HollyFrontier Investment Highlights Pure play competitive refinery 5 refineries with 443,000 barrels per day refining capacity Attractive niche product markets with advantaged crude supply Rocky Mountains, Southwest and…
Footprint of HollyFrontier and Holly Energy Partners Collaboration with HEP provides strategic growth opportunities in logistics and marketing operations 5
Proximity to Growing North American Crude Production Refineries are well-positioned for exposure to the growing supply of lower cost domestic and Canadian crude oil North American Production Growth (mbpd) 2012 2016 % Increase All 5…
Advantaged Crude Slate Refinery location and configuration enables a fleet-wide crude slate discounted to WTI Discounted feeds drive higher gross margins / barrel and ultimately, EBITDA Highly flexible refining system allows feedstock…
Crude Price Sensitivity All HFC purchased barrels are at or below WTI price Run approximately 80,000 bpd of WCS Run approximately 90,000 bpd of WTS EPS Sensitivity to 1 Change in Differential* 0.60 0.50 Full year /share…
Focus on Safe and Reliable Operations Personal Safety Refinery Reliability OSHA 300 Recordable Incident Rate Equivalent Distillation Capacity Process Availability 97% 1.6 1.4 96% 1.2 95% 1 Employees 94% 0.8 Contractors 0.6 93%…
Strategic Investment & Acquisition Current and Potential Growth Initiatives Investment & Acquisition Strategy Strong track record of buying the right assets at the right time Woods Cross, El Dorado, and Tulsa refineries all…
Strategic Investment & Acquisition Woods Cross Expansion PROJECT ESTIMATED CAPEX PROJECTED EBITDA GENERATION* Woods Cross Phase 1 300 million 125 million Potential Woods Cross Phase 2 500 million 200 million Woods Cross Expansion:…
Capital Expenditure Overview Historical Capital Expenditure 400 377 381 400 272 290 300 Expenditures by Classification** 200 millions 100 Turnaround, Growth, 30% 20-30% - 2010 2011 2012 2013 2014E* Historical…
Strong Balance Sheet & Cash Returns Since the July 2011 merger we have returned over 2 billion in cash to shareholders 1.7 billion cash on balance as of 12/31/13 864 900 825 190 million outstanding debt excludes non-recourse HEP…
Dividend Returns to Shareholders Increased regular dividend 5 times since the merger, a 300% increase LTM Cash Yield to Shareholders** Declared 12 special dividends since the merger 7.5% Dividends Declared* 6.5% 2011 Regular…
Best In Class Returns on Capital Employed Pro Forma HollyFrontier Returns on Invested Capital (Average 2009-2013)* 14% 13% 13% 12% 11% 10% 8% 7% ROCE 6% 6% 5% 4% 4% 2% -1% -1% 0% HFC MPC PSX DK WNR TSO…
Strong Financial Metrics vs Peers Net Income per Barrel of Crude Capacity HFC earnings per bbl strongest in peer sector (2009 2013) 12.00 10.00 8.00 Dollars per barrel 6.00 4.76 3.66 2.92 4.00 2.00 1.42 1.18 2.00…
Business not Built on WTI/Brent Spread Between 2001-2010, WTI traded on average at a 1.00 PREMIUM to Brent Between 2001-2010: Average ROIC 22% Average NI/BBL 2.69 ROIC 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% 2001…
Holly Energy Partners Investment Highlights Well positioned assets that serve high growth markets Revenues are 100% fee based with no commodity ownership risk. Long-term contracts support cash flow stability HEP benefits from strong…
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 HFC Growth Partner with HollyFrontier to grow…
Holly Energy Partners Southeastern New Mexico Crude Gathering Expansion Expansion Project Improves 800 miles of pipeline in SE New Mexico Permian Production: Increased delivery capacity of up to 200 300m bpd growth 100,000 bpd…
HEP Growth: Cash Distribution Since Inception HFC received approximately 73mm in cash distributions for FY2013 160 144 140 126 120 99 100 millions 86 80 68 60 54 49 44 35 40 20 0 2005 2006 2007 2008 2009…
Value of HFCs LP & GP Interests in HEP LP INTEREST*: HEP Unit Price 30.00 32.00 34.00 HFC owns 22.4m common units (mm): 672 717 762 GP INTEREST: Quarterly GP IDR cash flow: Annualized Q4 IDR cashflow (mm): 29.9 Multiple of GP cash…
HollyFrontier Corporation Julia Heidenreich, VP, Investor Relations (NYSE: HFC) Blake Barfield, Investor Relations 2828 N. Harwood, Suite 1300 Dallas, Texas 75201 investorshollyfrontier.com 214-954-6510 (214) 954-6510…
Appendix 24
HollyFrontier Index Crude Charge 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14* 407,650 411,790 433,370 407,900 380,620 381,460 416,910 370,890 410,000 *Anticipated crude charge based on guidance given on 2/25/14 earnings call…
HollyFrontier Enterprise Value Shares Outstanding* 199 Price per Share* 48.90 Market Cap 9,731 Less: Cash* (1,665) Total Debt* 998 Less: HEP Debt** (808) Enterprise Value 8,256 HEP *** GP Value*** (550) HEP LP Value*** (700)…
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…
Feedstock Flexibility* WCS Black Wax Low WTI/WTS (2 or less) WTI 35% 52% High WTI/WCS (20 or higher) WTS 13% WTI/Brent Range (10 to 20) Low WTI/WTS (2 or less) Low WTI/WCS (8 or less) WTI/Brent Range (20 or higher) High…
Mid-Continent: El Dorado & Tulsa Refineries The Mid-Continent Region comprises our Tulsa and El Dorado Refineries and has a combined crude oil processing capacity of 260,000 BPSD. Mid-Continent Sales of Refinery Produced Products…
Southwest: Navajo Refinery The Southwest Region consists of our Navajo Refinery and has a crude oil processing capacity of 100,000 BPSD. In addition, we manufacture and market commodity and modified asphalt products through the…
Rocky Mountain: Woods Cross and Cheyenne Refineries The Rocky Mountain Region comprises of our Cheyenne and Woods Cross Refineries and has a combined crude oil processing capacity of 83,000 BPSD. Rocky Mountain Sales of Refinery…
Holly Energy Partners Holly Energy Partners owns and operates substantially all of the refined product pipeline and terminalling assets that support our refining and marketing operations in the Mid- Continent, Southwest and Rocky…
Definitions Non GAPP 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…
HFC Index Disclosure The data on p. 25 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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