HollyFrontier (HFC) Expects LOCM Inventory Adjustment on Lower Crude Prices

HollyFrontier (NYSE: HFC) announced its expectation of a lower of cost or market (LOCM) Inventory adjustment resulting in a pre-tax income statement charge between $350 and $400 million for the year due to more than a 45% decline in crude price experienced in the fourth quarter 2014. The actual LOCM adjustment will be determined considering many factors including any change in crude price that may occur prior to the release of fourth quarter earnings. HollyFrontier also announces an update on the status of the El Dorado Refinery turnaround. Planned maintenance at the El Dorado Refinery extended 10 days longer than expected and included discovery of significant mechanical repairs needed in the Gas Oil Hydrotreater. This prompted a shift towards a lighter and sweeter crude slate post-turnaround and limited the Company’s overall crude charge in the quarter to 359,000 BPD.

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