HF Sinclair 8-K Holly Corporation Reports Record First Quarter Results

EXHIBIT 99.1

For Immediate Release

HOLLY CORPORATION REPORTS RECORD FIRST QUARTER RESULTS

     Dallas, Texas, May 8, 2007 — Holly Corporation (NYSE-HOC) (“Holly” or the “Company”) today reported a record first quarter net income of $67.5 million ($1.22 per basic and $1.20 per diluted share) for the three months ended March 31, 2007, compared to net income of $46.8 million ($0.80 per basic and $0.78 per diluted share) for the three months ended March 31, 2006. Income from continuing operations was $67.5 million ($1.22 per basic and $1.20 per diluted share) for the three months ended March 31, 2007, compared to income from continuing operations of $31.2 million ($.53 per basic and $.52 per diluted share) for the three months ended March 31, 2006.

     On March 31, 2006 we sold our petroleum refinery in Great Falls, Montana (the “Montana Refinery”) to a subsidiary of Connacher Oil and Gas Limited. Accordingly, the results of operations of the Montana Refinery and a net gain of $14.3 million for the three months ended March 31, 2006 are shown in discontinued operations.

     Income from continuing operations increased $36.4 million for the first quarter of 2007, an increase of 117%, as compared to the first quarter of 2006 principally due to improved refined product margins experienced in the current year’s first quarter and an increase in volume of produced refined products sold. These favorable factors were partially offset by the effects of higher depreciation, depletion and amortization costs and general and administrative expenses incurred in the first quarter of 2007, partially offset by a decrease in operating expenses. Overall refinery production levels from continuing operations increased by 7% for the first quarter of 2007 as compared to the same period in 2006 primarily due to increased production following the completion of our Navajo Refinery’s 8,000 BPSD capacity expansion in the latter half of 2006, partially offset by the effects of unplanned downtime of certain units at our Navajo

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Refinery in the first quarter of 2007. Overall refinery gross margins from continuing operations were $16.09 per produced barrel for the first quarter of 2007 compared to refinery gross margins from continuing operations of $11.96 per produced barrel for the first quarter of 2006.

     Sales and other revenues from continuing operations increased 17% for the first quarter of 2007 as compared to the first quarter of 2006, due principally to an increase in volumes of produced refined products sold. Additionally, the first quarter of 2007 included revenues attributable to certain direct crude oil sales that were previously netted against the corresponding purchases and presented in cost of products sold prior to our adoption of new accounting guidance effective April 1, 2006. Cost of products sold was higher in the first quarter of 2007 due principally to an increase in volumes of produced refined products sold and the inclusion of costs attributable to direct crude oil sales, partially offset by a per unit decrease in cost of produced refined products sold. Operating expenses, exclusive of depreciation, depletion and amortization, decreased in the first quarter of 2007 due principally to lower utility and environmental costs, partially offset by higher refinery maintenance costs. General and administrative expenses were up for the first quarter of 2007 as compared to same period in 2006, due primarily to increased equity-based incentive compensation expense which is affected by increases in our stock price.

     “We had outstanding results for the 2007 first quarter as strong industry-wide refinery margins were enhanced by the positive effects of processing improvements completed at our two refineries last summer and the very strong gasoline and diesel crack spreads realized in the markets served by our Navajo and Woods Cross Refineries,” said Matthew Clifton, Chairman of the Board and Chief Executive Officer of Holly. “Our income from continuing operations well surpassed prior years’ levels, giving us a very solid start in 2007. For the first quarter of 2007, we generated earnings before interest, taxes and depreciation (“EBITDA”) of $111.4 million, a 109% increase over the $53.2 million of EBITDA for the first quarter of 2006. Although some of the units at our Navajo Refinery experienced downtime during the first quarter of 2007, certain maintenance and inspection activities were performed during the downtime that will permit us to defer a planned major turnaround at the Navajo Refinery from December 2007 to the fourth quarter of 2008. Strong refinery margins have continued in the first part of the 2007 second quarter and both refineries are running well.”

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     “During the 2007 first quarter, we continued our share repurchase program, purchasing 545,400 shares during the quarter at an average cost of $53.56 per share while ending the quarter with no debt and $280.4 million in cash and marketable securities. In addition to the stock repurchase program, in this era of high profitability, we are continuing to reinvest significant sums in capital projects at our refineries aimed at maximizing shareholder return. Our capital expenditures totaled $26.8 million for the first quarter of 2007. As previously reported, our Board of Directors has approved projects to significantly enhance our feedstock flexibility at the Navajo and Woods Cross Refineries and to expand the capacity of both facilities. Progress on these projects continues within budget and is consistent with our fourth quarter 2008 target completion date.”

     “Looking forward, we believe that the combination of our sour crude oil processing capabilities, the fast growing markets that we serve, and our successful execution of value-added refining projects will continue to favorably impact our future results. With respect to Holly Energy Partners, we continue to be pleased with its operations to date and look forward to its continued success,” said Clifton.

     The Company has scheduled a conference call for today, May 8, 2007 at 10:00AM EDT to discuss financial results. Listeners may access this call by dialing (888) 548-4639. The ID# for this call is 5573152. Listeners may access the call via the internet at:http://www.videonewswire.com/event.asp?id=39077. Additionally, listeners may replay this call approximately two hours after the call concludes by dialing (800) 642-1687. This audio archive will be available for two weeks.

     Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries an 83,000 barrels per stream day (“bpsd”) refinery located in New Mexico and a 26,000 bpsd refinery in Utah. Holly also owns a 45% interest (including the general partner interest) in Holly Energy Partners, L.P., which through subsidiaries owns or leases approximately 1,700 miles of petroleum product pipelines in Texas, New Mexico and Oklahoma and refined product terminals in several Southwest and Rocky Mountain states.

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     The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Such differences could be caused by a number of factors including, but not limited to, risks and uncertainties with respect to the actions of actual or potential competitive suppliers of refined petroleum products in the Company’s markets, the demand for and supply of crude oil and refined products, the spread between market prices for refined products and market prices for crude oil, the possibility of constraints on the transportation of refined products, the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, effects of governmental regulations and policies, the availability and cost of financing to the Company, the effectiveness of the Company’s capital investments and marketing strategies, the ability of the Company to acquire refined product operations or pipeline and terminal operations on acceptable terms and to integrate any future acquired operations, the Company’s efficiency in carrying out construction projects, the possibility of terrorist attacks and the consequences of any such attacks, general economic conditions, and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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RESULTS OF OPERATIONS

Financial Data (all information in this release is unaudited)

	Three Months Ended
	March 31,						Change from 2006
	2007			2006			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	925,867		$	791,594		$	134,273			17.0	%
Operating costs and expenses:
Cost of products sold (exclusive of depreciation, depletion and amortization)		751,714			675,485			76,229			11.3
Operating expenses (exclusive of depreciation, depletion and amortization)		50,129			52,467			(2,338	)		(4.5	)
General and administrative expenses (exclusive of depreciation, depletion and amortization)		15,847			13,516			2,331			17.2
Depreciation, depletion and amortization		11,451			8,024			3,427			42.7
Exploration expenses, including dry holes		152			127			25			19.7
Total operating costs and expenses		829,293			749,619			79,674			10.6
Income from operations		96,574			41,975			54,599			130.1
Other income (expense):
Equity in earnings of HEP		3,346			3,212			134			4.2
Interest income		2,560			1,735			825			47.6
Interest expense		(252	)		(275	)		23			(8.4	)
		5,654			4,672			982			21.0
Income from continuing operations before income taxes		102,228			46,647			55,581			119.2
Income tax provision		34,686			15,487			19,199			124.0
Income from continuing operations		67,542			31,160			36,382			116.8
Income from discontinued operations, net of taxes		—			15,644			(15,644	)		(100.0	)
Net income	$	67,542		$	46,804		$	20,738			44.3	%
Basic earnings per share:
Continuing operations	$	1.22		$	0.53		$	0.69			130.2	%
Discontinued operations		—			0.27			(0.27	)		(100.0	)
Net income	$	1.22		$	0.80		$	0.42			52.5	%
Diluted earnings per share:
Continuing operations	$	1.20		$	0.52		$	0.68			130.8	%
Discontinued operations		—			0.26			(0.26	)		(100.0	)
Net income	$	1.20		$	0.78		$	0.42			53.8	%
Cash dividends declared per common share	$	0.10		$	0.05		$	0.05			100.0	%
Average number of common shares outstanding:
Basic		55,189			58,458			(3,269	)		(5.6	)%
Diluted		56,318			60,028			(3,710	)		(6.2	)%

Balance Sheet Data (Unaudited)

	March 31,		December 31,
	2007		2006
	(In thousands)
Cash, cash equivalents and investments in marketable securities	$	280,397	$	255,953
Working capital	$	257,283	$	240,181
Total assets	$	1,247,042	$	1,237,869
Stockholders’ equity	$	499,229	$	466,094

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Other Financial Data (Unaudited)

	Three Months Ended
	March 31,
	2007			2006
	(In thousands)
Net cash provided by (used for) operating activities	$	86,301		$	(18,340	)
Net cash provided by (used for) investing activities	$	(53,775	)	$	119,888
Net cash used for financing activities	$	(35,464	)	$	(56,001	)
Capital expenditures	$	26,750		$	32,235
EBITDA from continuing operations(1)	$	111,371		$	53,211

(1) Earnings before interest, taxes, depreciation and amortization, which we refer to as EBITDA as presented above is reconciled to net income under “Reconciliations to Amounts Reported under Generally Accepted Accounting Principles” below.

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Refining Operating Data

Our refinery operations include the Navajo Refinery and the Woods Cross Refinery. The following tables set forth information, including non-GAAP performance measures about our refinery operations. The cost of products and refinery gross margin do not include the effect of depreciation, depletion and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

	Three Months Ended
	March 31,
	2007			2006
Navajo Refinery
Crude charge (BPD)(1)		76,820			72,520
Refinery production (BPD)(2)		86,100			81,110
Sales of produced refined products (BPD)		85,390			79,760
Sales of refined products (BPD)(3)		96,360			90,780
Refinery utilization(4)		92.6	%		96.7	%
Average per produced barrel(5)
Net sales	$	75.58		$	75.54
Cost of products(6)		59.04			62.85
Refinery gross margin		16.54			12.69
Refinery operating expenses(7)		4.18			4.39
Net operating margin	$	12.36		$	8.30
Feedstocks:
Sour crude oil		75	%		82	%
Sweet crude oil		10	%		5	%
Other feedstocks and blends		15	%		13	%
Total		100	%		100	%
Sales of produced refined products:
Gasolines		61	%		62	%
Diesel fuels		27	%		26	%
Jet fuels		3	%		5	%
Fuel oil		3	%		—	%
Asphalt		3	%		1	%
LPG and other		3	%		6	%
Total		100	%		100	%
Woods Cross Refinery
Crude charge (BPD)(1)		24,650			22,730
Refinery production (BPD)(2)		26,570			24,010
Sales of produced refined products (BPD)		28,120			23,290
Sales of refined products (BPD)(3)		28,550			24,490
Refinery utilization(4)		94.8	%		87.4	%
Average per produced barrel(5)
Net sales	$	71.61		$	69.64
Cost of products(6)		56.87			60.19
Refinery gross margin		14.74			9.45
Refinery operating expenses(7)		4.76			5.73
Net operating margin	$	9.98		$	3.72

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	Three Months Ended
	March 31,
	2007			2006
Woods Cross Refinery
Feedstocks:
Sour crude oil		—	%		6	%
Sweet crude oil		91	%		86	%
Other feedstocks and blends		9	%		8	%
Total		100	%		100	%
Sales of produced refined products:
Gasolines		63	%		61	%
Diesel fuels		25	%		26	%
Jet fuels		2	%		3	%
Fuel oil		6	%		6	%
LPG and other		4	%		4	%
Total		100	%		100	%
Consolidated
Crude charge (BPD)(1)		101,470			95,250
Refinery production (BPD)(2)		112,670			105,120
Sales of produced refined products (BPD)		113,510			103,050
Sales of refined products (BPD)(3)		124,910			115,270
Refinery utilization(4)		93.1	%		94.3	%
Average per produced barrel(5)
Net sales	$	74.59		$	74.21
Cost of products(6)		58.50			62.25
Refinery gross margin		16.09			11.96
Refinery operating expenses(7)		4.32			4.70
Net operating margin	$	11.77		$	7.26
Feedstocks:
Sour crude oil		58	%		64	%
Sweet crude oil		28	%		24	%
Other feedstocks and blends		14	%		12	%
Total		100	%		100	%
Sales of produced refined products:
Gasolines		61	%		62	%
Diesel fuels		27	%		26	%
Jet fuels		3	%		4	%
Fuel oil		4	%		2	%
Asphalt		2	%		1	%
LPG and other		3	%		5	%
Total		100	%		100	%

(1)	Crude charge represents the barrels per day of crude oil processed at the crude units at our refineries.
(2)	Refinery production represents the barrels per day of refined products yielded from processing crude and other refinery feedstocks through the crude units and other conversion units at our refineries.
(3)	Includes refined products purchased for resale.
(4)	Represents crude charge divided by total crude capacity (BPSD). Crude capacity for the Navajo Refinery was increased from 75,000 BPSD to 83,000 BPSD in mid-year 2006, increasing our consolidated crude capacity from 101,000 BPSD to 109,000 BPSD.
(5)	Represents average per barrel amounts for produced refined products sold, which are non-GAAP. Reconciliations to amounts reported under GAAP are located under “Reconciliations to Amounts Reported under Generally Accepted Accounting Principles” below.
(6)	Transportation costs billed from HEP are included in cost of products.
(7)	Represents operating expenses of our refineries, exclusive of depreciation, depletion, and amortization.

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Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles

Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to amounts reported under generally accepted accounting principles in financial statements.

Earnings before interest, taxes, depreciation and amortization, which we refer to as EBITDA, is calculated as net income plus (i) interest expense net of interest income, (ii) income tax provision, and (iii) depreciation, depletion and amortization. EBITDA is not a calculation based upon accounting principles generally accepted in the United States; however, the amounts included in the EBITDA calculation are derived from amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented here because it is a widely used financial indicator used by investors and analysts to measure performance. EBITDA is also used by our management for internal analysis and as a basis for financial covenants. We are reporting EBITDA from continuing operations.

Set forth below is our calculation of EBITDA from continuing operations.

	Three Months Ended
	March 31,
	2007			2006
	(In thousands)
Income from continuing operations	$	67,542		$	31,160
Add provision for income tax		34,686			15,487
Add interest expense		252			275
Subtract interest income		(2,560	)		(1,735	)
Add depreciation and amortization		11,451			8,024
EBITDA from continuing operations	$	111,371		$	53,211

Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Refinery gross margin and net operating margin are non-GAAP performance measures that are used by our management and others to compare our refining performance to that of other companies in our industry. We believe these margin measures are helpful to investors in evaluating our refining performance on a relative and absolute basis.

We calculate refinery gross margin and net operating margin using net sales, cost of products and operating expenses, in each case averaged per produced barrel sold. These two margins do not include the effect of depreciation, depletion and amortization. Each of these component performance measures can be reconciled directly to our Statements of Income.

Other companies in our industry may not calculate these performance measures in the same manner.

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Refinery Gross Margin

Refinery gross margin per barrel is the difference between average net sales price and average cost of products per barrel of produced refined products. Refinery gross margin for each of our refineries and for both of our refineries on a consolidated basis is calculated as shown below.

	Three Months Ended
	March 31,
	2007		2006
Average per produced barrel:
Navajo Refinery
Net sales	$	75.58	$	75.54
Less cost of products		59.04		62.85
Refinery gross margin	$	16.54	$	12.69
Woods Cross Refinery
Net sales	$	71.61	$	69.64
Less cost of products		56.87		60.19
Refinery gross margin	$	14.74	$	9.45
Consolidated
Net sales	$	74.59	$	74.21
Less cost of products		58.50		62.25
Refinery gross margin	$	16.09	$	11.96

Net Operating Margin

Net operating margin per barrel is the difference between refinery gross margin and refinery operating expenses per barrel of produced refined products. Net operating margin for each of our refineries and for both of our refineries on a consolidated basis is calculated as shown below.

	Three Months Ended
	March 31,
	2007		2006
Average per produced barrel:
Navajo Refinery
Refinery gross margin	$	16.54	$	12.69
Less refinery operating expenses		4.18		4.39
Net operating margin	$	12.36	$	8.30
Woods Cross Refinery
Refinery gross margin	$	14.74	$	9.45
Less refinery operating expenses		4.76		5.73
Net operating margin	$	9.98	$	3.72
Consolidated
Refinery gross margin	$	16.09	$	11.96
Less refinery operating expenses		4.32		4.70
Net operating margin	$	11.77	$	7.26

Below are reconciliations to our Consolidated Statements of Income for (i) net sales, cost of products and operating expenses, in each case averaged per produced barrel sold, and (ii) net operating margin and refinery gross margin. Due to rounding of reported numbers, some amounts may not calculate exactly.

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Reconciliations of refined product sales from produced products sold to total sales and other revenue

	Three Months Ended March 31,
	2007			2006
Navajo Refinery
Average sales price per produced barrel sold	$	75.58		$	75.54
Times sales of produced refined products sold (BPD)		85,390			79,760
Times number of days in period		90			90
Refined product sales from produced products sold	$	580,840		$	542,256
Woods Cross Refinery
Average sales price per produced barrel sold	$	71.61		$	69.64
Times sales of produced refined products sold (BPD)		28,120			23,290
Times number of days in period		90			90
Refined product sales from produced products sold	$	181,231		$	145,972
Sum of refined products sales from produced products sold from our two refineries(4)	$	762,071		$	688,228
Add refined product sales from purchased products and rounding(1)		79,225			84,542
Total refined products sales		841,296			772,770
Add direct sales of excess crude oil(2)		61,680			—
Add other refining segment revenue(3)		22,606			18,578
Total refining segment revenue		925,582			791,348
Add corporate and other revenues		391			381
Subtract consolidations and eliminations		(106	)		(135	)
Sales and other revenues	$	925,867		$	791,594

(1)	We purchase finished products when opportunities arise that provide a profit on the sale of such products, or to meet delivery commitments.
(2)	We purchase crude oil and enter into buy/sell exchanges in excess of the needs to supply our refineries. Certain direct sales of this excess crude oil are made to purchasers or users of crude oil. Under new accounting guidance, these sales and related purchases starting April 1, 2006 are being measured at fair value and accounted for as revenues with the related acquisition costs included as cost of products sold. Prior to April 1, 2006, sales and cost of sales attributable to such excess crude oil direct sales were netted and presented in cost of products sold.
(3)	Other refining segment revenue includes the revenues associated with NK Asphalt Partners and revenue derived from sulfur credit sales.
(4)	The above calculations of refined product sales from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.

	Three Months Ended March 31,
	2007		2006
Average sales price per produced barrel sold	$	74.59	$	74.21
Times sales of produced refined products sold (BPD)		113,510		103,050
Times number of days in period		90		90
Refined product sales from produced products sold	$	762,071	$	688,228

Reconciliation of average cost of products per produced barrel sold to total costs of products sold

	Three Months Ended
	March 31,
	2007		2006
Navajo Refinery
Average cost of products per produced barrel sold	$	59.04	$	62.85
Times sales of produced refined products sold (BPD)		85,390		79,760
Times number of days in period		90		90
Cost of products for produced products sold	$	453,728	$	451,162

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	Three Months Ended March 31,
	2007			2006
Woods Cross Refinery
Average cost of products per produced barrel sold	$	56.87		$	60.19
Times sales of produced refined products sold (BPD)		28,120			23,290
Times number of days in period		90			90
Cost of products for produced products sold	$	143,927		$	126,164
Sum of cost of products for produced products sold from our two refineries(4)	$	597,655		$	577,326
Add refined product costs from purchased products sold and rounding(1)		82,044			85,582
Total refined cost of products sold		679,699			662,908
Add crude oil cost of direct sales of excess crude oil(2)		61,852			—
Add other refining segment costs of products sold(3)		10,269			12,712
Total refining segment cost of products sold		751,820			675,620
Subtract consolidations and eliminations		(106	)		(135	)
Costs of products sold (exclusive of depreciation, depletion and amortization)	$	751,714		$	675,485

(1)	We purchase finished products when opportunities arise that provide a profit on the sale of such products, or to meet delivery commitments.
(2)	We purchase crude oil and enter into buy/sell exchanges in excess of the needs to supply our refineries. Certain direct sales of this excess crude oil are made to purchasers or users of crude oil. Under new accounting guidance, these sales and related purchases starting April 1, 2006 are being measured at fair value and accounted for as revenues with the related acquisition costs included as cost of products sold. Prior to April 1, 2006, sales and cost of sales attributable to such excess crude oil direct sales were netted and presented in cost of products sold.
(3)	Other refining segment costs of products sold includes the costs of products for NK Asphalt Partners and costs attributable to sulfur credit sales.
(4)	The above calculations of costs of products from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.

	Three Months Ended March 31,
	2007		2006
Average cost of products per produced barrel sold	$	58.50	$	62.25
Times sales of produced refined products sold (BPD)		113,510		103,050
Times number of days in period		90		90
Cost of products for produced products sold	$	597,655	$	577,326

Reconciliation of average refinery operating expenses per produced barrel sold to total operating expenses

	Three Months Ended
	March 31,
	2007		2006
Navajo Refinery
Average refinery operating expenses per produced barrel sold	$	4.18	$	4.39
Times sales of produced refined products sold (BPD)		85,390		79,760
Times number of days in period		90		90
Refinery operating expenses for produced products sold	$	32,124	$	31,513
Woods Cross Refinery
Average refinery operating expenses per produced barrel sold	$	4.76	$	5.73
Times sales of produced refined products sold (BPD)		28,120		23,290
Times number of days in period		90		90
Refinery operating expenses for produced products sold	$	12,047	$	12,011

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	Three Months Ended March 31,
	2007		2006
Sum of refinery operating expenses per produced products sold from our two refineries(2)	$	44,171	$	43,524
Add other refining segment operating expenses and rounding(1)		5,947		8,909
Total refining segment operating expenses		50,118		52,433
Add corporate and other costs		11		34
Operating expenses (exclusive of depreciation, depletion and amortization)	$	50,129	$	52,467

(1)	Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses of NK Asphalt Partners.
(2)	The above calculations of refinery operating expenses from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.

	Three Months Ended March 31,
	2007		2006
Average refinery operating expenses per produced barrel sold	$	4.32	$	4.70
Times sales of produced refined products sold (BPD)		113,510		103,050
Times number of days in period		90		90
Refinery operating expenses for produced products sold	$	44,171	$	43,524

Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues

	Three Months Ended March 31,
	2007			2006
Navajo Refinery
Net operating margin per barrel	$	12.36		$	8.30
Add average refinery operating expenses per produced barrel		4.18			4.39
Refinery gross margin per barrel		16.54			12.69
Add average cost of products per produced barrel sold		59.04			62.85
Average net sales per produced barrel sold	$	75.58		$	75.54
Times sales of produced refined products sold (BPD)		85,390			79,760
Times number of days in period		90			90
Refined products sales from produced products sold	$	580,840		$	542,256
Woods Cross Refinery
Net operating margin per barrel	$	9.98		$	3.72
Add average refinery operating expenses per produced barrel		4.76			5.73
Refinery gross margin per barrel		14.74			9.45
Add average cost of products per produced barrel sold		56.87			60.19
Average net sales per produced barrel sold	$	71.16		$	69.64
Times sales of produced refined products sold (BPD)		28,120			23,290
Times number of days in period		90			90
Refined products sales from produced products sold	$	181,231		$	145,972
Sum of refined products sales from produced products sold from our two refineries(4)	$	762,071		$	688,228
Add refined product sales from purchased products and rounding(1)		79,225			84,542
Total refined products sales		841,296			772,770
Add direct sales of excess crude oil(2)		61,680			—
Add other refining segment revenue(3)		22,606			18,578
Total refining segment revenue		925,582			791,348
Add corporate and other revenues		391			381
Subtract consolidations and eliminations		(106	)		(135	)
Sales and other revenues	$	925,867		$	791,594

(1) We purchase finished products when opportunities arise that provide a profit on the sale of such products or to meet delivery commitments.

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(2)	We purchase crude oil and enter into buy/sell exchanges in excess of the needs to supply our refineries. Certain direct sales of this excess crude oil are made to purchasers or users of crude oil. Under new accounting guidance, these sales and related purchases starting April 1, 2006 are being measured at fair value and accounted for as revenues with the related acquisition costs included as cost of products sold. Prior to April 1, 2006, sales and cost of sales attributable to such excess crude oil direct sales were netted and presented in cost of products sold.
(3)	Other refining segment revenue includes the revenues associated with NK Asphalt Partners and revenue derived from sulfur credit sales.
(4)	The above calculations of refined product sales from produced products sold can also be computed on a consolidated basis. These amounts may not calculate exactly due to rounding of reported numbers.

	Three Months Ended March 31,
	2007		2006
Net operating margin per barrel	$	11.77	$	7.26
Add average refinery operating expenses per produced barrel		4.32		4.70
Refinery gross margin per barrel		16.09		11.96
Add average cost of products per produced barrel sold		58.50		62.25
Average sales price per produced barrel sold	$	74.59	$	74.21
Times sales of produced refined products sold (BPD)		113,510		103,050
Times number of days in period		90		90
Refined product sales from produced products sold	$	762,071	$	688,228

FOR FURTHER INFORMATION, Contact:

Stephen J. McDonnell, Vice President and
     Chief Financial Officer
M. Neale Hickerson, Vice President,
     Investor Relations
Holly Corporation
214/871-3555

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