Meanwhile, Holly Corp makes record profits. I'm about ready to recommend price controls for refineries and a hammer on their environmental lies.
HollyFrontier reports $1 billion profit for 2011
By ROD WALTON World Staff Writer
Published: 2/29/2012 2:25 AM
Last Modified: 2/29/2012 2:58 AM
What company officials called "historically strong" refining margins lifted HollyFrontier Corp. to $223.4 million in net income for the fourth quarter, the Dallas-based refinery owner reported Tuesday.
HollyFrontier, which owns and operates the west Tulsa refinery, reported $1 billion, or $6.42 per diluted share, in profit for all of 2011. The net income was nearly 10 times higher than 2010 but reflected increased scale due to the merger of Holly Corp. and Frontier Oil Corp. last summer.
"We are especially pleased with the company's full-year results, as this was the most profitable year in our history," CEO Mike Jennings said in a statement. "Looking forward, the differentials between inland and coastal crudes are fairly robust, which should contribute favorably to our first-quarter results."
Overall refinery gross margins hit $15.32 per produced barrel in the fourth quarter, up 95 percent from the $7.87 gross margin in 2010's fourth quarter. HollyFrontier's production levels averaged 438,000 barrels per day. The Mid-Continent segment, which includes refineries in Tulsa and El Dorado, Kan., produced an average of nearly 195,000 barrels per day in 2011. Gross margin averaged $19.59 per barrel, more than $6 better than the 2010 figures for the same region, while the $14.55 net margin was a 457 percent improvement over the comparable 2010 per-barrel margin.
"Throughout the year our plants ran well with high throughput rates," Jennings said a morning conference call with analysts. HollyFrontier sees near-term challenges with crude transportation bottlenecks but remains "optimistic about refining margins in the Mid-Con, Rockies and Southwest markets that we serve."
The Tulsa refinery is capable of processing and producing up to 125,000 daily barrels in gasoline, diesel, jet fuels, speciality lubricants, asphalt and other products.
Holly Corp., which bought the Sunoco Inc. refinery in summer 2009 and the Sinclair refinery six months later, operates the two facilities as one complex connected by pipelines.
HollyFrontier Corp. earnings
4Q 2011 4Q 2010 Full-year 2011 Full-year 2010 Pct change*
Revenues 4.97B $2.21B $15.44B $8.32B 85.5 %
Net income $223.4M $208.7M $1.02B $104M 884.4 %
Net per share $1.06 $0.13 $6.42 $0.97 561.9 %
Read more from this Tulsa World article at
http://www.tulsaworld.com/business/article.aspx?subjectid=49&articleid=20120229_49_E1_Waopnf908932 to the original article which speaks to how they connect pipelines to call it "one" refinery...there's probably other
connections but the stench gets to me...