HollyFrontier 2015 Annual Report Download - page 18

Table of Content
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For the year ended December 31, 2015, sales to Shell Oil represented approximately 11% of our Mid-Continent refineries' total
sales and 9% of our total consolidated sales. We have a sales agreement with an affiliate of Shell Oil under which Shell Oil
purchases gasoline and diesel production of the El Dorado Refinery and Tulsa Refineries at market prices through October 2017
primarily to support its branded marketing network.
Our Tulsa West facility also produces specialty lubricant products sold in both commercial and specialty markets throughout North
America and to customers with operations in Central America and South America. The specialty lubricant products are high-value
products that provide a significantly higher margin contribution to the refinery. Base oil customers include blender-compounders
who prepare the various finished lubricant and grease products sold to end users. Agricultural products are formulated as
supplemental carriers for herbicides and as Environmental Protection Agency (“EPA”) registered pesticide oils, are sold to product
formulators. Process oil customers include rubber and chemical industry customers. Specialty waxes are sold primarily to packaging
customers as coating material for paper and cardboard, and to non-packaging customers in the construction materials, adhesive
and candle-making markets. Our production represents approximately 5% of paraffinic oil capacity and 14% of wax production
capacity in the United States market and is one of four refineries of specialty aromatic oils in North America.
Principal Products
Set forth below is information regarding the principal products produced at our El Dorado and Tulsa Refineries:
Years Ended December 31,
2015 2014 2013
Mid-Continent Region (El Dorado and Tulsa Refineries)
Sales of produced refined products:
Gasolines 50% 47% 47%
Diesel fuels 33% 33% 31%
Jet fuels 7% 7% 8%
Fuel oil 1% 1% 1%
Asphalt 2% 3% 3%
Lubricants 4% 4% 4%
LPG and other 3% 5% 6%
Total 100% 100% 100%
Crude Oil and Feedstock Supplies
Both of our Mid-Continent Refineries are connected via pipeline to Cushing, Oklahoma, a significant crude oil pipeline trading
and storage hub. The El Dorado Refinery and the Tulsa Refineries are located approximately 125 miles and 50 miles, respectively,
from Cushing, Oklahoma. Local pipelines provide direct access to regional Oklahoma crude production as well as access to United
States onshore and Canadian crudes. The proximity of the refineries to the Cushing pipeline and storage hub provides the flexibility
to optimize their crude slate with a wide variety of crude oil supply options. Additionally, we have transportation service agreements
to transport Canadian crude oil on the Spearhead and Keystone Pipelines, enabling us to transport Canadian crude oil to Cushing
for subsequent shipment to either of our Mid-Continent Refineries.
We also purchase isobutane, natural gasoline, butane and other feedstocks for processing at our Mid-Continent Refineries. The El
Dorado Refinery is connected to Conway, Kansas, a major gas liquids trading and storage hub, via the Oneok Pipeline. From time
to time, other feedstocks such gas oil, naphtha and light cycle oil are purchased from other refiners for use at our refineries.
Southwest Region (Navajo Refinery)
Facilities
The Navajo Refinery has a crude oil processing capacity of 100,000 barrels per stream day and has the ability to process sour
crude oils into high-value light products such as gasoline, diesel fuel and jet fuel. For 2015, gasoline and diesel fuel (excluding
volumes purchased for resale) represented 55% and 39%, respectively, of our Southwest sales volumes.