10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________________

FORM 10-Q

_________________________________________________________________

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from    __________   to   ____________         

Commission File Number 1-3876

 _________________________________________________________________

HOLLYFRONTIER CORPORATION

(Exact name of registrant as specified in its charter)

_________________________________________________________________

Delaware	75-1056913
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2828 N. Harwood, Suite 1300 Dallas, Texas	75201
(Address of principal executive offices)	(Zip Code)

(214) 871-3555

(Registrant’s telephone number, including area code)

_________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

_________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	¨	Non-accelerated filer	¨	Smaller reporting company	¨
Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

177,279,134 shares of Common Stock, par value $.01 per share, were outstanding on July 31, 2017.

HOLLYFRONTIER CORPORATION

INDEX

	Page
Forward-Looking Statements	3
PART I. FINANCIAL INFORMATION
Definitions	4
Item 1. Financial Statements
Consolidated Balance Sheets
June 30, 2017 (Unaudited) and December 31, 2016	5
Consolidated Statements of Income (Unaudited)
Three and Six Months Ended June 30, 2017 and 2016	6
Consolidated Statements of Comprehensive Income (Unaudited)
Three and Six Months Ended June 30, 2017 and 2016	7
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended June 30, 2017 and 2016	8
Notes to Consolidated Financial Statements (Unaudited)	9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3. Quantitative and Qualitative Disclosures About Market Risk	49
Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles	49
Item 4. Controls and Procedures	52
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	54
Item 1A. Risk Factors	55
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 6. Exhibits	55
Signatures	56
Index to Exhibits	57

FORWARD-LOOKING STATEMENTS

References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In this document, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. This document contains certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries.

This Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the federal securities laws. All statements, other than statements of historical fact included in this Form 10-Q, including, but not limited to, those under “Results of Operations,” “Liquidity and Capital Resources” and “Risk Management” in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and those in Part II, Item 1 “Legal Proceedings” are forward-looking statements. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. These statements are based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. All statements concerning our expectations for future results of operations are based on forecasts for our existing operations and do not include the potential impact of any future acquisitions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. Any differences could 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 our markets;

• the demand for and supply of crude oil and refined products;

• the spread between market prices for refined products and market prices for crude oil;

• the possibility of constraints on the transportation of refined products;

• the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines;

• effects of governmental and environmental regulations and policies;

• the availability and cost of our financing;

• the effectiveness of our capital investments and marketing strategies;

• our efficiency in carrying out construction projects;

• our ability to acquire refined product operations or pipeline and terminal operations on acceptable terms and to integrate any recent or future acquired operations, including Petro-Canada Lubricants Inc.;

• the possibility of terrorist attacks and the consequences of any such attacks;

• general economic conditions; and

• other financial, operational and legal risks and uncertainties detailed from time to time in our SEC filings.

Cautionary statements identifying important factors that could cause actual results to differ materially from our expectations are set forth in this Form 10-Q, including without limitation, the forward-looking statements that are referred to above. This summary discussion should be read in conjunction with the discussion of the known material risk factors and other cautionary statements under the heading “Risk Factors” included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and in conjunction with the discussion in this Form 10-Q in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “Liquidity and Capital Resources.” All forward-looking statements included in this Form 10-Q and all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

3

PART I. FINANCIAL INFORMATION

DEFINITIONS

Within this report, the following terms have these specific meanings:

“BPD” means the number of barrels per calendar day of crude oil or petroleum products.

“BPSD” means the number of barrels per stream day (barrels of capacity in a 24 hour period) of crude oil or petroleum products.

“Biodiesel” means a clean alternative fuel produced from renewable biological resources.

“Black wax crude oil” is a low sulfur, low gravity crude oil produced in the Uintah Basin in Eastern Utah that has certain characteristics that require specific facilities to transport, store and refine into transportation fuels.

“Cracking” means the process of breaking down larger, heavier and more complex hydrocarbon molecules into simpler and lighter molecules.

“Crude oil distillation” means the process of distilling vapor from liquid crudes, usually by heating, and condensing the vapor slightly above atmospheric pressure turning it back to liquid in order to purify, fractionate or form the desired products.

“Ethanol” means a high octane gasoline blend stock that is used to make various grades of gasoline.

“FCC,” or fluid catalytic cracking, means a refinery process that breaks down large complex hydrocarbon molecules into smaller more useful ones using a circulating bed of catalyst at relatively high temperatures.

“Hydrodesulfurization” means to remove sulfur and nitrogen compounds from oil or gas in the presence of hydrogen and a catalyst at relatively high temperatures.

“Hydrogen plant” means a refinery unit that converts natural gas and steam to high purity hydrogen, which is then used in the hydrodesulfurization, hydrocracking and isomerization processes.

“Isomerization” means a refinery process for rearranging the structure of C5/C6 molecules without changing their size or chemical composition and is used to improve the octane of C5/C6 gasoline blendstocks.

“LPG” means liquid petroleum gases.

“Lubricant” or “lube” means a solvent neutral paraffinic product used in commercial heavy duty engine oils, passenger car oils and specialty products for industrial applications such as heat transfer, metalworking, rubber and other general process oil.

“MSAT2” means Control of Hazardous Air Pollutants from Mobile Sources, a rule issued by the U.S. Environmental Protection Agency to reduce hazardous emissions from motor vehicles and motor vehicle fuels.

“MMBTU” means one million British thermal units.

“Refinery gross margin” means the difference between average net sales price and average product costs per produced barrel of refined products sold. This does not include the associated depreciation and amortization costs.

“RINs” means renewable identification numbers and refers to serial numbers assigned to credits generated from biodiesel production under the Environmental Protection Agency’s Renewable Fuel Standard 2 (“RFS2”) regulations that mandate increased volumes of renewable fuels blended into the nation’s fuel supply. In lieu of blending, refiners may purchase these transferable credits in order to comply with the regulations.

“Sour crude oil” means crude oil containing quantities of sulfur greater than 0.4 percent by weight, while “sweet crude oil” means crude oil containing quantities of sulfur equal to or less than 0.4 percent by weight.

“Vacuum distillation” means the process of distilling vapor from liquid crudes, usually by heating, and condensing the vapor below atmospheric pressure turning it back to a liquid in order to purify, fractionate or form the desired products.

“WTI” means West Texas Intermediate and is a grade of crude oil used as a common benchmark in oil pricing. WTI is a sweet crude oil and has a relatively low density.

Item 1. Financial Statements

HOLLYFRONTIER CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	June 30, 2017			December 31, 2016
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents (HEP: $16,339 and $3,657, respectively)	$	460,326		$	710,579
Marketable securities	—			424,148
Total cash, cash equivalents and short-term marketable securities	460,326			1,134,727
Accounts receivable: Product and transportation (HEP: $8,131 and $7,846, respectively)	563,905			449,036
Crude oil resales	38,445			30,163
	602,350			479,199
Inventories: Crude oil and refined products	1,064,178			970,361
Materials, supplies and other (HEP: $1,470 and $1,402, respectively)	127,795			165,315
	1,191,973			1,135,676
Income taxes receivable	1,428			68,371
Prepayments and other (HEP: $1,652 and $1,486, respectively)	37,686			33,036
Total current assets	2,293,763			2,851,009
Properties, plants and equipment, at cost (HEP: $1,719,143 and $1,702,703, respectively)	6,118,506			5,546,856
Less accumulated depreciation (HEP: $(371,867) and $(337,135), respectively)	(1,674,948		)	(1,538,408		)
	4,443,558			4,008,448
Other assets: Turnaround costs	251,337			217,340
Goodwill (HEP: $288,991 and $288,991, respectively)	2,205,490			2,022,463
Intangibles and other (HEP: $204,485 and $208,975, respectively)	448,887			336,401
	2,905,714			2,576,204
Total assets	$	9,643,035		$	9,435,661
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable (HEP: $8,912 and $10,518, respectively)	$	1,009,135		$	935,387
Income taxes payable	24,427			—
Accrued liabilities (HEP: $31,680 and $37,793, respectively)	186,886			147,842
Total current liabilities	1,220,448			1,083,229
Long-term debt (HEP: $1,236,739 and $1,243,912, respectively)	2,227,951			2,235,137
Deferred income taxes (HEP: $649 and $509, respectively)	745,050			620,414
Other long-term liabilities (HEP: $61,312 and $62,971, respectively)	207,502			194,896
Equity:
HollyFrontier stockholders’ equity:
Preferred stock, $1.00 par value – 5,000,000 shares authorized; none issued	—			—
Common stock $.01 par value – 320,000,000 shares authorized; 256,009,012 and 255,962,866 shares issued as of June 30, 2017 and December 31, 2016, respectively	2,560			2,560
Additional capital	4,058,594			4,026,805
Retained earnings	2,671,276			2,776,728
Accumulated other comprehensive income	18,785			10,612
Common stock held in treasury, at cost – 78,729,878 and 78,617,600 shares as of June 30, 2017 and December 31, 2016, respectively	(2,137,312		)	(2,135,311		)
Total HollyFrontier stockholders’ equity	4,613,903			4,681,394
Noncontrolling interest	628,181			620,591
Total equity	5,242,084			5,301,985
Total liabilities and equity	$	9,643,035		$	9,435,661

Parenthetical amounts represent asset and liability balances attributable to Holly Energy Partners, L.P. (“HEP”) as of June 30, 2017 and December 31, 2016. HEP is a consolidated variable interest entity.

See accompanying notes.

5

HOLLYFRONTIER CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Sales and other revenues	$	3,458,864		$	2,714,638		$	6,539,347		$	4,733,362
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization):
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	2,753,440			2,248,155			5,394,597			3,873,318
Lower of cost or market inventory valuation adjustment	83,982			(138,473		)	95,805			(194,594		)
	2,837,422			2,109,682			5,490,402			3,678,724
Operating expenses (exclusive of depreciation and amortization)	315,652			251,336			622,769			503,919
General and administrative expenses (exclusive of depreciation and amortization)	59,576			29,655			116,646			55,276
Depreciation and amortization	105,282			90,423			201,322			178,303
Goodwill and asset impairment	19,247			654,084			19,247			654,084
Total operating costs and expenses	3,337,179			3,135,180			6,450,386			5,070,306
Income (loss) from operations	121,685			(420,542		)	88,961			(336,944		)
Other income (expense):
Earnings of equity method investments	4,053			3,623			5,893			6,388
Interest income	176			527			995			602
Interest expense	(29,645		)	(14,251		)	(56,803		)	(26,338		)
Loss on early extinguishment of debt	—			—			(12,225		)	(8,718		)
Gain on foreign currency swap	—			—			24,545			—
Gain on foreign currency transactions	10,328			—			395			—
Other, net	(528		)	128			(263		)	193
	(15,616		)	(9,973		)	(37,463		)	(27,873		)
Income (loss) before income taxes	106,069			(430,515		)	51,498			(364,817		)
Income tax expense (benefit):
Current	32,251			(18,012		)	7,935			(42,366		)
Deferred	(255		)	(20,033		)	7,272			26,629
	31,996			(38,045		)	15,207			(15,737		)
Net income (loss)	74,073			(392,470		)	36,291			(349,080		)
Less net income attributable to noncontrolling interest	16,306			16,898			23,992			39,035
Net income (loss) attributable to HollyFrontier stockholders	$	57,767		$	(409,368	)	$	12,299		$	(388,115	)
Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	0.33		$	(2.33	)	$	0.07		$	(2.20	)
Diluted	$	0.33		$	(2.33	)	$	0.07		$	(2.20	)
Cash dividends declared per common share	$	0.33		$	0.33		$	0.66		$	0.66
Average number of common shares outstanding:
Basic	176,147			175,865			176,141			176,301
Diluted	176,302			175,865			176,490			176,301

See accompanying notes.

6

HOLLYFRONTIER CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Net income (loss)	$	74,073		$	(392,470	)	$	36,291		$	(349,080	)
Other comprehensive income:
Foreign currency translation adjustment	14,298			—			7,585			—
Securities available-for-sale:
Unrealized gain (loss) on marketable securities	—			12			(4		)	90
Reclassification adjustments to net income on sale or maturity of marketable securities	—			—			—			23
Net unrealized gain (loss) on marketable securities	—			12			(4		)	113
Hedging instruments:
Change in fair value of cash flow hedging instruments	1,389			(5,393		)	4,802			(17,997		)
Reclassification adjustments to net income on settlement of cash flow hedging instruments	(427		)	22,023			(66		)	33,309
Amortization of unrealized loss attributable to discontinued cash flow hedges	270			270			540			540
Net unrealized gain on hedging instruments	1,232			16,900			5,276			15,852
Other comprehensive income before income taxes	15,530			16,912			12,857			15,965
Income tax expense	4,936			6,578			4,701			6,317
Other comprehensive income	10,594			10,334			8,156			9,648
Total comprehensive income (loss)	84,667			(382,136		)	44,447			(339,432		)
Less noncontrolling interest in comprehensive income (loss)	16,239			16,813			23,975			38,675
Comprehensive income (loss) attributable to HollyFrontier stockholders	$	68,428		$	(398,949	)	$	20,472		$	(378,107	)

See accompanying notes.

7

HOLLYFRONTIER CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2017			2016
Cash flows from operating activities:
Net income (loss)	$	36,291		$	(349,080	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	201,322			178,303
Goodwill and asset impairment	19,247			654,084
Lower of cost or market inventory valuation adjustment	95,805			(194,594		)
Earnings of equity method investments, inclusive of distributions	594			1,081
(Gain) loss on sale of assets	679			(61		)
Loss on early extinguishment of debt attributable to unamortized discount	2,475			8,718
Deferred income taxes	7,272			26,629
Equity-based compensation expense	16,557			9,774
Change in fair value – derivative instruments	(5,597		)	(18,164		)
Excess tax expense from equity based compensation	—			(4,198		)
(Increase) decrease in current assets:
Accounts receivable	(5,545		)	(128,271		)
Inventories	60,963			15,531
Income taxes receivable	66,943			(49,999		)
Prepayments and other	(9,272		)	9,086
Increase (decrease) in current liabilities:
Accounts payable	495			210,139
Income taxes payable	22,340			(8,142		)
Accrued liabilities	40,141			18,905
Turnaround expenditures	(86,036		)	(72,409		)
Other, net	8,724			2,994
Net cash provided by operating activities	473,398			310,326
Cash flows from investing activities:
Additions to properties, plants and equipment	(116,526		)	(214,660		)
Additions to properties, plants and equipment – HEP	(20,524		)	(75,385		)
Purchase of equity method investment - HEP	—			(42,500		)
Purchase of PCLI, net of cash acquired	(870,627		)	—
Purchases of marketable securities	(41,565		)	(86,798		)
Sales and maturities of marketable securities	465,716			149,599
Other, net	3,017			408
Net cash used for investing activities	(580,509		)	(269,336		)
Cash flows from financing activities:
Borrowings under credit agreements	505,000			554,000
Repayments under credit agreements	(215,000		)	(480,000		)
Net proceeds from issuance of senior notes - HFC	—			246,690
Net proceeds from issuance of term loan - HFC	—			350,000
Redemption of senior notes - HEP	(309,750		)	—
Repayment of financing obligation	—			(39,500		)
Net proceeds from issuance of common units - HEP	52,634			13,690
Purchase of treasury stock	—			(133,430		)
Dividends	(117,754		)	(116,795		)
Distributions to noncontrolling interest	(53,776		)	(43,840		)
Other, net	(4,820		)	(6,348		)
Net cash provided by (used for) financing activities	(143,466		)	344,467
Effect of exchange rate on cash flow	324			—
Cash and cash equivalents:
Increase (decrease) for the period	(250,253		)	385,457
Beginning of period	710,579			66,533
End of period	$	460,326		$	451,990
Supplemental disclosure of cash flow information:
Cash (paid) received during the period for:
Interest	$	(64,205	)	$	(23,212	)
Income taxes, net	$	80,348		$	(21,426	)

See accompanying notes.

8

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1: Description of Business and Presentation of Financial Statements

References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In these financial statements, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person, with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. These financial statements contain certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries.

We are principally an independent petroleum refiner that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain regions of the United States. In addition, we own and operate a lubricant production facility with retail and wholesale marketing of its products through a global sales network with locations in Canada, United States, Europe and China. As of June 30, 2017, we:

• owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”), a refinery located in Cheyenne, Wyoming (the “Cheyenne Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”);

• owned and operated HollyFrontier Asphalt Company LLC (“HFC Asphalt”) which operates various asphalt terminals in Arizona, New Mexico and Oklahoma;

• owned and operated Petro-Canada Lubricants Inc. (“PCLI”) located in Mississauga, Ontario which produces base oils and other specialized lubricant products; and

• owned a 36% interest in HEP, a consolidated variable interest entity (“VIE”), which includes our 2% general partner interest.

On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into a Share Purchase Agreement (“SPA”) with Suncor Energy Inc. (“Suncor”) to acquire 100% of the outstanding capital stock of PCLI. The acquisition closed on February 1, 2017. See Note 2 for additional information.

We have prepared these consolidated financial statements without audit. In management’s opinion, these consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our consolidated financial position as of June 30, 2017, the consolidated results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and consolidated cash flows for the six months ended June 30, 2017 and 2016 in accordance with the rules and regulations of the SEC. Although certain notes and other information required by generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 that has been filed with the SEC.

Our results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results of operations to be realized for the year ending December 31, 2017.

Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer’s financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for doubtful accounts based on our historical loss experience as well as specific accounts identified as high risk, which historically have been minimal. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible. Our allowance for doubtful accounts was $3.7 million and $2.3 million at June 30, 2017 and December 31, 2016, respectively.

9

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Inventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation.

Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value.

Inventories of our PCLI operations are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value.

Goodwill and Long-lived Assets: As of June 30, 2017, our goodwill balance was $2.2 billion, with goodwill assigned to our Refining, PCLI and HEP segments of $1.7 billion, $0.2 billion and $0.3 billion, respectively. During 2017, we recognized $184.2 million in goodwill as a result of our PCLI acquisition, all of which has been assigned to our PCLI segment. See Note 16 for additional information on our segments. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit. As of June 30, 2017, we have a cumulative goodwill impairment of $309.3 million, all of which relates to goodwill assigned to our Cheyenne Refinery reporting unit that was fully impaired in the second quarter of 2016.

Additionally, the carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our PCLI segment.

As of June 30, 2017, the fair value of our El Dorado reporting unit exceeded its carrying value by approximately 18%. A reasonable expectation exists that further deterioration in gross margins could result in an impairment of goodwill and the long-lived assets of the El Dorado reporting unit at some point in the future and such impairment charges could be material.

Our long-lived assets principally consist of our refining assets that are organized as refining asset groups and our PCLI business. The refinery asset groups also constitute our individual refinery reporting units that are used for testing and measuring goodwill impairments. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. As a result of our impairment testing in the second quarter of 2016, we determined that the carrying value of the long-lived assets of the Cheyenne Refinery had been impaired and recorded long-lived asset impairment charges of $344.8 million.

During the second quarter of 2017, we incurred long-lived asset impairment charges totaling $23.2 million, including $19.2 million of construction-in-progress consisting primarily of engineering work for a planned expansion of our Woods Cross refinery to add lubricants production capabilities. During the second quarter of 2017, we concluded to no longer pursue this expansion for various reasons including our recent acquisition of PCLI. The remaining $4.0 million in charges relate to property, plant and equipment that we expensed in the form of accelerated depreciation in the income statement.

Revenue Recognition: Refined product sales and related cost of sales are recognized when products are shipped and title has passed to customers. HEP recognizes pipeline transportation revenues as products are shipped through its pipelines. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported in cost of products sold.

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

For PCLI subsidiaries in Canada and in the U.S., a portion of sales are made to marketers and distributors under agreements which provide certain rights of return or provisions for PCLI to repurchase product in order to sell directly to end customers. Based on the terms of these agreements, PCLI defers revenues and cost of revenues on sales to Canadian marketers until the related products have been sold to end customers, and PCLI recognizes revenues for sales to its U.S. distributors when products are shipped to the distributors, net of allowances for returns related to inventories PCLI is expected to repurchase from the distributors to sell directly to end customers.

Foreign Currency Translation: The functional currency of our PCLI operations consists of the respective local currency of its foreign operations, which includes the Canadian dollar, the euro and Chinese renminbi. Balance sheet accounts are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income.

In connection with our PCLI acquisition on February 1, 2017, we issued intercompany notes to initially fund certain of PCLI’s foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing from local currencies to the U.S. dollar are recorded as gains and losses as a component of other income (expense) in the income statement. Such adjustments are not recorded to the PCLI segment operations, but to corporate and other. See Note 16 for additional information on our segments.

Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized.

For the six months ended June 30, 2017, we recorded an income tax expense of $15.2 million compared to an income tax benefit of $15.7 million for the six months ended June 30, 2016. This increase was due principally to pre-tax income during the six months ended June 30, 2017 compared to a pre-tax loss in the same period of 2016. Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were 29.5% and 4.3% for the six months ended June 30, 2017 and 2016, respectively.

Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter.

Inventory Repurchase Obligations:We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as an inventory repurchase obligation that is subsequently reversed when the inventory is repurchased. For the six months ended June 30,2017 and 2016, we received proceeds of $26.2 million and $29.8 million, respectively, and repaid $27.0 million and $30.2 million, respectively, under these sell / buy transactions.

New Accounting Pronouncements

Post-retirement Benefit Cost

In March 2017, Accounting Standard Update (“ASU”) 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost,” was issued amending current GAAP related to the income statement presentation of the components of net periodic post-retirement cost (credit). This standard has an effective date of January 1, 2018. We do not expect adoption of this standard to have a material impact on our financial condition, results of operations or cash flows.

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Share-Based Compensation

In March 2016, ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” was issued which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this standard effective January 1, 2017. As the result of the adoption, on a prospective basis, we recognized zero and $0.1 million of excess tax expense from stock-based compensation as a discrete item in our provision for income taxes for the three and six months ended June 30, 2017. The new standard also requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the statement of cash flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change for the six months ended June 30, 2017 and 2016 was $0.3 million and zero, respectively. Finally, consistent with our existing policy, we have elected to account for forfeitures on an estimated basis.

Leases

In February 2016, ASU 2016-02, “Leases,” was issued requiring leases to be measured and recognized as a lease liability, with a corresponding right-of-use asset on the balance sheet. This standard has an effective date of January 1, 2019, and we are evaluating the impact of this standard.

Inventories Measurement

In July 2015, ASU 2015-11, “Inventory - Simplifying the Measurement of Inventory,” was issued requiring measurement of inventories, other than inventories accounted for using the LIFO method, to be measured at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business less reasonable, predictable cost of completion, disposal and transportation. We adopted this standard effective January 1, 2017 for our affected inventories, which is primarily our PCLI inventory valued on a FIFO basis, and it had no material effect on our financial condition, results of operations or cash flows.

Revenue Recognition

In May 2014, ASU 2014-09, “Revenue from Contracts with Customers” was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we anticipate using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are also evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition, results of operations or cash flows.

NOTE 2: PCLI Acquisition

On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into an SPA with Suncor to acquire 100% of the outstanding capital stock of PCLI. The acquisition closed on February 1, 2017. Cash consideration paid at that time was approximately $862.0 million, or $1.125 billion in Canadian dollars. PCLI is located in Mississauga, Ontario, Canada and is a producer of lubricant products such as base oils, white oils, specialty products and finished lubricants. PCLI’s operations also include marketing of its products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China.

Aggregate consideration totaled approximately $904.3 million and consists of $862.0 million in cash paid to Suncor at acquisition, a closing date working capital settlement of $30.6 million that was paid to Suncor in the second quarter of 2017, an accrued payable in the amount of $6.5 million and $5.1 million, representing a portion of the fair value of replacement restricted stock unit awards issued to PCLI employees that relate to pre-acquisition services.

This transaction is accounted for as a business combination using the acquisition method of accounting, with the purchase price allocated to the fair value of the acquired PCLI assets and liabilities as of the February 1 acquisition date, with the excess purchase price recorded as goodwill assigned to our PCLI segment. This goodwill is not deductible for income tax purposes.

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

The following summarizes our preliminary value estimates of the PCLI assets and liabilities acquired:

	(in millions)
Cash and cash equivalents	$	21.6
Accounts receivable and other current assets	117.5
Inventories	213.0
Properties, plants and equipment	459.0
Goodwill	184.2
Intangibles and precious metals	119.0
Accounts payable and accrued liabilities	(89.0		)
Deferred income tax liabilities	(107.0		)
Other long-term liabilities	(14.0		)
Net assets acquired	$	904.3

Intangibles include trademarks, patents, technical know-how and customer relationships totaling $98.2 million that are being amortized on a straight-line basis over periods ranging from 10 to 20 years.

These values are preliminary and reflect revisions to our February 1, 2017 fair value estimates that were initially recorded during the first quarter of 2017. These estimated values are not final and may be subject to additional change once all needed information has become available and we complete our valuations.

Our consolidated financial and operating results reflect the PCLI operations beginning February 1, 2017. Our results of operations for the three months ended June 30, 2017 included PCLI revenues and net income of $309.6 million and $12.6 million, respectively, and $511.5 million and $21.1 million for the period from February 1, 2017 through June 30, 2017.

As of June 30, 2017, we have incurred $19.3 million in incremental direct acquisition and integration costs that principally relate to legal, advisory and other professional fees and are presented as general and administrative expenses.

NOTE 3: Holly Energy Partners

HEP, a consolidated VIE, is a publicly held master limited partnership that owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain regions of the United States and Alon USA, Inc.’s (“Alon”) refinery in Big Spring, Texas. Additionally, HEP owns a 75% interest in UNEV Pipeline, LLC (“UNEV”), the owner of a pipeline running from Woods Cross, Utah to Las Vegas, Nevada (the “UNEV Pipeline”) and associated product terminals; a 50% interest in Frontier Aspen LLC, the owner of a pipeline running from Wyoming to Frontier Station, Utah (the “Frontier Pipeline”); a 50% interest in Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”); a 50% interest in Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne Pipeline”); and a 25% interest in SLC Pipeline LLC, the owner of a pipeline (the “SLC Pipeline”) that serves refineries in the Salt Lake City, Utah area.

As of June 30, 2017, we owned a 36% interest in HEP, including the 2% general partner interest. As the general partner of HEP, we have the sole ability to direct the activities that most significantly impact HEP’s financial performance, and therefore we consolidate HEP.

HEP has two primary customers (including us) and generates revenues by charging tariffs for transporting petroleum products and crude oil through its pipelines, by charging fees for terminalling refined products and other hydrocarbons, and storing and providing other services at its storage tanks and terminals. Under our long-term transportation agreements with HEP (discussed further below), we accounted for 85% of HEP’s total revenues for the six months ended June 30, 2017. We do not provide financial or equity support through any liquidity arrangements and / or debt guarantees to HEP.

HEP has outstanding debt under a senior secured revolving credit agreement and its senior notes. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. See Note 10 for a description of HEP’s debt obligations.

HEP has risk associated with its operations. If a major customer of HEP were to terminate its contracts or fail to meet desired shipping or throughput levels for an extended period of time, revenue would be reduced and HEP could suffer substantial losses to the extent that a new customer is not found. In the event that HEP incurs a loss, our operating results will reflect HEP’s loss, net of intercompany eliminations, to the extent of our ownership interest in HEP at that point in time.

Cheyenne Pipeline

On June 3, 2016, HEP acquired a 50% interest in Cheyenne Pipeline LLC, owner of the Cheyenne Pipeline, in exchange for a contribution of $42.5 million in cash to Cheyenne Pipeline LLC. Cheyenne Pipeline will continue to be operated by an affiliate of Plains All American Pipeline, L.P. (“Plains”), which owns the remaining 50% interest. The 87-mile crude oil pipeline runs from Fort Laramie, Wyoming to Cheyenne, Wyoming and has an 80,000 BPD capacity.

Tulsa Tanks

On March 31, 2016, HEP acquired crude oil tanks located at our Tulsa Refineries from Plains for $39.5 million. Previously in 2009, we sold these tanks to Plains and leased them back, and due to our continuing interest in the tanks, we accounted for the transaction as a financing arrangement. Accordingly, the tanks remained on our balance sheet and were depreciated for accounting purposes, and the proceeds received from Plains were recorded as a financing obligation and presented as a component of outstanding debt.

In accounting for HEP’s March 2016 purchase from Plains, the amount paid was recorded against our outstanding financing obligation balance of $30.8 million, with the excess $8.7 million payment resulting in a loss on early extinguishment of debt.

Magellan Asset Exchange

On February 22, 2016, we acquired a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) in exchange for a 20-year terminalling services agreement, whereby a subsidiary of Magellan Midstream Partners (“Magellan Midstream”) will provide terminalling services for all of our products originating in Artesia, New Mexico that require terminalling in or through El Paso, Texas. Under the agreement, we will be charged tariffs based on the volumes of refined product processed. Osage is the owner of the Osage Pipeline, a 135-mile pipeline that transports crude oil from Cushing, Oklahoma to our El Dorado Refinery in Kansas and also has a connection to the Jayhawk pipeline that services the CHS refinery in McPherson, Kansas. This exchange was accounted for at fair value, whereby the 50% membership interest in the Osage Pipeline was recorded at appraised fair value and an offsetting residual deferred credit in the amount of $38.9 million was recorded, which will be amortized to cost of products sold over the 20-year service period. No gain or loss was recorded for this exchange.

Also on February 22, 2016, we contributed the 50% membership interest in Osage to HEP, and in exchange received HEP’s El Paso terminal. Pursuant to this exchange, HEP agreed to build two connections to Magellan Midstream’s El Paso terminal. In addition, HEP agreed to become operator of the Osage Pipeline. This exchange was accounted for at carry-over basis with no resulting gain or loss.

HEP Common Unit Continuous Offering Program

On May 10, 2016, HEP established a continuous offering program under which HEP may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million. During the six months ended June 30, 2017, HEP issued 1,538,452 units under this program, providing $52.4 million in net proceeds. In connection with this program and to maintain our 2% general partner interest in HEP, we made capital contributions totaling $1.1 million. As of June 30, 2017, HEP has issued 2,241,907 units with an aggregate gross sales amount of $77.1 million.

HEP intends to use the net proceeds for general partnership purposes, which may include funding working capital, repayment of debt, acquisitions and capital expenditures. Amounts repaid under HEP’s credit facility may be reborrowed from time to time.

As a result of this transaction and resulting HEP ownership changes, we adjusted additional capital and equity attributable to HEP's noncontrolling interest holders to reallocate HEP's equity among its unitholders.

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Transportation Agreements

HEP serves our refineries under long-term pipeline, terminal and tankage throughput agreements and refinery processing tolling agreements expiring from 2019 through 2036. Under these agreements, we pay HEP fees to transport, store and process throughput volumes of refined products, crude oil and feedstocks on HEP’s pipeline, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to HEP including UNEV (a consolidated subsidiary of HEP). Under these agreements, the agreed upon tariff rates are subject to annual tariff rate adjustments on July 1 at a rate based upon the percentage change in Producer Price Index or Federal Energy Regulatory Commission index. As of July 1, 2017, these agreements result in minimum annualized payments to HEP of $321.6 million.

NOTE 4: Fair Value Measurements

Our financial instruments measured at fair value on a recurring basis consist of investments in marketable securities and derivative instruments.

Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows:

• (Level 1) Quoted prices in active markets for identical assets or liabilities.

• (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.

• (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.

The carrying amounts of marketable securities and derivative instruments at June 30, 2017 and December 31, 2016 were as follows:

			Fair Value by Input Level
	Carrying Amount		Level 1		Level 2		Level 3
	(In thousands)
June 30, 2017
Assets:
NYMEX futures contracts	$	662	$	662	$	—	$	—
Commodity price swaps	7,863		—		7,863		—
Commodity forward contracts	1,447		—		1,447		—
HEP interest rate swaps	63		—		63		—
Total assets	$	10,035	$	662	$	9,373	$	—
Liabilities:
Commodity price swaps	$	20,631	$	—	$	20,631	$	—
Commodity forward contracts	1,218		—		1,218		—
Total liabilities	$	21,849	$	—	$	21,849	$	—

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

December 31, 2016
Assets:
Marketable securities	$	424,148	$	—	$	424,148	$	—
Commodity price swaps	14,563		—		14,358		205
Commodity forward contracts	5,905		—		5,905		—
HEP interest rate swaps	91		—		91		—
Total assets	$	444,707	$	—	$	444,502	$	205
Liabilities:
NYMEX futures contracts	$	1,975	$	1,975	$	—	$	—
Commodity price swaps	26,845		—		24,086		2,759
Commodity forward contracts	8,316		—		8,316		—
Foreign currency forward contracts	6,519		—		6,519		—
Total liabilities	$	43,655	$	1,975	$	38,921	$	2,759

Level 1 Instruments

Our NYMEX futures contracts are exchange traded and are measured and recorded at fair value using quoted market prices, a Level 1 input.

Level 2 Instruments

Investments in marketable securities, derivative instruments consisting of commodity price swaps and forward sales and purchase contracts and HEP’s interest rate swaps are measured and recorded at fair value using Level 2 inputs. The fair values of the commodity price and interest rate swap contracts are based on the net present value of expected future cash flows related to both variable and fixed rate legs of the respective swap agreements. The measurements are computed using market-based observable inputs, quoted forward commodity prices with respect to our commodity price swaps and the forward London Interbank Offered Rate (“LIBOR”) yield curve with respect to HEP’s interest rate swaps. The fair value of the marketable securities is based on values provided by a third-party, which were derived using market quotes for similar type instruments, a Level 2 input.

Level 3 Instruments

We at times have commodity price swap contracts that relate to forecasted sales of unleaded gasoline and forward commodity sales and purchase contracts for which quoted forward market prices are not readily available. The forward rate used to value these price swaps and forward sales and purchase contracts are derived using a projected forward rate using quoted market rates for similar products, adjusted for regional pricing and grade differentials, a Level 3 input.

The following table presents the changes in fair value of our Level 3 assets and liabilities (all related to derivative instruments) for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017		Six Months Ended June 30, 2017
Level 3 Instruments
	(In thousands)
Liability balance at beginning of period	$	—	$	(2,554	)
Change in fair value:
Recognized in other comprehensive income	—		1,625
Recognized in cost of products sold	—		(1		)
Settlement date fair value of contractual maturities:
Recognized in sales and other revenues	—		(165		)
Recognized in cost of products sold	—		1,095
Liability balance at end of period	$	—	$	—

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

NOTE 5: Earnings Per Share

Basic earnings per share is calculated as net income (loss) attributable to HollyFrontier stockholders divided by the average number of shares of common stock outstanding. Diluted earnings per share assumes, when dilutive, the issuance of the net incremental shares from restricted shares and performance share units. The following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(In thousands, except per share data)
Net income (loss) attributable to HollyFrontier stockholders	$	57,767	$	(409,368	)	$	12,299	$	(388,115	)
Participating securities’ (restricted stock) share in earnings	373		216			752		432
Net income (loss) attributable to common shares	$	57,394	$	(409,584	)	$	11,547	$	(388,547	)
Average number of shares of common stock outstanding	176,147		175,865			176,141		176,301
Effect of dilutive variable restricted shares andperformance share units (1)	155		—			349		—
Average number of shares of common stock outstanding assuming dilution	176,302		175,865			176,490		176,301
Basic earnings (loss) per share	$	0.33	$	(2.33	)	$	0.07	$	(2.20	)
Diluted earnings (loss) per share	$	0.33	$	(2.33	)	$	0.07	$	(2.20	)
(1) Excludes anti-dilutive restricted and performance share units of:	140		191			133		183

NOTE 6: Stock-Based Compensation

As of June 30, 2017, we have two principal share-based compensation plans (collectively, the “Long-Term Incentive Compensation Plan”).

The compensation cost charged against income for these plans was $8.4 million and $6.0 million for the three months ended June 30, 2017 and 2016, respectively, and $15.4 million and $8.6 million for the six months ended June 30, 2017 and 2016, respectively. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting is to expense the costs ratably over the vesting periods.

Additionally, HEP maintains a share-based compensation plan for Holly Logistic Services, L.L.C.’s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s share-based compensation plan was $0.7 million and $0.5 million for the three months ended June 30, 2017 and 2016, respectively, and $1.1 million and $1.2 million for the six months ended June 30, 2017 and 2016, respectively.

Restricted Stock and Restricted Stock Units

Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees restricted stock and restricted stock unit awards with awards generally vesting over a period of one to three years. Restricted stock award recipients are generally entitled to all the rights of absolute ownership of the restricted shares from the date of grant including the right to vote the shares and to receive dividends. Upon vesting, restrictions on the restricted shares lapse at which time they convert to common shares. In addition, we grant non-employee directors restricted stock unit awards, which typically vest over a period of one year and are payable in stock. The fair value of each restricted stock and restricted stock unit award is measured based on the grant date market price of our common shares and is amortized over the respective vesting period.

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HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

A summary of restricted stock and restricted stock unit activity and changes during the six months ended June 30, 2017 is presented below:

Restricted Stock and Restricted Stock Units	Grants		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2017 (non-vested)	1,188,774		$	28.87
Granted (1)	733,270		28.20
Vesting (transfer/conversion to common stock)	(29,527	)	33.08
Forfeited	(39,209	)	30.58
Outstanding at June 30, 2017 (non-vested)	1,853,308		$	28.83	$	50,910

(1) Includes restricted stock units issued to PCLI employees.

In connection with our February 1, 2017 PCLI acquisition, we issued 472,276 restricted stock units to PCLI employees as replacement units for unvested awards issued under the legacy PCLI plan. The fair value of these awards totaled $13.3 million and is based on a February 1 grant date value of $28.12 per unit. Of this total, $5.1 million is recognized as an increase to our PCLI purchase price as it represents the value of the awards attributable to pre-acquisition services, and the remaining $8.2 million to be recognized as compensation expense over the two-year vesting period.

For the six months ended June 30, 2017, restricted stock and restricted stock units vested having a grant date fair value of $1.0 million. As of June 30, 2017, there was $31.2 million of total unrecognized compensation cost related to non-vested restricted stock and restricted stock unit grants. That cost is expected to be recognized over a weighted-average period of 1.3 years.

Performance Share Units

Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees performance share units, which are payable in stock upon meeting certain criteria over the service period, and generally vest over a period of three years. Under the terms of our performance share unit grants, awards are subject to “financial performance” and “market performance” criteria. Financial performance is based on our financial performance compared to a peer group of independent refining companies, while market performance is based on the relative standing of total shareholder return achieved by HollyFrontier compared to peer group companies. The number of shares ultimately issued under these awards can range from zero to 200% of target award amounts. As of June 30, 2017, estimated share payouts for outstanding non-vested performance share unit awards averaged approximately 60% of target amounts.

A summary of performance share unit activity and changes during the six months ended June 30, 2017 is presented below:

Performance Share Units	Grants
Outstanding at January 1, 2017 (non-vested)	703,939
Granted	21,923
Forfeited	(86,117	)
Outstanding at June 30, 2017 (non-vested)	639,745

As of June 30, 2017, there was $10.2 million of total unrecognized compensation cost related to non-vested performance share units having a grant date fair value of $33.34 per unit. That cost is expected to be recognized over a weighted-average period of 1.7 years.

NOTE 7: Cash and Cash Equivalents and Investments in Marketable Securities

Our investment portfolio at June 30, 2017 consisted of cash and cash equivalents.

We invest in marketable debt securities with the maximum maturity or put date of any individual issue generally not greater than one year from the date of purchase, which are usually held until maturity. All of these instruments are classified as available-for-sale and are reported at fair value. Interest income is recorded as earned. Unrealized gains and losses, net of related income taxes, are reported as a component of accumulated other comprehensive income. Upon sale or maturity, realized gains on our marketable debt securities are recognized as interest income. These gains are computed based on the specific identification of the underlying cost of the securities, net of unrealized gains and losses previously reported in other comprehensive income. Unrealized gains and losses on our available-for-sale securities are due to changes in market prices and are considered temporary.

The following is a summary of our marketable securities as of December 31, 2016:

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value (Net Carrying Amount)
	(In thousands)
December 31, 2016
Commercial paper	$	7,687	$	1	$	(1	)	$	7,687
Corporate debt securities	4,001		—		—			4,001
State and political subdivisions debt securities	412,462		1		(3		)	412,460
Total marketable securities	$	424,150	$	2	$	(4	)	$	424,148

Interest income recognized on our marketable securities was zero and $0.1 million for the three months ended June 30, 2017 and 2016 respectively, and $0.3 million and $0.1 million for the six months ended June 30, 2017 and 2016.

NOTE 8: Inventories

Inventory consists of the following components:

	June 30, 2017			December 31, 2016
	(In thousands)
Crude oil	$	543,139		$	549,886
Other raw materials and unfinished products(1)	342,991			287,561
Finished products(2)	606,371			465,432
Lower of cost or market reserve	(428,323		)	(332,518		)
Process chemicals(3)	21,704			2,767
Repair and maintenance supplies and other (4)	106,091			162,548
Total inventory	$	1,191,973		$	1,135,676

(1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude.

(2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels.

(3) Process chemicals include additives and other chemicals.

(4) Includes RINs.

We acquired $213.0 million of other raw materials, unfinished and finished products and repair and maintenance supplies in connection with our February 1, 2017 acquisition of PCLI. We value these inventories at the lower of FIFO cost or net realizable value.

17

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Inventories, which are valued at the lower of LIFO cost or market, reflect a valuation reserve of $428.3 million and $332.5 million at June 30, 2017 and December 31, 2016, respectively. The December 31, 2016 market reserve of $332.5 million was reversed due to the sale of inventory quantities that gave rise to the 2016 reserve. A new market reserve of $428.3 million was established as of June 30, 2017 based on market conditions and prices at that time. The effect of the change in lower of cost or market reserve was an increase to cost of goods sold totaling $84.0 million for the three months ended June 30, 2017 and a decrease of $138.5 million for the three months ended June 30, 2016, respectively, and an increase to cost of goods sold totaling $95.8 million for the six months ended June 30, 2017 and a decrease of $194.6 million for the six months ended June 30, 2016.

At June 30, 2017, the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs.

In May 2017, the Environmental Protection Agency (“EPA”) granted the Cheyenne Refinery a one-year small refinery exemption from the Renewable Fuel Standard (“RFS”) program requirements for the 2016 calendar year. As a result, the Cheyenne Refinery’s gasoline and diesel production are not subject to the percentage of production that must satisfy a Renewable Volume Obligation (“RVO”) for 2016. We are currently working with the EPA to reinstate the RINs previously submitted to meet our Cheyenne Refinery’s 2016 RVO and expect the EPA to reinstate these RINs. The cost of the RINs used earlier to satisfy the Cheyenne Refinery’s 2016 RVO of $30.5 million was charged to cost of products sold in 2016. In the second quarter of 2017, we increased our inventory of RINs and reduced our cost of products sold by this amount, representing the cost of the RINs to be reinstated as a result of the RFS exemption received by the Cheyenne Refinery.

NOTE 9: Environmental

Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. We have ongoing investigations of environmental matters at various locations and routinely assess our recorded environmental obligations, if any, with respect to such matters. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and cleanup activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable.

We reduced expense by $0.9 million for each of the three and the six months ended June 30, 2017 and incurred expense of $0.5 million and $1.3 million for the three and the six months ended June 30, 2016, respectively, for environmental remediation obligations. The accrued environmental liability reflected in our consolidated balance sheets was $91.3 million and $96.4 million at June 30, 2017 and December 31, 2016, respectively, of which $82.9 million and $82.9 million, respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time (up to 30 years for certain projects). The amount of our accrued liability includes PCLI environmental obligations of $4.6 million assumed upon our February 1, 2017 acquisition. Estimated liabilities could increase in the future when the results of ongoing investigations become known, are considered probable and can be reasonably estimated.

NOTE 10: Debt

HollyFrontier Credit Agreement

In February 2017, we increased the size of our senior unsecured revolving credit facility from $1 billion to $1.35 billion and extended the maturity date to February 2022 (the “HollyFrontier Credit Agreement”). The Holly Frontier Credit Agreement may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. During the six months ended June 30, 2017, we received advances totaling $26.0 million and repaid $26.0 million under the HollyFrontier Credit Agreement. At June 30, 2017, we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $3.1 million under the HollyFrontier Credit Agreement.

18

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

HEP Credit Agreement

At June 30, 2017, HEP had a $1.2 billion senior secured revolving credit facility maturing in November 2018 (the “HEP Credit Agreement”). During the six months ended June 30, 2017, HEP received advances totaling $479.0 million and repaid $189.0 million under the HEP Credit Agreement. At June 30, 2017, HEP was in compliance with all of its covenants, had outstanding borrowings of $843.0 million and no outstanding letters of credit under the HEP Credit Agreement.

In July 2017, the HEP Credit Agreement was amended to increase the size of the facility to $1.4 billion and to extend the maturity to July 2022 (the “HEP Amended Credit Agreement”) The HEP Amended Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit and has a $300 million accordion.

HEP’s obligations under the HEP Amended Credit Agreement are collateralized by substantially all of HEP’s assets and is guaranteed by HEP’s material wholly-owned subsidiaries. Any recourse to the general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP are not significant. HEP’s creditors have no recourse to our other assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries.

HollyFrontier Senior Notes

Our 5.875% senior notes ($1 billion aggregate principal amount maturing April 2026) (the “HollyFrontier Senior Notes”) are unsecured and unsubordinated obligations of ours and rank equally with all our other existing and future unsecured and unsubordinated indebtedness.

HollyFrontier Financing Obligation

In March 2016, we extinguished a financing obligation at a cost of $39.5 million and recognized an $8.7 million loss on the early termination. The financing obligation related to a sale and lease-back of certain crude oil tankage that we sold to an affiliate of Plains in October 2009 for $40.0 million.

HollyFrontier Term Loan

In April 2016, we entered into a $350 million senior unsecured term loan (the “HollyFrontier Term Loan”) maturing in April 2019. The HollyFrontier Term Loan was fully repaid with proceeds received upon the November 2016 issuance of the HollyFrontier Senior Notes.

HEP Senior Notes

HEP’s 6.0% senior notes ($400 million aggregate principal amount maturing August 2024) (the “HEP Senior Notes”) are unsecured and impose certain restrictive covenants, including limitations on HEP’s ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. At any time when the HEP Senior Notes are rated investment grade by both Moody’s and Standard & Poor’s and no default or event of default exists, HEP will not be subject to many of the foregoing covenants. Additionally, HEP has certain redemption rights under the HEP Senior Notes.

In January 2017, HEP redeemed its $300 million aggregate principal amount of 6.5% senior notes maturing March 2020 at a redemption cost of $309.8 million, at which time HEP recognized a $12.2 million early extinguishment loss consisting of a $9.8 million debt redemption premium and unamortized discount and financing costs of $2.4 million. HEP funded the redemption with borrowings under the HEP Credit Agreement.

Indebtedness under the HEP Senior Notes is guaranteed by HEP’s wholly-owned subsidiaries. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries.

19

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

The carrying amounts of long-term debt are as follows:

	June 30, 2017			December 31, 2016
	(In thousands)
HollyFrontier 5.875% Senior Notes
Principal	$	1,000,000		$	1,000,000
Unamortized discount and debt issuance costs	(8,788		)	(8,775		)
	991,212			991,225
HEP Credit Agreement	843,000			553,000
HEP 6% Senior Notes
Principal	400,000			400,000
Unamortized discount and debt issuance costs	(6,261		)	(6,607		)
	393,739			393,393
HEP 6.5% Senior Notes
Principal	—			300,000
Unamortized discount and debt issuance costs	—			(2,481		)
	—			297,519
Total HEP long-term debt	1,236,739			1,243,912
Total long-term debt	$	2,227,951		$	2,235,137

The fair values of the senior notes are as follows:

	June 30, 2017		December 31, 2016
	(In thousands)
HollyFrontier senior notes	$	1,065,000	$	1,022,500
HEP senior notes	$	418,000	$	723,750

These fair values are based on estimates provided by a third party using market quotes for similar type instruments, a Level 2 input. See Note 4 for additional information on Level 2 inputs.

We capitalized interest attributable to construction projects of $0.6 million and $3.5 million for the three months ended June 30, 2017 and 2016, respectively, and $3.2 million and $4.2 million for the six months ended June 30, 2017 and 2016, respectively.

NOTE 11: Derivative Instruments and Hedging Activities

Commodity Price Risk Management

Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, forward purchase and sales and futures contracts to mitigate price exposure with respect to:

• our inventory positions;

• natural gas purchases;

• costs of crude oil and related grade differentials;

• prices of refined products; and

• our refining margins.

20

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Accounting Hedges

We have swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas. We also periodically have forward sales contracts that lock in the prices of future sales of crude oil and refined product and swap contracts serving as cash flow hedges against price risk on forecasted purchases of WTI crude oil and forecasted sales of refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains/losses) recorded directly to other comprehensive income. These fair value adjustments are later reclassified to earnings as the hedging instruments mature. On a quarterly basis, hedge ineffectiveness is measured by comparing the change in fair value of the swap contracts against the expected future cash inflows/outflows on the respective transaction being hedged. Any hedge ineffectiveness is also recognized in earnings.

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps and forward sales under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements				Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings
				Location	Amount			Location	Amount
	(In thousands)
Three Months Ended June 30, 2017
Change in fair value	$	1,378
Gain reclassified to earnings due to settlements	(325		)	Sales and other revenues	$	4,476
Amortization of discontinued hedges reclassified to earnings	270			Operating expenses	(4,421		)	Operating expenses	$	(18	)
Total	$	1,323			$	55			$	(18	)
Three Months Ended June 30, 2016
Change in fair value	$	(5,138	)
Loss reclassified to earnings due to settlements	21,910			Sales and other revenue	$	(15,897	)
Amortization of discontinued hedges reclassified to earnings	270			Operating expenses	(6,283		)	Operating expenses	$	—
Total	$	17,042			$	(22,180	)		$	—
Six Months Ended June 30, 2017
Change in fair value	$	4,715		Sales and other revenues	$	8,426
Loss reclassified to earnings due to settlements	49			Cost of products sold	(299		)
Amortization of discontinued hedge reclassified to earnings	540			Operating expenses	(8,716		)	Operating expenses	$	(18	)
Total	$	5,304			$	(589	)		$	(18	)
Six Months Ended June 30, 2016
Change in fair value	$	(17,059	)
Loss reclassified to earnings due to settlements	32,966			Sales and other revenues	$	(20,653	)
Amortization of discontinued hedge reclassified to earnings	540			Operating expenses	(12,853		)	Operating expenses	$	—
Total	$	16,447			$	(33,506	)		$	—

As of June 30, 2017, we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2017	2018	2019	2020	2021	Unit of Measure
Natural gas price swaps - long	12,000,000	4,800,000	1,800,000	1,800,000	1,800,000	1,800,000	MMBTU

21

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

In 2013, we dedesignated certain commodity price swaps (long positions) that previously received hedge accounting treatment. These contracts now serve as economic hedges against price risk on forecasted natural gas purchases totaling 4,800,000 MMBTU’s to be purchased ratably through 2017. As of June 30, 2017, we have an unrealized loss of $0.5 million classified in accumulated other comprehensive income that relates to the application of hedge accounting prior to dedesignation that is amortized as a charge to operating expenses as the contracts mature.

Economic Hedges

We also have swap contracts that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges) to lock in basis spread differentials on forecasted purchases of crude oil and natural gas. Also, we have commodity forward contracts and NYMEX futures contracts to lock in prices on forecasted purchases of inventory. In addition, we had Canadian currency swap contracts that effectively fixed the conversion rate on $1.125 billion Canadian dollars (the PCLI purchase price), which were settled on February 1, 2017, in connection with the closing of the PCLI acquisition. These contracts are measured at fair value with offsetting adjustments (gains/losses) recorded directly to income.

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Three Months Ended June 30,					Six Months Ended June 30,
Location of Gain (Loss) Recognized in Earnings	2017			2016		2017			2016
	(In thousands)
Cost of products sold	$	6,983		$	828	$	14,035		$	1,302
Operating expenses	(1,541		)	8,083		(5,763		)	4,614
Gain on foreign currency swap	—			—		24,545			—
Total	$	5,442		$	8,911	$	32,817		$	5,916

As of June 30, 2017, we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2017	2018	Unit of Measure
Crude price swaps (basis spread) - long	1,836,000	1,836,000	—	Barrels
Natural gas price swaps (basis spread) - long	5,154,000	5,154,000	—	MMBTU
Natural gas price swaps - long	4,800,000	4,800,000	—	MMBTU
Natural gas price swaps - short	4,800,000	4,800,000	—	MMBTU
NYMEX futures (WTI) - short	1,240,000	1,040,000	200,000	Barrels
Forward gasoline and diesel contracts - long	465,000	465,000	—	Barrels

Interest Rate Risk Management

HEP uses interest rate swaps to manage its exposure to interest rate risk.

As of June 30, 2017, HEP had two interest rate swap contracts with identical terms that hedge its exposure to the cash flow risk caused by the effects of LIBOR changes on $150.0 million in credit agreement advances. The swaps effectively convert $150.0 million of LIBOR based debt to fixed rate debt having an interest rate of 0.74% plus an applicable margin of 2.25% as of June 30, 2017, which equaled an effective interest rate of 2.99%. Both of these swap contracts matured in July 2017 and have been designated as cash flow hedges. To date, there has been no ineffectiveness on these cash flow hedges.

22

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP’s interest rate swaps under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements
				Location	Amount
	(In thousands)
Three Months Ended June 30, 2017
Interest rate swaps
Change in fair value	$	11
Gain reclassified to earnings due to settlements	(102		)	Interest expense	$	102
Total	$	(91	)		$	102
Three Months Ended June 30, 2016
Interest rate swaps
Change in fair value	$	(255	)
Loss reclassified to earnings due to settlements	113			Interest expense	$	(113	)
Total	$	(142	)		$	(113	)
Six Months Ended June 30, 2017
Interest rate swaps
Change in fair value	$	87
Gain reclassified to earnings due to settlements	(115		)	Interest expense	$	115
Total	$	(28	)		$	115
Six Months Ended June 30, 2016
Interest rate swaps
Change in fair value	$	(938	)
Loss reclassified to earnings due to settlements	343			Interest expense	$	(343	)
Total	$	(595	)		$	(343	)

23

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
June 30, 2017
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	10,018	$	—		$	10,018
Interest rate swap contracts	63		—		63		—		—			—
	$	63	$	—	$	63	$	10,018	$	—		$	10,018
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	10,613	$	(7,863	)	$	2,750
NYMEX futures contracts	662		—		662		—		—			—
Forward contracts	1,447		—		1,447		1,218		—			1,218
	$	2,109	$	—	$	2,109	$	11,831	$	(7,863	)	$	3,968
Total net balance					$	2,172						$	13,986
Balance sheet classification:							Accrued liabilities					$	13,308
							Other long-term liabilities					678
	Prepayment and other				$	2,172						$	13,986

	Derivatives in Net Asset Position							Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet			Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2016
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—		$	—	$	13,185	$	(431	)	$	12,754
Commodity forward contracts	—		—			—		2,978		—			2,978
Interest rate swap contracts	91		—			91		—		—			—
	$	91	$	—		$	91	$	16,163	$	(431	)	$	15,732
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	4,244	$	(756	)	$	3,488	$	12,903	$	(9,887	)	$	3,016
NYMEX futures contracts	—		—			—		1,975		—			1,975
Commodity forward contracts	5,905		—			5,905		5,338		—			5,338
Foreign currency forward contracts	—		—			—		6,519		—			6,519
	$	10,149	$	(756	)	$	9,393	$	26,735	$	(9,887	)	$	16,848
Total net balance						$	9,484						$	32,580
Balance sheet classification:	Prepayment and other					$	9,484	Accrued liabilities					$	32,580

24

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

At June 30, 2017, we had a pre-tax net unrealized loss of $10.5 million classified in accumulated other comprehensive income that relates to all accounting hedges having contractual maturities through 2021. Assuming commodity prices and interest rates remain unchanged, an unrealized loss of $9.8 million will be effectively transferred from accumulated other comprehensive income into the statement of income as the hedging instruments contractually mature over the next twelve-month period.

NOTE 12: Equity

Changes to equity during the six months ended June 30, 2017 are presented below:

	HollyFrontier Stockholders’ Equity			Noncontrolling Interest			Total Equity
	(In thousands)
Balance at December 31, 2016	$	4,681,394		$	620,591		$	5,301,985
Net income	12,299			23,992			36,291
Dividends	(117,754		)	—			(117,754		)
Distributions to noncontrolling interest holders	—			(53,776		)	(53,776		)
Other comprehensive income (loss), net of tax	8,173			(17		)	8,156
Allocated equity on HEP common unit issuances, net of tax	9,598			36,723			46,321
Equity awards issued in PCLI acquisition	5,056			—			5,056
Equity-based compensation	15,411			1,146			16,557
Purchase of treasury stock (1)	(274		)	—			(274		)
Purchase of HEP units for restricted grants	—			(35		)	(35		)
Other	—			(443		)	(443		)
Balance at June 30, 2017	$	4,613,903		$	628,181		$	5,242,084

(1) Includes 9,349 shares withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards.

In May 2015, our Board of Directors approved a $1 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. As of June 30, 2017, we had remaining authorization to repurchase up to $178.8 million under this stock repurchase program. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs.

NOTE 13: Other Comprehensive Income (Loss)

The components and allocated tax effects of other comprehensive income (loss) are as follows:

	Before-Tax			Tax Expense (Benefit)			After-Tax
	(In thousands)
Three Months Ended June 30, 2017
Net change in foreign currency translation adjustment	$	14,298		$	4,433		$	9,865
Net unrealized gain on hedging instruments	1,232			503			729
Other comprehensive income	15,530			4,936			10,594
Less other comprehensive loss attributable to noncontrolling interest	(67		)	—			(67		)
Other comprehensive income attributable to HollyFrontier stockholders	$	15,597		$	4,936		$	10,661
Three Months Ended June 30, 2016
Net unrealized gain on marketable securities	$	12		$	4		$	8
Net unrealized gain on hedging instruments	16,900			6,574			10,326
Other comprehensive income	16,912			6,578			10,334
Less other comprehensive loss attributable to noncontrolling interest	(85		)	—			(85		)
Other comprehensive income attributable to HollyFrontier stockholders	$	16,997		$	6,578		$	10,419
Six Months Ended June 30, 2017
Net change in foreign currency translation adjustment	$	7,585		$	2,654		$	4,931
Net unrealized loss on marketable securities	(4		)	(1		)	(3		)
Net unrealized gain on hedging instruments	5,276			2,048			3,228
Other comprehensive income	12,857			4,701			8,156
Less other comprehensive loss attributable to noncontrolling interest	(17		)	—			(17		)
Other comprehensive income attributable to HollyFrontier stockholders	$	12,874		$	4,701		$	8,173
Six Months Ended June 30, 2016
Net unrealized gain on marketable securities	$	113		$	44		$	69
Net unrealized gain on hedging instruments	15,852			6,273			9,579
Other comprehensive income	15,965			6,317			9,648
Less other comprehensive loss attributable to noncontrolling interest	(360		)	—			(360		)
Other comprehensive income attributable to HollyFrontier stockholders	$	16,325		$	6,317		$	10,008

25

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

The following table presents the income statement line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”):

AOCI Component	Gain (Loss) Reclassified From AOCI						Income Statement Line Item
	(In thousands)
	Three Months Ended June 30,
	2017			2016
Hedging instruments:
Commodity price swaps	$	4,476		$	(15,897	)	Sales and other revenues
	(4,421		)	(6,283		)	Operating expenses
Interest rate swaps	102			(113		)	Interest expense
	157			(22,293		)
	36			(8,601		)	Income tax expense (benefit)
	121			(13,692		)	Net of tax
	(65		)	69			Noncontrolling interest
	56			(13,623		)	Net of tax and noncontrolling interest
Total reclassifications for the period	$	56		$	(13,623	)
	Six Months Ended June 30,
	2017			2016
Marketable securities	$	—		$	(23	)	Interest income
	—			(9		)	Income tax benefit
	—			(14		)	Net of tax
Hedging instruments:
Commodity price swaps	8,426			(20,653		)	Sales and other revenues
	(299		)	—			Cost of products sold
	(8,716		)	(12,853		)	Operating expenses
Interest rate swaps	115			(343		)	Interest expense
	(474		)	(33,849		)
	(212		)	(13,019		)	Income tax benefit
	(262		)	(20,830		)	Net of tax
	(73		)	209			Noncontrolling interest
	(335		)	(20,621		)	Net of tax and noncontrolling interest
Total reclassifications for the period	$	(335	)	$	(20,635	)

Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes:

	June 30, 2017			December 31, 2016
	(In thousands)
Foreign currency translation adjustment	$	4,931		$	—
Unrealized gain on post-retirement benefit obligations	20,055			20,055
Unrealized gain on marketable securities	—			3
Unrealized loss on hedging instruments, net of noncontrolling interest	(6,201		)	(9,446		)
Accumulated other comprehensive income	$	18,785		$	10,612

NOTE 14: Post-retirement Plans

In connection with our PCLI acquisition, we agreed to establish employee benefit plans including union and non-union pension plans and a post retirement plan for PCLI employees that were previously covered under legacy Suncor plans.

Our agreement with Suncor also provides that pension assets related to the union and non-union pension plans will be transferred to a pension trust which will be established by us. The amount of assets to be transferred will be agreed by Suncor and us based on actuarial valuations and a formula specified in the SPA.

26

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Our purchase price allocation as of February 1, 2017 included estimates of the amount of pension benefit obligation and the pension assets to be transferred based on actuarial estimates and are as follows:

	February 1, 2017
	(in thousands)
Projected benefit obligation	$	50,827
Estimated pension assets	52,082
Estimated funded status	$	1,255

The net periodic pension expense of these plans consisted of the following components:

	Three Months Ended June 30, 2017			February 1, 2017 to June 30, 2017
	(in thousands)
Service cost - benefit earned during the period	$	944		$	1,582
Interest cost on projected benefit obligations	518			868
Expected return on plan assets	(747		)	(1,252		)
Net periodic pension expense	$	715		$	1,198

We have a post-retirement healthcare and other benefits plan that is available to certain of our non-PCLI employees who satisfy certain age and service requirements. The net periodic benefit credit of this plan consisted of the following components:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands)
Service cost – benefit earned during the period	$	301		$	324		$	601		$	648
Interest cost on projected benefit obligations	169			197			339			394
Amortization of prior service credit	(870		)	(871		)	(1,740		)	(1,742		)
Net periodic post-retirement credit	$	(400	)	$	(350	)	$	(800	)	$	(700	)

In addition, we established a post-retirement healthcare and other benefits plan for our PCLI employees. Our purchase price allocation as of February 1, 2017 included estimates of the amount of projected benefit obligations of $8.2 million. The net periodic benefit expense related to this plan was $0.1 million and $0.3 million for the three and the six months ended June 30, 2017, respectively.

NOTE 15: Contingencies

We are a party to various litigation and legal proceedings which we believe, based on advice of counsel, will not either individually or in the aggregate have a material adverse effect on our financial condition, results of operations or cash flows.

In March, 2006, a subsidiary of ours sold the assets of Montana Refining Company under an Asset Purchase Agreement (“APA”). Calumet Montana Refining LLC, the current owner of the assets, has submitted requests for reimbursement pursuant to contractual indemnity provisions under the APA for various costs incurred, as well as additional claims related to environmental matters. This matter is scheduled for arbitration beginning in January 2018. We have accrued the costs we believe are owed pursuant to the APA, and we estimate that any reasonably possible losses beyond the amounts accrued are not material.

27

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

NOTE 16: Segment Information

Our operations are organized into three reportable segments, Refining, PCLI and HEP. Our operations that are not included in the Refining, PCLI 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 HFC 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. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

On February 1, 2017, we acquired PCLI, a Canadian-based producer of lubricant products such as base oils, white oils, specialty products and finished lubricants. The PCLI segment involves production operations, located in Mississauga, Ontario, and marketing of its products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China.

The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP); a 50% ownership interest in each of the Frontier Pipeline, Osage Pipeline and the Cheyenne Pipeline and a 25% ownership 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, 2016.

28

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

	Refining (1)			PCLI		HEP (2)		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended June 30, 2017
Sales and other revenues	$	3,141,137		$	309,566	$	109,143	$	15		$	(100,997	)	$	3,458,864
Operating expenses	$	245,265		$	52,652	$	34,097	$	1,322		$	(17,684	)	$	315,652
Depreciation and amortization	$	75,656		$	7,302	$	19,541	$	2,990		$	(207	)	$	105,282
Income (loss) from operations	$	86,603		$	17,511	$	52,890	$	(34,746	)	$	(573	)	$	121,685
Earnings of equity method investments	$	—		$	—	$	4,053	$	—		$	—		$	4,053
Capital expenditures	$	52,190		$	8,757	$	12,259	$	4,087		$	—		$	77,293
Three Months Ended June 30, 2016
Sales and other revenues	$	2,699,022		$	—	$	94,896	$	47		$	(79,327	)	$	2,714,638
Operating expenses	$	225,683		$	—	$	29,212	$	1,152		$	(4,711	)	$	251,336
Depreciation and amortization	$	72,023		$	—	$	15,308	$	3,299		$	(207	)	$	90,423
Income (loss) from operations	$	(436,214	)	$	—	$	47,514	$	(31,197	)	$	(645	)	$	(420,542	)
Earnings of equity method investments	$	—		$	—	$	3,623	$	—		$	—		$	3,623
Capital expenditures	$	105,875		$	—	$	33,201	$	1,396		$	—		$	140,472
Six Months Ended June 30, 2017
Sales and other revenues	$	6,003,213		$	511,506	$	214,777	$	42		$	(190,191	)	$	6,539,347
Operating expenses	$	502,380		$	88,681	$	66,586	$	2,335		$	(37,213	)	$	622,769
Depreciation and amortization	$	145,324		$	12,376	$	37,914	$	6,122		$	(414	)	$	201,322
Income (loss) from operations	$	36,348		$	29,905	$	105,028	$	(81,181	)	$	(1,139	)	$	88,961
Earnings of equity method investments	$	—		$	—	$	5,893	$	—		$	—		$	5,893
Capital expenditures	$	99,864		$	10,352	$	20,524	$	6,310		$	—		$	137,050
Six Months Ended June 30, 2016
Sales and other revenues	$	4,698,609		$	—	$	196,906	$	157		$	(162,310	)	$	4,733,362
Operating expenses	$	453,512		$	—	$	56,968	$	2,407		$	(8,968	)	$	503,919
Depreciation and amortization	$	140,901		$	—	$	31,337	$	6,479		$	(414	)	$	178,303
Income (loss) from operations	$	(380,281	)	$	—	$	102,648	$	(58,052	)	$	(1,259	)	$	(336,944	)
Earnings of equity method investments	$	—		$	—	$	6,388	$	—		$	—		$	6,388
Capital expenditures	$	210,582		$	—	$	75,385	$	4,078		$	—		$	290,045

June 30, 2017
Cash, cash equivalents and investments in marketable securities	$	2,311	$	68,346	$	16,339	$	373,330	$	—		$	460,326
Total assets	$	6,354,911	$	1,194,478	$	1,904,951	$	471,367	$	(282,672	)	$	9,643,035
Long-term debt	$	—	$	—	$	1,236,739	$	991,212	$	—		$	2,227,951
December 31, 2016
Cash, cash equivalents and investments in marketable securities	$	49	$	—	$	3,657	$	1,131,021	$	—		$	1,134,727
Total assets	$	6,513,806	$	—	$	1,920,487	$	1,306,169	$	(304,801	)	$	9,435,661
Long-term debt	$	—	$	—	$	1,243,912	$	991,225	$	—		$	2,235,137

(1) For the three and six months ended June 30, 2017, we recorded a long-lived asset impairment charge of $19.2 million that related to our Woods Cross Refinery, which is included in our Refining segment. For the three and six months ended June 30, 2016, we recorded goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million, respectively, that relate to our Cheyenne Refinery, which is included in our Refining segment.

29

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

(2) HEP acquired a newly constructed crude unit, FCCU and polymerization unit at our Woods Cross Refinery in October 2016. As a result, we have recast our 2016 HEP segment information to include these asset-related capital expenditures and certain operating expenses that were previously presented under the Refining segment.

HEP segment revenues from external customers were $16.0 million and $15.7 million for the three months ended June 30, 2017 and 2016, respectively, and $32.6 million and $34.9 million for the six months ended June 30, 2017 and 2016, respectively.

NOTE 17: Additional Financial Information

Borrowings pursuant to the HollyFrontier Credit Agreement are recourse to HollyFrontier, but not HEP. Furthermore, borrowings under the HEP Credit Agreement are recourse to HEP, but not to the assets of HFC with the exception of HEP Logistics Holdings, L.P., HEP’s general partner. Other than its investment in HEP, the assets of the general partner are insignificant.

The following condensed financial information is provided for HollyFrontier Corporation (on a standalone basis, before consolidation of HEP), and for HEP and its consolidated subsidiaries (on a standalone basis, exclusive of HFC). Due to certain basis differences, our reported amounts for HEP may not agree to amounts reported in HEP’s periodic public filings.

Condensed Consolidating Balance Sheet
June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	443,987	$	16,339	$	—		$	460,326
Accounts receivable, net	601,098		44,738		(43,486		)	602,350
Inventories	1,190,503		1,470		—			1,191,973
Income taxes receivable	1,428		—		—			1,428
Prepayments and other	42,199		1,652		(6,165		)	37,686
Total current assets	2,279,215		64,199		(49,651		)	2,293,763
Properties, plants and equipment, net	3,320,339		1,347,276		(224,057		)	4,443,558
Intangibles and other assets	2,411,622		493,476		616			2,905,714
Total assets	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,036,693	$	15,928	$	(43,486	)	$	1,009,135
Income tax payable	24,427		—		—			24,427
Accrued liabilities	161,371		31,680		(6,165		)	186,886
Total current liabilities	1,222,491		47,608		(49,651		)	1,220,448
Long-term debt	991,212		1,236,739		—			2,227,951
Liability to HEP	202,382		—		(202,382		)	—
Deferred income taxes	744,401		649		—			745,050
Other long-term liabilities	146,718		61,312		(528		)	207,502
Investment in HEP	151,055		—		(151,055		)	—
Equity – HollyFrontier	4,552,917		466,113		(405,127		)	4,613,903
Equity – noncontrolling interest	—		92,530		535,651			628,181
Total liabilities and equity	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035

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 taxes	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 Statement of Income and Comprehensive Income
Three Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	3,442,999		$	109,143		$	(93,278	)	$	3,458,864
Operating costs and expenses:
Cost of products sold	2,828,274			—			(74,834		)	2,753,440
Lower of cost or market inventory valuation adjustment	83,982			—			—			83,982
Operating expenses	299,239			34,097			(17,684		)	315,652
General and administrative	56,941			2,615			20			59,576
Depreciation and amortization	89,311			19,541			(3,570		)	105,282
Goodwill and asset impairment	19,247			—			—			19,247
Total operating costs and expenses	3,376,994			56,253			(96,068		)	3,337,179
Income from operations	66,005			52,890			2,790			121,685
Other income (expense):
Earnings of equity method investments	26,949			4,053			(26,949		)	4,053
Interest expense	(13,393		)	(13,645		)	(2,431		)	(29,469		)
Other, net	9,710			90			—			9,800
	23,266			(9,502		)	(29,380		)	(15,616		)
Income before income taxes	89,271			43,388			(26,590		)	106,069
Income tax expense	31,868			128			—			31,996
Net income	57,403			43,260			(26,590		)	74,073
Less net income (loss) attributable to noncontrolling interest	(4		)	1,521			14,789			16,306
Net income attributable to HollyFrontier stockholders	$	57,407		$	41,739		$	(41,379	)	$	57,767
Comprehensive income attributable to HollyFrontier stockholders	$	68,062		$	41,690		$	(41,324	)	$	68,428

30

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	2,699,069		$	94,896		$	(79,327	)	$	2,714,638
Operating costs and expenses:
Cost of products sold		2,321,919			—			(73,764		)	2,248,155
Lower of cost or market inventory valuation adjustment		(138,473		)	—			—			(138,473		)
Operating expenses		226,835			29,212			(4,711		)	251,336
General and administrative		26,793			2,862			—			29,655
Depreciation and amortization		78,686			15,308			(3,571		)	90,423
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		3,169,844			47,382			(82,046		)	3,135,180
Income (loss) from operations		(470,775		)	47,514			2,719			(420,542		)
Other income (expense):
Earnings of equity method investments		25,096			3,623			(25,096		)	3,623
Interest expense		(339		)	(11,164		)	(2,221		)	(13,724		)
Other, net		127			1			—			128
		24,884			(7,540		)	(27,317		)	(9,973		)
Income (loss) before income taxes		(445,891		)	39,974			(24,598		)	(430,515		)
Income tax expense (benefit)		(38,098		)	53			—			(38,045		)
Net income (loss)		(407,793		)	39,921			(24,598		)	(392,470		)
Less net income (loss) attributable to noncontrolling interest		(9		)	2,355			14,552			16,898
Net income (loss) attributable to HollyFrontier stockholders		$	(407,784	)	$	37,566		$	(39,150	)	$	(409,368	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(397,364	)	$	37,510		$	(39,095	)	$	(398,949	)

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2017		HollyFrontier Corp. Before Consolidation of HEP				HEP Segment				Consolidations and Eliminations				Consolidated
	(In thousands)
Sales and other revenues		$	6,507,042			$	214,777			$	(182,472	)		$	6,539,347
Operating costs and expenses:						—
Cost of products sold		5,538,303				—				(143,706		)		5,394,597
Lower of cost or market inventory valuation adjustment		95,805				—				—				95,805
Operating expenses		593,396				66,586				(37,213		)		622,769
General and administrative		111,397				5,249				—				116,646
Depreciation and amortization		170,511				37,914				(7,103		)		201,322
Goodwill and asset impairment		19,247				—				—				19,247
Total operating costs and expenses		6,528,659			—	109,749			—	(188,022		)	—	6,450,386
Income (loss) from operations		(21,617		)		105,028				5,550				88,961
Other income (expense):
Earnings of equity method investments		47,537				5,893				(47,537		)		5,893
Interest expense		(23,977		)		(27,082		)		(4,749		)		(55,808		)
Loss on early extinguishment of debt		—				(12,225		)		—				(12,225		)
Other, net		24,514				163				—				24,677
		48,074				(33,251		)		(52,286		)		(37,463		)
Income before income taxes		26,457				71,777				(46,736		)		51,498
Income tax expense		14,973				234				—				15,207
Net income		11,484				71,543				(46,736		)		36,291
Less net income (loss) attributable to noncontrolling interest		(14		)		3,837				20,169				23,992
Net income attributable to HollyFrontier stockholders		$	11,498			$	67,706			$	(66,905	)		$	12,299
Comprehensive income attributable to HollyFrontier stockholders		$	19,671			$	67,695			$	(66,894	)		$	20,472

31

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	4,698,766		$	196,906		$	(162,310	)	$	4,733,362
Operating costs and expenses:
Cost of products sold		4,024,987			—			(151,669		)	3,873,318
Lower of cost or market inventory valuation adjustment		(194,594		)	—			—			(194,594		)
Operating expenses		455,919			56,968			(8,968		)	503,919
General and administrative		49,323			5,953			—			55,276
Depreciation and amortization		154,107			31,337			(7,141		)	178,303
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		5,143,826			94,258			(167,778		)	5,070,306
Income (loss) from operations		(445,060		)	102,648			5,468			(336,944		)
Other income (expense):
Earnings of equity method investments		50,893			6,388			(50,893		)	6,388
Interest income (expense)		369			(21,587		)	(4,518		)	(25,736		)
Loss on early extinguishment of debt		(8,718		)	—			—			(8,718		)
Other, net		200			(7		)	—			193
		42,744			(15,206		)	(55,411		)	(27,873		)
Income (loss) before income taxes		(402,316		)	87,442			(49,943		)	(364,817		)
Income tax expense (benefit)		(15,886		)	149			—			(15,737		)
Net income (loss)		(386,430		)	87,293			(49,943		)	(349,080		)
Less net income (loss) attributable to noncontrolling interest		(16		)	7,282			31,769			39,035
Net income (loss) attributable to HollyFrontier stockholders		$	(386,414	)	$	80,011		$	(81,712	)	$	(388,115	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(376,405	)	$	79,777		$	(81,479	)	$	(378,107	)

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	420,404		$	113,597		$	(60,603	)	$	473,398
Cash flows from investing activities
Additions to properties, plants and equipment	(116,526		)	—			—			(116,526		)
Additions to properties, plants and equipment – HEP	—			(20,524		)	—			(20,524		)
Purchase of PCLI, net of cash acquired	(870,627		)	—			—			(870,627		)
Purchases of marketable securities	(41,565		)	—			—			(41,565		)
Sales and maturities of marketable securities	465,716			—			—			465,716
Other, net	1,152			2,289			(424		)	3,017
	(561,850		)	(18,235		)	(424		)	(580,509		)
Cash flows from financing activities
Net borrowings under credit agreements	—			290,000			—			290,000
Redemption of senior notes - HEP	—			(309,750		)	—			(309,750		)
Net proceeds from issuance of common units - HEP	—			52,634			—			52,634
Dividends	(117,754		)	—			—			(117,754		)
Distributions to noncontrolling interest	—			(115,695		)	61,919			(53,776		)
Other, net	(4,059		)	131			(892		)	(4,820		)
	(121,813		)	(82,680		)	61,027			(143,466		)
Effect of exchange rates on cash flows	324			—			—			324
Cash and cash equivalents
Increase (decrease) for the period	(262,935		)	12,682			—			(250,253		)
Beginning of period	706,922			3,657			—			710,579
End of period	$	443,987		$	16,339		$	—		$	460,326

32

HOLLYFRONTIER CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) Continued

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	256,019		$	104,076		$	(49,769	)	$	310,326
Cash flows from investing activities:
Additions to properties, plants and equipment	(214,660		)	—			—			(214,660		)
Additions to properties, plants and equipment – HEP	—			(75,385		)	—			(75,385		)
Purchase of equity method investment - HEP	—			(42,500		)	—			(42,500		)
Purchases of marketable securities	(86,798		)	—			—			(86,798		)
Sales and maturities of marketable securities	149,599			—			—			149,599
Other, net	390			18			—			408
	(151,469		)	(117,867		)	—			(269,336		)
Cash flows from financing activities:
Net borrowings under credit agreements	—			74,000			—			74,000
Net proceeds from issuance of senior notes - HFC	246,690			—			—			246,690
Net proceeds from issuance of term loan	350,000			—			—			350,000
Net proceeds from issuance of common units - HEP	—			13,690			—			13,690
Repayment of financing obligation	—			(39,500		)	—			(39,500		)
Purchase of treasury stock	(133,430		)	—			—			(133,430		)
Dividends	(116,795		)	—			—			(116,795		)
Distributions to noncontrolling interest	—			(93,609		)	49,769			(43,840		)
Contribution from general partner	(53,304		)	53,304			—			—
Other, net	(2,123		)	(4,225		)	—			(6,348		)
	291,038			3,660			49,769			344,467
Cash and cash equivalents
Increase (decrease) for the period:	395,588			(10,131		)	—			385,457
Beginning of period	51,520			15,013			—			66,533
End of period	$	447,108		$	4,882		$	—		$	451,990

33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Item 2 contains “forward-looking” statements. See “Forward-Looking Statements” at the beginning of Part I of this Quarterly Report on Form 10-Q. References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In this document, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. This document contains certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries.

OVERVIEW

We are principally an independent petroleum refiner that produces high-value refined products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. We own and operate refineries having a combined nameplate crude oil processing capacity of 457,000 barrels per day that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Our refineries are located in El Dorado, Kansas (the “El Dorado Refinery”), Tulsa, Oklahoma (the, “Tulsa Refineries”), which comprise two production facilities, the Tulsa West and East facilities, Artesia, New Mexico, which operates in conjunction with crude, vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”), Cheyenne, Wyoming (the “Cheyenne Refinery”) and Woods Cross, Utah (the “Woods Cross Refinery”).

On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into a share purchase agreement with Suncor to acquire 100% of the outstanding capital stock of Petro-Canada Lubricants Inc. (“PCLI”). The acquisition closed on February 1, 2017. Cash consideration paid was $862.0 million, or $1.125 billion in Canadian dollars.

PCLI is Canadian-based producer of base oils with a plant having 15,600 BPD of lubricant production capacity that is located in Mississauga, Ontario. The facility is downstream integrated from base oils to finished lubricants and produces a broad spectrum of specialty lubricants and white oils that are distributed to end customers worldwide through a global sales network with locations in Canada, the United States, Europe and China.

For the three months ended June 30, 2017, net income attributable to HollyFrontier stockholders was $57.8 million compared to a net loss of $(409.4) million for the three months ended June 30, 2016. For the six months ended June 30, 2017, net income attributable to HollyFrontier stockholders was $12.3 million compared to a net loss of $(388.1) million for the six months ended June 30, 2016. Included in our financial results for the second quarter of 2016 were non-cash items consisting of goodwill and long-lived asset impairment charges, offset by our second quarter lower of cost or market inventory reserve adjustment. Second quarter 2017 earnings reflect improved refining margins relative to prior period levels, with overall gross refining margin per produced barrel increasing 29% compared to the three months ended June 30, 2016. Additionally, our second quarter results reflect $12.6 million in earnings attributable to our recently acquired PCLI operations.

Pursuant to the 2007 Energy Independence and Security Act, the Environmental Protection Agency (“EPA”) promulgated the Renewable Fuel Standard 2 (“RFS2”) regulations, which increased the volume of renewable fuels mandated to be blended into the nation’s fuel supply. The regulations, in part, require refiners to add annually increasing amounts of “renewable fuels” to their petroleum products or purchase credits, known as renewable identification numbers (“RINs”), in lieu of such blending. Compliance with RFS2 significantly increases our cost of products sold, with RINs costs totaling $53.0 million for the three months ended June 30, 2017, which is net of the $30.5 million cost reduction resulting from reinstatement of 2016 RINs as described below.

In May 2017, the EPA granted the Cheyenne Refinery a one-year small refinery exemption from the Renewable Fuel Standard (RFS) program requirements for the 2016 calendar year. As a result, the Cheyenne Refinery’s gasoline and diesel production are not subject to the percentage of production that must satisfy aRenewable Volume Obligation (“RVO”) for 2016. We are currently working with the EPA to reinstate RINs previously submitted to meet our Cheyenne Refinery’s 2016 RVO and expect the EPA to reinstate these RINs. The cost of the RINs used earlier to satisfy the Cheyenne Refinery’s 2016 RVO of $30.5 million was charged to cost of products sold in 2016. In the second quarter of 2017, we reduced our cost of products sold by this amount, representing the cost of the RINs to be reinstated as a result of the RFS exemption received by the Cheyenne Refinery.

34

OUTLOOK

Our profitability is largely driven by our operational reliability and crack spreads (the price difference between refined products and inputs such as crude oil). Crack spreads are driven by the supply and demand of refined product markets. We believe 2016 represented a cyclical low driven by large additions of refining capacity around the world. Based on continued demand growth and limited capacity additions, we expect crack spreads to be higher in 2017 than 2016.

Our RINs costs are material and represent a cost of products sold. The price of RINs may be extremely volatile due to real or perceived future shortages in RINs. As of June 30, 2017, we are purchasing RINs in order to meet approximately half of our renewable fuel requirements.

A more detailed discussion of our financial and operating results for the three and six months ended June 30, 2017 and 2016 is presented in the following sections.

RESULTS OF OPERATIONS

Financial Data

	Three Months Ended June 30,						Change from 2016
	2017			2016			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	3,458,864		$	2,714,638		$	744,226		27	%
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization):
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	2,753,440			2,248,155			505,285			22
Lower of cost or market inventory valuation adjustment	83,982			(138,473		)	222,455			(161	)
	2,837,422			2,109,682			727,740			34
Operating expenses (exclusive of depreciation and amortization)	315,652			251,336			64,316			26
General and administrative expenses (exclusive of depreciation and amortization)	59,576			29,655			29,921			101
Depreciation and amortization	105,282			90,423			14,859			16
Goodwill and asset impairment	19,247			654,084			(634,837		)	(97	)
Total operating costs and expenses	3,337,179			3,135,180			201,999			6
Income (loss) from operations	121,685			(420,542		)	542,227			(129	)
Other income (expense):
Earnings of equity method investments	4,053			3,623			430			12
Interest income	176			527			(351		)	(67	)
Interest expense	(29,645		)	(14,251		)	(15,394		)	108
Gain on foreign currency transactions	10,328			—			10,328			—
Other, net	(528		)	128			(656		)	(513	)
	(15,616		)	(9,973		)	(5,643		)	57
Income (loss) before income taxes	106,069			(430,515		)	536,584			(125	)
Income tax expense (benefit)	31,996			(38,045		)	70,041			(184	)
Net income (loss)	74,073			(392,470		)	466,543			(119	)
Less net income attributable to noncontrolling interest	16,306			16,898			(592		)	(4	)
Net income (loss) attributable to HollyFrontier stockholders	$	57,767		$	(409,368	)	$	467,135		(114	)%
Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	0.33		$	(2.33	)	$	2.66		(114	)%
Diluted	$	0.33		$	(2.33	)	$	2.66		(114	)%
Cash dividends declared per common share	$	0.33		$	0.33		$	—		—	%
Average number of common shares outstanding:
Basic	176,147			175,865			282			—	%
Diluted	176,302			175,865			437			—	%

35

	Six Months Ended June 30,						Change from 2016
	2017			2016			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	6,539,347		$	4,733,362		$	1,805,985		38	%
Operating costs and expenses:
Cost of products sold (exclusive of depreciation and amortization):
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	5,394,597			3,873,318			1,521,279			39
Lower of cost or market inventory valuation adjustment	95,805			(194,594		)	290,399			(149	)
	5,490,402			3,678,724			1,811,678			49
Operating expenses (exclusive of depreciation and amortization)	622,769			503,919			118,850			24
General and administrative expenses (exclusive of depreciation and amortization)	116,646			55,276			61,370			111
Depreciation and amortization	201,322			178,303			23,019			13
Goodwill and asset impairment	19,247			654,084			(634,837		)	(97	)
Total operating costs and expenses	6,450,386			5,070,306			1,380,080			27
Income (loss) from operations	88,961			(336,944		)	425,905			(126	)
Other income (expense):
Earnings of equity method investments	5,893			6,388			(495		)	(8	)
Interest income	995			602			393			65
Interest expense	(56,803		)	(26,338		)	(30,465		)	116
Loss on early extinguishment of debt	(12,225		)	(8,718		)	(3,507		)	40
Gain on foreign currency swaps	24,545			—			24,545			—
Gain on foreign currency transactions	395			—			395			—
Other, net	(263		)	193			(456		)	(236	)
	(37,463		)	(27,873		)	(9,590		)	34
Income (loss) before income taxes	51,498			(364,817		)	416,315			(114	)
Income tax expense (benefit)	15,207			(15,737		)	30,944			(197	)
Net income (loss)	36,291			(349,080		)	385,371			(110	)
Less net income attributable to noncontrolling interest	23,992			39,035			(15,043		)	(39	)
Net income (loss) attributable to HollyFrontier stockholders	$	12,299		$	(388,115	)	$	400,414		(103	)%
Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	0.07		$	(2.20	)	$	2.27		(103	)%
Diluted	$	0.07		$	(2.20	)	$	2.27		(103	)%
Cash dividends declared per common share	$	0.66		$	0.66		$	—		—	%
Average number of common shares outstanding:
Basic	176,141			176,301			(160		)	—	%
Diluted	176,490			176,301			189			—	%

Balance Sheet Data

	June 30, 2017		December 31, 2016
	(Unaudited)
	(In thousands)
Cash, cash equivalents and total investments in marketable securities	$	460,326	$	1,134,727
Working capital	$	1,073,315	$	1,767,780
Total assets	$	9,643,035	$	9,435,661
Long-term debt	$	2,227,951	$	2,235,137
Total equity	$	5,242,084	$	5,301,985

36

Other Financial Data

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands)
Net cash provided by (used for) operating activities	$	512,782		$	303,690		$	473,398		$	310,326
Net cash used for investing activities	$	(107,493	)	$	(264,143	)	$	(580,509	)	$	(269,336	)
Net cash provided by (used for) financing activities	$	(75,103	)	$	301,422		$	(143,466	)	$	344,467
Capital expenditures	$	77,293		$	140,472		$	137,050		$	290,045
EBITDA (1)	$	224,514		$	(343,266	)	$	296,861		$	(191,095	)

(1) Earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA,” is calculated as net income (loss) plus (i) interest expense, net of interest income, (ii) income tax provision, and (iii) depreciation and amortization. EBITDA is not a calculation provided for under GAAP; however, the amounts included in the EBITDA calculation are derived from amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented here because it is a widely used financial indicator used by investors and analysts to measure performance. EBITDA is also used by our management for internal analysis. EBITDA presented above is reconciled to net income under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following Item 3 of Part I of this Form 10-Q.

Our operations are organized into three reportable segments, Refining, PCLI and HEP. See Note 16 “Segment Information” in the Notes to Consolidated Financial Statements for additional information on our reportable segments.

Refining Operating Data

Our refinery operations include the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries.The following tables set forth information, including non-GAAP performance measures, about our consolidated refinery operations. The cost of products and refinery gross and net operating margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments and depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following Item 3 of Part I of this Form 10-Q.

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Mid-Continent Region (El Dorado and Tulsa Refineries)
Crude charge (BPD) (1)	290,460			270,590			256,370			252,070
Refinery throughput (BPD) (2)	304,840			292,320			263,730			272,240
Refinery production (BPD) (3)	293,860			280,590			263,400			261,340
Sales of produced refined products (BPD)	281,670			264,660			254,830			249,010
Sales of refined products (BPD) (4)	308,280			285,780			281,970			274,000
Refinery utilization (5)	111.7		%	104.1		%	98.6		%	97.0		%
Average per produced barrel (6)
Net sales	$	65.01		$	60.24		$	65.76		$	53.89
Cost of products (7)	55.63			52.55			57.59			46.13
Refinery gross margin (8)	9.38			7.69			8.17			7.76
Refinery operating expenses (9)	4.48			4.56			5.21			4.95
Net operating margin (8)	$	4.90		$	3.13		$	2.96		$	2.81
Refinery operating expenses per throughput barrel (10)	$	4.14		$	4.13		$	5.03		$	4.53

37

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Mid-Continent Region (El Dorado and Tulsa Refineries)
Feedstocks:
Sweet crude oil	62	%	58	%	60	%	55	%
Sour crude oil	18	%	17	%	19	%	19	%
Heavy sour crude oil	15	%	17	%	15	%	19	%
Other feedstocks and blends	5	%	8	%	6	%	7	%
Total	100	%	100	%	100	%	100	%
Sales of produced refined products:
Gasolines	50	%	47	%	50	%	48	%
Diesel fuels	34	%	35	%	32	%	35	%
Jet fuels	6	%	6	%	7	%	6	%
Fuel oil	1	%	1	%	1	%	1	%
Asphalt	3	%	3	%	3	%	2	%
Lubricants	4	%	5	%	5	%	5	%
LPG and other	2	%	3	%	2	%	3	%
Total	100	%	100	%	100	%	100	%

Southwest Region (Navajo Refinery)
Crude charge (BPD) (1)	102,120			101,660			88,370			99,890
Refinery throughput (BPD) (2)	112,720			111,610			96,200			110,370
Refinery production (BPD) (3)	111,240			110,520			94,770			109,020
Sales of produced refined products (BPD)	108,390			110,360			92,460			111,870
Sales of refined products (BPD) (4)	110,350			111,570			100,570			112,660
Refinery utilization (5)	102.1		%	101.7		%	88.4		%	99.9		%
Average per produced barrel (6)
Net sales	$	65.97		$	61.86		$	66.46		$	53.67
Cost of products (7)	54.63			50.71			56.32			44.66
Refinery gross margin (8)	11.34			11.15			10.14			9.01
Refinery operating expenses (9)	4.96			4.77			5.76			4.50
Net operating margin (8)	$	6.38		$	6.38		$	4.38		$	4.51
Refinery operating expenses per throughput barrel (10)	$	4.77		$	4.72		$	5.54		$	4.56
Feedstocks:
Sweet crude oil	25		%	27		%	22		%	30		%
Sour crude oil	66		%	64		%	70		%	60		%
Other feedstocks and blends	9		%	9		%	8		%	10		%
Total	100		%	100		%	100		%	100		%
Sales of produced refined products:
Gasolines	52		%	54		%	52		%	55		%
Diesel fuels	42		%	41		%	41		%	40		%
Fuel oil	2		%	2		%	3		%	2		%
Asphalt	1		%	1		%	1		%	1		%
LPG and other	3		%	2		%	3		%	2		%
Total	100		%	100		%	100		%	100		%

Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
Crude charge (BPD) (1)	74,510		56,340		74,610		57,880
Refinery throughput (BPD) (2)	80,740		54,680		82,240		61,950
Refinery production (BPD) (3)	78,110		51,550		79,630		58,900
Sales of produced refined products (BPD)	75,840		56,090		78,300		61,370
Sales of refined products (BPD) (4)	76,070		61,950		78,740		65,960
Refinery utilization (5)	76.8	%	67.9	%	76.9	%	69.7	%

38

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
Average per produced barrel (6)
Net sales	$	68.52		$	62.26		$	67.14		$	53.86
Cost of products (7)	49.05			52.22			52.47			45.04
Refinery gross margin (8)	19.47			10.04			14.67			8.82
Refinery operating expenses (9)	10.34			11.48			10.20			10.51
Net operating margin (8)	$	9.13		$	(1.44	)	$	4.47		$	(1.69	)
Refinery operating expenses per throughput barrel (10)	$	9.71		$	11.78		$	9.71		$	10.41
Feedstocks:
Sweet crude oil	32		%	45		%	35		%	42		%
Heavy sour crude oil	39		%	35		%	36		%	34		%
Black wax crude oil	21		%	20		%	20		%	17		%
Other feedstocks and blends	8		%	—		%	9		%	7		%
Total	100		%	100		%	100		%	100		%
Sales of produced refined products:
Gasolines	59		%	58		%	59		%	60		%
Diesel fuels	33		%	36		%	33		%	34		%
Fuel oil	3		%	1		%	2		%	2		%
Asphalt	3		%	1		%	4		%	1		%
LPG and other	2		%	4		%	2		%	3		%
Total	100		%	100		%	100		%	100		%

Consolidated
Crude charge (BPD) (1)	467,090			428,590			419,350			409,840
Refinery throughput (BPD) (2)	498,300			458,610			442,170			444,560
Refinery production (BPD) (3)	483,210			442,660			437,800			429,260
Sales of produced refined products (BPD)	465,900			431,110			425,590			422,250
Sales of refined products (BPD) (4)	494,700			459,300			461,280			452,620
Refinery utilization (5)	102.2		%	96.7		%	91.8		%	92.5		%
Average per produced barrel (6)
Net sales	$	65.80		$	60.92		$	66.17		$	53.83
Cost of products (7)	54.33			52.04			56.37			45.58
Refinery gross margin (8)	11.47			8.88			9.80			8.25
Refinery operating expenses (9)	5.54			5.51			6.25			5.64
Net operating margin (8)	$	5.93		$	3.37		$	3.55		$	2.61
Refinery operating expenses per throughput barrel (10)	$	5.18		$	5.18		$	6.01		$	5.35
Feedstocks:
Sweet crude oil	49		%	49		%	48		%	47		%
Sour crude oil	26		%	27		%	26		%	27		%
Heavy sour crude oil	16		%	15		%	15		%	16		%
Black wax crude oil	3		%	2		%	4		%	2		%
Other feedstocks and blends	6		%	7		%	7		%	8		%
Total	100		%	100		%	100		%	100		%

39

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Consolidated
Sales of produced refined products:
Gasolines	52	%	50	%	52	%	51	%
Diesel fuels	36	%	37	%	34	%	36	%
Jet fuels	4	%	4	%	5	%	4	%
Fuel oil	1	%	1	%	1	%	1	%
Asphalt	2	%	2	%	2	%	2	%
Lubricants	3	%	3	%	3	%	3	%
LPG and other	2	%	3	%	3	%	3	%
Total	100	%	100	%	100	%	100	%

(1) Crude charge represents the barrels per day of crude oil processed at our refineries.

(2) Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries.

(3) Refinery production represents the barrels per day of refined products yielded from processing crude and other refinery feedstocks through the crude units and other conversion units at our refineries.

(4) Includes refined products purchased for resale.

(5) Represents crude charge divided by total crude capacity (BPSD). Effective July 1, 2016, our consolidated crude capacity increased from 443,000 BPSD to 457,000 BPSD upon completion of our Woods Cross Refinery expansion project.

(6) Represents average per barrel amount for produced refined products sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following Item 3 of Part I of this Form 10-Q.

(7) Transportation, terminal and refinery storage costs billed from HEP are included in cost of products.

(8) Excludes lower of cost or market inventory valuation adjustments that decreased gross margin by $84.0 million and increased gross margin by $138.5 million for the three months ended June 30, 2017 and 2016, respectively and decreased gross margin by $95.8 million and increased gross margin by $194.6 million for the six months ended June 30, 2017 and 2016, respectively.

(9) Represents operating expenses of our refineries, exclusive of depreciation and amortization.

(10) Represents refinery operating expenses, exclusive of depreciation and amortization, divided by refinery throughput.

PCLI Operating Data

The following table sets forth information about our our PCLI operations for the period from February 1, 2017 (date of acquisition) through June 30, 2017.

	Three months ended June 30, 2017	Period from February 1, 2017 through June 30, 2017
PCLI
Throughput (BPD) (1)	21,470	21,750
Production (BPD) (2)	20,880	21,230
Sales of produced refined products (BPD)	23,720	20,690

(1) Throughput represents the barrels per day of feedstocks (principally vacuum gas oil and hydrocracker bottoms) input into our PCLI production facilities.

(2) Production represents the barrels per day of products yielded from our PCLI production facilities.

Results of Operations – Three Months Ended June 30, 2017 Compared to Three Months Ended June 30, 2016

Summary

Net income attributable to HollyFrontier stockholders for the three months ended June 30, 2017 was $57.8 million ($0.33 per basic and diluted share), a $467.1 million increase compared to net loss attributable to HollyFrontier stockholders of $(409.4) million ($(2.33) per basic and diluted share) for the three months ended June 30, 2016. Current year second quarter earnings reflect an increase in refining segment sales volumes and margins and $12.6 million in earnings attributable to our recently acquired PCLI operations. Additionally, we recorded long-lived asset impairment charges totaling $23.2 million for the three months ended June 30, 2017 compared to goodwill and long-lived asset impairment charges totaling $654.1 million for the same period of last year. For the three months ended June 30, 2017, lower of cost or market inventory reserve adjustments decreased pre-tax earnings by $84.0 million compared to an increase of $138.5 million for the three months ended June 30, 2016. Refinery gross margins for the three months ended June 30, 2017 increased to $11.47 per produced barrel from $8.88 for the three months ended June 30, 2016. During the second quarter of 2017, our Cheyenne Refinery was granted a one-year small refinery exemption from the EPA at which time we recorded a $30.5 million decrease to our RINs costs, reflecting the reinstatement of RINs previously expensed.

Sales and Other Revenues

Sales and other revenues increased 27% from $2,714.6 million for the three months ended June 30, 2016 to $3,458.9 million for the three months ended June 30, 2017 due to a year-over-year increase in second quarter sales prices and higher refined product sales volumes. The average sales price we received per produced barrel sold was $60.92 for the three months ended June 30, 2016 compared to $65.80 for the three months ended June 30, 2017. Sales and other revenues for the three months ended June 30, 2017 and 2016 include $16.0 million and $15.7 million, respectively, in HEP revenues attributable to pipeline and transportation services provided to unaffiliated parties. PCLI contributed $309.6 million in sales and other revenues for the three months ended June 30, 2017.

Cost of Products Sold

Total cost of products sold increased 34% from $2,109.7 million for the three months ended June 30, 2016 to $2,837.4 million for the three months ended June 30, 2017, due principally to higher crude oil costs and higher sales volumes of refined products. Additionally during second quarter of 2017, we recognized an $84.0 million lower of cost or market inventory valuation charge, a $222.5 million increase compared to a benefit of $138.5 million for the same period of 2016, resulting in a new $428.3 million inventory reserve at June 30, 2017. The reserve at June 30, 2017 is based on market conditions and prices at that time. Excluding this non-cash adjustment, the average price we paid per barrel for crude oil and feedstocks and the transportation costs of moving finished products to market increased 4% from $52.04 for the three months ended June 30, 2016 to $54.33 for the three months ended June 30, 2017. Additionally, we recorded a $30.5 million RINs cost reduction during the second quarter of 2017 as a result of our Cheyenne small refinery exemption. Cost of products sold includes $205.6 million in costs attributable to our PCLI operations.

Gross Refinery Margins

Gross refinery margin per produced barrel increased 29% from $8.88 for the three months ended June 30, 2016 to $11.47 for the three months ended June 30, 2017. This was due to the effects of an increase in the average per barrel sales price for refined products sold, partially offset by increased crude oil and feedstock prices during the current year quarter. Gross refinery margin does not include the non-cash effects of lower of cost or market inventory valuation adjustments, goodwill and asset impairment charges or depreciation and amortization. See “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following Item 3 of Part I of this Form 10-Q for a reconciliation to the income statement of prices of refined products sold and cost of products purchased.

Operating Expenses

Operating expenses, exclusive of depreciation and amortization, increased 26% from $251.3 million for the three months ended June 30, 2016 to $315.7 million for the three months ended June 30, 2017 due principally to $52.7 million in costs attributable to our recently acquired PCLI operations and higher purchased fuel costs compared to the same period of 2016.

General and Administrative Expenses

General and administrative expenses increased 101% from $29.7 million for the three months ended June 30, 2016 to $59.6 million for the three months ended June 30, 2017 due principally to $26.5 million in costs attributable to our recently acquired PCLI operations and $3.7 million in incremental direct acquisition and integration costs of our PCLI business.

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Depreciation and Amortization Expenses

Depreciation and amortization increased 16% from $90.4 million for the three months ended June 30, 2016 to $105.3 million for the three months ended June 30, 2017. This increase was due principally to depreciation and amortization attributable to capitalized improvement projects and capitalized refinery turnaround costs. Depreciation and amortization expenses include $7.3 million in costs attributable to our PCLI operations.

Goodwill and Asset Impairment

During the three months ended June 30, 2017, we recorded a $19.2 million long-lived asset impairment charge resulting from management’s plan to cease further expansion of our Woods Cross Refinery to add lubricants production compared to goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million, respectively, for the three months ended June 30, 2016. See Note 1 “Description of Business and Presentation of Financial Statements” in the Notes to Consolidated Financial Statements for additional information on the Cheyenne Refinery impairment during the second quarter of 2016.

Interest Income

Interest income for the three months ended June 30, 2017 was $0.2 million compared to $0.5 million for the three months ended June 30, 2016. This decrease was due to lower investment levels in marketable debt securities during the current year quarter.

Interest Expense

Interest expense was $29.6 million for the three months ended June 30, 2017 compared to $14.3 million for the three months ended June 30, 2016. This increase is due to interest attributable to higher debt levels during the current year quarter relative to the same period of 2016. For the three months ended June 30, 2017 and 2016, interest expense included $13.7 million and $11.3 million, respectively, in interest costs attributable to limited recourse debt that finances HEP operations.

Gain on Foreign Currency Transactions

Remeasurement adjustments resulting from the conversion of the intercompany financing structure on our PCLI acquisition from local currencies to the U.S. dollar resulted in a $10.3 million gain for the three months ended June 30, 2017.

Income Taxes

For the three months ended June 30, 2017, we recorded income tax expense of $32.0 million compared to an income tax benefit of $38.0 million for the three months ended June 30, 2016. This increase was due principally to pre-tax income during the three months ended June 30, 2017 compared to a pre-tax loss in the same period of 2016. Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were 30.2% and 8.8% for the three months ended June 30, 2017 and 2016, respectively.

Results of Operations – Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Summary

Net income attributable to HollyFrontier stockholders for the six months ended June 30, 2017 was $12.3 million ($0.07 per basic and diluted share), a $400.4 million increase compared to a net loss attributable to HollyFrontier stockholders of $(388.1) million ($(2.20) per basic and diluted share) for the six months ended June 30, 2016. Net income increased due principally to an increase in refining segment sales volumes and gross refining margins and the inclusion of $21.1 million in earnings attributable to our recently acquired PCLI operations. Additionally, we recorded long-lived asset impairment charges totaling $23.2 million for the six months ended June 30, 2017 compared to goodwill and long-lived asset impairment charges totaling $654.1 million for the same period of last year. For the six months ended June 30, 2017, lower of cost or market inventory reserve adjustments decreased pre-tax earnings by $95.8 million compared to an increase of $194.6 million for the six months ended June 30, 2016. Refinery gross margins for the six months ended June 30, 2017 increased to $9.80 per produced barrel from $8.25 for the six months ended June 30, 2016. During the second quarter of 2017, our Cheyenne Refinery was granted a one-year small refinery exemption from the EPA at which time we recorded a $30.5 million decrease to our RINs costs, reflecting the reinstatement of RINs previously expensed.

Sales and Other Revenues

Sales and other revenues increased 38% from $4,733.4 million for the six months ended June 30, 2016 to $6,539.3 million for the six months ended June 30, 2017 due to a year-over-year increase in sales prices and higher refined product sales volumes. The average sales price we received per produced barrel sold was $53.83 for the six months ended June 30, 2016 compared to $66.17 for the six months ended June 30, 2017. Sales and other revenues for the six months ended June 30, 2017 and 2016 include $32.6 million and $34.9 million, respectively, in HEP revenues attributable to pipeline and transportation services provided to unaffiliated parties. PCLI contributed $511.5 million in sales and other revenues for the six months ended June 30, 2017.

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Cost of Products Sold

Total cost of products sold increased 49% from $3,678.7 million for the six months ended June 30, 2016 to $5,490.4 million for the six months ended June 30, 2017, due principally to higher crude oil costs and higher sales volumes of refined products. Additionally, this increase also reflects a $95.8 million charge that is attributable to an increase in the lower of cost or market reserve for the six months ended June 30, 2017, a $290.4 million increase compared to a benefit of $194.6 million for the same period of last year. The reserve at June 30, 2017 is based on market conditions and prices at that time. Excluding this non-cash adjustment, the average price we paid per barrel for crude oil and feedstocks and the transportation costs of moving the finished products to the marketplace increased 24% from $45.58 for the six months ended June 30, 2016 to $56.37 for the six months ended June 30, 2017. Additionally, we recorded a $30.5 million RINs cost reduction during the second quarter of 2017 as a result of our Cheyenne small refinery exemption. Cost of products sold includes $341.9 million in costs attributable to our PCLI operations.

Gross Refinery Margins

Gross refinery margin per produced barrel increased 19% from $8.25 for the six months ended June 30, 2016 to $9.80 for the six months ended June 30, 2017. This was due to the effects of an increase in the average per barrel sales price for refined products sold, partially offset by increased crude oil and feedstock prices during the current year-to-date period. Gross refinery margin does not include the non-cash effects of lower of cost or market inventory valuation adjustments, goodwill and asset impairment charges or depreciation and amortization. See “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following Item 3 of Part I of this Form 10-Q for a reconciliation to the income statement of prices of refined products sold and cost of products purchased.

Operating Expenses

Operating expenses, exclusive of depreciation and amortization, increased 24% from $503.9 million for the six months ended June 30, 2016 to $622.8 million for the six months ended June 30, 2017 due principally to $88.7 million in costs attributable to our recently acquired PCLI operations and higher purchased fuel costs compared to the same period of 2016.

General and Administrative Expenses

General and administrative expenses increased 111% from $55.3 million for the six months ended June 30, 2016 to $116.6 million for the six months ended June 30, 2017 due principally to $38.7 million in costs attributable to our recently acquired PCLI operations and $19.3 million in incremental direct acquisition and integration costs of our PCLI business.

Depreciation and Amortization Expenses

Depreciation and amortization increased 13% from $178.3 million for the six months ended June 30, 2016 to $201.3 million for the six months ended June 30, 2017. This increase was due principally to depreciation and amortization attributable to capitalized improvement projects and capitalized refinery turnaround costs. Depreciation and amortization expenses include $12.4 million in costs attributable to our PCLI operations.

Goodwill and Asset Impairment

During the six months ended June 30, 2017, we recorded a $19.2 million long-lived asset impairment charge resulting from management’s plan to cease further expansion of our Woods Cross Refinery to add lubricants production compared to goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million, respectively, for the six months ended June 30, 2016. See Note 1 “Description of Business and Presentation of Financial Statements” in the Notes to Consolidated Financial Statements for additional information on the Cheyenne refinery impairment during the second quarter of 2016.

Interest Income

Interest income for the six months ended June 30, 2017 was $1.0 million compared to $0.6 million for the six months ended June 30, 2016. This increase was due to higher investment levels in marketable debt securities during the current year-to-date period.

Interest Expense

Interest expense was $56.8 million for the six months ended June 30, 2017 compared to $26.3 million for the six months ended June 30, 2016. This increase was due to interest attributable to higher debt levels during the current year relative to the same period of 2016. For the six months ended June 30, 2017 and 2016, interest expense included $27.3 million and $21.8 million, respectively, in interest costs attributable to limited recourse debt that finances HEP operations.

Loss on Early Extinguishment of Debt

For the six months ended June 30, 2017, a $12.2 million loss was recorded upon HEP’s redemption of its $300 million aggregate principal amount of 6.5% senior notes maturing March 2020 at a cost of $309.8 million.

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For the six months ended June 30, 2016, we recognized an $8.7 million loss on the early retirement of a financing obligation, a component of outstanding debt, upon HEP's purchase of crude oil tanks from an affiliate of Plains All American Pipeline L.P. (“Plains”). See Note 10 “Debt” in the Notes to Consolidated Financial Statements for additional information on this financing obligation.

Gain on Foreign Currency Swaps

During the six months ended June 30, 2017, we recorded a $24.5 million gain on currency swap contracts that effectively fixed the conversion rate on $1.125 billion Canadian dollars (the PCLI purchase price), which were settled on February 1, 2017, in connection with the closing of the PCLI acquisition.

Gain on Foreign Currency Transactions

Remeasurement adjustments resulting from the conversion of the intercompany financing structure on our PCLI acquisition from local currencies to the U.S. dollar resulted in a $0.4 million gain for the six months ended June 30, 2017.

Income Taxes

For the six months ended June 30, 2017, we recorded income tax expense of $15.2 million compared to a benefit of $15.7 million for the six months ended June 30, 2016. This increase was due principally to pre-tax income during the six months ended June 30, 2017 compared to a pre-tax loss in the same period of 2016. Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were 29.5% and 4.3% for the six months ended June 30, 2017 and 2016, respectively. The year-over-year increase in the effective tax rate is due principally to the effects of the second quarter 2016 $309.3 million goodwill impairment charge, a significant driver of our $364.8 million loss before income taxes for the six months ended June 30, 2016, that is not deductible for income tax purposes.

LIQUIDITY AND CAPITAL RESOURCES

HollyFrontier Credit Agreement

In February 2017, we increased the size of our senior unsecured revolving credit facility from $1 billion to $1.35 billion and extended the maturity date to February 2022 (the “HollyFrontier Credit Agreement”). The HollyFrontier Credit Agreement may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. During the six months ended June 30, 2017, we received advances totaling $26.0 million and repaid $26.0 million under the HollyFrontier Credit Agreement. At June 30, 2017, we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $3.1 million under the HollyFrontier Credit Agreement.

HEP Credit Agreement

At June 30, 2017, HEP had a $1.2 billion senior secured revolving credit facility maturing in November 2018 (the “HEP Credit Agreement”). During the six months ended June 30, 2017, HEP received advances totaling $479.0 million and repaid $189.0 million under the HEP Credit Agreement. At June 30, 2017, HEP was in compliance with all of its covenants, had outstanding borrowings of $843.0 million and no outstanding letters of credit under the HEP Credit Agreement.

In July 2017, the HEP Credit Agreement was amended to increase the size of the facility to $1.4 billion and to extend the maturity to July 2022 (the “HEP Amended Credit Agreement”). The HEP Amended Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments and working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit and has a $300 million accordion.

HEP Senior Notes

In January 2017, HEP redeemed its $300 million aggregate principal amount of 6.5% senior notes maturing March 2020 at a redemption cost of $309.8 million, at which time HEP recognized a $12.2 million early extinguishment loss consisting of a $9.8 million debt redemption premium and unamortized discount and financing costs of $2.4 million. HEP funded the redemption with borrowings under the HEP Credit Agreement.

See Note 10 “Debt” in the Notes to Consolidated Financial Statements for additional information on our debt instruments.

HEP Common Unit Continuous Offering Program

In May 2016, HEP established a continuous offering program under which HEP may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million. During the six months ended June 30, 2017, HEP issued 1,538,452 units under this program, providing $52.4 million in net proceeds. In connection with this program and to maintain the 2% general partner interest, we made capital contributions totaling $1.1 million during the six months ended June 30, 2017. As of June 30, 2017, HEP has issued 2,241,907 units with an aggregate gross sales amount of $77.1 million.

HEP intends to use the net proceeds for general partnership purposes, which may include funding working capital, repayment of debt, acquisitions and capital expenditures. Amounts repaid under HEP’s credit facility may be reborrowed from time to time.

Liquidity

We believe our current cash and cash equivalents, along with future internally generated cash flow and funds available under our credit facilities, will provide sufficient resources to fund currently planned capital projects and our liquidity needs for the foreseeable future. In addition, components of our growth strategy include construction of new refinery processing units and the expansion of existing units at our facilities and selective acquisition of complementary assets for our refining operations intended to increase earnings and cash flow.

As of June 30, 2017, our cash and cash equivalents totaled $460.3 million. We consider all highly-liquid instruments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. These primarily consist of investments in conservative, highly-rated instruments issued by financial institutions, government and corporate entities with strong credit standings and money market funds.

On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into a share purchase agreement with Suncor to acquire 100% of the outstanding capital stock of PCLI that closed on February 1, 2017. Cash consideration paid was $862.0 million, or $1.125 billion in Canadian dollars.

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In May 2015, our Board of Directors approved a $1 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. As of June 30, 2017, we had remaining authorization to repurchase up to $178.8 million under this stock repurchase program. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs.

Cash and cash equivalents decreased $250.3 million for the six months ended June 30, 2017. Working capital decreased by $694.5 million during the six months ended June 30, 2017, which is principally due to our cash purchase of PCLI, net of working capital acquired.

Cash Flows – Operating Activities

Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Net cash flows provided by operating activities were $473.4 million for the six months ended June 30, 2017 compared to $310.3 million for the six months ended June 30, 2016, an increase of $163.1 million. Net income for the six months ended June 30, 2017 was $36.3 million, an increase of $385.4 million compared to net loss of $349.1 million for the six months ended June 30, 2016. Non-cash adjustments to net income consisting of depreciation and amortization, goodwill and asset impairment, lower of cost or market inventory valuation adjustment, earnings of equity method investments, inclusive of distributions, gain or loss on sale of assets, loss on extinguishment of debt, deferred income taxes, equity-based compensation expense, fair value changes to derivative instruments and excess tax expense from equity-based compensation totaled $338.4 million for the six months ended June 30, 2017 compared to $661.6 million for the same period in 2016. Changes in working capital items increased cash flows by $176.1 million and $67.2 million for the six months ended June 30, 2017 and 2016, respectively. Additionally, for the six months ended June 30, 2017, turnaround expenditures increased to $86.0 million from $72.4 million for the same period of 2016.

Cash Flows – Investing Activities and Planned Capital Expenditures

Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Net cash flows used for investing activities were $580.5 million for the six months ended June 30, 2017 compared to $269.3 million for the six months ended June 30, 2016, an increase of $311.2 million. Current year investing activities reflect a net cash outflow of $870.6 million upon the acquisition of PCLI. Cash expenditures for properties, plants and equipment for the first six months of 2017 decreased to $137.1 million from $290.0 million for the same period in 2016. These include HEP capital expenditures of $20.5 million and $75.4 million for the six months ended June 30, 2017 and 2016, respectively. In addition, in 2016, HEP purchased a 50% interest in Cheyenne Pipeline for $42.5 million. Also for the six months ended June 30, 2017 and 2016, we invested $41.6 million and $86.8 million, respectively, in marketable securities and received proceeds of $465.7 million and $149.6 million, respectively, from the sale or maturity of marketable securities.

Planned Capital Expenditures

HollyFrontier Corporation

Each year our Board of Directors approves our annual capital budget, which includes specific projects that management is authorized to undertake. Additionally, when conditions warrant or as new opportunities arise, additional projects may be approved. The funds appropriated for a particular capital project may be expended over a period of several years, depending on the time required to complete the project. Therefore, our planned capital expenditures for a given year consist of expenditures appropriated in that year’s capital budget plus expenditures for projects appropriated in prior years which have not yet been completed. During 2017, we expect to spend approximately $225.0 million to $275.0 million in cash for capital projects appropriated in 2017 and prior years. In addition, we expect to spend approximately $135.0 million to $150.0 million on refinery turnarounds. Refinery turnaround spending is amortized over the useful life of the turnaround.

The refining industry is capital intensive and requires on-going investments to sustain our refining operations. This includes replacement of, or rebuilding, refinery units and components that extend the useful life. We also invest in projects that improve operational reliability and profitability via enhancements that improve refinery processing capabilities as well as production yield and flexibility. Our capital expenditures also include projects related to environmental, health and safety compliance and include initiatives as a result of federal and state mandates.

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A significant portion of our current capital spending is associated with compliance-oriented capital improvements. This spending is required due to existing consent decrees (for projects including FCC unit flue gas scrubbers and tail gas treatment units), federal fuels regulations (particularly Tier3, which mandates a reduction in the sulfur content of blended gasoline), refinery waste water treatment improvements and other similar initiatives. Our refinery operations and related emissions are highly regulated at both federal and state levels, and we invest in our facilities as needed to remain in compliance with these standards. Additionally, when faced with new emissions or fuels standards, we seek to execute projects that facilitate compliance and also improve the operating costs and / or yields of associated refining processes.

We have completed construction on our existing Woods Cross expansion project, increasing crude processing capacity to 45,000 BPSD, and providing greater crude slate flexibility, which we believe will increase capacity utilization and improve overall economic returns during periods when wax crudes are in short supply. The project also included construction of new refining facilities and a new rail loading rack for intermediates and finished products associated with refining waxy crude oil.

On November 18, 2013, the Utah Division of Air Quality issued a revised air quality permit (the “Approval Order”) authorizing the expansion. On December 18, 2013, two local environmental groups filed an administrative appeal challenging the issuance of the Approval Order and seeking a stay of the Approval Order. Following an extended appeal process, the Executive Director of the Utah Department of Environmental Quality issued a final order in favor of Woods Cross on all claims on March 31, 2015, and dismissed the project opponents’ arguments with prejudice. On April 27, 2015, the opponents filed a petition for review and notice of appeal with the Utah Court of Appeals challenging the agency’s decision to uphold the permit and dismiss the project opponents’ arguments. On August 4, 2016, the Utah Court of Appeals transferred the case to the Utah Supreme Court. The Utah Supreme Court established a supplemental briefing schedule, which ran through October 2016. Oral argument took place on December 14, 2016 and focused primarily on alleged procedural defects in the Petitioner’s appeal. The Utah Supreme Court took the matter under advisement and, on June 19, 2017, issued a 4-1 decision in favor of the State of Utah and HollyFrontier in a brief four-page opinion. This matter is now closed unless Petitioners file a motion for reconsideration, which appears unlikely at this point in time.

HEP

Each year the Holly Logistic Services, L.L.C. board of directors approves HEP’s annual capital budget, which specifies capital projects that HEP management is authorized to undertake. Additionally, at times when conditions warrant or as new opportunities arise, special projects may be approved. The funds allocated for a particular capital project may be expended over a period of several years, depending on the time required to complete the project. Therefore, HEP’s planned capital expenditures for a given year consist of expenditures approved for capital projects included in its current year capital budget as well as, in certain cases, expenditures approved for capital projects in capital budgets for prior years. The 2017 HEP capital budget is comprised of $9.0 million for maintenance capital expenditures and $30.0 million for expansion capital expenditures.

Cash Flows – Financing Activities

Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Net cash flows used for financing activities were $143.5 million for the six months ended June 30, 2017 compared to cash flows provided by financing activities of $344.5 million for the six months ended June 30, 2016, an increase of $488.0 million. During the six months ended June 30, 2017, we received $26.0 million and repaid $26.0 million under the Holly Frontier Credit Agreement and paid $117.8 million in dividends. Also during this period, HEP received $479.0 million and repaid $189.0 million under the HEP Credit Agreement, paid $309.8 million upon the redemption of HEP’s 6.5% senior notes, received $52.6 million in net proceeds from the issuance of its common units and paid distributions of $53.8 million to noncontrolling interests. During the six months ended June 30, 2016, we received $246.7 million in net proceeds upon issuance of our 5.875% senior notes, received $350.0 million in net proceeds from issuance of a term loan, received $315.0 million and repaid $315.0 million under the HollyFrontier Credit Agreement, purchased $133.4 million in common stock and paid $116.8 million in dividends. In addition, we extinguished our financing obligation with Plains for $39.5 million. Also, during this period, HEP received $239.0 million and repaid $165.0 million under the HEP Credit Agreement, received $13.7 million in proceeds from the issuance of common units and paid distributions of $43.8 million to noncontrolling interests.

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Contractual Obligations and Commitments

HollyFrontier Corporation

In February 2017, we amended the HollyFrontier Credit Agreement, increasing the size of the credit facility from $1.0 billion to $1.35 billion and extended the maturity to February 2022.

There were no other significant changes to our long-term contractual obligations during the six months ended June 30, 2017.

HEP

In January 2017, HEP redeemed its $300 million aggregate principal amount of 6.5% senior notes maturing March 2020.

In July 2017, HEP amended its previous credit agreement increasing the size of the credit facility from $1.2 billion to $1.4 billion and extending its maturity to July 2022. During the six months ended June 30, 2017, HEP received net borrowings of $290.0 million resulting in $843.0 million of outstanding borrowings in the HEP Credit Agreement at June 30, 2017.

There were no other significant changes to HEP’s long-term contractual obligations during this period.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results may differ from these estimates under different assumptions or conditions.

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Our significant accounting policies are described in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain critical accounting policies that materially affect the amounts recorded in our consolidated financial statements include the assessment and consolidation of variable interest entities, the use of the last-in, first-out (“LIFO”) method of valuing certain inventories, the amortization of deferred costs for regular major maintenance and repairs at our refineries, assessing the possible impairment of certain long-lived assets and goodwill, accounting for derivative instruments and assessing contingent liabilities for probable losses.

Inventory Valuation: Inventories related to our refining operations are stated at the lower of cost, using the LIFO method for crude oil and unfinished and finished refined products, or market. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation.

At June 30, 2017, our lower of cost or market inventory valuation reserve was $428.3 million. This amount, or a portion thereof, is subject to reversal as a reduction to cost of products sold in subsequent periods as inventories giving rise to the reserve are sold, and a new reserve is established. Such a reduction to cost of products sold could be significant if inventory values return to historical cost price levels. Additionally, further decreases in overall inventory values could result in additional charges to cost of products sold should the lower of cost or market inventory valuation reserve be increased.

Inventories consisting of process chemicals, materials and maintenance supplies and RINs are stated at the lower of weighted-average cost or net realizable value. Inventories of our PCLI operations are stated at the lower of cost, using the FIFO method, or net realizable value.

Goodwill and Long-lived Assets: As of June 30, 2017, our goodwill balance was $2.2 billion, with goodwill assigned to our refining, PCLI and HEP segments of $1.7 billion, $0.2 billion and $0.3 billion, respectively. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit.

Our long-lived assets principally consist of our refining assets that are organized as refining asset groups and our PCLI business. The refinery asset groups also constitute our individual refinery reporting units that are used for testing and measuring goodwill impairments. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value.

We performed our annual goodwill impairment testing as of July 1, 2016 and determined the fair value of our El Dorado reporting unit exceeded its carrying value by approximately 4%. The market outlook for future crack spreads has since improved and based on subsequent testing, the fair value of the El Dorado reporting unit exceeded its carrying value by approximately 18% at June 30, 2017. A reasonable expectation exists that further deterioration in gross margins could result in an impairment of goodwill and the long-lived assets of the El Dorado reporting unit at some point in the future and such impairment charges could be material.

RISK MANAGEMENT

We use certain strategies to reduce some commodity price and operational risks. We do not attempt to eliminate all market risk exposures when we believe that the exposure relating to such risk would not be significant to our future earnings, financial position, capital resources or liquidity or that the cost of eliminating the exposure would outweigh the benefit.

Commodity Price Risk Management

Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps and futures contracts to mitigate price exposure with respect to:

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• our inventory positions;

• natural gas purchases;

• costs of crude oil and related grade differentials;

• prices of refined products; and

• our refining margins.

As of June 30, 2017, we have the following notional contract volumes related to all outstanding derivative contracts used to mitigate commodity price risk:

		Notional Contract Volumes by Year of Maturity
Contract Description	Total Outstanding Notional	2017	2018	2019	2020	2021	Unit of Measure
Natural gas price swaps - long	16,800,000	9,600,000	1,800,000	1,800,000	1,800,000	1,800,000	MMBTU
Natural gas price swaps - short	4,800,000	4,800,000	—	—	—	—	MMBTU
Natural gas price swaps (basis spread) - long	5,154,000	5,154,000	—	—	—	—	MMBTU
Crude price swaps (basis spread) - long	1,836,000	1,836,000	—	—	—	—	Barrels
NYMEX futures (WTI) - short	1,240,000	1,040,000	200,000	—	—	—	Barrels
Forward gasoline and diesel contracts - long	465,000	465,000	—	—	—	—	Barrels

The following sensitivity analysis provides the hypothetical effects of market price fluctuations to the commodity positions hedged under our derivative contracts:

	Estimated Change in Fair Value at June 30,
Commodity-based Derivative Contracts	2017		2016
	(In thousands)
Hypothetical 10% change in underlying commodity prices	$	1,069	$	16,700

Interest Rate Risk Management

HEP uses interest rate swaps to manage its exposure to interest rate risk.

As of June 30, 2017, HEP had two interest rate swap contracts with identical terms that hedge its exposure to the cash flow risk caused by the effects of LIBOR changes on $150.0 million in credit agreement advances. The swaps effectively convert $150.0 million of LIBOR based debt to fixed-rate debt having an interest rate of 0.74% plus an applicable margin of 2.25% as of June 30, 2017, which equaled an effective interest rate of 2.99%. Both of these swap contracts matured in July 2017. These swap contracts have been designated as cash flow hedges.

The market risk inherent in our fixed-rate debt is the potential change arising from increases or decreases in interest rates as discussed below.

For the fixed rate HollyFrontier Senior Notes and HEP Senior Notes, changes in interest rates will generally affect fair value of the debt, but not earnings or cash flows. The outstanding principal, estimated fair value and estimated change in fair value (assuming a hypothetical 10% change in the yield-to-maturity rates) for this debt as of June 30, 2017 is presented below:

	Outstanding Principal		Estimated Fair Value		Estimated Change in Fair Value
	(In thousands)
HollyFrontier Senior Notes	$	1,000,000	$	1,065,000	$	36,926
HEP Senior Notes	$	400,000	$	418,000	$	12,619

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For the variable rate HEP Credit Agreement, changes in interest rates would affect cash flows, but not the fair value. At June 30, 2017, outstanding borrowings under the HEP Credit Agreement were $843.0 million. By means of its cash flow hedges, HEP has effectively converted the variable rate on $150.0 million of outstanding principal to a weighted average fixed rate of 2.99%. For the remaining unhedged HEP Credit Agreement borrowings of $693.0 million, a hypothetical 10% change in applicable interest rates would not materially affect cash flows.

Our operations are subject to hazards of petroleum processing operations, including fire, explosion and weather-related perils. We maintain various insurance coverages, including business interruption insurance, subject to certain deductibles. We are not fully insured against certain risks because such risks are not fully insurable, coverage is unavailable, or premium costs, in our judgment, do not justify such expenditures.

Financial information is reviewed on the counterparties in order to review and monitor their financial stability and assess their ongoing ability to honor their commitments under the derivative contracts. We have not experienced, nor do we expect to experience, any difficulty in the counterparties honoring their commitments.

We have a risk management oversight committee consisting of members from our senior management. This committee oversees our risk enterprise program, monitors our risk environment and provides direction for activities to mitigate identified risks that may adversely affect the achievement of our goals.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See “Risk Management” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles

Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to amounts reported under generally accepted accounting principles in the United States (“GAAP”) in financial statements.

Earnings before interest, taxes, depreciation and amortization, which we refer to as EBITDA, is calculated as net income (loss) attributable to HollyFrontier stockholders plus (i) interest expense, net of interest income, (ii) income tax provision, and (iii) depreciation and amortization. EBITDA is not a calculation provided for under GAAP; however, the amounts included in these calculations are derived from amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented here because it is a widely used financial indicator used by investors and analysts to measure performance. EBITDA is also used by our management for internal analysis.

Set forth below is our calculation of EBITDA and adjusted EBITDA.

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands)
Net income (loss) attributable to HollyFrontier stockholders	$	57,767		$	(409,368	)	$	12,299		$	(388,115	)
Add (subtract) income tax expense (benefit)	31,996			(38,045		)	15,207			(15,737		)
Add interest expense (1)	29,645			14,251			69,028			35,056
Subtract interest income	(176		)	(527		)	(995		)	(602		)
Add depreciation and amortization	105,282			90,423			201,322			178,303
EBITDA	$	224,514		$	(343,266	)	$	296,861		$	(191,095	)

(1) Includes loss on early extinguishment of debt of $12.2 million and $8.7 million for the six months ended June 30, 2017 and 2016, respectively.

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Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Refinery gross margin and net operating margin are non-GAAP performance measures that are used by our management and others to compare our refining performance to that of other companies in our industry. We believe these margin measures are helpful to investors in evaluating our refining performance on a relative and absolute basis.

Refinery gross margin per barrel is the difference between average net sales price and average cost of products per barrel of produced refined products. Net operating margin per barrel is the difference between refinery gross margin and refinery operating expenses per barrel of produced refined products. These two margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments, goodwill and asset impairment charges or depreciation and amortization. Each of these component performance measures can be reconciled directly to our consolidated statements of income. Other companies in our industry may not calculate these performance measures in the same manner.

Refinery Gross and Net Operating Margins

Below are reconciliations to our consolidated statements of income for (i) net sales, cost of products (exclusive of lower of cost or market inventory valuation adjustment) and operating expenses, in each case averaged per produced barrel sold, and (ii) net operating margin and refinery gross margin. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of produced product sales to total sales and other revenues

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per barrel amounts)
Consolidated
Average sales price per produced barrel sold	$	65.80		$	60.92		$	66.17		$	53.83
Times sales of produced refined products (BPD)	465,900			431,110			425,590			422,250
Times number of days in period	91			91			181			182
Produced refined product sales	$	2,789,716		$	2,389,953		$	5,097,194		$	4,136,809
Total produced refined products sales	$	2,789,716		$	2,389,953		$	5,097,194		$	4,136,809
Add refined product sales from purchased products and rounding (1)	172,841			161,860			433,131			293,460
Total refined product sales	2,962,557			2,551,813			5,530,325			4,430,269
Add direct sales of excess crude oil (2)	121,566			100,782			380,307			191,700
Add other refining segment revenue (3)	57,014			46,427			92,581			76,640
Total refining segment revenue	3,141,137			2,699,022			6,003,213			4,698,609
Add PCLI segment sales and other revenues	309,566			—			511,506			—
Add HEP segment sales and other revenues	109,143			94,896			214,777			196,906
Add corporate and other revenues	15			47			42			157
Subtract consolidations and eliminations	(100,997		)	(79,327		)	(190,191		)	(162,310		)
Sales and other revenues	$	3,458,864		$	2,714,638		$	6,539,347		$	4,733,362

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Reconciliation of average cost of products per produced barrel sold to total cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per barrel amounts)
Consolidated
Average cost of products per produced barrel sold	$	54.33		$	52.04		$	56.37		$	45.58
Times sales of produced refined products (BPD)	465,900			431,110			425,590			422,250
Times number of days in period	91			91			181			182
Cost of products for produced products sold	$	2,303,424		$	2,041,582		$	4,342,282		$	3,502,800
Total cost of products for produced products sold	$	2,303,424		$	2,041,582		$	4,342,282		$	3,502,800
Add refined product costs from purchased products and rounding(1)	172,554			159,155			433,615			297,519
Total cost of refined products sold	2,475,978			2,200,737			4,775,897			3,800,319
Add crude oil cost of direct sales of excess crude oil (2)	121,454			101,719			381,284			193,307
Add other refining segment cost of products sold (4)	32,952			19,463			46,928			31,361
Total refining segment cost of products sold	2,630,384			2,321,919			5,204,109			4,024,987
Add PCLI segment cost of products sold	205,559			—			341,863			—
Subtract consolidations and eliminations	(82,503		)	(73,764		)	(151,375		)	(151,669		)
Costs of products sold (exclusive of lower of cost or market inventory valuation adjustment and depreciation and amortization)	$	2,753,440		$	2,248,155		$	5,394,597		$	3,873,318

Reconciliation of average refinery operating expenses per produced barrel sold to total operating expenses

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per barrel amounts)
Consolidated
Average refinery operating expenses per produced barrel sold	$	5.54		$	5.51		$	6.25		$	5.64
Times sales of produced refined products (BPD)	465,900			431,110			425,590			422,250
Times number of days in period	91			91			181			182
Refinery operating expenses for produced products sold	$	234,879		$	216,163		$	481,449		$	433,431
Total refinery operating expenses for produced products sold	$	234,879		$	216,163		$	481,449		$	433,431
Add other refining segment operating expenses and rounding (5)	10,386			9,520			20,931			20,081
Total refining segment operating expenses	245,265			225,683			502,380			453,512
Add PCLI segment operating expenses	52,652			—			88,681			—
Add HEP segment operating expenses	34,097			29,212			66,586			56,968
Add corporate and other costs	1,322			1,152			2,335			2,407
Subtract consolidations and eliminations	(17,684		)	(4,711		)	(37,213		)	(8,968		)
Operating expenses (exclusive of depreciation and amortization)	$	315,652		$	251,336		$	622,769		$	503,919

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Reconciliation of net operating margin per barrel to refinery gross margin per barrel to total sales and other revenues

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(Dollars in thousands, except per barrel amounts)
Consolidated
Net operating margin per barrel	$	5.93		$	3.37		$	3.55		$	2.61
Add average refinery operating expenses per produced barrel	5.54			5.51			6.25			5.64
Refinery gross margin per barrel	11.47			8.88			9.80			8.25
Add average cost of products per produced barrel sold	54.33			52.04			56.37			45.58
Average sales price per produced barrel sold	$	65.80		$	60.92		$	66.17		$	53.83
Times sales of produced refined products (BPD)	465,900			431,110			425,590			422,250
Times number of days in period	91			91			181			182
Produced refined products sales	$	2,789,716		$	2,389,953		$	5,097,194		$	4,136,809
Total produced refined products sales	$	2,789,716		$	2,389,953		$	5,097,194		$	4,136,809
Add refined product sales from purchased products and rounding (1)	172,841			161,860			433,131			293,460
Total refined product sales	2,962,557			2,551,813			5,530,325			4,430,269
Add direct sales of excess crude oil (2)	121,566			100,782			380,307			191,700
Add other refining segment revenue (3)	57,014			46,427			92,581			76,640
Total refining segment revenue	3,141,137			2,699,022			6,003,213			4,698,609
Add PCLI segment sales and other revenues	309,566			—			511,506			—
Add HEP segment sales and other revenues	109,143			94,896			214,777			196,906
Add corporate and other revenues	15			47			42			157
Subtract consolidations and eliminations	(100,997		)	(79,327		)	(190,191		)	(162,310		)
Sales and other revenues	$	3,458,864		$	2,714,638		$	6,539,347		$	4,733,362

(1) We purchase finished products to facilitate delivery to certain locations or to meet delivery commitments.

(2) We purchase crude oil that at times exceeds the supply needs of our refineries. Quantities in excess of our needs are sold at market prices to purchasers of crude oil that are recorded on a gross basis with the sales price recorded as revenues and the corresponding acquisition cost as inventory and then upon sale as cost of products sold. Additionally, at times we enter into buy/sell exchanges of crude oil with certain parties to facilitate the delivery of quantities to certain locations that are netted at cost.

(3) Other refining segment revenue includes the incremental revenues associated with HFC Asphalt, product purchased and sold forward for profit as market conditions and available storage capacity allows and miscellaneous revenue.

(4) Other refining segment cost of products sold includes the incremental cost of products for HFC Asphalt, the incremental cost associated with storing product purchased and sold forward as market conditions and available storage capacity allows and miscellaneous costs.

(5) Other refining segment operating expenses include the marketing costs associated with our refining segment and the operating expenses of HFC Asphalt.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures. Our principal executive officer and principal financial officer have evaluated, as required by Rule 13a-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”), our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Our disclosure controls and procedures are designed to provide reasonable assurance that the information we are required to disclose in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2017.

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Changes in internal control over financial reporting. We acquired PCLI from Suncor effective February 1, 2017 and have included PCLI’s operating results, assets and liabilities in our consolidated financial statements as of June 30, 2017 and for the five months then ended. Pursuant to a Transition Service Agreement with Suncor, Suncor provides accounting support services for PCLI including month end close process and other accounting services. Other than internal controls for PCLI, there have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during our last fiscal quarter that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Commitment and Contingency Reserves

We periodically establish reserves for certain legal proceedings. The establishment of a reserve involves an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, future changes in the facts and circumstances could result in the actual liability exceeding the estimated ranges of loss and amounts accrued.

While the outcome and impact on us cannot be predicted with certainty, based on advice of counsel, management believes that the resolution of these proceedings through settlement or adverse judgment will not either individually or in the aggregate have a material adverse effect on our financial condition, results of operations or cash flows.

Environmental Matters

We are reporting the following proceedings to comply with SEC regulations which require us to disclose proceedings arising under federal, state or local provisions regulating the discharge of materials into the environment or protecting the environment if we reasonably believe that such proceedings may result in monetary sanctions of $100,000 or more. Our respective subsidiaries have or will develop corrective action plans regarding these disclosures that will be implemented in consultation with the respective federal and state agencies. It is not possible to predict the ultimate outcome of these proceedings, although none are currently expected to have a material effect on our financial condition, results of operations or cash flows.

Cheyenne

HollyFrontier Cheyenne Refining LLC (“HFCR”), our wholly-owned subsidiary, completed certain environmental audits at the Cheyenne Refinery regarding compliance with federal and state environmental requirements. By letters dated October 5, 2012, November 7, 2012, and January 10, 2013, and pursuant to the EPA's audit policy to the extent applicable, HFCR submitted reports to the EPA voluntarily disclosing non-compliance with certain emission limitations, reporting requirements, and provisions of a 2009 federal consent decree. By letters dated October 31, 2012; February 6, 2013; June 21, 2013; July 9, 2013 and July 25, 2013, and pursuant to applicable Wyoming audit statutes, HFCR submitted environmental audit reports to the Wyoming Department of Environmental Quality (“WDEQ”) voluntarily disclosing non-compliance with certain notification, reporting, and other provisions of the refinery's state air permit and other environmental regulatory requirements. No further action has been taken by either agency at this time.

El Dorado

The El Dorado Refinery has been engaged in discussions with the EPA regarding potential Clean Air Act violations relating to flaring devices and other equipment at the refinery. The El Dorado Refinery has responded to two separate information requests covering air emissions for a time frame from January 1, 2009 through May 31, 2014. The EPA also conducted an on-site Clean Air Act - Sec. 112r Risk Management Program (“RMP”) compliance audit at the El Dorado Refinery and notified the El Dorado Refinery of 20 alleged “deficiencies” related to that inspection. Although no Notice or Finding of Violation has been issued by the EPA in connection with either the Clean Air Act inquiry or the 112r inspection, the EPA and the U.S. Department of Justice have indicated that the federal government believes it has claims for civil penalties relating to the information provided in response to the information requests and the RMP inspection. We have had discussions with the government parties, are continuing to evaluate the relevant law and facts and will continue to work with the EPA regarding these matters.

Tulsa

HollyFrontier Tulsa Refining LLC (“HFTR”) manufactures paraffin and hydrocarbon waxes at its Tulsa West facility. On March 11, 2014, the EPA issued a notice to HFTR of possible violations of certain provisions of the federal Toxic Substances Control Act in connection with the manufacture of certain of these products. HFTR and the EPA met and are working productively towards a settlement of this matter.

Other

We are a party to various other litigation and proceedings that we believe, based on advice of counsel, will not either individually or in the aggregate have a materially adverse impact on our financial condition, results of operations or cash flows.

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Item 1A. Risk Factors

There have been no material changes in our risk factors as previously disclosed in Part 1, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in Part II, “Item 1A. Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. You should carefully consider the risk factors discussed in our 2016 Form 10-K and March 31, 2017 Form 10-Q, which could materially affect our business, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Common Stock Repurchases Made in the Quarter

Under our common stock repurchase programs, repurchases are being made from time to time in the open market or privately negotiated transactions based on market conditions, securities law limitations and other factors. The following table includes repurchases made under these programs during the second quarter of 2017.

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 2017	—	$	—	—	$	178,811,213
May 2017	—	$	—	—	$	178,811,213
June 2017	—	$	—	—	$	178,811,213
Total for April to June 2017	—			—

Item 6. Exhibits

The Exhibit Index on page 62 of this Quarterly Report on Form 10-Q lists the exhibits that are filed or furnished, as applicable, as part of the Quarterly Report on Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOLLYFRONTIER CORPORATION
	(Registrant)
Date: August 2, 2017		/s/ Richard L. Voliva III
		Richard L.Voliva III
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date: August 2, 2017		/s/ J. W. Gann, Jr.
		J. W. Gann, Jr.
		Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer)

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Exhibit Index

Exhibit Number	Description
3.1	Amended and Restated Certificate of Incorporation of HollyFrontier Corporation (incorporated by reference to Exhibit 3.1 of Registrant’s Current Report on Form 8-K filed July 8, 2011, File No. 1-03876).
3.2	Amended and Restated By-Laws of HollyFrontier Corporation (incorporated by reference to Exhibit 3.1 of Registrant’s Current Report on Form 8-K filed February 20, 2014, File No. 1-03876).
4.1*	Second Supplemental Indenture, dated July 26, 2017, by and among Holly Energy Holdings LLC, HEP Cheyenne Shortline LLC, Holly Energy Partners, L.P., Holly Energy Finance Corp., the other guarantors therein and U.S. Bank National Association, as trustee.
10.1	Amendment to Amended and Restated Master Tolling Agreement (Operating Assets), dated effective January 1, 2017, by and among HollyFrontier El Dorado Refining LLC, HollyFrontier Woods Cross Refining LLC, and Holly Energy Partners-Operating, L.P. (incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, File No. 1-03876).
10.2	Amendment to Master Tolling Agreement (Refinery Assets), dated effective January 1, 2017, by and among HollyFrontier El Dorado Refining LLC, HollyFrontier Woods Cross Refining LLC, and Holly Energy Partners-Operating, L.P. (incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017, File No. 1-03876).
31.1*	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
101+	The following financial information from HollyFrontier Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) Notes to the Consolidated Financial Statements.

* Filed herewith.

** Furnished herewith.

+ Filed electronically herewith.

57

EX-4.1

EXECUTION VERSION

SECOND SUPPLEMENTAL INDENTURE

SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”), dated as of July 26, 2017, among Holly Energy Holdings LLC, a Delaware limited liability company, HEP Cheyenne Shortline LLC, a Delaware limited liability company (the “Guaranteeing Subsidiaries”), Holly Energy Partners, L.P., a Delaware limited partnership (“Holly Energy Partners”), and Holly Energy Finance Corp. (“Finance Corp.” and collectively with Holly Energy Partners, the “Issuers”), the other Guarantors (as defined in the Indenture referred to herein) and U.S. Bank National Association, as trustee under the Indenture referred to herein (the “Trustee”).

W I T N E S S E T H

WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of July 19, 2016, providing for the issuance of 6% Senior Notes due 2024 (the “Notes”) and a First Supplemental Indenture dated as of November 2, 2016, providing for the addition of Woods Cross Operating LLC, a Delaware limited liability company, as Guarantor under the Indenture;

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiaries shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Second Supplemental Indenture.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, each Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1.    CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

2.    AGREEMENT TO GUARANTEE. Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee and in the Indenture including but not limited to Article 10 thereof.

3.    NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee, incorporator, stockholder or agent of the Guaranteeing Subsidiaries, as such, shall have any liability for any obligations of the Issuers or any Guaranteeing Subsidiaries under the Notes, any Note Guarantees, the Indenture or this Second Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities under the federal securities laws and it is the view of the U.S. Securities and Exchange Commission that such a waiver is against public policy.

4.    NEW YORK LAW TO GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS FIRST SUPPLEMENTAL INDENTURE.

5.    COUNTERPARTS. The parties may sign any number of copies of this Second Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

6.    EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

7.    THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Second Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary and the Issuers.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed and attested, all as of the date first above written.

GUARANTEEING SUBSIDIARIES:

HOLLY ENERGY HOLDINGS LLC, a Delaware limited liability company

By: /s/ John Harrison     

John Harrison

Vice President and Treasurer

HEP CHEYENNE SHORTLINE LLC, a Delaware limited liability company

By: /s/ John Harrison     

John Harrison

Vice President and Treasurer

ISSUERS:

HOLLY ENERGY PARTNERS, L.P.

By: HEP Logistic Holdings, L.P.,
its general partner

By: Holly Logistic Services, L.L.C.,
its general partner

By:/s/ John Harrison         

John Harrison

Vice President and Treasurer

HOLLY ENERGY FINANCE CORP.

By:/s/ John Harrison     

John Harrison

Vice President and Treasurer

OTHER GUARANTORS:

EL DORADO OPERATING LLC, a Delaware limited liability company

HEP CASPER SLC LLC, a Delaware limited liability company

HEP CHEYENNE LLC, a Delaware limited liability company

HEP EL DORADO LLC, a Delaware limited liability company

HEP LOGISTICS GP, L.L.C., a Delaware limited liability company

HOLLY ENERGY PARTNERS-OPERATING, L.P., a Delaware limited partnership

HOLLY ENERGY STORAGE-LOVINGTON LLC, a Delaware limited liability company

CHEYENNE LOGISTICS LLC, a Delaware limited liability company

EL DORADO LOGISTICS LLC, a Delaware limited liability company

EL DORADO OSAGE LLC, a Delaware limited liability company

HEP PIPELINE GP, L.L.C., a Delaware limited liability company

HEP REFINING GP, L.L.C., a Delaware limited liability company

HEP REFINING, L.L.C., a Delaware limited liability company

HEP TULSA LLC, a Delaware limited liability company

LOVINGTON-ARTESIA, L.L.C.,a Delaware limited liability company

ROADRUNNER PIPELINE, L.L.C., a Delaware limited liability company

HEP SLC, LLC,a Delaware limited liability company

HEP UNEV HOLDINGS LLC, a Delaware limited liability company

HEP UNEV PIPELINE LLC, a Delaware limited liability company

WOODS CROSS OPERATING LLC, a Delaware limited liability company

HEP MOUNTAIN HOME, L.L.C., a Delaware limited liability company

HEP PIPELINE, L.L.C., a Delaware limited liability company

HEP WOODS CROSS, L.L.C., a Delaware limited liability company

By:/s/ John Harrison     

John Harrison

Vice President and Treasurer

HEP FIN-TEX/TRUST RIVER, L.P., a Texas limited partnership

HEP NAVAJO SOUTHERN, L.P., a Delaware limited partnership

HEP PIPELINE ASSETS, LIMITED PARTNERSHIP, a Delaware limited partnership

Each by: HEP Pipeline GP, L.L.C., a Delaware limited liability company, its General Partner

By: /s/ John Harrison         

John Harrison

Vice President and Treasurer

HEP REFINING ASSETS, L.P., a Delaware limited partnership

By: HEP Refining GP, L.L.C., a Delaware limited liability company, its General Partner

By: /s/ John Harrison         

John Harrison

Vice President and Treasurer

U.S. BANK NATIONAL ASSOCIATION,
as Trustee

By:    /s/Brad Hounsel    

Name:    Brad Hounsel

Title:    Vice President

1

EX-31.1

Exhibit 31.1

CERTIFICATION

I, George J. Damiris, certify that:

1. I have reviewed this quarterly report on Form 10-Q of HollyFrontier Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting

Date: August 2, 2017	/s/ George J. Damiris
	George J. Damiris
	Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Richard L. Voliva III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of HollyFrontier Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's most recent fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2017	/s/ Richard L. Voliva III
	Richard L. Voliva III
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE

OFFICER UNDER SECTION 906 OF THE

SARBANES OXLEY ACT OF 2002, 18 U.S.C. § 1350

In connection with the accompanying report on Form 10-Q for the quarterly period ended June 30, 2017 and filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, George J. Damiris, Chief Executive Officer of HollyFrontier Corporation (the “Company”) hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2017	/s/ George J. Damiris
	George J. Damiris
	Chief Executive Officer and President

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL

OFFICER UNDER SECTION 906 OF THE

SARBANES OXLEY ACT OF 2002, 18 U.S.C. § 1350

In connection with the accompanying report on Form 10-Q for the quarterly period ended June 30, 2017 and filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard L. Voliva III, Chief Financial Officer of HollyFrontier Corporation (the “Company”) hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2017	/s/ Richard L. Voliva III
	Richard L. Voliva III
	Executive Vice President and Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	HollyFrontier Corp
Entity Central Index Key	0000048039
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		177,279,134

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents (HEP: $16,339 and $3,657, respectively)	$ 460,326	$ 710,579
Marketable securities	0	424,148
Total cash, cash equivalents and short-term marketable securities	460,326	1,134,727
Accounts receivable: Product and transportation (HEP: $8,131 and $7,846, respectively)	563,905	449,036
Crude oil resales	38,445	30,163
Accounts receivable, total	602,350	479,199
Inventories: Crude oil and refined products	1,064,178	970,361
Materials, supplies and other (HEP: $1,470 and $1,402, respectively)	127,795	165,315
Inventories, total	1,191,973	1,135,676
Income taxes receivable	1,428	68,371
Prepayments and other (HEP: $1,652 and $1,486, respectively)	37,686	33,036
Total current assets	2,293,763	2,851,009
Properties, plants and equipment, at cost (HEP: $1,719,143 and $1,702,703, respectively)	6,118,506	5,546,856
Less accumulated depreciation (HEP: $(371,867) and $(337,135), respectively)	(1,674,948)	(1,538,408)
Properties, plants and equipment, net	4,443,558	4,008,448
Other assets: Turnaround costs	251,337	217,340
Goodwill (HEP: $288,991 and $288,991, respectively)	2,205,490	2,022,463
Intangibles and other (HEP: $204,485 and $208,975, respectively)	448,887	336,401
Other assets, total	2,905,714	2,576,204
Total assets	9,643,035	9,435,661
Current liabilities:
Accounts payable (HEP: $8,912 and $10,518, respectively)	1,009,135	935,387
Income taxes payable	24,427	0
Accrued liabilities (HEP: $31,680 and $37,793, respectively)	186,886	147,842
Total current liabilities	1,220,448	1,083,229
Long-term debt (HEP: $1,236,739 and $1,243,912, respectively)	2,227,951	2,235,137
Deferred income taxes (HEP: $649 and $509, respectively)	745,050	620,414
Other long-term liabilities (HEP: $61,312 and $62,971, respectively)	207,502	194,896
HollyFrontier stockholders' equity:
Preferred stock, $1.00 par value - 5,000,000 shares authorized; none issued	0	0
Common stock $.01 par value - 320,000,000 shares authorized; 256,009,012 shares issued as of June 30, 2017 and December 31, 2016, respectively	2,560	2,560
Additional capital	4,058,594	4,026,805
Retained earnings	2,671,276	2,776,728
Accumulated other comprehensive income	18,785	10,612
Common stock held in treasury, at cost - 78,731,670 and 78,617,600 shares as of June 30, 2017 and December 31, 2016, respectively	(2,137,312)	(2,135,311)
Total HollyFrontier stockholders' equity	4,613,903	4,681,394
Noncontrolling interest	628,181	620,591
Total equity	5,242,084	5,301,985
Total liabilities and equity	$ 9,643,035	$ 9,435,661

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Cash and cash equivalents (HEP: $16,339 and $3,657, respectively)	$ 460,326	$ 710,579
Accounts receivable: Product and transportation (HEP: $8,131 and $7,846, respectively)	563,905	449,036
Materials, supplies and other (HEP: $1,470 and $1,402, respectively)	127,795	165,315
Prepayments and other (HEP: $1,652 and $1,486, respectively)	37,686	33,036
Properties, plants and equipment, at cost (HEP: $1,719,143 and $1,702,703, respectively)	6,118,506	5,546,856
Less accumulated depreciation (HEP: $(371,867) and $(337,135), respectively)	(1,674,948)	(1,538,408)
Goodwill (HEP: $288,991 and $288,991, respectively)	2,205,490	2,022,463
Intangibles and other (HEP: $204,485 and $208,975, respectively)	448,887	336,401
Accounts payable (HEP: $8,912 and $10,518, respectively)	1,009,135	935,387
Accrued liabilities (HEP: $31,680 and $37,793, respectively)	186,886	147,842
Long-term debt (HEP: $1,236,739 and $1,243,912, respectively)	2,227,951	2,235,137
Deferred income taxes (HEP: $649 and $509, respectively)	745,050	620,414
Other long-term liabilities (HEP: $61,312 and $62,971, respectively)	$ 207,502	$ 194,896
HollyFrontier Stockholders' Equity:
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	320,000,000	320,000,000
Common stock, shares issued	256,009,012	255,962,866
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Treasury stock, shares	78,729,878	78,617,600
HEP [Member]
Cash and cash equivalents (HEP: $16,339 and $3,657, respectively)	$ 16,339	$ 3,657
Accounts receivable: Product and transportation (HEP: $8,131 and $7,846, respectively)	8,131	7,846
Materials, supplies and other (HEP: $1,470 and $1,402, respectively)	1,470	1,402
Prepayments and other (HEP: $1,652 and $1,486, respectively)	1,652	1,486
Properties, plants and equipment, at cost (HEP: $1,719,143 and $1,702,703, respectively)	1,719,143	1,702,703
Less accumulated depreciation (HEP: $(371,867) and $(337,135), respectively)	(371,867)	(337,135)
Goodwill (HEP: $288,991 and $288,991, respectively)	288,991	288,991
Intangibles and other (HEP: $204,485 and $208,975, respectively)	204,485	208,975
Accounts payable (HEP: $8,912 and $10,518, respectively)	8,912	10,518
Accrued liabilities (HEP: $31,680 and $37,793, respectively)	31,680	37,793
Long-term debt (HEP: $1,236,739 and $1,243,912, respectively)	1,236,739	1,243,912
Deferred income taxes (HEP: $649 and $509, respectively)	649	509
Other long-term liabilities (HEP: $61,312 and $62,971, respectively)	$ 61,312	$ 62,971

XML

Consolidated Statements Of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Sales and other revenues	$ 3,458,864	$ 2,714,638	$ 6,539,347	$ 4,733,362
Operating costs and expenses:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	2,753,440	2,248,155	5,394,597	3,873,318
Lower of cost or market inventory valuation adjustment	83,982	(138,473)	95,805	(194,594)
Costs of products sold, net	2,837,422	2,109,682	5,490,402	3,678,724
Operating expenses (exclusive of depreciation and amortization)	315,652	251,336	622,769	503,919
General and administrative expenses (exclusive of depreciation and amortization)	59,576	29,655	116,646	55,276
Depreciation and amortization	105,282	90,423	201,322	178,303
Goodwill and asset impairment	19,247	654,084	19,247	654,084
Total operating costs and expenses	3,337,179	3,135,180	6,450,386	5,070,306
Income (loss) from operations	121,685	(420,542)	88,961	(336,944)
Other income (expense):
Income (loss) from equity method investments	4,053	3,623	5,893	6,388
Interest income	176	527	995	602
Interest expense	(29,645)	(14,251)	(56,803)	(26,338)
Loss on early extinguishment of debt	0	0	(12,225)	(8,718)
Gain on foreign currency swap	0	0	24,545	0
Gain (loss) on foreign currency transactions	10,328	0	395	0
Other, net	(528)	128	(263)	193
Other income (expense) total	(15,616)	(9,973)	(37,463)	(27,873)
Income (loss) before income taxes	106,069	(430,515)	51,498	(364,817)
Income tax expense (benefit):
Current	32,251	(18,012)	7,935	(42,366)
Deferred	(255)	(20,033)	7,272	26,629
Income tax expense (benefit) total	31,996	(38,045)	15,207	(15,737)
Net income (loss)	74,073	(392,470)	36,291	(349,080)
Less net income attributable to noncontrolling interest	16,306	16,898	23,992	39,035
Net income (loss) attributable to HollyFrontier stockholders	$ 57,767	$ (409,368)	$ 12,299	$ (388,115)
Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$ 0.33	$ (2.33)	$ 0.07	$ (2.20)
Diluted	0.33	(2.33)	0.07	(2.20)
Cash dividends declared per common share	$ 0.33	$ 0.33	$ 0.66	$ 0.66
Average number of common shares outstanding:
Basic	176,147	175,865	176,141	176,301
Diluted	176,302	175,865	176,490	176,301

XML

Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net income (loss)	$ 74,073	$ (392,470)	$ 36,291	$ (349,080)
Other comprehensive income (loss)
Foreign Currency Translation Adjustment	14,298	0	7,585	0
Unrealized gain (loss) on marketable securities	0	12	(4)	90
Reclassification adjustments to net income on sale or maturity of marketable securities	0	0	0	23
Net unrealized gain (loss) on marketable securities	0	12	(4)	113
Change in fair value of cash flow hedging instruments	1,389	(5,393)	4,802	(17,997)
Reclassification adjustments to net income on settlement of cash flow hedging instruments	(427)	22,023	(66)	33,309
Amortization of unrealized loss attributable to discontinued cash flow hedges	270	270	540	540
Net unrealized gain on hedging instruments	1,232	16,900	5,276	15,852
Other comprehensive income before income taxes	15,530	16,912	12,857	15,965
Income tax expense	4,936	6,578	4,701	6,317
Other comprehensive income	10,594	10,334	8,156	9,648
Total comprehensive income	84,667	(382,136)	44,447	(339,432)
Less noncontrolling interest in comprehensive income (loss)	16,239	16,813	23,975	38,675
Comprehensive income (loss) attributable to HollyFrontier stockholders	$ 68,428	$ (398,949)	$ 20,472	$ (378,107)

XML

Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 36,291	$ (349,080)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	201,322	178,303
Goodwill and asset impairment	19,247	654,084
Lower of cost or market inventory valuation adjustment	95,805	(194,594)
Net (income) loss of equity method investments, inclusive of distributions	594	1,081
(Gain) loss on sale of assets	679	(61)
Loss on early extinguishment of debt attributable to unamortized discount	2,475	8,718
Deferred income taxes	7,272	26,629
Equity-based compensation expense	16,557	9,774
Change in fair value - derivative instruments	(5,597)	(18,164)
Excess tax expense from equity based compensation	0	(4,198)
(Increase) decrease in current assets:
Accounts receivable	(5,545)	(128,271)
Inventories	60,963	15,531
Income taxes receivable	66,943	(49,999)
Prepayments and other	(9,272)	9,086
Increase (decrease) in current liabilities:
Accounts payable	495	210,139
Income taxes payable	22,340	(8,142)
Accrued liabilities	40,141	18,905
Turnaround expenditures	(86,036)	(72,409)
Other, net	8,724	2,994
Net cash provided by operating activities	473,398	310,326
Cash flows from investing activities:
Additions to properties, plants and equipment	(116,526)	(214,660)
Purchase of PCLI, net of cash acquired	(870,627)	0
Purchases of marketable securities	(41,565)	(86,798)
Sales and maturities of marketable securities	465,716	149,599
Other, net	3,017	408
Net cash used for investing activities	(580,509)	(269,336)
Cash flows from financing activities:
Borrowings under credit agreement	505,000	554,000
Repayments under credit agreement	(215,000)	(480,000)
Net proceeds from Issuance of senior notes - HFC	0	246,690
Net proceeds from issuance of term loan	0	350,000
Redemption of senior notes - HEP	(309,750)	0
Repayment of financing obligation		(39,500)
Proceeds from issuance of common units - HEP	52,634	13,690
Purchase of treasury stock	0	(133,430)
Dividends	(117,754)	(116,795)
Distributions to noncontrolling interest	(53,776)
Other, net	(4,820)	(6,348)
Net cash provided by (used for) financing activities	(143,466)	344,467
Effect of Exchange Rate on Cash	324	0
Cash and cash equivalents:
Increase (decrease) for the period	(250,253)	385,457
Beginning of period	710,579	66,533
End of period	460,326	451,990
Cash paid during the period for:
Interest	(64,205)	(23,212)
Income taxes, net	80,348	(21,426)
HEP [Member]
Cash flows from investing activities:
Additions to properties, plants and equipment	(20,524)	(75,385)
Purchase of equity method investment - HEP	0	(42,500)
Cash flows from financing activities:
Borrowings under credit agreement	400,000
Repayment of financing obligation	0	(39,500)
Distributions to noncontrolling interest	(53,776)	$ (43,840)
Cash and cash equivalents:
Beginning of period	3,657
End of period	$ 16,339

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Description of Business and Presentation of Financial Statements

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description Of Business And Presentation Of Financial Statements

Description of Business and Presentation of Financial Statements

References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In these financial statements, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person, with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. These financial statements contain certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries.

We are principally an independent petroleum refiner that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain regions of the United States. In addition, we own and operate a lubricant production facility with retail and wholesale marketing of its products through a global sales network with locations in Canada, United States, Europe and China. As of June 30, 2017, we:

• owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”), a refinery located in Cheyenne, Wyoming (the “Cheyenne Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”);

• owned and operated HollyFrontier Asphalt Company LLC (“HFC Asphalt”) which operates various asphalt terminals in Arizona, New Mexico and Oklahoma;

• owned and operated Petro-Canada Lubricants Inc. (“PCLI”) located in Mississauga, Ontario which produces base oils and other specialized lubricant products; and

• owned a 36% interest in HEP, a consolidated variable interest entity (“VIE”), which includes our 2% general partner interest.

On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into a Share Purchase Agreement (“SPA”) with Suncor Energy Inc. (“Suncor”) to acquire 100% of the outstanding capital stock of PCLI. The acquisition closed on February 1, 2017. See Note 2 for additional information.

We have prepared these consolidated financial statements without audit. In management’s opinion, these consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our consolidated financial position as of June 30, 2017, the consolidated results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and consolidated cash flows for the six months ended June 30, 2017 and 2016 in accordance with the rules and regulations of the SEC. Although certain notes and other information required by generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 that has been filed with the SEC.

Our results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results of operations to be realized for the year ending December 31, 2017.

Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer’s financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for doubtful accounts based on our historical loss experience as well as specific accounts identified as high risk, which historically have been minimal. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible. Our allowance for doubtful accounts was $3.7 million and $2.3 million at June 30, 2017 and December 31, 2016, respectively.

Inventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation.

Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value.

Inventories of our PCLI operations are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value.

Goodwill and Long-lived Assets: As of June 30, 2017, our goodwill balance was $2.2 billion, with goodwill assigned to our Refining, PCLI and HEP segments of $1.7 billion, $0.2 billion and $0.3 billion, respectively. During 2017, we recognized $184.2 million in goodwill as a result of our PCLI acquisition, all of which has been assigned to our PCLI segment. See Note 16 for additional information on our segments. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit. As of June 30, 2017, we have a cumulative goodwill impairment of $309.3 million, all of which relates to goodwill assigned to our Cheyenne Refinery reporting unit that was fully impaired in the second quarter of 2016.

Additionally, the carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our PCLI segment.

As of June 30, 2017, the fair value of our El Dorado reporting unit exceeded its carrying value by approximately 18%. A reasonable expectation exists that further deterioration in gross margins could result in an impairment of goodwill and the long-lived assets of the El Dorado reporting unit at some point in the future and such impairment charges could be material.

Our long-lived assets principally consist of our refining assets that are organized as refining asset groups and our PCLI business. The refinery asset groups also constitute our individual refinery reporting units that are used for testing and measuring goodwill impairments. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. As a result of our impairment testing in the second quarter of 2016, we determined that the carrying value of the long-lived assets of the Cheyenne Refinery had been impaired and recorded long-lived asset impairment charges of $344.8 million.

During the second quarter of 2017, we incurred long-lived asset impairment charges totaling $23.2 million, including $19.2 million of construction-in-progress consisting primarily of engineering work for a planned expansion of our Woods Cross refinery to add lubricants production capabilities. During the second quarter of 2017, we concluded to no longer pursue this expansion for various reasons including our recent acquisition of PCLI. The remaining $4.0 million in charges relate to property, plant and equipment that we expensed in the form of accelerated depreciation in the income statement.

Revenue Recognition: Refined product sales and related cost of sales are recognized when products are shipped and title has passed to customers. HEP recognizes pipeline transportation revenues as products are shipped through its pipelines. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported in cost of products sold.

For PCLI subsidiaries in Canada and in the U.S., a portion of sales are made to marketers and distributors under agreements which provide certain rights of return or provisions for PCLI to repurchase product in order to sell directly to end customers. Based on the terms of these agreements, PCLI defers revenues and cost of revenues on sales to Canadian marketers until the related products have been sold to end customers, and PCLI recognizes revenues for sales to its U.S. distributors when products are shipped to the distributors, net of allowances for returns related to inventories PCLI is expected to repurchase from the distributors to sell directly to end customers.

Foreign Currency Translation: The functional currency of our PCLI operations consists of the respective local currency of its foreign operations, which includes the Canadian dollar, the euro and Chinese renminbi. Balance sheet accounts are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income.

In connection with our PCLI acquisition on February 1, 2017, we issued intercompany notes to initially fund certain of PCLI’s foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing from local currencies to the U.S. dollar are recorded as gains and losses as a component of other income (expense) in the income statement. Such adjustments are not recorded to the PCLI segment operations, but to corporate and other. See Note 16 for additional information on our segments.

Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized.

For the six months ended June 30, 2017, we recorded an income tax expense of $15.2 million compared to an income tax benefit of $15.7 million for the six months ended June 30, 2016. This increase was due principally to pre-tax income during the six months ended June 30, 2017 compared to a pre-tax loss in the same period of 2016. Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were 29.5% and 4.3% for the six months ended June 30, 2017 and 2016, respectively.

Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter.

Inventory Repurchase Obligations:We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as an inventory repurchase obligation that is subsequently reversed when the inventory is repurchased. For the six months ended June 30,2017 and 2016, we received proceeds of $26.2 million and $29.8 million, respectively, and repaid $27.0 million and $30.2 million, respectively, under these sell / buy transactions.

New Accounting Pronouncements

Post-retirement Benefit Cost

In March 2017, Accounting Standard Update (“ASU”) 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost,” was issued amending current GAAP related to the income statement presentation of the components of net periodic post-retirement cost (credit). This standard has an effective date of January 1, 2018. We do not expect adoption of this standard to have a material impact on our financial condition, results of operations or cash flows.

Share-Based Compensation

In March 2016, ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” was issued which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this standard effective January 1, 2017. As the result of the adoption, on a prospective basis, we recognized zero and $0.1 million of excess tax expense from stock-based compensation as a discrete item in our provision for income taxes for the three and six months ended June 30, 2017. The new standard also requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the statement of cash flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change for the six months ended June 30, 2017 and 2016 was $0.3 million and zero, respectively. Finally, consistent with our existing policy, we have elected to account for forfeitures on an estimated basis.

Leases

In February 2016, ASU 2016-02, “Leases,” was issued requiring leases to be measured and recognized as a lease liability, with a corresponding right-of-use asset on the balance sheet. This standard has an effective date of January 1, 2019, and we are evaluating the impact of this standard.

Inventories Measurement

In July 2015, ASU 2015-11, “Inventory - Simplifying the Measurement of Inventory,” was issued requiring measurement of inventories, other than inventories accounted for using the LIFO method, to be measured at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business less reasonable, predictable cost of completion, disposal and transportation. We adopted this standard effective January 1, 2017 for our affected inventories, which is primarily our PCLI inventory valued on a FIFO basis, and it had no material effect on our financial condition, results of operations or cash flows.

Revenue Recognition

In May 2014, ASU 2014-09, “Revenue from Contracts with Customers” was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we anticipate using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are also evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition, results of operations or cash flows.

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Acquisition Acquisition

6 Months Ended

Jun. 30, 2017

Business Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

PCLI Acquisition

On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into an SPA with Suncor to acquire 100% of the outstanding capital stock of PCLI. The acquisition closed on February 1, 2017. Cash consideration paid at that time was approximately $862.0 million, or $1.125 billion in Canadian dollars. PCLI is located in Mississauga, Ontario, Canada and is a producer of lubricant products such as base oils, white oils, specialty products and finished lubricants. PCLI’s operations also include marketing of its products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China.

Aggregate consideration totaled approximately $904.3 million and consists of $862.0 million in cash paid to Suncor at acquisition, a closing date working capital settlement of $30.6 million that was paid to Suncor in the second quarter of 2017, an accrued payable in the amount of $6.5 million and $5.1 million, representing a portion of the fair value of replacement restricted stock unit awards issued to PCLI employees that relate to pre-acquisition services.

This transaction is accounted for as a business combination using the acquisition method of accounting, with the purchase price allocated to the fair value of the acquired PCLI assets and liabilities as of the February 1 acquisition date, with the excess purchase price recorded as goodwill assigned to our PCLI segment. This goodwill is not deductible for income tax purposes.

The following summarizes our preliminary value estimates of the PCLI assets and liabilities acquired:

	(in millions)
Cash and cash equivalents	$	21.6
Accounts receivable and other current assets	117.5
Inventories	213.0
Properties, plants and equipment	459.0
Goodwill	184.2
Intangibles and precious metals	119.0
Accounts payable and accrued liabilities	(89.0		)
Deferred income tax liabilities	(107.0		)
Other long-term liabilities	(14.0		)
Net assets acquired	$	904.3

Intangibles include trademarks, patents, technical know-how and customer relationships totaling $98.2 million that are being amortized on a straight-line basis over periods ranging from 10 to 20 years.

These values are preliminary and reflect revisions to our February 1, 2017 fair value estimates that were initially recorded during the first quarter of 2017. These estimated values are not final and may be subject to additional change once all needed information has become available and we complete our valuations.

Our consolidated financial and operating results reflect the PCLI operations beginning February 1, 2017. Our results of operations for the three months ended June 30, 2017 included PCLI revenues and net income of $309.6 million and $12.6 million, respectively, and $511.5 million and $21.1 million for the period from February 1, 2017 through June 30, 2017.

As of June 30, 2017, we have incurred $19.3 million in incremental direct acquisition and integration costs that principally relate to legal, advisory and other professional fees and are presented as general and administrative expenses.

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Holly Energy Partners

6 Months Ended

Jun. 30, 2017

Holly Energy Partners [Abstract]

Holly Energy Partners

Holly Energy Partners

HEP, a consolidated VIE, is a publicly held master limited partnership that owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain regions of the United States and Alon USA, Inc.’s (“Alon”) refinery in Big Spring, Texas. Additionally, HEP owns a 75% interest in UNEV Pipeline, LLC (“UNEV”), the owner of a pipeline running from Woods Cross, Utah to Las Vegas, Nevada (the “UNEV Pipeline”) and associated product terminals; a 50% interest in Frontier Aspen LLC, the owner of a pipeline running from Wyoming to Frontier Station, Utah (the “Frontier Pipeline”); a 50% interest in Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”); a 50% interest in Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne Pipeline”); and a 25% interest in SLC Pipeline LLC, the owner of a pipeline (the “SLC Pipeline”) that serves refineries in the Salt Lake City, Utah area.

As of June 30, 2017, we owned a 36% interest in HEP, including the 2% general partner interest. As the general partner of HEP, we have the sole ability to direct the activities that most significantly impact HEP’s financial performance, and therefore we consolidate HEP.

HEP has two primary customers (including us) and generates revenues by charging tariffs for transporting petroleum products and crude oil through its pipelines, by charging fees for terminalling refined products and other hydrocarbons, and storing and providing other services at its storage tanks and terminals. Under our long-term transportation agreements with HEP (discussed further below), we accounted for 85% of HEP’s total revenues for the six months ended June 30, 2017. We do not provide financial or equity support through any liquidity arrangements and / or debt guarantees to HEP.

HEP has outstanding debt under a senior secured revolving credit agreement and its senior notes. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. See Note 10 for a description of HEP’s debt obligations.

HEP has risk associated with its operations. If a major customer of HEP were to terminate its contracts or fail to meet desired shipping or throughput levels for an extended period of time, revenue would be reduced and HEP could suffer substantial losses to the extent that a new customer is not found. In the event that HEP incurs a loss, our operating results will reflect HEP’s loss, net of intercompany eliminations, to the extent of our ownership interest in HEP at that point in time.

Cheyenne Pipeline

On June 3, 2016, HEP acquired a 50% interest in Cheyenne Pipeline LLC, owner of the Cheyenne Pipeline, in exchange for a contribution of $42.5 million in cash to Cheyenne Pipeline LLC. Cheyenne Pipeline will continue to be operated by an affiliate of Plains All American Pipeline, L.P. (“Plains”), which owns the remaining 50% interest. The 87-mile crude oil pipeline runs from Fort Laramie, Wyoming to Cheyenne, Wyoming and has an 80,000 BPD capacity.

Tulsa Tanks

On March 31, 2016, HEP acquired crude oil tanks located at our Tulsa Refineries from Plains for $39.5 million. Previously in 2009, we sold these tanks to Plains and leased them back, and due to our continuing interest in the tanks, we accounted for the transaction as a financing arrangement. Accordingly, the tanks remained on our balance sheet and were depreciated for accounting purposes, and the proceeds received from Plains were recorded as a financing obligation and presented as a component of outstanding debt.

In accounting for HEP’s March 2016 purchase from Plains, the amount paid was recorded against our outstanding financing obligation balance of $30.8 million, with the excess $8.7 million payment resulting in a loss on early extinguishment of debt.

Magellan Asset Exchange

On February 22, 2016, we acquired a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) in exchange for a 20-year terminalling services agreement, whereby a subsidiary of Magellan Midstream Partners (“Magellan Midstream”) will provide terminalling services for all of our products originating in Artesia, New Mexico that require terminalling in or through El Paso, Texas. Under the agreement, we will be charged tariffs based on the volumes of refined product processed. Osage is the owner of the Osage Pipeline, a 135-mile pipeline that transports crude oil from Cushing, Oklahoma to our El Dorado Refinery in Kansas and also has a connection to the Jayhawk pipeline that services the CHS refinery in McPherson, Kansas. This exchange was accounted for at fair value, whereby the 50% membership interest in the Osage Pipeline was recorded at appraised fair value and an offsetting residual deferred credit in the amount of $38.9 million was recorded, which will be amortized to cost of products sold over the 20-year service period. No gain or loss was recorded for this exchange.

Also on February 22, 2016, we contributed the 50% membership interest in Osage to HEP, and in exchange received HEP’s El Paso terminal. Pursuant to this exchange, HEP agreed to build two connections to Magellan Midstream’s El Paso terminal. In addition, HEP agreed to become operator of the Osage Pipeline. This exchange was accounted for at carry-over basis with no resulting gain or loss.

HEP Common Unit Continuous Offering Program

On May 10, 2016, HEP established a continuous offering program under which HEP may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million. During the six months ended June 30, 2017, HEP issued 1,538,452 units under this program, providing $52.4 million in net proceeds. In connection with this program and to maintain our 2% general partner interest in HEP, we made capital contributions totaling $1.1 million. As of June 30, 2017, HEP has issued 2,241,907 units with an aggregate gross sales amount of $77.1 million.

HEP intends to use the net proceeds for general partnership purposes, which may include funding working capital, repayment of debt, acquisitions and capital expenditures. Amounts repaid under HEP’s credit facility may be reborrowed from time to time.

As a result of this transaction and resulting HEP ownership changes, we adjusted additional capital and equity attributable to HEP's noncontrolling interest holders to reallocate HEP's equity among its unitholders.

Transportation Agreements

HEP serves our refineries under long-term pipeline, terminal and tankage throughput agreements and refinery processing tolling agreements expiring from 2019 through 2036. Under these agreements, we pay HEP fees to transport, store and process throughput volumes of refined products, crude oil and feedstocks on HEP’s pipeline, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to HEP including UNEV (a consolidated subsidiary of HEP). Under these agreements, the agreed upon tariff rates are subject to annual tariff rate adjustments on July 1 at a rate based upon the percentage change in Producer Price Index or Federal Energy Regulatory Commission index. As of July 1, 2017, these agreements result in minimum annualized payments to HEP of $321.6 million.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2017

Financial Instruments, Owned, at Fair Value [Abstract]

Fair Value Measurements

Fair Value Measurements

Our financial instruments measured at fair value on a recurring basis consist of investments in marketable securities and derivative instruments.

Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows:

• (Level 1) Quoted prices in active markets for identical assets or liabilities.

• (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.

• (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.

The carrying amounts of marketable securities and derivative instruments at June 30, 2017 and December 31, 2016 were as follows:

			Fair Value by Input Level
	Carrying Amount		Level 1		Level 2		Level 3
	(In thousands)
June 30, 2017
Assets:
NYMEX futures contracts	$	662	$	662	$	—	$	—
Commodity price swaps	7,863		—		7,863		—
Commodity forward contracts	1,447		—		1,447		—
HEP interest rate swaps	63		—		63		—
Total assets	$	10,035	$	662	$	9,373	$	—
Liabilities:
Commodity price swaps	$	20,631	$	—	$	20,631	$	—
Commodity forward contracts	1,218		—		1,218		—
Total liabilities	$	21,849	$	—	$	21,849	$	—

December 31, 2016
Assets:
Marketable securities	$	424,148	$	—	$	424,148	$	—
Commodity price swaps	14,563		—		14,358		205
Commodity forward contracts	5,905		.		5,905		—
HEP interest rate swaps	91		—		91		—
Total assets	$	444,707	$	—	$	444,502	$	205
Liabilities:
NYMEX futures contracts	$	1,975	$	1,975	$	—	$	—
Commodity price swaps	26,845		—		24,086		2,759
Commodity forward contracts	8,316		—		8,316		—
Foreign currency forward contracts	6,519		—		6,519		—
Total liabilities	$	43,655	$	1,975	$	38,921	$	2,759

Level 1 Instruments

Our NYMEX futures contracts are exchange traded and are measured and recorded at fair value using quoted market prices, a Level 1 input.

Level 2 Instruments

Investments in marketable securities, derivative instruments consisting of commodity price swaps and forward sales and purchase contracts and HEP’s interest rate swaps are measured and recorded at fair value using Level 2 inputs. The fair values of the commodity price and interest rate swap contracts are based on the net present value of expected future cash flows related to both variable and fixed rate legs of the respective swap agreements. The measurements are computed using market-based observable inputs, quoted forward commodity prices with respect to our commodity price swaps and the forward London Interbank Offered Rate (“LIBOR”) yield curve with respect to HEP’s interest rate swaps. The fair value of the marketable securities is based on values provided by a third-party, which were derived using market quotes for similar type instruments, a Level 2 input.

Level 3 Instruments

We at times have commodity price swap contracts that relate to forecasted sales of unleaded gasoline and forward commodity sales and purchase contracts for which quoted forward market prices are not readily available. The forward rate used to value these price swaps and forward sales and purchase contracts are derived using a projected forward rate using quoted market rates for similar products, adjusted for regional pricing and grade differentials, a Level 3 input.

The following table presents the changes in fair value of our Level 3 assets and liabilities (all related to derivative instruments) for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017		Six Months Ended June 30, 2017
Level 3 Instruments
	(In thousands)
Liability balance at beginning of period	$	—	$	(2,554	)
Change in fair value:
Recognized in other comprehensive income	—		1,625
Recognized in cost of products sold	—		(1		)
Settlement date fair value of contractual maturities:
Recognized in sales and other revenues	—		(165		)
Recognized in cost of products sold	—		1,095
Liability balance at end of period	$	—	$	—

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Earnings Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated as net income (loss) attributable to HollyFrontier stockholders divided by the average number of shares of common stock outstanding. Diluted earnings per share assumes, when dilutive, the issuance of the net incremental shares from restricted shares and performance share units. The following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(In thousands, except per share data)
Net income (loss) attributable to HollyFrontier stockholders	$	57,767	$	(409,368	)	$	12,299	$	(388,115	)
Participating securities’ (restricted stock) share in earnings	373		216			752		432
Net income (loss) attributable to common shares	$	57,394	$	(409,584	)	$	11,547	$	(388,547	)
Average number of shares of common stock outstanding	176,147		175,865			176,141		176,301
Effect of dilutive variable restricted shares andperformance share units (1)	155		—			349		—
Average number of shares of common stock outstanding assuming dilution	176,302		175,865			176,490		176,301
Basic earnings (loss) per share	$	0.33	$	(2.33	)	$	0.07	$	(2.20	)
Diluted earnings (loss) per share	$	0.33	$	(2.33	)	$	0.07	$	(2.20	)
(1) Excludes anti-dilutive restricted and performance share units of:	140		191			133		183

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

Share-based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

As of June 30, 2017, we have two principal share-based compensation plans (collectively, the “Long-Term Incentive Compensation Plan”).

The compensation cost charged against income for these plans was $8.4 million and $6.0 million for the three months ended June 30, 2017 and 2016, respectively, and $15.4 million and $8.6 million for the six months ended June 30, 2017 and 2016, respectively. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting is to expense the costs ratably over the vesting periods.

Additionally, HEP maintains a share-based compensation plan for Holly Logistic Services, L.L.C.’s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s share-based compensation plan was $0.7 million and $0.5 million for the three months ended June 30, 2017 and 2016, respectively, and $1.1 million and $1.2 million for the six months ended June 30, 2017 and 2016, respectively.

Restricted Stock and Restricted Stock Units

Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees restricted stock and restricted stock unit awards with awards generally vesting over a period of one to three years. Restricted stock award recipients are generally entitled to all the rights of absolute ownership of the restricted shares from the date of grant including the right to vote the shares and to receive dividends. Upon vesting, restrictions on the restricted shares lapse at which time they convert to common shares. In addition, we grant non-employee directors restricted stock unit awards, which typically vest over a period of one year and are payable in stock. The fair value of each restricted stock and restricted stock unit award is measured based on the grant date market price of our common shares and is amortized over the respective vesting period.

A summary of restricted stock and restricted stock unit activity and changes during the six months ended June 30, 2017 is presented below:

Restricted Stock and Restricted Stock Units	Grants		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2017 (non-vested)	1,188,774		$	28.87
Granted (1)	733,270		28.20
Vesting (transfer/conversion to common stock)	(29,527	)	33.08
Forfeited	(39,209	)	30.58
Outstanding at June 30, 2017 (non-vested)	1,853,308		$	28.83	$	50,910

(1) Includes restricted stock units issued to PCLI employees.

In connection with our February 1, 2017 PCLI acquisition, we issued 472,276 restricted stock units to PCLI employees as replacement units for unvested awards issued under the legacy PCLI plan. The fair value of these awards totaled $13.3 million and is based on a February 1 grant date value of $28.12 per unit. Of this total, $5.1 million is recognized as an increase to our PCLI purchase price as it represents the value of the awards attributable to pre-acquisition services, and the remaining $8.2 million to be recognized as compensation expense over the two-year vesting period.

For the six months ended June 30, 2017, restricted stock and restricted stock units vested having a grant date fair value of $1.0 million. As of June 30, 2017, there was $31.2 million of total unrecognized compensation cost related to non-vested restricted stock and restricted stock unit grants. That cost is expected to be recognized over a weighted-average period of 1.3 years.

Performance Share Units

Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees performance share units, which are payable in stock upon meeting certain criteria over the service period, and generally vest over a period of three years. Under the terms of our performance share unit grants, awards are subject to “financial performance” and “market performance” criteria. Financial performance is based on our financial performance compared to a peer group of independent refining companies, while market performance is based on the relative standing of total shareholder return achieved by HollyFrontier compared to peer group companies. The number of shares ultimately issued under these awards can range from zero to 200% of target award amounts. As of June 30, 2017, estimated share payouts for outstanding non-vested performance share unit awards averaged approximately 60% of target amounts.

A summary of performance share unit activity and changes during the six months ended June 30, 2017 is presented below:

Performance Share Units	Grants
Outstanding at January 1, 2017 (non-vested)	703,939
Granted	21,923
Forfeited	(86,117	)
Outstanding at June 30, 2017 (non-vested)	639,745

As of June 30, 2017, there was $10.2 million of total unrecognized compensation cost related to non-vested performance share units having a grant date fair value of $33.34 per unit. That cost is expected to be recognized over a weighted-average period of 1.7 years.

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Cash and Cash Equivalents and Investments in Marketable Securities

6 Months Ended

Jun. 30, 2017

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash And Cash Equivalents And Investments In Marketable Securities

Cash and Cash Equivalents and Investments in Marketable Securities

Our investment portfolio at June 30, 2017 consisted of cash and cash equivalents.

We invest in marketable debt securities with the maximum maturity or put date of any individual issue generally not greater than one year from the date of purchase, which are usually held until maturity. All of these instruments are classified as available-for-sale and are reported at fair value. Interest income is recorded as earned. Unrealized gains and losses, net of related income taxes, are reported as a component of accumulated other comprehensive income. Upon sale or maturity, realized gains on our marketable debt securities are recognized as interest income. These gains are computed based on the specific identification of the underlying cost of the securities, net of unrealized gains and losses previously reported in other comprehensive income. Unrealized gains and losses on our available-for-sale securities are due to changes in market prices and are considered temporary.

The following is a summary of our marketable securities as of December 31, 2016:

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value (Net Carrying Amount)
	(In thousands)
December 31, 2016
Commercial paper	$	7,687	$	1	$	(1	)	$	7,687
Corporate debt securities	4,001		—		—			4,001
State and political subdivisions debt securities	412,462		1		(3		)	412,460
Total marketable securities	$	424,150	$	2	$	(4	)	$	424,148

Interest income recognized on our marketable securities was zero and $0.1 million for the three months ended June 30, 2017 and 2016 respectively, and $0.3 million and $0.1 million for the six months ended June 30, 2017 and 2016.

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Inventories

6 Months Ended

Jun. 30, 2017

Inventory, Net [Abstract]

Inventories

Inventories

Inventory consists of the following components:

	June 30, 2017			December 31, 2016
	(In thousands)
Crude oil	$	543,139		$	549,886
Other raw materials and unfinished products(1)	342,991			287,561
Finished products(2)	606,371			465,432
Lower of cost or market reserve	(428,323		)	(332,518		)
Process chemicals(3)	21,704			2,767
Repair and maintenance supplies and other (4)	106,091			162,548
Total inventory	$	1,191,973		$	1,135,676

(1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude.

(2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels.

(3) Process chemicals include additives and other chemicals.

(4) Includes RINs.

We acquired $213.0 million of other raw materials, unfinished and finished products and repair and maintenance supplies in connection with our February 1, 2017 acquisition of PCLI. We value these inventories at the lower of FIFO cost or net realizable value.

Inventories, which are valued at the lower of LIFO cost or market, reflect a valuation reserve of $428.3 million and $332.5 million at June 30, 2017 and December 31, 2016, respectively. The December 31, 2016 market reserve of $332.5 million was reversed due to the sale of inventory quantities that gave rise to the 2016 reserve. A new market reserve of $428.3 million was established as of June 30, 2017 based on market conditions and prices at that time. The effect of the change in lower of cost or market reserve was an increase to cost of goods sold totaling $84.0 million for the three months ended June 30, 2017 and a decrease of $138.5 million for the three months ended June 30, 2016, respectively, and an increase to cost of goods sold totaling $95.8 million for the six months ended June 30, 2017 and a decrease of $194.6 million for the six months ended June 30, 2016.

At June 30, 2017, the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs.

In May 2017, the Environmental Protection Agency (“EPA”) granted the Cheyenne Refinery a one-year small refinery exemption from the Renewable Fuel Standard (“RFS”) program requirements for the 2016 calendar year. As a result, the Cheyenne Refinery’s gasoline and diesel production are not subject to the percentage of production that must satisfy a Renewable Volume Obligation (“RVO”) for 2016. We are currently working with the EPA to reinstate the RINs previously submitted to meet our Cheyenne Refinery’s 2016 RVO and expect the EPA to reinstate these RINs. The cost of the RINs used earlier to satisfy the Cheyenne Refinery’s 2016 RVO of $30.5 million was charged to cost of products sold in 2016. In the second quarter of 2017, we increased our inventory of RINs and reduced our cost of products sold by this amount, representing the cost of the RINs to be reinstated as a result of the RFS exemption received by the Cheyenne Refinery.

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Environmental

6 Months Ended

Jun. 30, 2017

Environmental Expense and Liabilities [Abstract]

Environmental

Environmental

Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. We have ongoing investigations of environmental matters at various locations and routinely assess our recorded environmental obligations, if any, with respect to such matters. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and cleanup activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable.

We reduced expense by $0.9 million for each of the three and the six months ended June 30, 2017 and incurred expense of $0.5 million and $1.3 million for the three and the six months ended June 30, 2016, respectively, for environmental remediation obligations. The accrued environmental liability reflected in our consolidated balance sheets was $91.3 million and $96.4 million at June 30, 2017 and December 31, 2016, respectively, of which $82.9 million and $82.9 million, respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time (up to 30 years for certain projects). The amount of our accrued liability includes PCLI environmental obligations of $4.6 million assumed upon our February 1, 2017 acquisition. Estimated liabilities could increase in the future when the results of ongoing investigations become known, are considered probable and can be reasonably estimated.

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Debt

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Debt

Debt

HollyFrontier Credit Agreement

In February 2017, we increased the size of our senior unsecured revolving credit facility from $1 billion to $1.35 billion and extended the maturity date to February 2022 (the “HollyFrontier Credit Agreement”). The Holly Frontier Credit Agreement may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. During the six months ended June 30, 2017, we received advances totaling $26.0 million and repaid $26.0 million under the HollyFrontier Credit Agreement. At June 30, 2017, we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $3.1 million under the HollyFrontier Credit Agreement.

HEP Credit Agreement

At June 30, 2017, HEP had a $1.2 billion senior secured revolving credit facility maturing in November 2018 (the “HEP Credit Agreement”). During the six months ended June 30, 2017, HEP received advances totaling $479.0 million and repaid $189.0 million under the HEP Credit Agreement. At June 30, 2017, HEP was in compliance with all of its covenants, had outstanding borrowings of $843.0 million and no outstanding letters of credit under the HEP Credit Agreement.

In July 2017, the HEP Credit Agreement was amended to increase the size of the facility to $1.4 billion and to extend the maturity to July 2022 (the “HEP Amended Credit Agreement”) The HEP Amended Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit and has a $300 million accordion.

HEP’s obligations under the HEP Amended Credit Agreement are collateralized by substantially all of HEP’s assets and is guaranteed by HEP’s material wholly-owned subsidiaries. Any recourse to the general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP are not significant. HEP’s creditors have no recourse to our other assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries.

HollyFrontier Senior Notes

Our 5.875% senior notes ($1 billion aggregate principal amount maturing April 2026) (the “HollyFrontier Senior Notes”) are unsecured and unsubordinated obligations of ours and rank equally with all our other existing and future unsecured and unsubordinated indebtedness.

HollyFrontier Financing Obligation

In March 2016, we extinguished a financing obligation at a cost of $39.5 million and recognized an $8.7 million loss on the early termination. The financing obligation related to a sale and lease-back of certain crude oil tankage that we sold to an affiliate of Plains in October 2009 for $40.0 million.

HollyFrontier Term Loan

In April 2016, we entered into a $350 million senior unsecured term loan (the “HollyFrontier Term Loan”) maturing in April 2019. The HollyFrontier Term Loan was fully repaid with proceeds received upon the November 2016 issuance of the HollyFrontier Senior Notes.

HEP Senior Notes

HEP’s 6.0% senior notes ($400 million aggregate principal amount maturing August 2024) (the “HEP Senior Notes”) are unsecured and impose certain restrictive covenants, including limitations on HEP’s ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. At any time when the HEP Senior Notes are rated investment grade by both Moody’s and Standard & Poor’s and no default or event of default exists, HEP will not be subject to many of the foregoing covenants. Additionally, HEP has certain redemption rights under the HEP Senior Notes.

In January 2017, HEP redeemed its $300 million aggregate principal amount of 6.5% senior notes maturing March 2020 at a redemption cost of $309.8 million, at which time HEP recognized a $12.2 million early extinguishment loss consisting of a $9.8 million debt redemption premium and unamortized discount and financing costs of $2.4 million. HEP funded the redemption with borrowings under the HEP Credit Agreement.

Indebtedness under the HEP Senior Notes is guaranteed by HEP’s wholly-owned subsidiaries. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries.

The carrying amounts of long-term debt are as follows:

	June 30, 2017			December 31, 2016
	(In thousands)
HollyFrontier 5.875% Senior Notes
Principal	$	1,000,000		$	1,000,000
Unamortized discount and debt issuance costs	(8,788		)	(8,775		)
	991,212			991,225
HEP Credit Agreement	843,000			553,000
HEP 6% Senior Notes
Principal	400,000			400,000
Unamortized discount and debt issuance costs	(6,261		)	(6,607		)
	393,739			393,393
HEP 6.5% Senior Notes
Principal	—			300,000
Unamortized discount and debt issuance costs	—			(2,481		)
	—			297,519
Total HEP long-term debt	1,236,739			1,243,912
Total long-term debt	$	2,227,951		$	2,235,137

The fair values of the senior notes are as follows:

	June 30, 2017		December 31, 2016
	(In thousands)
HollyFrontier senior notes	$	1,065,000	$	1,022,500
HEP senior notes	$	418,000	$	723,750

These fair values are based on estimates provided by a third party using market quotes for similar type instruments, a Level 2 input. See Note 4 for additional information on Level 2 inputs.

We capitalized interest attributable to construction projects of $0.6 million and $3.5 million for the three months ended June 30, 2017 and 2016, respectively, and $3.2 million and $4.2 million for the six months ended June 30, 2017 and 2016, respectively.

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Derivative Instruments And Hedging Activities

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments And Hedging Activities

Derivative Instruments and Hedging Activities

Commodity Price Risk Management

Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, forward purchase and sales and futures contracts to mitigate price exposure with respect to:

• our inventory positions;

• natural gas purchases;

• costs of crude oil and related grade differentials;

• prices of refined products; and

• our refining margins.

Accounting Hedges

We have swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas. We also periodically have forward sales contracts that lock in the prices of future sales of crude oil and refined product and swap contracts serving as cash flow hedges against price risk on forecasted purchases of WTI crude oil and forecasted sales of refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains/losses) recorded directly to other comprehensive income. These fair value adjustments are later reclassified to earnings as the hedging instruments mature. On a quarterly basis, hedge ineffectiveness is measured by comparing the change in fair value of the swap contracts against the expected future cash inflows/outflows on the respective transaction being hedged. Any hedge ineffectiveness is also recognized in earnings.

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps and forward sales under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements				Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings
				Location	Amount			Location	Amount
	(In thousands)
Three Months Ended June 30, 2017
Change in fair value	$	1,378
Gain reclassified to earnings due to settlements	(325		)	Sales and other revenues	$	4,476
Amortization of discontinued hedges reclassified to earnings	270			Operating expenses	(4,421		)	Operating expenses	$	(18	)
Total	$	1,323			$	55			$	(18	)
Three Months Ended June 30, 2016
Change in fair value	$	(5,138	)
Loss reclassified to earnings due to settlements	21,910			Sales and other revenue	$	(15,897	)
Amortization of discontinued hedges reclassified to earnings	270			Operating expenses	(6,283		)	Operating expenses	$	—
Total	$	17,042			$	(22,180	)		$	—
Six Months Ended June 30, 2017
Change in fair value	$	4,715		Sales and other revenues	$	8,426
Loss reclassified to earnings due to settlements	49			Cost of products sold	(299		)
Amortization of discontinued hedge reclassified to earnings	540			Operating expenses	(8,716		)	Operating expenses	$	(18	)
Total	$	5,304			$	(589	)		$	(18	)
Six Months Ended June 30, 2016
Change in fair value	$	(17,059	)
Loss reclassified to earnings due to settlements	32,966			Sales and other revenues	$	(20,653	)
Amortization of discontinued hedge reclassified to earnings	540			Operating expenses	(12,853		)	Operating expenses	$	—
Total	$	16,447			$	(33,506	)		$	—

As of June 30, 2017, we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2017	2018	2019	2020	2021	Unit of Measure
Natural gas price swaps - long	12,000,000	4,800,000	1,800,000	1,800,000	1,800,000	1,800,000	MMBTU

In 2013, we dedesignated certain commodity price swaps (long positions) that previously received hedge accounting treatment. These contracts now serve as economic hedges against price risk on forecasted natural gas purchases totaling 4,800,000 MMBTU’s to be purchased ratably through 2017. As of June 30, 2017, we have an unrealized loss of $0.5 million classified in accumulated other comprehensive income that relates to the application of hedge accounting prior to dedesignation that is amortized as a charge to operating expenses as the contracts mature.

Economic Hedges

We also have swap contracts that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges) to lock in basis spread differentials on forecasted purchases of crude oil and natural gas. Also, we have commodity forward contracts and NYMEX futures contracts to lock in prices on forecasted purchases of inventory. In addition, we had Canadian currency swap contracts that effectively fixed the conversion rate on $1.125 billion Canadian dollars (the PCLI purchase price), which were settled on February 1, 2017, in connection with the closing of the PCLI acquisition. These contracts are measured at fair value with offsetting adjustments (gains/losses) recorded directly to income.

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Three Months Ended June 30,					Six Months Ended June 30,
Location of Gain (Loss) Recognized in Earnings	2017			2016		2017			2016
	(In thousands)
Cost of products sold	$	6,983		$	828	$	14,035		$	1,302
Operating expenses	(1,541		)	8,083		(5,763		)	4,614
Gain on foreign currency swap	—			—		24,545			—
Total	$	5,442		$	8,911	$	32,817		$	5,916

As of June 30, 2017, we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2017	2018	Unit of Measure
Crude price swaps (basis spread) - long	1,836,000	1,836,000	—	Barrels
Natural gas price swaps (basis spread) - long	5,154,000	5,154,000	—	MMBTU
Natural gas price swaps - long	4,800,000	4,800,000	—	MMBTU
Natural gas price swaps - short	4,800,000	4,800,000	—	MMBTU
NYMEX futures (WTI) - short	1,240,000	1,040,000	200,000	Barrels
Forward gasoline and diesel contracts - long	465,000	465,000	—	Barrels

Interest Rate Risk Management

HEP uses interest rate swaps to manage its exposure to interest rate risk.

As of June 30, 2017, HEP had two interest rate swap contracts with identical terms that hedge its exposure to the cash flow risk caused by the effects of LIBOR changes on $150.0 million in credit agreement advances. The swaps effectively convert $150.0 million of LIBOR based debt to fixed rate debt having an interest rate of 0.74% plus an applicable margin of 2.25% as of June 30, 2017, which equaled an effective interest rate of 2.99%. Both of these swap contracts matured in July 2017 and have been designated as cash flow hedges. To date, there has been no ineffectiveness on these cash flow hedges.

The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP’s interest rate swaps under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements
				Location	Amount
	(In thousands)
Three Months Ended June 30, 2017
Interest rate swaps
Change in fair value	$	11
Gain reclassified to earnings due to settlements	(102		)	Interest expense	$	102
Total	$	(91	)		$	102
Three Months Ended June 30, 2016
Interest rate swaps
Change in fair value	$	(255	)
Loss reclassified to earnings due to settlements	113			Interest expense	$	(113	)
Total	$	(142	)		$	(113	)
Six Months Ended June 30, 2017
Interest rate swaps
Change in fair value	$	87
Gain reclassified to earnings due to settlements	(115		)	Interest expense	$	115
Total	$	(28	)		$	115
Six Months Ended June 30, 2016
Interest rate swaps
Change in fair value	$	(938	)
Loss reclassified to earnings due to settlements	343			Interest expense	$	(343	)
Total	$	(595	)		$	(343	)

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
June 30, 2017
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	10,018	$	—		$	10,018
Interest rate swap contracts	63		—		63		—		—			—
	$	63	$	—	$	63	$	10,018	$	—		$	10,018
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	10,613	$	(7,863	)	$	2,750
NYMEX futures contracts	662		—		662		—		—			—
Forward contracts	1,447		—		1,447		1,218		—			1,218
	$	2,109	$	—	$	2,109	$	11,831	$	(7,863	)	$	3,968
Total net balance					$	2,172						$	13,986
Balance sheet classification:							Accrued liabilities					$	13,308
							Other long-term liabilities					678
	Prepayment and other				$	2,172						$	13,986

	Derivatives in Net Asset Position							Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet			Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2016
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—		$	—	$	13,185	$	(431	)	$	12,754
Commodity forward contracts	—		—			—		2,978		—			2,978
Interest rate swap contracts	91		—			91		—		—			—
	$	91	$	—		$	91	$	16,163	$	(431	)	$	15,732
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	4,244	$	(756	)	$	3,488	$	12,903	$	(9,887	)	$	3,016
NYMEX futures contracts	—		—			—		1,975		—			1,975
Commodity forward contracts	5,905		—			5,905		5,338		—			5,338
Foreign currency forward contracts	—		—			—		6,519		—			6,519
	$	10,149	$	(756	)	$	9,393	$	26,735	$	(9,887	)	$	16,848
Total net balance						$	9,484						$	32,580
Balance sheet classification:	Prepayment and other					$	9,484	Accrued liabilities					$	32,580

At June 30, 2017, we had a pre-tax net unrealized loss of $10.5 million classified in accumulated other comprehensive income that relates to all accounting hedges having contractual maturities through 2021. Assuming commodity prices and interest rates remain unchanged, an unrealized loss of $9.8 million will be effectively transferred from accumulated other comprehensive income into the statement of income as the hedging instruments contractually mature over the next twelve-month period.

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Equity

6 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

Equity

Equity

Changes to equity during the six months ended June 30, 2017 are presented below:

	HollyFrontier Stockholders’ Equity			Noncontrolling Interest			Total Equity
	(In thousands)
Balance at December 31, 2016	$	4,681,394		$	620,591		$	5,301,985
Net income	12,299			23,992			36,291
Dividends	(117,754		)	—			(117,754		)
Distributions to noncontrolling interest holders	—			(53,776		)	(53,776		)
Other comprehensive income (loss), net of tax	8,173			(17		)	8,156
Allocated equity on HEP common unit issuances, net of tax	9,598			36,723			46,321
Equity awards issued in PCLI acquisition	5,056			—			5,056
Equity-based compensation	15,411			1,146			16,557
Purchase of treasury stock (1)	(274		)	—			(274		)
Purchase of HEP units for restricted grants	—			(35		)	(35		)
Other	—			(443		)	(443		)
Balance at June 30, 2017	$	4,613,903		$	628,181		$	5,242,084

(1) Includes 9,349 shares withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards.

In May 2015, our Board of Directors approved a $1 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. As of June 30, 2017, we had remaining authorization to repurchase up to $178.8 million under this stock repurchase program. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs.

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Other Comprehensive Income

6 Months Ended

Jun. 30, 2017

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

The components and allocated tax effects of other comprehensive income (loss) are as follows:

	Before-Tax			Tax Expense (Benefit)			After-Tax
	(In thousands)
Three Months Ended June 30, 2017
Net change in foreign currency translation adjustment	$	14,298		$	4,433		$	9,865
Net unrealized gain on hedging instruments	1,232			503			729
Other comprehensive income	15,530			4,936			10,594
Less other comprehensive loss attributable to noncontrolling interest	(67		)	—			(67		)
Other comprehensive income attributable to HollyFrontier stockholders	$	15,597		$	4,936		$	10,661
Three Months Ended June 30, 2016
Net unrealized gain on marketable securities	$	12		$	4		$	8
Net unrealized gain on hedging instruments	16,900			6,574			10,326
Other comprehensive income	16,912			6,578			10,334
Less other comprehensive loss attributable to noncontrolling interest	(85		)	—			(85		)
Other comprehensive income attributable to HollyFrontier stockholders	$	16,997		$	6,578		$	10,419
Six Months Ended June 30, 2017
Net change in foreign currency translation adjustment	$	7,585		$	2,654		$	4,931
Net unrealized loss on marketable securities	(4		)	(1		)	(3		)
Net unrealized gain on hedging instruments	5,276			2,048			3,228
Other comprehensive income	12,857			4,701			8,156
Less other comprehensive loss attributable to noncontrolling interest	(17		)	—			(17		)
Other comprehensive income attributable to HollyFrontier stockholders	$	12,874		$	4,701		$	8,173
Six Months Ended June 30, 2016
Net unrealized gain on marketable securities	$	113		$	44		$	69
Net unrealized gain on hedging instruments	15,852			6,273			9,579
Other comprehensive income	15,965			6,317			9,648
Less other comprehensive loss attributable to noncontrolling interest	(360		)	—			(360		)
Other comprehensive income attributable to HollyFrontier stockholders	$	16,325		$	6,317		$	10,008

The following table presents the income statement line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”):

AOCI Component	Gain (Loss) Reclassified From AOCI						Income Statement Line Item
	(In thousands)
	Three Months Ended June 30,
	2017			2016
Hedging instruments:
Commodity price swaps	$	4,476		$	(15,897	)	Sales and other revenues
	(4,421		)	(6,283		)	Operating expenses
Interest rate swaps	102			(113		)	Interest expense
	157			(22,293		)
	36			(8,601		)	Income tax expense (benefit)
	121			(13,692		)	Net of tax
	(65		)	69			Noncontrolling interest
	56			(13,623		)	Net of tax and noncontrolling interest
Total reclassifications for the period	$	56		$	(13,623	)
	Six Months Ended June 30,
	2017			2016
Marketable securities	$	—		$	(23	)	Interest income
	—			(9		)	Income tax benefit
	—			(14		)	Net of tax
Hedging instruments:
Commodity price swaps	8,426			(20,653		)	Sales and other revenues
	(299		)	—			Cost of products sold
	(8,716		)	(12,853		)	Operating expenses
Interest rate swaps	115			(343		)	Interest expense
	(474		)	(33,849		)
	(212		)	(13,019		)	Income tax benefit
	(262		)	(20,830		)	Net of tax
	(73		)	209			Noncontrolling interest
	(335		)	(20,621		)	Net of tax and noncontrolling interest
Total reclassifications for the period	$	(335	)	$	(20,635	)

Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes:

	June 30, 2017			December 31, 2016
	(In thousands)
Foreign currency translation adjustment	$	4,931		$	—
Unrealized gain on post-retirement benefit obligations	20,055			20,055
Unrealized gain on marketable securities	—			3
Unrealized loss on hedging instruments, net of noncontrolling interest	(6,201		)	(9,446		)
Accumulated other comprehensive income	$	18,785		$	10,612

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Post-retirement Plan

6 Months Ended

Jun. 30, 2017

Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]

Post-retirement Plans

Post-retirement Plans

In connection with our PCLI acquisition, we agreed to establish employee benefit plans including union and non-union pension plans and a post retirement plan for PCLI employees that were previously covered under legacy Suncor plans.

Our agreement with Suncor also provides that pension assets related to the union and non-union pension plans will be transferred to a pension trust which will be established by us. The amount of assets to be transferred will be agreed by Suncor and us based on actuarial valuations and a formula specified in the SPA.

Our purchase price allocation as of February 1, 2017 included estimates of the amount of pension benefit obligation and the pension assets to be transferred based on actuarial estimates and are as follows:

	February 1, 2017
	(in thousands)
Projected benefit obligation	$	50,827
Estimated pension assets	52,082
Estimated funded status	$	1,255

The net periodic pension expense of these plans consisted of the following components:

	Three Months Ended June 30, 2017			February 1, 2017 to June 30, 2017
	(in thousands)
Service cost - benefit earned during the period	$	944		$	1,582
Interest cost on projected benefit obligations	518			868
Expected return on plan assets	(747		)	(1,252		)
Net periodic pension expense	$	715		$	1,198

We have a post-retirement healthcare and other benefits plan that is available to certain of our non-PCLI employees who satisfy certain age and service requirements. The net periodic benefit credit of this plan consisted of the following components:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands)
Service cost – benefit earned during the period	$	301		$	324		$	601		$	648
Interest cost on projected benefit obligations	169			197			339			394
Amortization of prior service credit	(870		)	(871		)	(1,740		)	(1,742		)
Net periodic post-retirement credit	$	(400	)	$	(350	)	$	(800	)	$	(700	)

In addition, we established a post-retirement healthcare and other benefits plan for our PCLI employees. Our purchase price allocation as of February 1, 2017 included estimates of the amount of projected benefit obligations of $8.2 million. The net periodic benefit expense related to this plan was $0.1 million and $0.3 million for the three and the six months ended June 30, 2017, respectively.

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Contingencies

6 Months Ended

Jun. 30, 2017

Loss Contingency [Abstract]

Contingencies

Contingencies

We are a party to various litigation and legal proceedings which we believe, based on advice of counsel, will not either individually or in the aggregate have a material adverse effect on our financial condition, results of operations or cash flows.

In March, 2006, a subsidiary of ours sold the assets of Montana Refining Company under an Asset Purchase Agreement (“APA”). Calumet Montana Refining LLC, the current owner of the assets, has submitted requests for reimbursement pursuant to contractual indemnity provisions under the APA for various costs incurred, as well as additional claims related to environmental matters. This matter is scheduled for arbitration beginning in January 2018. We have accrued the costs we believe are owed pursuant to the APA, and we estimate that any reasonably possible losses beyond the amounts accrued are not material.

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Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Our operations are organized into three reportable segments, Refining, PCLI and HEP. Our operations that are not included in the Refining, PCLI 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 HFC 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. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

On February 1, 2017, we acquired PCLI, a Canadian-based producer of lubricant products such as base oils, white oils, specialty products and finished lubricants. The PCLI segment involves production operations, located in Mississauga, Ontario, and marketing of its products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China.

The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP); a 50% ownership interest in each of the Frontier Pipeline, Osage Pipeline and the Cheyenne Pipeline and a 25% ownership 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, 2016.

	Refining (1)			PCLI		HEP (2)		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended June 30, 2017
Sales and other revenues	$	3,141,137		$	309,566	$	109,143	$	15		$	(100,997	)	$	3,458,864
Operating expenses	$	245,265		$	52,652	$	34,097	$	1,322		$	(17,684	)	$	315,652
Depreciation and amortization	$	75,656		$	7,302	$	19,541	$	2,990		$	(207	)	$	105,282
Income (loss) from operations	$	86,603		$	17,511	$	52,890	$	(34,746	)	$	(573	)	$	121,685
Earnings of equity method investments	$	—		$	—	$	4,053	$	—		$	—		$	4,053
Capital expenditures	$	52,190		$	8,757	$	12,259	$	4,087		$	—		$	77,293
Three Months Ended June 30, 2016
Sales and other revenues	$	2,699,022		$	—	$	94,896	$	47		$	(79,327	)	$	2,714,638
Operating expenses	$	225,683		$	—	$	29,212	$	1,152		$	(4,711	)	$	251,336
Depreciation and amortization	$	72,023		$	—	$	15,308	$	3,299		$	(207	)	$	90,423
Income (loss) from operations	$	(436,214	)	$	—	$	47,514	$	(31,197	)	$	(645	)	$	(420,542	)
Earnings of equity method investments	$	—		$	—	$	3,623	$	—		$	—		$	3,623
Capital expenditures	$	105,875		$	—	$	33,201	$	1,396		$	—		$	140,472
Six Months Ended June 30, 2017
Sales and other revenues	$	6,003,213		$	511,506	$	214,777	$	42		$	(190,191	)	$	6,539,347
Operating expenses	$	502,380		$	88,681	$	66,586	$	2,335		$	(37,213	)	$	622,769
Depreciation and amortization	$	145,324		$	12,376	$	37,914	$	6,122		$	(414	)	$	201,322
Income (loss) from operations	$	36,348		$	29,905	$	105,028	$	(81,181	)	$	(1,139	)	$	88,961
Earnings of equity method investments	$	—		$	—	$	5,893	$	—		$	—		$	5,893
Capital expenditures	$	99,864		$	10,352	$	20,524	$	6,310		$	—		$	137,050
Six Months Ended June 30, 2016
Sales and other revenues	$	4,698,609		$	—	$	196,906	$	157		$	(162,310	)	$	4,733,362
Operating expenses	$	453,512		$	—	$	56,968	$	2,407		$	(8,968	)	$	503,919
Depreciation and amortization	$	140,901		$	—	$	31,337	$	6,479		$	(414	)	$	178,303
Income (loss) from operations	$	(380,281	)	$	—	$	102,648	$	(58,052	)	$	(1,259	)	$	(336,944	)
Earnings of equity method investments	$	—		$	—	$	6,388	$	—		$	—		$	6,388
Capital expenditures	$	210,582		$	—	$	75,385	$	4,078		$	—		$	290,045

June 30, 2017
Cash, cash equivalents and investments in marketable securities	$	2,311	$	68,346	$	16,339	$	373,330	$	—		$	460,326
Total assets	$	6,354,911	$	1,194,478	$	1,904,951	$	471,367	$	(282,672	)	$	9,643,035
Long-term debt	$	—	$	—	$	1,236,739	$	991,212	$	—		$	2,227,951
December 31, 2016
Cash, cash equivalents and investments in marketable securities	$	49	$	—	$	3,657	$	1,131,021	$	—		$	1,134,727
Total assets	$	6,513,806	$	—	$	1,920,487	$	1,306,169	$	(304,801	)	$	9,435,661
Long-term debt	$	—	$	—	$	1,243,912	$	991,225	$	—		$	2,235,137

(1) For the three and six months ended June 30, 2017, we recorded a long-lived asset impairment charge of $19.2 million that related to our Woods Cross Refinery, which is included in our Refining segment. For the three and six months ended June 30, 2016, we recorded goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million, respectively, that relate to our Cheyenne Refinery, which is included in our Refining segment.

(2) HEP acquired a newly constructed crude unit, FCCU and polymerization unit at our Woods Cross Refinery in October 2016. As a result, we have recast our 2016 HEP segment information to include these asset-related capital expenditures and certain operating expenses that were previously presented under the Refining segment.

HEP segment revenues from external customers were $16.0 million and $15.7 million for the three months ended June 30, 2017 and 2016, respectively, and $32.6 million and $34.9 million for the six months ended June 30, 2017 and 2016, respectively.

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Additional Financial Information

6 Months Ended

Jun. 30, 2017

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]

Additional Financial Information

Additional Financial Information

Borrowings pursuant to the HollyFrontier Credit Agreement are recourse to HollyFrontier, but not HEP. Furthermore, borrowings under the HEP Credit Agreement are recourse to HEP, but not to the assets of HFC with the exception of HEP Logistics Holdings, L.P., HEP’s general partner. Other than its investment in HEP, the assets of the general partner are insignificant.

The following condensed financial information is provided for HollyFrontier Corporation (on a standalone basis, before consolidation of HEP), and for HEP and its consolidated subsidiaries (on a standalone basis, exclusive of HFC). Due to certain basis differences, our reported amounts for HEP may not agree to amounts reported in HEP’s periodic public filings.

Condensed Consolidating Balance Sheet
June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	443,987	$	16,339	$	—		$	460,326
Accounts receivable, net	601,098		44,738		(43,486		)	602,350
Inventories	1,190,503		1,470		—			1,191,973
Income taxes receivable	1,428		—		—			1,428
Prepayments and other	42,199		1,652		(6,165		)	37,686
Total current assets	2,279,215		64,199		(49,651		)	2,293,763
Properties, plants and equipment, net	3,320,339		1,347,276		(224,057		)	4,443,558
Intangibles and other assets	2,411,622		493,476		616			2,905,714
Total assets	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,036,693	$	15,928	$	(43,486	)	$	1,009,135
Income tax payable	24,427		—		—			24,427
Accrued liabilities	161,371		31,680		(6,165		)	186,886
Total current liabilities	1,222,491		47,608		(49,651		)	1,220,448
Long-term debt	991,212		1,236,739		—			2,227,951
Liability to HEP	202,382		—		(202,382		)	—
Deferred income taxes	744,401		649		—			745,050
Other long-term liabilities	146,718		61,312		(528		)	207,502
Investment in HEP	151,055		—		(151,055		)	—
Equity – HollyFrontier	4,552,917		466,113		(405,127		)	4,613,903
Equity – noncontrolling interest	—		92,530		535,651			628,181
Total liabilities and equity	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035

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 taxes	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 Statement of Income and Comprehensive Income
Three Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	3,442,999		$	109,143		$	(93,278	)	$	3,458,864
Operating costs and expenses:
Cost of products sold	2,828,274			—			(74,834		)	2,753,440
Lower of cost or market inventory valuation adjustment	83,982			—			—			83,982
Operating expenses	299,239			34,097			(17,684		)	315,652
General and administrative	56,941			2,615			20			59,576
Depreciation and amortization	89,311			19,541			(3,570		)	105,282
Goodwill and asset impairment	19,247			—			—			19,247
Total operating costs and expenses	3,376,994			56,253			(96,068		)	3,337,179
Income from operations	66,005			52,890			2,790			121,685
Other income (expense):
Earnings of equity method investments	26,949			4,053			(26,949		)	4,053
Interest expense	(13,393		)	(13,645		)	(2,431		)	(29,469		)
Other, net	9,710			90			—			9,800
	23,266			(9,502		)	(29,380		)	(15,616		)
Income before income taxes	89,271			43,388			(26,590		)	106,069
Income tax expense	31,868			128			—			31,996
Net income	57,403			43,260			(26,590		)	74,073
Less net income (loss) attributable to noncontrolling interest	(4		)	1,521			14,789			16,306
Net income attributable to HollyFrontier stockholders	$	57,407		$	41,739		$	(41,379	)	$	57,767
Comprehensive income attributable to HollyFrontier stockholders	$	68,062		$	41,690		$	(41,324	)	$	68,428

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	2,699,069		$	94,896		$	(79,327	)	$	2,714,638
Operating costs and expenses:
Cost of products sold		2,321,919			—			(73,764		)	2,248,155
Lower of cost or market inventory valuation adjustment		(138,473		)	—			—			(138,473		)
Operating expenses		226,835			29,212			(4,711		)	251,336
General and administrative		26,793			2,862			—			29,655
Depreciation and amortization		78,686			15,308			(3,571		)	90,423
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		3,169,844			47,382			(82,046		)	3,135,180
Income (loss) from operations		(470,775		)	47,514			2,719			(420,542		)
Other income (expense):
Earnings of equity method investments		25,096			3,623			(25,096		)	3,623
Interest expense		(339		)	(11,164		)	(2,221		)	(13,724		)
Other, net		127			1			—			128
		24,884			(7,540		)	(27,317		)	(9,973		)
Income (loss) before income taxes		(445,891		)	39,974			(24,598		)	(430,515		)
Income tax expense (benefit)		(38,098		)	53			—			(38,045		)
Net income (loss)		(407,793		)	39,921			(24,598		)	(392,470		)
Less net income (loss) attributable to noncontrolling interest		(9		)	2,355			14,552			16,898
Net income (loss) attributable to HollyFrontier stockholders		$	(407,784	)	$	37,566		$	(39,150	)	$	(409,368	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(397,364	)	$	37,510		$	(39,095	)	$	(398,949	)

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2017		HollyFrontier Corp. Before Consolidation of HEP				HEP Segment				Consolidations and Eliminations				Consolidated
	(In thousands)
Sales and other revenues		$	6,507,042			$	214,777			$	(182,472	)		$	6,539,347
Operating costs and expenses:						—
Cost of products sold		5,538,303				—				(143,706		)		5,394,597
Lower of cost or market inventory valuation adjustment		95,805				—				—				95,805
Operating expenses		593,396				66,586				(37,213		)		622,769
General and administrative		111,397				5,249				—				116,646
Depreciation and amortization		170,511				37,914				(7,103		)		201,322
Goodwill and asset impairment		19,247				—				—				19,247
Total operating costs and expenses		6,528,659			—	109,749			—	(188,022		)	—	6,450,386
Income (loss) from operations		(21,617		)		105,028				5,550				88,961
Other income (expense):
Earnings of equity method investments		47,537				5,893				(47,537		)		5,893
Interest expense		(23,977		)		(27,082		)		(4,749		)		(55,808		)
Loss on early extinguishment of debt		—				(12,225		)		—				(12,225		)
Other, net		24,514				163				—				24,677
		48,074				(33,251		)		(52,286		)		(37,463		)
Income before income taxes		26,457				71,777				(46,736		)		51,498
Income tax expense		14,973				234				—				15,207
Net income		11,484				71,543				(46,736		)		36,291
Less net income (loss) attributable to noncontrolling interest		(14		)		3,837				20,169				23,992
Net income attributable to HollyFrontier stockholders		$	11,498			$	67,706			$	(66,905	)		$	12,299
Comprehensive income attributable to HollyFrontier stockholders		$	19,671			$	67,695			$	(66,894	)		$	20,472

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	4,698,766		$	196,906		$	(162,310	)	$	4,733,362
Operating costs and expenses:
Cost of products sold		4,024,987			—			(151,669		)	3,873,318
Lower of cost or market inventory valuation adjustment		(194,594		)	—			—			(194,594		)
Operating expenses		455,919			56,968			(8,968		)	503,919
General and administrative		49,323			5,953			—			55,276
Depreciation and amortization		154,107			31,337			(7,141		)	178,303
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		5,143,826			94,258			(167,778		)	5,070,306
Income (loss) from operations		(445,060		)	102,648			5,468			(336,944		)
Other income (expense):
Earnings of equity method investments		50,893			6,388			(50,893		)	6,388
Interest income (expense)		369			(21,587		)	(4,518		)	(25,736		)
Loss on early extinguishment of debt		(8,718		)	—			—			(8,718		)
Other, net		200			(7		)	—			193
		42,744			(15,206		)	(55,411		)	(27,873		)
Income (loss) before income taxes		(402,316		)	87,442			(49,943		)	(364,817		)
Income tax expense (benefit)		(15,886		)	149			—			(15,737		)
Net income (loss)		(386,430		)	87,293			(49,943		)	(349,080		)
Less net income (loss) attributable to noncontrolling interest		(16		)	7,282			31,769			39,035
Net income (loss) attributable to HollyFrontier stockholders		$	(386,414	)	$	80,011		$	(81,712	)	$	(388,115	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(376,405	)	$	79,777		$	(81,479	)	$	(378,107	)

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	420,404		$	113,597		$	(60,603	)	$	473,398
Cash flows from investing activities
Additions to properties, plants and equipment	(116,526		)	—			—			(116,526		)
Additions to properties, plants and equipment – HEP	—			(20,524		)	—			(20,524		)
Purchase of PCLI, net of cash acquired	(870,627		)	—			—			(870,627		)
Purchases of marketable securities	(41,565		)	—			—			(41,565		)
Sales and maturities of marketable securities	465,716			—			—			465,716
Other, net	1,152			2,289			(424		)	3,017
	(561,850		)	(18,235		)	(424		)	(580,509		)
Cash flows from financing activities
Net borrowings under credit agreements	—			290,000			—			290,000
Redemption of senior notes - HEP	—			(309,750		)	—			(309,750		)
Net proceeds from issuance of common units - HEP	—			52,634			—			52,634
Dividends	(117,754		)	—			—			(117,754		)
Distributions to noncontrolling interest	—			(115,695		)	61,919			(53,776		)
Other, net	(4,059		)	131			(892		)	(4,820		)
	(121,813		)	(82,680		)	61,027			(143,466		)
Effect of exchange rates on cash flows	324			—			—			324
Cash and cash equivalents
Increase (decrease) for the period	(262,935		)	12,682			—			(250,253		)
Beginning of period	706,922			3,657			—			710,579
End of period	$	443,987		$	16,339		$	—		$	460,326

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	256,019		$	104,076		$	(49,769	)	$	310,326
Cash flows from investing activities:
Additions to properties, plants and equipment	(214,660		)	—			—			(214,660		)
Additions to properties, plants and equipment – HEP	—			(75,385		)	—			(75,385		)
Purchase of equity method investment - HEP	—			(42,500		)	—			(42,500		)
Purchases of marketable securities	(86,798		)	—			—			(86,798		)
Sales and maturities of marketable securities	149,599			—			—			149,599
Other, net	390			18			—			408
	(151,469		)	(117,867		)	—			(269,336		)
Cash flows from financing activities:
Net borrowings under credit agreements	—			74,000			—			74,000
Net proceeds from issuance of senior notes - HFC	246,690			—			—			246,690
Net proceeds from issuance of term loan	350,000			—			—			350,000
Net proceeds from issuance of common units - HEP	—			13,690			—			13,690
Repayment of financing obligation	—			(39,500		)	—			(39,500		)
Purchase of treasury stock	(133,430		)	—			—			(133,430		)
Dividends	(116,795		)	—			—			(116,795		)
Distributions to noncontrolling interest	—			(93,609		)	49,769			(43,840		)
Contribution from general partner	(53,304		)	53,304			—			—
Other, net	(2,123		)	(4,225		)	—			(6,348		)
	291,038			3,660			49,769			344,467
Cash and cash equivalents
Increase (decrease) for the period:	395,588			(10,131		)	—			385,457
Beginning of period	51,520			15,013			—			66,533
End of period	$	447,108		$	4,882		$	—		$	451,990

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Description of Business and Presentation of Financial Statements (Policy)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable

Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer’s financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for doubtful accounts based on our historical loss experience as well as specific accounts identified as high risk, which historically have been minimal. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible. Our allowance for doubtful accounts was $3.7 million and $2.3 million at June 30, 2017 and December 31, 2016, respectively.

Inventories

Inventories: Inventories related to our refining operations are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil and unfinished and finished refined products, or market. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation.

Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value.

Inventories of our PCLI operations are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value.

Goodwill and Long-lived Assets

Goodwill and Long-lived Assets: As of June 30, 2017, our goodwill balance was $2.2 billion, with goodwill assigned to our Refining, PCLI and HEP segments of $1.7 billion, $0.2 billion and $0.3 billion, respectively. During 2017, we recognized $184.2 million in goodwill as a result of our PCLI acquisition, all of which has been assigned to our PCLI segment. See Note 16 for additional information on our segments. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit. As of June 30, 2017, we have a cumulative goodwill impairment of $309.3 million, all of which relates to goodwill assigned to our Cheyenne Refinery reporting unit that was fully impaired in the second quarter of 2016.

Additionally, the carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our PCLI segment.

As of June 30, 2017, the fair value of our El Dorado reporting unit exceeded its carrying value by approximately 18%. A reasonable expectation exists that further deterioration in gross margins could result in an impairment of goodwill and the long-lived assets of the El Dorado reporting unit at some point in the future and such impairment charges could be material.

Our long-lived assets principally consist of our refining assets that are organized as refining asset groups and our PCLI business. The refinery asset groups also constitute our individual refinery reporting units that are used for testing and measuring goodwill impairments. Our long-lived assets are evaluated for impairment by identifying whether indicators of impairment exist and if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. As a result of our impairment testing in the second quarter of 2016, we determined that the carrying value of the long-lived assets of the Cheyenne Refinery had been impaired and recorded long-lived asset impairment charges of $344.8 million.

During the second quarter of 2017, we incurred long-lived asset impairment charges totaling $23.2 million, including $19.2 million of construction-in-progress consisting primarily of engineering work for a planned expansion of our Woods Cross refinery to add lubricants production capabilities. During the second quarter of 2017, we concluded to no longer pursue this expansion for various reasons including our recent acquisition of PCLI.

Revenue Recognition

Revenue Recognition: Refined product sales and related cost of sales are recognized when products are shipped and title has passed to customers. HEP recognizes pipeline transportation revenues as products are shipped through its pipelines. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported in cost of products sold.

For PCLI subsidiaries in Canada and in the U.S., a portion of sales are made to marketers and distributors under agreements which provide certain rights of return or provisions for PCLI to repurchase product in order to sell directly to end customers. Based on the terms of these agreements, PCLI defers revenues and cost of revenues on sales to Canadian marketers until the related products have been sold to end customers, and PCLI recognizes revenues for sales to its U.S. distributors when products are shipped to the distributors, net of allowances for returns related to inventories PCLI is expected to repurchase from the distributors to sell directly to end customers.

Foreign Currency Translation

Foreign Currency Translation: The functional currency of our PCLI operations consists of the respective local currency of its foreign operations, which includes the Canadian dollar, the euro and Chinese renminbi. Balance sheet accounts are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income.

In connection with our PCLI acquisition on February 1, 2017, we issued intercompany notes to initially fund certain of PCLI’s foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing from local currencies to the U.S. dollar are recorded as gains and losses as a component of other income (expense) in the income statement. Such adjustments are not recorded to the PCLI segment operations, but to corporate and other. See Note 16 for additional information on our segments.

Income Taxes

Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized.

For the six months ended June 30, 2017, we recorded an income tax expense of $15.2 million compared to an income tax benefit of $15.7 million for the six months ended June 30, 2016. This increase was due principally to pre-tax income during the six months ended June 30, 2017 compared to a pre-tax loss in the same period of 2016. Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were 29.5% and 4.3% for the six months ended June 30, 2017 and 2016, respectively.

Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter.

Inventory Repurchase Obligations

Inventory Repurchase Obligations:We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as an inventory repurchase obligation that is subsequently reversed when the inventory is repurchased. For the six months ended June 30,2017 and 2016, we received proceeds of $26.2 million and $29.8 million, respectively, and repaid $27.0 million and $30.2 million, respectively, under these sell / buy transactions.

New Accounting Pronouncements

New Accounting Pronouncements

Post-retirement Benefit Cost

In March 2017, Accounting Standard Update (“ASU”) 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost,” was issued amending current GAAP related to the income statement presentation of the components of net periodic post-retirement cost (credit). This standard has an effective date of January 1, 2018. We do not expect adoption of this standard to have a material impact on our financial condition, results of operations or cash flows.

Share-Based Compensation

In March 2016, ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” was issued which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this standard effective January 1, 2017. As the result of the adoption, on a prospective basis, we recognized zero and $0.1 million of excess tax expense from stock-based compensation as a discrete item in our provision for income taxes for the three and six months ended June 30, 2017. The new standard also requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the statement of cash flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change for the six months ended June 30, 2017 and 2016 was $0.3 million and zero, respectively. Finally, consistent with our existing policy, we have elected to account for forfeitures on an estimated basis.

Leases

In February 2016, ASU 2016-02, “Leases,” was issued requiring leases to be measured and recognized as a lease liability, with a corresponding right-of-use asset on the balance sheet. This standard has an effective date of January 1, 2019, and we are evaluating the impact of this standard.

Inventories Measurement

In July 2015, ASU 2015-11, “Inventory - Simplifying the Measurement of Inventory,” was issued requiring measurement of inventories, other than inventories accounted for using the LIFO method, to be measured at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business less reasonable, predictable cost of completion, disposal and transportation. We adopted this standard effective January 1, 2017 for our affected inventories, which is primarily our PCLI inventory valued on a FIFO basis, and it had no material effect on our financial condition, results of operations or cash flows.

Revenue Recognition

In May 2014, ASU 2014-09, “Revenue from Contracts with Customers” was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we anticipate using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are also evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition, results of operations or cash flows.

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Acquisition (Tables)

6 Months Ended

Jun. 30, 2017

Business Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following summarizes our preliminary value estimates of the PCLI assets and liabilities acquired:

	(in millions)
Cash and cash equivalents	$	21.6
Accounts receivable and other current assets	117.5
Inventories	213.0
Properties, plants and equipment	459.0
Goodwill	184.2
Intangibles and precious metals	119.0
Accounts payable and accrued liabilities	(89.0		)
Deferred income tax liabilities	(107.0		)
Other long-term liabilities	(14.0		)
Net assets acquired	$	904.3

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Financial Instruments, Owned, at Fair Value [Abstract]

Fair Value Measurements Of Asset and Liability Instruments

The carrying amounts of marketable securities and derivative instruments at June 30, 2017 and December 31, 2016 were as follows:

			Fair Value by Input Level
	Carrying Amount		Level 1		Level 2		Level 3
	(In thousands)
June 30, 2017
Assets:
NYMEX futures contracts	$	662	$	662	$	—	$	—
Commodity price swaps	7,863		—		7,863		—
Commodity forward contracts	1,447		—		1,447		—
HEP interest rate swaps	63		—		63		—
Total assets	$	10,035	$	662	$	9,373	$	—
Liabilities:
Commodity price swaps	$	20,631	$	—	$	20,631	$	—
Commodity forward contracts	1,218		—		1,218		—
Total liabilities	$	21,849	$	—	$	21,849	$	—

December 31, 2016
Assets:
Marketable securities	$	424,148	$	—	$	424,148	$	—
Commodity price swaps	14,563		—		14,358		205
Commodity forward contracts	5,905		.		5,905		—
HEP interest rate swaps	91		—		91		—
Total assets	$	444,707	$	—	$	444,502	$	205
Liabilities:
NYMEX futures contracts	$	1,975	$	1,975	$	—	$	—
Commodity price swaps	26,845		—		24,086		2,759
Commodity forward contracts	8,316		—		8,316		—
Foreign currency forward contracts	6,519		—		6,519		—
Total liabilities	$	43,655	$	1,975	$	38,921	$	2,759

Fair Value, Recurring Basis, Level 3 Roll Forward

The following table presents the changes in fair value of our Level 3 assets and liabilities (all related to derivative instruments) for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017		Six Months Ended June 30, 2017
Level 3 Instruments
	(In thousands)
Liability balance at beginning of period	$	—	$	(2,554	)
Change in fair value:
Recognized in other comprehensive income	—		1,625
Recognized in cost of products sold	—		(1		)
Settlement date fair value of contractual maturities:
Recognized in sales and other revenues	—		(165		)
Recognized in cost of products sold	—		1,095
Liability balance at end of period	$	—	$	—

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share

The following is a reconciliation of the denominators of the basic and diluted per share computations for net income (loss) attributable to HollyFrontier stockholders:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(In thousands, except per share data)
Net income (loss) attributable to HollyFrontier stockholders	$	57,767	$	(409,368	)	$	12,299	$	(388,115	)
Participating securities’ (restricted stock) share in earnings	373		216			752		432
Net income (loss) attributable to common shares	$	57,394	$	(409,584	)	$	11,547	$	(388,547	)
Average number of shares of common stock outstanding	176,147		175,865			176,141		176,301
Effect of dilutive variable restricted shares andperformance share units (1)	155		—			349		—
Average number of shares of common stock outstanding assuming dilution	176,302		175,865			176,490		176,301
Basic earnings (loss) per share	$	0.33	$	(2.33	)	$	0.07	$	(2.20	)
Diluted earnings (loss) per share	$	0.33	$	(2.33	)	$	0.07	$	(2.20	)
(1) Excludes anti-dilutive restricted and performance share units of:	140		191			133		183

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Share-based Compensation [Abstract]

Summary Of Restricted Stock Activity

A summary of restricted stock and restricted stock unit activity and changes during the six months ended June 30, 2017 is presented below:

Restricted Stock and Restricted Stock Units	Grants		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2017 (non-vested)	1,188,774		$	28.87
Granted (1)	733,270		28.20
Vesting (transfer/conversion to common stock)	(29,527	)	33.08
Forfeited	(39,209	)	30.58
Outstanding at June 30, 2017 (non-vested)	1,853,308		$	28.83	$	50,910

Summary Of Performance Share Unit Activity

A summary of performance share unit activity and changes during the six months ended June 30, 2017 is presented below:

Performance Share Units	Grants
Outstanding at January 1, 2017 (non-vested)	703,939
Granted	21,923
Forfeited	(86,117	)
Outstanding at June 30, 2017 (non-vested)	639,745

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Cash and Cash Equivalents and Investments in Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2017

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Available-For-Sale Securities

The following is a summary of our marketable securities as of December 31, 2016:

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value (Net Carrying Amount)
	(In thousands)
December 31, 2016
Commercial paper	$	7,687	$	1	$	(1	)	$	7,687
Corporate debt securities	4,001		—		—			4,001
State and political subdivisions debt securities	412,462		1		(3		)	412,460
Total marketable securities	$	424,150	$	2	$	(4	)	$	424,148

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Inventories (Tables)

6 Months Ended

Jun. 30, 2017

Inventory, Net [Abstract]

Inventory Components

Inventory consists of the following components:

	June 30, 2017			December 31, 2016
	(In thousands)
Crude oil	$	543,139		$	549,886
Other raw materials and unfinished products(1)	342,991			287,561
Finished products(2)	606,371			465,432
Lower of cost or market reserve	(428,323		)	(332,518		)
Process chemicals(3)	21,704			2,767
Repair and maintenance supplies and other (4)	106,091			162,548
Total inventory	$	1,191,973		$	1,135,676

(1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude.

(2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels.

(3) Process chemicals include additives and other chemicals.

(4) Includes RINs.

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Debt (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Carrying Amounts Of Long-Term Debt

The carrying amounts of long-term debt are as follows:

	June 30, 2017			December 31, 2016
	(In thousands)
HollyFrontier 5.875% Senior Notes
Principal	$	1,000,000		$	1,000,000
Unamortized discount and debt issuance costs	(8,788		)	(8,775		)
	991,212			991,225
HEP Credit Agreement	843,000			553,000
HEP 6% Senior Notes
Principal	400,000			400,000
Unamortized discount and debt issuance costs	(6,261		)	(6,607		)
	393,739			393,393
HEP 6.5% Senior Notes
Principal	—			300,000
Unamortized discount and debt issuance costs	—			(2,481		)
	—			297,519
Total HEP long-term debt	1,236,739			1,243,912
Total long-term debt	$	2,227,951		$	2,235,137

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The fair values of the senior notes are as follows:

	June 30, 2017		December 31, 2016
	(In thousands)
HollyFrontier senior notes	$	1,065,000	$	1,022,500
HEP senior notes	$	418,000	$	723,750

These fair values are based on estimates provided by a third party using market quotes for similar type instruments, a Level 2 input. See Note 4 for additional information on Level 2 inputs.

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Derivative Instruments And Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps and forward sales under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements				Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings
				Location	Amount			Location	Amount
	(In thousands)
Three Months Ended June 30, 2017
Change in fair value	$	1,378
Gain reclassified to earnings due to settlements	(325		)	Sales and other revenues	$	4,476
Amortization of discontinued hedges reclassified to earnings	270			Operating expenses	(4,421		)	Operating expenses	$	(18	)
Total	$	1,323			$	55			$	(18	)
Three Months Ended June 30, 2016
Change in fair value	$	(5,138	)
Loss reclassified to earnings due to settlements	21,910			Sales and other revenue	$	(15,897	)
Amortization of discontinued hedges reclassified to earnings	270			Operating expenses	(6,283		)	Operating expenses	$	—
Total	$	17,042			$	(22,180	)		$	—
Six Months Ended June 30, 2017
Change in fair value	$	4,715		Sales and other revenues	$	8,426
Loss reclassified to earnings due to settlements	49			Cost of products sold	(299		)
Amortization of discontinued hedge reclassified to earnings	540			Operating expenses	(8,716		)	Operating expenses	$	(18	)
Total	$	5,304			$	(589	)		$	(18	)
Six Months Ended June 30, 2016
Change in fair value	$	(17,059	)
Loss reclassified to earnings due to settlements	32,966			Sales and other revenues	$	(20,653	)
Amortization of discontinued hedge reclassified to earnings	540			Operating expenses	(12,853		)	Operating expenses	$	—
Total	$	16,447			$	(33,506	)		$	—

Schedule of Notional Amounts of Outstanding Derivatives Serving as Cash Flow Hedges

As of June 30, 2017, we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2017	2018	2019	2020	2021	Unit of Measure
Natural gas price swaps - long	12,000,000	4,800,000	1,800,000	1,800,000	1,800,000	1,800,000	MMBTU

Schedule of Realized Gain (Loss)

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Three Months Ended June 30,					Six Months Ended June 30,
Location of Gain (Loss) Recognized in Earnings	2017			2016		2017			2016
	(In thousands)
Cost of products sold	$	6,983		$	828	$	14,035		$	1,302
Operating expenses	(1,541		)	8,083		(5,763		)	4,614
Gain on foreign currency swap	—			—		24,545			—
Total	$	5,442		$	8,911	$	32,817		$	5,916

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of June 30, 2017, we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2017	2018	Unit of Measure
Crude price swaps (basis spread) - long	1,836,000	1,836,000	—	Barrels
Natural gas price swaps (basis spread) - long	5,154,000	5,154,000	—	MMBTU
Natural gas price swaps - long	4,800,000	4,800,000	—	MMBTU
Natural gas price swaps - short	4,800,000	4,800,000	—	MMBTU
NYMEX futures (WTI) - short	1,240,000	1,040,000	200,000	Barrels
Forward gasoline and diesel contracts - long	465,000	465,000	—	Barrels

Schedule of Interest Rate Hedges

The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP’s interest rate swaps under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements
				Location	Amount
	(In thousands)
Three Months Ended June 30, 2017
Interest rate swaps
Change in fair value	$	11
Gain reclassified to earnings due to settlements	(102		)	Interest expense	$	102
Total	$	(91	)		$	102
Three Months Ended June 30, 2016
Interest rate swaps
Change in fair value	$	(255	)
Loss reclassified to earnings due to settlements	113			Interest expense	$	(113	)
Total	$	(142	)		$	(113	)
Six Months Ended June 30, 2017
Interest rate swaps
Change in fair value	$	87
Gain reclassified to earnings due to settlements	(115		)	Interest expense	$	115
Total	$	(28	)		$	115
Six Months Ended June 30, 2016
Interest rate swaps
Change in fair value	$	(938	)
Loss reclassified to earnings due to settlements	343			Interest expense	$	(343	)
Total	$	(595	)		$	(343	)

Schedule of Fair Value and Balance Sheet Location of Outstanding Derivatives

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
June 30, 2017
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	10,018	$	—		$	10,018
Interest rate swap contracts	63		—		63		—		—			—
	$	63	$	—	$	63	$	10,018	$	—		$	10,018
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	10,613	$	(7,863	)	$	2,750
NYMEX futures contracts	662		—		662		—		—			—
Forward contracts	1,447		—		1,447		1,218		—			1,218
	$	2,109	$	—	$	2,109	$	11,831	$	(7,863	)	$	3,968
Total net balance					$	2,172						$	13,986
Balance sheet classification:							Accrued liabilities					$	13,308
							Other long-term liabilities					678
	Prepayment and other				$	2,172						$	13,986

	Derivatives in Net Asset Position							Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet			Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2016
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—		$	—	$	13,185	$	(431	)	$	12,754
Commodity forward contracts	—		—			—		2,978		—			2,978
Interest rate swap contracts	91		—			91		—		—			—
	$	91	$	—		$	91	$	16,163	$	(431	)	$	15,732
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	4,244	$	(756	)	$	3,488	$	12,903	$	(9,887	)	$	3,016
NYMEX futures contracts	—		—			—		1,975		—			1,975
Commodity forward contracts	5,905		—			5,905		5,338		—			5,338
Foreign currency forward contracts	—		—			—		6,519		—			6,519
	$	10,149	$	(756	)	$	9,393	$	26,735	$	(9,887	)	$	16,848
Total net balance						$	9,484						$	32,580
Balance sheet classification:	Prepayment and other					$	9,484	Accrued liabilities					$	32,580

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Equity (Tables)

6 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

Changes To Equity

Changes to equity during the six months ended June 30, 2017 are presented below:

	HollyFrontier Stockholders’ Equity			Noncontrolling Interest			Total Equity
	(In thousands)
Balance at December 31, 2016	$	4,681,394		$	620,591		$	5,301,985
Net income	12,299			23,992			36,291
Dividends	(117,754		)	—			(117,754		)
Distributions to noncontrolling interest holders	—			(53,776		)	(53,776		)
Other comprehensive income (loss), net of tax	8,173			(17		)	8,156
Allocated equity on HEP common unit issuances, net of tax	9,598			36,723			46,321
Equity awards issued in PCLI acquisition	5,056			—			5,056
Equity-based compensation	15,411			1,146			16,557
Purchase of treasury stock (1)	(274		)	—			(274		)
Purchase of HEP units for restricted grants	—			(35		)	(35		)
Other	—			(443		)	(443		)
Balance at June 30, 2017	$	4,613,903		$	628,181		$	5,242,084

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Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2017

Other Comprehensive Income (Loss) [Abstract]

Components And Allocated Tax Effects Of Other Comprehensive Income (Loss)

The components and allocated tax effects of other comprehensive income (loss) are as follows:

	Before-Tax			Tax Expense (Benefit)			After-Tax
	(In thousands)
Three Months Ended June 30, 2017
Net change in foreign currency translation adjustment	$	14,298		$	4,433		$	9,865
Net unrealized gain on hedging instruments	1,232			503			729
Other comprehensive income	15,530			4,936			10,594
Less other comprehensive loss attributable to noncontrolling interest	(67		)	—			(67		)
Other comprehensive income attributable to HollyFrontier stockholders	$	15,597		$	4,936		$	10,661
Three Months Ended June 30, 2016
Net unrealized gain on marketable securities	$	12		$	4		$	8
Net unrealized gain on hedging instruments	16,900			6,574			10,326
Other comprehensive income	16,912			6,578			10,334
Less other comprehensive loss attributable to noncontrolling interest	(85		)	—			(85		)
Other comprehensive income attributable to HollyFrontier stockholders	$	16,997		$	6,578		$	10,419
Six Months Ended June 30, 2017
Net change in foreign currency translation adjustment	$	7,585		$	2,654		$	4,931
Net unrealized loss on marketable securities	(4		)	(1		)	(3		)
Net unrealized gain on hedging instruments	5,276			2,048			3,228
Other comprehensive income	12,857			4,701			8,156
Less other comprehensive loss attributable to noncontrolling interest	(17		)	—			(17		)
Other comprehensive income attributable to HollyFrontier stockholders	$	12,874		$	4,701		$	8,173
Six Months Ended June 30, 2016
Net unrealized gain on marketable securities	$	113		$	44		$	69
Net unrealized gain on hedging instruments	15,852			6,273			9,579
Other comprehensive income	15,965			6,317			9,648
Less other comprehensive loss attributable to noncontrolling interest	(360		)	—			(360		)
Other comprehensive income attributable to HollyFrontier stockholders	$	16,325		$	6,317		$	10,008

Reclassifications from Other Comprehensive Income to Income Statement

The following table presents the income statement line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”):

AOCI Component	Gain (Loss) Reclassified From AOCI						Income Statement Line Item
	(In thousands)
	Three Months Ended June 30,
	2017			2016
Hedging instruments:
Commodity price swaps	$	4,476		$	(15,897	)	Sales and other revenues
	(4,421		)	(6,283		)	Operating expenses
Interest rate swaps	102			(113		)	Interest expense
	157			(22,293		)
	36			(8,601		)	Income tax expense (benefit)
	121			(13,692		)	Net of tax
	(65		)	69			Noncontrolling interest
	56			(13,623		)	Net of tax and noncontrolling interest
Total reclassifications for the period	$	56		$	(13,623	)
	Six Months Ended June 30,
	2017			2016
Marketable securities	$	—		$	(23	)	Interest income
	—			(9		)	Income tax benefit
	—			(14		)	Net of tax
Hedging instruments:
Commodity price swaps	8,426			(20,653		)	Sales and other revenues
	(299		)	—			Cost of products sold
	(8,716		)	(12,853		)	Operating expenses
Interest rate swaps	115			(343		)	Interest expense
	(474		)	(33,849		)
	(212		)	(13,019		)	Income tax benefit
	(262		)	(20,830		)	Net of tax
	(73		)	209			Noncontrolling interest
	(335		)	(20,621		)	Net of tax and noncontrolling interest
Total reclassifications for the period	$	(335	)	$	(20,635	)

Accumulated Other Comprehensive Loss In Equity

Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes:

	June 30, 2017			December 31, 2016
	(In thousands)
Foreign currency translation adjustment	$	4,931		$	—
Unrealized gain on post-retirement benefit obligations	20,055			20,055
Unrealized gain on marketable securities	—			3
Unrealized loss on hedging instruments, net of noncontrolling interest	(6,201		)	(9,446		)
Accumulated other comprehensive income	$	18,785		$	10,612

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Post-retirement Plan (Tables)

6 Months Ended

Jun. 30, 2017

Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]

Our purchase price allocation as of February 1, 2017 included estimates of the amount of pension benefit obligation and the pension assets to be transferred based on actuarial estimates and are as follows:

	February 1, 2017
	(in thousands)
Projected benefit obligation	$	50,827
Estimated pension assets	52,082
Estimated funded status	$	1,255

Schedule of Costs of Retirement Plans [Table Text Block]

The net periodic pension expense of these plans consisted of the following components:

	Three Months Ended June 30, 2017			February 1, 2017 to June 30, 2017
	(in thousands)
Service cost - benefit earned during the period	$	944		$	1,582
Interest cost on projected benefit obligations	518			868
Expected return on plan assets	(747		)	(1,252		)
Net periodic pension expense	$	715		$	1,198

Net Periodic Pension Expense

The net periodic benefit credit of this plan consisted of the following components:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands)
Service cost – benefit earned during the period	$	301		$	324		$	601		$	648
Interest cost on projected benefit obligations	169			197			339			394
Amortization of prior service credit	(870		)	(871		)	(1,740		)	(1,742		)
Net periodic post-retirement credit	$	(400	)	$	(350	)	$	(800	)	$	(700	)

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Schedule Of Segment Reporting Information

	Refining (1)			PCLI		HEP (2)		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended June 30, 2017
Sales and other revenues	$	3,141,137		$	309,566	$	109,143	$	15		$	(100,997	)	$	3,458,864
Operating expenses	$	245,265		$	52,652	$	34,097	$	1,322		$	(17,684	)	$	315,652
Depreciation and amortization	$	75,656		$	7,302	$	19,541	$	2,990		$	(207	)	$	105,282
Income (loss) from operations	$	86,603		$	17,511	$	52,890	$	(34,746	)	$	(573	)	$	121,685
Earnings of equity method investments	$	—		$	—	$	4,053	$	—		$	—		$	4,053
Capital expenditures	$	52,190		$	8,757	$	12,259	$	4,087		$	—		$	77,293
Three Months Ended June 30, 2016
Sales and other revenues	$	2,699,022		$	—	$	94,896	$	47		$	(79,327	)	$	2,714,638
Operating expenses	$	225,683		$	—	$	29,212	$	1,152		$	(4,711	)	$	251,336
Depreciation and amortization	$	72,023		$	—	$	15,308	$	3,299		$	(207	)	$	90,423
Income (loss) from operations	$	(436,214	)	$	—	$	47,514	$	(31,197	)	$	(645	)	$	(420,542	)
Earnings of equity method investments	$	—		$	—	$	3,623	$	—		$	—		$	3,623
Capital expenditures	$	105,875		$	—	$	33,201	$	1,396		$	—		$	140,472
Six Months Ended June 30, 2017
Sales and other revenues	$	6,003,213		$	511,506	$	214,777	$	42		$	(190,191	)	$	6,539,347
Operating expenses	$	502,380		$	88,681	$	66,586	$	2,335		$	(37,213	)	$	622,769
Depreciation and amortization	$	145,324		$	12,376	$	37,914	$	6,122		$	(414	)	$	201,322
Income (loss) from operations	$	36,348		$	29,905	$	105,028	$	(81,181	)	$	(1,139	)	$	88,961
Earnings of equity method investments	$	—		$	—	$	5,893	$	—		$	—		$	5,893
Capital expenditures	$	99,864		$	10,352	$	20,524	$	6,310		$	—		$	137,050
Six Months Ended June 30, 2016
Sales and other revenues	$	4,698,609		$	—	$	196,906	$	157		$	(162,310	)	$	4,733,362
Operating expenses	$	453,512		$	—	$	56,968	$	2,407		$	(8,968	)	$	503,919
Depreciation and amortization	$	140,901		$	—	$	31,337	$	6,479		$	(414	)	$	178,303
Income (loss) from operations	$	(380,281	)	$	—	$	102,648	$	(58,052	)	$	(1,259	)	$	(336,944	)
Earnings of equity method investments	$	—		$	—	$	6,388	$	—		$	—		$	6,388
Capital expenditures	$	210,582		$	—	$	75,385	$	4,078		$	—		$	290,045

June 30, 2017
Cash, cash equivalents and investments in marketable securities	$	2,311	$	68,346	$	16,339	$	373,330	$	—		$	460,326
Total assets	$	6,354,911	$	1,194,478	$	1,904,951	$	471,367	$	(282,672	)	$	9,643,035
Long-term debt	$	—	$	—	$	1,236,739	$	991,212	$	—		$	2,227,951
December 31, 2016
Cash, cash equivalents and investments in marketable securities	$	49	$	—	$	3,657	$	1,131,021	$	—		$	1,134,727
Total assets	$	6,513,806	$	—	$	1,920,487	$	1,306,169	$	(304,801	)	$	9,435,661
Long-term debt	$	—	$	—	$	1,243,912	$	991,225	$	—		$	2,235,137

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Additional Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	443,987	$	16,339	$	—		$	460,326
Accounts receivable, net	601,098		44,738		(43,486		)	602,350
Inventories	1,190,503		1,470		—			1,191,973
Income taxes receivable	1,428		—		—			1,428
Prepayments and other	42,199		1,652		(6,165		)	37,686
Total current assets	2,279,215		64,199		(49,651		)	2,293,763
Properties, plants and equipment, net	3,320,339		1,347,276		(224,057		)	4,443,558
Intangibles and other assets	2,411,622		493,476		616			2,905,714
Total assets	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,036,693	$	15,928	$	(43,486	)	$	1,009,135
Income tax payable	24,427		—		—			24,427
Accrued liabilities	161,371		31,680		(6,165		)	186,886
Total current liabilities	1,222,491		47,608		(49,651		)	1,220,448
Long-term debt	991,212		1,236,739		—			2,227,951
Liability to HEP	202,382		—		(202,382		)	—
Deferred income taxes	744,401		649		—			745,050
Other long-term liabilities	146,718		61,312		(528		)	207,502
Investment in HEP	151,055		—		(151,055		)	—
Equity – HollyFrontier	4,552,917		466,113		(405,127		)	4,613,903
Equity – noncontrolling interest	—		92,530		535,651			628,181
Total liabilities and equity	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035

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 taxes	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 Statement of Income and Comprehensive Income
Three Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	3,442,999		$	109,143		$	(93,278	)	$	3,458,864
Operating costs and expenses:
Cost of products sold	2,828,274			—			(74,834		)	2,753,440
Lower of cost or market inventory valuation adjustment	83,982			—			—			83,982
Operating expenses	299,239			34,097			(17,684		)	315,652
General and administrative	56,941			2,615			20			59,576
Depreciation and amortization	89,311			19,541			(3,570		)	105,282
Goodwill and asset impairment	19,247			—			—			19,247
Total operating costs and expenses	3,376,994			56,253			(96,068		)	3,337,179
Income from operations	66,005			52,890			2,790			121,685
Other income (expense):
Earnings of equity method investments	26,949			4,053			(26,949		)	4,053
Interest expense	(13,393		)	(13,645		)	(2,431		)	(29,469		)
Other, net	9,710			90			—			9,800
	23,266			(9,502		)	(29,380		)	(15,616		)
Income before income taxes	89,271			43,388			(26,590		)	106,069
Income tax expense	31,868			128			—			31,996
Net income	57,403			43,260			(26,590		)	74,073
Less net income (loss) attributable to noncontrolling interest	(4		)	1,521			14,789			16,306
Net income attributable to HollyFrontier stockholders	$	57,407		$	41,739		$	(41,379	)	$	57,767
Comprehensive income attributable to HollyFrontier stockholders	$	68,062		$	41,690		$	(41,324	)	$	68,428

Condensed Consolidating Statement of Income and Comprehensive Income

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	3,442,999		$	109,143		$	(93,278	)	$	3,458,864
Operating costs and expenses:
Cost of products sold	2,828,274			—			(74,834		)	2,753,440
Lower of cost or market inventory valuation adjustment	83,982			—			—			83,982
Operating expenses	299,239			34,097			(17,684		)	315,652
General and administrative	56,941			2,615			20			59,576
Depreciation and amortization	89,311			19,541			(3,570		)	105,282
Goodwill and asset impairment	19,247			—			—			19,247
Total operating costs and expenses	3,376,994			56,253			(96,068		)	3,337,179
Income from operations	66,005			52,890			2,790			121,685
Other income (expense):
Earnings of equity method investments	26,949			4,053			(26,949		)	4,053
Interest expense	(13,393		)	(13,645		)	(2,431		)	(29,469		)
Other, net	9,710			90			—			9,800
	23,266			(9,502		)	(29,380		)	(15,616		)
Income before income taxes	89,271			43,388			(26,590		)	106,069
Income tax expense	31,868			128			—			31,996
Net income	57,403			43,260			(26,590		)	74,073
Less net income (loss) attributable to noncontrolling interest	(4		)	1,521			14,789			16,306
Net income attributable to HollyFrontier stockholders	$	57,407		$	41,739		$	(41,379	)	$	57,767
Comprehensive income attributable to HollyFrontier stockholders	$	68,062		$	41,690		$	(41,324	)	$	68,428

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	2,699,069		$	94,896		$	(79,327	)	$	2,714,638
Operating costs and expenses:
Cost of products sold		2,321,919			—			(73,764		)	2,248,155
Lower of cost or market inventory valuation adjustment		(138,473		)	—			—			(138,473		)
Operating expenses		226,835			29,212			(4,711		)	251,336
General and administrative		26,793			2,862			—			29,655
Depreciation and amortization		78,686			15,308			(3,571		)	90,423
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		3,169,844			47,382			(82,046		)	3,135,180
Income (loss) from operations		(470,775		)	47,514			2,719			(420,542		)
Other income (expense):
Earnings of equity method investments		25,096			3,623			(25,096		)	3,623
Interest expense		(339		)	(11,164		)	(2,221		)	(13,724		)
Other, net		127			1			—			128
		24,884			(7,540		)	(27,317		)	(9,973		)
Income (loss) before income taxes		(445,891		)	39,974			(24,598		)	(430,515		)
Income tax expense (benefit)		(38,098		)	53			—			(38,045		)
Net income (loss)		(407,793		)	39,921			(24,598		)	(392,470		)
Less net income (loss) attributable to noncontrolling interest		(9		)	2,355			14,552			16,898
Net income (loss) attributable to HollyFrontier stockholders		$	(407,784	)	$	37,566		$	(39,150	)	$	(409,368	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(397,364	)	$	37,510		$	(39,095	)	$	(398,949	)

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2017		HollyFrontier Corp. Before Consolidation of HEP				HEP Segment				Consolidations and Eliminations				Consolidated
	(In thousands)
Sales and other revenues		$	6,507,042			$	214,777			$	(182,472	)		$	6,539,347
Operating costs and expenses:						—
Cost of products sold		5,538,303				—				(143,706		)		5,394,597
Lower of cost or market inventory valuation adjustment		95,805				—				—				95,805
Operating expenses		593,396				66,586				(37,213		)		622,769
General and administrative		111,397				5,249				—				116,646
Depreciation and amortization		170,511				37,914				(7,103		)		201,322
Goodwill and asset impairment		19,247				—				—				19,247
Total operating costs and expenses		6,528,659			—	109,749			—	(188,022		)	—	6,450,386
Income (loss) from operations		(21,617		)		105,028				5,550				88,961
Other income (expense):
Earnings of equity method investments		47,537				5,893				(47,537		)		5,893
Interest expense		(23,977		)		(27,082		)		(4,749		)		(55,808		)
Loss on early extinguishment of debt		—				(12,225		)		—				(12,225		)
Other, net		24,514				163				—				24,677
		48,074				(33,251		)		(52,286		)		(37,463		)
Income before income taxes		26,457				71,777				(46,736		)		51,498
Income tax expense		14,973				234				—				15,207
Net income		11,484				71,543				(46,736		)		36,291
Less net income (loss) attributable to noncontrolling interest		(14		)		3,837				20,169				23,992
Net income attributable to HollyFrontier stockholders		$	11,498			$	67,706			$	(66,905	)		$	12,299
Comprehensive income attributable to HollyFrontier stockholders		$	19,671			$	67,695			$	(66,894	)		$	20,472

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	4,698,766		$	196,906		$	(162,310	)	$	4,733,362
Operating costs and expenses:
Cost of products sold		4,024,987			—			(151,669		)	3,873,318
Lower of cost or market inventory valuation adjustment		(194,594		)	—			—			(194,594		)
Operating expenses		455,919			56,968			(8,968		)	503,919
General and administrative		49,323			5,953			—			55,276
Depreciation and amortization		154,107			31,337			(7,141		)	178,303
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		5,143,826			94,258			(167,778		)	5,070,306
Income (loss) from operations		(445,060		)	102,648			5,468			(336,944		)
Other income (expense):
Earnings of equity method investments		50,893			6,388			(50,893		)	6,388
Interest income (expense)		369			(21,587		)	(4,518		)	(25,736		)
Loss on early extinguishment of debt		(8,718		)	—			—			(8,718		)
Other, net		200			(7		)	—			193
		42,744			(15,206		)	(55,411		)	(27,873		)
Income (loss) before income taxes		(402,316		)	87,442			(49,943		)	(364,817		)
Income tax expense (benefit)		(15,886		)	149			—			(15,737		)
Net income (loss)		(386,430		)	87,293			(49,943		)	(349,080		)
Less net income (loss) attributable to noncontrolling interest		(16		)	7,282			31,769			39,035
Net income (loss) attributable to HollyFrontier stockholders		$	(386,414	)	$	80,011		$	(81,712	)	$	(388,115	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(376,405	)	$	79,777		$	(81,479	)	$	(378,107	)

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	420,404		$	113,597		$	(60,603	)	$	473,398
Cash flows from investing activities
Additions to properties, plants and equipment	(116,526		)	—			—			(116,526		)
Additions to properties, plants and equipment – HEP	—			(20,524		)	—			(20,524		)
Purchase of PCLI, net of cash acquired	(870,627		)	—			—			(870,627		)
Purchases of marketable securities	(41,565		)	—			—			(41,565		)
Sales and maturities of marketable securities	465,716			—			—			465,716
Other, net	1,152			2,289			(424		)	3,017
	(561,850		)	(18,235		)	(424		)	(580,509		)
Cash flows from financing activities
Net borrowings under credit agreements	—			290,000			—			290,000
Redemption of senior notes - HEP	—			(309,750		)	—			(309,750		)
Net proceeds from issuance of common units - HEP	—			52,634			—			52,634
Dividends	(117,754		)	—			—			(117,754		)
Distributions to noncontrolling interest	—			(115,695		)	61,919			(53,776		)
Other, net	(4,059		)	131			(892		)	(4,820		)
	(121,813		)	(82,680		)	61,027			(143,466		)
Effect of exchange rates on cash flows	324			—			—			324
Cash and cash equivalents
Increase (decrease) for the period	(262,935		)	12,682			—			(250,253		)
Beginning of period	706,922			3,657			—			710,579
End of period	$	443,987		$	16,339		$	—		$	460,326

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	256,019		$	104,076		$	(49,769	)	$	310,326
Cash flows from investing activities:
Additions to properties, plants and equipment	(214,660		)	—			—			(214,660		)
Additions to properties, plants and equipment – HEP	—			(75,385		)	—			(75,385		)
Purchase of equity method investment - HEP	—			(42,500		)	—			(42,500		)
Purchases of marketable securities	(86,798		)	—			—			(86,798		)
Sales and maturities of marketable securities	149,599			—			—			149,599
Other, net	390			18			—			408
	(151,469		)	(117,867		)	—			(269,336		)
Cash flows from financing activities:
Net borrowings under credit agreements	—			74,000			—			74,000
Net proceeds from issuance of senior notes - HFC	246,690			—			—			246,690
Net proceeds from issuance of term loan	350,000			—			—			350,000
Net proceeds from issuance of common units - HEP	—			13,690			—			13,690
Repayment of financing obligation	—			(39,500		)	—			(39,500		)
Purchase of treasury stock	(133,430		)	—			—			(133,430		)
Dividends	(116,795		)	—			—			(116,795		)
Distributions to noncontrolling interest	—			(93,609		)	49,769			(43,840		)
Contribution from general partner	(53,304		)	53,304			—			—
Other, net	(2,123		)	(4,225		)	—			(6,348		)
	291,038			3,660			49,769			344,467
Cash and cash equivalents
Increase (decrease) for the period:	395,588			(10,131		)	—			385,457
Beginning of period	51,520			15,013			—			66,533
End of period	$	447,108		$	4,882		$	—		$	451,990

Additional Financial Information

Additional Financial Information

Borrowings pursuant to the HollyFrontier Credit Agreement are recourse to HollyFrontier, but not HEP. Furthermore, borrowings under the HEP Credit Agreement are recourse to HEP, but not to the assets of HFC with the exception of HEP Logistics Holdings, L.P., HEP’s general partner. Other than its investment in HEP, the assets of the general partner are insignificant.

The following condensed financial information is provided for HollyFrontier Corporation (on a standalone basis, before consolidation of HEP), and for HEP and its consolidated subsidiaries (on a standalone basis, exclusive of HFC). Due to certain basis differences, our reported amounts for HEP may not agree to amounts reported in HEP’s periodic public filings.

Condensed Consolidating Balance Sheet
June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	443,987	$	16,339	$	—		$	460,326
Accounts receivable, net	601,098		44,738		(43,486		)	602,350
Inventories	1,190,503		1,470		—			1,191,973
Income taxes receivable	1,428		—		—			1,428
Prepayments and other	42,199		1,652		(6,165		)	37,686
Total current assets	2,279,215		64,199		(49,651		)	2,293,763
Properties, plants and equipment, net	3,320,339		1,347,276		(224,057		)	4,443,558
Intangibles and other assets	2,411,622		493,476		616			2,905,714
Total assets	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,036,693	$	15,928	$	(43,486	)	$	1,009,135
Income tax payable	24,427		—		—			24,427
Accrued liabilities	161,371		31,680		(6,165		)	186,886
Total current liabilities	1,222,491		47,608		(49,651		)	1,220,448
Long-term debt	991,212		1,236,739		—			2,227,951
Liability to HEP	202,382		—		(202,382		)	—
Deferred income taxes	744,401		649		—			745,050
Other long-term liabilities	146,718		61,312		(528		)	207,502
Investment in HEP	151,055		—		(151,055		)	—
Equity – HollyFrontier	4,552,917		466,113		(405,127		)	4,613,903
Equity – noncontrolling interest	—		92,530		535,651			628,181
Total liabilities and equity	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035

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 taxes	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 Statement of Income and Comprehensive Income
Three Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	3,442,999		$	109,143		$	(93,278	)	$	3,458,864
Operating costs and expenses:
Cost of products sold	2,828,274			—			(74,834		)	2,753,440
Lower of cost or market inventory valuation adjustment	83,982			—			—			83,982
Operating expenses	299,239			34,097			(17,684		)	315,652
General and administrative	56,941			2,615			20			59,576
Depreciation and amortization	89,311			19,541			(3,570		)	105,282
Goodwill and asset impairment	19,247			—			—			19,247
Total operating costs and expenses	3,376,994			56,253			(96,068		)	3,337,179
Income from operations	66,005			52,890			2,790			121,685
Other income (expense):
Earnings of equity method investments	26,949			4,053			(26,949		)	4,053
Interest expense	(13,393		)	(13,645		)	(2,431		)	(29,469		)
Other, net	9,710			90			—			9,800
	23,266			(9,502		)	(29,380		)	(15,616		)
Income before income taxes	89,271			43,388			(26,590		)	106,069
Income tax expense	31,868			128			—			31,996
Net income	57,403			43,260			(26,590		)	74,073
Less net income (loss) attributable to noncontrolling interest	(4		)	1,521			14,789			16,306
Net income attributable to HollyFrontier stockholders	$	57,407		$	41,739		$	(41,379	)	$	57,767
Comprehensive income attributable to HollyFrontier stockholders	$	68,062		$	41,690		$	(41,324	)	$	68,428

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	2,699,069		$	94,896		$	(79,327	)	$	2,714,638
Operating costs and expenses:
Cost of products sold		2,321,919			—			(73,764		)	2,248,155
Lower of cost or market inventory valuation adjustment		(138,473		)	—			—			(138,473		)
Operating expenses		226,835			29,212			(4,711		)	251,336
General and administrative		26,793			2,862			—			29,655
Depreciation and amortization		78,686			15,308			(3,571		)	90,423
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		3,169,844			47,382			(82,046		)	3,135,180
Income (loss) from operations		(470,775		)	47,514			2,719			(420,542		)
Other income (expense):
Earnings of equity method investments		25,096			3,623			(25,096		)	3,623
Interest expense		(339		)	(11,164		)	(2,221		)	(13,724		)
Other, net		127			1			—			128
		24,884			(7,540		)	(27,317		)	(9,973		)
Income (loss) before income taxes		(445,891		)	39,974			(24,598		)	(430,515		)
Income tax expense (benefit)		(38,098		)	53			—			(38,045		)
Net income (loss)		(407,793		)	39,921			(24,598		)	(392,470		)
Less net income (loss) attributable to noncontrolling interest		(9		)	2,355			14,552			16,898
Net income (loss) attributable to HollyFrontier stockholders		$	(407,784	)	$	37,566		$	(39,150	)	$	(409,368	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(397,364	)	$	37,510		$	(39,095	)	$	(398,949	)

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2017		HollyFrontier Corp. Before Consolidation of HEP				HEP Segment				Consolidations and Eliminations				Consolidated
	(In thousands)
Sales and other revenues		$	6,507,042			$	214,777			$	(182,472	)		$	6,539,347
Operating costs and expenses:						—
Cost of products sold		5,538,303				—				(143,706		)		5,394,597
Lower of cost or market inventory valuation adjustment		95,805				—				—				95,805
Operating expenses		593,396				66,586				(37,213		)		622,769
General and administrative		111,397				5,249				—				116,646
Depreciation and amortization		170,511				37,914				(7,103		)		201,322
Goodwill and asset impairment		19,247				—				—				19,247
Total operating costs and expenses		6,528,659			—	109,749			—	(188,022		)	—	6,450,386
Income (loss) from operations		(21,617		)		105,028				5,550				88,961
Other income (expense):
Earnings of equity method investments		47,537				5,893				(47,537		)		5,893
Interest expense		(23,977		)		(27,082		)		(4,749		)		(55,808		)
Loss on early extinguishment of debt		—				(12,225		)		—				(12,225		)
Other, net		24,514				163				—				24,677
		48,074				(33,251		)		(52,286		)		(37,463		)
Income before income taxes		26,457				71,777				(46,736		)		51,498
Income tax expense		14,973				234				—				15,207
Net income		11,484				71,543				(46,736		)		36,291
Less net income (loss) attributable to noncontrolling interest		(14		)		3,837				20,169				23,992
Net income attributable to HollyFrontier stockholders		$	11,498			$	67,706			$	(66,905	)		$	12,299
Comprehensive income attributable to HollyFrontier stockholders		$	19,671			$	67,695			$	(66,894	)		$	20,472

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	4,698,766		$	196,906		$	(162,310	)	$	4,733,362
Operating costs and expenses:
Cost of products sold		4,024,987			—			(151,669		)	3,873,318
Lower of cost or market inventory valuation adjustment		(194,594		)	—			—			(194,594		)
Operating expenses		455,919			56,968			(8,968		)	503,919
General and administrative		49,323			5,953			—			55,276
Depreciation and amortization		154,107			31,337			(7,141		)	178,303
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		5,143,826			94,258			(167,778		)	5,070,306
Income (loss) from operations		(445,060		)	102,648			5,468			(336,944		)
Other income (expense):
Earnings of equity method investments		50,893			6,388			(50,893		)	6,388
Interest income (expense)		369			(21,587		)	(4,518		)	(25,736		)
Loss on early extinguishment of debt		(8,718		)	—			—			(8,718		)
Other, net		200			(7		)	—			193
		42,744			(15,206		)	(55,411		)	(27,873		)
Income (loss) before income taxes		(402,316		)	87,442			(49,943		)	(364,817		)
Income tax expense (benefit)		(15,886		)	149			—			(15,737		)
Net income (loss)		(386,430		)	87,293			(49,943		)	(349,080		)
Less net income (loss) attributable to noncontrolling interest		(16		)	7,282			31,769			39,035
Net income (loss) attributable to HollyFrontier stockholders		$	(386,414	)	$	80,011		$	(81,712	)	$	(388,115	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(376,405	)	$	79,777		$	(81,479	)	$	(378,107	)

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	420,404		$	113,597		$	(60,603	)	$	473,398
Cash flows from investing activities
Additions to properties, plants and equipment	(116,526		)	—			—			(116,526		)
Additions to properties, plants and equipment – HEP	—			(20,524		)	—			(20,524		)
Purchase of PCLI, net of cash acquired	(870,627		)	—			—			(870,627		)
Purchases of marketable securities	(41,565		)	—			—			(41,565		)
Sales and maturities of marketable securities	465,716			—			—			465,716
Other, net	1,152			2,289			(424		)	3,017
	(561,850		)	(18,235		)	(424		)	(580,509		)
Cash flows from financing activities
Net borrowings under credit agreements	—			290,000			—			290,000
Redemption of senior notes - HEP	—			(309,750		)	—			(309,750		)
Net proceeds from issuance of common units - HEP	—			52,634			—			52,634
Dividends	(117,754		)	—			—			(117,754		)
Distributions to noncontrolling interest	—			(115,695		)	61,919			(53,776		)
Other, net	(4,059		)	131			(892		)	(4,820		)
	(121,813		)	(82,680		)	61,027			(143,466		)
Effect of exchange rates on cash flows	324			—			—			324
Cash and cash equivalents
Increase (decrease) for the period	(262,935		)	12,682			—			(250,253		)
Beginning of period	706,922			3,657			—			710,579
End of period	$	443,987		$	16,339		$	—		$	460,326

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	256,019		$	104,076		$	(49,769	)	$	310,326
Cash flows from investing activities:
Additions to properties, plants and equipment	(214,660		)	—			—			(214,660		)
Additions to properties, plants and equipment – HEP	—			(75,385		)	—			(75,385		)
Purchase of equity method investment - HEP	—			(42,500		)	—			(42,500		)
Purchases of marketable securities	(86,798		)	—			—			(86,798		)
Sales and maturities of marketable securities	149,599			—			—			149,599
Other, net	390			18			—			408
	(151,469		)	(117,867		)	—			(269,336		)
Cash flows from financing activities:
Net borrowings under credit agreements	—			74,000			—			74,000
Net proceeds from issuance of senior notes - HFC	246,690			—			—			246,690
Net proceeds from issuance of term loan	350,000			—			—			350,000
Net proceeds from issuance of common units - HEP	—			13,690			—			13,690
Repayment of financing obligation	—			(39,500		)	—			(39,500		)
Purchase of treasury stock	(133,430		)	—			—			(133,430		)
Dividends	(116,795		)	—			—			(116,795		)
Distributions to noncontrolling interest	—			(93,609		)	49,769			(43,840		)
Contribution from general partner	(53,304		)	53,304			—			—
Other, net	(2,123		)	(4,225		)	—			(6,348		)
	291,038			3,660			49,769			344,467
Cash and cash equivalents
Increase (decrease) for the period:	395,588			(10,131		)	—			385,457
Beginning of period	51,520			15,013			—			66,533
End of period	$	447,108		$	4,882		$	—		$	451,990

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Description of Business and Presentation of Financial Statements (Details) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($) Petroleum_Refineries mi	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Ownership Interest By Project Type [Line Items]
Proceeds and Excess Tax Benefit from Share-based Compensation	$ 0			$ 100
Sales and other revenues	3,458,864	$ 2,714,638		6,539,347	$ 4,733,362
Net income (loss)	74,073	(392,470)		36,291	(349,080)
Purchase of treasury stock				$ 274
Number of refineries located in Tulsa, Oklahoma | Petroleum_Refineries				2
Refinery Distance From Main City [Miles] | mi				65
Allowance for doubtful accounts reserve	3,700		$ 3,700	$ 3,700		$ 2,300
Proceeds from inventory repurchase agreements				26,200	29,800
Payments under inventory repurchase agreements				(27,000)	(30,200)
Goodwill	2,205,490		2,205,490	2,205,490		2,022,463
Goodwill	$ 184,200		$ 184,200	$ 184,200
Goodwill, Impaired, Accumulated Impairment Loss		309,300			309,300
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount	18.00%		18.00%	18.00%
Income Tax Expense (Benefit)	$ 31,996	(38,045)		$ 15,207	$ (15,737)
Effective income tax rate				29.50%	4.30%
Asset Impairment Charges	19,247			$ 19,247	$ 344,800
Impairment of Long-Lived Assets Held-for-use	$ 23,200
HEP [Member]
Ownership Interest By Project Type [Line Items]
Percentage of ownership in variable interest entity				36.00%
Percentage of general partner interest	2.00%			2.00%
Goodwill	$ 288,991		$ 288,991	$ 288,991		$ 288,991
2911 Petroleum Refining [Member]
Ownership Interest By Project Type [Line Items]
Sales and other revenues	3,141,137	2,699,022		6,003,213	4,698,609
Goodwill	1,700,000		1,700,000	1,700,000
HEP [Member]
Ownership Interest By Project Type [Line Items]
Sales and other revenues	109,143	94,896		214,777	196,906
Goodwill	300,000		300,000	300,000
Other Segments [Member]
Ownership Interest By Project Type [Line Items]
Sales and other revenues	309,566	$ 0	511,500	511,506	0
Net income (loss)	12,600		21,100
Goodwill	200,000		$ 200,000	200,000
Parent [Member]
Ownership Interest By Project Type [Line Items]
Net income (loss)				12,299
Purchase of treasury stock				$ 274	$ 0
Operating Expense [Member]
Ownership Interest By Project Type [Line Items]
Impairment of Long-Lived Assets Held-for-use	19,200
Reduced Depreciation [Member]
Ownership Interest By Project Type [Line Items]
Impairment of Long-Lived Assets Held-for-use	$ 4,000

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Acquisition (Details) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Sales and other revenues	$ 3,458,864	$ 2,714,638		$ 6,539,347	$ 4,733,362
Net income (loss)	74,073	(392,470)		36,291	(349,080)
Cash and Cash Equivalents	21,600		$ 21,600	21,600
Accounts receivable and other current assets	117,500		117,500	117,500
Inventories	213,000		213,000	213,000
Properties, plants and equipment	459,000		459,000	459,000
Goodwill	184,200		184,200	184,200
Intangibles and precious metals	119,000		119,000	119,000
Accounts payable and accrued liabilities	(89,000)		(89,000)	(89,000)
Deferred Income Tax Liability	(107,000)		(107,000)	(107,000)
Other Long-term Liabilities	(14,000)		(14,000)	(14,000)
Net assets acquired	904,300		904,300	904,300
Payments to Acquire Businesses, Net of Cash Acquired	862,000
Purchase Price Canadian Dollars	1,125,000
Business Acquisition, Transaction Costs		19,300			19,300
Working capital settlement	30,600		30,600	30,600
Business combination, additional liability	6,500		6,500	6,500
Stock Issued in Acquisition	5,100		5,100	5,100
Finite-lived Intangible Assets Acquired				98,200
Other Segments [Member]
Business Acquisition [Line Items]
Sales and other revenues	309,566	$ 0	511,500	$ 511,506	$ 0
Net income (loss)	$ 12,600		$ 21,100

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Holly Energy Partners (Details) $ in Thousands	3 Months Ended			6 Months Ended		14 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Jun. 30, 2017 USD ($) Customers mi shares	Jun. 30, 2016 USD ($) mi bbl	Jun. 30, 2017 USD ($) shares	Dec. 31, 2016 USD ($)
Holly Energy Partners Entity [Line Items]
Equity Method Investment, Ownership Percentage	50.00%			50.00%		50.00%
Equity Method Investments	$ 0			$ 0		$ 0	$ 0
Repayment of financing obligation			$ (39,500)		$ (39,500)
Extinguishment of Debt, Amount					30,800
Loss on early extinguishment of debt	0	$ 0	$ (8,700)	$ (12,225)	$ (8,718)
Length of Pipeline | mi				87
Production barrel capacity per day | bbl					80,000
Common Unit Issuance Program				$ 200,000
General Partners' Contributed Capital	1,100			$ 1,100		$ 1,100
Common Stock, Shares, Issued | shares				1,538,452		2,241,907
Proceeds from Issuance of Common Stock	$ 52,400
Proceeds from issuance of common units - HEP				$ 52,634	$ 13,690	$ 77,100
HEP [Member]
Holly Energy Partners Entity [Line Items]
Percentage of ownership in variable interest entity				36.00%
Percentage of general partner interest	2.00%			2.00%
HEP number of significant customers | Customers				2
HFC Percentage of HEP Revenues				85.00%
Purchase of equity method investment - HEP				$ 0	42,500
Repayment of financing obligation				0	$ (39,500)
Long-term Purchase Commitment with HEP, Amount				$ 321,600
UNEV Pipeline [Member]
Holly Energy Partners Entity [Line Items]
Equity Method Investment, Ownership Percentage	75.00%			75.00%		75.00%
Cheyenne [Member]
Holly Energy Partners Entity [Line Items]
Equity Method Investment, Ownership Percentage	50.00%			50.00%		50.00%
SLC Pipeline [Member]
Holly Energy Partners Entity [Line Items]
Equity Method Investment, Ownership Percentage	25.00%			25.00%		25.00%
Osage Pipeline [Member] [Member]
Holly Energy Partners Entity [Line Items]
Equity Method Investment, Ownership Percentage	50.00%	50.00%		50.00%	50.00%	50.00%
Ownership Interest in Equity Method Investment		50.00%
Length of Pipeline | mi					135
Deferred Credit, Noncurrent		$ 38,900			$ 38,900
Frontier Pipeline [Member]
Holly Energy Partners Entity [Line Items]
Equity Method Investment, Ownership Percentage	50.00%			50.00%		50.00%

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Fair Value Measurements (Estimated Fair Values Of Debt Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Level 1 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	$ 662	$ 0
Financial Liabilities Fair Value Disclosure	0	1,975
Level 2 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	9,373	444,502
Financial Liabilities Fair Value Disclosure	21,849	38,921
Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure		205
Financial Liabilities Fair Value Disclosure		2,759
Marketable securities | Level 2 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure		424,148
Nymex Futures Contracts [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	662
Financial Liabilities Fair Value Disclosure		1,975
Nymex Futures Contracts [Member] | Level 1 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	662
Financial Liabilities Fair Value Disclosure		1,975
Nymex Futures Contracts [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	0
Financial Liabilities Fair Value Disclosure		0
Commodity Contract [Member] | Level 1 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure		0
Commodity Contract [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	7,863	14,358
Financial Liabilities Fair Value Disclosure	20,631	24,086
Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure		205
Financial Liabilities Fair Value Disclosure		2,759
Forward Contracts [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	1,447	5,905
Financial Liabilities Fair Value Disclosure	1,218	8,316
Interest Rate Swap [Member] | HEP [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	63
Interest Rate Swap [Member] | Level 2 [Member] | HEP [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	63	91
Foreign Exchange Forward [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Financial Liabilities Fair Value Disclosure		6,519
Reported Value Measurement [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	10,035	444,707
Financial Liabilities Fair Value Disclosure	21,849	43,655
Reported Value Measurement [Member] | Marketable securities
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure		424,148
Reported Value Measurement [Member] | Commodity Contract [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	7,863	14,563
Financial Liabilities Fair Value Disclosure	20,631	26,845
Reported Value Measurement [Member] | Forward Contracts [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure	1,447	5,905
Financial Liabilities Fair Value Disclosure	$ 1,218	8,316
Reported Value Measurement [Member] | Interest Rate Swap [Member] | HEP [Member]
Debt Instrument [Line Items]
Financial Assets Fair Value Disclosure		91
Reported Value Measurement [Member] | Foreign Exchange Forward [Member]
Debt Instrument [Line Items]
Financial Liabilities Fair Value Disclosure		$ 6,519

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Fair Value Measurements Level 3 Roll Forward (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair Value Measurements, Recurring Basis, Level 3 Rollforward
Liability Balance at Beginning of Period		$ 0	$ 0	$ (2,554)
Liability Balance at End of Period		0	$ 0	$ (2,554)
Cost of Sales [Member]
Fair Value Measurements, Recurring Basis, Level 3 Rollforward
Change in fair value recognized in other comprehensive income	$ 0	1,095
Sales [Member]
Fair Value Measurements, Recurring Basis, Level 3 Rollforward
Change in fair value recognized in other comprehensive income	0	(165)
Changes Measurement [Member]
Fair Value Measurements, Recurring Basis, Level 3 Rollforward
Change in fair value recognized in other comprehensive income	0	1,625
Changes Measurement [Member] | Cost of Sales [Member]
Fair Value Measurements, Recurring Basis, Level 3 Rollforward
Change in fair value recognized in other comprehensive income	$ 0	$ (1)

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Earnings Per Share (Schedule Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income (loss) attributable to HollyFrontier stockholders	$ 57,767	$ (409,368)	$ 12,299	$ (388,115)
Participating securities’ share in earnings	373	216	752	432
Net income(loss) attributable to common shares	$ 57,394	$ (409,584)	$ 11,547	$ (388,547)
Average number of shares of common stock outstanding	176,147	175,865	176,141	176,301
Effect of dilutive variable restricted shares and performance share units	155	0	349	0
Average number of shares of common stock outstanding assuming dilution	176,302	175,865	176,490	176,301
Basic earnings (loss) per share	$ 0.33	$ (2.33)	$ 0.07	$ (2.20)
Diluted earnings (loss) per share	$ 0.33	$ (2.33)	$ 0.07	$ (2.20)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	140	191	133	183

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Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) Petroleum_Refineries $ / shares shares	Jun. 30, 2016 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Share-based Compensation Plans | Petroleum_Refineries			2
Share-based Compensation Expense	$ 8.4	$ 6.0	$ 15.4	$ 8.6
Stock Issued During Period, Shares, Acquisitions | shares			472,276
Equity Issued in Business Combination, Fair Value Disclosure	$ 13.3		$ 13.3
Shares Issued, Price Per Share | $ / shares	$ 28.12		$ 28.12
Stock Issued in Acquisition	$ 5.1		$ 5.1
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent	8.2		8.2
HEP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Expense	0.7	$ 0.5	1.1	$ 1.2
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			1.0
Total unrecognized compensation cost related to non-vested grants	31.2		$ 31.2
Total unrecognized compensation cost, weighted-average period of recognition, years			1 year 4 months
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement Vesting Period			1 year
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement Vesting Period			3 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement Vesting Period			3 years
Total unrecognized compensation cost related to non-vested grants	$ 10.2		$ 10.2
Total unrecognized compensation cost, weighted-average period of recognition, years			1 year 8 months

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Stock-Based Compensation (Summary Of Restricted Stock Activity) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at January 1, 2017 (non-vested) | shares	1,188,774
Granted | shares	733,270
Vesting (transfer/conversion to common stock) | shares	(29,527)
Forfeited | shares	(39,209)
Outstanding at June 30, 2017 (non-vested) | shares	1,853,308
Outstanding at January 1, 2017 (non-vested), Weighted Average Grant Date Fair Value | $ / shares	$ 28.87
Granted, Weighted Average Grant Date Fair Value | $ / shares	28.20
Vesting and transfer of ownership to recipients, Weighted Average Grant Date Fair Value | $ / shares	33.08
Forfeited, Weighted Average Grant Date Fair Value, per share | $ / shares	30.58
Outstanding at June 30, 2017 (non-vested), Weighted Average Grant Date Fair Value | $ / shares	$ 28.83
Aggregate Intrinsic Value | $	$ 50,910

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Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) - Performance Shares [Member] $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Expense	3 years
Current Estimated Percentage Of Share Units Awarded Ultimately Issued	60.00%
Outstanding at January 1, 2017 (non-vested)	703,939
Granted	21,923
Forfeited	(86,117)
Outstanding at June 30, 2017 (non-vested)	639,745
Total unrecognized compensation cost related to non-vested grants | $	$ 10.2
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 33.34
Total unrecognized compensation cost, weighted-average period of recognition, years	1 year 8 months
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage Of Share Units Awarded Ultimately Issued	0.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage Of Share Units Awarded Ultimately Issued	200.00%

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Cash and Cash Equivalents and Investments in Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
Investment Income, Interest	$ 176	$ 527	$ 995	$ 602
Maximum term to maturity from date of purchase (years)	1 year
Available-for-sale Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment Income, Interest	$ 100		$ 300	$ 100

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Cash and Cash Equivalents and Investments in Marketable Securities (Available-For-Sale Securities) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commercial Paper [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale Securities, Amortized Cost	$ 7,687
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(1)
Available-for-sale Securities, Fair Value (Net Carrying Amount)	7,687
Corporate Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale Securities, Amortized Cost	4,001
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	0
Available-for-sale Securities, Fair Value (Net Carrying Amount)	4,001
State and Political Subdivisions Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale Securities, Amortized Cost	412,462
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(3)
Available-for-sale Securities, Fair Value (Net Carrying Amount)	412,460
Total Marketable Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale Securities, Amortized Cost	424,150
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	2
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(4)
Available-for-sale Securities, Fair Value (Net Carrying Amount)	$ 424,148

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Inventories (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Inventories
Crude Oil	$ 543,139		$ 543,139		$ 549,886
Other raw materials and unfinished products	342,991		342,991		287,561
Finished products	606,371		606,371		465,432
Lower of cost or market reserve	(428,323)		(428,323)		(332,518)
Process chemicals	21,704		21,704		2,767
Repair and maintenance supplies and other	106,091		106,091		162,548
Inventories, total	1,191,973		1,191,973		$ 1,135,676
Lower of cost or market inventory valuation adjustment	$ 83,982	$ (138,473)	$ 95,805	$ (194,594)

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Inventories inventories - narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Inventory Disclosure - Narrative [Abstract]
Inventories	$ 213,000		$ 213,000
Inventory Valuation Reserves	428,323		428,323		$ 332,518
Lower of cost or market inventory valuation adjustment	$ 83,982	$ (138,473)	$ 95,805	$ (194,594)
Contractual Obligation		$ 30,500		$ 30,500

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Environmental (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Loss Contingencies [Line Items]
Environmental remediation costs	$ 0.5	$ (0.9)	$ 1.3
Accrued environmental liability		$ 91.3		$ 96.4
Estimated time frame to remediate contigency		30
Business Combination, Indemnification Assets, Amount as of Acquisition Date		$ 4.6
Other Noncurrent Liabilities [Member]
Loss Contingencies [Line Items]
Accrued environmental liability		$ 82.9		$ 82.9

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Debt (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Jul. 27, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement	$ 1,350,000			$ 1,350,000
Letters of Credit Outstanding, Amount	3,100			3,100
Repayments of Lines of Credit				$ 26,000
Line of Credit Facility, Expiration Date				Feb. 01, 2022
Proceeds from Short-term Debt				$ 26,000
Repayment of financing obligation			$ (39,500)		$ (39,500)
Other Loans Payable, Long-term, Noncurrent							$ 350,000
Extinguishment of Debt, Amount					30,800
Loss on early extinguishment of debt	0	$ 0	(8,700)	(12,225)	(8,718)
Redemption Premium	9,800
Capitalized Interest Costs	600	$ 3,500		3,200	4,200
Debt Instrument, Unamortized Discount	$ 2,400			$ 2,400
6.5% Senior Notes [Member]
Debt Instrument [Line Items]
Stated interest rate, senior notes	6.50%			6.50%
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty-Six [Member] [Member]
Debt Instrument [Line Items]
Stated interest rate, senior notes	5.875%			5.875%
Senior notes	$ 1,000,000			$ 1,000,000			1,000,000
Debt Instrument, Unamortized Discount	$ 8,788			$ 8,788			8,775
Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member]
Debt Instrument [Line Items]
Stated interest rate, senior notes	6.00%			6.00%
Plains [Member] | Lease [Member]
Debt Instrument [Line Items]
Proceeds from sale of storage assets			$ 40,000
HEP [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement	$ 1,200,000			$ 1,200,000
Proceeds from Lines of Credit				479,000
Repayments of Lines of Credit				189,000
Line of Credit Facility, Expiration Date	Nov. 11, 2018
Borrowings outstanding under revolving credit agreement	$ 843,000			843,000			553,000
Repayment of financing obligation				$ 0	$ (39,500)
Debt Instrument, Maturity Date				Aug. 01, 2024
HEP [Member] | 6.5% Senior Notes [Member]
Debt Instrument [Line Items]
Senior Notes Aggregate Redemption Amount	309,800			$ 309,800
Senior notes	300,000			$ 300,000
Debt Instrument, Maturity Date				Mar. 01, 2020
HEP [Member] | Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member]
Debt Instrument [Line Items]
Senior notes	400,000			$ 400,000			400,000
Debt Instrument, Unamortized Discount	$ 6,261			$ 6,261			$ 6,607
Subsequent Event [Member] | HEP [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement						$ 1,400,000
Line of Credit Facility, Capacity Available for Trade Purchases						50,000
Pension Cost (Reversal of Cost)						$ 300,000

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Debt (Carrying Amounts Of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Unamortized discount	$ (2,400)
Total long-term debt	2,227,951	$ 2,235,137
Long-term debt	2,227,951	2,235,137
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty-Six [Member] [Member]
Debt Instrument [Line Items]
Principal	1,000,000	1,000,000
Unamortized discount	(8,788)	(8,775)
Total long-term debt	991,212	991,225
HEP [Member]
Debt Instrument [Line Items]
HEP Credit Agreement	843,000	553,000
Total long-term debt	1,236,739	1,243,912
Long-term Debt and Capital Lease Obligations	1,236,739	1,243,912
HEP [Member] | Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member]
Debt Instrument [Line Items]
Principal	400,000	400,000
Unamortized discount	(6,261)	(6,607)
Total long-term debt	393,739	393,393
HEP [Member] | 6.5% Senior Notes Due 2020 [Member]
Debt Instrument [Line Items]
Principal	0	300,000
Unamortized discount	0	(2,481)
Total long-term debt	0	297,519
Level 2 [Member]
Debt Instrument [Line Items]
Financial Liabilities Fair Value Disclosure	21,849	38,921
Level 2 [Member] | Forward Contracts [Member]
Debt Instrument [Line Items]
Financial Liabilities Fair Value Disclosure	1,065,000	1,022,500
Level 2 [Member] | Forward Contracts [Member] | HEP [Member]
Debt Instrument [Line Items]
Financial Liabilities Fair Value Disclosure	$ 418,000	$ 723,750

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Derivative Instruments And Hedging Activities Derivatives and Hedging Instruments Gains Losses due to Settlements Hedge Ineffectiveness (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Trading Activity, Gains and Losses, Net [Line Items]
Change in fair value	$ 1,378	$ (5,138)	$ 4,715	$ (17,059)
Sales and other revenues	3,458,864	2,714,638	6,539,347	4,733,362
(Gain) loss reclassified to earnings due to settlements	(325)	21,910	49	32,966
Amortization of discontinued hedges reclassified to earnings	270	270	540	540
Operating expenses	315,652	251,336	622,769	503,919
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	1,323	17,042	5,304	16,447
Gain (Loss) Recognized in Earnings due to Settlements	55	(22,180)	(589)	(33,506)
Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings	(18)	0	(18)	0
Operating Expense [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings	(18)	0	(18)	0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Commodity Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Sales and other revenues	4,476	(15,897)	8,426	(20,653)
Cost of Goods Sold			(299)	0
Operating expenses	$ (4,421)	$ (6,283)	$ (8,716)	$ (12,853)

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Derivative Instruments And Hedging Activities Volumes related to price risk purchase derivatives (Details) - Natural Gas - long [Member] - Price Risk Derivative [Member]	6 Months Ended
	Jun. 30, 2017 MMBTU
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	12,000,000
Maturing in Next Twelve Months [Member]
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	4,800,000
Maturing in Year Two [Member]
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	1,800,000
Maturing in Year Five [Member]
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	1,800,000
Maturing in Year Four [Member]
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	1,800,000
Maturing in Year Three [Member]
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	1,800,000

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Derivative Instruments And Hedging Activities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Price Risk Hedge Ineffectiveness	$ 5,442	$ 8,911	$ 32,817	$ 5,916
Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Price Risk Hedge Ineffectiveness	6,983	828	14,035	1,302
Operating Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Price Risk Hedge Ineffectiveness	(1,541)	8,083	(5,763)	4,614
Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Price Risk Hedge Ineffectiveness	$ 0	$ 0	$ 24,545	$ 0

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Derivative Instruments And Hedging Activities Notional Contracts by Derivative Type (Details)	6 Months Ended
	Jun. 30, 2017 MMBTU bbl
Economic Hedges [Member] | Commodity Contract [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	1,836,000
Economic Hedges [Member] | Commodity Contract [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	1,836,000
Economic Hedges [Member] | Natural Gas Liquids [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	5,154,000
Economic Hedges [Member] | Natural Gas Liquids [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	5,154,000
Economic Hedges [Member] | Natural Gas - long [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	4,800,000
Economic Hedges [Member] | Natural Gas - long [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	4,800,000
Economic Hedges [Member] | Natural Gas - Short [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	4,800,000
Economic Hedges [Member] | Natural Gas - Short [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	4,800,000
Economic Hedges [Member] | NYMEX WTI short [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	1,240,000
Economic Hedges [Member] | NYMEX WTI short [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	1,040,000
Economic Hedges [Member] | NYMEX WTI short [Member] | Maturing in Year Two [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	200,000
Economic Hedges [Member] | Forward Contracts [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	465,000
Economic Hedges [Member] | Forward Contracts [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl	465,000
Price Risk Derivative [Member] | Natural Gas - long [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	12,000,000
Price Risk Derivative [Member] | Natural Gas - long [Member] | Maturing in Next Twelve Months [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	4,800,000
Price Risk Derivative [Member] | Natural Gas - long [Member] | Maturing in Year Two [Member]
Economic hedges by derivative type [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure	1,800,000

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Derivative Instruments And Hedging Activities (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($)
Derivative [Line Items]
Unrealized Loss From Hedging Activities	$ (0.5)
Net unrealized loss in accumulated other comprehensive income related to accounting hedges	(10.5)
Net unrealized loss to be transferred from accumulated other comprehensive income to statement of income	$ (9.8)
HEP [Member] | Interest Rate Contract [Member]
Derivative [Line Items]
Rate added to fixed base rate	2.25%
Credit agreement advance maturing in 2017	$ 150.0
London Interbank Offered Rate (LIBOR) [Member] | HEP [Member] | Interest Rate Contract [Member]
Derivative [Line Items]
Fixed interest rate	0.74%
Effective interest rate on debt	2.99%

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Derivative Instruments And Hedging Activities Interest Rate Swaps (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Change in fair value	$ 1,378	$ (5,138)	$ 4,715	$ (17,059)
(Gain) loss reclassified to earnings due to settlements	(325)	21,910	49	32,966
Interest expense	29,645	14,251	56,803	26,338
Gain (Loss) Recognized in Earnings due to Settlements	55	(22,180)	(589)	(33,506)
HEP [Member]
Derivative [Line Items]
Change in fair value	11	(255)	87	(938)
(Gain) loss reclassified to earnings due to settlements	(102)	113	(115)	343
Gain (Loss) Recognized in Earnings due to Settlements	(91)	(142)	(28)	(595)
Interest Expense [Member] | HEP [Member]
Derivative [Line Items]
Gain (Loss) Recognized in Earnings due to Settlements	$ 102	$ (113)	$ 115	$ (343)

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Derivative Instruments And Hedging Activities (Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Purchase Price Canadian Dollars	$ 1,125,000
Derivative Asset Fair Value Net Asset	2,172	$ 9,484
Derivative Liability Fair Value Net Liability	13,986	32,580
Accrued Liabilities [Member]
Derivative [Line Items]
Derivative Liability Fair Value Net Liability	13,308	32,580
Prepayments And Other [Member]
Derivative [Line Items]
Derivative Asset Fair Value Net Asset	2,172	9,484
Other Noncurrent Liabilities [Member]
Derivative [Line Items]
Derivative Liability Fair Value Net Liability	678
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	63	91
Derivative Asset Fair Value Gross Liability	0	0
Derivative Asset Fair Value Net Asset	63	91
Derivative Liability Fair Value Gross Liability	10,018	16,163
Derivative Liability Fair Value Gross Asset	0	(431)
Derivative Liability Fair Value Net Liability	10,018	15,732
Designated as Hedging Instrument [Member] | Commodity Contract [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	0
Derivative Asset Fair Value Gross Liability	0	0
Derivative Asset Fair Value Net Asset	0	0
Derivative Liability Fair Value Gross Liability	10,018	13,185
Derivative Liability Fair Value Gross Asset	0	(431)
Derivative Liability Fair Value Net Liability	10,018	12,754
Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Derivative [Line Items]
Derivative Liability Fair Value Gross Liability		2,978
Derivative Liability Fair Value Gross Asset		0
Derivative Liability Fair Value Net Liability		2,978
Designated as Hedging Instrument [Member] | HEP Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	63	91
Derivative Asset Fair Value Gross Liability	0	0
Derivative Asset Fair Value Net Asset	63	91
Derivative Liability Fair Value Gross Liability	0	0
Derivative Liability Fair Value Gross Asset	0	0
Derivative Liability Fair Value Net Liability	0	0
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	2,109	10,149
Derivative Asset Fair Value Gross Liability	0	(756)
Derivative Asset Fair Value Net Asset	2,109	9,393
Derivative Liability Fair Value Gross Liability	11,831	26,735
Derivative Liability Fair Value Gross Asset	(7,863)	(9,887)
Derivative Liability Fair Value Net Liability	3,968	16,848
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	4,244
Derivative Asset Fair Value Gross Liability	0	(756)
Derivative Asset Fair Value Net Asset	0	3,488
Derivative Liability Fair Value Gross Liability	10,613	12,903
Derivative Liability Fair Value Gross Asset	(7,863)	(9,887)
Derivative Liability Fair Value Net Liability	2,750	3,016
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	1,447	5,905
Derivative Asset Fair Value Gross Liability	0
Derivative Asset Fair Value Net Asset	1,447	5,905
Derivative Liability Fair Value Gross Liability	1,218	5,338
Derivative Liability Fair Value Net Liability	1,218	5,338
Not Designated as Hedging Instrument [Member] | Nymex Futures Contracts [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	662	0
Derivative Asset Fair Value Gross Liability	0
Derivative Asset Fair Value Net Asset	662	0
Derivative Liability Fair Value Gross Liability	0	1,975
Derivative Liability Fair Value Net Liability	$ 0	1,975
Not Designated as Hedging Instrument [Member] | Foreign Exchange Future [Member]
Derivative [Line Items]
Derivative Liability Fair Value Gross Liability		6,519
Derivative Liability Fair Value Net Liability		$ 6,519

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Equity (Changes To Equity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncontrolling interest	$ 628,181		$ 628,181		$ 620,591
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	5,242,084		5,242,084		5,301,985
Balance at December 31, 2016			4,681,394
Net income (loss)	74,073	$ (392,470)	36,291	$ (349,080)
Dividends			(117,754)
Distributions to noncontrolling interest holders			(53,776)
Other comprehensive income (loss), net of tax	10,594	$ 10,334	8,156	9,648
Allocated equity on common unit issuances, net of tax			46,321
Stock Issued During Period, Value, Acquisitions			5,056
Equity-based compensation			16,557
Purchase of treasury stock			(274)
Purchase of units for incentive grants - HEP			(35)
Other			(443)
Balance at June 30, 2017	$ 4,613,903		$ 4,613,903
Shares Paid for Tax Withholding for Share Based Compensation			9,349
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	1,000,000,000		1,000,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 178,800		$ 178,800
Holly Corporation Stockholders' Equity [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at December 31, 2016			4,681,394
Net income (loss)			12,299
Dividends			(117,754)
Distributions to noncontrolling interest holders			0
Other comprehensive income (loss), net of tax			8,173
Allocated equity on common unit issuances, net of tax			9,598
Stock Issued During Period, Value, Acquisitions			5,056
Equity-based compensation			15,411
Purchase of treasury stock			(274)	0
Purchase of units for incentive grants - HEP			0
Other			0
Balance at June 30, 2017	4,613,903		4,613,903
Noncontrolling Interest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Noncontrolling interest	$ 628,181		628,181		$ 620,591
Net income (loss)			23,992
Dividends			0
Distributions to noncontrolling interest holders			(53,776)
Other comprehensive income (loss), net of tax			(17)
Allocated equity on common unit issuances, net of tax			36,723
Stock Issued During Period, Value, Acquisitions			0
Equity-based compensation			1,146
Purchase of treasury stock			0
Purchase of units for incentive grants - HEP			(35)
Other			(443)
HEP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distributions to noncontrolling interest holders			$ (53,776)	$ (43,840)

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Other Comprehensive Income (Loss) (Components And Allocated Tax Effects Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Comprehensive Income (Loss) Components and Tax Effects [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, before Tax	$ 14,298	$ 0	$ 7,585	$ 0
Net Unrealized Gain (Loss) on Marketable Securities		12	(4)	113
Net unrealized gain on hedging instruments	1,232	16,900	5,276	15,852
Other comprehensive income (loss)	15,530	16,912	12,857	15,965
Less other comprehensive income attributable to noncontrolling interest	(67)	(85)	(17)	(360)
Other comprehensive income (loss) attributable to HollyFrontier stockholders	15,597	16,997	12,874	16,325
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax	4,433		2,654
Net Unrealized Gain (loss) on Marketable Securities, Tax Expense (Benefit)		4	(1)	44
Net unrealized gain (loss) on hedging instruments, tax expense (benefit)	503	6,574	2,048	6,273
Other comprehensive income (loss), tax expense	4,936	6,578	4,701	6,317
Other comprehensive income (loss) attributable to HollyFrontier stockholders, tax expense	4,936	6,578	4,701	6,317
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	9,865		4,931
Net unrealized gain (loss) on marketable securities, after tax		8	(3)	69
Net unrealized gain (loss) on hedging instruments, after tax	729	10,326	3,228	9,579
Other comprehensive income (loss), net of tax	10,594	10,334	8,156	9,648
Less other comprehensive income (loss) attributable to noncontrolling interest, after tax	(67)	(85)	(17)	(360)
Other comprehensive income (loss) attributable to HollyFrontier stockholders	$ 10,661	$ 10,419	$ 8,173	$ 10,008

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Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss In Equity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sales and other revenues	$ 3,458,864	$ 2,714,638	$ 6,539,347	$ 4,733,362
Operating expenses	315,652	251,336	622,769	503,919
Interest expense	(29,645)	(14,251)	(56,803)	(26,338)
Income (loss) before income taxes	106,069	(430,515)	51,498	(364,817)
Income tax expense (benefit)	31,996	(38,045)	15,207	(15,737)
Net of tax and noncontrolling interest	57,767	(409,368)	12,299	(388,115)
Other comprehensive income (loss), net of tax	10,594	10,334	8,156	9,648
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other comprehensive income (loss), net of tax	56	(13,623)	(335)	(20,635)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income			0	(23)
Income tax expense (benefit)			0	(9)
Net income			0	(14)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) before income taxes	157	(22,293)	(474)	(33,849)
Income tax expense (benefit)	36	(8,601)	(212)	(13,019)
Net income	121	(13,692)	(262)	(20,830)
Noncontrolling interest	(65)	69	(73)	209
Net of tax and noncontrolling interest	56	(13,623)	(335)	(20,621)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Commodity Contract [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sales and other revenues	4,476	(15,897)	8,426	(20,653)
Cost of Goods Sold			(299)	0
Operating expenses	(4,421)	(6,283)	(8,716)	(12,853)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Rate Swap [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	$ 102	$ (113)	$ 115	$ (343)

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Other Comprehensive Income (Loss) Other Comprehensive Income Balance Components (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Foreign currency translation adjustment	$ 4,931	$ 0
Unrealized gain on post-retirement benefit obligations	20,055	20,055
Unrealized gain (loss) on marketable securities	0	3
Unrealized gain (loss) on hedging activities, net of noncontrolling interest	(6,201)	(9,446)
Accumulated other comprehensive income (loss)	$ 18,785	$ 10,612

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Post-retirement Plan (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Feb. 01, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Accumulated Benefit Obligation			$ 50,827
Defined Benefit Plan Assets			52,082
Defined Benefit Plan, Funded (Unfunded) Status of Plan			$ 1,255
Defined Benefit Plan, Other Cost (Credit)	$ 100	$ 300
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Accumulated Benefit Obligation	$ 8,200	$ 8,200

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Post-retirement Plan (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	$ 944		$ 1,582
Interest cost on projected benefit obligations	518		868
Expected Return on Plan Assets	(747)		(1,252)
Pension Cost (Reversal of Cost)	715		$ 1,198
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	301	$ 324		$ 601	$ 648
Interest cost on projected benefit obligations	169	197		339	394
Amortization of prior service Credit	(870)	(871)		(1,740)	(1,742)
Net periodic post-retirement credit	$ (400)	$ (350)		$ (800)	$ (700)

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Segment Information (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Segment Reporting Information [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss		$ 309.3		$ 309.3
Other Asset Impairment Charges				344.8
Number of Reportable Segments	3
Equity Method Investment, Ownership Percentage	50.00%		50.00%
HEP [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	$ 16.0	$ 15.7	$ 32.6	$ 34.9
SLC Pipeline [Member]
Segment Reporting Information [Line Items]
Equity Method Investment, Ownership Percentage	25.00%		25.00%
UNEV Pipeline [Member]
Segment Reporting Information [Line Items]
Equity Method Investment, Ownership Percentage	75.00%		75.00%

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Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Thousands	3 Months Ended		5 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Sales and other revenues	$ 3,458,864	$ 2,714,638		$ 6,539,347	$ 4,733,362
Operating expenses	315,652	251,336		622,769	503,919
Depreciation and amortization	105,282	90,423		201,322	178,303
Income (loss) from operations	121,685	(420,542)		88,961	(336,944)
Income (loss) from equity method investments	4,053	3,623		5,893	6,388
Capital expenditures	77,293	140,472		137,050	290,045
Cash, cash equivalents, and total investments in marketable securities	460,326		$ 460,326	460,326		$ 1,134,727
Total assets	9,643,035		9,643,035	9,643,035		9,435,661
Long-term debt	2,227,951		2,227,951	2,227,951		2,235,137
2911 Petroleum Refining [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	3,141,137	2,699,022		6,003,213	4,698,609
Operating expenses	245,265	225,683		502,380	453,512
Depreciation and amortization	75,656	72,023		145,324	140,901
Income (loss) from operations	86,603	(436,214)		36,348	(380,281)
Income (loss) from equity method investments	0	0		0	0
Capital expenditures	52,190	105,875		99,864	210,582
Cash, cash equivalents, and total investments in marketable securities	2,311		2,311	2,311		49
Total assets	6,354,911		6,354,911	6,354,911		6,513,806
Long-term debt	0		0	0		0
Other Segments [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	309,566	0	511,500	511,506	0
Operating expenses	52,652	0		88,681	0
Depreciation and amortization	7,302	0		12,376	0
Income (loss) from operations	17,511	0		29,905	0
Income (loss) from equity method investments	0	0		0	0
Capital expenditures	8,757	0		10,352	0
Cash, cash equivalents, and total investments in marketable securities	68,346		68,346	68,346		0
Total assets	1,194,478		1,194,478	1,194,478		0
Long-term debt	0		0	0		0
HEP [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	109,143	94,896		214,777	196,906
Operating expenses	34,097	29,212		66,586	56,968
Depreciation and amortization	19,541	15,308		37,914	31,337
Income (loss) from operations	52,890	47,514		105,028	102,648
Income (loss) from equity method investments	4,053	3,623		5,893	6,388
Capital expenditures	12,259	33,201		20,524	75,385
Cash, cash equivalents, and total investments in marketable securities	16,339		16,339	16,339		3,657
Total assets	1,904,951		1,904,951	1,904,951		1,920,487
Long-term debt	1,236,739		1,236,739	1,236,739		1,243,912
Corporate And Other [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	15	47		42	157
Operating expenses	1,322	1,152		2,335	2,407
Depreciation and amortization	2,990	3,299		6,122	6,479
Income (loss) from operations	(34,746)	(31,197)		(81,181)	(58,052)
Income (loss) from equity method investments	0	0		0	0
Capital expenditures	4,087	1,396		6,310	4,078
Cash, cash equivalents, and total investments in marketable securities	373,330		373,330	373,330		1,131,021
Total assets	471,367		471,367	471,367		1,306,169
Long-term debt	991,212		991,212	991,212		991,225
Eliminations [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	(100,997)	(79,327)		(190,191)	(162,310)
Operating expenses	(17,684)	(4,711)		(37,213)	(8,968)
Depreciation and amortization	(207)	(207)		(414)	(414)
Income (loss) from operations	(573)	(645)		(1,139)	(1,259)
Income (loss) from equity method investments	0	0		0	0
Capital expenditures	0	$ 0		0	$ 0
Cash, cash equivalents, and total investments in marketable securities	0		0	0		0
Total assets	(282,672)		(282,672)	(282,672)		(304,801)
Long-term debt	$ 0		$ 0	$ 0		$ 0

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Additional Financial Information (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Additional Financial Information [Line Items]
Purchase Obligation Minimum Annualized Payment		$ 350,000
HEP [Member]
Additional Financial Information [Line Items]
Percentage of ownership in variable interest entity	36.00%

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Additional Financial Information Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	$ 460,326	$ 710,579	$ 451,990	$ 66,533
Marketable securities	0	424,148
Accounts receivable, net	602,350	479,199
Inventories	1,191,973	1,135,676
Income taxes receivable	1,428	68,371
Prepayments and other	37,686	33,036
Total current assets	2,293,763	2,851,009
Properties, plants and equipment, net	4,443,558	4,008,448
Intangibles and other assets	2,905,714	2,576,204
Total assets	9,643,035	9,435,661
Accounts payable	1,009,135	935,387
Income tax payable	24,427
Accrued liabilities	186,886	147,842
Total current liabilities	1,220,448	1,083,229
Long-term debt	2,227,951	2,235,137
Liability to HEP	0	0
Deferred income tax liabilities	745,050	620,414
Other long-term liabilities	207,502	194,896
Investment in HEP	0	0
Equity – HollyFrontier	4,613,903	4,681,394
Equity – noncontrolling interest	628,181	620,591
Total liabilities and equity	9,643,035	9,435,661
Consolidation, Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	0	0	0	0
Marketable securities		0
Accounts receivable, net	(43,486)	(58,902)
Inventories	0	0
Income taxes receivable	0	0
Prepayments and other	(6,165)	(5,829)
Total current assets	(49,651)	(64,731)
Properties, plants and equipment, net	(224,057)	(231,161)
Intangibles and other assets	616	555
Total assets	(273,092)	(295,337)
Accounts payable	(43,486)	(58,902)
Income tax payable	0
Accrued liabilities	(6,165)	(5,829)
Total current liabilities	(49,651)	(64,731)
Long-term debt	0	0
Liability to HEP	(202,382)	(208,603)
Deferred income tax liabilities	0	0
Other long-term liabilities	(528)	(590)
Investment in HEP	(151,055)	(136,435)
Equity – HollyFrontier	(405,127)	(412,012)
Equity – noncontrolling interest	535,651	527,034
Total liabilities and equity	(273,092)	(295,337)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	16,339	3,657	4,882	15,013
Marketable securities		0
Accounts receivable, net	44,738	50,408
Inventories	1,470	1,402
Income taxes receivable	0	0
Prepayments and other	1,652	1,486
Total current assets	64,199	56,953
Properties, plants and equipment, net	1,347,276	1,365,568
Intangibles and other assets	493,476	497,966
Total assets	1,904,951	1,920,487
Accounts payable	15,928	26,942
Income tax payable	0
Accrued liabilities	31,680	37,793
Total current liabilities	47,608	64,735
Long-term debt	1,236,739	1,243,912
Liability to HEP	0	0
Deferred income tax liabilities	649	509
Other long-term liabilities	61,312	62,971
Investment in HEP	0	0
Equity – HollyFrontier	466,113	454,803
Equity – noncontrolling interest	92,530	93,557
Total liabilities and equity	1,904,951	1,920,487
Holly Frontier Corp. Before Consolidation of HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	443,987	706,922	$ 447,108	$ 51,520
Marketable securities		424,148
Accounts receivable, net	601,098	487,693
Inventories	1,190,503	1,134,274
Income taxes receivable	1,428	68,371
Prepayments and other	42,199	37,379
Total current assets	2,279,215	2,858,787
Properties, plants and equipment, net	3,320,339	2,874,041
Intangibles and other assets	2,411,622	2,077,683
Total assets	8,011,176	7,810,511
Accounts payable	1,036,693	967,347
Income tax payable	24,427
Accrued liabilities	161,371	115,878
Total current liabilities	1,222,491	1,083,225
Long-term debt	991,212	991,225
Liability to HEP	202,382	208,603
Deferred income tax liabilities	744,401	619,905
Other long-term liabilities	146,718	132,515
Investment in HEP	151,055	136,435
Equity – HollyFrontier	4,552,917	4,638,603
Equity – noncontrolling interest	0	0
Total liabilities and equity	$ 8,011,176	$ 7,810,511

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Additional Financial Information Consolidating Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Condensed Financial Statements, Captions [Line Items]
Sales and other revenues	$ 3,458,864	$ 2,714,638		$ 6,539,347	$ 4,733,362
Operating costs and expenses:
Cost of products sold	2,753,440	2,248,155		5,394,597	3,873,318
Lower of cost or market inventory valuation adjustment	83,982	(138,473)		95,805	(194,594)
Operating expenses	315,652	251,336		622,769	503,919
General and administrative	59,576	29,655		116,646	55,276
Depreciation and amortization	105,282	90,423		201,322	178,303
Asset Impairment Charges	19,247			19,247	344,800
Goodwill and Intangible Asset Impairment	19,247	654,084		19,247	654,084
Total operating costs and expenses	3,337,179	3,135,180		6,450,386	5,070,306
Income (loss) from operations	121,685	(420,542)		88,961	(336,944)
Other income (expense):
Income (loss) from equity method investments	4,053	3,623		5,893	6,388
Interest income (expense)	(29,469)	(13,724)		(55,808)	(25,736)
Loss on early extinguishment of debt	0	0	$ (8,700)	(12,225)	(8,718)
Other Nonoperating Income (Expense)	9,800	128		24,677	193
Nonoperating Income (Expense)	(15,616)	(9,973)		(37,463)	(27,873)
Income (loss) before income taxes	106,069	(430,515)		51,498	(364,817)
Income tax expense (benefit)	31,996	(38,045)		15,207	(15,737)
Net income (loss)	74,073	(392,470)		36,291	(349,080)
Less net income (loss) attributable to noncontrolling interest	16,306	16,898		23,992	39,035
Net income (loss) attributable to HollyFrontier stockholders	57,767	(409,368)		12,299	(388,115)
Comprehensive income (loss) attributable to HollyFrontier stockholders	68,428	(398,949)		20,472	(378,107)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Sales and other revenues	(93,278)	(79,327)		(182,472)	(162,310)
Operating costs and expenses:
Cost of products sold	(74,834)	(73,764)		(143,706)	(151,669)
Lower of cost or market inventory valuation adjustment	0	0		0	0
Operating expenses	(17,684)	(4,711)		(37,213)	(8,968)
General and administrative	20	0		0	0
Depreciation and amortization	(3,570)	(3,571)		(7,103)	(7,141)
Asset Impairment Charges	0			0
Goodwill and Intangible Asset Impairment		0			0
Total operating costs and expenses	(96,068)	(82,046)		(188,022)	(167,778)
Income (loss) from operations	2,790	2,719		5,550	5,468
Other income (expense):
Income (loss) from equity method investments	(26,949)	(25,096)		(47,537)	(50,893)
Interest income (expense)	(2,431)	(2,221)		(4,749)	(4,518)
Loss on early extinguishment of debt				0	0
Other Nonoperating Income (Expense)	0	0		0	0
Nonoperating Income (Expense)	(29,380)	(27,317)		(52,286)	(55,411)
Income (loss) before income taxes	(26,590)	(24,598)		(46,736)	(49,943)
Income tax expense (benefit)	0	0		0	0
Net income (loss)	(26,590)	(24,598)		(46,736)	(49,943)
Less net income (loss) attributable to noncontrolling interest	14,789	14,552		20,169	31,769
Net income (loss) attributable to HollyFrontier stockholders	(41,379)	(39,150)		(66,905)	(81,712)
Comprehensive income (loss) attributable to HollyFrontier stockholders	(41,324)	(39,095)		(66,894)	(81,479)
Holly Frontier Corp. Before Consolidation of HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Sales and other revenues	3,442,999	2,699,069		6,507,042	4,698,766
Operating costs and expenses:
Cost of products sold	2,828,274	2,321,919		5,538,303	4,024,987
Lower of cost or market inventory valuation adjustment	83,982	(138,473)		95,805	(194,594)
Operating expenses	299,239	226,835		593,396	455,919
General and administrative	56,941	26,793		111,397	49,323
Depreciation and amortization	89,311	78,686		170,511	154,107
Asset Impairment Charges	19,247			19,247
Goodwill and Intangible Asset Impairment		654,084			654,084
Total operating costs and expenses	3,376,994	3,169,844		6,528,659	5,143,826
Income (loss) from operations	66,005	(470,775)		(21,617)	(445,060)
Other income (expense):
Income (loss) from equity method investments	26,949	25,096		47,537	50,893
Interest income (expense)	(13,393)	(339)		(23,977)	369
Loss on early extinguishment of debt				0	(8,718)
Other Nonoperating Income (Expense)	9,710	127		24,514	200
Nonoperating Income (Expense)	23,266	24,884		48,074	42,744
Income (loss) before income taxes	89,271	(445,891)		26,457	(402,316)
Income tax expense (benefit)	31,868	(38,098)		14,973	(15,886)
Net income (loss)	57,403	(407,793)		11,484	(386,430)
Less net income (loss) attributable to noncontrolling interest	(4)	(9)		(14)	(16)
Net income (loss) attributable to HollyFrontier stockholders	57,407	(407,784)		11,498	(386,414)
Comprehensive income (loss) attributable to HollyFrontier stockholders	68,062	(397,364)		19,671	(376,405)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Sales and other revenues	109,143	94,896		214,777	196,906
Operating costs and expenses:
Cost of products sold	0	0		0	0
Lower of cost or market inventory valuation adjustment	0	0		0	0
Operating expenses	34,097	29,212		66,586	56,968
General and administrative	2,615	2,862		5,249	5,953
Depreciation and amortization	19,541	15,308		37,914	31,337
Asset Impairment Charges	0			0
Goodwill and Intangible Asset Impairment		0			0
Total operating costs and expenses	56,253	47,382		109,749	94,258
Income (loss) from operations	52,890	47,514		105,028	102,648
Other income (expense):
Income (loss) from equity method investments	4,053	3,623		5,893	6,388
Interest income (expense)	(13,645)	(11,164)		(27,082)	(21,587)
Loss on early extinguishment of debt				(12,225)	0
Other Nonoperating Income (Expense)	90	1		163	(7)
Nonoperating Income (Expense)	(9,502)	(7,540)		(33,251)	(15,206)
Income (loss) before income taxes	43,388	39,974		71,777	87,442
Income tax expense (benefit)	128	53		234	149
Net income (loss)	43,260	39,921		71,543	87,293
Less net income (loss) attributable to noncontrolling interest	1,521	2,355		3,837	7,282
Net income (loss) attributable to HollyFrontier stockholders	41,739	37,566		67,706	80,011
Comprehensive income (loss) attributable to HollyFrontier stockholders	$ 41,690	$ 37,510		$ 67,695	$ 79,777

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Additional Financial Information Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		14 Months Ended
	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017
Condensed Financial Statements, Captions [Line Items]
Cash flows from operating activities		$ 473,398	$ 310,326
Additions to properties, plants and equipment		(116,526)	(214,660)
Purchase of PCLI, net of cash acquired		(870,627)	0
Purchases of marketable securities		(41,565)	(86,798)
Sales and maturities of marketable securities		465,716	149,599
Other, net		3,017	408
Net cash used for investing activities		(580,509)	(269,336)
Net borrowings/repayments under credit agreement		290,000	74,000
Net proceeds from Issuance of senior notes		0	246,690
Purchase Obligation Minimum Annualized Payment			350,000
Proceeds from issuance of common units - HEP		52,634	13,690	$ 77,100
Repayment of financing obligation	$ (39,500)		(39,500)
Redemption of senior notes - HEP		(309,750)	0
Purchase of treasury stock		0	(133,430)
Dividends		(117,754)	(116,795)
Distributions to Noncontrolling Interests		(53,776)	(43,840)
Contribution from general partner			0
Other, net		(4,820)	(6,348)
Net cash provided by (used for) financing activities		(143,466)	344,467
Effect of Exchange Rate on Cash		324	0
Increase (decrease) for the period		(250,253)	385,457
Beginning of period	66,533	710,579	66,533
End of period		460,326	451,990	460,326
HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Additions to properties, plants and equipment		(20,524)	(75,385)
Purchase of equity method investment - HEP		0	(42,500)
Proceeds from Lines of Credit		479,000
Repayment of financing obligation		0	(39,500)
Beginning of period		3,657
End of period		16,339		16,339
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Cash flows from operating activities		(60,603)	(49,769)
Additions to properties, plants and equipment		0	0
Purchases of marketable securities		0	0
Sales and maturities of marketable securities		0	0
Other, net		(424)	0
Net cash used for investing activities		(424)	0
Net proceeds from Issuance of senior notes			0
Purchase Obligation Minimum Annualized Payment			0
Proceeds from issuance of common units - HEP		0
Redemption of senior notes - HEP		0
Purchase of treasury stock			0
Dividends		0	0
Distributions to Noncontrolling Interests		61,919	49,769
Contribution from general partner			0
Other, net		(892)	0
Net cash provided by (used for) financing activities		61,027	49,769
Effect of Exchange Rate on Cash		0
Increase (decrease) for the period		0	0
Beginning of period	0	0	0
End of period		0	0	0
Eliminations [Member] | HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Additions to properties, plants and equipment		0	0
Purchase of equity method investment - HEP			0
Purchase of PCLI, net of cash acquired		0
Net borrowings/repayments under credit agreement		0	0
Proceeds from issuance of common units - HEP			0
Repayment of financing obligation			0
Holly Frontier Corp. Before Consolidation of HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Cash flows from operating activities		420,404	256,019
Additions to properties, plants and equipment		(116,526)	(214,660)
Purchase of equity method investment - HEP			0
Purchase of PCLI, net of cash acquired		(870,627)
Purchases of marketable securities		(41,565)	(86,798)
Sales and maturities of marketable securities		465,716	149,599
Other, net		1,152	390
Net cash used for investing activities		(561,850)	(151,469)
Net borrowings/repayments under credit agreement		0
Net proceeds from Issuance of senior notes			246,690
Purchase Obligation Minimum Annualized Payment			350,000
Proceeds from issuance of common units - HEP		0
Redemption of senior notes - HEP		0
Purchase of treasury stock			(133,430)
Dividends		(117,754)	(116,795)
Distributions to Noncontrolling Interests		0	0
Payments for Advance to Affiliate			53,304
Other, net		(4,059)	(2,123)
Net cash provided by (used for) financing activities		(121,813)	291,038
Effect of Exchange Rate on Cash		324
Increase (decrease) for the period		(262,935)	395,588
Beginning of period	51,520	706,922	51,520
End of period		443,987	447,108	443,987
Holly Frontier Corp. Before Consolidation of HEP [Member] | HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Additions to properties, plants and equipment		0	0
Net borrowings/repayments under credit agreement			0
Proceeds from issuance of common units - HEP			0
Repayment of financing obligation			0
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Cash flows from operating activities		113,597	104,076
Additions to properties, plants and equipment		0	0
Purchase of PCLI, net of cash acquired		0
Purchases of marketable securities		0	0
Sales and maturities of marketable securities		0	0
Other, net		2,289	18
Net cash used for investing activities		(18,235)	(117,867)
Net borrowings/repayments under credit agreement		290,000	74,000
Net proceeds from Issuance of senior notes			0
Purchase Obligation Minimum Annualized Payment			0
Proceeds from issuance of common units - HEP		52,634	13,690
Repayment of financing obligation			(39,500)
Redemption of senior notes - HEP		(309,750)
Purchase of treasury stock			0
Dividends		0	0
Distributions to Noncontrolling Interests		(115,695)	(93,609)
Contribution from general partner			53,304
Other, net		131	(4,225)
Net cash provided by (used for) financing activities		(82,680)	3,660
Effect of Exchange Rate on Cash		0
Increase (decrease) for the period		12,682	(10,131)
Beginning of period	$ 15,013	3,657	15,013
End of period		16,339	4,882	$ 16,339
Non-Guarantor Subsidiaries [Member] | HEP [Member]
Condensed Financial Statements, Captions [Line Items]
Additions to properties, plants and equipment		$ (20,524)	(75,385)
Purchase of equity method investment - HEP			$ (42,500)