HollyFrontier 2015 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2015 HollyFrontier annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

We are confident that through these investments, we are
building a sustainable competitive advantage in our core
petroleum refining business.
Our Business Plan
Looking ahead, we will continue to execute on our growth
plan to create significant value for stockholders over the
next three years. Through this plan, we expect to achieve
$700 million in additional annual EBITDA. We will reach
this EBITDA target by achieving what we believe to be
very attainable goals, including:
• Running our refineries at the top quartile in operational
availability, a measure of reliability;
• Creating sustainable growth in gross margin and free
cash flow through opportunity capital investment and
commercial optimization;
• Working within a cost structure that is in line with or
better than relevant peers;
• Improving the use of our balance sheet and our syner-
gistic relationship with our MLP affiliate Holly Energy
Partners (HEP) to create value through capital structure;
and we anticipate that additional asset dropdowns from
HFC to HEP will be a value driver for both companies.
Continued Commitment to our Core Values
As we noted, 2015 was a year of transition, including our
December announcement that George Damiris would be
taking the reins as the Company’s Chief Executive Officer.
George has been a key member of our leadership team
since joining the company in 2007 and has 35 years of
industry experience. George and the entire management
team are committed to executing our strategic plan and
maintaining the core values that underpin everything we do.
Chief among these values is the health and safety of our
employees, contractors and communities. A key part of our
reliability initiatives is continually increasing safety perfor-
mance. To achieve that goal we are employing occupational
and process safety management teams, upgrading safety
systems and enhancing maintenance programs. In 2015,
our employee recordable injury rate decreased by 20%
and our process safety Tier 1 incident rate decreased by
26% over the previous year.
We are thankful for our 2,700 dedicated employees
who are truly the backbone of our success and who will
enable us to continue to maintain safe, responsible and
reliable operations.
Looking Ahead
We are excited about the opportunities in front of
HollyFrontier. We look forward to creating value day
by day, investing in our future growth and positioning
the company for long-term success.
Thank you for your investment in HollyFrontier.
Sincerely,
George J. Damiris
Chief Executive Officer, President and Director
and
Michael C. Jennings
Executive Chairman
3
Michael C. Jennings
Executive Chairman
George J. Damiris
Chief Executive Officer,
President and Director