HollyFrontier 2014 Annual Report Download - page 17

Table of Content
9
The following table sets forth information about our Mid-Continent region operations, including non-GAAP performance measures.
Years Ended December 31,
2014 2013 2012
Mid-Continent Region (El Dorado and Tulsa Refineries)
Crude charge (BPD) (1) 243,240 234,930 248,360
Refinery throughput (BPD) (2) 255,020 257,030 269,760
Refinery production (BPD) (3) 249,350 251,470 263,310
Sales of produced refined products (BPD) 245,600 247,030 254,350
Sales of refined products (BPD) (4) 273,630 269,790 258,020
Refinery utilization (5) 93.6% 90.4% 95.5%
Average per produced barrel (6)
Net sales $ 110.79 $ 115.63 $ 119.19
Cost of products (7) 98.39 99.35 95.77
Refinery gross margin (8) 12.40 16.28 23.42
Refinery operating expenses (9) 5.73 5.50 4.83
Net operating margin (8) $ 6.67 $ 10.78 $ 18.59
Refinery operating expenses per throughput barrel (10) $ 5.52 $ 5.29 $ 4.55
Feedstocks:
Sweet crude oil 71% 69% 70%
Sour crude oil 11% 6% 8%
Heavy sour crude oil 14% 16% 14%
Other feedstocks and blends 4% 9% 8%
Total 100% 100% 100%
Footnote references are provided under our Consolidated Refinery Operating Data table on page 8.
The El Dorado Refinery is located on 1,100 acres south of El Dorado, Kansas and is a fully integrated refinery. The principal
processing units at the El Dorado Refinery consist of crude and vacuum distillation; hydrodesulfurization of naphtha, kerosene,
diesel, and gas oil streams; isomerization; catalytic reforming; aromatics recovery; catalytic cracking; alkylation; delayed coking;
hydrogen production; and sulfur recovery. Refining operations began at the site in 1917 and the operating units now present include
both newly constructed units and older units that have been upgraded over the years. Supporting infrastructure includes maintenance
shops, warehouses, office buildings, a laboratory, utility facilities, and a wastewater plant (“Supporting Infrastructure”) and logistics
assets owned by HEP, which includes approximately 3.6 million barrels of tankage, a truck sales terminal, and a propane terminal.
The Tulsa West facility is located on a 750-acre site in Tulsa, Oklahoma situated along the Arkansas River. The principal processing
units at the Tulsa West facility consist of crude and vacuum distillation (with light ends recovery), naphtha hydrodesulfurization,
catalytic reforming, propane de-asphalting, lubes extraction, MEK dewaxing, delayed coker and butane splitter units. Most of the
operating units at the facility currently in service were built in the late 1950s and early 1960s. The refinery was reconfigured to
emphasize specialty lubricant production in the early 1990s. The Tulsa West facility's Supporting Infrastructure includes
approximately 3.2 million barrels of feedstock and product tankage, of which 0.4 million barrels of tankage is owned by Plains
All American Pipeline, L.P. (“Plains”).
The Tulsa East facility is located on a 466-acre site also in Tulsa, Oklahoma situated along the Arkansas River. The principal
process units at the Tulsa East facility consist of crude and vacuum distillation, naphtha hydrodesulfurization, FCC, isomerization,
catalytic reforming, alkylation, scanfiner, diesel hydrodesulfurization and sulfur units. The Tulsa East facility's Supporting
Infrastructure includes approximately 3.4 million barrels of tankage owned by HEP.
Markets and Competition
The primary markets for the El Dorado Refinery's refined products are Colorado and the Plains States, which include the Kansas
City metropolitan area. The gasoline, diesel and jet fuel produced by the El Dorado Refinery are primarily shipped via pipeline
to terminals for distribution by truck or rail. We ship product via the NuStar Pipeline Operating Partnership L.P. Pipeline to the
northern Plains States, via the Magellan Pipeline Company, L.P. (“Magellan”) mountain pipeline to Denver, Colorado, and on the
Magellan mid-continent pipeline to the Plains States.