Hf Sinclair Corporation · NYSE:DINO
Hf Sinclair — Holly — Friends of Finance March 2011
22 slides from Hf Sinclair's conference presentation, Mar 8, 2011
Slide 1: Friends of Finance March 2011
Friends of Finance March 2011 Dave Lamp, President
Slide 2: Holly Corporation Disclosure Statement
Holly Corporation Disclosure Statement 2 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 nec
Slide 3: Our Mission
—— Our Mission Our mission is to be a premier U.S. petroleum refining, pipeline and terminal company as measured by superior financial performance and sustainable, profitable growth. We see to acomplih this by operating safely, reliably and in an environmentally responsible manner, fectively tnd eff
Slide 4: Presentation Topics
Presentation Topics HOC Company Overview Focused Growth Orientation Tulsa Refineries What's next for refiners? Questions 4
Slide 5: Holly Investment Highlights
Holly Investment Highlights Holly Investment Highlights 5 1 - HEP's annualized cash distributions as of 12/31/10 to HOC exceed $39M (LP - $25M, GP-$14M). Annualized distributions are calculated using HEP distributions received in 4Q10 then multiplied times 4 (Qtrs). 1
Slide 6: Overview of Holly and HEP
Overview of Holly and HEP 6 Holly Corporation (NYSE: HOC) Holly's refineries operate in Southwest, Rockies & Mid-Continent markets Over 250,000 bpsd of refining capacity and average complexity of over 12.0 Refineries directly connected to domestic or Canadian crude trading hubs Owns 100% of GP and 7
Slide 7: Holly Historical EBITDA
Holly Historical EBITDA (in millions) 7 *Definition for non-GAAP measures such as EBITDA or Margins are located on page 21. * *
Slide 8: HOC's Advantaged Markets
HOC's Advantaged Markets 8 1 - Gasoline and Diesel cracks are determined using Spot market prices and NYMEX crude oil (WTI) postings for each respective period and market. These are not HOC specific cracks and are intended to display general market trends with respect to both gasoline and diesel. 1
Slide 9: Conservative Balance Sheet and Strong Returns on Capital
Conservative Balance Sheet and Strong Returns on Capital 1 - Debt levels exclude Sunoco Logistics (SLX) Debt 2 - HOC debt excludes HEP Debt (which is non recourse to HOC). 3 - HOC Cash @ 12/31/2010. * Supporting calculations /details are located on page 20 - 21 Net debt to total cap of -4% @ 12/31/1
Slide 10: Presentation Topics
Presentation Topics HOC Company Overview Focused Growth Orientation Tulsa Refineries What's next for refiners? Summary 10
Slide 11: HOC Growth - Thru Strategic Investments & Acquisitions
HOC Growth - Thru Strategic Investments & Acquisitions Approx $500mm invested for enhanced feedstock flexibility and modest growth Synergistic acquisitions of Tulsa refineries at less than $1,000 per daily bbl Uniquely positioned among peers to enter up-cycle at twice our 2008 capacity 11 Tulsa East
Slide 12: US & OK Refining History: A Volatile & Capital Intensive Business
US & OK Refining History: A Volatile & Capital Intensive Business US Refining No new refinery has been built since 1976 The number of operable refineries in the US has dropped more than half since 1980 1981 301 Refineries 17.9 mbpd - Total Capacity Avg. Capacity - 59 tbpd 2010 130 Refineries 17.8 mb
Slide 13: Holly's Tulsa Refinery History
Holly's Tulsa Refinery History HOC West Plant (Legacy Sunoco) 1913 - Cosden and Company started the refinery with batch stills along the Arkansas River 1925 - Name changed to Mid-Continent Petroleum 1955 - Mid-Continent merged with Sunray (exploration and production company) 1968 - SunRay merges wit
Slide 14: Tulsa Refinery Overview
Tulsa Refinery Overview 14 Holly has begun to integrate the operations of the two refineries which combine to form one complex 125,000 BPD refinery New interconnect lines are expected to be placed into service in early 2011 to further integrate the two facilities Processes predominantly a sweet crud
Slide 15: Holly's economic contributions to Tulsa / OK
Holly's economic contributions to Tulsa / OK Holly's Annual Economic Impact: $600M Local Economy Impact - $400M Statewide / Regional Impact - $600M HOC's Annual Tulsa Spend: $225M Payroll - $65M HOC & HEP Employees - 618....Among Tulsa area Top 50 private industry employers Each refinery employee re
Slide 16: Presentation Topics
Presentation Topics HOC Company Overview Focused Growth Orientation Tulsa Refineries What's next for refiners? Questions 16
Slide 17: Challenges
Challenges Compliance standards require significant capital and will continue to increase going forward Recent mandates: Ultra low sulfur diesel standards Reduced benzene levels in gasoline Proposed mandates: Clean Air Act / Greenhouse Gas Emissions E15 - 15% ethanol blending Low Carbon Fuel Standar
Slide 18: What's Next...for Holly?
What's Next...for Holly? Refining Cardinal Sins...what we live by Never take on too much debt Never overpay for an asset / refinery Stay Away From Liquidity Points (Merchant Refining centers) Capitalize on options Continue to invest and optimize your refining and logistics assets Advantaged Crude Ac
Slide 19: Questions?
Questions? wlll y
Slide 20: Financial metrics
Financial metrics 20 **Debt level for Sunoco excludes Sunoco Logistics (SXL) debt. Holly debt excludes HEP debt. All amounts are based on publicly-available financial statements which we have assumed to be accurate.
Slide 21: Definitions
21 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
Slide 22: Holly Corporation contact details
22 Holly Corporation (NYSE: HOC) 100 Crescent Court, Suite 1600 Dallas, Texas 75201 (214) 871-3555 Dave Lamp, President Dave.lamp@hollycorp.com 214-871-3555 www.hollycorp.com