Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — HollyFrontier — Shareholder Meeting (May 2013)
11 slides from Hf Sinclair's shareholder meeting presentation, May 15, 2013
Slide 1: Annual Shareholder Meeting May 15, 2013
Annual Shareholder Meeting May 15, 2013
Slide 2: Forward-Looking Statements
sHOLLY FRONTIER: ae seers BSE Statements made during the course sa this pecorino that are not historical facts are “forward looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently uncertain and ee involve risks that m
Slide 3: Agenda
Agenda 3 1. Financial Performance 2. Margin Environment 3. Margin Drivers 4. Total Shareholder Returns 5. Cash Distribution Strategy 6. Strategic Accomplishments
Slide 4: 2012 Financial Performance
4 2012 Financial Performance $0 $500 $1,000 $1,500 $2,000 2011 2012 $1,023 $1,727 Net Income $0 $1,000 $2,000 $3,000 $4,000 2011 2012 $1,842 $3,097 EBITDA $0 $2 $4 $6 $8 $10 2011 2012 $6.42 $8.38 EPS 2012 EPS +30% vs 2011 2012 Net Income +69% vs 2011 2012 EBITDA +68% vs 2011
Slide 5: Margin Environment: Margins above 5-year average
5 Margin Environment Margins above 5-year average range for much of 2012 across all of our regions 2012 MidCon 321 Crack Spread 27% above 2011 2012 MidCon 321 Crack Spread $32.59 2011 MidCon 321 Crack Spread $25.67 Source: Macquarie
Slide 6: Margin Environment: 2012 Gross Margin per Barrel
6 Margin Environment HFC 2012 Reported Consolidated Gross Margin per Barrel 21% Above 2011 Levels HFC Consolidated Refinery Gross Margin per Barrel $24.89 vs 2011 $20.64 Rockies GM/BBL $27.15 vs 2011 25.04, +8% yoy MidCon GM/BBL $23.42 vs 2011 19.59, +20% yoy Southwest GM/BBL $26.92 vs 201
Slide 7: Margin Drivers
7 Margin Drivers WTI/Brent Spread $17.46 WTI Discount to Brent on average for 2012 Discounted Heavy Crudes $22.31 WCS Discount to WTI on average for 2012 The US is a Net Exporter Of Refined Products Net Product Exports 1.5 million BPD in Dec. 2012 -3000 -2500 -2000 -1500 -1000 -500 0 500
Slide 8: Total 2012 Shareholder Return
Total 2012 Shareholder Return 8 HFC Total 2012 Share Price Appreciation 99% Compared to Sector Average 83% 12/30/11 Stock Price $23.40 12/31/12 Stock Price $46.55 HFC Total 2012 Shareholder Return 112% Compared to Sector Average 89% $3.10 per share cash dividends paid in 2012 **HFC split a
Slide 9: Cash Distribution Strategy
Cash Distribution Strategy 9 milli o n s Strategy is to return a significant portion of cash earnings to shareholders through: Growing Regular Dividends, evaluated quarterly Special Dividends, evaluated quarterly Opportunistic share repurchases Best in Class Dividend Yield 12.9% cash ret
Slide 10: Goal of Generating High Long-Term Return on Capital Employed
1 0 Goal of Generating High Long-Term Return on Capital Employed 10-year average ROCE of 23% 20-year average ROCE of 15% -5% 5% 15% 25% 35% 45% 55% ROCE 20 Year Average 10 Year Average 10 and 20 year average ROCE calculated by taking the average of ROCE’s for the years 1992-2012. ROCE calculated by
Slide 11: 2012 Strategic Accomplishments
1 1 2012 Strategic Accomplishments Improved Environmental, Health and Safety Performance 17% reduction in environmental events 34% reduction in process safety incidents UNEV Pipeline Sale to HEP – July 2012 Sale of HFC’s 75% interest in UNEV Pipeline, LLC Purchase price $315 million of which