HollyFrontier Corporation Provides Business Update Related to COVID-19
“The health and safety of our employees, communities, and contractors remains our top priority as we navigate this challenging environment,” commented
HollyFrontieris limiting onsite staff at all of our facilities to essential operational personnel only. As a result, the Company is carefully evaluating projects at the refinery and limiting or postponing non-essential projects and contractor work.
- Based on market conditions, the Refining segment is currently running at approximately 70% of capacity.
In Lubricants and Specialty Products, the Company is withdrawing 2020 guidance for
Rack Forwarddue to lack of visibility around global end market demand.
Capital Expenditures Update:
The Company is reducing total consolidated capital expenditures by approximately 15% to a range of
$525– 625 million from its previously announced guidance of $623– 729 million.
HollyFrontierremains committed to the strategic goal of producing renewable fuels and will continue with construction of the Renewable Diesel Unit at our Artesia refinery.
HollyFrontierwill continue to evaluate market conditions and make further changes as circumstances dictate.
HollyFrontier’s standalone (excluding HEP) liquidity stood at over
$2.2 billionconsisting of a cash balance of approximately $900 millionand undrawn $1.35 billioncredit facility maturing in 2022.
HollyFrontier’s earliest standalone (excluding HEP) debt maturity is
$1 billionof Senior Notes due 2026, rated investment grade by S&P, Moody’s and Fitch.
- HollyFrontier’s standalone (excluding HEP) debt to capital ratio was 14% and net-debt to capital ratio was 1%.
“We understand the critical role
HFC Forward Looking Statement:
The statements contained herein relating to matters that are not historical facts are "forward-looking statements" within the meaning of the federal securities laws, including statements with respect to our strategic goals and capital expenditures. These statements are based on our beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. Although we believe that such expectations reflected in such forward-looking statements are reasonable, we cannot give assurance that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. These risks and uncertainties include, among other things, various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the COVID-19 pandemic. Such risk and uncertainties include, but not limited to:
• uncertainty regarding the length of time it will take for
• risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum or lubricant products in
• the demand for and supply of crude oil, refined products and lubricant products;
• uncertainty regarding actions by foreign and domestic suppliers of crude oil;
• the spread between market prices for refined products and market prices for crude oil;
• the possibility of constraints on the transportation of refined products or lubricants;
• the possibility of inefficiencies, curtailments or shutdowns in refinery or lubricants operations or pipelines;
• effects of governmental and environmental regulations and policies;
• the availability and cost of financing to
• the effectiveness of
• the ability of
• the possibility of terrorist attacks and the consequences of any such attacks;
• general economic conditions; and
• other financial, operational and legal risks and uncertainties detailed from time to time in
The forward-looking statements speak only as of the date made and, other than as required by law,
Director, Investor Relations