Holly Corporation Reports Third Quarter 2010 Results
Announces Regular Quarterly Cash Dividend
DALLAS, Nov. 4, 2010 /PRNewswire-FirstCall/ -- Holly Corporation (NYSE: HOC) ("Holly" or the "Company") today reported third quarter 2010 financial results. For the quarter, net income attributable to Holly stockholders was $51.2 million ($0.96 per basic and diluted share) compared to $23.5 million ($0.47 per basic and diluted share) for the third quarter of 2009. For the nine months ended September 30, 2010, net income attributable to Holly stockholders was $89.2 million ($1.68 per basic and $1.67 per diluted share) compared to $60 million ($1.20 per basic and $1.19 per diluted share) for the same period of 2009.
Holly also announced that its Board of Directors has declared a regular quarterly cash dividend in the amount of $0.15 per share, payable January 4, 2011 to holders of record on December 20, 2010.
For the quarter, net income attributable to our stockholders increased by $27.7 million compared to the same period of 2009. This increase was due principally to higher refinery gross margins during the current year third quarter combined with increased sales volumes of produced refined products. Overall refinery gross margins were $10.41 per produced barrel, a 26% increase compared to $8.27 for the third quarter of 2009. For the quarter, our overall refinery production levels averaged 230,630 barrels per day ("BPD"), an increase of 24% over the same period of 2009 due principally to increased production from our Tulsa refinery complex since we acquired the east facility in December 2009.
For the nine months ended September 30, 2010, net income attributable to our stockholders increased by $29.2 million compared to the same period of 2009. This increase was due principally to increased sales volumes of produced refined products combined with a slight increase in overall current year-to-date refinery gross margins. Overall refinery gross margins were $9.10 per produced barrel, a 2% increase compared to $8.90 for the first nine months of 2009. For the current year-to-date period, our overall refinery production levels averaged 227,060, an increase of 64% over the same period of 2009 due to production from our Tulsa refinery facilities and production increases at our Navajo and Woods Cross refineries.
"We are pleased with our third quarter results," said Matthew Clifton, Chairman of the Board and Chief Executive Officer of Holly. "Continued strong diesel cracks at each of our refineries combined with robust gasoline cracks at our Woods Cross refinery and attractive lube margins at our Tulsa refinery helped fuel significant improved year over year third quarter performance. Unscheduled downtime at certain operating units at our Navajo refinery during the quarter reduced our expected run rate and, accordingly, somewhat limited our capture of solid gross margins at that facility.
"Progress continues on our Tulsa integration and diesel desulfurization expansion efforts, with expected completion by the end of the first quarter 2011. The Tulsa projects will reduce emissions and should improve the profit producing potential of what has been a strong profit contributor over the last two quarters.
"Our affiliated logistic MLP, Holly Energy Partners, had a strong third quarter achieving record quarterly distributable cash flow and EBITDA levels. Our combined limited partner and general partner distributions during the third quarter were $9.1 million.
"At the end of the third quarter our cash and marketable securities stood at $272 million. Excluding the Holly Energy Partners debt that is non-recourse to Holly, our cash adjusted debt to total capitalization ratio was down to 10%. Accordingly, our balance sheet ranks as one of the strongest among our independent refining peers.
"In October the product margin environment for our refineries decreased slightly from the average during the third quarter but is strong for this time of year. Looking forward we feel good about the quality of our assets, our dedicated personnel, the markets we serve and our improving strong financial position," Clifton said.
Sales and other revenues for the third quarter of 2010 were $2,091 million, a 41% increase compared to the three months ended September 30, 2009. This increase was due to the effects of a 14% year-over-year increase in third quarter refined product sales prices combined with a 28% increase in volumes of produced refined products sold. The volume increase was primarily due to volumes attributable to our Tulsa refinery operations. Cost of products sold was $1,807 million, a 40% increase compared to the three months ended September 30, 2009 due mainly to higher crude oil acquisition costs and increased volumes of produced refined products sold.
Sales and other revenues for the nine months ended September 30, 2010 were $6,111.1 million, a 93% increase compared to the nine months ended September 30, 2009. This increase was due to the effects of a 28% year-over-year increase in year-to-date refined product sales prices combined with a 65% increase in volumes of produced refined products sold. The volume increase was attributable to our Tulsa refinery operations and year-to-date production increases at our Navajo and Woods Cross refineries. Cost of products sold was $5,379.1 million, a 100% increase compared to the nine months ended September 30, 2009 due mainly to higher crude oil acquisition costs and increased volumes of produced refined products sold.
Operating costs and expenses for the three and the nine months ended September 30, 2010 increased mainly due to the inclusion of costs attributable to the operations of our Tulsa refinery facilities. Interest expense for the three and the nine months ended September 30, 2010 increased by $5 million and $30.3 million, respectively, primarily due to interest incurred on the $300 million Holly senior notes and the $150 million 8.25% senior notes issued by HEP in March 2010.
The Company has scheduled a webcast conference call for today, November 4, 2010 at 4:00 PM Eastern Time to discuss financial results. This webcast may be accessed at: http://www.videonewswire.com/event.asp?id=73298.
An audio archive of this webcast will be available using the above noted link through November 18, 2010.
Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and specialty lubricant products. Holly operates through its subsidiaries a 100,000 BPSD refinery located in Artesia, New Mexico, a 31,000 BPSD refinery in Woods Cross, Utah and a 125,000 BPSD refinery located in Tulsa, Oklahoma. Also, a subsidiary of Holly owns a 34% interest (including the 2% general partner interest) in Holly Energy Partners, L.P., which through subsidiaries owns or leases approximately 2,500 miles of petroleum product and crude oil pipelines in Texas, New Mexico, Utah and Oklahoma and tankage 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 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. Any 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 and environmental regulations and policies, the availability and cost of financing to the Company, the effectiveness of the Company's capital investments and marketing strategies, the Company's efficiency in carrying out construction projects, 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 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.
RESULTS OF OPERATIONS Financial Data (all information in this release is unaudited) |
|||||
Three Months Ended September 30, |
Change from 2009 |
||||
2010 |
2009 |
Change |
Percent |
||
(In thousands, except per share data) |
|||||
Sales and other revenues |
$ 2,090,988 |
$ 1,488,491 |
$ 602,497 |
40.5% |
|
Operating costs and expenses: |
|||||
Cost of products sold (exclusive of depreciation and amortization) |
1,807,044 |
1,295,438 |
511,606 |
39.5 |
|
Operating expenses (exclusive of depreciation and amortization) |
130,263 |
96,717 |
33,546 |
34.7 |
|
General and administrative expenses (exclusive of depreciation and amortization) |
16,925 |
16,728 |
197 |
1.2 |
|
Depreciation and amortization |
29,138 |
24,026 |
5,112 |
21.3 |
|
Total operating costs and expenses |
1,983,370 |
1,432,909 |
550,461 |
38.4 |
|
Income from operations |
107,618 |
55,582 |
52,036 |
93.6 |
|
Other income (expense): |
|||||
Equity in earnings of SLC Pipeline |
570 |
646 |
(76) |
(11.8) |
|
Interest income |
64 |
231 |
(167) |
(72.3) |
|
Interest expense |
(17,368) |
(12,407) |
(4,961) |
40.0 |
|
Acquisition costs - Tulsa refinery |
- |
(378) |
378 |
(100.0) |
|
(16,734) |
(11,908) |
(4,826) |
40.5 |
||
Income from continuing operations before income taxes |
90,884 |
43,674 |
47,210 |
108.1 |
|
Income tax provision |
31,494 |
13,497 |
17,997 |
133.3 |
|
Income from continuing operations |
59,390 |
30,177 |
29,213 |
96.8 |
|
Income from discontinued operations (1) |
- |
901 |
(901) |
(100.0) |
|
Net income |
59,390 |
31,078 |
28,312 |
91.1 |
|
Less noncontrolling interest in net income |
8,213 |
7,594 |
619 |
8.2 |
|
Net income attributable to Holly Corporation stockholders |
$ 51,177 |
$ 23,484 |
$ 27,693 |
117.9% |
|
Earnings attributable to Holly Corporation stockholders: |
|||||
Income from continuing operations |
$ 51,177 |
$ 23,213 |
$ 27,964 |
120.5% |
|
Income from discontinued operations |
- |
271 |
(271) |
(100.0) |
|
Net income |
$ 51,177 |
$ 23,484 |
$ 27,693 |
117.9% |
|
Earnings per share attributable to Holly Corporation stockholders – basic: |
|||||
Income from continuing operations |
$ 0.96 |
$ 0.46 |
$ 0.50 |
108.7% |
|
Income from discontinued operations (1) |
- |
0.01 |
(0.01) |
(100.0) |
|
Net income |
$ 0.96 |
$ 0.47 |
$ 0.49 |
104.3% |
|
Earnings per share attributable to Holly Corporation stockholders – diluted: |
|||||
Income from continuing operations |
$ 0.96 |
$ 0.46 |
$ 0.50 |
108.7% |
|
Income from discontinued operations (1) |
- |
0.01 |
(0.01) |
(100.0) |
|
Net income |
$ 0.96 |
$ 0.47 |
$ 0.49 |
104.3% |
|
Cash dividends declared per common share |
$ 0.15 |
$ 0.15 |
$ - |
-% |
|
Average number of common shares outstanding: |
|||||
Basic |
53,210 |
50,244 |
2,966 |
5.9% |
|
Diluted |
53,567 |
50,327 |
3,240 |
6.4% |
|
EBITDA from continuing operations |
$ 129,113 |
$ 72,912 |
$ 56,201 |
77.1% |
|
Nine Months Ended September 30, |
Change from 2009 |
||||
2010 |
2009 |
Change |
Percent |
||
(In thousands, except per share data) |
|||||
Sales and other revenues |
$ 6,111,138 |
$ 3,172,299 |
$ 2,938,839 |
92.6% |
|
Operating costs and expenses: |
|||||
Cost of products sold (exclusive of depreciation and amortization) |
5,379,120 |
2,687,018 |
2,692,102 |
100.2 |
|
Operating expenses (exclusive of depreciation and amortization) |
378,638 |
241,518 |
137,120 |
56.8 |
|
General and administrative expenses (exclusive of depreciation and amortization) |
50,623 |
43,572 |
7,051 |
16.2 |
|
Depreciation and amortization |
85,719 |
69,367 |
16,352 |
23.6 |
|
Total operating costs and expenses |
5,894,100 |
3,041,475 |
2,852,625 |
93.8 |
|
Income from operations |
217,038 |
130,824 |
86,214 |
65.9 |
|
Other income (expense): |
|||||
Equity in earnings of SLC Pipeline |
1,595 |
1,309 |
286 |
21.8 |
|
Interest income |
758 |
2,561 |
(1,803) |
(70.4) |
|
Interest expense |
(56,113) |
(25,849) |
(30,264) |
117.1 |
|
Acquisition costs - Tulsa refinery |
- |
(1,988) |
1,988 |
(100.0) |
|
(53,760) |
(23,967) |
(29,793) |
124.3 |
||
Income from continuing operations before income taxes |
163,278 |
106,857 |
56,421 |
52.8 |
|
Income tax provision |
54,476 |
34,668 |
19,808 |
57.1 |
|
Income from continuing operations |
108,802 |
72,189 |
36,613 |
50.7 |
|
Income from discontinued operations (1) |
- |
3,438 |
(3,438) |
(100.0) |
|
Net income |
108,802 |
75,627 |
33,175 |
43.9 |
|
Less noncontrolling interest in net income |
19,557 |
15,593 |
3,964 |
25.4 |
|
Net income attributable to Holly Corporation stockholders |
$ 89,245 |
$ 60,034 |
$ 29,211 |
48.7% |
|
Earnings attributable to Holly Corporation stockholders: |
|||||
Income from continuing operations |
$ 89,245 |
$ 59,014 |
$ 30,231 |
51.2% |
|
Income from discontinued operations |
- |
1,020 |
(1,020) |
(100.0) |
|
Net income |
$ 89,245 |
$ 60,034 |
$ 29,211 |
48.7% |
|
Earnings per share attributable to Holly Corporation stockholders – basic: |
|||||
Income from continuing operations |
$ 1.68 |
$ 1.18 |
$ 0.50 |
42.4% |
|
Income from discontinued operations (1) |
- |
0.02 |
(0.02) |
(100.0) |
|
Net income |
$ 1.68 |
$ 1.20 |
$ 0.48 |
40.0% |
|
Earnings per share attributable to Holly Corporation stockholders – diluted: |
|||||
Income from continuing operations |
$ 1.67 |
$ 1.17 |
$ 0.50 |
42.7% |
|
Income from discontinued operations (1) |
- |
0.02 |
(0.02) |
(100.0) |
|
Net income |
$ 1.67 |
$ 1.19 |
$ 0.48 |
40.3% |
|
Cash dividends declared per common share |
$ 0.45 |
$ 0.45 |
$ - |
-% |
|
Average number of common shares outstanding: |
|||||
Basic |
53,172 |
50,153 |
3,019 |
6.0% |
|
Diluted |
53,531 |
50,272 |
3,259 |
6.5% |
|
EBITDA from continuing operations |
$ 284,795 |
$ 186,337 |
$ 98,458 |
52.8% |
|
(1) On December 1, 2009, HEP sold its interest in Rio Grande Pipeline Company ("Rio Grande"). Results of operations of Rio Grande are presented in discontinued operations. |
|||||
Balance Sheet Data |
|||
September 30, |
December 31, |
||
2010 |
2009 |
||
(In thousands) |
|||
Cash, cash equivalents and investments in marketable securities |
$ 273,091 |
$ 125,819 |
|
Working capital (1) |
$ 204,758 |
$ 257,899 |
|
Total assets |
$ 3,397,379 |
$ 3,145,939 |
|
Long-term debt |
$ 650,906 |
$ 707,458 |
|
Total equity |
$ 1,265,477 |
$ 1,207,871 |
|
(1) HEP's credit agreement expires in August 2011, therefore, working capital at September 30, 2010 reflects $157 million of HEP credit agreement borrowings that are classified as current liabilities. HEP intends to renew its credit agreement prior to expiration and to continue to finance outstanding borrowings, which HEP will then reclassify as long-term debt, to the extent not designated for working capital purposes. Excluding HEP's $157 million in credit agreement borrowings, working capital was $361.8 million at September 30, 2010. |
|||
Segment Information
Our operations are currently organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Consolidations and Eliminations.
The Refining segment includes the operations of our Navajo, Woods Cross and Tulsa refineries and Holly Asphalt Company ("Holly Asphalt"). The Refining segment involves the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel, jet fuel and specialty lubricant products. The petroleum products produced by the Refining segment are primarily marketed in the Southwest, Rocky Mountain and Mid-Continent regions of the United States and northern Mexico. Additionally, the Refining segment includes specialty lubricant products produced at our Tulsa refinery that are marketed throughout North America and are distributed in Central and South America. Holly Asphalt manufactures and markets asphalt and asphalt products in Arizona, New Mexico, Texas and northern Mexico.
The HEP segment involves all of the operations of HEP. HEP owns and operates a system of petroleum product and crude gathering pipelines in Texas, New Mexico, Oklahoma and Utah, distribution terminals in Texas, New Mexico, Arizona, Utah, Idaho, and Washington and refinery tankage in New Mexico, Utah and Oklahoma. Revenues are generated by charging tariffs for transporting petroleum products and crude oil through its pipelines, by leasing certain pipeline capacity to Alon USA, Inc., by charging fees for terminalling refined products and other hydrocarbons, and storing and providing other services at its storage tanks and terminals. The HEP segment also includes a 25% interest in SLC Pipeline LLC ("SLC Pipeline") that services refineries in the Salt Lake City, Utah area. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations.
Refining |
HEP |
Corporate and Other |
Consolidations and Eliminations |
Consolidated Total |
||
(In thousands) |
||||||
Three Months Ended September 30, 2010 |
||||||
Sales and other revenues |
$ 2,081,709 |
$ 46,558 |
$ 100 |
$ (37,379) |
$ 2,090,988 |
|
Operating expenses |
$ 116,757 |
$ 13,632 |
$ 6 |
$ (132) |
$ 130,263 |
|
General and administrative expenses |
$ - |
$ 1,508 |
$ 15,417 |
$ - |
$ 16,925 |
|
Depreciation and amortization |
$ 21,274 |
$ 6,830 |
$ 1,329 |
$ (295) |
$ 29,138 |
|
Income (loss) from operations |
$ 100,111 |
$ 24,588 |
$ (16,652) |
$ (429) |
$ 107,618 |
|
Three Months Ended September 30, 2009 |
||||||
Sales and other revenues |
$ 1,476,304 |
$ 40,805 |
$ 229 |
$ (28,847) |
$ 1,488,491 |
|
Operating expenses |
$ 85,735 |
$ 11,103 |
$ 7 |
$ (128) |
$ 96,717 |
|
General and administrative expenses |
$ - |
$ 1,848 |
$ 14,880 |
$ - |
$ 16,728 |
|
Depreciation and amortization |
$ 16,527 |
$ 5,974 |
$ 1,525 |
$ - |
$ 24,026 |
|
Income (loss) from operations |
$ 50,584 |
$ 21,880 |
$ (16,183) |
$ (699) |
$ 55,582 |
|
Refining |
HEP |
Corporate and Other |
Consolidations and Eliminations |
Consolidated Total |
||
(In thousands) |
||||||
Nine Months Ended September 30, 2010 |
||||||
Sales and other revenues |
$ 6,086,243 |
$ 132,730 |
$ 317 |
$ (108,152) |
$ 6,111,138 |
|
Operating expenses |
$ 338,802 |
$ 40,187 |
$ 24 |
$ (375) |
$ 378,638 |
|
General and administrative expenses |
$ - |
$ 5,984 |
$ 44,639 |
$ - |
$ 50,623 |
|
Depreciation and amortization |
$ 62,599 |
$ 20,822 |
$ 3,183 |
$ (885) |
$ 85,719 |
|
Income (loss) from operations |
$ 200,080 |
$ 65,737 |
$ (47,529) |
$ (1,250) |
$ 217,038 |
|
Nine Months Ended September 30, 2009 |
||||||
Sales and other revenues |
$ 3,136,017 |
$ 108,136 |
$ 423 |
$ (72,277) |
$ 3,172,299 |
|
Operating expenses |
$ 209,790 |
$ 32,076 |
$ 34 |
$ (382) |
$ 241,518 |
|
General and administrative expenses |
$ - |
$ 4,979 |
$ 38,593 |
$ - |
$ 43,572 |
|
Depreciation and amortization |
$ 46,310 |
$ 17,794 |
$ 5,263 |
$ - |
$ 69,367 |
|
Income (loss) from operations |
$ 121,703 |
$ 53,287 |
$ (43,467) |
$ (699) |
$ 130,824 |
|
September 30, 2010 |
||||||
Cash, cash equivalents and investments in marketable securities |
$ - |
$ 706 |
$ 272,385 |
$ - |
$ 273,091 |
|
Total assets |
$ 2,210,374 |
$ 660,727 |
$ 555,419 |
$ (29,141) |
$ 3,397,379 |
|
December 31, 2009 |
||||||
Cash, cash equivalents and investments in marketable securities |
$ - |
$ 2,508 |
$ 123,311 |
$ - |
$ 125,819 |
|
Total assets |
$ 2,142,317 |
$ 641,775 |
$ 392,007 |
$ (30,160) |
$ 3,145,939 |
|
Refining Operating Data
Our refinery operations include the Navajo, Woods Cross and Tulsa refineries. The following tables set forth information, including non-GAAP performance measures about our consolidated refinery operations. The cost of products and refinery gross margin do not include the effect of depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||
2010 |
2009 |
2010 |
2009 |
|||
Navajo Refinery |
||||||
Crude charge (BPD) (1) |
85,110 |
86,250 |
82,150 |
76,670 |
||
Refinery production (BPD) (2) |
91,550 |
93,620 |
90,290 |
84,560 |
||
Sales of produced refined products (BPD) |
92,180 |
93,996 |
90,730 |
84,102 |
||
Sales of refined products (BPD) (3) |
94,900 |
96,580 |
93,780 |
88,110 |
||
Refinery utilization (4) |
85.1% |
86.2% |
82.2% |
80.7% |
||
Average per produced barrel (5) |
||||||
Net sales |
$ 87.60 |
$ 78.15 |
$ 88.98 |
$ 69.21 |
||
Cost of products (6) |
79.39 |
70.88 |
81.44 |
60.25 |
||
Refinery gross margin |
8.21 |
7.27 |
7.54 |
8.96 |
||
Refinery operating expenses (7) |
5.25 |
4.37 |
5.01 |
4.88 |
||
Net operating margin |
$ 2.96 |
$ 2.90 |
$ 2.53 |
$ 4.08 |
||
Feedstocks: |
||||||
Sour crude oil |
88% |
86% |
86% |
84% |
||
Sweet crude oil |
4% |
6% |
4% |
6% |
||
Other feedstocks and blends |
8% |
8% |
10% |
10% |
||
Total |
100% |
100% |
100% |
100% |
||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
Sales of produced refined products: |
|||||
Gasolines |
55% |
56% |
57% |
57% |
|
Diesel fuels |
32% |
33% |
31% |
33% |
|
Jet fuels |
2% |
3% |
4% |
2% |
|
Fuel oil |
6% |
4% |
4% |
3% |
|
Asphalt |
3% |
2% |
2% |
3% |
|
LPG and other |
2% |
2% |
2% |
2% |
|
Total |
100% |
100% |
100% |
100% |
|
Woods Cross Refinery |
|||||
Crude charge (BPD) (1) |
27,440 |
26,860 |
26,870 |
25,670 |
|
Refinery production (BPD) (2) |
28,410 |
27,630 |
27,940 |
26,220 |
|
Sales of produced refined products (BPD) |
27,540 |
27,098 |
28,260 |
27,061 |
|
Sales of refined products (BPD) (3) |
27,840 |
27,150 |
28,450 |
27,520 |
|
Refinery utilization (4) |
88.5% |
86.7% |
86.7% |
81.9% |
|
Average per produced barrel (5) |
|||||
Net sales |
$ 94.86 |
$ 80.87 |
$ 93.71 |
$ 66.87 |
|
Cost of products (6) |
73.08 |
65.68 |
74.02 |
55.22 |
|
Refinery gross margin |
21.78 |
15.19 |
19.69 |
11.65 |
|
Refinery operating expenses (7) |
6.11 |
6.44 |
5.86 |
6.45 |
|
Net operating margin |
$ 15.67 |
$ 8.75 |
$ 13.83 |
$ 5.20 |
|
Feedstocks: |
|||||
Sour crude oil |
5% |
6% |
6% |
4% |
|
Sweet crude oil |
61% |
61% |
60% |
63% |
|
Black wax crude oil |
30% |
27% |
29% |
28% |
|
Other feedstocks and blends |
4% |
6% |
5% |
5% |
|
Total |
100% |
100% |
100% |
100% |
|
Sales of produced refined products: |
|||||
Gasolines |
60% |
59% |
62% |
65% |
|
Diesel fuels |
33% |
32% |
31% |
28% |
|
Jet fuels |
1% |
3% |
1% |
1% |
|
Fuel oil |
2% |
3% |
1% |
3% |
|
Asphalt |
2% |
2% |
3% |
1% |
|
LPG and other |
2% |
1% |
2% |
2% |
|
Total |
100% |
100% |
100% |
100% |
|
Tulsa Refinery (8) |
|||||
Crude charge (BPD) (1) |
114,820 |
66,230 |
112,340 |
28,300 |
|
Refinery production (BPD) (2) |
110,670 |
64,230 |
108,830 |
27,400 |
|
Sales of produced refined products (BPD) |
113,040 |
60,596 |
107,950 |
26,077 |
|
Sales of refined products (BPD) (3) |
113,040 |
60,850 |
108,560 |
26,250 |
|
Refinery utilization (4) |
91.9% |
77.9% |
89.9% |
74.5% |
|
Average per produced barrel (5) |
|||||
Net sales |
$ 89.22 |
$ 76.80 |
$ 88.91 |
$ 76.65 |
|
Cost of products (6) |
79.80 |
70.10 |
81.26 |
70.80 |
|
Refinery gross margin |
9.42 |
6.70 |
7.65 |
5.85 |
|
Refinery operating expenses (7) |
4.80 |
4.64 |
5.10 |
4.76 |
|
Net operating margin |
$ 4.62 |
$ 2.06 |
$ 2.55 |
$ 1.09 |
|
Feedstocks: |
|||||
Sour crude oil |
9% |
-% |
6% |
-% |
|
Sweet crude oil |
91% |
100% |
94% |
100% |
|
Total |
100% |
100% |
100% |
100% |
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
Sales of produced refined products: |
|||||
Gasolines |
39% |
23% |
39% |
23% |
|
Diesel fuels |
30% |
30% |
31% |
30% |
|
Jet fuels |
8% |
11% |
8% |
11% |
|
Lubricants |
10% |
18% |
10% |
18% |
|
Gas oil / intermediates |
4% |
16% |
3% |
16% |
|
Asphalt |
6% |
-% |
5% |
-% |
|
LPG and other |
3% |
2% |
4% |
2% |
|
Total |
100% |
100% |
100% |
100% |
|
Consolidated |
|||||
Crude charge (BPD) (1) |
227,370 |
179,350 |
221,360 |
130,640 |
|
Refinery production (BPD) (2) |
230,630 |
185,480 |
227,060 |
138,190 |
|
Sales of produced refined products (BPD) |
232,760 |
181,690 |
226,940 |
137,240 |
|
Sales of refined products (BPD) (3) |
235,780 |
184,570 |
230,790 |
141,890 |
|
Refinery utilization (4) |
88.8% |
83.0% |
86.5% |
80.5% |
|
Average per produced barrel (5) |
|||||
Net sales |
$ 89.25 |
$ 78.11 |
$ 89.53 |
$ 70.16 |
|
Cost of products (6) |
78.84 |
69.84 |
80.43 |
61.26 |
|
Refinery gross margin |
10.41 |
8.27 |
9.10 |
8.90 |
|
Refinery operating expenses (7) |
5.14 |
4.77 |
5.16 |
5.17 |
|
Net operating margin |
$ 5.27 |
$ 3.50 |
$ 3.94 |
$ 3.73 |
|
Feedstocks: |
|||||
Sour crude oil |
39% |
44% |
37% |
52% |
|
Sweet crude oil |
54% |
47% |
55% |
36% |
|
Black wax crude oil |
4% |
4% |
4% |
5% |
|
Other feedstocks and blends |
3% |
5% |
4% |
7% |
|
Total |
100% |
100% |
100% |
100% |
|
Sales of produced refined products: |
|||||
Gasolines |
48% |
45% |
49% |
52% |
|
Diesel fuels |
31% |
32% |
31% |
31% |
|
Jet fuels |
5% |
6% |
6% |
3% |
|
Fuel oil |
3% |
2% |
2% |
3% |
|
Asphalt |
4% |
2% |
3% |
2% |
|
Lubricants |
5% |
6% |
5% |
4% |
|
Gas oil / intermediates |
2% |
5% |
1% |
3% |
|
LPG and other |
2% |
2% |
3% |
2% |
|
Total |
100% |
100% |
100% |
100% |
|
(1) Crude charge represents the barrels per day of crude oil processed 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). Our consolidated crude capacity was increased by 15,000 BPSD effective April 1, 2009 (our Navajo refinery expansion), 85,000 BPSD effective June 1, 2009 (our Tulsa Refinery west facility acquisition) and 40,000 BPSD effective December 1, 2009 (our Tulsa refinery east facility acquisition), increasing our consolidated crude capacity to 256,000 BPSD. (5) 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. (6) Transportation, terminal and refinery storage costs billed from HEP are included in cost of products. (7) Represents operating expenses of our refineries, exclusive of depreciation and amortization. (8) The amounts reported for the Tulsa Refinery for the nine months ended September 30, 2009 include crude oil processed and products yielded from the Tulsa Refinery west facility for the period from June 1, 2009 (date of Tulsa Refinery west facility acquisition) through September 30, 2009 only, and averaged over the 273 days for the nine months ended. |
|
Operating data for the period from June 1, 2009 through September 30, 2009 is as follows: |
|||
Tulsa Refinery |
|||
Crude charge (BPD) |
63,330 |
||
Refinery production (BPD) |
61,310 |
||
Sales of produced refined products (BPD) |
58,360 |
||
Sales of refined products (BPD) |
58,740 |
||
Refinery utilization |
74.5% |
||
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 attributable to Holly Corporation stockholders 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 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.
Set forth below is our calculation of EBITDA from continuing operations.
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||
2010 |
2009 |
2010 |
2009 |
|||
(In thousands) |
||||||
Income from continuing operations |
$ 59,390 |
$ 30,177 |
$ 108,802 |
$ 72,189 |
||
Subtract noncontrolling interest in income from continuing operations |
(8,213) |
(6,964) |
(19,557) |
(13,175) |
||
Add income tax provision |
31,494 |
13,497 |
54,476 |
34,668 |
||
Add interest expense |
17,368 |
12,407 |
56,113 |
25,849 |
||
Subtract interest income |
(64) |
(231) |
(758) |
(2,561) |
||
Add depreciation and amortization |
29,138 |
24,026 |
85,719 |
69,367 |
||
EBITDA from continuing operations |
$ 129,113 |
$ 72,912 |
$ 284,795 |
$ 186,337 |
||
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 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.
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 all of our refineries on a consolidated basis is calculated as shown below.
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
Average per produced barrel: |
|||||
Navajo Refinery |
|||||
Net sales |
$ 87.60 |
$ 78.15 |
$ 88.98 |
$ 69.21 |
|
Less cost of products |
79.39 |
70.88 |
81.44 |
60.25 |
|
Refinery gross margin |
$ 8.21 |
$ 7.27 |
$ 7.54 |
$ 8.96 |
|
Woods Cross Refinery |
|||||
Net sales |
$ 94.86 |
$ 80.87 |
$ 93.71 |
$ 66.87 |
|
Less cost of products |
73.08 |
65.68 |
74.02 |
55.22 |
|
Refinery gross margin |
$ 21.78 |
$ 15.19 |
$ 19.69 |
$ 11.65 |
|
Tulsa Refinery |
|||||
Net sales |
$ 89.22 |
$ 76.80 |
$ 88.91 |
$ 76.65 |
|
Less cost of products |
79.80 |
70.10 |
81.26 |
70.80 |
|
Refinery gross margin |
$ 9.42 |
$ 6.70 |
$ 7.65 |
$ 5.85 |
|
Consolidated |
|||||
Net sales |
$ 89.25 |
$ 78.11 |
$ 89.53 |
$ 70.16 |
|
Less cost of products |
78.84 |
69.84 |
80.43 |
61.26 |
|
Refinery gross margin |
$ 10.41 |
$ 8.27 |
$ 9.10 |
$ 8.90 |
|
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 all of our refineries on a consolidated basis is calculated as shown below.
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
Average per produced barrel: |
|||||
Navajo Refinery |
|||||
Refinery gross margin |
$ 8.21 |
$ 7.27 |
$ 7.54 |
$ 8.96 |
|
Less refinery operating expenses |
5.25 |
4.37 |
5.01 |
4.88 |
|
Net operating margin |
$ 2.96 |
$ 2.90 |
$ 2.53 |
$ 4.08 |
|
Woods Cross Refinery |
|||||
Refinery gross margin |
$ 21.78 |
$ 15.19 |
$ 19.69 |
$ 11.65 |
|
Less refinery operating expenses |
6.11 |
6.44 |
5.86 |
6.45 |
|
Net operating margin |
$ 15.67 |
$ 8.75 |
$ 13.83 |
$ 5.20 |
|
Tulsa Refinery |
|||||
Refinery gross margin |
$ 9.42 |
$ 6.70 |
$ 7.65 |
$ 5.85 |
|
Less refinery operating expenses |
4.80 |
4.64 |
5.10 |
4.76 |
|
Net operating margin |
$ 4.62 |
$ 2.06 |
$ 2.55 |
$ 1.09 |
|
Consolidated |
|||||
Refinery gross margin |
$ 10.41 |
$ 8.27 |
$ 9.10 |
$ 8.90 |
|
Less refinery operating expenses |
5.14 |
4.77 |
5.16 |
5.17 |
|
Net operating margin |
$ 5.27 |
$ 3.50 |
$ 3.94 |
$ 3.73 |
|
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.
Reconciliations of refined product sales from produced products sold to total sales and other revenue |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Average sales price per produced barrel sold |
$ 87.60 |
$ 78.15 |
$ 88.98 |
$ 69.21 |
|
Times sales of produced refined products sold (BPD) |
92,180 |
93,996 |
90,730 |
84,102 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 742,897 |
$ 675,812 |
$ 2,203,971 |
$ 1,589,051 |
|
Woods Cross Refinery |
|||||
Average sales price per produced barrel sold |
$ 94.86 |
$ 80.87 |
$ 93.71 |
$ 66.87 |
|
Times sales of produced refined products sold (BPD) |
27,540 |
27,098 |
28,260 |
27,061 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 240,345 |
$ 201,610 |
$ 722,971 |
$ 494,012 |
|
Tulsa Refinery |
|||||
Average sales price per produced barrel sold |
$ 89.22 |
$ 76.80 |
$ 88.91 |
$ 76.65 |
|
Times sales of produced refined products sold (BPD) |
113,040 |
60,596 |
107,950 |
26,077 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 927,859 |
$ 428,147 |
$ 2,620,209 |
$ 545,673 |
|
Sum of refined product sales from produced products sold from our three refineries (1) |
$ 1,911,101 |
$ 1,305,569 |
$ 5,547,151 |
$ 2,628,736 |
|
Add refined product sales from purchased products and rounding (2) |
24,586 |
21,539 |
93,093 |
83,579 |
|
Total refined product sales |
1,935,687 |
1,327,108 |
5,640,244 |
2,712,315 |
|
Add direct sales of excess crude oil (3) |
106,364 |
98,540 |
355,381 |
320,416 |
|
Add other refining segment revenue (4) |
39,658 |
50,656 |
90,618 |
103,286 |
|
Total refining segment revenue |
2,081,709 |
1,476,304 |
6,086,243 |
3,136,017 |
|
Add HEP segment sales and other revenues |
46,558 |
40,805 |
132,730 |
108,136 |
|
Add corporate and other revenues |
100 |
229 |
317 |
423 |
|
Subtract consolidations and eliminations |
(37,379) |
(28,847) |
(108,152) |
(72,277) |
|
Sales and other revenues |
$ 2,090,988 |
$ 1,488,491 |
$ 6,111,138 |
$ 3,172,299 |
|
(1) 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. (2) We purchase finished products when opportunities arise that provide a profit on the sale of such products, or to meet delivery commitments. (3) 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, 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. (4) Other refining segment revenue includes the revenues associated with Holly Asphalt and revenue derived from feedstock and sulfur credit sales. |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Average sales price per produced barrel sold |
$ 89.25 |
$ 78.11 |
$ 89.53 |
$ 70.16 |
|
Times sales of produced refined products sold (BPD) |
232,760 |
181,690 |
226,940 |
137,240 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 1,911,101 |
$ 1,305,569 |
$ 5,547,151 |
$2,628,736 |
|
Reconciliation of average cost of products per produced barrel sold to total cost of products sold |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Average cost of products per produced barrel sold |
$ 79.39 |
$ 70.88 |
$ 81.44 |
$ 60.25 |
|
Times sales of produced refined products sold (BPD) |
92,180 |
93,996 |
90,730 |
84,102 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Cost of products for produced products sold |
$ 673,272 |
$ 612,944 |
$ 2,017,211 |
$ 1,383,331 |
|
Woods Cross Refinery |
|||||
Average cost of products per produced barrel sold |
$ 73.08 |
$ 65.68 |
$ 74.02 |
$ 55.22 |
|
Times sales of produced refined products sold (BPD) |
27,540 |
27,098 |
28,260 |
27,061 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Cost of products for produced products sold |
$ 185,161 |
$ 163,741 |
$ 571,063 |
$ 407,946 |
|
Tulsa Refinery |
|||||
Average cost of products per produced barrel sold |
$ 79.80 |
$ 70.10 |
$ 81.26 |
$ 70.80 |
|
Times sales of produced refined products sold (BPD) |
113,040 |
60,596 |
107,950 |
26,077 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Cost of products for produced products sold |
$ 829,894 |
$ 390,796 |
$ 2,394,761 |
$ 504,027 |
|
Sum of cost of products for produced products sold from our three refineries (1) |
$ 1,688,327 |
$1,167,481 |
$ 4,983,035 |
$ 2,295,304 |
|
Add refined product costs from purchased products sold and rounding (2) |
24,594 |
22,295 |
93,898 |
88,271 |
|
Total refined cost of products sold |
1,712,921 |
1,189,776 |
5,076,933 |
2,383,575 |
|
Add crude oil cost of direct sales of excess crude oil (3) |
105,091 |
97,400 |
351,643 |
317,954 |
|
Add other refining segment cost of products sold (4) |
25,555 |
36,282 |
56,186 |
56,685 |
|
Total refining segment cost of products sold |
1,843,567 |
1,323,458 |
5,484,762 |
2,758,214 |
|
Subtract consolidations and eliminations |
(36,523) |
(28,020) |
(105,642) |
(71,196) |
|
Costs of products sold (exclusive of depreciation and amortization) |
$ 1,807,044 |
$ 1,295,438 |
$ 5,379,120 |
$ 2,687,018 |
|
(1) The above calculations of cost of products for produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers. (2) We purchase finished products when opportunities arise that provide a profit on the sale of such products, or to meet delivery commitments. (3) 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, 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. (4) Other refining segment cost of products sold includes the cost of products for Holly Asphalt and costs attributable to feedstock and sulfur credit sales. |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Average cost of products per produced barrel sold |
$ 78.84 |
$ 69.84 |
$ 80.43 |
$ 61.26 |
|
Times sales of produced refined products sold (BPD) |
232,760 |
181,690 |
226,940 |
137,240 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Cost of products for produced products sold |
$ 1,688,327 |
$ 1,167,481 |
$ 4,983,035 |
$ 2,295,304 |
|
Reconciliation of average refinery operating expenses per produced barrel sold to total operating expenses |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Average refinery operating expenses per produced barrel sold |
$ 5.25 |
$ 4.37 |
$ 5.01 |
$ 4.88 |
|
Times sales of produced refined products sold (BPD) |
92,180 |
93,996 |
90,730 |
84,102 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refinery operating expenses for produced products sold |
$ 44,523 |
$ 37,790 |
$ 124,094 |
$ 112,044 |
|
Woods Cross Refinery |
|||||
Average refinery operating expenses per produced barrel sold |
$ 6.11 |
$ 6.44 |
$ 5.86 |
$ 6.45 |
|
Times sales of produced refined products sold (BPD) |
27,540 |
27,098 |
28,260 |
27,061 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refinery operating expenses for produced products sold |
$ 15,481 |
$ 16,055 |
$ 45,210 |
$ 47,650 |
|
Tulsa Refinery |
|||||
Average refinery operating expenses per produced barrel sold |
$ 4.80 |
$ 4.64 |
$ 5.10 |
$ 4.76 |
|
Times sales of produced refined products sold (BPD) |
113,040 |
60,596 |
107,950 |
26,077 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refinery operating expenses for produced products sold |
$ 49,918 |
$ 25,867 |
$ 150,299 |
$ 33,887 |
|
Sum of refinery operating expenses per produced products sold from our three refineries (1) |
$ 109,922 |
$ 79,712 |
$ 319,603 |
$ 193,581 |
|
Add other refining segment operating expenses and rounding (2) |
6,835 |
6,023 |
19,199 |
16,209 |
|
Total refining segment operating expenses |
116,757 |
85,735 |
338,802 |
209,790 |
|
Add HEP segment operating expenses |
13,632 |
11,103 |
40,187 |
32,076 |
|
Add corporate and other costs |
6 |
7 |
24 |
34 |
|
Subtract consolidations and eliminations |
(132) |
(128) |
(375) |
(382) |
|
Operating expenses (exclusive of depreciation and amortization) |
$ 130,263 |
$ 96,717 |
$ 378,638 |
$ 241,518 |
|
(1) 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. (2) Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses of Holly Asphalt. |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Average refinery operating expenses per produced barrel sold sold |
$ 5.14 |
$ 4.77 |
$ 5.16 |
$ 5.17 |
|
Times sales of produced refined products sold (BPD) |
232,760 |
181,690 |
226,940 |
137,240 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refinery operating expenses for produced products sold |
$ 109,922 |
$ 79,712 |
$ 319,603 |
$ 193,581 |
|
Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Net operating margin per barrel |
$ 2.96 |
$ 2.90 |
$ 2.53 |
$ 4.08 |
|
Add average refinery operating expenses per produced barrel |
5.25 |
4.37 |
5.01 |
4.88 |
|
Refinery gross margin per barrel |
8.21 |
7.27 |
7.54 |
8.96 |
|
Add average cost of products per produced barrel sold |
79.39 |
70.88 |
81.44 |
60.25 |
|
Average sales price per produced barrel sold |
$ 87.60 |
$ 78.15 |
$ 88.98 |
$ 69.21 |
|
Times sales of produced refined products sold (BPD) |
92,180 |
93,996 |
90,730 |
84,102 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 742,897 |
$ 675,812 |
$ 2,203,971 |
$ 1,589,051 |
|
Woods Cross Refinery |
|||||
Net operating margin per barrel |
$ 15.67 |
$ 8.75 |
$ 13.83 |
$ 5.20 |
|
Add average refinery operating expenses per produced barrel |
6.11 |
6.44 |
5.86 |
6.45 |
|
Refinery gross margin per barrel |
21.78 |
15.19 |
19.69 |
11.65 |
|
Add average cost of products per produced barrel sold |
73.08 |
65.68 |
74.02 |
55.22 |
|
Average sales price per produced barrel sold |
$ 94.86 |
$ 80.87 |
$ 93.71 |
$ 66.87 |
|
Times sales of produced refined products sold (BPD) |
27,540 |
27,098 |
28,260 |
27,061 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 240,345 |
$ 201,610 |
$ 722,971 |
$ 494,012 |
|
Tulsa Refinery |
|||||
Net operating margin per barrel |
$ 4.62 |
$ 2.06 |
$ 2.55 |
$ 1.09 |
|
Add average refinery operating expenses per produced barrel |
4.80 |
4.64 |
5.10 |
4.76 |
|
Refinery gross margin per barrel |
9.42 |
6.70 |
7.65 |
5.85 |
|
Add average cost of products per produced barrel sold |
79.80 |
70.10 |
81.26 |
70.80 |
|
Average sales price per produced barrel sold |
$ 89.22 |
$ 76.80 |
$ 88.91 |
$ 76.65 |
|
Times sales of produced refined products sold (BPD) |
113,040 |
60,596 |
107,950 |
26,077 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 927,859 |
$ 428,147 |
$ 2,620,209 |
$ 545,673 |
|
Sum of refined product sales from produced products sold from our three refineries (1) |
$ 1,911,101 |
$ 1,305,569 |
$ 5,547,151 |
$ 2,628,736 |
|
Add refined product sales from purchased products and rounding (2) |
24,586 |
21,539 |
93,093 |
83,579 |
|
Total refined product sales |
1,935,687 |
1,327,108 |
5,640,244 |
2,712,315 |
|
Add direct sales of excess crude oil (3) |
106,364 |
98,540 |
355,381 |
320,416 |
|
Add other refining segment revenue (4) |
39,658 |
50,656 |
90,618 |
103,286 |
|
Total refining segment revenue |
2,081,709 |
1,476,304 |
6,086,243 |
3,136,017 |
|
Add HEP segment sales and other revenues |
46,558 |
40,805 |
132,730 |
108,136 |
|
Add corporate and other revenues |
100 |
229 |
317 |
423 |
|
Subtract consolidations and eliminations |
(37,379) |
(28,847) |
(108,152) |
(72,277) |
|
Sales and other revenues |
$ 2,090,988 |
$ 1,488,491 |
$ 6,111,138 |
$ 3,172,299 |
|
(1) 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. (2) We purchase finished products when opportunities arise that provide a profit on the sale of such products or to meet delivery commitments. (3) 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, 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. (4) Other refining segment revenue includes the revenues associated with Holly Asphalt and revenue derived from feedstock and sulfur credit sales. |
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Net operating margin per barrel |
$ 5.27 |
$ 3.50 |
$ 3.94 |
$ 3.73 |
|
Add average refinery operating expenses per produced barrel |
5.14 |
4.77 |
5.16 |
5.17 |
|
Refinery gross margin per barrel |
10.41 |
8.27 |
9.10 |
8.90 |
|
Add average cost of products per produced barrel sold |
78.84 |
69.84 |
80.43 |
61.26 |
|
Average sales price per produced barrel sold |
$ 89.25 |
$ 78.11 |
$ 89.53 |
$ 70.16 |
|
Times sales of produced refined products sold (BPD) |
232,760 |
181,690 |
226,940 |
137,240 |
|
Times number of days in period |
92 |
92 |
273 |
273 |
|
Refined product sales from produced products sold |
$ 1,911,101 |
$ 1,305,569 |
$ 5,547,151 |
$2,628,736 |
|
SOURCE Holly Corporation
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