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) 2013 2017 % 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…
Expanding Reach in Growing Markets Sources: Company research and the EIA. 8
Focus on Safe and Reliable Operations Personal Safety OSHA 300 Recordable Incident Rate Refinery Reliability Employees Equivalent Distillation Capacity Process Availability 1.6 Contractors 97% 1.4 1.2 96% 1 95% 0.8 0.6 94%…
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 purchased…
Strategic Investment & Acquisition Woods Cross Expansion Phase 2 PROJECT ESTIMATED CAPEX PROJECTED EBITDA GENERATION* Expected Completion Woods Cross Phase 2 750 million to 1 billion 350 million 2018+ Woods Cross Black Wax Capacity…
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 Turnaround…
Strong Balance Sheet & Cash Returns Since the July 2011 merger HFC has returned over 2.4 billion in cash to shareholders 1.8 billion cash on balance as of 6/30/14 863 900 828 190 million outstanding debt 800 excludes non-recourse…
Dividend Returns to Shareholders Increased regular dividend 6 times since the merger, a 325% increase Declared 14 special dividends since the merger LTM Cash Yield to Shareholders** 7.5% 6.3% 5.0% 4.4% 3.8% 2.9% 2.1% 1.9%…
Best In Class Returns on Capital Employed Pro Forma HollyFrontier Returns on Invested Capital (Average 2009-2013) 14% 13% 13% 12% 11% 10% 7% 8% 6% 5% ROCE 6% 4% 4% 3% 2% 0% -1% -2% HFC MPC PSX DK WNR TSO VLO…
EV/EBITDA vs Returns on Capital Employed 5 Year Average ROCE vs Enterprise Value/EBITDA 14.0% MPC HFC 12.0% PSX 10.0% 8.0% DK 5-Year ave ROCE 6.0% TSO WNR 4.0% VLO PBF 2.0% 0.0% ALJ -2.0% -4.0% - 1.0 2.0…
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 6.00 4.76 3.66 Dollars per barrel 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 ROCE 22% Average NI/BBL 2.69 ROCE 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 Leverage to Permian growth through Southeastern New Mexico Gathering system expansion Successful execution of growth plan has resulted…
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 Expected Visible Growth Expected Annual Expected Incremental Revenue Timing (1) SE NM Crude Gathering 10 mm 2H 2014 UNEV Volume Increase (2) 15 mm 2015 - 2016 via SLC Refinery Expansions (3) Contractual…
Holly Energy Partners Southeastern New Mexico Crude Gathering Expansion Permian Production projected to grow from 1.5 million BPD to over 2 million BPD by 2018 Long term, bull case scenario calls for Permian Production to reach over…
Holly Energy Partners Southeastern New Mexico Crude Gathering Expansion Expansion of Southeast New Mexico crude gathering system to 100,000 BPD Provides shippers additional capacity to Navajo Refinery Connections to major clearing…
Permian Demand and Takeaway 25
HEP Growth: Cash Distribution Since Inception Total HEP Distributions (GP and LP) Total GP Distribution 30.0 29.4 160 HFC received 144 approximately 140 73mm in cash 126 25.0 23.6 distributions for FY2013 120 20.0 99 100…
Value of HFCs LP & GP Interests in HEP LP INTEREST*: HEP Unit Price 32.00 34.00 36.00 HFC owns 22.4m common units (mm): 717 762 806 GP INTEREST: Quarterly GP IDR cash flow: Annualized Q2 IDR cashflow (mm): 32.4 Multiple of GP cash flow:…
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 29
HollyFrontier Index Crude Charge 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14* 433,370 407,900 380,620 381,460 416,910 370,890 416,210 438,960 405,000 *Anticipated crude charge based on guidance given on 8/6/14 earnings call…
HollyFrontier Enterprise Value Shares Outstanding* 199 Price per Share* 51.26 Market Cap 10,201 Less: Cash* (1,797) Add: Total Debt* 1,028 Less: HEP Debt** (839) Add: Minority Interest 593 Enterprise Value 9,186 Less: HEP GP…
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 terminaling 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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