Refining Operations - HollyFrontier aims to operate its refineries at a crude charge rate of 450,000 to 470,000 barrels per day[37] - HollyFrontier targets mid-cycle Refining EBITDA of $1.0 billion to $1.2 billion per year[132] - HollyFrontier is implementing cost-saving initiatives to achieve a target operating expense of $5.50 per throughput barrel[40] - HollyFrontier has increased its refining capacity by 15% since 2015[27] Holly Energy Partners (HEP) - HollyFrontier owns 59% of the LP Interest in HEP[15] - Over 80% of HEP's revenues are tied to long-term contracts and minimum volume commitments[15, 62] - HEP is targeting a distribution coverage ratio of 1.0 to 1.2x[62] Lubricants & Specialty Products - HollyFrontier Lubricants & Specialty Products (HF LSP) is the largest North American group III base oil producer[15] - HF LSP's Rack Forward business consistently generates EBITDA margins of 10-15%[114] - HF LSP targets Rack Forward EBITDA of $175 million to $200 million in 2018[135] Financials & Valuation - HollyFrontier's sum-of-the-parts valuation estimates a total share price of $60, based on a $37 valuation for Refining & Marketing, $12 for Holly Energy Partners, and $11 for Lubricants & Specialty Products[129] - HollyFrontier targets a net debt to EBITDA ratio of 1x (excluding HEP)[141]

Core Viewpoint - Calumet, Inc. has successfully completed the sale of its industrial assets related to the Royal Purple® business for $110 million in cash, aiming to reduce debt and streamline operations [1][4]. Group 1: Sale Details - The sold assets include Royal Purple's high-performance synthetic industrial product line, which encompasses industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils, along with an exclusive license for industrial applications [2]. - In the year ending December 31, 2024, the industrial segment of the Royal Purple® business generated approximately $29 million in total sales [2]. Group 2: Retained Assets - Calumet retains ownership of the Porter, Texas manufacturing site and the consumer segment of the Royal Purple® business, which serves various automotive product applications through a multi-channel strategy [3]. - Key brands within the consumer segment include High Performance Motor Oil, HPS®, HMX®, Max EZ®, Max Gear®, Max-Clean®, XPR®, and Duralec Super™ [3]. Group 3: Financial Strategy - The proceeds from the asset sale will primarily be used to pay down debt, indicating a strategic move towards financial stability [4]. - The company has also terminated its at-the-market equity offering program, which was announced in January 2025 but was never utilized [4].