Delaware (State or other jurisdiction of incorporation) | 001-03876 (Commission File Number) | 75-1056913 (I.R.S. Employer Identification Number) |
2828 N. Harwood, Suite 1300 Dallas, TX (Address of principal executive offices) | 75201 (Zip code) |
99.1 | — Press Release of the Company issued November 1, 2017.* |
99.1 |
Press Release November 1, 2017 |
Three Months Ended September 30, | Change from 2016 | |||||||||||||
2017 | 2016 | Change | Percent | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Sales and other revenues | $ | 3,719,247 | $ | 2,847,270 | $ | 871,977 | 31 | % | ||||||
Operating costs and expenses: | ||||||||||||||
Cost of products sold: | ||||||||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 2,888,530 | 2,341,837 | 546,693 | 23 | ||||||||||
Lower of cost or market inventory valuation adjustment | (111,128 | ) | 312 | (111,440 | ) | (35,718 | ) | |||||||
2,777,402 | 2,342,149 | 435,253 | 19 | |||||||||||
Operating expenses | 321,668 | 256,232 | 65,436 | 26 | ||||||||||
Selling, general and administrative expenses | 68,013 | 32,994 | 35,019 | 106 | ||||||||||
Depreciation and amortization | 102,884 | 91,130 | 11,754 | 13 | ||||||||||
Total operating costs and expenses | 3,269,967 | 2,722,505 | 547,462 | 20 | ||||||||||
Income from operations | 449,280 | 124,765 | 324,515 | 260 | ||||||||||
Other income (expense): | ||||||||||||||
Earnings of equity method investments | 5,072 | 3,767 | 1,305 | 35 | ||||||||||
Interest income | 1,074 | 778 | 296 | 38 | ||||||||||
Interest expense | (28,731 | ) | (19,550 | ) | (9,181 | ) | 47 | |||||||
Gain on foreign currency transactions | 19,122 | — | 19,122 | — | ||||||||||
Other, net | 286 | 107 | 179 | 167 | ||||||||||
(3,177 | ) | (14,898 | ) | 11,721 | (79 | ) | ||||||||
Income before income taxes | 446,103 | 109,867 | 336,236 | 306 | ||||||||||
Income tax expense | 158,386 | 22,196 | 136,190 | 614 | ||||||||||
Net income | 287,717 | 87,671 | 200,046 | 228 | ||||||||||
Less net income attributable to noncontrolling interest | 15,703 | 13,174 | 2,529 | 19 | ||||||||||
Net income attributable to HollyFrontier stockholders | $ | 272,014 | $ | 74,497 | $ | 197,517 | 265 | % | ||||||
Earnings per share attributable to HollyFrontier stockholders: | ||||||||||||||
Basic | $ | 1.53 | $ | 0.42 | $ | 1.11 | 264 | % | ||||||
Diluted | $ | 1.53 | $ | 0.42 | $ | 1.11 | 264 | % | ||||||
Cash dividends declared per common share | $ | 0.33 | $ | 0.33 | $ | — | — | % | ||||||
Average number of common shares outstanding: | ||||||||||||||
Basic | 176,149 | 175,871 | 278 | — | % | |||||||||
Diluted | 176,530 | 175,993 | 537 | — | % | |||||||||
EBITDA | $ | 560,941 | $ | 206,595 | $ | 354,346 | 172 | % | ||||||
Adjusted EBITDA | $ | 454,029 | $ | 206,907 | $ | 247,122 | 119 | % |
Nine Months Ended September 30, | Change from 2016 | |||||||||||||
2017 | 2016 | Change | Percent | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Sales and other revenues | $ | 10,258,594 | $ | 7,580,632 | $ | 2,677,962 | 35 | % | ||||||
Operating costs and expenses: | ||||||||||||||
Cost of products sold: | ||||||||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 8,283,127 | 6,215,155 | 2,067,972 | 33 | ||||||||||
Lower of cost or market inventory valuation adjustment | (15,323 | ) | (194,282 | ) | 178,959 | (92 | ) | |||||||
8,267,804 | 6,020,873 | 2,246,931 | 37 | |||||||||||
Operating expenses | 944,437 | 760,151 | 184,286 | 24 | ||||||||||
Selling, general and administrative expenses | 184,659 | 88,270 | 96,389 | 109 | ||||||||||
Depreciation and amortization | 304,206 | 269,433 | 34,773 | 13 | ||||||||||
Goodwill and asset impairment | 19,247 | 654,084 | (634,837 | ) | (97 | ) | ||||||||
Total operating costs and expenses | 9,720,353 | 7,792,811 | 1,927,542 | 25 | ||||||||||
Income (loss) from operations | 538,241 | (212,179 | ) | 750,420 | (354 | ) | ||||||||
Other income (expense): | ||||||||||||||
Earnings of equity method investments | 10,965 | 10,155 | 810 | 8 | ||||||||||
Interest income | 2,069 | 1,380 | 689 | 50 | ||||||||||
Interest expense | (85,534 | ) | (45,888 | ) | (39,646 | ) | 86 | |||||||
Loss on early extinguishment of debt | (12,225 | ) | (8,718 | ) | (3,507 | ) | 40 | |||||||
Gain on foreign currency swaps | 24,545 | — | 24,545 | — | ||||||||||
Loss on foreign currency transactions | 19,517 | — | 19,517 | — | ||||||||||
Other, net | 23 | 300 | (277 | ) | (92 | ) | ||||||||
(40,640 | ) | (42,771 | ) | 2,131 | (5 | ) | ||||||||
Income (loss) before income taxes | 497,601 | (254,950 | ) | 752,551 | (295 | ) | ||||||||
Income tax expense | 173,593 | 6,459 | 167,134 | 2,588 | ||||||||||
Net income (loss) | 324,008 | (261,409 | ) | 585,417 | (224 | ) | ||||||||
Less net income attributable to noncontrolling interest | 39,695 | 52,209 | (12,514 | ) | (24 | ) | ||||||||
Net income (loss) attributable to HollyFrontier stockholders | $ | 284,313 | $ | (313,618 | ) | $ | 597,931 | (191 | )% | |||||
Earnings (loss) per share attributable to HollyFrontier stockholders: | ||||||||||||||
Basic | $ | 1.60 | $ | (1.78 | ) | $ | 3.38 | (190 | )% | |||||
Diluted | $ | 1.60 | $ | (1.78 | ) | $ | 3.38 | (190 | )% | |||||
Cash dividends declared per common share | $ | 0.99 | $ | 0.99 | $ | — | — | % | ||||||
Average number of common shares outstanding: | ||||||||||||||
Basic | 176,143 | 176,157 | (14 | ) | — | % | ||||||||
Diluted | 176,616 | 176,157 | 459 | — | % | |||||||||
EBITDA | $ | 857,802 | $ | 15,500 | $ | 842,302 | 5,434 | % | ||||||
Adjusted EBITDA | $ | 845,558 | $ | 475,302 | $ | 370,256 | 78 | % |
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash, cash equivalents and total investments in marketable securities | $ | 630,742 | $ | 1,134,727 | |||
Working capital | $ | 1,396,046 | $ | 1,767,780 | |||
Total assets | $ | 10,148,355 | $ | 9,435,661 | |||
Long-term debt | $ | 2,236,514 | $ | 2,235,137 | |||
Total equity | $ | 5,465,777 | $ | 5,301,985 |
Refining | PCLI | HEP | Corporate and Other | Consolidations and Eliminations | Consolidated Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||
Sales and other revenues | $ | 3,409,795 | $ | 298,137 | $ | 110,364 | $ | (325 | ) | $ | (98,724 | ) | $ | 3,719,247 | |||||||||
Operating expenses | $ | 249,478 | $ | 56,111 | $ | 35,998 | $ | 817 | $ | (20,736 | ) | $ | 321,668 | ||||||||||
Depreciation and amortization | $ | 74,312 | $ | 7,492 | $ | 18,601 | $ | 2,686 | $ | (207 | ) | $ | 102,884 | ||||||||||
Income (loss) from operations | $ | 408,739 | $ | 28,511 | $ | 52,142 | $ | (39,549 | ) | $ | (563 | ) | $ | 449,280 | |||||||||
Net income (loss) | $ | 408,739 | $ | 22,553 | $ | 43,467 | $ | (186,982 | ) | $ | (60 | ) | $ | 287,717 | |||||||||
Capital expenditures | $ | 31,152 | $ | 9,643 | $ | 10,151 | $ | 5,121 | $ | — | $ | 56,067 | |||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Sales and other revenues | $ | 2,832,195 | $ | — | $ | 92,611 | $ | 11 | $ | (77,547 | ) | $ | 2,847,270 | ||||||||||
Operating expenses | $ | 227,079 | $ | — | $ | 32,099 | $ | 1,390 | $ | (4,336 | ) | $ | 256,232 | ||||||||||
Depreciation and amortization | $ | 69,565 | $ | — | $ | 18,515 | $ | 3,257 | $ | (207 | ) | $ | 91,130 | ||||||||||
Income (loss) from operations | $ | 120,985 | $ | — | $ | 39,332 | $ | (34,965 | ) | $ | (587 | ) | $ | 124,765 | |||||||||
Net income (loss) | $ | 120,985 | $ | — | $ | 28,809 | $ | (62,096 | ) | $ | (27 | ) | $ | 87,671 | |||||||||
Capital expenditures | $ | 74,173 | $ | — | $ | 20,730 | $ | 2,529 | $ | — | $ | 97,432 | |||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||
Sales and other revenues | $ | 9,413,008 | $ | 809,643 | $ | 325,141 | $ | (283 | ) | $ | (288,915 | ) | $ | 10,258,594 | |||||||||
Operating expenses | $ | 751,858 | $ | 144,792 | $ | 102,584 | $ | 3,152 | $ | (57,949 | ) | $ | 944,437 | ||||||||||
Depreciation and amortization | $ | 219,636 | $ | 19,868 | $ | 56,515 | $ | 8,808 | $ | (621 | ) | $ | 304,206 | ||||||||||
Income (loss) from operations | $ | 445,087 | $ | 58,416 | $ | 157,170 | $ | (120,730 | ) | $ | (1,702 | ) | $ | 538,241 | |||||||||
Net income (loss) | $ | 445,087 | $ | 43,609 | $ | 115,010 | $ | (279,543 | ) | $ | (155 | ) | $ | 324,008 | |||||||||
Capital expenditures | $ | 131,016 | $ | 19,995 | $ | 30,675 | $ | 11,431 | $ | — | $ | 193,117 | |||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Sales and other revenues | $ | 7,530,804 | $ | — | $ | 289,517 | $ | 168 | $ | (239,857 | ) | $ | 7,580,632 | ||||||||||
Operating expenses | $ | 680,591 | $ | — | $ | 89,067 | $ | 3,797 | $ | (13,304 | ) | $ | 760,151 | ||||||||||
Depreciation and amortization | $ | 210,466 | $ | — | $ | 49,852 | $ | 9,736 | $ | (621 | ) | $ | 269,433 | ||||||||||
Income (loss) from operations | $ | (259,296 | ) | $ | — | $ | 141,980 | $ | (93,017 | ) | $ | (1,846 | ) | $ | (212,179 | ) | |||||||
Net income (loss) | $ | (259,296 | ) | $ | — | $ | 116,102 | $ | (118,156 | ) | $ | (59 | ) | $ | (261,409 | ) | |||||||
Capital expenditures | $ | 284,755 | $ | — | $ | 96,115 | $ | 6,607 | $ | — | $ | 387,477 | |||||||||||
September 30, 2017 | |||||||||||||||||||||||
Cash, cash equivalents and total investments in marketable securities | $ | 10,713 | $ | 91,485 | $ | 7,476 | $ | 521,068 | $ | — | $ | 630,742 | |||||||||||
Total assets | $ | 6,637,119 | $ | 1,282,396 | $ | 1,903,307 | $ | 610,341 | $ | (284,808 | ) | $ | 10,148,355 | ||||||||||
Long-term debt | $ | — | $ | — | $ | 1,245,066 | $ | 991,448 | $ | — | $ | 2,236,514 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Cash, cash equivalents and total investments in marketable securities | $ | 49 | $ | — | $ | 3,657 | $ | 1,131,021 | $ | — | $ | 1,134,727 | |||||||||||
Total assets | $ | 6,513,806 | $ | — | $ | 1,920,487 | $ | 1,306,169 | $ | (304,801 | ) | $ | 9,435,661 | ||||||||||
Long-term debt | $ | — | $ | — | $ | 1,243,912 | $ | 991,225 | $ | — | $ | 2,235,137 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Mid-Continent Region (El Dorado and Tulsa Refineries) | ||||||||||||||||
Crude charge (BPD) (1) | 262,470 | 271,780 | 258,420 | 258,680 | ||||||||||||
Refinery throughput (BPD) (2) | 275,270 | 289,010 | 274,200 | 277,870 | ||||||||||||
Refinery production (BPD) (3) | 263,760 | 276,720 | 263,520 | 266,510 | ||||||||||||
Sales of produced refined products (BPD) | 252,350 | 262,060 | 254,000 | 253,390 | ||||||||||||
Sales of refined products (BPD) (4) | 270,720 | 292,310 | 278,180 | 280,150 | ||||||||||||
Refinery utilization (5) | 101.0 | % | 104.5 | % | 99.4 | % | 99.5 | % | ||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 69.81 | $ | 61.71 | $ | 67.12 | $ | 56.61 | ||||||||
Cost of products (7) | 56.40 | 52.08 | 57.19 | 48.19 | ||||||||||||
Refinery gross margin (8) | 13.41 | 9.63 | 9.93 | 8.42 | ||||||||||||
Refinery operating expenses (9) | 4.98 | 4.70 | 5.14 | 4.87 | ||||||||||||
Net operating margin (8) | $ | 8.43 | $ | 4.93 | $ | 4.79 | $ | 3.55 | ||||||||
Refinery operating expenses per throughput barrel (10) | $ | 4.57 | $ | 4.26 | $ | 4.76 | $ | 4.44 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 65 | % | 62 | % | 62 | % | 58 | % | ||||||||
Sour crude oil | 14 | % | 15 | % | 17 | % | 17 | % | ||||||||
Heavy sour crude oil | 16 | % | 17 | % | 15 | % | 18 | % | ||||||||
Other feedstocks and blends | 5 | % | 6 | % | 6 | % | 7 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Sales of produced refined products: | ||||||||||||||||
Gasolines | 50 | % | 51 | % | 50 | % | 49 | % | ||||||||
Diesel fuels | 34 | % | 33 | % | 33 | % | 34 | % | ||||||||
Jet fuels | 6 | % | 6 | % | 7 | % | 6 | % | ||||||||
Fuel oil | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||
Asphalt | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Lubricants | 4 | % | 5 | % | 4 | % | 5 | % | ||||||||
LPG and other | 2 | % | 1 | % | 2 | % | 2 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Southwest Region (Navajo Refinery) | ||||||||||||||||
Crude charge (BPD) (1) | 112,060 | 100,180 | 96,350 | 99,990 | ||||||||||||
Refinery throughput (BPD) (2) | 122,890 | 109,350 | 105,190 | 110,020 | ||||||||||||
Refinery production (BPD) (3) | 121,040 | 107,940 | 103,620 | 108,660 | ||||||||||||
Sales of produced refined products (BPD) | 125,770 | 107,010 | 103,680 | 110,240 | ||||||||||||
Sales of refined products (BPD) (4) | 125,790 | 110,270 | 109,070 | 111,850 | ||||||||||||
Refinery utilization (5) | 112.1 | % | 100.2 | % | 96.4 | % | 100.0 | % | ||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 70.21 | $ | 60.24 | $ | 67.99 | $ | 55.81 | ||||||||
Cost of products (7) | 55.38 | 50.74 | 55.94 | 46.64 | ||||||||||||
Refinery gross margin (8) | 14.83 | 9.50 | 12.05 | 9.17 | ||||||||||||
Refinery operating expenses (9) | 4.04 | 4.86 | 5.05 | 4.62 | ||||||||||||
Net operating margin (8) | $ | 10.79 | $ | 4.64 | $ | 7.00 | $ | 4.55 | ||||||||
Refinery operating expenses per throughput barrel (10) | $ | 4.13 | $ | 4.76 | $ | 4.98 | $ | 4.63 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 25 | % | 26 | % | 23 | % | 29 | % | ||||||||
Sour crude oil | 66 | % | 66 | % | 68 | % | 62 | % | ||||||||
Other feedstocks and blends | 9 | % | 8 | % | 9 | % | 9 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Sales of produced refined products: | ||||||||||||||||
Gasolines | 51 | % | 52 | % | 52 | % | 54 | % | ||||||||
Diesel fuels | 42 | % | 42 | % | 41 | % | 41 | % | ||||||||
Fuel oil | 4 | % | 3 | % | 3 | % | 2 | % | ||||||||
Asphalt | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||
LPG and other | 2 | % | 2 | % | 3 | % | 2 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Rocky Mountain Region (Cheyenne and Woods Cross Refineries) | ||||||||||||
Crude charge (BPD) (1) | 80,260 | 71,600 | 76,510 | 62,490 | ||||||||
Refinery throughput (BPD) (2) | 87,620 | 75,470 | 84,050 | 66,490 | ||||||||
Refinery production (BPD) (3) | 84,800 | 72,080 | 81,370 | 63,320 | ||||||||
Sales of produced refined products (BPD) | 77,840 | 68,630 | 78,140 | 63,800 | ||||||||
Sales of refined products (BPD) (4) | 78,230 | 71,450 | 78,570 | 67,800 | ||||||||
Refinery utilization (5) | 82.7 | % | 73.8 | % | 78.9 | % | 71.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Rocky Mountain Region (Cheyenne and Woods Cross Refineries) | ||||||||||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 72.43 | $ | 61.89 | $ | 68.91 | $ | 56.76 | ||||||||
Cost of products (7) | 54.65 | 50.83 | 53.20 | 47.13 | ||||||||||||
Refinery gross margin (8) | 17.78 | 11.06 | 15.71 | 9.63 | ||||||||||||
Refinery operating expenses (9) | 10.50 | 9.48 | 10.30 | 10.14 | ||||||||||||
Net operating margin (8) | $ | 7.28 | $ | 1.58 | $ | 5.41 | $ | (0.51 | ) | |||||||
Refinery operating expenses per throughput barrel (10) | $ | 9.33 | $ | 8.62 | $ | 9.58 | $ | 9.73 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 32 | % | 33 | % | 34 | % | 39 | % | ||||||||
Heavy sour crude oil | 37 | % | 42 | % | 36 | % | 37 | % | ||||||||
Black wax crude oil | 23 | % | 20 | % | 21 | % | 18 | % | ||||||||
Other feedstocks and blends | 8 | % | 5 | % | 9 | % | 6 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Sales of produced refined products: | ||||||||||||||||
Gasolines | 59 | % | 58 | % | 59 | % | 59 | % | ||||||||
Diesel fuels | 33 | % | 34 | % | 33 | % | 34 | % | ||||||||
Fuel oil | 3 | % | 2 | % | 2 | % | 2 | % | ||||||||
Asphalt | 2 | % | 3 | % | 4 | % | 2 | % | ||||||||
LPG and other | 3 | % | 3 | % | 2 | % | 3 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Consolidated | ||||||||||||||||
Crude charge (BPD) (1) | 454,790 | 443,560 | 431,280 | 421,160 | ||||||||||||
Refinery throughput (BPD) (2) | 485,780 | 473,830 | 463,440 | 454,380 | ||||||||||||
Refinery production (BPD) (3) | 469,600 | 456,740 | 448,510 | 438,490 | ||||||||||||
Sales of produced refined products (BPD) | 455,960 | 437,700 | 435,820 | 427,430 | ||||||||||||
Sales of refined products (BPD) (4) | 474,740 | 474,030 | 465,820 | 459,800 | ||||||||||||
Refinery utilization (5) | 99.5 | % | 97.1 | % | 94.4 | % | 94.1 | % | ||||||||
Average per produced barrel (6) | ||||||||||||||||
Net sales | $ | 70.37 | $ | 61.38 | $ | 67.65 | $ | 56.43 | ||||||||
Cost of products (7) | 55.82 | 51.55 | 56.18 | 47.64 | ||||||||||||
Refinery gross margin (8) | 14.55 | 9.83 | 11.47 | 8.79 | ||||||||||||
Refinery operating expenses (9) | 5.67 | 5.49 | 6.04 | 5.59 | ||||||||||||
Net operating margin (8) | $ | 8.88 | $ | 4.34 | $ | 5.43 | $ | 3.20 | ||||||||
Refinery operating expenses per throughput barrel (10) | $ | 5.32 | $ | 5.07 | $ | 5.69 | $ | 5.26 | ||||||||
Feedstocks: | ||||||||||||||||
Sweet crude oil | 49 | % | 49 | % | 48 | % | 48 | % | ||||||||
Sour crude oil | 25 | % | 25 | % | 25 | % | 26 | % | ||||||||
Heavy sour crude oil | 16 | % | 17 | % | 16 | % | 16 | % | ||||||||
Black wax crude oil | 4 | % | 3 | % | 4 | % | 3 | % | ||||||||
Other feedstocks and blends | 6 | % | 6 | % | 7 | % | 7 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Consolidated | ||||||||||||
Sales of produced refined products: | ||||||||||||
Gasolines | 52 | % | 52 | % | 52 | % | 52 | % | ||||
Diesel fuels | 36 | % | 35 | % | 35 | % | 36 | % | ||||
Jet fuels | 4 | % | 4 | % | 4 | % | 4 | % | ||||
Fuel oil | 2 | % | 2 | % | 2 | % | 1 | % | ||||
Asphalt | 2 | % | 2 | % | 2 | % | 2 | % | ||||
Lubricants | 2 | % | 3 | % | 3 | % | 3 | % | ||||
LPG and other | 2 | % | 2 | % | 2 | % | 2 | % | ||||
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). Effective July 1, 2016, our consolidated crude capacity increased from 443,000 BPSD to 457,000 BPSD upon completion of our Woods Cross Refinery expansion project. |
(6) | Represents average per barrel amount for produced refined products sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. |
(7) | Transportation, terminal and refinery storage costs billed from HEP are included in cost of products. |
(8) | Excludes lower of cost or market inventory valuation adjustments of $(111.1) million and $0.3 million for the three months ended September 30, 2017 and 2016, respectively, and $(15.3) million and $(194.3) million for the nine months ended September 30, 2017 and 2016, respectively. |
(9) | Represents operating expenses of our refineries, exclusive of depreciation and amortization. |
(10) | Represents refinery operating expenses, exclusive of depreciation and amortization, divided by refinery throughput. |
Three Months Ended September 30, | Period From February 1, 2017 Through September 30, 2017 | |||||
PCLI | ||||||
Throughput (BPD) (1) | 22,360 | 21,980 | ||||
Production (BPD) (2) | 21,670 | 21,390 | ||||
Sales of produced products (BPD) | 20,600 | 20,660 |
(1) | Throughput represents the barrels per day of feedstocks (principally vacuum gas oil and hydrocracker bottoms) input into our PCLI production facilities. |
(2) | Production represents the barrels per day of products yielded from our PCLI production facilities. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) attributable to HollyFrontier stockholders | $ | 272,014 | $ | 74,497 | $ | 284,313 | $ | (313,618 | ) | |||||||
Add income tax provision | 158,386 | 22,196 | 173,593 | 6,459 | ||||||||||||
Add interest expense (1) | 28,731 | 19,550 | 97,759 | 54,606 | ||||||||||||
Subtract interest income | (1,074 | ) | (778 | ) | (2,069 | ) | (1,380 | ) | ||||||||
Add depreciation and amortization | 102,884 | 91,130 | 304,206 | 269,433 | ||||||||||||
EBITDA | $ | 560,941 | $ | 206,595 | $ | 857,802 | $ | 15,500 | ||||||||
Add (subtract) lower of cost or market inventory valuation adjustment | (111,128 | ) | 312 | (15,323 | ) | (194,282 | ) | |||||||||
Add Incremental cost of products sold attributable to PCLI inventory value step-up | — | — | 15,327 | — | ||||||||||||
Add PCLI acquisition and integration costs | 4,216 | — | 23,506 | — | ||||||||||||
Add goodwill and asset impairment | — | — | 19,247 | 654,084 | ||||||||||||
Subtract RINs cost reduction | — | — | (30,456 | ) | — | |||||||||||
Subtract gain on foreign currency swaps | — | — | (24,545 | ) | — | |||||||||||
Adjusted EBITDA | $ | 454,029 | $ | 206,907 | $ | 845,558 | $ | 475,302 | ||||||||
Adjusted EBITDA attributable to our PCLI segment is calculated as follows: | ||||||||||||||||
PCLI income from operations (see segment data on page 6) | $ | 28,511 | $ | 58,416 | ||||||||||||
Add depreciation and amortization (see segment data on page 6) | 7,492 | 19,868 | ||||||||||||||
PCLI EBITDA | $ | 36,003 | $ | 78,284 | ||||||||||||
Add Incremental cost of products sold attributable to PCLI inventory value step-up | — | 15,327 | ||||||||||||||
Adjusted PCLI EBITDA | $ | 36,003 | $ | 93,611 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Average sales price per produced barrel sold | $ | 70.37 | $ | 61.38 | $ | 67.65 | $ | 56.43 | ||||||||
Times sales of produced refined products (BPD) | 455,960 | 437,700 | 435,820 | 427,430 | ||||||||||||
Times number of days in period | 92 | 92 | 273 | 274 | ||||||||||||
Produced refined product sales | $ | 2,951,903 | $ | 2,471,674 | $ | 8,048,920 | $ | 6,608,846 | ||||||||
Total produced refined product sales | $ | 2,951,903 | $ | 2,471,674 | $ | 8,048,920 | $ | 6,608,846 | ||||||||
Add refined product sales from purchased products and rounding (1) | 125,519 | 207,698 | 558,786 | 500,509 | ||||||||||||
Total refined product sales | 3,077,422 | 2,679,372 | 8,607,706 | 7,109,355 | ||||||||||||
Add direct sales of excess crude oil (2) | 277,810 | 103,145 | 658,117 | 294,845 | ||||||||||||
Add other refining segment revenue (3) | 54,563 | 49,678 | 147,185 | 126,604 | ||||||||||||
Total refining segment revenue | 3,409,795 | 2,832,195 | 9,413,008 | 7,530,804 | ||||||||||||
Add PCLI segment sales and other revenues | 298,137 | — | 809,643 | — | ||||||||||||
Add HEP segment sales and other revenues | 110,364 | 92,611 | 325,141 | 289,517 | ||||||||||||
Add corporate and other revenues | (325 | ) | 11 | (283 | ) | 168 | ||||||||||
Subtract consolidations and eliminations | (98,724 | ) | (77,547 | ) | (288,915 | ) | (239,857 | ) | ||||||||
Sales and other revenues | $ | 3,719,247 | $ | 2,847,270 | $ | 10,258,594 | $ | 7,580,632 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Average cost of products per produced barrel sold | $ | 55.82 | $ | 51.55 | $ | 56.18 | $ | 47.64 | ||||||||
Times sales of produced refined products (BPD) | 455,960 | 437,700 | 435,820 | 427,430 | ||||||||||||
Times number of days in period | 92 | 92 | 273 | 274 | ||||||||||||
Cost of products for produced products sold | $ | 2,341,555 | $ | 2,075,836 | $ | 6,684,232 | $ | 5,579,398 | ||||||||
Total cost of products for produced products sold | $ | 2,341,555 | $ | 2,075,836 | $ | 6,684,232 | $ | 5,579,398 | ||||||||
Add refined product costs from purchased products sold and rounding (1) | 126,739 | 211,309 | 560,313 | 508,127 | ||||||||||||
Total cost of refined products sold | 2,468,294 | 2,287,145 | 7,244,545 | 6,087,525 | ||||||||||||
Add crude oil cost of direct sales of excess crude oil(2) | 282,751 | 104,187 | 664,035 | 297,494 | ||||||||||||
Add other refining segment cost of products sold (4) | 37,349 | 22,922 | 83,923 | 54,222 | ||||||||||||
Total refining segment cost of products sold | 2,788,394 | 2,414,254 | 7,992,503 | 6,439,241 | ||||||||||||
Add PCLI segment cost of products sold | 177,324 | — | 519,187 | — | ||||||||||||
Subtract consolidations and eliminations | (77,188 | ) | (72,417 | ) | (228,563 | ) | (224,086 | ) | ||||||||
Costs of products sold (exclusive of lower of cost or market inventory valuation adjustment and depreciation and amortization) | $ | 2,888,530 | $ | 2,341,837 | $ | 8,283,127 | $ | 6,215,155 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Average refinery operating expenses per produced barrel sold | $ | 5.67 | $ | 5.49 | $ | 6.04 | $ | 5.59 | ||||||||
Times sales of produced refined products (BPD) | 455,960 | 437,700 | 435,820 | 427,430 | ||||||||||||
Times number of days in period | 92 | 92 | 273 | 274 | ||||||||||||
Refinery operating expenses for produced products sold | $ | 237,847 | $ | 221,074 | $ | 718,632 | $ | 654,677 | ||||||||
Total refinery operating expenses for produced products sold | $ | 237,847 | $ | 221,074 | $ | 718,632 | $ | 654,677 | ||||||||
Add other refining segment operating expenses and rounding(5) | 11,631 | 6,005 | 33,226 | 25,914 | ||||||||||||
Total refining segment operating expenses | 249,478 | 227,079 | 751,858 | 680,591 | ||||||||||||
Add PCLI segment operating expenses | 56,111 | — | 144,792 | — | ||||||||||||
Add HEP segment operating expenses | 35,998 | 32,099 | 102,584 | 89,067 | ||||||||||||
Add corporate and other costs | 817 | 1,390 | 3,152 | 3,797 | ||||||||||||
Subtract consolidations and eliminations | (20,736 | ) | (4,336 | ) | (57,949 | ) | (13,304 | ) | ||||||||
Operating expenses (exclusive of depreciation and amortization) | $ | 321,668 | $ | 256,232 | $ | 944,437 | $ | 760,151 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands, except per barrel amounts) | ||||||||||||||||
Consolidated | ||||||||||||||||
Net operating margin per barrel | $ | 8.88 | $ | 4.34 | $ | 5.43 | $ | 3.20 | ||||||||
Add average refinery operating expenses per produced barrel | 5.67 | 5.49 | 6.04 | 5.59 | ||||||||||||
Refinery gross margin per barrel | 14.55 | 9.83 | 11.47 | 8.79 | ||||||||||||
Add average cost of products per produced barrel sold | 55.82 | 51.55 | 56.18 | 47.64 | ||||||||||||
Average sales price per produced barrel sold | $ | 70.37 | $ | 61.38 | $ | 67.65 | $ | 56.43 | ||||||||
Times sales of produced refined products (BPD) | 455,960 | 437,700 | 435,820 | 427,430 | ||||||||||||
Times number of days in period | 92 | 92 | 273 | 274 | ||||||||||||
Produced refined product sales | $ | 2,951,903 | $ | 2,471,674 | $ | 8,048,920 | $ | 6,608,846 | ||||||||
Total produced refined product sales | $ | 2,951,903 | $ | 2,471,674 | $ | 8,048,920 | $ | 6,608,846 | ||||||||
Add refined product sales from purchased products and rounding (1) | 125,519 | 207,698 | 558,786 | 500,509 | ||||||||||||
Total refined product sales | 3,077,422 | 2,679,372 | 8,607,706 | 7,109,355 | ||||||||||||
Add direct sales of excess crude oil (2) | 277,810 | 103,145 | 658,117 | 294,845 | ||||||||||||
Add other refining segment revenue (3) | 54,563 | 49,678 | 147,185 | 126,604 | ||||||||||||
Total refining segment revenue | 3,409,795 | 2,832,195 | 9,413,008 | 7,530,804 | ||||||||||||
Add PCLI segment sales and other revenues | 298,137 | — | 809,643 | — | ||||||||||||
Add HEP segment sales and other revenues | 110,364 | 92,611 | 325,141 | 289,517 | ||||||||||||
Add corporate and other revenues | (325 | ) | 11 | (283 | ) | 168 | ||||||||||
Subtract consolidations and eliminations | (98,724 | ) | (77,547 | ) | (288,915 | ) | (239,857 | ) | ||||||||
Sales and other revenues | $ | 3,719,247 | $ | 2,847,270 | $ | 10,258,594 | $ | 7,580,632 |
(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 cost. |
(3) | Other refining segment revenue includes the incremental revenues associated with HFC Asphalt, product purchased and sold forward for profit as market conditions and available storage capacity allows and miscellaneous revenue. |
(4) | Other refining segment cost of products sold includes the incremental cost of products for HFC Asphalt, the incremental cost associated with storing product purchased and sold forward as market conditions and available storage capacity allows and miscellaneous costs. |
(5) | Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses of HFC Asphalt. |