e8vk

Exhibit 99.1

For Immediate Release

HOLLY CORPORATION REPORTS FOURTH QUARTER AND RECORD FULL YEAR 2007 RESULTS

Dallas, Texas, February 19, 2008 — Holly Corporation (NYSE-HOC) (“Holly” or the “Company”) today reported quarterly net income of $49.8 million ($0.92 per basic and $0.90 per diluted share) for the three months ended December 31, 2007, compared to net income of $47.7 million ($0.86 per basic and $0.84 per diluted share) for the three months ended December 31, 2006. Net income was a record $334.1 million ($6.09 per basic and $5.98 per diluted share) for the year ended December 31, 2007, compared to net income of $266.6 million ($4.68 per basic and $4.58 per diluted share) for the year ended December 31, 2006.

Net income increased by 5% or $2.2 million for the three months ended December 31, 2007, as compared to the three months ended December 31, 2006, principally due to the positive effects of increased sales of sulfur credits, higher sales of produced refined products, lower general and administrative expenses, increased earnings from our equity interest in Holly Energy Partners, L.P., an increase in interest income and a decrease in income taxes. All of these factors were partially offset by lower refinery gross margins and higher operating expenses. Sulfur credit sales totaled $15.1 million for the three months ended December 31, 2007, an increase of $11.1 million over the three months ended December 31, 2006. For the three months ended December 31, 2007, volumes of produced refined products sold increased by 6,910 barrels per day (“BPD”) or 6% as compared to the three months ended December 31, 2006. Overall refinery gross margins were $9.83 per produced barrel for the three months ended December 31, 2007, as compared to $12.08 for the three months ended December 31, 2006. Overall sales and other revenues for the three months ended December 31, 2007 increased 54% or $502.1 million, as compared to the three months ended December 31, 2006. The increase is principally due to higher sales prices in the fourth quarter of 2007 as compared to 2006.

-1-

Net income from continuing operations increased by 35% or $87.2 million for the year ended December 31, 2007, as compared to the year ended December 31, 2006, principally due to an overall increase in refined product margins during the first half of the current year combined with an increase in volumes of produced refined products sold, partially offset by an increase in total operating costs and expenses and an overall decrease in refined product margins during the second half of the year. Overall refinery gross margins were $16.74 per produced barrel for the year ended December 31, 2007, as compared to $15.78 for the year ended December 31, 2006. Overall sales and other revenues for the year ended December 31, 2007 increased 19% or $768.5 million, as compared to the year ended December 31, 2006.

The increase in volume of produced refined products sold for the year ended December 31, 2007, as compared to the same period in 2006, is attributable to increased production levels during the current year. Our production levels were lower for the year ended December 31, 2006 due to planned downtime attributable to our ultra low sulfur diesel (“ULSD”) fuel project at our Navajo Refinery during the second quarter of 2006. Also contributing to our production increase for the year ended December 31, 2007 as compared to 2006 is an increase in production levels at our Navajo Refinery following an 8,000 barrels per stream day (“BPSD”) refinery expansion in mid-year 2006 combined with an additional 2,000 BPSD expansion in mid-year 2007. For the year ended December 31, 2007, our consolidated refinery production levels increased by 7,540 BPD or 7% as compared to 2006.

“We are extremely pleased with our 2007 results. 2007 was our fourth consecutive record year, with net income from continuing operations increasing 35% over our previous 2006 record results. Higher gross margins at our Woods Cross Refinery, record overall refinery production levels and lower per barrel operating expenses resulted in significantly improved financial results,” said Matthew Clifton, Chairman of the Board and Chief Executive Officer of Holly. “During the year, we also made substantial progress on both our Woods Cross and Navajo Refinery expansion and crude flexibility capital projects. These projects, expected to be completed at the end of the third quarter of 2008 and during 2009, respectively, remain on budget. Furthermore, our Salt Lake City to Las Vegas joint venture pipeline, expected to be operational in mid 2009, also remains on budget. Finally, we continued to return cash to our shareholders, spending $211.1 million to purchase approximately 4.0 million shares during 2007.

-2-

For 2007, we generated earnings before interest, taxes and depreciation (“EBITDA”) from continuing operations of $528.9 million as compared to $414.5 million of EBITDA from continuing operations for 2006.”

Commenting on the fourth quarter, Clifton said “our fourth quarter 2007 results reflect the positive effects of increased sulfur credit sales and refinery gross margins at Woods Cross as compared to the same period in 2006. These factors were partially offset by lower refinery gross margins at our Navajo Refinery. Gross margins at the Navajo Refinery were negatively impacted during the fourth quarter of 2007, by lower West Coast gasoline prices which indirectly affect gasoline prices in the Phoenix market, one of Navajo’s primary markets.”

The Company has scheduled a conference call for today, February 19, 2008 at 10:00AM EST to discuss financial results. Listeners may access this call by dialing (888) 548-4639. The ID# for this call is 31093355. Listeners may access the call via the internet at: http://www.videonewswire.com/event.asp?id=45093. Additionally, listeners may replay this call approximately two hours after the call concludes by dialing (800) 642-1687. This audio archive will be available for two weeks.

Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries an 85,000 BPSD refinery located in New Mexico and a 26,000 BPSD refinery in Utah. Holly also owns a 45% interest (including the general partner interest) in Holly Energy Partners, L.P., which through subsidiaries owns or leases approximately 1,700 miles of petroleum product pipelines in Texas, New Mexico and Oklahoma and refined product terminals in several Southwest and Rocky Mountain states.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Although we believe that the expectations

-3-

reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Such differences could be caused by a number of factors including, but not limited to, risks and uncertainties with respect to the actions of actual or potential competitive suppliers of refined petroleum products in the Company’s 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 regulations and policies, the availability and cost of financing to the Company, the effectiveness of the Company’s capital investments and marketing strategies, the ability of the Company to acquire refined product operations or pipeline and terminal operations on acceptable terms and to integrate any future acquired operations, the Company’s efficiency in carrying out construction projects, 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 the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

-4-

RESULTS OF OPERATIONS

Financial Data (all information in this release is unaudited)


	Three Months Ended
	December 31,						Change from 2006
	2007			2006			Change			Percent
	(In thousands, except per share data)

Sales and other revenues	$	1,440,207		$	938,090		$	502,117			53.5	%
Operating costs and expenses:
Cost of products sold (exclusive of depreciation, depletion and amortization)		1,295,066			786,601			508,465			64.6
Operating expenses (exclusive of depreciation, depletion and amortization)		55,851			52,755			3,096			5.9
General and administrative expenses (exclusive of depreciation, depletion and amortization)		12,780			18,442			(5,662	)		(30.7	)
Depreciation, depletion and amortization		10,833			11,534			(701	)		(6.1	)
Exploration expenses, including dry holes		101			157			(56	)		(35.7	)

Total operating costs and expenses		1,374,631			869,489			505,142			58.1

Income from operations		65,576			68,601			(3,025	)		(4.4	)
Other income (expense):
Equity in earnings of HEP		5,245			4,605			640			13.9
Interest income		4,611			2,867			1,744			60.8
Interest expense		(246	)		(261	)		15			(5.7	)

		9,610			7,211			2,399			33.3

Income from continuing operations before income taxes		75,186			75,812			(626	)		(0.8	)
Income tax provision		25,353			27,004			(1,651	)		(6.1	)

Income from continuing operations		49,833			48,808			1,025			2.1
Loss from discontinued operations, net of taxes		—			(1,149	)		1,149			(100.0	)

Net income	$	49,833		$	47,659		$	2,174			4.6	%


Basic earnings per share:
Continuing operations	$	0.92		$	0.88		$	0.04			4.5	%
Discontinued operations		—			(0.02	)		0.02			(100.0	)

Net income	$	0.92		$	0.86		$	0.06			7.0	%


Diluted earnings per share:
Continuing operations	$	0.90		$	0.86		$	0.04			4.7	%
Discontinued operations		—			(0.02	)		0.02			(100.0	)

Net income	$	0.90		$	0.84		$	0.06			7.1	%


Cash dividends declared per common share	$	0.12		$	0.08		$	0.04			50.0	%

Average number of common shares outstanding:
Basic		54,451			55,741			(1,290	)		(2.3	)%
Diluted		55,098			56,965			(1,867	)		(3.3	)%

-5-


	Years Ended
	December 31,						Change from 2006
	2007			2006			Change			Percent
	(In thousands, except per share data)

Sales and other revenues	$	4,791,742		$	4,023,217		$	768,525			19.1	%
Operating costs and expenses:
Cost of products sold (exclusive of depreciation, depletion and amortization)		4,003,488			3,349,404			654,084			19.5
Operating expenses (exclusive of depreciation, depletion and amortization)		209,281			208,460			821			0.4
General and administrative expenses (exclusive of depreciation, depletion and amortization)		68,773			63,255			5,518			8.7
Depreciation, depletion and amortization		43,456			39,721			3,735			9.4
Exploration expenses, including dry holes		412			486			(74	)		(15.2	)

Total operating costs and expenses		4,325,410			3,661,326			664,084			18.1


Income from operations		466,332			361,891			104,441			28.9
Other income (expense):
Equity in earnings of HEP		19,109			12,929			6,180			47.8
Interest income		15,089			9,757			5,332			54.6
Interest expense		(1,086	)		(1,076	)		(10	)		0.9

		33,112			21,610			11,502			53.2

Income from continuing operations before income taxes		499,444			383,501			115,943			30.2
Income tax provision		165,316			136,603			28,713			21.0

Income from continuing operations		334,128			246,898			87,230			35.3
Income from discontinued operations, net of taxes		—			19,668			(19,668	)		(100.0	)

Net income	$	334,128		$	266,566		$	67,562			25.3	%


Basic earnings per share:
Continuing operations	$	6.09		$	4.33		$	1.76			40.6	%
Discontinued operations		—			0.35			(0.35	)		(100.0	)

Net income	$	6.09		$	4.68		$	1.41			30.1	%


Diluted earnings per share:
Continuing operations	$	5.98		$	4.24		$	1.74			41.0	%
Discontinued operations		—			0.34			(0.34	)		(100.0	)

Net income	$	5.98		$	4.58		$	1.40			30.6	%


Cash dividends declared per common share	$	0.46		$	0.29		$	0.17			58.6	%

Average number of common shares outstanding:
Basic		54,852			56,976			(2,124	)		(3.7	)%
Diluted		55,850			58,210			(2,360	)		(4.1	)%

Balance Sheet Data


	December 31,		December 31,
	2007		2006
	(In thousands)

Cash, cash equivalents and investments in marketable securities	$	329,784	$	255,953
Working capital	$	216,541	$	240,181
Total assets	$	1,663,945	$	1,237,869
Stockholders’ equity	$	593,794	$	466,094

-6-

Refining Operating Data

Our refinery operations include the Navajo Refinery and the Woods Cross Refinery. The following tables set forth information, including non-GAAP performance measures about our refinery operations. The cost of products and refinery gross margin do not include the effect of depreciation, depletion and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.


	Three Months Ended						Years Ended
	December 31,						December 31,
	2007			2006			2007			2006
*Navajo Refinery*
Crude charge (BPD) ⁽¹⁾		82,180			83,060			79,460			72,930
Refinery production (BPD) ⁽²⁾		93,550			93,100			87,930			80,540
Sales of produced refined products (BPD)		99,080			92,580			88,920			79,940
Sales of refined products (BPD) ⁽³⁾		105,550			102,770			100,460			93,660

Refinery utilization ⁽⁴⁾		96.7	%		101.3	%		94.6	%		92.9	%

Average per produced barrel ⁽⁵⁾
Net sales	$	99.39		$	70.90		$	89.68		$	79.62
Cost of products ⁽⁶⁾		91.44			59.60			74.10			64.25

Refinery gross margin		7.95			11.30			15.58			15.37
Refinery operating expenses ⁽⁷⁾		4.11			4.10			4.30			4.74

Net operating margin	$	3.84		$	7.20		$	11.28		$	10.63


Feedstocks:
Sour crude oil		81	%		76	%		82	%		80	%
Sweet crude oil		5	%		10	%		9	%		8	%
Other feedstocks and blends		14	%		14	%		9	%		12	%

Total		100	%		100	%		100	%		100	%


Sales of produced refined products:
Gasolines		60	%		61	%		59	%		60	%
Diesel fuels		30	%		28	%		30	%		28	%
Jet fuels		2	%		3	%		3	%		4	%
Fuel oil		4	%		2	%		3	%		2	%
Asphalt		2	%		3	%		2	%		3	%
LPG and other		2	%		3	%		3	%		3	%

Total		100	%		100	%		100	%		100	%


*Woods Cross Refinery*
Crude charge (BPD) ⁽¹⁾		23,560			22,190			24,030			23,640
Refinery production (BPD) ⁽²⁾		24,980			23,910			25,340			25,190
Sales of produced refined products (BPD)		25,040			24,630			26,130			25,150
Sales of refined products (BPD) ⁽³⁾		25,040			25,730			26,340			26,210

Refinery utilization ⁽⁴⁾		90.6	%		85.3	%		92.4	%		90.9	%

Average per produced barrel ⁽⁵⁾
Net sales	$	100.79		$	72.20		$	90.09		$	82.09
Cost of products ⁽⁶⁾		83.51			57.15			69.40			64.99

Refinery gross margin		17.28			15.05			20.69			17.10
Refinery operating expenses ⁽⁷⁾		5.47			5.49			4.86			5.13

Net operating margin	$	11.81		$	9.56		$	15.83		$	11.97

-7-


	Three Months Ended						Years Ended
	December 31,						December 31,
	2007			2006			2007			2006
*Woods Cross Refinery*
Feedstocks:
Sour crude oil		7	%		—	%		3	%		2	%
Sweet crude oil		87	%		90	%		89	%		89	%
Other feedstocks and blends		6	%		10	%		8	%		9	%

Total		100	%		100	%		100	%		100	%


Sales of produced refined products:
Gasolines		71	%		60	%		63	%		63	%
Diesel fuels		24	%		26	%		27	%		28	%
Jet fuels		—	%		1	%		2	%		2	%
Fuel oil		2	%		8	%		5	%		5	%
Asphalt		1	%		—	%		1	%		—	%
LPG and other		2	%		5	%		2	%		2	%

Total		100	%		100	%		100	%		100	%


*Consolidated*
Crude charge (BPD) ⁽¹⁾		105,740			105,250			103,490			96,570
Refinery production (BPD) ⁽²⁾		118,530			117,010			113,270			105,730
Sales of produced refined products (BPD)		124,120			117,210			115,050			105,090
Sales of refined products (BPD) ⁽³⁾		130,590			128,500			126,800			119,870

Refinery utilization ⁽⁴⁾		95.3	%		97.5	%		94.1	%		92.4	%

Average per produced barrel ⁽⁵⁾
Net sales	$	99.67		$	71.17		$	89.77		$	80.21
Cost of products ⁽⁶⁾		89.84			59.09			73.03			64.43

Refinery gross margin		9.83			12.08			16.74			15.78
Refinery operating expenses ⁽⁷⁾		4.39			4.39			4.43			4.83

Net operating margin	$	5.44		$	7.69		$	12.31		$	10.95


Feedstocks:
Sour crude oil		66	%		61	%		62	%		61	%
Sweet crude oil		22	%		26	%		26	%		28	%
Other feedstocks and blends		12	%		13	%		12	%		11	%

Total		100	%		100	%		100	%		100	%


Sales of produced refined products:
Gasolines		62	%		61	%		60	%		61	%
Diesel fuels		29	%		28	%		29	%		28	%
Jet fuels		2	%		3	%		2	%		3	%
Fuel oil		3	%		3	%		4	%		3	%
Asphalt		2	%		2	%		2	%		2	%
LPG and other		2	%		3	%		3	%		3	%

Total		100	%		100	%		100	%		100	%


(1)		Crude charge represents the barrels per day of crude oil processed at the crude units at our refineries.

(2)		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.

(3)		Includes refined products purchased for resale.

(4)		Represents crude charge divided by total crude capacity (BPSD). Crude capacity for the Navajo Refinery was increased from 75,000 BPSD to 83,000 BPSD during 2006 and increased by 2,000 BPSD to 85,000 BPSD in mid-year 2007, increasing our consolidated crude capacity to 111,000 BPSD.

(5)		Represents average per barrel amounts for produced refined products sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are located under “Reconciliations to Amounts Reported under Generally Accepted Accounting Principles” below.

(6)		Transportation costs billed from HEP are included in cost of products.

(7)		Represents operating expenses of our refineries, exclusive of depreciation, depletion, and amortization, and excludes refining segment expenses of product pipelines and terminals.

-8-

Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles

Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to amounts reported under generally accepted accounting principles in financial statements.

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, depletion and amortization. EBITDA is not a calculation based upon accounting principles generally accepted in the United States; 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. We are reporting EBITDA from continuing operations.

Set forth below is our calculation of EBITDA from continuing operations.


	Three Months Ended						Years Ended
	December 31,						December 31,
	2007			2006			2007			2006
	(In thousands)
Income from continuing operations	$	49,833		$	48,808		$	334,128		$	246,898
Add provision for income tax		25,353			27,004			165,316			136,603
Add interest expense		246			261			1,086			1,076
Subtract interest income		(4,611	)		(2,867	)		(15,089	)		(9,757	)
Add depreciation and amortization		10,833			11,534			43,456			39,721

EBITDA from continuing operations	$	81,654		$	84,740		$	528,897		$	414,541

Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Refinery gross margin and net operating margin are non-GAAP performance measures that are used by our management and others to compare our refining performance to that of other companies in our industry. We believe these margin measures are helpful to investors in evaluating our refining performance on a relative and absolute basis.

We calculate refinery gross margin and net operating margin using net sales, cost of products and operating expenses, in each case averaged per produced barrel sold. These two margins do not include the effect of depreciation, depletion and amortization. Each of these component performance measures can be reconciled directly to our Consolidated Statements of Income.

Other companies in our industry may not calculate these performance measures in the same manner.

-9-

Refinery Gross Margin

Refinery gross margin per barrel is the difference between average net sales price and average cost of products per barrel of produced refined products. Refinery gross margin for each of our refineries and for both of our refineries on a consolidated basis is calculated as shown below.


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006
Average per produced barrel:

*Navajo Refinery*
Net sales	$	99.39	$	70.90	$	89.68	$	79.62
Less cost of products		91.44		59.60		74.10		64.25

Refinery gross margin	$	7.95	$	11.30	$	15.58	$	15.37


*Woods Cross Refinery*
Net sales	$	100.79	$	72.20	$	90.09	$	82.09
Less cost of products		83.51		57.15		69.40		64.99

Refinery gross margin	$	17.28	$	15.05	$	20.69	$	17.10


*Consolidated*
Net sales	$	99.67	$	71.17	$	89.77	$	80.21
Less cost of products		89.84		59.09		73.03		64.43

Refinery gross margin	$	9.83	$	12.08	$	16.74	$	15.78

Net Operating Margin

Net operating margin per barrel is the difference between refinery gross margin and refinery operating expenses per barrel of produced refined products. Net operating margin for each of our refineries and for both of our refineries on a consolidated basis is calculated as shown below.


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006
Average per produced barrel:

*Navajo Refinery*
Refinery gross margin	$	7.95	$	11.30	$	15.58	$	15.37
Less refinery operating expenses		4.11		4.10		4.30		4.74

Net operating margin	$	3.84	$	7.20	$	11.28	$	10.63


*Woods Cross Refinery*
Refinery gross margin	$	17.28	$	15.05	$	20.69	$	17.10
Less refinery operating expenses		5.47		5.49		4.86		5.13

Net operating margin	$	11.81	$	9.56	$	15.83	$	11.97


*Consolidated*
Refinery gross margin	$	9.83	$	12.08	$	16.74	$	15.78
Less refinery operating expenses		4.39		4.39		4.43		4.83

Net operating margin	$	5.44	$	7.69	$	12.31	$	10.95

Below are reconciliations to our Consolidated Statements of Income for (i) net sales, cost of products and operating expenses, in each case averaged per produced barrel sold, and (ii) net operating margin and refinery gross margin. Due to rounding of reported numbers, some amounts may not calculate exactly.

-10-

Reconciliations of refined product sales from produced products sold to total sales and other revenues


	Three Months Ended					Years Ended
	December 31,					December 31,
	2007		2006			2007		2006
*Navajo Refinery*
Average sales price per produced barrel sold	$	99.39	$	70.90		$	89.68	$	79.62
Times sales of produced refined products sold (BPD)		99,080		92,580			88,920		79,940
Times number of days in period		92		92			365		365

Refined product sales from produced products sold	$	905,976	$	603,881		$	2,910,636	$	2,323,160


*Woods Cross Refinery*
Average sales price per produced barrel sold	$	100.79	$	72.20		$	90.09	$	82.09
Times sales of produced refined products sold (BPD)		25,040		24,630			26,130		25,150
Times number of days in period		92		92			365		365

Refined product sales from produced products sold	$	232,188	$	163,602		$	859,229	$	753,566


Sum of refined products sales from produced products sold from our two refineries ⁽⁴⁾	$	1,138,164	$	767,483		$	3,769,865	$	3,076,726
Add refined product sales from purchased products and rounding⁽¹⁾		61,759		82,662			383,396		480,641

Total refined products sales		1,199,923		850,145			4,153,261		3,557,367
Add direct sales of excess crude oil⁽²⁾		194,350		48,624			491,150		323,002
Add other refining segment revenue⁽³⁾		45,287		38,610			145,753		141,605

Total refining segment revenue		1,439,560		937,379			4,790,164		4,021,974
Add corporate and other revenues		647		824			1,578		1,752
Subtract consolidations and eliminations		—		(113	)		—		(509	)

Sales and other revenues	$	1,440,207	$	938,090		$	4,791,742	$	4,023,217


(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 and enter into buy/sell exchanges in excess of the needs to supply our refineries. Certain direct sales of this excess crude oil are made to purchasers or users of crude oil. Under new accounting guidance, these sales and related purchases starting April 1, 2006 are being measured at fair value and accounted for as revenues with the related acquisition costs included as cost of products sold. Prior to April 1, 2006, sales and cost of sales attributable to such excess crude oil direct sales were netted and presented in cost of products sold.

(3)		Other refining segment revenue includes the revenues associated with NK Asphalt Partners and revenue derived from sulfur credit sales.

(4)		The above calculations of refined product sales from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006

Average sales price per produced barrel sold	$	99.67	$	71.17	$	89.77	$	80.21
Times sales of produced refined products sold (BPD)		124,120		117,210		115,050		105,090
Times number of days in period		92		92		365		365

Refined product sales from produced products sold	$	1,138,164	$	767,483	$	3,769,865	$	3,076,726

Reconciliation of average cost of products per produced barrel sold to total costs of products sold


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006
*Navajo Refinery*
Average cost of products per produced barrel sold	$	91.44	$	59.60	$	74.10	$	64.25
Times sales of produced refined products sold (BPD)		99,080		92,580		88,920		79,940
Times number of days in period		92		92		365		365

Cost of products for produced products sold	$	833,509	$	507,635	$	2,404,975	$	1,874,693

-11-


	Three Months Ended					Years Ended
	December 31,					December 31,
	2007		2006			2007		2006
*Woods Cross Refinery*
Average cost of products per produced barrel sold	$	83.51	$	57.15		$	69.40	$	64.99
Times sales of produced refined products sold (BPD)		25,040		24,630			26,130		25,150
Times number of days in period		92		92			365		365

Cost of products for produced products sold	$	192,380	$	129,500		$	661,899	$	596,592

Sum of cost of products for produced products sold from our two refineries ⁽⁴⁾	$	1,025,889	$	637,135		$	3,066,874	$	2,471,285
Add refined product costs from purchased products sold and rounding ⁽¹⁾		56,341		77,946			374,432		473,903

Total refined cost of products sold		1,082,230		715,081			3,441,306		2,945,188
Add crude oil cost of direct sales of excess crude oil⁽²⁾		194,933		49,413			492,222		323,337
Add other refining segment costs of products sold⁽³⁾		17,903		22,220			69,960		81,388

Total refining segment cost of products sold		1,295,066		786,714			4,003,488		3,349,913
Subtract consolidations and eliminations		—		(113	)		—		(509	)

Costs of products sold (exclusive of depreciation, depletion and amortization)	$	1,295,066	$	786,601		$	4,003,488	$	3,349,404


(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 and enter into buy/sell exchanges in excess of the needs to supply our refineries. Certain direct sales of this excess crude oil are made to purchasers or users of crude oil. Under new accounting guidance, these sales and related purchases starting April 1, 2006 are being measured at fair value and accounted for as revenues with the related acquisition costs included as cost of products sold. Prior to April 1, 2006, sales and cost of sales attributable to such excess crude oil direct sales were netted and presented in cost of products sold.

(3)		Other refining segment costs of products sold includes the costs of products for NK Asphalt Partners and costs attributable to sulfur credit sales.

(4)		The above calculations of costs of products from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006

Average cost of products per produced barrel sold	$	89.84	$	59.09	$	73.03	$	64.43
Times sales of produced refined products sold (BPD)		124,120		117,210		115,050		105,090
Times number of days in period		92		92		365		365

Cost of products for produced products sold	$	1,025,889	$	637,135	$	3,066,874	$	2,471,285

Reconciliation of average refinery operating expenses per produced barrel sold to total operating expenses


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006
*Navajo Refinery*
Average refinery operating expenses per produced barrel sold	$	4.11	$	4.10	$	4.30	$	4.74
Times sales of produced refined products sold (BPD)		99,080		92,580		88,920		79,940
Times number of days in period		92		92		365		365

Refinery operating expenses for produced products sold	$	37,464	$	34,921	$	139,560	$	138,304


*Woods Cross Refinery*
Average refinery operating expenses per produced barrel sold	$	5.47	$	5.49	$	4.86	$	5.13
Times sales of produced refined products sold (BPD)		25,040		24,630		26,130		25,150
Times number of days in period		92		92		365		365

Refinery operating expenses for produced products sold	$	12,601	$	12,440	$	46,352	$	47,092

-12-


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006

Sum of refinery operating expenses per produced products sold from our two refineries ⁽²⁾	$	50,065	$	47,361	$	185,912	$	185,396
Add other refining segment operating expenses and rounding ⁽¹⁾		5,785		5,385		23,357		23,015

Total refining segment operating expenses		55,850		52,746		209,269		208,411
Add corporate and other costs		1		9		12		49

Operating expenses (exclusive of depreciation, depletion and amortization)	$	55,851	$	52,755	$	209,281	$	208,460


(1)		Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses of NK Asphalt Partners.

(2)		The above calculations of refinery operating expenses from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006

Average refinery operating expenses per produced barrel sold	$	4.39	$	4.39	$	4.43	$	4.83
Times sales of produced refined products sold (BPD)		124,120		117,210		115,050		105,090
Times number of days in period		92		92		365		365

Refinery operating expenses for produced products sold	$	50,065	$	47,361	$	185,912	$	185,396

Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues


	Three Months Ended					Years Ended
	December 31,					December 31,
	2007		2006			2007		2006
*Navajo Refinery*
Net operating margin per barrel	$	3.84	$	7.20		$	11.28	$	10.63
Add average refinery operating expenses per produced barrel		4.11		4.10			4.30		4.74

Refinery gross margin per barrel		7.95		11.30			15.58		15.37
Add average cost of products per produced barrel sold		91.44		59.60			74.10		64.25

Average net sales per produced barrel sold	$	99.39	$	70.90		$	89.68	$	79.62
Times sales of produced refined products sold (BPD)		99,080		92,580			88,920		79,940
Times number of days in period		92		92			365		365

Refined product sales from produced products sold	$	905,976	$	603,881		$	2,910,636	$	2,323,160


*Woods Cross Refinery*
Net operating margin per barrel	$	11.81	$	9.56		$	15.83	$	11.97
Add average refinery operating expenses per produced barrel		5.47		5.49			4.86		5.13

Refinery gross margin per barrel		17.28		15.05			20.69		17.10
Add average cost of products per produced barrel sold		83.51		57.15			69.40		64.99

Average net sales per produced barrel sold	$	100.79	$	72.20		$	90.09	$	82.09
Times sales of produced refined products sold (BPD)		25,040		24,630			26,130		25,150
Times number of days in period		92		92			365		365

Refined product sales from produced products sold	$	232,188	$	163,602		$	859,229	$	753,566


Sum of refined products sales from produced products sold from our two refineries ⁽⁴⁾	$	1,138,164	$	767,483		$	3,769,865	$	3,076,726
Add refined product sales from purchased products and rounding ⁽¹⁾		61,759		82,662			383,396		480,641

Total refined product sales		1,199,923		850,145			4,153,261		3,557,367
Add direct sales of excess crude oil⁽²⁾		194,350		48,624			491,150		323,002
Add other refining segment revenue ⁽³⁾		45,287		38,610			145,753		141,605

Total refining segment revenue		1,439,560		937,379			4,790,164		4,021,974
Add corporate and other revenues		647		824			1,578		1,752
Subtract consolidations and eliminations		—		(113	)		—		(509	)

Sales and other revenues	$	1,440,207	$	938,090		$	4,791,742	$	4,023,217

-13-


(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 and enter into buy/sell exchanges in excess of the needs to supply our refineries. Certain direct sales of this excess crude oil are made to purchasers or users of crude oil. Under new accounting guidance, these sales and related purchases starting April 1, 2006 are being measured at fair value and accounted for as revenues with the related acquisition costs included as cost of products sold. Prior to April 1, 2006, sales and cost of sales attributable to such excess crude oil direct sales were netted and presented in cost of products sold.

(3)		Other refining segment revenue includes the revenues associated with NK Asphalt Partners and revenue derived from sulfur credit sales.

(4)		The above calculations of refined product sales from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.


	Three Months Ended				Years Ended
	December 31,				December 31,
	2007		2006		2007		2006

Net operating margin per barrel	$	5.44	$	7.69	$	12.31	$	10.95
Add average refinery operating expenses per produced barrel		4.39		4.39		4.43		4.83

Refinery gross margin per barrel		9.83		12.08		16.74		15.78
Add average cost of products per produced barrel sold		89.84		59.09		73.03		64.43

Average sales price per produced barrel sold	$	99.67	$	71.17	$	89.77	$	80.21
Times sales of produced refined products sold (BPD)		124,120		117,210		115,050		105,090
Times number of days in period		92		92		365		365

Refined product sales from produced products sold	$	1,138,136	$	767,483	$	3,769,734	$	3,076,726

FOR FURTHER INFORMATION, Contact:

Bruce R. Shaw, Senior Vice President and
Chief Financial Officer
M. Neale Hickerson, Vice President,
Investor Relations
Holly Corporation
214/871-3555

-14-

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


	HOLLY CORPORATION
	By:	/s/ Bruce R. Shaw
		Bruce R. Shaw
		Senior Vice President & Chief Financial Officer


Exhibit
Number		Exhibit Title

99.1 —		Press Release of the Company issued February 19, 2008.*


Delaware (State or other jurisdiction of incorporation) 100 Crescent Court, Suite 1600 Dallas, Texas (Address of principal executive offices)		001-03876 (Commission File Number)		75-1056913 (I.R.S. Employer Identification Number) 75201-6915 (Zip code)


*		Furnished herewith pursuant to Item 2.02.


*		Furnished herewith pursuant to Item 2.02.