NOTE 17: Supplemental Guarantor/Non-Guarantor Financial Information

Our obligations under the HollyFrontier Senior Notes have been jointly and severally guaranteed by the substantial majority of our existing and future restricted subsidiaries ("Guarantor Restricted Subsidiaries"), which includes certain Frontier subsidiaries that merged with us on July 1, 2011. These guarantees are full and unconditional. HEP, in which we have a 34% ownership interest as of September 30, 2011, and its subsidiaries (collectively, "Non-Guarantor Non-Restricted Subsidiaries"), and certain of our other subsidiaries ("Non-Guarantor Restricted Subsidiaries") have not guaranteed these obligations.

The following financial information presents condensed consolidating balance sheets, statements of income, and statements of cash flows of HollyFrontier (the "Parent"), the Guarantor Restricted Subsidiaries, the Non-Guarantor Restricted Subsidiaries and the Non-Guarantor Non-Restricted Subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Restricted Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Restricted Subsidiaries and Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. The Guarantor Restricted Subsidiaries and the Non-Guarantor Restricted Subsidiaries are collectively the "Restricted Subsidiaries." Our revaluation of HEP's assets and liabilities at March 1, 2008 (date of reconsolidation) resulted in basis adjustments to our consolidated HEP balances. Therefore, our reported amounts for the HEP segment may not agree to amounts reported in HEP's periodic public filings.

Condensed Consolidating Balance Sheet


September 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,554,831		$	8,724		$	17,502		$	—		$	1,581,057	$	1,802	$	—		$	1,582,859
Marketable securities		132,654			791			—			—			133,445		—		—			133,445
Accounts receivable		3,509			1,337,820			74						1,341,403		23,821		(23,541	)		1,341,683
Intercompany accounts receivable (payable)		898,166			(1,321,457	)		423,291			—			—		—		—			—
Inventories		—			1,264,816			—			—			1,264,816		703		—			1,265,519
Prepayments and other assets		15,438			42,939			5			—			58,382		942		(3,742	)		55,582

Total current assets		2,604,598			1,333,633			440,872			—			4,379,103		27,268		(27,283	)		4,379,088

Properties and equipment, net		21,256			2,125,285			353,227			—			2,499,768		503,248		(6,488	)		2,996,528
Marketable securities (long-term)		43,049			—			—			—			43,049		—		—			43,049
Investment in subsidiaries		3,426,419			694,031			(396,034	)		(3,724,416	)		—		—		—			—
Intangibles and other assets		19,465			2,322,242			—			—			2,341,707		154,947		1,144			2,497,798

Total assets	$	6,114,787		$	6,475,191		$	398,065		$	(3,724,416	)	$	9,263,627	$	685,463	$	(32,627	)	$	9,916,463


LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	12,707		$	2,099,725		$	6,341		$	—		$	2,118,773	$	7,683	$	(23,541	)	$	2,102,915
Income taxes payable		—			140,086			—			—			140,086		—		—			140,086
Accrued liabilities		60,917			66,427			2,240			—			129,584		11,997		(3,742	)		137,839

Total current liabilities		73,624			2,306,238			8,581			—			2,388,443		19,680		(27,283	)		2,380,840
Long-term debt		659,851			54,498			—			—			714,349		527,213		(16,575	)		1,224,987
Deferred income taxes		282,862			222,351			919			—			506,132		—		4,951			511,083
Non-current liabilities		41,860			88,759			—			—			130,619		8,144		—			138,763
Distributions in excess of inv in HEP		—			376,926			—			—			376,926		—		(376,926	)		—
Equity – HollyFrontier		5,056,590			3,426,419			388,565			(3,814,984	)		5,056,590		130,426		(132,086	)		5,054,930
Equity – noncontrolling interest		—			—			—			90,568			90,568		—		515,292			605,860

Total liabilities and equity	$	6,114,787		$	6,475,191		$	398,065		$	(3,724,416	)	$	9,263,627	$	685,463	$	(32,627	)	$	9,916,463


Condensed Consolidating Balance Sheet
December 31, 2010	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	230,082		$	(9,035	)	$	7,651		$	—		$	228,698	$	403	$	—		$	229,101
Marketable securities		—			1,343			—			—			1,343		—		—			1,343
Accounts receivable		1,683			991,778			—			—			993,461		22,508		(22,853	)		993,116
Intercompany accounts receivable (payable)		(1,401,580	)		981,691			419,889			—			—		—		—			—
Inventories		—			400,165			—			—			400,165		202		—			400,367
Income taxes receivable		51,034			—			—			—			51,034		—		—			51,034
Prepayments and other assets		10,210			20,942			—			—			31,152		573		(3,251	)		28,474

Total current assets		(1,108,571	)		2,386,884			427,540			—			1,705,853		23,686		(26,104	)		1,703,435
Properties and equipment, net		17,177			1,017,877			236,648			—			1,271,702		492,098		(7,109	)		1,756,691
Investment in subsidiaries		2,273,159			595,888			(393,011	)		(2,476,036	)		—		—		—			—
Intangibles and other assets		8,569			77,600			—			—			86,169		154,036		1,144			241,349

Total assets	$	1,190,334		$	4,078,249		$	271,177		$	(2,476,036	)	$	3,063,724	$	669,820	$	(32,069	)	$	3,701,475


LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	7,170		$	1,319,316		$	3,575		$	—		$	1,330,061	$	10,238	$	(22,853	)	$	1,317,446
Accrued liabilities		25,512			28,145			797			—			54,454		21,206		(3,251	)		72,409

Total current liabilities		32,682			1,347,461			4,372			—			1,384,515		31,444		(26,104	)		1,389,855

Long-term debt		289,509			55,706			—			—			345,215		482,271		(16,925	)		810,561
Deferred income taxes		126,160			259			565			—			126,984		—		4,951			131,935
Non-current liabilities		42,655			27,521			—			—			70,176		10,809		—			80,985
Distributions in excess of inv in HEP		—			374,143			—			—			374,143		—		(374,143	)		—
Equity – HollyFrontier		699,328			2,273,159			266,240			(2,539,399	)		699,328		145,296		(147,205	)		697,419
Equity – noncontrolling interest		—			—			—			63,363			63,363		—		527,357			590,720

Total liabilities and equity	$	1,190,334		$	4,078,249		$	271,177		$	(2,476,036	)	$	3,063,724	$	669,820	$	(32,069	)	$	3,701,475

Condensed

Consolidating Statement of Income


Three Months Ended September 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	266		$	5,164,778		$	33		$	—		$	5,165,077		$	49,288		$	(40,967	)	$	5,173,398

Operating costs and expenses:
Cost of products sold		—			4,029,997			—			—			4,029,997			—			(40,070	)		3,989,927
Operating expenses		—			213,001			323			—			213,324			14,689			(130	)		227,883
General and administrative expenses		39,555			1,574			—			—			41,129			2,012			—			43,141
Depreciation and amortization		872			35,070			179			—			36,121			7,326			(207	)		43,240

Total operating costs and expenses		40,427			4,279,642			502			—			4,320,571			24,027			(40,407	)		4,304,191

Income (loss) from operations		(40,161	)		885,136			(469	)		—			844,506			25,261			(560	)		869,207

Other income (expense):
Equity in earnings of subsidiaries and joint venture		892,558			8,399			8,840			(901,066	)		8,731			641			(8,840	)		532
Interest income (expense)		(15,162	)		(977	)		14			—			(16,125	)		(9,391	)		646			(24,870	)
Merger transaction costs		(9,100	)		—			—			—			(9,100	)		—			—			(9,100	)

		868,296			7,422			8,854			(901,066	)		(16,494	)		(8,750	)		(8,194	)		(33,438	)

Income before income taxes		828,135			892,558			8,385			(901,066	)		828,012			16,511			(8,754	)		835,769

Income tax provision		304,835			—			—			—			304,835			(77	)		—			304,758

Net income		523,300			892,558			8,385			(901,066	)		523,177			16,588			(8,754	)		531,011

Less net income attributable to noncontrolling interest		—			—			—			(123	)		(123	)		—			8,046			7,923

Net income attributable to HollyFrontier stockholders	$	523,300		$	892,558		$	8,385		$	(900,943	)	$	523,300		$	16,588		$	(16,800	)	$	523,088


Condensed Consolidating Statement of Income
Three Months Ended September 30, 2010	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	100		$	2,081,707		$	2		$	—		$	2,081,809		$	46,558		$	(37,379	)	$	2,090,988

Operating costs and expenses:
Cost of products sold		—			1,843,464			103			—			1,843,567			—			(36,523	)		1,807,044
Operating expenses		—			116,763			—			—			116,763			13,632			(132	)		130,263
General and administrative expenses		15,538			(121	)		—			—			15,417			1,508			—			16,925
Depreciation and amortization		925			21,499			179			—			22,603			6,830			(295	)		29,138

Total operating costs and expenses		16,463			1,981,605			282			—			1,998,350			21,970			(36,950	)		1,983,370

Income (loss) from operations		(16,363	)		100,102			(280	)		—			83,459			24,588			(429	)		107,618

Other income (expense):
Equity in earnings of subsidiaries and joint venture		106,360			7,918			8,117			(114,278	)		8,117			570			(8,117	)		570
Interest income (expense)		(7,294	)		(1,660	)		11			—			(8,943	)		(8,979	)		618			(17,304	)

		99,066			6,258			8,128			(114,278	)		(826	)		(8,409	)		(7,499	)		(16,734	)

Income before income taxes		82,703			106,360			7,848			(114,278	)		82,633			16,179			(7,928	)		90,884

Income tax provision		31,418			—			—			—			31,418			76			—			31,494

Net income		51,285			106,360			7,848			(114,278	)		51,215			16,103			(7,928	)		59,390

Less net income attributable to noncontrolling interest		—			—			—			(70	)		(70	)		—			8,283			8,213

Net income attributable to HollyFrontier stockholders	$	51,285		$	106,360		$	7,848		$	(114,208	)	$	51,285		$	16,103		$	(16,211	)	$	51,177

Condensed Consolidating Statement of Income


Nine Months Ended September 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	1,067		$	10,433,096		$	33		$	—		$	10,434,196		$	145,233		$	(112,313	)	$	10,467,116

Operating costs and expenses:
Cost of products sold		—			8,531,358			—			—			8,531,358			—			(109,719	)		8,421,639
Operating expenses		—			459,678			832			—			460,510			41,851			(390	)		501,971
General and administrative expenses		71,884			1,809			—			—			73,693			4,948			—			78,641
Depreciation and amortization		2,719			81,875			537			—			85,131			21,870			(621	)		106,380

Total operating costs and expenses		74,603			9,074,720			1,369			—			9,150,692			68,669			(110,730	)		9,108,631

Income (loss) from operations		(73,536	)		1,358,376			(1,336	)		—			1,283,504			76,564			(1,583	)		1,358,485

Other income (expense):
Equity in earnings of subsidiaries and joint venture		1,381,010			25,230			26,340			(1,406,349	)		26,231			1,848			(26,340	)		1,739
Interest income (expense)		(27,033	)		(2,596	)		40			—			(29,589	)		(27,789	)		1,853			(55,525	)
Merger transaction costs		(15,114	)		—			—			—			(15,114	)		—			—			(15,114	)

		1,338,863			22,634			26,380			(1,406,349	)		(18,472	)		(25,941	)		(24,487	)		(68,900	)

Income before income taxes		1,265,327			1,381,010			25,044			(1,406,349	)		1,265,032			50,623			(26,070	)		1,289,585

Income tax provision		465,561			—			—			—			465,561			169			—			465,730

Net income		799,766			1,381,010			25,044			(1,406,349	)		799,471			50,454			(26,070	)		823,855

Less net income attributable to noncontrolling interest		—			—			—			(295	)		(295	)		—			24,133			23,838

Net income attributable to HollyFrontier stockholders	$	799,766		$	1,381,010		$	25,044		$	(1,406,054	)	$	799,766		$	50,454		$	(50,203	)	$	800,017


Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2010	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	317		$	6,086,241		$	2		$	—		$	6,086,560		$	132,730		$	(108,152	)	$	6,111,138

Operating costs and expenses:
Cost of products sold		—			5,484,647			115			—			5,484,762			—			(105,642	)		5,379,120
Operating expenses		—			338,826			—			—			338,826			40,187			(375	)		378,638
General and administrative expenses		44,339			300			—			—			44,639			5,984			—			50,623
Depreciation and amortization		2,796			63,278			(292	)		—			65,782			20,822			(885	)		85,719

Total operating costs and expenses		47,135			5,887,051			(177	)		—			5,934,009			66,993			(106,902	)		5,894,100

Income (loss) from operations		(46,818	)		199,190			179			—			152,551			65,737			(1,250	)		217,038

Other income (expense):
Equity in earnings of subsidiaries and joint venture		216,349			21,217			21,053			(237,566	)		21,053			1,595			(21,053	)		1,595
Interest income (expense)		(25,964	)		(4,058	)		31			—			(29,991	)		(27,192	)		1,828			(55,355	)

		190,385			17,159			21,084			(237,566	)		(8,938	)		(25,597	)		(19,225	)		(53,760	)

Income before income taxes		143,567			216,349			21,263			(237,566	)		143,613			40,140			(20,475	)		163,278

Income tax provision		54,260			—			—			—			54,260			216			—			54,476

Net income		89,307			216,349			21,263			(237,566	)		89,353			39,924			(20,475	)		108,802
Less net income attributable to noncontrolling interest		—			—			—			46			46			—			19,511			19,557

Net income attributable to HollyFrontier stockholders	$	89,307		$	216,349		$	21,263		$	(237,612	)	$	89,307		$	39,924		$	(39,986	)	$	89,245

Condensed Consolidating Statement of Cash Flows


Nine Months Ended September 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			HollyFrontier Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	1,690,926		$	(683,525	)	$	49,190		$	1,056,591		$	62,646		$	(30,034	)	$	1,089,203
Cash flows from investing activities
Additions to properties, plants and equipment		(6,056	)		(119,335	)		(117,339	)		(242,730	)		—			—			(242,730	)
Additions to properties, plants and equipment – HEP		—			—			—			—			(31,493	)		—			(31,493	)
Investment in Sabine Biofuels		(9,125	)		—			—			(9,125	)		—			—			(9,125	)
Cash received in merger with Frontier		182			871,976			—			872,158			—			—			872,158
Purchases of marketable securities		(370,042	)		—			—			(370,042	)		—			—			(370,042	)
Sales and maturities of marketable securities		194,386			—			—			194,386			—			—			194,386

		(190,655	)		752,641			(117,339	)		444,647			(31,493	)		—			413,154

Cash flows from financing activities
Net borrowings under credit agreements – HEP		—			—			—			—			43,000			—			43,000
Repayments under financing obligation		—			(857	)		—			(857	)		—			—			(857	)
Purchase of treasury stock		(38,955	)		—			—			(38,955	)		—			—			(38,955	)
Principle tender on 8.5% senior notes		(15	)		—			—			(15	)		—			—			(15	)
Contribution from joint venture partner		—			(50,500	)		78,000			27,500			—			—			27,500
Dividends		(129,377	)		—			—			(129,377	)		—			—			(129,377	)
Distributions to noncontrolling interest		—			—			—			—			(67,963	)		30,034			(37,929	)
Excess tax benefit from equity based compensation		1,399			—			—			1,399			—			—			1,399
Purchase of units for HEP restricted grants		—			—			—			—			(1,641	)		—			(1,641	)
Deferred financing costs		(8,574	)		—			—			(8,574	)		(3,150	)		—			(11,724	)

		(175,522	)		(51,357	)		78,000			(148,879	)		(29,754	)		30,034			(148,599	)

Cash and cash equivalents
Increase (decrease) for the period		1,324,749			17,759			9,851			1,352,359			1,399			—			1,353,758
Beginning of period		230,082			(9,035	)		7,651			228,698			403			—			229,101

End of period	$	1,554,831		$	8,724		$	17,502		$	1,581,057		$	1,802		$	—		$	1,582,859


Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2010	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			HollyFrontier Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	168,984		$	22,377		$	5,294		$	196,655		$	66,129		$	(26,816	)	$	235,968
Cash flows from investing activities
Additions to properties, plants and equipment		(1,498	)		(74,890	)		(43,497	)		(119,885	)		—			—			(119,885	)
Additions to properties, plants and equipment – HEP		—			—			—			—			(43,580	)		35,526			(8,054	)
Proceeds from sale of assets		—			39,040			—			39,040			—			(39,040	)		—

		(1,498	)		(35,850	)		(43,497	)		(80,845	)		(43,580	)		(3,514	)		(127,939	)

Cash flows from financing activities
Net repayments under credit agreements – HEP		—			—			—			—			(49,000	)		—			(49,000	)
Proceeds from issuance of senior notes – HEP		—			—			—			—			147,540			—			147,540
Repayments under financing obligation		—			(1,067	)		—			(1,067	)		—			307			(760	)
Purchase of treasury stock		(1,308	)		—			—			(1,308	)		—			—			(1,308	)
Contribution from joint venture partner		—			(28,500	)		38,000			9,500			—			—			9,500
Dividends		(23,889	)		—			—			(23,889	)		—			—			(23,889	)
Purchase price in excess of transferred basis in assets		—			53,960			—			53,960			(57,474	)		3,514			—
Distributions to noncontrolling interest		—			—			—			—			(62,648	)		26,509			(36,139	)
Excess tax expense from equity based compensation		(1,313	)		—			—			(1,313	)		—			—			(1,313	)
Deferred financing costs		(2,628	)		—			—			(2,628	)		(493	)		—			(3,121	)
Purchase of units for HEP restricted grants		—			—			—			—			(2,276	)		—			(2,276	)
Issuance of common stock upon exercise of options		61			—			—			61			—			—			61

		(29,077	)		24,393			38,000			33,316			(24,351	)		30,330			39,295

Cash and cash equivalents
Increase (decrease) for the period
Beginning of period		138,409			10,920			(203	)		149,126			(1,802	)		—			147,324
		127,560			(12,477	)		7,005			122,088			2,508			—			124,596

End of period	$	265,969		$	(1,557	)	$	6,802		$	271,214		$	706		$	—		$	271,920