Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Investor Presentation (June 2009)
23 slides from Hf Sinclair's investor presentation, Jun 23, 2009
Slide 1: Holly Corporation Summer 2009 Update
Holly Corporation Summer 2009 Update
Slide 2: Holly Corporation Disclosure Statement
Holly Corporation 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 neces
Slide 3: Holly Investment Highlights
Holly Investment Highlights Pure Play Refiner Owns 3 refineries with combined processing capacity of 216,000 barrels per day (bpsd) 40 years of refining experience-entered refining business in 1969 Competitive Assets High complexity facilities with access to multiple sources of crude supply Ability
Slide 4: Existing Asset Location / Business Footprint
Existing Asset Location / Business Footprint Holly Corporation: Holly's refineries operate in Southwest, Rockies & Mid-Continent markets 216,000 bpsd of refining capacity Refineries directly connected to Domestic or Canadian crude trading hubs Holly Energy Partners: Over 2,500 miles of refined produ
Slide 5: Strong Returns on Capital and Conservative Balance Sheet
Strong Returns on Capital and Conservative Balance Sheet Low Debt Level Compared to Peers Strong Historical Margins from Operations 1 HOC standalone (excludes HEP) 2 3/31/09 actuals w/ HOC Senior Notes included on a pro-forma basis 1 Pre-Tax Margin - 20081 Annual Return on Invested Capital (5 years
Slide 6: Navajo Refinery
Navajo Refinery Product Sales Mix1 Overview 561 acre site located in Artesia, NM with crude capacity of 100,000 BPSD (expanded in Q1 2009) Ability to process sour crude oils into high value light products Distributes to high margin markets in Arizona, New Mexico and West Texas Nelson Complexity rati
Slide 7: Woods Cross Refinery
Woods Cross Refinery Product Sales Mix1 Overview 200 acre site located in Woods Cross, UT (near Salt Lake City) with crude oil capacity of 31,000 BPSD Processes regional sweet and lower cost black wax crude as well as Canadian sour crude oils Distributes to high margin markets in Utah, Idaho, Nevada
Slide 8: Tulsa Refinery Production Mix
Tulsa Refinery Production Mix1 Overview Tulsa refinery has crude capacity of 85,000 BPSD Produces high value specialty lubricant products (lubes, waxes & oils) Strategically located near the Cushing crude oil hub and Magellan product system that supplies the Mid-Continent market Nelson Complexity ra
Slide 9: Holly Historical EBITDA & key refinery measures
Gross Margin: Capacity: (in thousands) Utilization %: 2003 2004 2005 2006 2007 2008 East 112 174 303 414 528.9 262 $7.23/BBL 107 bpd 93.2% $9.20/BBL 109 bpd 94.7% $12.62/BBL 109 bpd 95.0% $15.78/BBL 109 bpd 92.4% $16.74/BBL 111 bpd 94.1% 9 Holly Historical EBITDA (in millions) & key refinery measure
Slide 10: Adjusted EBITDA Calculation
Adjusted EBITDA Calculation
Slide 11: NRC Refining Margins (2004-2008 range)
NRC Refining Margins (2004-2008 range) Q1 Q2 Q3 Q4 East 6.43 8.07 8.56 7.47 West 3.35 7.26 4.03 3.23 0.2 0.2 0.2 0.2 6.56 12.01 3.32 3.46 nrc 08 gm 6.43 8.07 12.69 10.8 gc 321 8.33 14.61 12.86 6.62 08 gm 0 line 2006 gm Rev bud Bud 06 Red bars represent '04-'08 5-yr. high & low gross margin range by
Slide 12: Woods Cross Refining Margins (2004-2008 range)
Q1 Q2 Q3 Q4 East 3.17 10.07 4.26 4.98 West 6.18 2.32 15.43 9.97 0.2 0.2 0.2 0.2 5.19 18.63 8.15 2.13 wx 08 gm 12.54 12.49 28.04 17 gc 321 8.33 14.61 12.86 6.62 08 gm 0 line 2006 gm Rev bud Bud 06 Woods Cross Refining Margins (2004-2008 range): Red bars represent '04-'08 5-yr. high & low gross margin
Slide 13: Refining: Value Added Project Timeline
Through Q1 2009, $70 million has been spent on refining expansion & processing upgrades The balance to spend for Navajo/Woods Cross projects is approximately $100 million (to be complete Q4 2009) The estimated spending for the Tulsa ULSD projects is $150 million (primarily 2010/2011 spending) Refini
Slide 14: Pipelines: Value Added Project Timeline
Pipelines: Value Added Project Timeline Through Q1 2009, $40 million has been spent on pipeline projects The balance to spend on Navajo pipeline projects is approximately $25-30 million (to be complete Q4 2009) The estimated spending for the UNEV pipeline capital projects is $35-40 million in 2009,
Slide 15: Enhanced Competitive Position
Enhanced Competitive Position Enables refinery to shift up to 40% of its crude slate to lower priced heavy crudes Refinery Enhancements Nearing Completion Recently Completed Refinery Enhancements Increased capacity 19% Increased lower cost black wax and Canadian crude processing from 20 to 50% Incre
Slide 16: Holly Investment Highlights
Holly Investment Highlights Pure Play Refiner Owns 3 refineries with combined processing capacity of 216,000 barrels per day (bpsd) 40 years of refining experience-entered refining business in 1969 Competitive Assets High complexity facilities with access to multiple sources of crude supply Ability
Slide 17: Holly Corporation contact details
Holly Corporation 100 Crescent Court, Suite 1600 Dallas, Texas 75201 (214) 871-3555 Bruce Shaw, Senior VP-Chief Financial Officer M. Neale Hickerson, VP-Investor Relations www.hollycorp.com
Slide 18: Appendix
Appendix
Slide 19: Estimated Effects of Capital Projects: Gross Margins
Estimated Effects of Capital Projects at Holly's Refineries Illustrative computations of impact of expansion & gross margins 19 Gross Margin/bbl Consolidated Navajo Woods Cross 2003 $7.23 $7.43 $6.10 2004 $9.20 $10.16 $6.00 2005 $12.62 $13.61 $9.62 2006 $15.78 $15.37 $17.10 2007 $16.74 $15.58 $20.69
Slide 20: Estimated Effects of Capital Projects: Crude Mix Changes
20 Estimated Effects of Capital Projects at Holly's Refineries Illustrative computations of impact of crude mix changes Every +/- $1 change in net feedstock costs equals $3.65 million Every +/- $1 change in net feedstock costs equals $14.6 million All dollar values are for a full year impact and ass
Slide 21: Tulsa Acquisition - Financials & Metrics
Tulsa Acquisition - Financials & Metrics (1) Provided by Sunoco (2) Major turnaround mid-2007 during which Sunoco spent $42MM on turnaround (3) 2008 EBITDA includes add back of non-cash asset write-down and environmental accrual Holly Historical Financial & Operational Data Tulsa Historical Financia
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations *Sunoco financial data provided by Sunoco
Slide 23: Definitions
Definitions BPD: the number of barrels per calendar day of crude oil or petroleum products. BPSD: the number of barrels per stream day of crude oil or petroleum products. EBITDA: Earnings before interest, taxes, depreciation and amortization, which we refer to as EBITDA, is calculated as net income