HollyFrontier 2014 Annual Report Download - page 58

Table of Content
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Reconciliation of average refinery operating expenses per produced barrel sold to total operating expenses
Years Ended December 31,
2014 2013 2012
(Dollars in thousands, except per barrel amounts)
Consolidated
Average refinery operating expenses per produced barrel sold $ 6.38 $ 6.15 $ 5.49
Times sales of produced refined products (BPD) 420,990 410,730 431,060
Times number of days in period 365 365 366
Refinery operating expenses for produced products sold $ 980,359 $ 921,986 $ 866,146
Total refinery operating expenses for produced products sold $ 980,359 $ 921,986 $ 866,146
Add refining segment pension settlement costs — 31,657 —
Add other refining segment operating expenses and rounding (5) 42,810 39,812 37,231
Total refining segment operating expenses 1,023,169 993,455 903,377
Add HEP segment operating expenses 104,801 97,081 89,395
Add corporate and other costs 18,402 1,739 2,721
Subtract consolidations and eliminations (1,432) (1,425) (527)
Operating expenses (exclusive of depreciation and amortization) $ 1,144,940 $ 1,090,850 $ 994,966
Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues
Years Ended December 31,
2014 2013 2012
(Dollars in thousands, except per barrel amounts)
Consolidated
Net operating margin per barrel $ 7.60 $ 9.84 $ 19.40
Add average refinery operating expenses per produced barrel 6.38 6.15 5.49
Refinery gross margin per barrel 13.98 15.99 24.89
Add average cost of products per produced barrel sold 96.21 99.61 94.59
Average sales price per produced barrel sold $ 110.19 $ 115.60 $ 119.48
Times sales of produced refined products sold (BPD) 420,990 410,730 431,060
Times number of days in period 365 365 366
Produced refined product sales $ 16,931,944 $ 17,330,342 $ 18,850,116
Total produced refined product sales $ 16,931,944 $ 17,330,342 $ 18,850,116
Add refined product sales from purchased products and rounding (1) 1,566,925 1,581,395 572,206
Total refined product sales 18,498,869 18,911,737 19,422,322
Add direct sales of excess crude oil (2) 1,060,354 1,052,915 505,971
Add other refining segment revenue (3) 147,002 140,791 114,662
Total refining segment revenue 19,706,225 20,105,443 20,042,955
Add HEP segment sales and other revenues 332,626 307,053 288,501
Add corporate and other revenues 2,103 1,314 1,048
Subtract consolidations and eliminations (276,627) (253,250) (241,780)
Sales and other revenues $ 19,764,327 $ 20,160,560 $ 20,090,724
(1) We purchase finished products when opportunities arise that provide a profit on the sale of such products, 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 NK Asphalt and miscellaneous revenue.
(4) Other refining segment cost of products sold includes the incremental cost of products for NK Asphalt and miscellaneous costs.
(5) Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses
of NK Asphalt.