Cover Page
Cover Page | Sep. 12, 2022 |
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Sep. 12, 2022 |
Entity Registrant Name | HF SINCLAIR CORP |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-41325 |
Entity Tax Identification Number | 87-2092143 |
Entity Address, Address Line One | 2828 N. Harwood |
Entity Address, Address Line Two | Suite 1300 |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75201 |
City Area Code | 214 |
Local Phone Number | 871-3555 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock $0.01 par value |
Trading Symbol | DINO |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001915657 |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents (HEP: $14,381 and $21,990, respectively) | $ 234,444 | $ 1,368,318 |
Accounts receivable: Product and transportation (HEP: $12,745 and $14,543, respectively) | 1,130,485 | 590,526 |
Crude oil resales | 111,403 | 39,510 |
Accounts receivable, total | 1,241,888 | 630,036 |
Inventories: Crude oil and refined products | 1,879,131 | 989,296 |
Materials, supplies and other (HEP: $1,070 and $895, respectively) | 242,997 | 184,180 |
Total inventory | 2,122,128 | 1,173,476 |
Income taxes receivable | 97,382 | 91,348 |
Prepayments and other (HEP: $5,381 and $8,591, respectively) | 66,612 | 47,583 |
Total current assets | 3,762,454 | 3,310,761 |
Properties, plants and equipment, at cost (HEP: $2,037,527 and $2,119,295, respectively) | 8,448,207 | 7,299,517 |
Less accumulated depreciation (HEP: $(682,143) and $(644,149)), respectively) | (3,033,353) | (2,726,378) |
Property, plant and equipment, net | 5,414,854 | 4,573,139 |
Operating lease right-of-use assets (HEP: $69,134 and $72,480, respectively) | 396,191 | 350,548 |
Other assets: Turnaround costs | 397,385 | 314,816 |
Goodwill (HEP: $312,873 and $312,873, respectively) | 2,293,044 | 2,293,935 |
Intangibles and other (HEP: $214,436 and $224,430, respectively) | 652,685 | 663,665 |
Other assets, total | 3,343,114 | 3,272,416 |
Total assets | 12,916,613 | 11,506,864 |
Current liabilities: | ||
Accounts payable (HEP: $28,954 and $28,565, respectively) | 1,613,484 | 1,000,959 |
Income taxes payable | 25,156 | 1,801 |
Operating lease liabilities (HEP $3,710 and $3,827, respectively) | 110,606 | 97,937 |
Accrued liabilities (HEP: $18,479 and $29,518, respectively) | 316,218 | 274,459 |
Total current liabilities | 2,065,464 | 1,375,156 |
Long-term debt (HEP: $1,333,049 and $1,405,603, respectively) | 3,072,737 | 3,142,718 |
Noncurrent operating lease liabilities (HEP $65,799 and $68,454, respectively) | 308,747 | 285,785 |
Deferred income taxes (HEP: $396 and $449, respectively) | 837,401 | 713,703 |
Other long-term liabilities (HEP: $43,033 and $55,105, respectively) | 337,799 | 267,299 |
Commitments and contingencies (Note 19) | ||
HollyFrontier stockholders’ equity: | ||
Preferred stock, $1.00 par value – 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock $0.01 par value – 320,000,000 shares authorized; 256,046,051 shares issued as of December 31, 2021 and December 31, 2020 | 2,560 | 2,560 |
Additional capital | 4,220,075 | 4,207,672 |
Retained earnings | 4,413,836 | 3,913,179 |
Accumulated other comprehensive income | 2,671 | 13,462 |
Common stock held in treasury, at cost - 93,044,605 and 93,632,391 shares as of December 31, 2021 and December 31, 2020, respectively | (2,951,257) | (2,968,512) |
Total HollyFrontier stockholders’ equity | 5,687,885 | 5,168,361 |
Noncontrolling interest | 606,580 | 553,842 |
Total equity | 6,294,465 | 5,722,203 |
Total liabilities and equity | $ 12,916,613 | $ 11,506,864 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | $ 234,444 | $ 1,368,318 |
Accounts receivable: product and transportation | 1,130,485 | 590,526 |
Inventories: materials, supplies and other | 242,997 | 184,180 |
Prepayments and other | 66,612 | 47,583 |
Properties, plants and equipment, at cost | 8,448,207 | 7,299,517 |
Accumulated depreciation | (3,033,353) | (2,726,378) |
Operating lease right-of-use assets | 396,191 | 350,548 |
Goodwill | 2,293,044 | 2,293,935 |
Intangibles and other (HEP: $214,436 and $224,430, respectively) | 652,685 | 663,665 |
Accounts payable | 1,613,484 | 1,000,959 |
Operating lease liabilities | 110,606 | 97,937 |
Accrued liabilities | 316,218 | 274,459 |
Long-term debt | 3,072,737 | 3,142,718 |
Noncurrent operating lease liabilities | 308,747 | 285,785 |
Deferred income taxes | 837,401 | 713,703 |
Other long-term liabilities | $ 337,799 | $ 267,299 |
Preferred stock par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 256,046,051 | 256,046,051 |
Common stock held in treasury (in shares) | 93,044,605 | 93,632,391 |
Variable Interest Entity | ||
Cash and cash equivalents | $ 14,381 | $ 21,990 |
Accounts receivable: product and transportation | 12,745 | 14,543 |
Inventories: materials, supplies and other | 1,070 | 895 |
Prepayments and other | 5,381 | 8,591 |
Properties, plants and equipment, at cost | 2,037,527 | 2,119,295 |
Accumulated depreciation | (682,143) | (644,149) |
Operating lease right-of-use assets | 69,134 | 72,480 |
Goodwill | 312,873 | 312,873 |
Intangibles and other (HEP: $214,436 and $224,430, respectively) | 214,436 | 224,430 |
Accounts payable | 28,954 | 28,565 |
Operating lease liabilities | 3,710 | 3,827 |
Accrued liabilities | 18,479 | 29,518 |
Long-term debt | 1,333,049 | 1,405,603 |
Noncurrent operating lease liabilities | 65,799 | 68,454 |
Deferred income taxes | 396 | 449 |
Other long-term liabilities | $ 43,033 | $ 55,105 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Sales and other revenues | $ 18,389,142,000 | $ 11,183,643,000 | $ 17,486,578,000 |
Operating costs and expenses: | |||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 15,567,052,000 | 9,158,805,000 | 13,918,384,000 |
Lower of cost or market inventory valuation adjustment | (310,123,000) | 78,499,000 | (119,775,000) |
Cost of products sold (exclusive of depreciation and amortization) | 15,256,929,000 | 9,237,304,000 | 13,798,609,000 |
Operating expenses (exclusive of depreciation and amortization) | 1,517,478,000 | 1,300,277,000 | 1,394,052,000 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 362,010,000 | 313,600,000 | 354,236,000 |
Depreciation and amortization | 503,539,000 | 520,912,000 | 509,925,000 |
Goodwill and long-lived asset impairments | 0 | 545,293,000 | 152,712,000 |
Total operating costs and expenses | 17,639,956,000 | 11,917,386,000 | 16,209,534,000 |
Income (loss) from operations | 749,186,000 | (733,743,000) | 1,277,044,000 |
Other income (expense): | |||
Earnings of equity method investments | 12,432,000 | 6,647,000 | 5,180,000 |
Interest income | 4,019,000 | 7,633,000 | 22,139,000 |
Interest expense | (125,175,000) | (126,527,000) | (143,321,000) |
Gain on business interruption insurance settlement | 0 | 81,000,000 | 0 |
Gain on tariff settlement | 51,500,000 | 0 | 0 |
Gain on sales-type leases | 0 | 33,834,000 | 0 |
Loss on early extinguishment of debt | 0 | (25,915,000) | 0 |
Gain (loss) on foreign currency transactions | (2,938,000) | 2,201,000 | 5,449,000 |
Gain on sale of assets and other | 98,128,000 | 7,824,000 | 5,013,000 |
Other income (expense) total | 37,966,000 | (13,303,000) | (105,540,000) |
Income (loss) before income taxes | 787,152,000 | (747,046,000) | 1,171,504,000 |
Income tax expense (benefit): | |||
Current | (4,672,000) | (55,420,000) | 220,486,000 |
Deferred | 128,570,000 | (176,727,000) | 78,666,000 |
Income tax expense (benefit) total | 123,898,000 | (232,147,000) | 299,152,000 |
Net income (loss) | 663,254,000 | (514,899,000) | 872,352,000 |
Less net income attributable to noncontrolling interest | 104,930,000 | 86,549,000 | 99,964,000 |
Net income (loss) attributable to HollyFrontier stockholders | $ 558,324,000 | $ (601,448,000) | $ 772,388,000 |
Earnings (loss) per share: | |||
Basic (in USD per share) | $ 3.39 | $ (3.72) | $ 4.64 |
Diluted (in USD per share) | $ 3.39 | $ (3.72) | $ 4.61 |
Average number of common shares outstanding: | |||
Average number of shares of common stock outstanding - basic (in shares) | 162,569 | 161,983 | 166,287 |
Average number of shares of common stock outstanding - diluted (in shares) | 162,569 | 161,983 | 167,385 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income (loss) | $ 663,254 | $ (514,899) | $ 872,352 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (13,336) | 6,226 | 13,337 |
Change in fair value of cash flow hedging instruments | (17,548) | (7,475) | 14,364 |
Reclassification adjustments to net income (loss) on settlement of cash flow hedging instruments | 17,579 | 2,604 | (19,713) |
Net unrealized gain (loss) on hedging instruments | 31 | (4,871) | (5,349) |
Net change in pension and other post-retirement benefit obligations | (457) | (3,461) | (7,207) |
Other comprehensive income (loss) before income taxes | (13,762) | (2,106) | 781 |
Income tax benefit | (2,971) | (794) | (370) |
Other comprehensive income (loss) | (10,791) | (1,312) | 1,151 |
Total comprehensive income (loss) | 652,463 | (516,211) | 873,503 |
Less noncontrolling interest in comprehensive income | 104,930 | 86,549 | 99,964 |
Comprehensive income (loss) attributable to HollyFrontier stockholders | 547,533 | (602,760) | 773,539 |
Pension obligations | |||
Other comprehensive income (loss): | |||
Actuarial gain (loss) on plan | 2,104 | 1,862 | (990) |
Plan gain reclassified to net income | (407) | (422) | 0 |
Post-retirement healthcare obligations | |||
Other comprehensive income (loss): | |||
Actuarial gain (loss) on plan | 1,133 | (1,129) | (2,412) |
Plan gain reclassified to net income | (3,328) | (3,564) | (3,587) |
Retirement restoration plan | |||
Other comprehensive income (loss): | |||
Actuarial gain (loss) on retirement restoration plan | 2 | (230) | (224) |
Retirement restoration plan loss reclassified to net income (loss) | $ 39 | $ 22 | $ 6 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 663,254,000 | $ (514,899,000) | $ 872,352,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 503,539,000 | 520,912,000 | 509,925,000 |
Goodwill and long-lived asset impairments | 0 | 545,293,000 | 152,712,000 |
Lower of cost or market inventory valuation adjustment | (310,123,000) | 78,499,000 | (119,775,000) |
Earnings of equity method investments, inclusive of distributions | 0 | 1,084,000 | (213,000) |
Loss on early extinguishment of debt | 0 | 25,915,000 | 0 |
Gain on sales-type leases | 0 | (33,834,000) | 0 |
(Gain) loss on sale of assets | (89,765,000) | (201,000) | 50,000 |
Deferred income taxes | 128,570,000 | (176,727,000) | 78,666,000 |
Equity-based compensation expense | 39,273,000 | 31,654,000 | 42,269,000 |
Change in fair value – derivative instruments | (34,096,000) | 26,456,000 | 36,888,000 |
(Increase) decrease in current assets: | |||
Accounts receivable | (614,407,000) | 254,684,000 | (150,437,000) |
Inventories | (344,559,000) | 230,142,000 | 91,599,000 |
Income taxes receivable | (6,415,000) | (85,442,000) | 32,368,000 |
Prepayments and other | (18,672,000) | (2,541,000) | 3,633,000 |
Increase (decrease) in current liabilities: | |||
Accounts payable | 612,410,000 | (241,765,000) | 312,794,000 |
Income taxes payable | 23,158,000 | (25,897,000) | 9,048,000 |
Accrued liabilities | 83,602,000 | (85,708,000) | 13,748,000 |
Turnaround expenditures | (214,431,000) | (94,692,000) | (318,415,000) |
Other, net | (14,656,000) | 4,998,000 | (18,601,000) |
Net cash provided by operating activities | 406,682,000 | 457,931,000 | 1,548,611,000 |
Cash flows from investing activities: | |||
Additions to properties, plants and equipment | (725,073,000) | (270,877,000) | (263,651,000) |
Acquisitions, net of cash acquired | (624,332,000) | 0 | (662,665,000) |
Investment in equity company | 0 | (2,438,000) | (17,886,000) |
Proceeds from sale of assets | 106,357,000 | 1,554,000 | 194,000 |
Distributions in excess of equity in earnings of equity investments | 4,165,000 | 882,000 | 1,206,000 |
Net cash used for investing activities | (1,327,219,000) | (330,162,000) | (972,914,000) |
Cash flows from financing activities: | |||
Borrowings under credit agreements | 555,500,000 | 258,500,000 | 365,500,000 |
Repayments under credit agreements | (629,000,000) | (310,500,000) | (323,000,000) |
Proceeds from issuance of senior notes | 0 | 748,925,000 | 0 |
Purchase of treasury stock | (7,058,000) | (7,642,000) | (533,083,000) |
Dividends | (57,663,000) | (229,493,000) | (225,170,000) |
Distributions to noncontrolling interest | (75,395,000) | (89,001,000) | (132,268,000) |
Contribution from noncontrolling interests | 23,194,000 | 23,899,000 | 3,210,000 |
Payments on finance leases | (3,990,000) | (2,995,000) | (1,551,000) |
Deferred financing costs | (14,500,000) | (15,538,000) | 0 |
Other, net | (2,891,000) | (429,000) | (1,893,000) |
Net cash provided by (used for) financing activities | (211,803,000) | 353,226,000 | (848,255,000) |
Effect of exchange rate on cash flow | (1,534,000) | 2,161,000 | 2,968,000 |
Cash and cash equivalents: | |||
Increase (decrease) for the period | (1,133,874,000) | 483,156,000 | (269,590,000) |
Beginning of period | 1,368,318,000 | 885,162,000 | 1,154,752,000 |
End of period | 234,444,000 | 1,368,318,000 | 885,162,000 |
Cash (paid) received during the period for: | |||
Interest | (136,429,000) | (120,257,000) | (133,809,000) |
Income taxes, net | (19,760,000) | ||
Income taxes, net | (54,256,000) | (178,967,000) | |
Increase (decrease) in accrued and unpaid capital expenditures | (15,319,000) | 73,867,000 | 19,752,000 |
HEP | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on early extinguishment of debt | 25,900,000 | ||
Cash flows from investing activities: | |||
Additions to properties, plants and equipment | (88,336,000) | (59,283,000) | (30,112,000) |
Cash flows from financing activities: | |||
Proceeds from issuance of senior notes | 0 | 500,000,000 | 0 |
Redemption of senior notes | $ 0 | $ (522,500,000) | $ 0 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2018 | $ 6,459,059 | $ 2,560 | $ 4,196,125 | $ 4,196,902 | $ 13,623 | $ (2,490,639) | $ 540,488 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 872,352 | 772,388 | 99,964 | ||||
Dividends | (225,170) | (225,170) | |||||
Distributions to noncontrolling interest holders | (132,268) | (132,268) | |||||
Other comprehensive income (loss), net of tax | 1,151 | 1,151 | |||||
Equity attributable to HEP common unit issuances, net of tax | (139) | (139) | |||||
Issuance of common stock under incentive compensation plans | (31,314) | 31,314 | |||||
Equity-based compensation | 42,269 | 39,736 | 2,533 | ||||
Purchase of treasury stock | (528,483) | (528,483) | |||||
Purchase of HEP units for restricted grants | (1,893) | (1,893) | |||||
Contributions from noncontrolling interests | 22,548 | 22,548 | |||||
Balance at end of period at Dec. 31, 2019 | 6,509,426 | 2,560 | 4,204,547 | 4,744,120 | 14,774 | (2,987,808) | 531,233 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (514,899) | (601,448) | 86,549 | ||||
Dividends | (229,493) | (229,493) | |||||
Distributions to noncontrolling interest holders | (89,001) | (89,001) | |||||
Other comprehensive income (loss), net of tax | (1,312) | (1,312) | |||||
Issuance of common stock under incentive compensation plans | (26,938) | 26,938 | |||||
Equity-based compensation | 31,654 | 29,460 | 2,194 | ||||
Purchase of treasury stock | (7,642) | (7,642) | |||||
Purchase of HEP units for restricted grants | (1,032) | (1,032) | |||||
Contributions from noncontrolling interests | 23,899 | 23,899 | |||||
Other | 603 | 603 | |||||
Balance at end of period at Dec. 31, 2020 | 5,722,203 | 2,560 | 4,207,672 | 3,913,179 | 13,462 | (2,968,512) | 553,842 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 663,254 | 558,324 | 104,930 | ||||
Dividends | (57,663) | (57,663) | |||||
Distributions to noncontrolling interest holders | (75,395) | (75,395) | |||||
Other comprehensive income (loss), net of tax | (10,791) | (10,791) | |||||
Issuance of common stock under incentive compensation plans | (24,313) | 24,313 | |||||
Equity-based compensation | 39,273 | 36,716 | 2,557 | ||||
Purchase of treasury stock | (7,058) | (7,058) | |||||
Purchase of HEP units for restricted grants | (2,548) | (2,548) | |||||
Contributions from noncontrolling interests | 23,194 | 23,194 | |||||
Other | (4) | (4) | |||||
Balance at end of period at Dec. 31, 2021 | $ 6,294,465 | $ 2,560 | $ 4,220,075 | $ 4,413,836 | $ 2,671 | $ (2,951,257) | $ 606,580 |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in USD per share) | $ 0.35 | $ 1.40 | $ 1.34 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business: 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 Annual Report on Form 10-K has been written in the first person. In these financial statements, 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. These financial statements contain 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. We are an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products and specialty and modified asphalt. As of December 31, 2021, we owned and operated petroleum refineries located in Kansas, Oklahoma, New Mexico, Utah and Washington, and we market our refined products principally in the Southwest United States, the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, we produce base oils and other specialized lubricants in the United States, Canada and the Netherlands, with retail and wholesale marketing of our products through a global sales network with locations in Canada, the United States, Europe, China and Latin America. Through our subsidiaries, we are constructing renewable diesel units at two of our facilities in Wyoming and New Mexico that will process renewable feedstocks into renewable diesel and a pre-treatment unit at our facility in New Mexico that will process renewable feedstocks for the units. We also own a 57% limited partner interest and a non-economic general partner interest in HEP, a variable interest entity (“VIE”). HEP owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. On August 2, 2021, HollyFrontier, Hippo Parent Corporation, a wholly owned subsidiary of HollyFrontier (“New Parent”), Hippo Merger Sub, Inc., a wholly owned subsidiary of New Parent, The Sinclair Companies (“Sinclair”), and Hippo Holding LLC, a wholly owned subsidiary of Sinclair (the “Target Company”), entered into a business combination agreement, pursuant to which HollyFrontier will acquire the Target Company. On May 4, 2021, HollyFrontier Puget Sound Refining LLC, a wholly owned subsidiary of HollyFrontier Corporation, entered into a sale and purchase agreement with Equilon Enterprises LLC d/b/a Shell Oil Products US (“Shell”) to acquire Shell’s Puget Sound refinery and related assets, including the on-site cogeneration facility and related logistics assets (the “Puget Sound Refinery”). The acquisition closed on November 1, 2021. On November 12, 2018, we entered into an equity purchase agreement to acquire 100% of the issued and outstanding capital stock of Sonneborn US Holdings Inc. and 100% of the membership rights in Sonneborn Coöperatief U.A. (collectively, “Sonneborn”). The acquisition closed on February 1, 2019. See Note 2 for additional information on these acquisitions. On April 27, 2021, our wholly owned subsidiary, 7037619 Canada Inc., entered into a contract for sale of real property in Mississauga, Ontario for base consideration of $98.8 million, or CAD 125 million. The transaction closed on September 15, 2021, and we recorded a gain on sale of assets totaling $86.0 million for the year ended December 31, 2021, which was recognized in “Gain on sale of assets and other” on our consolidated statements of operations. During the first quarter of 2021, we initiated a restructuring within our Lubricants and Specialty Products segment. As a result of this restructuring, we recorded $7.8 million in employee severance costs for the year ended December 31, 2021, which were recognized primarily as selling, general and administrative expenses in our Lubricants and Specialty Products segment. In the third quarter of 2020, we permanently ceased petroleum refining operations at our Cheyenne, Wyoming refinery (the “Cheyenne Refinery”) and subsequently began converting certain assets at our Cheyenne Refinery to renewable diesel production. In connection with the cessation of petroleum refining operations at our Cheyenne Refinery, we recognized $25.8 million in decommissioning expense and $1.0 million in employee severance costs for the year ended December 31, 2021, which were recognized in operating expenses in our Corporate and Other segment. During the second quarter of 2020, we recorded long-lived asset impairment charges o f $232.2 million related to our Cheyenne Refinery asset group. Also, we recognized $24.7 million in decommissioning expense and $3.8 million in employee severance costs for the year ended December 31, 2020. Additionally, we recorded a reserve of $9.0 million against our repair and maintenance supplies inventory. These decommissioning, inventory reserve and severance costs were recognized in operating expenses, of which $24.8 million was recorded in our Refining segment and $12.7 million was recorded in our Corporate and Other segment. During the second quarter of 2020, we also initiated and completed a corporate restructuring. As a result of this restructuring, we recorded $3.7 million in employee severance costs, which were recognized primarily as operating expenses in our Refining segment and selling, general and administrative expenses in our Corporate and Other segment. Principles of Consolidation: Our consolidated financial statements include our accounts and the accounts of partnerships and joint ventures that we control through an ownership interest greater than 50% or through a controlling financial interest with respect to variable interest entities. All significant intercompany transactions and balances have been eliminated. Variable Interest Entities: HEP is a VIE as defined under U.S. generally accepted accounting principles (“GAAP”). A VIE is a legal entity whose equity owners do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the equity holders lack the power, through voting rights, to direct the activities that most significantly impact the entity's financial performance, the obligation to absorb the entity's expected losses or rights to expected residual returns. As the general partner of HEP, we have the sole ability to direct the activities of HEP that most significantly impact HEP's financial performance, and therefore as HEP's primary beneficiary, we consolidate HEP. In 2019, HEP Cushing LLC, a wholly-owned subsidiary of HEP, and Plains Marketing, L.P., a wholly-owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC. Cushing Connect Pipeline & Terminal LLC and its two subsidiaries, Cushing Connect Pipeline and Cushing Connect Terminal, are each VIE’s because they do not have sufficient equity at risk to finance their activities without additional financial support. HEP is the primary beneficiary of two of these entities as HEP constructed and operates the Cushing Connect Pipeline, and HEP has more ability to direct the activities that most significantly impact the financial performance of Cushing Connect Pipeline & Terminal LLC and Cushing Connect Pipeline. Therefore, HEP consolidates these two entities. HEP is not the primary beneficiary of Cushing Connect Terminal, which HEP accounts for using the equity method of accounting. Use of Estimates : The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash Equivalents: We consider all highly liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates market value and are primarily invested in highly-rated instruments issued by government or municipal entities with strong credit standings. Balance Sheet Offsetting : We purchase and sell inventories of crude oil with certain same-parties that are net settled in accordance with contractual net settlement provisions. Our policy is to present such balances on a net basis since it presents our accounts receivables and payables consistent with our contractual settlement provisions. Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer's financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for expected credit losses based on our historical loss experience as well as expected credit losses from current economic conditions and management’s expectations of future economic conditions. Credit losses are charged to the allowance for expected credit losses when an account is deemed uncollectible. Our allowance for expected credit losses was $3.7 million at December 31, 2021 and $3.4 million at December 31, 2020. Accounts receivable attributable to crude oil resales generally represent the sale of excess crude oil to other purchasers and / or users in cases when our crude oil supplies are in excess of our immediate needs as well as certain reciprocal buy / sell exchanges of crude oil. At times we enter into such buy / sell exchanges to facilitate the delivery of quantities to certain locations. In many cases, we enter into net settlement agreements relating to the buy / sell arrangements, which may mitigate credit risk. Inventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. Inventories related to our renewable business are stated at the lower of cost, using the LIFO method for feedstock and unfinished and finished renewable products, or market. Cost, consisting of raw material, transportation and conversion costs, is determined using the LIFO inventory valuation methodology and market is determined using current replacement costs. Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation. Inventories of our Petro-Canada Lubricants and Sonneborn businesses are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value. Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value. Leases: At inception, we determine if an arrangement is or contains a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our payment obligation under the leasing arrangement. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in “Operating lease right-of-use assets” and current and noncurrent “Operating lease liabilities” on our consolidated balance sheet. Finance leases are included in “Properties, plants and equipment, at cost” and “Accrued liabilities” and “Other long-term liabilities” on our consolidated balance sheet. Our lease term includes an option to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet. For certain equipment leases, we apply a portfolio approach for the operating lease ROU assets and liabilities. Also, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations. In addition, HEP, as a lessor, does not separate the non-lease (service) component in contracts in which the lease component is the dominant component. HEP treats these combined components as an operating lease. Derivative Instruments: All derivative instruments are recognized as either assets or liabilities on our consolidated balance sheets and are measured at fair value. Changes in the derivative instrument's fair value are recognized in earnings unless specific hedge accounting criteria are met. Cash flows from all our derivative activity are reported in the operating section on our consolidated statement of cash flows. See Note 14 for additional information. Properties, Plants and Equipment: Properties, plants and equipment are stated at cost. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 32 years for refining, pipeline and terminal facilities, 10 to 40 years for buildings and improvements, 5 to 30 years for other fixed assets and 5 years for vehicles. Asset Retirement Obligations: We record legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and / or the normal operation of long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded as a liability with the associated retirement costs capitalized as part of the asset's carrying amount in the period in which it is incurred and when a reasonable estimate of the fair value of the liability can be made. If a reasonable estimate cannot be made at the time the liability is incurred, we record the liability when sufficient information is available to estimate the liability's fair value. Certain of our refining assets have no recorded liability for asset retirement obligations since the timing of any retirement and related costs are currently indeterminable. Our asset retirement obligations were $52.5 million and $42.6 million at December 31, 2021 and 2020, respectively, which are included in “Other long-term liabilities” on our consolidated balance sheets. Accretion expense was insignificant for the years ended December 31, 2021, 2020 and 2019. Asset retirement obligations assumed in the Puget Sound Acquisition, as defined in Note 2, were $8.5 million. Intangibles, Goodwill and Long-lived Assets: Intangible assets are assets (other than financial assets) that lack physical substance, and goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill acquired in a business combination and intangibles with indefinite useful lives are not amortized, whereas intangible assets with finite useful lives are amortized on a straight-line basis. Goodwill and intangible assets that are not subject to amortization are tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the carrying amount of the reporting unit is greater than its fair value, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the related fair value. The carrying amount of our intangible assets and goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill and intangible assets assigned to our Lubricants and Specialty Products segment. For purposes of long-lived asset impairment evaluation, we group our long-lived assets as follows: (i) our refinery asset groups, which include certain HEP logistics assets, (ii) our Lubricants and Specialty Products asset groups and (iii) our HEP asset groups, which comprises HEP assets not included in our refinery asset groups. These asset groups represent the lowest level for which independent cash flows can be identified. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. See Note 11 for additional information regarding our goodwill and long-lived assets including impairment charges recorded during the years ended December 31, 2020 and 2019. Equity Method Investments: We account for investments in which we have a noncontrolling interest, yet have significant influence over the entity, using the equity method of accounting, whereby we record our pro-rata share of earnings and contributions to and distributions from joint ventures as adjustments to our investment balance. HEP has a 50% interest in Osage Pipe Line Company, LLC and a 50% interest in Cheyenne Pipeline, LLC. HEP also accounts for Cushing Connect Terminal, a subsidiary of the Cushing Connect Pipeline & Terminal LLC joint venture, using the equity method of accounting, as HEP does not have the ability to direct the activities that most significantly impact the entity. As of December 31, 2021, HEP's underlying equity and recorded investment balances in the joint ventures are $90.8 million and $116.4 million respectively. The differences are being amortized as adjustments to HEP's pro-rata share of earnings in the joint ventures. Revenue Recognition: Revenues on refined product and excess crude oil sales are recognized when delivered (via pipeline, in-tank or rack) and the customer obtains control of such inventory, which is typically when title passes and the customer is billed. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported as cost of products sold. Our lubricants and specialty products business has sales agreements with marketers and distributors that provide certain rights of return or provisions for the repurchase of products previously sold to them. Under these agreements, revenues and cost of revenues are deferred until the products have been sold to end customers. Our lubricants and specialty products business also has agreements that create an obligation to deliver products at a future date for which consideration has already been received and recorded as deferred revenue. This revenue is recognized when the products are delivered to the customer. HEP recognizes revenues as products are shipped through its pipelines and terminals and as other services are rendered. Additionally, HEP has certain throughput agreements that specify minimum volume requirements, whereby HEP bills a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, HEP recognizes these deficiency payments as revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. HEP recognizes the service portion of these deficiency payments as revenue when HEP does not expect it will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 30 days of the date of invoice. Cost Classifications: Costs of products sold include the cost of crude oil, other feedstocks, blendstocks and purchased finished products, inclusive of transportation costs. 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 cost of products sold. Additionally, 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. Operating expenses include direct costs of labor, maintenance materials and services, utilities and other direct operating costs. Selling, general and administrative expenses include compensation, professional services and other support costs. Deferred Maintenance Costs: Our refinery units require regular major maintenance and repairs which are commonly referred to as “turnarounds.” Catalysts used in certain refinery processes also require regular “change-outs.” The required frequency of the maintenance varies by unit and by catalyst, but generally is every two Environmental Costs: Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. We have ongoing investigations of environmental matters at various locations and routinely assess our recorded environmental obligations, if any, with respect to such matters. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable. Contingencies: We are subject to proceedings, lawsuits and other claims related to environmental, labor, product and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. We accrue for contingencies when it is probable that a loss has occurred and when the amount of that loss is reasonably estimable. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. Foreign Currency Translation: Assets and liabilities recorded in foreign currencies are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income. We have intercompany notes that were issued to fund certain of our foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing amounts to functional currencies are recorded as gains or losses as a component of other income (expense) on our consolidated statements of operations. Such adjustments are not recorded to the Lubricants and Specialty Products segment operations, but to Corporate and Other. See Note 20 for additional information on our segments. Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. We account for U.S. tax on global intangible low-taxed income in the period in which it is incurred. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. Inventory Repurchase Obligations: We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as inventory repurchase obligations that are subsequently reversed when the inventories are repurchased. For the years ended December 31, 2021, 2020 and 2019, we received proceeds of $43.5 million, $44.9 million and $52.1 million and subsequently repaid $45.4 million, $46.4 million and $49.2 million, respectively, under these sell / buy transactions. Accounting Pronouncements - Not Yet Adopted In October 2021, Accounting Standards Update 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” was issued requiring that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” This standard is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. We will evaluate the impact of this standard and consider early adoption, if applicable. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Puget Sound Refinery On May 4, 2021, our wholly owned subsidiary, HollyFrontier Puget Sound Refining LLC, entered into a sale and purchase agreement with Shell to acquire the Puget Sound Refinery. The acquisition closed on November 1, 2021 for aggregate cash consideration of $624.3 million, which consists of a base cash purchase price of $350.0 million, hydrocarbon inventory of $277.9 million and other closing adjustments and accrued liabilities of $3.6 million (the “Puget Sound Acquisition”). This transaction was accounted for as a business combination, using the acquisition method, with the aggregate cash consideration allocated to the acquisition date fair value of assets and liabilities acquired. In connection with the Puget Sound Acquisition, we incurred $12.2 million of acquisition and integration costs during the year ended December 31, 2021, which are included in selling, general and administrative expenses on the consolidated statement of operations. The following summarizes the Puget Sound Refinery fair value of assets acquired and liabilities assumed on November 1, 2021: (In thousands) Assets Acquired Inventories: Crude oil and refined products $ 277,887 Inventories: Materials, supplies and other 21,460 Properties, plants and equipment (1) 394,237 Other assets 10,400 Total assets acquired $ 703,984 Liabilities Assumed Accrued and other current liabilities (1) $ 12,524 Other long-term liabilities (1) 67,128 Total liabilities assumed 79,652 Net assets acquired $ 624,332 (1) Properties, plant and equipment include $61.5 million of financing lease ROU assets. Current and noncurrent financing lease liabilities were $7.9 million and $53.6 million, respectively. The fair value measurements for properties, plants and equipment were based on significant inputs that are not observable in the market and, therefore, represent Level 3 measurements. The fair value of properties, plants and equipment was based on the combination of the cost and market approaches. Key assumptions in the cost approach include determining the replacement cost by evaluating recent published data and adjusting replacement cost for economic and functional obsolescence. We used the market approach to measure the value of certain assets through an analysis of recent sales or offerings of comparable properties. The fair value of crude oil and refined products inventory was based on market prices as of the acquisition date. Our consolidated financial and operating results reflect the Puget Sound Refinery operations beginning November 1, 2021. Our results of operations include revenue and loss from operations of $603.1 million and $8.3 million, respectively, for the period from November 1, 2021 through December 31, 2021 related to these operations. The following unaudited pro forma combined condensed financial data for the years ended December 31, 2021 and 2020 was derived from our historical financial statements giving effect to the Puget Sound Acquisition as if it had occurred on January 1, 2020. The below information reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including the depreciation of the Puget Sound Refinery’s fair-valued properties, plants and equipment and the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings include certain non-recurring charges, the substantial majority of which consist of transaction costs related to financial advisors, legal advisors, financial advisory and professional accounting services. The pro forma results of operations do not include any cost savings or other synergies that may result from the Puget Sound Acquisition. The pro forma combined condensed financial data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Puget Sound Acquisition taken place on January 1, 2020 and is not intended to be a projection of future results. Years Ended December 31, 2021 2020 (In thousands) Sales and other revenues $ 21,476,142 $ 13,183,620 Net income (loss) attributable to HollyFrontier stockholders $ 601,210 $ (802,234) The following pro forma information for the years ended December 31, 2021 and 2020 presents the revenues and operating income (loss) for our Refining segment assuming the Puget Sound Acquisition had occurred on January 1, 2020. Years Ended December 31, 2021 2020 (In thousands) Sales and other revenues $ 19,445,558 $ 11,539,166 Income (loss) from operations $ 509,450 $ (934,061) Sinclair HFC Transactions: On August 2, 2021, HollyFrontier, Hippo Parent Corporation, a wholly owned subsidiary of HollyFrontier (“New Parent”), Hippo Merger Sub, Inc., a wholly owned subsidiary of New Parent (“Parent Merger Sub”), The Sinclair Companies (“Sinclair”), and Hippo Holding LLC, a wholly owned subsidiary of Sinclair (the “Target Company”), entered into a business combination agreement (the “Business Combination Agreement”). Pursuant to the Business Combination Agreement, HollyFrontier will acquire the Target Company by effecting (a) a holding company merger in accordance with Section 251(g) of the Delaware General Corporation Law whereby HollyFrontier will merge with and into Parent Merger Sub, with HollyFrontier surviving such merger as a direct wholly owned subsidiary of New Parent (the “HFC Merger”) and (b) immediately following the HFC Merger, a contribution whereby Sinclair will contribute all of the equity interests of the Target Company to New Parent in exchange for shares of New Parent, resulting in the Target Company becoming a direct wholly owned subsidiary of New Parent (the “Sinclair Oil Acquisition” and together with the HFC Merger, the “HFC Transactions”). Under the terms of the Business Combination Agreement, at the effective time of the HFC Merger, (a) each share of common stock of HollyFrontier, par value $0.01 per share, will be automatically converted into one share of common stock of New Parent, par value $0.01 per share (“New Parent Common Stock”) and (b) immediately thereafter, Sinclair will contribute the equity interests in the Target Company to New Parent in exchange for 60,230,036 shares of New Parent Common Stock, subject to adjustment if, as a condition to obtaining antitrust clearance for the Sinclair Transactions (as defined below), HollyFrontier agrees to divest certain Woods Cross Refinery assets and the sales price for such assets does not exceed a threshold provided in the Business Combination Agreement. On a pro forma basis following the closing, Sinclair is expected to own 26.75% of the outstanding common stock of New Parent, and HollyFrontier’s current stockholders are expected to hold in the aggregate 73.25% of the outstanding common stock of New Parent, based on HollyFrontier’s outstanding shares of common stock as of July 30, 2021. Consummation of the HFC Transactions is subject to satisfaction or waiver of certain customary conditions, including, among others, the satisfaction of certain required regulatory consents and approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (the “HSR Act”); and the consummation of the HEP Transactions (as defined below), which will occur immediately prior to the HFC Transactions (the HEP Transactions, together with the HFC Transactions, the “Sinclair Transactions”). On August 23, 2021, each of HollyFrontier and Sinclair filed its respective premerger notification and report regarding the Sinclair Transactions with the U.S. Department of Justice and the U.S. Federal Trade Commission (the “FTC”) under the HSR Act. On September 22, 2021, HollyFrontier and Sinclair each received a request for additional information and documentary material (“Second Request”) from the FTC in connection with the FTC’s review of the Sinclair Transactions. Issuance of the Second Request extends the waiting period under the HSR Act until 30 days after both HollyFrontier and Sinclair have substantially complied with the Second Request, unless the waiting period is terminated earlier by the FTC or the parties otherwise commit not to close the Sinclair Transactions for some additional period of time. HollyFrontier and Sinclair are cooperating with the FTC staff in its review and are working diligently to satisfy the closing conditions as soon as possible. The Business Combination Agreement automatically terminates if the HEP Transactions are terminated and contains other customary termination rights. In the event that certain events occur under specified circumstances outlined in the Business Combination Agreement, HollyFrontier could be required to pay Sinclair a termination fee equal to $200 million or $35 million as reimbursement for expenses. Upon closing of the Sinclair Transactions, HollyFrontier’s existing senior management team will operate the combined company. Under the definitive agreements, Sinclair will be granted the right to nominate two directors to the New Parent board of directors at the closing. The Sinclair stockholders have also agreed to certain customary lock up, voting and standstill restrictions, as well as customary registration rights, for the New Parent Common Stock to be issued to the stockholders of Sinclair. The new company will be headquartered in Dallas, Texas, with combined business offices in Salt Lake City, Utah. Following the consummation of the HFC Merger, New Parent will assume HollyFrontier’s listing on the New York Stock Exchange and will be renamed “HF Sinclair Corporation”. HEP Transactions: On August 2, 2021, HEP, Sinclair, and Sinclair Transportation Company, a wholly owned subsidiary of Sinclair (“STC”), entered into a contribution agreement (the “Contribution Agreement”) pursuant to which the Partnership will acquire all of the outstanding shares of STC in exchange for 21 million newly issued common limited partner units of HEP and cash consideration equal to $325 million (the “HEP Transactions”). The cash consideration for the HEP Transactions is subject to customary adjustments at closing for working capital of STC. The number of HEP common limited partner units to be issued to Sinclair at closing is subject to downward adjustment if, as a condition to obtaining antitrust clearance for the Sinclair Transactions, HEP agrees to divest a portion of its equity interest in UNEV Pipeline, LLC and the sales price for such interests does not exceed the threshold provided in the Contribution Agreement. The Contribution Agreement contains customary representations, warranties and covenants of HEP, Sinclair and STC. The HEP Transactions are expected to close in 2022, subject to the satisfaction or waiver of certain customary conditions, including, among others, the receipt of certain required regulatory consents and approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and the consummation of the HFC Transactions. The Contribution Agreement automatically terminates if the HFC Transactions are terminated and contains other customary termination rights, including a termination right for each of the Partnership and Sinclair if, under certain circumstances, the closing does not occur by May 2, 2022 (the “Outside Date”), except that the Outside Date can be extended by either party by up to two 90 day periods to obtain any required antitrust clearance. Upon closing of the HEP Transactions, HEP’s existing senior management team will continue to operate HEP. Under the definitive agreements, Sinclair will be granted the right to nominate one director to the HEP board of directors at the closing. The Sinclair stockholders have also agreed to certain customary lock up restrictions and registration rights for the HEP common limited partner units to be issued to the stockholders of Sinclair. HEP will continue to operate under the name Holly Energy Partners, L.P. On August 2, 2021, in connection with the Sinclair Transactions, HEP and HollyFrontier entered into a Letter Agreement (“Letter Agreement”) pursuant to which, among other things, HEP and HollyFrontier agreed, upon the consummation of the Sinclair Transactions, to enter into amendments to certain of the agreements by and among HEP and HollyFrontier, including the master throughput agreement, to include within the scope of such agreements the assets to be acquired by HEP pursuant to the Contribution Agreement. In addition, the Letter Agreement provides that if, as a condition to obtaining antitrust clearance for the Sinclair Transactions, HollyFrontier enters into a definitive agreement to divest its Woods Cross Refinery, then HEP would sell certain assets located at, or relating to, the Woods Cross Refinery to HollyFrontier in exchange for cash consideration equal to $232.5 million plus the certain accounts receivable of HEP in respect of such assets, with such sale to be effective immediately prior to the closing of the sale of the Woods Cross Refinery by HollyFrontier. The Letter Agreement also provides that HEP’s right to future revenues from HollyFrontier in respect of such Woods Cross Refinery assets will terminate at the closing of such sale. Sonneborn On November 12, 2018, we entered into an equity purchase agreement to acquire Sonneborn. The acquisition closed on February 1, 2019. Aggregate consideration totaled $701.6 million and consisted of $662.7 million in cash paid at acquisition, net of cash acquired. Sonneborn is a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. This transaction was accounted for as a business combination using the acquisition method of accounting, with the purchase price allocated to the fair value of the acquired Sonneborn assets and liabilities as of the February 1, 2019 acquisition date, with the excess purchase price recorded as goodwill. This goodwill was assigned to our Lubricants and Specialty Products segment and is not deductible for income tax purposes. Fair values were as follows: cash and cash equivalents $38.9 million, current assets $139.4 million, properties, plants and equipment $168.2 million, goodwill $282.3 million, intangibles and other noncurrent assets $231.5 million, current liabilities $47.9 million and deferred income tax and other long-term liabilities $110.8 million. Intangibles included customer relationships, trademarks, patents and technical know-how totaling $214.6 million that are being amortized on a straight-line basis over a 12-year period. Our consolidated financial and operating results reflect the Sonneborn operations beginning February 1, 2019. Our results of operations include revenue and income before income taxes of $340.3 million and $5.1 million, respectively, for the period from February 1, 2019 through December 31, 2019 related to these operations. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee We have operating and finance leases for land, buildings, pipelines, storage tanks, transportation and other equipment for our operations. Our leases have remaining terms of one to 58 years, some of which include options to extend the leases for up to 10 years. Certain of our leases for pipeline assets include provisions for variable payments which are based on a measure of throughput and also contain a provision for the lessor to adjust the rate per barrel periodically over the life of the lease. These variable costs are not included in the initial measurement of ROU assets and lease liabilities. The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheets. December 31, 2021 2020 (In thousands) Operating leases: Operating lease right-of-use assets $ 396,191 $ 350,548 Operating lease liabilities 110,606 97,937 Noncurrent operating lease liabilities 308,747 285,785 Total operating lease liabilities $ 419,353 $ 383,722 Finance leases: Properties, plants and equipment, at cost $ 75,885 $ 24,321 Accumulated amortization (8,945) (5,713) Properties, plants and equipment, net $ 66,940 $ 18,608 Accrued liabilities $ 10,510 $ 1,916 Other long-term liabilities 56,556 5,097 Total finance lease liabilities $ 67,066 $ 7,013 Supplemental balance sheet information related to our leases was as follows: December 31, 2021 2020 Weighted average remaining lease term (in years) Operating leases 7.4 7.2 Finance leases 8.6 3.3 Weighted average discount rate Operating leases 3.8 % 4.1 % Finance leases 3.9 % 5.3 % The components of lease expense were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Operating lease expense $ 117,292 $ 121,608 $ 112,770 Finance lease expense: Amortization of right-of-use assets 4,295 4,400 1,543 Interest on lease liabilities 733 415 334 Variable lease cost 3,645 3,580 4,449 Total lease expense $ 125,965 $ 130,003 $ 119,096 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 129,577 $ 126,313 $ 116,980 Operating cash flows from finance leases $ 733 $ 415 $ 334 Financing cash flows from finance leases $ 3,990 $ 2,995 $ 1,551 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 147,718 $ 18,823 $ 121,750 Finance leases $ 64,334 $ 4,085 $ 2,096 As of December 31, 2021, minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) 2022 $ 122,907 $ 13,096 2023 106,008 11,438 2024 77,770 8,292 2025 29,589 7,567 2026 22,046 6,711 Thereafter 143,337 33,208 Future minimum lease payments 501,657 80,312 Less: imputed interest 82,304 13,246 Total lease obligations 419,353 67,066 Less: current obligations 110,606 10,510 Long-term lease obligations $ 308,747 $ 56,556 Lessor Our consolidated statements of operations reflect lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and HEP believes these assets will continue to have value when the current agreements expire due to HEP's risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. One of HEP’s throughput agreements with Delek US Holdings, Inc. (“Delek”) was partially renewed during the year ended December 31, 2020. Certain components of this agreement met the criteria of sales-type leases since the underlying assets are not expected to have an alternative use at the end of the lease term to anyone other than Delek. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Therefore, HEP recognized a gain on sales-type leases totaling $33.8 million during the year ended December 31, 2020. This sales-type lease transaction, including the related gain, was a non-cash transaction. Lease income recognized was as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Operating lease revenues $ 15,281 $ 22,636 $ 33,242 Gain on sales-type leases $ — $ 33,834 $ — Sales-type lease interest income $ 2,545 $ 1,928 $ — Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 2,162 $ 1,690 $ — For HEP’s sales-type leases, HEP included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of HEP’s minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. HEP recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues. Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of December 31, 2021 were as follows: Operating Sales-type (In thousands) 2022 $ 9,810 $ 2,955 2023 9,676 2,955 2024 9,676 2,955 2025 2,681 2,955 2026 — 2,955 Thereafter — 24,380 Total lease payment receipts $ 31,843 39,155 Less: imputed interest (29,716) 9,439 Unguaranteed residual assets at end of leases 25,182 Net investment in leases $ 34,621 Net investment in sales-type leases recorded on our consolidated balance sheet was composed of the following: December 31, 2021 December 31, 2020 (In thousands) Lease receivables $ 24,962 $ 26,045 Unguaranteed residual assets 9,659 8,985 Net investment in leases $ 34,621 $ 35,030 |
Leases | Leases Lessee We have operating and finance leases for land, buildings, pipelines, storage tanks, transportation and other equipment for our operations. Our leases have remaining terms of one to 58 years, some of which include options to extend the leases for up to 10 years. Certain of our leases for pipeline assets include provisions for variable payments which are based on a measure of throughput and also contain a provision for the lessor to adjust the rate per barrel periodically over the life of the lease. These variable costs are not included in the initial measurement of ROU assets and lease liabilities. The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheets. December 31, 2021 2020 (In thousands) Operating leases: Operating lease right-of-use assets $ 396,191 $ 350,548 Operating lease liabilities 110,606 97,937 Noncurrent operating lease liabilities 308,747 285,785 Total operating lease liabilities $ 419,353 $ 383,722 Finance leases: Properties, plants and equipment, at cost $ 75,885 $ 24,321 Accumulated amortization (8,945) (5,713) Properties, plants and equipment, net $ 66,940 $ 18,608 Accrued liabilities $ 10,510 $ 1,916 Other long-term liabilities 56,556 5,097 Total finance lease liabilities $ 67,066 $ 7,013 Supplemental balance sheet information related to our leases was as follows: December 31, 2021 2020 Weighted average remaining lease term (in years) Operating leases 7.4 7.2 Finance leases 8.6 3.3 Weighted average discount rate Operating leases 3.8 % 4.1 % Finance leases 3.9 % 5.3 % The components of lease expense were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Operating lease expense $ 117,292 $ 121,608 $ 112,770 Finance lease expense: Amortization of right-of-use assets 4,295 4,400 1,543 Interest on lease liabilities 733 415 334 Variable lease cost 3,645 3,580 4,449 Total lease expense $ 125,965 $ 130,003 $ 119,096 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 129,577 $ 126,313 $ 116,980 Operating cash flows from finance leases $ 733 $ 415 $ 334 Financing cash flows from finance leases $ 3,990 $ 2,995 $ 1,551 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 147,718 $ 18,823 $ 121,750 Finance leases $ 64,334 $ 4,085 $ 2,096 As of December 31, 2021, minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) 2022 $ 122,907 $ 13,096 2023 106,008 11,438 2024 77,770 8,292 2025 29,589 7,567 2026 22,046 6,711 Thereafter 143,337 33,208 Future minimum lease payments 501,657 80,312 Less: imputed interest 82,304 13,246 Total lease obligations 419,353 67,066 Less: current obligations 110,606 10,510 Long-term lease obligations $ 308,747 $ 56,556 Lessor Our consolidated statements of operations reflect lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and HEP believes these assets will continue to have value when the current agreements expire due to HEP's risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. One of HEP’s throughput agreements with Delek US Holdings, Inc. (“Delek”) was partially renewed during the year ended December 31, 2020. Certain components of this agreement met the criteria of sales-type leases since the underlying assets are not expected to have an alternative use at the end of the lease term to anyone other than Delek. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Therefore, HEP recognized a gain on sales-type leases totaling $33.8 million during the year ended December 31, 2020. This sales-type lease transaction, including the related gain, was a non-cash transaction. Lease income recognized was as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Operating lease revenues $ 15,281 $ 22,636 $ 33,242 Gain on sales-type leases $ — $ 33,834 $ — Sales-type lease interest income $ 2,545 $ 1,928 $ — Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 2,162 $ 1,690 $ — For HEP’s sales-type leases, HEP included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of HEP’s minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. HEP recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues. Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of December 31, 2021 were as follows: Operating Sales-type (In thousands) 2022 $ 9,810 $ 2,955 2023 9,676 2,955 2024 9,676 2,955 2025 2,681 2,955 2026 — 2,955 Thereafter — 24,380 Total lease payment receipts $ 31,843 39,155 Less: imputed interest (29,716) 9,439 Unguaranteed residual assets at end of leases 25,182 Net investment in leases $ 34,621 Net investment in sales-type leases recorded on our consolidated balance sheet was composed of the following: December 31, 2021 December 31, 2020 (In thousands) Lease receivables $ 24,962 $ 26,045 Unguaranteed residual assets 9,659 8,985 Net investment in leases $ 34,621 $ 35,030 |
Holly Energy Partners
Holly Energy Partners | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Holly Energy Partners | Holly Energy Partners HEP is a publicly held master limited partnership that owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations, as well as other third-party refineries, in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. Additionally, as of December 31, 2021, HEP owned a 75% interest in UNEV Pipeline, LLC (“UNEV”), the owner of a pipeline running from Woods Cross, Utah to Las Vegas, Nevada and associated product terminals, and a 50% ownership interest in each of Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”); Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne Pipeline”) and Cushing Connect Pipeline & Terminal LLC (“Cushing Connect”), the owner of a crude oil storage terminal in Cushing, Oklahoma and a pipeline that runs from Cushing, Oklahoma to our Tulsa Refineries. At December 31, 2021, we owned a 57% limited partner interest and a non-economic general partner interest in HEP. As the general partner of HEP, we have the sole ability to direct the activities that most significantly impact HEP's financial performance, and therefore as HEP's primary beneficiary, we consolidate HEP. HEP has two primary customers (including us) and generates revenues by charging tariffs for transporting petroleum products and crude oil though its pipelines, by charging fees for terminalling refined products and other hydrocarbons, and by storing and providing other services at its storage tanks and terminals. Under our long-term transportation agreements with HEP (discussed further below), we accounted for 79% of HEP’s total revenues for the year ended December 31, 2021. We do not provide financial or equity support through any liquidity arrangements and / or debt guarantees to HEP. HEP has outstanding debt under a senior secured revolving credit agreement and its senior notes. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. See Note 13 for a description of HEP’s debt obligations. HEP has risk associated with its operations. If a major customer of HEP were to terminate its contracts or fail to meet desired shipping or throughput levels for an extended period of time, revenue would be reduced and HEP could suffer substantial losses to the extent that a new customer is not found. In the event that HEP incurs a loss, our operating results will reflect HEP’s loss, net of intercompany eliminations, to the extent of our ownership interest in HEP at that point in time. Cushing Connect Joint Venture In October 2019, HEP Cushing LLC, a wholly-owned subsidiary of HEP, and Plains Marketing, L.P., a wholly-owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect, for (i) the development, construction, ownership and operation of a new 160,000 barrel per day common carrier crude oil pipeline (the “Cushing Connect Pipeline”) connects the Cushing, Oklahoma crude oil hub to our Tulsa Refineries and (ii) the ownership and operation of 1.5 million barrels of crude oil storage in Cushing, Oklahoma (the “Cushing Connect Terminal”). The Cushing Connect Terminal was fully in service beginning in April 2020, and the Cushing Connect Pipeline was placed in service at the end of the third quarter of 2021. Long-term commercial agreements have been entered into to support the Cushing Connect assets. Cushing Connect entered into a contract with an affiliate of HEP to manage the operation of the Cushing Connect Pipeline and with an affiliate of Plains to manage the operation of the Cushing Connect Terminal. The total investment in Cushing Connect will be shared proportionately among the partners. However, HEP is solely responsible for any Cushing Connect Pipeline construction costs that exceed the budget by more than 10%. HEP’s share of the cost of the Cushing Connect Terminal contributed by Plains and Cushing Connect Pipeline construction costs are approximately $70.0 million to $75.0 million. Transportation Agreements HEP serves our refineries under long-term pipeline, terminal and tankage throughput agreements and refinery processing tolling agreements expiring from 2022 through 2036. Under these agreements, we pay HEP fees to transport, store and process throughput volumes of refined products, crude oil and feedstocks on HEP's pipelines, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to HEP including UNEV (a consolidated subsidiary of HEP). Under these agreements, the agreed upon tariff rates are subject to annual tariff rate adjustments on July 1 at a rate based upon the percentage change in Producer Price Index or Federal Energy Regulatory Commission index. As of December 31, 2021, these agreements required minimum annualized payments to HEP of $352.8 million . Our transactions with HEP and fees paid under our transportation agreements with HEP and UNEV are eliminated and have no impact on our consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | RevenuesSubstantially all revenue-generating activities relate to sales of refined product and excess crude oil inventories sold at market prices (variable consideration) under contracts with customers. Additionally, we have revenues attributable to HEP logistics services provided under petroleum product and crude oil pipeline transportation, processing, storage and terminalling agreements with third parties. Disaggregated revenues were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Revenues by type Refined product revenues Transportation fuels (1) $ 13,414,543 $ 7,825,625 $ 12,952,899 Specialty lubricant products (2) 2,322,242 1,657,344 1,864,450 Asphalt, fuel oil and other products (3) 948,581 672,371 1,025,663 Total refined product revenues 16,685,366 10,155,340 15,843,012 Excess crude oil revenues (4) 1,547,696 884,248 1,470,148 Transportation and logistic services 103,646 98,039 121,027 Other revenues (5) 52,434 46,016 52,391 Total sales and other revenues $ 18,389,142 $ 11,183,643 $ 17,486,578 Years Ended December 31, 2021 2020 2019 (In thousands) Refined product revenues by market United States Mid-Continent $ 9,094,885 $ 5,096,268 $ 8,424,191 Southwest 3,477,562 2,310,432 3,621,273 Rocky Mountains/Pacific Northwest 2,118,619 1,311,416 2,208,541 Northeast 824,900 552,069 578,932 Canada 836,317 616,683 721,169 Europe, Asia and Latin America 333,083 268,472 288,906 Total refined product revenues $ 16,685,366 $ 10,155,340 $ 15,843,012 (1) Transportation fuels consist of gasoline, diesel and jet fuel. For the year ended December 31, 2020, $1.6 million is reported in our Corporate and Other segment. (2) Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3) Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $724.3 million and $224.3 million, respectively, for the year ended December 31, 2021. For the year ended December 31, 2020 such revenues attributable to our Refining, Lubricants and Specialty Products and Corporate and Other segments were $533.5 million, $135.4 million and $3.5 million respectively. For the year ended December 31, 2019 such revenue attributable to our Refining and Lubricants and Specialty Products segments were $808.9 million and $216.8 million, respectively. (4) Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5) Other revenues are principally attributable to our Refining segment. Our consolidated balance sheets reflect contract liabilities related to unearned revenues attributable to future service obligations under HEP’s third-party transportation agreements and production agreements from our Sonneborn operations. The following table presents changes to contract liabilities: Years Ended December 31, 2021 2020 2019 (In thousands) Balance at January 1 $ 6,738 $ 4,652 $ 132 Sonneborn acquisition — — 6,463 Increase 32,301 28,746 26,751 Recognized as revenue (29,761) (26,660) (28,694) Balance at December 31 $ 9,278 $ 6,738 $ 4,652 As of December 31, 2021, we have long-term contracts with customers that specify minimum volumes of gasoline, diesel, lubricants and specialty products to be sold ratably at market prices throu g h 2025. Such volumes are typically nominated in the month preceding delivery and delivered ratably throughout the following month. Future prices are subject to market fluctuations and therefore, we have elected the exemption to exclude variable consideration under these contracts under ASC 606-10-50-14A. Aggregate minimum volumes expected to be sold (future performance obligations) under our long-term product sales contracts with customers are as follows: 2022 2023 2024 2025 Total (In thousands) Refined product sales volumes (barrels) 13,771 12,795 11,697 1 38,264 Additionally, HEP has long-term contracts with third-party customers that specify minimum volumes of product to be transported through its pipelines and terminals that result in fixed-minimum annual reven ues throu gh 2025. Annua l minimum revenues attributable to HEP’s third-party contracts as of December 31, 2021 are presented below: 2022 2023 2024 2025 Total (In thousands) HEP contractual minimum revenues $ 11,770 $ 9,676 $ 9,676 $ 2,681 $ 33,803 For the year ended December 31, 2021, we had one customer, Shell, together with certain of its affiliates, that accounted for 10% or more of our total annual revenues at approximately 13%. We had no cu stomers which had accounted for over 10% of our annual revenues for the years ended December 31, 2020 or 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial instruments measured at fair value on a recurring basis consist of derivative instruments and RINs credit obligations. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. The carrying amounts of derivative instruments and RINs credit obligations were as follows: Carrying Amount Fair Value by Input Level Financial Instrument Level 1 Level 2 Level 3 (In thousands) December 31, 2021 Assets: Commodity forward contracts $ 286 $ — $ 286 $ — Foreign currency forward contracts 6,177 — 6,177 — Total assets $ 6,463 $ — $ 6,463 $ — Liabilities: NYMEX futures contracts $ 1,269 $ 1,269 $ — $ — Commodity forward contracts 566 — 566 — RINs credit obligations (1) 9,429 — 9,429 — Total liabilities $ 11,264 $ 1,269 $ 9,995 $ — Carrying Amount Fair Value by Input Level Financial Instrument Level 1 Level 2 Level 3 (In thousands) December 31, 2020 Assets: Commodity forward contracts $ 275 $ — $ 275 $ — Total assets $ 275 $ — $ 275 $ — Liabilities: NYMEX futures contracts $ 418 $ 418 $ — $ — Commodity price swaps 359 — 359 — Commodity forward contracts 196 — 196 — Foreign currency forward contracts 23,005 — 23,005 — Total liabilities $ 23,978 $ 418 $ 23,560 $ — (1) Represent obligations for RINs credits for which we did not have sufficient quantities at December 31, 2021 to satisfy our Environmental Protection Agency (“EPA”) regulatory blending requirements. Level 1 Financial Instruments Our NYMEX futures contracts are exchange traded and are measured and recorded at fair value using quoted market prices, a Level 1 input. Level 2 Financial Instruments Derivative instruments consisting of foreign currency forward contracts, commodity price swaps and forward sales and purchase contracts are measured and recorded at fair value using Level 2 inputs. The fair value of the commodity price swap contracts is based on the net present value of expected future cash flows related to both variable and fixed rate legs of the respective swap agreements. The measurements are computed using market-based observable input and quoted forward commodity prices with respect to our commodity price swaps. The fair value of the forward sales and purchase contracts are computed using quoted forward commodity prices. RINs credit obligations are valued based on current market RINs prices. The fair value of foreign currency forward contracts are based on values provided by a third party, which were derived using market quotes for similar type instruments, a Level 2 input. Nonrecurring Fair Value Measurements During the year ended December 31, 2020, we recognized goodwill and long-lived asset impairment charges based on fair value measurements utilized during our goodwill and long-lived asset impairment testing (see Note 11). The fair value measurements were based on a combination of valuation methods including discounted cash flows, the guideline public company and guideline transaction methods and obsolescence adjusted replacement costs, all of which are Level 3 inputs. During the year ended December 31, 2020, HEP recognized a gain on sales-type leases (see Note 3). The estimated fair value of the underlying leased assets at contract inception and the present value of the estimated unguaranteed residual asset at the end of the lease term were used in determining the net investment in leases and related recognized gain on sales-type leases. The asset valuation estimates included Level 3 inputs based on a replacement cost valuation method. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated as net income (loss) attributable to HollyFrontier stockholders, adjusted for participating securities’ share in earnings divided by the average number of shares of common stock outstanding. Diluted earnings per share includes the incremental shares resulting from certain share-based awards. The following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders: Years Ended December 31, 2021 2020 2019 (In thousands, except per share data) Net income (loss) attributable to HollyFrontier stockholders $ 558,324 $ (601,448) $ 772,388 Participating securities’ share in earnings (1) 7,465 1,811 1,034 Net income (loss) attributable to common shares $ 550,859 $ (603,259) $ 771,354 Average number of shares of common stock outstanding 162,569 161,983 166,287 Effect of dilutive variable restricted stock units and performance share units — — 1,098 Average number of shares of common stock outstanding assuming dilution 162,569 161,983 167,385 Basic earnings (loss) per share $ 3.39 $ (3.72) $ 4.64 Diluted earnings (loss) per share $ 3.39 $ (3.72) $ 4.61 (1) Unvested restricted stock unit awards and unvested performance share units that settle in HollyFrontier common stock represent participating securities because they participate in nonforfeitable dividends or distributions with the common stockholders of HollyFrontier. Participating earnings represent the distributed and undistributed earnings of HollyFrontier attributable to the participating securities. Unvested restricted stock unit awards and performance share units do not participate in undistributed net losses as they are not contractually obligated to do so. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have a principal share-based compensation plan (the “2020 Long-Term Incentive Plan”) that provides for the grant of unrestricted and restricted stock, restricted stock units, other stock based awards, stock options, performance awards, substitute awards, cash awards and stock appreciation rights. Subject to adjustment for certain events, an aggregate of 6,019,255 of these awards may be issued pursuant to awards granted under the 2020 Long-Term Incentive Plan. We also have a long-term incentive compensation plan which expired pursuant to its terms on December 31, 2020, but continues to govern outstanding equity awards granted thereunder and the plan will be terminated following the settlement of all outstanding awards granted thereunder. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting is to expense the costs ratably over the vesting periods. Share-based awards paid in cash upon vesting are accounted for as liability awards and recorded at fair value at the end of each reporting period with a mark-to-mark adjustment recognized in earnings. In July 2021, we adopted a stock compensation deferral plan which allows non-employee directors to defer settlement of vested stock granted under our share-based compensation plan. This plan was effective October 1, 2021. The compensation expense and associated tax benefit were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Compensation expense: Restricted stock units $ 29,453 $ 23,539 $ 26,833 Performance stock units 12,591 6,130 14,679 Total compensation expense $ 42,044 $ 29,669 $ 41,512 Tax benefit recognized on compensation expense $ 10,545 $ 3,965 $ 13,253 Additionally, HEP maintains a share-based compensation plan for Holly Logistic Services, L.L.C.'s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s share-based compensation plan was $2.6 million, $2.2 million and $2.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock Units Under our long-term incentive plan, we grant certain officers and other key employees restricted stock unit awards, which are payable in stock or cash and generally vest over a period of three years. Restricted stock unit award recipients have the right to receive dividends, however, restricted stock units do not have any other rights of absolute ownership. Upon vesting, restrictions on the restricted stock units lapse at which time they convert to common shares or cash. In addition, we grant non-employee directors restricted stock unit awards, which typically vest over a period of one year and are payable in stock. The fair value of each restricted stock unit award is measured based on the grant date market price of our common shares and is amortized over the respective vesting period. We account for forfeitures on an estimated basis. A summary of restricted stock unit activity during the year ended December 31, 2021 is presented below: Restricted Stock Units Grants Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 2,057,045 $ 29.76 Granted 564,146 $ 33.95 Vested (840,648) $ 33.76 Forfeited (176,003) $ 29.98 Outstanding at December 31, 2021 1,604,540 $ 29.11 For the years ended December 31, 2021, 2020 and 2019, restricted stock and restricted stock units vested having a grant date fair value of $28.4 million, $28.2 million and $30.9 million, respectively. For the years ended December 31, 2020 and 2019, we granted restricted stock units having a weighted average grant date fair value of $22.20 and $52.62, respectively. As of December 31, 2021, there was $29.7 million of total unrecognized compensation cost related to non-vested restricted stock unit grants. That cost is expected to be recognized over a weighted-average period of 1.6 years. For the years ended December 31, 2021, 2020 and 2019, we paid $3.4 million, $1.3 million and $1.7 million, respectively, in cash equal to the value of the stock award on the vest date to certain employees to settle 105,459, 55,222 and 32,648, respectively, restricted stock units. Performance Share Units Under our long-term incentive plan, we grant certain officers and other key employees performance share units, which are payable in stock or cash upon meeting certain criteria over the service period, and generally vest over a period of three years. Under the terms of our performance share unit grants, awards are subject to “financial performance” and “market performance” criteria. Financial performance is based on our financial performance compared to a peer group of independent refining companies, while market performance is based on the relative standing of total shareholder return achieved by HollyFrontier compared to peer group companies. The number of shares ultimately issued or cash paid under these awards can range from zero to 200% of target award amounts. Holders of performance share units have the right to receive dividend equivalents and other distributions with respect to such performance share units based on the target level of payout. A summary of performance share unit activity and changes during the year ended December 31, 2021 is presented below: Performance Share Units Grants Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 635,204 $ 35.45 Granted 320,717 $ 38.50 Vested (53,145) $ 84.35 Forfeited (38,150) $ 37.27 Outstanding at December 31, 2021 864,626 $ 33.49 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory consists of the following components: December 31, 2021 2020 (In thousands) Crude oil $ 630,873 $ 451,967 Other raw materials and unfinished products (1) 530,067 260,495 Finished products (2) 726,930 595,696 Lower of cost or market reserve (8,739) (318,862) Process chemicals (3) 43,025 35,006 Repairs and maintenance supplies and other (4) 199,972 149,174 Total inventory $ 2,122,128 $ 1,173,476 (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. (3) Process chemicals include additives and other chemicals. (4) Includes RINs Our inventories that are valued at the lower of LIFO cost or market reflect a valuation reserve of $318.9 million at December 31, 2020. The December 31, 2020 market reserve of $318.9 million was reversed due to the sale of inventory quantities that gave rise to the 2020 reserve. The effect of the change in the lower of cost or market reserve was a decrease to cost of products sold totaling $310.1 million for the year ended December 31, 2021, an increase of $78.5 million for the year ended December 31, 2020 and a decrease of $119.8 million for the year ended December 31, 2019. At December 31, 2021, the replacement cost of our refining inventories exceeded the LIFO carrying value. The excess of replacement cost over the LIFO value of inventory was $111.1 million at December 31, 2021. For the year ended December 31, 2020, we recognized a charge of $36.9 million to cost of products sold as we liquidated certain quantities of LIFO inventory at our Cheyenne Refinery that were carried at historical acquisition costs above market prices at the time of liquidation. In the fourth quarter of 2021, we built renewable feedstock inventory in connection with our Cheyenne renewable diesel unit and as of December 31, 2021, the market value was below the LIFO carrying value. As a result, we recorded a lower of cost or market inventory valuation reserve of $8.7 million. |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment | Properties, Plants and Equipment The components of properties, plants and equipment are as follows: December 31, 2021 2020 (In thousands) Land, buildings and improvements $ 607,554 $ 517,829 Refining facilities 4,839,926 4,202,524 Pipelines and terminals 1,956,008 1,786,279 Transportation vehicles 27,809 26,715 Other fixed assets 306,606 400,159 Construction in progress 710,304 366,011 8,448,207 7,299,517 Accumulated depreciation (3,033,353) (2,726,378) $ 5,414,854 $ 4,573,139 We capitalized interest attributable to construction projects of $15.2 million, $4.1 million and $2.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Depreciation expense was $329.4 million, $333.0 million and $334.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Goodwill, Long-lived Asset and
Goodwill, Long-lived Asset and Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Long-lived Asset and Intangibles | Goodwill, Long-lived Assets and Intangibles Goodwill and long-lived assets As of December 31, 2021, our goodwill balance was $2.3 billion. The carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our Lubricants and Specialty Products segment. The following is a summary of our goodwill by segment: Refining Lubricants and Specialty Products HEP Total (In thousands) Balance at December 31, 2020 $ 1,733,472 $ 247,590 $ 312,873 $ 2,293,935 Foreign currency translation adjustment — (891) — (891) Balance at December 31, 2021 $ 1,733,472 $ 246,699 $ 312,873 $ 2,293,044 Balance at December 31, 2021 Goodwill $ 2,042,790 $ 481,278 $ 312,873 $ 2,836,941 Accumulated impairment losses (309,318) (234,579) — (543,897) $ 1,733,472 $ 246,699 $ 312,873 $ 2,293,044 We performed our annual goodwill impairment testing quantitatively as of July 1, 2021 and determined there was no impairment of goodwill attributable to our reporting units. Additionally, there was no impairment of long-lived assets during the years ended December 31, 2021 and 2019. See below for discussion of our goodwill impairments recognized in 2020 and 2019 and long-lived assets impairment recognized in 2020. During the second quarter of 2020, we determined that indicators of potential goodwill and long-lived asset impairments were present and performed recoverability testing for long-lived assets and an interim test for goodwill impairment as of May 31, 2020. Impairment indicators included the recent economic slowdown caused by the COVID-19 pandemic, reductions in the prices of our finished goods and raw materials and the related decrease in our gross margins, as well as the recent decline in our market capitalization. Additionally, our second quarter 2020 announcement of the planned conversion of our Cheyenne Refinery to renewable diesel production was also considered a triggering event requiring assessment of potential impairments to the carrying value of our Cheyenne Refinery asset group. As a result of our long-lived asset recoverability testing, we determined that the carrying value of the long-lived assets of our Cheyenne Refinery and PCLI asset groups were not recoverable, and thus recorded long-lived asset impairment charges of $232.2 million and $204.7 million, respectively, in the second quarter of 2020. Our interim goodwill impairment testing indicated that there was no impairment of goodwill at our Refining and Lubricants and Specialty Products reporting units as of May 31, 2020. The estimated fair values of the Cheyenne Refinery and PCLI asset groups were determined using a combination of the income and cost approaches. The income approach was based on management’s best estimates of the expected future cash flows over the remaining useful life of the asset group. The cost approach utilized assumptions for the current replacement costs of similar assets adjusted for estimated depreciation and economic obsolescence. These fair value measurements involve significant unobservable inputs (Level 3 inputs). See Note 6 for further discussion of Level 3 inputs. During the fourth quarter of 2020, we incurred long-lived asset impairment charges of $26.5 million for construction-in-progress, consisting primarily of engineering work for potential upgrades to certain processing units at our Tulsa and El Dorado Refineries. During the fourth quarter of 2020, we concluded not to pursue these projects in light of recent economic and market conditions. Additionally, in the fourth quarter of 2020, our annual budgeting process identified downward forecast revisions specific to the Sonneborn reporting unit within our Lubricants and Specialty Products segment; largely from declines in gross margin as compared to historic levels and an increase in forecasted capital expenditures. As such, we concluded it was more likely than not that the carrying value of the Sonneborn reporting unit exceeded its fair value, and we performed an interim quantitative test for goodwill impairment as of December 1, 2020. As a result of our impairment testing, we recognized a goodwill impairment charge of $81.9 million during the fourth quarter of 2020 for the Sonneborn reporting unit. No other reporting units required an interim impairment test during the fourth quarter of 2020. During the year ended December 31, 2019, we recorded a goodwill impairment charge of $152.7 million to fully impair the goodwill of the PCLI reporting unit included in our Lubricants and Specialty Products segment. The estimated fair values of our reporting units tested quantitatively were derived using a combination of income and market approaches. The income approach reflects expected future cash flows based on estimated forecasted production levels, selling prices, gross margins, operating costs and capital expenditures. Our market approaches include both the guideline public company and guideline transaction methods. Both methods utilize pricing multiples derived from historical market transactions of other like kind assets. These fair value measurements involve significant unobservable inputs (Level 3 inputs). See Note 6 for further discussion of Level 3 inputs. A reasonable expectation exists that further deterioration in our operating results or overall economic conditions could result in an impairment of goodwill and / or additional long-lived assets impairments at some point in the future. Future impairment charges could be material to our results of operations and financial condition. Intangibles The carrying amounts of our intangible assets presented in “Intangibles and other” on our consolidated balance sheets are as follows: December 31 Useful Life 2021 2020 (In thousands) Customer relationships 10 - 20 years $ 237,856 $ 239,773 Transportation agreements 30 years 59,933 59,933 Trademarks, patents and other 10 - 20 years 157,392 157,120 455,181 456,826 Accumulated amortization (156,123) (122,024) Total intangibles, net $ 299,058 $ 334,802 Amortization expense was $35.6 million, $34.1 million and $33.8 million for the years ended December 31, 2021, 2020 and 2019, respectively and expected to approximate $34.4 million for each of the next five years. |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2021 | |
Environmental Expense and Liabilities [Abstract] | |
Environmental | EnvironmentalWe expensed $7.8 million, $7.1 million and $11.2 million for the years ended December 31, 2021, 2020 and 2019, respectively, for environmental remediation obligations. The accrued environmental liability reflected on our consolidated balance sheets was $117.2 million and $115.0 million at December 31, 2021 and 2020, respectively, of which $99.1 million and $94.0 million, respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time (up to 30 years for certain projects). Estimated liabilities could increase in the future when the results of ongoing investigations become known, are considered probable and can be reasonably estimated. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt HollyFrontier Credit Agreement On April 30, 2021, we a mended our $1.35 billion senior unsecured revolving credit facility to extend the maturity date to April 30, 2026 (the “HollyFrontier Credit Agreement”). On December 27, 2021, the HollyFrontier Credit Agreement was further amended to provide an alternative reference rate for loans denominated in Euros and Sterling and to further supplement the reference rate replacement procedures for loans denominated in U.S. dollars following the anticipated cessation of LIBOR. The HollyFrontier Credit Agreement may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. At December 31, 2021, we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $2.3 million under the HollyFrontier Credit Agreement. Indebtedness under the HollyFrontier Credit Agreement bears interest, at our option, at either (a) the alternate base rate (as defined in the HollyFrontier Credit Agreement) plus an applicable margin (ranging from 0.25% - 1.125%), (b) the LIBO Rate (as defined in the HollyFrontier Credit Agreement) plus an applicable margin (ranging from 1.25% to 2.125%), or c) the CDOR Rate (as defined in the HollyFrontier Credit Agreement) plus an applicable margin (ranging from 1.25% to 2.125%) for Canadian dollar denominated borrowings. HEP Credit Agreement On April 30, 2021, HEP amended its $1.4 billion s enior secured revolving credit facility decreasing the commitments under the facility to $1.2 billion and extending the maturity to July 27, 2025 (the “HEP Credit Agreement”). The HEP Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit and continues to provide for an accordion feature that allows HEP to increase the commitments under the HEP Credit Agreement up to a maximum amount of $1.7 billion. At December 31, 2021, HEP was in compliance with all of its covenants, had outstanding borrowings of $840.0 million and no outstanding letters of credit under the HEP Credit Agreement. Prior to the Investment Grade Date (as defined in the HEP Credit Agreement), indebtedness under the HEP Credit Agreement bears interest, at HEP’s option, at either (a) the alternate base rate (as defined in the HEP Credit Agreement) plus an applicable margin or (b) the Eurodollar Rate (as defined in the HEP Credit Agreement) plus an applicable margin. In each case, the applicable margin is based upon HEP’s Total Leverage Ratio (as defined in the HEP Credit Agreement). The weighted average interest rate in effect under the HEP Credit Agreement on HEP’s borrowings was 2.35% and 2.58% as of December 31, 2021 and 2020, respectively. HEP’s obligations under the HEP Credit Agreement are collateralized by substantially all of HEP’s assets and are guaranteed by HEP's material wholly-owned subsidiaries. Any recourse to the general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP are not significant. HEP’s creditors have no recourse to our other assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. HollyFrontier Senior Notes In September 2020, we completed a public offering of $350.0 million in aggregate principal amount of 2.625% senior notes maturing October 2023 (the “2.625% Senior Notes”) and $400.0 million in aggregate principal amount of 4.500% senior notes maturing October 2030 (the “4.500% Senior Notes”). As a result, as of December 31, 2021, our outstanding senior notes consist of $1.0 billion in aggregate principal amount of 5.875% senior notes maturing April 2026 (the “5.875% Senior Notes”), the 2.625% Senior Notes and the 4.500% Senior Notes (collectively, the “HollyFrontier Senior Notes”). The HollyFrontier Senior Notes are unsecured and unsubordinated obligations of ours and rank equally with all our other existing and future unsecured and unsubordinated indebtedness. HollyFrontier Financing Arrangements Certain of our wholly owned subsidiaries entered into financing arrangements whereby such subsidiaries sold a portion of their precious metals catalyst to a financial institution and then leased back the precious metals catalyst in exchange for cash. The volume of the precious metals catalyst and the lease rate are fixed over the term of each lease, and the lease payments are recorded as interest expense. The current leases mature in one year or less. Upon maturity, we must either satisfy the obligation at fair market value or refinance to extend the maturity. These financing arrangements are recorded at a Level 2 fair value totaling $37.4 million and $43.9 million at December 31, 2021 and 2020, respectively, and are included in “Accrued liabilities” on our consolidated balance sheets. See Note 6 for additional information on Level 2 inputs. HEP Senior Notes In February 2020, HEP closed a private placement of $500.0 million in aggregate principal amount of 5.0% HEP senior unsecured notes maturing in February 2028 (the “HEP Senior Notes”). Subsequently, in February 2020, HEP redeemed its existing $500.0 million aggregate principal amount of 6.0% senior notes maturing August 2024 at a redemption cost of $522.5 million. HEP recognized a $25.9 million early extinguishment loss consisting of a $22.5 million debt redemption premium and unamortized discount and financing costs of $3.4 million. The HEP Senior Notes are unsecured and impose certain restrictive covenants, including limitations on HEP’s ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. HEP was in compliance with the restrictive covenants for the HEP Senior Notes as of December 31, 2021. At any time when the HEP Senior Notes are rated investment grade by either Moody’s or Standard & Poor’s and no default or event of default exists, HEP will not be subject to many of the foregoing covenants. Additionally, HEP has certain redemption rights under the HEP Senior Notes. Indebtedness under the HEP Senior Notes is guaranteed by HEP’s wholly-owned subsidiaries. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. The carrying amounts of long-term debt are as follows: December 31, 2021 2020 (In thousands) HollyFrontier 2.625% Senior Notes $ 350,000 $ 350,000 5.875% Senior Notes 1,000,000 1,000,000 4.500% Senior Notes 400,000 400,000 1,750,000 1,750,000 Unamortized discount and debt issuance costs (10,312) (12,885) Total HollyFrontier long-term debt 1,739,688 1,737,115 HEP Credit Agreement 840,000 913,500 HEP 5.000% Senior Notes Principal 500,000 500,000 Unamortized discount and debt issuance costs (6,951) (7,897) Total HEP long-term debt 1,333,049 1,405,603 Total long-term debt $ 3,072,737 $ 3,142,718 The fair values of the senior notes are as follows: December 31, 2021 2020 (In thousands) HollyFrontier Senior Notes $ 1,912,753 $ 1,903,867 HEP Senior Notes $ 502,705 $ 506,540 These fair values are based on a Level 2 input. See Note 6 for additional information on Level 2 inputs. Principal maturities of long-term debt as of December 31, 2021 are as follows: Years Ending December 31, (In thousands) 2022 $ — 2023 350,000 2024 — 2025 840,000 2026 1,000,000 Thereafter 900,000 Total $ 3,090,000 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Commodity Price Risk Management Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, forward purchase and sales and futures contracts to mitigate price exposure with respect to our inventory positions, natural gas purchases, sales prices of refined products and crude oil costs. Foreign Currency Risk Management We are exposed to market risk related to the volatility in foreign currency exchange rates. We periodically enter into derivative contracts in the form of foreign exchange forward contracts to mitigate the exposure associated with fluctuations on intercompany notes with our foreign subsidiaries that are not denominated in the U.S. dollar. Accounting Hedges We had swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas that matured as of December 31, 2021. We also periodically have swap contracts to lock in basis spread differentials on forecasted purchases of crude oil and forward sales contracts that lock in the prices of future sales of crude oil and refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains / losses) recorded directly to other comprehensive income. These fair value adjustments are later reclassified to earnings as the hedging instruments mature. The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of hedging instruments under hedge accounting: Net Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Years Ended December 31, Statement of Operations Location Years Ended December 31, 2021 2020 2019 2021 2020 2019 (In thousands) Commodity contracts $ 31 $ (4,871) $ (5,349) Sales and other revenues $ (19,239) $ (5,168) $ (1,799) Cost of products sold — 4,281 22,876 Operating expenses 1,660 (1,717) (1,364) Total $ 31 $ (4,871) $ (5,349) $ (17,579) $ (2,604) $ 19,713 Economic Hedges We have commodity contracts including NYMEX futures contracts to lock in prices on forecasted purchases and sales of inventory and forward purchase and sell contracts, as well as periodically have contracts to lock in basis spread differentials on forecasted purchases of crude oil and swap contracts to lock in the crack spread of WTI and gasoline, that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges). We also have forward currency contracts to fix the rate of foreign currency. In addition, our catalyst financing arrangements discussed in Note 13 could require repayment under certain conditions based on the future pricing of platinum, which is an embedded derivative. These contracts are measured at fair value with offsetting adjustments (gains / losses) recorded directly to earnings. The following table presents the pre-tax effect on earnings due to maturities and fair value adjustments of our economic hedges: Gain (Loss) Recognized in Earnings Derivatives Not Designated as Hedging Instruments Years Ended December 31, Statement of Operations Location 2021 2020 2019 (In thousands) Commodity contracts Cost of products sold $ (22,909) $ 18,646 $ (8,475) Interest expense 11,816 (4,250) (6,427) Foreign currency contracts Gain (loss) on foreign currency transactions (4,013) (7,300) (17,430) Total $ (15,106) $ 7,096 $ (32,332) As of December 31, 2021, we have the following notional contract volumes related to outstanding derivative instruments (all maturing in 2022): Total Outstanding Notional Unit of Measure Derivatives designated as hedging instruments: Forward crude oil contracts - short 70,000 Barrels Derivatives not designated as hedging instruments: NYMEX futures (WTI) - short 495,000 Barrels Forward gasoline contracts - long 40,000 Barrels Foreign currency forward contracts 450,686,305 U. S. dollar Forward commodity contracts (platinum) 38,723 Troy ounces The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position on our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements. Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2021 Derivatives designated as cash flow hedging instruments: Commodity forward contracts $ — $ — $ — $ 238 $ — $ 238 $ — $ — $ — $ 238 $ — $ 238 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ — $ — $ — $ 1,269 $ — $ 1,269 Commodity forward contracts 286 — 286 328 — 328 Foreign currency forward contracts 7,494 (1,317) 6,177 — — — $ 7,780 $ (1,317) $ 6,463 $ 1,597 $ — $ 1,597 Total net balance $ 6,463 $ 1,835 Balance sheet classification: Prepayment and other $ 6,463 Accrued liabilities $ 1,835 Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2020 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 359 $ — $ 359 $ — $ — $ — $ 359 $ — $ 359 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ — $ — $ — $ 418 $ — $ 418 Commodity forward contracts 275 — 275 196 — 196 Foreign currency forward contracts — — — 23,005 — 23,005 $ 275 $ — $ 275 $ 23,619 $ — $ 23,619 Total net balance $ 275 $ 23,978 Balance sheet classification: Prepayments and other $ 275 Accrued liabilities $ 23,978 At December 31, 2021, we had a pre-tax net unrealized loss of $0.3 million classified in accumulated other comprehensive income that relates to all accounting hedges having contractual maturities through 2022, which, assuming commodity prices remain unchanged, will be effectively transferred from accumulated other comprehensive income into the statement of operations as the hedging instruments contractually mature over the next three-month period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is comprised of the following: Years Ended December 31, 2021 2020 2019 (In thousands) Current Federal $ (33,206) $ (59,452) $ 187,134 State (1,802) (5,391) 29,547 Foreign 30,336 9,423 3,805 Deferred Federal 94,353 (64,836) 77,916 State 1,386 (52,872) 26,073 Foreign 32,831 (59,019) (25,323) $ 123,898 $ (232,147) $ 299,152 The statutory federal income tax rate applied to pre-tax book income reconciles to income tax expense (benefit) as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Tax computed at statutory rate $ 165,302 $ (156,880) $ 246,013 State income taxes, net of federal tax benefit 13,588 (41,566) 47,259 Noncontrolling interest in net income (25,931) (21,799) (25,494) Effect of change in state rate (13,342) — — CARES Act benefits (10,384) (19,837) — Foreign rate differential 331 (14,294) — Federal tax credits (29,777) — — US tax on non-US operations 18,547 — — Effect of nondeductible goodwill impairment charge — 16,573 32,069 Other 5,564 5,656 (695) $ 123,898 $ (232,147) $ 299,152 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows: December 31, 2021 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (741,970) $ (741,970) Lease obligation 131,567 — 131,567 Accrued employee benefits 17,322 — 17,322 Accrued post-retirement benefits 10,897 — 10,897 Accrued environmental costs 26,999 — 26,999 Hedging instruments — (652) (652) Inventory differences — (148,539) (148,539) Deferred turnaround costs — (100,585) (100,585) Net operating loss and tax credit carryforwards 63,967 — 63,967 Investment in HEP — (94,486) (94,486) Valuation allowance — (3,165) (3,165) Other 1,244 — 1,244 Total $ 251,996 $ (1,089,397) $ (837,401) December 31, 2020 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (712,339) $ (712,339) Lease obligation 94,447 — 94,447 Accrued employee benefits 21,819 — 21,819 Accrued post-retirement benefits 11,646 — 11,646 Accrued environmental costs 27,200 — 27,200 Hedging instruments — (903) (903) Inventory differences — (24,271) (24,271) Deferred turnaround costs — (85,326) (85,326) Net operating loss and tax credit carryforwards 51,227 — 51,227 Investment in HEP — (94,982) (94,982) Valuation allowance — (8,577) (8,577) Other 6,356 — 6,356 Total $ 212,695 $ (926,398) $ (713,703) We have federal income tax credits of $16.9 million that can be carried forward 20 years and state income tax credits of $24.4 million that can be carried forward at least 16 years. We also have tax benefits attributable to net operating losses of $16.0 million in Luxembourg that can be carried forward 16 years which will begin expiring in 2034. We have reflected a valuation allowance of $3.2 million in 2021 and $8.6 million in 2020 with respect to net operating carryforwards that primarily relate to losses in Luxembourg. Additionally, we have tax benefits attributable to net operating loss carryforwards of $10.9 million for state income tax purposes with various carryforward periods of 10 years or longer. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Balance at January 1 $ 54,899 $ 56,621 $ 53,752 Additions for tax positions of prior years — 6 2,893 Reductions for tax positions of prior years (49) (1,500) (24) Settlements (125) — — Lapse of statute of limitations (120) (228) — Balance at December 31 $ 54,605 $ 54,899 $ 56,621 At December 31, 2021, 2020 and 2019, there were $54.6 million, $54.9 million, and $56.6 million, respectively, of unrecognized tax benefits that, if recognized, would affect our effective tax rate. Unrecognized tax benefits are adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. Approximately $53.7 million of the unrecognized tax benefits relates to claims filed with the IRS on the federal income tax treatment of refundable biodiesel/ethanol blending tax credits for certain prior years. The issues related to the claims are complex and uncertain, and we cannot conclude that it is more likely than not that we will sustain the claims. Therefore, no tax benefit has been recognized for the filed claims. During the next 12 months, it is reasonably possible that an ultimate resolution regarding these claims could reduce unrecognized tax benefits (due to possible court rulings in favor of the IRS). We recognize interest and penalties relating to liabilities for unrecognized tax benefits as an element of tax expense. We have not recorded any penalties related to our uncertain tax positions as we believe that it is more likely than not that there will not be any assessment of penalties. We are subject to U.S. and Canadian federal income tax, Oklahoma, Kansas, New Mexico, Iowa, Arizona, Utah, Colorado and Nebraska income tax and to income tax of multiple other state jurisdictions. We have substantially concluded all state and local income tax matters for tax years throug h 2017 . Other than the federal claim noted above, we have materially concluded all U.S. federal income tax matters for tax years through December 31, 2017 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Shares of our common stock outstanding and activity for the years ended December 31, 2021, 2020 and 2019 are presented below: Years Ended December 31, 2021 2020 2019 Common shares outstanding at January 1 162,413,660 161,846,525 172,121,491 Vesting of performance units 67,846 296,801 592,602 Vesting of restricted stock and restricted stock units 737,091 553,381 412,465 Forfeitures of restricted stock — — (13,807) Purchase of treasury stock (1) (217,151) (283,047) (11,266,226) Common shares outstanding at December 31 163,001,446 162,413,660 161,846,525 (1) Includes 217,151, 283,047 and 415,466 shares, respectively, withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards, as well as other stock repurchases under separate authority from our Board of Directors. In November 2019, our Board of Directors approved a $1.0 billion share repurchase program, which replaced all existing share repurchase programs authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by our Board of Directors. As of December 31, 2021, we had not repurchased common stock under this stock repurchase program, and we do not intend to repurchase common stock under this program until completion of our ongoing renewables capital projects and completion of the Sinclair Transactions. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs. During the years ended December 31, 2021, 2020 and 2019, we withheld shares of our common stock from certain employees in the amounts of $7.1 million, $7.6 million and $21.9 million, respectively. These withholdings were made under the terms of restricted stock unit and performance share unit agreements upon vesting, at which time, we concurrently made cash payments to fund payroll and income taxes on behalf of officers and employees who elected to have shares withheld from vested amounts to pay such taxes. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The components and allocated tax effects of other comprehensive income are as follows: Before-Tax Tax Expense After-Tax (In thousands) Year Ended December 31, 2021 Net change in foreign currency translation adjustment $ (13,336) $ (2,793) $ (10,543) Net unrealized gain on hedging instruments 31 8 23 Net change in pension and other post-retirement benefit obligations (457) (186) (271) Other comprehensive loss attributable to HollyFrontier stockholders $ (13,762) $ (2,971) $ (10,791) Year Ended December 31, 2020 Net change in foreign currency translation adjustment $ 6,226 $ 1,357 $ 4,869 Net unrealized loss on hedging instruments (4,871) (1,228) (3,643) Net change in pension and other post-retirement benefit obligations (3,461) (923) (2,538) Other comprehensive loss attributable to HollyFrontier stockholders $ (2,106) $ (794) $ (1,312) Year Ended December 31, 2019 Net change in foreign currency translation adjustment $ 13,337 $ 2,848 $ 10,489 Net unrealized loss on hedging instruments (5,349) (1,365) (3,984) Net change in pension and other post-retirement benefit obligations (7,207) (1,853) (5,354) Other comprehensive income attributable to HollyFrontier stockholders $ 781 $ (370) $ 1,151 The following table presents the statement of operations line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”): AOCI Component Gain (Loss) Reclassified From AOCI Statement of Operations Line Item Years Ended December 31, 2021 2020 2019 (In thousands) Hedging instruments: Commodity price swaps $ (19,239) $ (5,168) $ (1,799) Sales and other revenues — 4,281 22,876 Cost of products sold 1,660 (1,717) (1,364) Operating expenses (17,579) (2,604) 19,713 (4,430) (664) 5,027 Income tax expense (benefit) (13,149) (1,940) 14,686 Net of tax Other post-retirement benefit obligations: Pension obligations 407 422 — Other, net 103 108 — Income tax expense 304 314 — Net of tax Post-retirement healthcare obligations 3,328 3,564 3,587 Other, net 839 909 915 Income tax expense 2,489 2,655 2,672 Net of tax Retirement restoration plan (39) (22) (6) Other, net (10) (6) (2) Income tax benefit (29) (16) (4) Net of tax Total reclassifications for the period $ (10,385) $ 1,013 $ 17,354 Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: Years Ended December 31, 2021 2020 (In thousands) Foreign currency translation adjustment $ (7,861) $ 2,682 Unrealized loss on pension obligations 1,449 (248) Unrealized gain on post-retirement benefit obligations 9,342 11,310 Unrealized loss on hedging instruments (259) (282) Accumulated other comprehensive income $ 2,671 $ 13,462 |
Pension and Post-retirement Pla
Pension and Post-retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Post-retirement Plans | Pension and Post-retirement PlansCertain PCLI employees are participants in union and non-union pension plans which are closed to new entrants. It is our intention that, effective June 30, 2022, no additional benefits will be accrued under these plans, and the plans will become frozen and employees will be transitioned to a defined contribution plan. Accordingly, these changes have been accounted for as curtailments and contractual termination benefits. In addition, Sonneborn employees in the Netherlands have a defined benefit pension plan which was frozen and all plan participants became inactive in 2016. The plan assets are in the form of a third-party insurance contract that is valued based on the assets held by the insurer and insures a value which approximates the accrued benefits related to the plan’s accumulated benefit obligation. At that time, a new plan was established to provide future indexation benefits to participants who had accrued benefits under the expiring arrangements. The following table sets forth the changes in the benefit obligation and plan assets of our PCLI pension plans and Sonneborn Netherlands plans for the years ended December 31, 2021 and 2020. Years Ended December 31, 2021 2020 (In thousands) Change in plans' benefit obligations Pension plans benefit obligation - beginning of period $ 126,620 $ 110,410 Service cost 4,455 3,929 Interest cost 2,740 2,772 Actuarial (gain) loss (7,363) 8,391 Benefits paid (4,211) (1,558) Curtailment — (4,078) Contractual termination benefits — 915 Transfer from other plans 706 479 Foreign currency exchange rate changes (2,533) 5,360 Pension plans benefit obligation - end of year $ 120,414 $ 126,620 Change in pension plans assets Fair value of plans assets - beginning of period $ 123,950 $ 105,358 Return on plans assets (2,228) 10,936 Employer contributions 3,542 3,487 Benefits paid (4,211) (1,558) Transfer payments 706 479 Foreign currency exchange rate changes (2,434) 5,248 Fair value of plans assets - end of year $ 119,325 $ 123,950 Funded status Under-funded balance $ (1,089) $ (2,670) Amounts recognized in consolidated balance sheets Other long-term liabilities $ (1,089) $ (2,670) Amounts recognized in accumulated other comprehensive income Cumulative actuarial loss $ (1) $ (1,658) The accumulated benefit obligation was $118.4 million and $119.2 million at December 31, 2021 and 2020, respectively, which are also the measurement dates used for our pension plans. The following tables provide information regarding pension plans with a projected benefit obligation and accumulated benefit obligation in excess of the fair value of plan assets: December 31, 2021 2020 (In thousands) Projected benefit obligation $ 35,963 $ 79,866 Fair value of plan assets $ 33,966 $ 77,035 December 31, 2021 2020 (In thousands) Accumulated benefit obligation $ 35,249 $ 41,654 Fair value of plan assets $ 33,966 $ 39,105 The weighted average assumptions used to determine end of period benefit obligations for the PCLI plans for the years ended December 31, 2021 and 2020 were discount rates of 3.00% and 2.60%, respectively, and rates of future compensation increases of 3.00% for each year. For the years ended December 31, 2021 and 2020, the weighted average assumption used to determine end of period benefit obligations for Sonneborn were discount rates of 1.40% and 1.10%, respectively. Net periodic pension expense consisted of the following components: Years Ended December 31, 2021 2020 2019 (In thousands) Service cost - benefit earned during the period $ 4,455 $ 3,929 $ 4,135 Interest cost on projected benefit obligations 2,740 2,772 3,026 Expected return on plans assets (3,031) (4,578) (3,840) Amortization of gain (407) (422) — Curtailment — (137) — Contractual termination benefits — 915 — Net periodic pension expense $ 3,757 $ 2,479 $ 3,321 The components, other than service cost, of our net periodic pension expense are recorded in Other, net on our consolidated statements of operations. The following table presents the fair values of PCLI’s pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2021 and 2020. December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Equity securities $ — $ 6,802 $ — $ 6,802 $ — $ 35,916 $ — $ 35,916 Fixed income 536 78,021 — 78,557 362 48,566 — 48,928 $ 536 $ 84,823 $ — $ 85,359 $ 362 $ 84,482 $ — $ 84,844 See Note 6 for additional information on Level 1 and 2 inputs. The expected long-term rate of return on plan assets is 3.25% for the PCLI pension plans, and is based on a target investment mix of 16% equities, 75% fixed income, 5% real estate and infrastructure and 4% other. We expect to contribute $3.6 million to the PCLI and Sonneborn pensions plans in 2022. Benefit payments, which reflect expected future service, are expected to be paid as follows: $2.5 million in 2022, $2.9 million in 2023, $3.3 million in 2024, $87.6 million in 2025, $0.9 million in 2026 and $5.4 million in 2027 to 2031. Benefit payments expected to be paid in 2025 include the estimate of the net present value of all expected benefit payments to be paid out once the PCLI union and non-union pension plans windup has been finalized. Post-retirement Healthcare Plans We have post-retirement healthcare and other benefits plans that are available to certain of our employees who satisfy certain age and service requirements. These plans are unfunded and provide differing levels of healthcare benefits dependent upon hire date and work location. Not all of our employees are covered by these plans at December 31, 2021. The following table sets forth the changes in the benefit obligation and plan assets of our post-retirement healthcare plans for the years ended December 31, 2021 and 2020: Years Ended December 31, 2021 2020 (In thousands) Change in plans' benefit obligation Post-retirement plans' benefit obligation - beginning of year $ 33,478 $ 31,273 Service cost 2,324 1,616 Interest cost 782 870 Benefits paid (706) (1,766) Actuarial (gain) loss (1,133) 1,131 Foreign currency exchange rate changes 71 354 Post-retirement plans' benefit obligation - end of year $ 34,816 $ 33,478 Change in plan assets Fair value of plan assets - beginning of year $ — $ — Employer contributions 673 1,742 Participant contributions 33 24 Benefits paid (706) (1,766) Fair value of plan assets - end of year $ — $ — Funded status Under-funded balance $ (34,816) $ (33,478) Amounts recognized in consolidated balance sheets Accrued liabilities $ (832) $ (1,946) Other long-term liabilities (33,984) (31,532) $ (34,816) $ (33,478) Amounts recognized in accumulated other comprehensive income Cumulative actuarial loss $ (271) $ (1,523) Prior service credit 15,031 18,511 Total $ 14,760 $ 16,988 Benefit payments, which reflect expected future service, are expected to be paid as follows: $0.8 million in 2022; $2.1 million in 2023; $2.2 million in 2024; $2.2 million in 2025; $2.3 million in 2026; and $11.5 million in 2027 through 2031. The weighted average assumptions used to determine end of period benefit obligations: December 31, 2021 2020 Discount rate 2.29%-3.10% 1.88% - 2.60% Current health care trend rate 6.00%-7.25% 5.50% - 6.00% Ultimate health care trend rate 4.00%-4.50% 4.50% - 5.00% Year rate reaches ultimate trend rate 2023-2041 2022 - 2023 Net periodic post-retirement credit consisted of the following components: Years Ended December 31, 2021 2020 2019 (In thousands) Service cost – benefit earned during the year $ 2,324 $ 1,616 $ 1,582 Interest cost on projected benefit obligations 782 870 1,029 Amortization of prior service credit (3,481) (3,481) (3,481) Amortization of (gain) loss 153 (83) (106) Net periodic post-retirement credit $ (222) $ (1,078) $ (976) The components, other than service cost, of our net periodic post-retirement credit are recorded in Other, net on our consolidated statements of operations. Prior service credits are amortized over the average remaining effective period to obtain full benefit eligibility for participants. Retirement Restoration Plan We have an unfunded retirement restoration plan that provides for additional payments from us so that total retirement plan benefits for certain executives will be maintained at the levels provided in the retirement plan before the application of Internal Revenue Code limitations. We expensed $0.1 million for each of the years ended December 31, 2021, 2020 and 2019 in connection with this plan. The accrued liability reflected on the consolidated balance sheets was $2.3 million and $2.5 million at December 31, 2021 and 2020, respectively. As of December 31, 2021, the projected benefit obligation under this plan was $2.3 million. Annual benefit payments of $0.2 million are expected to be paid through 2031, which reflect expected future service. Defined Contribution Plans We have defined contribution plans that cover substantially all qualified employees in the U.S, Canada and the Netherlands. Our contributions are based on an employee's eligible compensation and years of service. We also partially match our employees’ contributions. We expense d $45.0 million , $43.3 million and $30.3 million for the years ended December 31, 2021, 2020 and 2019, respectively, in connection with these plans. |
Contingencies And Contractual C
Contingencies And Contractual Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Contractual Commitments | Contingencies and Contractual Commitments We are a party to various litigation and legal proceedings which we believe, based on advice of counsel, will not either individually or in the aggregate have a materially adverse effect on our financial condition, results of operations or cash flows. We filed a business interruption claim with our insurance carriers related to a loss at our Woods Cross Refinery that occurred in the first quarter 2018. During the year ended December 31, 2020, we reached a final settlement agreement regarding the amounts owed to us pursuant to our business interruption coverage, and we recognized a gain of $81.0 million, which is reflected in our Corporate and Other segment. During 2017, 2018 and 2019, the EPA granted the Cheyenne Refinery and Woods Cross Refinery each a one-year small refinery exemption from the RFS program requirements for the 2016, 2017 and 2018, respectively, calendar years. As a result, the Cheyenne Refinery’s and Woods Cross Refinery’s gasoline and diesel production are not subject to the Renewable Volume Obligation for the respective years. Upon each exemption granted, we increased our inventory of RINs and reduced our cost of products sold. Various subsidiaries of HollyFrontier are currently intervenors in two lawsuits brought by renewable fuel interest groups against the EPA in federal courts alleging violations of the Renewable Fuel Standard under the Clean Air Act and challenging the EPA’s handling of small refinery exemptions. We intervened to vigorously defend the EPA’s position on small refinery exemptions because we believe the EPA correctly applied applicable law to the matters at issue. The first lawsuit is before the Tenth Circuit and challenges the relief the EPA afforded to the Cheyenne refinery following the grant of small refinery exemptions. The matter is fully briefed and remains pending before that court. The second lawsuit is currently pending before the DC Circuit. On August 25, 2021, the EPA filed a motion to voluntarily remand the matter to the EPA. We did not oppose this motion. The DC Circuit granted EPA’s motion for a voluntary remand, but ordered the agency to issue decisions on the challenged 2018 small refinery exemption decisions within 90 days of the court’s December 8, 2021 order or 90 days from the submission of supplemental materials by the small refineries so long as a decision is made within 120 days of the court’s order. HollyFrontier was also recently an intervenor in another lawsuit filed in the Tenth Circuit challenging the grant of small refinery exemptions to the Cheyenne and Woods Cross refineries for the 2016 compliance year. On January 24, 2020, the U.S. Court of Appeals for the Tenth Circuit vacated the small refinery exemptions granted to the Cheyenne and Woods Cross refineries for 2016 and remanded the case to the EPA for further proceedings. On April 15, 2020, the Tenth Circuit issued its mandate, remanding the matter back to the EPA. On September 4, 2020, various subsidiaries of HollyFrontier filed a Petition for a Writ of Certiorari with the U.S. Supreme Court seeking review of the Tenth Circuit decision. On January 8, 2021, the U.S. Supreme Court granted HollyFrontier’s petition. The oral argument occurred on April 27, 2021. The U.S. Supreme Court issued its opinion in this matter on June 25, 2021 and reversed the Tenth Circuit. On July 27, 2021, the Tenth Circuit recalled the mandate it issued to the EPA on April 15, 2020, and vacated its January 24, 2020 judgment. On July 29, 2021, the Tenth Circuit issued an order and judgment confirming that it recalled its mandate and vacated its previous judgment in this case, and returned jurisdiction to the EPA without vacating the exemption decisions. On August 19, 2021, the EPA filed a motion for clarification of the Tenth Circuit’s mandate. The Tenth Circuit denied the EPA’s motion on August 26, 2021, and therefore the matter is now solely before the EPA. We are unable to estimate the costs we may incur, if any, at this time. It is too early to assess how the U.S. Supreme Court decision will impact future small refinery exemptions or whether the remaining cases are expected to have any impact on us. We have been party to multiple proceedings before the Federal Energy Regulatory Commission (“FERC”) challenging the rates charged by SFPP, L.P. (“SFPP”) on its East Line pipeline facilities from El Paso, Texas to Phoenix, Arizona. In March 2018, FERC ruled that SFPP, as a master limited partnership, was prohibited from including an allowance for investor income taxes in the cost of service underlying its East Line rates. We reached a negotiated settlement with SFPP that provides for a payment to us of $51.5 million. FERC approved the settlement on December 31, 2020 subject to a rehearing period that resulted in a settlement effective date of February 2, 2021. Under the terms of the settlement agreement, SFPP made the $51.5 million payment to us on February 10, 2021. As of December 31, 2020, we had no enforceable right to collect any of the settlement. Accordingly, recognition of a gain occurred when the uncertainties were resolved on February 2, 2021, and we recorded as "Gain on tariff settlement" on our consolidated statements of operations for the year ended December 31, 2021. Contractual Commitments We have various long-term agreements (entered in the normal course of business) to purchase crude oil, natural gas, feedstocks and other resources to ensure we have adequate supplies to operate our refineries. The substantial majority of our purchase obligations are based on market prices or rates. These contracts expire i n 2022 through 2025. We also have long-term agreements with third parties for the transportation and storage of crude oil, natural gas and feedstocks to our refineries and for terminal and storage services that expire in 2022 through 2039 . At December 31, 2021 , the minimum future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: (In thousands) 2022 $ 166,456 2023 164,518 2024 163,507 2025 163,972 2026 129,572 Thereafter 839,775 Total $ 1,627,800 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operations are organized into four reportable segments: Refining, Renewables, Lubricants and Specialty Products and HEP. Our operations that are not included in one of these four reportable segments are included in Corporate and Other. Intersegment transactions are eliminated on our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column. The Refining segment represents the operations of our El Dorado, Tulsa, Navajo and Woods Cross refineries, HollyFrontier Asphalt Company LLC (“HFC Asphalt”) and also our recently acquired Puget Sound Refinery from the closing date on November 1, 2021 (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Refining segment also included the operations of our Cheyenne refinery until it permanently ceased petroleum refining operations during the third quarter of 2020. The Renewables segment represents activities associated with the conversion of our Cheyenne refinery to a renewable diesel unit (“RDU”), along with the construction of an RDU and a pre-treatment unit (“PTU”) in Artesia, New Mexico. The Cheyenne RDU was mechanically complete in the fourth quarter of 2021 and is expected to be fully operational in the first quarter of 2022. The PTU is expected to be completed in the first quarter of 2022, and the Artesia RDU is expected to be completed in the second quarter of 2022. The Lubricants and Specialty Products segment represents Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America. Also, effective with our acquisition that closed February 1, 2019, the Lubricants and Specialty Products segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP) and 50% ownership interest in each of the Osage Pipeline, the Cheyenne Pipeline and Cushing Connect. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings. The accounting policies for our segments are the same as those described in the summary of significant accounting policies, except that our Refining segment balance sheet excluded intercompany ROU assets and liabilities for operating leases prior to December 31, 2021 (see Note 1). The following is a summary of the financial information of our reportable segments reconciled to the amounts reported in the consolidated financial statements. Refining Renewables Lubricants and Specialty Products HEP Corporate, Other and Eliminations (2) Consolidated (In thousands) Year Ended December 31, 2021 Sales and other revenues: Revenues from external customers $ 15,734,870 $ — $ 2,550,624 $ 103,646 $ 2 $ 18,389,142 Intersegment revenues 623,688 — 9,988 390,849 (1,024,525) — $ 16,358,558 $ — $ 2,560,612 $ 494,495 $ (1,024,523) $ 18,389,142 Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 14,673,062 $ — $ 1,815,802 $ — $ (921,812) $ 15,567,052 Lower of cost or market inventory valuation adjustment $ (318,353) $ 8,739 $ — $ — $ (509) $ (310,123) Operating expenses $ 1,090,424 $ 55,353 $ 252,456 $ 170,524 $ (51,279) $ 1,517,478 Selling, general and administrative expenses $ 127,563 $ — $ 170,155 $ 12,637 $ 51,655 $ 362,010 Depreciation and amortization $ 334,365 $ 1,672 $ 79,767 $ 86,998 $ 737 $ 503,539 Income (loss) from operations $ 451,497 $ (65,764) $ 242,432 $ 224,336 $ (103,315) $ 749,186 Earnings of equity method investments $ — $ — $ — $ 12,432 $ — $ 12,432 Capital expenditures $ 160,431 $ 510,836 $ 30,878 $ 88,336 $ 22,928 $ 813,409 Year Ended December 31, 2020 Sales and other revenues: Revenues from external customers $ 9,286,658 $ — $ 1,792,745 $ 98,039 $ 6,201 $ 11,183,643 Intersegment revenues 252,531 — 10,465 399,809 (662,805) — $ 9,539,189 $ — $ 1,803,210 $ 497,848 $ (656,604) $ 11,183,643 Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 8,439,680 $ — $ 1,271,287 $ — $ (552,162) $ 9,158,805 Lower of cost or market inventory valuation adjustment $ 82,214 $ — $ — $ — $ (3,715) $ 78,499 Operating expenses $ 988,045 $ 3,861 $ 216,068 $ 147,692 $ (55,389) $ 1,300,277 Selling, general and administrative expenses $ 127,298 $ — $ 157,816 $ 9,989 $ 18,497 $ 313,600 Depreciation and amortization $ 324,617 $ — $ 80,656 $ 95,445 $ 20,194 $ 520,912 Goodwill and long-lived asset impairment (1) $ 241,760 $ — $ 286,575 $ 16,958 $ — $ 545,293 Income (loss) from operations $ (664,425) $ (3,861) $ (209,192) $ 227,764 $ (84,029) $ (733,743) Earnings of equity method investments $ — $ — $ — $ 6,647 $ — $ 6,647 Capital expenditures $ 152,726 $ 65,147 $ 32,473 $ 59,283 $ 20,531 $ 330,160 Refining Renewables Lubricants and Specialty Products HEP Corporate, Other and Eliminations (2) Consolidated (In thousands) Year Ended December 31, 2019 Sales and other revenues: Revenues from external customers $ 15,284,110 $ — $ 2,081,221 $ 121,027 $ 220 $ 17,486,578 Intersegment revenues 312,678 — 11,307 411,750 (735,735) — $ 15,596,788 $ — $ 2,092,528 $ 532,777 $ (735,515) $ 17,486,578 Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 12,980,506 $ — $ 1,580,036 $ — $ (642,158) $ 13,918,384 Lower of cost or market inventory valuation adjustment $ (119,775) $ — $ — $ — $ — $ (119,775) Operating expenses $ 1,095,488 $ — $ 231,523 $ 161,996 $ (94,955) $ 1,394,052 Selling, general and administrative expenses $ 120,518 $ — $ 168,595 $ 10,251 $ 54,872 $ 354,236 Depreciation and amortization $ 309,932 $ — $ 88,781 $ 96,706 $ 14,506 $ 509,925 Goodwill impairment $ — $ — $ 152,712 $ — $ — $ 152,712 Income (loss) from operations $ 1,210,119 $ — $ (129,119) $ 263,824 $ (67,780) $ 1,277,044 Earnings of equity method investments $ — $ — $ — $ 5,180 $ — $ 5,180 Capital expenditures $ 188,513 $ 10,489 $ 40,997 $ 30,112 $ 23,652 $ 293,763 (1) The results of our HEP reportable segment for the year ended December 31, 2020 include a long-lived asset impairment charge attributed to HEP’s logistics assets at our Cheyenne Refinery. (2) For the year ended December 31, 2020, Corporate and Other includes $14.0 million of decommissioning and other shutdown costs related to our Cheyenne Refinery. In addition, for the year ended December 31, 2020, Corporate and Other includes $11.4 million in other operating costs related to our Cheyenne facility. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business: 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 Annual Report on Form 10-K has been written in the first person. In these financial statements, 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. These financial statements contain 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. We are an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products and specialty and modified asphalt. As of December 31, 2021, we owned and operated petroleum refineries located in Kansas, Oklahoma, New Mexico, Utah and Washington, and we market our refined products principally in the Southwest United States, the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, we produce base oils and other specialized lubricants in the United States, Canada and the Netherlands, with retail and wholesale marketing of our products through a global sales network with locations in Canada, the United States, Europe, China and Latin America. Through our subsidiaries, we are constructing renewable diesel units at two of our facilities in Wyoming and New Mexico that will process renewable feedstocks into renewable diesel and a pre-treatment unit at our facility in New Mexico that will process renewable feedstocks for the units. We also own a 57% limited partner interest and a non-economic general partner interest in HEP, a variable interest entity (“VIE”). HEP owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. On August 2, 2021, HollyFrontier, Hippo Parent Corporation, a wholly owned subsidiary of HollyFrontier (“New Parent”), Hippo Merger Sub, Inc., a wholly owned subsidiary of New Parent, The Sinclair Companies (“Sinclair”), and Hippo Holding LLC, a wholly owned subsidiary of Sinclair (the “Target Company”), entered into a business combination agreement, pursuant to which HollyFrontier will acquire the Target Company. On May 4, 2021, HollyFrontier Puget Sound Refining LLC, a wholly owned subsidiary of HollyFrontier Corporation, entered into a sale and purchase agreement with Equilon Enterprises LLC d/b/a Shell Oil Products US (“Shell”) to acquire Shell’s Puget Sound refinery and related assets, including the on-site cogeneration facility and related logistics assets (the “Puget Sound Refinery”). The acquisition closed on November 1, 2021. On November 12, 2018, we entered into an equity purchase agreement to acquire 100% of the issued and outstanding capital stock of Sonneborn US Holdings Inc. and 100% of the membership rights in Sonneborn Coöperatief U.A. (collectively, “Sonneborn”). The acquisition closed on February 1, 2019. See Note 2 for additional information on these acquisitions. On April 27, 2021, our wholly owned subsidiary, 7037619 Canada Inc., entered into a contract for sale of real property in Mississauga, Ontario for base consideration of $98.8 million, or CAD 125 million. The transaction closed on September 15, 2021, and we recorded a gain on sale of assets totaling $86.0 million for the year ended December 31, 2021, which was recognized in “Gain on sale of assets and other” on our consolidated statements of operations. During the first quarter of 2021, we initiated a restructuring within our Lubricants and Specialty Products segment. As a result of this restructuring, we recorded $7.8 million in employee severance costs for the year ended December 31, 2021, which were recognized primarily as selling, general and administrative expenses in our Lubricants and Specialty Products segment. In the third quarter of 2020, we permanently ceased petroleum refining operations at our Cheyenne, Wyoming refinery (the “Cheyenne Refinery”) and subsequently began converting certain assets at our Cheyenne Refinery to renewable diesel production. In connection with the cessation of petroleum refining operations at our Cheyenne Refinery, we recognized $25.8 million in decommissioning expense and $1.0 million in employee severance costs for the year ended December 31, 2021, which were recognized in operating expenses in our Corporate and Other segment. During the second quarter of 2020, we recorded long-lived asset impairment charges o f $232.2 million related to our Cheyenne Refinery asset group. Also, we recognized $24.7 million in decommissioning expense and $3.8 million in employee severance costs for the year ended December 31, 2020. Additionally, we recorded a reserve of $9.0 million against our repair and maintenance supplies inventory. These decommissioning, inventory reserve and severance costs were recognized in operating expenses, of which $24.8 million was recorded in our Refining segment and $12.7 million was recorded in our Corporate and Other segment. During the second quarter of 2020, we also initiated and completed a corporate restructuring. As a result of this restructuring, we recorded $3.7 million in employee severance costs, which were recognized primarily as operating expenses in our Refining segment and selling, general and administrative expenses in our Corporate and Other segment. |
Principles of Consolidation | Principles of Consolidation: Our consolidated financial statements include our accounts and the accounts of partnerships and joint ventures that we control through an ownership interest greater than 50% or through a controlling financial interest with respect to variable interest entities. All significant intercompany transactions and balances have been eliminated. |
Variable Interest Entity | Variable Interest Entities: HEP is a VIE as defined under U.S. generally accepted accounting principles (“GAAP”). A VIE is a legal entity whose equity owners do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the equity holders lack the power, through voting rights, to direct the activities that most significantly impact the entity's financial performance, the obligation to absorb the entity's expected losses or rights to expected residual returns. As the general partner of HEP, we have the sole ability to direct the activities of HEP that most significantly impact HEP's financial performance, and therefore as HEP's primary beneficiary, we consolidate HEP. In 2019, HEP Cushing LLC, a wholly-owned subsidiary of HEP, and Plains Marketing, L.P., a wholly-owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC. Cushing Connect Pipeline & Terminal LLC and its two subsidiaries, Cushing Connect Pipeline and Cushing Connect Terminal, are each VIE’s because they do not have sufficient equity at risk to finance their activities without additional financial support. HEP is the primary beneficiary of two of these entities as HEP constructed and operates the Cushing Connect Pipeline, and HEP has more ability to direct the activities that most significantly impact the financial performance of Cushing Connect Pipeline & Terminal LLC and Cushing Connect Pipeline. Therefore, HEP consolidates these two entities. HEP is not the primary beneficiary of Cushing Connect Terminal, which HEP accounts for using the equity method of accounting. |
Use of Estimates | Use of Estimates : The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents: We consider all highly liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates market value and are primarily invested in highly-rated instruments issued by government or municipal entities with strong credit standings. |
Balance Sheet Offsetting | Balance Sheet Offsetting : We purchase and sell inventories of crude oil with certain same-parties that are net settled in accordance with contractual net settlement provisions. Our policy is to present such balances on a net basis since it presents our accounts receivables and payables consistent with our contractual settlement provisions. |
Accounts Receivable | Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer's financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for expected credit losses based on our historical loss experience as well as expected credit losses from current economic conditions and management’s expectations of future economic conditions. Credit losses are charged to the allowance for expected credit losses when an account is deemed uncollectible. Our allowance for expected credit losses was $3.7 million at December 31, 2021 and $3.4 million at December 31, 2020. Accounts receivable attributable to crude oil resales generally represent the sale of excess crude oil to other purchasers and / or users in cases when our crude oil supplies are in excess of our immediate needs as well as certain reciprocal buy / sell exchanges of crude oil. At times we enter into such buy / sell exchanges to facilitate the delivery of quantities to certain locations. In many cases, we enter into net settlement agreements relating to the buy / sell arrangements, which may mitigate credit risk. |
Inventories | Inventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. Inventories related to our renewable business are stated at the lower of cost, using the LIFO method for feedstock and unfinished and finished renewable products, or market. Cost, consisting of raw material, transportation and conversion costs, is determined using the LIFO inventory valuation methodology and market is determined using current replacement costs. Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation. Inventories of our Petro-Canada Lubricants and Sonneborn businesses are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value. Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value. Leases: At inception, we determine if an arrangement is or contains a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our payment obligation under the leasing arrangement. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in “Operating lease right-of-use assets” and current and noncurrent “Operating lease liabilities” on our consolidated balance sheet. Finance leases are included in “Properties, plants and equipment, at cost” and “Accrued liabilities” and “Other long-term liabilities” on our consolidated balance sheet. Our lease term includes an option to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet. For certain equipment leases, we apply a portfolio approach for the operating lease ROU assets and liabilities. Also, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations. In addition, HEP, as a lessor, does not separate the non-lease (service) component in contracts in which the lease component is the dominant component. HEP treats these combined components as an operating lease. |
Derivative Instruments | Derivative Instruments: All derivative instruments are recognized as either assets or liabilities on our consolidated balance sheets and are measured at fair value. Changes in the derivative instrument's fair value are recognized in earnings unless specific hedge accounting criteria are met. Cash flows from all our derivative activity are reported in the operating section on our consolidated statement of cash flows. See Note 14 for additional information. |
Property, Plant and Equipment | Properties, Plants and Equipment: Properties, plants and equipment are stated at cost. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 32 years for refining, pipeline and terminal facilities, 10 to 40 years for buildings and improvements, 5 to 30 years for other fixed assets and 5 years for vehicles. |
Asset Retirement Obligations | Asset Retirement Obligations: We record legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and / or the normal operation of long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded as a liability with the associated retirement costs capitalized as part of the asset's carrying amount in the period in which it is incurred and when a reasonable estimate of the fair value of the liability can be made. If a reasonable estimate cannot be made at the time the liability is incurred, we record the liability when sufficient information is available to estimate the liability's fair value. Certain of our refining assets have no recorded liability for asset retirement obligations since the timing of any retirement and related costs are currently indeterminable. Our asset retirement obligations were $52.5 million and $42.6 million at December 31, 2021 and 2020, respectively, which are included in “Other long-term liabilities” on our consolidated balance sheets. Accretion expense was insignificant for the years ended December 31, 2021, 2020 and 2019. Asset retirement obligations assumed in the Puget Sound Acquisition, as defined in Note 2, were $8.5 million. |
Intangibles, Goodwill and Long-lived Assets | Intangibles, Goodwill and Long-lived Assets: Intangible assets are assets (other than financial assets) that lack physical substance, and goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill acquired in a business combination and intangibles with indefinite useful lives are not amortized, whereas intangible assets with finite useful lives are amortized on a straight-line basis. Goodwill and intangible assets that are not subject to amortization are tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the carrying amount of the reporting unit is greater than its fair value, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the related fair value. The carrying amount of our intangible assets and goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill and intangible assets assigned to our Lubricants and Specialty Products segment. For purposes of long-lived asset impairment evaluation, we group our long-lived assets as follows: (i) our refinery asset groups, which include certain HEP logistics assets, (ii) our Lubricants and Specialty Products asset groups and (iii) our HEP asset groups, which comprises HEP assets not included in our refinery asset groups. These asset groups represent the lowest level for which independent cash flows can be identified. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. |
Equity Method Investments | Equity Method Investments: We account for investments in which we have a noncontrolling interest, yet have significant influence over the entity, using the equity method of accounting, whereby we record our pro-rata share of earnings and contributions to and distributions from joint ventures as adjustments to our investment balance. HEP has a 50% interest in Osage Pipe Line Company, LLC and a 50% interest in Cheyenne Pipeline, LLC. HEP also accounts for Cushing Connect Terminal, a subsidiary of the Cushing Connect Pipeline & Terminal LLC joint venture, using the equity method of accounting, as HEP does not have the ability to direct the activities that most significantly impact the entity. As of December 31, 2021, HEP's underlying equity and recorded investment balances in the joint ventures are $90.8 million and $116.4 million |
Revenue Recognition | Revenue Recognition: Revenues on refined product and excess crude oil sales are recognized when delivered (via pipeline, in-tank or rack) and the customer obtains control of such inventory, which is typically when title passes and the customer is billed. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported as cost of products sold. Our lubricants and specialty products business has sales agreements with marketers and distributors that provide certain rights of return or provisions for the repurchase of products previously sold to them. Under these agreements, revenues and cost of revenues are deferred until the products have been sold to end customers. Our lubricants and specialty products business also has agreements that create an obligation to deliver products at a future date for which consideration has already been received and recorded as deferred revenue. This revenue is recognized when the products are delivered to the customer. HEP recognizes revenues as products are shipped through its pipelines and terminals and as other services are rendered. Additionally, HEP has certain throughput agreements that specify minimum volume requirements, whereby HEP bills a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, HEP recognizes these deficiency payments as revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. HEP recognizes the service portion of these deficiency payments as revenue when HEP does not expect it will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 30 days of the date of invoice. |
Cost Classifications | Cost Classifications: Costs of products sold include the cost of crude oil, other feedstocks, blendstocks and purchased finished products, inclusive of transportation costs. 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 cost of products sold. Additionally, 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. Operating expenses include direct costs of labor, maintenance materials and services, utilities and other direct operating costs. Selling, general and administrative expenses include compensation, professional services and other support costs. |
Deferred Maintenance Costs | Deferred Maintenance Costs: Our refinery units require regular major maintenance and repairs which are commonly referred to as “turnarounds.” Catalysts used in certain refinery processes also require regular “change-outs.” The required frequency of the maintenance varies by unit and by catalyst, but generally is every two |
Environmental Costs | Environmental Costs: Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. We have ongoing investigations of environmental matters at various locations and routinely assess our recorded environmental obligations, if any, with respect to such matters. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable. |
Contingencies | Contingencies: We are subject to proceedings, lawsuits and other claims related to environmental, labor, product and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. We accrue for contingencies when it is probable that a loss has occurred and when the amount of that loss is reasonably estimable. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. |
Foreign Currency Translation | Foreign Currency Translation: Assets and liabilities recorded in foreign currencies are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income. We have intercompany notes that were issued to fund certain of our foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing amounts to functional currencies are recorded as gains or losses as a component of other income (expense) on our consolidated statements of operations. Such adjustments are not recorded to the Lubricants and Specialty Products segment operations, but to Corporate and Other. See Note 20 for additional information on our segments. |
Income Taxes | Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. We account for U.S. tax on global intangible low-taxed income in the period in which it is incurred. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. |
Inventory Repurchase Obligations | Inventory Repurchase Obligations: We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as inventory repurchase obligations that are subsequently reversed when the inventories are repurchased. For the years ended December 31, 2021, 2020 and 2019, we received proceeds of $43.5 million, $44.9 million and $52.1 million and subsequently repaid $45.4 million, $46.4 million and $49.2 million, respectively, under these sell / buy transactions. |
Accounting Pronouncements - Not Yet Adopted | Accounting Pronouncements - Not Yet Adopted In October 2021, Accounting Standards Update 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” was issued requiring that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.” This standard is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. We will evaluate the impact of this standard and consider early adoption, if applicable. |
Fair Value Measurement | Our financial instruments measured at fair value on a recurring basis consist of derivative instruments and RINs credit obligations. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets and Liabilities Acquired | The following summarizes the Puget Sound Refinery fair value of assets acquired and liabilities assumed on November 1, 2021: (In thousands) Assets Acquired Inventories: Crude oil and refined products $ 277,887 Inventories: Materials, supplies and other 21,460 Properties, plants and equipment (1) 394,237 Other assets 10,400 Total assets acquired $ 703,984 Liabilities Assumed Accrued and other current liabilities (1) $ 12,524 Other long-term liabilities (1) 67,128 Total liabilities assumed 79,652 Net assets acquired $ 624,332 (1) Properties, plant and equipment include $61.5 million of financing lease ROU assets. Current and noncurrent financing lease liabilities were $7.9 million and $53.6 million, respectively. |
Schedule of Business Combination Proforma Results | The pro forma combined condensed financial data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Puget Sound Acquisition taken place on January 1, 2020 and is not intended to be a projection of future results. Years Ended December 31, 2021 2020 (In thousands) Sales and other revenues $ 21,476,142 $ 13,183,620 Net income (loss) attributable to HollyFrontier stockholders $ 601,210 $ (802,234) The following pro forma information for the years ended December 31, 2021 and 2020 presents the revenues and operating income (loss) for our Refining segment assuming the Puget Sound Acquisition had occurred on January 1, 2020. Years Ended December 31, 2021 2020 (In thousands) Sales and other revenues $ 19,445,558 $ 11,539,166 Income (loss) from operations $ 509,450 $ (934,061) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheets. December 31, 2021 2020 (In thousands) Operating leases: Operating lease right-of-use assets $ 396,191 $ 350,548 Operating lease liabilities 110,606 97,937 Noncurrent operating lease liabilities 308,747 285,785 Total operating lease liabilities $ 419,353 $ 383,722 Finance leases: Properties, plants and equipment, at cost $ 75,885 $ 24,321 Accumulated amortization (8,945) (5,713) Properties, plants and equipment, net $ 66,940 $ 18,608 Accrued liabilities $ 10,510 $ 1,916 Other long-term liabilities 56,556 5,097 Total finance lease liabilities $ 67,066 $ 7,013 Supplemental balance sheet information related to our leases was as follows: December 31, 2021 2020 Weighted average remaining lease term (in years) Operating leases 7.4 7.2 Finance leases 8.6 3.3 Weighted average discount rate Operating leases 3.8 % 4.1 % Finance leases 3.9 % 5.3 % |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Operating lease expense $ 117,292 $ 121,608 $ 112,770 Finance lease expense: Amortization of right-of-use assets 4,295 4,400 1,543 Interest on lease liabilities 733 415 334 Variable lease cost 3,645 3,580 4,449 Total lease expense $ 125,965 $ 130,003 $ 119,096 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 129,577 $ 126,313 $ 116,980 Operating cash flows from finance leases $ 733 $ 415 $ 334 Financing cash flows from finance leases $ 3,990 $ 2,995 $ 1,551 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 147,718 $ 18,823 $ 121,750 Finance leases $ 64,334 $ 4,085 $ 2,096 |
Schedule of Operating and Finance Lease Maturities | As of December 31, 2021, minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) 2022 $ 122,907 $ 13,096 2023 106,008 11,438 2024 77,770 8,292 2025 29,589 7,567 2026 22,046 6,711 Thereafter 143,337 33,208 Future minimum lease payments 501,657 80,312 Less: imputed interest 82,304 13,246 Total lease obligations 419,353 67,066 Less: current obligations 110,606 10,510 Long-term lease obligations $ 308,747 $ 56,556 |
Schedule of Lease Income | Lease income recognized was as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Operating lease revenues $ 15,281 $ 22,636 $ 33,242 Gain on sales-type leases $ — $ 33,834 $ — Sales-type lease interest income $ 2,545 $ 1,928 $ — Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 2,162 $ 1,690 $ — |
Schedule of Minimum Undiscounted Lease Payments | Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of December 31, 2021 were as follows: Operating Sales-type (In thousands) 2022 $ 9,810 $ 2,955 2023 9,676 2,955 2024 9,676 2,955 2025 2,681 2,955 2026 — 2,955 Thereafter — 24,380 Total lease payment receipts $ 31,843 39,155 Less: imputed interest (29,716) 9,439 Unguaranteed residual assets at end of leases 25,182 Net investment in leases $ 34,621 |
Schedule of Net Investments in Operating Leases | Net investment in sales-type leases recorded on our consolidated balance sheet was composed of the following: December 31, 2021 December 31, 2020 (In thousands) Lease receivables $ 24,962 $ 26,045 Unguaranteed residual assets 9,659 8,985 Net investment in leases $ 34,621 $ 35,030 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | Disaggregated revenues were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Revenues by type Refined product revenues Transportation fuels (1) $ 13,414,543 $ 7,825,625 $ 12,952,899 Specialty lubricant products (2) 2,322,242 1,657,344 1,864,450 Asphalt, fuel oil and other products (3) 948,581 672,371 1,025,663 Total refined product revenues 16,685,366 10,155,340 15,843,012 Excess crude oil revenues (4) 1,547,696 884,248 1,470,148 Transportation and logistic services 103,646 98,039 121,027 Other revenues (5) 52,434 46,016 52,391 Total sales and other revenues $ 18,389,142 $ 11,183,643 $ 17,486,578 Years Ended December 31, 2021 2020 2019 (In thousands) Refined product revenues by market United States Mid-Continent $ 9,094,885 $ 5,096,268 $ 8,424,191 Southwest 3,477,562 2,310,432 3,621,273 Rocky Mountains/Pacific Northwest 2,118,619 1,311,416 2,208,541 Northeast 824,900 552,069 578,932 Canada 836,317 616,683 721,169 Europe, Asia and Latin America 333,083 268,472 288,906 Total refined product revenues $ 16,685,366 $ 10,155,340 $ 15,843,012 (1) Transportation fuels consist of gasoline, diesel and jet fuel. For the year ended December 31, 2020, $1.6 million is reported in our Corporate and Other segment. (2) Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3) Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $724.3 million and $224.3 million, respectively, for the year ended December 31, 2021. For the year ended December 31, 2020 such revenues attributable to our Refining, Lubricants and Specialty Products and Corporate and Other segments were $533.5 million, $135.4 million and $3.5 million respectively. For the year ended December 31, 2019 such revenue attributable to our Refining and Lubricants and Specialty Products segments were $808.9 million and $216.8 million, respectively. (4) Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5) Other revenues are principally attributable to our Refining segment. |
Schedule of Changes to Contract Liabilities | The following table presents changes to contract liabilities: Years Ended December 31, 2021 2020 2019 (In thousands) Balance at January 1 $ 6,738 $ 4,652 $ 132 Sonneborn acquisition — — 6,463 Increase 32,301 28,746 26,751 Recognized as revenue (29,761) (26,660) (28,694) Balance at December 31 $ 9,278 $ 6,738 $ 4,652 |
Schedule of Aggregate Minimum Volumes Expected to be Sold Under Long-term Sales Contracts | Aggregate minimum volumes expected to be sold (future performance obligations) under our long-term product sales contracts with customers are as follows: 2022 2023 2024 2025 Total (In thousands) Refined product sales volumes (barrels) 13,771 12,795 11,697 1 38,264 2022 2023 2024 2025 Total (In thousands) HEP contractual minimum revenues $ 11,770 $ 9,676 $ 9,676 $ 2,681 $ 33,803 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Of Asset and Liability Instruments | The carrying amounts of derivative instruments and RINs credit obligations were as follows: Carrying Amount Fair Value by Input Level Financial Instrument Level 1 Level 2 Level 3 (In thousands) December 31, 2021 Assets: Commodity forward contracts $ 286 $ — $ 286 $ — Foreign currency forward contracts 6,177 — 6,177 — Total assets $ 6,463 $ — $ 6,463 $ — Liabilities: NYMEX futures contracts $ 1,269 $ 1,269 $ — $ — Commodity forward contracts 566 — 566 — RINs credit obligations (1) 9,429 — 9,429 — Total liabilities $ 11,264 $ 1,269 $ 9,995 $ — Carrying Amount Fair Value by Input Level Financial Instrument Level 1 Level 2 Level 3 (In thousands) December 31, 2020 Assets: Commodity forward contracts $ 275 $ — $ 275 $ — Total assets $ 275 $ — $ 275 $ — Liabilities: NYMEX futures contracts $ 418 $ 418 $ — $ — Commodity price swaps 359 — 359 — Commodity forward contracts 196 — 196 — Foreign currency forward contracts 23,005 — 23,005 — Total liabilities $ 23,978 $ 418 $ 23,560 $ — (1) Represent obligations for RINs credits for which we did not have sufficient quantities at December 31, 2021 to satisfy our Environmental Protection Agency (“EPA”) regulatory blending requirements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders: Years Ended December 31, 2021 2020 2019 (In thousands, except per share data) Net income (loss) attributable to HollyFrontier stockholders $ 558,324 $ (601,448) $ 772,388 Participating securities’ share in earnings (1) 7,465 1,811 1,034 Net income (loss) attributable to common shares $ 550,859 $ (603,259) $ 771,354 Average number of shares of common stock outstanding 162,569 161,983 166,287 Effect of dilutive variable restricted stock units and performance share units — — 1,098 Average number of shares of common stock outstanding assuming dilution 162,569 161,983 167,385 Basic earnings (loss) per share $ 3.39 $ (3.72) $ 4.64 Diluted earnings (loss) per share $ 3.39 $ (3.72) $ 4.61 (1) Unvested restricted stock unit awards and unvested performance share units that settle in HollyFrontier common stock represent participating securities because they participate in nonforfeitable dividends or distributions with the common stockholders of HollyFrontier. Participating earnings represent the distributed and undistributed earnings of HollyFrontier attributable to the participating securities. Unvested restricted stock unit awards and performance share units do not participate in undistributed net losses as they are not contractually obligated to do so. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Activity | The compensation expense and associated tax benefit were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Compensation expense: Restricted stock units $ 29,453 $ 23,539 $ 26,833 Performance stock units 12,591 6,130 14,679 Total compensation expense $ 42,044 $ 29,669 $ 41,512 Tax benefit recognized on compensation expense $ 10,545 $ 3,965 $ 13,253 |
Schedule of Restricted Stock Activity | A summary of restricted stock unit activity during the year ended December 31, 2021 is presented below: Restricted Stock Units Grants Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 2,057,045 $ 29.76 Granted 564,146 $ 33.95 Vested (840,648) $ 33.76 Forfeited (176,003) $ 29.98 Outstanding at December 31, 2021 1,604,540 $ 29.11 |
Schedule Of Performance Share Activity | A summary of performance share unit activity and changes during the year ended December 31, 2021 is presented below: Performance Share Units Grants Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 635,204 $ 35.45 Granted 320,717 $ 38.50 Vested (53,145) $ 84.35 Forfeited (38,150) $ 37.27 Outstanding at December 31, 2021 864,626 $ 33.49 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | Inventory consists of the following components: December 31, 2021 2020 (In thousands) Crude oil $ 630,873 $ 451,967 Other raw materials and unfinished products (1) 530,067 260,495 Finished products (2) 726,930 595,696 Lower of cost or market reserve (8,739) (318,862) Process chemicals (3) 43,025 35,006 Repairs and maintenance supplies and other (4) 199,972 149,174 Total inventory $ 2,122,128 $ 1,173,476 (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. (3) Process chemicals include additives and other chemicals. (4) Includes RINs |
Properties, Plants and Equipm_2
Properties, Plants and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plants and Equipment | The components of properties, plants and equipment are as follows: December 31, 2021 2020 (In thousands) Land, buildings and improvements $ 607,554 $ 517,829 Refining facilities 4,839,926 4,202,524 Pipelines and terminals 1,956,008 1,786,279 Transportation vehicles 27,809 26,715 Other fixed assets 306,606 400,159 Construction in progress 710,304 366,011 8,448,207 7,299,517 Accumulated depreciation (3,033,353) (2,726,378) $ 5,414,854 $ 4,573,139 |
Goodwill, Long-lived Asset an_2
Goodwill, Long-lived Asset and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The following is a summary of our goodwill by segment: Refining Lubricants and Specialty Products HEP Total (In thousands) Balance at December 31, 2020 $ 1,733,472 $ 247,590 $ 312,873 $ 2,293,935 Foreign currency translation adjustment — (891) — (891) Balance at December 31, 2021 $ 1,733,472 $ 246,699 $ 312,873 $ 2,293,044 Balance at December 31, 2021 Goodwill $ 2,042,790 $ 481,278 $ 312,873 $ 2,836,941 Accumulated impairment losses (309,318) (234,579) — (543,897) $ 1,733,472 $ 246,699 $ 312,873 $ 2,293,044 |
Schedule of Intangible Assets | The carrying amounts of our intangible assets presented in “Intangibles and other” on our consolidated balance sheets are as follows: December 31 Useful Life 2021 2020 (In thousands) Customer relationships 10 - 20 years $ 237,856 $ 239,773 Transportation agreements 30 years 59,933 59,933 Trademarks, patents and other 10 - 20 years 157,392 157,120 455,181 456,826 Accumulated amortization (156,123) (122,024) Total intangibles, net $ 299,058 $ 334,802 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Carrying Amounts | The carrying amounts of long-term debt are as follows: December 31, 2021 2020 (In thousands) HollyFrontier 2.625% Senior Notes $ 350,000 $ 350,000 5.875% Senior Notes 1,000,000 1,000,000 4.500% Senior Notes 400,000 400,000 1,750,000 1,750,000 Unamortized discount and debt issuance costs (10,312) (12,885) Total HollyFrontier long-term debt 1,739,688 1,737,115 HEP Credit Agreement 840,000 913,500 HEP 5.000% Senior Notes Principal 500,000 500,000 Unamortized discount and debt issuance costs (6,951) (7,897) Total HEP long-term debt 1,333,049 1,405,603 Total long-term debt $ 3,072,737 $ 3,142,718 The fair values of the senior notes are as follows: December 31, 2021 2020 (In thousands) HollyFrontier Senior Notes $ 1,912,753 $ 1,903,867 HEP Senior Notes $ 502,705 $ 506,540 These fair values are based on a Level 2 input. See Note 6 for additional information on Level 2 inputs. |
Schedule of Principal Maturities of Long-Term Debt | Principal maturities of long-term debt as of December 31, 2021 are as follows: Years Ending December 31, (In thousands) 2022 $ — 2023 350,000 2024 — 2025 840,000 2026 1,000,000 Thereafter 900,000 Total $ 3,090,000 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Unrealized Gain (Loss) Recognized in OCI and Gain (Loss) Reclassified into Earnings | The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of hedging instruments under hedge accounting: Net Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Years Ended December 31, Statement of Operations Location Years Ended December 31, 2021 2020 2019 2021 2020 2019 (In thousands) Commodity contracts $ 31 $ (4,871) $ (5,349) Sales and other revenues $ (19,239) $ (5,168) $ (1,799) Cost of products sold — 4,281 22,876 Operating expenses 1,660 (1,717) (1,364) Total $ 31 $ (4,871) $ (5,349) $ (17,579) $ (2,604) $ 19,713 |
Schedule of Gain (Loss) Recognized in Earnings | The following table presents the pre-tax effect on earnings due to maturities and fair value adjustments of our economic hedges: Gain (Loss) Recognized in Earnings Derivatives Not Designated as Hedging Instruments Years Ended December 31, Statement of Operations Location 2021 2020 2019 (In thousands) Commodity contracts Cost of products sold $ (22,909) $ 18,646 $ (8,475) Interest expense 11,816 (4,250) (6,427) Foreign currency contracts Gain (loss) on foreign currency transactions (4,013) (7,300) (17,430) Total $ (15,106) $ 7,096 $ (32,332) |
Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges | As of December 31, 2021, we have the following notional contract volumes related to outstanding derivative instruments (all maturing in 2022): Total Outstanding Notional Unit of Measure Derivatives designated as hedging instruments: Forward crude oil contracts - short 70,000 Barrels Derivatives not designated as hedging instruments: NYMEX futures (WTI) - short 495,000 Barrels Forward gasoline contracts - long 40,000 Barrels Foreign currency forward contracts 450,686,305 U. S. dollar Forward commodity contracts (platinum) 38,723 Troy ounces |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position on our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements. Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2021 Derivatives designated as cash flow hedging instruments: Commodity forward contracts $ — $ — $ — $ 238 $ — $ 238 $ — $ — $ — $ 238 $ — $ 238 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ — $ — $ — $ 1,269 $ — $ 1,269 Commodity forward contracts 286 — 286 328 — 328 Foreign currency forward contracts 7,494 (1,317) 6,177 — — — $ 7,780 $ (1,317) $ 6,463 $ 1,597 $ — $ 1,597 Total net balance $ 6,463 $ 1,835 Balance sheet classification: Prepayment and other $ 6,463 Accrued liabilities $ 1,835 Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2020 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 359 $ — $ 359 $ — $ — $ — $ 359 $ — $ 359 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ — $ — $ — $ 418 $ — $ 418 Commodity forward contracts 275 — 275 196 — 196 Foreign currency forward contracts — — — 23,005 — 23,005 $ 275 $ — $ 275 $ 23,619 $ — $ 23,619 Total net balance $ 275 $ 23,978 Balance sheet classification: Prepayments and other $ 275 Accrued liabilities $ 23,978 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision For Income Taxes | The provision for income taxes is comprised of the following: Years Ended December 31, 2021 2020 2019 (In thousands) Current Federal $ (33,206) $ (59,452) $ 187,134 State (1,802) (5,391) 29,547 Foreign 30,336 9,423 3,805 Deferred Federal 94,353 (64,836) 77,916 State 1,386 (52,872) 26,073 Foreign 32,831 (59,019) (25,323) $ 123,898 $ (232,147) $ 299,152 |
Schedule of Effective Tax Rate to Income Tax Expense (Benefit) | The statutory federal income tax rate applied to pre-tax book income reconciles to income tax expense (benefit) as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Tax computed at statutory rate $ 165,302 $ (156,880) $ 246,013 State income taxes, net of federal tax benefit 13,588 (41,566) 47,259 Noncontrolling interest in net income (25,931) (21,799) (25,494) Effect of change in state rate (13,342) — — CARES Act benefits (10,384) (19,837) — Foreign rate differential 331 (14,294) — Federal tax credits (29,777) — — US tax on non-US operations 18,547 — — Effect of nondeductible goodwill impairment charge — 16,573 32,069 Other 5,564 5,656 (695) $ 123,898 $ (232,147) $ 299,152 |
Schedule of Deferred Income Tax Assets And Liabilities | Our deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows: December 31, 2021 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (741,970) $ (741,970) Lease obligation 131,567 — 131,567 Accrued employee benefits 17,322 — 17,322 Accrued post-retirement benefits 10,897 — 10,897 Accrued environmental costs 26,999 — 26,999 Hedging instruments — (652) (652) Inventory differences — (148,539) (148,539) Deferred turnaround costs — (100,585) (100,585) Net operating loss and tax credit carryforwards 63,967 — 63,967 Investment in HEP — (94,486) (94,486) Valuation allowance — (3,165) (3,165) Other 1,244 — 1,244 Total $ 251,996 $ (1,089,397) $ (837,401) December 31, 2020 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (712,339) $ (712,339) Lease obligation 94,447 — 94,447 Accrued employee benefits 21,819 — 21,819 Accrued post-retirement benefits 11,646 — 11,646 Accrued environmental costs 27,200 — 27,200 Hedging instruments — (903) (903) Inventory differences — (24,271) (24,271) Deferred turnaround costs — (85,326) (85,326) Net operating loss and tax credit carryforwards 51,227 — 51,227 Investment in HEP — (94,982) (94,982) Valuation allowance — (8,577) (8,577) Other 6,356 — 6,356 Total $ 212,695 $ (926,398) $ (713,703) |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Balance at January 1 $ 54,899 $ 56,621 $ 53,752 Additions for tax positions of prior years — 6 2,893 Reductions for tax positions of prior years (49) (1,500) (24) Settlements (125) — — Lapse of statute of limitations (120) (228) — Balance at December 31 $ 54,605 $ 54,899 $ 56,621 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedules Shares of Common Stock Outstanding Activity | Shares of our common stock outstanding and activity for the years ended December 31, 2021, 2020 and 2019 are presented below: Years Ended December 31, 2021 2020 2019 Common shares outstanding at January 1 162,413,660 161,846,525 172,121,491 Vesting of performance units 67,846 296,801 592,602 Vesting of restricted stock and restricted stock units 737,091 553,381 412,465 Forfeitures of restricted stock — — (13,807) Purchase of treasury stock (1) (217,151) (283,047) (11,266,226) Common shares outstanding at December 31 163,001,446 162,413,660 161,846,525 (1) Includes 217,151, 283,047 and 415,466 shares, respectively, withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards, as well as other stock repurchases under separate authority from our Board of Directors. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |
Schedule of Components and Allocated Tax Effects of OCI | The components and allocated tax effects of other comprehensive income are as follows: Before-Tax Tax Expense After-Tax (In thousands) Year Ended December 31, 2021 Net change in foreign currency translation adjustment $ (13,336) $ (2,793) $ (10,543) Net unrealized gain on hedging instruments 31 8 23 Net change in pension and other post-retirement benefit obligations (457) (186) (271) Other comprehensive loss attributable to HollyFrontier stockholders $ (13,762) $ (2,971) $ (10,791) Year Ended December 31, 2020 Net change in foreign currency translation adjustment $ 6,226 $ 1,357 $ 4,869 Net unrealized loss on hedging instruments (4,871) (1,228) (3,643) Net change in pension and other post-retirement benefit obligations (3,461) (923) (2,538) Other comprehensive loss attributable to HollyFrontier stockholders $ (2,106) $ (794) $ (1,312) Year Ended December 31, 2019 Net change in foreign currency translation adjustment $ 13,337 $ 2,848 $ 10,489 Net unrealized loss on hedging instruments (5,349) (1,365) (3,984) Net change in pension and other post-retirement benefit obligations (7,207) (1,853) (5,354) Other comprehensive income attributable to HollyFrontier stockholders $ 781 $ (370) $ 1,151 |
Schedule of Income Statement Line Items Effects Out of AOCI | The following table presents the statement of operations line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”): AOCI Component Gain (Loss) Reclassified From AOCI Statement of Operations Line Item Years Ended December 31, 2021 2020 2019 (In thousands) Hedging instruments: Commodity price swaps $ (19,239) $ (5,168) $ (1,799) Sales and other revenues — 4,281 22,876 Cost of products sold 1,660 (1,717) (1,364) Operating expenses (17,579) (2,604) 19,713 (4,430) (664) 5,027 Income tax expense (benefit) (13,149) (1,940) 14,686 Net of tax Other post-retirement benefit obligations: Pension obligations 407 422 — Other, net 103 108 — Income tax expense 304 314 — Net of tax Post-retirement healthcare obligations 3,328 3,564 3,587 Other, net 839 909 915 Income tax expense 2,489 2,655 2,672 Net of tax Retirement restoration plan (39) (22) (6) Other, net (10) (6) (2) Income tax benefit (29) (16) (4) Net of tax Total reclassifications for the period $ (10,385) $ 1,013 $ 17,354 |
Schedule of AOCI in Equity | Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: Years Ended December 31, 2021 2020 (In thousands) Foreign currency translation adjustment $ (7,861) $ 2,682 Unrealized loss on pension obligations 1,449 (248) Unrealized gain on post-retirement benefit obligations 9,342 11,310 Unrealized loss on hedging instruments (259) (282) Accumulated other comprehensive income $ 2,671 $ 13,462 |
Pension and Post-retirement P_2
Pension and Post-retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligation and Plan Assets to PCLI Pension Plans | The following table sets forth the changes in the benefit obligation and plan assets of our PCLI pension plans and Sonneborn Netherlands plans for the years ended December 31, 2021 and 2020. Years Ended December 31, 2021 2020 (In thousands) Change in plans' benefit obligations Pension plans benefit obligation - beginning of period $ 126,620 $ 110,410 Service cost 4,455 3,929 Interest cost 2,740 2,772 Actuarial (gain) loss (7,363) 8,391 Benefits paid (4,211) (1,558) Curtailment — (4,078) Contractual termination benefits — 915 Transfer from other plans 706 479 Foreign currency exchange rate changes (2,533) 5,360 Pension plans benefit obligation - end of year $ 120,414 $ 126,620 Change in pension plans assets Fair value of plans assets - beginning of period $ 123,950 $ 105,358 Return on plans assets (2,228) 10,936 Employer contributions 3,542 3,487 Benefits paid (4,211) (1,558) Transfer payments 706 479 Foreign currency exchange rate changes (2,434) 5,248 Fair value of plans assets - end of year $ 119,325 $ 123,950 Funded status Under-funded balance $ (1,089) $ (2,670) Amounts recognized in consolidated balance sheets Other long-term liabilities $ (1,089) $ (2,670) Amounts recognized in accumulated other comprehensive income Cumulative actuarial loss $ (1) $ (1,658) |
Schedule of Projected Benefit Obligation in Excess of Fair Value | The following tables provide information regarding pension plans with a projected benefit obligation and accumulated benefit obligation in excess of the fair value of plan assets: December 31, 2021 2020 (In thousands) Projected benefit obligation $ 35,963 $ 79,866 Fair value of plan assets $ 33,966 $ 77,035 December 31, 2021 2020 (In thousands) Accumulated benefit obligation $ 35,249 $ 41,654 Fair value of plan assets $ 33,966 $ 39,105 |
Schedule of Accumulated Benefit Obligation in Excess of Fair Value | The following tables provide information regarding pension plans with a projected benefit obligation and accumulated benefit obligation in excess of the fair value of plan assets: December 31, 2021 2020 (In thousands) Projected benefit obligation $ 35,963 $ 79,866 Fair value of plan assets $ 33,966 $ 77,035 December 31, 2021 2020 (In thousands) Accumulated benefit obligation $ 35,249 $ 41,654 Fair value of plan assets $ 33,966 $ 39,105 |
Schedule of Net Periodic Pension Expense | Net periodic pension expense consisted of the following components: Years Ended December 31, 2021 2020 2019 (In thousands) Service cost - benefit earned during the period $ 4,455 $ 3,929 $ 4,135 Interest cost on projected benefit obligations 2,740 2,772 3,026 Expected return on plans assets (3,031) (4,578) (3,840) Amortization of gain (407) (422) — Curtailment — (137) — Contractual termination benefits — 915 — Net periodic pension expense $ 3,757 $ 2,479 $ 3,321 |
Schedule of Pension Plan Assets | The following table presents the fair values of PCLI’s pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2021 and 2020. December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Equity securities $ — $ 6,802 $ — $ 6,802 $ — $ 35,916 $ — $ 35,916 Fixed income 536 78,021 — 78,557 362 48,566 — 48,928 $ 536 $ 84,823 $ — $ 85,359 $ 362 $ 84,482 $ — $ 84,844 |
Schedule of Changes in Benefit Obligation and Plan Assets to Post-Retirement Healthcare Plans | The following table sets forth the changes in the benefit obligation and plan assets of our post-retirement healthcare plans for the years ended December 31, 2021 and 2020: Years Ended December 31, 2021 2020 (In thousands) Change in plans' benefit obligation Post-retirement plans' benefit obligation - beginning of year $ 33,478 $ 31,273 Service cost 2,324 1,616 Interest cost 782 870 Benefits paid (706) (1,766) Actuarial (gain) loss (1,133) 1,131 Foreign currency exchange rate changes 71 354 Post-retirement plans' benefit obligation - end of year $ 34,816 $ 33,478 Change in plan assets Fair value of plan assets - beginning of year $ — $ — Employer contributions 673 1,742 Participant contributions 33 24 Benefits paid (706) (1,766) Fair value of plan assets - end of year $ — $ — Funded status Under-funded balance $ (34,816) $ (33,478) Amounts recognized in consolidated balance sheets Accrued liabilities $ (832) $ (1,946) Other long-term liabilities (33,984) (31,532) $ (34,816) $ (33,478) Amounts recognized in accumulated other comprehensive income Cumulative actuarial loss $ (271) $ (1,523) Prior service credit 15,031 18,511 Total $ 14,760 $ 16,988 |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations | The weighted average assumptions used to determine end of period benefit obligations: December 31, 2021 2020 Discount rate 2.29%-3.10% 1.88% - 2.60% Current health care trend rate 6.00%-7.25% 5.50% - 6.00% Ultimate health care trend rate 4.00%-4.50% 4.50% - 5.00% Year rate reaches ultimate trend rate 2023-2041 2022 - 2023 |
Schedule of Net Periodic Post-Retirement Credit | Net periodic post-retirement credit consisted of the following components: Years Ended December 31, 2021 2020 2019 (In thousands) Service cost – benefit earned during the year $ 2,324 $ 1,616 $ 1,582 Interest cost on projected benefit obligations 782 870 1,029 Amortization of prior service credit (3,481) (3,481) (3,481) Amortization of (gain) loss 153 (83) (106) Net periodic post-retirement credit $ (222) $ (1,078) $ (976) |
Contingencies And Contractual_2
Contingencies And Contractual Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Transportation and Storage Fees Under Agreement | At December 31, 2021, the minimum future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: (In thousands) 2022 $ 166,456 2023 164,518 2024 163,507 2025 163,972 2026 129,572 Thereafter 839,775 Total $ 1,627,800 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The accounting policies for our segments are the same as those described in the summary of significant accounting policies, except that our Refining segment balance sheet excluded intercompany ROU assets and liabilities for operating leases prior to December 31, 2021 (see Note 1). The following is a summary of the financial information of our reportable segments reconciled to the amounts reported in the consolidated financial statements. Refining Renewables Lubricants and Specialty Products HEP Corporate, Other and Eliminations (2) Consolidated (In thousands) Year Ended December 31, 2021 Sales and other revenues: Revenues from external customers $ 15,734,870 $ — $ 2,550,624 $ 103,646 $ 2 $ 18,389,142 Intersegment revenues 623,688 — 9,988 390,849 (1,024,525) — $ 16,358,558 $ — $ 2,560,612 $ 494,495 $ (1,024,523) $ 18,389,142 Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 14,673,062 $ — $ 1,815,802 $ — $ (921,812) $ 15,567,052 Lower of cost or market inventory valuation adjustment $ (318,353) $ 8,739 $ — $ — $ (509) $ (310,123) Operating expenses $ 1,090,424 $ 55,353 $ 252,456 $ 170,524 $ (51,279) $ 1,517,478 Selling, general and administrative expenses $ 127,563 $ — $ 170,155 $ 12,637 $ 51,655 $ 362,010 Depreciation and amortization $ 334,365 $ 1,672 $ 79,767 $ 86,998 $ 737 $ 503,539 Income (loss) from operations $ 451,497 $ (65,764) $ 242,432 $ 224,336 $ (103,315) $ 749,186 Earnings of equity method investments $ — $ — $ — $ 12,432 $ — $ 12,432 Capital expenditures $ 160,431 $ 510,836 $ 30,878 $ 88,336 $ 22,928 $ 813,409 Year Ended December 31, 2020 Sales and other revenues: Revenues from external customers $ 9,286,658 $ — $ 1,792,745 $ 98,039 $ 6,201 $ 11,183,643 Intersegment revenues 252,531 — 10,465 399,809 (662,805) — $ 9,539,189 $ — $ 1,803,210 $ 497,848 $ (656,604) $ 11,183,643 Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 8,439,680 $ — $ 1,271,287 $ — $ (552,162) $ 9,158,805 Lower of cost or market inventory valuation adjustment $ 82,214 $ — $ — $ — $ (3,715) $ 78,499 Operating expenses $ 988,045 $ 3,861 $ 216,068 $ 147,692 $ (55,389) $ 1,300,277 Selling, general and administrative expenses $ 127,298 $ — $ 157,816 $ 9,989 $ 18,497 $ 313,600 Depreciation and amortization $ 324,617 $ — $ 80,656 $ 95,445 $ 20,194 $ 520,912 Goodwill and long-lived asset impairment (1) $ 241,760 $ — $ 286,575 $ 16,958 $ — $ 545,293 Income (loss) from operations $ (664,425) $ (3,861) $ (209,192) $ 227,764 $ (84,029) $ (733,743) Earnings of equity method investments $ — $ — $ — $ 6,647 $ — $ 6,647 Capital expenditures $ 152,726 $ 65,147 $ 32,473 $ 59,283 $ 20,531 $ 330,160 Refining Renewables Lubricants and Specialty Products HEP Corporate, Other and Eliminations (2) Consolidated (In thousands) Year Ended December 31, 2019 Sales and other revenues: Revenues from external customers $ 15,284,110 $ — $ 2,081,221 $ 121,027 $ 220 $ 17,486,578 Intersegment revenues 312,678 — 11,307 411,750 (735,735) — $ 15,596,788 $ — $ 2,092,528 $ 532,777 $ (735,515) $ 17,486,578 Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 12,980,506 $ — $ 1,580,036 $ — $ (642,158) $ 13,918,384 Lower of cost or market inventory valuation adjustment $ (119,775) $ — $ — $ — $ — $ (119,775) Operating expenses $ 1,095,488 $ — $ 231,523 $ 161,996 $ (94,955) $ 1,394,052 Selling, general and administrative expenses $ 120,518 $ — $ 168,595 $ 10,251 $ 54,872 $ 354,236 Depreciation and amortization $ 309,932 $ — $ 88,781 $ 96,706 $ 14,506 $ 509,925 Goodwill impairment $ — $ — $ 152,712 $ — $ — $ 152,712 Income (loss) from operations $ 1,210,119 $ — $ (129,119) $ 263,824 $ (67,780) $ 1,277,044 Earnings of equity method investments $ — $ — $ — $ 5,180 $ — $ 5,180 Capital expenditures $ 188,513 $ 10,489 $ 40,997 $ 30,112 $ 23,652 $ 293,763 (1) The results of our HEP reportable segment for the year ended December 31, 2020 include a long-lived asset impairment charge attributed to HEP’s logistics assets at our Cheyenne Refinery. (2) For the year ended December 31, 2020, Corporate and Other includes $14.0 million of decommissioning and other shutdown costs related to our Cheyenne Refinery. In addition, for the year ended December 31, 2020, Corporate and Other includes $11.4 million in other operating costs related to our Cheyenne facility. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Apr. 27, 2021 USD ($) | Apr. 27, 2021 CAD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Nov. 01, 2021 USD ($) | |
Ownership Interest By Project Type [Line Items] | |||||||
Severance costs | $ 3.7 | ||||||
Allowance for doubtful accounts | $ 3.7 | $ 3.4 | |||||
Asset retirement obligation | 52.5 | 42.6 | |||||
Deferred turnaround and amortization expense | 136.9 | 158.4 | $ 141.9 | ||||
Proceeds from inventory repurchase agreements | 43.5 | 44.9 | 52.1 | ||||
Payments under inventory repurchase agreements | 45.4 | 46.4 | $ 49.2 | ||||
Puget Sound Refinery | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Asset retirement obligation | $ 8.5 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mississauga, Canada Property | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Gain on sale of assets | $ 86 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mississauga, Canada Property | 7037619 Canada Inc. | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Proceeds from sale of property | $ 98.8 | $ 125 | |||||
Minimum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Frequency of maintenance | 2 years | ||||||
Maximum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Frequency of maintenance | 5 years | ||||||
Refining | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Restructuring and related costs recorded to segments | $ 24.8 | ||||||
Corporate Segment | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Restructuring and related costs recorded to segments | 12.7 | ||||||
Lubricants and Specialty Products | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Severance costs | 7.8 | ||||||
Inventories | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Reserve against repair and maintenance inventory | 9 | ||||||
Cheyenne Refinery | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Severance costs | 1 | 3.8 | |||||
Decommissioning expense | $ 25.8 | $ 24.7 | |||||
Impairment of long-lived assets | $ 232.2 | ||||||
Refining Pipeline And Terminal Facilities | Minimum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 15 years | ||||||
Refining Pipeline And Terminal Facilities | Maximum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 32 years | ||||||
Buildings and Improvements | Minimum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 10 years | ||||||
Buildings and Improvements | Maximum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 40 years | ||||||
Other fixed assets | Minimum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 5 years | ||||||
Other fixed assets | Maximum | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 30 years | ||||||
Transportation vehicles | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Estimated useful life of assets | 5 years | ||||||
HEP | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Percentage of ownership in variable interest entity | 57% | ||||||
Equity in joint ventures | $ 90.8 | ||||||
Investment in joint venture | $ 116.4 | ||||||
HEP | Osage Pipeline | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Equity method investment, ownership percentage | 50% | ||||||
HEP | Cheyenne | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Equity method investment, ownership percentage | 50% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands | 2 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Nov. 01, 2021 USD ($) | Aug. 02, 2021 USD ($) nomination extensionOption $ / shares shares | Feb. 01, 2019 USD ($) | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2019 USD ($) | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | |
Business Acquisition [Line Items] | |||||||
Common stock par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Goodwill | $ 2,293,044 | $ 2,293,044 | $ 2,293,935 | ||||
Revenues | $ 340,300 | ||||||
Income before income taxes | $ 5,100 | ||||||
Woods Cross Refinery Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Cash considerations paid under agreement | $ 232,500 | ||||||
Hippo Parent Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Common stock par value (in USD per share) | $ / shares | $ 0.01 | ||||||
Puget Sound Refinery | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate consideration paid in acquisition | $ 624,300 | ||||||
Base cash purchase price in acquisition | 350,000 | ||||||
Other closing adjustments and accrued liabilities associated with acquisition | 3,600 | ||||||
Acquisition and integration costs | $ 12,200 | ||||||
Revenue from acquiree | 603,100 | ||||||
Loss from operations from acquiree | $ 8,300 | ||||||
Properties, plants and equipment | 394,237 | ||||||
Other assets | 10,400 | ||||||
Puget Sound Refinery | Crude Oil and Refined Products | |||||||
Business Acquisition [Line Items] | |||||||
Inventories | $ 277,887 | ||||||
Hippo Parent Corporation | Hippo Parent Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Pro forma ownership percentage by parent | 73.25% | ||||||
Hippo Parent Corporation | The Sinclair Companies | Scenario, Plan | |||||||
Business Acquisition [Line Items] | |||||||
Transaction potential termination fee | $ 200,000 | ||||||
Transaction potential termination reimbursement expense | $ 35,000 | ||||||
Hippo Parent Corporation | The Sinclair Companies | Hippo Parent Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Pro forma ownership percentage by noncontrolling owner | 26.75% | ||||||
Hippo Parent Corporation | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of shares in transaction | 1 | ||||||
Hippo Parent Corporation | Common Stock | Hippo Parent Corporation | The Sinclair Companies | |||||||
Business Acquisition [Line Items] | |||||||
Shares transferred in transaction (in shares) | shares | 60,230,036 | ||||||
Sinclair Transportation Company | HEP | |||||||
Business Acquisition [Line Items] | |||||||
Shares transferred in transaction (in shares) | shares | 21,000,000 | ||||||
Transaction cash consideration transferred | $ 325,000 | ||||||
Number of termination date extension periods in transaction | extensionOption | 2 | ||||||
Transaction termination date extension period | 90 days | ||||||
Number of director nominations granted in transaction | nomination | 1 | ||||||
Sonneborn | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate consideration paid in acquisition | $ 701,600 | ||||||
Transaction cash consideration transferred | 662,700 | ||||||
Assets Acquired | 38,900 | ||||||
Current assets | 139,400 | ||||||
Properties, plants and equipment | 168,200 | ||||||
Goodwill | 282,300 | ||||||
Other assets | 231,500 | ||||||
Current liabilities | 47,900 | ||||||
Deferred income tax and other long-term liabilities | 110,800 | ||||||
Intangibles value in acquisition | $ 214,600 | ||||||
Intangibles amortization period | 12 years |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets and Liabilities Acquired (Details) - Puget Sound Refinery $ in Thousands | Nov. 01, 2021 USD ($) |
Assets Acquired | |
Properties, plants and equipment | $ 394,237 |
Other assets | 10,400 |
Total assets acquired | 703,984 |
Liabilities Assumed | |
Accrued and other current liabilities | 12,524 |
Other long-term liabilities | 67,128 |
Total liabilities assumed | 79,652 |
Net assets acquired | 624,332 |
Financing lease ROU assets | 61,500 |
Current finance lease liabilities | 7,900 |
Noncurrent finance lease liabilities | 53,600 |
Crude Oil and Refined Products | |
Assets Acquired | |
Inventories | 277,887 |
Materials, Supplies and Other | |
Assets Acquired | |
Inventories | $ 21,460 |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Results (Details) - Puget Sound Refinery - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Sales and other revenues | $ 21,476,142 | $ 13,183,620 |
Net income (loss) attributable to HollyFrontier stockholders | 601,210 | (802,234) |
Refining | ||
Business Acquisition [Line Items] | ||
Sales and other revenues | 19,445,558 | 11,539,166 |
Income (loss) from operations | $ 509,450 | $ (934,061) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Gain on sales-type leases | $ 0 | $ 33,834 | $ 0 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 58 years | ||
Operating lease renewal term | 10 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Operating lease right-of-use assets | $ 396,191 | $ 350,548 |
Operating lease liabilities | 110,606 | 97,937 |
Noncurrent operating lease liabilities | 308,747 | 285,785 |
Total operating lease liabilities | 419,353 | 383,722 |
Finance leases: | ||
Properties, plants and equipment, at cost | 75,885 | 24,321 |
Accumulated amortization | (8,945) | (5,713) |
Properties, plants and equipment, net | $ 66,940 | $ 18,608 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Properties, plants and equipment, net | Properties, plants and equipment, net |
Accrued liabilities | $ 10,510 | $ 1,916 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities (HEP: $18,479 and $29,518, respectively) | Accrued liabilities (HEP: $18,479 and $29,518, respectively) |
Other long-term liabilities | $ 56,556 | $ 5,097 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities (HEP: $43,033 and $55,105, respectively) | Other long-term liabilities (HEP: $43,033 and $55,105, respectively) |
Total finance lease liabilities | $ 67,066 | $ 7,013 |
Weighted average remaining lease term (in years) | ||
Operating leases | 7 years 4 months 24 days | 7 years 2 months 12 days |
Finance Leases | 8 years 7 months 6 days | 3 years 3 months 18 days |
Weighted average discount rate | ||
Operating leases | 3.80% | 4.10% |
Finance leases | 3.90% | 5.30% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 117,292 | $ 121,608 | $ 112,770 |
Finance lease expense: | |||
Amortization of right-of-use assets | 4,295 | 4,400 | 1,543 |
Interest on lease liabilities | 733 | 415 | 334 |
Variable lease cost | 3,645 | 3,580 | 4,449 |
Total lease expense | $ 125,965 | $ 130,003 | $ 119,096 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 129,577 | $ 126,313 | $ 116,980 |
Operating cash flows from finance leases | 733 | 415 | 334 |
Financing cash flows from finance leases | 3,990 | 2,995 | 1,551 |
Operating leases | 147,718 | 18,823 | 121,750 |
Finance leases | $ 64,334 | $ 4,085 | $ 2,096 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating | ||
2022 | $ 122,907 | |
2023 | 106,008 | |
2024 | 77,770 | |
2025 | 29,589 | |
2026 | 22,046 | |
Thereafter | 143,337 | |
Future minimum lease payments | 501,657 | |
Less: imputed interest | 82,304 | |
Total operating lease liabilities | 419,353 | $ 383,722 |
Less: current obligations | 110,606 | 97,937 |
Noncurrent operating lease liabilities | 308,747 | 285,785 |
Finance | ||
2022 | 13,096 | |
2023 | 11,438 | |
2024 | 8,292 | |
2025 | 7,567 | |
2026 | 6,711 | |
Thereafter | 33,208 | |
Future minimum lease payments | 80,312 | |
Less: imputed interest | 13,246 | |
Total finance lease liabilities | 67,066 | 7,013 |
Less: current obligations | 10,510 | 1,916 |
Long-term lease obligations | $ 56,556 | $ 5,097 |
Leases - Schedule of Lease Inco
Leases - Schedule of Lease Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease revenues | $ 15,281 | $ 22,636 | $ 33,242 |
Gain on sales-type leases | 0 | 33,834 | 0 |
Sales-type lease interest income | 2,545 | 1,928 | 0 |
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable | $ 2,162 | $ 1,690 | $ 0 |
Leases - Schedule of Minimum Un
Leases - Schedule of Minimum Undiscounted Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating | ||
2022 | $ 9,810 | |
2023 | 9,676 | |
2024 | 9,676 | |
2025 | 2,681 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payment receipts | 31,843 | |
Sales-type | ||
2022 | 2,955 | |
2023 | 2,955 | |
2024 | 2,955 | |
2025 | 2,955 | |
2026 | 2,955 | |
Thereafter | 24,380 | |
Total lease payment receipts | 39,155 | |
Less: imputed interest | (29,716) | |
Total lease receivable | 9,439 | |
Unguaranteed residual assets at end of leases | 25,182 | |
Net investment in leases | $ 34,621 | $ 35,030 |
Leases - Schedule of Net Invest
Leases - Schedule of Net Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Lease receivables | $ 24,962 | $ 26,045 |
Unguaranteed residual assets | 9,659 | 8,985 |
Net investment in leases | $ 34,621 | $ 35,030 |
Holly Energy Partners (Details)
Holly Energy Partners (Details) bbl in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 USD ($) bbl | Dec. 31, 2021 USD ($) customer | Dec. 31, 2020 customer | Dec. 31, 2019 customer | |
Holly Energy Partners Entity [Line Items) | ||||
Number of significant customers | customer | 0 | 0 | ||
Osage Pipeline | ||||
Holly Energy Partners Entity [Line Items) | ||||
Equity method investment, ownership percentage | 50% | |||
Cushing Connect Joint Venture | HEP | ||||
Holly Energy Partners Entity [Line Items) | ||||
Barrels of crude oil per day | bbl | 160 | |||
Barrels of crude oil, value | bbl | 1,500 | |||
Percent of budget which construction costs payable by HEP | 10% | |||
Cushing Connect Joint Venture | HEP | Minimum | ||||
Holly Energy Partners Entity [Line Items) | ||||
Expected construction costs | $ 70 | |||
Cushing Connect Joint Venture | HEP | Maximum | ||||
Holly Energy Partners Entity [Line Items) | ||||
Expected construction costs | $ 75 | |||
UNEV Pipeline | ||||
Holly Energy Partners Entity [Line Items) | ||||
Equity method investment, ownership percentage | 75% | |||
HEP | ||||
Holly Energy Partners Entity [Line Items) | ||||
Percentage of ownership in variable interest entity | 57% | |||
Number of significant customers | customer | 2 | |||
Minimum annualized payments under agreement | $ 352.8 | |||
HEP | HollyFrontier | Customer Concentration Risk | Revenue Benchmark | HEP | ||||
Holly Energy Partners Entity [Line Items) | ||||
Concentration risk, percentage of total revenues | 79% |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | $ 18,389,142 | $ 11,183,643 | $ 17,486,578 |
Mid-Continent | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 9,094,885 | 5,096,268 | 8,424,191 |
Southwest | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 3,477,562 | 2,310,432 | 3,621,273 |
Rocky Mountains/Pacific Northwest | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 2,118,619 | 1,311,416 | 2,208,541 |
Northeast | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 824,900 | 552,069 | 578,932 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 836,317 | 616,683 | 721,169 |
Europe, Asia and Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 333,083 | 268,472 | 288,906 |
Transportation fuels | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 13,414,543 | 7,825,625 | 12,952,899 |
Transportation fuels | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 1,600 | ||
Specialty lubricant products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 2,322,242 | 1,657,344 | 1,864,450 |
Asphalt, fuel oil and other products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 948,581 | 672,371 | 1,025,663 |
Asphalt, fuel oil and other products | Refining | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 724,300 | 533,500 | 808,900 |
Asphalt, fuel oil and other products | Lubricants and Specialty Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 224,300 | 135,400 | 216,800 |
Asphalt, fuel oil and other products | Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 3,500 | ||
Refined Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 16,685,366 | 10,155,340 | 15,843,012 |
Excess crude oil revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 1,547,696 | 884,248 | 1,470,148 |
Transportation and logistic services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | 103,646 | 98,039 | 121,027 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from external customers | $ 52,434 | $ 46,016 | $ 52,391 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change In Contract With Customer, Liability [Roll Forward] | |||
Balance at beginning of period | $ 6,738 | $ 4,652 | $ 132 |
Increase | 32,301 | 28,746 | 26,751 |
Recognized as revenue | (29,761) | (26,660) | (28,694) |
Balance at end of period | 9,278 | 6,738 | 4,652 |
Sonneborn | |||
Change In Contract With Customer, Liability [Roll Forward] | |||
Sonneborn acquisition | $ 0 | $ 0 | $ 6,463 |
Revenues - Schedule of Performa
Revenues - Schedule of Performance Obligations (Details) bbl in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 USD ($) customer bbl | Dec. 31, 2020 customer | Dec. 31, 2019 customer | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Concentration risk, number of significant customers | customer | 0 | 0 | |
Shell | Revenue Benchmark | Customer Concentration Risk | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Concentration risk, percentage of total revenues | 13% | ||
Variable Interest Entity | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Concentration risk, number of significant customers | customer | 2 | ||
Variable Interest Entity | Third-Party Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation revenues | $ | $ 33,803 | ||
Refined Product | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, sale of refined product barrels | bbl | 38,264 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Variable Interest Entity | Third-Party Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation revenues | $ | $ 11,770 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Refined Product | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, sale of refined product barrels | bbl | 13,771 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Variable Interest Entity | Third-Party Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation revenues | $ | $ 9,676 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Refined Product | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, sale of refined product barrels | bbl | 12,795 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Variable Interest Entity | Third-Party Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation revenues | $ | $ 9,676 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Refined Product | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, sale of refined product barrels | bbl | 11,697 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Variable Interest Entity | Third-Party Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation revenues | $ | $ 2,681 | ||
Satisfaction period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Refined Product | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, sale of refined product barrels | bbl | 1 | ||
Satisfaction period | 1 year |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Assets: | $ 6,463 | $ 275 |
Liabilities: | 11,264 | 23,978 |
Level 1 | ||
Debt Instrument [Line Items] | ||
Assets: | 0 | 0 |
Liabilities: | 1,269 | 418 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Assets: | 6,463 | 275 |
Liabilities: | 9,995 | 23,560 |
Level 3 | ||
Debt Instrument [Line Items] | ||
Assets: | 0 | 0 |
Liabilities: | 0 | 0 |
NYMEX futures contracts | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Liabilities: | 1,269 | 418 |
NYMEX futures contracts | Level 1 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 1,269 | 418 |
NYMEX futures contracts | Level 2 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 0 | 0 |
NYMEX futures contracts | Level 3 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 0 | 0 |
Commodity price swaps | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Liabilities: | 359 | |
Commodity price swaps | Level 1 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 0 | |
Commodity price swaps | Level 2 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 359 | |
Commodity price swaps | Level 3 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 0 | |
Commodity forward contracts | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Assets: | 286 | 275 |
Liabilities: | 566 | 196 |
Commodity forward contracts | Level 1 | ||
Debt Instrument [Line Items] | ||
Assets: | 0 | 0 |
Liabilities: | 0 | 0 |
Commodity forward contracts | Level 2 | ||
Debt Instrument [Line Items] | ||
Assets: | 286 | 275 |
Liabilities: | 566 | 196 |
Commodity forward contracts | Level 3 | ||
Debt Instrument [Line Items] | ||
Assets: | 0 | 0 |
Liabilities: | 0 | 0 |
Foreign currency forward contracts | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Assets: | 6,177 | |
Liabilities: | 23,005 | |
Foreign currency forward contracts | Level 1 | ||
Debt Instrument [Line Items] | ||
Assets: | 0 | |
Liabilities: | 0 | |
Foreign currency forward contracts | Level 2 | ||
Debt Instrument [Line Items] | ||
Assets: | 6,177 | |
Liabilities: | 23,005 | |
Foreign currency forward contracts | Level 3 | ||
Debt Instrument [Line Items] | ||
Assets: | 0 | |
Liabilities: | $ 0 | |
RINs credit obligations | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Liabilities: | 9,429 | |
RINs credit obligations | Level 1 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 0 | |
RINs credit obligations | Level 2 | ||
Debt Instrument [Line Items] | ||
Liabilities: | 9,429 | |
RINs credit obligations | Level 3 | ||
Debt Instrument [Line Items] | ||
Liabilities: | $ 0 |
Earnings Per Share - Schedule O
Earnings Per Share - Schedule Of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to HollyFrontier stockholders | $ 558,324 | $ (601,448) | $ 772,388 |
Participating securities' share in earnings | 7,465 | 1,811 | 1,034 |
Net income (loss) attributable to common shares | $ 550,859 | $ (603,259) | $ 771,354 |
Average number of shares of common stock outstanding (in shares) | 162,569 | 161,983 | 166,287 |
Effect of dilutive variable restricted stock units and performance share units (in shares) | 0 | 0 | 1,098 |
Average number of shares of common stock outstanding assuming dilution (in shares) | 162,569 | 161,983 | 167,385 |
Basic earnings (loss) per share (in USD per share) | $ 3.39 | $ (3.72) | $ 4.64 |
Diluted earnings (loss) per share (in USD per share) | $ 3.39 | $ (3.72) | $ 4.61 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available under principal share-based compensation plan (in shares) | 6,019,255 | ||
Compensation cost attributable to share-based compensation plans | $ 42,044 | $ 29,669 | $ 41,512 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost attributable to share-based compensation plans | $ 29,453 | 23,539 | 26,833 |
Stock vesting period | 3 years | ||
Grant date fair value of shares vested | $ 28,400 | $ 28,200 | $ 30,900 |
Weighted average grant date fair value (in USD per share) | $ 33.76 | $ 22.20 | $ 52.62 |
Unrecognized compensation cost related to non-vested grants | $ 29,700 | ||
Unrecognized compensation cost, weighted-average period of recognition | 1 year 7 months 6 days | ||
Payment equal to stock award value | $ 3,400 | $ 1,300 | $ 1,700 |
Restricted stock purchased (in shares) | 105,459 | 55,222 | 32,648 |
Restricted stock units | Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock vesting period | 1 year | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost attributable to share-based compensation plans | $ 12,591 | $ 6,130 | $ 14,679 |
Stock vesting period | 3 years | ||
Grant date fair value of shares vested | 6,200 | 7,300 | |
Weighted average grant date fair value (in USD per share) | $ 84.35 | ||
Unrecognized compensation cost related to non-vested grants | $ 23,100 | ||
Unrecognized compensation cost, weighted-average period of recognition | 2 years 1 month 6 days | ||
Common stock issued (in shares) | 67,846 | ||
Percent payout on vested shares | 125% | ||
Issuance of common stock under incentive compensation plans | $ 4,500 | ||
Performance stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target | 0% | ||
Performance stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target | 200% | ||
HEP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost attributable to share-based compensation plans | $ 2,600 | $ 2,200 | $ 2,500 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 42,044 | $ 29,669 | $ 41,512 |
Tax benefit recognized on compensation expense | 10,545 | 3,965 | 13,253 |
Restricted stock units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | 29,453 | 23,539 | 26,833 |
Performance stock units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 12,591 | $ 6,130 | $ 14,679 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Restricted Stock Unit and Performance Share Units Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Units outstanding at beginning of period (in shares) | 2,057,045 | ||
Units granted (in shares) | 564,146 | ||
Units vested (in shares) | (840,648) | ||
Units forfeited (in shares) | (176,003) | ||
Units outstanding at end of period (in shares) | 1,604,540 | 2,057,045 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value of units outstanding at beginning of period (in USD per share) | $ 29.76 | ||
Weighted average grant date fair value of units granted (in USD per share) | 33.95 | ||
Weighted average grant date fair value of units vested (in USD per share) | 33.76 | $ 22.20 | $ 52.62 |
Weighted average grant date fair value of units forfeited (in USD per share) | 29.98 | ||
Weighted average grant date fair value of units outstanding at end of period (in USD per share) | $ 29.11 | $ 29.76 | |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Units outstanding at beginning of period (in shares) | 635,204 | ||
Units granted (in shares) | 320,717 | ||
Units vested (in shares) | (53,145) | ||
Units forfeited (in shares) | (38,150) | ||
Units outstanding at end of period (in shares) | 864,626 | 635,204 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value of units outstanding at beginning of period (in USD per share) | $ 35.45 | ||
Weighted average grant date fair value of units granted (in USD per share) | 38.50 | ||
Weighted average grant date fair value of units vested (in USD per share) | 84.35 | ||
Weighted average grant date fair value of units forfeited (in USD per share) | 37.27 | ||
Weighted average grant date fair value of units outstanding at end of period (in USD per share) | $ 33.49 | $ 35.45 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Crude oil | $ 630,873 | $ 451,967 |
Other raw materials and unfinished products | 530,067 | 260,495 |
Finished products | 726,930 | 595,696 |
Lower of cost or market reserve | (8,739) | (318,862) |
Process chemicals | 43,025 | 35,006 |
Repairs and maintenance supplies and other | 199,972 | 149,174 |
Total inventory | $ 2,122,128 | $ 1,173,476 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory [Line Items] | ||||
Inventory valuation reserves | $ 8,739 | $ 318,862 | ||
Lower of cost or market inventory valuation adjustment | (310,123) | 78,499 | $ (119,775) | |
Increase (decrease) in costs of products sold | $ 36,600 | 111,100 | $ 36,900 | |
Cheyenne Refinery | ||||
Inventory [Line Items] | ||||
Inventory valuation reserves | $ 8,700 |
Properties, Plants and Equipm_3
Properties, Plants and Equipment - Components Of Property, Plants And Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | $ 8,448,207 | $ 7,299,517 |
Accumulated depreciation | (3,033,353) | (2,726,378) |
Properties, plants and equipment, net | 5,414,854 | 4,573,139 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 607,554 | 517,829 |
Refining facilities | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 4,839,926 | 4,202,524 |
Pipelines and terminals | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 1,956,008 | 1,786,279 |
Transportation vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 27,809 | 26,715 |
Other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 306,606 | 400,159 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | $ 710,304 | $ 366,011 |
Properties, Plants and Equipm_4
Properties, Plants and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest | $ 15.2 | $ 4.1 | $ 2.5 |
Depreciation expense | $ 329.4 | $ 333 | $ 334.2 |
Goodwill, Long-lived Asset an_3
Goodwill, Long-lived Asset and Intangibles - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 2,293,935,000 | $ 2,293,044,000 | $ 2,293,935,000 | ||
Goodwill impairment charges | 0 | 545,293,000 | $ 152,712,000 | ||
Long-lived asset impairment charges | 26,500,000 | 0 | 0 | ||
Amortization expense | 35,600,000 | 34,100,000 | $ 33,800,000 | ||
Estimated amortization expense in 2022 | 34,400,000 | ||||
Estimated amortization expense in 2023 | 34,400,000 | ||||
Estimated amortization expense in 2024 | 34,400,000 | ||||
Estimated amortization expense in 2025 | 34,400,000 | ||||
Estimated amortization expense in 2026 | 34,400,000 | ||||
Lubricants and Specialty Products | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | 247,590,000 | $ 246,699,000 | $ 247,590,000 | ||
Goodwill impairment charges | $ 81,900,000 | ||||
Cheyenne | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Impairment of long-lived assets | $ 232,200,000 | ||||
PCLI | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Impairment of long-lived assets | $ 204,700,000 |
Goodwill, Long-lived Asset an_4
Goodwill, Long-lived Asset and Intangibles - Schedule Goodwill by Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | $ 2,293,935 |
Foreign currency translation adjustment | (891) |
Goodwill at end of period | 2,293,044 |
Goodwill | 2,836,941 |
Accumulated impairment losses | (543,897) |
Total goodwill | 2,293,044 |
HEP | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | 312,873 |
Foreign currency translation adjustment | 0 |
Goodwill at end of period | 312,873 |
Goodwill | 312,873 |
Accumulated impairment losses | 0 |
Total goodwill | 312,873 |
Refining | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | 1,733,472 |
Foreign currency translation adjustment | 0 |
Goodwill at end of period | 1,733,472 |
Goodwill | 2,042,790 |
Accumulated impairment losses | (309,318) |
Total goodwill | 1,733,472 |
Lubricants and Specialty Products | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | 247,590 |
Foreign currency translation adjustment | (891) |
Goodwill at end of period | 246,699 |
Goodwill | 481,278 |
Accumulated impairment losses | (234,579) |
Total goodwill | $ 246,699 |
Goodwill, Long-lived Asset an_5
Goodwill, Long-lived Asset and Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 455,181 | $ 456,826 |
Accumulated amortization | (156,123) | (122,024) |
Total intangibles, net | 299,058 | 334,802 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 237,856 | 239,773 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Transportation agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 30 years | |
Intangible assets | $ 59,933 | 59,933 |
Trademarks, patents and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 157,392 | $ 157,120 |
Trademarks, patents and other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Trademarks, patents and other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years |
Environmental (Details)
Environmental (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||
Environmental remediation costs | $ 7.8 | $ 7.1 | $ 11.2 |
Accrued environmental liability | $ 117.2 | 115 | |
Period for environmental remediation | 30 years | ||
Other Noncurrent Liabilities | |||
Loss Contingencies [Line Items] | |||
Accrued environmental liability | $ 99.1 | $ 94 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 12 Months Ended | |||||||
Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 28, 2020 | |
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity under revolving credit agreement | $ 1,350,000,000 | |||||||
Outstanding borrowing | $ 0 | |||||||
Letters of credit amount outstanding | 2,300,000 | |||||||
Principal | 1,750,000,000 | $ 1,750,000,000 | ||||||
Fair value of financing arrangements | 37,400,000 | 43,900,000 | ||||||
Loss on early extinguishment of debt | 0 | 25,915,000 | $ 0 | |||||
2.625% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 350,000,000 | 350,000,000 | $ 350,000,000 | |||||
Stated interest rate | 0.02625% | 2.625% | 2.625% | |||||
4.500% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 400,000,000 | 400,000,000 | $ 400,000,000 | |||||
Stated interest rate | 4.50% | 4.50% | 4.50% | |||||
5.875% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 1,000,000,000 | 1,000,000,000 | ||||||
Stated interest rate | 5.875% | |||||||
HEP 5.000% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5% | |||||||
Aggregate principal amount of senior note | $ 500,000,000 | |||||||
HEP | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity under revolving credit agreement | 1,200,000,000 | $ 1,400,000,000 | ||||||
Outstanding borrowing | $ 840,000,000 | $ 913,500,000 | ||||||
Letters of credit amount outstanding | $ 0 | |||||||
Maximum borrowing capacity with accordion feature | 1,700,000,000 | |||||||
Effective interest rate on debt | 2.35% | 2.58% | ||||||
Redemption cost | 522,500,000 | |||||||
Loss on early extinguishment of debt | $ 25,900,000 | |||||||
Debt redemption premium | 22,500,000 | |||||||
Unamortized discount | 3,400,000 | |||||||
HEP | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum capacity available | $ 50,000,000 | |||||||
HEP | HEP 5.000% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 500,000,000 | $ 500,000,000 | ||||||
Stated interest rate | 5% | |||||||
HEP | 6.0% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 500,000,000 | |||||||
Stated interest rate | 6% | |||||||
Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate spread | 0.25% | |||||||
Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate spread | 1.125% | |||||||
London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate spread | 1.25% | |||||||
London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate spread | 2.125% | |||||||
CDOR Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate spread | 1.25% | |||||||
CDOR Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate spread | 2.125% |
Debt - Carrying Amounts Of Long
Debt - Carrying Amounts Of Long-Term Debt (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 28, 2020 | Feb. 29, 2020 |
Debt Instrument [Line Items] | |||||
Principal | $ 1,750,000,000 | $ 1,750,000,000 | |||
Unamortized discount and debt issuance costs | (10,312,000) | (12,885,000) | |||
Total HollyFrontier long-term debt | 1,739,688,000 | 1,737,115,000 | |||
HEP Credit Agreement | 0 | ||||
Total long-term debt | 3,072,737,000 | 3,142,718,000 | |||
Level 2 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 1,912,753,000 | 1,903,867,000 | |||
HEP | |||||
Debt Instrument [Line Items] | |||||
HEP Credit Agreement | 840,000,000 | 913,500,000 | |||
Total long-term debt | 1,333,049,000 | 1,405,603,000 | |||
HEP | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 502,705,000 | 506,540,000 | |||
2.625% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.02625% | 2.625% | 2.625% | ||
Principal | $ 350,000,000 | 350,000,000 | $ 350,000,000 | ||
5.875% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.875% | ||||
Principal | $ 1,000,000,000 | 1,000,000,000 | |||
4.500% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.50% | 4.50% | 4.50% | ||
Principal | $ 400,000,000 | 400,000,000 | $ 400,000,000 | ||
HEP 5.000% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5% | ||||
HEP 5.000% Senior Notes | HEP | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5% | ||||
Principal | $ 500,000,000 | 500,000,000 | |||
Unamortized discount and debt issuance costs | $ (6,951,000) | $ (7,897,000) |
Debt - Principal Maturities Of
Debt - Principal Maturities Of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2022 | $ 0 |
2023 | 350,000 |
2024 | 0 |
2025 | 840,000 |
2026 | 1,000,000 |
Thereafter | 900,000 |
Total | $ 3,090,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities- Location of Gain Loss in Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||
Net unrealized gain (loss) recognized in other comprehensive income | $ 31 | $ (4,871) | $ (5,349) |
Gain (loss) reclassified into earnings | (17,579) | (2,604) | 19,713 |
Commodity contracts | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Net unrealized gain (loss) recognized in other comprehensive income | 31 | (4,871) | (5,349) |
Commodity contracts | Sales and other revenues | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (loss) reclassified into earnings | (19,239) | (5,168) | (1,799) |
Commodity contracts | Cost of products sold | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (loss) reclassified into earnings | 0 | 4,281 | 22,876 |
Commodity contracts | Operating expenses | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (loss) reclassified into earnings | $ 1,660 | $ (1,717) | $ (1,364) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Pre-tax effect on Income Due to Maturities and Fair Value Adjustments of Economic Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives not designated as hedging instruments | $ (15,106) | $ 7,096 | $ (32,332) |
Commodity contracts | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives not designated as hedging instruments | (22,909) | 18,646 | (8,475) |
Commodity contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives not designated as hedging instruments | 11,816 | (4,250) | (6,427) |
Foreign currency contracts | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives not designated as hedging instruments | $ (4,013) | $ (7,300) | $ (17,430) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Notional Contracts by Derivative Type (Details) bbl in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) ozt bbl | |
Derivatives designated as cash flow hedging instruments: | Forward Contracts | |
Economic Hedges by Derivative Type [Line Items] | |
Derivative nonmonetary notional amount (in barrels) | 70 |
Derivatives not designated as hedging instruments: | Forward Contracts | |
Economic Hedges by Derivative Type [Line Items] | |
Derivative nonmonetary notional amount (in barrels) | 40 |
Derivatives not designated as hedging instruments: | NYMEX futures (WTI) - short | |
Economic Hedges by Derivative Type [Line Items] | |
Derivative nonmonetary notional amount (in barrels) | 495 |
Derivatives not designated as hedging instruments: | Foreign currency forward contracts | |
Economic Hedges by Derivative Type [Line Items] | |
Derivative notional amount | $ | $ 450,686,305 |
Derivatives not designated as hedging instruments: | Commodity contracts | |
Economic Hedges by Derivative Type [Line Items] | |
Derivative notional amount (in troy ounce) | ozt | 38,723 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Net Assets Recognized in Balance Sheet | $ 6,463 | $ 275 |
Net Liabilities Recognized in Balance Sheet | 1,835 | 23,978 |
Prepayment and other | ||
Derivative [Line Items] | ||
Net Assets Recognized in Balance Sheet | 6,463 | 275 |
Accrued liabilities | ||
Derivative [Line Items] | ||
Net Liabilities Recognized in Balance Sheet | 1,835 | 23,978 |
Derivatives designated as cash flow hedging instruments: | ||
Derivative [Line Items] | ||
Gross Assets | 0 | 0 |
Gross Liabilities Offset in Balance Sheet | 0 | 0 |
Net Assets Recognized in Balance Sheet | 0 | 0 |
Gross Liabilities | 238 | 359 |
Gross Assets Offset in Balance Sheet | 0 | 0 |
Net Liabilities Recognized in Balance Sheet | 238 | 359 |
Derivatives designated as cash flow hedging instruments: | Commodity forward contracts | ||
Derivative [Line Items] | ||
Gross Assets | 0 | |
Gross Liabilities Offset in Balance Sheet | 0 | |
Net Assets Recognized in Balance Sheet | 0 | |
Gross Liabilities | 238 | |
Gross Assets Offset in Balance Sheet | 0 | |
Net Liabilities Recognized in Balance Sheet | 238 | |
Derivatives designated as cash flow hedging instruments: | Commodity price swaps | ||
Derivative [Line Items] | ||
Gross Assets | 0 | |
Gross Liabilities Offset in Balance Sheet | 0 | |
Net Assets Recognized in Balance Sheet | 0 | |
Gross Liabilities | 359 | |
Gross Assets Offset in Balance Sheet | 0 | |
Net Liabilities Recognized in Balance Sheet | 359 | |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Gross Assets | 7,780 | 275 |
Gross Liabilities Offset in Balance Sheet | (1,317) | 0 |
Net Assets Recognized in Balance Sheet | 6,463 | 275 |
Gross Liabilities | 1,597 | 23,619 |
Gross Assets Offset in Balance Sheet | 0 | 0 |
Net Liabilities Recognized in Balance Sheet | 1,597 | 23,619 |
Derivatives not designated as hedging instruments: | Commodity forward contracts | ||
Derivative [Line Items] | ||
Gross Assets | 286 | 275 |
Gross Liabilities Offset in Balance Sheet | 0 | 0 |
Net Assets Recognized in Balance Sheet | 286 | 275 |
Gross Liabilities | 328 | 196 |
Gross Assets Offset in Balance Sheet | 0 | 0 |
Net Liabilities Recognized in Balance Sheet | 328 | 196 |
Derivatives not designated as hedging instruments: | NYMEX futures contracts | ||
Derivative [Line Items] | ||
Gross Assets | 0 | 0 |
Gross Liabilities Offset in Balance Sheet | 0 | 0 |
Net Assets Recognized in Balance Sheet | 0 | 0 |
Gross Liabilities | 1,269 | 418 |
Gross Assets Offset in Balance Sheet | 0 | 0 |
Net Liabilities Recognized in Balance Sheet | 1,269 | 418 |
Derivatives not designated as hedging instruments: | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Gross Assets | 7,494 | 0 |
Gross Liabilities Offset in Balance Sheet | (1,317) | 0 |
Net Assets Recognized in Balance Sheet | 6,177 | 0 |
Gross Liabilities | 0 | 23,005 |
Gross Assets Offset in Balance Sheet | 0 | 0 |
Net Liabilities Recognized in Balance Sheet | $ 0 | $ 23,005 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Pre-tax net unrealized loss | $ (5,687,885) | $ (5,168,361) |
Unrealized loss on hedging instruments | ||
Derivative [Line Items] | ||
Pre-tax net unrealized loss | $ 300 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Federal | $ (33,206) | $ (59,452) | $ 187,134 |
State | (1,802) | (5,391) | 29,547 |
Foreign | 30,336 | 9,423 | 3,805 |
Deferred | |||
Federal | 94,353 | (64,836) | 77,916 |
State | 1,386 | (52,872) | 26,073 |
Foreign | 32,831 | (59,019) | (25,323) |
Total income tax provision | $ 123,898 | $ (232,147) | $ 299,152 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax computed at statutory rate | $ 165,302 | $ (156,880) | $ 246,013 |
State income taxes, net of federal tax benefit | 13,588 | (41,566) | 47,259 |
Noncontrolling interest in net income | (25,931) | (21,799) | (25,494) |
Effect of change in state rate | (13,342) | 0 | 0 |
CARES Act benefits | (10,384) | (19,837) | 0 |
Foreign rate differential | 331 | (14,294) | 0 |
Federal tax credits | (29,777) | 0 | 0 |
US tax on non-US operations | 18,547 | 0 | 0 |
Effect of nondeductible goodwill impairment charge | 0 | 16,573 | 32,069 |
Other | 5,564 | 5,656 | (695) |
Income tax expense (benefit) total | $ 123,898 | $ (232,147) | $ 299,152 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | $ 251,996 | $ 212,695 |
Liabilities | (1,089,397) | (926,398) |
Valuation allowance | (3,165) | (8,577) |
Total | (837,401) | (713,703) |
Property, Plant and Equipment | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Liabilities | (741,970) | (712,339) |
Lease obligation | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | 131,567 | 94,447 |
Accrued employee benefits | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | 17,322 | 21,819 |
Accrued post-retirement benefits | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | 10,897 | 11,646 |
Accrued environmental costs | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | 26,999 | 27,200 |
Hedging instruments | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Liabilities | (652) | (903) |
Inventory differences | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Liabilities | (148,539) | (24,271) |
Deferred turnaround costs | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Liabilities | (100,585) | (85,326) |
Net operating loss and tax credit carryforwards | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | 63,967 | 51,227 |
HEP | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Liabilities | (94,486) | (94,982) |
Other | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Assets | $ 1,244 | $ 6,356 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ (3,165) | $ (8,577) | ||
Unrecognized tax benefits | 54,605 | $ 54,899 | $ 56,621 | $ 53,752 |
Unrecognized tax benefit from claims filed with IRS | 53,700 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax credits | 16,900 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax credits | 24,400 | |||
Net operating losses | 10,900 | |||
Foreign Tax Authority | Luxembourg | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating losses | $ 16,000 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits, balance at beginning of Period | $ 54,899 | $ 56,621 | $ 53,752 |
Additions for tax positions of prior years | 0 | 6 | 2,893 |
Reductions for tax positions of prior years | (49) | (1,500) | (24) |
Settlements | (125) | 0 | 0 |
Lapse of statute of limitations | (120) | (228) | 0 |
Unrecognized tax benefits, balance at end of Period | $ 54,605 | $ 54,899 | $ 56,621 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes To Equity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Common Shares Outstanding [Roll Forward] | |||
Common shares outstanding at beginning of period (in shares) | 162,413,660 | 161,846,525 | 172,121,491 |
Vesting of performance units (in shares) | 67,846 | 296,801 | 592,602 |
Vesting of restricted stock and restricted stock units (in shares) | 737,091 | 553,381 | 412,465 |
Forfeitures of restricted stock (in shares) | 0 | 0 | (13,807) |
Purchase of treasury stock (in shares) | (217,151) | (283,047) | (11,266,226) |
Common shares outstanding at end of period (in shares) | 163,001,446 | 162,413,660 | 161,846,525 |
Shares withheld under terms of agreements (in shares) | 217,151 | 283,047 | 415,466 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | |
Stockholders' Equity Note [Abstract] | ||||
Authorized share repurchase | $ 1,000 | |||
Value of shares withheld | $ 7.1 | $ 7.6 | $ 21.9 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components And Allocated Tax Effects Of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before-Tax | $ (13,762) | $ (2,106) | $ 781 |
Tax Expense (Benefit) | (2,971) | (794) | (370) |
Other comprehensive income (loss) | (10,791) | (1,312) | 1,151 |
Net change in foreign currency translation adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before-Tax | (13,336) | 6,226 | 13,337 |
Tax Expense (Benefit) | (2,793) | 1,357 | 2,848 |
Other comprehensive income (loss) | (10,543) | 4,869 | 10,489 |
Net unrealized gain on hedging instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before-Tax | 31 | (4,871) | (5,349) |
Tax Expense (Benefit) | 8 | (1,228) | (1,365) |
Other comprehensive income (loss) | 23 | (3,643) | (3,984) |
Net change in pension and other post-retirement benefit obligations | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before-Tax | 457 | 3,461 | 7,207 |
Tax Expense (Benefit) | 186 | 923 | 1,853 |
Other comprehensive income (loss) | $ 271 | $ 2,538 | $ 5,354 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Other Comprehensive Income (Loss) Amounts Reclassified to Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Sales and other revenues | $ 18,389,142 | $ 11,183,643 | $ 17,486,578 |
Cost of products sold | (15,567,052) | (9,158,805) | (13,918,384) |
Operating expenses | (1,517,478) | (1,300,277) | (1,394,052) |
Net income (loss) before tax | 787,152 | (747,046) | 1,171,504 |
Income tax expense (benefit) | 123,898 | (232,147) | 299,152 |
Net income (loss) | 663,254 | (514,899) | 872,352 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net income (loss) | (10,385) | 1,013 | 17,354 |
Net unrealized gain on hedging instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net income (loss) before tax | (17,579) | (2,604) | 19,713 |
Income tax expense (benefit) | (4,430) | (664) | 5,027 |
Net income (loss) | (13,149) | (1,940) | 14,686 |
Net unrealized gain on hedging instruments | Commodity price swaps | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Sales and other revenues | (19,239) | (5,168) | (1,799) |
Cost of products sold | 0 | 4,281 | 22,876 |
Operating expenses | 1,660 | (1,717) | (1,364) |
Net change in pension and other post-retirement benefit obligations | Reclassification out of Accumulated Other Comprehensive Income | Pension obligations | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other, net | 407 | 422 | 0 |
Income tax expense (benefit) | 103 | 108 | 0 |
Net income (loss) | 304 | 314 | 0 |
Net change in pension and other post-retirement benefit obligations | Reclassification out of Accumulated Other Comprehensive Income | Post-retirement healthcare obligations | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other, net | 3,328 | 3,564 | 3,587 |
Income tax expense (benefit) | 839 | 909 | 915 |
Net income (loss) | 2,489 | 2,655 | 2,672 |
Net change in pension and other post-retirement benefit obligations | Reclassification out of Accumulated Other Comprehensive Income | Retirement restoration plan | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other, net | (39) | (22) | (6) |
Income tax expense (benefit) | (10) | (6) | (2) |
Net income (loss) | $ (29) | $ (16) | $ (4) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Loss In Equity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' equity | $ 6,294,465 | $ 5,722,203 | $ 6,509,426 | $ 6,459,059 |
Foreign currency translation adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' equity | (7,861) | 2,682 | ||
Unrealized gain (loss) on defined benefit plans | Pension obligations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' equity | 1,449 | (248) | ||
Unrealized gain (loss) on defined benefit plans | Post-retirement healthcare obligations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' equity | 9,342 | 11,310 | ||
Unrealized loss on hedging instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' equity | (259) | (282) | ||
Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' equity | $ 2,671 | $ 13,462 | $ 14,774 | $ 13,623 |
Pension and Post-retirement P_3
Pension and Post-retirement Plans - Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension obligations | |||
Change in plans' benefit obligations | |||
Pension plan's benefit obligation at beginning of period | $ 126,620 | $ 110,410 | |
Service cost | 4,455 | 3,929 | $ 4,135 |
Interest cost | 2,740 | 2,772 | 3,026 |
Actuarial (gain) loss | (7,363) | 8,391 | |
Benefits paid | (4,211) | (1,558) | |
Curtailment | 0 | (4,078) | |
Contractual termination benefits | 0 | 915 | |
Transfer from other plans | 706 | 479 | |
Foreign currency exchange rate changes | (2,533) | 5,360 | |
Pension plan's benefit obligation at end of period | 120,414 | 126,620 | 110,410 |
Change in pension plans assets | |||
Fair value of plan assets at beginning of period | 123,950 | 105,358 | |
Return on plans assets | (2,228) | 10,936 | |
Employer contributions | 3,542 | 3,487 | |
Benefits paid | (4,211) | (1,558) | |
Transfer payments | 706 | 479 | |
Foreign currency exchange rate changes | (2,434) | 5,248 | |
Fair value of plan assets at end of period | 119,325 | 123,950 | 105,358 |
Under-funded balance | (1,089) | (2,670) | |
Accrued post-retirement plan liability | (1,089) | (2,670) | |
Cumulative actuarial gain (loss) | 1 | 1,658 | |
Post-retirement healthcare obligations | |||
Change in plans' benefit obligations | |||
Pension plan's benefit obligation at beginning of period | 33,478 | 31,273 | |
Service cost | 2,324 | 1,616 | 1,582 |
Interest cost | 782 | 870 | 1,029 |
Actuarial (gain) loss | (1,133) | 1,131 | |
Benefits paid | (706) | (1,766) | |
Foreign currency exchange rate changes | 71 | 354 | |
Pension plan's benefit obligation at end of period | 34,816 | 33,478 | 31,273 |
Change in pension plans assets | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Employer contributions | 673 | 1,742 | |
Participant contributions | 33 | 24 | |
Benefits paid | (706) | (1,766) | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Under-funded balance | (34,816) | (33,478) | |
Accrued liabilities | (832) | (1,946) | |
Other long-term liabilities | (33,984) | (31,532) | |
Accrued post-retirement plan liability | (34,816) | (33,478) | |
Cumulative actuarial gain (loss) | (271) | (1,523) | |
Prior service credit | 15,031 | 18,511 | |
Total | $ 14,760 | $ 16,988 |
Pension and Post-retirement P_4
Pension and Post-retirement Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution expense | $ 45,000 | $ 43,300 | $ 30,300 |
Pension obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 118,400 | $ 119,200 | |
Discount rate | 3% | 2.60% | |
Future compensation annual rate increase | 3% | 3% | |
Expected long-term rate of return on assets | 3.25% | ||
Expected contribution in pension plan | $ 3,600 | ||
Expected benefit payment in 2022 | 2,500 | ||
Expected benefit payment in 2023 | 2,900 | ||
Expected benefit payment in 2024 | 3,300 | ||
Expected benefit payment in 2025 | 87,600 | ||
Expected benefit payment in 2026 | 900 | ||
Expected benefit payment from 2027 to 2030 | 5,400 | ||
Benefit obligation | $ 120,414 | $ 126,620 | 110,410 |
Pension obligations | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target investment rates | 16% | ||
Pension obligations | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target investment rates | 75% | ||
Pension obligations | Real estate and infrastructure | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target investment rates | 5% | ||
Pension obligations | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target investment rates | 4% | ||
Post-retirement healthcare obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.40% | 1.10% | |
Expected benefit payment in 2022 | $ 800 | ||
Expected benefit payment in 2023 | 2,100 | ||
Expected benefit payment in 2024 | 2,200 | ||
Expected benefit payment in 2025 | 2,200 | ||
Expected benefit payment in 2026 | 2,300 | ||
Expected benefit payment from 2027 to 2030 | 11,500 | ||
Benefit obligation | 34,816 | $ 33,478 | 31,273 |
Retirement restoration plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected benefit payment in 2022 | 200 | ||
Pension expense | 100 | 100 | $ 100 |
Accrued liability | 2,300 | $ 2,500 | |
Benefit obligation | $ 2,300 |
Pension and Post-retirement P_5
Pension and Post-retirement Plans - Projected and Accumulated Benefit Obligations (Details) - Pension obligations - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 35,963 | $ 79,866 |
Fair value of project plan assets | 33,966 | 77,035 |
Accumulated benefit obligation | 35,249 | 41,654 |
Fair value of accumulated plan assets | $ 33,966 | $ 39,105 |
Pension and Post-retirement P_6
Pension and Post-retirement Plans - Net Periodic Expense (Details) - Pension obligations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4,455 | $ 3,929 | $ 4,135 |
Interest cost | 2,740 | 2,772 | 3,026 |
Expected return on plans assets | (3,031) | (4,578) | (3,840) |
Amortization of (gain) loss | (407) | (422) | 0 |
Curtailment | 0 | (137) | 0 |
Contractual termination benefits | 0 | 915 | 0 |
Net periodic pension expense | $ 3,757 | $ 2,479 | $ 3,321 |
Pension and Post-retirement P_7
Pension and Post-retirement Plans - Defined Benefit plan, Allocation of Investment Funds (Details) - Pension obligations - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | $ 119,325 | $ 123,950 | $ 105,358 |
Fair Value, Recurring | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 85,359 | 84,844 | |
Fair Value, Recurring | Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 6,802 | 35,916 | |
Fair Value, Recurring | Fixed income | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 78,557 | 48,928 | |
Fair Value, Recurring | Level 1 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 536 | 362 | |
Fair Value, Recurring | Level 1 | Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Fair Value, Recurring | Level 1 | Fixed income | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 536 | 362 | |
Fair Value, Recurring | Level 2 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 84,823 | 84,482 | |
Fair Value, Recurring | Level 2 | Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 6,802 | 35,916 | |
Fair Value, Recurring | Level 2 | Fixed income | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 78,021 | 48,566 | |
Fair Value, Recurring | Level 3 | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Fair Value, Recurring | Level 3 | Equity securities | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | 0 | 0 | |
Fair Value, Recurring | Level 3 | Fixed income | |||
Defined Benefit Plan, Plan Assets, Allocation [Line Items] | |||
Fair values of pension plan assets | $ 0 | $ 0 |
Pension and Post-retirement P_8
Pension and Post-retirement Plans - Weighted Average Assumptions Used to Determine End of Period Benefit Obligations (Details) - Post-retirement healthcare obligations | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.40% | 1.10% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.29% | 1.88% |
Current health care trend rate | 6% | 5.50% |
Ultimate health care trend rate | 4% | 4.50% |
Year rate reaches ultimate trend rate | 2023 | 2022 |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.10% | 2.60% |
Current health care trend rate | 7.25% | 6% |
Ultimate health care trend rate | 4.50% | 5% |
Year rate reaches ultimate trend rate | 2041 | 2023 |
Pension and Post-retirement P_9
Pension and Post-retirement Plans - Net Periodic Credit (Details) - Post-retirement healthcare obligations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2,324 | $ 1,616 | $ 1,582 |
Interest cost | 782 | 870 | 1,029 |
Amortization of prior service credit | (3,481) | (3,481) | (3,481) |
Amortization of (gain) loss | 153 | (83) | (106) |
Net periodic post-retirement credit | $ (222) | $ (1,078) | $ (976) |
Contingencies And Contractual_3
Contingencies And Contractual Commitments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Gain on business interruption insurance settlement | $ 81 | |||
Proceeds from legal settlement | $ 51.5 | |||
Transportation and storage costs | $ 160.5 | $ 139 | $ 144.8 |
Contingencies And Contractual_4
Contingencies And Contractual Commitments - Schedule of Minimum Future Fees Under Agreement (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Transportation and Storage Contracts, Fiscal Year Maturity | |
2022 | $ 166,456 |
2023 | 164,518 |
2024 | 163,507 |
2025 | 163,972 |
2026 | 129,572 |
Thereafter | 839,775 |
Total | $ 1,627,800 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Osage Pipeline | |
Segment Reporting Information [Line Items] | |
Equity method investment, ownership percentage | 50% |
UNEV Pipeline | |
Segment Reporting Information [Line Items] | |
Equity method investment, ownership percentage | 75% |
Segment Information - Schedule
Segment Information - Schedule Of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | $ 18,389,142,000 | $ 11,183,643,000 | $ 17,486,578,000 | |
Intersegment revenues | 0 | 0 | 0 | |
Sales and other revenues | 18,389,142,000 | 11,183,643,000 | 17,486,578,000 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 15,567,052,000 | 9,158,805,000 | 13,918,384,000 | |
Lower of cost or market inventory valuation adjustment | (310,123,000) | 78,499,000 | (119,775,000) | |
Operating expenses | 1,517,478,000 | 1,300,277,000 | 1,394,052,000 | |
Selling, general and administrative expenses | 362,010,000 | 313,600,000 | 354,236,000 | |
Depreciation and amortization | 503,539,000 | 520,912,000 | 509,925,000 | |
Goodwill and long-lived asset impairments | 0 | 545,293,000 | 152,712,000 | |
Goodwill impairment | 152,712,000 | |||
Income (loss) from operations | 749,186,000 | (733,743,000) | 1,277,044,000 | |
Earnings of equity method investments | 12,432,000 | 6,647,000 | 5,180,000 | |
Capital expenditures | 813,409,000 | 330,160,000 | 293,763,000 | |
Cash and cash equivalents | $ 1,368,318,000 | 234,444,000 | 1,368,318,000 | |
Total assets | 11,506,864,000 | 12,916,613,000 | 11,506,864,000 | |
Long-term debt | 3,142,718,000 | 3,072,737,000 | 3,142,718,000 | |
Corporate, Other and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 2,000 | 6,201,000 | 220,000 | |
Intersegment revenues | (1,024,525,000) | (662,805,000) | (735,735,000) | |
Sales and other revenues | (1,024,523,000) | (656,604,000) | (735,515,000) | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | (921,812,000) | (552,162,000) | (642,158,000) | |
Lower of cost or market inventory valuation adjustment | (509,000) | (3,715,000) | 0 | |
Operating expenses | (51,279,000) | (55,389,000) | (94,955,000) | |
Selling, general and administrative expenses | 51,655,000 | 18,497,000 | 54,872,000 | |
Depreciation and amortization | 737,000 | 20,194,000 | 14,506,000 | |
Goodwill and long-lived asset impairments | 0 | |||
Goodwill impairment | 0 | |||
Income (loss) from operations | (103,315,000) | (84,029,000) | (67,780,000) | |
Earnings of equity method investments | 0 | 0 | 0 | |
Capital expenditures | 22,928,000 | 20,531,000 | 23,652,000 | |
Cash and cash equivalents | 1,179,493,000 | 106,589,000 | 1,179,493,000 | |
Total assets | 1,130,625,000 | (1,608,484,000) | 1,130,625,000 | |
Long-term debt | 1,737,115,000 | 1,739,688,000 | 1,737,115,000 | |
Refining | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 15,734,870,000 | 9,286,658,000 | 15,284,110,000 | |
Intersegment revenues | 623,688,000 | 252,531,000 | 312,678,000 | |
Sales and other revenues | 16,358,558,000 | 9,539,189,000 | 15,596,788,000 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 14,673,062,000 | 8,439,680,000 | 12,980,506,000 | |
Lower of cost or market inventory valuation adjustment | (318,353,000) | 82,214,000 | (119,775,000) | |
Operating expenses | 1,090,424,000 | 988,045,000 | 1,095,488,000 | |
Selling, general and administrative expenses | 127,563,000 | 127,298,000 | 120,518,000 | |
Depreciation and amortization | 334,365,000 | 324,617,000 | 309,932,000 | |
Goodwill and long-lived asset impairments | 241,760,000 | |||
Goodwill impairment | 0 | |||
Income (loss) from operations | 451,497,000 | (664,425,000) | 1,210,119,000 | |
Earnings of equity method investments | 0 | 0 | 0 | |
Capital expenditures | 160,431,000 | 152,726,000 | 188,513,000 | |
Cash and cash equivalents | 3,106,000 | 0 | 3,106,000 | |
Total assets | 6,203,847,000 | 9,736,851,000 | 6,203,847,000 | |
Long-term debt | 0 | 0 | 0 | |
Renewables | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 0 | 0 | 0 | |
Intersegment revenues | 0 | 0 | 0 | |
Sales and other revenues | 0 | 0 | 0 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 0 | 0 | 0 | |
Lower of cost or market inventory valuation adjustment | 8,739,000 | 0 | 0 | |
Operating expenses | 55,353,000 | 3,861,000 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | |
Depreciation and amortization | 1,672,000 | 0 | 0 | |
Goodwill and long-lived asset impairments | 0 | |||
Goodwill impairment | 0 | |||
Income (loss) from operations | (65,764,000) | (3,861,000) | 0 | |
Earnings of equity method investments | 0 | 0 | 0 | |
Capital expenditures | 510,836,000 | 65,147,000 | 10,489,000 | |
Cash and cash equivalents | 0 | 0 | 0 | |
Total assets | 109,601,000 | 464,493,000 | 109,601,000 | |
Long-term debt | 0 | 0 | 0 | |
Lubricants and Specialty Products | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill and long-lived asset impairments | 81,900,000 | |||
Lubricants and Specialty Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 2,550,624,000 | 1,792,745,000 | 2,081,221,000 | |
Intersegment revenues | 9,988,000 | 10,465,000 | 11,307,000 | |
Sales and other revenues | 2,560,612,000 | 1,803,210,000 | 2,092,528,000 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 1,815,802,000 | 1,271,287,000 | 1,580,036,000 | |
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | |
Operating expenses | 252,456,000 | 216,068,000 | 231,523,000 | |
Selling, general and administrative expenses | 170,155,000 | 157,816,000 | 168,595,000 | |
Depreciation and amortization | 79,767,000 | 80,656,000 | 88,781,000 | |
Goodwill and long-lived asset impairments | 286,575,000 | |||
Goodwill impairment | 152,712,000 | |||
Income (loss) from operations | 242,432,000 | (209,192,000) | (129,119,000) | |
Earnings of equity method investments | 0 | 0 | 0 | |
Capital expenditures | 30,878,000 | 32,473,000 | 40,997,000 | |
Cash and cash equivalents | 163,729,000 | 113,474,000 | 163,729,000 | |
Total assets | 1,864,313,000 | 2,073,638,000 | 1,864,313,000 | |
Long-term debt | 0 | 0 | 0 | |
HEP | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 103,646,000 | 98,039,000 | 121,027,000 | |
Intersegment revenues | 390,849,000 | 399,809,000 | 411,750,000 | |
Sales and other revenues | 494,495,000 | 497,848,000 | 532,777,000 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 0 | 0 | 0 | |
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | |
Operating expenses | 170,524,000 | 147,692,000 | 161,996,000 | |
Selling, general and administrative expenses | 12,637,000 | 9,989,000 | 10,251,000 | |
Depreciation and amortization | 86,998,000 | 95,445,000 | 96,706,000 | |
Goodwill and long-lived asset impairments | 16,958,000 | |||
Goodwill impairment | 0 | |||
Income (loss) from operations | 224,336,000 | 227,764,000 | 263,824,000 | |
Earnings of equity method investments | 12,432,000 | 6,647,000 | 5,180,000 | |
Capital expenditures | 88,336,000 | 59,283,000 | $ 30,112,000 | |
Cash and cash equivalents | 21,990,000 | 14,381,000 | 21,990,000 | |
Total assets | 2,198,478,000 | 2,250,115,000 | 2,198,478,000 | |
Long-term debt | $ 1,405,603,000 | $ 1,333,049,000 | 1,405,603,000 | |
Corporate and Other | Cheyenne | ||||
Segment Reporting Information [Line Items] | ||||
Operating expenses | 11,400,000 | |||
Decommissioning and other shutdown costs | $ 14,000,000 |