Reported net income attributable to HollyFrontier stockholders of $280.8 million, or $1.71 per diluted share, and adjusted net income of $209.9 million, or $1.28 per diluted share, for the third quarter

Reported EBITDA of $482.6 million and Adjusted EBITDA of $407.8 million for the third quarter

HollyFrontier Corporation (NYSE:HFC) ("HollyFrontier" or the "Company") today reported third quarter net income attributable to HollyFrontier stockholders of $280.8 million, or $1.71 per diluted share, for the quarter ended September 30, 2021, compared to a net loss of $(2.4) million, or $(0.01) per diluted share, for the quarter ended September 30, 2020.

The third quarter results reflect special items that collectively increased net income by a total of $70.8 million. On a pre-tax basis, these items include a gain on sale of real property of $86.0 million, partially offset by pre-close acquisition integration costs of $4.3 million and charges related to the Cheyenne Refinery conversion to renewable diesel production, including decommissioning charges of $6.7 million and severance charges totaling $0.2 million. Excluding these items, net income for the current quarter was $209.9 million ($1.28 per diluted share) compared to net loss of $(66.9) million ($(0.41) per diluted share) for the third quarter of 2020, which excludes certain items that collectively decreased net loss by $64.5 million.

HollyFrontier's President & CEO, Michael Jennings, commented, "HollyFrontier's standout third quarter results were driven by continued refined product margin strength in our regions, healthy base oil prices and robust operational performance in the quarter. On November 1, 2021, we closed on our previously announced acquisition of the Puget Sound Refinery. We are excited to add this high-quality refinery to our existing asset base along with the geographical diversification and earnings potential it provides."

Refining segment income before interest and income taxes was $217.4 million for the third quarter of 2021 compared to a loss before interest and income taxes of $(118.5) million in the third quarter of 2020. The segment reported EBITDA of $295.3 million for the third quarter of 2021 compared to $(39.3) million for the third quarter of 2020. This increase was driven by stronger product demand, which resulted in a consolidated refinery gross margin of $14.87 per produced barrel, a 140% increase compared to $6.20 for the third quarter of 2020. Crude oil charge averaged 416,430 barrels per day ("BPD") for the current quarter compared to 375,880 BPD for the third quarter of 2020.

Lubricants and Specialty Products segment income before interest and income taxes was $148.5 million for the third quarter of 2021 compared to $43.1 million in the third quarter of 2020. The segment reported EBITDA of $167.7 million for the third quarter of 2021 compared to $60.6 million in the third quarter of 2020. Excluding a gain on sale of real property of $86.0 million, Adjusted EBITDA in the third quarter of 2021 was $81.7 million. This increase was driven by strong base oil margins in the third quarter of 2021.

Holly Energy Partners, L.P. ("HEP") reported EBITDA of $77.6 million for the third quarter of 2021 compared to $55.3 million in the third quarter of 2020. Reported EBITDA for the third quarter of 2020 included a $35.7 million goodwill impairment charge, which was eliminated on the Company's consolidation. HEP reported Adjusted EBITDA of $83.3 million for the third quarter of 2021 compared to $86.4 million for the third quarter of 2020.

For the third quarter of 2021, net cash provided by operations totaled $249.4 million. At September 30, 2021, the Company's cash and cash equivalents totaled $1,481.6 million, an $83.3 million increase over cash and cash equivalents of $1,398.3 million at June 30, 2021. Additionally, the Company's consolidated debt was $3,072.4 million. The Company's debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $1,739.0 million at September 30, 2021.

The company has scheduled a webcast conference call for today, November 3, 2021, at 8:30 AM Eastern Time to discuss third quarter financial results. This webcast may be accessed at https://event.on24.com/wcc/r/3453047/731944E4F0294137EB72C182BC77BB87. An audio archive of this webcast will be available using the above noted link through November 17, 2021.

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, Washington 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% 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 Corporation subsidiaries.

The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are "forward-looking statements" based on management's beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Forward-looking statements use words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "strategy," "intend," "should," "would," "could," "believe," "may," and similar expressions and statements regarding our plans and objectives for future operations. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the Company's ability to successfully close the pending acquisition by the Company and HEP of Sinclair Oil Corporation and Sinclair Transportation Company (collectively, "Sinclair", and such transactions, the "Sinclair Transactions"), or once closed, integrate the operations of Sinclair with its existing operations and fully realize the expected synergies of the Sinclair Transactions or on the expected timeline; the satisfaction or waivers of the conditions precedent to the proposed Sinclair Transactions, including without limitation, the receipt of the Company stockholder approval for the issuance of HF Sinclair common stock at closing and regulatory approvals (including clearance by antitrust authorities necessary to complete the Sinclair Transactions on the terms and timeline desired), risks relating to the value of HF Sinclair common stock and the value of HEP's limited partner common units to be issued at the closing of the Sinclair Transactions from sales in anticipation of closing and from sales by the Sinclair holders following the closing of the Sinclair Transactions; the cost and potential for a delay in closing as a result of litigation challenging the Sinclair Transactions; the Company's ability to successfully integrate the operation of the Puget Sound refinery with our existing operations; the demand for and supply of crude oil and refined products, including uncertainty regarding the effects of the continuing COVID-19 pandemic on future demand; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company's markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand; the effects of current and/or future governmental and environmental regulations and policies, including the effects of current and/or future restrictions on various commercial and economic activities in response to the COVID-19 pandemic; the availability and cost of financing to the Company; the effectiveness of the Company's capital investments and marketing strategies; the Company's efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects, such as the conversion of the Cheyenne Refinery to a renewable diesel facility and the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within capital guidance; the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States; a prolonged economic slowdown due to the COVID-19 pandemic could result in an impairment of goodwill and/or additional long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

RESULTS OF OPERATIONS

Financial Data (all information in this release is unaudited)

	Three Months Ended September 30,						Change from 2020
	2021			2020			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	4,685,059		$	2,819,400		$	1,865,659		66	%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	3,822,858			2,377,238			1,445,620			61
Lower of cost or market inventory valuation adjustment	—			(62,849		)	62,849			(100	)
	3,822,858			2,314,389			1,508,469			65
Operating expenses (exclusive of depreciation and amortization)	352,520			332,496			20,024			6
Selling, general and administrative expenses	91,056			74,453			16,603			22
Depreciation and amortization	121,220			125,280			(4,060		)	(3	)
Total operating costs and expenses	4,387,654			2,846,618			1,541,036			54
Income (loss) from operations	297,405			(27,218		)	324,623			(1,193	)

Other income (expense):
Earnings of equity method investments	3,689			1,316			2,373			180
Interest income	1,018			1,011			7			1
Interest expense	(26,892		)	(30,589		)	3,697			(12	)
Gain on business interruption insurance settlement	—			81,000			(81,000		)	(100	)
Gain (loss) on foreign currency transactions	(3,492		)	1,030			(4,522		)	(439	)
Gain on sale of assets and other	85,779			1,368			84,411			6,170
	60,102			55,136			4,966			9
Income before income taxes	357,507			27,918			329,589			1,181
Income tax expense	54,766			4,573			50,193			1,098
Net income	302,741			23,345			279,396			1,197
Less net income attributable to noncontrolling interest	21,954			25,746			(3,792		)	(15	)
Net income (loss) attributable to HollyFrontier stockholders	$	280,787		$	(2,401	)	$	283,188		(11,795	)%

Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	1.71		$	(0.01	)	$	1.72		(17,200	)%
Diluted	$	1.71		$	(0.01	)	$	1.72		(17,200	)%
Cash dividends declared per common share	$	—		$	0.35		$	(0.35	)	(100	)%
Average number of common shares outstanding:
Basic	162,551			162,015			536			—	%
Diluted	162,551			162,015			536			—	%

EBITDA	$	482,647		$	157,030		$	325,617		207	%
Adjusted EBITDA	$	407,830		$	65,638		$	342,192		521	%

	Nine Months Ended September 30,						Change from 2020
	2021			2020			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	12,766,475		$	8,282,875		$	4,483,600		54	%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	10,608,892			6,647,960			3,960,932			60
Lower of cost or market inventory valuation adjustment	(318,862		)	227,711			(546,573		)	(240	)
	10,290,030			6,875,671			3,414,359			50
Operating expenses (exclusive of depreciation and amortization)	1,086,620			964,200			122,420			13
Selling, general and administrative expenses	250,785			237,559			13,226			6
Depreciation and amortization	369,341			396,033			(26,692		)	(7	)
Long-lived asset impairment	—			436,908			(436,908		)	(100	)
Total operating costs and expenses	11,996,776			8,910,371			3,086,405			35
Income (loss) from operations	769,699			(627,496		)	1,397,195			(223	)

Other income (expense):
Earnings of equity method investments	8,875			5,186			3,689			71
Interest income	3,078			6,590			(3,512		)	(53	)
Interest expense	(94,220		)	(85,923		)	(8,297		)	10
Gain on business interruption insurance settlement	—			81,000			(81,000		)	(100	)
Gain on tariff settlement	51,500			—			51,500			—
Gain on sales-type leases	—			33,834			(33,834		)	(100	)
Loss on early extinguishment of debt	—			(25,915		)	25,915			(100	)
Loss on foreign currency transactions	(4,226		)	(918		)	(3,308		)	360
Gain on sale of assets and other	95,596			4,790			90,806			1,896
	60,603			18,644			41,959			225
Income (loss) before income taxes	830,302			(608,852		)	1,439,154			(236	)
Income tax expense (benefit)	149,944			(188,504		)	338,448			(180	)
Net income (loss)	680,358			(420,348		)	1,100,706			(262	)
Less net income attributable to noncontrolling interest	82,504			63,353			19,151			30
Net income (loss) attributable to HollyFrontier stockholders	$	597,854		$	(483,701	)	$	1,081,555		(224	)%

Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	3.63		$	(2.99	)	$	6.62		(221	)%
Diluted	$	3.63		$	(2.99	)	$	6.62		(221	)%
Cash dividends declared per common share	$	0.35		$	1.05		$	(0.70	)	(67	)%
Average number of common shares outstanding:
Basic	162,518			161,927			591			—	%
Diluted	162,518			161,927			591			—	%

EBITDA	$	1,208,281		$	(196,839	)	$	1,405,120		(714	)%
Adjusted EBITDA	$	789,639		$	434,118		$	355,521		82	%

Balance Sheet Data

	September 30,		December 31,
	2021		2020
	(In thousands)
Cash and cash equivalents	$	1,481,562	$	1,368,318
Working capital	$	2,310,815	$	1,935,605
Total assets	$	12,897,181	$	11,506,864
Long-term debt	$	3,072,352	$	3,142,718
Total equity	$	6,329,539	$	5,722,203

Segment Information

Our operations are organized into three reportable segments, Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.

The Refining segment includes the operations of our El Dorado, Tulsa, Navajo, Woods Cross Refineries and HollyFrontier Asphalt Company LLC ("HFC Asphalt") (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Refining segment also included the operations of the Cheyenne Refinery through the third quarter of 2020, at which time it permanently ceased petroleum refining operations.

The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.'s ("PCLI") production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.

The HEP segment involves all of the operations of HEP, a consolidated variable interest entity, which owns and operates logistics assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. The HEP segment also includes a 75% interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP's periodic public filings.

	Refining			Lubricants and Specialty Products		HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended September 30, 2021
Sales and other revenues:
Revenues from external customers	$	3,993,570		$	666,033	$	25,459	$	(3	)	$	4,685,059
Intersegment revenues	189,441			501		97,125		(287,067		)	—
	$	4,183,011		$	666,534	$	122,584	$	(287,070	)	$	4,685,059
Cost of products sold (exclusive of lower of cost or market inventory)	$	3,605,600		$	482,533	$	—	$	(265,275	)	$	3,822,858
Operating expenses	$	248,316		$	60,940	$	42,793	$	471		$	352,520
Selling, general and administrative expenses	$	32,345		$	41,476	$	3,849	$	13,386		$	91,056
Depreciation and amortization	$	77,890		$	19,226	$	21,627	$	2,477		$	121,220
Income (loss) from operations	$	218,860		$	62,359	$	54,315	$	(38,129	)	$	297,405
Income (loss) before interest and income taxes	$	217,438		$	148,460	$	58,081	$	(40,598	)	$	383,381
Net income attributable to noncontrolling interest	$	—		$	—	$	1,188	$	20,766		$	21,954
Earnings of equity method investments	$	—		$	—	$	3,689	$	—		$	3,689
Capital expenditures	$	40,814		$	7,833	$	19,217	$	147,640		$	215,504

Three Months Ended September 30, 2020
Sales and other revenues:
Revenues from external customers	$	2,339,782		$	452,878	$	26,740	$	—		$	2,819,400
Intersegment revenues	56,331			2,164		100,991		(159,486		)	—
	$	2,396,113		$	455,042	$	127,731	$	(159,486	)	$	2,819,400
Cost of products sold (exclusive of lower of cost or market inventory)	$	2,211,342		$	302,703	$	—	$	(136,807	)	$	2,377,238
Lower of cost or market inventory valuation adjustment	$	(62,849	)	$	—	$	—	$	—		$	(62,849	)
Operating expenses	$	256,079		$	54,488	$	40,003	$	(18,074	)	$	332,496
Selling, general and administrative expenses	$	30,866		$	36,773	$	2,332	$	4,482		$	74,453
Depreciation and amortization	$	79,146		$	17,432	$	24,109	$	4,593		$	125,280
Income (loss) from operations	$	(118,471	)	$	43,646	$	61,287	$	(13,680	)	$	(27,218	)
Income (loss) before interest and income taxes	$	(118,471	)	$	43,120	$	70,067	$	62,780		$	57,496
Net income attributable to noncontrolling interest	$	—		$	—	$	2,293	$	23,453		$	25,746
Earnings of equity method investments	$	—		$	—	$	1,316	$	—		$	1,316
Capital expenditures	$	41,740		$	6,995	$	7,902	$	26,635		$	83,272

	Refining			Lubricants and Specialty Products			HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Nine Months Ended September 30, 2021
Sales and other revenues:
Revenues from external customers	$	10,837,876		$	1,850,786		$	77,809	$	4		$	12,766,475
Intersegment revenues	455,089			9,500			298,193		(762,782		)	—
	$	11,292,965		$	1,860,286		$	376,002	$	(762,778	)	$	12,766,475
Cost of products sold (exclusive of lower of cost or market inventory)	$	9,986,862		$	1,305,274		$	—	$	(683,244	)	$	10,608,892
Lower of cost or market inventory valuation adjustment	$	(318,353	)	$	—		$	—	$	(509	)	$	(318,862	)
Operating expenses	$	772,593		$	183,003		$	126,226	$	4,798		$	1,086,620
Selling, general and administrative expenses	$	90,977		$	124,612		$	9,664	$	25,532		$	250,785
Depreciation and amortization	$	245,910		$	58,499		$	66,908	$	(1,976	)	$	369,341
Income (loss) from operations	$	514,976		$	188,898		$	173,204	$	(107,379	)	$	769,699
Income (loss) before interest and income taxes	$	513,226		$	275,538		$	212,750	$	(80,070	)	$	921,444
Net income attributable to noncontrolling interest	$	—		$	—		$	4,027	$	78,477		$	82,504
Earnings of equity method investments	$	—		$	—		$	8,875	$	—		$	8,875
Capital expenditures	$	114,325		$	17,534		$	76,933	$	339,553		$	548,345

Nine Months Ended September 30, 2020
Sales and other revenues:
Revenues from external customers	$	6,880,444		$	1,330,021		$	72,410	$	—		$	8,282,875
Intersegment revenues	$	178,039		$	8,911		$	297,982	$	(484,932	)	$	—
	$	7,058,483		$	1,338,932		$	370,392	$	(484,932	)	$	8,282,875
Cost of products sold (exclusive of lower of cost or market inventory)	$	6,113,530		$	952,430		$	—	$	(418,000	)	$	6,647,960
Lower of cost or market inventory valuation adjustment	$	227,711		$	—		$	—	$	—		$	227,711
Operating expenses	$	754,612		$	156,459		$	109,721	$	(56,592	)	$	964,200
Selling, general and administrative expenses	$	94,677		$	121,654		$	7,569	$	13,659		$	237,559
Depreciation and amortization	$	251,019		$	59,260		$	72,095	$	13,659		$	396,033
Long-lived asset impairment	$	215,242		$	204,708		$	16,958	$	—		$	436,908
Income (loss) from operations	$	(598,308	)	$	(155,579	)	$	164,049	$	(37,658	)	$	(627,496	)
Income (loss) before interest and income taxes	$	(598,308	)	$	(155,847	)	$	185,593	$	39,043		$	(529,519	)
Net income attributable to noncontrolling interest	$	—		$	—		$	4,158	$	59,195		$	63,353
Earnings of equity method investments	$	—		$	—		$	5,186	$	—		$	5,186
Capital expenditures	$	106,856		$	20,387		$	38,642	$	47,123		$	213,008

	Refining		Lubricants and Specialty Products		HEP		Corporate, Other and Eliminations		Consolidated Total
	(In thousands)
September 30, 2021
Cash and cash equivalents	$	18,056	$	218,970	$	12,816	$	1,231,720	$	1,481,562
Total assets	$	7,266,496	$	2,119,076	$	2,236,091	$	1,275,518	$	12,897,181
Long-term debt	$	—	$	—	$	1,333,309	$	1,739,043	$	3,072,352

December 31, 2020
Cash and cash equivalents	$	3,106	$	163,729	$	21,990	$	1,179,493	$	1,368,318
Total assets	$	6,203,847	$	1,864,313	$	2,198,478	$	1,240,226	$	11,506,864
Long-term debt	$	—	$	—	$	1,405,603	$	1,737,115	$	3,142,718

Refining Segment Operating Data

The following tables set forth information, including non-GAAP (Generally Accepted Accounting Principles) performance measures about our refinery operations. Refinery gross and net operating margins do not include the non-cash effects of long-lived asset impairment charges, lower of cost or market inventory valuation adjustments and depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.

As of September 30, 2021, our refinery operations included the El Dorado, Tulsa, Navajo and Woods Cross Refineries. In the third quarter of 2020, we permanently ceased petroleum refining operations at our Cheyenne Refinery and subsequently began converting certain assets at our Cheyenne Refinery to renewable diesel production. The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region continues to be comprised of the El Dorado and Tulsa Refineries, and the new West region is comprised of the Navajo and Woods Cross Refineries. Refining segment operating data for the three and the nine months ended September 30, 2020 has been retrospectively adjusted to reflect the revised regional groupings.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
*Mid-Continent Region (El Dorado and Tulsa Refineries)*
Crude charge (BPD) ⁽¹⁾		280,220			244,200			258,530			234,550
Refinery throughput (BPD)⁽²⁾		294,970			257,280			272,770			249,430
Sales of produced refined products (BPD) ⁽³⁾		277,310			243,830			258,800			239,800
Refinery utilization ⁽⁴⁾		107.8	%		93.9	%		99.4	%		90.2	%

Average per produced barrel ⁽⁵⁾
Refinery gross margin	$	13.59		$	3.21		$	10.65		$	6.41
Refinery operating expenses ⁽⁶⁾		5.72			5.47			6.68			5.47
Net operating margin	$	7.87		$	(2.26	)	$	3.97		$	0.94

Refinery operating expenses per throughput barrel ⁽⁷⁾	$	5.37		$	5.19		$	6.33		$	5.26

Feedstocks:
Sweet crude oil		66	%		62	%		63	%		58	%
Sour crude oil		13	%		18	%		14	%		19	%
Heavy sour crude oil		16	%		15	%		18	%		17	%
Other feedstocks and blends		5	%		5	%		5	%		6	%
Total		100	%		100	%		100	%		100	%

Sales of produced refined products:
Gasolines		52	%		53	%		51	%		52	%
Diesel fuels		32	%		35	%		33	%		34	%
Jet fuels		5	%		3	%		5	%		4	%
Fuel oil		1	%		1	%		1	%		1	%
Asphalt		4	%		2	%		3	%		3	%
Base oils		4	%		4	%		4	%		4	%
LPG and other		2	%		2	%		3	%		2	%
Total		100	%		100	%		100	%		100	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
*West Region (Navajo and Woods Cross Refineries)*
Crude charge (BPD) ⁽¹⁾		136,210			131,680			135,370			125,710
Refinery throughput (BPD)⁽²⁾		149,760			146,860			148,700			139,710
Sales of produced refined products (BPD) ⁽³⁾		144,710			144,970			148,410			142,740
Refinery utilization ⁽⁴⁾		93.9	%		90.8	%		93.4	%		86.7	%

Average per produced barrel ⁽⁵⁾
Refinery gross margin	$	17.33		$	11.24		$	13.67		$	12.01
Refinery operating expenses ⁽⁶⁾		7.70			6.88			7.43			7.01
Net operating margin	$	9.63		$	4.36		$	6.24		$	5.00

Refinery operating expenses per throughput barrel ⁽⁷⁾	$	7.44		$	6.79		$	7.41		$	7.16

Feedstocks:
Sweet crude oil		22	%		30	%		22	%		30	%
Sour crude oil		58	%		48	%		59	%		49	%
Black wax crude oil		11	%		12	%		10	%		11	%
Other feedstocks and blends		9	%		10	%		9	%		10	%
Total		100	%		100	%		100	%		100	%

Sales of produced refined products:
Gasolines		51	%		57	%		52	%		56	%
Diesel fuels		39	%		34	%		38	%		35	%
Fuel oil		3	%		2	%		3	%		2	%
Asphalt		5	%		6	%		4	%		5	%
LPG and other		2	%		1	%		3	%		2	%
Total		100	%		100	%		100	%		100	%

*Consolidated*
Crude charge (BPD) ⁽¹⁾	416,430			375,880			393,900			360,260
Refinery throughput (BPD)⁽²⁾	444,730			404,140			421,470			389,140
Sales of produced refined products (BPD) ⁽³⁾	422,020			388,800			407,210			382,540
Refinery utilization ⁽⁴⁾	102.8		%	92.8		%	97.3		%	89.0		%

Average per produced barrel ⁽⁵⁾
Refinery gross margin	$	14.87		$	6.20		$	11.75		$	8.50
Refinery operating expenses ⁽⁶⁾	6.40			6.00			6.95			6.04
Net operating margin	$	8.47		$	0.20		$	4.80		$	2.46

Refinery operating expenses per throughput barrel ⁽⁷⁾	$	6.07		$	5.77		$	6.71		$	5.94

Feedstocks:
Sweet crude oil	51		%	51		%	49		%	48		%
Sour crude oil	28		%	28		%	29		%	30		%
Heavy sour crude oil	11		%	10		%	12		%	11		%
Black wax crude oil	4		%	4		%	4		%	4		%
Other feedstocks and blends	6		%	7		%	6		%	7		%
Total	100		%	100		%	100		%	100		%

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
*Consolidated*
Sales of produced refined products:
Gasolines	51	%	54	%	52	%	54	%
Diesel fuels	35	%	35	%	35	%	34	%
Jet fuels	3	%	2	%	3	%	2	%
Fuel oil	2	%	1	%	1	%	1	%
Asphalt	4	%	4	%	4	%	4	%
Base oils	3	%	2	%	2	%	3	%
LPG and other	2	%	2	%	3	%	2	%
Total	100	%	100	%	100	%	100	%

(1)		Crude charge represents the barrels per day of crude oil processed at our refineries.
(2)		Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries.
(3)		Represents barrels sold of refined products produced at our refineries (including HFC Asphalt) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold.
(4)		Represents crude charge divided by total crude capacity ("BPSD"). Our consolidated crude capacity is 405,000 BPSD.
(5)		Represents average amount per produced barrel sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.
(6)		Represents total refining segment operating expenses, exclusive of depreciation and amortization and Cheyenne Refinery operating expenses, divided by sales volumes of refined products produced at our refineries.
(7)		Represents total refining segment operating expenses, exclusive of depreciation and amortization and Cheyenne Refinery operating expenses, divided by refinery throughput.

Lubricants and Specialty Products Segment Operating Data

The following table sets forth information about our lubricants and specialty products operations.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
*Lubricants and Specialty Products*
Throughput (BPD)	18,260		19,020		29,140		19,050
Sales of produced products (BPD)	31,700		33,560		33,640		32,460

Sales of produced products:
Finished products	53	%	50	%	52	%	51	%
Base oils	28	%	27	%	28	%	24	%
Other	19	%	23	%	20	%	25	%
Total	100	%	100	%	100	%	100	%

Supplemental financial data attributable to our Lubricants and Specialty Products segment is presented below:

	Rack Back ⁽¹⁾			Rack Forward ⁽²⁾			Eliminations ⁽³⁾			Total Lubricants and Specialty Products
	(In thousands)
Three months ended September 30, 2021
Sales and other revenues	$	270,207		$	634,654		$	(238,327	)	$	666,534
Cost of products sold	$	148,171		$	572,689		$	(238,327	)	$	482,533
Operating expenses	$	29,046		$	31,894		$	—		$	60,940
Selling, general and administrative expenses	$	7,058		$	34,418		$	—		$	41,476
Depreciation and amortization	$	6,375		$	12,851		$	—		$	19,226
Income (loss) from operations	$	79,557		$	(17,198	)	$	—		$	62,359
Income (loss) before interest and income taxes	$	165,575		$	(17,115	)	$	—		$	148,460
EBITDA	$	171,950		$	(4,264	)	$	—		$	167,686

Three months ended September 30, 2020
Sales and other revenues	$	110,952		$	423,418		$	(79,328	)	$	455,042
Cost of products sold	$	98,033		$	283,998		$	(79,328	)	$	302,703
Operating expenses	$	25,400		$	29,088		$	—		$	54,488
Selling, general and administrative expenses	$	5,616		$	31,157		$	—		$	36,773
Depreciation and amortization	$	5,419		$	12,013		$	—		$	17,432
Income (loss) from operations	$	(23,516	)	$	67,162		$	—		$	43,646
Income (loss) before interest and income taxes	$	(23,516	)	$	66,636		$	—		$	43,120
EBITDA	$	(18,097	)	$	78,649		$	—		$	60,552

Nine months ended September 30, 2021
Sales and other revenues	$	698,134	$	1,747,111	$	(584,959)	$	1,860,286
Cost of products sold	$	443,983	$	1,446,250	$	(584,959)	$	1,305,274
Operating expenses	$	86,773	$	96,230	$	—	$	183,003
Selling, general and administrative expenses	$	19,711	$	104,901	$	—	$	124,612
Depreciation and amortization	$	19,910	$	38,589	$	—	$	58,499
Income from operations	$	127,757	$	61,141	$	—	$	188,898
Income before interest and income taxes	$	213,775	$	61,763	$	—	$	275,538
EBITDA	$	233,685	$	100,352	$	—	$	334,037

Nine months ended September 30, 2020
Sales and other revenues	$	361,638	$	1,241,402	$	(264,108)	$	1,338,932
Cost of products sold	$	345,843	$	870,695	$	(264,108)	$	952,43

HollyFrontier Corporation Reports Quarterly Results