | ||||||||||
Depreciation and amortization | (207,000) | (207,000) | (621,000) | (621,000) | ||||||||||
Income (loss) from operations | (548,000) | (242,000) | (1,587,000) | (1,265,000) | ||||||||||
Capital expenditures | 0 | 0 | 0 | 0 | ||||||||||
Cash, Cash Equivalents, And Investments In Marketable Securities | 0 | 0 | 0 | |||||||||||
Assets | (56,506,000) | (56,506,000) | (120,444,000) | |||||||||||
Long-term Debt | (16,050,000) | (16,050,000) | (89,350,000) | |||||||||||
HEP [Member]
|
||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and other revenues | 72,496,000 | [2] | 49,131,000 | [2] | 207,250,000 | [2] | 144,916,000 | [2] | ||||||
Depreciation and amortization | 12,636,000 | [2] | 7,505,000 | [2] | 38,683,000 | [2] | 22,407,000 | [2] | ||||||
Income (loss) from operations | 37,137,000 | [2] | 24,587,000 | [2] | 100,843,000 | [2] | 75,700,000 | [2] | ||||||
Capital expenditures | 5,683,000 | [2] | 68,101,000 | [2] | 29,302,000 | [2] | 175,795,000 | [2] | ||||||
Cash, Cash Equivalents, And Investments In Marketable Securities | 1,993,000 | [2] | 1,993,000 | [2] | 6,369,000 | [2] | ||||||||
Segment revenues from external customers | 11,900,000 | 8,300,000 | 34,600,000 | 33,000,000 | ||||||||||
Assets | 1,409,151,000 | [2] | 1,409,151,000 | [2] | 1,418,660,000 | [2] | ||||||||
Long-term Debt | $ 874,434,000 | [2] | $ 874,434,000 | [2] | $ 598,761,000 | [2] | ||||||||
Twelve Inch Refined Products Pipeline Project
|
||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Percentage of interest owned in pipeline project | 75.00% | |||||||||||||
|
Environmental (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Loss Contingencies [Line Items] | |||||
Environmental remediation costs | $ 1.7 | $ 0.7 | $ 16.9 | $ 0.6 | |
Accrued environmental liability | 61.8 | 61.8 | 42.2 | ||
Other Long-Term Liabilities [Member]
|
|||||
Loss Contingencies [Line Items] | |||||
Accrued environmental liability | 48.6 | 48.6 | 31.7 | ||
Frontier [Member]
|
|||||
Loss Contingencies [Line Items] | |||||
Accrued environmental liability | $ 15.6 | $ 15.6 |
Supplemental Guarantor/Non-Guarantor Financial Information Consolidating Statement of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
Parent [Member]
|
Sep. 30, 2011
Parent [Member]
|
Sep. 30, 2012
Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2011
Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2012
Non Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2011
Non Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2012
Holly Frontier Corp. Before Consolidation Of HEP [Member]
|
Sep. 30, 2011
Holly Frontier Corp. Before Consolidation Of HEP [Member]
|
Sep. 30, 2012
Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) [Member]
|
Sep. 30, 2011
Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) [Member]
|
Sep. 30, 2012
Eliminations [Member]
|
Sep. 30, 2011
Eliminations [Member]
|
Sep. 30, 2012
HEP [Member]
|
Sep. 30, 2011
HEP [Member]
|
Sep. 30, 2012
HEP [Member]
Parent [Member]
|
Sep. 30, 2011
HEP [Member]
Parent [Member]
|
Sep. 30, 2012
HEP [Member]
Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2011
HEP [Member]
Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2012
HEP [Member]
Non Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2011
HEP [Member]
Non Guarantor Restricted Subsidiaries [Member]
|
Sep. 30, 2012
HEP [Member]
Holly Frontier Corp. Before Consolidation Of HEP [Member]
|
Sep. 30, 2011
HEP [Member]
Holly Frontier Corp. Before Consolidation Of HEP [Member]
|
Sep. 30, 2012
HEP [Member]
Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) [Member]
|
Sep. 30, 2011
HEP [Member]
Non-Guarantor Non-Restricted Subsidiaries (HEP Segment) [Member]
|
Sep. 30, 2012
HEP [Member]
Eliminations [Member]
|
Sep. 30, 2011
HEP [Member]
Eliminations [Member]
|
|
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||
Cash flows from operating activities | $ 1,171,788 | $ 1,089,203 | $ 1,260,731 | $ 1,690,926 | $ (142,743) | $ (664,988) | $ 0 | $ 0 | $ 1,117,988 | $ 1,025,938 | $ 100,652 | $ 93,299 | $ (46,852) | $ (30,034) | ||||||||||||||
Additions to properties, plants and equipment | (178,235) | (98,428) | (4,993) | (6,056) | (173,242) | (92,372) | 0 | 0 | (178,235) | (98,428) | 0 | 0 | 0 | 0 | (29,302) | (175,795) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (29,302) | (175,795) | 0 | 0 |
Investment in Sabine Biofuels | (2,000) | (9,125) | 0 | (9,125) | (2,000) | 0 | 0 | 0 | (2,000) | (9,125) | 0 | 0 | 0 | 0 | ||||||||||||||
Cash Acquired from Acquisition | 0 | 872,158 | 182 | 871,976 | 0 | 872,158 | 0 | 0 | ||||||||||||||||||||
Purchases of marketable securities | (236,315) | (370,042) | (236,315) | (370,042) | 0 | 0 | 0 | 0 | (236,315) | (370,042) | 0 | 0 | 0 | 0 | ||||||||||||||
Sales and maturities of marketable securities | 212,216 | 194,386 | 211,286 | 194,386 | 930 | 0 | 0 | 0 | 212,216 | 194,386 | 0 | 0 | 0 | 0 | ||||||||||||||
Net cash used for investing activities | (233,636) | 413,154 | (30,022) | (190,655) | (174,312) | 779,604 | 0 | 0 | (204,334) | 588,949 | (29,302) | (175,795) | 0 | 0 | ||||||||||||||
Net borrowings under credit agreement – HEP | 43,000 | 0 | 0 | 0 | 0 | 43,000 | 0 | |||||||||||||||||||||
Net repayments under credit agreement – HEP | 231,000 | 0 | 0 | 0 | 0 | 231,000 | 0 | |||||||||||||||||||||
Repayment of promissory notes | 0 | 0 | 72,900 | 0 | 72,900 | (72,900) | 0 | |||||||||||||||||||||
Net proceeds from issuance of senior notes - HEP | 294,750 | 0 | 0 | 0 | 0 | 0 | 294,750 | 0 | ||||||||||||||||||||
Principal tender on senior notes - HEP | (205,000) | (205,000) | 0 | 0 | (205,000) | 0 | 0 | (185,000) | (15) | 0 | (15) | 0 | 0 | 0 | 0 | 0 | (15) | (185,000) | 0 | 0 | 0 | |||||||
Contribution to HEP | 0 | 0 | (96,000) | 0 | (96,000) | 96,000 | 0 | |||||||||||||||||||||
Purchase of treasury stock | (190,307) | (38,955) | (190,307) | (38,955) | 0 | 0 | 0 | 0 | (190,307) | (38,955) | 0 | 0 | 0 | 0 | ||||||||||||||
Structured stock repurchase arrangement | 8,620 | 0 | 8,620 | 0 | 0 | 8,620 | 0 | 0 | ||||||||||||||||||||
Contribution from joint venture partner | 6,000 | 27,500 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,000 | 27,500 | 0 | 0 | ||||||||||||||
Contribution from General Partner | 0 | 0 | (10,286) | 0 | (10,286) | 10,286 | 0 | |||||||||||||||||||||
Distribution from HEP upon UNEV Transaction | 0 | 0 | 260,922 | 0 | 260,922 | (260,922) | 0 | |||||||||||||||||||||
Dividends | (382,610) | (129,377) | (382,610) | (129,377) | 0 | 0 | 0 | 0 | (382,610) | (129,377) | 0 | 0 | 0 | 0 | ||||||||||||||
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (43,749) | (37,929) | (91,063) | (67,963) | 47,314 | 30,034 | ||||||||||||||
Excess tax benefit from equity based compensation | 16,021 | 1,399 | 16,021 | 1,399 | 0 | 0 | 0 | 0 | 16,021 | 1,399 | 0 | 0 | 0 | 0 | ||||||||||||||
Purchase of units for restricted grants - HEP | (4,919) | (1,641) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4,919) | (1,641) | 0 | 0 | ||||||||||||||
Deferred financing costs | (3,289) | (11,724) | 0 | (8,574) | (67) | 0 | 0 | 0 | (67) | (8,574) | (3,222) | (3,150) | 0 | 0 | ||||||||||||||
Other | (1,165) | (857) | 0 | 0 | (967) | (857) | 0 | 0 | (967) | (857) | 264 | 0 | (462) | 0 | ||||||||||||||
Net cash provided by (used for) financing activities | (459,648) | (148,599) | (753,276) | (175,522) | 322,502 | (96,857) | 0 | 0 | (430,774) | (272,379) | (75,726) | 93,746 | 46,852 | 30,034 | ||||||||||||||
Increase (decrease) for the period | 478,504 | 1,353,758 | 477,433 | 1,324,749 | 5,447 | 17,759 | 0 | 0 | 482,880 | 1,342,508 | (4,376) | 11,250 | 0 | 0 | ||||||||||||||
Beginning of period | 1,578,904 | 229,101 | 1,575,891 | 230,082 | (3,358) | (9,035) | 2 | 2 | 1,572,535 | 221,049 | 6,369 | 8,052 | 0 | 0 | 6,369 | |||||||||||||
End of period | $ 2,057,408 | $ 1,582,859 | $ 2,053,324 | $ 1,554,831 | $ 2,089 | $ 8,724 | $ 2 | $ 2 | $ 2,055,415 | $ 1,563,557 | $ 1,993 | $ 19,302 | $ 0 | $ 0 | $ 1,993 |
Retirement Plan (Net Periodic Pension Expense) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Jun. 30, 2012
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Defined Benefit Retirement Plan [Member]
|
|||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost - benefit earned during the period | $ 0 | $ 1,268 | $ 679 | $ 3,803 | |
Interest cost on projected benefit obligations | 955 | 1,281 | 3,007 | 3,844 | |
Expected return on plan assets | (950) | (1,244) | (2,849) | (3,923) | |
Amortization of prior service cost | 0 | 97 | 67 | 293 | |
Amortization of net loss | 415 | 529 | 1,518 | 1,594 | |
Estimated effect of curtailment | 0 | 798 | 7,100 | 899 | 798 |
Net periodic pension expense | 420 | 2,729 | 3,321 | 6,409 | |
Other Post-Retirement Healthcare and Other Benefits Plan [Member]
|
|||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost - benefit earned during the period | 475 | 1,425 | |||
Interest cost on projected benefit obligations | 875 | 2,625 | |||
Amortization of prior service cost | (550) | (1,650) | |||
Amortization of net loss | 75 | 225 | |||
Net periodic pension expense | $ 875 | $ 2,625 |
Supplemental Guarantor/Non-Guarantor Financial Information
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Supplemental Guarantor / Non-Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor/Non-Guarantor Financial Information | Supplemental Guarantor/Non-Guarantor Financial Information Our obligations under the HollyFrontier Senior Notes have been jointly and severally guaranteed by the substantial majority of our existing and future restricted subsidiaries (“Guarantor Restricted Subsidiaries”). These guarantees are full and unconditional. HEP, in which we have a 44% ownership interest at September 30, 2012, and its subsidiaries (collectively, “Non-Guarantor Non-Restricted Subsidiaries”), and certain of our other subsidiaries (“Non-Guarantor Restricted Subsidiaries”) have not guaranteed these obligations. The following condensed consolidating financial information is provided for HollyFrontier Corporation (the “Parent”), the Guarantor Restricted Subsidiaries, the Non-Guarantor Restricted Subsidiaries and the Non-Guarantor Non-Restricted Subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Restricted Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Restricted Subsidiaries and Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. The Guarantor Restricted Subsidiaries and the Non-Guarantor Restricted Subsidiaries are collectively the “Restricted Subsidiaries.” HEP acquired our 75% interest in UNEV in July 2012. As a result, we have recast our HEP segment information to include the UNEV Pipeline operations as a consolidated subsidiary of HEP for all periods presented. The UNEV Pipeline was previously presented as a Non-Guarantor Restricted Subsidiary.
|
Equity (Tables)
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes To Equity | Changes to equity during the nine months ended September 30, 2012 are presented below:
|
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) (Performance Share Units [Member])
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Performance Share Units [Member]
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation arrangement by share based payment award, euity instruments othe than options, vested in period, percentage payout | 191.00% |
Outstanding at January 1, 2012 (non-vested), Grants | 774,788 |
Granted, Grants | 298,559 |
Vesting and transfer of ownership to recipients, Grants | (240,019) |
Forfeited in Period | (5,057) |
Outstanding at September 30, 2012 (non-vested), Grants | 828,271 |
Equity (Changes To Equity) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
Holly Corporation Stockholders' Equity [Member]
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Jun. 30, 2012
Holly Corporation Stockholders' Equity [Member]
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Sep. 30, 2012
Holly Corporation Stockholders' Equity [Member]
|
Sep. 30, 2012
Noncontrolling Interest [Member]
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Sep. 30, 2012
Total Equity [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Balance at December 31, 2011 | $ 5,204,010 | $ 5,204,010 | $ 631,890 | $ 5,835,900 | ||||||||||
Net income | 610,650 | 531,011 | 1,360,040 | 823,855 | 1,335,568 | 24,472 | ||||||||
Other comprehensive income (loss) | (67,967) | 14,106 | (139,865) | 15,283 | (140,394) | 529 | (139,865) | |||||||
Dividends | (494,107) | 0 | (494,107) | |||||||||||
Distributions to noncontrolling interest holders | 0 | (43,749) | (43,749) | |||||||||||
Allocated equity on HEP unit issuances | 11,469 | (18,763) | (7,294) | |||||||||||
Contribution from joint venture partner | 0 | 3,000 | 3,000 | |||||||||||
Equity-based compensation | 23,166 | 2,233 | 25,399 | |||||||||||
Excess tax benefit attributable to equity-based compensation | 16,020 | 0 | 16,020 | |||||||||||
Purchase of treasury stock (1) | 200,076 | [1] | 0 | [1] | 200,076 | [1] | ||||||||
Net proceeds received under structured share repurchase arrangement | 8,620 | 0 | 8,600 | 100,000 | 8,620 | 0 | 8,620 | |||||||
Purchase of HEP units for restricted grants | 0 | (4,392) | (4,392) | |||||||||||
Balance at June 30, 2012 | $ 5,764,276 | $ 5,764,276 | $ 595,220 | $ 6,359,496 | ||||||||||
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Holly-Frontier Merger
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Business Combination, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Holly-Frontier Merger | Holly-Frontier Merger On February 21, 2011, we entered into a merger agreement providing for a “merger of equals” business combination between us and Frontier. The legacy Frontier business operations consist of crude oil refining and the wholesale marketing of refined petroleum products produced at the El Dorado and Cheyenne Refineries and serve markets in the Rocky Mountain and Plains States regions of the United States. On July 1, 2011, North Acquisition, Inc., a direct wholly-owned subsidiary of Holly, merged with and into Frontier, with Frontier surviving as a wholly-owned subsidiary of Holly. Subsequent to the merger and following approval by the post-closing board of directors of HollyFrontier, Frontier merged with and into HollyFrontier, with HollyFrontier continuing as the surviving corporation. In accordance with the merger agreement, we issued approximately 102.8 million shares of HollyFrontier common stock in exchange for outstanding shares of Frontier common stock to former Frontier stockholders. Each outstanding share of Frontier common stock was converted into 0.4811 shares of HollyFrontier common stock with any fractional shares paid in cash. The aggregate consideration paid in connection with the merger was approximately $3.7 billion. This is based on our July 1, 2011 market closing price of $35.93 and includes a portion of the fair value of the outstanding equity-based awards assumed from Frontier that relates to pre-merger services. Our consolidated financial and operating results reflect the operations of the merged Frontier businesses beginning July 1, 2011. Assuming the merger had been consummated on January 1, 2011, pro forma revenues, net income and basic and diluted earnings per share are as follows:
Adjustments made to derive pro forma net income primarily relate to depreciation and amortization expense to reflect our new basis in the legacy Frontier refining facilities. |