DALLAS -- HollyFrontier Corporation, owner of a refinery in Woods Cross, has reported a 2012 fourth quarter net income of $391.6 million, up from $223.4 million for the same period in 2011.
For the fourth quarter, net income attributable to stockholders increased by $168.2 million, or 75 percent compared to the same period of 2011, principally reflecting higher fourth quarter refining margins. Refinery gross margins were $24.00 per produced barrel, a 57 percent increase compared to $15.32 for the fourth quarter of 2011. Production levels averaged approximately 447,000 barrels per day and crude oil charges averaged approximately 408,000 BPD for the current quarter, compared to expected crude throughput of 424,000 BPD.
According to a company release, lower crude oil charges in the quarter resulted from a combination of unplanned downtime and turnaround activity extending longer than planned.
HollyFrontier’s President & CEO, Mike Jennings, commented, “We are extremely pleased with our solid fourth quarter results and the record year for HollyFrontier. For the fourth quarter, strength in inland to coastal crude oil differentials continued to contribute to attractive refined product margins, particularly considering the effects of lower seasonal demand that have historically yielded tighter margins. Looking to 2013, we believe that the structural crude advantages currently driving our operating margins will positively impact our operating income, allowing us to continue to pay both regular and special dividends. We remain committed to increasing total shareholder return while maintaining a strong balance sheet.”
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier operates through its subsidiaries a 135,000 barrels per stream day refinery located in El Dorado, Kansas, two refinery facilities with a combined capacity of 125,000 bpsd located in Tulsa, Oklahoma, a 100,000 bpsd refinery located in Artesia, New Mexico, a 52,000 bpsd refinery located in Cheyenne, Wyoming and the 31,000 bpsd refinery in Woods Cross.
HollyFrontier markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. A subsidiary of HollyFrontier also owns a 44 percent interest in Holly Energy Partners, L.P.