By a News Reporter-Staff News Editor at Energy Weekly News -- HollyFrontier Corporation (NYSE:HFC) ("HollyFrontier" or the "Company") reported second quarter net income attributable to HollyFrontier stockholders of $176.4 million or $0.89 per diluted share for the quarter ended June 30, 2014, compared to $257.0 million or $1.27 per diluted share for the quarter ended June 30, 2013.
HollyFrontier also announced that its Board of Directors declared a special cash dividend in the amount of $0.50 per share, payable on September 15, 2014 to holders of record of common stock on August 27, 2014. In addition, the Board of Directors approved a regular quarterly dividend of $0.32 per share. This dividend will be paid on September 25, 2014 to holders of record of common stock on September 2, 2014.
For the second quarter, net income attributable to our stockholders decreased by $80.6 million compared to the same period of 2013, principally reflecting lower second quarter refining margins. Refinery gross margins were $14.54 per produced barrel, a 28% decrease compared to $20.28 for the second quarter of 2013. Production levels averaged approximately 463,000 barrels per day ("BPD") and crude oil charges averaged approximately 439,000 BPD for the current quarter. Operating expenses for the quarter were $271.7 million or $5.69 per barrel compared to $277.5 million or $6.09 per barrel for the second quarter of last year.
HollyFrontier's President & CEO, Mike Jennings, commented, "We are pleased with our consistent refining operations and financial results for the quarter. Although refined product margins decreased compared to the prior year quarter, our margins are healthy and we expect further growth in North American crude oil production to continue to provide us with a structural crude advantage. Looking forward, this crude oil dynamic should favorably affect our operating margins and support our capital allocation strategy of providing significant cash distributions to our shareholders while also investing opportunistically in our growth."
For the second quarter of 2014, net cash provided by operations totaled $326.6 million. During the period, we declared $0.32 regular (a 7% increase from our previous regular dividend of $0.30) and $0.50 special dividends to shareholders totaling approximately $163.0 million. At June 30, 2014, our combined balance of cash and short-term investments totaled $1.8 billion and our consolidated debt was $1.0 billion. Our debt, exclusive of Holly Energy Partners' debt, which is nonrecourse to HollyFrontier, was $188.6 million at June 30, 2014. We had no cash borrowings or outstanding principal under our credit facility during the quarter.
During the second quarter of 2014, we wrote down several assets, primarily at our Navajo, Cheyenne and Tulsa refineries, to the estimated net realizable value resulting in pre-tax charges of $31.0 million. These charges resulted from our decision to sell, cease operating or no longer use certain assets.
The Company has scheduled a webcast conference call for today, August 6, 2014, at 8:30 AM Eastern Time to discuss second quarter financial results. This webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1038354. An audio archive of this webcast will be available using the above noted link through August 20, 2014.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier operates through its subsidiaries a 135,000 barrels per stream day ("bpsd") refinery located in El Dorado, Kansas, two refinery facilities with a combined capacity of 125,000 bpsd located in Tulsa, Oklahoma, a 100,000 bpsd refinery located in Artesia, New Mexico, a 52,000 bpsd refinery located in Cheyenne, Wyoming and a 31,000 bpsd refinery in Woods Cross, Utah. HollyFrontier markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. A subsidiary of HollyFrontier also owns a 39% interest (including the general partner interest) in Holly Energy Partners, L.P.
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