HollyFrontier Corporation Reports 2020 Fourth Quarter and Full Year Results
- Reported net loss attributable to HollyFrontier stockholders of $(601.4) million or $(3.72) per diluted share and adjusted net loss of $(139.9) million or $(0.87) per diluted share, for the year
- Reported EBITDA of $(193.8) million and adjusted EBITDA of $412.2 million, for the year
- Committed additional $400.0 million toward renewables expansion at Cheyenne and Artesia in 2020
DALLAS–(BUSINESS WIRE)–HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported fourth quarter net loss attributable to HollyFrontier stockholders of $(117.7) million or $(0.73) per diluted share for the quarter ended December 31, 2020, compared to net income of $60.6 million or $0.37 per diluted share for the quarter ended December 31, 2019.
The fourth quarter results reflect special items that collectively increased net loss by a total of $0.9 million. On a pre-tax basis, these items include goodwill and long-lived asset impairment charges totaling $108.4 million and charges related to the Cheyenne Refinery conversion to renewable diesel production, including decommissioning charges of $12.4 million, last-in, first-out (“LIFO”) inventory liquidation costs of $3.1 million and severance charges totaling $0.3 million; partially offset by a lower of cost or market inventory valuation adjustment of $149.2 million. Excluding these items, adjusted net loss for the fourth quarter was $(118.6) million ($(0.74) per diluted share) compared to adjusted net income of $78.0 million ($0.48 per diluted share) for the fourth quarter of 2019, which excludes certain items that collectively decreased net income by $17.4 million for the three months ended December 31, 2019.
HollyFrontier’s President & CEO, Michael Jennings, commented, “Despite the challenging environment, HollyFrontier preserved our industry-leading balance sheet thanks to a resilient set of results led by HEP and our Lubricants businesses. Looking forward, we expect demand for transportation fuels will strengthen as COVID-19 vaccines are distributed and the global economy recovers from the pandemic. Our focus for 2021 is on operating safely and reliably while executing our ambitious capital and turnaround plans.”
The COVID-19 pandemic caused a decline in U.S. and global economic activity starting in the first quarter of 2020. This decrease reduced both volumes and unit margins across the Company’s businesses, resulting in lower gross margins and earnings. During the fourth quarter of 2020, demand for transportation fuels remained challenged while lubricants and specialties continued to show strength in the second half of the year due to improvement in industrial and transportation-related markets and increased global demand for base oils.
The Refining segment reported adjusted EBITDA of $(111.5) million compared to $171.6 million for the fourth quarter of 2019. This decrease was primarily due to continued weak demand for gasoline and diesel coupled with compressed crude differentials. Refinery gross margin for the fourth quarter of 2020 was $4.02 per produced barrel, a 71% decrease compared to $13.66 for the fourth quarter of 2019. Crude oil charge averaged 379,910 barrels per day (“BPD”) for the fourth quarter of 2020 compared to 359,500 BPD for the fourth quarter of 2019.
Our Lubricants and Specialty Products segment reported EBITDA of $(32.7) million, compared to $34.6 million in the fourth quarter of 2019. This decrease was driven by a goodwill impairment charge of $81.9 million related to Sonneborn. Excluding the impairment, our Lubricants and Specialties segment reported adjusted EBITDA of $49.2 million due to strengthening base oil margins in the fourth quarter of 2020.
Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $86.8 million for the fourth quarter of 2020 compared to $87.8 million in the fourth quarter of 2019. Despite lower volumes year over year, HEP delivered strong fourth quarter 2020 earnings which were supported by long-term minimum volume commitment contracts.
For the fourth quarter of 2020, net cash provided by operations totaled $66.9 million. During the period, HollyFrontier declared and paid a dividend of $0.35 per share to shareholders totaling $57.9 million. At December 31, 2020, the Company’s cash and cash equivalents totaled $1,368.3 million, a $156.6 million decrease over cash and cash equivalents of $1,524.9 million at September 30, 2020. Additionally, the Company’s consolidated debt was $3,142.7 million. The Company’s debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $1,737.1 million at December 31, 2020.
The Company has scheduled a webcast conference call for today, February 24, 2021, at 8:30 AM Eastern Time to discuss fourth quarter financial results. This webcast may be accessed at: https://event.on24.com/wcc/r/2950760/AF27087C3232DF9D1112AE68A106191D. An audio archive of this webcast will be available using the above noted link through March 10, 2021.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the extraordinary market environment and effects of the COVID-19 pandemic, including a significant decline in demand for refined petroleum products in markets the Company serves; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand; the effects of current and future governmental and environmental regulations and policies, including the effects of current and future restrictions on various commercial and economic activities in response to the COVID-19 pandemic; the availability and cost of financing to the Company; the effectiveness of the Company’s capital investments and marketing strategies; the Company’s efficiency in carrying out and consummating construction projects, including the Company’s ability to complete announced capital projects, such as the conversion of the Cheyenne Refinery to a renewable diesel facility and the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within budget; the Company’s ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States; continued deterioration in gross margins or a prolonged economic slowdown due to COVID-19 could result in an impairment of goodwill and / or additional long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
RESULTS OF OPERATIONS
| Financial Data (all information in this release is unaudited) | ||||||||||||||
|
|
Three Months Ended |
|
Change from 2019 |
|||||||||||
|
|
2020 |
|
2019 |
|
Change |
|
Percent |
|||||||
|
|
(In thousands, except per share data) |
|||||||||||||
|
Sales and other revenues |
$ |
2,900,768 |
|
|
$ |
4,381,888 |
|
|
$ |
(1,481,120 |
) |
|
(34 |
)% |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
2,510,845 |
|
|
3,610,528 |
|
|
(1,099,683 |
) |
|
(30 |
) |
|||
|
Lower of cost or market inventory valuation adjustment |
(149,212 |
) |
|
30,708 |
|
|
(179,920 |
) |
|
(586 |
) |
|||
|
|
2,361,633 |
|
|
3,641,236 |
|
|
(1,279,603 |
) |
|
(35 |
) |
|||
|
Operating expenses |
336,077 |
|
|
383,630 |
|
|
(47,553 |
) |
|
(12 |
) |
|||
|
Selling, general and administrative expenses |
76,041 |
|
|
93,259 |
|
|
(17,218 |
) |
|
(18 |
) |
|||
|
Depreciation and amortization |
124,879 |
|
|
134,580 |
|
|
(9,701 |
) |
|
(7 |
) |
|||
|
Goodwill and long-lived asset impairments |
108,385 |
|
|
— |
|
|
108,385 |
|
|
— |
|
|||
|
Total operating costs and expenses |
3,007,015 |
|
|
4,252,705 |
|
|
(1,245,690 |
) |
|
(29 |
) |
|||
|
Income (loss) from operations |
(106,247 |
) |
|
129,183 |
|
|
(235,430 |
) |
|
(182 |
) |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||
|
Earnings of equity method investments |
1,461 |
|
|
(37 |
) |
|
1,498 |
|
|
(4,049 |
) |
|||
|
Interest income |
1,043 |
|
|
5,012 |
|
|
(3,969 |
) |
|
(79 |
) |
|||
|
Interest expense |
(40,604 |
) |
|
(36,383 |
) |
|
(4,221 |
) |
|
12 |
|
|||
|
Gain on foreign currency transactions |
3,119 |
|
|
576 |
|
|
2,543 |
|
|
441 |
|
|||
|
Other, net |
3,034 |
|
|
2,008 |
|
|
1,026 |
|
|
51 |
|
|||
|
|
(31,947 |
) |
|
(28,824 |
) |
|
(3,123 |
) |
|
11 |
|
|||
|
Income (loss) before income taxes |
(138,194 |
) |
|
100,359 |
|
|
(238,553 |
) |
|
(238 |
) |
|||
|
Income tax expense (benefit) |
(43,643 |
) |
|
19,290 |
|
|
(62,933 |
) |
|
(326 |
) |
|||
|
Net income (loss) |
(94,551 |
) |
|
81,069 |
|
|
(175,620 |
) |
|
(217 |
) |
|||
|
Less net income attributable to noncontrolling interest |
23,196 |
|
|
20,464 |
|
|
2,732 |
|
|
13 |
|
|||
|
Net income (loss) attributable to HollyFrontier stockholders |
$ |
(117,747 |
) |
|
$ |
60,605 |
|
|
$ |
(178,352 |
) |
|
(294 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|||||||
|
Basic |
$ |
(0.73 |
) |
|
$ |
0.38 |
|
|
$ |
(1.11 |
) |
|
(292 |
)% |
|
Diluted |
$ |
(0.73 |
) |
|
$ |
0.37 |
|
|
$ |
(1.10 |
) |
|
(297 |
)% |
|
Cash dividends declared per common share |
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
— |
|
|
— |
% |
|
Average number of common shares outstanding: |
|
|
|
|
|
|
|
|||||||
|
Basic |
162,151 |
|
|
161,398 |
|
|
753 |
|
|
— |
% |
|||
|
Diluted |
162,151 |
|
|
162,898 |
|
|
(747 |
) |
|
— |
% |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
EBITDA |
$ |
3,050 |
|
|
$ |
245,846 |
|
|
$ |
(242,796 |
) |
|
(99 |
)% |
|
Adjusted EBITDA |
$ |
(21,898 |
) |
|
$ |
262,660 |
|
|
$ |
(284,558 |
) |
|
(108 |
)% |
|
|
Years Ended |
|
Change from 2019 |
|||||||||||
|
|
2020 |
|
2019 |
|
Change |
|
Percent |
|||||||
|
|
(In thousands, except per share data) |
|||||||||||||
|
Sales and other revenues |
$ |
11,183,643 |
|
|
$ |
17,486,578 |
|
|
$ |
(6,302,935 |
) |
|
(36 |
)% |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
9,158,805 |
|
|
13,918,384 |
|
|
(4,759,579 |
) |
|
(34 |
) |
|||
|
Lower of cost or market inventory valuation adjustment
|
78,499 |
|
|
(119,775 |
) |
|
198,274 |
|
|
(166 |
) |
|||
|
|
9,237,304 |
|
|
13,798,609 |
|
|
(4,561,305 |
) |
|
(33 |
) |
|||
|
Operating expenses |
1,300,277 |
|
|
1,394,052 |
|
|
(93,775 |
) |
|
(7 |
) |
|||
|
Selling, general and administrative expenses |
313,600 |
|
|
354,236 |
|
|
(40,636 |
) |
|
(11 |
) |
|||
|
Depreciation and amortization |
520,912 |
|
|
509,925 |
|
|
10,987 |
|
|
2 |
|
|||
|
Goodwill and long-lived asset impairments |
545,293 |
|
|
152,712 |
|
|
392,581 |
|
|
257 |
|
|||
|
Total operating costs and expenses |
11,917,386 |
|
|
16,209,534 |
|
|
(4,292,148 |
) |
|
(26 |
) |
|||
|
Income (loss) from operations |
(733,743 |
) |
|
1,277,044 |
|
|
(2,010,787 |
) |
|
(157 |
) |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||
|
Earnings of equity method investments |
6,647 |
|
|
5,180 |
|
|
1,467 |
|
|
28 |
|
|||
|
Interest income |
7,633 |
|
|
22,139 |
|
|
(14,506 |
) |
|
(66 |
) |
|||
|
Interest expense |
(126,527 |
) |
|
(143,321 |
) |
|
16,794 |
|
|
(12 |
) |
|||
|
Gain on business interruption insurance settlement |
81,000 |
|
|
— |
|
|
81,000 |
|
|
— |
% |
|||
|
Gain on sales-type lease |
33,834 |
|
|
— |
|
|
33,834 |
|
|
— |
% |
|||
|
Loss on early extinguishment of debt |
(25,915 |
) |
|
— |
|
|
(25,915 |
) |
|
— |
% |
|||
|
Gain on foreign currency transactions |
2,201 |
|
|
5,449 |
|
|
(3,248 |
) |
|
(60 |
) |
|||
|
Other, net |
7,824 |
|
|
5,013 |
|
|
2,811 |
|
|
56 |
|
|||
|
|
(13,303 |
) |
|
(105,540 |
) |
|
92,237 |
|
|
(87 |
) |
|||
|
Income (loss) before income taxes |
(747,046 |
) |
|
1,171,504 |
|
|
(1,918,550 |
) |
|
(164 |
) |
|||
|
Income tax expense (benefit) |
(232,147 |
) |
|
299,152 |
|
|
(531,299 |
) |
|
(178 |
) |
|||
|
Net income (loss) |
(514,899 |
) |
|
872,352 |
|
|
(1,387,251 |
) |
|
(159 |
) |
|||
|
Less net income attributable to noncontrolling interest |
86,549 |
|
|
99,964 |
|
|
(13,415 |
) |
|
(13 |
) |
|||
|
Net income (loss) attributable to HollyFrontier stockholders |
$ |
(601,448 |
) |
|
$ |
772,388 |
|
|
$ |
(1,373,836 |
) |
|
(178 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|||||||
|
Basic |
$ |
(3.72 |
) |
|
$ |
4.64 |
|
|
$ |
(8.36 |
) |
|
(180 |
)% |
|
Diluted |
$ |
(3.72 |
) |
|
$ |
4.61 |
|
|
$ |
(8.33 |
) |
|
(181 |
)% |
|
Cash dividends declared per common share |
$ |
1.40 |
|
|
$ |
1.34 |
|
|
$ |
0.06 |
|
|
4 |
% |
|
Average number of common shares outstanding: |
|
|
|
|
|
|
|
|||||||
|
Basic |
161,983 |
|
|
166,287 |
|
|
(4,304 |
) |
|
(3 |
)% |
|||
|
Diluted |
161,983 |
|
|
167,385 |
|
|
(5,402 |
) |
|
(3 |
)% |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
EBITDA |
$ |
(193,789 |
) |
|
$ |
1,702,647 |
|
|
$ |
(1,896,436 |
) |
|
(111 |
)% |
|
Adjusted EBITDA |
$ |
412,220 |
|
|
$ |
1,714,524 |
|
|
$ |
(1,302,304 |
) |
|
(76 |
)% |
| Balance Sheet Data | |||||
|
|
Years Ended December 31, |
||||
|
|
2020 |
|
2019 |
||
|
|
(In thousands) |
||||
|
Cash and cash equivalents |
$ |
1,368,318 |
|
$ |
885,162 |
|
Working capital |
$ |
1,935,605 |
|
$ |
1,620,261 |
|
Total assets |
$ |
11,506,864 |
|
$ |
12,164,841 |
|
Long-term debt |
$ |
3,142,718 |
|
$ |
2,455,640 |
|
Total equity |
$ |
5,722,203 |
|
$ |
6,509,426 |
Segment Information
Our operations are organized into three reportable segments: Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.
The Refining segment represents the operations of our El Dorado, Tulsa, Navajo, Woods Cross Refineries and HollyFrontier Asphalt Company LLC (“HFC Asphalt”) (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Refining segment also included the operations of the Cheyenne Refinery until it permanently ceased petroleum refining operations during the third quarter of 2020.
The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.
The HEP segment involves all of the operations of HEP, a consolidated variable interest entity, which owns and operates logistics assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. The HEP segment also includes a 75% interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings.
|
|
Refining |
Lubricants |
|
HEP |
|
Corporate, |
|
Consolidated |
|||||||||||
|
|
(In thousands) |
||||||||||||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended December 31, 2019 |
|
|
|
|
|
|
|
|
|||||||||||
|
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues from external customers |
$ |
3,837,269 |
|
|
$ |
512,980 |
|
|
$ |
31,639 |
|
|
$ |
— |
|
|
$ |
4,381,888 |
|
|
Intersegment revenues |
67,879 |
|
|
3,150 |
|
|
99,995 |
|
|
(171,024 |
) |
|
— |
|
|||||
|
|
$ |
3,905,148 |
|
|
$ |
516,130 |
|
|
$ |
131,634 |
|
|
$ |
(171,024 |
) |
|
$ |
4,381,888 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory adjustment) |
$ |
3,381,967 |
|
|
$ |
377,740 |
|
|
$ |
— |
|
|
$ |
(149,179 |
) |
|
$ |
3,610,528 |
|
|
Lower of cost or market inventory valuation adjustment |
$ |
30,708 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
30,708 |
|
|
Operating expenses |
$ |
301,407 |
|
|
$ |
60,868 |
|
|
$ |
38,951 |
|
|
$ |
(17,596 |
) |
|
$ |
383,630 |
|
|
Selling, general and administrative expenses |
$ |
32,196 |
|
|
$ |
42,914 |
|
|
$ |
2,929 |
|
|
$ |
15,220 |
|
|
$ |
93,259 |
|
|
Depreciation and amortization |
$ |
82,527 |
|
|
$ |
22,890 |
|
|
$ |
24,514 |
|
|
$ |
4,649 |
|
|
$ |
134,580 |
|
|
Income (loss) from operations |
$ |
76,343 |
|
|
$ |
11,718 |
|
|
$ |
65,240 |
|
|
$ |
(24,118 |
) |
|
$ |
129,183 |
|
|
Income (loss) before interest and income taxes |
$ |
76,343 |
|
|
$ |
11,681 |
|
|
$ |
65,532 |
|
|
$ |
(21,826 |
) |
|
$ |
131,730 |
|
|
Net income attributable to noncontrolling interest |
$ |
— |
|
|
$ |
— |
|
|
$ |
1,457 |
|
|
$ |
19,007 |
|
|
$ |
20,464 |
|
|
Earnings of equity method investments |
$ |
— |
|
|
$ |
— |
|
|
$ |
(37 |
) |
|
$ |
— |
|
|
$ |
(37 |
) |
|
Capital expenditures |
$ |
69,835 |
|
|
$ |
15,110 |
|
|
$ |
6,284 |
|
|
$ |
7,477 |
|
|
$ |
98,706 |
|
|
|
Refining |
|
Lubricants |
|
HEP |
|
Corporate, |
|
Consolidated |
|||||||||
|
|
(In thousands) |
|||||||||||||||||
|
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 and long-lived asset impairments |
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31, 2019 |
|
|
|
|
|
|
|
|
||||||||||
|
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
$ |
15,284,110 |
|
|
$ |
2,081,221 |
|
|
$ |
121,027 |
|
$ |
220 |
|
|
$ |
17,486,578 |
|
|
Intersegment revenues |
312,678 |
|
|
11,307 |
|
|
411,750 |
|
(735,735 |
) |
|
— |
|
|||||
|
|
$ |
15,596,788 |
|
|
$ |
2,092,528 |
|
|
$ |
532,777 |
|
$ |
(735,515 |
) |
|
$ |
17,486,578 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory adjustment) |
$ |
12,980,506 |
|
|
$ |
1,580,036 |
|
|
$ |
— |
|
$ |
(642,158 |
) |
|
$ |
13,918,384 |
|
|
Lower of cost or market inventory valuation adjustment |
$ |
(119,775 |
) |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
(119,775 |
) |
|
Operating expenses |
$ |
1,095,488 |
|
|
$ |
231,523 |
|
|
$ |
161,996 |
|
$ |
(94,955 |
) |
|
$ |
1,394,052 |
|
|
Selling, general and administrative expenses |
$ |
120,518 |
|
|
$ |
168,595 |
|
|
$ |
10,251 |
|
$ |
54,872 |
|
|
$ |
354,236 |
|
|
Depreciation and amortization |
$ |
309,932 |
|
|
$ |
88,781 |
|
|
$ |
96,706 |
|
$ |
14,506 |
|
|
$ |
509,925 |
|
|
Goodwill impairment |
$ |
— |
|
|
$ |
152,712 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
152,712 |
|
|
Income (loss) from operations |
$ |
1,210,119 |
|
|
$ |
(129,119 |
) |
|
$ |
263,824 |
|
$ |
(67,780 |
) |
|
$ |
1,277,044 |
|
|
Income (loss) before interest and income taxes |
$ |
1,210,119 |
|
|
$ |
(128,837 |
) |
|
$ |
304,442 |
|
$ |
(93,038 |
) |
|
$ |
1,292,686 |
|
|
Net income attributable to noncontrolling interest |
$ |
— |
|
|
$ |
— |
|
|
$ |
4,981 |
|
$ |
94,983 |
|
|
$ |
99,964 |
|
|
Earnings of equity method investments |
$ |
— |
|
|
$ |
— |
|
|
$ |
5,180 |
|
$ |
— |
|
|
$ |
5,180 |
|
|
Capital expenditures |
$ |
199,002 |
|
|
$ |
40,997 |
|
|
$ |
30,112 |
|
$ |
23,652 |
|
|
$ |
293,763 |
|
|
|
Refining |
|
Lubricants |
|
HEP |
Corporate, |
|
Consolidated |
||||||
|
|
(In thousands) |
|||||||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents |
$ |
9,755 |
|
$ |
169,277 |
|
$ |
13,287 |
|
$ |
692,843 |
|
$ |
885,162 |
|
Total assets |
$ |
7,189,094 |
|
$ |
2,223,418 |
|
$ |
2,205,437 |
|
$ |
546,892 |
|
$ |
12,164,841 |
|
Long-term debt |
$ |
— |
|
$ |
— |
|
$ |
1,462,031 |
|
$ |
993,609 |
|
$ |
2,455,640 |
Contacts
Richard L. Voliva III, Executive Vice President and Chief Financial Officer
Craig Biery, Vice President, Investor Relations
HollyFrontier Corporation
214-954-6510