The following is a “safeharbor” statementunder the Private Securities Litigation Reform Act of 1995: The statements made during the course of this presentation relating to matters that are not historical factsare “forward-looking statements”based on management’sbeliefs and assumptions using currentlyavailable informationand expectations as of the date hereof,are not guaranteesof futureperformanceand involve certain risks and uncertainties,including those contained in our filings with the Securities and Exchange Commission. Although we believe that the expectations reflectedin these forward-looking statementsare reasonable, we cannot assure you that our expectations will prove correct.Therefore,actual outcomes and results could materially differfromwhat is expressed, impliedor forecastin such statements.Any differencescould be caused by a number of factors,including, but not limited to, risks and uncertainties with respect to the actions of actual or potential competitive suppliers of refined petroleum products in HollyFrontier’s markets,the demand forand supply of crude oil and refinedproducts,the spread between marketprices forrefined products and marketprices forcrude oil,the possibilityof constraints on the transportation of refined products, the possibility of inefficiencies, curtailments or shutdowns in refineryoperations or pipelines, effectsof governmentaland environmental regulations and policies, the availability and cost of financing to HollyFrontier, the effectiveness of HollyFrontier’s capital investments and marketing strategies, HollyFrontier’s efficiency in carrying out constructionprojects,theability ofHollyFrontier toacquirerefinedproductoperationsorpipeline andterminaloperations on acceptable termsand to integrateany recent and futureacquired operations, includingPCLI, the possibilityof terroristattacksandtheconsequencesofanysuchattacks,generaleconomicconditions andotherfinancial, operational and legal risks and uncertainties detailed from time to time in HollyFrontier’s Securities and Exchange Commission filings.Theforward-lookingstatementsspeakonlyasofthedatemadeand,otherthanasrequiredbylaw, we undertake no obligation to publicly update or revise any forward-lookingstatements,whether as a result of new information,future events or otherwise.

Hydrocracker Bottoms(HCB)

•    yproductofhydrocrackingVacuumGasoil,HCBisawaxyyellowviscousoil

•    HCBs furtherprocessedthroughCatalyticDewaxing Unit(CDW)àwhich transformswaxbycatalytic process

-      Sourcing:EuropeanandNorthAmericanimports&domesticrefineryby-product

        -    Pricing:HCBsgenerallypriceoffofEuropeandiesel crack

Purchased 3rdPartyBase OilsandAdditives

•    Usedinblending&packagingprocess

•    Abilitytoprocessandupgrade3rdpartyBaseOilstoextendtheproductionpool

---

---

PURPOSEOF BASE OIL

•    BaseOilisthefoundationonwhichalllubricantsarebuilt

•    80%ofalubricantismadeupofBaseOil

•    Additives areblendedwithBaseOilstomakefinished lubricants

•    Infinishedlubricants,BaseOilprovides:

-      Lubrication,typicallymeasuredbyviscosity

-      Amediuminwhichperformance-enhancing additives can either dissolve or suspend

•    Impuritieshindertheperformanceofthefinallubricant, not allowing the additives to work at their best

-      Impuritiesreducelifeoflubricant

-      Impuritiescausemorewearonparts

•    The purertheBaseOil,thebetterthefinallubricant performance

BASE OIL CATEGORIES

•    Group I: Produced by separation processes such as distillation, solvent extraction,and solvent dewaxing.This processproducesBaseOilsofsuperiorinnatesolvencyas well as the much-coveted bright stock.HollyFrontier produces a higher quality Group I Base Oil slate, as compared to industry standards1

•   
GroupII&II+:Processedthroughseverehydrotreatingand hydrocrackingtomakeBaseOilswhich containlower levels of aromatics, sulfur, and nitrogen compared to Group I stocks

•    Group III & III+: Highest quality Base Oil, severely hydrocracked under higher pressure andtemperature. ViscosityIndexabove120allowing formulatedlubricantsto maintain properties longer, enabling improved fuel efficiency in low viscosity motor oils and providing energy efficiency in multi-grade industrial lubricants

Add Comment

Replying to: [Cancel]

Recommend It Not Recommend It

5 Star 4 Star 3 Star 2 Star 1 Star

Remaining characters: 500

  Submit comment