HF Sinclair Corporation (HFC)

NEW YORK--(BUSINESS WIRE)--Altice USA (NYSE: ATUS) today announces that it has entered into and funded an inaugural $1.0 billion asset-backed term loan facility (“Asset Backed Loan Facility”), through an unrestricted subsidiary, in partnership with Goldman Sachs and TPG Angelo Gordon. The Asset Backed Loan Facility is secured by certain receivables generated by the Company's Bronx and Brooklyn service area and network assets, primarily the Hybrid-Fiber Coaxial (HFC) network (collectively, the “.

DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE: HFC) (“HollyFrontier”) and Holly Energy Partners, L.P. (NYSE: HEP) (“HEP”), today announced the establishment of HF Sinclair Corporation (NYSE: DINO) (“HF Sinclair”) as the new parent holding company of HollyFrontier and HEP and the completion of their respective acquisitions of Sinclair Oil Corporation and Sinclair Transportation Company from The Sinclair Companies. Commencing at market open on March 15, 2022, HF Sinclair will replace H

Despite underperforming the market, the stock could be worth $67+/share today – a 123%+ upside.

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After seeing a recovery during 2021, disappointingly HollyFrontier saw a rough end to the year.

HollyFrontier: Too Cheap To Ignore

HollyFrontier Corporation (HFC) CEO Mike Jennings on Q4 2021 Results - Earnings Call Transcript

HollyFrontier (HFC) delivered earnings and revenue surprises of -450% and 32.18%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?

DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported fourth quarter net loss attributable to HollyFrontier stockholders of $(39.5) million or $(0.24) per diluted share for the quarter ended December 31, 2021, compared to $(117.7) million or $(0.73) per diluted share for the quarter ended December 31, 2020. The fourth quarter results reflect special items that collectively increased net loss by a total of $21.9 million. On a pre-tax basis, these items include acquisition integration costs of $15.8 million, a lower of cost or market inventory valuation adjustment of $8.7 million and charges related to the Cheyenne Refinery conversion to renewable diesel production, including decommissioning charges of $2.8 million. Excluding these items, adjusted net loss for the fourth quarter was $(17.6) million ($(0.11) per diluted share) compared to $(118.6) million ($(0.74) per diluted share) for the fourth quarter of 2020, which excludes certain items that collectively decreased net loss by $0.9 million for the three months ended December 31, 2020. HollyFrontier’s CEO, Michael Jennings, commented, “Despite heavy planned and unplanned refining maintenance and weather-related downtime in the fourth quarter, HollyFrontier delivered solid financial results in 2021, highlighted by record earnings in our Lubricants and Specialties business and the closing of our acquisition of the Puget Sound Refinery. Looking forward to 2022, we remain constructive on the macro environment and are focused on the execution of our strategic initiatives: the successful completion and start-up of our renewables business, closing on our acquisition of Sinclair and accelerating returns of capital to our shareholders.” Refining segment loss before interest and income taxes was $(63.5) million for the fourth quarter of 2021 compared to $(66.1) million in the fourth quarter of 2020. The segment reported EBITDA of $25.0 million for the fourth quarter of 2021 compared to $7.5 million for the fourth quarter of 2020. This increase was driven by stronger product demand, which resulted in a consolidated refinery gross margin of $8.70 per produced barrel, a 116% increase compared to $4.02 for the fourth quarter of 2020. Crude oil charge averaged 421,000 barrels per day (“BPD”) for the fourth quarter of 2021 compared to 379,910 BPD for the fourth quarter of 2020. Lubricants and Specialty Products segment income before interest and income taxes was $53.7 million for the fourth quarter of 2021 compared to a loss before interest and income taxes of $(54.1) million in the fourth quarter of 2020. The segment reported EBITDA of $74.9 million for the fourth quarter of 2021 compared to $(32.7) million in the fourth quarter of 2020. Fourth quarter of 2020 included a goodwill impairment charge of $81.9 million related to Sonneborn. Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $70.8 million for the fourth quarter of 2021 compared to $86.8 million in the fourth quarter of 2020. For the fourth quarter of 2021, net cash used for operations totaled $332.8 million. At December 31, 2021, the Company's cash and cash equivalents totaled $234.4 million, a $1,247.1 million decrease over cash and cash equivalents of $1,481.6 million at September 30, 2021 inclusive of our purchase of the Puget Sound Refinery. Additionally, the Company's consolidated debt was $3,072.7 million. The Company's debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $1,739.7 million at December 31, 2021. The Company has scheduled a webcast conference call for today, February 23, 2022, at 8:30 AM Eastern Time to discuss fourth quarter financial results. This webcast may be accessed at: https://events.q4inc.com/attendee/868741482. An audio archive of this webcast will be available using the above noted link through March 9, 2022. HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico, Washington and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in HEP, a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including subsidiaries of HollyFrontier Corporation. The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “strategy,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the Company’s ability to successfully close the pending acquisition by the Company and HEP of Sinclair Oil Corporation and Sinclair Transportation Company (collectively, “Sinclair”, and such transactions, the “Sinclair Transactions”), or once closed, integrate the operations of Sinclair with its existing operations and fully realize the expected synergies of the Sinclair Transactions or on the expected timeline; the satisfaction or waivers of the conditions precedent to the proposed Sinclair Transactions, including without limitation, regulatory approvals (including clearance by antitrust authorities necessary to complete the Sinclair Transactions on the terms and timeline desired), risks relating to the value of HF Sinclair common stock and the value of HEP’s limited partner common units to be issued at the closing of the Sinclair Transactions from sales in anticipation of closing and from sales by the Sinclair holders following the closing of the Sinclair Transactions; the cost and potential for a delay in closing as a result of litigation against the Company or HEP challenging the Sinclair Transactions; the Company's ability to successfully integrate the operation of the Puget Sound Refinery with the Company's existing operations; the demand for and supply of crude oil and refined products, including uncertainty regarding the effects of the continuing coronavirus (“COVID-19”) pandemic on future demand and increasing societal expectations that companies address climate change; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand; the effects of current and/or future governmental and environmental regulations and policies, including the effects of current and/or future restrictions on various commercial and economic activities in response to the COVID-19 pandemic; the availability and cost of financing to the Company; the effectiveness of the Company’s capital investments and marketing strategies; the Company’s efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects, such as the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within capital guidance; the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States; a prolonged economic slowdown due to the COVID-19 pandemic which could result in an impairment of goodwill and/or long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. RESULTS OF OPERATIONS Financial Data (all information in this release is unaudited) Three Months Ended December 31, Change from 2020 2021 2020 Change Percent (In thousands, except per share data) Sales and other revenues $ 5,622,667 $ 2,900,768 $ 2,721,899 94 % Operating costs and expenses: Cost of products sold: Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) 4,958,160 2,510,845 2,447,315 97 Lower of cost or market inventory valuation adjustment 8,739 (149,212 ) 157,951 (106 ) 4,966,899 2,361,633 2,605,266 110 Operating expenses 430,858 336,077 94,781 28 Selling, general and administrative expenses 111,225 76,041 35,184 46 Depreciation and amortization 134,198 124,879 9,319 7 Goodwill and long-lived asset impairments — 108,385 (108,385 ) (100 ) Total operating costs and expenses 5,643,180 3,007,015 2,636,165 88 Loss from operations (20,513 ) (106,247 ) 85,734 (81 ) Other income (expense): Earnings of equity method investments 3,557 1,461 2,096 143 Interest income 941 1,043 (102 ) (10 ) Interest expense (30,955 ) (40,604 ) 9,649 (24 ) Gain on foreign currency transactions 1,288 3,119 (1,831 ) (59 ) Gain on sale of assets and other 2,532 3,034 (502 ) (17 ) (22,637 ) (31,947 ) 9,310 (29 ) Loss before income taxes (43,150 ) (138,194 ) 95,044 (69 ) Income tax benefit (26,046 ) (43,643 ) 17,597 (40 ) Net loss (17,104 ) (94,551 ) 77,447 (82 ) Less net income attributable to noncontrolling interest 22,426 23,196 (770 ) (3 ) Net loss attributable to HollyFrontier stockholders $ (39,530 ) $ (117,747 ) $ 78,217 (66 )% Loss per share: Basic $ (0.24 ) $ (0.73 ) $ 0.49 (67 )% Diluted $ (0.24 ) $ (0.73 ) $ 0.49 (67 )% Cash dividends declared per common share $ — $ 0.35 $ (0.35 ) (100 )% Average number of common shares outstanding: Basic 162,721 162,151 570 — % Diluted 162,721 162,151 570 — % EBITDA $ 98,636 $ 3,050 $ 95,586 3,134 % Adjusted EBITDA $ 126,026 $ (21,898 ) $ 147,924 (676 )% Years Ended December 31, Change from 2020 2021 2020 Change Percent (In thousands, except per share data) Sales and other revenues $ 18,389,142 $ 11,183,643 $ 7,205,499 64 % Operating costs and expenses: Cost of products sold: Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) 15,567,052 9,158,805 6,408,247 70 Lower of cost or market inventory valuation adjustment (310,123 ) 78,499 (388,622 ) (495 ) 15,256,929 9,237,304 6,019,625 65 Operating expenses 1,517,478 1,300,277 217,201 17 Selling, general and administrative expenses 362,010 313,600 48,410 15 Depreciation and amortization 503,539 520,912 (17,373 ) (3 ) Goodwill and long-lived asset impairments — 545,293 (545,293 ) (100 ) Total operating costs and expenses 17,639,956 11,917,386 5,722,570 48 Income (loss) from operations 749,186 (733,743 ) 1,482,929 (202 ) Other income (expense): Earnings of equity method investments 12,432 6,647 5,785 87 Interest income 4,019 7,633 (3,614 ) (47 ) Interest expense (125,175 ) (126,527 ) 1,352 (1 ) Gain on business interruption insurance settlement — 81,000 (81,000 ) (100 ) Gain on tariff settlement 51,500 — 51,500 — Gain on sales-type lease — 33,834 (33,834 ) (100 ) Loss on early extinguishment of debt — (25,915 ) 25,915 (100 ) Gain (loss) on foreign currency transactions (2,938 ) 2,201 (5,139 ) (233 ) Gain on sale of assets and other 98,128 7,824 90,304 1,154 37,966 (13,303 ) 51,269 (385 ) Income (loss) before income taxes 787,152 (747,046 ) 1,534,198 (205 ) Income tax expense (benefit) 123,898 (232,147 ) 356,045 (153 ) Net income (loss) 663,254 (514,899 ) 1,178,153 (229 ) Less net income attributable to noncontrolling interest 104,930 86,549 18,381 21 Net income (loss) attributable to HollyFrontier stockholders $ 558,324 $ (601,448 ) $ 1,159,772 (193 )% Earnings (loss) per share: Basic $ 3.39 $ (3.72 ) $ 7.11 (191 )% Diluted $ 3.39 $ (3.72 ) $ 7.11 (191 )% Cash dividends declared per common share $ 0.35 $ 1.40 $ (1.05 ) (75 )% Average number of common shares outstanding: Basic 162,569 161,983 586 — % Diluted 162,569 161,983 586 — % EBITDA $ 1,306,917 $ (193,789 ) $ 1,500,706 (774 )% Adjusted EBITDA $ 915,665 $ 412,220 $ 503,445 122 % Balance Sheet Data Years Ended December 31, 2021 2020 (In thousands) Cash and cash equivalents $ 234,444 $ 1,368,318 Working capital $ 1,696,990 $ 1,935,605 Total assets $ 12,916,613 $ 11,506,864 Long-term debt $ 3,072,737 $ 3,142,718 Total equity $ 6,294,465 $ 5,722,203 Segment Information Our operations are organized into three reportable segments: Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column. The Refining segment represents the operations of our El Dorado, Tulsa, Navajo and Woods Cross refineries, HollyFrontier Asphalt Company LLC (“HFC Asphalt”) and also our recently acquired Puget Sound Refinery from the closing date on November 1, 2021 (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Refining segment also included the operations of our Cheyenne Refinery until it permanently ceased petroleum refining operations during the third quarter of 2020. Beginning in the fourth quarter of 2020, activities associated with the conversion of Cheyenne Refinery to renewable diesel production, along with the construction of renewable diesel and pre-treatment units in Artesia, New Mexico were reported in Corporate and Other. The Cheyenne renewable diesel unit was mechanically complete in the fourth quarter of 2021. The pre-treatment unit is expected to be completed in the first quarter of 2022, and the Artesia renewable diesel unit is expected to be completed in the second quarter of 2022. Beginning in the first quarter of 2022, renewable diesel operations will cease to be reported in Corporate and Other and will be reported under a new Renewables segment. The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. The HEP segment includes all of the operations of HEP, a consolidated variable interest entity, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP's periodic public filings. Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) Three Months Ended December 31, 2021 Sales and other revenues: Revenues from external customers $ 4,896,994 $ 699,838 $ 25,837 $ (2 ) $ 5,622,667 Intersegment revenues 168,599 488 92,656 (261,743 ) — $ 5,065,593 $ 700,326 $ 118,493 $ (261,745 ) $ 5,622,667 Cost of products sold (exclusive of lower of cost or market inventory adjustment) $ 4,686,200 $ 510,528 $ — $ (238,568 ) $ 4,958,160 Lower of cost or market inventory valuation adjustment $ — $ — $ — $ 8,739 $ 8,739 Operating expenses $ 317,831 $ 69,453 $ 44,298 $ (724 ) $ 430,858 Selling, general and administrative expenses $ 36,586 $ 45,543 $ 2,973 $ 26,123 $ 111,225 Depreciation and amortization $ 88,455 $ 21,268 $ 20,090 $ 4,385 $ 134,198 Income (loss) from operations $ (63,479 ) $ 53,534 $ 51,132 $ (61,700 ) $ (20,513 ) Income (loss) before interest and income taxes $ (63,479 ) $ 53,665 $ 54,873 $ (58,195 ) $ (13,136 ) Net income attributable to noncontrolling interest $ — $ — $ 3,190 $ 19,236 $ 22,426 Earnings of equity method investments $ — $ — $ 3,557 $ — $ 3,557 Capital expenditures $ 46,106 $ 13,344 $ 11,403 $ 194,211 $ 265,064 Three Months Ended December 31, 2020 Sales and other revenues: Revenues from external customers $ 2,406,214 $ 462,724 $ 25,629 $ 6,201 $ 2,900,768 Intersegment revenues 74,492 1,554 101,827 (177,873 ) — $ 2,480,706 $ 464,278 $ 127,456 $ (171,672 ) $ 2,900,768 Cost of products sold (exclusive of lower of cost or market inventory adjustment) $ 2,326,150 $ 318,857 $ — $ (134,162 ) $ 2,510,845 Lower of cost or market inventory valuation adjustment $ (145,497 ) $ — $ — $ (3,715 ) $ (149,212 ) Operating expenses $ 233,433 $ 59,609 $ 37,971 $ 5,064 $ 336,077 Selling, general and administrative expenses $ 32,621 $ 36,162 $ 2,420 $ 4,838 $ 76,041 Depreciation and amortization $ 73,598 $ 21,396 $ 23,350 $ 6,535 $ 124,879 Goodwill and long-lived asset impairments $ 26,518 $ 81,867 $ — $ — $ 108,385 Income (loss) from operations $ (66,117 ) $ (53,613 ) $ 63,715 $ (50,232 ) $ (106,247 ) Income (loss) before interest and income taxes $ (66,117 ) $ (54,056 ) $ 65,428 $ (43,888 ) $ (98,633 ) Net income attributable to noncontrolling interest $ — $ — $ 1,124 $ 22,072 $ 23,196 Earnings of equity method investments $ — $ — $ 1,461 $ — $ 1,461 Capital expenditures $ 45,870 $ 12,086 $ 20,641 $ 38,555 $ 117,152 Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) Year Ended December 31, 2021 Sales and other revenues: Revenues from external customers $ 15,734,870 $ 2,550,624 $ 103,646 $ 2 $ 18,389,142 Intersegment revenues 623,688 9,988 390,849 (1,024,525 ) — $ 16,358,558 $ 2,560,612 $ 494,495 $ (1,024,523 ) $ 18,389,142 Cost of products sold (exclusive of lower of cost or market inventory adjustment) $ 14,673,062 $ 1,815,802 $ — $ (921,812 ) $ 15,567,052 Lower of cost or market inventory valuation adjustment $ (318,353 ) $ — $ — $ 8,230 $ (310,123 ) Operating expenses $ 1,090,424 $ 252,456 $ 170,524 $ 4,074 $ 1,517,478 Selling, general and administrative expenses $ 127,563 $ 170,155 $ 12,637 $ 51,655 $ 362,010 Depreciation and amortization $ 334,365 $ 79,767 $ 86,998 $ 2,409 $ 503,539 Income (loss) from operations $ 451,497 $ 242,432 $ 224,336 $ (169,079 ) $ 749,186 Income (loss) before interest and income taxes $ 449,747 $ 329,203 $ 267,623 $ (138,265 ) $ 908,308 Net income attributable to noncontrolling interest $ — $ — $ 7,217 $ 97,713 $ 104,930 Earnings of equity method investments $ — $ — $ 12,432 $ — $ 12,432 Capital expenditures $ 160,431 $ 30,878 $ 88,336 $ 533,764 $ 813,409 Year Ended December 31, 2020 Sales and other revenues: Revenues from external customers $ 9,286,658 $ 1,792,745 $ 98,039 $ 6,201 $ 11,183,643 Intersegment revenues 252,531 10,465 399,809 (662,805 ) — $ 9,539,189 $ 1,803,210 $ 497,848 $ (656,604 ) $ 11,183,643 Cost of products sold (exclusive of lower of cost or market inventory adjustment) $ 8,439,680 $ 1,271,287 $ — $ (552,162 ) $ 9,158,805 Lower of cost or market inventory valuation adjustment $ 82,214 $ — $ — $ (3,715 ) $ 78,499 Operating expenses $ 988,045 $ 216,068 $ 147,692 $ (51,528 ) $ 1,300,277 Selling, general and administrative expenses $ 127,298 $ 157,816 $ 9,989 $ 18,497 $ 313,600 Depreciation and amortization $ 324,617 $ 80,656 $ 95,445 $ 20,194 $ 520,912 Goodwill impairment $ 241,760 $ 286,575 $ 16,958 $ — $ 545,293 Income (loss) from operations $ (664,425 ) $ (209,192 ) $ 227,764 $ (87,890 ) $ (733,743 ) Income (loss) before interest and income taxes $ (664,425 ) $ (209,903 ) $ 251,021 $ (4,845 ) $ (628,152 ) Net income attributable to noncontrolling interest $ — $ — $ 5,282 $ 81,267 $ 86,549 Earnings of equity method investments $ — $ — $ 6,647 $ — $ 6,647 Capital expenditures $ 152,726 $ 32,473 $ 59,283 $ 85,678 $ 330,160 Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) December 31, 2021 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 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 As of December 31, 2021, our refinery operations included the El Dorado, Tulsa, Puget Sound, Navajo and Woods Cross Refineries. The refinery operations of the Puget Sound Refinery are included for the period November 1, 2021 (date of acquisition) through December 31, 2021. 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. Three Months Ended December 31, Years Ended December 31, 2021 2020 2021 2020 Mid-Continent Region (El Dorado and Tulsa Refineries) 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 December 31, Years Ended December 31, 2021 (8) 2020 2021 (8) 2020 West Region (Puget Sound, Navajo and Wood Cross Refineries) 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 December 31, Years Ended December 31, 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 Puget Sound Refinery on November 1, 2021, our consolidated crude capacity increased from 405,000 BPSD to 554,000 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 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 Puget Sound Refinery on November 1, 2021. Refining operating data for the quarter and year ended December 31, 2021 includes crude oil and feedstocks processed and refined products sold at our Puget Sound Refinery for the period November 1, 2021 through December 31, 2021 only, averaged over the 92 days and 365 days in the quarter and year ended December 31, 2021, respectively. Lubricants and Specialty Products Segment Operating Data The following table sets forth information about our lubricants and specialty products operations. Three Months Ended December 31, Years Ended December 31, 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 Back (1) Rack Forward (2) Eliminations (3) Total Lubricants and Specialty Products (In thousands) Three Months Ended December 31, 2021 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 December 31, 2020 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 Goodwill impairment $ — $ 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 Back (1) Rack Forward (2) Eliminations (3) Total Lubricants and Specialty Products (In thousands) Year Ended December 31, 2021 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 December 31, 2020 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 Goodwill impairment $ 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) 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) goodwill impairment, (iv) HollyFrontier's pro-rata share of gain on business interruption insurance settlement, (v) long-lived asset impairment, inclusive of pro-rata share of impairment in HEP segment, (vi) HollyFrontier's pro-rata share of HEP's gain on sales-type leases, (vii) HollyFrontier's pro-rata share of HEP's loss on early extinguishment of debt, (viii) severance costs, (ix) restructuring charges, (x) Cheyenne Refinery LIFO inventory liquidation costs, (xi) decommissioning costs, (xii) pre-close acquisition integration costs, (xiii) acquisition integration and regulatory costs and (xiv) 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 December 31, Years Ended December 31, 2021 2020 2021 2020 (In thousands) Net income (loss) attributable to HollyFrontier stockholders $ (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 HollyFrontier's pro-rata share of gain on business interruption insurance settlement — — — (77,143 ) Add long-lived asset impairment, inclusive of pro-rata share of impairment in HEP segment — 26,518 — 456,058 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 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 December 31, Years Ended December 31, 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 Rack Back Rack Forward Total Lubricants and Specialty Products (In thousands) Three Months Ended December 31, 2021 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 December 31, 2020 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 December 31, 2021 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 December 31, 2020 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 December 31, Years Ended December 31, 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 Times produced barrels sold (BPD) 474,230 417,990 424,100 391,670 Times number of days in period 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 Add Cheyenne Refinery sales and other revenues — — — 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 December 31, Years Ended December 31, 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 Times produced barrels sold (BPD) 474,230 417,990 424,100 391,670 Times number of days in period 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 Add Cheyenne Refinery operating expenses — — — 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 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, goodwill and long-lived asset impairments, gain on business interruption insurance settlement, 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 December 31, Years Ended December 31, 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 HollyFrontier stockholders (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 ) Goodwill and long-lived asset impairments — 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 HollyFrontier stockholders $ (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 December 31, Years Ended December 31, 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 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 the same as that used in GAAP diluted earnings per share calculation. Reconciliation of effective tax rate to adjusted effective tax rate Three Months Ended December 31, Years Ended December 31, 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 %

DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported fourth quarter net loss attributable to HollyFrontier stockholders of $(39.5) million or $(0.24) per diluted share for the quarter ended December 31, 2021, compared to $(117.7) million or $(0.73) per diluted share for the quarter ended December 31, 2020. The fourth quarter results reflect special items that collectively increased net loss by a total of $21.9 million. On a pre-tax basi

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DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE: HFC) (the "Company") plans to announce results for its quarter ending December 31, 2021 on February 23, 2022, before the opening of trading on the NYSE. The Company has scheduled a webcast conference on February 23, 2022 at 8:30 a.m. Eastern time to discuss financial results. This webcast may be accessed at: https://events.q4inc.com/attendee/868741482 An audio archive of this webcast will be available using the above noted link through M

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Apart from ExxonMobil (XOM) and HollyFrontier (HFC), developments at APA Corporation (APA), Enbridge (ENB) and Petrobras (PBR) remained in focus during the week.