Three Months Ended September 30, | Change from 2020 | |||||||
2021 | 2020 | Change | Percent | |||||
(In thousands, except per share data) | ||||||||
Sales and other revenues | $ | 4,685,059 | $ | 2,819,400 | $ | 1,865,659 | 66 | % |
Operating costs and expenses: | ||||||||
Cost of products sold: | ||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)
| 3,822,858 | 2,377,238 | 1,445,620 | 61 | ||||
Lower of cost or market inventory valuation adjustment | - | (62,849) | 62,849 | (100) | ||||
3,822,858 | 2,314,389 | 1,508,469 | 65 | |||||
Operating expenses (exclusive of depreciation and amortization) | 352,520 | 332,496 | 20,024 | 6 | ||||
Selling, general and administrative expenses | 91,056 | 74,453 | 16,603 | 22 | ||||
Depreciation and amortization | 121,220 | 125,280 | (4,060) | (3) | ||||
Total operating costs and expenses | 4,387,654 | 2,846,618 | 1,541,036 | 54 | ||||
Income (loss) from operations | 297,405 | (27,218) | 324,623 | (1,193) | ||||
Other income (expense): | ||||||||
Earnings of equity method investments | 3,689 | 1,316 | 2,373 | 180 | ||||
Interest income | 1,018 | 1,011 | 7 | 1 | ||||
Interest expense | (26,892) | (30,589) | 3,697 | (12) | ||||
Gain on business interruption insurance settlement | - | 81,000 | (81,000) | (100) | ||||
Gain (loss) on foreign currency transactions | (3,492) | 1,030 | (4,522) | (439) | ||||
Gain on sale of assets and other | 85,779 | 1,368 | 84,411 | 6,170 | ||||
60,102 | 55,136 | 4,966 | 9 | |||||
Income before income taxes | 357,507 | 27,918 | 329,589 | 1,181 | ||||
Income tax expense | 54,766 | 4,573 | 50,193 | 1,098 | ||||
Net income | 302,741 | 23,345 | 279,396 | 1,197 | ||||
Less net income attributable to noncontrolling interest | 21,954 | 25,746 | (3,792) | (15) | ||||
Net income (loss) attributable to HollyFrontier stockholders | $ | 280,787 | $ | (2,401) | $ | 283,188 | (11,795) | % |
Earnings (loss) per share attributable to HollyFrontier stockholders:
| ||||||||
Basic | $ | 1.71 | $ | (0.01) | $ | 1.72 | (17,200) | % |
Diluted | $ | 1.71 | $ | (0.01) | $ | 1.72 | (17,200) | % |
Cash dividends declared per common share | $ | - | $ | 0.35 | $ | (0.35) | (100) | % |
Average number of common shares outstanding: | ||||||||
Basic | 162,551 | 162,015 | 536 | - | % | |||
Diluted | 162,551 | 162,015 | 536 | - | % | |||
EBITDA | $ | 482,647 | $ | 157,030 | $ | 325,617 | 207 | % |
Adjusted EBITDA | $ | 407,830 | $ | 65,638 | $ | 342,192 | 521 | % |
Nine Months Ended September 30, | Change from 2020 | |||||||
2021 | 2020 | Change | Percent | |||||
(In thousands, except per share data) | ||||||||
Sales and other revenues | $ | 12,766,475 | $ | 8,282,875 | $ | 4,483,600 | 54 | % |
Operating costs and expenses: | ||||||||
Cost of products sold: | ||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)
| 10,608,892 | 6,647,960 | 3,960,932 | 60 | ||||
Lower of cost or market inventory valuation adjustment | (318,862) | 227,711 | (546,573) | (240) | ||||
10,290,030 | 6,875,671 | 3,414,359 | 50 | |||||
Operating expenses (exclusive of depreciation and amortization) | 1,086,620 | 964,200 | 122,420 | 13 | ||||
Selling, general and administrative expenses
| 250,785 | 237,559 | 13,226 | 6 | ||||
Depreciation and amortization | 369,341 | 396,033 | (26,692) | (7) | ||||
Long-lived asset impairment | - | 436,908 | (436,908) | (100) | ||||
Total operating costs and expenses | 11,996,776 | 8,910,371 | 3,086,405 | 35 | ||||
Income (loss) from operations | 769,699 | (627,496) | 1,397,195 | (223) | ||||
Other income (expense): | ||||||||
Earnings of equity method investments | 8,875 | 5,186 | 3,689 | 71 | ||||
Interest income | 3,078 | 6,590 | (3,512) | (53) | ||||
Interest expense | (94,220) | (85,923) | (8,297) | 10 | ||||
Gain on business interruption insurance settlement | - | 81,000 | (81,000) | (100) | ||||
Gain on tariff settlement | 51,500 | - | 51,500 | - | ||||
Gain on sales-type leases | - | 33,834 | (33,834) | (100) | ||||
Loss on early extinguishment of debt | - | (25,915) | 25,915 | (100) | ||||
Loss on foreign currency transactions | (4,226) | (918) | (3,308) | 360 | ||||
Gain on sale of assets and other | 95,596 | 4,790 | 90,806 | 1,896 | ||||
60,603 | 18,644 | 41,959 | 225 | |||||
Income (loss) before income taxes | 830,302 | (608,852) | 1,439,154 | (236) | ||||
Income tax expense (benefit) | 149,944 | (188,504) | 338,448 | (180) | ||||
Net income (loss) | 680,358 | (420,348) | 1,100,706 | (262) | ||||
Less net income attributable to noncontrolling interest | 82,504 | 63,353 | 19,151 | 30 | ||||
Net income (loss) attributable to HollyFrontier stockholders | $ | 597,854 | $ | (483,701) | $ | 1,081,555 | (224) | % |
Earnings (loss) per share attributable to HollyFrontier stockholders:
| ||||||||
Basic | $ | 3.63 | $ | (2.99) | $ | 6.62 | (221) | % |
Diluted | $ | 3.63 | $ | (2.99) | $ | 6.62 | (221) | % |
Cash dividends declared per common share | $ | 0.35 | $ | 1.05 | $ | (0.70) | (67) | % |
Average number of common shares outstanding: | ||||||||
Basic | 162,518 | 161,927 | 591 | - | % | |||
Diluted | 162,518 | 161,927 | 591 | - | % | |||
EBITDA | $ | 1,208,281 | $ | (196,839) | $ | 1,405,120 | (714) | % |
Adjusted EBITDA | $ | 789,639 | $ | 434,118 | $ | 355,521 | 82 | % |
September 30, | December 31, | |||
2021 | 2020 | |||
(In thousands) | ||||
Cash and cash equivalents | $ | 1,481,562 | $ | 1,368,318 |
Working capital | $ | 2,310,815 | $ | 1,935,605 |
Total assets | $ | 12,897,181 | $ | 11,506,864 |
Long-term debt | $ | 3,072,352 | $ | 3,142,718 |
Total equity | $ | 6,329,539 | $ | 5,722,203 |
Refining | Lubricants and Specialty Products | HEP | Corporate, Other and Eliminations | Consolidated Total | ||||||
(In thousands) | ||||||||||
Three Months Ended September 30, 2021 | ||||||||||
Sales and other revenues:
| ||||||||||
Revenues from external customers | $ | 3,993,570 | $ | 666,033 | $ | 25,459 | $ | (3) | $ | 4,685,059 |
Intersegment revenues | 189,441 | 501 | 97,125 | (287,067) | - | |||||
$ | 4,183,011 | $ | 666,534 | $ | 122,584 | $ | (287,070) | $ | 4,685,059 | |
Cost of products sold (exclusive of lower of cost or market inventory)
| $ | 3,605,600 | $ | 482,533 | $ | - | $ | (265,275) | $ | 3,822,858 |
Operating expenses | $ | 248,316 | $ | 60,940 | $ | 42,793 | $ | 471 | $ | 352,520 |
Selling, general and administrative expenses
| $ | 32,345 | $ | 41,476 | $ | 3,849 | $ | 13,386 | $ | 91,056 |
Depreciation and amortization | $ | 77,890 | $ | 19,226 | $ | 21,627 | $ | 2,477 | $ | 121,220 |
Income (loss) from operations | $ | 218,860 | $ | 62,359 | $ | 54,315 | $ | (38,129) | $ | 297,405 |
Income (loss) before interest and income taxes
| $ | 217,438 | $ | 148,460 | $ | 58,081 | $ | (40,598) | $ | 383,381 |
Net income attributable to noncontrolling interest
| $ | - | $ | - | $ | 1,188 | $ | 20,766 | $ | 21,954 |
Earnings of equity method investments | $ | - | $ | - | $ | 3,689 | $ | - | $ | 3,689 |
Capital expenditures | $ | 40,814 | $ | 7,833 | $ | 19,217 | $ | 147,640 | $ | 215,504 |
Three Months Ended September 30, 2020 | ||||||||||
Sales and other revenues: | ||||||||||
Revenues from external customers | $ | 2,339,782 | $ | 452,878 | $ | 26,740 | $ | - | $ | 2,819,400 |
Intersegment revenues | 56,331 | 2,164 | 100,991 | (159,486) | - | |||||
$ | 2,396,113 | $ | 455,042 | $ | 127,731 | $ | (159,486) | $ | 2,819,400 | |
Cost of products sold (exclusive of lower of cost or market inventory)
| $ | 2,211,342 | $ | 302,703 | $ | - | $ | (136,807) | $ | 2,377,238 |
Lower of cost or market inventory valuation adjustment
| $ | (62,849) | $ | - | $ | - | $ | - | $ | (62,849) |
Operating expenses | $ | 256,079 | $ | 54,488 | $ | 40,003 | $ | (18,074) | $ | 332,496 |
Selling, general and administrative expenses
| $ | 30,866 | $ | 36,773 | $ | 2,332 | $ | 4,482 | $ | 74,453 |
Depreciation and amortization | $ | 79,146 | $ | 17,432 | $ | 24,109 | $ | 4,593 | $ | 125,280 |
Income (loss) from operations | $ | (118,471) | $ | 43,646 | $ | 61,287 | $ | (13,680) | $ | (27,218) |
Income (loss) before interest and income taxes
| $ | (118,471) | $ | 43,120 | $ | 70,067 | $ | 62,780 | $ | 57,496 |
Net income attributable to noncontrolling interest
| $ | - | $ | - | $ | 2,293 | $ | 23,453 | $ | 25,746 |
Earnings of equity method investments | $ | - | $ | - | $ | 1,316 | $ | - | $ | 1,316 |
Capital expenditures | $ | 41,740 | $ | 6,995 | $ | 7,902 | $ | 26,635 | $ | 83,272 |
Refining | Lubricants and Specialty Products | HEP |
Corporate, Other and Eliminations |
Consolidated Total | ||||||
(In thousands) | ||||||||||
Nine Months Ended September 30, 2021 | ||||||||||
Sales and other revenues: | ||||||||||
Revenues from external customers | $ | 10,837,876 | $ | 1,850,786 | $ | 77,809 | $ | 4 | $ | 12,766,475 |
Intersegment revenues | 455,089 | 9,500 | 298,193 | (762,782) | - | |||||
$ | 11,292,965 | $ | 1,860,286 | $ | 376,002 | $ | (762,778) | $ | 12,766,475 | |
Cost of products sold (exclusive of lower of cost or market inventory) | $ | 9,986,862 | $ | 1,305,274 | $ | - | $ | (683,244) | $ | 10,608,892 |
Lower of cost or market inventory valuation adjustment | $ | (318,353) | $ | - | $ | - | $ | (509) | $ | (318,862) |
Operating expenses | $ | 772,593 | $ | 183,003 | $ | 126,226 | $ | 4,798 | $ | 1,086,620 |
Selling, general and administrative expenses | $ | 90,977 | $ | 124,612 | $ | 9,664 | $ | 25,532 | $ | 250,785 |
Depreciation and amortization | $ | 245,910 | $ | 58,499 | $ | 66,908 | $ | (1,976) | $ | 369,341 |
Income (loss) from operations | $ | 514,976 | $ | 188,898 | $ | 173,204 | $ | (107,379) | $ | 769,699 |
Income (loss) before interest and income taxes | $ | 513,226 | $ | 275,538 | $ | 212,750 | $ | (80,070) | $ | 921,444 |
Net income attributable to noncontrolling interest | $ | - | $ | - | $ | 4,027 | $ | 78,477 | $ | 82,504 |
Earnings of equity method investments | $ | - | $ | - | $ | 8,875 | $ | - | $ | 8,875 |
Capital expenditures | $ | 114,325 | $ | 17,534 | $ | 76,933 | $ | 339,553 | $ | 548,345 |
Nine Months Ended September 30, 2020 | ||||||||||
Sales and other revenues: | ||||||||||
Revenues from external customers | $ | 6,880,444 | $ | 1,330,021 | $ | 72,410 | $ | - | $ | 8,282,875 |
Intersegment revenues | $ | 178,039 | $ | 8,911 | $ | 297,982 | $ | (484,932) | $ | - |
$ | 7,058,483 | $ | 1,338,932 | $ | 370,392 | $ | (484,932) | $ | 8,282,875 | |
Cost of products sold (exclusive of lower of cost or market inventory) | $ | 6,113,530 | $ | 952,430 | $ | - | $ | (418,000) | $ | 6,647,960 |
Lower of cost or market inventory valuation adjustment | $ | 227,711 | $ | - | $ | - | $ | - | $ | 227,711 |
Operating expenses | $ | 754,612 | $ | 156,459 | $ | 109,721 | $ | (56,592) | $ | 964,200 |
Selling, general and administrative expenses | $ | 94,677 | $ | 121,654 | $ | 7,569 | $ | 13,659 | $ | 237,559 |
Depreciation and amortization | $ | 251,019 | $ | 59,260 | $ | 72,095 | $ | 13,659 | $ | 396,033 |
Long-lived asset impairment | $ | 215,242 | $ | 204,708 | $ | 16,958 | $ | - | $ | 436,908 |
Income (loss) from operations | $ | (598,308) | $ | (155,579) | $ | 164,049 | $ | (37,658) | $ | (627,496) |
Income (loss) before interest and income taxes | $ | (598,308) | $ | (155,847) | $ | 185,593 | $ | 39,043 | $ | (529,519) |
Net income attributable to noncontrolling interest | $ | - | $ | - | $ | 4,158 | $ | 59,195 | $ | 63,353 |
Earnings of equity method investments | $ | - | $ | - | $ | 5,186 | $ | - | $ | 5,186 |
Capital expenditures | $ | 106,856 | $ | 20,387 | $ | 38,642 | $ | 47,123 | $ | 213,008 |
Refining | Lubricants and Specialty Products | HEP | Corporate, Other and Eliminations | Consolidated Total | ||||||
(In thousands) | ||||||||||
September 30, 2021 | ||||||||||
Cash and cash equivalents
| $ | 18,056 | $ | 218,970 | $ | 12,816 | $ | 1,231,720 | $ | 1,481,562 |
Total assets | $ | 7,266,496 | $ | 2,119,076 | $ | 2,236,091 | $ | 1,275,518 | $ | 12,897,181 |
Long-term debt | $ | - | $ | - | $ | 1,333,309 | $ | 1,739,043 | $ | 3,072,352 |
December 31, 2020 | ||||||||||
Cash and cash equivalents
| $ | 3,106 | $ | 163,729 | $ | 21,990 | $ | 1,179,493 | $ | 1,368,318 |
Total assets | $ | 6,203,847 | $ | 1,864,313 | $ | 2,198,478 | $ | 1,240,226 | $ | 11,506,864 |
Long-term debt | $ | - | $ | - | $ | 1,405,603 | $ | 1,737,115 | $ | 3,142,718 |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Mid-Continent Region (El Dorado and Tulsa Refineries)
| ||||||||
Crude charge (BPD) (1)
| 280,220 | 244,200 | 258,530 | 234,550 | ||||
Refinery throughput (BPD) (2)
| 294,970 | 257,280 | 272,770 | 249,430 | ||||
Sales of produced refined products (BPD) (3)
| 277,310 | 243,830 | 258,800 | 239,800 | ||||
Refinery utilization (4)
| 107.8 | % | 93.9 | % | 99.4 | % | 90.2 | % |
Average per produced barrel (5)
| ||||||||
Refinery gross margin | $ | 13.59 | $ | 3.21 | $ | 10.65 | $ | 6.41 |
Refinery operating expenses (6)
| 5.72 | 5.47 | 6.68 | 5.47 | ||||
Net operating margin | $ | 7.87 | $ | (2.26) | $ | 3.97 | $ | 0.94 |
Refinery operating expenses per throughput barrel (7)
| $ | 5.37 | $ | 5.19 | $ | 6.33 | $ | 5.26 |
Feedstocks: | ||||||||
Sweet crude oil | 66 | % | 62 | % | 63 | % | 58 | % |
Sour crude oil | 13 | % | 18 | % | 14 | % | 19 | % |
Heavy sour crude oil | 16 | % | 15 | % | 18 | % | 17 | % |
Other feedstocks and blends | 5 | % | 5 | % | 5 | % | 6 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Sales of produced refined products: | ||||||||
Gasolines | 52 | % | 53 | % | 51 | % | 52 | % |
Diesel fuels | 32 | % | 35 | % | 33 | % | 34 | % |
Jet fuels | 5 | % | 3 | % | 5 | % | 4 | % |
Fuel oil | 1 | % | 1 | % | 1 | % | 1 | % |
Asphalt | 4 | % | 2 | % | 3 | % | 3 | % |
Base oils | 4 | % | 4 | % | 4 | % | 4 | % |
LPG and other | 2 | % | 2 | % | 3 | % | 2 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
West Region (Navajo and Woods Cross Refineries) | ||||||||
Crude charge (BPD) (1)
| 136,210 | 131,680 | 135,370 | 125,710 | ||||
Refinery throughput (BPD) (2)
| 149,760 | 146,860 | 148,700 | 139,710 | ||||
Sales of produced refined products (BPD) (3)
| 144,710 | 144,970 | 148,410 | 142,740 | ||||
Refinery utilization (4)
| 93.9 | % | 90.8 | % | 93.4 | % | 86.7 | % |
Average per produced barrel (5)
| ||||||||
Refinery gross margin | $ | 17.33 | $ | 11.24 | $ | 13.67 | $ | 12.01 |
Refinery operating expenses (6)
| 7.70 | 6.88 | 7.43 | 7.01 | ||||
Net operating margin | $ | 9.63 | $ | 4.36 | $ | 6.24 | $ | 5.00 |
Refinery operating expenses per throughput barrel (7)
| $ | 7.44 | $ | 6.79 | $ | 7.41 | $ | 7.16 |
Feedstocks: | ||||||||
Sweet crude oil | 22 | % | 30 | % | 22 | % | 30 | % |
Sour crude oil | 58 | % | 48 | % | 59 | % | 49 | % |
Black wax crude oil | 11 | % | 12 | % | 10 | % | 11 | % |
Other feedstocks and blends | 9 | % | 10 | % | 9 | % | 10 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Sales of produced refined products: | ||||||||
Gasolines | 51 | % | 57 | % | 52 | % | 56 | % |
Diesel fuels | 39 | % | 34 | % | 38 | % | 35 | % |
Fuel oil | 3 | % | 2 | % | 3 | % | 2 | % |
Asphalt | 5 | % | 6 | % | 4 | % | 5 | % |
LPG and other | 2 | % | 1 | % | 3 | % | 2 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Consolidated | ||||||||
Crude charge (BPD) (1)
| 416,430 | 375,880 | 393,900 | 360,260 | ||||
Refinery throughput (BPD) (2)
| 444,730 | 404,140 | 421,470 | 389,140 | ||||
Sales of produced refined products (BPD) (3)
| 422,020 | 388,800 | 407,210 | 382,540 | ||||
Refinery utilization (4)
| 102.8 | % | 92.8 | % | 97.3 | % | 89.0 | % |
Average per produced barrel (5)
| ||||||||
Refinery gross margin | $ | 14.87 | $ | 6.20 | $ | 11.75 | $ | 8.50 |
Refinery operating expenses (6)
| 6.40 | 6.00 | 6.95 | 6.04 | ||||
Net operating margin | $ | 8.47 | $ | 0.20 | $ | 4.80 | $ | 2.46 |
Refinery operating expenses per throughput barrel (7)
| $ | 6.07 | $ | 5.77 | $ | 6.71 | $ | 5.94 |
Feedstocks: | ||||||||
Sweet crude oil | 51 | % | 51 | % | 49 | % | 48 | % |
Sour crude oil | 28 | % | 28 | % | 29 | % | 30 | % |
Heavy sour crude oil | 11 | % | 10 | % | 12 | % | 11 | % |
Black wax crude oil | 4 | % | 4 | % | 4 | % | 4 | % |
Other feedstocks and blends | 6 | % | 7 | % | 6 | % | 7 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Consolidated | ||||||||
Sales of produced refined products: | ||||||||
Gasolines | 51 | % | 54 | % | 52 | % | 54 | % |
Diesel fuels | 35 | % | 35 | % | 35 | % | 34 | % |
Jet fuels | 3 | % | 2 | % | 3 | % | 2 | % |
Fuel oil | 2 | % | 1 | % | 1 | % | 1 | % |
Asphalt | 4 | % | 4 | % | 4 | % | 4 | % |
Base oils | 3 | % | 2 | % | 2 | % | 3 | % |
LPG and other | 2 | % | 2 | % | 3 | % | 2 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Lubricants and Specialty Products | ||||||||
Throughput (BPD) | 18,260 | 19,020 | 29,140 | 19,050 | ||||
Sales of produced products (BPD) | 31,700 | 33,560 | 33,640 | 32,460 | ||||
Sales of produced products: | ||||||||
Finished products | 53 | % | 50 | % | 52 | % | 51 | % |
Base oils | 28 | % | 27 | % | 28 | % | 24 | % |
Other | 19 | % | 23 | % | 20 | % | 25 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Rack Back (1)
|
Rack Forward (2)
|
Eliminations (3)
| Total Lubricants and Specialty Products | |||||
(In thousands) | ||||||||
Three months ended September 30, 2021 | ||||||||
Sales and other revenues
| $ | 270,207 | $ | 634,654 | $ | (238,327) | $ | 666,534 |
Cost of products sold
| $ | 148,171 | $ | 572,689 | $ | (238,327) | $ | 482,533 |
Operating expenses | $ | 29,046 | $ | 31,894 | $ | - | $ | 60,940 |
Selling, general and administrative expenses | $ | 7,058 | $ | 34,418 | $ | - | $ | 41,476 |
Depreciation and amortization | $ | 6,375 | $ | 12,851 | $ | - | $ | 19,226 |
Income (loss) from operations | $ | 79,557 | $ | (17,198) | $ | - | $ | 62,359 |
Income (loss) before interest and income taxes | $ | 165,575 | $ | (17,115) | $ | - | $ | 148,460 |
EBITDA | $ | 171,950 | $ | (4,264) | $ | - | $ | 167,686 |
Three months ended September 30, 2020 | ||||||||
Sales and other revenues | $ | 110,952 | $ | 423,418 | $ | (79,328) | $ | 455,042 |
Cost of products sold
| $ | 98,033 | $ | 283,998 | $ | (79,328) | $ | 302,703 |
Operating expenses | $ | 25,400 | $ | 29,088 | $ | - | $ | 54,488 |
Selling, general and administrative expenses | $ | 5,616 | $ | 31,157 | $ | - | $ | 36,773 |
Depreciation and amortization | $ | 5,419 | $ | 12,013 | $ | - | $ | 17,432 |
Income (loss) from operations | $ | (23,516) | $ | 67,162 | $ | - | $ | 43,646 |
Income (loss) before interest and income taxes | $ | (23,516) | $ | 66,636 | $ | - | $ | 43,120 |
EBITDA | $ | (18,097) | $ | 78,649 | $ | - | $ | 60,552 |
Nine months ended September 30, 2021 | ||||||||
Sales and other revenues | $ | 698,134 | $ | 1,747,111 | $ | (584,959) | $ | 1,860,286 |
Cost of products sold
| $ | 443,983 | $ | 1,446,250 | $ | (584,959) | $ | 1,305,274 |
Operating expenses | $ | 86,773 | $ | 96,230 | $ | - | $ | 183,003 |
Selling, general and administrative expenses | $ | 19,711 | $ | 104,901 | $ | - | $ | 124,612 |
Depreciation and amortization | $ | 19,910 | $ | 38,589 | $ | - | $ | 58,499 |
Income from operations | $ | 127,757 | $ | 61,141 | $ | - | $ | 188,898 |
Income before interest and income taxes | $ | 213,775 | $ | 61,763 | $ | - | $ | 275,538 |
EBITDA | $ | 233,685 | $ | 100,352 | $ | - | $ | 334,037 |
Nine months ended September 30, 2020 | ||||||||
Sales and other revenues | $ | 361,638 | $ | 1,241,402 | $ | (264,108) | $ | 1,338,932 |
Cost of products sold
| $ | 345,843 | $ | 870,695 | $ | (264,108) | $ | 952,430 |
Operating expenses | $ | 69,703 | $ | 86,756 | $ | - | $ | 156,459 |
Selling, general and administrative expenses | $ | 16,596 | $ | 105,058 | $ | - | $ | 121,654 |
Depreciation and amortization | $ | 22,163 | $ | 37,097 | $ | - | $ | 59,260 |
Long-lived asset impairment | $ | 167,017 | $ | 37,691 | $ | - | $ | 204,708 |
Income (loss) from operations | $ | (259,684) | $ | 104,105 | $ | - | $ | (155,579) |
Income (loss) before interest and income taxes | $ | (259,684) | $ | 103,837 | $ | - | $ | (155,847) |
EBITDA | $ | (237,521) | $ | 140,934 | $ | - | $ | (96,587) |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(In thousands) | ||||||||
Net income (loss) attributable to HollyFrontier stockholders
| $ | 280,787 | $ | (2,401) | $ | 597,854 | $ | (483,701) |
Add interest expense | 26,892 | 30,589 | 94,220 | 85,923 | ||||
Subtract interest income | (1,018) | (1,011) | (3,078) | (6,590) | ||||
Add (subtract) income tax expense (benefit) | 54,766 | 4,573 | 149,944 | (188,504) | ||||
Add depreciation and amortization | 121,220 | 125,280 | 369,341 | 396,033 | ||||
EBITDA | $ | 482,647 | $ | 157,030 | $ | 1,208,281 | $ | (196,839) |
Add (subtract) lower of cost or market inventory valuation adjustment
| - | (62,849) | (318,862) | 227,711 | ||||
Subtract gain on sale of real property | (86,018) | - | (86,018) | - | ||||
Subtract HollyFrontier's pro-rata share of gain on business interruption insurance settlement | - | (77,143) | - | (77,143) | ||||
Add long-lived asset impairment, inclusive of pro-rata share of impairment in HEP segment | - | - | - | 429,540 | ||||
Subtract HollyFrontier's pro-rata share of HEP's gain on sales-type leases
| - | - | - | (19,134) | ||||
Add HollyFrontier's pro-rata share of HEP's loss on early extinguishment of debt
| - | - | - | 14,656 | ||||
Add severance costs | 198 | 2,429 | 906 | 3,546 | ||||
Add restructuring charges | - | - | 7,813 | 3,679 | ||||
Add Cheyenne Refinery LIFO inventory liquidation costs | - | 33,814 | 923 | 33,814 | ||||
Add decommissioning costs | 6,714 | 12,309 | 23,061 | 12,309 | ||||
Add pre-close acquisition integration costs | 4,289 | - | 5,035 | - | ||||
Add acquisition integration and regulatory costs | - | 48 | - | 1,979 | ||||
Subtract gain on tariff settlement | - | - | (51,500) | - | ||||
Adjusted EBITDA | $ | 407,830 | $ | 65,638 | $ | 789,639 | $ | 434,118 |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
Refining Segment | 2021 | 2020 | 2021 | 2020 | ||||
(In thousands) | ||||||||
Income (loss) from before interest and income taxes (1)
| $ | 217,438 | $ | (118,471) | $ | 513,226 | $ | (598,308) |
Add depreciation and amortization | 77,890 | 79,146 | 245,910 | 251,019 | ||||
EBITDA | 295,328 | (39,325) | 759,136 | (347,289) | ||||
Add (subtract) lower of cost or market inventory valuation adjustment | - | (62,849) | (318,353) | 227,711 | ||||
Add long-lived asset impairment | - | - | - | 215,242 | ||||
Add severance costs | - | 2,429 | - | 3,546 | ||||
Add restructuring charges | - | - | - | 2,009 | ||||
Add Cheyenne Refinery LIFO inventory liquidation costs | - | 33,814 | - | 33,814 | ||||
Add decommissioning costs | - | 12,309 | - | 12,309 | ||||
Adjusted EBITDA | $ | 295,328 | $ | (53,622) | $ | 440,783 | $ | 147,342 |
Lubricants and Specialty Products Segment | Rack Back | Rack Forward | Total Lubricants and Specialty Products | |||
(In thousands) | ||||||
Three months ended September 30, 2021 | ||||||
Income before interest and income taxes (1)
| $ | 165,575 | $ | (17,115) | $ | 148,460 |
Add depreciation and amortization
| 6,375 | 12,851 | 19,226 | |||
EBITDA | 171,950 | (4,264) | 167,686 | |||
Subtract gain on sale of real property | (86,018) | - | (86,018) | |||
Adjusted EBITDA | $ | 85,932 | $ | (4,264) | $ | 81,668 |
Three months ended September 30, 2020 | ||||||
Income (loss) before interest and income taxes (1)
| $ | (23,516) | $ | 66,636 | $ | 43,120 |
Add depreciation and amortization
| 5,419 | 12,013 | 17,432 | |||
EBITDA | (18,097) | 78,649 | 60,552 |
Lubricants and Specialty Products Segment | Rack Back | Rack Forward | Total Lubricants and Specialty Products | |||
(In thousands) | ||||||
Nine months ended September 30, 2021 | ||||||
Income before interest and income taxes (1)
| $ | 213,775 | $ | 61,763 | $ | 275,538 |
Add depreciation and amortization
| 19,910 | 38,589 | 58,499 | |||
EBITDA | 233,685 | 100,352 | 334,037 | |||
Subtract gain on sale of real property | (86,018) | - | (86,018) | |||
Add restructuring charges | 1,079 | 6,734 | 7,813 | |||
Adjusted EBITDA | $ | 148,746 | $ | 107,086 | $ | 255,832 |
Nine months ended September 30, 2020 | ||||||
Income (loss) before interest and income taxes (1)
| $ | (259,684) | $ | 103,837 | $ | (155,847) |
Add depreciation and amortization
| 22,163 | 37,097 | 59,260 | |||
EBITDA | (237,521) | 140,934 | (96,587) | |||
Add long-lived asset impairment | 167,017 | 37,691 | 204,708 | |||
Adjusted EBITDA | $ | (70,504) | $ | 178,625 | $ | 108,121 |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands, except per barrel amounts) | ||||||||
Consolidated | ||||||||
Net operating margin per produced barrel sold | $ | 8.47 | $ | 0.20 | $ | 4.80 | $ | 2.46 |
Add average refinery operating expenses per produced barrel sold
| 6.40 | 6.00 | 6.95 | 6.04 | ||||
Refinery gross margin per produced barrel sold | $ | 14.87 | $ | 6.20 | $ | 11.75 | $ | 8.50 |
Times produced barrels sold (BPD) | 422,020 | 388,800 | 407,210 | 382,540 | ||||
Times number of days in period | 92 | 92 | 273 | 274 | ||||
Refining gross margin | $ | 577,340 | $ | 221,772 | $ | 1,306,228 | $ | 890,936 |
Add (subtract) rounding | 71 | 164 | (125) | 61 | ||||
West and Mid-Continent regions gross margin | 577,411 | 221,936 | 1,306,103 | 890,997 | ||||
Add West and Mid-Continent regions cost of products sold | 3,605,600 | 2,043,361 | 9,986,862 | 5,665,897 | ||||
Add Cheyenne refinery sales and other revenues | - | 130,816 | - | 501,589 | ||||
Refining segment sales and other revenues | 4,183,011 | 2,396,113 | 11,292,965 | 7,058,483 | ||||
Add Lubricants and Specialty Products segment sales and other revenues | 666,534 | 455,042 | 1,860,286 | 1,338,932 | ||||
Add HEP segment sales and other revenues | 122,584 | 127,731 | 376,002 | 370,392 | ||||
Subtract corporate, other and eliminations | (287,070) | (159,486) | (762,778) | (484,932) | ||||
Sales and other revenues | $ | 4,685,059 | $ | 2,819,400 | $ | 12,766,475 | $ | 8,282,875 |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands, except per barrel amounts) | ||||||||
Consolidated | ||||||||
Average operating expenses per produced barrel sold | $ | 6.40 | $ | 6.00 | $ | 6.95 | $ | 6.04 |
Times produced barrels sold (BPD) | 422,020 | 388,800 | 407,210 | 382,540 | ||||
Times number of days in period | 92 | 92 | 273 | 274 | ||||
Refining operating expenses | $ | 248,485 | $ | 214,618 | $ | 772,620 | $ | 633,088 |
Add (subtract) rounding | (169) | (97) | (27) | 373 | ||||
West and Mid-Continent regions operating expenses | 248,316 | 214,521 | 772,593 | 633,461 | ||||
Add Cheyenne Refinery operating expenses | - | 41,558 | - | 121,151 | ||||
Refining segment operating expenses | 248,316 | 256,079 | 772,593 | 754,612 | ||||
Add Lubricants and Specialty Products segment operating expenses | 60,940 | 54,488 | 183,003 | 156,459 | ||||
Add HEP segment operating expenses | 42,793 | 40,003 | 126,226 | 109,721 | ||||
Subtract corporate, other and eliminations | 471 | (18,074) | 4,798 | (56,592) | ||||
Operating expenses (exclusive of depreciation and amortization)
| $ | 352,520 | $ | 332,496 | $ | 1,086,620 | $ | 964,200 |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(In thousands, except per share amounts) | ||||||||
Consolidated | ||||||||
GAAP: | ||||||||
Income (loss) before income taxes
| $ | 357,507 | $ | 27,918 | $ | 830,302 | $ | (608,852) |
Income tax expense (benefit) | 54,766 | 4,573 | 149,944 | (188,504) | ||||
Net income (loss) | 302,741 | 23,345 | 680,358 | (420,348) | ||||
Less net income attributable to noncontrolling interest | 21,954 | 25,746 | 82,504 | 63,353 | ||||
Net income (loss) attributable to HollyFrontier stockholders | 280,787 | (2,401) | 597,854 | (483,701) | ||||
Non-GAAP adjustments to arrive at adjusted results:
| ||||||||
Lower of cost or market inventory valuation adjustment | - | (62,849) | (318,862) | 227,711 | ||||
Gain on sale of real property | (86,018) | - | (86,018) | - | ||||
Gain on business interruption insurance settlement | - | (81,000) | - | (81,000) | ||||
Long-lived asset impairment | - | - | - | 436,908 | ||||
HEP's gain on sales-type leases | - | - | - | (33,834) | ||||
HEP's loss on early extinguishment of debt | - | - | - | 25,915 | ||||
Severance costs | 198 | 2,429 | 906 | 3,546 | ||||
Restructuring charges | - | - | 7,813 | 3,679 | ||||
Cheyenne Refinery LIFO inventory liquidation costs | - | 33,814 | 923 | 33,814 | ||||
Decommissioning costs | 6,714 | 12,309 | 23,061 | 12,309 | ||||
Pre-close acquisition integration costs | 4,289 | - | 5,035 | - | ||||
Acquisition integration and regulatory costs | - | 48 | - | 1,979 | ||||
Gain on tariff settlement | - | - | (51,500) | - | ||||
Total adjustments to income (loss) before income taxes | (74,817) | (95,249) | (418,642) | 631,027 | ||||
Adjustment to income tax expense (benefit) (1)
| (3,979) | (26,907) | (88,493) | 168,497 | ||||
Adjustment to net income attributable to noncontrolling interest | - | (3,857) | - | 70 | ||||
Total adjustments, net of tax | (70,838) | (64,485) | (330,149) | 462,460 | ||||
Adjusted results - Non-GAAP: | ||||||||
Adjusted income (loss) before income taxes | 282,690 | (67,331) | 411,660 | 22,175 | ||||
Adjusted income tax expense (benefit) (2)
| 50,787 | (22,334) | 61,451 | (20,007) | ||||
Adjusted net income (loss) | 231,903 | (44,997) | 350,209 | 42,182 | ||||
Less net income attributable to noncontrolling interest | 21,954 | 21,889 | 82,504 | 63,423 | ||||
Adjusted net income (loss) attributable to HollyFrontier stockholders | $ | 209,949 | $ | (66,886) | $ | 267,705 | $ | (21,241) |
Adjusted earnings (loss) per share - diluted (3)
| $ | 1.28 | $ | (0.41) | $ | 1.63 | $ | (0.13) |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(In thousands) | ||||||||
Non-GAAP income tax expense (benefit) (2)
| $ | 50,787 | $ | (22,334) | $ | 61,451 | $ | (20,007) |
Add (subtract) GAAP income tax expense (benefit) | 54,766 | 4,573 | 149,944 | (188,504) | ||||
Non-GAAP adjustment to income tax expense (benefit) | $ | (3,979) | $ | (26,907) | $ | (88,493) | $ | 168,497 |
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands) | ||||||||
GAAP: | ||||||||
Income (loss) before income taxes
| $ | 357,507 | $ | 27,918 | $ | 830,302 | $ | (608,852) |
Income tax expense (benefit) | $ | 54,766 | $ | 4,573 | $ | 149,944 | $ | (188,504) |
Effective tax rate for GAAP financial statements | 15.3 | % | 16.4 | % | 18.1 | % | 31.0 | % |
Adjusted - Non-GAAP: | ||||||||
Effect of Non-GAAP adjustments | 2.7 | % | 16.8 | % | (3.2) | % | (121.2) | % |
Effective tax rate for adjusted results | 18.0 | % | 33.2 | % | 14.9 | % | (90.2) | % |
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Disclaimer
HollyFrontier Corporation published this content on 03 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2021 10:43:14 UTC.