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February 28, 2012
HollyFrontier Corporation Reports Fourth Quarter 2011 Results
Dallas, Texas, February 28, 2012 -- HollyFrontier Corporation (NYSE-HFC) (HollyFrontier or the Company) today reported fourth quarter net income attributable to HollyFrontier stockholders of $223.4 million or $1.06 per diluted share for the quarter ended December 31, 2011, compared to $14.7 million or $0.13 per diluted share for the quarter ended December 31, 2010. For the year ended December 31, 2011, net income attributable to HollyFrontier stockholders totaled $1 billion or $6.42 per diluted share compared to $104 million or $0.97 per diluted share for the year ended December 31, 2010.
For the fourth quarter, net income increased by $208.7 million, or 1,418% compared to the same period of 2010, reflecting both the effects of increased operating scale due to our recent merger and historically strong fourth quarter refining margins, which continued to benefit from wide differentials between inland and coastal-sourced crude oils. Overall refinery gross margins were $15.32 per produced barrel, a 95% increase compared to $7.87 for the fourth quarter of 2010, with overall production levels averaging 438,000 barrels per day (BPD) and overall crude oil charges averaging 407,000 BPD for the current quarter. The Companys Rocky Mountain refining margins were the strongest, with average gross margins of $18.33 per barrel for the quarter. The Mid-Continent and Southwest refining operations also yielded good results, where quarterly gross margins averaged $14.71 and $14.76 per barrel, respectively.
HollyFrontiers President & CEO, Mike Jennings, commented, We are delighted with our fourth quarter results as we conclude our first fiscal year as a combined company. Although overall product crack spreads narrowed during the quarter as the WTI crude differentials compressed, we generated solid profits for the quarter and remained near the top of our peer group in profitability per barrel. We are especially pleased with the Companys full year results, as this was the most profitable year in our history, with net income over $1 billion. Including last weeks special dividend declaration, we have announced special distributions to shareholders of $1.50 per share or approximately $315 million since the completion of our merger in July of last year. Further, we currently have a $350 million share repurchase program in place and continue to pay our regular quarterly dividend of $0.10 per share. Looking forward, the differentials between inland and coastal crudes are fairly robust, which should contribute favorably to our first quarter results. Further, we believe that operational synergies and increased asset scale gained during the merger will help us to extend our record of providing consistent returns and increasing shareholder value while maintaining a strong balance sheet.
Sales and other revenues for the fourth quarter of 2011 were $5 billion, a 125% increase compared to the three months ended December 31, 2010. This increase was due primarily to the inclusion of revenues from the El Dorado and Cheyenne refineries and the effects of a 19% year-over-year increase in fourth quarter refined product sales prices. Cost of products sold for the quarter was $4.3 billion, a 114% increase compared to the fourth quarter of 2010, reflecting both the fourth quarter impact of the legacy Frontier refineries and a 13% year-over-year increase in fourth quarter crude oil acquisition costs. During the quarter, we recognized merger integration costs of $8 million, which are included among general and administrative costs. Fourth quarter cash flows from operations totaled $249.2
The following information was filed by Hollyfrontier Corp (HFC) on Tuesday, February 28, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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