Hf Sinclair Corporation · NYSE:DINO

Hf Sinclair — HollyFrontier — Shareholder Meeting (May 2014)

15 slides from Hf Sinclair's shareholder meeting presentation, May 14, 2014

  1. Slide 1: Annual Shareholder Meeting May 14, 2014

    Annual Shareholder Meeting May 14, 2014

  2. Slide 2: Forward-looking statements

    sHOLLY FRONTIER: ae seers BSE Statements made during the course sa this pecorino 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 inherently uncertain and ee involve risks that m

  3. Slide 3: Our Mission and Our Values

    OUR MISSION OUR VALUES | OUR MISSION Is to be the premier U.S. petroleum HEALTH A SAFETY WE PUT HEALTH AND SAFETY FIRST. refining, | profitable growth ur best an sale performance sandr. WE SEEKTO ACCOMPLISH THIS BY: ENVIRONMENTAL STEWAROSHIP © Operating in a sate rlable and environmental responsible

  4. Slide 4: Agenda

    Agenda 4 1. Financial Performance 2. Margin Environment 3. Margin Drivers 4. Total Shareholder Returns 5. Cash Distribution Strategy 6. Strategic Accomplishments 7. 2014 Outlook

  5. Slide 5: 2013 Financial Performance

    5 2013 Financial Performance  2013 EPS -57% vs 2012  2013 Net Income -57% vs 2012  2013 EBITDA -51% vs 2012 $0 $2 $4 $6 $8 $10 2012 2013 $8.38 $3.64 EPS $0 $500 $1,000 $1,500 $2,000 2012 2013 $1,727 $736 Net Income $0 $1,000 $2,000 $3,000 $4,000 2012 2013 $3,097 $1,515 EBITDA

  6. Slide 6: Margin Environment

    6 Margin Environment  Margins above 5-year average range the first half of 2013 across all regions before declining to 5 year low levels for the second half of the year  2013 MidCon 321 Crack Spread 32% below 2012  2013 MidCon 321 Crack Spread $22.30  2012 MidCon 321 Crack Spread $32.59

  7. Slide 7: Margin Environment: Consolidated Gross Margin per Barrel

    7 Margin Environment  HFC 2013 Reported Consolidated Gross Margin per Barrel 36% Below 2012 Levels  HFC Consolidated Refinery Gross Margin per Barrel $15.99 vs 2011 $24.89  Rockies GM/BBL $17.86 vs 2012 $27.15, -34% yoy  MidCon GM/BBL $16.28 vs 2012 $23.42 , -30% yoy  Southwest GM/BBL $13.91 vs

  8. Slide 8: Negative Margin Drivers

    8 Negative Margin Drivers  40% Compression in WTI/Brent Spread  $10.61 WTI Discount to Brent on average for 2013  $17.48 WTI Discount to Brent on average for 2012  WTI briefly traded at parity to Brent mid-year 2013  Emergence of Crude Advantage on Gulf Coast  $1.36 average LLS Premium to Bren

  9. Slide 9: Total 2013 Shareholder Return

    -10% 0% 10% 20% 30% 40% 50% 60% WNR VLO MPC PSX DK TSO HFC PBF ALJ 53% 50% 48% 48% 40% 35% 14% 12% -6% Full Year 2013 Performance Price Appreciation Total Return Total 2013 Shareholder Return 9  HFC Total 2013 Share Price Appreciation 7% Compared to Sector Average 29%  12/31/12 Stock Price $46.55

  10. Slide 10: Long Term Shareholder Return

    0% 100% 200% 300% 400% 500% 600% DK HFC WNR TSO VLO S&P ALJ 590% 536% 477% 356% 167% 120% 92% 5-year Total Return Price Appreciation Total Return 0% 500% 1000% 1500% 2000% HFC TSO VLO WNR* DK* S&P ALJ* 1609% 738% 414% 166% 133% 90% 28% 10-year Total Return Price Appreciation Total Return Long Term S

  11. Slide 11: Cash Distribution Strategy

    Cash Distribution Strategy 11  Strategy is to return a significant portion of cash earnings to shareholders through:  Growing Regular Dividends evaluated quarterly  Special Dividends, evaluated quarterly  Opportunistic share repurchases  Best in Class Dividend Yield  6.9% cash return to shareh

  12. Slide 12: Goal of Generating High Long-Term Return on Capital Employed

    12 Goal of Generating High Long-Term Return on Capital Employed 10-year average ROCE of 27% 20-year average ROCE of 20% 10 and 20 year average ROCE calculated by taking the average of ROCE’s for the years 1994-2013. ROCE calculated by dividing net income by the sum of total debt and shareholder capi

  13. Slide 13: 2013 Strategic Accomplishments

    13 2013 Strategic Accomplishments  Improved Health and Safety Performance  28% reduction in safety events  37% reduction in process safety incidents  Debt Redemption – May 2013  Redeemed all outstanding 9.875% Senior Notes Due 2017  Woods Cross Expansion Project: Permit and Ground Breaking – E

  14. Slide 14: 2014 Outlook

    14 2014 Outlook  Continued Focus on Safety and Reliability  Strategic Capital Deployment  Broaden Marketing Footprint  Continuation of Cash Distribution Strategy

  15. Slide 15: Supporting data: total return and ROCE

    15 Data 12/31/2008 12/31/2013 Dividend ALJ 9.15$ 16.54$ 1.02$ PSX* 34.00$ 77.13$ 1.78$ DK 5.29$ 34.41$ 2.09$ HFC 9.11$ 49.69$ 8.24$ MPC* 39.00$ 91.73$ 3.19$ TSO 13.17$ 58.50$ 1.52$ VLO 19.77$ 50.40$ 2.43$ PBF* 26.00$ 31.46$ 1.20$ WNR 7.76$ 42.41$ 2.38$ S&P 903.25$ 1,848.36$ 137.80$ 5-year Total Retu

HollyFrontier — Shareholder Meeting (May 2014) on 6ix