|February 24, 2011
Holly Corporation Reports Fourth Quarter and Full Year 2010 Results
Announces Regular Quarterly Cash Dividend
Dallas, Texas, February 24, 2011 Holly Corporation (NYSE-HOC) (Holly or the Company)
today reported fourth quarter 2010 financial results. For the quarter, net income attributable to
Holly stockholders was $14.7 million ($0.28 per basic and $0.27 per diluted share) compared to a
net loss attributable to Holly stockholders of $40.5 million ($0.79 per basic and diluted share)
for the fourth quarter of 2009. For the year ended December 31, 2010, net income attributable to
Holly stockholders was $104 million ($1.95 per basic and $1.94 per diluted share) compared to $19.5
million ($0.39 per basic and diluted share) for 2009.
Holly also announced that its Board of Directors has declared a regular quarterly cash dividend in
the amount of $0.15 per share, payable April 4, 2011, to holders of record on March 25, 2011.
For the quarter, net income attributable to our stockholders increased by $55.2 million compared to
the same period of 2009. This increase was due principally to higher refinery gross margins during
the current year fourth quarter combined with increased sales volumes of produced refined products.
Overall refinery gross margins were $7.87 per produced barrel, a 114% increase compared to $3.67
for the fourth quarter of 2009. For the quarter, our overall refinery production levels averaged
222,750 barrels per day (BPD), an increase of 17% over the same period of 2009 due principally to
increased production from our Tulsa refinery complex since we acquired the east facility in
For the year ended December 31, 2010, net income attributable to our stockholders increased by
$84.4 million compared to 2009. This increase was due principally to increased sales volumes of
produced refined products combined with higher refinery gross margins during 2010. Overall
refinery gross margins were $8.79 per produced barrel, a 22% increase compared to $7.21 in 2009.
For the year ended December 31, 2010, our overall refinery production levels averaged 225,980 BPD,
an increase of 49% over 2009 due to production from our Tulsa refinery facilities and production
increases at our Navajo and Woods Cross refineries.
We are pleased with our fourth quarter and full year results, said Matthew Clifton, Chairman of
the Board and Chief Executive Officer of Holly. Significant year-over-year margin improvements at
each of our refineries, contributed to the much improved EBITDA levels of $69 million and $353.8
million for the three months and year ended December 31, 2010, representing respective increases of
333% and 126% over the same periods of 2009. Particularly strong diesel cracks at each of our
refineries combined with robust gasoline cracks at our Woods Cross refinery and attractive lube
margins at our Tulsa refinery helped fuel these improved results. Refinery margins in the 2010
fourth quarter were significantly better than the low margins experienced in late 2009 and early
2010, yet during the fourth quarter of 2010 margins somewhat fell off as gasoline prices did not
keep pace with recent crude oil increases.
Progress continues on our integration and diesel desulfurization expansion efforts at our Tulsa
refinery with the diesel desulfurizer project expected to be completed within the next two weeks
and the pipeline integration expected to be mechanically complete later this spring. The Tulsa
projects should lower operating expenses and improve the profit producing potential of what has
been a strong profit contributor during the last three quarters.
Our affiliated logistic MLP, Holly Energy Partners, had a strong fourth quarter achieving record
quarterly distributable cash flow and EBITDA levels. We received $9.7 million as a result of HEPs
distribution declaration on January 26, 2010.