Published: April 8, 2020 |

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HollyFrontier Corporation released a business update in response to COVID-19. Due to the economic uncertainty in today’s environment, HFC relased an update on its operations, balance sheet, and revised 2020 capital budget.

“The health and safety of our employees, communities, and contractors remains our top priority as we navigate this challenging environment,” said Mike Jennings, president and chief executive officer.

“HollyFrontier is implementing precautionary measures to protect our workforce so that we may continue to safely operate our facilities. We maintain a strong balance sheet and liquidity position precisely as a buffer against economic downturns such as we are experiencing today. While the COVID-19 pandemic is unprecedented, we believe our disciplined approach to capital allocation and leverage will help us to withstand current market conditions,” added Jennings.

OPERATIONAL UPDATE

HollyFrontier is committed to producing the essential products necessary for their communities as long as it is safe to do so and has taken the following steps:

• HollyFrontier is limiting onsite staff at all of our facilities to essential operational personnel only. As a result, the company is carefully evaluating projects at the refinery and limiting or postponing non-essential projects and contractor work.

• Based on market conditions, the refining segment is currently running at approximately 70 percent of capacity.

•  In lubricants and specialty products, the company is withdrawing 2020 guidance for rack forward due to lack of visibility around global end market demand.

CAPITAL EXPENDITURES UPDATE

HollyFrontier is making the following initial revisions to its 2020 consolidated annual capex guidance:

• The company is reducing total consolidated capital expenditures by approximately 15 percent to a range of $525 – 625 million from its previous guidance of $623 – 729 million.

• HollyFrontier remains committed to the strategic goal of producing renewable fuels and will continue with construction of the renewable diesel unit at its Artesia refinery.

• HollyFrontier will continue to evaluate market conditions and make further changes as circumstances dictate.

“We understand the critical role HollyFrontier plays in supporting our local workforce, communities and customers, and our principal goal is to maintain safe and reliable operations during this time. We also recognize the importance of being flexible and will continue to monitor COVID-19 developments and the dynamic market environment to properly address our business plan going forward,” said Jennings

About HollyFrontier Corporation
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 owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57 percent limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier.

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