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For our call this morning Mike, Dave and Doug will have prepared remarks and details around our operating and financial performance for the second quarter and year-to-date. After these remarks we will be ready to take your questions.Before we move to our prepared remarks, please note the Safe Harbor disclosure statement that’s in our press release today. Statements today and in our press release were made under the Private Securities Litigation Reform Act of 1995. In summary, the Safe Harbor statement says that statements made regarding managements expectation, judgments or predictions are forward-looking statements and these statements are intended to be covered by the Safe Harbor provisions of federal securities laws. There are many factors that could cause actual results and outcomes including those we have described in our 10-K and other filings with the SEC to materially differ from what we say and believe at this point in time. Today’s statements are not guarantees of future outcomes. This call may also include discussion of non-GAAP financial measures that we use in analyzing our financial results, please refer to today’s press release for required reconciliations to GAAP financial measures and other related disclosures including information on where you may find these reconciliations and disclosures. And lastly, please note that information on today’s call speaks only as of today August 5th, 2011. And any time sensitive information provided may no longer be accurate at the time of any webcast replay, or rereading of the transcript of our call. And now I’d like to turn things over to Mike Jennings. Mike Jennings Thank you, Neale. Good morning and welcome to the debut earnings call of HollyFrontier Corporation. We have been busy for the past few months putting these two companies together and are extremely pleased with progress to-date. Before getting into the results for the quarter, I want to explain that SEC reporting rules provides the results we issued today are actually those of the legacy Holly Corporation which was the accounting acquirer in our merger. We will provide legacy Frontier Oil Corporation second quarter results for clarity in a separate 8-K filing and we will also provide summarize pro forma financials for the two companies in our HFC 10-Q filing for the quarter. The earnings report today are those generated by Holly Corporation during the second quarter of 2011.
Your second quarter net income attributable to HollyFrontier Corporation shareholder was $192 million or $3.58 per share, which compares very favorably to the 66 million or $1.24 per share posted in the second quarter of 2010. The six month numbers are 277 million in net income attributable to HollyFrontier shareholder were $5.16 per share. These second quarter results represent the best quarterly results ever for the legacy Holly Corporation. And to the former Holly employees I say well done.On the legacy Frontier side, earnings were similarly strong despite a large turnaround at the Cheyenne refinery. Frontier generated net income for the quarter of $167 million which would have amounted to approximately $1.57 per legacy Frontier oil share. For the six months Frontier oil generated net income of $307 million or $2.90 or legacy Frontier share. Again I took my hat to the former Frontier employees who made this possible. More relevant to our future is the combined effect of these two companies. For the second quarter based on simple addition, the combined Holly and Frontier operations generated EBITDA of $647 million and net income of 359 million. For the six months EBITDA again based on some of the parts would have been 1.08 billion and net income 584 million. Note that we will include summarized pro forma financials in the HollyFrontier 10-Q which will also reflect certain adjusting entries related to acquisition accounting. The company’s combined cash balance stood at almost $1.4 billion on June 30th the day just prior to our closing. Combined long-term debt on that day was 1.19 billion including the Holly Energy Partner’s indebtedness and was 676 million excluding the HEP indebtedness which is non-recourse to HFC. Read the rest of this transcript for free on seekingalpha.com