HollyFrontier Corporation Reports 2021 Fourth Quarter and Full Year Results
HollyFrontier Corporation (NYSE:HFC) reported a fourth quarter net loss of $(39.5) million or $(0.24) per diluted share for Q4 2021, an improvement from $(117.7) million in Q4 2020. The acquisition integration costs and adjustments related to the Cheyenne Refinery conversion impacted results, contributing $21.9 million to the net loss. Despite challenges, the company posted record earnings in its Lubricants and Specialties segment, with EBITDA of $915.7 million for the year. HEP reported EBITDA of $70.8 million for Q4 2021, down from $86.8 million in Q4 2020.
- Record earnings in Lubricants and Specialties segment.
- Fourth quarter EBITDA improved to $25 million from $7.5 million year-over-year.
- Q4 2021 net loss of $(39.5) million impacted by $21.9 million in special charges.
- HEP's EBITDA decreased to $70.8 million from $86.8 million year-over-year.
-
Reported net income attributable to
HollyFrontier stockholders of or$558.3 million per diluted share and adjusted net income of$3.39 or$250.1 million per diluted share, for the year$1.52
-
Reported EBITDA of
and adjusted EBITDA of$1,306.9 million , for the year$915.7 million
The fourth quarter results reflect special items that collectively increased net loss by a total of
HollyFrontier’s CEO,
Refining segment loss before interest and income taxes was
Lubricants and Specialty Products segment income before interest and income taxes was
For the fourth quarter of 2021, net cash used for operations totaled
The Company has scheduled a webcast conference call for today,
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
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 |
|
|
|
— |
|
|
|
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 |
$ |
(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 |
) |
|
|
— |
|
|
|
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 |
$ |
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 |
||||
|
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
Beginning in the fourth quarter of 2020, activities associated with the conversion of
The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in
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
|
|
Refining |
|
Lubricants
|
|
HEP |
|
Corporate,
|
|
Consolidated
|
|||||||||
|
|
(In thousands) |
|||||||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|||||||||||
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 |
|
|
|
|
|
|
|
|
|||||||||||
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 |
|
|
|
$ |
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 |
|
|
|
|
|
|
|
|
||||||||||
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 |
|
|
|
|
|
|
|
|
||||||||||
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 |
|
|
$ |
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 |
|
|
|
Refining |
|
Lubricants
|
|
HEP |
|
Corporate,
|
|
Consolidated
|
||||||
|
|
(In thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
— |
|
$ |
113,474 |
|
$ |
14,381 |
|
$ |
106,589 |
|
|
$ |
234,444 |
Total assets |
|
$ |
9,736,851 |
|
$ |
2,073,638 |
|
$ |
2,250,115 |
|
$ |
(1,143,991 |
) |
|
$ |
12,916,613 |
Long-term debt |
|
$ |
— |
|
$ |
— |
|
$ |
1,333,049 |
|
$ |
1,739,688 |
|
|
$ |
3,072,737 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
3,106 |
|
$ |
163,729 |
|
$ |
21,990 |
|
$ |
1,179,493 |
|
|
$ |
1,368,318 |
Total assets |
|
$ |
6,203,847 |
|
$ |
1,864,313 |
|
$ |
2,198,478 |
|
$ |
1,240,226 |
|
|
$ |
11,506,864 |
Long-term debt |
|
$ |
— |
|
$ |
— |
|
$ |
1,405,603 |
|
$ |
1,737,115 |
|
|
$ |
3,142,718 |
Refining Segment Operating Data
As of
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
|
||||||||||
Crude charge (BPD) (1) |
|
|
265,770 |
|
|
|
260,780 |
|
|
|
260,350 |
|
|
|
241,140 |
|
Refinery throughput (BPD) (2) |
|
|
287,300 |
|
|
|
279,670 |
|
|
|
276,430 |
|
|
|
257,030 |
|
Sales of produced refined products (BPD) (3) |
|
|
285,250 |
|
|
|
273,710 |
|
|
|
265,470 |
|
|
|
248,320 |
|
Refinery utilization (4) |
|
|
102.2 |
% |
|
|
100.3 |
% |
|
|
100.1 |
% |
|
|
92.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Average per produced barrel (5) |
|
|
|
|
|
|
|
|
||||||||
Refinery gross margin |
|
$ |
6.18 |
|
|
$ |
1.93 |
|
|
$ |
9.44 |
|
|
$ |
5.17 |
|
Refinery operating expenses (6) |
|
|
5.73 |
|
|
|
5.42 |
|
|
|
6.42 |
|
|
|
5.46 |
|
Net operating margin |
|
$ |
0.45 |
|
|
$ |
(3.49 |
) |
|
$ |
3.02 |
|
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Refinery operating expenses per throughput barrel (7) |
|
$ |
5.69 |
|
|
$ |
5.30 |
|
|
$ |
6.17 |
|
|
$ |
5.27 |
|
|
|
|
|
|
|
|
|
|
||||||||
Feedstocks: |
|
|
|
|
|
|
|
|
||||||||
Sweet crude oil |
|
|
55 |
% |
|
|
59 |
% |
|
|
61 |
% |
|
|
58 |
% |
Sour crude oil |
|
|
21 |
% |
|
|
19 |
% |
|
|
15 |
% |
|
|
19 |
% |
Heavy sour crude oil |
|
|
17 |
% |
|
|
15 |
% |
|
|
18 |
% |
|
|
17 |
% |
Other feedstocks and blends |
|
|
7 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
6 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Sales of produced refined products: |
|
|
|
|
|
|
|
|
||||||||
Gasolines |
|
|
53 |
% |
|
|
54 |
% |
|
|
52 |
% |
|
|
52 |
% |
Diesel fuels |
|
|
32 |
% |
|
|
33 |
% |
|
|
33 |
% |
|
|
34 |
% |
Jet fuels |
|
|
6 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
4 |
% |
Fuel oil |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
|
|
1 |
% |
Asphalt |
|
|
2 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
Base oils |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
LPG and other |
|
|
2 |
% |
|
|
1 |
% |
|
|
2 |
% |
|
|
2 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 (8) |
|
2020 |
|
2021 (8) |
|
2020 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Crude charge (BPD) (1) |
|
|
155,230 |
|
|
|
119,130 |
|
|
|
140,370 |
|
|
|
124,050 |
|
Refinery throughput (BPD) (2) |
|
|
175,440 |
|
|
|
133,110 |
|
|
|
155,440 |
|
|
|
138,050 |
|
Sales of produced refined products (BPD) (3) |
|
|
188,980 |
|
|
|
144,280 |
|
|
|
158,630 |
|
|
|
143,350 |
|
Refinery utilization (4) |
|
|
63.7 |
% |
|
|
82.2 |
% |
|
|
82.7 |
% |
|
|
85.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Average per produced barrel (5) |
|
|
|
|
|
|
|
|
||||||||
Refinery gross margin |
|
$ |
12.50 |
|
|
$ |
7.98 |
|
|
$ |
13.32 |
|
|
$ |
10.97 |
|
Refinery operating expenses (6) |
|
|
9.63 |
|
|
|
7.31 |
|
|
|
8.09 |
|
|
|
7.07 |
|
Net operating margin |
|
$ |
2.87 |
|
|
$ |
0.67 |
|
|
$ |
5.23 |
|
|
$ |
3.90 |
|
|
|
|
|
|
|
|
|
|
||||||||
Refinery operating expenses per throughput barrel (7) |
|
$ |
10.38 |
|
|
$ |
7.93 |
|
|
$ |
9.27 |
|
|
$ |
7.34 |
|
|
|
|
|
|
|
|
|
|
||||||||
Feedstocks: |
|
|
|
|
|
|
|
|
||||||||
Sweet crude oil |
|
|
20 |
% |
|
|
29 |
% |
|
|
22 |
% |
|
|
30 |
% |
Sour crude oil |
|
|
56 |
% |
|
|
48 |
% |
|
|
58 |
% |
|
|
49 |
% |
Heavy sour crude oil |
|
|
2 |
% |
|
|
— |
% |
|
|
1 |
% |
|
|
— |
% |
Black wax crude oil |
|
|
11 |
% |
|
|
12 |
% |
|
|
10 |
% |
|
|
11 |
% |
Other feedstocks and blends |
|
|
11 |
% |
|
|
11 |
% |
|
|
9 |
% |
|
|
10 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Sales of produced refined products: |
|
|
|
|
|
|
|
|
||||||||
Gasolines |
|
|
56 |
% |
|
|
57 |
% |
|
|
54 |
% |
|
|
56 |
% |
Diesel fuels |
|
|
29 |
% |
|
|
34 |
% |
|
|
35 |
% |
|
|
35 |
% |
Jet fuels |
|
|
4 |
% |
|
|
— |
% |
|
|
1 |
% |
|
|
— |
% |
Fuel oil |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
3 |
% |
Asphalt |
|
|
3 |
% |
|
|
3 |
% |
|
|
4 |
% |
|
|
4 |
% |
LPG and other |
|
|
5 |
% |
|
|
3 |
% |
|
|
3 |
% |
|
|
2 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Consolidated |
|
|
|
|
|
|
|
|
||||||||
Crude charge (BPD) (1) |
|
|
421,000 |
|
|
|
379,910 |
|
|
|
400,720 |
|
|
|
365,190 |
|
Refinery throughput (BPD) (2) |
|
|
462,740 |
|
|
|
412,780 |
|
|
|
431,870 |
|
|
|
395,080 |
|
Sales of produced refined products (BPD) (3) |
|
|
474,230 |
|
|
|
417,990 |
|
|
|
424,100 |
|
|
|
391,670 |
|
Refinery utilization (4) |
|
|
83.6 |
% |
|
|
93.8 |
% |
|
|
93.1 |
% |
|
|
90.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Average per produced barrel (5) |
|
|
|
|
|
|
|
|
||||||||
Refinery gross margin |
|
$ |
8.70 |
|
|
$ |
4.02 |
|
|
$ |
10.89 |
|
|
$ |
7.29 |
|
Refinery operating expenses (6) |
|
|
7.28 |
|
|
|
6.07 |
|
|
|
7.04 |
|
|
|
6.05 |
|
Net operating margin |
|
$ |
1.42 |
|
|
$ |
(2.05 |
) |
|
$ |
3.85 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
|
|
||||||||
Refinery operating expenses per throughput barrel (7) |
|
$ |
7.47 |
|
|
$ |
6.15 |
|
|
$ |
6.92 |
|
|
$ |
6.00 |
|
|
|
|
|
|
|
|
|
|
||||||||
Feedstocks: |
|
|
|
|
|
|
|
|
||||||||
Sweet crude oil |
|
|
41 |
% |
|
|
49 |
% |
|
|
47 |
% |
|
|
48 |
% |
Sour crude oil |
|
|
34 |
% |
|
|
29 |
% |
|
|
31 |
% |
|
|
29 |
% |
Heavy sour crude oil |
|
|
12 |
% |
|
|
10 |
% |
|
|
12 |
% |
|
|
11 |
% |
Black wax crude oil |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
Other feedstocks and blends |
|
|
9 |
% |
|
|
8 |
% |
|
|
6 |
% |
|
|
8 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
Three Months Ended
|
|
Years Ended
|
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Consolidated |
|
|
|
|
|
|
|
|
||||
Sales of produced refined products: |
|
|
|
|
|
|
|
|
||||
Gasolines |
|
54 |
% |
|
55 |
% |
|
53 |
% |
|
54 |
% |
Diesel fuels |
|
31 |
% |
|
33 |
% |
|
34 |
% |
|
34 |
% |
Jet fuels |
|
6 |
% |
|
3 |
% |
|
4 |
% |
|
3 |
% |
Fuel oil |
|
1 |
% |
|
2 |
% |
|
1 |
% |
|
1 |
% |
Asphalt |
|
3 |
% |
|
3 |
% |
|
3 |
% |
|
4 |
% |
Base oils |
|
2 |
% |
|
2 |
% |
|
2 |
% |
|
2 |
% |
LPG and other |
|
3 |
% |
|
2 |
% |
|
3 |
% |
|
2 |
% |
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
(1) |
Crude charge represents the barrels per day of crude oil processed at our refineries. |
|
(2) |
Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries. |
|
(3) |
Represents barrels sold of refined products produced at our refineries (including HFC Asphalt) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold. |
|
(4) |
Represents crude charge divided by total crude capacity ("BPSD"). As a result of our acquisition of the |
|
(5) |
Represents average amount per produced barrel sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. |
|
(6) |
Represents total Mid-Continent and West regions operating expenses, exclusive of long-lived asset impairment charges and depreciation and amortization, divided by sales volumes of refined products produced at our refineries. |
|
(7) |
Represents total Mid-Continent and West regions operating expenses, exclusive of long-lived asset impairment charges and depreciation and amortization, divided by refinery throughput. |
|
(8) |
We acquired the |
Lubricants and Specialty Products Segment Operating Data
The following table sets forth information about our lubricants and specialty products operations.
|
|
Three Months Ended
|
|
Years Ended
|
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Lubricants and Specialty Products |
|
|
|
|
|
|
|
|
||||
Throughput (BPD) |
|
18,760 |
|
|
21,425 |
|
|
19,177 |
|
|
19,645 |
|
Sales of produced products (BPD) |
|
35,120 |
|
|
33,559 |
|
|
34,016 |
|
|
32,902 |
|
|
|
|
|
|
|
|
|
|
||||
Sales of produced products: |
|
|
|
|
|
|
|
|
||||
Finished products |
|
46 |
% |
|
49 |
% |
|
51 |
% |
|
49 |
% |
Base oils |
|
26 |
% |
|
28 |
% |
|
27 |
% |
|
26 |
% |
Other |
|
28 |
% |
|
23 |
% |
|
22 |
% |
|
25 |
% |
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
Our Lubricants and Specialty Products segment includes base oil production activities, by-product sales to third parties and intra-segment base oil sales to rack forward, referred to as “Rack Back.” “Rack Forward” includes the purchase of base oils and the blending, packaging, marketing and distribution and sales of finished lubricants and specialty products to third parties. Supplemental financial data attributable to our Lubricants and Specialty Products segment is presented below:
|
|
|
|
Rack
|
|
Eliminations (3) |
|
Total
|
||||||||
|
|
(In thousands) |
||||||||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||
Sales and other revenues |
|
$ |
307,018 |
|
|
$ |
631,221 |
|
|
$ |
(237,913 |
) |
|
$ |
700,326 |
|
Cost of products sold |
|
$ |
202,124 |
|
|
$ |
546,317 |
|
|
$ |
(237,913 |
) |
|
$ |
510,528 |
|
Operating expenses |
|
$ |
33,977 |
|
|
$ |
35,476 |
|
|
$ |
— |
|
|
$ |
69,453 |
|
Selling, general and administrative expenses |
|
$ |
7,360 |
|
|
$ |
38,183 |
|
|
$ |
— |
|
|
$ |
45,543 |
|
Depreciation and amortization |
|
$ |
8,183 |
|
|
$ |
13,085 |
|
|
$ |
— |
|
|
$ |
21,268 |
|
Income (loss) from operations |
|
$ |
55,374 |
|
|
$ |
(1,840 |
) |
|
$ |
— |
|
|
$ |
53,534 |
|
Income (loss) before interest and income taxes |
|
$ |
55,374 |
|
|
$ |
(1,709 |
) |
|
$ |
— |
|
|
$ |
53,665 |
|
EBITDA |
|
$ |
63,557 |
|
|
$ |
11,376 |
|
|
$ |
— |
|
|
$ |
74,933 |
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||
Sales and other revenues |
|
$ |
143,786 |
|
|
$ |
426,407 |
|
|
$ |
(105,915 |
) |
|
$ |
464,278 |
|
Cost of products sold |
|
$ |
110,351 |
|
|
$ |
314,421 |
|
|
$ |
(105,915 |
) |
|
$ |
318,857 |
|
Operating expenses |
|
$ |
26,760 |
|
|
$ |
32,849 |
|
|
$ |
— |
|
|
$ |
59,609 |
|
Selling, general and administrative expenses |
|
$ |
5,680 |
|
|
$ |
30,482 |
|
|
$ |
— |
|
|
$ |
36,162 |
|
Depreciation and amortization |
|
$ |
6,908 |
|
|
$ |
14,488 |
|
|
$ |
— |
|
|
$ |
21,396 |
|
|
|
$ |
— |
|
|
$ |
81,867 |
|
|
$ |
— |
|
|
$ |
81,867 |
|
Loss from operations |
|
$ |
(5,913 |
) |
|
$ |
(47,700 |
) |
|
$ |
— |
|
|
$ |
(53,613 |
) |
Loss before interest and income taxes |
|
$ |
(5,913 |
) |
|
$ |
(48,143 |
) |
|
$ |
— |
|
|
$ |
(54,056 |
) |
EBITDA |
|
$ |
995 |
|
|
$ |
(33,655 |
) |
|
$ |
— |
|
|
$ |
(32,660 |
) |
|
|
|
|
Rack
|
|
Eliminations (3) |
|
Total
|
|||||||
|
|
(In thousands) |
|||||||||||||
Year Ended |
|
|
|
|
|
|
|
|
|||||||
Sales and other revenues |
|
$ |
1,005,152 |
|
|
$ |
2,378,332 |
|
$ |
(822,872 |
) |
|
$ |
2,560,612 |
|
Cost of products sold |
|
$ |
646,107 |
|
|
$ |
1,992,567 |
|
$ |
(822,872 |
) |
|
$ |
1,815,802 |
|
Operating expenses |
|
$ |
120,750 |
|
|
$ |
131,706 |
|
$ |
— |
|
|
$ |
252,456 |
|
Selling, general and administrative expenses |
|
$ |
27,071 |
|
|
$ |
143,084 |
|
$ |
— |
|
|
$ |
170,155 |
|
Depreciation and amortization |
|
$ |
28,093 |
|
|
$ |
51,674 |
|
$ |
— |
|
|
$ |
79,767 |
|
Income from operations |
|
$ |
183,131 |
|
|
$ |
59,301 |
|
$ |
— |
|
|
$ |
242,432 |
|
Income before interest and income taxes |
|
$ |
269,149 |
|
|
$ |
60,054 |
|
$ |
— |
|
|
$ |
329,203 |
|
EBITDA |
|
$ |
297,242 |
|
|
$ |
111,728 |
|
$ |
— |
|
|
$ |
408,970 |
|
|
|
|
|
|
|
|
|
|
|||||||
Year Ended |
|
|
|
|
|
|
|
|
|||||||
Sales and other revenues |
|
$ |
505,424 |
|
|
$ |
1,667,809 |
|
$ |
(370,023 |
) |
|
$ |
1,803,210 |
|
Cost of products sold |
|
$ |
456,194 |
|
|
$ |
1,185,116 |
|
$ |
(370,023 |
) |
|
$ |
1,271,287 |
|
Operating expenses |
|
$ |
96,463 |
|
|
$ |
119,605 |
|
$ |
— |
|
|
$ |
216,068 |
|
Selling, general and administrative expenses |
|
$ |
22,276 |
|
|
$ |
135,540 |
|
$ |
— |
|
|
$ |
157,816 |
|
Depreciation and amortization |
|
$ |
29,071 |
|
|
$ |
51,585 |
|
$ |
— |
|
|
$ |
80,656 |
|
|
|
$ |
167,017 |
|
|
$ |
119,558 |
|
$ |
— |
|
|
$ |
286,575 |
|
Income (loss) from operations |
|
$ |
(265,597 |
) |
|
$ |
56,405 |
|
$ |
— |
|
|
$ |
(209,192 |
) |
Income (loss) before interest and income taxes |
|
$ |
(265,597 |
) |
|
$ |
55,694 |
|
$ |
— |
|
|
$ |
(209,903 |
) |
EBITDA |
|
$ |
(236,526 |
) |
|
$ |
107,279 |
|
$ |
— |
|
|
$ |
(129,247 |
) |
(1) |
|
|
(2) |
|
|
(3) |
Intra-segment sales of |
Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles
Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA excluding special items ("Adjusted EBITDA") to amounts reported under generally accepted accounting principles ("GAAP") in financial statements.
Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as net income (loss) attributable to
EBITDA and Adjusted EBITDA are not calculations provided for under accounting principles generally accepted in
Set forth below is our calculation of EBITDA and Adjusted EBITDA.
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(In thousands) |
||||||||||||||
Net income (loss) attributable to |
|
$ |
(39,530 |
) |
|
$ |
(117,747 |
) |
|
$ |
558,324 |
|
|
$ |
(601,448 |
) |
Add (subtract) income tax expense (benefit) |
|
|
(26,046 |
) |
|
|
(43,643 |
) |
|
|
123,898 |
|
|
|
(232,147 |
) |
Add interest expense |
|
|
30,955 |
|
|
|
40,604 |
|
|
|
125,175 |
|
|
|
126,527 |
|
Subtract interest income |
|
|
(941 |
) |
|
|
(1,043 |
) |
|
|
(4,019 |
) |
|
|
(7,633 |
) |
Add depreciation and amortization |
|
|
134,198 |
|
|
|
124,879 |
|
|
|
503,539 |
|
|
|
520,912 |
|
EBITDA |
|
$ |
98,636 |
|
|
$ |
3,050 |
|
|
$ |
1,306,917 |
|
|
$ |
(193,789 |
) |
Add (subtract) lower of cost or market inventory valuation adjustment |
|
|
8,739 |
|
|
|
(149,212 |
) |
|
|
(310,123 |
) |
|
|
78,499 |
|
Subtract gain on sale of real property |
|
|
— |
|
|
|
— |
|
|
|
(86,018 |
) |
|
|
— |
|
Add goodwill impairment |
|
|
— |
|
|
|
81,867 |
|
|
|
— |
|
|
|
81,867 |
|
Subtract |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(77,143 |
) |
Add long-lived asset impairment, inclusive of pro-rata share of impairment in HEP segment |
|
|
— |
|
|
|
26,518 |
|
|
|
— |
|
|
|
456,058 |
|
Subtract |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19,134 |
) |
Add |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,656 |
|
Add severance costs |
|
|
82 |
|
|
|
296 |
|
|
|
988 |
|
|
|
3,842 |
|
Add restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
7,813 |
|
|
|
3,679 |
|
Add Cheyenne Refinery LIFO inventory liquidation costs |
|
|
— |
|
|
|
3,129 |
|
|
|
923 |
|
|
|
36,943 |
|
Add decommissioning costs |
|
|
2,774 |
|
|
|
12,439 |
|
|
|
25,835 |
|
|
|
24,748 |
|
Add pre-close acquisition integration costs |
|
|
12,278 |
|
|
|
— |
|
|
|
17,313 |
|
|
|
— |
|
Add acquisition integration and regulatory costs |
|
|
3,517 |
|
|
|
15 |
|
|
|
3,517 |
|
|
|
1,994 |
|
Subtract gain on tariff settlement |
|
|
— |
|
|
|
— |
|
|
|
(51,500 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
126,026 |
|
|
$ |
(21,898 |
) |
|
$ |
915,665 |
|
|
$ |
412,220 |
|
EBITDA and Adjusted EBITDA attributable to our Refining segment is presented below:
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
Refining Segment |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(In thousands) |
||||||||||||||
Income (loss) before interest and income taxes (1) |
|
$ |
(63,479 |
) |
|
$ |
(66,117 |
) |
|
$ |
449,747 |
|
|
$ |
(664,425 |
) |
Add depreciation and amortization |
|
|
88,455 |
|
|
|
73,598 |
|
|
|
334,365 |
|
|
|
324,617 |
|
EBITDA |
|
$ |
24,976 |
|
|
$ |
7,481 |
|
|
$ |
784,112 |
|
|
$ |
(339,808 |
) |
Add (subtract) lower of cost or market inventory valuation adjustment |
|
|
— |
|
|
|
(145,497 |
) |
|
|
(318,353 |
) |
|
|
82,214 |
|
Add long-lived asset impairment |
|
|
— |
|
|
|
26,518 |
|
|
|
— |
|
|
|
241,760 |
|
Add severance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,546 |
|
Add restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,009 |
|
Add Cheyenne Refinery LIFO inventory liquidation costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,814 |
|
Add decommissioning costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,309 |
|
Adjusted EBITDA |
|
$ |
24,976 |
|
|
$ |
(111,498 |
) |
|
$ |
465,759 |
|
|
$ |
35,844 |
|
(1) |
Income (loss) before interest and income taxes of our Refining segment represents income (loss) plus (i) interest expense, net of interest income and (ii) income tax provision. |
EBITDA and Adjusted EBITDA attributable to our Lubricants and Specialty Products segment is set forth below.
Lubricants and Specialty Products Segment |
|
|
|
|
|
Total Lubricants
|
||||||
|
|
(In thousands) |
||||||||||
Three Months Ended |
|
|
|
|
|
|
||||||
Income (loss) before interest and income taxes (1) |
|
$ |
55,374 |
|
|
$ |
(1,709 |
) |
|
$ |
53,665 |
|
Add depreciation and amortization |
|
|
8,183 |
|
|
|
13,085 |
|
|
|
21,268 |
|
EBITDA |
|
$ |
63,557 |
|
|
$ |
11,376 |
|
|
$ |
74,933 |
|
|
|
|
|
|
|
|
||||||
Three Months Ended |
|
|
|
|
|
|
||||||
Loss before interest and income taxes (1) |
|
$ |
(5,913 |
) |
|
$ |
(48,143 |
) |
|
$ |
(54,056 |
) |
Add depreciation and amortization |
|
|
6,908 |
|
|
|
14,488 |
|
|
|
21,396 |
|
EBITDA |
|
$ |
995 |
|
|
$ |
(33,655 |
) |
|
$ |
(32,660 |
) |
Add goodwill impairment |
|
|
— |
|
|
|
81,867 |
|
|
|
81,867 |
|
Adjusted EBITDA |
|
$ |
995 |
|
|
$ |
48,212 |
|
|
$ |
49,207 |
|
|
|
|
|
|
|
|
||||||
Year Ended |
|
|
|
|
|
|
||||||
Income before interest and income taxes (1) |
|
$ |
269,149 |
|
|
$ |
60,054 |
|
|
$ |
329,203 |
|
Add depreciation and amortization |
|
|
28,093 |
|
|
|
51,674 |
|
|
|
79,767 |
|
EBITDA |
|
|
297,242 |
|
|
|
111,728 |
|
|
|
408,970 |
|
Subtract gain on sale of real property |
|
|
(86,018 |
) |
|
|
— |
|
|
|
(86,018 |
) |
Add restructuring charges |
|
$ |
1,079 |
|
|
$ |
6,734 |
|
|
$ |
7,813 |
|
Adjusted EBITDA |
|
$ |
212,303 |
|
|
$ |
118,462 |
|
|
$ |
330,765 |
|
|
|
|
|
|
|
|
||||||
Year Ended |
|
|
|
|
|
|
||||||
Income (loss) before interest and income taxes (1) |
|
$ |
(265,597 |
) |
|
$ |
55,694 |
|
|
$ |
(209,903 |
) |
Add depreciation and amortization |
|
|
29,071 |
|
|
|
51,585 |
|
|
|
80,656 |
|
EBITDA |
|
|
(236,526 |
) |
|
|
107,279 |
|
|
|
(129,247 |
) |
Add goodwill impairment |
|
|
167,017 |
|
|
|
119,558 |
|
|
|
286,575 |
|
Adjusted EBITDA |
|
$ |
(69,509 |
) |
|
$ |
226,837 |
|
|
$ |
157,328 |
|
(1) |
Income (loss) before interest and income taxes of our Lubricants and Specialty Products segment represents income (loss) plus (i) interest expense, net of interest income and (ii) income tax provision. |
Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP performance measures that are used by our management and others to compare our refining performance to that of other companies in our industry. We believe these margin measures are helpful to investors in evaluating our refining performance on a relative and absolute basis. Refinery gross margin per produced barrel sold is total refining segment revenues less total refining segment cost of products sold, exclusive of lower of cost or market inventory valuation adjustments, divided by sales volumes of produced refined products sold. Net operating margin per barrel sold is the difference between refinery gross margin and refinery operating expenses per produced barrel sold. These two margins do not include the non-cash effects of long-lived asset impairment charges, lower of cost or market inventory valuation adjustments or depreciation and amortization. Each of these component performance measures can be reconciled directly to our consolidated statements of income. Other companies in our industry may not calculate these performance measures in the same manner.
Below are reconciliations to our consolidated statements of income for refinery net operating and gross margin and operating expenses, in each case averaged per produced barrel sold. Due to rounding of reported numbers, some amounts may not calculate exactly.
Reconciliation of average refining segment net operating margin per produced barrel sold to refinery gross margin to total sales and other revenues
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(Dollars in thousands, except per barrel amounts) |
||||||||||||||
Consolidated |
|
|
|
|
|
|
|
|
||||||||
Net operating margin per produced barrel sold |
|
$ |
1.42 |
|
|
$ |
(2.05 |
) |
|
$ |
3.85 |
|
|
$ |
1.24 |
|
Add average refinery operating expenses per produced barrel sold |
|
|
7.28 |
|
|
|
6.07 |
|
|
|
7.04 |
|
|
|
6.05 |
|
Refinery gross margin per produced barrel sold |
|
$ |
8.70 |
|
|
$ |
4.02 |
|
|
$ |
10.89 |
|
|
$ |
7.29 |
|
|
|
|
474,230 |
|
|
|
417,990 |
|
|
|
424,100 |
|
|
|
391,670 |
|
|
|
|
92 |
|
|
|
92 |
|
|
|
365 |
|
|
|
366 |
|
Refining gross margin |
|
$ |
379,574 |
|
|
$ |
154,589 |
|
|
$ |
1,685,734 |
|
|
$ |
1,045,030 |
|
Add (subtract) rounding |
|
|
(181 |
) |
|
|
(33 |
) |
|
|
(238 |
) |
|
|
523 |
|
West and Mid-Continent regions gross margin |
|
|
379,393 |
|
|
|
154,556 |
|
|
|
1,685,496 |
|
|
|
1,045,553 |
|
Add West and Mid-Continent regions cost of products sold |
|
|
4,686,200 |
|
|
|
2,326,150 |
|
|
|
14,673,062 |
|
|
|
7,992,047 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
501,589 |
|
Refining segment sales and other revenues |
|
|
5,065,593 |
|
|
|
2,480,706 |
|
|
|
16,358,558 |
|
|
|
9,539,189 |
|
Add lubricants and specialty products segment sales and other revenues |
|
|
700,326 |
|
|
|
464,278 |
|
|
|
2,560,612 |
|
|
|
1,803,210 |
|
Add HEP segment sales and other revenues |
|
|
118,493 |
|
|
|
127,456 |
|
|
|
494,495 |
|
|
|
497,848 |
|
Subtract corporate, other and eliminations |
|
|
(261,745 |
) |
|
|
(171,672 |
) |
|
|
(1,024,523 |
) |
|
|
(656,604 |
) |
Sales and other revenues |
|
$ |
5,622,667 |
|
|
$ |
2,900,768 |
|
|
$ |
18,389,142 |
|
|
$ |
11,183,643 |
|
Reconciliation of average refining segment operating expenses per produced barrel sold to total operating expenses
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
|
|
(Dollars in thousands, except per barrel amounts) |
||||||||||||
Consolidated |
|
|
|
|
|
|
|
|
||||||
Average operating expenses per produced barrel sold |
|
$ |
7.28 |
|
|
$ |
6.07 |
|
$ |
7.04 |
|
$ |
6.05 |
|
|
|
|
474,230 |
|
|
|
417,990 |
|
|
424,100 |
|
|
391,670 |
|
|
|
|
92 |
|
|
|
92 |
|
|
365 |
|
|
366 |
|
Refining operating expenses |
|
$ |
317,620 |
|
|
$ |
233,422 |
|
$ |
1,089,767 |
|
$ |
867,275 |
|
Add (subtract) rounding |
|
|
211 |
|
|
|
11 |
|
|
657 |
|
|
(381 |
) |
West and Mid-Continent regions operating expenses |
|
|
317,831 |
|
|
|
233,433 |
|
|
1,090,424 |
|
|
866,894 |
|
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
121,151 |
|
Total refining segment operating expenses |
|
|
317,831 |
|
|
|
233,433 |
|
|
1,090,424 |
|
|
988,045 |
|
Add lubricants and specialty products segment operating expenses |
|
|
69,453 |
|
|
|
59,609 |
|
|
252,456 |
|
|
216,068 |
|
Add HEP segment operating expenses |
|
|
44,298 |
|
|
|
37,971 |
|
|
170,524 |
|
|
147,692 |
|
Add (subtract) corporate, other and eliminations |
|
|
(724 |
) |
|
|
5,064 |
|
|
4,074 |
|
|
(51,528 |
) |
Operating expenses (exclusive of depreciation and amortization) |
|
$ |
430,858 |
|
|
$ |
336,077 |
|
$ |
1,517,478 |
|
$ |
1,300,277 |
|
Reconciliation of net income (loss) attributable to
Adjusted net income (loss) attributable to
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(Dollars in thousands, except per share amounts) |
||||||||||||||
Consolidated |
|
|
|
|
|
|
|
|
||||||||
GAAP: |
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
|
$ |
(43,150 |
) |
|
$ |
(138,194 |
) |
|
$ |
787,152 |
|
|
$ |
(747,046 |
) |
Income tax expense (benefit) |
|
|
(26,046 |
) |
|
|
(43,643 |
) |
|
|
123,898 |
|
|
|
(232,147 |
) |
Net income (loss) |
|
|
(17,104 |
) |
|
|
(94,551 |
) |
|
|
663,254 |
|
|
|
(514,899 |
) |
Less net income attributable to noncontrolling interest |
|
|
22,426 |
|
|
|
23,196 |
|
|
|
104,930 |
|
|
|
86,549 |
|
Net income (loss) attributable to |
|
|
(39,530 |
) |
|
|
(117,747 |
) |
|
|
558,324 |
|
|
|
(601,448 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP adjustments to arrive at adjusted results: |
|
|
|
|
|
|
|
|
||||||||
Lower of cost or market inventory valuation adjustment |
|
|
8,739 |
|
|
|
(149,212 |
) |
|
|
(310,123 |
) |
|
|
78,499 |
|
Gain on sale of real property |
|
|
— |
|
|
|
— |
|
|
|
(86,018 |
) |
|
|
— |
|
Gain on business interruption insurance settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(81,000 |
) |
|
|
|
— |
|
|
|
108,385 |
|
|
|
— |
|
|
|
545,293 |
|
HEP's gain on sales-type lease |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(33,834 |
) |
HEP's loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,915 |
|
Severance costs |
|
|
82 |
|
|
|
296 |
|
|
|
988 |
|
|
|
3,842 |
|
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
7,813 |
|
|
|
3,679 |
|
Cheyenne Refinery LIFO inventory liquidation costs |
|
|
— |
|
|
|
3,129 |
|
|
|
923 |
|
|
|
36,943 |
|
Decommissioning costs |
|
|
2,774 |
|
|
|
12,439 |
|
|
|
25,835 |
|
|
|
24,748 |
|
Pre-close acquisition and regulatory costs |
|
|
12,278 |
|
|
|
— |
|
|
|
17,313 |
|
|
|
— |
|
Acquisition integration and regulatory costs |
|
|
3,517 |
|
|
|
15 |
|
|
|
3,517 |
|
|
|
1,994 |
|
Gain on tariff settlement |
|
|
— |
|
|
|
— |
|
|
|
(51,500 |
) |
|
|
— |
|
Total adjustments to income (loss) before income taxes |
|
|
27,390 |
|
|
|
(24,948 |
) |
|
|
(391,252 |
) |
|
|
606,079 |
|
Adjustment to income tax expense (benefit) (1) |
|
|
5,443 |
|
|
|
(24,077 |
) |
|
|
(83,049 |
) |
|
|
144,424 |
|
Adjustment to net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
70 |
|
Total adjustments, net of tax |
|
|
21,947 |
|
|
|
(871 |
) |
|
|
(308,203 |
) |
|
|
461,585 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted results - Non-GAAP: |
|
|
|
|
|
|
|
|
||||||||
Adjusted income (loss) before income taxes |
|
|
(15,760 |
) |
|
|
(163,142 |
) |
|
|
395,900 |
|
|
|
(140,967 |
) |
Adjusted income tax expense (benefit) (2) |
|
|
(20,603 |
) |
|
|
(67,720 |
) |
|
|
40,849 |
|
|
|
(87,723 |
) |
Adjusted net income (loss) |
|
|
4,843 |
|
|
|
(95,422 |
) |
|
|
355,051 |
|
|
|
(53,244 |
) |
Less net income attributable to noncontrolling interest |
|
|
22,426 |
|
|
|
23,196 |
|
|
|
104,930 |
|
|
|
86,619 |
|
Adjusted net income (loss) attributable to |
|
$ |
(17,583 |
) |
|
$ |
(118,618 |
) |
|
$ |
250,121 |
|
|
$ |
(139,863 |
) |
Adjusted earnings (loss) per share - diluted (3) |
|
$ |
(0.11 |
) |
|
$ |
(0.74 |
) |
|
$ |
1.52 |
|
|
$ |
(0.87 |
) |
(1) |
Represents adjustment to GAAP income tax expense to arrive at adjusted income tax expense, which is computed as follows: |
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(Dollars in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP income tax expense (benefit) (2) |
|
$ |
(20,603 |
) |
|
$ |
(67,720 |
) |
|
$ |
40,849 |
|
|
$ |
(87,723 |
) |
Subtract GAAP income tax expense (benefit) |
|
|
(26,046 |
) |
|
|
(43,643 |
) |
|
|
123,898 |
|
|
|
(232,147 |
) |
Non-GAAP adjustment to income tax expense |
|
$ |
5,443 |
|
|
$ |
(24,077 |
) |
|
$ |
(83,049 |
) |
|
$ |
144,424 |
|
(2) |
Non-GAAP income tax expense (benefit) is computed by a) adjusting HFC's consolidated estimated Annual Effective Tax Rate (“AETR”) for GAAP purposes for the effects of the above Non-GAAP adjustments, b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and c) adjusting for discrete tax items applicable to the period. |
|
(3) |
Adjusted earnings per share - diluted is calculated as adjusted net income (loss) attributable to |
Reconciliation of effective tax rate to adjusted effective tax rate
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(Dollars in thousands) |
||||||||||||||
GAAP: |
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
$ |
(43,150 |
) |
|
$ |
(138,194 |
) |
|
$ |
787,152 |
|
|
$ |
(747,046 |
) |
Income tax expense |
|
$ |
(26,046 |
) |
|
$ |
(43,643 |
) |
|
$ |
123,898 |
|
|
$ |
(232,147 |
) |
Effective tax rate for GAAP financial statements |
|
|
60.4 |
% |
|
|
31.6 |
% |
|
|
15.7 |
% |
|
|
31.1 |
% |
Adjusted - Non-GAAP: |
|
|
|
|
|
|
|
|
||||||||
Effect of Non-GAAP adjustments |
|
|
70.4 |
% |
|
|
9.9 |
% |
|
|
(5.4 |
) % |
|
|
31.1 |
% |
Effective tax rate for adjusted results |
|
|
130.8 |
% |
|
|
41.5 |
% |
|
|
10.3 |
% |
|
|
62.2 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220223005349/en/
Richard L. Voliva III, Executive Vice President and
Chief Financial Officer
Investor Relations
214-954-6510
Source:
FAQ
What were HollyFrontier's fourth quarter 2021 financial results?
How did HollyFrontier's EBITDA perform in 2021?
What impact did special items have on HollyFrontier's earnings in Q4 2021?