Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — HollyFrontier — Barclays Capital Energy Power Conference 2011
32 slides from Hf Sinclair's conference presentation, Sep 6, 2011
Slide 1: HollyFrontier Corporation, Barclays Capital Energy Power Conference, September 2011
HollyFrontier CorporationBarclays Capital Energy Power ConferenceSeptember 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 OverviewFinancial Performance and CompetitivenessFocused Growth / Improvement OrientationSummaryAppendix 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 refineriesExpanded asset footprint increases exposure to high-growth, hi
Slide 6: HollyFrontier Investment Highlights
HollyFrontier Investment Highlights HollyFrontier Investment Highlights 6 1 - HEP's annualized cash distributions as of 06/30/11 to HFC exceed $41M (LP - $25M, GP-$16M) . Annualized distributions are calculated using HEP distributions received in 2Q11 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 countryUNEV P/L project provides greater access to Nevada and southern Utah markets Source: U.S. Census Bureau. Reflects 2010 Census Results. 8
Slide 9: Presentation Topics
Presentation Topics HFC Company OverviewFinancial Performance and CompetitivenessFocused Growth / Improvement OrientationSummaryAppendix 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 FTO & HOC earnings per bbl strongest in peer sector 2011 YTD (Q1) earnings/bbl included in graph but not in numerical 5-year average 3.52 1.64 1.34 1.40 1.56 0.70 0.59 (6.00) (4.00) (2.00) 0.00 2.00 4.00
Slide 11: Pro Forma HollyFrontier Returns on Capital
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 31 for actual calculations) 3 4 Pro Forma HollyFrontier Returns on Capital (combined) (CHART)
Slide 12: Pro Forma HollyFrontier Balance Sheet (6/30/11)
12 3 Pro Forma HollyFrontier Balance Sheet (6/30/11) 1 Excludes debt of HEP2 Includes debt of HEP (which is non recourse to HFC)
Slide 13: Balance Sheet Highlights and Liquidity (as of 6/30/11)
Balance Sheet Highlights and Liquidity (as of 6/30/11) 1 - Includes cash & cash equivalents & marketable securities (short-term & long-term)2 - Does not include $511 million of HEP long-term debt3 - Includes $3 million long-term capital lease obligation4 -Includes an approximate $23 million increase
Slide 14: Presentation Topics
Presentation Topics HFC Company OverviewFinancial Performance and CompetitivenessFocused Growth / Improvement OrientationSummaryAppendix 14
Slide 15: Strategic Investment & Acquisition
Strategic Investment & Acquisition Approximately $600mm invested for enhanced feedstock flexibility & modest growthSynergistic 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 H
Slide 16: Capital Expenditure Overview
16 Capital Expenditure Overview 1- From HOC & FTO financial filings. Excludes HEP capex; net of contributions from UNEV JV partner; includes turnaround expenditures; excludes asset acquisitions (CHART) Past investment make legacy refineries strongerMaintenance capital of approximately $100 million i
Slide 17: 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, NVHollyFrontier owns 75% interest (Sinclair 25%)Completion Date - Fall 2011Benefits:Las Vegas gasoline trades seasonally at premium to
Slide 18: HEP Growth: EBITDA Since Inception
HEP Growth: EBITDA Since Inception (steady state) 18 * "EBITDA" defined on page 32
Slide 19: HEP Growth: Distributable Cash Flow Since Inception
19 (CHART) HEP Growth: Distributable Cash Flow Since Inception
Slide 20: Presentation Topics
Presentation Topics HFC Company OverviewFinancial Performance and CompetitivenessFocused Growth / Improvement OrientationSummaryAppendix 20
Slide 21: HollyFrontier Key Investment Highlights
HollyFrontier Key Investment Highlights 21 'Pure Play' Independent RefinerAttractive 'High Margin' MarketsFocused on Continuous Improvement Strong Financial Metrics vs. PeersAdvantaged Logistics via HEP (MLP)
Slide 22: HollyFrontier Corporation contact details
HollyFrontier Corporation (NYSE: HFC)2828 N. Harwood, Suite 1300Dallas, Texas 75201(214) 871-3555Neale Hickerson, Vice President, Investor RelationsNeale.hickerson@hollyfrontier.com214-871-3572www.hollyfrontier.com 22
Slide 23: Appendix
[_—~—~—C—sSC‘C;:S Appendix HOLLYFRONTIER
Slide 24: Detail Overview of HollyFrontier and HEP
Detail Overview of HollyFrontier and HEP HollyFrontier:5 Refineries operating in Southwest, Rockies & Mid-Continent / Plains state marketsEl Dorado, KS 135,000 bpsd* Tulsa, OK 125,000 bpsdArtesia, NM 100,000 bpsdCheyenne, WY 55,000 bpsdWoods Cross, UT 31,000 bpsdOver 440,000 bpsd of refining capacit
Slide 25: Tulsa refinery integration and strategic acquisitions
25 Holly is in process of further integrating the two Tulsa facilities to form one complex 125,000 BPD refineryConstructing interconnect pipelines that will transfer various intermediate streams between facilities and optimize blending, increase yields and reduce operating expensesRefinery integrati
Slide 26: El Dorado Refinery
26 El Dorado Refinery Production Mix (3/31/11) Overview Operating Summary 1,000 acre site located in El Dorado, KS with crude capacity of 135,000 BPSD Ability to process sour and heavy (Canadian) crude oils into high value light products 19,000 BPD of coking capacityDistributes to high margin market
Slide 27: Tulsa Refinery Facilities
27 Tulsa Refinery Facilities (formerly owned by Sunoco & Sinclair) Production Mix (12/31/10)1 Overview New interconnect lines are expected to be placed into service in Fall 2011 to provide operating efficienciesRefineries are located less than 2 miles apart and will be pipeline connectedProcesses pr
Slide 28: Navajo Refining Facilities
Navajo Refining Facilities Product Sales Mix (12/31/10) Overview 561 acre site located in Artesia, NM with crude capacity of 100,000 BPSD (expanded in Q1 2009)Separate facilities in Lovington, NM-approximately 70 miles East of the Artesia facilitiesAbility to process sour and heavy (Canadian) crude
Slide 29: Cheyenne Refinery
29 Cheyenne Refinery Production Mix (3/31/11) Overview Operating Summary 255 acre site located in Cheyenne, WY with crude capacity of 52,000 BPSD Ability to process sour and heavy (Canadian) crude oils into high value light products Distributes to high margin Eastern Rockies markets & Plains statesN
Slide 30: Woods Cross Refinery
Woods Cross Refinery Product Sales Mix (12/31/10) Overview 200 acre site located in Woods Cross, UT (near Salt Lake City) with crude oil capacity of 31,000 BPDProcesses regional sweet and lower cost black wax crude as well as Canadian sour crude oils Distributes to high margin markets in Utah, Idaho
Slide 31: Financial metrics
Financial metrics* 31 * 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 32: Definitions
32 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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