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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________________
FORM 10-Q
_________________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from    __________   to   ____________         
Commission File Number 1-3876
 _________________________________________________________________
HOLLYFRONTIER CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 
75-1056913
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer Identification No.)
2828 N. Harwood, Suite 1300
 
 
Dallas
 
 
Texas
 
75201
(Address of principal executive offices)
 
(Zip Code)
(214) 871-3555
(Registrant’s telephone number, including area code)
_________________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to 12(b) of the Securities Exchange Act of 1934:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock $0.01 par value
HFC
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
161,389,721 shares of Common Stock, par value $.01 per share, were outstanding on October 25, 2019.


Table of Content

HOLLYFRONTIER CORPORATION
INDEX
 
 
Page
 
 
 
 
 
 
PART I. FINANCIAL INFORMATION
 
 
 
 
 
 
 
September 30, 2019 (Unaudited) and December 31, 2018
 
 
 
Three and Nine Months Ended September 30, 2019 and 2018
 
 
 
Three and Nine Months Ended September 30, 2019 and 2018
 
 
 
Nine Months Ended September 30, 2019 and 2018
 
 
 
Three and Nine Months Ended September 30, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index to Exhibits
 
 
Signatures


Table of Content

FORWARD-LOOKING STATEMENTS

References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In this document, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. This document contains certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries.

This Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the federal securities laws. All statements, other than statements of historical fact included in this Form 10-Q, including, but not limited to, those under “Results of Operations,” “Liquidity and Capital Resources” and “Risk Management” in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and those in Part II, Item 1 “Legal Proceedings” are forward-looking statements. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. These statements are based on management’s 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. All statements concerning our expectations for future results of operations are based on forecasts for our existing operations and do not include the potential impact of any future acquisitions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you 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. Any differences could be caused by a number of factors including, but not limited to:

risks and uncertainties with respect to the actions of actual or potential competitive suppliers of refined petroleum products in our markets;
the demand for and supply of crude oil and refined products;
the spread between market prices for refined products and market prices for crude oil;
the possibility of constraints on the transportation of refined products;
the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines;
effects of governmental and environmental regulations and policies;
the availability and cost of our financing;
the effectiveness of our capital investments and marketing strategies;
our efficiency in carrying out construction projects;
our ability to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations;
the possibility of terrorist or cyber 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 our SEC filings.

Cautionary statements identifying important factors that could cause actual results to differ materially from our expectations are set forth in this Form 10-Q, including without limitation, the forward-looking statements that are referred to above. This summary discussion should be read in conjunction with the discussion of the known material risk factors and other cautionary statements under the heading “Risk Factors” included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2018 and in conjunction with the discussion in this Form 10-Q in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “Liquidity and Capital Resources.” All forward-looking statements included in this Form 10-Q and all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

3

Table of Content

DEFINITIONS

Within this report, the following terms have these specific meanings:

BPD” means the number of barrels per calendar day of crude oil or petroleum products.

BPSD” means the number of barrels per stream day (barrels of capacity in a 24 hour period) of crude oil or petroleum products.

Base oil” is a lubricant grade oil initially produced from refining crude oil or through chemical synthesis that is used in producing lubricant products such as lubricating greases, motor oil and metal processing fluids.

Black wax crude oil” is a low sulfur, low gravity crude oil produced in the Uintah Basin in Eastern Utah that has certain characteristics that require specific facilities to transport, store and refine into transportation fuels.

Cracking” means the process of breaking down larger, heavier and more complex hydrocarbon molecules into simpler and lighter molecules.

Crude oil distillation” means the process of distilling vapor from liquid crudes, usually by heating, and condensing the vapor slightly above atmospheric pressure turning it back to liquid in order to purify, fractionate or form the desired products.

FCC,” or fluid catalytic cracking, means a refinery process that breaks down large complex hydrocarbon molecules into smaller more useful ones using a circulating bed of catalyst at relatively high temperatures.

LPG” means liquid petroleum gases.

Lubricant” or “lube” means a solvent neutral paraffinic product used in commercial heavy duty engine oils, passenger car oils and specialty products for industrial applications such as heat transfer, metalworking, rubber and other general process oil.

MMBTU” means one million British thermal units.

Rack back” represents the portion of our Lubricants and Specialty Products business operations that entails the processing of feedstocks into base oils.

Rack forward” represents the portion of our Lubricants and Specialty Products business operations that entails the processing of base oils into finished lubricants and the packaging, distribution and sale to customers.

Refinery gross margin” means the difference between average net sales price and average cost per barrel sold. This does not include the associated depreciation and amortization costs.

“RINs” means renewable identification numbers and refers to serial numbers assigned to credits generated from renewable fuel production under the Environmental Protection Agency’s Renewable Fuel Standard (“RFS”) regulations, which require blending renewable fuels into the nation’s fuel supply. In lieu of blending, refiners may purchase these transferable credits in order to comply with the regulations.

Sour crude oil” means crude oil containing quantities of sulfur greater than 0.4 percent by weight, while “sweet crude oil” means crude oil containing quantities of sulfur equal to or less than 0.4 percent by weight.

Vacuum distillation” means the process of distilling vapor from liquid crudes, usually by heating, and condensing the vapor below atmospheric pressure turning it back to a liquid in order to purify, fractionate or form the desired products.

“White oil” is an extremely pure, highly-refined petroleum product that has a wide variety of applications ranging from pharmaceutical to cosmetic products.

“WTI” means West Texas Intermediate and is a grade of crude oil used as a common benchmark in oil pricing. WTI is a sweet crude oil and has a relatively low density.



4

Table of Content

PART I. FINANCIAL INFORMATION

Item 1.
Financial Statements
HOLLYFRONTIER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
 
 
September 30,
2019
 
December 31, 2018
 
 
(Unaudited)
 
 
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents (HEP: $7,469 and $3,045, respectively)
 
$
981,856

 
$
1,154,752

 
 
 
 
 
Accounts receivable: Product and transportation (HEP: $16,182 and $12,332, respectively)
 
811,355

 
635,623

Crude oil resales
 
28,476

 
36,078

 
 
839,831

 
671,701

Inventories: Crude oil and refined products
 
1,429,911

 
1,166,404

Materials, supplies and other (HEP: $883 and $858, respectively)
 
207,148

 
187,975

 
 
1,637,059

 
1,354,379

Income taxes receivable
 
23,591

 
34,040

Prepayments and other (HEP: $3,896 and $3,452, respectively)
 
50,429

 
81,507

Total current assets
 
3,532,766

 
3,296,379

 
 
 
 
 
Properties, plants and equipment, at cost (HEP: $2,042,185 and $2,058,388, respectively)
 
7,134,025

 
6,780,980

Less accumulated depreciation (HEP: $(535,215) and $(489,217), respectively)
 
(2,336,637
)
 
(2,098,446
)
 
 
4,797,388

 
4,682,534

Operating lease right-of-use assets (HEP: $3,454)
 
453,377

 

 
 
 
 
 
Other assets: Turnaround costs
 
405,043

 
339,861

Goodwill (HEP: $312,873 and $314,229, respectively)
 
2,370,406

 
2,246,435

Intangibles and other (HEP: $166,743 and $176,291, respectively)
 
632,348

 
429,392

 
 
3,407,797

 
3,015,688

Total assets
 
$
12,191,328

 
$
10,994,601

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable (HEP: $12,809 and $16,723, respectively)
 
$
1,229,767

 
$
872,627

Income taxes payable
 
18,782

 
17,636

Operating lease liabilities (HEP: $5,384)
 
99,622

 

Accrued liabilities (HEP: $28,669 and $27,240, respectively)
 
357,175

 
277,892

Total current liabilities
 
1,705,346

 
1,168,155

 
 
 
 
 
Long-term debt (HEP: $1,431,869 and $1,418,900, respectively)
 
2,425,234

 
2,411,540

Noncurrent operating lease liabilities (HEP: $71,022)
 
355,410

 

Deferred income taxes (HEP: $423 and $488, respectively)
 
916,520

 
722,576

Other long-term liabilities (HEP: $60,482 and $63,534, respectively)
 
247,455

 
233,271

 
 
 
 
 
Equity:
 
 
 
 
HollyFrontier stockholders’ equity:
 
 
 
 
Preferred stock, $1.00 par value – 5,000,000 shares authorized; none issued
 

 

Common stock $.01 par value – 320,000,000 shares authorized; 256,036,760 and 256,036,788 shares issued as of September 30, 2019 and December 31, 2018, respectively
 
2,560

 
2,560

Additional capital
 
4,224,770

 
4,196,125

Retained earnings
 
4,740,677

 
4,196,902

Accumulated other comprehensive income
 
17,217

 
13,623

Common stock held in treasury, at cost – 94,174,173 and 83,915,297 shares as of September 30, 2019 and December 31, 2018, respectively
 
(2,965,016
)
 
(2,490,639
)
Total HollyFrontier stockholders’ equity
 
6,020,208

 
5,918,571

Noncontrolling interest
 
521,155

 
540,488

Total equity
 
6,541,363

 
6,459,059

Total liabilities and equity
 
$
12,191,328

 
$
10,994,601

Parenthetical amounts represent asset and liability balances attributable to Holly Energy Partners, L.P. (“HEP”) as of September 30, 2019 and December 31, 2018. HEP is a variable interest entity.

See accompanying notes.

5

Table of Content

HOLLYFRONTIER CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)

 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
4,424,828

 
$
4,770,799

 
$
13,104,690

 
$
13,370,462

Operating costs and expenses:
 
 
 
 
 
 
 
 
Cost of products sold (exclusive of depreciation and amortization):
 
 
 
 
 
 
 
 
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)
 
3,403,767

 
3,752,234

 
10,307,856

 
10,695,275

Lower of cost or market inventory valuation adjustment
 
34,062

 
17,837

 
(150,483
)
 
(192,927
)
 
 
3,437,829

 
3,770,071

 
10,157,373

 
10,502,348

Operating expenses (exclusive of depreciation and amortization)
 
345,578

 
317,196

 
1,010,422

 
933,699

Selling, general and administrative expenses (exclusive of depreciation and amortization)
 
87,626

 
71,130

 
260,977

 
204,469

Depreciation and amortization
 
127,016

 
108,885

 
375,345

 
323,605

Goodwill impairment
 

 

 
152,712

 

Total operating costs and expenses
 
3,998,049

 
4,267,282

 
11,956,829

 
11,964,121

Income from operations
 
426,779

 
503,517

 
1,147,861

 
1,406,341

Other income (expense):
 
 
 
 
 
 
 
 
Earnings of equity method investments
 
1,334

 
1,114

 
5,217

 
4,127

Interest income
 
6,164

 
5,136

 
17,127

 
10,660

Interest expense
 
(36,027
)
 
(32,399
)
 
(106,938
)
 
(97,446
)
Gain on foreign currency transactions
 
395

 
281

 
4,873

 
5,516

Other, net
 
2,356

 
741

 
3,005

 
3,451

 
 
(25,778
)
 
(25,127
)
 
(76,716
)
 
(73,692
)
Income before income taxes
 
401,001

 
478,390

 
1,071,145

 
1,332,649

Income tax expense:
 
 
 
 
 
 
 
 
Current
 
58,255

 
70,595

 
176,903

 
216,529

Deferred
 
44,766

 
45,663

 
102,959

 
102,213

 
 
103,021

 
116,258

 
279,862

 
318,742

Net income
 
297,980

 
362,132

 
791,283

 
1,013,907

Less net income attributable to noncontrolling interest
 
36,167

 
19,666

 
79,500

 
57,843

Net income attributable to HollyFrontier stockholders
 
$
261,813

 
$
342,466

 
$
711,783

 
$
956,064

Earnings per share attributable to HollyFrontier stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
1.60

 
$
1.95

 
$
4.23

 
$
5.42

Diluted
 
$
1.58

 
$
1.93

 
$
4.20

 
$
5.37

Average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
163,676

 
175,097

 
167,935

 
175,865

Diluted
 
165,011

 
176,927

 
169,125

 
177,557


See accompanying notes.

6

Table of Content

HOLLYFRONTIER CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In thousands)
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Net income
 
$
297,980

 
$
362,132

 
$
791,283

 
$
1,013,907

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
(9,311
)
 
8,325

 
4,212

 
(15,118
)
Hedging instruments:
 
 
 
 
 
 
 
 
Change in fair value of cash flow hedging instruments
 
(1,989
)
 
4,161

 
12,909

 
(4,242
)
Reclassification adjustments to net income on settlement of cash flow hedging instruments
 
(5,573
)
 
1,631

 
(12,537
)
 
6,038

Net unrealized gain (loss) on hedging instruments
 
(7,562
)
 
5,792

 
372

 
1,796

Other comprehensive income (loss) before income taxes
 
(16,873
)
 
14,117

 
4,584

 
(13,322
)
Income tax expense (benefit)
 
(3,888
)
 
3,234

 
990

 
(2,677
)
Other comprehensive income (loss)
 
(12,985
)
 
10,883

 
3,594

 
(10,645
)
Total comprehensive income
 
284,995

 
373,015

 
794,877

 
1,003,262

Less noncontrolling interest in comprehensive income
 
36,167

 
19,666

 
79,500

 
57,843

Comprehensive income attributable to HollyFrontier stockholders
 
$
248,828

 
$
353,349

 
$
715,377

 
$
945,419


See accompanying notes.


7

Table of Content

HOLLYFRONTIER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 
 
Nine Months Ended September 30,
 
 
2019
 
2018
Cash flows from operating activities:
 
 
 
 
Net income
 
$
791,283

 
$
1,013,907

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
375,345

 
323,605

Goodwill impairment
 
152,712

 

Lower of cost or market inventory valuation adjustment
 
(150,483
)
 
(192,927
)
Earnings of equity method investments, inclusive of distributions
 
280

 
463

(Gain) loss on sale of assets
 
202

 
(52
)
Deferred income taxes
 
102,959

 
102,213

Equity-based compensation expense
 
30,635

 
26,096

Change in fair value – derivative instruments
 
19,880

 
(3,007
)
(Increase) decrease in current assets:
 
 
 
 
Accounts receivable
 
(116,793
)
 
(136,764
)
Inventories
 
(47,409
)
 
(33,856
)
Income taxes receivable
 
13,704

 
27,792

Prepayments and other
 
17,710

 
(14,089
)
Increase (decrease) in current liabilities:
 
 
 
 
Accounts payable
 
321,537

 
(37,160
)
Income taxes payable
 
808

 
76,277

Accrued liabilities
 
54,779

 
84,328

Turnaround expenditures
 
(152,431
)
 
(114,593
)
Other, net
 
(3,314
)
 
7,664

Net cash provided by operating activities
 
1,411,404

 
1,129,897

 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
Additions to properties, plants and equipment
 
(171,229
)
 
(167,967
)
Additions to properties, plants and equipment – HEP
 
(23,828
)
 
(41,111
)
Purchase of Sonneborn, net of cash acquired
 
(662,665
)
 

Purchase of Red Giant Oil, net of cash acquired
 

 
(54,088
)
Other, net
 
958

 
3,999

Net cash used for investing activities
 
(856,764
)
 
(259,167
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
Borrowings under credit agreements
 
269,500

 
256,000

Repayments under credit agreements
 
(257,000
)
 
(347,000
)
Proceeds from issuance of common units - HEP
 

 
114,887

Purchase of treasury stock
 
(471,976
)
 
(177,710
)
Dividends
 
(168,008
)
 
(175,921
)
Distributions to noncontrolling interest
 
(100,095
)
 
(93,128
)
Payments on finance leases
 
(1,158
)
 

Other, net
 
(600
)
 
(544
)
Net cash used for financing activities
 
(729,337
)
 
(423,416
)
 
 
 
 
 
Effect of exchange rate on cash flow
 
1,801

 
(2,394
)
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
Increase (decrease) for the period
 
(172,896
)
 
444,920

Beginning of period
 
1,154,752

 
630,757

End of period
 
$
981,856

 
$
1,075,677

 
 
 
 
 
Supplemental disclosure of cash flow information:
 
 
 
 
Cash paid during the period for:
 
 
 
 
Interest
 
$
(93,929
)
 
$
(89,553
)
Income taxes, net
 
$
(163,232
)
 
$
(112,520
)

See accompanying notes.

8


HOLLYFRONTIER CORPORATION
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
(In thousands)

 
HollyFrontier Stockholders' Equity
 
 
 
 
 
Common Stock
 
 Additional Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income
 
Treasury stock
 
Non-controlling Interest
 
Total
Equity
 
 
Balance at December 31, 2018
$
2,560

 
$
4,196,125

 
$
4,196,902

 
$
13,623

 
$
(2,490,639
)
 
$
540,488

 
$
6,459,059

Net income

 

 
253,055

 

 

 
23,431

 
276,486

Dividends ($0.33 declared per common share)

 

 
(56,849
)
 

 

 

 
(56,849
)
Distributions to noncontrolling interest holders

 

 

 

 

 
(33,673
)
 
(33,673
)
Other comprehensive income, net of tax

 

 

 
13,775

 

 

 
13,775

Issuance of common stock under incentive compensation plans, net of tax

 
3

 

 

 
(3
)
 

 

Equity-based compensation

 
8,713

 

 

 

 
661

 
9,374

Purchase of treasury stock

 

 

 

 
(73,225
)
 

 
(73,225
)
Purchase of HEP units for restricted grants

 

 

 

 

 
(373
)
 
(373
)
Balance at March 31, 2019
$
2,560

 
$
4,204,841

 
$
4,393,108

 
$
27,398

 
$
(2,563,867
)
 
$
530,534

 
$
6,594,574

Net income

 

 
196,915

 

 

 
19,902

 
216,817

Dividends ($0.33 declared per common share)

 

 
(56,659
)
 

 

 

 
(56,659
)
Distributions to noncontrolling interest holders

 

 

 

 

 
(33,030
)
 
(33,030
)
Other comprehensive income, net of tax

 

 

 
2,804

 

 

 
2,804

Equity attributable to HEP common unit issuances, net of tax

 

 

 

 

 
(140
)
 
(140
)
Issuance of common stock under incentive compensation plans, net of tax

 
(138
)
 

 

 
138

 

 

Equity-based compensation

 
11,602

 

 

 

 
586

 
12,188

Purchase of treasury stock

 

 

 

 
(205,555
)
 

 
(205,555
)
Balance at June 30, 2019
$
2,560

 
$
4,216,305

 
$
4,533,364

 
$
30,202

 
$
(2,769,284
)
 
$
517,852

 
$
6,530,999

Net income

 

 
261,813

 

 

 
36,167

 
297,980

Dividends ($0.33 declared per common share)

 

 
(54,500
)
 

 

 

 
(54,500
)
Distributions to noncontrolling interest holders

 

 

 

 

 
(33,392
)
 
(33,392
)
Other comprehensive loss, net of tax

 

 

 
(12,985
)
 

 

 
(12,985
)
Issuance of common stock under incentive compensation plans, net of tax

 
(80
)
 

 

 
80

 

 

Equity-based compensation

 
8,545

 

 

 

 
528

 
9,073

Purchase of treasury stock

 

 

 

 
(195,812
)
 

 
(195,812
)
Balance at September 30, 2019
$
2,560

 
$
4,224,770

 
$
4,740,677

 
$
17,217

 
$
(2,965,016
)
 
$
521,155

 
$
6,541,363




9


 
HollyFrontier Stockholders' Equity
 
 
 
 
 
Common Stock
 
 Additional Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income
 
Treasury stock
 
Non-controlling Interest
 
Total
Equity
 
 
Balance at December 31, 2017
$
2,560

 
$
4,132,696

 
$
3,346,615

 
$
29,869

 
$
(2,140,911
)
 
$
526,111

 
$
5,896,940

Net income

 

 
268,091

 

 

 
20,771

 
288,862

Dividends ($0.33 declared per common share)

 

 
(58,856
)
 

 

 

 
(58,856
)
Distributions to noncontrolling interest holders

 

 

 

 

 
(29,237
)
 
(29,237
)
Other comprehensive loss, net of tax

 

 

 
(13,580
)
 

 

 
(13,580
)
Equity attributable to HEP common unit issuances, net of tax

 
41,980

 

 

 

 
58,031

 
100,011

Issuance of common stock under incentive compensation plans, net of tax

 
1,057

 

 

 
(1,057
)
 

 

Equity-based compensation

 
7,961

 

 

 

 
836

 
8,797

Purchase of treasury stock

 

 

 

 
(27,520
)
 

 
(27,520
)
Purchase of HEP units for restricted grants

 

 

 

 

 
(58
)
 
(58
)
Adoption of accounting standards

 

 
(11,019
)
 
3,572

 

 

 
(7,447
)
Other

 
1

 
(1
)
 

 

 

 

Balance at March 31, 2018
$
2,560

 
$
4,183,695

 
$
3,544,830

 
$
19,861

 
$
(2,169,488
)
 
$
576,454

 
$
6,157,912

Net income

 

 
345,507

 

 

 
17,406

 
362,913

Dividends ($0.33 declared per common share)

 

 
(58,644
)
 

 

 

 
(58,644
)
Distributions to noncontrolling interest holders

 

 

 

 

 
(31,522
)
 
(31,522
)
Other comprehensive loss, net of tax

 

 

 
(7,948
)
 

 

 
(7,948
)
Equity attributable to HEP common unit issuances, net of tax

 
221

 

 

 

 
232

 
453

Issuance of common stock under incentive compensation plans, net of tax

 
335

 

 

 
(335
)
 

 

Equity-based compensation

 
7,797

 

 

 

 
712

 
8,509

Purchase of treasury stock

 

 

 

 
(28,030
)
 

 
(28,030
)
Other

 
(3
)
 
3

 

 

 

 

Balance at June 30, 2018
$
2,560

 
$
4,192,045

 
$
3,831,696

 
$
11,913

 
$
(2,197,853
)
 
$
563,282

 
$
6,403,643

Net income

 

 
342,466

 

 

 
19,666

 
362,132

Dividends ($0.33 declared per common share)

 

 
(58,421
)
 

 

 

 
(58,421
)
Distributions to noncontrolling interest holders