Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Friedman Billings Ramsey Conference Call / Webcast (March 2008)
15 slides from Hf Sinclair's conference presentation, Mar 7, 2008
Slide 1: Holly Corporation Capital Projects Update
Holly Corporation Capital Projects Update Friedman Billings Ramsey Conference Call / Webcast March 7, 2008
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: Existing Asset Location / Business Footprint
Existing Asset Location / Business Footprint Holly Corporation: Holly's refineries operate in historically high margin & high growth Southwest & Rockies markets 111,000 bpsd of refining capacity Refineries directly connected to Domestic or Canadian crude trading hubs Holly Energy Partners: Over 1,70
Slide 4: Capital Spending Plan: 2007-2009
Capital Spending Plan: 2007--2009 - - Elements of both Offense & Defense: Expanding refining capacity 18% by 2009 - --from 111,000 bpsd to 131,000 bpsd Increase flexibility of processing cost-advantaged crudes* - --from 5,000 bpsd to 55,000 bpsd All projects to take advantage of growing markets in t
Slide 5: Navajo Refinery: Expansion and Feedstock Flexibility
Navajo Refinery: --Expansion and Feedstock Flexibility Phase I: Expand crude capacity to approximately 100,000 bpsd (Q1 '09) Revamp Lovington crude & vacuum unit Install new 15,000 bpsd gas oil hydrocracker (40% conversion) Install new 28 mmscfd hydrogen plant Expand sulfur recovery capacity (projec
Slide 6: Woods Cross Refinery: Expansion and Feedstock Flexibility
Woods Cross Refinery: --Expansion and Feedstock Flexibility Expand refinery by 19% to 31,000 bpsd Increase amount of Canadian / Black Wax Crudes to 50% of crude capacity Install new 15,000 bpsd gas oil hydrocracker (40% conversion) New Black Wax desalter Expand sulfur recovery capacity Black Wax cru
Slide 7: UNEV Pipeline: Salt Lake City to Las Vegas
UNEV Pipeline: --Salt Lake City to Las Vegas Build 400 mile 12" pipeline Initial capacity approximately 62,000 bpd Expandable to approximately 120,000 bpd (w/ additional pump stations) 2 Terminal locations: North Las Vegas and Cedar City, UT Holly owns 75% of project with Sinclair owning 25% interes
Slide 8: Projected Capital Expenditures by Year
Projected Capital Expenditures by Year Capital Projects: 2007 2008 2009 Total NRC expansion and feedstock flexibility 59 140 46 245 Phase I - Expansion 52 91 15 158 Phase II - Feedstock Flexibility 7 49 31 87 WX expansion and feedstock flexibility 40 55 10 105 Sulfur recovery unit at NRC 9 14 3 26 S
Slide 9: Expanded Footprint in Southwest / Rocky Mountain States
Expanded Footprint in Southwest / Rocky Mountain States Current: 111,000 bpsd of refining capacity Operate in the historically high margin & high growth Southwest & Rockies markets Can process approx. 80,000 bpsd of sour crude feedstock Can process approx. 5,000 bpsd of price-advantaged crude feedst
Slide 10: Holly Historical EBITDA & Associated Gross Margin per bbl
GM: $7.23/BBL $9.20/BBL $12.62/BBL $15.78/BBL $16.74/BBL 10 Holly Historical EBITDA (in millions) & Associated Gross Margin per bbl
Slide 11: Estimated Effects of Capital Projects at Holly's Refineries: Gross Margins
Estimated Effects of Capital Projects at Holly's Refineries Illustrative computations of impact of expansion & gross margins 11 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 12: Estimated Effects of Capital Projects at Holly's Refineries: Crude Mix
12 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
Slide 13: Holly Operations & Growth Advantages
Holly Operations & Growth Advantages Assets positioned to serve historically high growth & high margin markets Track record of superior returns on capital among peers Strong balance sheet & cash flow generation for capital investment & share repurchases Capital projects with significant impact relat
Slide 14: 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 15: 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
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