- Reported net loss attributable to HollyFrontier stockholders of $(2.4) million, or $(0.01) per diluted share, and adjusted net loss of $(66.9) million, or $(0.41) per diluted share, for the third quarter
- Reported EBITDA of $157.0 million and adjusted EBITDA of $65.6 million for the third quarter
- Raised $750.0 million in a public bond offering in the third quarter to enhance liquidity and fund expansion into renewable diesel production
DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported third quarter net loss attributable to HollyFrontier stockholders of $(2.4) million, or $(0.01) per diluted share, for the quarter ended September 30, 2020, compared to net income of $261.8 million, or $1.58 per diluted share, for the quarter ended September 30, 2019.
The third quarter results reflect special items that collectively increased net income by a total of $64.5 million. On a pre-tax basis, these items include HollyFrontier's pro-rata share of a gain recognized upon the settlement of the Company's business interruption claim with its insurance carrier related to a loss at the Woods Cross Refinery totaling $77.1 million and a lower of cost or market inventory valuation adjustment of $62.8 million, partially offset by charges related to the Cheyenne Refinery conversion to renewable diesel production, including last-in, first-out (“LIFO”) inventory liquidation costs of $33.8 million, decommissioning charges of $12.3 million and severance charges totaling $2.4 million. Excluding these items, net loss for the current quarter was $(66.9) million ($(0.41) per diluted share) compared to net income of $278.0 million ($1.68 per diluted share) for the third quarter of 2019, which excludes certain items that collectively decreased net income by $16.2 million.
HollyFrontier’s President & CEO, Michael Jennings, commented, “Despite the difficult operating environment, HollyFrontier delivered solid results in the third quarter, led by resilient financial performances from our lubricants and midstream businesses. In August, we ran the last barrel of crude oil at Cheyenne and began the conversion to renewable diesel production. I would like to thank all of the employees at Cheyenne for safely achieving this milestone. In September, we reinforced our strong liquidity position through the successful $750.0 million bond offering, providing us the necessary capital to fully fund the previously announced renewable diesel projects at our Artesia, New Mexico and Cheyenne, Wyoming facilities.”
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 third quarter of 2020, demand for transportation fuels remained challenged while lubricants and specialties saw meaningful improvement in industrial and transportation-related markets and increased global demand for base oils.
The Refining segment reported adjusted EBITDA of $(53.6) million for the third quarter of 2020 compared to $424.6 million for the third 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 third quarter of 2020 was $4.93 per produced barrel, a 71% decrease compared to $17.23 for the third quarter of 2019. Crude oil charge averaged 390,580 barrels per day (“BPD”) for the current quarter compared to 476,030 BPD for the third quarter of 2019.
The Lubricants and Specialty Products segment reported EBITDA of $60.6 million for the third quarter of 2020 compared to $38.0 million in the third quarter of 2019. This increase was driven by the strong recovery in global demand for finished lubricants and base oils, resulting in higher sales volumes and margins during the quarter.
Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $55.3 million for the third quarter of 2020 compared to $123.1 million in the third quarter of 2019. Reported EBITDA for the third quarter of 2020 included a $35.7 million goodwill impairment charge, and reported EBITDA for the third quarter of 2019 included a $35.2 million gain on sales-type leases, both of which eliminated on the Company's consolidation.
For the third quarter of 2020, net cash provided by operations totaled $81.7 million. During the period, HollyFrontier declared and paid a dividend of $0.35 per share to shareholders totaling $57.2 million. At September 30, 2020, the Company's cash and cash equivalents totaled $1,524.9 million, a $622.4 million increase over cash and cash equivalents of $902.5 million at June 30, 2020. Additionally, the Company's consolidated debt was $3,176.3 million. The Company’s debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $1,736.5 million at September 30, 2020.
The Company has scheduled a webcast conference call for today, November 5, 2020, at 8:30 AM Eastern Time to discuss third quarter financial results. This webcast may be accessed at: https://event.on24.com/wcc/r/2628168/9BE4DA1E13C98135F6352CD76762D475. An audio archive of this webcast will be available using the above noted link through November 19, 2020.
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 the continuation of a material 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; effects of governmental and environmental regulations and policies, including the effects of current 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; further 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 |
$ |
2,819,400 |
|
|
|
$ |
4,424,828 |
|
|
|
$ |
(1,605,428 |
) |
|
|
(36 |
)% |
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||||
Cost of products sold: |
|
|
|
|
|
|
|
||||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
2,377,238 |
|
|
|
3,403,767 |
|
|
|
(1,026,529 |
) |
|
|
(30 |
) |
|||
Lower of cost or market inventory valuation adjustment |
(62,849 |
) |
|
|
34,062 |
|
|
|
(96,911 |
) |
|
|
(285 |
) |
|||
|
2,314,389 |
|
|
|
3,437,829 |
|
|
|
(1,123,440 |
) |
|
|
(33 |
) |
|||
Operating expenses |
332,496 |
|
|
|
345,578 |
|
|
|
(13,082 |
) |
|
|
(4 |
) |
|||
Selling, general and administrative expenses |
74,453 |
|
|
|
87,626 |
|
|
|
(13,173 |
) |
|
|
(15 |
) |
|||
Depreciation and amortization |
125,280 |
|
|
|
127,016 |
|
|
|
(1,736 |
) |
|
|
(1 |
) |
|||
Total operating costs and expenses |
2,846,618 |
|
|
|
3,998,049 |
|
|
|
(1,151,431 |
) |
|
|
(29 |
) |
|||
Income (loss) from operations |
(27,218 |
) |
|
|
426,779 |
|
|
|
(453,997 |
) |
|
|
(106 |
) |
|||
|
|
|
|
|
|
|
|
||||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||||
Earnings of equity method investments |
1,316 |
|
|
|
1,334 |
|
|
|
(18 |
) |
|
|
(1 |
) |
|||
Interest income |
1,011 |
|
|
|
6,164 |
|
|
|
(5,153 |
) |
|
|
(84 |
) |
|||
Interest expense |
(30,589 |
) |
|
|
(36,027 |
) |
|
|
5,438 |
|
|
|
(15 |
) |
|||
Gain on business interruption insurance settlement |
81,000 |
|
|
|
— |
|
|
|
81,000 |
|
|
|
— |
|
|||
Gain on foreign currency transactions |
1,030 |
|
|
|
395 |
|
|
|
635 |
|
|
|
161 |
|
|||
Other, net |
1,368 |
|
|
|
2,356 |
|
|
|
(988 |
) |
|
|
(42 |
) |
|||
|
55,136 |
|
|
|
(25,778 |
) |
|
|
80,914 |
|
|
|
(314 |
) |
|||
Income before income taxes |
27,918 |
|
|
|
401,001 |
|
|
|
(373,083 |
) |
|
|
(93 |
) |
|||
Income tax expense |
4,573 |
|
|
|
103,021 |
|
|
|
(98,448 |
) |
|
|
(96 |
) |
|||
Net income |
23,345 |
|
|
|
297,980 |
|
|
|
(274,635 |
) |
|
|
(92 |
) |
|||
Less net income attributable to noncontrolling interest |
25,746 |
|
|
|
36,167 |
|
|
|
(10,421 |
) |
|
|
(29 |
) |
|||
Net income (loss) attributable to HollyFrontier stockholders |
$ |
(2,401 |
) |
|
|
$ |
261,813 |
|
|
|
$ |
(264,214 |
) |
|
|
(101 |
)% |
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share attributable to HollyFrontier stockholders: |
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(0.01 |
) |
|
|
$ |
1.60 |
|
|
|
$ |
(1.61 |
) |
|
|
(101 |
)% |
Diluted |
$ |
(0.01 |
) |
|
|
$ |
1.58 |
|
|
|
$ |
(1.59 |
) |
|
|
(101 |
)% |
Cash dividends declared per common share |
$ |
0.35 |
|
|
|
$ |
0.33 |
|
|
|
$ |
0.02 |
|
|
|
6 |
% |
Average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||||
Basic |
162,015 |
|
|
|
163,676 |
|
|
|
(1,661 |
) |
|
|
(1 |
)% |
|||
Diluted |
162,015 |
|
|
|
165,011 |
|
|
|
(2,996 |
) |
|
|
(2 |
)% |
|||
|
|
|
|
|
|
|
|
||||||||||
EBITDA |
$ |
157,030 |
|
|
|
$ |
521,713 |
|
|
|
$ |
(364,683 |
) |
|
|
(70 |
)% |
Adjusted EBITDA |
$ |
65,638 |
|
|
|
$ |
523,082 |
|
|
|
$ |
(457,444 |
) |
|
|
(87 |
)% |
|
Nine Months Ended |
|
Change from 2019 |
||||||||||||||
|
2020 |
|
2019 |
|
Change |
|
Percent |
||||||||||
|
(In thousands, except per share data) |
||||||||||||||||
Sales and other revenues |
$ |
8,282,875 |
|
|
|
$ |
13,104,690 |
|
|
|
$ |
(4,821,815 |
) |
|
|
(37 |
)% |
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||||
Cost of products sold: |
|
|
|
|
|
|
|
||||||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
6,647,960 |
|
|
|
10,307,856 |
|
|
|
(3,659,896 |
) |
|
|
(36 |
) |
|||
Lower of cost or market inventory valuation adjustment |
227,711 |
|
|
|
(150,483 |
) |
|
|
378,194 |
|
|
|
(251 |
) |
|||
|
6,875,671 |
|
|
|
10,157,373 |
|
|
|
(3,281,702 |
) |
|
|
(32 |
) |
|||
Operating expenses |
964,200 |
|
|
|
1,010,422 |
|
|
|
(46,222 |
) |
|
|
(5 |
) |
|||
Selling, general and administrative expenses |
237,559 |
|
|
|
260,977 |
|
|
|
(23,418 |
) |
|
|
(9 |
) |
|||
Depreciation and amortization |
396,033 |
|
|
|
375,345 |
|
|
|
20,688 |
|
|
|
6 |
|
|||
Long-lived asset and goodwill impairments |
436,908 |
|
|
|
152,712 |
|
|
|
284,196 |
|
|
|
186 |
|
|||
Total operating costs and expenses |
8,910,371 |
|
|
|
11,956,829 |
|
|
|
(3,046,458 |
) |
|
|
(25 |
) |
|||
Income (loss) from operations |
(627,496 |
) |
|
|
1,147,861 |
|
|
|
(1,775,357 |
) |
|
|
(155 |
) |
|||
|
|
|
|
|
|
|
|
||||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||||
Earnings of equity method investments |
5,186 |
|
|
|
5,217 |
|
|
|
(31 |
) |
|
|
(1 |
) |
|||
Interest income |
6,590 |
|
|
|
17,127 |
|
|
|
(10,537 |
) |
|
|
(62 |
) |
|||
Interest expense |
(85,923 |
) |
|
|
(106,938 |
) |
|
|
21,015 |
|
|
|
(20 |
) |
|||
Gain on business interruption insurance settlement |
81,000 |
|
|
|
— |
|
|
|
81,000 |
|
|
|
— |
|
|||
Gain on sales-type leases |
33,834 |
|
|
|
— |
|
|
|
33,834 |
|
|
|
— |
|
|||
Loss on early extinguishment of debt |
(25,915 |
) |
|
|
— |
|
|
|
(25,915 |
) |
|
|
— |
|
|||
Gain (loss) on foreign currency transactions |
(918 |
) |
|
|
4,873 |
|
|
|
(5,791 |
) |
|
|
(119 |
) |
|||
Other, net |
4,790 |
|
|
|
3,005 |
|
|
|
1,785 |
|
|
|
59 |
|
|||
|
18,644 |
|
|
|
(76,716 |
) |
|
|
95,360 |
|
|
|
(124 |
) |
|||
Income (loss) before income taxes |
(608,852 |
) |
|
|
1,071,145 |
|
|
|
(1,679,997 |
) |
|
|
(157 |
) |
|||
Income tax expense (benefit) |
(188,504 |
) |
|
|
279,862 |
|
|
|
(468,366 |
) |
|
|
(167 |
) |
|||
Net income (loss) |
(420,348 |
) |
|
|
791,283 |
|
|
|
(1,211,631 |
) |
|
|
(153 |
) |
|||
Less net income attributable to noncontrolling interest |
63,353 |
|
|
|
79,500 |
|
|
|
(16,147 |
) |
|
|
(20 |
) |
|||
Net income (loss) attributable to HollyFrontier stockholders |
$ |
(483,701 |
) |
|
|
$ |
711,783 |
|
|
|
$ |
(1,195,484 |
) |
|
|
(168 |
)% |
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share attributable to HollyFrontier stockholders: |
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(2.99 |
) |
|
|
$ |
4.23 |
|
|
|
$ |
(7.22 |
) |
|
|
(171 |
)% |
Diluted |
$ |
(2.99 |
) |
|
|
$ |
4.20 |
|
|
|
$ |
(7.19 |
) |
|
|
(171 |
)% |
Cash dividends declared per common share |
$ |
1.05 |
|
|
|
$ |
0.99 |
|
|
|
$ |
0.06 |
|
|
|
6 |
% |
Average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||||
Basic |
161,927 |
|
|
|
167,935 |
|
|
|
(6,008 |
) |
|
|
(4 |
)% |
|||
Diluted |
161,927 |
|
|
|
169,125 |
|
|
|
(7,198 |
) |
|
|
(4 |
)% |
|||
|
|
|
|
|
|
|
|
||||||||||
EBITDA |
$ |
(196,839 |
) |
|
|
$ |
1,456,801 |
|
|
|
$ |
(1,653,640 |
) |
|
|
(114 |
)% |
Adjusted EBITDA |
$ |
434,118 |
|
|
|
$ |
1,451,864 |
|
|
|
$ |
(1,017,746 |
) |
|
|
(70 |
)% |
Balance Sheet Data |
|||||||
|
September 30, |
|
December 31, |
||||
|
2020 |
|
2019 |
||||
|
(In thousands) |
||||||
Cash and cash equivalents |
$ |
1,524,888 |
|
|
$ |
885,162 |
|
Working capital |
$ |
2,081,978 |
|
|
$ |
1,620,261 |
|
Total assets |
$ |
11,579,741 |
|
|
$ |
12,164,841 |
|
Long-term debt |
$ |
3,176,349 |
|
|
$ |
2,455,640 |
|
Total equity |
$ |
5,876,569 |
|
|
$ |
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 includes the operations of our El Dorado, Tulsa, Navajo, Cheyenne and 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 regions of the United States. HFC Asphalt operates various terminals in Arizona, New Mexico and Oklahoma.
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 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 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Three Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
|||||||||||
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Revenues from external customers |
|
$ |
3,865,399 |
|
|
$ |
529,561 |
|
$ |
29,868 |
|
$ |
— |
|
|
$ |
4,424,828 |
|
|
Intersegment revenues |
|
81,571 |
|
|
8,157 |
|
106,027 |
|
(195,755 |
) |
|
— |
|
||||||
|
|
$ |
3,946,970 |
|
|
$ |
537,718 |
|
$ |
135,895 |
|
$ |
(195,755 |
) |
|
$ |
4,424,828 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory) |
|
$ |
3,177,167 |
|
|
$ |
397,926 |
|
$ |
— |
|
$ |
(171,326 |
) |
|
$ |
3,403,767 |
|
|
Lower of cost or market inventory valuation adjustment |
|
$ |
34,062 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
34,062 |
|
|
Operating expenses |
|
$ |
276,869 |
|
|
$ |
57,974 |
|
$ |
44,924 |
|
$ |
(34,189 |
) |
|
$ |
345,578 |
|
|
Selling, general and administrative expenses |
|
$ |
31,707 |
|
|
$ |
43,875 |
|
$ |
2,714 |
|
$ |
9,330 |
|
|
$ |
87,626 |
|
|
Depreciation and amortization |
|
$ |
76,765 |
|
|
$ |
22,700 |
|
$ |
24,121 |
|
$ |
3,430 |
|
|
$ |
127,016 |
|
|
Income (loss) from operations |
|
$ |
350,400 |
|
|
$ |
15,243 |
|
$ |
64,136 |
|
$ |
(3,000 |
) |
|
$ |
426,779 |
|
|
Income (loss) before interest and income taxes |
|
$ |
350,400 |
|
|
$ |
15,325 |
|
$ |
100,778 |
|
$ |
(35,639 |
) |
|
$ |
430,864 |
|
|
Net income attributable to noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
$ |
1,004 |
|
$ |
35,163 |
|
|
$ |
36,167 |
|
|
Earnings of equity method investments |
|
$ |
— |
|
|
$ |
— |
|
$ |
1,334 |
|
$ |
— |
|
|
$ |
1,334 |
|
|
Capital expenditures |
|
$ |
53,506 |
|
|
$ |
8,697 |
|
$ |
6,076 |
|
$ |
6,310 |
|
|
$ |
74,589 |
|
|
|
|
Refining |
|
Lubricants
|
|
HEP |
|
Corporate,
|
|
Consolidated
|
|||||||||
|
|
(In thousands) |
|||||||||||||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Nine Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
|||||||||||
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Revenues from external customers |
|
$ |
11,446,841 |
|
|
$ |
1,568,241 |
|
|
$ |
89,388 |
|
$ |
220 |
|
|
$ |
13,104,690 |
|
Intersegment revenues |
|
244,799 |
|
|
8,157 |
|
|
311,755 |
|
(564,711 |
) |
|
— |
|
|||||
|
|
$ |
11,691,640 |
|
|
$ |
1,576,398 |
|
|
$ |
401,143 |
|
$ |
(564,491 |
) |
|
$ |
13,104,690 |
|
Cost of products sold (exclusive of lower of cost or market inventory) |
|
$ |
9,598,539 |
|
|
$ |
1,202,296 |
|
|
$ |
— |
|
$ |
(492,979 |
) |
|
$ |
10,307,856 |
|
Lower of cost or market inventory valuation adjustment |
|
$ |
(150,483 |
) |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
(150,483 |
) |
Operating expenses |
|
$ |
794,081 |
|
|
$ |
170,655 |
|
|
$ |
123,045 |
|
$ |
(77,359 |
) |
|
$ |
1,010,422 |
|
Selling, general and administrative expenses |
|
$ |
88,322 |
|
|
$ |
125,681 |
|
|
$ |
7,322 |
|
$ |
39,652 |
|
|
$ |
260,977 |
|
Depreciation and amortization |
|
$ |
227,405 |
|
|
$ |
65,891 |
|
|
$ |
72,192 |
|
$ |
9,857 |
|
|
$ |
375,345 |
|
Goodwill impairment |
|
$ |
— |
|
|
$ |
152,712 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
152,712 |
|
Income (loss) from operations |
|
$ |
1,133,776 |
|
|
$ |
(140,837 |
) |
|
$ |
198,584 |
|
$ |
(43,662 |
) |
|
$ |
1,147,861 |
|
Income (loss) before interest and income taxes |
|
$ |
1,133,776 |
|
|
$ |
(140,518 |
) |
|
$ |
238,910 |
|
$ |
(71,212 |
) |
|
$ |
1,160,956 |
|
Net income attributable to noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,524 |
|
$ |
75,976 |
|
|
$ |
79,500 |
|
Earnings of equity method investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,217 |
|
$ |
— |
|
|
$ |
5,217 |
|
Capital expenditures |
|
$ |
129,167 |
|
|
$ |
25,887 |
|
|
$ |
23,828 |
|
$ |
16,175 |
|
|
$ |
195,057 |
|
|
|
Refining |
|
Lubricants
|
|
HEP |
|
Corporate,
|
|
Consolidated
|
||||||||||
|
|
(In thousands) |
||||||||||||||||||
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
|
$ |
6,085 |
|
|
$ |
211,646 |
|
|
$ |
18,091 |
|
|
$ |
1,289,066 |
|
|
$ |
1,524,888 |
|
Total assets |
|
$ |
6,197,301 |
|
|
$ |
1,933,482 |
|
|
$ |
2,193,770 |
|
|
$ |
1,255,188 |
|
|
$ |
11,579,741 |
|
Long-term debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,439,874 |
|
|
$ |
1,736,475 |
|
|
$ |
3,176,349 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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
Read full story here
Author:This email address is being protected from spambots. You need JavaScript enabled to view it.
