

Condensed Consolidating Balance Sheet
December 31, 2016	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	706,922	$	3,657	$	—		$	710,579
Marketable securities	424,148		—		—			424,148
Accounts receivable, net	487,693		50,408		(58,902		)	479,199
Inventories	1,134,274		1,402		—			1,135,676
Income taxes receivable	68,371		—		—			68,371
Prepayments and other	37,379		1,486		(5,829		)	33,036
Total current assets	2,858,787		56,953		(64,731		)	2,851,009

Properties, plants and equipment, net	2,874,041		1,365,568		(231,161		)	4,008,448
Intangibles and other assets	2,077,683		497,966		555			2,576,204
Total assets	$	7,810,511	$	1,920,487	$	(295,337	)	$	9,435,661

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	967,347	$	26,942	$	(58,902	)	$	935,387
Accrued liabilities	115,878		37,793		(5,829		)	147,842
Total current liabilities	1,083,225		64,735		(64,731		)	1,083,229

Long-term debt	991,225		1,243,912		—			2,235,137
Liability to HEP	208,603		—		(208,603		)	—
Deferred income tax liabilities	619,905		509		—			620,414
Other long-term liabilities	132,515		62,971		(590		)	194,896

Investment in HEP	136,435		—		(136,435		)	—
Equity – HollyFrontier	4,638,603		454,803		(412,012		)	4,681,394
Equity – noncontrolling interest	—		93,557		527,034			620,591
Total liabilities and equity	$	7,810,511	$	1,920,487	$	(295,337	)	$	9,435,661



Condensed Consolidating Balance Sheet
December 31, 2015	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	51,520	$	15,013	$	—		$	66,533
Marketable securities	144,019		—		—			144,019
Accounts receivable, net	355,020		41,075		(44,117		)	351,978
Inventories	839,897		1,972		—			841,869
Prepayments and other	48,288		3,082		(7,704		)	43,666
Total current assets	1,438,744		61,142		(51,821		)	1,448,065

Properties, plants and equipment, net	3,027,614		1,333,563		(245,515		)	4,115,662
Intangibles and other assets	2,410,879		417,574		(3,881		)	2,824,572
Total assets	$	6,877,237	$	1,812,279	$	(301,217	)	$	8,388,299

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	738,024	$	22,583	$	(44,117	)	$	716,490
Income tax payable	8,142		—		—			8,142
Accrued liabilities	117,346		26,341		(7,704		)	135,983
Total current liabilities	863,512		48,924		(51,821		)	860,615

Long-term debt	31,288		1,008,752		—			1,040,040
Liability to HEP	220,998		—		(220,998		)	—
Deferred income tax liabilities	497,475		431		—			497,906
Other long-term liabilities	125,614		59,376		(5,025		)	179,965

Investment in HEP	129,961		—		(129,961		)	—
Equity – HollyFrontier	5,008,389		600,367		(355,341		)	5,253,415
Equity – noncontrolling interest	—		94,429		461,929			556,358
Total liabilities and equity	$	6,877,237	$	1,812,279	$	(301,217	)	$	8,388,299



Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2016	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	10,467,358		$	402,043		$	(333,701	)	$	10,535,700
Operating costs and expenses:
Cost of products sold	9,062,757			—			(296,830		)	8,765,927
Lower of cost or market valuation inventory adjustment	(291,938		)	—			—			(291,938		)
Operating expenses	928,483			123,985			(33,629		)	1,018,839
General and administrative	113,117			12,531						125,648
Depreciation and amortization	308,569			68,811			(14,353		)	363,027
Goodwill and asset impairment	654,084			—			—			654,084
Total operating costs and expenses	10,775,072			205,327			(344,812		)	10,635,587
Income (loss) from operations	(307,714		)	196,716			11,111			(99,887		)
Other income (expense):
Earnings of equity method investments	100,322			14,213			(100,322		)	14,213
Interest income (expense)	(8,355		)	(52,112		)	(9,234		)	(69,701		)
Loss on early extinguishment of debt	(8,718		)	—			—			(8,718		)
Other, net	(8,118		)	677			—			(7,441		)
	75,131			(37,222		)	(109,556		)	(71,647		)
Income (loss) before income taxes	(232,583		)	159,494			(98,445		)	(171,534		)
Income tax provision	19,126			285			—			19,411
Net income (loss)	(251,709		)	159,209			(98,445		)	(190,945		)
Less net income attributable to noncontrolling interest	(34		)	10,006			59,536			69,508
Net income (loss) attributable to HollyFrontier stockholders	$	(251,675	)	$	149,203		$	(157,981	)	$	(260,453	)
Comprehensive income (loss) attributable to HollyFrontier stockholders	$	(236,908	)	$	149,161		$	(157,939	)	$	(245,686	)



Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2015	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	13,171,846		$	358,875		$	(292,801	)	$	13,237,920
Operating costs and expenses:
Cost of products sold	10,525,610			—			(286,392		)	10,239,218
Lower of cost or market inventory valuation adjustment	226,979			—			—			226,979
Operating expenses	958,103			105,554			(3,284		)	1,060,373
General and administrative	108,290			12,556			—			120,846
Depreciation and amortization	298,779			61,690			(14,318		)	346,151
Total operating costs and expenses	12,117,761			179,800			(303,994		)	11,993,567
Income from operations	1,054,085			179,075			11,193			1,244,353
Other income (expense):
Earnings of equity method investments	78,969			4,803			(87,510		)	(3,738		)
Interest income (expense)	6,098			(36,892		)	(9,285		)	(40,079		)
Loss on early extinguishment of debt	(1,370		)	—			—			(1,370		)
Other, net	8,916			486			—			9,402
	92,613			(31,603		)	(96,795		)	(35,785		)
Income before income taxes	1,146,698			147,472			(85,602		)	1,208,568
Income tax provision	405,832			228			—			406,060
Net income	740,866			147,244			(85,602		)	802,508
Less net income attributable to noncontrolling interest	(30		)	11,120			51,317			62,407
Net income attributable to HollyFrontier stockholders	$	740,896		$	136,124		$	(136,919	)	$	740,101
Comprehensive income attributable to HollyFrontier stockholders	$	708,847		$	136,217		$	(137,012	)	$	708,052



Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2014	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	19,708,328		$	332,626		$	(276,627	)	$	19,764,327
Operating costs and expenses:
Cost of products sold	17,500,601			—			(272,216		)	17,228,385
Lower of cost or market inventory valuation adjustment	397,478			—			—			397,478
Operating expenses	1,040,187			106,185			(1,432		)	1,144,940
General and administrative	103,785			10,824			—			114,609
Depreciation and amortization	316,786			60,911			(14,316		)	363,381
Total operating costs and expenses	19,358,837			177,920			(287,964		)	19,248,793
Income from operations	349,491			154,706			11,337			515,534
Other income (expense):
Earnings of equity method investments	65,375			2,987			(70,369		)	(2,007		)
Interest expense	6,221			(36,098		)	(9,339		)	(39,216		)
Loss on early extinguishment of debt	—			(7,677		)	—			(7,677		)
Other, net	866			—			—			866
	72,462			(40,788		)	(79,708		)	(48,034		)
Income before income taxes	421,953			113,918			(68,371		)	467,500
Income tax provision	140,937			235			—			141,172
Net income	281,016			113,683			(68,371		)	326,328
Less net income attributable to noncontrolling interest	(25		)	8,288			36,773			45,036
Net income attributable to HollyFrontier stockholders	$	281,041		$	105,395		$	(105,144	)	$	281,292
Comprehensive income attributable to HollyFrontier stockholders	$	308,113		$	105,434		$	(105,183	)	$	308,364



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities		$	460,918		$	242,761		$	(101,408	)	$	602,271

Cash flow from investing activities
Additions to properties, plants and equipment		(372,195		)	—			—			(372,195		)
Additions to properties, plants and equipment – HEP		—			(103,823		)	(3,772		)	(107,595		)
Purchase of equity method investment		—			(42,627		)	—			(42,627		)
Proceeds from sale of assets		422			427			—			849
Purchases of marketable securities		(546,632		)	—			—			(546,632		)
Sales and maturities of marketable securities		266,603			—			—			266,603
		(651,802		)	(146,023		)	(3,772		)	(801,597		)
Cash flows from financing activities
Net repayments under credit agreement – HEP		—			(159,000		)	—			(159,000		)
Net proceeds from issuance of senior notes - HFC		992,550			—			—			992,550
Net proceeds from issuance of senior notes - HEP		—			394,000			—			394,000
Net proceeds from issuance of term loan		350,000			—			—			350,000
Repayment of term loan		(350,000		)	—			—			(350,000		)
Proceeds from issuance of common units		—			125,870			—			125,870
Purchase of treasury stock		(133,430		)	—			—			(133,430		)
Dividends		(234,004		)	—			—			(234,004		)
Distributions to noncontrolling interest		—			(197,787		)	105,180			(92,607		)
Repayment of financing obligation		—			(39,500		)	—			(39,500		)
Distribution from HEP		278,000			(278,000		)	—			—
Contribution from general partner		(53,839		)	53,839			—			—
Other, net		(2,991		)	(7,516		)	—			(10,507		)
		846,286			(108,094		)	105,180			843,372
Cash and cash equivalents
Increase (decrease) for the period		655,402			(11,356		)	—			644,046
Beginning of period		51,520			15,013			—			66,533
End of period		$	706,922		$	3,657		$	—		$	710,579



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2015	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	839,106		$	230,940		$	(90,420	)	$	979,626

Cash flows from investing activities:
Additions to properties, plants and equipment	(483,034		)	—			—			(483,034		)
Additions to properties, plants and equipment – HEP	—			(193,121		)	—			(193,121		)
Purchase of equity method investment	—			(55,032		)	—			(55,032		)
Proceeds from sale of assets	17,985			1,279			—			19,264
Purchases of marketable securities	(509,338		)	—			—			(509,338		)
Sales and maturities of marketable securities	839,513			—			—			839,513
	(134,874		)	(246,874		)	—			(381,748		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			141,000			—			141,000
Redemption of senior notes - HFC	(155,156		)	—			—			(155,156		)
Purchase of treasury stock	(742,823		)	—			—			(742,823		)
Dividends	(246,908		)	—			—			(246,908		)
Distributions to noncontrolling interest	—			(173,688		)	90,420			(83,268		)
Distribution from HEP	62,000			(62,000		)	—			—
Contribution from general partner	(128,476		)	128,476			—			—
Other, net	(6,504		)	(5,671		)	—			(12,175		)
	(1,217,867		)	28,117			90,420			(1,099,330		)
Cash and cash equivalents
Increase (decrease) for the period:	(513,635		)	12,183			—			(501,452		)
Beginning of period	565,155			2,830			—			567,985
End of period	$	51,520		$	15,013		$	—		$	66,533



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2014	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	653,570		$	185,519		$	(80,493	)	$	758,596

Cash flows from investing activities:
Additions to properties, plants and equipment	(366,135		)	—			—			(366,135		)
Additions to properties, plants and equipment – HEP	—			(198,686		)	—			(198,686		)
Proceeds from sale of assets	16,633			—			—			16,633
Purchases of marketable securities	(1,025,602		)	—			—			(1,025,602		)
Sales and maturities of marketable securities	1,276,447			—			—			1,276,447
Other, net	5,021			—			—			5,021
	(93,636		)	(198,686		)	—			(292,322		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			208,000			—			208,000
Redemptions of senior notes	—			(156,188		)	—			(156,188		)
Purchase of treasury stock	(158,847		)	—			—			(158,847		)
Contribution from general partner	(120,111		)	120,111			—			—
Dividends	(647,197		)	—			—			(647,197		)
Distributions to noncontrolling interest	—			(158,695		)	80,493			(78,202		)
Excess tax benefit from equity-based compensation	2,040			—			—			2,040
Other, net	(4,415		)	(3,583		)	—			(7,998		)
	(928,530		)	9,645			80,493			(838,392		)
Cash and cash equivalents
Decrease for the period:	(368,596		)	(3,522		)	—			(372,118		)
Beginning of period	933,751			6,352			—			940,103
End of period	$	565,155		$	2,830		$	—		$	567,985