Holly Frontier Corporation, operator of refineries in Tulsa and Kansas and other states has moved to cut its 2020 capital expenditures by nearly 15%. The Dallas-based company said its capex will be reduced from the original budget of an estimated $729 million down to about $525 million.
The revised capital budget was announced Wednesday as the company reacted to what it labeled “economic uncertainty in today’s environment.”
Mike Jennings, President and Chief Executive Officer said the company’s refining segment is running at approximately 70% of capacity. He explained the company was limiting onsite staff 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,” said Jennings.
He added that HollyFrontier has a strong balance sheet and liquidity position as a “buffer against economic downturns such as we are experiencing today……we believe our disciplined approach to capital allocation and leverage will help us to withstand current market conditions.”
The company’s standalone liquidity stood at more than $2.2 billion with a $900 million cash balance and an undrawn $1.35 billion credit facility maturing in 2022. The company’s earlier standalone debt maturity is $1 billion in Senior notes due 2026.
Source: Business Wire