HollyFrontier Corporation (NYSE: HFC) (“HollyFrontier” or the “Company”) today reported second quarter net income attributable to HollyFrontier stockholders of $493.5 million or $2.39 per diluted share for the quarter ended June 30, 2012, compared to $192.2 million or $1.79 per diluted share for the quarter ended June 30, 2011. For the six months ended June 30, 2012, net income attributable to HollyFrontier stockholders totaled $735.2 million or $3.54 per diluted share compared to $276.9 million or $2.58 per diluted share for the six months ended June 30, 2011.
For the second quarter, net income attributable to our stockholders increased by $301.3 million, or 157% compared to the same period of 2011, principally reflecting increased operating scale due to our July 2011 merger, higher second quarter refining margins as well as sustained differentials between inland and coastal-sourced crude oils. Refinery gross margins were $27.43 per produced barrel, a 28% increase compared to $21.42 for the second quarter of 2011. Production levels averaged approximately 435,000 barrels per day (“BPD”) and crude oil charges averaged approximately 412,000 BPD for the current quarter. Operating expenses for the quarter were $222.7 million or $5.00 per barrel compared to $139.3 million or $5.48 per barrel for the second quarter of last year.
HollyFrontier’s President & CEO Mike Jennings commented, “We are extremely pleased with our outstanding second quarter results, reaching near all-time highs. For the quarter, sustained heavy crude oil differentials as well as inland to coastal crude oil differentials helped drive product margins to near record levels. Our crude advantage combined with our increased scale and the efforts of our dedicated employees have put us on track for another milestone year. We believe that the structural crude advantages currently increasing our operating margins will continue to boost our free cash generation as we go forward, allowing us to continue to pay both regular and special dividends and supporting our objective of increasing total shareholder return.”