DALLAS, TX -- Holly Corporation released its second quarter results on Thursday. For the quarter, net income was $66.2 million compared to $14.6 million for the second quarter of 2009.
"We are pleased with our second quarter results," said Matthew Clifton, Chairman of the Board and Chief Executive Officer of Holly. "Year over year industry-wide increases in distillate cracks and improvements in our Rocky Mountain and Southwest product values relative to benchmark Gulf Coast prices combined with a substantial contribution from our 2009 Tulsa refinery acquisitions drove the strong increase in profitability in the quarter compared to the second quarter of 2009."
In a news release, Holly Corporation said the company's Tulsa refineries accounted for a little more than 50% of the increase in year over year earnings.
Holly Corporation owns two refineries in Tulsa. The former Sunoco refinery was acquired by Holly 2009 in June and in December 2009 the company acquired the former Sinclair refinery.
Holly says the refineries operated in an integrated manner during the quarter utilizing an existing third-party pipeline to move oil between the facilities for upgrading.
The release says full integration is expected in the first quarter of 2011 when the company expects to have installed additional pipelines between the two facilities.
During the 2nd quarter, the Tulsa facilities processed 118,000 barrels of crude oil per day.
Operating costs and expenses for the three- and the six-month periods that ended June 30, 2010 increased mainly due to the inclusion of costs attributable to the operations of the Tulsa refinery facilities.