Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Merger or Acquisition (April 2009)
14 slides from Hf Sinclair's merger presentation, Apr 16, 2009
Slide 1: Holly Corporation Acquisition of Sunoco's Tulsa Refinery
Holly Corporation Acquisition of Sunoco's Tulsa Refinery Presented April 16, 2009
Slide 2: 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 3: Presentation Topics
Presentation Topics Tulsa Acquisition Transaction Summary Asset Strengths and Strategic Drivers Required Capital Financials & Metrics Holly Strengths Appendix Tulsa Refinery Flow Diagram and Units Holly's Historical Strong Returns and Financial Position Definitions and Non-GAAP Reconciliations
Slide 4: Acquisition - Transaction Summary
Tulsa Acquisition - Transaction Summary Asset Summary: Tulsa refinery has crude capacity of 85,000 BPSD High complexity: 10.4 Nelson complexity factor Produces high value specialty products and transportation fuels Strategic location - direct pipeline connection to Cushing crude oil hub and Magellan
Slide 5: Acquisition - Asset Strengths and Strategic Drivers
Tulsa Acquisition - Asset Strengths and Strategic Drivers High complexity / historically strong EBITDA producing facility Purchase price is < than $1,000/KBPD and .5 x 2008 EBITDA Asset replacement value is estimated to be $1.6B Significant production of high value specialty products and transportat
Slide 6: Acquisition - Required Capital
Tulsa Acquisition - Required Capital Planned Project Construction of new diesel hydrotreater and sulfur plant Replicates recent projects executed at Holly's other two refineries Expected Cost - $150 million Completion - Mid 2011 Benefits: Allows all diesel to be produced as Ultra Low Sulfur Diesel (
Slide 7: Acquisition - Financials & Metrics
Tulsa Acquisition - Financials & Metrics (1) Provided by Sunoco (2) Major turnaround mid-2007 during which Sunoco spent $42MM on turnaround (3) 2008 EBITDA includes add back of non-cash asset write-down and environmental accrual Holly Historical Financial & Operational Data Tulsa Historical Financia
Slide 8: Holly Strengths
Holly Strengths Tulsa addition plus recently completed existing refinery expansions will raise refining capacity from 111,000 BPSD in 2008 to 216,000 BPSD All three refineries are high complexity facilities positioned to competitively serve our historically high margin Rocky Mountain and Southwest m
Slide 9: Appendix
Appendix Tulsa Refinery Flow Diagram and Units Holly's Historical Strong Returns and Financial Position Definitions and Non-GAAP Reconciliations
Slide 10: Process Flow Diagram
Tulsa Process Flow Diagram 19
Slide 11: Process Unit Summary
Process Unit Summary The Refinery had a major turnaround during June and early July 2007. (1) (2) LERU - Light Ends Recovery Unit. (1) (2)
Slide 12: Holly's Strong Returns and Financial Position
Holly's Strong Returns and Financial Position High returns on investment capital Strong cash flow generation Currently no long-term debt Strong balance sheet for growth 2004 2005 2006 2007 2008 26% 45% 63% 63% 22% Holly Return on Invested Capital 2004 2005 2006 2007 2008 3% 0% 0% 0% 0% Holly Debt to
Slide 13: Definitions
Definitions BPD: the number of barrels per calendar day of crude oil or petroleum products. BPSD: the number of barrels per stream day of crude oil or petroleum products. EBITDA: Earnings before interest, taxes, depreciation and amortization, which we refer to as EBITDA, is calculated as net income
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Years ended Dee 31, For Sunoco Tulsa Refinery 2008 2006 2007 2008. (in thousands) Income S$ 56094 $ 128564 $ 101371 $ (1,017) ‘Add provision for income tax 34031 77,883 59,483. (24,218) ‘Add interest expense 3 C : Subtract interest income 2 2 2 2 ‘Add depreciation and amorti