HollyFrontier Corporation Reports 2021 Fourth Quarter and Full Year Results
- Reported net income attributable to HollyFrontier stockholders of $558.3 million or $3.39 per diluted share and adjusted net income of $250.1 million or $1.52 per diluted share, for the year
- Reported EBITDA of $1,306.9 million and adjusted EBITDA of $915.7 million, for the year
DALLAS–(BUSINESS WIRE)–HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported fourth quarter net loss attributable to HollyFrontier stockholders of $(39.5) million or $(0.24) per diluted share for the quarter ended December 31, 2021, compared to $(117.7) million or $(0.73) per diluted share for the quarter ended December 31, 2020.
The fourth quarter results reflect special items that collectively increased net loss by a total of $21.9 million. On a pre-tax basis, these items include acquisition integration costs of $15.8 million, a lower of cost or market inventory valuation adjustment of $8.7 million and charges related to the Cheyenne Refinery conversion to renewable diesel production, including decommissioning charges of $2.8 million. Excluding these items, adjusted net loss for the fourth quarter was $(17.6) million ($(0.11) per diluted share) compared to $(118.6) million ($(0.74) per diluted share) for the fourth quarter of 2020, which excludes certain items that collectively decreased net loss by $0.9 million for the three months ended December 31, 2020.
HollyFrontier’s CEO, Michael Jennings, commented, “Despite heavy planned and unplanned refining maintenance and weather-related downtime in the fourth quarter, HollyFrontier delivered solid financial results in 2021, highlighted by record earnings in our Lubricants and Specialties business and the closing of our acquisition of the Puget Sound Refinery. Looking forward to 2022, we remain constructive on the macro environment and are focused on the execution of our strategic initiatives: the successful completion and start-up of our renewables business, closing on our acquisition of Sinclair and accelerating returns of capital to our shareholders.”
Refining segment loss before interest and income taxes was $(63.5) million for the fourth quarter of 2021 compared to $(66.1) million in the fourth quarter of 2020. The segment reported EBITDA of $25.0 million for the fourth quarter of 2021 compared to $7.5 million for the fourth quarter of 2020. This increase was driven by stronger product demand, which resulted in a consolidated refinery gross margin of $8.70 per produced barrel, a 116% increase compared to $4.02 for the fourth quarter of 2020. Crude oil charge averaged 421,000 barrels per day (“BPD”) for the fourth quarter of 2021 compared to 379,910 BPD for the fourth quarter of 2020.
Lubricants and Specialty Products segment income before interest and income taxes was $53.7 million for the fourth quarter of 2021 compared to a loss before interest and income taxes of $(54.1) million in the fourth quarter of 2020. The segment reported EBITDA of $74.9 million for the fourth quarter of 2021 compared to $(32.7) million in the fourth quarter of 2020. Fourth quarter of 2020 included a goodwill impairment charge of $81.9 million related to Sonneborn.
Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $70.8 million for the fourth quarter of 2021 compared to $86.8 million in the fourth quarter of 2020.
For the fourth quarter of 2021, net cash used for operations totaled $332.8 million. At December 31, 2021, the Company’s cash and cash equivalents totaled $234.4 million, a $1,247.1 million decrease over cash and cash equivalents of $1,481.6 million at September 30, 2021 inclusive of our purchase of the Puget Sound Refinery. Additionally, the Company’s consolidated debt was $3,072.7 million. The Company’s debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $1,739.7 million at December 31, 2021.
The Company has scheduled a webcast conference call for today, February 23, 2022, at 8:30 AM Eastern Time to discuss fourth quarter financial results. This webcast may be accessed at: https://events.q4inc.com/attendee/868741482. An audio archive of this webcast will be available using the above noted link through March 9, 2022.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico, Washington and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in HEP, a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including subsidiaries of HollyFrontier Corporation.
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “strategy,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the Company’s ability to successfully close the pending acquisition by the Company and HEP of Sinclair Oil Corporation and Sinclair Transportation Company (collectively, “Sinclair”, and such transactions, the “Sinclair Transactions”), or once closed, integrate the operations of Sinclair with its existing operations and fully realize the expected synergies of the Sinclair Transactions or on the expected timeline; the satisfaction or waivers of the conditions precedent to the proposed Sinclair Transactions, including without limitation, regulatory approvals (including clearance by antitrust authorities necessary to complete the Sinclair Transactions on the terms and timeline desired), risks relating to the value of HF Sinclair common stock and the value of HEP’s limited partner common units to be issued at the closing of the Sinclair Transactions from sales in anticipation of closing and from sales by the Sinclair holders following the closing of the Sinclair Transactions; the cost and potential for a delay in closing as a result of litigation against the Company or HEP challenging the Sinclair Transactions; the Company’s ability to successfully integrate the operation of the Puget Sound Refinery with the Company’s existing operations; the demand for and supply of crude oil and refined products, including uncertainty regarding the effects of the continuing coronavirus (“COVID-19”) pandemic on future demand and increasing societal expectations that companies address climate change; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand; the effects of current and/or future governmental and environmental regulations and policies, including the effects of current and/or future restrictions on various commercial and economic activities in response to the COVID-19 pandemic; the availability and cost of financing to the Company; the effectiveness of the Company’s capital investments and marketing strategies; the Company’s efficiency in carrying out and consummating construction projects, including the Company’s ability to complete announced capital projects, such as the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within capital guidance; the Company’s ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States; a prolonged economic slowdown due to the COVID-19 pandemic which could result in an impairment of goodwill and/or long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
RESULTS OF OPERATIONS
Financial Data (all information in this release is unaudited)
|
|
Three Months Ended |
|
Change from 2020 |
|||||||||||
|
|
2021 |
|
2020 |
|
Change |
|
Percent |
|||||||
|
|
(In thousands, except per share data) |
|||||||||||||
|
Sales and other revenues |
$ |
5,622,667 |
|
|
$ |
2,900,768 |
|
|
$ |
2,721,899 |
|
|
94 |
% |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
|
4,958,160 |
|
|
|
2,510,845 |
|
|
|
2,447,315 |
|
|
97 |
|
|
Lower of cost or market inventory valuation adjustment |
|
8,739 |
|
|
|
(149,212 |
) |
|
|
157,951 |
|
|
(106 |
) |
|
|
|
4,966,899 |
|
|
|
2,361,633 |
|
|
|
2,605,266 |
|
|
110 |
|
|
Operating expenses |
|
430,858 |
|
|
|
336,077 |
|
|
|
94,781 |
|
|
28 |
|
|
Selling, general and administrative expenses |
|
111,225 |
|
|
|
76,041 |
|
|
|
35,184 |
|
|
46 |
|
|
Depreciation and amortization |
|
134,198 |
|
|
|
124,879 |
|
|
|
9,319 |
|
|
7 |
|
|
Goodwill and long-lived asset impairments |
|
— |
|
|
|
108,385 |
|
|
|
(108,385 |
) |
|
(100 |
) |
|
Total operating costs and expenses |
|
5,643,180 |
|
|
|
3,007,015 |
|
|
|
2,636,165 |
|
|
88 |
|
|
Loss from operations |
|
(20,513 |
) |
|
|
(106,247 |
) |
|
|
85,734 |
|
|
(81 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||
|
Earnings of equity method investments |
|
3,557 |
|
|
|
1,461 |
|
|
|
2,096 |
|
|
143 |
|
|
Interest income |
|
941 |
|
|
|
1,043 |
|
|
|
(102 |
) |
|
(10 |
) |
|
Interest expense |
|
(30,955 |
) |
|
|
(40,604 |
) |
|
|
9,649 |
|
|
(24 |
) |
|
Gain on foreign currency transactions |
|
1,288 |
|
|
|
3,119 |
|
|
|
(1,831 |
) |
|
(59 |
) |
|
Gain on sale of assets and other |
|
2,532 |
|
|
|
3,034 |
|
|
|
(502 |
) |
|
(17 |
) |
|
|
|
(22,637 |
) |
|
|
(31,947 |
) |
|
|
9,310 |
|
|
(29 |
) |
|
Loss before income taxes |
|
(43,150 |
) |
|
|
(138,194 |
) |
|
|
95,044 |
|
|
(69 |
) |
|
Income tax benefit |
|
(26,046 |
) |
|
|
(43,643 |
) |
|
|
17,597 |
|
|
(40 |
) |
|
Net loss |
|
(17,104 |
) |
|
|
(94,551 |
) |
|
|
77,447 |
|
|
(82 |
) |
|
Less net income attributable to noncontrolling interest |
|
22,426 |
|
|
|
23,196 |
|
|
|
(770 |
) |
|
(3 |
) |
|
Net loss attributable to HollyFrontier stockholders |
$ |
(39,530 |
) |
|
$ |
(117,747 |
) |
|
$ |
78,217 |
|
|
(66 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
|
Loss per share: |
|
|
|
|
|
|
|
|||||||
|
Basic |
$ |
(0.24 |
) |
|
$ |
(0.73 |
) |
|
$ |
0.49 |
|
|
(67 |
)% |
|
Diluted |
$ |
(0.24 |
) |
|
$ |
(0.73 |
) |
|
$ |
0.49 |
|
|
(67 |
)% |
|
Cash dividends declared per common share |
$ |
— |
|
|
$ |
0.35 |
|
|
$ |
(0.35 |
) |
|
(100 |
)% |
|
Average number of common shares outstanding: |
|
|
|
|
|
|
|
|||||||
|
Basic |
|
162,721 |
|
|
|
162,151 |
|
|
|
570 |
|
|
— |
% |
|
Diluted |
|
162,721 |
|
|
|
162,151 |
|
|
|
570 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|||||||
|
EBITDA |
$ |
98,636 |
|
|
$ |
3,050 |
|
|
$ |
95,586 |
|
|
3,134 |
% |
|
Adjusted EBITDA |
$ |
126,026 |
|
|
$ |
(21,898 |
) |
|
$ |
147,924 |
|
|
(676 |
)% |
|
|
Years Ended |
|
Change from 2020 |
|||||||||||
|
|
2021 |
|
2020 |
|
Change |
|
Percent |
|||||||
|
|
(In thousands, except per share data) |
|||||||||||||
|
Sales and other revenues |
$ |
18,389,142 |
|
|
$ |
11,183,643 |
|
|
$ |
7,205,499 |
|
|
64 |
% |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold: |
|
|
|
|
|
|
|
|||||||
|
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
|
15,567,052 |
|
|
|
9,158,805 |
|
|
|
6,408,247 |
|
|
70 |
|
|
Lower of cost or market inventory valuation adjustment
|
|
(310,123 |
) |
|
|
78,499 |
|
|
|
(388,622 |
) |
|
(495 |
) |
|
|
|
15,256,929 |
|
|
|
9,237,304 |
|
|
|
6,019,625 |
|
|
65 |
|
|
Operating expenses |
|
1,517,478 |
|
|
|
1,300,277 |
|
|
|
217,201 |
|
|
17 |
|
|
Selling, general and administrative expenses |
|
362,010 |
|
|
|
313,600 |
|
|
|
48,410 |
|
|
15 |
|
|
Depreciation and amortization |
|
503,539 |
|
|
|
520,912 |
|
|
|
(17,373 |
) |
|
(3 |
) |
|
Goodwill and long-lived asset impairments |
|
— |
|
|
|
545,293 |
|
|
|
(545,293 |
) |
|
(100 |
) |
|
Total operating costs and expenses |
|
17,639,956 |
|
|
|
11,917,386 |
|
|
|
5,722,570 |
|
|
48 |
|
|
Income (loss) from operations |
|
749,186 |
|
|
|
(733,743 |
) |
|
|
1,482,929 |
|
|
(202 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Other income (expense): |
|
|
|
|
|
|
|
|||||||
|
Earnings of equity method investments |
|
12,432 |
|
|
|
6,647 |
|
|
|
5,785 |
|
|
87 |
|
|
Interest income |
|
4,019 |
|
|
|
7,633 |
|
|
|
(3,614 |
) |
|
(47 |
) |
|
Interest expense |
|
(125,175 |
) |
|
|
(126,527 |
) |
|
|
1,352 |
|
|
(1 |
) |
|
Gain on business interruption insurance settlement |
|
— |
|
|
|
81,000 |
|
|
|
(81,000 |
) |
|
(100 |
) |
|
Gain on tariff settlement |
|
51,500 |
|
|
|
— |
|
|
|
51,500 |
|
|
— |
|
|
Gain on sales-type lease |
|
— |
|
|
|
33,834 |
|
|
|
(33,834 |
) |
|
(100 |
) |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
(25,915 |
) |
|
|
25,915 |
|
|
(100 |
) |
|
Gain (loss) on foreign currency transactions |
|
(2,938 |
) |
|
|
2,201 |
|
|
|
(5,139 |
) |
|
(233 |
) |
|
Gain on sale of assets and other |
|
98,128 |
|
|
|
7,824 |
|
|
|
90,304 |
|
|
1,154 |
|
|
|
|
37,966 |
|
|
|
(13,303 |
) |
|
|
51,269 |
|
|
(385 |
) |
|
Income (loss) before income taxes |
|
787,152 |
|
|
|
(747,046 |
) |
|
|
1,534,198 |
|
|
(205 |
) |
|
Income tax expense (benefit) |
|
123,898 |
|
|
|
(232,147 |
) |
|
|
356,045 |
|
|
(153 |
) |
|
Net income (loss) |
|
663,254 |
|
|
|
(514,899 |
) |
|
|
1,178,153 |
|
|
(229 |
) |
|
Less net income attributable to noncontrolling interest |
|
104,930 |
|
|
|
86,549 |
|
|
|
18,381 |
|
|
21 |
|
|
Net income (loss) attributable to HollyFrontier stockholders |
$ |
558,324 |
|
|
$ |
(601,448 |
) |
|
$ |
1,159,772 |
|
|
(193 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|||||||
|
Basic |
$ |
3.39 |
|
|
$ |
(3.72 |
) |
|
$ |
7.11 |
|
|
(191 |
)% |
|
Diluted |
$ |
3.39 |
|
|
$ |
(3.72 |
) |
|
$ |
7.11 |
|
|
(191 |
)% |
|
Cash dividends declared per common share |
$ |
0.35 |
|
|
$ |
1.40 |
|
|
$ |
(1.05 |
) |
|
(75 |
)% |
|
Average number of common shares outstanding: |
|
|
|
|
|
|
|
|||||||
|
Basic |
|
162,569 |
|
|
|
161,983 |
|
|
|
586 |
|
|
— |
% |
|
Diluted |
|
162,569 |
|
|
|
161,983 |
|
|
|
586 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|||||||
|
EBITDA |
$ |
1,306,917 |
|
|
$ |
(193,789 |
) |
|
$ |
1,500,706 |
|
|
(774 |
)% |
|
Adjusted EBITDA |
$ |
915,665 |
|
|
$ |
412,220 |
|
|
$ |
503,445 |
|
|
122 |
% |
Balance Sheet Data
|
|
Years Ended December 31, |
||||
|
|
2021 |
|
2020 |
||
|
|
(In thousands) |
||||
|
Cash and cash equivalents |
$ |
234,444 |
|
$ |
1,368,318 |
|
Working capital |
$ |
1,696,990 |
|
$ |
1,935,605 |
|
Total assets |
$ |
12,916,613 |
|
$ |
11,506,864 |
|
Long-term debt |
$ |
3,072,737 |
|
$ |
3,142,718 |
|
Total equity |
$ |
6,294,465 |
|
$ |
5,722,203 |
Segment Information
Our operations are organized into three reportable segments: Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.
The Refining segment represents the operations of our El Dorado, Tulsa, Navajo and Woods Cross refineries, HollyFrontier Asphalt Company LLC (“HFC Asphalt”) and also our recently acquired Puget Sound Refinery from the closing date on November 1, 2021 (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Refining segment also included the operations of our Cheyenne Refinery until it permanently ceased petroleum refining operations during the third quarter of 2020.
Beginning in the fourth quarter of 2020, activities associated with the conversion of Cheyenne Refinery to renewable diesel production, along with the construction of renewable diesel and pre-treatment units in Artesia, New Mexico were reported in Corporate and Other. The Cheyenne renewable diesel unit was mechanically complete in the fourth quarter of 2021. The pre-treatment unit is expected to be completed in the first quarter of 2022, and the Artesia renewable diesel unit is expected to be completed in the second quarter of 2022. Beginning in the first quarter of 2022, renewable diesel operations will cease to be reported in Corporate and Other and will be reported under a new Renewables segment.
The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.
The HEP segment includes all of the operations of HEP, a consolidated variable interest entity, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings.
|
|
|
Refining |
|
Lubricants |
|
HEP |
|
Corporate, |
|
Consolidated |
|||||||||
|
|
|
(In thousands) |
|||||||||||||||||
|
Three Months Ended December 31, 2021 |
|
|
|
|
|
|
|
|
|||||||||||
|
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
|
$ |
4,896,994 |
|
|
$ |
699,838 |
|
|
$ |
25,837 |
|
$ |
(2 |
) |
|
$ |
5,622,667 |
|
|
Intersegment revenues |
|
|
168,599 |
|
|
|
488 |
|
|
|
92,656 |
|
|
(261,743 |
) |
|
|
— |
|
|
|
|
$ |
5,065,593 |
|
|
$ |
700,326 |
|
|
$ |
118,493 |
|
$ |
(261,745 |
) |
|
$ |
5,622,667 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory adjustment) |
|
$ |
4,686,200 |
|
|
$ |
510,528 |
|
|
$ |
— |
|
$ |
(238,568 |
) |
|
$ |
4,958,160 |
|
|
Lower of cost or market inventory valuation adjustment |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
8,739 |
|
|
$ |
8,739 |
|
|
Operating expenses |
|
$ |
317,831 |
|
|
$ |
69,453 |
|
|
$ |
44,298 |
|
$ |
(724 |
) |
|
$ |
430,858 |
|
|
Selling, general and administrative expenses |
|
$ |
36,586 |
|
|
$ |
45,543 |
|
|
$ |
2,973 |
|
$ |
26,123 |
|
|
$ |
111,225 |
|
|
Depreciation and amortization |
|
$ |
88,455 |
|
|
$ |
21,268 |
|
|
$ |
20,090 |
|
$ |
4,385 |
|
|
$ |
134,198 |
|
|
Income (loss) from operations |
|
$ |
(63,479 |
) |
|
$ |
53,534 |
|
|
$ |
51,132 |
|
$ |
(61,700 |
) |
|
$ |
(20,513 |
) |
|
Income (loss) before interest and income taxes |
|
$ |
(63,479 |
) |
|
$ |
53,665 |
|
|
$ |
54,873 |
|
$ |
(58,195 |
) |
|
$ |
(13,136 |
) |
|
Net income attributable to noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,190 |
|
$ |
19,236 |
|
|
$ |
22,426 |
|
|
Earnings of equity method investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,557 |
|
$ |
— |
|
|
$ |
3,557 |
|
|
Capital expenditures |
|
$ |
46,106 |
|
|
$ |
13,344 |
|
|
$ |
11,403 |
|
$ |
194,211 |
|
|
$ |
265,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended December 31, 2020 |
|
|
|
|
|
|
|
|
|||||||||||
|
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
|
$ |
2,406,214 |
|
|
$ |
462,724 |
|
|
$ |
25,629 |
|
$ |
6,201 |
|
|
$ |
2,900,768 |
|
|
Intersegment revenues |
|
|
74,492 |
|
|
|
1,554 |
|
|
|
101,827 |
|
|
(177,873 |
) |
|
|
— |
|
|
|
|
$ |
2,480,706 |
|
|
$ |
464,278 |
|
|
$ |
127,456 |
|
$ |
(171,672 |
) |
|
$ |
2,900,768 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory adjustment) |
|
$ |
2,326,150 |
|
|
$ |
318,857 |
|
|
$ |
— |
|
$ |
(134,162 |
) |
|
$ |
2,510,845 |
|
|
Lower of cost or market inventory valuation adjustment |
|
$ |
(145,497 |
) |
|
$ |
— |
|
|
$ |
— |
|
$ |
(3,715 |
) |
|
$ |
(149,212 |
) |
|
Operating expenses |
|
$ |
233,433 |
|
|
$ |
59,609 |
|
|
$ |
37,971 |
|
$ |
5,064 |
|
|
$ |
336,077 |
|
|
Selling, general and administrative expenses |
|
$ |
32,621 |
|
|
$ |
36,162 |
|
|
$ |
2,420 |
|
$ |
4,838 |
|
|
$ |
76,041 |
|
|
Depreciation and amortization |
|
$ |
73,598 |
|
|
$ |
21,396 |
|
|
$ |
23,350 |
|
$ |
6,535 |
|
|
$ |
124,879 |
|
|
Goodwill and long-lived asset impairments |
|
$ |
26,518 |
|
|
$ |
81,867 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
108,385 |
|
|
Income (loss) from operations |
|
$ |
(66,117 |
) |
|
$ |
(53,613 |
) |
|
$ |
63,715 |
|
$ |
(50,232 |
) |
|
$ |
(106,247 |
) |
|
Income (loss) before interest and income taxes |
|
$ |
(66,117 |
) |
|
$ |
(54,056 |
) |
|
$ |
65,428 |
|
$ |
(43,888 |
) |
|
$ |
(98,633 |
) |
|
Net income attributable to noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,124 |
|
$ |
22,072 |
|
|
$ |
23,196 |
|
|
Earnings of equity method investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,461 |
|
$ |
— |
|
|
$ |
1,461 |
|
|
Capital expenditures |
|
$ |
45,870 |
|
|
$ |
12,086 |
|
|
$ |
20,641 |
|
$ |
38,555 |
|
|
$ |
117,152 |
|
|
|
Refining |
|
Lubricants |
|
HEP |
|
Corporate, |
|
Consolidated |
|||||||||
|
|
(In thousands) |
|||||||||||||||||
|
Year Ended December 31, 2021 |
|
|
|
|
|
|
|
|
||||||||||
|
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
$ |
15,734,870 |
|
|
$ |
2,550,624 |
|
|
$ |
103,646 |
|
$ |
2 |
|
|
$ |
18,389,142 |
|
|
Intersegment revenues |
|
623,688 |
|
|
|
9,988 |
|
|
|
390,849 |
|
|
(1,024,525 |
) |
|
|
— |
|
|
|
$ |
16,358,558 |
|
|
$ |
2,560,612 |
|
|
$ |
494,495 |
|
$ |
(1,024,523 |
) |
|
$ |
18,389,142 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory adjustment) |
$ |
14,673,062 |
|
|
$ |
1,815,802 |
|
|
$ |
— |
|
$ |
(921,812 |
) |
|
$ |
15,567,052 |
|
|
Lower of cost or market inventory valuation adjustment |
$ |
(318,353 |
) |
|
$ |
— |
|
|
$ |
— |
|
$ |
8,230 |
|
|
$ |
(310,123 |
) |
|
Operating expenses |
$ |
1,090,424 |
|
|
$ |
252,456 |
|
|
$ |
170,524 |
|
$ |
4,074 |
|
|
$ |
1,517,478 |
|
|
Selling, general and administrative expenses |
$ |
127,563 |
|
|
$ |
170,155 |
|
|
$ |
12,637 |
|
$ |
51,655 |
|
|
$ |
362,010 |
|
|
Depreciation and amortization |
$ |
334,365 |
|
|
$ |
79,767 |
|
|
$ |
86,998 |
|
$ |
2,409 |
|
|
$ |
503,539 |
|
|
Income (loss) from operations |
$ |
451,497 |
|
|
$ |
242,432 |
|
|
$ |
224,336 |
|
$ |
(169,079 |
) |
|
$ |
749,186 |
|
|
Income (loss) before interest and income taxes |
$ |
449,747 |
|
|
$ |
329,203 |
|
|
$ |
267,623 |
|
$ |
(138,265 |
) |
|
$ |
908,308 |
|
|
Net income attributable to noncontrolling interest |
$ |
— |
|
|
$ |
— |
|
|
$ |
7,217 |
|
$ |
97,713 |
|
|
$ |
104,930 |
|
|
Earnings of equity method investments |
$ |
— |
|
|
$ |
— |
|
|
$ |
12,432 |
|
$ |
— |
|
|
$ |
12,432 |
|
|
Capital expenditures |
$ |
160,431 |
|
|
$ |
30,878 |
|
|
$ |
88,336 |
|
$ |
533,764 |
|
|
$ |
813,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31, 2020 |
|
|
|
|
|
|
|
|
||||||||||
|
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|||||||||
|
Revenues from external customers |
$ |
9,286,658 |
|
|
$ |
1,792,745 |
|
|
$ |
98,039 |
|
$ |
6,201 |
|
|
$ |
11,183,643 |
|
|
Intersegment revenues |
|
252,531 |
|
|
|
10,465 |
|
|
|
399,809 |
|
|
(662,805 |
) |
|
|
— |
|
|
|
$ |
9,539,189 |
|
|
$ |
1,803,210 |
|
|
$ |
497,848 |
|
$ |
(656,604 |
) |
|
$ |
11,183,643 |
|
|
Cost of products sold (exclusive of lower of cost or market inventory adjustment) |
$ |
8,439,680 |
|
|
$ |
1,271,287 |
|
|
$ |
— |
|
$ |
(552,162 |
) |
|
$ |
9,158,805 |
|
|
Lower of cost or market inventory valuation adjustment |
$ |
82,214 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
(3,715 |
) |
|
$ |
78,499 |
|
|
Operating expenses |
$ |
988,045 |
|
|
$ |
216,068 |
|
|
$ |
147,692 |
|
$ |
(51,528 |
) |
|
$ |
1,300,277 |
|
|
Selling, general and administrative expenses |
$ |
127,298 |
|
|
$ |
157,816 |
|
|
$ |
9,989 |
|
$ |
18,497 |
|
|
$ |
313,600 |
|
|
Depreciation and amortization |
$ |
324,617 |
|
|
$ |
80,656 |
|
|
$ |
95,445 |
|
$ |
20,194 |
|
|
$ |
520,912 |
|
|
Goodwill impairment |
$ |
241,760 |
|
|
$ |
286,575 |
|
|
$ |
16,958 |
|
$ |
— |
|
|
$ |
545,293 |
|
|
Income (loss) from operations |
$ |
(664,425 |
) |
|
$ |
(209,192 |
) |
|
$ |
227,764 |
|
$ |
(87,890 |
) |
|
$ |
(733,743 |
) |
|
Income (loss) before interest and income taxes |
$ |
(664,425 |
) |
|
$ |
(209,903 |
) |
|
$ |
251,021 |
|
$ |
(4,845 |
) |
|
$ |
(628,152 |
) |
|
Net income attributable to noncontrolling interest |
$ |
— |
|
|
$ |
— |
|
|
$ |
5,282 |
|
$ |
81,267 |
|
|
$ |
86,549 |
|
|
Earnings of equity method investments |
$ |
— |
|
|
$ |
— |
|
|
$ |
6,647 |
|
$ |
— |
|
|
$ |
6,647 |
|
|
Capital expenditures |
$ |
152,726 |
|
|
$ |
32,473 |
|
|
$ |
59,283 |
|
$ |
85,678 |
|
|
$ |
330,160 |
|
Contacts
Richard L. Voliva III, Executive Vice President and
Chief Financial Officer
Craig Biery, Vice President,
Investor Relations
HollyFrontier Corporation
214-954-6510
