HollyFrontier 2013 Annual Report Download - page 45

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(1) Earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA,” is calculated as net income
plus (i) interest expense, net of interest income, (ii) income tax provision, and (iii) depreciation and amortization. EBITDA
is not a calculation provided for under GAAP; however, the amounts included in the EBITDA calculation are derived from
amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative 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 is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented
here because it is a widely used financial indicator used by investors and analysts to measure performance. EBITDA is also
used by our management for internal analysis and as a basis for financial covenants. EBITDA presented above is reconciled
to net income under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following
Item 7A of Part II of this Form 10-K.
Our operations are organized into two reportable segments, Refining and HEP. See Note 20 “Segment Information” in the Notes
to Consolidated Financial Statements for additional information on our reportable segments.
Refining Operating Data
Our refinery operations include the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries. The following tables set
forth information, including non-GAAP performance measures about our consolidated refinery operations. The cost of products
and refinery gross and net operating margins do not include the effect of depreciation and amortization. Reconciliations to amounts
reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles”
following Item 7A of Part II of this Form 10-K.
Years Ended December 31,
2013 2012 2011 (10)
Consolidated
Crude charge (BPD) (1) 387,520 415,210 315,000
Refinery throughput (BPD) (2) 424,780 453,740 340,200
Refinery production (BPD) (3) 413,820 442,730 331,890
Sales of produced refined products (BPD) 410,730 431,060 332,720
Sales of refined products (BPD) (4) 446,390 443,620 340,630
Refinery utilization (5) 87.5% 93.7% 89.9%
Average per produced barrel (6)
Net sales $ 115.60 $ 119.48 $ 118.82
Cost of products (7) 99.61 94.59 98.18
Refinery gross margin 15.99 24.89 20.64
Refinery operating expenses (8) 6.15 5.49 5.36
Net operating margin $ 9.84 $ 19.40 $ 15.28
Refinery operating expenses per throughput barrel (9) $ 5.95 $ 5.22 $ 5.24
(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) Refinery production represents the barrels per day of refined products yielded from processing crude and other refinery feedstocks
through the crude units and other conversion units at our refineries.
(4) Includes refined products purchased for resale.
(5) Represents crude charge divided by total crude capacity (BPSD). Effective July 1, 2011, our consolidated crude capacity increased
from 256,000 BPSD to 443,000 BPSD as a result of our merger with Frontier.
(6) Represents average per barrel amount for produced refined products 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”
following Item 7A of Part II of this Form 10-K.
(7) Transportation, terminal and refinery storage costs billed from HEP are included in cost of products.
(8) Represents operating expenses of our refineries, exclusive of depreciation and amortization and pension settlement costs.
(9) Represents refinery operating expenses, exclusive of depreciation and amortization and pension settlement costs, divided by refinery
throughput.
(10) Refining operating data for the year ended December 31, 2011 include crude oil processed and products yielded from the El Dorado
and Cheyenne Refineries for the period from July 1, 2011 through December 31, 2011 only, and averaged over the 365 days in the
year ended December 31, 2011.
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