Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Investor Presentation (December 2009)
22 slides from Hf Sinclair's investor presentation, Dec 3, 2009
Slide 1: 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 risk
Slide 2: Presentation Outline
Presentation Outline · Overview of Holly and HEP · Financial Performance · Focused Growth Orientation · Balance Sheet Highlights and Liquidity · Conclusion
Slide 3: Presentation Outline
Presentation Outline · Overview of Holly and HEP · Financial Performance · Focused Growth Orientation · Balance Sheet Highlights and Liquidity · Conclusion
Slide 4: Overview of Holly Corporation
Overview of Holly and HEP Holly Corporation: 9 Holly’s refineries operate in Southwest, Rockies & Mid-Continent markets 9 256,000 bpsd of refining capacity and 1 weighted average complexity of over 12.0 9 Refineries directly connected to domestic or Canadian crude trading hubs 9 Owns 100% of GP and
Slide 5: Holly Investment Highlights
Holly Investment Highlights
Slide 6: HEP Investment Highlights
HEP Investment Highlights · 100% fee based revenue business · Long term contracts supporting revenue stream · Proven track record of distribution increases · No commodity ownership risk or related hedging · Well maintained assets serving high growth markets · Senior management team averages over 25
Slide 7: Presentation Outline
Presentation Outline · Overview of Holly and HEP · Financial Performance · Focused Growth Orientation · Balance Sheet Highlights and Liquidity · Conclusion
Slide 8: Historical EBITDA (in millions)
Historical EBITDA (in millions)
Slide 9: Refining Margins (2004-2008 range)
Refining Margins (2004—2008 range)
Slide 10: Refining Margins (2004-2008 range)
Refining Margins (2004—2008 range) Navajo" Woods Cross™ Aah won marron yur rt a S20 i Me 880m laf ee urls ns 821 ‘ avi ae Ae Wood Oss Saar aren SRY TT ae SCARS SE See aa pe Gee iether YW CORPORATION 10.
Slide 11: Presentation Outline
Presentation Outline · Overview of Holly and HEP · Financial Performance · Focused Growth Orientation · Balance Sheet Highlights and Liquidity · Conclusion
Slide 12: Enhanced Competitive Position at Legacy Refineries
Enhanced Competitive Position at Legacy Refineries
Slide 13: Strategic Acquisitions at Historically Low Multiples
Strategic Acquisitions at Historically Low Multiples
Slide 14: UNEV Pipeline & Refinery Economics Overview
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, NV Holly owns 75% interest (Sinclair 25%) Completion Date — Fall 2010 Benefits: Las Vegas trades at premium to Salt Lake Lowers impact
Slide 15: HEP EBITDA Growth Since Inception
HEP EBITDA Growth Since Inception
Slide 16: Balance Sheet Highlights and Liquidity
Presentation Outline · Overview of Holly and HEP · Financial Performance · Focused Growth Orientation · Balance Sheet Highlights and Liquidity · Conclusion Balance Sheet Highlights and Liquidity $millions Holly HEP Cash 95.0 4.0 Senior notes 200.0 185.0 Revolver capacity (1) 350.0 300.0 Balance — 24
Slide 17: Debt - Key Terms
Holly and HEP Debt — Key Terms Amount Company ($mm) Key Terms Holly $300.0 Coupon: 9.875% Due 2017 Non-call 4 Holly Energy $185.0 Coupon: 6.250% Partners Due 2015 Non-call 5 $245.0 LIBOR plus margin (< 6% average) Expires August 2011
Slide 18: Presentation Outline
Presentation Outline · Overview of Holly and HEP · Financial Performance · Focused Growth Orientation · Balance Sheet Highlights and Liquidity · Conclusion
Slide 19: Conclusion
Conclusion Holly Corporation: 9 Competitive refining assets in attractive markets 9 Recent investments to make legacy refineries even stronger 9 Low entry cost for very complex Tulsa refining facility (Sunoco + Sinclair) 9 Conservative capital structure plus experienced management team 9 HEP ownersh
Slide 20: Holly Corporation / Holly Energy Partners contact details
Holly Corporation Holly Energy Partners 100 Crescent Court, Suite 1600 Dallas, Texas 75201 (214) 871-3555 Bruce R. Shaw, SVP-Chief Financial Officer M. Neale Hickerson, VP-Investor Relations www.hollycorp.com
Slide 21: 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 inco
Slide 22: Definitions
Definitions BPD: the numberof barrels per calendar day of crude ol or petroleum prs, [BPSD the number of bares per steam day of ere ol petroleum prods EBITDA: Eamings before interest, axes, deprecation and amorizaton, which we refer to a8 EBITDA. i calculated as net income pls) interest expense net