HollyFrontier 2015 Annual Report Download - page 60

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Table of Content
52
Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues
Years Ended December 31,
2015 2014 2013
(Dollars in thousands, except per barrel amounts)
Consolidated
Net operating margin per barrel $ 10.36 $ 7.60 $ 9.84
Add average refinery operating expenses per produced barrel 5.71 6.38 6.15
Refinery gross margin per barrel 16.07 13.98 15.99
Add average cost of products per produced barrel sold 55.25 96.21 99.61
Average sales price per produced barrel sold $ 71.32 $ 110.19 $ 115.60
Times sales of produced refined products sold (BPD) 438,000 420,990 410,730
Times number of days in period 365 365 365
Produced refined product sales $ 11,401,928 $ 16,931,944 $ 17,330,342
Total produced refined product sales $ 11,401,928 $ 16,931,944 $ 17,330,342
Add refined product sales from purchased products and rounding (1) 1,214,920 1,566,925 1,581,395
Total refined product sales 12,616,848 18,498,869 18,911,737
Add direct sales of excess crude oil (2) 352,113 1,060,354 1,052,915
Add other refining segment revenue (3) 202,222 147,002 140,791
Total refining segment revenue 13,171,183 19,706,225 20,105,443
Add HEP segment sales and other revenues 358,875 332,626 307,053
Add corporate and other revenues 663 2,103 1,314
Subtract consolidations and eliminations (292,801) (276,627) (253,250)
Sales and other revenues $ 13,237,920 $ 19,764,327 $ 20,160,560
(1) We purchase finished products to facilitate delivery to certain locations or to meet delivery commitments.
(2) We purchase crude oil that at times exceeds the supply needs of our refineries. Quantities in excess of our needs are sold at market
prices to purchasers of crude oil that are recorded on a gross basis with the sales price recorded as revenues and the corresponding
acquisition cost as inventory and then upon sale as cost of products sold. Additionally, at times we enter into buy/sell exchanges of
crude oil with certain parties to facilitate the delivery of quantities to certain locations that are netted at cost.
(3) Other refining segment revenue includes the incremental revenues associated with HFC Asphalt, product purchased and sold forward
for profit as market conditions and available storage capacity allows and miscellaneous revenue.
(4) Other refining segment cost of products sold includes the incremental cost of products for HFC Asphalt, the incremental cost associated
with storing product purchased and sold forward as market conditions and available storage capacity allows and miscellaneous costs.
(5) Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses
of HFC Asphalt.