

Condensed Consolidating Balance Sheet
December 31, 2015	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	51,520	$	15,013	$	—		$	66,533
Marketable securities	144,019		—		—			144,019
Accounts receivable, net	355,020		41,075		(44,117		)	351,978
Inventories	839,897		1,972		—			841,869
Prepayments and other	48,288		3,082		(7,704		)	43,666
Total current assets	1,438,744		61,142		(51,821		)	1,448,065

Properties, plants and equipment, net	3,270,804		1,090,373		(245,515		)	4,115,662
Intangibles and other assets	2,410,879		417,574		(3,881		)	2,824,572
Total assets	$	7,120,427	$	1,569,089	$	(301,217	)	$	8,388,299

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	738,024	$	22,583	$	(44,117	)	$	716,490
Income tax payable	8,142		—		—			8,142
Accrued liabilities	117,346		26,341		(7,704		)	135,983
Total current liabilities	863,512		48,924		(51,821		)	860,615

Long-term debt	31,288		1,008,752		—			1,040,040
Liability to HEP	220,998		—		(220,998		)	—
Deferred income tax liabilities	497,475		431		—			497,906
Other long-term liabilities	125,684		59,306		(5,025		)	179,965

Investment in HEP	129,961		—		(129,961		)	—
Equity – HollyFrontier	5,251,509		357,247		(355,341		)	5,253,415
Equity – noncontrolling interest	—		94,429		461,929			556,358
Total liabilities and equity	$	7,120,427	$	1,569,089	$	(301,217	)	$	8,388,299



Condensed Consolidating Balance Sheet
December 31, 2014	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	565,155	$	2,830	$	—		$	567,985
Marketable securities	474,110		—		—			474,110
Accounts receivable, net	588,407		40,129		(38,631		)	589,905
Inventories	1,033,191		1,940		—			1,035,131
Income tax receivable	11,719		—		—			11,719
Prepayments and other	109,928		2,443		(8,223		)	104,148
Total current assets	2,782,510		47,342		(46,854		)	2,782,998

Properties, plants and equipment, net	2,867,941		1,062,430		(259,832		)	3,670,539
Intangibles and other assets	2,418,926		362,326		(4,742		)	2,776,510
Total assets	$	8,069,377	$	1,472,098	$	(311,428	)	$	9,230,047

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,125,146	$	21,623	$	(38,631	)	$	1,108,138
Income tax payable	19,642		—		—			19,642
Accrued liabilities	88,116		26,321		(8,223		)	106,214
Total current liabilities	1,232,904		47,944		(46,854		)	1,233,994

Long-term debt	187,311		866,986		—			1,054,297
Liability to HEP	233,217		—		(233,217		)	—
Deferred income tax liabilities	663,912		367		—			664,279
Other long-term liabilities	135,474		47,170		(5,886		)	176,758

Investment in HEP	99,618		—		(99,618		)	—
Equity – HollyFrontier	5,516,941		414,549		(407,906		)	5,523,584
Equity – noncontrolling interest	—		95,082		482,053			577,135
Total liabilities and equity	$	8,069,377	$	1,472,098	$	(311,428	)	$	9,230,047



Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2015	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	13,171,846		$	358,875		$	(292,801	)	$	13,237,920
Operating costs and expenses:
Cost of products sold	10,525,610			—			(286,392		)	10,239,218
Lower of cost or market valuation inventory adjustment	226,979			—			—			226,979
Operating expenses	960,352			103,305			(3,284		)	1,060,373
General and administrative	108,290			12,556			—			120,846
Depreciation and amortization	299,233			61,236			(14,318		)	346,151
Total operating costs and expenses	12,120,464			177,097			(303,994		)	11,993,567
Income from operations	1,051,382			181,778			11,193			1,244,353
Other income (expense):
Earnings (loss) of equity method investments	78,969			4,803			(87,510		)	(3,738		)
Interest income (expense)	6,098			(36,892		)	(9,285		)	(40,079		)
Loss on early extinguishment of debt	(1,370		)	—			—			(1,370		)
Gain on sale of assets and other	8,916			486			—			9,402
	92,613			(31,603		)	(96,795		)	(35,785		)
Income before income taxes	1,143,995			150,175			(85,602		)	1,208,568
Income tax provision	405,832			228			—			406,060
Net income	738,163			149,947			(85,602		)	802,508
Less net income attributable to noncontrolling interest	(30		)	3,971			58,466			62,407
Net income attributable to HollyFrontier stockholders	$	738,193		$	145,976		$	(144,068	)	$	740,101
Comprehensive income attributable to HollyFrontier stockholders	$	706,144		$	138,920		$	(137,012	)	$	708,052



Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2014	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	19,708,328		$	332,626		$	(276,627	)	$	19,764,327
Operating costs and expenses:
Cost of products sold	17,500,601			—			(272,216		)	17,228,385
Lower of cost or market inventory valuation adjustment	397,478			—			—			397,478
Operating expenses	1,041,571			104,801			(1,432		)	1,144,940
General and administrative	103,785			10,824			—			114,609
Depreciation and amortization	317,149			60,548			(14,316		)	363,381
Total operating costs and expenses	19,360,584			176,173			(287,964		)	19,248,793
Income from operations	347,744			156,453			11,337			515,534
Other income (expense):
Earnings (loss) of equity method investments	65,375			2,987			(70,369		)	(2,007		)
Interest income (expense)	6,221			(36,098		)	(9,339		)	(39,216		)
Loss on early extinguishment of debt	—			(7,677		)	—			(7,677		)
Gain on sale of assets and other	866			—			—			866
	72,462			(40,788		)	(79,708		)	(48,034		)
Income before income taxes	420,206			115,665			(68,371		)	467,500
Income tax provision	140,937			235			—			141,172
Net income	279,269			115,430			(68,371		)	326,328
Less net income attributable to noncontrolling interest	(25		)	8,288			36,773			45,036
Net income attributable to HollyFrontier stockholders	$	279,294		$	107,142		$	(105,144	)	$	281,292
Comprehensive income attributable to HollyFrontier stockholders	$	306,366		$	107,181		$	(105,183	)	$	308,364



Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2013	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	20,106,757		$	307,053		$	(253,250	)	$	20,160,560
Operating costs and expenses:
Cost of products sold	17,641,119			—			(248,892		)	17,392,227
Operating expenses	995,194			97,081			(1,425		)	1,090,850
General and administrative	116,214			11,749			—			127,963
Depreciation and amortization	253,062			64,701			(14,317		)	303,446
Total operating costs and expenses	19,005,589			173,531			(264,634		)	18,914,486
Income from operations	1,101,168			133,522			11,384			1,246,074
Other income (expense):
Earnings (loss) of equity method investments	52,288			2,826			(57,186		)	(2,072		)
Interest expense	(6,338		)	(46,849		)	(9,307		)	(62,494		)
Loss on early extinguishment of debt	(22,109		)	—			—			(22,109		)
	23,841			(44,023		)	(66,493		)	(86,675		)
Income before income taxes	1,125,009			89,499			(55,109		)	1,159,399
Income tax provision	391,243			333			—			391,576
Net income	733,766			89,166			(55,109		)	767,823
Less net income attributable to noncontrolling interest	—			6,632			25,349			31,981
Net income attributable to HollyFrontier stockholders	$	733,766		$	82,534		$	(80,458	)	$	735,842
Comprehensive income attributable to HollyFrontier stockholders	$	743,013		$	84,354		$	(82,278	)	$	745,089



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2015		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities		$	836,858		$	233,188		$	(90,420	)	$	979,626

Cash flow from investing activities
Additions to properties, plants and equipment		(581,639		)	—			—			(581,639		)
Additions to properties, plants and equipment – HEP		—			(94,516		)	—			(94,516		)
Purchase of equity method investment		—			(55,032		)	—			(55,032		)
Proceeds from sale of assets		17,985			1,279			—			19,264
Purchases of marketable securities		(509,338		)	—			—			(509,338		)
Sales and maturities of marketable securities		839,513			—			—			839,513
		(233,479		)	(148,269		)	—			(381,748		)
Cash flows from financing activities
Net borrowings under credit agreement – HEP		—			141,000			—			141,000
Redemption of senior notes - HFC		(155,156		)	—			—			(155,156		)
Purchase of treasury stock		(742,823		)	—			—			(742,823		)
Dividends		(246,908		)	—			—			(246,908		)
Distributions to noncontrolling interest		—			(173,688		)	90,420			(83,268		)
Distribution from HEP		62,000			(62,000		)	—			—
Contribution from general partner		(27,623		)	27,623			—			—
Other, net		(6,504		)	(5,671		)	—			(12,175		)
		(1,117,014		)	(72,736		)	90,420			(1,099,330		)
Cash and cash equivalents
Increase (decrease) for the period		(513,635		)	12,183			—			(501,452		)
Beginning of period		565,155			2,830			—			567,985
End of period		$	51,520		$	15,013		$	—		$	66,533



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2014	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	652,186		$	186,903		$	(80,493	)	$	758,596

Cash flows from investing activities:
Additions to properties, plants and equipment	(455,128		)	—			—			(455,128		)
Additions to properties, plants and equipment – HEP	—			(109,693		)	—			(109,693		)
Proceeds from sale of assets	16,633			—			—			16,633
Purchases of marketable securities	(1,025,602		)	—			—			(1,025,602		)
Sales and maturities of marketable securities	1,276,447			—			—			1,276,447
Other, net	5,021			—			—			5,021
	(182,629		)	(109,693		)	—			(292,322		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			208,000			—			208,000
Redemption of senior notes - HEP	—			(156,188		)	—			(156,188		)
Purchase of treasury stock	(158,847		)	—			—			(158,847		)
Dividends	(647,197		)	—			—			(647,197		)
Distributions to noncontrolling interest	—			(158,695		)	80,493			(78,202		)
Contribution from general partner	(29,734		)	29,734			—			—
Excess tax benefit from equity-based compensation	2,040			—			—			2,040
Other, net	(4,415		)	(3,583		)	—			(7,998		)
	(838,153		)	(80,732		)	80,493			(838,392		)
Cash and cash equivalents
Increase (decrease) for the period:	(368,596		)	(3,522		)	—			(372,118		)
Beginning of period	933,751			6,352			—			940,103
End of period	$	565,155		$	2,830		$	—		$	567,985



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2013	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	757,204		$	183,380		$	(71,410	)	$	869,174

Cash flows from investing activities:
Additions to properties, plants and equipment	(368,514		)	—			—			(368,514		)
Additions to properties, plants and equipment – HEP	—			(56,613		)	—			(56,613		)
Proceeds from sale of assets	5,071			2,731			—			7,802
Acquisition of trucking operations	(11,301		)	—			—			(11,301		)
Purchases of marketable securities	(935,512		)	—			—			(935,512		)
Sales and maturities of marketable securities	846,143			—			—			846,143
Other, net	(8,740		)	—			—			(8,740		)
	(472,853		)	(53,882		)	—			(526,735		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			(58,000		)	—			(58,000		)
Redemptions of senior notes	(300,973		)	—			—			(300,973		)
Proceeds from sale of HEP common units	73,444			—			—			73,444
Proceeds from common unit offerings – HEP	—			73,444			—			73,444
Purchase of treasury stock	(225,023		)	—			—			(225,023		)
Contribution from general partner	(6,011		)	6,011			—			—
Dividends	(645,920		)	—			—			(645,920		)
Distributions to noncontrolling interest	—			(142,611		)	71,410			(71,201		)
Excess tax benefit from equity-based compensation	2,562			—			—			2,562
Other, net	(1,141		)	(7,227		)	—			(8,368		)
	(1,103,062		)	(128,383		)	71,410			(1,160,035		)
Cash and cash equivalents
Increase (decrease) for the period:	(818,711		)	1,115			—			(817,596		)
Beginning of period	1,752,462			5,237			—			1,757,699
End of period	$	933,751		$	6,352		$	—		$	940,103