Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information [Abstract]

Segment Information

Segment Information

Our operations are organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Consolidations and Eliminations.

The Refining segment represents the operations of the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and NK 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 regions of the United States. Additionally, the Refining segment includes specialty lubricant products produced at our Tulsa Refineries that are marketed throughout North America and are distributed in Central and South America. NK Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

The HEP segment includes all of the operations of HEP, a consolidated VIE, which owns and operates logistics assets consisting of petroleum product and crude oil pipelines and terminal, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% interest in UNEV (a consolidated subsidiary of HEP) and a 25% interest in the SLC Pipeline. 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, 2013.

	Refining		HEP		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended September 30, 2014
Sales and other revenues	$	5,303,053	$	82,141	$	181		$	(67,820	)	$	5,317,555
Depreciation and amortization	$	63,109	$	15,078	$	2,965		$	(207	)	$	80,945
Income (loss) from operations	$	292,132	$	39,341	$	(28,313	)	$	(549	)	$	302,611
Capital expenditures	$	98,115	$	22,875	$	3,374		$	—		$	124,364
Three Months Ended September 30, 2013
Sales and other revenues	$	5,314,954	$	77,625	$	257		$	(65,714	)	$	5,327,122
Depreciation and amortization	$	61,553	$	19,042	$	1,739		$	(207	)	$	82,127
Income (loss) from operations	$	144,508	$	34,481	$	(28,701	)	$	(538	)	$	149,750
Capital expenditures	$	92,918	$	14,238	$	8,230		$	—		$	115,386
Nine Months Ended September 30, 2014
Sales and other revenues	$	15,440,047	$	244,177	$	1,802		$	(204,818	)	$	15,481,208
Depreciation and amortization	$	210,490	$	45,739	$	7,275		$	(621	)	$	262,883
Income (loss) from operations	$	835,555	$	117,670	$	(81,670	)	$	(1,603	)	$	869,952
Capital expenditures	$	290,392	$	61,657	$	17,084		$	—		$	369,133
Nine Months Ended September 30, 2013
Sales and other revenues	$	15,294,261	$	229,230	$	1,054		$	(190,786	)	$	15,333,759
Depreciation and amortization	$	172,166	$	48,410	$	4,426		$	(621	)	$	224,381
Income (loss) from operations	$	1,145,487	$	102,347	$	(87,319	)	$	(1,564	)	$	1,158,951
Capital expenditures	$	231,416	$	31,099	$	23,674		$	—		$	286,189

	Refining		HEP		Corporate and Other		Consolidations and Eliminations			Consolidated Total
	(In thousands)
September 30, 2014
Cash, cash equivalents and total investments in marketable securities	$	3,501	$	1,667	$	1,474,338	$	—		$	1,479,506
Total assets	$	7,476,849	$	1,418,780	$	1,593,308	$	(307,167	)	$	10,181,770
Long-term debt	$	—	$	851,416	$	187,980	$	—		$	1,039,396
December 31, 2013
Cash, cash equivalents and total investments in marketable securities	$	1,860	$	6,352	$	1,657,051	$	—		$	1,665,263
Total assets	$	7,094,558	$	1,413,908	$	1,881,119	$	(332,846	)	$	10,056,739
Long-term debt	$	—	$	807,630	$	189,889	$	—		$	997,519

HEP segment revenues from external customers were $14.7 million and $12.2 million for the three months ended September 30, 2014 and 2013, respectively, and $40.4 million and $37.1 million for the nine months ended September 30, 2014 and 2013, respectively.