HollyFrontier 2013 Annual Report Download - page 51

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43
Cash Flows – Investing Activities and Planned Capital Expenditures
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Net cash flows used for investing activities were $526.7 million for the year ended December 31, 2013 compared to $711.1 million
for the year ended December 31, 2012, a decrease of $184.4 million. Cash expenditures for properties, plants and equipment for
2013 increased to $425.1 million from $335.3 million for the same period in 2012. These include HEP capital expenditures of
$51.9 million and $44.9 million for the years ended December 31, 2013 and 2012, respectively. In addition, for the year ended
December 31, 2013, we received proceeds of $7.8 million from the sale of property and equipment, invested and advanced a net
total of $8.7 million to Sabine Biofuels and acquired trucking operations for $11.3 million. For the year ended December 31, 2012,
we invested $2.0 million in Sabine Biofuels. Also for the years ended December 31, 2013 and 2012, we invested $935.5 million
and $671.6 million, respectively, in marketable securities and received proceeds of $846.1 million and $297.7 million, respectively,
from the sale or maturity of marketable securities.
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Net cash flows used for investing activities were $711.1 million for the year ended December 31, 2012 compared to net cash flows
provided by investing activities of $228.5 million for the year ended December 31, 2011, a decrease of $939.6 million. Investing
activities for 2011 reflect a net cash inflow due to an $872.7 million increase in cash and cash equivalents as a result of our July
1, 2011 merger with Frontier. Cash expenditures for properties, plants and equipment for 2012 decreased to $335.3 million from
$374.2 million for the same period in 2011. These include HEP capital expenditures of $44.9 million and $216.2 million for the
years ended December 31, 2012 and 2011, respectively, which include 2011 capital expenditures of $164.3 million to construct
the UNEV Pipeline. Also for the years ended December 31, 2012 and 2011, we invested $2.0 million and $9.1 million, respectively,
in Sabine Biofuels and $671.6 million and $561.9 million, respectively, in marketable securities and received proceeds of $297.7
million and $301.0 million, respectively, from the sale or maturity of marketable securities.
Planned Capital Expenditures
HollyFrontier Corporation
Each year our Board of Directors approves our annual capital budget which includes specific projects that management is authorized
to undertake. Additionally, when conditions warrant or as new opportunities arise, additional projects may be approved. The funds
appropriated for a particular capital project may be expended over a period of several years, depending on the time required to
complete the project. Therefore, our planned capital expenditures for a given year consist of expenditures appropriated in that
year’s capital budget plus expenditures for projects appropriated in prior years which have not yet been completed. Our appropriated
capital budget for 2014 is $185.0 million including both sustaining capital and major capital projects. We expect to spend
approximately $400.0 million to $450.0 million in cash for capital projects appropriated in 2014 and prior years. In addition, we
expect to spend $77.0 million on refinery turnarounds. Refinery turnaround spending is amortized over the useful life of the
turnaround. Our new capital appropriation for 2014 and expected cash spending is as follows:
New Appropriation Expected Cash
Spending Range
(In millions)
Location:
El Dorado $ 43.0 $ 85.0 – $ 96.0
Tulsa 22.0 54.0 – 61.0
Navajo 17.0 24.0 – 27.0
Cheyenne 74.0 80.0 – 90.0
Woods Cross 14.0 142.0 – 160.0
Corporate and Other 15.0 15.0 – 16.0
Total $ 185.0 $ 400.0 – $ 450.0
Type:
Sustaining $ 51.0 $ 66.0 – $ 74.0
Reliability and Growth 40.0 234.0 – 263.0
Compliance and Safety 94.0 100.0 – 113.0
Total $ 185.0 $ 400.0 – $ 450.0
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