Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Investor Presentation (September 2009)
22 slides from Hf Sinclair's investor presentation, Sep 15, 2009
Slide 1: Holly Corporation Fall 2009 Update
Holly Corporation Fall 2009 Update
Slide 2: Holly Corporation Disclosure Statement
Holly 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 and neces
Slide 3: Holly Investment Highlights
Holly Investment Highlights Pure Play Refiner Owns 3 refineries with combined processing capacity of 216,000 barrels per day (bpsd) 40 years of refining experience-entered refining business in 1969 (profitable every year) Competitive Assets High complexity facilities with access to multiple sources
Slide 4: Existing Asset Location / Business Footprint
Existing Asset Location / Business Footprint Holly Corporation: Holly's refineries operate in Southwest, Rockies & Mid-Continent markets 216,000 bpsd of refining capacity Refineries directly connected to Domestic or Canadian crude trading hubs Holly Energy Partners: Over 2,500 miles of refined produ
Slide 5: Strong Returns on Capital and Conservative Balance Sheet
Strong Returns on Capital and Conservative Balance Sheet Low Debt Level Compared to Peers Strong Historical Margins from Operations 1 HOC standalone (excludes HEP) 2 6/30/09 actuals w/ HOC Senior Notes included on a pro-forma basis 1 Pre-Tax Margin - 20081 Annual Return on Invested Capital (5 years
Slide 6: Navajo Refinery
Navajo Refinery Product Sales Mix (12/31/08) Overview 561 acre site located in Artesia, NM with crude capacity of 100,000 BPSD (expanded in Q1 2009) Ability to process sour crude oils into high value light products Distributes to high margin markets in Arizona, New Mexico and West Texas Nelson Compl
Slide 7: Woods Cross Refinery
Woods Cross Refinery Product Sales Mix (12/31/08) Overview 200 acre site located in Woods Cross, UT (near Salt Lake City) with crude oil capacity of 31,000 BPSD Processes regional sweet and lower cost black wax crude as well as Canadian sour crude oils Distributes to high margin markets in Utah, Ida
Slide 8: Tulsa Refinery
Tulsa Refinery Production Mix (12/31/08) Overview Tulsa refinery has crude capacity of 85,000 BPSD Produces high value specialty lubricant products (lubes, waxes & oils) Strategically located near the Cushing crude oil hub and Magellan product system that supplies the Mid-Continent market Nelson Com
Slide 9: Holly Historical EBITDA & key refinery measures
9 Holly Historical EBITDA (in millions) & key refinery measures 1 HEP formed in July 2004 2 Sold Montana Refinery Company (8,000 bpd) while increasing Navajo Refinery Capacity (8,000 bpd) 3 Major Turnaround & Expansion conducted in this year. 2003 2004 2005 2006 2007 2008 East 112 174 303 414 528.9
Slide 10: Refining Margins (2004-2008 range): Navajo & Woods Cross
Refining Margins (2004-2008 range): Navajo & Woods Cross Q1 Q2 Q3 Q4 East 6.43 8.07 8.56 7.47 West 3.35 7.26 4.03 3.23 0.2 0.2 0.2 0.2 6.56 12.01 3.32 3.46 nrc 09 gm 12.45 8.39 nrc 09 gm 12.45 8.39 nrc 08 gm 6.43 8.07 12.69 10.8 gc 321 8.33 14.61 12.86 6.62 0 line 2006 gm Rev bud Bud 06 Red bars rep
Slide 11: Refining: Value Added Project Timeline
Navajo & Woods Cross 1H - 2009, $118 million invested on refining expansion & processing upgrades 2H - 2009, $60 million balance to spend Tulsa The estimated spending for the ULSD projects is $150 million (primarily 2010/2011 spending) All Refineries: Maintenance Capital is estimated to range betwee
Slide 12: Pipeline: Value Added Project Timeline
Through 1H - 2009, $66 million has been invested on pipeline projects Balance to spend on Navajo pipeline projects in 2H - 2009 is approximately $15 million The Woods Cross pipeline project (UNEV: Salt Lake City to Las Vegas Pipeline) estimate to spend is: 2H - 2009: $25 million 2010: $100 million H
Slide 13: Enhanced Competitive Position
Enhanced Competitive Position Recently Completed Refinery Enhancements Increased capacity 19% Increased lower cost black wax and Canadian crude processing from 20 to 50% Increased ULSD production percentage Enhanced black wax and Canadian heavy receiving capabilities Increased capacity 17% Allows 10
Slide 14: UNEV Pipeline & Refinery Economics
UNEV Pipeline & Refinery Economics Las Vegas has on average, experienced a $0.13/gal ($5.36/bbl) positive differential for Gasoline (Unleaded, conventional) over Salt Lake City during Jan 2004 - Aug 2009 There is significant incentive for refiners to ship barrels to Las Vegas The differential betwee
Slide 15: Holly Investment Highlights
Holly Investment Highlights Pure Play Refiner Owns 3 refineries with combined processing capacity of 216,000 barrels per day (bpsd) 40 years of refining experience-entered refining business in 1969 (profitable every year) Competitive Assets High complexity facilities with access to multiple sources
Slide 16: 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 17: Appendix
HOLLY Appendix
Slide 18: Estimated Effects of Capital Projects: Gross Margins
Estimated Effects of Capital Projects at Holly's Refineries Illustrative computations of impact of expansion & gross margins 18 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 19: Estimated Effects of Capital Projects: Crude Mix Changes
19 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 All dollar values are for a full year impact and ass
Slide 20: Tulsa Acquisition - Financials & Metrics
Tulsa Acquisition - Financials & Metrics (1) Provided by Sunoco (2) Major turnaround mid-2007 during which Sunoco spent $42MM on turnaround (3) 2008 EBITDA includes add back of non-cash asset write-down and environmental accrual Holly Historical Financial & Operational Data Tulsa Historical Financia
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations *Sunoco financial data provided by Sunoco
Slide 22: 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