Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — HollyFrontier — Raymond James Fall Investors Conference 2011
25 slides from Hf Sinclair's conference presentation, Nov 17, 2011
Slide 1: HollyFrontier Corporation Raymond James Fall Investors Conference November 2011
HollyFrontier Corporation Raymond James Fall Investors Conference November 2011
Slide 2: Disclosure Statement
2 HollyFrontier 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
Slide 3: HollyFrontier Corporation
3 HollyFrontier Corporation
Slide 4: Presentation Topics
Presentation Topics HFC Company Overview Financial Performance and Competitiveness Focused Growth / Improvement Orientation Summary Appendix 4
Slide 5: The $7 billion strategic combination of Holly and Frontier
The $7 billion strategic combination of Holly and Frontier created the most profitable independent refiner on a per barrel basis (using past 5-year average) in the U.S. with over 440,000 bpd of crude capacity across five complex refineries Expanded asset footprint increases exposure to high-growth,
Slide 6: HollyFrontier Investment Highlights
HollyFrontier Investment Highlights HollyFrontier Investment Highlights 6 1 - HEP's annualized cash distributions as of 09/30/11 to HFC exceeds $54MM (LP - $38M, GP-$16M) . Annualized distributions are calculated using HEP distributions received for 3Q11 then multiplied times 4 (Qtrs). 1
Slide 7: Footprint of HollyFrontier and HEP
Footprint of HollyFrontier and HEP 7
Slide 8: U.S. Population Growth By State (2000 - 2010)
U.S. Population Growth By State (2000 - 2010) Traditionally High Growth, Niche Markets HollyFrontier serves states that are among the fastest growing in the country UNEV P/L project provides greater access to Nevada and southern Utah markets Source: U.S. Census Bureau. Reflects 2010 Census Results.
Slide 9: Presentation Topics
Presentation Topics HFC Company Overview Financial Performance and Competitiveness Focused Growth / Improvement Orientation Summary Appendix 9
Slide 10: Pro Forma HollyFrontier Earnings (per bbl)
Pro Forma HollyFrontier Earnings (per bbl) 10 Net Income per Barrel of Crude Capacity $ per bbl HFC earnings per bbl strongest in peer sector 2011 YTD (9/30/11) annualized earnings/bbl included in graph but not in numerical 5-year average. HFC earnings calculated by adding HOC plus FTO earnings in y
Slide 11: Pro Forma HollyFrontier Returns on Capital (combined)
11 *5-year average ROIC calculated by 5-year average earnings divided by 5-year average total debt & equity. For HFC, legacy HOC/FTO earnings, debt & equity were combined for 5-year calculations. (See page 26 for actual calculations) 3 4 Pro Forma HollyFrontier Returns on Capital (combined) (CHART)
Slide 12: HFC Balance Sheet Highlights and Liquidity (as of 9/30/11)
HFC Balance Sheet Highlights and Liquidity (as of 9/30/11) 1 - Includes cash , cash equivalents & marketable securities (short-term & long-term) & HEP cash of $1.8 million. 2 - Does not include $527 million of HEP long-term debt 12 ( $in millions) Cash & equivalents, marketable securities1 1,759 Lon
Slide 13: Presentation Topics
Presentation Topics HFC Company Overview Financial Performance and Competitiveness Focused Growth / Improvement Orientation Summary Appendix 13
Slide 14: Strategic Investment & Acquisition
Strategic Investment & Acquisition Approximately $600mm invested for enhanced feedstock flexibility & modest growth Synergistic acquisitions of Tulsa refineries at less than $1,000 per daily bbl* Tulsa interconnection to improve profitability through better yields & lower costs (HEP constructing for
Slide 15: Capital Expenditure Overview
15 Capital Expenditure Overview* *From HOC, FTO & HFC financial filings. Excludes HEP capex; net of contributions from UNEV JV partner; includes turnaround expenditures; excludes asset acquisitions. 2008-2010 are from combined HOC/FTO financial filings. 2011 full year spending estimated at $340 mill
Slide 16: UNEV Pipeline & Refinery Economics
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 HollyFrontier owns 75% interest (Sinclair 25%) Completion Date - Winter 2011 Benefits: Las Vegas gasoline trades seasonally at prem
Slide 17: HEP Growth: EBITDA Since Inception
HEP Growth: EBITDA Since Inception (steady state) 17 * "EBITDA" defined on page 32 In millions
Slide 18: HEP Growth: Distributable Cash Flow Since Inception
18 (CHART) HEP Growth: Distributable Cash Flow Since Inception
Slide 19: HEP Value to HFC
19 HEP Value to HFC HFC owns 11.1mm units @ $56: $621MM Multiple: 15X 20X 25X Current GP IDR Distributions: $16MM $240MM $320MM $400MM With limited partner unit value & approximate general partner value estimated using market multiples, HEP value to HFC is in the $860 million to $1.0 billion range
Slide 20: Presentation Topics
Presentation Topics HFC Company Overview Financial Performance and Competitiveness Focused Growth / Improvement Orientation Summary Appendix 20
Slide 21: HollyFrontier Key Investment Highlights
HollyFrontier Key Investment Highlights 21 'Pure Play' Independent Refiner Attractive 'High Margin' Markets Focused on Continuous Improvement Strong Financial Metrics vs. Peers Advantaged Logistics via HEP (MLP)
Slide 22: HollyFrontier Corporation contact details
HollyFrontier Corporation (NYSE: HFC) 2828 N. Harwood, Suite 1300 Dallas, Texas 75201 (214) 871-3555 Neale Hickerson, Vice President, Investor Relations Neale.hickerson@hollyfrontier.com 214-871-3572 www.hollyfrontier.com 22
Slide 23: Appendix
HOLLYFRONTIER Appendix 23
Slide 24: Financial metrics
Financial metrics* 24 * Debt levels for Sunoco exclude Sunoco Logistics (SLX) debt; Holly debt excludes HEP debt; All amounts are based on publicly-available financial statements, which we have assumed to be accurate.
Slide 25: Definitions
25 Definitions Non GAPP measurements: We report certain financial measures that are not prescribed or authorized by U. S. generally accepted accounting principles ("GAAP"). We discuss management's reasons for reporting these non-GAAP measures below. Although management evaluates and presents these n
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