HollyFrontier 2014 Annual Report Download - page 49

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Table of Content
41
Cash Flows – Investing Activities and Planned Capital Expenditures
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Net cash flows used for investing activities were $292.3 million for the year ended December 31, 2014 compared to $526.7 million
for the year ended December 31, 2013, a decrease of $234.4 million. Cash expenditures for properties, plants and equipment for
2014 increased to $564.8 million from $425.1 million for the same period in 2013. These include HEP capital expenditures of
$79.8 million and $51.9 million for the years ended December 31, 2014 and 2013, respectively. We received proceeds of $16.6
million and $7.8 million from the sale of assets during the years ended December 31, 2014 and 2013, respectively. For the year
ended December 31, 2013, we acquired trucking operations for $11.3 million. Also for the years ended December 31, 2014 and
2013, we invested $1,025.6 million and $935.5 million, respectively, in marketable securities and received proceeds of $1,276.4
million and $846.1 million, respectively, from the sale or maturity of marketable securities.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Net cash flows used for investing activities were $526.7 million for the year ended December 31, 2013 compared to $711.1 million
for the year ended December 31, 2012, a decrease of $184.4 million. Cash expenditures for properties, plants and equipment for
2013 increased to $425.1 million from $335.3 million for the same period in 2012. These include HEP capital expenditures of
$51.9 million and $44.9 million for the years ended December 31, 2013 and 2012, respectively. In addition, for the year ended
December 31, 2013, we received proceeds of $7.8 million from the sale of property and equipment and acquired trucking operations
for $11.3 million. Also for the years ended December 31, 2013 and 2012, we invested $935.5 million and $671.6 million,
respectively, in marketable securities and received proceeds of $846.1 million and $297.7 million, respectively, from the sale or
maturity of marketable securities.
Planned Capital Expenditures
HollyFrontier Corporation
Each year our Board of Directors approves our annual capital budget which includes specific projects that management is authorized
to undertake. Additionally, when conditions warrant or as new opportunities arise, additional projects may be approved. The funds
appropriated for a particular capital project may be expended over a period of several years, depending on the time required to
complete the project. Therefore, our planned capital expenditures for a given year consist of expenditures appropriated in that
year’s capital budget plus expenditures for projects appropriated in prior years which have not yet been completed. Our appropriated
capital budget for 2015 is $137.0 million including both sustaining capital and major capital projects. We expect to spend
approximately $600.0 million to $650.0 million in cash for capital projects appropriated in 2015 and prior years. In addition, we
expect to spend approximately $45.0 million on refinery turnarounds and $27.0 million on tank work. Refinery turnaround spending
is amortized over the useful life of the turnaround. Our new capital appropriation for 2015 and expected cash spending is as follows:
New Appropriation Expected Cash Spending
Range
(In millions)
Location:
El Dorado $ 17.0 $ 145.0 – $ 157.0
Tulsa 43.0 97.0 – 105.0
Navajo 19.0 37.0 – 40.0
Cheyenne 25.0 94.0 – 102.0
Woods Cross 14.0 208.0 – 225.0
Corporate and Other 19.0 19.0 – 21.0
Total $ 137.0 $ 600.0 – $ 650.0
Type:
Sustaining $ 93.0 $ 113.0 – $ 123.0
Reliability and Growth 13.0 312.0 – 338.0
Compliance and Safety 31.0 175.0 – 189.0
Total $ 137.0 $ 600.0 – $ 650.0