- Reported net income attributable to HollyFrontier stockholders
of $280.8 million, or $1.71 per diluted share, and adjusted net
income of $209.9 million, or $1.28 per diluted share, for the third
quarter
- Reported EBITDA of $482.6 million and Adjusted EBITDA of $407.8
million for the third quarter
HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the
“Company”) today reported third quarter net income attributable to
HollyFrontier stockholders of $280.8 million, or $1.71 per diluted
share, for the quarter ended September 30, 2021, compared to a net
loss of $(2.4) million, or $(0.01) per diluted share, for the
quarter ended September 30, 2020.
The third quarter results reflect special items that
collectively increased net income by a total of $70.8 million. On a
pre-tax basis, these items include a gain on sale of real property
of $86.0 million, partially offset by pre-close acquisition
integration costs of $4.3 million and charges related to the
Cheyenne Refinery conversion to renewable diesel production,
including decommissioning charges of $6.7 million and severance
charges totaling $0.2 million. Excluding these items, net income
for the current quarter was $209.9 million ($1.28 per diluted
share) compared to net loss of $(66.9) million ($(0.41) per diluted
share) for the third quarter of 2020, which excludes certain items
that collectively decreased net loss by $64.5 million.
HollyFrontier’s President & CEO, Michael Jennings,
commented, “HollyFrontier’s standout third quarter results were
driven by continued refined product margin strength in our regions,
healthy base oil prices and robust operational performance in the
quarter. On November 1, 2021, we closed on our previously announced
acquisition of the Puget Sound Refinery. We are excited to add this
high-quality refinery to our existing asset base along with the
geographical diversification and earnings potential it
provides.”
Refining segment income before interest and income taxes was
$217.4 million for the third quarter of 2021 compared to a loss
before interest and income taxes of $(118.5) million in the third
quarter of 2020. The segment reported EBITDA of $295.3 million for
the third quarter of 2021 compared to $(39.3) million for the third
quarter of 2020. This increase was driven by stronger product
demand, which resulted in a consolidated refinery gross margin of
$14.87 per produced barrel, a 140% increase compared to $6.20 for
the third quarter of 2020. Crude oil charge averaged 416,430
barrels per day (“BPD”) for the current quarter compared to 375,880
BPD for the third quarter of 2020.
Lubricants and Specialty Products segment income before interest
and income taxes was $148.5 million for the third quarter of 2021
compared to $43.1 million in the third quarter of 2020. The segment
reported EBITDA of $167.7 million for the third quarter of 2021
compared to $60.6 million in the third quarter of 2020. Excluding a
gain on sale of real property of $86.0 million, Adjusted EBITDA in
the third quarter of 2021 was $81.7 million. This increase was
driven by strong base oil margins in the third quarter of 2021.
Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $77.6
million for the third quarter of 2021 compared to $55.3 million in
the third quarter of 2020. Reported EBITDA for the third quarter of
2020 included a $35.7 million goodwill impairment charge, which was
eliminated on the Company's consolidation. HEP reported Adjusted
EBITDA of $83.3 million for the third quarter of 2021 compared to
$86.4 million for the third quarter of 2020.
For the third quarter of 2021, net cash provided by operations
totaled $249.4 million. At September 30, 2021, the Company's cash
and cash equivalents totaled $1,481.6 million, an $83.3 million
increase over cash and cash equivalents of $1,398.3 million at June
30, 2021. Additionally, the Company's consolidated debt was
$3,072.4 million. The Company’s debt, exclusive of HEP debt, which
is nonrecourse to HollyFrontier, was $1,739.0 million at September
30, 2021.
The company has scheduled a webcast conference call for today,
November 3, 2021, at 8:30 AM Eastern Time to discuss third quarter
financial results. This webcast may be accessed at
https://event.on24.com/wcc/r/3453047/731944E4F0294137EB72C182BC77BB87.
An audio archive of this webcast will be available using the above
noted link through November 17, 2021.
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 Holly Energy Partners,
L.P., a master limited partnership that provides petroleum product
and crude oil transportation, terminalling, storage and throughput
services to the petroleum industry, including HollyFrontier
Corporation subsidiaries.
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, the receipt of the
Company stockholder approval for the issuance of HF Sinclair common
stock at closing and 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 challenging the Sinclair
Transactions; the Company's ability to successfully integrate the
operation of the Puget Sound refinery with our existing operations;
the demand for and supply of crude oil and refined products,
including uncertainty regarding the effects of the continuing
COVID-19 pandemic on future demand; 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 conversion of
the Cheyenne Refinery to a renewable diesel facility and 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
could result in an impairment of goodwill and/or additional
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
September 30,
Change from 2020
2021
2020
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
4,685,059
$
2,819,400
$
1,865,659
66
%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
3,822,858
2,377,238
1,445,620
61
Lower of cost or market inventory
valuation adjustment
—
(62,849
)
62,849
(100
)
3,822,858
2,314,389
1,508,469
65
Operating expenses (exclusive of
depreciation and amortization)
352,520
332,496
20,024
6
Selling, general and administrative
expenses
91,056
74,453
16,603
22
Depreciation and amortization
121,220
125,280
(4,060
)
(3
)
Total operating costs and
expenses
4,387,654
2,846,618
1,541,036
54
Income (loss) from operations
297,405
(27,218
)
324,623
(1,193
)
Other income (expense):
Earnings of equity method investments
3,689
1,316
2,373
180
Interest income
1,018
1,011
7
1
Interest expense
(26,892
)
(30,589
)
3,697
(12
)
Gain on business interruption insurance
settlement
—
81,000
(81,000
)
(100
)
Gain (loss) on foreign currency
transactions
(3,492
)
1,030
(4,522
)
(439
)
Gain on sale of assets and other
85,779
1,368
84,411
6,170
60,102
55,136
4,966
9
Income before income taxes
357,507
27,918
329,589
1,181
Income tax expense
54,766
4,573
50,193
1,098
Net income
302,741
23,345
279,396
1,197
Less net income attributable to
noncontrolling interest
21,954
25,746
(3,792
)
(15
)
Net income (loss) attributable to
HollyFrontier stockholders
$
280,787
$
(2,401
)
$
283,188
(11,795
)%
Earnings (loss) per share attributable
to HollyFrontier stockholders:
Basic
$
1.71
$
(0.01
)
$
1.72
(17,200
)%
Diluted
$
1.71
$
(0.01
)
$
1.72
(17,200
)%
Cash dividends declared per common
share
$
—
$
0.35
$
(0.35
)
(100
)%
Average number of common shares
outstanding:
Basic
162,551
162,015
536
—
%
Diluted
162,551
162,015
536
—
%
EBITDA
$
482,647
$
157,030
$
325,617
207
%
Adjusted EBITDA
$
407,830
$
65,638
$
342,192
521
%
Nine Months Ended
September 30,
Change from 2020
2021
2020
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
12,766,475
$
8,282,875
$
4,483,600
54
%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
10,608,892
6,647,960
3,960,932
60
Lower of cost or market inventory
valuation adjustment
(318,862
)
227,711
(546,573
)
(240
)
10,290,030
6,875,671
3,414,359
50
Operating expenses (exclusive of
depreciation and amortization)
1,086,620
964,200
122,420
13
Selling, general and administrative
expenses
250,785
237,559
13,226
6
Depreciation and amortization
369,341
396,033
(26,692
)
(7
)
Long-lived asset impairment
—
436,908
(436,908
)
(100
)
Total operating costs and
expenses
11,996,776
8,910,371
3,086,405
35
Income (loss) from operations
769,699
(627,496
)
1,397,195
(223
)
Other income (expense):
Earnings of equity method investments
8,875
5,186
3,689
71
Interest income
3,078
6,590
(3,512
)
(53
)
Interest expense
(94,220
)
(85,923
)
(8,297
)
10
Gain on business interruption insurance
settlement
—
81,000
(81,000
)
(100
)
Gain on tariff settlement
51,500
—
51,500
—
Gain on sales-type leases
—
33,834
(33,834
)
(100
)
Loss on early extinguishment of debt
—
(25,915
)
25,915
(100
)
Loss on foreign currency transactions
(4,226
)
(918
)
(3,308
)
360
Gain on sale of assets and other
95,596
4,790
90,806
1,896
60,603
18,644
41,959
225
Income (loss) before income
taxes
830,302
(608,852
)
1,439,154
(236
)
Income tax expense (benefit)
149,944
(188,504
)
338,448
(180
)
Net income (loss)
680,358
(420,348
)
1,100,706
(262
)
Less net income attributable to
noncontrolling interest
82,504
63,353
19,151
30
Net income (loss) attributable to
HollyFrontier stockholders
$
597,854
$
(483,701
)
$
1,081,555
(224
)%
Earnings (loss) per share attributable
to HollyFrontier stockholders:
Basic
$
3.63
$
(2.99
)
$
6.62
(221
)%
Diluted
$
3.63
$
(2.99
)
$
6.62
(221
)%
Cash dividends declared per common
share
$
0.35
$
1.05
$
(0.70
)
(67
)%
Average number of common shares
outstanding:
Basic
162,518
161,927
591
—
%
Diluted
162,518
161,927
591
—
%
EBITDA
$
1,208,281
$
(196,839
)
$
1,405,120
(714
)%
Adjusted EBITDA
$
789,639
$
434,118
$
355,521
82
%
Balance Sheet Data
September 30,
December 31,
2021
2020
(In thousands)
Cash and cash equivalents
$
1,481,562
$
1,368,318
Working capital
$
2,310,815
$
1,935,605
Total assets
$
12,897,181
$
11,506,864
Long-term debt
$
3,072,352
$
3,142,718
Total equity
$
6,329,539
$
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 includes the operations of our El Dorado,
Tulsa, Navajo, Woods Cross Refineries and HollyFrontier Asphalt
Company LLC (“HFC Asphalt”) (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
Mountain 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 the
Cheyenne Refinery through the third quarter of 2020, at which time
it permanently ceased petroleum refining operations.
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 involves all of the operations of HEP, a
consolidated variable interest entity, which owns and operates
logistics 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% 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 and Specialty
Products
HEP
Corporate, Other and
Eliminations
Consolidated Total
(In thousands)
Three Months Ended September 30,
2021
Sales and other revenues:
Revenues from external customers
$
3,993,570
$
666,033
$
25,459
$
(3
)
$
4,685,059
Intersegment revenues
189,441
501
97,125
(287,067
)
—
$
4,183,011
$
666,534
$
122,584
$
(287,070
)
$
4,685,059
Cost of products sold (exclusive of lower
of cost or market inventory)
$
3,605,600
$
482,533
$
—
$
(265,275
)
$
3,822,858
Operating expenses
$
248,316
$
60,940
$
42,793
$
471
$
352,520
Selling, general and administrative
expenses
$
32,345
$
41,476
$
3,849
$
13,386
$
91,056
Depreciation and amortization
$
77,890
$
19,226
$
21,627
$
2,477
$
121,220
Income (loss) from operations
$
218,860
$
62,359
$
54,315
$
(38,129
)
$
297,405
Income (loss) before interest and income
taxes
$
217,438
$
148,460
$
58,081
$
(40,598
)
$
383,381
Net income attributable to noncontrolling
interest
$
—
$
—
$
1,188
$
20,766
$
21,954
Earnings of equity method investments
$
—
$
—
$
3,689
$
—
$
3,689
Capital expenditures
$
40,814
$
7,833
$
19,217
$
147,640
$
215,504
Three Months Ended September 30,
2020
Sales and other revenues:
Revenues from external customers
$
2,339,782
$
452,878
$
26,740
$
—
$
2,819,400
Intersegment revenues
56,331
2,164
100,991
(159,486
)
—
$
2,396,113
$
455,042
$
127,731
$
(159,486
)
$
2,819,400
Cost of products sold (exclusive of lower
of cost or market inventory)
$
2,211,342
$
302,703
$
—
$
(136,807
)
$
2,377,238
Lower of cost or market inventory
valuation adjustment
$
(62,849
)
$
—
$
—
$
—
$
(62,849
)
Operating expenses
$
256,079
$
54,488
$
40,003
$
(18,074
)
$
332,496
Selling, general and administrative
expenses
$
30,866
$
36,773
$
2,332
$
4,482
$
74,453
Depreciation and amortization
$
79,146
$
17,432
$
24,109
$
4,593
$
125,280
Income (loss) from operations
$
(118,471
)
$
43,646
$
61,287
$
(13,680
)
$
(27,218
)
Income (loss) before interest and income
taxes
$
(118,471
)
$
43,120
$
70,067
$
62,780
$
57,496
Net income attributable to noncontrolling
interest
$
—
$
—
$
2,293
$
23,453
$
25,746
Earnings of equity method investments
$
—
$
—
$
1,316
$
—
$
1,316
Capital expenditures
$
41,740
$
6,995
$
7,902
$
26,635
$
83,272
Refining
Lubricants and Specialty
Products
HEP
Corporate, Other and
Eliminations
Consolidated
Total
(In thousands)
Nine Months Ended September 30,
2021
Sales and other revenues:
Revenues from external customers
$
10,837,876
$
1,850,786
$
77,809
$
4
$
12,766,475
Intersegment revenues
455,089
9,500
298,193
(762,782
)
—
$
11,292,965
$
1,860,286
$
376,002
$
(762,778
)
$
12,766,475
Cost of products sold (exclusive of lower
of cost or market inventory)
$
9,986,862
$
1,305,274
$
—
$
(683,244
)
$
10,608,892
Lower of cost or market inventory
valuation adjustment
$
(318,353
)
$
—
$
—
$
(509
)
$
(318,862
)
Operating expenses
$
772,593
$
183,003
$
126,226
$
4,798
$
1,086,620
Selling, general and administrative
expenses
$
90,977
$
124,612
$
9,664
$
25,532
$
250,785
Depreciation and amortization
$
245,910
$
58,499
$
66,908
$
(1,976
)
$
369,341
Income (loss) from operations
$
514,976
$
188,898
$
173,204
$
(107,379
)
$
769,699
Income (loss) before interest and income
taxes
$
513,226
$
275,538
$
212,750
$
(80,070
)
$
921,444
Net income attributable to noncontrolling
interest
$
—
$
—
$
4,027
$
78,477
$
82,504
Earnings of equity method investments
$
—
$
—
$
8,875
$
—
$
8,875
Capital expenditures
$
114,325
$
17,534
$
76,933
$
339,553
$
548,345
Nine Months Ended September 30,
2020
Sales and other revenues:
Revenues from external customers
$
6,880,444
$
1,330,021
$
72,410
$
—
$
8,282,875
Intersegment revenues
$
178,039
$
8,911
$
297,982
$
(484,932
)
$
—
$
7,058,483
$
1,338,932
$
370,392
$
(484,932
)
$
8,282,875
Cost of products sold (exclusive of lower
of cost or market inventory)
$
6,113,530
$
952,430
$
—
$
(418,000
)
$
6,647,960
Lower of cost or market inventory
valuation adjustment
$
227,711
$
—
$
—
$
—
$
227,711
Operating expenses
$
754,612
$
156,459
$
109,721
$
(56,592
)
$
964,200
Selling, general and administrative
expenses
$
94,677
$
121,654
$
7,569
$
13,659
$
237,559
Depreciation and amortization
$
251,019
$
59,260
$
72,095
$
13,659
$
396,033
Long-lived asset impairment
$
215,242
$
204,708
$
16,958
$
—
$
436,908
Income (loss) from operations
$
(598,308
)
$
(155,579
)
$
164,049
$
(37,658
)
$
(627,496
)
Income (loss) before interest and income
taxes
$
(598,308
)
$
(155,847
)
$
185,593
$
39,043
$
(529,519
)
Net income attributable to noncontrolling
interest
$
—
$
—
$
4,158
$
59,195
$
63,353
Earnings of equity method investments
$
—
$
—
$
5,186
$
—
$
5,186
Capital expenditures
$
106,856
$
20,387
$
38,642
$
47,123
$
213,008
Refining
Lubricants and Specialty
Products
HEP
Corporate, Other and
Eliminations
Consolidated Total
(In thousands)
September 30, 2021
Cash and cash equivalents
$
18,056
$
218,970
$
12,816
$
1,231,720
$
1,481,562
Total assets
$
7,266,496
$
2,119,076
$
2,236,091
$
1,275,518
$
12,897,181
Long-term debt
$
—
$
—
$
1,333,309
$
1,739,043
$
3,072,352
December 31, 2020
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
The following tables set forth information, including non-GAAP
(Generally Accepted Accounting Principles) performance measures
about our refinery operations. Refinery gross and net operating
margins do not include the non-cash effects of long-lived asset
impairment charges, lower of cost or market inventory valuation
adjustments and depreciation and amortization. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
As of September 30, 2021, our refinery operations included the
El Dorado, Tulsa, Navajo and Woods Cross Refineries. In the third
quarter of 2020, we permanently ceased petroleum refining
operations at our Cheyenne Refinery and subsequently began
converting certain assets at our Cheyenne Refinery to renewable
diesel production. The disaggregation of our refining geographic
operating data is presented in two regions, Mid-Continent and West,
to best reflect the economic drivers of our refining operations.
The Mid-Continent region continues to be comprised of the El Dorado
and Tulsa Refineries, and the new West region is comprised of the
Navajo and Woods Cross Refineries. Refining segment operating data
for the three and the nine months ended September 30, 2020 has been
retrospectively adjusted to reflect the revised regional
groupings.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Mid-Continent Region (El Dorado and
Tulsa Refineries)
Crude charge (BPD) (1)
280,220
244,200
258,530
234,550
Refinery throughput (BPD) (2)
294,970
257,280
272,770
249,430
Sales of produced refined products (BPD)
(3)
277,310
243,830
258,800
239,800
Refinery utilization (4)
107.8
%
93.9
%
99.4
%
90.2
%
Average per produced barrel (5)
Refinery gross margin
$
13.59
$
3.21
$
10.65
$
6.41
Refinery operating expenses (6)
5.72
5.47
6.68
5.47
Net operating margin
$
7.87
$
(2.26
)
$
3.97
$
0.94
Refinery operating expenses per throughput
barrel (7)
$
5.37
$
5.19
$
6.33
$
5.26
Feedstocks:
Sweet crude oil
66
%
62
%
63
%
58
%
Sour crude oil
13
%
18
%
14
%
19
%
Heavy sour crude oil
16
%
15
%
18
%
17
%
Other feedstocks and blends
5
%
5
%
5
%
6
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
52
%
53
%
51
%
52
%
Diesel fuels
32
%
35
%
33
%
34
%
Jet fuels
5
%
3
%
5
%
4
%
Fuel oil
1
%
1
%
1
%
1
%
Asphalt
4
%
2
%
3
%
3
%
Base oils
4
%
4
%
4
%
4
%
LPG and other
2
%
2
%
3
%
2
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
West Region (Navajo and Woods Cross
Refineries)
Crude charge (BPD) (1)
136,210
131,680
135,370
125,710
Refinery throughput (BPD) (2)
149,760
146,860
148,700
139,710
Sales of produced refined products (BPD)
(3)
144,710
144,970
148,410
142,740
Refinery utilization (4)
93.9
%
90.8
%
93.4
%
86.7
%
Average per produced barrel (5)
Refinery gross margin
$
17.33
$
11.24
$
13.67
$
12.01
Refinery operating expenses (6)
7.70
6.88
7.43
7.01
Net operating margin
$
9.63
$
4.36
$
6.24
$
5.00
Refinery operating expenses per throughput
barrel (7)
$
7.44
$
6.79
$
7.41
$
7.16
Feedstocks:
Sweet crude oil
22
%
30
%
22
%
30
%
Sour crude oil
58
%
48
%
59
%
49
%
Black wax crude oil
11
%
12
%
10
%
11
%
Other feedstocks and blends
9
%
10
%
9
%
10
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
51
%
57
%
52
%
56
%
Diesel fuels
39
%
34
%
38
%
35
%
Fuel oil
3
%
2
%
3
%
2
%
Asphalt
5
%
6
%
4
%
5
%
LPG and other
2
%
1
%
3
%
2
%
Total
100
%
100
%
100
%
100
%
Consolidated
Crude charge (BPD) (1)
416,430
375,880
393,900
360,260
Refinery throughput (BPD) (2)
444,730
404,140
421,470
389,140
Sales of produced refined products (BPD)
(3)
422,020
388,800
407,210
382,540
Refinery utilization (4)
102.8
%
92.8
%
97.3
%
89.0
%
Average per produced barrel (5)
Refinery gross margin
$
14.87
$
6.20
$
11.75
$
8.50
Refinery operating expenses (6)
6.40
6.00
6.95
6.04
Net operating margin
$
8.47
$
0.20
$
4.80
$
2.46
Refinery operating expenses per throughput
barrel (7)
$
6.07
$
5.77
$
6.71
$
5.94
Feedstocks:
Sweet crude oil
51
%
51
%
49
%
48
%
Sour crude oil
28
%
28
%
29
%
30
%
Heavy sour crude oil
11
%
10
%
12
%
11
%
Black wax crude oil
4
%
4
%
4
%
4
%
Other feedstocks and blends
6
%
7
%
6
%
7
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Consolidated
Sales of produced refined products:
Gasolines
51
%
54
%
52
%
54
%
Diesel fuels
35
%
35
%
35
%
34
%
Jet fuels
3
%
2
%
3
%
2
%
Fuel oil
2
%
1
%
1
%
1
%
Asphalt
4
%
4
%
4
%
4
%
Base oils
3
%
2
%
2
%
3
%
LPG and other
2
%
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”). Our consolidated crude capacity is 405,000
BPSD.
(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 refining segment
operating expenses, exclusive of depreciation and amortization and
Cheyenne Refinery operating expenses, divided by sales volumes of
refined products produced at our refineries.
(7)
Represents total refining segment
operating expenses, exclusive of depreciation and amortization and
Cheyenne Refinery operating expenses, divided by refinery
throughput.
Lubricants and Specialty Products Segment Operating
Data
The following table sets forth information about our lubricants
and specialty products operations.
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Lubricants and Specialty
Products
Throughput (BPD)
18,260
19,020
29,140
19,050
Sales of produced products (BPD)
31,700
33,560
33,640
32,460
Sales of produced products:
Finished products
53
%
50
%
52
%
51
%
Base oils
28
%
27
%
28
%
24
%
Other
19
%
23
%
20
%
25
%
Total
100
%
100
%
100
%
100
%
Supplemental financial data attributable to our Lubricants and
Specialty Products segment is presented below:
Rack Back (1)
Rack Forward (2)
Eliminations (3)
Total Lubricants and Specialty
Products
(In thousands)
Three months ended September 30,
2021
Sales and other revenues
$
270,207
$
634,654
$
(238,327
)
$
666,534
Cost of products sold
$
148,171
$
572,689
$
(238,327
)
$
482,533
Operating expenses
$
29,046
$
31,894
$
—
$
60,940
Selling, general and administrative
expenses
$
7,058
$
34,418
$
—
$
41,476
Depreciation and amortization
$
6,375
$
12,851
$
—
$
19,226
Income (loss) from operations
$
79,557
$
(17,198
)
$
—
$
62,359
Income (loss) before interest and income
taxes
$
165,575
$
(17,115
)
$
—
$
148,460
EBITDA
$
171,950
$
(4,264
)
$
—
$
167,686
Three months ended September 30,
2020
Sales and other revenues
$
110,952
$
423,418
$
(79,328
)
$
455,042
Cost of products sold
$
98,033
$
283,998
$
(79,328
)
$
302,703
Operating expenses
$
25,400
$
29,088
$
—
$
54,488
Selling, general and administrative
expenses
$
5,616
$
31,157
$
—
$
36,773
Depreciation and amortization
$
5,419
$
12,013
$
—
$
17,432
Income (loss) from operations
$
(23,516
)
$
67,162
$
—
$
43,646
Income (loss) before interest and income
taxes
$
(23,516
)
$
66,636
$
—
$
43,120
EBITDA
$
(18,097
)
$
78,649
$
—
$
60,552
Nine months ended September 30,
2021
Sales and other revenues
$
698,134
$
1,747,111
$
(584,959)
$
1,860,286
Cost of products sold
$
443,983
$
1,446,250
$
(584,959)
$
1,305,274
Operating expenses
$
86,773
$
96,230
$
—
$
183,003
Selling, general and administrative
expenses
$
19,711
$
104,901
$
—
$
124,612
Depreciation and amortization
$
19,910
$
38,589
$
—
$
58,499
Income from operations
$
127,757
$
61,141
$
—
$
188,898
Income before interest and income
taxes
$
213,775
$
61,763
$
—
$
275,538
EBITDA
$
233,685
$
100,352
$
—
$
334,037
Nine months ended September 30,
2020
Sales and other revenues
$
361,638
$
1,241,402
$
(264,108)
$
1,338,932
Cost of products sold
$
345,843
$
870,695
$
(264,108)
$
952,430
Operating expenses
$
69,703
$
86,756
$
—
$
156,459
Selling, general and administrative
expenses
$
16,596
$
105,058
$
—
$
121,654
Depreciation and amortization
$
22,163
$
37,097
$
—
$
59,260
Long-lived asset impairment
$
167,017
$
37,691
$
—
$
204,708
Income (loss) from operations
$
(259,684)
$
104,105
$
—
$
(155,579)
Income (loss) before interest and income
taxes
$
(259,684)
$
103,837
$
—
$
(155,847)
EBITDA
$
(237,521)
$
140,934
$
—
$
(96,587)
(1)
Rack Back consists of the PCLI base oil
production activities, by-product sales to third parties and
intra-segment base oil sales to Rack Forward.
(2)
Rack Forward activities include the
purchase of base oils from Rack Back and the blending, packaging,
marketing and distribution and sales of finished lubricants and
specialty products to third parties.
(3)
Intra-segment sales of Rack Back produced
base oils to Rack Forward are eliminated under the “Eliminations”
column.
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 HollyFrontier stockholders plus (i) interest
expense, net of interest income, (ii) income tax provision and
(iii) depreciation and amortization. Adjusted EBITDA is calculated
as EBITDA plus or minus (i) lower of cost or market inventory
valuation adjustments, (ii) gain on sale of real property, (iii)
HollyFrontier's pro-rata share of gain on business interruption
insurance settlement, (iv) long-lived asset impairment, inclusive
of HollyFrontier's pro-rata share of impairment in HEP segment, (v)
HollyFrontier's pro-rata share of HEP's gain on sales-type leases,
(vi) HollyFrontier's pro-rata share of HEP's loss on early
extinguishment of debt, (vii) severance costs, (viii) restructuring
charges, (ix) Cheyenne Refinery LIFO inventory liquidation costs,
(x) decommissioning costs, (xi) pre-close acquisition integration
costs, (xii) acquisition integration and regulatory costs and
(xiii) gain on tariff settlement.
EBITDA and Adjusted EBITDA are not calculations provided for
under accounting principles generally accepted in the United
States; however, the amounts included in these calculations are
derived from amounts included in our consolidated financial
statements. EBITDA and Adjusted EBITDA should not be considered as
alternatives to net income or operating income as an indication of
our operating performance or as an alternative to operating cash
flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not
necessarily comparable to similarly titled measures of other
companies. These are presented here because they are widely used
financial indicators used by investors and analysts to measure
performance. EBITDA and Adjusted EBITDA are also used by our
management for internal analysis and as a basis for financial
covenants.
Set forth below is our calculation of EBITDA and Adjusted
EBITDA.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
(In thousands)
Net income (loss) attributable to
HollyFrontier stockholders
$
280,787
$
(2,401
)
$
597,854
$
(483,701
)
Add interest expense
26,892
30,589
94,220
85,923
Subtract interest income
(1,018
)
(1,011
)
(3,078
)
(6,590
)
Add (subtract) income tax expense
(benefit)
54,766
4,573
149,944
(188,504
)
Add depreciation and amortization
121,220
125,280
369,341
396,033
EBITDA
$
482,647
$
157,030
$
1,208,281
$
(196,839
)
Add (subtract) lower of cost or market
inventory valuation adjustment
—
(62,849
)
(318,862
)
227,711
Subtract gain on sale of real property
(86,018
)
—
(86,018
)
—
Subtract HollyFrontier's pro-rata share of
gain on business interruption insurance settlement
—
(77,143
)
—
(77,143
)
Add long-lived asset impairment, inclusive
of pro-rata share of impairment in HEP segment
—
—
—
429,540
Subtract HollyFrontier's pro-rata share of
HEP's gain on sales-type leases
—
—
—
(19,134
)
Add HollyFrontier's pro-rata share of
HEP's loss on early extinguishment of debt
—
—
—
14,656
Add severance costs
198
2,429
906
3,546
Add restructuring charges
—
—
7,813
3,679
Add Cheyenne Refinery LIFO inventory
liquidation costs
—
33,814
923
33,814
Add decommissioning costs
6,714
12,309
23,061
12,309
Add pre-close acquisition integration
costs
4,289
—
5,035
—
Add acquisition integration and regulatory
costs
—
48
—
1,979
Subtract gain on tariff settlement
—
—
(51,500
)
—
Adjusted EBITDA
$
407,830
$
65,638
$
789,639
$
434,118
EBITDA and Adjusted EBITDA attributable to our Refining segment
is presented below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
Refining Segment
2021
2020
2021
2020
(In thousands)
Income (loss) from before interest and
income taxes (1)
$
217,438
$
(118,471
)
$
513,226
$
(598,308
)
Add depreciation and amortization
77,890
79,146
245,910
251,019
EBITDA
295,328
(39,325
)
759,136
(347,289
)
Add (subtract) lower of cost or market
inventory valuation adjustment
—
(62,849
)
(318,353
)
227,711
Add long-lived asset impairment
—
—
—
215,242
Add severance costs
—
2,429
—
3,546
Add restructuring charges
—
—
—
2,009
Add Cheyenne Refinery LIFO inventory
liquidation costs
—
33,814
—
33,814
Add decommissioning costs
—
12,309
—
12,309
Adjusted EBITDA
$
295,328
$
(53,622
)
$
440,783
$
147,342
(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
Rack Back
Rack Forward
Total Lubricants and Specialty
Products
(In thousands)
Three months ended September 30,
2021
Income before interest and income taxes
(1)
$
165,575
$
(17,115
)
$
148,460
Add depreciation and amortization
6,375
12,851
19,226
EBITDA
171,950
(4,264
)
167,686
Subtract gain on sale of real property
(86,018
)
—
(86,018
)
Adjusted EBITDA
$
85,932
$
(4,264
)
$
81,668
Three months ended September 30,
2020
Income (loss) before interest and income
taxes (1)
$
(23,516
)
$
66,636
$
43,120
Add depreciation and amortization
5,419
12,013
17,432
EBITDA
(18,097
)
78,649
60,552
Lubricants and Specialty Products
Segment
Rack Back
Rack Forward
Total Lubricants and Specialty
Products
(In thousands)
Nine months ended September 30,
2021
Income before interest and income taxes
(1)
$
213,775
$
61,763
$
275,538
Add depreciation and amortization
19,910
38,589
58,499
EBITDA
233,685
100,352
334,037
Subtract gain on sale of real property
(86,018
)
—
(86,018
)
Add restructuring charges
1,079
6,734
7,813
Adjusted EBITDA
$
148,746
$
107,086
$
255,832
Nine months ended September 30,
2020
Income (loss) before interest and income
taxes (1)
$
(259,684
)
$
103,837
$
(155,847
)
Add depreciation and amortization
22,163
37,097
59,260
EBITDA
(237,521
)
140,934
(96,587
)
Add long-lived asset impairment
167,017
37,691
204,708
Adjusted EBITDA
$
(70,504
)
$
178,625
$
108,121
(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 lower of cost or market inventory valuation
adjustments, depreciation and amortization or long-lived asset
impairments. 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
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
(Dollars in thousands, except per
barrel amounts)
Consolidated
Net operating margin per produced barrel
sold
$
8.47
$
0.20
$
4.80
$
2.46
Add average refinery operating expenses
per produced barrel sold
6.40
6.00
6.95
6.04
Refinery gross margin per produced barrel
sold
$
14.87
$
6.20
$
11.75
$
8.50
Times produced barrels sold (BPD)
422,020
388,800
407,210
382,540
Times number of days in period
92
92
273
274
Refining gross margin
$
577,340
$
221,772
$
1,306,228
$
890,936
Add (subtract) rounding
71
164
(125
)
61
West and Mid-Continent regions gross
margin
577,411
221,936
1,306,103
890,997
Add West and Mid-Continent regions cost of
products sold
3,605,600
2,043,361
9,986,862
5,665,897
Add Cheyenne refinery sales and other
revenues
—
130,816
—
501,589
Refining segment sales and other
revenues
4,183,011
2,396,113
11,292,965
7,058,483
Add Lubricants and Specialty Products
segment sales and other revenues
666,534
455,042
1,860,286
1,338,932
Add HEP segment sales and other
revenues
122,584
127,731
376,002
370,392
Subtract corporate, other and
eliminations
(287,070
)
(159,486
)
(762,778
)
(484,932
)
Sales and other revenues
$
4,685,059
$
2,819,400
$
12,766,475
$
8,282,875
Reconciliation of average refining segment
operating expenses per produced barrel sold to total operating
expenses
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Dollars in thousands, except per
barrel amounts)
Consolidated
Average operating expenses per produced
barrel sold
$
6.40
$
6.00
$
6.95
$
6.04
Times produced barrels sold (BPD)
422,020
388,800
407,210
382,540
Times number of days in period
92
92
273
274
Refining operating expenses
$
248,485
$
214,618
$
772,620
$
633,088
Add (subtract) rounding
(169
)
(97
)
(27
)
373
West and Mid-Continent regions operating
expenses
248,316
214,521
772,593
633,461
Add Cheyenne Refinery operating
expenses
—
41,558
—
121,151
Refining segment operating expenses
248,316
256,079
772,593
754,612
Add Lubricants and Specialty Products
segment operating expenses
60,940
54,488
183,003
156,459
Add HEP segment operating expenses
42,793
40,003
126,226
109,721
Subtract corporate, other and
eliminations
471
(18,074
)
4,798
(56,592
)
Operating expenses (exclusive of
depreciation and amortization)
$
352,520
$
332,496
$
1,086,620
$
964,200
Reconciliation of net income (loss)
attributable to HollyFrontier stockholders to adjusted net income
(loss) attributable to HollyFrontier stockholders
Adjusted net income (loss) attributable to HollyFrontier
stockholders is a non-GAAP financial measure that excludes non-cash
lower of cost or market inventory valuation adjustments, gain on
sale of real property, gain on business interruption insurance
settlement, long-lived asset impairment, HEP's gain on sales-type
leases, HEP's loss on early extinguishment of debt, severance
costs, restructuring charges, Cheyenne Refinery LIFO inventory
liquidation costs, decommissioning costs, pre-close acquisition
integration costs, acquisition integration and regulatory costs and
gain on tariff settlement. We believe this measure is helpful to
investors and others in evaluating our financial performance and to
compare our results to that of other companies in our industry.
Similarly titled performance measures of other companies may not be
calculated in the same manner.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
(In thousands, except per share
amounts)
Consolidated
GAAP:
Income (loss) before income taxes
$
357,507
$
27,918
$
830,302
$
(608,852
)
Income tax expense (benefit)
54,766
4,573
149,944
(188,504
)
Net income (loss)
302,741
23,345
680,358
(420,348
)
Less net income attributable to
noncontrolling interest
21,954
25,746
82,504
63,353
Net income (loss) attributable to
HollyFrontier stockholders
280,787
(2,401
)
597,854
(483,701
)
Non-GAAP adjustments to arrive at
adjusted results:
Lower of cost or market inventory
valuation adjustment
—
(62,849
)
(318,862
)
227,711
Gain on sale of real property
(86,018
)
—
(86,018
)
—
Gain on business interruption insurance
settlement
—
(81,000
)
—
(81,000
)
Long-lived asset impairment
—
—
—
436,908
HEP's gain on sales-type leases
—
—
—
(33,834
)
HEP's loss on early extinguishment of
debt
—
—
—
25,915
Severance costs
198
2,429
906
3,546
Restructuring charges
—
—
7,813
3,679
Cheyenne Refinery LIFO inventory
liquidation costs
—
33,814
923
33,814
Decommissioning costs
6,714
12,309
23,061
12,309
Pre-close acquisition integration
costs
4,289
—
5,035
—
Acquisition integration and regulatory
costs
—
48
—
1,979
Gain on tariff settlement
—
—
(51,500
)
—
Total adjustments to income (loss) before
income taxes
(74,817
)
(95,249
)
(418,642
)
631,027
Adjustment to income tax expense (benefit)
(1)
(3,979
)
(26,907
)
(88,493
)
168,497
Adjustment to net income attributable to
noncontrolling interest
—
(3,857
)
—
70
Total adjustments, net of tax
(70,838
)
(64,485
)
(330,149
)
462,460
Adjusted results - Non-GAAP:
Adjusted income (loss) before income
taxes
282,690
(67,331
)
411,660
22,175
Adjusted income tax expense (benefit)
(2)
50,787
(22,334
)
61,451
(20,007
)
Adjusted net income (loss)
231,903
(44,997
)
350,209
42,182
Less net income attributable to
noncontrolling interest
21,954
21,889
82,504
63,423
Adjusted net income (loss) attributable to
HollyFrontier stockholders
$
209,949
$
(66,886
)
$
267,705
$
(21,241
)
Adjusted earnings (loss) per share -
diluted (3)
$
1.28
$
(0.41
)
$
1.63
$
(0.13
)
(1)
Represents adjustment to GAAP income tax
benefit to arrive at adjusted income tax expense (benefit), which
is computed as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
(In thousands)
Non-GAAP income tax expense (benefit)
(2)
$
50,787
$
(22,334
)
$
61,451
$
(20,007
)
Add (subtract) GAAP income tax expense
(benefit)
54,766
4,573
149,944
(188,504
)
Non-GAAP adjustment to income tax expense
(benefit)
$
(3,979
)
$
(26,907
)
$
(88,493
)
$
168,497
(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
HollyFrontier stockholders divided by the average number of shares
of common stock outstanding assuming dilution, which is based on
weighted-average diluted shares outstanding as that used in the
GAAP diluted earnings per share calculation. Income allocated to
participating securities, if applicable, in the adjusted earnings
per share calculation is calculated the same way as that used in
GAAP diluted earnings per share calculation.
Reconciliation of effective tax rate to
adjusted effective tax rate
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
(Dollars in thousands)
GAAP:
Income (loss) before income taxes
$
357,507
$
27,918
$
830,302
$
(608,852
)
Income tax expense (benefit)
$
54,766
$
4,573
$
149,944
$
(188,504
)
Effective tax rate for GAAP financial
statements
15.3
%
16.4
%
18.1
%
31.0
%
Adjusted - Non-GAAP:
Effect of Non-GAAP adjustments
2.7
%
16.8
%
(3.2
)%
(121.2
)%
Effective tax rate for adjusted
results
18.0
%
33.2
%
14.9
%
(90.2
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103005203/en/
Richard L. Voliva III, Executive Vice President and Chief
Financial Officer Craig Biery, Vice President, Investor Relations
HollyFrontier Corporation 214-954-6510
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