Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — HollyFrontier — Simmons & Company Twelfth Annual Energy Conference (March 2012)
25 slides from Hf Sinclair's conference presentation, Mar 1, 2012
Slide 1: HollyFrontier Corporation – Simmons & Company Twelfth Annual Energy Conference
HollyFrontier CorporationSimmons & Company Twelfth Annual Energy ConferenceFebruary 29th & March 1st, 2012
Slide 2: Disclosure Statement
HollyFrontier 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 a
Slide 3: HollyFrontier Corporation
HollyFrontier Corporation 3
Slide 4: HollyFrontier Investment Highlights
HollyFrontier Investment Highlights HollyFrontier Investment Highlights 4
Slide 5: Footprint of HollyFrontier and HEP
Footprint of HollyFrontier and HEP Collaboration with Holly Energy Partners, L.P. provides strategic growth opportunities in logistics and marketing operations Refineries are well-positioned for exposure to the growing supply of lower cost domestic and Canadian crude oil. 5
Slide 6: UNEV Pipeline & Refinery Economics
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, NVHollyFrontier owns 75% interest (Sinclair 25%)Start up - January 2012Benefits:Las Vegas gasoline trades seasonally at premium to Sal
Slide 7: Crude Growth in our "Backyard"
Crude Growth in our "Backyard" Canadian, Bakken, Permian, Niobrara K b/d Source: Simmons & Co, Canadian Association of Petroleum Producers, North Dakota Pipeline Authority, and the EIA. 5.5 MB/d 3.2 MB/d c.70% production growth 7
Slide 8: Strategic Investment & Acquisition
Strategic Investment & Acquisition Strategic Investment & Acquisition *After accounting for sales of Tulsa logistics assets 8
Slide 9: Capital Expenditure Overview
Capital Expenditure Overview Legacy HOC and FTO capital expenditures were combined for periods prior to the 2011 merger. 2011 capital expenditure calculated using 2011HFC capital expenditure of $374m plus FTO capital expenditure of $42.4m for 2011 period prior to the merger. Does not include capital
Slide 10: Cash Returns to Shareholders
Cash Returns to Shareholders Since the July 2011 merger we have declared $375m in cash distributions:Increased our regular dividend twice Aug 25th: Raised regular quarterly cash dividend from $0.075 to $0.0875 per share, a 14% increaseNov 16th: Raised regular quarterly cash dividend from $0.0875 to
Slide 11: Cash Returns to Shareholders
Cash Returns to Shareholders *Companies who have announced share repurchases YTD 2012Last Twelve Months includes YTD 2012 dividends declared and excludes Q1 2011 cash dividends. Data from filings and press releases.As of 2/24/2012 stock prices 11
Slide 12: Pro Forma HollyFrontier Returns on Capital
Pro Forma HollyFrontier Returns on Capital (combined) *FY 2011 ROC calculations used (HFC and TSO). For all other companies, FY 2011 financials were not available so ROC calculations are based on 9m 2011 data. 5-year average ROIC calculated by taking the average of ROIC's for the years 2007-2011. RO
Slide 13: HFC Balance Sheet Highlights and Liquidity
HFC Balance Sheet Highlights and Liquidity (as of 12/31/11) 1 - Includes cash & cash equivalents & marketable securities (short-term & long-term). Excludes HEP cash of $3.269 million.2 - Does not include HEP long-term debt, which is non-recourse to HFC. ( $in millions) Cash & equivalents, marketable
Slide 14: Strong Financial Metrics vs Peers
Strong Financial Metrics vs Peers Net Income per Barrel of Crude Capacity HFC earnings per bbl strongest in peer sector FY2011 Net Income per Barrel included for HFC, VLO & TSO. For CVI, DK, WNR and ALJ, FY 2011 financial data was not available, so Net Income for each was based on 9m 2011 data annua
Slide 15: HEP Growth: Distributable Cash Flow Since Inception
HEP Growth: Distributable Cash Flow Since Inception HFC received $46m in cash distributions for the FY 2011 15
Slide 16: Value of HFC's LP & GP Interests in HEP
Value of HFC's LP & GP Interests in HEP HFC owns 11.1mm common units: $640 -- 660MM1 Multiple of GP cash flow: 15X 20X 25X Current GP Interest IDR Distributions:2 $240MM $320MM $400MM HEP value to HFC is in the approximate $880 million to $1.1 billion range.3 1 Based on range of $58 to $60 per unit
Slide 17: HollyFrontier Corporation contact details
HollyFrontier Corporation (NYSE: HFC)2828 N. Harwood, Suite 1300Dallas, Texas 75201(214) 871-3555Neale Hickerson, Vice President, Investor RelationsNeale.hickerson@hollyfrontier.com214-871-3572www.hollyfrontier.com 17
Slide 18: Appendix
ar HOLLYFRONTIER Appendix
Slide 19: Mid-Continent: El Dorado & Tulsa Refineries
Mid-Continent: El Dorado & Tulsa Refineries TULSA REFINERIES EL DORADO REFINERY The Mid-Continent Region comprises our Tulsa and El Dorado Refineries and has a combined crude oil processing capacity of 260,000 BPSD. (CHART) (CHART) Mid-Continent Sales of Refinery Produced Products 268,320 BPD Locate
Slide 20: Southwest: Navajo Refinery
Southwest: Navajo Refinery NAVAJO REFINERY The Southwest Region consists of our Navajo Refinery and has a crude oil processing capacity of 100,000 BPSD. In addition, we manufacture and market commodity and modified asphalt products through the Southwest Region. Southwest Sales of Refinery Produced P
Slide 21: Rocky Mountain: Woods Cross and Cheyenne Refineries
Rocky Mountain: Woods Cross and Cheyenne Refineries CHEYENNE REFINERY The Rocky Mountain Region comprises of our Cheyenne and Woods Cross Refineries and has a combined crude oil processing capacity of 83,000 BPSD. We also own a 75% joint venture interest in the recently completed UNEV pipeline, a 40
Slide 22: Holly Energy Partners
Holly Energy Partners HEP PRODUCTS Holly Energy Partners owns and operates substantially all of the refined product pipeline and terminalling assets that support our refining and marketing operations in the Mid- Continent, Southwest and Rocky Mountain regions of the United States. 2,500 miles of cru
Slide 23: Feedstock Flexibility
Feedstock Flexibility* All crude purchased is WTI 'price referenced' ...Without cutting maximum crude rates we could run 100k b/d of heavy crude. In a zero crack spread environment cutting maximum crude rates we could run up to 136k b/d. But it is not only about Canadian Crude:Tulsa and Woods Cross
Slide 24: Financial metrics
Financial metrics* * Holly debt excludes HEP debt; All amounts are based on publicly-available financial statements, which we have assumed to be accurate. 24 Company 2011 / 9m ROIC 2010 ROIC 2009 ROIC 2008 ROIC 2007 ROIC 5 Yr. Ave ROIC CVI 15.4% 1.0% 6.0% 15.0% -7.0% 6.1% VLO 8.4% 1.0% -9.0% -5.0% 2
Slide 25: Definitions
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 non-
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