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HFC HollyFrontier

Cover Page

Cover Page - shares3 Months Ended
Mar. 31, 2021Apr. 30, 2021
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateMar. 31,
2021
Document Transition Reportfalse
Entity File Number1-3876
Entity Registrant NameHOLLYFRONTIER CORP
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number75-1056913
Entity Address, Address Line One2828 N. Harwood, Suite 1300
Entity Address, State or ProvinceTX
Entity Address, City or TownDallas
Entity Address, Postal Zip Code75201
City Area Code214
Local Phone Number871-3555
Title of 12(b) SecurityCommon Stock $0.01 par value
Trading SymbolHFC
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding (in shares)162,442,987
Entity Central Index Key0000048039
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Amendment Flagfalse

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents (HEP:$19,753 and $21,990, respectively) $ 1,193,428 $ 1,368,318
Accounts receivable: Product and transportation (HEP: $17,451 and $14,543, respectively)687,154 590,526
Crude oil resales91,613 39,510
Accounts receivable, total778,767 630,036
Inventories: Crude oil and refined products1,436,602 989,296
Materials, supplies and other (HEP: $976 and $895, respectively)180,246 184,180
Total inventory1,616,848 1,173,476
Income taxes receivable65,274 91,348
Prepayments and other (HEP: $4,718 and $8,591, respectively)45,959 47,583
Total current assets3,700,276 3,310,761
Properties, plants and equipment, at cost (HEP: $2,141,710 and $2,119,295, respectively)7,441,262 7,299,517
Less accumulated depreciation (HEP: $(660,692) and $(644,149), respectively)(2,799,243)(2,726,378)
Properties, plants and equipment, net4,642,019 4,573,139
Operating lease right-of-use assets (HEP: $71,766 and $72,480, respectively)340,514 350,548
Other assets: Turnaround costs308,726 314,816
Goodwill (HEP: $312,873 and $312,873, respectively)2,293,422 2,293,935
Intangibles and other (HEP: $218,893 and $224,430, respectively)649,860 663,665
Other assets, total3,252,008 3,272,416
Total assets11,934,817 11,506,864
Current liabilities:
Accounts payable (HEP: $30,320 and $28,565, respectively)1,266,690 1,000,959
Income taxes payable12,424 1,801
Operating lease liabilities (HEP: $3,867 and $3,827, respectively)95,898 97,937
Accrued liabilities (HEP: $13,660 and $29,518, respectively)382,296 274,459
Total current liabilities1,757,308 1,375,156
Long-term debt (HEP: $1,388,335 and $1,405,603, respectively)3,126,091 3,142,718
Noncurrent operating lease liabilities (HEP: $68,273 and $68,454, respectively)275,382 285,785
Deferred income taxes (HEP: $451 and $449, respectively)671,241 713,703
Other long-term liabilities (HEP: $48,504 and $55,105, respectively)266,749 267,299
HollyFrontier stockholders’ equity:
Preferred stock, $1.00 par value – 5,000,000 shares authorized; none issued0 0
Common stock $.01 par value – 320,000,000 shares authorized; 256,046,051 shares issued as of March 31, 2021 and December 31, 20202,560 2,560
Additional capital4,216,816 4,207,672
Retained earnings4,003,733 3,913,179
Accumulated other comprehensive income4,658 13,462
Common stock held in treasury, at cost – 93,603,064 and 93,632,391 shares as of March 31, 2021 and December 31, 2020, respectively(2,968,580)(2,968,512)
Total HollyFrontier stockholders’ equity5,259,187 5,168,361
Noncontrolling interest578,859 553,842
Total equity5,838,046 5,722,203
Total liabilities and equity $ 11,934,817 $ 11,506,864

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Cash and cash equivalents $ 1,193,428 $ 1,368,318
Accounts receivable: product and transportation687,154 590,526
Inventories: materials, supplies and other180,246 184,180
Prepayments and other45,959 47,583
Properties, plants and equipment, at cost7,441,262 7,299,517
Accumulated depreciation(2,799,243)(2,726,378)
Operating lease right-of-use asset340,514 350,548
Turnaround costs308,726 314,816
Goodwill2,293,422 2,293,935
Intangibles and other649,860 663,665
Accounts payable1,266,690 1,000,959
Operating lease liabilities95,898 97,937
Accrued liabilities382,296 274,459
Long-term debt3,126,091 3,142,718
Noncurrent operating lease liabilities275,382 285,785
Deferred income taxes671,241 713,703
Other long-term liabilities $ 266,749 $ 267,299
Preferred stock par value (in USD per share) $ 1 $ 1
Preferred stock, shares authorized (in shares)5,000,000 5,000,000
Preferred stock, shares issued (in shares)0 0
Common stock par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares)320,000,000 320,000,000
Common stock, shares issued (in shares)256,046,051 256,046,051
Common stock held in treasury (in shares)93,603,064 93,632,391
HEP
Cash and cash equivalents $ 19,753 $ 21,990
Accounts receivable: product and transportation17,451 14,543
Inventories: materials, supplies and other976 895
Prepayments and other4,718 8,591
Properties, plants and equipment, at cost2,141,710 2,119,295
Accumulated depreciation(660,692)(644,149)
Operating lease right-of-use asset71,766 72,480
Goodwill312,873 312,873
Intangibles and other218,893 224,430
Accounts payable30,320 28,565
Operating lease liabilities3,867 3,827
Accrued liabilities13,660 29,518
Long-term debt1,388,335 1,405,603
Noncurrent operating lease liabilities68,273 68,454
Deferred income taxes451 449
Other long-term liabilities $ 48,504 $ 55,105

Consolidated Statements Of Oper

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Sales and other revenues $ 3,504,293 $ 3,400,545
Operating costs and expenses:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)2,960,305 2,693,726
Lower of cost or market inventory valuation adjustment(200,037)560,464
Total costs of products sold (exclusive of depreciation and amortization)2,760,268 3,254,190
Operating expenses (exclusive of depreciation and amortization)399,909 328,345
Selling, general and administrative expenses (exclusive of depreciation and amortization)81,975 87,737
Depreciation and amortization124,079 140,575
Total operating costs and expenses3,366,231 3,810,847
Income (loss) from operations138,062 (410,302)
Other income (expense):
Earnings of equity method investments1,763 1,714
Interest income1,031 4,073
Interest expense(38,386)(22,639)
Gain on tariff settlement51,500 0
Loss on early extinguishment of debt0 (25,915)
Loss on foreign currency transactions(1,317)(4,233)
Other, net1,890 1,850
Other income (expense) total16,481 (45,150)
Income (loss) before income taxes154,543 (455,452)
Income tax expense (benefit):
Current11,165 (11,440)
Deferred(39,472)(150,726)
Income tax expense (benefit) total(28,307)(162,166)
Net income (loss)182,850 (293,286)
Less net income attributable to noncontrolling interest34,633 11,337
Net income (loss) attributable to HollyFrontier stockholders $ 148,217 $ (304,623)
Earnings (loss) per share:
Basic (in USD per share) $ 0.90 $ (1.88)
Diluted (in USD per share) $ 0.90 $ (1.88)
Average number of common shares outstanding:
Basic (in shares)162,479 161,873
Diluted (in shares)162,479 161,873

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Net income (loss) $ 182,850 $ (293,286)
Other comprehensive income (loss):
Foreign currency translation adjustment(5,863)(21,586)
Change in fair value of cash flow hedging instruments(18,517)(6,748)
Reclassification adjustments to net income (loss) on settlement of cash flow hedging instruments13,875 (6,576)
Net unrealized loss on hedging instruments(4,642)(13,324)
Net change in pension and other post-retirement benefit obligations(930)(42)
Other comprehensive loss before income taxes(11,435)(34,952)
Income tax benefit(2,631)(8,029)
Other comprehensive loss(8,804)(26,923)
Total comprehensive income (loss)174,046 (320,209)
Less noncontrolling interest in comprehensive income34,633 11,337
Comprehensive income (loss) attributable to HollyFrontier stockholders139,413 (331,546)
Actuarial loss on pension plans
Other comprehensive income (loss):
Actuarial gain (loss) on plan0 (45)
Plan gain reclassified to net income(101)0
Actuarial gain on post-retirement healthcare plans
Other comprehensive income (loss):
Actuarial gain (loss) on plan0 3
Plan gain reclassified to net income(838)0
Retirement restoration plan
Other comprehensive income (loss):
Retirement restoration plan loss reclassified to net income $ 9 $ 0

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities:
Net income (loss) $ 182,850 $ (293,286)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization124,079 140,575
Lower of cost or market inventory valuation adjustment(200,037)560,464
Earnings of equity method investments, inclusive of distributions(617)(1,164)
Loss on early extinguishment of debt0 25,915
Gain on sale of assets(425)(312)
Deferred income taxes(39,472)(150,726)
Equity-based compensation expense9,770 6,330
Change in fair value – derivative instruments3,783 (41,641)
(Increase) decrease in current assets:
Accounts receivable(145,891)301,535
Inventories(241,238)(50,468)
Income taxes receivable25,844 (816)
Prepayments and other3,830 6,741
Increase (decrease) in current liabilities:
Accounts payable266,163 (328,222)
Income taxes payable10,335 (11,056)
Accrued liabilities95,041 16,892
Turnaround expenditures(24,817)(38,653)
Other, net(6,872)47,990
Net cash provided by operating activities62,326 190,098
Cash flows from investing activities:
Additions to properties, plants and equipment(116,743)(64,807)
Distributions in excess of equity earnings2,897 0
Net cash used for investing activities(147,064)(86,094)
Cash flows from financing activities:
Borrowings under credit agreements73,000 112,000
Repayments under credit agreements(90,500)(67,000)
Purchase of treasury stock(12)(1,062)
Dividends(57,663)(57,248)
Distributions to noncontrolling interests(19,977)(33,918)
Contributions from noncontrolling interests6,332 7,304
Payments on finance leases(673)(410)
Deferred financing costs0 (8,478)
Other, net(68)(145)
Net cash used for financing activities(89,561)(71,457)
Effect of exchange rate on cash flow(591)(8,583)
Cash and cash equivalents:
Increase (decrease) for the period(174,890)23,964
Beginning of period1,368,318 885,162
End of period1,193,428 909,126
Cash (paid) received during the period for:
Interest(18,532)(26,707)
Income taxes, net24,649 (1,201)
Decrease in accrued and unpaid capital expenditures(2,816)(9,914)
HEP
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on early extinguishment of debt25,900
Cash flows from investing activities:
Additions to properties, plants and equipment(33,218)(18,942)
Investment in equity company - HEP0 (2,345)
Cash flows from financing activities:
Proceeds from issuance of senior notes - HEP0 500,000
Redemption of senior notes - HEP $ 0 $ (522,500)

Consolidated Statements Of Equi

Consolidated Statements Of Equity - USD ($) $ in ThousandsTotalCommon StockAdditional CapitalRetained EarningsAccumulated Other Comprehensive IncomeTreasury StockNon-controlling Interest
Stockholders' equity at beginning of period at Dec. 31, 2019 $ 6,509,426 $ 2,560 $ 4,204,547 $ 4,744,120 $ 14,774 $ (2,987,808) $ 531,233
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)(293,286)(304,623)11,337
Dividends ($0.35 declared per common share)(57,248)(57,248)
Distributions to noncontrolling interest holders(33,918)(33,918)
Other comprehensive loss, net of tax(26,923)(26,923)
Issuance of common stock under incentive compensation plans(2,037)2,037
Equity-based compensation6,330 5,824 506
Purchase of treasury stock(1,062)(1,062)
Purchase of HEP units for restricted grants(145)(145)
Contributions from noncontrolling interests7,304 7,304
Stockholders' equity at end of period at Mar. 31, 20206,110,478 2,560 4,208,334 4,382,249 (12,149)(2,986,833)516,317
Stockholders' equity at beginning of period at Dec. 31, 20205,722,203 2,560 4,207,672 3,913,179 13,462 (2,968,512)553,842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)182,850 148,217 34,633
Dividends ($0.35 declared per common share)(57,663)(57,663)
Distributions to noncontrolling interest holders(19,977)(19,977)
Other comprehensive loss, net of tax(8,804)(8,804)
Issuance of common stock under incentive compensation plans56 (56)
Equity-based compensation9,770 9,088 682
Purchase of treasury stock(12)(12)
Purchase of HEP units for restricted grants(68)(68)
Contributions from noncontrolling interests9,747 9,747
Stockholders' equity at end of period at Mar. 31, 2021 $ 5,838,046 $ 2,560 $ 4,216,816 $ 4,003,733 $ 4,658 $ (2,968,580) $ 578,859

Consolidated Statements Of Eq_2

Consolidated Statements Of Equity (Parenthetical) - $ / shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in USD per share) $ 0.35 $ 0.35

Description of Business and Pre

Description of Business and Presentation of Financial Statements3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description Of Business And Presentation Of Financial StatementsDescription of Business and Presentation of Financial Statements References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In these financial statements, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person, with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. These financial statements contain certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries. We are an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products and specialty and modified asphalt. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. In addition, we produce base oils and other specialized lubricants in the United States, Canada and the Netherlands, with retail and wholesale marketing of our products through a global sales network with locations in Canada, the United States, Europe, China and Latin America. As of March 31, 2021, we: • owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”); • owned a facility in Cheyenne, Wyoming, which operated as a petroleum refinery until early August 2020, at which time its assets began to be converted to renewable diesel production (the “Cheyenne Refinery”); • owned and operated Petro-Canada Lubricants Inc. (“PCLI”) located in Mississauga, Ontario, which produces base oils and other specialized lubricant products; • owned and operated manufacturing facilities in Petrolia, Pennsylvania and the Netherlands, which produce specialty lubricant products for our Sonneborn business, such as white oils, petrolatums and waxes; • owned and operated Red Giant Oil Company LLC (“Red Giant Oil”), which supplies locomotive engine oil and has storage and distribution facilities in Iowa and Wyoming, along with a blending and packaging facility in Texas; • owned and operated HollyFrontier Asphalt Company LLC (“HFC Asphalt”), which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 57% limited partner interest and a non-economic general partner interest in HEP, a variable interest entity (“VIE”). HEP owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. On May 4, 2021, HollyFrontier Puget Sound Refining LLC (the “Purchaser”), a wholly-owned subsidiary of HollyFrontier Corporation, entered into a sale and purchase agreement with Equilon Enterprises LLC d/b/a Shell Oil Products US (the “Seller”) to acquire Seller’s refinery and related assets, including the on-site cogeneration facility and related logistics assets (the “Puget Sound Refinery”), for a base cash purchase price of $350 million plus hydrocarbon inventory to be valued at closing with an estimated current value in the range of $150 million to $180 million (the “Acquisition”). The Puget Sound Refinery is strategically located on approximately 850 acres in Anacortes, Washington, approximately 80 miles north of Seattle and 90 miles south of Vancouver. The 149,000 barrel per day facility is a large, high quality and complex refinery with catalytic cracking and delayed coking units and is well positioned geographically and logistically to source advantaged Canadian and Alaskan North Slope crudes. In addition to refining assets and an on-site cogeneration facility, the transaction includes a deep-water marine dock, a light product loading rack, a rail terminal, and storage tanks with approximately 5.8 million barrels of crude, product and other hydrocarbon storage capacity. The Acquisition is expected to close in the fourth quarter of 2021, subject to regulatory clearance and other customary closing conditions. We expect to fund the Acquisition with a one-year suspension of our regular quarterly dividend and cash on hand. 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. In connection with the cessation of petroleum refining operations at our Cheyenne Refinery, we recognized $8.3 million in decommissioning expense and $0.5 million in employee severance costs for the three months ended March 31, 2021, which were recognized in operating expenses in our Corporate and Other segment. During the first quarter of 2021, we initiated a restructuring within our Lubricants and Specialty Products segment. As a result of this restructuring, we recorded $7.8 million in employee severance costs for the three months ended March 31, 2021, which were recognized primarily as selling, general and administrative expenses in our Lubricants and Specialty Products segment. We have prepared these consolidated financial statements without audit. In management’s opinion, these consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our consolidated financial position as of March 31, 2021, the consolidated results of operations, comprehensive income, statements of equity and cash flows for the three months ended March 31, 2021 and 2020 in accordance with the rules and regulations of the SEC. Although certain notes and other information required by generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 that has been filed with the SEC. Our results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations to be realized for the year ending December 31, 2021. Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer’s financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for expected credit losses based on our historical loss experience as well as expected credit losses from current economic conditions and management’s expectations of future economic conditions. Credit losses are charged to the allowance for expected credit losses when an account is deemed uncollectible. Our allowance for expected credit losses was $3.9 million at March 31, 2021 and $3.4 million at December 31, 2020. Inventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation. Inventories of our Petro-Canada Lubricants and Sonneborn businesses are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value. Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value. Leases: At inception, we determine if an arrangement is or contains a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our payment obligation under the leasing arrangement. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties, plants and equipment and accrued liabilities and other long-term liabilities on our consolidated balance sheet. Our lease term includes an option to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet. For certain equipment leases, we apply a portfolio approach for the operating lease ROU assets and liabilities. Also, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations. In addition, HEP, as a lessor, does not separate the non-lease (service) component in contracts in which the lease component is the dominant component. HEP treats these combined components as a lease. Goodwill and Long-lived Assets: As of March 31, 2021, our goodwill balance was $2.3 billion, with goodwill assigned to our Refining, Lubricants and Specialty Products and HEP segments of $1,733.5 million, $247.1 million and $312.9 million, respectively. See Note 14 for additional information on our segments. The carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our Lubricants and Specialty Products segment. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the carrying amount of the reporting unit is greater than its fair value, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the related fair value. For purposes of long-lived asset impairment evaluation, we have grouped our long-lived assets as follows: (i) our refinery asset groups, which include certain HEP logistics assets, (ii) our Lubricants and Specialty Products asset groups and (iii) our HEP asset groups, which comprises HEP assets not included in our refinery asset groups. These asset groups represent the lowest level for which independent cash flows can be identified. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. Revenue Recognition: Revenue on refined product and excess crude oil sales are recognized when delivered (via pipeline, in-tank or rack) and the customer obtains control of such inventory, which is typically when title passes and the customer is billed. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported as cost of products sold. Our lubricants and specialty products business has sales agreements with marketers and distributors that provide certain rights of return or provisions for the repurchase of products previously sold to them. Under these agreements, revenues and cost of revenues are deferred until the products have been sold to end customers. Our lubricants and specialty products business also has agreements that create an obligation to deliver products at a future date for which consideration has already been received and recorded as deferred revenue. This revenue is recognized when the products are delivered to the customer. HEP recognizes revenues as products are shipped through its pipelines and terminals and as other services are rendered. Additionally, HEP has certain throughput agreements that specify minimum volume requirements, whereby HEP bills a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, HEP recognizes these deficiency payments as revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. HEP recognizes the service portion of these deficiency payments as revenue when HEP does not expect it will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 30 days of the date of invoice. Foreign Currency Translation: Assets and liabilities recorded in foreign currencies are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income. In connection with our PCLI acquisition, we issued intercompany notes to initially fund certain of our foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing amounts to functional currencies are recorded as gains and losses as a component of other income (expense) in the consolidated statements of operations. Such adjustments are not recorded to the Lubricants and Specialty Products segment operations, but to Corporate and Other. See Note 14 for additional information on our segments. Income Taxes : Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. For the three months ended March 31, 2021 and 2020, we recorded income tax benefits of $28.3 million and $162.2 million, respectively. Thi s decrease in income tax benefit was due principally to pre-t ax income during the three months ended March 31, 2021 compared to pre-tax loss in the same period of 2020. Our effective tax rates were (18.3)% and 35.6% for the three months ended March 31, 2021 and 2020, respectively. The year-over-year decrease in the e ffective tax rate is due principally to the relationship between the pre-tax results and the earnings attributable to the noncontrolling interest that is not included in income for tax purposes. Inventory Repurchase Obligations: We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as an inventory repurchase obligation that is subsequently reversed when the inventory is repurchased. For the three months ended March 31, 2021 and 2020, we received proceeds of $11.0 million and $14.4 million, respectively, and subsequently repaid $12.0 million and $11.8 million, respectively, under these sell / buy transactions.

Holly Energy Partners

Holly Energy Partners3 Months Ended
Mar. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Holly Energy PartnersHolly Energy Partners HEP is a publicly held master limited partnership that owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations, as well as other third-party refineries, in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. Additionally, as of March 31, 2021, HEP owned a 75% interest in UNEV Pipeline, LLC (“UNEV”), the owner of a pipeline running from Woods Cross, Utah to Las Vegas, Nevada (the “UNEV Pipeline”) and associated product terminals, and a 50% ownership interest in each of Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”); Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne Pipeline”) and Cushing Connect Pipeline & Terminal LLC (“Cushing Connect”), the owner of a crude oil storage terminal in Cushing, Oklahoma and a pipeline under construction that will run from Cushing, Oklahoma to our Tulsa Refineries. At March 31, 2021, we owned a 57% limited partner interest and a non-economic general partner interest in HEP. As the general partner of HEP, we have the sole ability to direct the activities that most significantly impact HEP’s financial performance, and therefore as HEP's primary beneficiary, we consolidate HEP. HEP has two primary customers (including us) and generates revenues by charging tariffs for transporting petroleum products and crude oil through its pipelines, by charging fees for terminalling refined products and other hydrocarbons, and by storing and providing other services at its storage tanks and terminals. Under our long-term transportation agreements with HEP (discussed further below), we accounted for 80% of HEP’s total revenues for the three months ended March 31, 2021. We do not provide financial or equity support through any liquidity arrangements and / or debt guarantees to HEP. HEP has outstanding debt under a senior secured revolving credit agreement and its senior notes. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. See Note 9 for a description of HEP’s debt obligations. HEP has risk associated with its operations. If a major customer of HEP were to terminate its contracts or fail to meet desired shipping or throughput levels for an extended period of time, revenue would be reduced and HEP could suffer substantial losses to the extent that a new customer is not found. In the event that HEP incurs a loss, our operating results will reflect HEP’s loss, net of intercompany eliminations, to the extent of our ownership interest in HEP at that point in time. Cushing Connect Joint Venture In October 2019, HEP Cushing LLC (“HEP Cushing”), a wholly-owned subsidiary of HEP, and Plains Marketing, L.P. (“PMLP”), a wholly-owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect, for (i) the development, construction, ownership and operation of a new 160,000 barrel per day common carrier crude oil pipeline (the “Cushing Connect Pipeline”) that will connect the Cushing, Oklahoma crude oil hub to our Tulsa Refineries and (ii) the ownership and operation of 1.5 million barrels of crude oil storage in Cushing, Oklahoma (the “Cushing Connect Terminal”). The Cushing Connect Terminal was fully in service beginning in April 2020, and the Cushing Connect Pipeline is expected to be placed in service during the third quarter of 2021. Long-term commercial agreements have been entered into to support the Cushing Connect assets. Cushing Connect will contract with an affiliate of HEP to manage the construction and operation of the Cushing Connect Pipeline and with an affiliate of Plains to manage the operation of the Cushing Connect Terminal. The total investment in Cushing Connect will be shared proportionately among the partners, and HEP estimates its share of the cost of the Cushing Connect Terminal contributed by Plains and Cushing Connect Pipeline construction costs are approximately $65 million to $70 million. However, any Cushing Connect Pipeline construction costs exceeding 10% of the budget are borne solely by HEP. Cushing Connect and its two subsidiaries, Cushing Connect Pipeline and Cushing Connect Terminal, are each VIE’s because they do not have sufficient equity at risk to finance their activities without additional financial support. HEP is the primary beneficiary of two of these entities as HEP is constructing and will operate the Cushing Connect Pipeline, and HEP has more ability to direct the activities that most significantly impact the financial performance of Cushing Connect and Cushing Connect Pipeline. Therefore, HEP consolidates these two entities. HEP is not the primary beneficiary of Cushing Connect Terminal, which HEP accounts for using the equity method of accounting. Transportation Agreements HEP serves our refineries under long-term pipeline, terminal and tankage throughput agreements and refinery processing tolling agreements expiring fro m 2021 through 2036. U nder these agreements, we pay HEP fees to transport, store and process throughput volumes of refined products, crude oil and feedstocks on HEP’s pipeline, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to HEP including UNEV (a consolidated subsidiary of HEP). Under these agreements, the agreed upon tariff rates are subject to annual tariff rate adjustments on July 1 at a rate based upon the percentage change in Producer Price Index or Federal Energy Regulatory Commission index. As of March 31, 2021, these agreements require minimum annualized payments to HE P of $338.3 million. Our transactions with HEP and fees paid under our transportation agreements with HEP and UNEV are eliminated and have no impact on our consolidated financial statements. Lessor Accounting Our consolidated statements of operations reflect lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Lease income recognized was as follows: Three Months Ended 2021 2020 (In thousands) Operating lease revenues $ 4,447 $ 8,290 Sales-type lease interest income $ 639 $ — Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 337 $ — HEP Common Unit Continuous Offering Program

Revenues

Revenues3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
RevenuesRevenues Substantially all revenue-generating activities relate to sales of refined product and excess crude oil inventories sold at market prices (variable consideration) under contracts with customers. Additionally, we have revenues attributable to HEP logistics services provided under petroleum product and crude oil pipeline transportation, processing, storage and terminalling agreements with third parties. Disaggregated revenues were as follows: Three Months Ended 2021 2020 (In thousands) Revenues by type Refined product revenues Transportation fuels (1) $ 2,471,771 $ 2,478,347 Specialty lubricant products (2) 480,681 470,953 Asphalt, fuel oil and other products (3) 158,586 201,343 Total refined product revenues 3,111,038 3,150,643 Excess crude oil revenues (4) 356,300 199,779 Transportation and logistic services 25,258 26,426 Other revenues (5) 11,697 23,697 Total sales and other revenues $ 3,504,293 $ 3,400,545 Three Months Ended 2021 2020 (In thousands) Refined product revenues by market United States Mid-Continent $ 1,668,213 $ 1,532,924 Southwest 768,063 734,175 Rocky Mountains 237,803 468,779 Northeast 172,298 159,824 Canada 181,946 182,653 Europe, Asia and Latin America 82,715 72,288 Total refined product revenues $ 3,111,038 $ 3,150,643 (1) Transportation fuels consist of gasoline, diesel and jet fuel. (2) Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3) Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $117.3 million and $41.3 million, respectively, for the three months ended March 31, 2021, and $148.8 million and $52.5 million, respectively, for the three months ended March 31, 2020. (4) Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5) Other revenues are principally attributable to our Refining segment. Our consolidated balance sheet reflects contract liabilities related to unearned revenues attributable to future service obligations under HEP’s third-party transportation agreements and production agreements from our Sonneborn operation s. The following table presents changes to our contract liabilities during the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (In thousands) Balance at January 1 $ 6,738 $ 4,652 Increase 7,730 10,419 Recognized as revenue (8,583) (9,712) Balance at March 31 $ 5,885 $ 5,359 As of March 31, 2021, we have long-term contracts with customers that specify minimum volumes of gasoline, diesel, lubricants and specialty products to be sold ratably at market prices thro ugh 2025. Such volumes are typically nominated in the month preceding delivery and delivered ratably throughout the following month. Future prices are subject to market fluctuations and therefore, we have elected the exemption to exclude variable consideration under these contracts under Accounting Standards Codification 606-10-50-14A. Aggregate minimum volumes expected to be sold (future performance obligations) under our long-term product sales contracts with customers are as follows: Remainder of 2021 2022 2023 Thereafter Total (In thousands) Refined product sales volumes (barrels) 14,450 14,176 12,795 11,698 53,119 Additionally, HEP has long-term contracts with third-party customers that specify minimum volumes of product to be transported through its pipelines and terminals that result in fixed-minimum annual revenues throu gh 2025. Annual minimum revenues attributable to HEP’s third-party contracts as of March 31, 2021 are presented below: Remainder of 2021 2022 2023 Thereafter Total (In thousands) HEP contractual minimum revenues $ 16,360 $ 11,053 $ 9,000 $ 11,512 $ 47,925

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2021
Financial Instruments, Owned, at Fair Value [Abstract]
Fair Value MeasurementsFair Value Measurements Our financial instruments measured at fair value on a recurring basis consist of derivative instruments and RINs credit obligations. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. The carrying amounts of derivative instruments and RINs credit obligations at March 31, 2021 and December 31, 2020 were as follows: Fair Value by Input Level Carrying Amount Level 1 Level 2 Level 3 (In thousands) March 31, 2021 Assets: NYMEX futures contracts $ 1,927 $ 1,927 $ — $ — Commodity price swaps 36 — 36 — Commodity forward contracts 482 — 482 — Total assets $ 2,445 $ 1,927 $ 518 $ — Liabilities: Commodity forward contracts $ 7,198 $ — $ 7,198 $ — Foreign currency forward contracts 26,136 — 26,136 — RINs credit obligations (1) 43,299 — 43,299 — Total liabilities $ 76,633 $ — $ 76,633 $ — Fair Value by Input Level Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2020 Assets: Commodity forward contracts $ 275 $ — $ 275 $ — Total assets $ 275 $ — $ 275 $ — Liabilities: NYMEX futures contracts $ 418 $ 418 $ — $ — Commodity price swaps 359 — 359 — Commodity forward contracts 196 — 196 — Foreign currency forward contracts 23,005 — 23,005 — Total liabilities $ 23,978 $ 418 $ 23,560 $ — (1) Represent obligations for RINs credits for which we did not have sufficient quantities at March 31, 2021 to satisfy our Environmental Protection Agency (“EPA”) regulatory blending requirements. Level 1 Instruments Our NYMEX futures contracts are exchange traded and are measured and recorded at fair value using quoted market prices, a Level 1 input. Level 2 Instruments Derivative instruments consisting of foreign currency forward contracts, commodity price swaps and forward sales and purchase contracts are measured and recorded at fair value using Level 2 inputs. The fair value of the commodity price swap contracts is based on the net present value of expected future cash flows related to both variable and fixed rate legs of the respective swap agreements. The measurements are computed using market-based observable input and quoted forward commodity prices with respect to our commodity price swaps. The fair value of the forward sales and purchase contracts are computed using quoted forward commodity prices. RINs credit obligations are valued based on current market RINs prices. The fair value of foreign currency forward contracts are based on values provided by a third party, which were derived using market quotes for similar type instruments, a Level 2 input.

Earnings Per Share

Earnings Per Share3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings Per ShareEarnings Per Share Basic earnings per share is calculated as net income (loss) attributable to HollyFrontier stockholders, adjusted for participating securities’ share in earnings divided by the average number of shares of common stock outstanding. Diluted earnings per share includes the incremental shares resulting from certain share-based awards. The following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders: Three Months Ended 2021 2020 (In thousands, except per share data) Net income (loss) attributable to HollyFrontier stockholders $ 148,217 $ (304,623) Participating securities’ share in earnings (1) 2,042 — Net income (loss) attributable to common shares $ 146,175 $ (304,623) Average number of shares of common stock outstanding 162,479 161,873 Average number of shares of common stock outstanding assuming dilution 162,479 161,873 Basic earnings (loss) per share $ 0.90 $ (1.88) Diluted earnings (loss) per share $ 0.90 $ (1.88)

Stock-Based Compensation

Stock-Based Compensation3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock-Based CompensationStock-Based Compensation We have a principal share-based compensation plan (the “2020 Long-Term Incentive Plan”), which allows us to grant new equity awards to certain officers, non-employee directors and other key employees of HollyFrontier. The restricted stock unit awards generally vest over a period of one The compensation cost for these plans was $10.9 million and $4.8 million for the three months ended March 31, 2021 and 2020, respectively. Additionally, HEP maintains a share-based compensation plan for Holly Logistic Services, L.L.C.’s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s share-based compensation plan was $0.7 million and $0.5 million for the three months ended March 31, 2021 and 2020, respectively. A summary of restricted stock unit and performance share unit activity during the three months ended March 31, 2021 is presented below: Restricted Stock Units Performance Share Units Outstanding at January 1, 2021 2,057,045 635,204 Granted (1) 8,453 — Vested (34,624) (3,565) Forfeited (86,459) (18,268) Outstanding at March 31, 2021 1,944,415 613,371 (1) Weighted average grant date fair value per unit $ 34.91 $ —

Inventories

Inventories3 Months Ended
Mar. 31, 2021
Inventory, Net [Abstract]
InventoriesInventories Inventories consist of the following components: March 31, December 31, 2020 (In thousands) Crude oil $ 541,022 $ 451,967 Other raw materials and unfinished products (1) 401,247 260,495 Finished products (2) 613,158 595,696 Lower of cost or market reserve (118,825) (318,862) Process chemicals (3) 36,684 35,006 Repair and maintenance supplies and other (4) 143,562 149,174 Total inventory $ 1,616,848 $ 1,173,476 (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. (3) Process chemicals include additives and other chemicals. (4) Includes RINs. Our inventories that are valued at the lower of LIFO cost or market reflect a valuation reserve of $118.8 million and $318.9 million at March 31, 2021 and December 31, 2020, respectively. The December 31, 2020 market reserve of $318.9 million was reversed due to the sale of inventory quantities that gave rise to the 2020 reserve. A new market reserve of $118.8 million was established as of March 31, 2021 based on market conditions and prices at that time. The effect of the change in lower of cost or market reserve was a decrease t o cost of products sold totaling $200.0 million for the three months ended March 31, 2021 and an increase to cost of products sold totaling $560.5 million for the three months ended March 31, 2020 . At March 31, 2021, the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs.

Environmental

Environmental3 Months Ended
Mar. 31, 2021
Environmental Expense and Liabilities [Abstract]
EnvironmentalEnvironmental Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. We have ongoing investigations of environmental matters at various locations and routinely assess our recorded environmental obligations, if any, with respect to such matters. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and cleanup activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable. We incurred expense of $0.1 million and $1.6 million for the three months ended March 31, 2021 and 2020, respectively, for environmental remediation obligations. The accrued environmental liability reflected in our consolidated balance sheets was $114.0 million and $115.0 million at March 31, 2021 and December 31, 2020, respectively, of which $94.9 million and $94.0 million, respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time (up to 30 years for certain projects). Estimated liabilities could increase in the future when the results of ongoing investigations become known, are considered probable and can be reasonably estimated.

Debt

Debt3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
DebtDebt HollyFrontier Credit Agreement At March 31, 2021, we had a $1.35 billion senior unsecured revolving credit facility maturing in February 2022 (the “HollyFrontier Credit Agreement”). On April 30, 2021, we amended the HollyFrontier Credit Agreement to extend the maturity date to April 30, 2026 (the “Amended HollyFrontier Credit Agreement”). The Amended HollyFrontier Credit Agreement may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. At March 31, 2021, we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $5.7 million under the HollyFrontier Credit Agreement. Indebtedness under the Amended HollyFrontier Credit Agreement will bear interest, at our option, at either (a) the alternate base rate (as defined in the Amended HollyFrontier Credit Agreement) plus an applicable margin of (ranging from 0.25% to 1.125%), (b) the LIBO Rate (as defined in the Amended HollyFrontier Credit Agreement) plus an applicable margin (ranging from 1.25% to 2.125%) or (c) the CDOR Rate (as defined in the Amended HollyFrontier Credit Agreement) plus an applicable margin (ranging from 1.25% to 2.125%) for Canadian dollar denominated borrowings. HEP Credit Agreement At March 31, 2021, HEP had a $1.4 billion senior secured revolving credit facility maturing in July 2022 (the “HEP Credit Agreement”). On April 30, 2021, the HEP Credit Agreement was amended, decreasing the commitments under the facility to $1.2 billion and extending the maturity to July 27, 2025 (the “Amended HEP Credit Agreement”). The Amended HEP Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit and continues to provide for an accordion feature that allows HEP to increase the commitments under the Amended HEP Credit Agreement up to a maximum amount of $1.7 billion. During the three months ended March 31, 2021, HEP received advances totaling $73.0 million and repaid $90.5 million under the HEP Credit Agreement. At March 31, 2021, HEP was in compliance with all of its covenants, had outstanding borrowings of $896.0 million and no outstanding letters of credit under the HEP Credit Agreement. Prior to the Investment Grade Date (as defined in the Amended HEP Credit Agreement), indebtedness under the Amended HEP Credit Agreement bears interest, at HEP’s option, at either (a) the alternate base rate (as defined in the Amended HEP Credit Agreement) plus an applicable margin or (b) the Eurodollar Rate (as defined in the Amended HEP Credit Agreement) plus an applicable margin. In each case, the applicable margin is based upon HEP’s Total Leverage Ratio (as defined in the Amended HEP Credit Agreement). The weighted average interest rate in effect under the HEP Credit Agreement on HEP’s borrowings was 2.08% for March 31, 2021. HEP’s obligations under the Amended HEP Credit Agreement are collateralized by substantially all of HEP’s assets and are guaranteed by HEP’s material wholly-owned subsidiaries. Any recourse to the general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP are not significant. HEP’s creditors have no recourse to our other assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. HollyFrontier Senior Notes At March 31, 2021, our senior notes consisted of the following: • $350.0 million in aggregate principal amount of 2.625% senior notes maturing October 2023 (the “2.625% Senior Notes”); • $1.0 billion in aggregate principal amount of 5.875% senior notes maturing April 2026 (the “5.875% Senior Notes”); and • $400.0 million in aggregate principal amount of 4.500% senior notes maturing October 2030 (the “4.500% Senior Notes”). These senior notes (collectively, the “HollyFrontier Senior Notes”) are unsecured and unsubordinated obligations and rank equally with all our other existing and future unsecured and unsubordinated indebtedness. HollyFrontier Financing Arrangements Certain of our wholly-owned subsidiaries entered into financing arrangements whereby such subsidiaries sold a portion of their precious metals catalyst to a financial institution and then leased back the precious metals catalyst in exchange for cash. The volume of the precious metals catalyst and the lease rate are fixed over the term of each lease, and the lease payments are recorded as interest expense. The current leases mature on February 1, 2022. Upon maturity, we must either satisfy the obligation at fair market value or refinance to extend the maturity. These financing arrangements are recorded at a Level 2 fair value totaling $48.8 million and $43.9 million at March 31, 2021 and December 31, 2020, respectively, and are included in “Accrued liabilities” in our consolidated balance sheets. See Note 4 for additional information on Level 2 inputs. HEP Senior Notes In February 2020, HEP closed a private placement of $500.0 million in aggregate principal amount of 5.0% HEP senior unsecured notes maturing February 2028 (the “HEP Senior Notes”). Subsequently, in February 2020, HEP redeemed its existing $500.0 million aggregate principal amount of 6.0% senior notes maturing August 2024 at a redemption cost of $522.5 million. HEP recognized a $25.9 million early extinguishment loss consisting of a $22.5 million debt redemption premium and unamortized discount and financing costs of $3.4 million during the three months ended March 31, 2020. The HEP Senior Notes are unsecured and impose certain restrictive covenants, including limitations on HEP’s ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. HEP was in compliance with the restrictive covenants for the HEP Senior Notes as of March 31, 2021. At any time when the HEP Senior Notes are rated investment grade by either Moody’s or Standard & Poor’s and no default or event of default exists, HEP will not be subject to many of the foregoing covenants. Additionally, HEP has certain redemption rights at varying premiums over face value under the HEP Senior Notes. Indebtedness under the HEP Senior Notes is guaranteed by HEP’s wholly-owned subsidiaries. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. The carrying amounts of long-term debt are as follows: March 31, December 31, (In thousands) HollyFrontier 2.625% Senior Notes $ 350,000 $ 350,000 5.875% Senior Notes 1,000,000 1,000,000 4.500% Senior Notes 400,000 400,000 1,750,000 1,750,000 Unamortized discount and debt issuance costs (12,244) (12,885) Total HollyFrontier long-term debt 1,737,756 1,737,115 HEP Credit Agreement 896,000 913,500 HEP 5.000% Senior Notes Principal 500,000 500,000 Unamortized discount and debt issuance costs (7,665) (7,897) Total HEP long-term debt 1,388,335 1,405,603 Total long-term debt $ 3,126,091 $ 3,142,718 The fair values of the senior notes are as follows: March 31, December 31, (In thousands) HollyFrontier Senior Notes $ 1,908,586 $ 1,903,867 HEP Senior Notes $ 504,960 $ 506,540 These fair values are based on a Level 2 input. See Note 4 for additional information on Level 2 inputs. We capitalized interest attributable to construction projects of $1.9 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging ActivitiesDerivative Instruments and Hedging Activities Commodity Price Risk Management Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, forward purchase and sales and futures contracts to mitigate price exposure with respect to our inventory positions, natural gas purchases, sales prices of refined products and crude oil costs. Foreign Currency Risk Management We are exposed to market risk related to the volatility in foreign currency exchange rates. We periodically enter into derivative contracts in the form of foreign exchange forward and foreign exchange swap contracts to mitigate the exposure associated with fluctuations on intercompany notes with our foreign subsidiaries that are not denominated in the U.S. dollar. Accounting Hedges We have swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas. We also periodically have swap contracts to lock in basis spread differentials on forecasted purchases of crude oil and forward sales contracts that lock in the prices of future sales of crude oil and refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains/losses) recorded directly to other comprehensive income. These fair value adjustments are later reclassified to earnings as the hedging instruments mature. The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of hedging instruments under hedge accounting: Net Unrealized Loss Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended Income Statement Location Three Months Ended 2021 2020 2021 2020 (In thousands) Commodity contracts $ (4,642) $ (13,324) Sales and other revenues $ (13,719) $ 5,452 Cost of products sold — 1,830 Operating expenses (156) (706) Total $ (4,642) $ (13,324) $ (13,875) $ 6,576 Economic Hedges We have commodity contracts including NYMEX futures contracts to lock in prices on forecasted purchases and sales of inventory and forward purchase and sell contracts, as well as periodically have contracts to lock in basis spread differentials on forecasted purchases of crude oil, that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges). We also have forward currency contracts to fix the rate of foreign currency. In addition, our catalyst financing arrangements discussed in Note 9 could require repayment under certain conditions based on the future pricing of platinum, which is an embedded derivative. These contracts are measured at fair value with offsetting adjustments (gains/losses) recorded directly to earnings. The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges: Gain (Loss) Recognized in Earnings Derivatives Not Designated as Hedging Instruments Income Statement Location Three Months Ended March 31, 2021 2020 (In thousands) Commodity contracts Cost of products sold $ (2,610) $ 25,089 Interest expense 2,675 9,812 Foreign currency contracts Loss on foreign currency transactions (6,743) 33,475 Total $ (6,678) $ 68,376 As of March 31, 2021, we have the following notional contract volumes related to outstanding derivative instruments: Notional Contract Volumes by Year of Maturity Total Outstanding Notional 2021 2022 Unit of Measure Derivatives Designated as Hedging Instruments Natural gas price swaps - long 1,350,000 1,350,000 — MMBTU Forward gasoline contracts - short 400,000 400,000 — Barrels Derivatives Not Designated as Hedging Instruments NYMEX futures (WTI) - short 805,000 805,000 — Barrels Forward gasoline and diesel contracts - long 315,000 315,000 — Barrels Foreign currency forward contracts 421,800,661 311,887,682 109,912,979 U.S. dollar Forward commodity contracts (platinum) 40,767 — 40,767 Troy ounces The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements. Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) March 31, 2021 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 72 $ (36) $ 36 $ — $ — $ — Commodity forward contracts — — — 6,828 — 6,828 $ 72 $ (36) $ 36 $ 6,828 $ — $ 6,828 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ 1,927 $ — $ 1,927 $ — $ — $ — Commodity forward contracts 482 — 482 370 — 370 Foreign currency forward contracts — — — 26,136 — 26,136 $ 2,409 $ — $ 2,409 $ 26,506 $ — $ 26,506 Total net balance $ 2,445 $ 33,334 Balance sheet classification: Prepayment and other $ 2,445 Accrued liabilities $ 33,334 Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2020 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 359 $ — $ 359 $ — $ — $ — $ 359 $ — $ 359 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ — $ — $ — $ 418 $ — $ 418 Commodity forward contracts 275 — 275 196 — 196 Foreign currency forward contracts — — — 23,005 — 23,005 $ 275 $ — $ 275 $ 23,619 $ — $ 23,619 Total net balance $ 275 $ 23,978 Balance sheet classification: Prepayment and other $ 275 Accrued liabilities $ 23,978 At March 31, 2021, we had a pre-tax net unrealized loss of $5.0 million classified in accumulated other comprehensive income that relates to all accounting hedges having contractual maturities through 2021, which, assuming commodity prices remain unchanged, will be effectively transferred from accumulated other comprehensive income into the statement of operations as the hedging instruments contractually mature over the next twelve-month period.

Equity

Equity3 Months Ended
Mar. 31, 2021
Stockholders' Equity Note [Abstract]
EquityEquity In November 2019, our Board of Directors approved a $1.0 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. As of March 31, 2021, we had not repurchased common stock under this stock repurchase program. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs. During the three months ended March 31, 2021 and 2020, we withheld 350 and 24,914, respectively, shares of our common stock from certain employees. These withholdings were made under the terms of restricted stock unit and performance share unit agreements upon vesting, at which time, we concurrently made cash payments to fund payroll and income taxes on behalf of officers and employees who elected to have shares withheld from vested amounts to pay such taxes.

Other Comprehensive Income

Other Comprehensive Income3 Months Ended
Mar. 31, 2021
Other Comprehensive Income (Loss), before Tax [Abstract]
Other Comprehensive IncomeOther Comprehensive Income The components and allocated tax effects of other comprehensive income are as follows: Before-Tax Tax Expense After-Tax (In thousands) Three Months Ended March 31, 2021 Net change in foreign currency translation adjustment $ (5,863) $ (1,225) $ (4,638) Net unrealized loss on hedging instruments (4,642) (1,169) (3,473) Net change in pension and other post-retirement benefit obligations (930) (237) (693) Other comprehensive loss attributable to HollyFrontier stockholders $ (11,435) $ (2,631) $ (8,804) Three Months Ended March 31, 2020 Net change in foreign currency translation adjustment $ (21,586) $ (4,627) $ (16,959) Net unrealized loss on hedging instruments (13,324) (3,398) (9,926) Net change in pension and other post-retirement benefit obligations (42) (4) (38) Other comprehensive loss attributable to HollyFrontier stockholders $ (34,952) $ (8,029) $ (26,923) The following table presents the statements of operations line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”): AOCI Component Gain (Loss) Reclassified From AOCI Statement of Operations Line Item Three Months Ended March 31, 2021 2020 (In thousands) Hedging instruments: Commodity price swaps $ (13,719) $ 5,452 Sales and other revenues — 1,830 Cost of products sold (156) (706) Operating expenses (13,875) 6,576 (3,497) 1,677 Income tax expense (benefit) (10,378) 4,899 Net of tax Other post-retirement benefit obligations: Pension obligations 101 — Other, net 25 — Income tax expense 76 — Net of tax Post-retirement healthcare obligations 838 — Other, net 211 — Income tax expense 627 — Net of tax Retirement restoration plan (9) — Other, net (2) — Income tax benefit (7) — Net of tax Total reclassifications for the period $ (9,682) $ 4,899 Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: March 31, December 31, (In thousands) Foreign currency translation adjustment $ (1,956) $ 2,682 Unrealized loss on pension obligation (349) (248) Unrealized gain on post-retirement benefit obligations 10,718 11,310 Unrealized loss on hedging instruments (3,755) (282) Accumulated other comprehensive income $ 4,658 $ 13,462

Contingencies

Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
ContingenciesContingenciesWe are a party to various litigation and legal proceedings which we believe, based on advice of counsel, will not either individually or in the aggregate have a materially adverse effect on our financial condition, results of operations or cash flows. During 2017, 2018 and 2019, the EPA granted the Cheyenne Refinery and Woods Cross Refinery each a one-year small refinery exemption from the Renewable Fuel Standard (“RFS”) program requirements for the 2016, 2017 and 2018, respectively, calendar years. As a result, the Cheyenne Refinery’s and Woods Cross Refinery’s gasoline and diesel production are not subject to the Renewable Volume Obligation for the respective years. Upon each exemption granted, we increased our inventory of RINs and reduced our cost of products sold. Various subsidiaries of HollyFrontier are currently intervenors in three lawsuits brought by renewable fuel interest groups against the EPA in federal courts alleging violations of the RFS under the Clean Air Act and challenging the EPA’s handling of small refinery exemptions. We intervened to vigorously defend the EPA’s position on small refinery exemptions because we believe the EPA correctly applied applicable law to the matters at issue. On January 24, 2020, in the first of these lawsuits, the U.S. Court of Appeals for the Tenth Circuit vacated the small refinery exemptions granted to two of our refineries for 2016 and remanded the case to the EPA for further proceedings. On April 15, 2020, the Tenth Circuit entered its mandate, remanding the matter back to the EPA. On September 4, 2020, various subsidiaries of HollyFrontier filed a Petition for a Writ of Certiorari with the U.S. Supreme Court appealing the Tenth Circuit decision. On January 8, 2021, the U.S. Supreme Court granted HollyFrontier's petition. The oral argument occurred on April 27, 2021. We anticipate a decision from the Supreme Court in June 2021. We expect that we will not know what steps the EPA will take with respect to our 2016 small refinery exemptions, or how the case will impact future small refinery exemptions until after the Supreme Court's decision in this matter. The second lawsuit is before the Tenth Circuit. The matter is fully briefed and remains pending before that court. The third lawsuit is before the DC Circuit. Briefing of the issues before the court commenced on December 7, 2020; however, in light of the Supreme Court's decision to hear HollyFrontier's appeal of the Tenth Circuit decision, this case was stayed pending a decision from the Supreme Court. In December 2020, various subsidiaries of HollyFrontier also filed a petition for review in the DC Circuit challenging the EPA's denial of small refinery exemption petitions for years prior to 2016. The petition was consolidated with petitions from eight other refining companies challenging the same decision. In light of the Supreme Court's decision to hear HollyFrontier's appeal of the Tenth Circuit decision, this case was stayed pending a decision from the Supreme Court. We are unable to estimate the costs we may incur, if any, at this time. It is too early to assess how the matter currently on appeal to the U.S. Supreme Court will impact future small refinery exemptions or whether the remaining cases are expected to have any impact on us. We have been party to multiple proceedings before the Federal Energy Regulatory Commission (“FERC”) challenging the rates charged by SFPP, L.P. (“SFPP”) on its East Line pipeline facilities from El Paso, Texas to Phoenix, Arizona. In March 2018, FERC ruled that SFPP, as a master limited partnership, was prohibited from including an allowance for investor income taxes in the cost of service underlying its East Line rates. We reached a negotiated settlement with SFPP that provides for a payment to us of $51.5 million. FERC approved the settlement on December 31, 2020 subject to a rehearing period that resulted in a settlement effective date of February 2, 2021. Under the terms of the settlement agreement, SFPP made the $51.5 million payment to us on February 10, 2021. As of December 31, 2020, we had no enforceable right to collect any of the settlement. Accordingly, recognition of a gain occurred when the uncertainties were resolved on February 2, 2021, and we recorded as Gain on tariff settlement in our consolidated statements of operations for the three months ended March 31, 2021.

Segment Information

Segment Information3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Segment InformationSegment 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 represents the operations of the El Dorado, Tulsa, Navajo and Woods Cross Refineries and 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 PCLI’s production operations, located in Mississauga, Ontario, that includes 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 and Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America. Also, the Lubricants and Specialty Products segment includes 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 includes all of the operations of HEP, which owns and operates logistics and refinery 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% ownership interest in UNEV (a consolidated subsidiary of HEP) and 50% ownership interests in each of the Osage Pipeline, the Cheyenne Pipeline and Cushing Connect. 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. The accounting policies for our segments are the same as those described in the summary of significant accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2020. Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations (1) Consolidated (In thousands) Three Months Ended March 31, 2021 Sales and other revenues: Revenues from external customers $ 2,957,033 $ 521,998 $ 25,258 $ 4 $ 3,504,293 Intersegment revenues 60,462 2,565 101,926 (164,953) — $ 3,017,495 $ 524,563 $ 127,184 $ (164,949) $ 3,504,293 Cost of products sold (exclusive of lower of cost or market inventory) $ 2,761,943 $ 331,523 $ — $ (133,161) $ 2,960,305 Lower of cost or market inventory valuation adjustment $ (199,528) $ — $ — $ (509) $ (200,037) Operating expenses $ 292,855 $ 60,753 $ 41,365 $ 4,936 $ 399,909 Selling, general and administrative expenses $ 28,496 $ 45,553 $ 2,969 $ 4,957 $ 81,975 Depreciation and amortization $ 88,082 $ 20,121 $ 23,006 $ (7,130) $ 124,079 Income (loss) from operations $ 45,647 $ 66,613 $ 59,844 $ (34,042) $ 138,062 Earnings of equity method investments $ — $ — $ 1,763 $ — $ 1,763 Capital expenditures $ 40,361 $ 4,087 $ 33,218 $ 72,295 $ 149,961 Three Months Ended March 31, 2020 Sales and other revenues: Revenues from external customers $ 2,850,620 $ 523,499 $ 26,426 $ — $ 3,400,545 Intersegment revenues 84,246 3,104 101,428 (188,778) — $ 2,934,866 $ 526,603 $ 127,854 $ (188,778) $ 3,400,545 Cost of products sold (exclusive of lower of cost or market inventory) $ 2,468,751 $ 391,380 $ — $ (166,405) $ 2,693,726 Lower of cost or market inventory valuation adjustment $ 560,464 $ — $ — $ — $ 560,464 Operating expenses $ 259,174 $ 54,131 $ 34,981 $ (19,941) $ 328,345 Selling, general and administrative expenses $ 31,000 $ 48,962 $ 2,702 $ 5,073 $ 87,737 Depreciation and amortization $ 90,179 $ 22,049 $ 23,978 $ 4,369 $ 140,575 Income (loss) from operations $ (474,702) $ 10,081 $ 66,193 $ (11,874) $ (410,302) Earnings of equity method investments $ — $ — $ 1,714 $ — $ 1,714 Capital expenditures $ 53,014 $ 9,081 $ 18,942 $ 2,712 $ 83,749 (1) For the three months ended March 31, 2021, Corporate and Other includes $12.8 million of operating expenses and $70.2 million of capital expenditures related to the construction of our renewable diesel units. Refining Lubricants and Specialty Products HEP Corporate, Other Consolidated (In thousands) March 31, 2021 Cash and cash equivalents $ 7,090 $ 110,788 $ 19,753 $ 1,055,797 $ 1,193,428 Total assets $ 6,781,110 $ 1,875,026 $ 2,250,230 $ 1,028,451 $ 11,934,817 Long-term debt $ — $ — $ 1,388,335 $ 1,737,756 $ 3,126,091 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

Description of Business and P_2

Description of Business and Presentation of Financial Statements (Policy)3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of BusinessReferences herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In these financial statements, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person, with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. These financial statements contain certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries. We are an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products and specialty and modified asphalt. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. In addition, we produce base oils and other specialized lubricants in the United States, Canada and the Netherlands, with retail and wholesale marketing of our products through a global sales network with locations in Canada, the United States, Europe, China and Latin America. As of March 31, 2021, we: • owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”); • owned a facility in Cheyenne, Wyoming, which operated as a petroleum refinery until early August 2020, at which time its assets began to be converted to renewable diesel production (the “Cheyenne Refinery”); • owned and operated Petro-Canada Lubricants Inc. (“PCLI”) located in Mississauga, Ontario, which produces base oils and other specialized lubricant products; • owned and operated manufacturing facilities in Petrolia, Pennsylvania and the Netherlands, which produce specialty lubricant products for our Sonneborn business, such as white oils, petrolatums and waxes; • owned and operated Red Giant Oil Company LLC (“Red Giant Oil”), which supplies locomotive engine oil and has storage and distribution facilities in Iowa and Wyoming, along with a blending and packaging facility in Texas; • owned and operated HollyFrontier Asphalt Company LLC (“HFC Asphalt”), which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 57% limited partner interest and a non-economic general partner interest in HEP, a variable interest entity (“VIE”). HEP owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain geographic regions of the United States. On May 4, 2021, HollyFrontier Puget Sound Refining LLC (the “Purchaser”), a wholly-owned subsidiary of HollyFrontier Corporation, entered into a sale and purchase agreement with Equilon Enterprises LLC d/b/a Shell Oil Products US (the “Seller”) to acquire Seller’s refinery and related assets, including the on-site cogeneration facility and related logistics assets (the “Puget Sound Refinery”), for a base cash purchase price of $350 million plus hydrocarbon inventory to be valued at closing with an estimated current value in the range of $150 million to $180 million (the “Acquisition”). The Puget Sound Refinery is strategically located on approximately 850 acres in Anacortes, Washington, approximately 80 miles north of Seattle and 90 miles south of Vancouver. The 149,000 barrel per day facility is a large, high quality and complex refinery with catalytic cracking and delayed coking units and is well positioned geographically and logistically to source advantaged Canadian and Alaskan North Slope crudes. In addition to refining assets and an on-site cogeneration facility, the transaction includes a deep-water marine dock, a light product loading rack, a rail terminal, and storage tanks with approximately 5.8 million barrels of crude, product and other hydrocarbon storage capacity. The Acquisition is expected to close in the fourth quarter of 2021, subject to regulatory clearance and other customary closing conditions. We expect to fund the Acquisition with a one-year suspension of our regular quarterly dividend and cash on hand. 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. In connection with the cessation of petroleum refining operations at our Cheyenne Refinery, we recognized $8.3 million in decommissioning expense and $0.5 million in employee severance costs for the three months ended March 31, 2021, which were recognized in operating expenses in our Corporate and Other segment. During the first quarter of 2021, we initiated a restructuring within our Lubricants and Specialty Products segment. As a result of this restructuring, we recorded $7.8 million in employee severance costs for the three months ended March 31, 2021, which were recognized primarily as selling, general and administrative expenses in our Lubricants and Specialty Products segment. We have prepared these consolidated financial statements without audit. In management’s opinion, these consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our consolidated financial position as of March 31, 2021, the consolidated results of operations, comprehensive income, statements of equity and cash flows for the three months ended March 31, 2021 and 2020 in accordance with the rules and regulations of the SEC. Although certain notes and other information required by generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 that has been filed with the SEC. Our results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations to be realized for the year ending December 31, 2021.
Accounts ReceivableAccounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer’s financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for expected credit losses based on our historical loss experience as well as expected credit losses from current economic conditions and management’s expectations of future economic conditions. Credit losses are charged to the allowance for expected credit losses when an account is deemed uncollectible. Our allowance for expected credit losses was $3.9 million at March 31, 2021 and $3.4 million at December 31, 2020.
InventoriesInventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation. Inventories of our Petro-Canada Lubricants and Sonneborn businesses are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value. Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value.
LeasesLeases: At inception, we determine if an arrangement is or contains a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our payment obligation under the leasing arrangement. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties, plants and equipment and accrued liabilities and other long-term liabilities on our consolidated balance sheet.
Goodwill and Long-lived AssetsGoodwill and Long-lived Assets: As of March 31, 2021, our goodwill balance was $2.3 billion, with goodwill assigned to our Refining, Lubricants and Specialty Products and HEP segments of $1,733.5 million, $247.1 million and $312.9 million, respectively. See Note 14 for additional information on our segments. The carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our Lubricants and Specialty Products segment. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the carrying amount of the reporting unit is greater than its fair value, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the related fair value. For purposes of long-lived asset impairment evaluation, we have grouped our long-lived assets as follows: (i) our refinery asset groups, which include certain HEP logistics assets, (ii) our Lubricants and Specialty Products asset groups and (iii) our HEP asset groups, which comprises HEP assets not included in our refinery asset groups. These asset groups represent the lowest level for which independent cash flows can be identified. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value.
Revenue RecognitionRevenue Recognition: Revenue on refined product and excess crude oil sales are recognized when delivered (via pipeline, in-tank or rack) and the customer obtains control of such inventory, which is typically when title passes and the customer is billed. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported as cost of products sold. Our lubricants and specialty products business has sales agreements with marketers and distributors that provide certain rights of return or provisions for the repurchase of products previously sold to them. Under these agreements, revenues and cost of revenues are deferred until the products have been sold to end customers. Our lubricants and specialty products business also has agreements that create an obligation to deliver products at a future date for which consideration has already been received and recorded as deferred revenue. This revenue is recognized when the products are delivered to the customer. HEP recognizes revenues as products are shipped through its pipelines and terminals and as other services are rendered. Additionally, HEP has certain throughput agreements that specify minimum volume requirements, whereby HEP bills a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, HEP recognizes these deficiency payments as revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. HEP recognizes the service portion of these deficiency payments as revenue when HEP does not expect it will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 30 days of the date of invoice.
Foreign Currency TranslationForeign Currency Translation: Assets and liabilities recorded in foreign currencies are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income. In connection with our PCLI acquisition, we issued intercompany notes to initially fund certain of our foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing amounts to functional currencies are recorded as gains and losses as a component of other income (expense) in the consolidated statements of operations. Such adjustments are not recorded to the Lubricants and Specialty Products segment operations, but to Corporate and Other. See Note 14 for additional information on our segments.
Income TaxesIncome Taxes : Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. For the three months ended March 31, 2021 and 2020, we recorded income tax benefits of $28.3 million and $162.2 million, respectively. Thi s decrease in income tax benefit was due principally to pre-t ax income during the three months ended March 31, 2021 compared to pre-tax loss in the same period of 2020. Our effective tax rates were (18.3)% and 35.6% for the three months ended March 31, 2021 and 2020, respectively. The year-over-year decrease in the e ffective tax rate is due principally to the relationship between the pre-tax results and the earnings attributable to the noncontrolling interest that is not included in income for tax purposes.
Inventory Repurchase ObligationsInventory Repurchase Obligations: We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as an inventory repurchase obligation that is subsequently reversed when the inventory is repurchased. For the three months ended March 31, 2021 and 2020, we received proceeds of $11.0 million and $14.4 million, respectively, and subsequently repaid $12.0 million and $11.8 million, respectively, under these sell / buy transactions.

Holly Energy Partners (Tables)

Holly Energy Partners (Tables)3 Months Ended
Mar. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Lease Income RecognizedLease income recognized was as follows: Three Months Ended 2021 2020 (In thousands) Operating lease revenues $ 4,447 $ 8,290 Sales-type lease interest income $ 639 $ — Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 337 $ —

Revenues (Tables)

Revenues (Tables)3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated RevenuesDisaggregated revenues were as follows: Three Months Ended 2021 2020 (In thousands) Revenues by type Refined product revenues Transportation fuels (1) $ 2,471,771 $ 2,478,347 Specialty lubricant products (2) 480,681 470,953 Asphalt, fuel oil and other products (3) 158,586 201,343 Total refined product revenues 3,111,038 3,150,643 Excess crude oil revenues (4) 356,300 199,779 Transportation and logistic services 25,258 26,426 Other revenues (5) 11,697 23,697 Total sales and other revenues $ 3,504,293 $ 3,400,545 Three Months Ended 2021 2020 (In thousands) Refined product revenues by market United States Mid-Continent $ 1,668,213 $ 1,532,924 Southwest 768,063 734,175 Rocky Mountains 237,803 468,779 Northeast 172,298 159,824 Canada 181,946 182,653 Europe, Asia and Latin America 82,715 72,288 Total refined product revenues $ 3,111,038 $ 3,150,643 (1) Transportation fuels consist of gasoline, diesel and jet fuel. (2) Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3) Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $117.3 million and $41.3 million, respectively, for the three months ended March 31, 2021, and $148.8 million and $52.5 million, respectively, for the three months ended March 31, 2020. (4) Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5) Other revenues are principally attributable to our Refining segment.
Schedule of Changes to Contract LiabilitiesThe following table presents changes to our contract liabilities during the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (In thousands) Balance at January 1 $ 6,738 $ 4,652 Increase 7,730 10,419 Recognized as revenue (8,583) (9,712) Balance at March 31 $ 5,885 $ 5,359
Schedules of Aggregate Minimum Volumes Expected to Be Sold Under Long-term Sales ContractsAggregate minimum volumes expected to be sold (future performance obligations) under our long-term product sales contracts with customers are as follows: Remainder of 2021 2022 2023 Thereafter Total (In thousands) Refined product sales volumes (barrels) 14,450 14,176 12,795 11,698 53,119 Remainder of 2021 2022 2023 Thereafter Total (In thousands) HEP contractual minimum revenues $ 16,360 $ 11,053 $ 9,000 $ 11,512 $ 47,925

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 31, 2021
Financial Instruments, Owned, at Fair Value [Abstract]
Fair Value Measurements Of Asset and Liability InstrumentsThe carrying amounts of derivative instruments and RINs credit obligations at March 31, 2021 and December 31, 2020 were as follows: Fair Value by Input Level Carrying Amount Level 1 Level 2 Level 3 (In thousands) March 31, 2021 Assets: NYMEX futures contracts $ 1,927 $ 1,927 $ — $ — Commodity price swaps 36 — 36 — Commodity forward contracts 482 — 482 — Total assets $ 2,445 $ 1,927 $ 518 $ — Liabilities: Commodity forward contracts $ 7,198 $ — $ 7,198 $ — Foreign currency forward contracts 26,136 — 26,136 — RINs credit obligations (1) 43,299 — 43,299 — Total liabilities $ 76,633 $ — $ 76,633 $ — Fair Value by Input Level Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2020 Assets: Commodity forward contracts $ 275 $ — $ 275 $ — Total assets $ 275 $ — $ 275 $ — Liabilities: NYMEX futures contracts $ 418 $ 418 $ — $ — Commodity price swaps 359 — 359 — Commodity forward contracts 196 — 196 — Foreign currency forward contracts 23,005 — 23,005 — Total liabilities $ 23,978 $ 418 $ 23,560 $ — (1) Represent obligations for RINs credits for which we did not have sufficient quantities at March 31, 2021 to satisfy our Environmental Protection Agency (“EPA”) regulatory blending requirements.

Earnings Per Share (Tables)

Earnings Per Share (Tables)3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule Of Earnings Per ShareThe following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders: Three Months Ended 2021 2020 (In thousands, except per share data) Net income (loss) attributable to HollyFrontier stockholders $ 148,217 $ (304,623) Participating securities’ share in earnings (1) 2,042 — Net income (loss) attributable to common shares $ 146,175 $ (304,623) Average number of shares of common stock outstanding 162,479 161,873 Average number of shares of common stock outstanding assuming dilution 162,479 161,873 Basic earnings (loss) per share $ 0.90 $ (1.88) Diluted earnings (loss) per share $ 0.90 $ (1.88)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract]
Schedule Of Restricted Stock ActivityA summary of restricted stock unit and performance share unit activity during the three months ended March 31, 2021 is presented below: Restricted Stock Units Performance Share Units Outstanding at January 1, 2021 2,057,045 635,204 Granted (1) 8,453 — Vested (34,624) (3,565) Forfeited (86,459) (18,268) Outstanding at March 31, 2021 1,944,415 613,371 (1) Weighted average grant date fair value per unit $ 34.91 $ —
Schedule Of Performance Share ActivityA summary of restricted stock unit and performance share unit activity during the three months ended March 31, 2021 is presented below: Restricted Stock Units Performance Share Units Outstanding at January 1, 2021 2,057,045 635,204 Granted (1) 8,453 — Vested (34,624) (3,565) Forfeited (86,459) (18,268) Outstanding at March 31, 2021 1,944,415 613,371 (1) Weighted average grant date fair value per unit $ 34.91 $ —

Inventories (Tables)

Inventories (Tables)3 Months Ended
Mar. 31, 2021
Inventory, Net [Abstract]
Schedule of Inventory ComponentsInventories consist of the following components: March 31, December 31, 2020 (In thousands) Crude oil $ 541,022 $ 451,967 Other raw materials and unfinished products (1) 401,247 260,495 Finished products (2) 613,158 595,696 Lower of cost or market reserve (118,825) (318,862) Process chemicals (3) 36,684 35,006 Repair and maintenance supplies and other (4) 143,562 149,174 Total inventory $ 1,616,848 $ 1,173,476 (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. (3) Process chemicals include additives and other chemicals. (4) Includes RINs.

Debt (Tables)

Debt (Tables)3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Carrying Amounts Of Long-Term DebtThe carrying amounts of long-term debt are as follows: March 31, December 31, (In thousands) HollyFrontier 2.625% Senior Notes $ 350,000 $ 350,000 5.875% Senior Notes 1,000,000 1,000,000 4.500% Senior Notes 400,000 400,000 1,750,000 1,750,000 Unamortized discount and debt issuance costs (12,244) (12,885) Total HollyFrontier long-term debt 1,737,756 1,737,115 HEP Credit Agreement 896,000 913,500 HEP 5.000% Senior Notes Principal 500,000 500,000 Unamortized discount and debt issuance costs (7,665) (7,897) Total HEP long-term debt 1,388,335 1,405,603 Total long-term debt $ 3,126,091 $ 3,142,718 The fair values of the senior notes are as follows: March 31, December 31, (In thousands) HollyFrontier Senior Notes $ 1,908,586 $ 1,903,867 HEP Senior Notes $ 504,960 $ 506,540

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Net Unrealized Gain (Loss) Recognized in OCI and Gain (Loss) Reclassified into EarningsThe following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of hedging instruments under hedge accounting: Net Unrealized Loss Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended Income Statement Location Three Months Ended 2021 2020 2021 2020 (In thousands) Commodity contracts $ (4,642) $ (13,324) Sales and other revenues $ (13,719) $ 5,452 Cost of products sold — 1,830 Operating expenses (156) (706) Total $ (4,642) $ (13,324) $ (13,875) $ 6,576
Schedule of Gain (Loss) Recognized in EarningsThe following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges: Gain (Loss) Recognized in Earnings Derivatives Not Designated as Hedging Instruments Income Statement Location Three Months Ended March 31, 2021 2020 (In thousands) Commodity contracts Cost of products sold $ (2,610) $ 25,089 Interest expense 2,675 9,812 Foreign currency contracts Loss on foreign currency transactions (6,743) 33,475 Total $ (6,678) $ 68,376
Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic HedgesAs of March 31, 2021, we have the following notional contract volumes related to outstanding derivative instruments: Notional Contract Volumes by Year of Maturity Total Outstanding Notional 2021 2022 Unit of Measure Derivatives Designated as Hedging Instruments Natural gas price swaps - long 1,350,000 1,350,000 — MMBTU Forward gasoline contracts - short 400,000 400,000 — Barrels Derivatives Not Designated as Hedging Instruments NYMEX futures (WTI) - short 805,000 805,000 — Barrels Forward gasoline and diesel contracts - long 315,000 315,000 — Barrels Foreign currency forward contracts 421,800,661 311,887,682 109,912,979 U.S. dollar Forward commodity contracts (platinum) 40,767 — 40,767 Troy ounces
Schedule of Derivative Instruments in Statement of Financial Position, Fair ValueThe following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements. Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) March 31, 2021 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 72 $ (36) $ 36 $ — $ — $ — Commodity forward contracts — — — 6,828 — 6,828 $ 72 $ (36) $ 36 $ 6,828 $ — $ 6,828 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ 1,927 $ — $ 1,927 $ — $ — $ — Commodity forward contracts 482 — 482 370 — 370 Foreign currency forward contracts — — — 26,136 — 26,136 $ 2,409 $ — $ 2,409 $ 26,506 $ — $ 26,506 Total net balance $ 2,445 $ 33,334 Balance sheet classification: Prepayment and other $ 2,445 Accrued liabilities $ 33,334 Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2020 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 359 $ — $ 359 $ — $ — $ — $ 359 $ — $ 359 Derivatives not designated as cash flow hedging instruments: NYMEX futures contracts $ — $ — $ — $ 418 $ — $ 418 Commodity forward contracts 275 — 275 196 — 196 Foreign currency forward contracts — — — 23,005 — 23,005 $ 275 $ — $ 275 $ 23,619 $ — $ 23,619 Total net balance $ 275 $ 23,978 Balance sheet classification: Prepayment and other $ 275 Accrued liabilities $ 23,978

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)3 Months Ended
Mar. 31, 2021
Other Comprehensive Income (Loss), before Tax [Abstract]
Schedule of Components and Allocated Tax Effects of OCIThe components and allocated tax effects of other comprehensive income are as follows: Before-Tax Tax Expense After-Tax (In thousands) Three Months Ended March 31, 2021 Net change in foreign currency translation adjustment $ (5,863) $ (1,225) $ (4,638) Net unrealized loss on hedging instruments (4,642) (1,169) (3,473) Net change in pension and other post-retirement benefit obligations (930) (237) (693) Other comprehensive loss attributable to HollyFrontier stockholders $ (11,435) $ (2,631) $ (8,804) Three Months Ended March 31, 2020 Net change in foreign currency translation adjustment $ (21,586) $ (4,627) $ (16,959) Net unrealized loss on hedging instruments (13,324) (3,398) (9,926) Net change in pension and other post-retirement benefit obligations (42) (4) (38) Other comprehensive loss attributable to HollyFrontier stockholders $ (34,952) $ (8,029) $ (26,923)
Schedule of Income Statement Line Items Effects Out of AOCIThe following table presents the statements of operations line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”): AOCI Component Gain (Loss) Reclassified From AOCI Statement of Operations Line Item Three Months Ended March 31, 2021 2020 (In thousands) Hedging instruments: Commodity price swaps $ (13,719) $ 5,452 Sales and other revenues — 1,830 Cost of products sold (156) (706) Operating expenses (13,875) 6,576 (3,497) 1,677 Income tax expense (benefit) (10,378) 4,899 Net of tax Other post-retirement benefit obligations: Pension obligations 101 — Other, net 25 — Income tax expense 76 — Net of tax Post-retirement healthcare obligations 838 — Other, net 211 — Income tax expense 627 — Net of tax Retirement restoration plan (9) — Other, net (2) — Income tax benefit (7) — Net of tax Total reclassifications for the period $ (9,682) $ 4,899
Schedule of AOCI in EquityAccumulated other comprehensive income in the equity section of our consolidated balance sheets includes: March 31, December 31, (In thousands) Foreign currency translation adjustment $ (1,956) $ 2,682 Unrealized loss on pension obligation (349) (248) Unrealized gain on post-retirement benefit obligations 10,718 11,310 Unrealized loss on hedging instruments (3,755) (282) Accumulated other comprehensive income $ 4,658 $ 13,462

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Schedule Of Segment Reporting InformationRefining Lubricants and Specialty Products HEP Corporate, Other and Eliminations (1) Consolidated (In thousands) Three Months Ended March 31, 2021 Sales and other revenues: Revenues from external customers $ 2,957,033 $ 521,998 $ 25,258 $ 4 $ 3,504,293 Intersegment revenues 60,462 2,565 101,926 (164,953) — $ 3,017,495 $ 524,563 $ 127,184 $ (164,949) $ 3,504,293 Cost of products sold (exclusive of lower of cost or market inventory) $ 2,761,943 $ 331,523 $ — $ (133,161) $ 2,960,305 Lower of cost or market inventory valuation adjustment $ (199,528) $ — $ — $ (509) $ (200,037) Operating expenses $ 292,855 $ 60,753 $ 41,365 $ 4,936 $ 399,909 Selling, general and administrative expenses $ 28,496 $ 45,553 $ 2,969 $ 4,957 $ 81,975 Depreciation and amortization $ 88,082 $ 20,121 $ 23,006 $ (7,130) $ 124,079 Income (loss) from operations $ 45,647 $ 66,613 $ 59,844 $ (34,042) $ 138,062 Earnings of equity method investments $ — $ — $ 1,763 $ — $ 1,763 Capital expenditures $ 40,361 $ 4,087 $ 33,218 $ 72,295 $ 149,961 Three Months Ended March 31, 2020 Sales and other revenues: Revenues from external customers $ 2,850,620 $ 523,499 $ 26,426 $ — $ 3,400,545 Intersegment revenues 84,246 3,104 101,428 (188,778) — $ 2,934,866 $ 526,603 $ 127,854 $ (188,778) $ 3,400,545 Cost of products sold (exclusive of lower of cost or market inventory) $ 2,468,751 $ 391,380 $ — $ (166,405) $ 2,693,726 Lower of cost or market inventory valuation adjustment $ 560,464 $ — $ — $ — $ 560,464 Operating expenses $ 259,174 $ 54,131 $ 34,981 $ (19,941) $ 328,345 Selling, general and administrative expenses $ 31,000 $ 48,962 $ 2,702 $ 5,073 $ 87,737 Depreciation and amortization $ 90,179 $ 22,049 $ 23,978 $ 4,369 $ 140,575 Income (loss) from operations $ (474,702) $ 10,081 $ 66,193 $ (11,874) $ (410,302) Earnings of equity method investments $ — $ — $ 1,714 $ — $ 1,714 Capital expenditures $ 53,014 $ 9,081 $ 18,942 $ 2,712 $ 83,749 (1) For the three months ended March 31, 2021, Corporate and Other includes $12.8 million of operating expenses and $70.2 million of capital expenditures related to the construction of our renewable diesel units. Refining Lubricants and Specialty Products HEP Corporate, Other Consolidated (In thousands) March 31, 2021 Cash and cash equivalents $ 7,090 $ 110,788 $ 19,753 $ 1,055,797 $ 1,193,428 Total assets $ 6,781,110 $ 1,875,026 $ 2,250,230 $ 1,028,451 $ 11,934,817 Long-term debt $ — $ — $ 1,388,335 $ 1,737,756 $ 3,126,091 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

Description of Business and P_3

Description of Business and Presentation of Financial Statements - Narrative (Details) bbl in Thousands, $ in ThousandsMay 04, 2021USD ($)abblmiMar. 31, 2021USD ($)petroleumRefinerymiMar. 31, 2020USD ($)Dec. 31, 2020USD ($)
Ownership Interest By Project Type [Line Items]
Facility distance from main city (in miles) | mi65
Allowance for expected credit losses $ 3,900 $ 3,400
Goodwill2,293,422 2,293,935
Income tax benefit $ 28,307 $ 162,166
Effective income tax rate(18.30%)35.60%
Proceeds from inventory repurchase agreements $ 11,000 $ 14,400
Payments under inventory repurchase agreements12,000 $ 11,800
Subsequent Event | Puget Sound Refinery
Ownership Interest By Project Type [Line Items]
Cash purchase price $ 350,000
Refinery area of land (in acres) | a850
Refinery capacity for barrels of crude oil per day (in barrels) | bbl149
Storage capacity acquired (in barrels) | bbl5,800
Subsequent Event | Puget Sound Refinery | Minimum
Ownership Interest By Project Type [Line Items]
Value of inventory transferred in acquisition $ 150,000
Subsequent Event | Puget Sound Refinery | Maximum
Ownership Interest By Project Type [Line Items]
Value of inventory transferred in acquisition $ 180,000
Cheyenne Refinery
Ownership Interest By Project Type [Line Items]
Decommissioning expense8,300
Severance costs $ 500
Tulsa, OK
Ownership Interest By Project Type [Line Items]
Number of refineries | petroleumRefinery2
Seattle, WA | Subsequent Event | Puget Sound Refinery
Ownership Interest By Project Type [Line Items]
Facility distance from main city (in miles) | mi80
Vancouver, BC (Canada) | Subsequent Event | Puget Sound Refinery
Ownership Interest By Project Type [Line Items]
Facility distance from main city (in miles) | mi90
Refining
Ownership Interest By Project Type [Line Items]
Goodwill $ 1,733,500
Lubricants and Specialty Products
Ownership Interest By Project Type [Line Items]
Severance costs7,800
Goodwill247,100
HEP
Ownership Interest By Project Type [Line Items]
Goodwill $ 312,900
HEP
Ownership Interest By Project Type [Line Items]
Percentage of ownership in variable interest entity57.00%
Goodwill $ 312,873 $ 312,873

Holly Energy Partners - Narrati

Holly Energy Partners - Narrative (Details) bbl in Thousands, $ in Millions1 Months Ended3 Months Ended59 Months Ended
Oct. 31, 2019USD ($)bblMar. 31, 2021USD ($)componentMar. 31, 2021USD ($)shares
Osage Pipeline
Holly Energy Partners Entity [Line Items]
Equity method investment, ownership percentage50.00%50.00%
Crushing Connect Joint Venture
Holly Energy Partners Entity [Line Items]
Barrels of crude oil per day | bbl160
Barrels of crude oil, value | bbl1,500
Crushing Connect Joint Venture | Minimum
Holly Energy Partners Entity [Line Items]
Expected construction costs $ 65
Crushing Connect Joint Venture | Maximum
Holly Energy Partners Entity [Line Items]
Expected construction costs $ 70
HEP
Holly Energy Partners Entity [Line Items]
Percentage of ownership in variable interest entity57.00%
Number of significant customers | component2
Concentration risk, percentage of total revenues80.00%
Minimum annualized payments under agreement $ 338.3
Common shares issued under offering program (in shares) | shares2,413,153
Proceeds from issuance of common shares under issuance program $ 82.3
HEP | Maximum
Holly Energy Partners Entity [Line Items]
Maximum value of limited partner interests available to issue and sell under offering program $ 200

Holly Energy Partners - Schedul

Holly Energy Partners - Schedule of Lease Income (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Operating lease revenues $ 4,447 $ 8,290
Sales-type lease interest income639 0
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 337 $ 0

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Sales and other revenues $ 3,504,293 $ 3,400,545
Mid-Continent
Disaggregation of Revenue [Line Items]
Sales and other revenues1,668,213 1,532,924
Southwest
Disaggregation of Revenue [Line Items]
Sales and other revenues768,063 734,175
Rocky Mountains
Disaggregation of Revenue [Line Items]
Sales and other revenues237,803 468,779
Northeast
Disaggregation of Revenue [Line Items]
Sales and other revenues172,298 159,824
Canada
Disaggregation of Revenue [Line Items]
Sales and other revenues181,946 182,653
Europe, Asia and Latin America
Disaggregation of Revenue [Line Items]
Sales and other revenues82,715 72,288
Transportation fuels
Disaggregation of Revenue [Line Items]
Sales and other revenues2,471,771 2,478,347
Specialty lubricant products
Disaggregation of Revenue [Line Items]
Sales and other revenues480,681 470,953
Asphalt, fuel oil and other products
Disaggregation of Revenue [Line Items]
Sales and other revenues158,586 201,343
Refined product
Disaggregation of Revenue [Line Items]
Sales and other revenues3,111,038 3,150,643
Excess crude oil revenues
Disaggregation of Revenue [Line Items]
Sales and other revenues356,300 199,779
Transportation and logistic services
Disaggregation of Revenue [Line Items]
Sales and other revenues25,258 26,426
Other revenues
Disaggregation of Revenue [Line Items]
Sales and other revenues11,697 23,697
Refining | Asphalt, fuel oil and other products
Disaggregation of Revenue [Line Items]
Sales and other revenues117,300 148,800
Lubricants and Specialty Products | Asphalt, fuel oil and other products
Disaggregation of Revenue [Line Items]
Sales and other revenues $ 41,300 $ 52,500

Revenues - Schedule Contract Li

Revenues - Schedule Contract Liabilities (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Change In Contract With Customer, Liability [Roll Forward]
Contract liabilities at beginning of period $ 6,738 $ 4,652
Increase7,730 10,419
Recognized as revenue(8,583)(9,712)
Contract liabilities at end of period $ 5,885 $ 5,359

Revenues - Schedule of Performa

Revenues - Schedule of Performance Obligations (Details) bbl in Thousands, $ in ThousandsMar. 31, 2021USD ($)bbl
Refined product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, sale of refined product barrels | bbl53,119
Third-Party Customer | HEP
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation revenues | $ $ 47,925
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Refined product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, sale of refined product barrels | bbl14,450
Satisfaction period9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Third-Party Customer | HEP
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation revenues | $ $ 16,360
Satisfaction period9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Refined product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, sale of refined product barrels | bbl14,176
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Third-Party Customer | HEP
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation revenues | $ $ 11,053
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Refined product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, sale of refined product barrels | bbl12,795
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Third-Party Customer | HEP
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation revenues | $ $ 9,000
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Refined product
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, sale of refined product barrels | bbl11,698
Satisfaction period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Third-Party Customer | HEP
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation revenues | $ $ 11,512
Satisfaction period

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Estimated Fair Values Of Debt Instruments (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Level 1
Debt Instrument [Line Items]
Assets: $ 1,927 $ 0
Liabilities:0 418
Level 2
Debt Instrument [Line Items]
Assets:518 275
Liabilities:76,633 23,560
Level 3
Debt Instrument [Line Items]
Assets:0 0
Liabilities:0 0
Carrying Amount
Debt Instrument [Line Items]
Assets:2,445 275
Liabilities:76,633 23,978
NYMEX futures contracts | Level 1
Debt Instrument [Line Items]
Assets:1,927
Liabilities:418
NYMEX futures contracts | Level 2
Debt Instrument [Line Items]
Assets:0
Liabilities:0
NYMEX futures contracts | Level 3
Debt Instrument [Line Items]
Assets:0
Liabilities:0
NYMEX futures contracts | Carrying Amount
Debt Instrument [Line Items]
Assets:1,927
Liabilities:418
Commodity price swaps | Level 1
Debt Instrument [Line Items]
Assets:0
Liabilities:0
Commodity price swaps | Level 2
Debt Instrument [Line Items]
Assets:36
Liabilities:359
Commodity price swaps | Level 3
Debt Instrument [Line Items]
Assets:0
Liabilities:0
Commodity price swaps | Carrying Amount
Debt Instrument [Line Items]
Assets:36
Liabilities:359
Commodity forward contracts | Level 1
Debt Instrument [Line Items]
Assets:0 0
Liabilities:0 0
Commodity forward contracts | Level 2
Debt Instrument [Line Items]
Assets:482 275
Liabilities:7,198 196
Commodity forward contracts | Level 3
Debt Instrument [Line Items]
Assets:0 0
Liabilities:0 0
Commodity forward contracts | Carrying Amount
Debt Instrument [Line Items]
Assets:482 275
Liabilities:7,198 196
Foreign currency forward contracts | Level 1
Debt Instrument [Line Items]
Liabilities:0 0
Foreign currency forward contracts | Level 2
Debt Instrument [Line Items]
Liabilities:26,136 23,005
Foreign currency forward contracts | Level 3
Debt Instrument [Line Items]
Liabilities:0 0
Foreign currency forward contracts | Carrying Amount
Debt Instrument [Line Items]
Liabilities:26,136 $ 23,005
RINs credit obligations | Level 1
Debt Instrument [Line Items]
Liabilities:0
RINs credit obligations | Level 2
Debt Instrument [Line Items]
Liabilities:43,299
RINs credit obligations | Level 3
Debt Instrument [Line Items]
Liabilities:0
RINs credit obligations | Carrying Amount
Debt Instrument [Line Items]
Liabilities: $ 43,299

Earnings Per Share - Schedule O

Earnings Per Share - Schedule Of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Earnings Per Share [Abstract]
Net income (loss) attributable to HollyFrontier stockholders $ 148,217 $ (304,623)
Participating securities' share in earnings2,042 0
Net income (loss) attributable to common shares $ 146,175 $ (304,623)
Average number of shares of common stock outstanding (in shares)162,479 161,873
Average number of shares of common stock outstanding assuming dilution (in shares)162,479 161,873
Basic earnings (loss) per share (in USD per share) $ 0.90 $ (1.88)
Diluted earnings (loss) per share (in USD per share) $ 0.90 $ (1.88)

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost attributable to share-based compensation plans $ 10.9 $ 4.8
HEP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost attributable to share-based compensation plans $ 0.7 $ 0.5
Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vesting period (in years)1 year
Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vesting period (in years)3 years
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vesting period (in years)3 years
Performance Share Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target0.00%
Performance Share Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target200.00%

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule Of Restricted Stock and Performance Share Activity (Details)3 Months Ended
Mar. 31, 2021$ / sharesshares
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants outstanding at beginning of period (in shares)2,057,045
Units granted (in shares)8,453
Units vested (in shares)(34,624)
Units forfeited (in shares)(86,459)
Grants outstanding at end of period (in shares)1,944,415
Weighted average grant date fair value of units granted (in USD per share) | $ / shares $ 34.91
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants outstanding at beginning of period (in shares)635,204
Units granted (in shares)0
Units vested (in shares)(3,565)
Units forfeited (in shares)(18,268)
Grants outstanding at end of period (in shares)613,371
Weighted average grant date fair value of units granted (in USD per share) | $ / shares $ 0

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Inventories
Crude oil $ 541,022 $ 451,967
Other raw materials and unfinished products401,247 260,495
Finished products613,158 595,696
Lower of cost or market reserve(118,825)(318,862)
Process chemicals36,684 35,006
Repair and maintenance supplies and other143,562 149,174
Total inventory $ 1,616,848 $ 1,173,476

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Inventory, Net [Abstract]
Inventory valuation reserves $ 118,825 $ 318,862
Lower of cost or market inventory valuation adjustment $ (200,037) $ 560,464

Environmental - Narrative (Deta

Environmental - Narrative (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Loss Contingencies [Line Items]
Environmental remediation costs $ 0.1 $ 1.6
Accrued environmental liability $ 114 $ 115
Period for environmental remediation (in years)30 years
Other Noncurrent Liabilities [Member]
Loss Contingencies [Line Items]
Accrued environmental liability $ 94.9 $ 94

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)Apr. 30, 2021Feb. 29, 2020Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement $ 1,350,000,000
Outstanding borrowing0
Letters of credit amount outstanding5,700,000
Principal1,750,000,000 $ 1,750,000,000
Fair value of financing arrangements48,800,000 43,900,000
Loss on early extinguishment of debt0 $ 25,915,000
Capitalized interest1,900,000 600,000
Base Rate | Subsequent Event | Minimum
Debt Instrument [Line Items]
Variable rate spread0.25%
Base Rate | Subsequent Event | Maximum
Debt Instrument [Line Items]
Variable rate spread1.125%
LIBOR | Subsequent Event | Minimum
Debt Instrument [Line Items]
Variable rate spread1.25%
LIBOR | Subsequent Event | Maximum
Debt Instrument [Line Items]
Variable rate spread2.125%
CDOR Rate | Subsequent Event | Minimum
Debt Instrument [Line Items]
Variable rate spread1.25%
CDOR Rate | Subsequent Event | Maximum
Debt Instrument [Line Items]
Variable rate spread2.125%
2.625% Senior Notes
Debt Instrument [Line Items]
Principal $ 350,000,000 350,000,000
Stated interest rate2.625%
4.500% Senior Notes
Debt Instrument [Line Items]
Principal $ 400,000,000 400,000,000
Stated interest rate4.50%
5.875% Senior Notes
Debt Instrument [Line Items]
Principal $ 1,000,000,000 1,000,000,000
Stated interest rate5.875%
HEP 5.000% Senior Notes
Debt Instrument [Line Items]
Effective interest rate on debt5.00%
Aggregate principal amount of senior note $ 500,000,000
HEP
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement $ 1,400,000,000
Outstanding borrowing896,000,000 913,500,000
Letters of credit amount outstanding0
Proceeds from line of credit73,000,000
Repayments of lines of credit $ 90,500,000
Effective interest rate on debt2.08%
Redemption cost522,500,000
Loss on early extinguishment of debt25,900,000
Debt redemption premium $ 22,500,000
Unamortized discount $ 3,400,000
HEP | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement $ 1,200,000,000
Maximum borrowing capacity with accordion feature1,700,000,000
HEP | Letter of Credit | Subsequent Event
Debt Instrument [Line Items]
Line of credit, maximum capacity available $ 50,000,000
HEP | HEP 5.000% Senior Notes
Debt Instrument [Line Items]
Principal $ 500,000,000 $ 500,000,000
Stated interest rate5.00%
HEP | 6.0% Senior Notes
Debt Instrument [Line Items]
Effective interest rate on debt6.00%
Principal $ 500,000,000

Debt - Carrying Amounts Of Long

Debt - Carrying Amounts Of Long-Term Debt (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Instrument [Line Items]
Principal $ 1,750,000 $ 1,750,000
Unamortized discount and debt issuance costs12,244 12,885
Total HollyFrontier long-term debt1,737,756 1,737,115
HEP Credit Agreement0
Total long-term debt3,126,091 3,142,718
Level 2
Debt Instrument [Line Items]
Senior notes1,908,586 1,903,867
2.625% Senior Notes
Debt Instrument [Line Items]
Principal $ 350,000 350,000
Stated interest rate2.625%
5.875% Senior Notes
Debt Instrument [Line Items]
Principal $ 1,000,000 1,000,000
Stated interest rate5.875%
4.500% Senior Notes
Debt Instrument [Line Items]
Principal $ 400,000 400,000
Stated interest rate4.50%
HEP
Debt Instrument [Line Items]
HEP Credit Agreement $ 896,000 913,500
Total long-term debt1,388,335 1,405,603
HEP | Level 2
Debt Instrument [Line Items]
Senior notes504,960 506,540
HEP | HEP 5.000% Senior Notes
Debt Instrument [Line Items]
Principal500,000 500,000
Unamortized discount and debt issuance costs $ 7,665 $ 7,897
Stated interest rate5.00%

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities- Location of Gain Loss in Income Statement (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Trading Activity, Gains and Losses, Net [Line Items]
Commodity contracts $ (4,642) $ (13,324)
Sales and other revenues3,504,293 3,400,545
Cost of products sold2,960,305 2,693,726
Operating expenses399,909 328,345
Reclassification out of Accumulated Other Comprehensive Income
Trading Activity, Gains and Losses, Net [Line Items]
Total reclassified into earnings(13,875)6,576
Commodity Contracts
Trading Activity, Gains and Losses, Net [Line Items]
Commodity contracts(4,642)(13,324)
Commodity Contracts | Reclassification out of Accumulated Other Comprehensive Income
Trading Activity, Gains and Losses, Net [Line Items]
Sales and other revenues(13,719)5,452
Cost of products sold0 1,830
Operating expenses $ (156) $ (706)

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Pre-tax effect on Income Due to Maturities and Fair Value Adjustments of Economic Hedges (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments $ (6,678) $ 68,376
Commodity Contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments(2,610)25,089
Commodity Contracts | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments2,675 9,812
Foreign currency contracts | Loss on foreign currency transactions
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments $ (6,743) $ 33,475

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Notional Contracts by Derivative Type (Details) bbl in Thousands, MMBTU in Thousands3 Months Ended
Mar. 31, 2021USD ($)MMBTUoztbbl
Derivatives Designated as Hedging Instruments | Natural gas price swaps - long
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in MMBTUs) | MMBTU1,350
Derivatives Designated as Hedging Instruments | Natural gas price swaps - long | 2021
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in MMBTUs) | MMBTU1,350
Derivatives Designated as Hedging Instruments | Natural gas price swaps - long | 2022
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in MMBTUs) | MMBTU0
Derivatives Designated as Hedging Instruments | Forward gasoline contracts - short
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)400
Derivatives Designated as Hedging Instruments | Forward gasoline contracts - short | 2021
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)400
Derivatives Designated as Hedging Instruments | Forward gasoline contracts - short | 2022
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)0
Derivatives Not Designated as Hedging Instruments | NYMEX futures (WTI) - short
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)805
Derivatives Not Designated as Hedging Instruments | NYMEX futures (WTI) - short | 2021
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)805
Derivatives Not Designated as Hedging Instruments | NYMEX futures (WTI) - short | 2022
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)0
Derivatives Not Designated as Hedging Instruments | Commodity forward contracts
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)315
Derivatives Not Designated as Hedging Instruments | Commodity forward contracts | 2021
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)315
Derivatives Not Designated as Hedging Instruments | Commodity forward contracts | 2022
Economic hedges by derivative type [Line Items]
Derivative nonmonetary notional amount (in barrels)0
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts
Economic hedges by derivative type [Line Items]
Derivative notional amount | $ $ 421,800,661
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | 2021
Economic hedges by derivative type [Line Items]
Derivative notional amount | $311,887,682
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | 2022
Economic hedges by derivative type [Line Items]
Derivative notional amount | $ $ 109,912,979
Derivatives Not Designated as Hedging Instruments | Commodity Contracts
Economic hedges by derivative type [Line Items]
Derivative notional amount (in troy ounce) | ozt40,767
Derivatives Not Designated as Hedging Instruments | Commodity Contracts | 2021
Economic hedges by derivative type [Line Items]
Derivative notional amount (in troy ounce) | ozt0
Derivatives Not Designated as Hedging Instruments | Commodity Contracts | 2022
Economic hedges by derivative type [Line Items]
Derivative notional amount (in troy ounce) | ozt40,767

Derivative Instruments and He_6

Derivative Instruments and Hedging Activities - Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Derivative [Line Items]
Net Assets Recognized in Balance Sheet $ 2,445 $ 275
Net Liabilities Recognized in Balance Sheet33,334 23,978
Prepayment and other
Derivative [Line Items]
Net Assets Recognized in Balance Sheet2,445 275
Accrued liabilities
Derivative [Line Items]
Net Liabilities Recognized in Balance Sheet33,334 23,978
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Gross Assets72 0
Gross Liabilities Offset in Balance Sheet(36)0
Net Assets Recognized in Balance Sheet36 0
Gross Liabilities6,828 359
Gross Assets Offset in Balance Sheet0 0
Net Liabilities Recognized in Balance Sheet6,828 359
Derivatives Designated as Hedging Instruments | Commodity price swaps
Derivative [Line Items]
Gross Assets72 0
Gross Liabilities Offset in Balance Sheet(36)0
Net Assets Recognized in Balance Sheet36 0
Gross Liabilities0 359
Gross Assets Offset in Balance Sheet0 0
Net Liabilities Recognized in Balance Sheet0 359
Derivatives Designated as Hedging Instruments | Commodity forward contracts
Derivative [Line Items]
Gross Assets0
Gross Liabilities Offset in Balance Sheet0
Net Assets Recognized in Balance Sheet0
Gross Liabilities6,828
Gross Assets Offset in Balance Sheet0
Net Liabilities Recognized in Balance Sheet6,828
Derivatives Not Designated as Hedging Instruments
Derivative [Line Items]
Gross Assets2,409 275
Gross Liabilities Offset in Balance Sheet0 0
Net Assets Recognized in Balance Sheet2,409 275
Gross Liabilities26,506 23,619
Gross Assets Offset in Balance Sheet0 0
Net Liabilities Recognized in Balance Sheet26,506 23,619
Derivatives Not Designated as Hedging Instruments | NYMEX futures contracts
Derivative [Line Items]
Gross Assets1,927 0
Gross Liabilities Offset in Balance Sheet0 0
Net Assets Recognized in Balance Sheet1,927 0
Gross Liabilities0 418
Gross Assets Offset in Balance Sheet0 0
Net Liabilities Recognized in Balance Sheet0 418
Derivatives Not Designated as Hedging Instruments | Commodity forward contracts
Derivative [Line Items]
Gross Assets482 275
Gross Liabilities Offset in Balance Sheet0 0
Net Assets Recognized in Balance Sheet482 275
Gross Liabilities370 196
Gross Assets Offset in Balance Sheet0 0
Net Liabilities Recognized in Balance Sheet370 196
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts
Derivative [Line Items]
Gross Assets0 0
Gross Liabilities Offset in Balance Sheet0 0
Net Assets Recognized in Balance Sheet0 0
Gross Liabilities26,136 23,005
Gross Assets Offset in Balance Sheet0 0
Net Liabilities Recognized in Balance Sheet $ 26,136 $ 23,005

Derivative Instruments and He_7

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Pre-tax net unrealized loss $ 5

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($) $ in Billions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Nov. 30, 2019
Stockholders' Equity Note [Abstract]
Authorized share repurchase $ 1
Common stock withheld from certain employees (in shares)350 24,914

Other Comprehensive Income (Los

Other Comprehensive Income (Loss) - Components And Allocated Tax Effects Of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before-Tax $ (11,435) $ (34,952)
Tax Expense (Benefit)(2,631)(8,029)
Other comprehensive loss(8,804)(26,923)
Net change in foreign currency translation adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before-Tax(5,863)(21,586)
Tax Expense (Benefit)(1,225)(4,627)
Other comprehensive loss(4,638)(16,959)
Net unrealized loss on hedging instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before-Tax(4,642)(13,324)
Tax Expense (Benefit)(1,169)(3,398)
Other comprehensive loss(3,473)(9,926)
Net change in pension and other post-retirement benefit obligations
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before-Tax(930)(42)
Tax Expense (Benefit)(237)(4)
Other comprehensive loss $ (693) $ (38)

Other Comprehensive Income (L_2

Other Comprehensive Income (Loss) - Other Comprehensive Income (Loss) Amounts Reclassified to Income Statement (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sales and other revenues $ (3,504,293) $ (3,400,545)
Cost of products sold2,960,305 2,693,726
Operating expenses399,909 328,345
Before tax(13,875)6,576
Income tax expense (benefit)28,307 162,166
Net income(182,850)293,286
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income(9,682)4,899
Reclassification out of Accumulated Other Comprehensive Income | Commodity price swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold0 1,830
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized loss on hedging instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax(13,875)6,576
Income tax expense (benefit)(3,497)1,677
Net income(10,378)4,899
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized loss on hedging instruments | Commodity price swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sales and other revenues(13,719)5,452
Cost of products sold0 1,830
Operating expenses(156)(706)
Reclassification out of Accumulated Other Comprehensive Income | Net change in pension and other post-retirement benefit obligations | Actuarial loss on pension plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other, net101 0
Income tax expense (benefit)25 0
Net income76 0
Reclassification out of Accumulated Other Comprehensive Income | Net change in pension and other post-retirement benefit obligations | Actuarial gain on post-retirement healthcare plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other, net838 0
Income tax expense (benefit)211 0
Net income627 0
Reclassification out of Accumulated Other Comprehensive Income | Net change in pension and other post-retirement benefit obligations | Retirement restoration plan
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other, net(9)0
Income tax expense (benefit)(2)0
Net income $ (7) $ 0

Other Comprehensive Income (L_3

Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Loss In Equity (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Stockholders' equity $ 5,838,046 $ 5,722,203 $ 6,110,478 $ 6,509,426
Foreign currency translation adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Stockholders' equity(1,956)2,682
Unrealized gain (loss) on defined benefit plans | Actuarial loss on pension plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Stockholders' equity(349)(248)
Unrealized gain (loss) on defined benefit plans | Actuarial gain on post-retirement healthcare plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Stockholders' equity10,718 11,310
Unrealized loss on hedging instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Stockholders' equity(3,755)(282)
Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Stockholders' equity $ 4,658 $ 13,462 $ (12,149) $ 14,774

Contingencies - Narrative (Deta

Contingencies - Narrative (Details) $ in MillionsFeb. 10, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Proceeds from legal settlements $ 51.5

Segment Information - Narrative

Segment Information - Narrative (Details)3 Months Ended
Mar. 31, 2021segment
Segment Reporting Information [Line Items]
Number of reportable segments3
Osage Pipeline
Segment Reporting Information [Line Items]
Equity method investment, ownership percentage50.00%
UNEV Pipeline
Segment Reporting Information [Line Items]
Equity method investment, ownership percentage75.00%

Segment Information - Schedule

Segment Information - Schedule Of Segment Reporting Information (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues from external customers $ 3,504,293 $ 3,400,545
Intersegment revenues0 0
Sales and other revenues3,504,293 3,400,545
Cost of products sold2,960,305 2,693,726
Lower of cost or market inventory valuation adjustment(200,037)560,464
Operating expenses399,909 328,345
Selling, general and administrative expenses81,975 87,737
Depreciation and amortization124,079 140,575
Income (loss) from operations138,062 (410,302)
Earnings of equity method investments1,763 1,714
Capital expenditures149,961 83,749
Cash and cash equivalents1,193,428 $ 1,368,318
Total assets11,934,817 11,506,864
Long-term debt3,126,091 3,142,718
Capital expenditures116,743 64,807
Corporate, Other and Eliminations
Segment Reporting Information [Line Items]
Revenues from external customers4 0
Intersegment revenues(164,953)(188,778)
Sales and other revenues(164,949)(188,778)
Cost of products sold(133,161)(166,405)
Lower of cost or market inventory valuation adjustment(509)0
Operating expenses4,936 (19,941)
Selling, general and administrative expenses4,957 5,073
Depreciation and amortization(7,130)4,369
Income (loss) from operations(34,042)(11,874)
Earnings of equity method investments0 0
Capital expenditures72,295 2,712
Cash and cash equivalents1,055,797 1,179,493
Total assets1,028,451 1,240,226
Long-term debt1,737,756 1,737,115
Refining | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers2,957,033 2,850,620
Intersegment revenues60,462 84,246
Sales and other revenues3,017,495 2,934,866
Cost of products sold2,761,943 2,468,751
Lower of cost or market inventory valuation adjustment(199,528)560,464
Operating expenses292,855 259,174
Selling, general and administrative expenses28,496 31,000
Depreciation and amortization88,082 90,179
Income (loss) from operations45,647 (474,702)
Earnings of equity method investments0 0
Capital expenditures40,361 53,014
Cash and cash equivalents7,090 3,106
Total assets6,781,110 6,203,847
Long-term debt0 0
Lubricants and Specialty Products | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers521,998 523,499
Intersegment revenues2,565 3,104
Sales and other revenues524,563 526,603
Cost of products sold331,523 391,380
Lower of cost or market inventory valuation adjustment0 0
Operating expenses60,753 54,131
Selling, general and administrative expenses45,553 48,962
Depreciation and amortization20,121 22,049
Income (loss) from operations66,613 10,081
Earnings of equity method investments0 0
Capital expenditures4,087 9,081
Cash and cash equivalents110,788 163,729
Total assets1,875,026 1,864,313
Long-term debt0 0
HEP | Operating Segments
Segment Reporting Information [Line Items]
Revenues from external customers25,258 26,426
Intersegment revenues101,926 101,428
Sales and other revenues127,184 127,854
Cost of products sold0 0
Lower of cost or market inventory valuation adjustment0 0
Operating expenses41,365 34,981
Selling, general and administrative expenses2,969 2,702
Depreciation and amortization23,006 23,978
Income (loss) from operations59,844 66,193
Earnings of equity method investments1,763 1,714
Capital expenditures33,218 $ 18,942
Cash and cash equivalents19,753 21,990
Total assets2,250,230 2,198,478
Long-term debt1,388,335 $ 1,405,603
Corporate and Other | Renewable diesel units
Segment Reporting Information [Line Items]
Operating expenses12,800
Capital expenditures $ 70,200