Slide 1: Lubricants Primer
\ HOLLYFRONTIER 3 LUBRICANTS & SPECIALTY PRODUCTS PETRO-CANADA LUBRICANTS Lubricants Primer May 2017
Slide 2: Forward Looking Statement
Forward Looking Statement The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements made during the course of this presentation relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs
Slide 3: Integrated Lubricants Producer
Integrated Lubricants Producer BASE OIL BLENDING AND FEEDSTOCKS GLOBAL DISTRIBUTION PRODUCTION PACKAGING R&D and Product Development Finished Lubricants & Vacuum Solvent Extraction Greases Tulsa Gas Oil (LEU) and Group I Blending (VGO) Solvent Dewaxing (MEK) Waxes Group II Vacuum High Pressure Hydro
Slide 4: Feedstocks
Feedstocks Vacuum • Intermediate stream produced by Vacuum Distillation Unit Gas Oil (VGO) • VGO is a dark colored, viscous material • Light vacuum gas oil (LVGO) and Heavy vacuum gas oil (HVGO) are common streams from fuel refinery • VGOs further processed through Hydrotreating Unit (HTU) which r
Slide 5: Base Oils
Base Oils HollyFrontier & PCLI provide the broadest and purest slate of Base Oils for finished products and end customers PURPOSE OF BASE OIL BASE OIL CATEGORIES • Base Oil is the foundation on which all lubricants are built • Group I: Produced by separation processes such as distillation, solvent e
Slide 6: HFC & PCLI Base Oil Quality
HFC & PCLI Base Oil Quality KEY CHARACTERISTICS OF BASE OILS Viscosity: Purity: Measures a fluid’s resistance to flow Level of saturates in a Base Oil vs. impurities (aromatic molecules including sulfur and polar Viscosity Index (V.I.): Describes a fluid’s tendency to compounds) thin as the temperat
Slide 7: Research & Development
Research & Development MISSION Develop, implement and promote high value innovative products that go beyond today’s standards • Over 300 years of combined experience with 7 Ph.D. and 3 Professional Engineer team members • Received international business “Stevie Award” for best new business-to-busine
Slide 8: Product Overview
Product Overview Consolidated Product Sales 2016 Finished Lubricants & Greases Finished Lubricants & Greases Waxes 14% Waxes Margin Value $/bbl 6% Base Oils White Oils 45% White Oils 9% Specialty Products Specialty Products 26% Base Oils 8
Slide 9: Finished Lubricants/Greases
Finished Lubricants/Greases Finished lubricants and greases are blended from Base Oils and exhibit superior performance in many key properties, including: • Viscosity Retention HFC & PCLI produce over 350 different finished lubricant products with various applications such as motor oil, hydraulic •
Slide 10: Specialty Products
Specialty Products Finished lubricant products sold in commercial quantities by rail car or truck loads • PCLI does not offer many of these specialty products in retail package sizes, but sells to other companies that package and distribute these products PureDrill TM • Synthetic drilling mud base f
Slide 11: White Oils
White Oils Sourced from our own base oil supply and produced using the HT PURITY Process • Food grade white mineral oils are specifically designed for agricultural and food processing industries • Among the most versatile petroleum products with a wide array of applications PURETOL TM • Line of whit
Slide 12: Waxes
Waxes Derived from the de-waxing phase in the refining process. Waxes are solid at ambient temperature and become liquid when melted • Our waxes are solvent-refined at both our Tulsa, OK and Mississauga, Ontario refineries, and imported into our terminal in Brownsville, TX • We have the capability t
Slide 13: Lubricants Index
Lubricants Index Lubricants Index VGO Based 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Base Oil Crack Jan Feb Mar 1Q17 Apr May Jun 2Q17 Jul Aug Sep 3Q17 Oct Nov Dec 4Q17 Group I $10.13 $11.56 $22.51 $14.73 Group II $18.73 $20.19 $29.85 $22.92 Group III $56.21 $56.41 $70.44 $61.02 The preceding data is for info
Slide 14: Definitions
Definitions Viscosity: measure of a fluid’s resistance to flow. It is ordinarily expressed in terms of the Hydrotreating Unit (HTU): processes vacuum gas oil (VGO) streams that have been time required for a standard quantity of the fluid at a certain temperature to flow through a fractionated from c
Slide 15: Contact
2828 N. Harwood, Suite 1300 Dallas, Texas 75201 (214) 954-6510 www.hollyfrontier.com Craig Biery | Director, Investor Relations Jared Harding | Investor Relations Investors@hollyfrontier.com 214-954-6510