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INVESTOR PRESENTATION – Hollyfrontier Corporation

Hollyfrontier Corporation · Mar 25, 2015 · 40 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 1
    Investor Presentation March 2015
  2. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 2
    2
  3. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 3
    3
  4. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 4
    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…
  5. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 5
    Footprint of HollyFrontier and Holly Energy Partners Collaboration with HEP provides strategic growth opportunities in logistics and marketing operations 5
  6. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 6
    Proximity to Growing North American Crude Production Refineries are wellpositioned for exposure to the growing supply of lower cost domestic and Canadian crude oil North American Production Growth (mbpd) 2013 2014 2015 Canada 3,400…
  7. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 7
    Advantaged Crude Slate Refinery location and configuration enables a fleetwide crude slate discounted to WTI Discounted feeds drive higher gross margins / barrel and ultimately, EBITDA Highly flexible refining system allows feedstock…
  8. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 8
    Expanding Reach in Growing Markets Sources: Company research and the EIA. 8
  9. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 9
    Focus on Safe and Reliable Operations Personal Safety Refinery Reliability OSHA 300 Recordable Incident Rate Equivalent Distillation Capacity Process Availability 97% 2 96% 1.5 95% 1 94% 0.5 93% 0 92% 2011* 2012 2013 2014 2012…
  10. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 10
    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…
  11. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 11
    Strategic Investment & Acquisition Woods Cross Expansion Phase 1 PROJECT ESTIMATED CAPEX PROJECTED EBITDA GENERATION* EXPECTED COMPLETION Woods Cross Phase 1 350 400 million 125 million Q4 2015 50,000 WX Black Wax Capacity Expand…
  12. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 12
    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…
  13. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 13
    Strategic Investment & Acquisition El Dorado Naphtha Fractionation PROJECT ESTIMATED CAPEX PROJECTED EBITDA GENERATION* EXPECTED COMPLETION El Dorado Naphtha Fractionation 99 million 57 million Spring 2015 The Naphtha Splitter tower…
  14. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 14
    Strategic Investment & Acquisition Tulsa Refinery Modernization: FCC Revamp PROJECT ESTIMATED CAPEX PROJECTED EBITDA GENERATION* EXPECTED COMPLETION Tulsa FCC Modernization 20 million 20 million Fall 2015 The Tulsa East and West…
  15. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 15
    Capital Expenditure Overview Historical Capital Expenditure 800 600650 600 485 Expenditures by Classification** 377 373 400 290 272 200 Turnaround Growth 30% 2030% 2010 2011 2012 2013 2014 2015E* Maintenance +…
  16. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 16
    Strong Balance Sheet & Cash Returns Since the July 2011 merger HFC has returned approximately 2.8 billion in cash to shareholders 863 1.0 billion cash on balance as of 12/31/14 900 829 784 800 187 million outstanding debt as of…
  17. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 17
    Dividend Returns to Shareholders Committed to maintaining a competitive yield versus our peers Regular Cash Yield* Total Cash Yield** 4.0% 3.9% 12% 10.7% 3.5% 3.2% 9.1% 10% 8.4% 3.0% 2.7% 2.7% 2.6% 2.5% 8% 2.5% 2.0% 5.4%…
  18. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 18
    Best In Class Returns on Capital Employed Pro Forma HollyFrontier Returns on Invested Capital (Average 20102014) 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…
  19. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 19
    EV/EBITDA vs Returns on Capital Employed *HFC Ex-LOCM 397mm pre-tax charge in 2014 5-year average ROCE calculated by taking the average of ROCE's for the years 2010-2014. ROCE calculated as net income divided by the sum of total…
  20. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 20
    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 6.00 4.86 4.43 4.34 4.00 2.28 2.20 1.84 2.00 0.15 0.07 0.00…
  21. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 21
    Business not Built on WTI/Brent Spread Between 20012010, WTI traded on average at a 1.00 PREMIUM to Brent Between 20012010: Average ROCE 22% Average NI/BBL 2.69 ROCE 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 10.0% 2001…
  22. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 22
    Holly Energy Partners Investment Highlights Well positioned assets that serve high growth markets Leverage to Permian growth through expanded Southeastern New Mexico Gathering system Successful execution of growth plan has resulted…
  23. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 23
    Holly Energy Partners Partnership Growth Organic Growth Increase cash flow via logical additions to existing assets, volume growth and annual contractual PPIrelated revenue growth HFC Growth Partner with HollyFrontier to…
  24. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 24
    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…
  25. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 25
    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…
  26. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 26
    Permian Demand and Takeaway 26
  27. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 27
    HEP Growth: Cash Distribution Since Inception Total HEP Distributions (GP and LP) Total GP Distribution 158 160 40.0 HFC received 36.5 144 approximately 140 81mm in cash 35.0 distributions 126 for FY2014** 29.4 120 30.0 99…
  28. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 28
    Value of HFCs LP & GP Interests in HEP LP INTEREST*: HEP Unit Price 28.00 30.00 32.00 HFC owns 22.4mm common units (mm): 627 672 717 GP INTEREST: 2014 GP IDR cash flow: Annualized IDR cashflow (mm): 36.5 Multiple of GP cash flow: 15X…
  29. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 29
    HollyFrontier Corporation Julia Heidenreich, VP, Investor Relations (NYSE: HFC) Craig Biery, Investor Relations 2828 N. Harwood, Suite 1300 Dallas, Texas 75201 investorshollyfrontier.com 214-954-6510 (214) 954-6510…
  30. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 30
    Appendix 30
  31. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 31
    HollyFrontier Index Please see p. 41 for disclaimer and www.HollyFrontier.com/investor-relations for most current version. 31
  32. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 32
    HollyFrontier Enterprise Value Shares Outstanding* 196 Price per Share* 39.96 Market Cap 7,820 Less: Cash* (1,039) Add: Total Debt* 1,055 Less: HEP Debt** (868) Add: Minority Interest 577 Enterprise Value 7,545 Less: HEP GP…
  33. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 33
    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…
  34. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 34
    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)…
  35. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 35
    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…
  36. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 36
    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…
  37. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 37
    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…
  38. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 38
    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…
  39. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 39
    Financial Metrics* 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average WTI/Brent (SNAPWTIB) 1.11 1.04 2.40 3.35 1.57 0.33 (0.28) 1.34 (0.47) (0.57) 1.00 ROCE 29.1% 5.2% 7.9% 20.8% 44.0% 45.0% 45.3% 21.8% 2.3% 4.8% 22% NI/BBL…
  40. INVESTOR PRESENTATION – Hollyfrontier Corporation – slide 40
    HFC Index Disclosure The data on p. 32 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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