Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Corporate Update (February 2007)
24 slides from Hf Sinclair's corporate update, Feb 12, 2007
Slide 1: 2007 Webcast Update on Current Capital Projects and Pro Forma EBITDA Estimates
2007 Webcast Update on: Current Capital Projects Pro Forma EBITDA estimates February 12, 2007 Holly Corporation Capital Projects Webcast
Slide 2: Disclosure Statement
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 ris
Slide 3: Agenda
Agenda Current Capital Projects Pro Forma EBITDA Estimates Questions & Answers
Slide 4: Agenda: Current Capital Projects
Agenda Current Capital Projects Pro Forma EBITDA Estimates Questions & Answers
Slide 5: Current Capital Projects
Current Capital Projects (initial consideration announced April 20, 2006) Feedstock Flexibility & Expansion - Navajo Refinery Feedstock Flexibility & Expansion --Utah Refinery
Slide 6: Feedstock Flexibility & Expansion -- Navajo Refinery
Feedstock Flexibility & Expansion -- Navajo Refinery : Project Summary: Overall objective will be completed in two phases timed to match Canadian crude availability in Cushing, OK Phase I: Expand crude capacity to approximately 100,000bpd Revamp existing crude unit, new gas oil hydrocracker, new hyd
Slide 7: Feedstock Flexibility & Expansion - Woods Cross Refinery
Feedstock Flexibility & Expansion - Woods Cross Refinery : Project Summary: Expand refinery to 31,000 bpd Install new gas oil hydrocracker, add Black Wax desalter, and expand sulfur recovery capacity Feed stock flexibility to process up to 15mbpd of Black Wax or 10mbpd Black Wax & 5mbpd of heavy Can
Slide 8: Project Changes: Navajo Refinery
Project Changes: From initial consideration to HOC Board approval April 2006 February 2007 Navajo Refinery: CAPEX $240MM $225MM Crude rate 100K BPD 100K BPD Light/Heavy Diff. Capture 20K BPD 40K BPD Timing 3rd Q 2008 4th Q 2008 (Phase I) 2010/2011 (Phase II)* Scope: New Crude Unit 30K BPD Rose Unit
Slide 9: Project Changes: Woods Cross Refinery
Project Changes: From initial consideration to HOC Board approval April 2006 February 2007 Woods Cross Refinery: CAPEX $60MM $100MM Crude rate 30K BPD 31K BPD Canadian Crude 20K BPD 5K BPD Black Wax Crude 0K BPD 10K BPD Timing 3rd Q 2008 4th Q 2008 Scope: Gas Oil Hydrotreating Expand SDA & Crude Uni
Slide 10: Capital Projects Impact on Pro Forma Annual EBITDA
Capital Projects Impact on Pro Forma Annual EBITDA (full year) Major Capital Projects Total Cost '03-'05 Prices '06 Prices NRC feedstock flexibility & expansion: $225 $126 $275 Phase I $164 $74 $139 Phase II $61 $52 $136 WX feedstock flexibility & expansion $100 $31 $57 Total $325 $157 $332 Estimate
Slide 11: Capital Expenditures by Year
Capital Expenditures by Year: Major Capital Projects: 2007 2008 2009 NRC feedstock flexibility & expansion 80 100 45 Phase I 75 80 9 Phase II 5 20 36 WX feedstock flexibility & expansion 40 50 10 Sulfur recovery unit at NRC 14 10 --- Small payout projects 20 20 20 Sustaining capital & turnaround 25
Slide 12: Agenda: Pro Forma EBITDA Estimates
Agenda Current Capital Projects Pro Forma EBITDA Estimates Questions & Answers
Slide 13: Refining EBITDA - Estimated Additions from Capital Projects
HOLLY Refining EBITDA - Estimated Additions from Capital Projects 2003 2004 2005 2006 East 112.3 178.1 302 414 Using '03-'05 Avg. Prices: 2008 2009 2010/11* NRC Feedstock Flexibility & Expansion Phase I --- 74 74 Phase II --- --- 52 WX Feedstock Flexibility & Expansion 8 31 31 8 105 157 HOC Historic
Slide 14: CAPEX Funding: Cash Flow at Various EBITDA Levels -- 2007
CAPEX Funding: Cash Flow at Various EBITDA Levels -- 2007 EBITDA $200 $300 $400 $500 Estimated Cash Income Tax <34> <69> <105> <141> CAPEX <179> <179> <179> <179> Free Cash Flow <$13> $52 $116 $180 (in millions) Other Key Cash Information: Cash balance at 12/31/06: $256 million Remaining portion of
Slide 15: CAPEX Funding: Cash Flow at Various EBITDA Levels -- 2008
CAPEX Funding: Cash Flow at Various EBITDA Levels -- 2008 EBITDA $200 $300 $400 $500 Estimated Cash Income Tax <31> <67> <103> <138> CAPEX <215> <215> <215> <215> Free Cash Flow <$46> $18 $82 $147 (in millions)
Slide 16: CAPEX Funding: Cash Flow at Various EBITDA Levels -- 2009
CAPEX Funding: Cash Flow at Various EBITDA Levels -- 2009 EBITDA $200 $300 $400 $500 Estimated Cash Income Tax <59> <93> <129> <165> CAPEX <100> <100> <100> <100> Free Cash Flow $41 $107 $171 $235 (in millions)
Slide 17: NRC Refining Margins
NRC Refining Margins Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec East 3.9 5.21 7.33 6.46 4.92 5.48 5.79 5.73 5.1 6.64 6.2 2 West 1.67 2.31 4.05 7 7.46 5.67 0.25 2.08 3.77 2.04 1.43 2.66 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 1.16 2.95 0.35 3.71 3.5 1.93 4.45 6.81 13.89 14.33 3.07 4.43 n
Slide 18: Woods Cross Refining Margins
Woods Cross Refining Margins Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec East -1.09 1.21 5.56 4.32 6.98 2.33 2.87 3.93 -0.67 -0.95 4.97 -0.97 West 3.01 1.52 0.19 5.58 3.93 1.93 4.28 2.13 10.38 5.44 2.56 3.15 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 2.78 1.43 4.97 5 2.74 4.39 1.05 2.8 14.6
Slide 19: Agenda: Questions & Answers
Agenda Current Capital Projects Pro Forma EBITDA Estimates Questions & Answers
Slide 20: Appendix: Benefits from tax legislation, Sulfur credits, Definitions
Appendix: Benefits from tax legislation Sulfur credits Definitions
Slide 21: Tax Benefits
Tax Benefits American Jobs Creation Act of 2004: Created tax incentives for small refiners to produce ULSD Provides immediate deduction of 75% of certain capital costs Provides a tax credit based on ULSD production up to 25% of these costs Energy Policy Act of 2005: Provides an election to expense 5
Slide 22: Sulfur Credits Benefit
Sulfur Credits Benefit Benefits to Holly: Can use as needed in future years. Can monetize if not used internally. In 2006, Holly sold 99,681 credits totaling approximately $16 million Credit Generation: Compliance with Low Sulfur gasoline for small refiners, including Holly, not required until the e
Slide 23: Definitions
Definitions BPD: the number of barrels per day of crude oil or petroleum products. Catalytic reforming: a refinery process which uses a precious metal (such as platinum) based catalyst to convert low octane naphtha fractionated directly from crude oil to high octane gasoline blendstock and hydrogen.
Slide 24: Definitions
Definitions LSG: gasoline that contains less than 30 PPM of total sulfur. MMSCFD: million standard cubic feet per day PPM: parts-per-million. Refining gross margin or refinery gross margin: the difference between average net sales price and average costs of products per barrel of produced refined pr