Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Bank of America Securities-Merrill Lynch Credit Conference 2010
19 slides from Hf Sinclair's conference presentation, Nov 17, 2010
Slide 1: Holly Corporation / Holly Energy Partners BofA Merrill Lynch Credit Conference
Holly Corporation Holly Energy Partners Bank of America Securities-Merrill Lynch Credit Conference November 17, 2010
Slide 2: Disclosure Statement
2 Disclosure Statement Statements made during the course of this presentation 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 are inherently uncertain and necessarily involve r
Slide 3: Presentation Outline
4 Presentation Outline Overview of Holly and HEP Financial Performance Focused Growth Orientation Conclusion
Slide 4: Overview of Holly and HEP
5 Overview of Holly and HEP Holly Corporation: Holly's refineries operate in Southwest, Rockies & Mid-Continent markets Over 250,000 bpsd of refining capacity and average complexity of over 12.0 Refineries directly connected to domestic or Canadian crude trading hubs Owns 100% of GP and 7.3 million
Slide 5: Holly Investment Highlights
6 Holly Investment Highlights Holly Investment Highlights 1 - HEP's annualized cash distributions as of 9/30/10 to HOC exceed $37M for LP and GP ownership interests 1
Slide 6: HEP Investment Highlights
7 100% fee based revenue business Long term contracts supporting revenue stream Proven track record of distribution increases No commodity ownership risk or related hedging Well maintained assets serving high growth markets Senior management team averages over 25 years of industry experience HEP Inv
Slide 7: Presentation Outline
8 Presentation Outline Overview of Holly and HEP Financial Performance Focused Growth Orientation Conclusion
Slide 8: Holly Corporation Financial Summary
Holly Corporation Financial Summary (in millions) 1 1 - Capacity volumes are based in thousands 2 - Excludes $480M of HEP debt that is nonrecourse to HOC. 3 - As of 9/30/2010 *Definition for non-GAAP measures such as EBITDA or Margins can be located on page 20. 9 EBITDA Balance Sheet / Liquidity 1 2
Slide 9: Refining Margins
10 Refining Margins (2004-2009 range) 1 - Actual realized gross margin. 2 - PADD II 3-2-1 gross margin proxy for Tulsa refineries * Definition for non-GAAP measures such as EBITDA or Margins can be located on page 20. Tulsa Gulf Coast 3-2-1: 5 Yr. Avg. 2 Navajo Gulf Coast 3-2-1: 5 Yr. Avg. 1 Woods C
Slide 10: Presentation Outline
12 Presentation Outline Overview of Holly and HEP Financial Performance Focused Growth Orientation Conclusion
Slide 11: HOC Growth - Thru Strategic Investments & Acquisitions
HOC Growth - Thru Strategic Investments & Acquisitions Approx $500mm invested for modest growth and enhanced feedstock flexibility Synergistic acquisitions of Tulsa refineries at less than $1,000 per daily bbl* Uniquely positioned among peers to enter up-cycle at more than double previous capacity 1
Slide 12: Strong Returns on Capital and Conservative Balance Sheet
Strong Returns on Capital and Conservative Balance Sheet 14 1 - Debt levels exclude Sunoco Logistics (SLX) Debt 2 - HOC debt excludes HEP Debt ($489M @ 9/30/2010, which is non recourse to HOC). Supporting calculations /details are located on page 21. 3 - HOC Cash @ 9/30/2010. See page 9 for details.
Slide 13: HEP EBITDA Growth Since Inception
15 From IPO thru 2008 2009 HEP EBITDA Growth Since Inception
Slide 14: UNEV Pipeline & Refinery Economics
16 UNEV Pipeline & Refinery Economics Overview: 400 mile, 12" refined products pipeline from Salt Lake City to Las Vegas with terminals in Cedar City, UT and Las Vegas, NV Holly owns 75% interest (Sinclair 25%) Completion Date - Spring 2011 Benefits: Las Vegas trades at premium to Salt Lake Lowers i
Slide 15: Presentation Outline
17 Presentation Outline Overview of Holly and HEP Financial Performance Focused Growth Orientation Conclusion
Slide 16: Conclusion
18 Conclusion Holly Corporation: Competitive refining assets in attractive markets Recent investments to make legacy refineries even stronger Low entry cost for very complex Tulsa refining facility (Sunoco + Sinclair) Conservative capital structure plus experienced management team HEP ownership ($36
Slide 17: Holly Corporation / Holly Energy Partners Contact
19 Holly Corporation Holly Energy Partners 100 Crescent Court, Suite 1600 Dallas, Texas 75201 (214) 871-3555 Bruce R. Shaw, SVP-Chief Financial Officer M. Neale Hickerson, VP-Investor Relations www.hollycorp.com www.hollyenergy.com
Slide 18: Definitions
20 Definitions Non GAPP measurements: We report certain financial measures that are not prescribed or authorized by U. S. generally accepted accounting principles ("GAAP"). We discuss management's reasons for reporting these non-GAAP measures below. Although management evaluates and presents these n
Slide 19: Financial metrics
Financial metrics 21 **Amounts from Frontier Oil Corp, Sunoco Inc., Sunoco Inc.: xSXL, Tesoro Corp and Valero Energy Corp are based on publicly- available financial statements of these issuers, which we have assumed to be accurate.
Holly — Bank of America Securities-Merrill Lynch Credit Conference 2010 on 6ix