Investor Presentation R B C G l o b a l E n e r g y C o n f e r e n c e J U N E 2 0 1 5
OUR MISSION OUR VALUES OUR MISSION IS to be the premier U.S. petroleum HEALTH & SAFETY refining, pipeline and terminal company as measured WE PUT HEALTH AND SAFETY FIRST. by superior financial performance and sustainable, We conduct our…
FOOTPRINT OF HOLLYFRONTIER AND HOLLY ENERGY PARTNERS Collaboration with HEP Pure play inland refining company with 443,000 barrels provides strategic per day of crude capacity growth opportunities in Proximity to North American crude…
ACHIEVEMENTS AND OBJECTIVES ACHIEVEMENTS OBJECTIVES Geographically advantaged inland Continuous operational improvement refining system created with 2011 HollyFrontier merger Continued system integration Enhanced operating…
HOLLYFRONTIER INVESTMENT HIGHLIGHTS Safe and reliable operations OPERATIONS Continued system integration to drive profitability Internal investment to drive growth and enhance returns CAPITAL PROJECTS Liquid yield improvement and…
OPERATIONAL RELIABILITY Reliability Initiatives Refinery Utilization Enhanced operating procedures and 100% Maximum turnaround adjusted utilization rate practices Risk-based inspection program 95% 94.0% 94.0% implementation 93.7%…
PROXIMITY TO NORTH AMERICAN CRUDE PRODUCTION Refinery location and configuration enables a fleet-wide crude slate discounted to WTI Highly flexible refining system allows feedstock optionality Discounted feeds drive higher gross…
INVESTING TO DRIVE GROWTH AND ENHANCE RETURNS CURRENT AND POTENTIAL GROWTH INITIATIVES Internal Growth Initiatives LIQUID YIELD DE-BOTTLENECKING CRUDE SLATE IMPROVEMENT OPPORTUNITIES OPTIMIZATION Approximately 300M in Drives…
INVESTING TO El Dorado Naphtha Fractionation DRIVE GROWTH The Naphtha Splitter tower separates light Naphtha and Iso-pentane from the AND ENHANCE reformer and isomerization feed using RETURNS them as gasoline blending components Reduces…
INVESTING TO Woods Cross Expansion Phase 1 DRIVE GROWTH Expand crude capacity from 31,000 to 45,000 barrels per day AND ENHANCE Includes relocation/revamp of FCC and RETURNS polymerization units from Bloomfield, NM refinery Crude slate…
INVESTING TO Cheyenne Hydrogen Plant DRIVE GROWTH The Cheyenne Plant is currently Hydrogen- limited, which increases reformer runs, limits AND ENHANCE diesel production and reduces potential heavy crude charge rates RETURNS The project…
Tulsa Refinery Modernization: FCC INVESTING TO Revamp DRIVE GROWTH The Tulsa East and West refineries were acquired by Holly in 2009 for approximately 200m** AND ENHANCE inclusive of inventory Crude Distillation capacity of the…
BALANCE SHEET Total Debt to Capital* Investment Grade Rating WNR Moodys Baa3 S&P BBB- ALJ 1.0 billion cash as of 3/31/15 PBF 187 million outstanding debt MPC as of 3/31/15 excludes non-recourse HEP PSX debt TSO Total debt…
DISCIPLINED APPROACH TO CAPITAL ALLOCATION SUSTAINING CAPITAL: GROWTH CAPITAL: RETURN EXCESS CASH TO SHAREHOLDERS: Maintenance capex: 100 High hurdle rate on Committed to maintaining million in annual investments and both a…
STRONG TRACK RECORD OF CASH RETURNS Since the July 2011 merger HFC has returned approximately 2.9 billion, or approximately 14.87 per share to shareholders Industry leader in returning excess cash to shareholders Committed to…
STRONG FINANCIAL METRICS VS PEERS Net Income per Barrel of Crude Capacity HFC earnings per bbl strongest in peer sector (2010 2014) Regular Cash Yield* 12.00 10.00 8.00 5.52 6.00 4.86 4.43 4.34 4.00 2.28 2.20 1.84 2.00…
BEST IN CLASS RETURNS ON CAPITAL EMPLOYED Pro Forma HollyFrontier Returns on Invested Capital (Average 2010-2014) 16% 15% 15% 14% 14% 13% 12% 10% 10% 9% 8% 8% 6% 4% 2% 1% 2% 0% HFC* MPC WNR PSX DK TSO VLO PBF ALJ…
HOLLY ENERGY PARTNERS INVESTMENT HIGHLIGHTS WELL POSITIONED SUCCESSFUL FEE BASED LONG TERM ASSETS THAT SERVE EXECUTION OF REVENUES WITH NO CONTRACTS HIGH GROWTH GROWTH PLAN HAS COMMODITY RISK; SUPPORT CASH MARKETS RESULTED IN REVENUE…
HOLLY ENERGY PARTNERS PARTNERSHIP GROWTH Organic Growth Increase cash flow via logical additions to existing assets, volume growth and annual contractual PPI-related revenue growth Southeastern New Mexico Crude Gathering Expansion…
HOLLY ENERGY PARTNERS EXPECTED VISIBLE GROWTH Expected Annual Expected Incremental Revenue Timing SE NM Crude Gathering 10 mm Complete UNEV Volume Increase 15 mm 2015 - 2016(1) via SLC Refinery Expansions Contractual Tariff…
HEP GROWTH: CASH DISTRIBUTION SINCE INCEPTION Total HEP Distributions (GP and LP) Total GP Distribution 180 40.0 HFC received 36.5 approximately 158 160 81mm in cash 35.0 distributions for 144 FY2014** 140 29.4 30.0 126…
VALUE OF HFCS LP & GP INTERESTS IN HEP Methodology: GP values are equal to LP INTEREST*: quarterly GP cash flow on an annualized basis minus the HEP Unit Price 32.00 34.00 36.00 5m GP giveback for the a period of 3 years (as part of…
HollyFrontier Corporation (NYSE: HFC) 2828 N. Harwood, Suite 1300 Dallas, Texas 75201 (214) 954-6510 www.hollyfrontier.com Julia Heidenreich, VP, Investor Relations Craig Biery, Investor Relations investorshollyfrontier.com…
APPENDIX 25
HOLLYFRONTIER INDEX Please see p. 31 for disclaimer and www.HollyFrontier.com/investor-relations for most current version. 26
HOLLYFRONTIER ENTERPRISE VALUE 2015 EBITDA: Estimate Range Shares Outstanding* 196 Price per Share* 42.06 1.3B - 1.9B Market Cap 8,231 Less: Cash* (1,039) Add: Total Debt* 1,055 2015 EBITDA: Consensus Less: HEP Debt** (868)…
LOGISTICS MATTER Proximity to Crude Oil Pricing Hubs and Takeaway Infrastructure Prices reflect estimated transportation cost per barrel via pipeline, rail and marine Sources: Barclays, Credit Suisse, Deutsche Bank, Macquarie, and…
HFC INDEX DISCLOSURE The data on p. 26 is for informational purposes only and is not reflective or intended to be an indicator of HollyFrontier's past or future financial results. This data is general industry information and does not…
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