Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Merger or Acquisition (October 2009)
12 slides from Hf Sinclair's merger presentation, Oct 20, 2009
Slide 1: Holly Corporation Acquisition of Sinclair's Tulsa Refinery
Holly Corporation Acquisition of Sinclair's Tulsa Refinery Presented via Webcast October 20, 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: Sinclair Tulsa Refinery Presentation Topics
Sinclair Tulsa Refinery Presentation Topics Holly Overview Transaction Summary Sinclair Tulsa Refinery Description Holly Tulsa + Sinclair Tulsa: Key Benefits Before/After Sales Mix Attractive Purchase Multiple for Combined Plant Summary Overview Holly Investment Highlights
Slide 4: Holly Overview
Holly Overview 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 Owns 100% of GP and 7.3 million LP units of Holly Energy Partners (NYSE: HEP) Holly E
Slide 5: Transaction Summary
Transaction Summary 1Combined fully integrated capacity of Holly's existing Tulsa refinery and Sinclair's refinery is projected to be approximately 125,000 bpsd Holly has signed a definitive agreement to purchase Sinclair's Tulsa refinery Holly's portion of the purchase price will consist of $74.0 m
Slide 6: Sinclair Tulsa Refinery Description
Sinclair Tulsa Refinery Description Crude capacity - 75,000 bpd Location - 2 miles southeast of Holly's Tulsa refinery Key operating units and design capacities: Crude unit (75,000 bpd) CCR reformer (19,000 bpd) Fluid catalytic cracker (24,000 bpd) Diesel hydrotreater (24,000 bpd) Isomerization unit
Slide 7: Holly Tulsa + Sinclair Tulsa: Key Benefits
Holly Tulsa + Sinclair Tulsa: Key Benefits 1Full integration could take up to 18 months but gas oil upgrade is available immediately 22009 YTD Gulf Coast crack spread (3-2-1) is approximately $7.20/BBL Holly will integrate the two Tulsa facilities to form one complex 125,000 BPD refinery1 Net capex
Slide 8: Before/After Sales Mix
With Sinclair Tulsa (fully integrated) Crude Capacity = 125,000 bpd Before/After Sales Mix Gasoline Distillates Lubes Gas oil Asphalt/LPG/Other 22 40 17 14 7 Holly Tulsa - Current Capability Crude Capacity = 85,000 bpd Source: Internal results of initial LP modeling of fully integrated plants Gasoli
Slide 9: Attractive Purchase Multiple for Combined Plant
Attractive Purchase Multiple for Combined Plant1 1Full integration could take up to 18 months -- gas oil upgrade is available immediately 2Total comprised of $10mm for expanded desulfurization capacity at the Sinclair refinery and $30mm for expanded sulfur & flare gas recovery at the existing Tulsa
Slide 10: Summary Overview: Purchase Transaction & Integration
Summary Overview: Purchase Transaction & Integration Creates complex refining facility with scale Specialty lubes production High distillate yield Strong gasoline yield Asphalt production & coker operation Expands Holly's Mid-Con capacity by 40,000 BPD Upgrades low-value product into transportation
Slide 11: Holly Investment Highlights
1 2 3 4 5 High Quality, Complex Refining Asset Base 6 Holly Investment Highlights Attractive Product Markets High Degree of Crude Source Flexibility Conservative Capital Structure Experienced Management Team Synergistic Acquisitions of Tulsa Refineries (Sun + Sinclair)
Slide 12: Holly Corporation / Holly Energy Partners contact
Holly Corporation Holly Energy Partners 100 Crescent Court, Suite 1600 Dallas, Texas 75201 (214) 871-3555 Bruce Shaw, SVP-Chief Financial Officer M. Neale Hickerson, VP-Investor Relations www.hollycorp.com www.hollyenergy.com