Holly Corporation Reports Second Quarter 2010 Results
Announces Regular Quarterly Cash Dividend
DALLAS, Aug. 5 /PRNewswire-FirstCall/ -- Holly Corporation (NYSE: HOC) ("Holly" or the "Company") today reported second quarter 2010 financial results. For the quarter, net income attributable to Holly stockholders was $66.2 million ($1.24 per basic and diluted share) compared to $14.6 million ($0.29 per basic and diluted share) for the second quarter of 2009. For the six months, net income attributable to Holly stockholders was $38.1 million ($0.72 per basic and $0.71 per diluted share) compared to $36.6 million ($0.73 per basic and diluted share) for the six months ended June 30, 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 October 4, 2010 to holders of record on September 21, 2010.
For the quarter, net income attributable to our stockholders increased by $51.6 million compared to the same period of 2009. This increase was due principally to significantly higher refinery gross margins during the current year second quarter combined with increased sales volumes of produced refined products sold. Overall refinery gross margins were $11.01 per produced barrel, a 41% increase compared to $7.82 for the second quarter of 2009. For the quarter, our overall refinery production levels averaged 233,460 barrels per day ("BPD"), an increase of 65% over the same period of 2009 due to production from our Tulsa refinery facilities acquired in June and December 2009.
For the six months ended June 30, 2010, net income attributable to our stockholders increased by $1.5 million compared to the same period of 2009. This increase was due principally to increased sales volumes of produced refined products, partially offset by an overall decrease in current year-to-date refinery gross margins. Overall refinery gross margins were $8.43 per produced barrel, a 10% decrease compared to $9.41 for the first six months of 2009. For the current year-to-date period, our overall refinery production levels averaged 225,250 BPD, an increase of 96% 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 second quarter results," said Matthew Clifton, Chairman of the Board and Chief Executive Officer of Holly. "Year over year industry-wide increases in distillate cracks and improvements in our Rocky Mountain and Southwest product values relative to benchmark Gulf Coast prices combined with a substantial contribution from our 2009 Tulsa refinery acquisitions drove the strong increase in profitability in the quarter compared to the second quarter of 2009. For the quarter, EBITDA was $155 million, an increase of $99.1 million or 177% over last year's second quarter.
Our Tulsa refinery, which accounted for a little over 50% of our year over year EBITDA increase, is the combined operation of the two refineries acquired by Holly in June and December 2009. The two facilities operated in an integrated manner during the quarter utilizing an existing third-party pipeline to move intermediates between the facilities for upgrading. This phase one integration process allowed us to capture the bulk of the overall integration benefits, although at slightly higher operating expenses and subject to certain fuel balance and other constraints. Full integration is expected in the first quarter of 2011 when we expect to have installed additional pipelines between the two facilities. During the quarter, the Tulsa facility processed 118,000 barrels per day of crude oil. Strong distillate and lube oil cracks and increased lube volumes led to Tulsa operating income for the quarter of $46.7 million compared to the one month, one refinery second quarter of 2009 operating loss of $4.1 million.
With our lowest crude costs and our highest product values, our Woods Cross refinery continued to contribute nicely to earnings. Second quarter 2010 gross margins for Woods Cross were $22.36 per barrel. Margins at our Navajo and Tulsa refineries also were at good levels averaging over $9 per barrel.
Operationally, at the Navajo Refinery, production was somewhat reduced as we lined out modifications made to our crude and vacuum unit during the first quarter of 2010. In June 2010 we began processing small amounts of heavy Canadian crude to test the various modifications and additions we have made to the facility to allow for a more diverse crude slate. We plan to increase heavy Canadian crude rates over time as new equipment and modifications are lined out and economics dictate.
In July the product margin environment for our refineries remained at approximately the same level as the average for the second quarter. Looking forward, while cautiously optimistic with respect to our nation's economic recovery, we remain confident that the enhanced capabilities and scale of our assets and the markets we serve, combined with our conservative financial condition, will continue to serve our shareholders well," Clifton said.
Sales and other revenues for the second quarter of 2010 were $2,145.9 million, a 107% increase compared to the three months ended June 30, 2009. This increase was due to the effects of a 33% year-over-year increase in second quarter refined product sales prices combined with a 67% increase in volumes of produced refined products sold. The volume increase was primarily due to volumes attributable to our Tulsa refinery operations. Also included in revenues and contributing to the earnings increase for the three months ended June 30, 2010 was a final settlement received from SFPP, L.P. in June 2010 of $8.6 million that relates to tariff refunds for shipments of refined products for the period of January 1992 through May 2006. In the 2009 second quarter, we received a settlement payment of $2.9 million also related to tariff refunds. Cost of products sold was $1,848.2 million, a 110% increase compared to the three months ended June 30, 2009 due mainly to higher crude oil acquisition costs and increased volumes of produced refined products sold.
Sales and other revenues for the six months ended June 30, 2010 were $4,020.2 million, a 139% increase compared to the six months ended June 30, 2009. This increase was due to the effects of a 41% year-over-year increase in year-to-date refined product sales prices combined with a 95% 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 $3,572.1 million, a 157% increase compared to the six months ended June 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 six months ended June 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 six months ended June 30, 2010 increased by $13.8 million and $25.3 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, August 5, 2010 at 4:00 PM Eastern Time to discuss financial results. This webcast may be accessed at: http://www.videonewswire.com/event.asp?id=70657.
An audio archive of this webcast will be available using the above noted link through August 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 |
|||||
Three Months Ended |
Change from 2009 |
||||
2010 |
2009 |
Change |
Percent |
||
(In thousands, except per share data) |
|||||
Sales and other revenues |
$ 2,145,860 |
$ 1,035,778 |
$ 1,110,082 |
107.2% |
|
Operating costs and expenses: |
|||||
Cost of products sold (exclusive of depreciation and amortization) |
1,848,212 |
879,926 |
968,286 |
110.0 |
|
Operating expenses (exclusive of depreciation and amortization) |
120,831 |
78,053 |
42,778 |
54.8 |
|
General and administrative expenses (exclusive of depreciation and amortization) |
15,829 |
15,088 |
741 |
4.9 |
|
Depreciation and amortization |
28,824 |
25,260 |
3,564 |
14.1 |
|
Total operating costs and expenses |
2,013,696 |
998,327 |
1,015,369 |
101.7 |
|
Income from operations |
132,164 |
37,451 |
94,713 |
252.9 |
|
Other income (expense): |
|||||
Equity in earnings of SLC Pipeline |
544 |
488 |
56 |
11.5 |
|
Interest income |
635 |
134 |
501 |
373.9 |
|
Interest expense |
(21,023) |
(7,203) |
(13,820) |
191.9 |
|
Acquisition costs - Tulsa refinery |
- |
(1,610) |
1,610 |
(100.0) |
|
(19,844) |
(8,191) |
(11,653) |
142.3 |
||
Income from continuing operations before income taxes |
112,320 |
29,260 |
83,060 |
283.9 |
|
Income tax provision |
39,654 |
9,322 |
30,332 |
325.4 |
|
Income from continuing operations |
72,666 |
19,938 |
52,728 |
264.5 |
|
Income from discontinued operations (1) |
- |
1,206 |
(1,206) |
(100.0) |
|
Net income |
72,666 |
21,144 |
51,522 |
243.7 |
|
Less noncontrolling interest in net income |
6,504 |
6,539 |
(35) |
(0.5) |
|
Net income attributable to Holly Corporation stockholders |
$ 66,162 |
$ 14,605 |
$ 51,557 |
353.0% |
|
Earnings attributable to Holly Corporation stockholders: |
|||||
Income from continuing operations |
$ 66,162 |
$ 14,248 |
$ 51,914 |
364.4% |
|
Income from discontinued operations |
- |
357 |
(357) |
(100.0) |
|
Net income |
$ 66,162 |
$ 14,605 |
$ 51,557 |
353.0% |
|
Earnings per share attributable to Holly Corporation stockholders – basic: |
|||||
Income from continuing operations |
$ 1.24 |
$ 0.28 |
$ 0.96 |
342.9% |
|
Income from discontinued operations (1) |
- |
0.01 |
(0.01) |
(100.0) |
|
Net income |
$ 1.24 |
$ 0.29 |
$ 0.95 |
327.6% |
|
Earnings per share attributable to Holly Corporation stockholders – diluted: |
|||||
Income from continuing operations |
$ 1.24 |
$ 0.28 |
$ 0.96 |
342.9% |
|
Income from discontinued operations (1) |
- |
0.01 |
(0.01) |
(100.0) |
|
Net income |
$ 1.24 |
$ 0.29 |
$ 0.95 |
327.6% |
|
Cash dividends declared per common share |
$ 0.15 |
$ 0.15 |
$ - |
-% |
|
Average number of common shares outstanding: |
|||||
Basic |
53,206 |
50,170 |
3,036 |
6.1% |
|
Diluted |
53,408 |
50,226 |
3,182 |
6.3% |
|
EBITDA from continuing operations |
$ 155,028 |
$ 55,899 |
$ 99,129 |
177.3% |
|
Six Months Ended |
Change from 2009 |
||||
2010 |
2009 |
Change |
Percent |
||
(In thousands, except per share data) |
|||||
Sales and other revenues |
$ 4,020,150 |
$ 1,683,808 |
$ 2,336,342 |
138.8% |
|
Operating costs and expenses: |
|||||
Cost of products sold (exclusive of depreciation and amortization) |
3,572,076 |
1,391,580 |
2,180,496 |
156.7 |
|
Operating expenses (exclusive of depreciation and amortization) |
248,375 |
144,801 |
103,574 |
71.5 |
|
General and administrative expenses (exclusive of depreciation and amortization) |
33,698 |
26,844 |
6,854 |
25.5 |
|
Depreciation and amortization |
56,581 |
45,341 |
11,240 |
24.8 |
|
Total operating costs and expenses |
3,910,730 |
1,608,566 |
2,302,164 |
143.1 |
|
Income from operations |
109,420 |
75,242 |
34,178 |
45.4 |
|
Other income (expense): |
|||||
Equity in earnings of SLC Pipeline |
1,025 |
663 |
362 |
54.6 |
|
Interest income |
694 |
2,330 |
(1,636) |
(70.2) |
|
Interest expense |
(38,745) |
(13,442) |
(25,303) |
188.2 |
|
Acquisition costs - Tulsa refinery |
- |
(1,610) |
1,610 |
(100.0) |
|
(37,026) |
(12,059) |
(24,967) |
207.0 |
||
Income from continuing operations before income taxes |
72,394 |
63,183 |
9,211 |
14.6 |
|
Income tax provision |
22,982 |
21,171 |
1,811 |
8.6 |
|
Income from continuing operations |
49,412 |
42,012 |
7,400 |
17.6 |
|
Income from discontinued operations (1) |
- |
2,537 |
(2,537) |
(100.0) |
|
Net income |
49,412 |
44,549 |
4,863 |
10.9 |
|
Less noncontrolling interest in net income |
11,344 |
7,999 |
3,345 |
41.8 |
|
Net income attributable to Holly Corporation stockholders |
$ 38,068 |
$ 36,550 |
$ 1,518 |
4.2% |
|
Earnings attributable to Holly Corporation stockholders: |
|||||
Income from continuing operations |
$ 38,068 |
$ 35,801 |
$ 2,267 |
6.3% |
|
Income from discontinued operations |
- |
749 |
(749) |
(100.0) |
|
Net income |
$ 38,068 |
$ 36,550 |
$ 1,518 |
4.2% |
|
Earnings per share attributable to Holly Corporation stockholders – basic: |
|||||
Income from continuing operations |
$ 0.72 |
$ 0.71 |
$ 0.01 |
1.4% |
|
Income from discontinued operations (1) |
- |
0.02 |
(0.02) |
(100.0) |
|
Net income |
$ 0.72 |
$ 0.73 |
$ (0.01) |
(1.4)% |
|
Earnings per share attributable to Holly Corporation stockholders – diluted: |
|||||
Income from continuing operations |
$ 0.71 |
$ 0.71 |
$ 0.00 |
-% |
|
Income from discontinued operations (1) |
- |
0.02 |
(0.02) |
(100.0) |
|
Net income |
$ 0.71 |
$ 0.73 |
$ (0.02) |
(2.7)% |
|
Cash dividends declared per common share |
$ 0.30 |
$ 0.30 |
$ - |
-% |
|
Average number of common shares outstanding: |
|||||
Basic |
53,152 |
50,106 |
3,046 |
6.1% |
|
Diluted |
53,375 |
50,189 |
3,186 |
6.3% |
|
EBITDA from continuing operations |
$ 155,682 |
$ 113,425 |
$ 42,257 |
37.3% |
|
(1) On December 1, 2009, HEP sold its interest in Rio Grande. Results of operations of Rio Grande are presented in discontinued operations. |
|||||
Balance Sheet Data |
|||
June 30, |
December 31, |
||
2010 |
2009 |
||
(In thousands) |
|||
Cash, cash equivalents and investments in marketable securities |
$ 141,428 |
$ 125,819 |
|
Working capital |
$ 319,633 |
$ 257,899 |
|
Total assets |
$ 3,283,579 |
$ 3,145,939 |
|
Long-term debt |
$ 805,336 |
$ 707,458 |
|
Total equity |
$ 1,220,756 |
$ 1,207,871 |
|
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 |
Consolidations |
Consolidated |
||
(In thousands) |
||||||
Three Months Ended June 30, 2010 |
||||||
Sales and other revenues |
$ 2,137,360 |
$ 45,483 |
$ 151 |
$ (37,134) |
$ 2,145,860 |
|
Operating expenses |
$ 107,451 |
$ 13,495 |
$ 12 |
$ (127) |
$ 120,831 |
|
General and administrative expenses |
$ - |
$ 1,913 |
$ 13,916 |
$ - |
$ 15,829 |
|
Depreciation and amortization |
$ 20,599 |
$ 7,187 |
$ 1,333 |
$ (295) |
$ 28,824 |
|
Income (loss) from operations |
$ 124,548 |
$ 22,888 |
$ (15,110) |
$ (162) |
$ 132,164 |
|
Three Months Ended June 30, 2009 |
||||||
Sales and other revenues |
$ 1,019,919 |
$ 37,999 |
$ 2,979 |
$ (25,119) |
$ 1,035,778 |
|
Operating expenses |
$ 67,640 |
$ 10,631 |
$ 8 |
$ (226) |
$ 78,053 |
|
General and administrative expenses |
$ - |
$ 1,797 |
$ 13,193 |
$ 98 |
$ 15,088 |
|
Depreciation and amortization |
$ 17,832 |
$ 6,242 |
$ 1,186 |
$ - |
$ 25,260 |
|
Income (loss) from operations |
$ 29,530 |
$ 19,329 |
$ (11,408) |
$ - |
$ 37,451 |
|
Refining |
HEP |
Corporate |
Consolidations |
Consolidated |
||
(In thousands) |
||||||
Six Months Ended June 30, 2010 |
||||||
Sales and other revenues |
$ 4,004,534 |
$ 86,172 |
$ 217 |
$ (70,773) |
$ 4,020,150 |
|
Operating expenses |
$ 222,045 |
$ 26,555 |
$ 18 |
$ (243) |
$ 248,375 |
|
General and administrative expenses |
$ - |
$ 4,476 |
$ 29,222 |
$ - |
$ 33,698 |
|
Depreciation and amortization |
$ 41,325 |
$ 13,992 |
$ 1,854 |
$ (590) |
$ 56,581 |
|
Income (loss) from operations |
$ 99,969 |
$ 41,149 |
$ (30,877) |
$ (821) |
$ 109,420 |
|
Six Months Ended June 30, 2009 |
||||||
Sales and other revenues |
$ 1,656,829 |
$ 67,331 |
$ 3,078 |
$ (43,430) |
$ 1,683,808 |
|
Operating expenses |
$ 124,055 |
$ 20,973 |
$ 27 |
$ (254) |
$ 144,801 |
|
General and administrative expenses |
$ - |
$ 3,131 |
$ 23,713 |
$ - |
$ 26,844 |
|
Depreciation and amortization |
$ 29,783 |
$ 11,820 |
$ 3,738 |
$ - |
$ 45,341 |
|
Income (loss) from operations |
$ 68,235 |
$ 31,407 |
$ (24,400) |
$ - |
$ 75,242 |
|
June 30, 2010 |
||||||
Cash, cash equivalents and investments in marketable securities |
$ - |
$ 2,806 |
$ 138,622 |
$ - |
$ 141,428 |
|
Total assets |
$ 2,267,727 |
$ 671,555 |
$ 375,987 |
$ (31,690) |
$ 3,283,579 |
|
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 |
Six Months Ended |
|||||
2010 |
2009 |
2010 |
2009 |
|||
Navajo Refinery |
||||||
Crude charge (BPD) (1) |
82,370 |
85,756 |
80,650 |
71,798 |
||
Refinery production (BPD) (2) |
91,750 |
96,670 |
89,650 |
79,960 |
||
Sales of produced refined products (BPD) |
93,040 |
95,812 |
90,000 |
79,072 |
||
Sales of refined products (BPD) (3) |
96,280 |
96,342 |
93,220 |
83,809 |
||
Refinery utilization (4) |
82.4% |
85.8% |
80.7% |
71.8% |
||
Average per produced barrel (5) |
||||||
Net sales |
$ 91.21 |
$ 67.93 |
$ 89.70 |
$ 63.80 |
||
Cost of products (6) |
82.08 |
59.54 |
82.50 |
53.83 |
||
Refinery gross margin |
9.13 |
8.39 |
7.20 |
9.97 |
||
Refinery operating expenses (7) |
4.61 |
4.56 |
4.88 |
5.19 |
||
Net operating margin |
$ 4.52 |
$ 3.83 |
$ 2.32 |
$ 4.78 |
||
Feedstocks: |
||||||
Sour crude oil |
85% |
83% |
86% |
83% |
||
Sweet crude oil |
4% |
6% |
4% |
7% |
||
Other feedstocks and blends |
11% |
11% |
10% |
10% |
||
Total |
100% |
100% |
100% |
100% |
||
Three Months Ended |
Six Months Ended |
|||||
2010 |
2009 |
2010 |
2009 |
|||
Sales of produced refined products: |
||||||
Gasolines |
57% |
57% |
57% |
58% |
||
Diesel fuels |
31% |
34% |
31% |
33% |
||
Jet fuels |
5% |
1% |
4% |
1% |
||
Fuel oil |
3% |
3% |
4% |
3% |
||
Asphalt |
2% |
3% |
2% |
3% |
||
LPG and other |
2% |
2% |
2% |
2% |
||
Total |
100% |
100% |
100% |
100% |
||
Woods Cross Refinery |
||||||
Crude charge (BPD) (1) |
27,450 |
25,937 |
26,570 |
24,631 |
||
Refinery production (BPD) (2) |
28,850 |
27,699 |
27,700 |
25,505 |
||
Sales of produced refined products (BPD) |
29,070 |
27,059 |
28,620 |
27,042 |
||
Sales of refined products (BPD) (3) |
29,140 |
27,751 |
28,750 |
27,708 |
||
Refinery utilization (4) |
88.5% |
83.7% |
85.7% |
79.5% |
||
Average per produced barrel (5) |
||||||
Net sales |
$ 96.62 |
$ 69.05 |
$ 93.15 |
$ 59.74 |
||
Cost of products (6) |
74.26 |
60.10 |
74.48 |
49.90 |
||
Refinery gross margin |
22.36 |
8.95 |
18.67 |
9.84 |
||
Refinery operating expenses (7) |
5.30 |
5.98 |
5.74 |
6.45 |
||
Net operating margin |
$ 17.06 |
$ 2.97 |
$ 12.93 |
$ 3.39 |
||
Feedstocks: |
||||||
Sour crude oil |
5% |
3% |
6% |
3% |
||
Sweet crude oil |
60% |
62% |
60% |
64% |
||
Black wax crude oil |
29% |
27% |
29% |
27% |
||
Other feedstocks and blends |
6% |
8% |
5% |
6% |
||
Total |
100% |
100% |
100% |
100% |
||
Sales of produced refined products: |
||||||
Gasolines |
62% |
66% |
63% |
67% |
||
Diesel fuels |
31% |
28% |
29% |
26% |
||
Jet fuels |
1% |
-% |
1% |
-% |
||
Fuel oil |
1% |
3% |
1% |
4% |
||
Asphalt |
3% |
2% |
3% |
1% |
||
LPG and other |
2% |
1% |
3% |
2% |
||
Total |
100% |
100% |
100% |
100% |
||
Tulsa Refinery (8) |
||||||
Crude charge (BPD) (1) |
118,480 |
17,930 |
111,080 |
9,010 |
||
Refinery production (BPD) (2) |
112,860 |
17,275 |
107,900 |
9,685 |
||
Sales of produced refined products (BPD) |
111,880 |
16,971 |
105,360 |
8,532 |
||
Sales of refined products (BPD) (3) |
111,880 |
17,245 |
106,280 |
8,670 |
||
Refinery utilization (4) |
94.8% |
64.0% |
88.9% |
64.0% |
||
Average per produced barrel (5) |
||||||
Net sales |
$ 90.93 |
$ 76.14 |
$ 88.74 |
$ 76.14 |
||
Cost of products (6) |
81.32 |
73.31 |
82.05 |
73.31 |
||
Refinery gross margin |
9.61 |
2.83 |
6.69 |
2.83 |
||
Refinery operating expenses (7) |
4.70 |
5.21 |
5.26 |
5.21 |
||
Net operating margin |
$ 4.91 |
$ (2.38) |
$ 1.43 |
$ (2.38) |
||
Feedstocks: |
||||||
Sour crude oil |
8% |
-% |
5% |
-% |
||
Sweet crude oil |
92% |
100% |
95% |
100% |
||
Total |
100% |
100% |
100% |
100% |
||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
Sales of produced refined products: |
|||||
Gasolines |
37% |
23% |
39% |
23% |
|
Diesel fuels |
32% |
28% |
31% |
28% |
|
Jet fuels |
9% |
9% |
9% |
9% |
|
Lubricants |
10% |
22% |
10% |
22% |
|
Gas oil / intermediates |
3% |
16% |
3% |
16% |
|
Asphalt |
4% |
-% |
4% |
-% |
|
LPG and other |
5% |
2% |
4% |
2% |
|
Total |
100% |
100% |
100% |
100% |
|
Consolidated |
|||||
Crude charge (BPD) (1) |
228,300 |
129,623 |
218,300 |
105,443 |
|
Refinery production (BPD) (2) |
233,460 |
141,648 |
225,250 |
115,150 |
|
Sales of produced refined products (BPD) |
233,990 |
139,842 |
223,980 |
114,646 |
|
Sales of refined products (BPD) (3) |
237,300 |
141,338 |
228,250 |
120,187 |
|
Refinery utilization (4) |
89.2% |
81.5% |
85.3% |
77.0% |
|
Average per produced barrel (5) |
|||||
Net sales |
$ 91.75 |
$ 69.14 |
$ 89.69 |
$ 63.76 |
|
Cost of products (6) |
80.74 |
61.32 |
81.26 |
54.35 |
|
Refinery gross margin |
11.01 |
7.82 |
8.43 |
9.41 |
|
Refinery operating expenses (7) |
4.74 |
4.91 |
5.17 |
5.49 |
|
Net operating margin |
$ 6.27 |
$ 2.91 |
$ 3.26 |
$ 3.92 |
|
Feedstocks: |
|||||
Sour crude oil |
37% |
56% |
37% |
59% |
|
Sweet crude oil |
54% |
29% |
55% |
27% |
|
Black wax crude oil |
4% |
5% |
3% |
6% |
|
Other feedstocks and blends |
5% |
10% |
5% |
8% |
|
Total |
100% |
100% |
100% |
100% |
|
Sales of produced refined products: |
|||||
Gasolines |
48% |
54% |
49% |
58% |
|
Diesel fuels |
32% |
32% |
31% |
31% |
|
Jet fuels |
6% |
1% |
6% |
1% |
|
Fuel oil |
1% |
3% |
2% |
3% |
|
Asphalt |
3% |
3% |
3% |
2% |
|
Lubricants |
5% |
3% |
5% |
2% |
|
Gas oil / intermediates |
2% |
2% |
1% |
1% |
|
LPG and other |
3% |
2% |
3% |
2% |
|
Total |
100% |
100% |
100% |
100% |
|
(1) Crude charge represents the barrels per day of crude oil processed at our refineries. |
|
Operating data for the period from June 1, 2009 through June 30, 2009 is as follows: |
||
Tulsa Refinery |
||
Crude charge (BPD) |
54,390 |
|
Refinery production (BPD) |
52,400 |
|
Sales of produced refined products (BPD) |
51,480 |
|
Sales of refined products (BPD) |
52,310 |
|
Refinery utilization |
64.0% |
|
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 |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(In thousands) |
|||||
Income from continuing operations |
$ 72,666 |
$ 19,938 |
$ 49,412 |
$ 42,012 |
|
Subtract noncontrolling interest in income from continuing operations |
(6,504) |
(5,690) |
(11,344) |
(6,211) |
|
Add income tax provision |
39,654 |
9,322 |
22,982 |
21,171 |
|
Add interest expense |
21,023 |
7,203 |
38,745 |
13,442 |
|
Subtract interest income |
(635) |
(134) |
(694) |
(2,330) |
|
Add depreciation and amortization |
28,824 |
25,260 |
56,581 |
45,341 |
|
EBITDA from continuing operations |
$ 155,028 |
$ 55,899 |
$ 155,682 |
$ 113,425 |
|
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 |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
Average per produced barrel: |
|||||
Navajo Refinery |
|||||
Net sales |
$ 91.21 |
$ 67.93 |
$ 89.70 |
$ 63.80 |
|
Less cost of products |
82.08 |
59.54 |
82.50 |
53.83 |
|
Refinery gross margin |
$ 9.13 |
$ 8.39 |
$ 7.20 |
$ 9.97 |
|
Woods Cross Refinery |
|||||
Net sales |
$ 96.62 |
$ 69.05 |
$ 93.15 |
$ 59.74 |
|
Less cost of products |
74.26 |
60.10 |
74.48 |
49.90 |
|
Refinery gross margin |
$ 22.36 |
$ 8.95 |
$ 18.67 |
$ 9.84 |
|
Tulsa Refinery |
|||||
Net sales |
$ 90.93 |
$ 76.14 |
$ 88.74 |
$ 76.14 |
|
Less cost of products |
81.32 |
73.31 |
82.05 |
73.31 |
|
Refinery gross margin |
$ 9.61 |
$ 2.83 |
$ 6.69 |
$ 2.83 |
|
Consolidated |
|||||
Net sales |
$ 91.75 |
$ 69.14 |
$ 89.69 |
$ 63.76 |
|
Less cost of products |
80.74 |
61.32 |
81.26 |
54.35 |
|
Refinery gross margin |
$ 11.01 |
$ 7.82 |
$ 8.43 |
$ 9.41 |
|
Net Operating Margin |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
Average per produced barrel: |
|||||
Navajo Refinery |
|||||
Refinery gross margin |
$ 9.13 |
$ 8.39 |
$ 7.20 |
$ 9.97 |
|
Less refinery operating expenses |
4.61 |
4.56 |
4.88 |
5.19 |
|
Net operating margin |
$ 4.52 |
$ 3.83 |
$ 2.32 |
$ 4.78 |
|
Woods Cross Refinery |
|||||
Refinery gross margin |
$ 22.36 |
$ 8.95 |
$ 18.67 |
$ 9.84 |
|
Less refinery operating expenses |
5.30 |
5.98 |
5.74 |
6.45 |
|
Net operating margin |
$ 17.06 |
$ 2.97 |
$ 12.93 |
$ 3.39 |
|
Tulsa Refinery |
|||||
Refinery gross margin |
$ 9.61 |
$ 2.83 |
$ 6.69 |
$ 2.83 |
|
Less refinery operating expenses |
4.70 |
5.21 |
5.26 |
5.21 |
|
Net operating margin |
$ 4.91 |
$ (2.38) |
$ 1.43 |
$ (2.38) |
|
Consolidated |
|||||
Refinery gross margin |
$ 11.01 |
$ 7.82 |
$ 8.43 |
$ 9.41 |
|
Less refinery operating expenses |
4.74 |
4.91 |
5.17 |
5.49 |
|
Net operating margin |
$ 6.27 |
$ 2.91 |
$ 3.26 |
$ 3.92 |
|
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 |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Average sales price per produced barrel sold |
$ 91.21 |
$ 67.93 |
$ 89.70 |
$ 63.80 |
|
Times sales of produced refined products sold (BPD) |
93,040 |
95,812 |
90,000 |
79,072 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined product sales from produced products sold |
$ 772,242 |
$ 592,274 |
$ 1,461,213 |
$ 913,108 |
|
Woods Cross Refinery |
|||||
Average sales price per produced barrel sold |
$ 96.62 |
$ 69.05 |
$ 93.15 |
$ 59.74 |
|
Times sales of produced refined products sold (BPD) |
29,070 |
27,059 |
28,620 |
27,042 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined product sales from produced products sold |
$ 255,596 |
$ 170,027 |
$ 482,537 |
$ 292,404 |
|
Tulsa Refinery |
|||||
Average sales price per produced barrel sold |
$ 90.93 |
$ 76.14 |
$ 88.74 |
$ 76.14 |
|
Times sales of produced refined products sold (BPD) |
111,880 |
16,971 |
105,360 |
8,532 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined product sales from produced products sold |
$ 925,766 |
$ 117,588 |
$ 1,692,286 |
$ 117,582 |
|
Sum of refined products sales from produced products sold from our three refineries (1) |
$ 1,953,604 |
$ 879,889 |
$ 3,636,036 |
$1,323,094 |
|
Add refined product sales from purchased products and rounding (2) |
27,296 |
8,303 |
68,680 |
61,984 |
|
Total refined products sales |
1,980,900 |
888,192 |
3,704,716 |
1,385,078 |
|
Add direct sales of excess crude oil (3) |
114,155 |
100,621 |
249,017 |
221,876 |
|
Add other refining segment revenue (4) |
42,305 |
31,106 |
50,801 |
49,875 |
|
Total refining segment revenue |
2,137,360 |
1,019,919 |
4,004,534 |
1,656,829 |
|
Add HEP segment sales and other revenue |
45,483 |
37,999 |
86,172 |
67,331 |
|
Add corporate and other revenues |
151 |
2,979 |
217 |
3,078 |
|
Subtract consolidations and eliminations |
(37,134) |
(25,119) |
(70,773) |
(43,430) |
|
Sales and other revenues |
$ 2,145,860 |
$1,035,778 |
$ 4,020,150 |
$ 1,683,808 |
|
(1) The above calculations of refined product sales from produced products sold can also be computed on a consolidated |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Average sales price per produced barrel sold |
$ 91.75 |
$ 69.14 |
$ 89.69 |
$ 63.76 |
|
Times sales of produced refined products sold (BPD) |
233,990 |
139,842 |
223,980 |
114,646 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined product sales from produced products sold |
$ 1,953,604 |
$ 879,889 |
$ 3,636,036 |
$ 1,323,094 |
|
Reconciliation of average cost of products per produced barrel sold to total cost of products sold |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Average cost of products per produced barrel sold |
$ 82.08 |
$ 59.54 |
$ 82.50 |
$ 53.83 |
|
Times sales of produced refined products sold (BPD) |
93,040 |
95,812 |
90,000 |
79,072 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Cost of products for produced products sold |
$ 694,942 |
$ 519,123 |
$ 1,343,925 |
$ 770,417 |
|
Woods Cross Refinery |
|||||
Average cost of products per produced barrel sold |
$ 74.26 |
$ 60.10 |
$ 74.48 |
$ 49.90 |
|
Times sales of produced refined products sold (BPD) |
29,070 |
27,059 |
28,620 |
27,042 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Cost of products for produced products sold |
$ 196,445 |
$ 147,988 |
$ 385,823 |
$ 244,241 |
|
Tulsa Refinery |
|||||
Average cost of products per produced barrel sold |
$ 81.32 |
$ 73.31 |
$ 82.05 |
$ 73.31 |
|
Times sales of produced refined products sold (BPD) |
111,880 |
16,971 |
105,360 |
8,532 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Cost of products for produced products sold |
$ 827,925 |
$ 113,217 |
$ 1,564,707 |
$ 113,212 |
|
Sum of cost of products for produced products sold from our three refineries (1) |
$ 1,719,312 |
$ 780,328 |
$3,294,455 |
$ 1,127,870 |
|
Add refined product costs from purchased products sold and rounding (2) |
27,827 |
9,180 |
69,329 |
66,859 |
|
Total refined cost of products sold |
1,747,139 |
789,508 |
3,363,784 |
1,194,729 |
|
Add crude oil cost of direct sales of excess crude oil (3) |
112,885 |
99,872 |
246,552 |
220,554 |
|
Add other refining segment costs of products sold (4) |
24,738 |
15,537 |
30,859 |
19,473 |
|
Total refining segment cost of products sold |
1,884,762 |
904,917 |
3,641,195 |
1,434,756 |
|
Subtract consolidations and eliminations |
(36,550) |
(24,991) |
(69,119) |
(43,176) |
|
Costs of products sold (exclusive of depreciation and amortization) |
$ 1,848,212 |
$ 879,926 |
$ 3,572,076 |
$ 1,391,580 |
|
(1) The above calculations of cost of products for produced products sold can also be computed on a consolidated basis. These |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Average cost of products per produced barrel sold |
$ 80.74 |
$ 61.32 |
$ 81.26 |
$ 54.35 |
|
Times sales of produced refined products sold (BPD) |
233,990 |
139,842 |
223,980 |
114,646 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Cost of products for produced products sold |
$ 1,719,312 |
$ 780,328 |
$ 3,294,455 |
$ 1,127,870 |
|
Reconciliation of average refinery operating expenses per produced barrel sold to total operating expenses |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2010 |
2009 |
2010 |
2009 |
||||
(Dollars in thousands, except per barrel amounts) |
|||||||
Navajo Refinery |
|||||||
Average refinery operating expenses per produced barrel sold |
$ 4.61 |
$ 4.56 |
$ 4.88 |
$ 5.19 |
|||
Times sales of produced refined products sold (BPD) |
93,040 |
95,812 |
90,000 |
79,072 |
|||
Times number of days in period |
91 |
91 |
181 |
181 |
|||
Refinery operating expenses for produced products sold |
$ 39,031 |
$ 39,758 |
$ 79,495 |
$ 74,279 |
|||
Woods Cross Refinery |
|||||||
Average refinery operating expenses per produced barrel sold |
$ 5.30 |
$ 5.98 |
$ 5.74 |
$ 6.45 |
|||
Times sales of produced refined products sold (BPD) |
29,070 |
27,059 |
28,620 |
27,042 |
|||
Times number of days in period |
91 |
91 |
181 |
181 |
|||
Refinery operating expenses for produced products sold |
$ 14,020 |
$ 14,725 |
$ 29,734 |
$ 31,570 |
|||
Tulsa Refinery |
|||||||
Average refinery operating expenses per produced barrel sold |
$ 4.70 |
$ 5.21 |
$ 5.26 |
$ 5.21 |
|||
Times sales of produced refined products sold (BPD) |
111,880 |
16,971 |
105,360 |
8,532 |
|||
Times number of days in period |
91 |
91 |
181 |
181 |
|||
Refinery operating expenses for produced products sold |
$ 47,851 |
$ 8,046 |
$ 100,309 |
$ 8,046 |
|||
Sum of refinery operating expenses per produced products sold from our three refineries (1) |
$ 100,902 |
$ 62,529 |
$ 209,538 |
$ 113,895 |
|||
Add other refining segment operating expenses and rounding (2) |
6,549 |
5,111 |
12,507 |
10,160 |
|||
Total refining segment operating expenses |
107,451 |
67,640 |
222,045 |
124,055 |
|||
Add HEP segment operating expenses |
13,495 |
10,631 |
26,555 |
20,973 |
|||
Add corporate and other costs |
12 |
8 |
18 |
27 |
|||
Subtract consolidations and eliminations |
(127) |
(226) |
(243) |
(254) |
|||
Operating expenses (exclusive of depreciation and amortization) |
$ 120,831 |
$ 78,053 |
$ 248,375 |
$ 144,801 |
|||
(1) The above calculations of refinery operating expenses from produced products sold can also be computed on a consolidated |
|||||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Average refinery operating expenses per produced barrel sold |
$ 4.74 |
$ 4.91 |
$ 5.17 |
$ 5.49 |
|
Times sales of produced refined products sold (BPD) |
233,990 |
139,842 |
223,980 |
114,646 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refinery operating expenses for produced products sold |
$ 100,902 |
$ 62,529 |
$ 209,538 |
$ 113,895 |
|
Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Navajo Refinery |
|||||
Net operating margin per barrel |
$ 4.52 |
$ 3.83 |
$ 2.32 |
$ 4.78 |
|
Add average refinery operating expenses per produced barrel |
4.61 |
4.56 |
4.88 |
5.19 |
|
Refinery gross margin per barrel |
9.13 |
8.39 |
7.20 |
9.97 |
|
Add average cost of products per produced barrel sold |
82.08 |
59.54 |
82.50 |
53.83 |
|
Average sales price per produced barrel sold |
$ 91.21 |
$ 67.93 |
$ 89.70 |
$ 63.80 |
|
Times sales of produced refined products sold (BPD) |
93,040 |
95,812 |
90,000 |
79,072 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined products sales from produced products sold |
$ 772,242 |
$ 592,274 |
$ 1,461,213 |
$ 913,108 |
|
Woods Cross Refinery |
|||||
Net operating margin per barrel |
$ 17.06 |
$ 2.97 |
$ 12.93 |
$ 3.39 |
|
Add average refinery operating expenses per produced barrel |
5.30 |
5.98 |
5.74 |
6.45 |
|
Refinery gross margin per barrel |
22.36 |
8.95 |
18.67 |
9.84 |
|
Add average cost of products per produced barrel sold |
74.26 |
60.10 |
74.48 |
49.90 |
|
Average net sales per produced barrel sold |
$ 96.62 |
$ 69.05 |
$ 93.15 |
$ 59.74 |
|
Times sales of produced refined products sold (BPD) |
29,070 |
27,059 |
28,620 |
27,042 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined products sales from produced products sold |
$ 255,596 |
$ 170,027 |
$ 482,537 |
$ 292,404 |
|
Tulsa Refinery |
|||||
Net operating margin per barrel |
$ 4.91 |
$ (2.38) |
$ 1.43 |
$ (2.38) |
|
Add average refinery operating expenses per produced barrel |
4.70 |
5.21 |
5.26 |
5.21 |
|
Refinery gross margin per barrel |
9.61 |
2.83 |
6.69 |
2.83 |
|
Add average cost of products per produced barrel sold |
81.32 |
73.31 |
82.05 |
73.31 |
|
Average net sales per produced barrel sold |
$ 90.93 |
$ 76.14 |
$ 88.74 |
$ 76.14 |
|
Times sales of produced refined products sold (BPD) |
111,880 |
16,971 |
105,360 |
8,532 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined products sales from produced products sold |
$ 925,766 |
$ 117,588 |
$ 1,692,286 |
$ 117,582 |
|
Sum of refined products sales from produced products sold from our three refineries (1) |
$ 1,953,604 |
$ 879,889 |
$ 3,636,036 |
$ 1,323,094 |
|
Add refined product sales from purchased products and rounding (2) |
27,296 |
8,303 |
68,680 |
61,984 |
|
Total refined products sales |
1,980,900 |
888,192 |
3,704,716 |
1,385,078 |
|
Add direct sales of excess crude oil (3) |
114,155 |
100,621 |
249,017 |
221,876 |
|
Add other refining segment revenue (4) |
42,305 |
31,106 |
50,801 |
49,875 |
|
Total refining segment revenue |
2,137,360 |
1,019,919 |
4,004,534 |
1,656,829 |
|
Add HEP segment sales and other revenues |
45,483 |
37,999 |
86,172 |
67,331 |
|
Add corporate and other revenues |
151 |
2,979 |
217 |
3,078 |
|
Subtract consolidations and eliminations |
(37,134) |
(25,119) |
(70,773) |
(43,430) |
|
Sales and other revenues |
$2,145,860 |
$ 1,035,778 |
$ 4,020,150 |
$1,683,808 |
|
(1) The above calculations of refined product sales from produced products sold can also be computed on a consolidated basis. |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
(Dollars in thousands, except per barrel amounts) |
|||||
Net operating margin per barrel |
$ 6.27 |
$ 2.91 |
$ 3.26 |
$ 3.92 |
|
Add average refinery operating expenses per produced barrel |
4.74 |
4.91 |
5.17 |
5.49 |
|
Refinery gross margin per barrel |
11.01 |
7.82 |
8.43 |
9.41 |
|
Add average cost of products per produced barrel sold |
80.74 |
61.32 |
81.26 |
54.35 |
|
Average sales price per produced barrel sold |
$ 91.75 |
$ 69.14 |
$ 89.69 |
$ 63.76 |
|
Times sales of produced refined products sold (BPD) |
233,990 |
139,842 |
223,980 |
114,646 |
|
Times number of days in period |
91 |
91 |
181 |
181 |
|
Refined product sales from produced products sold |
$ 1,953,604 |
$ 879,889 |
$ 3,636,036 |
$1,323,094 |
|
SOURCE Holly Corporation
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