HollyFrontier 2013 Annual Report Download - page 59

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51
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 barrel is the difference between average net sales price and average cost of products per barrel of
produced refined products. Net operating margin per barrel is the difference between refinery gross margin and refinery operating
expenses per barrel of produced refined products. These two margins do not include the effect of 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.
Refinery Gross and Net Operating Margins
Below are reconciliations to our consolidated statements of income for (i) net sales, cost of products and operating expenses, in
each case averaged per produced barrel sold, and (ii) net operating margin and refinery gross margin. Due to rounding of reported
numbers, some amounts may not calculate exactly.
Reconciliation of produced refined product sales to total sales and other revenues
Years Ended December 31,
2013 2012 2011
(Dollars in thousands, except per barrel amounts)
Consolidated
Average sales price per produced barrel sold $ 115.60 $ 119.48 $ 118.82
Times sales of produced refined products sold (BPD) 410,730 431,060 332,720
Times number of days in period 365 366 365
Produced refined product sales $ 17,330,342 $ 18,850,116 $ 14,429,833
Total produced refined product sales $ 17,330,342 $ 18,850,116 $ 14,429,833
Add refined product sales from purchased products and rounding (1) 1,581,395 572,206 350,843
Total refined product sales 18,911,737 19,422,322 14,780,676
Add direct sales of excess crude oil (2) 1,052,915 505,971 558,855
Add other refining segment revenue (3) 140,791 114,662 52,899
Total refining segment revenue 20,105,443 20,042,955 15,392,430
Add HEP segment sales and other revenues 307,053 288,501 212,995
Add corporate and other revenues 1,314 1,048 1,098
Subtract consolidations and eliminations (253,250) (241,780) (166,995)
Sales and other revenues $ 20,160,560 $ 20,090,724 $ 15,439,528
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