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…
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 100% Enhanced operating procedures and Maximum turnaround adjusted utilization rate practices 97.4% 95% Risk-based inspection program implementation 93.7% 90%…
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…
HOLLYFRONTIER BUSINESS PLAN A fundamentals-focused growth plan that addresses the following opportunities Running our refineries at the 75th percentile in Expected Annual Operational Availability EBITDA* (MM) (2015-2018) Creating…
REFINERY OPERATIONS Annual EBITDA opportunity of 245 MM EBITDA Refinery Reliability 90 MM Cost Reduction 105 MM Turnaround Execution 50 MM IMPROVED RELIABILITY REDUCTION IN IMPROVE AND REDUCTION IN LOST CONTROLLABLE TURNAROUND…
OPTIMIZATION Annual EBITDA opportunity of 90 MM Little or no capital investment required Driven by commercial and planning groups recognizing market opportunities Crude Supply Pipeline reversal between Navajo and Cushing increases…
CAPITAL INVESTMENTS Annual EBITDA opportunity of 365 MM Investing to drive growth and enhance returns EBITDA Large Capital Investments 165 MM LARGE CAPITAL INVESTMENTS Opportunity Capital Program 200 MM Estimated 165 MM in annual…
INVESTING TO El Dorado Naphtha Fractionation DRIVE GROWTH AND ENHANCE The Naphtha Splitter tower separates light Naphtha and Iso-pentane from the RETURNS reformer and isomerization feed using them as gasoline blending components…
INVESTING TO Woods Cross Expansion Expand crude capacity from 31,000 to DRIVE GROWTH 45,000 barrels per day AND ENHANCE Includes relocation/revamp of FCC and polymerization units from Bloomfield, NM refinery RETURNS Crude slate to…
INVESTING TO Cheyenne Hydrogen Plant The Cheyenne Plant is currently Hydrogen- DRIVE GROWTH 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** inclusive of AND ENHANCE inventory RETURNS Crude Distillation capacity of the…
DISCIPLINED APPROACH TO CAPITAL ALLOCATION SUSTAINING CAPITAL: GROWTH CAPITAL: RETURN EXCESS CASH TO SHAREHOLDERS: Maintenance capex: Focus on quick hit Committed to 125 million in annual opportunities, those maintaining best in…
BALANCE SHEET Total Debt to Capital* Investment Grade Rating Moodys Baa3 ALJ S&P BBB- WNR 626 million cash as of 6/30/15 PBF 32 million outstanding debt as MPC of 6/30/15 excludes non-recourse HEP PSX debt TSO Total debt…
STRONG TRACK RECORD OF CASH RETURNS Since the July 2011 merger HFC has returned approximately 3.2 billion, or approximately 16.96 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) 12.00 10.00 8.00 5.52 5.05 4.34 6.00 4.43 2.39 2.28 4.00 1.85 2.00 0.18 0.15 0.00 -2.00…
BEST IN CLASS RETURNS ON CAPITAL EMPLOYED Pro Forma HollyFrontier Returns on Invested Capital (Average 2010-2014) 18% 16% 15% 15% 15% 14% 13% 12% 11% 10% 9% 8% 8% 6% 4% 2% 2% 1% 0% HFC* MPC WNR* PSX DK* TSO* VLO PBF…
HOLLY ENERGY PARTNERS Operate a system of petroleum product Consistent Distribution Growth and crude pipelines, storage tanks, Despite Crude Price Volatility 0.60 160 distribution terminals and loading rack DPU* facilities located…
HOLLY ENERGY PARTNERS GROWTH DRIVERS Organic Dropdown Context Southeastern New Mexico Gathering HEP generally has right of first refusal on all logistics assets HFC builds or UNEV acquires Internal Initiatives As HFC grows, HEP is…
El DORADO NAPHTHA FRACTIONATION DROPDOWN HEP expected to purchase the newly HEP and HFC expected to enter into 15-year constructed naphtha fractionation and tolling agreements for each respective unit hydrogen generation units at…
FRONTIER PIPELINE INTEREST ACQUISITION Asset Description 296 mile, 72K bpd capacity crude pipeline from Casper, WY to Frontier Station, UT At Frontier Station, connects to SLC Pipeline (PAA/HEP JV) Sources to Frontier: Express,…
HOLLY ENERGY PARTNERS TARGET 8% ANNUAL DISTRIBUTION GROWTH RATE Estimated EBITDA Contribution vs 2014 (mm) 2015E 2016E 2017E SE NM Crude Expansion 5 5 5 UNEV Growth 4 14 15 Contractual TARIFF Increases* 6 8 14 Internal Initiatives3…
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 30.00 32.00 34.00 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 30
HOLLYFRONTIER INDEX Please see p. 35 for disclaimer and www.HollyFrontier.com/investor-relations for most current version. 31
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…
DEFINITIONS Non GAAP measurements: We report certain financial measures that are not prescribed or authorized by U. S. generally accepted accounting principles (GAAP). We discuss management's reasons for reporting these non-GAAP measures…
HFC INDEX DISCLOSURE The data on p. 31 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…
Loading...
