Three Months Ended December 31, | Change from 2020 | |||||||
2021 | 2020 | Change | Percent | |||||
(In thousands, except per share data) | ||||||||
Sales and other revenues | $ | 5,622,667 | $ | 2,900,768 | $ | 2,721,899 | 94 | % |
Operating costs and expenses: | ||||||||
Cost of products sold: | ||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)
| 4,958,160 | 2,510,845 | 2,447,315 | 97 | ||||
Lower of cost or market inventory valuation adjustment | 8,739 | (149,212) | 157,951 | (106) | ||||
4,966,899 | 2,361,633 | 2,605,266 | 110 | |||||
Operating expenses | 430,858 | 336,077 | 94,781 | 28 | ||||
Selling, general and administrative expenses
| 111,225 | 76,041 | 35,184 | 46 | ||||
Depreciation and amortization | 134,198 | 124,879 | 9,319 | 7 | ||||
Goodwill and long-lived asset impairments | - | 108,385 | (108,385) | (100) | ||||
Total operating costs and expenses | 5,643,180 | 3,007,015 | 2,636,165 | 88 | ||||
Loss from operations | (20,513) | (106,247) | 85,734 | (81) | ||||
Other income (expense): | ||||||||
Earnings of equity method investments | 3,557 | 1,461 | 2,096 | 143 | ||||
Interest income | 941 | 1,043 | (102) | (10) | ||||
Interest expense | (30,955) | (40,604) | 9,649 | (24) | ||||
Gain on foreign currency transactions | 1,288 | 3,119 | (1,831) | (59) | ||||
Gain on sale of assets and other | 2,532 | 3,034 | (502) | (17) | ||||
(22,637) | (31,947) | 9,310 | (29) | |||||
Loss before income taxes | (43,150) | (138,194) | 95,044 | (69) | ||||
Income tax benefit | (26,046) | (43,643) | 17,597 | (40) | ||||
Net loss | (17,104) | (94,551) | 77,447 | (82) | ||||
Less net income attributable to noncontrolling interest | 22,426 | 23,196 | (770) | (3) | ||||
Net loss attributable to HollyFrontier stockholders | $ | (39,530) | $ | (117,747) | $ | 78,217 | (66) | % |
Loss per share: | ||||||||
Basic | $ | (0.24) | $ | (0.73) | $ | 0.49 | (67) | % |
Diluted | $ | (0.24) | $ | (0.73) | $ | 0.49 | (67) | % |
Cash dividends declared per common share | $ | - | $ | 0.35 | $ | (0.35) | (100) | % |
Average number of common shares outstanding: | ||||||||
Basic | 162,721 | 162,151 | 570 | - | % | |||
Diluted | 162,721 | 162,151 | 570 | - | % | |||
EBITDA | $ | 98,636 | $ | 3,050 | $ | 95,586 | 3,134 | % |
Adjusted EBITDA | $ | 126,026 | $ | (21,898) | $ | 147,924 | (676) | % |
Years Ended December 31, | Change from 2020 | |||||||
2021 | 2020 | Change | Percent | |||||
(In thousands, except per share data) | ||||||||
Sales and other revenues | $ | 18,389,142 | $ | 11,183,643 | $ | 7,205,499 | 64 | % |
Operating costs and expenses: | ||||||||
Cost of products sold: | ||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 15,567,052 | 9,158,805 | 6,408,247 | 70 | ||||
Lower of cost or market inventory valuation adjustment
| (310,123) | 78,499 | (388,622) | (495) | ||||
15,256,929 | 9,237,304 | 6,019,625 | 65 | |||||
Operating expenses | 1,517,478 | 1,300,277 | 217,201 | 17 | ||||
Selling, general and administrative expenses
| 362,010 | 313,600 | 48,410 | 15 | ||||
Depreciation and amortization | 503,539 | 520,912 | (17,373) | (3) | ||||
Goodwill and long-lived asset impairments | - | 545,293 | (545,293) | (100) | ||||
Total operating costs and expenses | 17,639,956 | 11,917,386 | 5,722,570 | 48 | ||||
Income (loss) from operations | 749,186 | (733,743) | 1,482,929 | (202) | ||||
Other income (expense): | ||||||||
Earnings of equity method investments | 12,432 | 6,647 | 5,785 | 87 | ||||
Interest income | 4,019 | 7,633 | (3,614) | (47) | ||||
Interest expense | (125,175) | (126,527) | 1,352 | (1) | ||||
Gain on business interruption insurance settlement | - | 81,000 | (81,000) | (100) | ||||
Gain on tariff settlement | 51,500 | - | 51,500 | - | ||||
Gain on sales-type lease | - | 33,834 | (33,834) | (100) | ||||
Loss on early extinguishment of debt | - | (25,915) | 25,915 | (100) | ||||
Gain (loss) on foreign currency transactions | (2,938) | 2,201 | (5,139) | (233) | ||||
Gain on sale of assets and other | 98,128 | 7,824 | 90,304 | 1,154 | ||||
37,966 | (13,303) | 51,269 | (385) | |||||
Income (loss) before income taxes | 787,152 | (747,046) | 1,534,198 | (205) | ||||
Income tax expense (benefit) | 123,898 | (232,147) | 356,045 | (153) | ||||
Net income (loss) | 663,254 | (514,899) | 1,178,153 | (229) | ||||
Less net income attributable to noncontrolling interest | 104,930 | 86,549 | 18,381 | 21 | ||||
Net income (loss) attributable to HollyFrontier stockholders | $ | 558,324 | $ | (601,448) | $ | 1,159,772 | (193) | % |
Earnings (loss) per share: | ||||||||
Basic | $ | 3.39 | $ | (3.72) | $ | 7.11 | (191) | % |
Diluted | $ | 3.39 | $ | (3.72) | $ | 7.11 | (191) | % |
Cash dividends declared per common share | $ | 0.35 | $ | 1.40 | $ | (1.05) | (75) | % |
Average number of common shares outstanding: | ||||||||
Basic | 162,569 | 161,983 | 586 | - | % | |||
Diluted | 162,569 | 161,983 | 586 | - | % | |||
EBITDA | $ | 1,306,917 | $ | (193,789) | $ | 1,500,706 | (774) | % |
Adjusted EBITDA | $ | 915,665 | $ | 412,220 | $ | 503,445 | 122 | % |
Years Ended December 31, | ||||
2021 | 2020 | |||
(In thousands) | ||||
Cash and cash equivalents | $ | 234,444 | $ | 1,368,318 |
Working capital | $ | 1,696,990 | $ | 1,935,605 |
Total assets | $ | 12,916,613 | $ | 11,506,864 |
Long-term debt | $ | 3,072,737 | $ | 3,142,718 |
Total equity | $ | 6,294,465 | $ | 5,722,203 |
Refining | Lubricants and Specialty Products | HEP | Corporate, Other and Eliminations | Consolidated Total | ||||||
(In thousands) | ||||||||||
Three Months Ended December 31, 2021 | ||||||||||
Sales and other revenues:
| ||||||||||
Revenues from external customers | $ | 4,896,994 | $ | 699,838 | $ | 25,837 | $ | (2) | $ | 5,622,667 |
Intersegment revenues | 168,599 | 488 | 92,656 | (261,743) | - | |||||
$ | 5,065,593 | $ | 700,326 | $ | 118,493 | $ | (261,745) | $ | 5,622,667 | |
Cost of products sold (exclusive of lower of cost or market inventory adjustment)
| $ | 4,686,200 | $ | 510,528 | $ | - | $ | (238,568) | $ | 4,958,160 |
Lower of cost or market inventory valuation adjustment
| $ | - | $ | - | $ | - | $ | 8,739 | $ | 8,739 |
Operating expenses | $ | 317,831 | $ | 69,453 | $ | 44,298 | $ | (724) | $ | 430,858 |
Selling, general and administrative expenses
| $ | 36,586 | $ | 45,543 | $ | 2,973 | $ | 26,123 | $ | 111,225 |
Depreciation and amortization | $ | 88,455 | $ | 21,268 | $ | 20,090 | $ | 4,385 | $ | 134,198 |
Income (loss) from operations | $ | (63,479) | $ | 53,534 | $ | 51,132 | $ | (61,700) | $ | (20,513) |
Income (loss) before interest and income taxes | $ | (63,479) | $ | 53,665 | $ | 54,873 | $ | (58,195) | $ | (13,136) |
Net income attributable to noncontrolling interest | $ | - | $ | - | $ | 3,190 | $ | 19,236 | $ | 22,426 |
Earnings of equity method investments | $ | - | $ | - | $ | 3,557 | $ | - | $ | 3,557 |
Capital expenditures | $ | 46,106 | $ | 13,344 | $ | 11,403 | $ | 194,211 | $ | 265,064 |
Three Months Ended December 31, 2020 | ||||||||||
Sales and other revenues: | ||||||||||
Revenues from external customers | $ | 2,406,214 | $ | 462,724 | $ | 25,629 | $ | 6,201 | $ | 2,900,768 |
Intersegment revenues | 74,492 | 1,554 | 101,827 | (177,873) | - | |||||
$ | 2,480,706 | $ | 464,278 | $ | 127,456 | $ | (171,672) | $ | 2,900,768 | |
Cost of products sold (exclusive of lower of cost or market inventory adjustment)
| $ | 2,326,150 | $ | 318,857 | $ | - | $ | (134,162) | $ | 2,510,845 |
Lower of cost or market inventory valuation adjustment
| $ | (145,497) | $ | - | $ | - | $ | (3,715) | $ | (149,212) |
Operating expenses | $ | 233,433 | $ | 59,609 | $ | 37,971 | $ | 5,064 | $ | 336,077 |
Selling, general and administrative expenses
| $ | 32,621 | $ | 36,162 | $ | 2,420 | $ | 4,838 | $ | 76,041 |
Depreciation and amortization | $ | 73,598 | $ | 21,396 | $ | 23,350 | $ | 6,535 | $ | 124,879 |
Goodwill and long-lived asset impairments | $ | 26,518 | $ | 81,867 | $ | - | $ | - | $ | 108,385 |
Income (loss) from operations | $ | (66,117) | $ | (53,613) | $ | 63,715 | $ | (50,232) | $ | (106,247) |
Income (loss) before interest and income taxes | $ | (66,117) | $ | (54,056) | $ | 65,428 | $ | (43,888) | $ | (98,633) |
Net income attributable to noncontrolling interest | $ | - | $ | - | $ | 1,124 | $ | 22,072 | $ | 23,196 |
Earnings of equity method investments | $ | - | $ | - | $ | 1,461 | $ | - | $ | 1,461 |
Capital expenditures | $ | 45,870 | $ | 12,086 | $ | 20,641 | $ | 38,555 | $ | 117,152 |
Refining | Lubricants and Specialty Products | HEP | Corporate, Other and Eliminations | Consolidated Total | ||||||
(In thousands) | ||||||||||
Year Ended December 31, 2021 | ||||||||||
Sales and other revenues:
| ||||||||||
Revenues from external customers | $ | 15,734,870 | $ | 2,550,624 | $ | 103,646 | $ | 2 | $ | 18,389,142 |
Intersegment revenues | 623,688 | 9,988 | 390,849 | (1,024,525) | - | |||||
$ | 16,358,558 | $ | 2,560,612 | $ | 494,495 | $ | (1,024,523) | $ | 18,389,142 | |
Cost of products sold (exclusive of lower of cost or market inventory adjustment)
| $ | 14,673,062 | $ | 1,815,802 | $ | - | $ | (921,812) | $ | 15,567,052 |
Lower of cost or market inventory valuation adjustment
| $ | (318,353) | $ | - | $ | - | $ | 8,230 | $ | (310,123) |
Operating expenses | $ | 1,090,424 | $ | 252,456 | $ | 170,524 | $ | 4,074 | $ | 1,517,478 |
Selling, general and administrative expenses
| $ | 127,563 | $ | 170,155 | $ | 12,637 | $ | 51,655 | $ | 362,010 |
Depreciation and amortization | $ | 334,365 | $ | 79,767 | $ | 86,998 | $ | 2,409 | $ | 503,539 |
Income (loss) from operations | $ | 451,497 | $ | 242,432 | $ | 224,336 | $ | (169,079) | $ | 749,186 |
Income (loss) before interest and income taxes | $ | 449,747 | $ | 329,203 | $ | 267,623 | $ | (138,265) | $ | 908,308 |
Net income attributable to noncontrolling interest | $ | - | $ | - | $ | 7,217 | $ | 97,713 | $ | 104,930 |
Earnings of equity method investments | $ | - | $ | - | $ | 12,432 | $ | - | $ | 12,432 |
Capital expenditures | $ | 160,431 | $ | 30,878 | $ | 88,336 | $ | 533,764 | $ | 813,409 |
Year Ended December 31, 2020 | ||||||||||
Sales and other revenues:
| ||||||||||
Revenues from external customers | $ | 9,286,658 | $ | 1,792,745 | $ | 98,039 | $ | 6,201 | $ | 11,183,643 |
Intersegment revenues | 252,531 | 10,465 | 399,809 | (662,805) | - | |||||
$ | 9,539,189 | $ | 1,803,210 | $ | 497,848 | $ | (656,604) | $ | 11,183,643 | |
Cost of products sold (exclusive of lower of cost or market inventory adjustment)
| $ | 8,439,680 | $ | 1,271,287 | $ | - | $ | (552,162) | $ | 9,158,805 |
Lower of cost or market inventory valuation adjustment
| $ | 82,214 | $ | - | $ | - | $ | (3,715) | $ | 78,499 |
Operating expenses | $ | 988,045 | $ | 216,068 | $ | 147,692 | $ | (51,528) | $ | 1,300,277 |
Selling, general and administrative expenses | $ | 127,298 | $ | 157,816 | $ | 9,989 | $ | 18,497 | $ | 313,600 |
Depreciation and amortization | $ | 324,617 | $ | 80,656 | $ | 95,445 | $ | 20,194 | $ | 520,912 |
Goodwill impairment | $ | 241,760 | $ | 286,575 | $ | 16,958 | $ | - | $ | 545,293 |
Income (loss) from operations | $ | (664,425) | $ | (209,192) | $ | 227,764 | $ | (87,890) | $ | (733,743) |
Income (loss) before interest and income taxes | $ | (664,425) | $ | (209,903) | $ | 251,021 | $ | (4,845) | $ | (628,152) |
Net income attributable to noncontrolling interest | $ | - | $ | - | $ | 5,282 | $ | 81,267 | $ | 86,549 |
Earnings of equity method investments | $ | - | $ | - | $ | 6,647 | $ | - | $ | 6,647 |
Capital expenditures | $ | 152,726 | $ | 32,473 | $ | 59,283 | $ | 85,678 | $ | 330,160 |
Refining | Lubricants and Specialty Products | HEP | Corporate, Other and Eliminations | Consolidated Total | ||||||
(In thousands) | ||||||||||
December 31, 2021 | ||||||||||
Cash and cash equivalents
| $ | - | $ | 113,474 | $ | 14,381 | $ | 106,589 | $ | 234,444 |
Total assets | $ | 9,736,851 | $ | 2,073,638 | $ | 2,250,115 | $ | (1,143,991) | $ | 12,916,613 |
Long-term debt | $ | - | $ | - | $ | 1,333,049 | $ | 1,739,688 | $ | 3,072,737 |
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 December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Mid-Continent Region (El Dorado and Tulsa Refineries)
| ||||||||
Crude charge (BPD) (1)
| 265,770 | 260,780 | 260,350 | 241,140 | ||||
Refinery throughput (BPD) (2)
| 287,300 | 279,670 | 276,430 | 257,030 | ||||
Sales of produced refined products (BPD) (3)
| 285,250 | 273,710 | 265,470 | 248,320 | ||||
Refinery utilization (4)
| 102.2 | % | 100.3 | % | 100.1 | % | 92.7 | % |
Average per produced barrel (5)
| ||||||||
Refinery gross margin | $ | 6.18 | $ | 1.93 | $ | 9.44 | $ | 5.17 |
Refinery operating expenses (6)
| 5.73 | 5.42 | 6.42 | 5.46 | ||||
Net operating margin | $ | 0.45 | $ | (3.49) | $ | 3.02 | $ | (0.29) |
Refinery operating expenses per throughput barrel (7)
| $ | 5.69 | $ | 5.30 | $ | 6.17 | $ | 5.27 |
Feedstocks: | ||||||||
Sweet crude oil | 55 | % | 59 | % | 61 | % | 58 | % |
Sour crude oil | 21 | % | 19 | % | 15 | % | 19 | % |
Heavy sour crude oil | 17 | % | 15 | % | 18 | % | 17 | % |
Other feedstocks and blends | 7 | % | 7 | % | 6 | % | 6 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Sales of produced refined products: | ||||||||
Gasolines | 53 | % | 54 | % | 52 | % | 52 | % |
Diesel fuels | 32 | % | 33 | % | 33 | % | 34 | % |
Jet fuels | 6 | % | 4 | % | 5 | % | 4 | % |
Fuel oil | 1 | % | 1 | % | 1 | % | 1 | % |
Asphalt | 2 | % | 3 | % | 3 | % | 3 | % |
Base oils | 4 | % | 4 | % | 4 | % | 4 | % |
LPG and other | 2 | % | 1 | % | 2 | % | 2 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 (8)
| 2020 |
2021 (8)
| 2020 | |||||
West Region (Puget Sound, Navajo and Wood Cross Refineries) | ||||||||
Crude charge (BPD) (1)
| 155,230 | 119,130 | 140,370 | 124,050 | ||||
Refinery throughput (BPD) (2)
| 175,440 | 133,110 | 155,440 | 138,050 | ||||
Sales of produced refined products (BPD) (3)
| 188,980 | 144,280 | 158,630 | 143,350 | ||||
Refinery utilization (4)
| 63.7 | % | 82.2 | % | 82.7 | % | 85.6 | % |
Average per produced barrel (5)
| ||||||||
Refinery gross margin | $ | 12.50 | $ | 7.98 | $ | 13.32 | $ | 10.97 |
Refinery operating expenses (6)
| 9.63 | 7.31 | 8.09 | 7.07 | ||||
Net operating margin | $ | 2.87 | $ | 0.67 | $ | 5.23 | $ | 3.90 |
Refinery operating expenses per throughput barrel (7)
| $ | 10.38 | $ | 7.93 | $ | 9.27 | $ | 7.34 |
Feedstocks: | ||||||||
Sweet crude oil | 20 | % | 29 | % | 22 | % | 30 | % |
Sour crude oil | 56 | % | 48 | % | 58 | % | 49 | % |
Heavy sour crude oil | 2 | % | - | % | 1 | % | - | % |
Black wax crude oil | 11 | % | 12 | % | 10 | % | 11 | % |
Other feedstocks and blends | 11 | % | 11 | % | 9 | % | 10 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Sales of produced refined products: | ||||||||
Gasolines | 56 | % | 57 | % | 54 | % | 56 | % |
Diesel fuels | 29 | % | 34 | % | 35 | % | 35 | % |
Jet fuels | 4 | % | - | % | 1 | % | - | % |
Fuel oil | 3 | % | 3 | % | 3 | % | 3 | % |
Asphalt | 3 | % | 3 | % | 4 | % | 4 | % |
LPG and other | 5 | % | 3 | % | 3 | % | 2 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Consolidated | ||||||||
Crude charge (BPD) (1)
| 421,000 | 379,910 | 400,720 | 365,190 | ||||
Refinery throughput (BPD) (2)
| 462,740 | 412,780 | 431,870 | 395,080 | ||||
Sales of produced refined products (BPD) (3)
| 474,230 | 417,990 | 424,100 | 391,670 | ||||
Refinery utilization (4)
| 83.6 | % | 93.8 | % | 93.1 | % | 90.2 | % |
Average per produced barrel (5)
| ||||||||
Refinery gross margin | $ | 8.70 | $ | 4.02 | $ | 10.89 | $ | 7.29 |
Refinery operating expenses (6)
| 7.28 | 6.07 | 7.04 | 6.05 | ||||
Net operating margin | $ | 1.42 | $ | (2.05) | $ | 3.85 | $ | 1.24 |
Refinery operating expenses per throughput barrel (7)
| $ | 7.47 | $ | 6.15 | $ | 6.92 | $ | 6.00 |
Feedstocks: | ||||||||
Sweet crude oil | 41 | % | 49 | % | 47 | % | 48 | % |
Sour crude oil | 34 | % | 29 | % | 31 | % | 29 | % |
Heavy sour crude oil | 12 | % | 10 | % | 12 | % | 11 | % |
Black wax crude oil | 4 | % | 4 | % | 4 | % | 4 | % |
Other feedstocks and blends | 9 | % | 8 | % | 6 | % | 8 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Consolidated | ||||||||
Sales of produced refined products: | ||||||||
Gasolines | 54 | % | 55 | % | 53 | % | 54 | % |
Diesel fuels | 31 | % | 33 | % | 34 | % | 34 | % |
Jet fuels | 6 | % | 3 | % | 4 | % | 3 | % |
Fuel oil | 1 | % | 2 | % | 1 | % | 1 | % |
Asphalt | 3 | % | 3 | % | 3 | % | 4 | % |
Base oils | 2 | % | 2 | % | 2 | % | 2 | % |
LPG and other | 3 | % | 2 | % | 3 | % | 2 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Lubricants and Specialty Products | ||||||||
Throughput (BPD) | 18,760 | 21,425 | 19,177 | 19,645 | ||||
Sales of produced products (BPD) | 35,120 | 33,559 | 34,016 | 32,902 | ||||
Sales of produced products: | ||||||||
Finished products | 46 | % | 49 | % | 51 | % | 49 | % |
Base oils | 26 | % | 28 | % | 27 | % | 26 | % |
Other | 28 | % | 23 | % | 22 | % | 25 | % |
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Rack Back (1)
|
Rack Forward (2)
|
Eliminations (3)
| Total Lubricants and Specialty Products | |||||
(In thousands) | ||||||||
Three Months Ended December 31, 2021 | ||||||||
Sales and other revenues
| $ | 307,018 | $ | 631,221 | $ | (237,913) | $ | 700,326 |
Cost of products sold
| $ | 202,124 | $ | 546,317 | $ | (237,913) | $ | 510,528 |
Operating expenses | $ | 33,977 | $ | 35,476 | $ | - | $ | 69,453 |
Selling, general and administrative expenses | $ | 7,360 | $ | 38,183 | $ | - | $ | 45,543 |
Depreciation and amortization | $ | 8,183 | $ | 13,085 | $ | - | $ | 21,268 |
Income (loss) from operations | $ | 55,374 | $ | (1,840) | $ | - | $ | 53,534 |
Income (loss) before interest and income taxes | $ | 55,374 | $ | (1,709) | $ | - | $ | 53,665 |
EBITDA | $ | 63,557 | $ | 11,376 | $ | - | $ | 74,933 |
Three Months Ended December 31, 2020 | ||||||||
Sales and other revenues | $ | 143,786 | $ | 426,407 | $ | (105,915) | $ | 464,278 |
Cost of products sold
| $ | 110,351 | $ | 314,421 | $ | (105,915) | $ | 318,857 |
Operating expenses | $ | 26,760 | $ | 32,849 | $ | - | $ | 59,609 |
Selling, general and administrative expenses | $ | 5,680 | $ | 30,482 | $ | - | $ | 36,162 |
Depreciation and amortization | $ | 6,908 | $ | 14,488 | $ | - | $ | 21,396 |
Goodwill impairment | $ | - | $ | 81,867 | $ | - | $ | 81,867 |
Loss from operations | $ | (5,913) | $ | (47,700) | $ | - | $ | (53,613) |
Loss before interest and income taxes | $ | (5,913) | $ | (48,143) | $ | - | $ | (54,056) |
EBITDA | $ | 995 | $ | (33,655) | $ | - | $ | (32,660) |
Rack Back (1)
|
Rack Forward (2)
|
Eliminations (3)
| Total Lubricants and Specialty Products | |||||
(In thousands) | ||||||||
Year Ended December 31, 2021 | ||||||||
Sales and other revenues
| $ | 1,005,152 | $ | 2,378,332 | $ | (822,872) | $ | 2,560,612 |
Cost of products sold
| $ | 646,107 | $ | 1,992,567 | $ | (822,872) | $ | 1,815,802 |
Operating expenses | $ | 120,750 | $ | 131,706 | $ | - | $ | 252,456 |
Selling, general and administrative expenses | $ | 27,071 | $ | 143,084 | $ | - | $ | 170,155 |
Depreciation and amortization | $ | 28,093 | $ | 51,674 | $ | - | $ | 79,767 |
Income from operations | $ | 183,131 | $ | 59,301 | $ | - | $ | 242,432 |
Income before interest and income taxes | $ | 269,149 | $ | 60,054 | $ | - | $ | 329,203 |
EBITDA | $ | 297,242 | $ | 111,728 | $ | - | $ | 408,970 |
Year Ended December 31, 2020 | ||||||||
Sales and other revenues | $ | 505,424 | $ | 1,667,809 | $ | (370,023) | $ | 1,803,210 |
Cost of products sold
| $ | 456,194 | $ | 1,185,116 | $ | (370,023) | $ | 1,271,287 |
Operating expenses | $ | 96,463 | $ | 119,605 | $ | - | $ | 216,068 |
Selling, general and administrative expenses | $ | 22,276 | $ | 135,540 | $ | - | $ | 157,816 |
Depreciation and amortization | $ | 29,071 | $ | 51,585 | $ | - | $ | 80,656 |
Goodwill impairment | $ | 167,017 | $ | 119,558 | $ | - | $ | 286,575 |
Income (loss) from operations | $ | (265,597) | $ | 56,405 | $ | - | $ | (209,192) |
Income (loss) before interest and income taxes | $ | (265,597) | $ | 55,694 | $ | - | $ | (209,903) |
EBITDA | $ | (236,526) | $ | 107,279 | $ | - | $ | (129,247) |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(In thousands) | ||||||||
Net income (loss) attributable to HollyFrontier stockholders | $ | (39,530) | $ | (117,747) | $ | 558,324 | $ | (601,448) |
Add (subtract) income tax expense (benefit) | (26,046) | (43,643) | 123,898 | (232,147) | ||||
Add interest expense | 30,955 | 40,604 | 125,175 | 126,527 | ||||
Subtract interest income | (941) | (1,043) | (4,019) | (7,633) | ||||
Add depreciation and amortization | 134,198 | 124,879 | 503,539 | 520,912 | ||||
EBITDA | $ | 98,636 | $ | 3,050 | $ | 1,306,917 | $ | (193,789) |
Add (subtract) lower of cost or market inventory valuation adjustment
| 8,739 | (149,212) | (310,123) | 78,499 | ||||
Subtract gain on sale of real property | - | - | (86,018) | - | ||||
Add goodwill impairment | - | 81,867 | - | 81,867 | ||||
Subtract HollyFrontier's pro-rata share of gain on business interruption insurance settlement | - | - | - | (77,143) | ||||
Add long-lived asset impairment, inclusive of pro-rata share of impairment in HEP segment
| - | 26,518 | - | 456,058 | ||||
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 | 82 | 296 | 988 | 3,842 | ||||
Add restructuring charges | - | - | 7,813 | 3,679 | ||||
Add Cheyenne Refinery LIFO inventory liquidation costs | - | 3,129 | 923 | 36,943 | ||||
Add decommissioning costs | 2,774 | 12,439 | 25,835 | 24,748 | ||||
Add pre-close acquisition integration costs | 12,278 | - | 17,313 | - | ||||
Add acquisition integration and regulatory costs | 3,517 | 15 | 3,517 | 1,994 | ||||
Subtract gain on tariff settlement | - | - | (51,500) | - | ||||
Adjusted EBITDA | $ | 126,026 | $ | (21,898) | $ | 915,665 | $ | 412,220 |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
Refining Segment | 2021 | 2020 | 2021 | 2020 | ||||
(In thousands) | ||||||||
Income (loss) before interest and income taxes (1)
| $ | (63,479) | $ | (66,117) | $ | 449,747 | $ | (664,425) |
Add depreciation and amortization | 88,455 | 73,598 | 334,365 | 324,617 | ||||
EBITDA | $ | 24,976 | $ | 7,481 | $ | 784,112 | $ | (339,808) |
Add (subtract) lower of cost or market inventory valuation adjustment
| - | (145,497) | (318,353) | 82,214 | ||||
Add long-lived asset impairment | - | 26,518 | - | 241,760 | ||||
Add severance costs | - | - | - | 3,546 | ||||
Add restructuring charges | - | - | - | 2,009 | ||||
Add Cheyenne Refinery LIFO inventory liquidation costs | - | - | - | 33,814 | ||||
Add decommissioning costs | - | - | - | 12,309 | ||||
Adjusted EBITDA | $ | 24,976 | $ | (111,498) | $ | 465,759 | $ | 35,844 |
Lubricants and Specialty Products Segment | Rack Back | Rack Forward | Total Lubricants and Specialty Products | |||
(In thousands) | ||||||
Three Months Ended December 31, 2021 | ||||||
Income (loss) before interest and income taxes (1)
| $ | 55,374 | $ | (1,709) | $ | 53,665 |
Add depreciation and amortization
| 8,183 | 13,085 | 21,268 | |||
EBITDA | $ | 63,557 | $ | 11,376 | $ | 74,933 |
Three Months Ended December 31, 2020 | ||||||
Loss before interest and income taxes (1)
| $ | (5,913) | $ | (48,143) | $ | (54,056) |
Add depreciation and amortization
| 6,908 | 14,488 | 21,396 | |||
EBITDA | $ | 995 | $ | (33,655) | $ | (32,660) |
Add goodwill impairment | - | 81,867 | 81,867 | |||
Adjusted EBITDA | $ | 995 | $ | 48,212 | $ | 49,207 |
Year Ended December 31, 2021 | ||||||
Income before interest and income taxes (1)
| $ | 269,149 | $ | 60,054 | $ | 329,203 |
Add depreciation and amortization
| 28,093 | 51,674 | 79,767 | |||
EBITDA | 297,242 | 111,728 | 408,970 | |||
Subtract gain on sale of real property | (86,018) | - | (86,018) | |||
Add restructuring charges | $ | 1,079 | $ | 6,734 | $ | 7,813 |
Adjusted EBITDA | $ | 212,303 | $ | 118,462 | $ | 330,765 |
Year Ended December 31, 2020 | ||||||
Income (loss) before interest and income taxes (1)
| $ | (265,597) | $ | 55,694 | $ | (209,903) |
Add depreciation and amortization
| 29,071 | 51,585 | 80,656 | |||
EBITDA | (236,526) | 107,279 | (129,247) | |||
Add goodwill impairment
| 167,017 | 119,558 | 286,575 | |||
Adjusted EBITDA | $ | (69,509) | $ | 226,837 | $ | 157,328 |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands, except per barrel amounts) | ||||||||
Consolidated | ||||||||
Net operating margin per produced barrel sold | $ | 1.42 | $ | (2.05) | $ | 3.85 | $ | 1.24 |
Add average refinery operating expenses per produced barrel sold
| 7.28 | 6.07 | 7.04 | 6.05 | ||||
Refinery gross margin per produced barrel sold | $ | 8.70 | $ | 4.02 | $ | 10.89 | $ | 7.29 |
Times produced barrels sold (BPD) | 474,230 | 417,990 | 424,100 | 391,670 | ||||
Times number of days in period | 92 | 92 | 365 | 366 | ||||
Refining gross margin | $ | 379,574 | $ | 154,589 | $ | 1,685,734 | $ | 1,045,030 |
Add (subtract) rounding | (181) | (33) | (238) | 523 | ||||
West and Mid-Continent regions gross margin | 379,393 | 154,556 | 1,685,496 | 1,045,553 | ||||
Add West and Mid-Continent regions cost of products sold | 4,686,200 | 2,326,150 | 14,673,062 | 7,992,047 | ||||
Add Cheyenne Refinery sales and other revenues | - | - | - | 501,589 | ||||
Refining segment sales and other revenues | 5,065,593 | 2,480,706 | 16,358,558 | 9,539,189 | ||||
Add lubricants and specialty products segment sales and other revenues
| 700,326 | 464,278 | 2,560,612 | 1,803,210 | ||||
Add HEP segment sales and other revenues | 118,493 | 127,456 | 494,495 | 497,848 | ||||
Subtract corporate, other and eliminations | (261,745) | (171,672) | (1,024,523) | (656,604) | ||||
Sales and other revenues | $ | 5,622,667 | $ | 2,900,768 | $ | 18,389,142 | $ | 11,183,643 |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands, except per barrel amounts) | ||||||||
Consolidated | ||||||||
Average operating expenses per produced barrel sold | $ | 7.28 | $ | 6.07 | $ | 7.04 | $ | 6.05 |
Times produced barrels sold (BPD) | 474,230 | 417,990 | 424,100 | 391,670 | ||||
Times number of days in period | 92 | 92 | 365 | 366 | ||||
Refining operating expenses | $ | 317,620 | $ | 233,422 | $ | 1,089,767 | $ | 867,275 |
Add (subtract) rounding | 211 | 11 | 657 | (381) | ||||
West and Mid-Continent regions operating expenses | 317,831 | 233,433 | 1,090,424 | 866,894 | ||||
Add Cheyenne Refinery operating expenses | - | - | - | 121,151 | ||||
Total refining segment operating expenses | 317,831 | 233,433 | 1,090,424 | 988,045 | ||||
Add lubricants and specialty products segment operating expenses
| 69,453 | 59,609 | 252,456 | 216,068 | ||||
Add HEP segment operating expenses | 44,298 | 37,971 | 170,524 | 147,692 | ||||
Add (subtract) corporate, other and eliminations | (724) | 5,064 | 4,074 | (51,528) | ||||
Operating expenses (exclusive of depreciation and amortization)
| $ | 430,858 | $ | 336,077 | $ | 1,517,478 | $ | 1,300,277 |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands, except per share amounts) | ||||||||
Consolidated | ||||||||
GAAP: | ||||||||
Income (loss) before income taxes | $ | (43,150) | $ | (138,194) | $ | 787,152 | $ | (747,046) |
Income tax expense (benefit) | (26,046) | (43,643) | 123,898 | (232,147) | ||||
Net income (loss) | (17,104) | (94,551) | 663,254 | (514,899) | ||||
Less net income attributable to noncontrolling interest | 22,426 | 23,196 | 104,930 | 86,549 | ||||
Net income (loss) attributable to HollyFrontier stockholders | (39,530) | (117,747) | 558,324 | (601,448) | ||||
Non-GAAP adjustments to arrive at adjusted results: | ||||||||
Lower of cost or market inventory valuation adjustment | 8,739 | (149,212) | (310,123) | 78,499 | ||||
Gain on sale of real property | - | - | (86,018) | - | ||||
Gain on business interruption insurance settlement | - | - | - | (81,000) | ||||
Goodwill and long-lived asset impairments
| - | 108,385 | - | 545,293 | ||||
HEP's gain on sales-type lease | - | - | - | (33,834) | ||||
HEP's loss on early extinguishment of debt | - | - | - | 25,915 | ||||
Severance costs | 82 | 296 | 988 | 3,842 | ||||
Restructuring charges | - | - | 7,813 | 3,679 | ||||
Cheyenne Refinery LIFO inventory liquidation costs | - | 3,129 | 923 | 36,943 | ||||
Decommissioning costs | 2,774 | 12,439 | 25,835 | 24,748 | ||||
Pre-close acquisition and regulatory costs | 12,278 | - | 17,313 | - | ||||
Acquisition integration and regulatory costs | 3,517 | 15 | 3,517 | 1,994 | ||||
Gain on tariff settlement | - | - | (51,500) | - | ||||
Total adjustments to income (loss) before income taxes | 27,390 | (24,948) | (391,252) | 606,079 | ||||
Adjustment to income tax expense (benefit) (1)
| 5,443 | (24,077) | (83,049) | 144,424 | ||||
Adjustment to net income attributable to noncontrolling interest | - | - | - | 70 | ||||
Total adjustments, net of tax | 21,947 | (871) | (308,203) | 461,585 | ||||
Adjusted results - Non-GAAP: | ||||||||
Adjusted income (loss) before income taxes | (15,760) | (163,142) | 395,900 | (140,967) | ||||
Adjusted income tax expense (benefit) (2)
| (20,603) | (67,720) | 40,849 | (87,723) | ||||
Adjusted net income (loss) | 4,843 | (95,422) | 355,051 | (53,244) | ||||
Less net income attributable to noncontrolling interest | 22,426 | 23,196 | 104,930 | 86,619 | ||||
Adjusted net income (loss) attributable to HollyFrontier stockholders | $ | (17,583) | $ | (118,618) | $ | 250,121 | $ | (139,863) |
Adjusted earnings (loss) per share - diluted (3)
| $ | (0.11) | $ | (0.74) | $ | 1.52 | $ | (0.87) |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands) | ||||||||
Non-GAAP income tax expense (benefit) (2)
| $ | (20,603) | $ | (67,720) | $ | 40,849 | $ | (87,723) |
Subtract GAAP income tax expense (benefit) | (26,046) | (43,643) | 123,898 | (232,147) | ||||
Non-GAAP adjustment to income tax expense | $ | 5,443 | $ | (24,077) | $ | (83,049) | $ | 144,424 |
Three Months Ended December 31, |
Years Ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
(Dollars in thousands) | ||||||||
GAAP: | ||||||||
Income before income taxes
| $ | (43,150) | $ | (138,194) | $ | 787,152 | $ | (747,046) |
Income tax expense | $ | (26,046) | $ | (43,643) | $ | 123,898 | $ | (232,147) |
Effective tax rate for GAAP financial statements | 60.4 | % | 31.6 | % | 15.7 | % | 31.1 | % |
Adjusted - Non-GAAP: | ||||||||
Effect of Non-GAAP adjustments | 70.4 | % | 9.9 | % | (5.4) | % | 31.1 | % |
Effective tax rate for adjusted results | 130.8 | % | 41.5 | % | 10.3 | % | 62.2 | % |
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HollyFrontier Corporation published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 11:38:04 UTC.