Net income skyrocketed in the second quarter of 2018 for Texas-based HollyFrontier, the operator of an oil refinery in Tulsa and others across the country.
The firm reported net income attributable to stockholders was $345.5 million or $1.94 per diluted share. It compared to the $57.8 million in income or 33-cents a share for the quarter ended June 30, 2017.
Special items increased net income in the quarter by $86.6 million. Those items included a lower of cost of market inventory valuation adjustment that increased pre-tax earnings by $106.9 million and a $25.3 million reduction to RINS cost as a result of the Woods Cross refinery’s small refinery exemption for the 2017 calendar year.
Otherwise, the firm’s net income for the quarter was $258.9 million compared to $116 million a year earlier.
HollyFrontier’s President & CEO, George Damiris, commented, “HollyFrontier’s second quarter reflects our ability to take advantage of both location and quality discounts in the crude oil markets. Within our lubricants business, healthy finished product demand and our integrated business model are generating consistent earnings despite a weak base oil market.”
He expects HollyFrontier to finish the year in a strong position. And for good reason as the Refining and Marketing segment reported adjusted EBITDA of $384.8 million compared to $192.8 million a year ago.
Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $81.9 million for the second quarter compared to $75.1 million in the second quarter of 2017. This growth was driven by the acquisition of the SLC and Frontier Pipelines as well as volume growth in HEP’s Permian crude gathering system.
For the second quarter of 2018, net cash provided by operations totaled $394.4 million resulting in a 33-cent share to shareholders.
HollyFrontier corporation is headquartered in Dallas and operates through its subsidiaries a 125,000 barrels per stream day in Tulsa, a 135,000 BPSD in El Dorado, Kansas and refineries in Artesia, New Mexico, Cheyenne, Wyoming and Woods Cross, Utah.