HollyFrontier Corporation (NYSE:HFC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 08:30 am ET

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HollyFrontier Corporation (NYSE:HFC) Q2 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Welcome to the HollyFrontier Corporation's Second Quarter 2020 Conference Call and Webcast. Hosting the call today from HollyFrontier is Mike Jennings, President and Chief Executive Officer. He is joined by Rich Voliva, Executive Vice President and Chief Financial Officer; Tim Go, Executive Vice President and Chief Operating Officer; and Tom Creery, President, Refining and Marketing. [Operator Instructions] Please note that this conference is being recorded.

It is now my pleasure to turn the floor over to Craig Biery, Director of Investor Relations. Craig, you may begin.

Executive
Craig Biery

Thank you, Calandra.

Good morning, everyone, and welcome to HollyFrontier Corporation's Second Quarter 2020 Earnings Call. This morning, we issued a press release announcing results for the quarter ending June 30, 2020. If you would like a copy of the press release, you may find one on our website at hollyfrontier.com.

Before we proceed with remarks, please note the safe harbor disclosure statement in today's press release. In summary, it says statements made regarding management's expectations, judgments or predictions are forward-looking statements. These statements are intended to be covered under the safe harbor provisions of federal securities laws. There are many factors that could cause results to differ from expectations, including those noted in our SEC filings.

The call also may include discussion of non-GAAP measures. Please see the press release for reconciliations to GAAP financial measures. Also, please note any time-sensitive information provided on today's call may no longer be accurate at the time of any webcast replay or rereading of the transcript.

And with that, I'll turn the call over to Mike Jennings.

Executive
Michael C. Jennings

Thank you, Craig.

Good morning, everyone. Before we discuss the quarter's results and updates, I'd like to briefly address the COVID-19 pandemic.

Along with the rest of the HollyFrontier team, I want to wish each of you and your families and loved ones good health and well-being during these trying times. Companies across the country are adapting to this new normal to ensure the sustainability and continuity of business, and it's no different for us here at HollyFrontier.

With the health and safety of our employees as a top priority, we've continued several initiatives, including limiting on-site staff at our facilities to essential operational personnel only while using a work-from-home policy for certain employees and restricting travel. These actions, along with the hard work and dedication of our employees, have enabled safe and reliable operations across all of our business segments. We will continue to monitor COVID-19 developments to properly address these policies going forward.

Turning to our second quarter results. Today, we reported a net loss attributable to HollyFrontier shareholders of $177 million or a loss of $1.09 per diluted share. These results reflect special items that collectively decreased net income by $136 million. Excluding these items, net income for the second quarter was a negative $40 million or a loss of $0.25 per diluted share versus adjusted net income of $372 million or $2.18 per diluted share for the same period in 2019.

Adjusted EBITDA for the period