Document Entity Information
Document Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | HOLLY ENERGY PARTNERS LP | ||
Entity Central Index Key | 1,283,140 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 58,657,048 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,300,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 15,013,000 | $ 2,830,000 | |
Accounts receivable: | |||
Trade | 8,593,000 | 6,737,000 | |
Affiliates | 32,482,000 | 33,392,000 | |
Total accounts receivable | 41,075,000 | 40,129,000 | |
Prepaid and other current assets | 5,054,000 | 4,383,000 | |
Total current assets | 61,142,000 | 47,342,000 | |
Properties and equipment, net | 1,049,870,000 | 1,018,598,000 | [1] |
Transportation agreements, net | 73,805,000 | 80,703,000 | |
Goodwill | 256,498,000 | 256,498,000 | |
Equity Method Investments | 79,438,000 | 24,478,000 | |
Other assets | 13,703,000 | 11,462,000 | [1] |
Total assets | 1,534,456,000 | 1,439,081,000 | [1] |
Accounts payable: | |||
Trade | 10,948,000 | 16,384,000 | [1] |
Affiliates | 11,635,000 | 5,239,000 | |
Total accounts payable | 22,583,000 | 21,623,000 | [1] |
Accrued interest | 6,752,000 | 6,615,000 | |
Deferred revenue | 12,016,000 | 12,432,000 | |
Accrued property taxes | 3,764,000 | 2,703,000 | |
Other current liabilities | 3,809,000 | 4,571,000 | |
Total current liabilities | 48,924,000 | 47,944,000 | [1] |
Long-term debt | 1,008,752,000 | 866,986,000 | [1] |
Other long-term liabilities | 20,675,000 | 18,145,000 | |
Deferred Revenue | 39,063,000 | 29,392,000 | |
Class B unit | 33,941,000 | 26,793,000 | |
Partners’ equity: | |||
Common unitholders (58,657,048 units issued and outstanding at December 31, 2015 and 2014) | 428,019,000 | 468,813,000 | |
General partner interest (2% interest) | (139,537,000) | (114,028,000) | [1] |
Accumulated other comprehensive income (loss) | 190,000 | (46,000) | |
Total partners’ equity | 288,672,000 | 354,739,000 | [1] |
Noncontrolling interest | 94,429,000 | 95,082,000 | |
Total Equity | 383,101,000 | 449,821,000 | [1],[2] |
Total liabilities and equity | $ 1,534,456,000 | $ 1,439,081,000 | [1] |
[1] | (1) Retrospectively adjusted as described in Notes 2 and 7. | ||
[2] | (1) Retrospectively adjusted as described in Note 2. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Partners' Equity: | ||
Common units issued | 58,657,048 | 58,657,048 |
Common units outstanding | 58,657,048 | 58,657,048 |
General partner interest | 2.00% |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Affiliates | $ 292,221 | $ 275,196 | $ 252,368 |
Third parties | 66,654 | 57,349 | 52,814 |
Total revenues | 358,875 | 332,545 | 305,182 |
Operating costs and expenses: | |||
Operations (exclusive of depreciation and amortization) | 103,308 | 104,801 | 99,444 |
Depreciation and amortization | 62,852 | 62,166 | 65,423 |
General and administrative | 12,556 | 10,824 | 11,749 |
Total operating costs and expenses | 178,716 | 177,791 | 176,616 |
Operating income | 180,159 | 154,754 | 128,566 |
Other income (expense): | |||
Equity in earnings of equity method investments | 4,803 | 2,987 | 2,826 |
Interest expense | (37,418) | (36,101) | (47,010) |
Interest Income | 526 | 3 | 161 |
Loss on early extinguishment of debt | 0 | (7,677) | 0 |
Gain on sale of assets | 375 | 0 | 1,810 |
Other Income | 111 | 82 | 61 |
Total other income (expense) | (31,603) | (40,706) | (42,152) |
Income before Income Taxes | 148,556 | 114,048 | 86,414 |
State income tax expense | (228) | (235) | (333) |
Net Income | 148,328 | 113,813 | 86,081 |
Allocation of net income (loss) attributable to noncontrolling interest | (11,120) | (8,288) | (6,632) |
Net income attributable to Holly Energy Partners | 137,208 | 105,525 | 79,449 |
General partner interest in net income, including incentive distributions | (42,337) | (34,667) | (27,523) |
Limited partners’ interest in net income | $ 94,871 | $ 70,858 | $ 51,926 |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 1.60 | $ 1.20 | $ 0.88 |
Weighted average limited partners’ units outstanding | 58,657 | 58,657 | 58,246 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 148,328 | $ 113,813 | $ 86,081 |
Change in fair value of cash flow hedging instruments | (1,864) | (2,104) | 1,194 |
Amortization of unrealized loss attributable to discontinued cash flow hedge | 0 | 0 | 849 |
Reclassification adjustment to net income on partial settlement of cash flow hedge | 2,100 | 2,202 | 2,092 |
Other comprehensive income | 236 | 98 | 4,135 |
Comprehensive income before noncontrolling interest | 148,564 | 113,911 | 90,216 |
Allocation of comprehensive (income) loss to noncontrolling interests | (11,120) | (8,288) | (6,632) |
Comprehensive income attributable to Holly Energy Partners | $ 137,444 | $ 105,623 | $ 83,584 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Cash flows from operating activities | |||||
Net income | $ 148,328 | $ 113,813 | $ 86,081 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 62,852 | 62,166 | 65,423 | ||
Gain on sale of assets | (375) | 0 | (1,810) | ||
Amortization of deferred charges | 1,928 | 1,820 | 2,970 | ||
Amortization of restricted and performance units | 3,484 | 3,539 | 3,575 | ||
Equity in earnings of equity investments, net of distributions | (122) | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 7,677 | 0 | ||
(Increase) decrease in operating assets: | |||||
Accounts receivable – trade | (1,820) | (1,676) | 2,065 | ||
Accounts receivable – affiliates | 1,419 | (3,717) | 1,919 | ||
Prepaid and other current assets | (626) | (510) | (255) | ||
Increase (decrease) in operating liabilities: | |||||
Accounts payable – trade | (1,996) | 2,469 | 3,365 | ||
Accounts payable – affiliates | 6,396 | (3,245) | 3,821 | ||
Accrued interest | 137 | (3,624) | 13 | ||
Deferred revenue | 9,255 | 6,173 | 15,255 | ||
Accrued property taxes | 1,061 | 100 | (85) | ||
Other current liabilities | (499) | 1,819 | (45) | ||
Other, net | 3,572 | (164) | 788 | ||
Net cash provided by operating activities | 232,994 | 186,640 | 183,080 | ||
Cash flows from investing activities | |||||
Additions to properties and equipment | (67,016) | (109,693) | [1] | (56,613) | [1] |
Purchase of El Dorado crude tanks | (27,500) | 0 | 0 | ||
Purchase of investment in Frontier Pipeline | (55,032) | 0 | 0 | ||
Proceeds from sale of assets | 1,279 | 0 | 2,731 | ||
Distributions in Excess of Equity in Earnings of Equity Investments | 194 | 263 | 300 | ||
Net cash used for investing activities | (148,075) | (109,430) | [1] | (53,582) | [1] |
Cash flows from financing activities | |||||
Borrowings under credit agreement | 973,900 | 642,300 | 310,600 | ||
Repayments of credit agreement borrowings | (832,900) | (434,300) | (368,600) | ||
Proceeds from issuance of common units | 0 | 0 | 73,444 | ||
Redemption of senior notes | 0 | (156,188) | 0 | ||
Contribution from general partner | 1,499 | ||||
Distributions to HEP unitholders | (169,063) | (154,670) | (139,486) | ||
Distributions to noncontrolling interest | (4,625) | (4,025) | (3,125) | ||
Contributions from HFC for El Dorado Operating acquisition | 27,623 | 29,734 | [1],[2] | 4,512 | [1],[2] |
Distributions to HFC for El Dorado Operating acquisition | (62,000) | 0 | 0 | ||
Purchase of units for incentive grants | (3,555) | (3,577) | (5,634) | ||
Deferred financing costs | (962) | (9) | (1,344) | ||
Other | (1,154) | 3 | (249) | ||
Net cash used by financing activities | (72,736) | (80,732) | [1] | (128,383) | [1] |
Cash and cash equivalents | |||||
Increase (decrease) for the year | 12,183 | (3,522) | 1,115 | ||
Beginning of period | 2,830 | 6,352 | 5,237 | ||
End of period | $ 15,013 | $ 2,830 | $ 6,352 | ||
[1] | (1) Retrospectively adjusted as described in Note 2. | ||||
[2] | (1) Retrospectively adjusted as described in Note 2. |
Consolidated Statement of Partn
Consolidated Statement of Partners' Equity - USD ($) $ in Thousands | Total | Common Units | General Partner Interest | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | |||
Beginning balance at Dec. 31, 2012 | $ 452,987 | $ 502,809 | $ (145,746) | $ (4,279) | $ 100,203 | |||
Increase (Decrease) in Partners' Equity [Roll Forward] | ||||||||
Stock Issued During Period, Value, Other | 73,444 | 73,444 | ||||||
Capital contribution | 1,499 | 1,499 | 0 | |||||
Distributions to HEP unitholders | (139,486) | (112,039) | (27,447) | |||||
Distributions to noncontrolling interests | (3,125) | (3,125) | ||||||
Contributions from HFC for El Dorado Operating acquisition | [2] | 4,512 | [1] | 4,512 | ||||
Purchase of Units for Incentive Grants | (5,313) | (5,313) | ||||||
Amortization of restricted and performance units | 3,575 | 3,575 | ||||||
Class B unit accretion | (6,221) | (6,097) | (124) | |||||
Other | (511) | (248) | (263) | |||||
Net income | 86,081 | 60,016 | ||||||
Net Income (Loss) Allocated to General Partners | (27,523) | 25,655 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 6,632 | 410 | ||||||
Other comprehensive income | 4,135 | 4,135 | ||||||
Ending balance at Dec. 31, 2013 | 471,577 | [2] | 516,147 | (141,914) | [2] | (144) | 97,488 | |
Increase (Decrease) in Partners' Equity [Roll Forward] | ||||||||
Distributions to HEP unitholders | (154,670) | (119,944) | (34,726) | |||||
Distributions to noncontrolling interests | (4,025) | (4,025) | ||||||
Contributions from HFC for El Dorado Operating acquisition | [2] | 29,734 | [1] | 29,734 | ||||
Purchase of Units for Incentive Grants | (3,577) | (3,577) | ||||||
Amortization of restricted and performance units | 3,539 | 3,539 | ||||||
Class B unit accretion | (6,668) | (6,534) | (134) | |||||
Net income | 113,813 | 79,182 | ||||||
Net Income (Loss) Allocated to General Partners | (34,667) | 33,012 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 8,288 | 1,619 | ||||||
Other comprehensive income | 98 | 98 | ||||||
Ending balance at Dec. 31, 2014 | 449,821 | [2],[3] | 468,813 | (114,028) | [2] | (46) | 95,082 | |
Increase (Decrease) in Partners' Equity [Roll Forward] | ||||||||
Distributions to HEP unitholders | (169,063) | (127,152) | (41,911) | |||||
Distributions to noncontrolling interests | (4,625) | (4,625) | ||||||
Contributions from HFC for El Dorado Operating acquisition | 27,623 | 27,623 | ||||||
Purchase of Units for Incentive Grants | (3,555) | (3,555) | ||||||
Amortization of restricted and performance units | 3,484 | 3,484 | ||||||
Class B unit accretion | (7,148) | (7,005) | (143) | |||||
Net income | 148,328 | 93,434 | ||||||
Net Income (Loss) Allocated to General Partners | (42,337) | 50,922 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 11,120 | 3,972 | ||||||
Other comprehensive income | 236 | 236 | ||||||
Distribution To HFC for purchase of El Dorado Operating | (62,000) | (62,000) | ||||||
Ending balance at Dec. 31, 2015 | $ 383,101 | $ 428,019 | $ (139,537) | $ 190 | $ 94,429 | |||
[1] | (1) Retrospectively adjusted as described in Note 2. | |||||||
[2] | (1) Retrospectively adjusted as described in Note 2. | |||||||
[3] | (1) Retrospectively adjusted as described in Notes 2 and 7. |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Holly Energy Partners, L.P. (“HEP”) together with its consolidated subsidiaries, is a publicly held master limited partnership which is 39% owned (including the 2% general partner interest) by HollyFrontier Corporation (“HFC”) and its subsidiaries. We commenced operations on July 13, 2004, upon the completion of our initial public offering. In these consolidated financial statements, the words “we,” “our,” “ours” and “us” refer to HEP unless the context otherwise indicates. We operate in one reportable segment which represents the aggregation of our petroleum product and crude pipelines business and terminals, tankage and loading rack facilities and refinery processing units. We own and operate petroleum product and crude oil pipelines, terminal, tankage and loading rack facilities and refinery processing units that support HFC’s 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, we own a 75% interest in the UNEV Pipeline, LLC (“UNEV”), which owns a 427 -mile, 12 -inch refined products pipeline running from Woods Cross, Utah to Las Vegas, Nevada (the “UNEV Pipeline”), product terminals near Cedar City, Utah and Las Vegas, Nevada and related assets, a 50% interest in Frontier Pipeline Company, which owns a 289 -mile crude oil pipeline from Casper, Wyoming to Frontier Station, Utah (the "Frontier Pipeline") and a 25% interest in SLC Pipeline LLC, which owns a 95 -mile intrastate crude oil pipeline system (the “SLC Pipeline”) that serves refineries in the Salt Lake City, Utah area. We generate revenues by charging tariffs for transporting petroleum products and crude oil through our pipelines, by charging fees for terminalling and storing refined products and other hydrocarbons, providing other services at our storage tanks and terminals and by charging fees for processing hydrocarbon feedstocks through our refinery processing units. We do not take ownership of products that we transport, terminal, store or process, and therefore, we are not exposed directly to changes in commodity prices. Principles of Consolidation and Common Control Transactions The consolidated financial statements include our accounts and those of subsidiaries and joint ventures that we control through a more than 50% ownership interest. All significant inter-company transactions and balances have been eliminated. Most of our asset acquisitions from HFC occurred while we were a consolidated variable interest entity of HFC. Therefore, as an entity under common control with HFC, we recorded these assets on our balance sheets at HFC's historical basis instead of our purchase price or fair value. Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The carrying amounts reported on the balance sheets approximate fair value due to the short-term maturity of these instruments. Accounts Receivable The majority of the accounts receivable are due from affiliates of HFC, Alon or independent companies in the petroleum industry. Credit is extended based on evaluation of the customer's financial condition and, in certain circumstances, collateral such as letters of credit or guarantees, may be required. Credit losses are charged to income when accounts are deemed uncollectible and historically have been minimal. Properties and Equipment Properties and equipment are stated at cost. Properties and equipment acquired from HFC while under common control of HFC are stated at HFC's historical basis. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 25 years for terminal facilities and tankage, 25 to 32 years for pipelines and 5 to 10 years for corporate and other assets. We depreciate assets acquired under capital leases over the lesser of the lease term or the economic life of the assets. Maintenance, repairs and minor replacements are expensed as incurred. Costs of replacements constituting improvements are capitalized. Transportation Agreements The transportation agreement assets are stated at acquisition date fair value and are being amortized over the periods of the agreements using the straight-line method. See Note 5 for additional information on our transportation agreements. Goodwill and Long-Lived Assets Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not amortized. We test goodwill at the reporting unit level for impairment annually and between annual tests if events or changes in circumstances indicate the carrying amount may exceed fair value. Recoverability is determined by comparing the estimated fair value of a reporting unit to the carrying value, including the related goodwill, of that reporting unit. We use the present value of the expected future net cash flows and market multiple analyses to determine the estimated fair values of the reporting units. The impairment test requires the use of projections, estimates and assumptions as to the future performance of our operations. Actual results could differ from projections resulting in revisions to our assumptions, and if required, recognizing an impairment loss. We evaluate long-lived assets, including finite intangible assets, for potential 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, if any, to be recorded is equal to the amount by which a long-lived asset's carrying value exceeds its fair value. There have been no impairments to goodwill or our long-lived assets as of December 31, 2015 . Investment in Equity Method Investments We account for our 25% SLC Pipeline and 50% Frontier Pipeline joint venture interests using the equity method of accounting, whereby we record our pro-rata share of earnings of the two companies, and contributions to and distributions from the two companies as adjustments to our investment balances. As of December 31, 2015 , our underlying equity in the SLC Pipeline was $57.7 million compared to our recorded investment balance of $24.3 million , a difference of $33.4 million , and our underlying equity in Frontier Pipeline was $12.6 million compared to our recorded investment balance of $55.2 million , a difference of $42.6 million . We are amortizing the differences as adjustments to our pro-rata share of earnings over the useful lives of the underlying assets of these joint ventures. Asset Retirement Obligations We record legal obligations associated with the retirement of certain of our long-lived assets that result from the acquisition, construction, development and/or the normal operation of our long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded in the period in which the liability is incurred and when a reasonable estimate of the fair value of the liability can be made. For our pipeline assets, the right-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon cessation of the pipeline service. Additionally, management is unable to predict when, or if, our pipelines and related facilities would become obsolete and require decommissioning. Accordingly, we have recorded no liability or corresponding asset related to an asset retirement obligation for the majority of our pipelines as both the amounts and timing of such potential future costs are indeterminable. For our remaining assets, at December 31, 2015 and 2014 , we have asset retirement obligations of $7.6 million and $6.8 million , respectively, that are recorded under “Other long-term liabilities” in our consolidated balance sheets. Class B Unit Under the terms of the transaction to acquire HFC's 75% interest in UNEV, we issued HFC a Class B unit comprising a noncontrolling equity interest in a wholly-owned subsidiary subject to redemption to the extent that HFC is entitled to a 50% interest in our share of annual UNEV earnings before interest, income taxes, depreciation, and amortization above $30 million beginning July 1, 2016, and ending in June 2032, subject to certain limitations. Such contingent redemption payments are limited to the unredeemed value of the Class B Unit. However, to the extent earnings thresholds are not achieved, no redemption payments are required. Contemporaneously with this transaction, HFC (our general partner) agreed to forego its right to incentive distributions of up to $1.25 million per quarter over twelve consecutive quarterly periods, beginning with the distributions paid in the fourth quarter of 2012, and up to an additional four quarters if HFC's Woods Cross Refinery expansion did not attain certain thresholds. HFC expects to complete this expansion in the first quarter of 2016. Therefore, we expect HEP Logistics' waiver of its right to incentive distributions of $1.25 million per quarter to end in the second quarter of 2016. The Class B unit increases by the amount of each foregone incentive distribution and by a 7% factor compounded annually on the outstanding unredeemed balance through its expiration date. At our option, we may redeem, in whole or in part, the Class B unit at the current unredeemed value based on the calculation described. The Class B unit had a carrying value of $33.9 million at December 31, 2015 , and $26.8 million at December 31, 2014 . Revenue Recognition Revenues are recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. Billings to customers for their obligations under their quarterly minimum revenue commitments are recorded as deferred revenue liabilities if the customer has the right to receive future services for these billings. The revenue is recognized at the earlier of: • the customer receiving the future services provided by these billings, • the period in which the customer is contractually allowed to receive the services expires, or • our determination that we will not be required to provide services within the allowed period. We determine that we will not be required to provide services within the allowed period when, based on current and projected shipping levels, our pipeline systems will not have the necessary capacity to enable a customer to exceed its minimum volume levels to such a degree as to utilize the shortfall credit within its respective contractual shortfall make-up period. We have additional revenues under an operating lease to a third party of an interest in the capacity of one of our pipelines. As of December 31, 2015 , billings to customers under their minimum revenue commitments per the terms of long-term throughput agreements expiring in 2019 through 2030 and the third party operating lease require minimum annualized payments to us in the aggregate of $2.3 billion including $300 million for the years ending December 31, 2016, 2017, and 2018, $275 million for the year ending December 31, 2019 and $228 million for the year ending December 31, 2020. These agreements provide for increases in the minimum revenue guarantees annually for increases in the PPI or the FERC index, with certain contracts having provisions that limit the level of the rate increases. We have other cost reimbursement provisions in our throughput / storage agreements providing that customers (including HFC) reimburse us for certain costs. Such reimbursement receipts are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement. Taxes billed and collected from our pipeline and terminal customers are recorded on a net basis with no effect on net income. Environmental Costs Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. 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 require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. At December 31, 2015 and 2014 , we had accrued liabilities, measured on an undiscounted basis, net of expected recoveries from indemnifying parties, for environmental remediation obligations of $7.7 million and $5.2 million respectively, of which $1.5 million and $2.3 million , respectively, were classified as other current liabilities. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HFC, HFC has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HFC occurring or existing prior to the date of such transfers. We have an environmental agreement with Alon with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Alon in 2005, under which Alon will indemnify us subject to certain monetary and time limitations. Environmental costs recoverable through insurance, indemnification agreements or other sources are included in other assets to the extent such recoveries are considered probable. Income Tax We are subject to the Texas margin tax that is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax. We are organized as a pass-through entity for federal income tax purposes. As a result, our partners are responsible for federal income taxes based on their respective share of taxable income. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under the partnership agreement. Net Income per Limited Partners' Unit We use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the year. Net income per unit applicable to limited partners is computed by dividing limited partners' interest in net income, after adjusting for the allocation of net income or loss attributable to the predecessor, the allocation of net income or loss attributable to noncontrolling interests and the general partner's 2% interest and incentive distributions and other participating securities, by the weighted-average number of outstanding common units and other dilutive securities. Other participating securities and dilutive securities are not significant. New Accounting Pronouncements Revenue Recognition In May 2014, an accounting standard update 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 are evaluating the impact of this standard. Consolidation In February 2015, the FASB issued a standard that modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The standard is effective for interim and annual periods beginning after December 15, 2015, and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. At this time, we are evaluating the potential impact of this standard on our financial statements, as well as the available transition methods. Debt Issuance Costs In April 2015, an accounting standard update was issued requiring debt issuance costs to be presented as a direct deduction from the carrying amount of the debt liability. We early adopted this standard as of December 31, 2015, and reclassified $0.5 million and $0.6 million for the years ended December 31, 2015 and December 31, 2014, respectively. Financial Assets and Liabilities In January 2016, an accounting standard update was issued requiring changes in the accounting and disclosures for financial instruments. This standard will become effective beginning with our 2018 reporting year. We are evaluating the impact of this standard. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On March 6, 2015, we completed the acquisition of an existing crude tank farm adjacent to HFC's El Dorado Refinery from an unrelated third-party for $27.5 million in cash. Substantially all of the purchase price was allocated to properties and equipment and no goodwill was recorded. HFC is the main customer of this crude tank farm. On August 31, 2015, we purchased a 50% interest in Frontier Pipeline Company, which owns the Frontier Pipeline from an affiliate of Enbridge, Inc. for cash consideration of $55.0 million . Frontier Pipeline will continue to be operated by an affiliate of Plains All American Pipeline, L.P., which owns the remaining 50% interest. The Frontier Pipeline has a 72,000 bpd capacity and supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection to the SLC Pipeline. On November 1, 2015, we acquired from HollyFrontier El Dorado Refining LLC, a wholly owned subsidiary of HFC, all the outstanding membership interests in El Dorado Operating LLC, which owns the newly constructed naphtha fractionation and hydrogen generation units at HFC’s El Dorado refinery for cash consideration of $62.0 million . In connection with this transaction, we entered into 15-year tolling agreements containing minimum quarterly throughput commitments from HFC that provide minimum annualized revenues of $15.3 million . We are a consolidated variable interest entity of HFC. Therefore, this transaction was recorded as a transfer between entities under common control and reflect HFC's carrying basis in El Dorado Operating's assets and liabilities. We have retrospectively adjusted our historical financial results for all periods to include El Dorado Operating for the periods we were under common control of HFC. The 2014 presentation was revised to reflect increases of $38.1 million in properties and equipment, $3.7 million in trade accounts payable, and $34.4 million in general partner interest. We also adjusted our 2013 presentation to reflect increases of $4.5 million in general partner interest. The 2014 and 2013 consolidated statement of cash flows reflect these changes in cash flows from investing activities and cash flows from financing activities. The units were under construction in 2014 and 2013 , and therefore, there were no operations. On February 22, 2016, HFC obtained a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) in a non-monetary exchange for a 20-year terminalling services agreement, whereby, a subsidiary of Magellan Midstream Partners (“Magellan”) will provide terminalling services for all HFC products originating in Artesia, New Mexico that require terminalling in or through El Paso, Texas. Osage is the owner of the Osage pipeline, a 135-mile pipeline that transports crude oil from Cushing, Oklahoma to HFC’s El Dorado Refinery in Kansas and also has a connection to the Jayhawk pipeline that services the CHS refinery in McPherson, Kansas. The Osage pipeline is the primary pipeline that supplies HFC's El Dorado Refinery with crude oil. Concurrent with this transaction, we entered into a non-monetary exchange with HFC, whereby we received HFC’s interest in Osage in exchange for our El Paso terminal. Under this exchange, we have also agreed to build two connections on our south products pipeline system that will permit HFC access to Magellan’s El Paso terminal. Effective upon the closing of this exchange, we are the named operator of the Osage pipeline and are working to transition into that role. We are a consolidated variable interest entity of HFC. Therefore, this transaction will be recorded as a transfer between entities under common control and reflect HFC's carrying basis of its 50% membership interest in Osage as well as our carrying basis in the El Paso terminal. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt and interest rate swaps. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Debt consists of outstanding principal under our revolving credit agreement (which approximates fair value as interest rates are reset frequently at current interest rates) and our fixed interest rate senior notes. 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 and estimated fair values of our senior notes and interest rate swaps were as follows: December 31, 2015 December 31, 2014 Financial Instrument Fair Value Input Level Carrying Value Fair Value Carrying Value Fair Value (In thousands) Assets: Interest rate swaps Level 2 $ 304 $ 304 $ 1,019 $ 1,019 Liabilities: 6.5% Senior Notes Level 2 $ 296,752 $ 295,500 $ 295,986 $ 291,000 Interest rate swaps Level 2 114 114 1,065 1,065 $ 296,866 $ 295,614 $ 297,051 $ 292,065 Level 2 Financial Instruments Our senior notes and interest rate swaps are measured at fair value using Level 2 inputs. The fair value of the senior notes is based on market values provided by a third-party bank, which were derived using market quotes for similar type debt instruments. The fair value of our interest rate swaps is based on the net present value of expected future cash flows related to both variable and fixed rate legs of the swap agreement. This measurement is computed using the forward London Interbank Offered Rate (“LIBOR”) yield curve, a market-based observable input. See Note 7 for additional information on these instruments. |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | Properties and Equipment The carrying amounts of our properties and equipment after retrospective adjustment as per Note 2 are as follows: December 31, December 31, (In thousands) Pipelines, terminals and tankage $ 1,219,973 $ 1,137,157 Land and right of way 66,215 64,458 Refinery assets 63,336 1,347 Construction in progress 28,249 94,347 Other 22,200 21,289 1,399,973 1,318,598 Less accumulated depreciation 350,103 300,000 $ 1,049,870 $ 1,018,598 On March 6, 2015, we completed the acquisition of an existing crude tank farm adjacent to HFC's El Dorado Refinery from an unrelated third-party for $27.5 million in cash. Substantially all of the purchase price was allocated to properties and equipment. On November 1, 2015, we acquired from a wholly owned subsidiary of HFC, all the outstanding membership interests in El Dorado Operating, which owns the newly constructed naphtha fractionation and hydrogen generation units at HFC’s El Dorado refinery. We have retrospectively adjusted our historical financial results for all periods to include El Dorado Operating for the periods we were under common control of HFC. The 2014 presentation was revised to reflect increases of $38.1 million in properties and equipment, which is included within construction in progress. We capitalized $0.8 million and $1.5 million in interest related to construction projects during the years ended December 31, 2015 and 2014 , respectively. Depreciation expense was $55.4 million , $54.7 million , and $58.1 million for the years ended December 31, 2015, 2014 and 2013 , respectively, and includes depreciation of assets acquired under capital leases. Asset abandonment charges of $1.1 million , $1.9 million and $6.2 million for assets permanently removed from service were included in depreciation expense for the years ended December 31, 2015, 2014 and 2013 , respectively. |
Transportation Agreements
Transportation Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Transportation Agreements | Transportation Agreements Our transportation agreements represent a portion of the total purchase price of certain assets acquired from Alon in 2005 and from HFC in 2008 . The Alon agreement is being amortized over 30 years ending 2035 (the initial 15 -year term of the agreement plus an expected 15 -year extension period) and the HFC agreement is being amortized over 15 years ending 2023 (the term of the HFC agreement). The carrying amounts of our transportation agreements are as follows: December 31, December 31, (In thousands) Alon transportation agreement $ 59,933 $ 59,933 HFC transportation agreement 74,231 74,231 Other 50 — 134,214 134,164 Less accumulated amortization 60,409 53,461 $ 73,805 $ 80,703 Amortization expense was $6.9 million for each of the years ended December 31, 2015, 2014 and 2013 , respectively. We have additional transportation agreements with HFC resulting from historical transactions consisting of pipeline, terminal and tankage assets contributed to us or acquired from HFC. These transactions occurred while we were a consolidated variable interest entity of HFC; therefore, our basis in these agreements is zero and does not reflect a step-up in basis to fair value. |
Employees, Retirement and Incen
Employees, Retirement and Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employees, Retirement and Incentive Plans | Employees, Retirement and Incentive Plans Direct support for our operations is provided by Holly Logistic Services, L.L.C., ("HLS"), an HFC subsidiary, which utilizes personnel employed by HFC who are dedicated to performing services for us. Their costs, including salaries, bonuses, payroll taxes, benefits and other direct costs, are charged to us monthly in accordance with an omnibus agreement that we have with HFC. These employees participate in the retirement and benefit plans of HFC. Our share of retirement and benefit plan costs was $5.4 million , $7.4 million and $7.4 million for the years ended December 31, 2015, 2014 and 2013 , respectively. These costs include retirement costs of $2.2 million , $4.4 million and $5.0 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Under HLS’s secondment agreement with HFC (the “Secondment Agreement”), certain employees of HFC are seconded to HLS to provide operational and maintenance services for certain of our processing, refining, pipeline and tankage assets at the El Dorado and Cheyenne refineries, and HLS reimburses HFC for its prorated portion of the wages, benefits, and other costs of these employees for our benefit. We have a Long-Term Incentive Plan for employees and non-employee directors who perform services for us. The Long-Term Incentive Plan consists of four components: restricted or phantom units, performance units, unit options and unit appreciation rights. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting (a significant proportion of our awards) is to expense the costs ratably over the vesting periods. As of December 31, 2015 , we have two types of incentive-based awards outstanding, which are described below. The compensation cost charged against income was $3.4 million , $3.5 million and $3.6 million for the years ended December 31, 2015, 2014 and 2013 , respectively. We currently purchase units in the open market instead of issuing new units for settlement of all unit awards under our Long-Term Incentive Plan. As of December 31, 2015 , 2,500,000 units were authorized to be granted under our Long-Term Incentive Plan, of which 1,498,749 have not yet been granted, assuming no forfeitures of the unvested units and full achievement of goals for the performance units already granted. Restricted and Phantom Units Under our Long-Term Incentive Plan, we grant restricted units to non-employee directors and selected employees who perform services for us, with most awards vesting over a period of one to three years. Although full ownership of the units does not transfer to the recipients until the units vest, the recipients have distribution and voting rights on these units from the date of grant. In addition, we previously granted phantom units to certain employees. All outstanding phantom units vested in 2015, and no phantom units are currently outstanding. Vested units were paid in common units. Full ownership of the units transferred to the recipients at vesting, and the recipients did not have voting or distribution rights on these units until they vested. The fair value of each restricted unit award is measured at the market price as of the date of grant and is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award. A summary of restricted unit and phantom unit activity and changes during the year ended December 31, 2015 , is presented below: Restricted and Phantom Units Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2015 (nonvested) 126,077 $ 33.43 Granted 65,437 34.16 Vesting and transfer of full ownership to recipients (74,108 ) 33.92 Forfeited (15,998 ) 32.84 Outstanding at December 31, 2015 (nonvested) 101,408 $ 33.63 The fair values of restricted and phantom units that were vested and transferred to recipients during the years ended December 31, 2015, 2014 and 2013 were $2.5 million , $2.7 million and $1.2 million respectively. As of December 31, 2015 , there was $2.4 million of total unrecognized compensation expense related to nonvested restricted unit grants, which is expected to be recognized over a weighted-average period of 0.5 years. For the years ended December 31, 2014 and 2013 , the grant date closing unit price applied to the number of restricted units and phantom units ultimately awarded was $33.49 and $34.66 respectively. Performance Units Under our Long-Term Incentive Plan, we grant performance units to selected executives who perform services for us. Performance units granted are payable in common units at the end of the three -year performance period based upon the growth in our distributable cash flow per common unit over the performance period. As of December 31, 2015 , estimated unit payouts for outstanding nonvested performance unit awards ranged between 100% and 167% . We granted 12,792 performance units during the year ended December 31, 2015 . Performance units granted in 2015 vest over a three-year performance period ending December 31, 2018 and are payable in HEP common units. The number of units actually earned will be based on the growth of our distributable cash flow per common unit over the performance period, and can range from 50% to 150% of the target number of performance units granted. Although common units are not transferred to the recipients until the performance units vest, the recipients have distribution rights with respect to the common units from the date of grant. The fair value of these performance units is based on the grant date closing unit price of $34.21 for the performance units granted in 2015 and will apply to the number of units ultimately awarded. For the years ended December 31, 2014 and 2013 , the weighted average grant date closing unit price applied to the number of units awarded was $33.57 and $37.90 respectively. A summary of performance unit activity and changes for the year ended December 31, 2015 , is presented below: Performance Units Units Outstanding at January 1, 2015 (nonvested) 71,245 Granted 12,792 Vesting and transfer of common units to recipients (18,167 ) Forfeited (20,376 ) Outstanding at December 31, 2015 (nonvested) 45,494 The grant date fair value of performance units vested and transferred to recipients was $0.6 million for the year ended December 31, 2015 , and $0.5 million during each of the two years ending December 31, 2014 and 2013. Based on the weighted average fair value of performance units outstanding at December 31, 2015 , of $1.7 million , there was $0.6 million of total unrecognized compensation expense related to nonvested performance units, which is expected to be recognized over a weighted-average period of 1.1 years. During the year ended December 31, 2015 , we paid $3.6 million for the purchase of our common units in the open market for the issuance and settlement of all unit awards under our Long-Term Incentive Plan. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Debt | Debt Credit Agreement In April 2015, we amended our senior secured revolving credit facility expiring in November 2018 (the “Credit Agreement”) increasing the size of the Credit Agreement from $650 million to $850 million . The 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. As of December 31, 2015, we had $138 million available borrowing capacity under the Credit Agreement. Our obligations under the Credit Agreement are collateralized by substantially all of our assets. Indebtedness under the Credit Agreement involves recourse to HEP Logistics Holdings, L.P. (“HEP Logistics”), our general partner, and is guaranteed by our material, wholly-owned subsidiaries. Any recourse to HEP Logistics would be limited to the extent of its assets, which other than its investment in us, are not significant. We may prepay all loans at any time without penalty, except for payment of certain breakage and related costs. Indebtedness under the Credit Agreement bears interest, at our option, at either (a) the reference rate as announced by the administrative agent plus an applicable margin (ranging from 0.625% to 1.50% ) or (b) at a rate equal to LIBOR plus an applicable margin (ranging from 1.625% to 2.50% ). In each case, the applicable margin is based upon the ratio of our funded debt (as defined in the Credit Agreement) to EBITDA (earnings before interest, taxes, depreciation and amortization, as defined in the Credit Agreement). The weighted-average interest rates on our Credit Agreement borrowings in effect at December 31, 2015 and 2014 , were 2.572% and 2.152% , respectively. We incur a commitment fee on the unused portion of the Credit Agreement at an annual rate ranging from 0.30% to 0.45% based upon the ratio of our funded debt to EBITDA for the four most recently completed fiscal quarters. The Credit Agreement imposes certain requirements on us with which we were in compliance as of December 31, 2015 , including: a prohibition against distribution to unitholders if, before or after the distribution, a potential default or an event of default as defined in the agreement would occur; limitations on our ability to incur debt, make loans, acquire other companies, change the nature of our business, enter into a merger or consolidation, or sell assets; and covenants that require maintenance of a specified EBITDA to interest expense ratio, total debt to EBITDA ratio and senior debt to EBITDA ratio. If an event of default exists under the Credit Agreement, the lenders will be able to accelerate the maturity of the debt and exercise other rights and remedies. Senior Notes We have $300 million in aggregate principal amount outstanding of 6.5% senior notes (the "6.5% Senior Notes") maturing March 2020. The 6.5% Senior Notes are unsecured and impose certain restrictive covenants, with which we were in compliance as of December 31, 2015 , and with which we are currently in compliance, including limitations on our 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 6.5% Senior Notes are rated investment grade by both Moody’s and Standard & Poor’s and no default or event of default exists, we will not be subject to many of the foregoing covenants. Additionally, we have certain redemption rights at varying premiums over face value under the 6.5% Senior Notes. In March 2014, we redeemed the $150 million aggregate principal amount of 8.25% Senior Notes maturing March 2018 at a redemption cost of $156.2 million , at which time we recognized a $7.7 million early extinguishment loss. We funded the redemption with borrowings under our Credit Agreement. Indebtedness under the 6.5% Senior Notes involves recourse to HEP Logistics, our general partner, and is guaranteed by our material, wholly-owned subsidiaries. However, any recourse to HEP Logistics would be limited to the extent of its assets, which other than its investment in us, are not significant. Our purchase and contribution agreements with HFC with respect to the intermediate pipelines acquired in 2005 and the crude pipelines and tankage assets acquired in 2008, restrict us from selling these pipelines and terminals acquired from HFC. Under these agreements, we are restricted from prepaying borrowings and long-term debt to outstanding balances below below $206 million prior to 2015 and $171 million prior to 2018, subject to certain limited exceptions. Debt Issuance Costs In April 2015, an accounting standard update was issued requiring debt issuance costs to be presented as a direct deduction from the carrying amount of the debt liability. We early adopted this standard as of December 31, 2015, and reclassified the December 31, 2014, amount of $0.6 million to conform with the current year's presentation. Long-term Debt The carrying amounts of our long-term debt are as follows: December 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 712,000 $ 571,000 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (3,248 ) (4,014 ) 296,752 295,986 Total long-term debt $ 1,008,752 $ 866,986 Maturities of our long-term debt are as follows: Years Ending December 31, (In thousands) 2016 $ — 2017 — 2018 712,000 2019 — 2020 300,000 Thereafter — Total $ 1,012,000 Interest Rate Risk Management We use interest rate swaps (derivative instruments) to manage our exposure to interest rate risk. As of December 31, 2015 , we have three interest rate swaps that hedge our exposure to the cash flow risk caused by the effects of LIBOR changes on $305 million of Credit Agreement advances. Our first interest rate swap effectively converts $155 million of our LIBOR based debt to fixed rate debt having an interest rate of 0.99% plus an applicable margin of 2.25% as of December 31, 2015 , which equaled an effective interest rate of 3.24% . This swap contract matures in February 2016. We have two additional interest rate swaps with identical terms which effectively convert $150 million of our LIBOR based debt to fixed rate debt having an interest rate of 0.74% plus an applicable margin of 2.25% as of December 31, 2015 , which equaled an effective interest rate of 2.99% . Both of these swap contracts mature in July 2017. We have designated these interest rate swaps as cash flow hedges. Based on our assessment of effectiveness using the change in variable cash flows method, we have determined that these interest rate swaps are effective in offsetting the variability in interest payments on $305 million of our variable rate debt resulting from changes in LIBOR. Under hedge accounting, we adjust our cash flow hedges on a quarterly basis to their fair values with the offsetting fair value adjustments to accumulated other comprehensive income (loss). Also on a quarterly basis, we measure hedge effectiveness by comparing the present value of the cumulative change in the expected future interest to be paid or received on the variable leg of our swaps against the expected future interest payments on $305 million of our variable rate debt. Any ineffectiveness is recorded directly to interest expense. As of December 31, 2015 , we had no ineffectiveness on our cash flow hedges. Prior to entering into our first swap contract (discussed above), we terminated our previous interest rate swap that prior to settlement also served to hedge our exposure to the effects of LIBOR changes on the same $155 million Credit Agreement advance. We terminated this swap at a cost of $6 million , to lock in a lower effective interest rate on this $155 million advance, which by means of the previous swap contract was effectively fixed at 6.24% at the time of termination. This cost of terminating the swap was amortized as a charge to interest expense through February 2013, the remaining term of the terminated swap contract. At December 31, 2015 , we have accumulated other comprehensive income of $190,000 that relates to our current cash flow hedging instruments. Approximately $77,861 will be transferred from accumulated other comprehensive income into interest expense as interest is paid on the underlying swap agreement over the next twelve-month period, assuming interest rates remain unchanged. Additional information on our interest rate swaps is as follows: Derivative Instrument Balance Sheet Location Fair Value Location of Offsetting Balance Offsetting Amount (In thousands) December 31, 2015 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other long-term $ 304 Accumulated other $ 304 Variable-to-fixed interest rate swap contract ($155 million of LIBOR based debt interest) Other current liabilities (114 ) Accumulated other comprehensive loss (114 ) $ 190 $ 190 December 31, 2014 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($155 million of LIBOR based debt interest) Other long-term $ (1,065 ) Accumulated other $ (1,065 ) Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other long-term assets 1,019 Accumulated other comprehensive income 1,019 $ (46 ) $ (46 ) Interest Expense and Other Debt Information Interest expense consists of the following components: Years Ended December 31, 2015 2014 2013 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 16,107 $ 13,350 $ 11,961 6.5% Senior Notes 19,507 19,446 19,506 8.25% Senior Notes — 2,544 12,380 Amortization of discount and deferred debt issuance costs 1,928 1,821 2,120 Amortization of unrecognized loss attributable to terminated cash flow hedge — — 849 Commitment fees 638 450 835 Total interest incurred 38,180 37,611 47,651 Less capitalized interest 762 1,510 641 Net interest expense $ 37,418 $ 36,101 $ 47,010 Cash paid for interest $ 35,938 $ 39,414 $ 44,655 Capital Lease Obligations Our capital lease obligations related to vehicles leases with initial terms of 33 to 36 months. The total cost of assets under capital leases was $3.0 million and $2.1 million as of December 31, 2015 and 2014, respectively, with accumulated depreciation of $1.1 million and $0.2 million as of December 31, 2015 and 2014, respectively. We include depreciation of capital leases in depreciation and amortization in our consolidated statements of income. At December 31, 2015, future minimum annual lease payments, including interest, for the capital leases are as follows: Years Ending December 31, (in thousands) 2016 $ 700 2017 960 2018 220 Total minimum lease payments 1,880 Less amount representing interest (123 ) Capital lease obligations $ 1,757 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease certain facilities, pipelines and rights of way under operating leases, most of which contain renewal options. The right of way agreements have various termination dates through 2061. As of December 31, 2015 , the minimum future rental commitments under operating leases having non-cancelable lease terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2016 $ 7,435 2017 6,890 2018 6,864 2019 6,813 2020 6,670 Thereafter 44,416 Total $ 79,088 Rental expense charged to operations was $8.9 million , $8.0 million and $8.3 million for the years ended December 31, 2015, 2014 and 2013 , respectively. We also have other long-term contractual obligations consisting of long-term site service agreements with HFC, expiring in 2060 through 2065 , for the provision of certain facility services and utility costs that relate to our assets located at HFC’s refinery facilities. At December 31, 2015 , these minimum future contractual obligations having terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2016 $ 1,516 2017 1,516 2018 1,516 2019 1,516 2020 1,516 Thereafter 63,006 Total $ 70,586 We are a party to various legal and regulatory proceedings, none of which we believe will have a material adverse impact on our financial condition, results of operations or cash flows. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | Significant Customers All revenues are domestic revenues, of which 91% are currently generated from our two largest customers: HFC and Alon. The vast majority of our revenues are derived from activities conducted in the southwest United States. The following table presents the percentage of total revenues generated by each of these customers: Years Ended December 31, 2015 2014 2013 HFC 81 % 83 % 83 % Alon 10 % 10 % 11 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We serve HFC's refineries under long-term pipeline, terminal, tankage and refinery processing unit throughput agreements expiring from 2019 to 2030. Under these agreements, HFC agrees to transport, store, and process throughput volumes of refined product, crude oil and feedstocks on our pipelines, terminal, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to us. These minimum annual payments or revenues are subject to annual rate adjustments on July 1st each year based on the PPI or FERC index. As of December 31, 2015 , these agreements with HFC require minimum annualized payments to us of $257.6 million . If HFC fails to meet its minimum volume commitments under the agreements in any quarter, it will be required to pay us the amount of any shortfall in cash by the last day of the month following the end of the quarter. Under certain of these agreements, a shortfall payment may be applied as a credit in the following four quarters after its minimum obligations are met. Under certain provisions of an omnibus agreement we have with HFC (the “Omnibus Agreement”), we pay HFC an annual administrative fee ( $2.4 million in 2015 and currently $2.5 million ) for the provision by HFC or its affiliates of various general and administrative services to us. This fee does not include the salaries of personnel employed by HFC who perform services for us on behalf of HLS or the cost of their employee benefits, which are charged to us separately by HFC. Also, we reimburse HFC and its affiliates for direct expenses they incur on our behalf. Related party transactions with HFC are as follows: • Revenues received from HFC were $292.2 million , $275.2 million and $252.4 million for the years ended December 31, 2015, 2014 and 2013 , respectively. • HFC charged us general and administrative services under the Omnibus Agreement of $2.4 million for the year ended December 31, 2015 , and $2.3 million for each of the years ended December 31, 2014 and 2013 . • We reimbursed HFC for costs of employees supporting our operations of $34.5 million , $38.9 million and $34.6 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Netted against the cost of employees for the year ended December 31, 2013 , is a $3.5 million refund from HFC related to refunds of taxes covering a multi-year period. • HFC reimbursed us $13.5 million , $16.8 million and $21.6 million for the years ended December 31, 2015, 2014 and 2013 , respectively, for certain reimbursable costs and capital projects. • We distributed $90.4 million , $80.5 million and $71.4 million , for the years ended December 31, 2015, 2014 and 2013 , respectively, to HFC as regular distributions on its common units and general partner interest, including general partner incentive distributions. • Accounts receivable from HFC were $32.5 million and $33.4 million at December 31, 2015 and 2014 , respectively. • Accounts payable to HFC were $11.6 million and $5.2 million at December 31, 2015 and 2014 , respectively. • Revenues for the years ended December 31, 2015, 2014 and 2013 include $7.3 million , $10.1 million and $5.1 million , respectively, of shortfall payments billed in 2014 , 2013 and 2012 , respectively, as HFC did not exceed its minimum volume commitment in any of the subsequent four quarters. Deferred revenue in the consolidated balance sheets at December 31, 2015 and 2014 , includes $6.4 million and $7.3 million , respectively, relating to certain shortfall billings. It is possible that HFC may not exceed its minimum obligations to receive credit for any of the $6.4 million deferred at December 31, 2015 . • In November 2015, we acquired from HFC all the outstanding membership interests in El Dorado Operating which owns the newly constructed naphtha fractionation and hydrogen generation units at HFC’s El Dorado refinery. See Note 2 for a description of this transaction. |
Partners' Equity, Income Alloca
Partners' Equity, Income Allocations and Cash Distributions | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital [Abstract] | |
Partners' Equity, Income Allocations and Cash Distributions | Partners’ Equity, Income Allocations and Cash Distributions As of December 31, 2015 , HFC held 22,380,030 of our common units and the 2% general partner interest, which together constituted a 39% ownership interest in us. Additionally, HFC owned all incentive distribution rights. Common Unit Issuances 2013 Issuances In March 2013, we closed on a public offering of 1,875,000 of our common units. Additionally, an affiliate of HFC, as a selling unitholder, closed on a public sale of 1,875,000 of its HEP common units for which we did not receive any proceeds. We used our net proceeds of $73.4 million to repay indebtedness incurred under our credit facility and for general partnership purposes. Under our registration statement filed with the SEC using a “shelf” registration process, $2.0 billion of securities have been registered. Any potential sale of such securities, through one or more prospectus supplements, would describe, among other things, the specific amounts, prices and terms of any securities offered and how the proceeds would be used. Any proceeds from the sale of securities would be used for general business purposes, which may include, among other things, funding acquisitions of assets or businesses, working capital, capital expenditures, investments in subsidiaries, the retirement of existing debt and/or the repurchase of common units or other securities. Allocations of Net Income Net income attributable to HEP is allocated between limited partners and the general partner interest in accordance with the provisions of the partnership agreement. HEP net income allocated to the general partner includes incentive distributions that are declared subsequent to quarter end. After the amount of incentive distributions is allocated to the general partner, the remaining net income attributable to HEP is allocated to the partners based on their weighted-average ownership percentage during the period. The following table presents the allocation of the general partner interest in net income for the periods presented below: Years Ended December 31, 2015 2014 2013 (in thousands) General partner interest in net income $ 1,936 $ 1,446 $ 1,059 General partner incentive distribution 40,401 33,221 26,464 Total general partner interest in net income $ 42,337 $ 34,667 $ 27,523 In addition to the allocation of net income as presented above, the consolidated statement of equity for the year ended December 31, 2015 , reflects a cumulative revision of net income allocations between the general partnership interest and common units of approximately $8.8 million for net income related to years ended 2014 and prior. This revision had no impact on historical limited partners’ per unit interest in earnings. Cash Distributions We consider regular cash distributions to unitholders on a quarterly basis, although there is no assurance as to the future cash distributions since they are dependent upon future earnings, cash flows, capital requirements, financial condition and other factors. Within 45 days after the end of each quarter, we distribute all of our available cash (as defined in our partnership agreement) to unitholders of record on the applicable record date. The amount of available cash generally is all cash on hand at the end of the quarter; less the amount of cash reserves established by our general partner to provide for the proper conduct of our business, comply with applicable laws, any of our debt instruments, or other agreements; or provide funds for distributions to our unitholders and to our general partner for any one or more of the next four quarters; plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. We make distributions in the following manner: Total Quarterly Distribution Marginal Percentage Interest in Distributions Target Amount Unitholders General Partner Minimum quarterly distribution $0.25 98% 2% First target distribution Up to $0.275 98% 2% Second target distribution above $0.275 up to $0.3125 85% 15% Third target distribution above $0.3125 up to $0.375 75% 25% Thereafter Above $0.375 50% 50% Our general partner, HEP Logistics, is entitled to incentive distributions if the amount we distribute with respect to any quarter exceeds specified target levels under incentive distribution rights held by our general partner. On January 22, 2016 , we announced our cash distribution for the fourth quarter of 2015 of $0.565 per unit. The distribution is payable on all common and general partner units and was paid February 12, 2016 , to all unitholders of record on February 2, 2016 . The following table presents the allocation of our regular quarterly cash distributions to the general and limited partners for the periods in which they apply. Our distributions are declared subsequent to quarter end; therefore, the amounts presented do not reflect distributions paid during the periods presented below. Years Ended December 31, 2015 2014 2013 (In thousands, except per unit data) General partner interest in distribution $ 3,563 $ 3,264 $ 2,982 General partner incentive distribution 40,401 33,221 26,464 Total general partner distribution 43,964 36,485 29,446 Limited partner distribution 129,192 121,714 114,675 Total regular quarterly cash distribution $ 173,156 $ 158,199 $ 144,121 Cash distribution per unit applicable to limited partners $ 2.2025 $ 2.075 $ 1.955 As a master limited partnership, we distribute our available cash, which historically has exceeded our net income attributable to HEP because depreciation and amortization expense represents a non-cash charge against income. The result is a decline in our partners’ equity since our regular quarterly distributions have exceeded our quarterly net income attributable to HEP. Additionally, if the asset contributions and acquisitions from HFC had occurred while we were not a consolidated variable interest entity of HFC, our acquisition cost, in excess of HFC’s historical basis in the transferred assets would have been recorded in our financial statements at the time of acquisition as increases to our properties and equipment and intangible assets instead of decreases to our partners’ equity. |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |
Environmental | Environmental We expensed $3.6 million , $3.1 million and $1.8 million for the years ended December 31, 2015, 2014 and 2013 , respectively, for environmental remediation obligations which are included within operations expense. During the year ended December 31, 2015 , we increased certain environmental cost accruals to reflect revisions to the cost estimates and the time frame for which the related environmental remediation and monitoring activities are expected to occur. The accrued environmental liability, net of expected recoveries from indemnifying parties, reflected in our balance sheets was $7.7 million and $5.2 million at December 31, 2015 and December 31, 2014 , respectively, of which $6.1 million and $2.8 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. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HFC, HFC has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HFC and occurring or existing prior to the date of such transfers. As of December 31, 2015 and December 31, 2014 , our accrued environmental liability included $6.4 million and $6.8 million , respectively, for HFC indemnified liabilities. In addition, as of December 31, 2015 and December 31, 2014 , $6.4 million and $6.8 million , respectively, was included in other assets representing amounts due from HFC related to indemnifications for environmental remediation liabilities. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Quarterly Financial Data (Unaudited) Summarized quarterly financial data is as follows: First Second Third Fourth Total (In thousands, except per unit data) Year Ended December 31, 2015 Revenues $ 89,756 $ 83,479 $ 88,389 $ 97,251 $ 358,875 Operating income 43,806 40,431 44,295 51,627 180,159 Income before income taxes 35,931 32,080 36,635 43,910 148,556 Net income 35,830 32,144 36,566 43,788 148,328 Net income attributable to Holly Energy Partners 31,803 30,401 34,485 40,519 137,208 Limited partners’ per unit interest in net income – basic and diluted $ 0.37 $ 0.34 $ 0.40 $ 0.49 $ 1.60 Distributions per limited partner unit $ 0.5375 $ 0.5450 $ 0.5550 $ 0.5650 $ 2.2025 Year Ended December 31, 2014 Revenues $ 87,004 $ 74,998 $ 82,130 $ 88,413 $ 332,545 Operating income 45,453 32,033 38,925 38,343 154,754 Income before income taxes 27,855 24,478 31,231 30,484 114,048 Net income 27,780 24,450 31,189 30,394 113,813 Net income attributable to Holly Energy Partners 24,143 23,034 29,680 28,668 105,525 Limited partners’ per unit interest in net income – basic and diluted $ 0.27 $ 0.25 $ 0.35 $ 0.33 $ 1.20 Distributions per limited partner unit $ 0.5075 $ 0.5150 $ 0.5225 $ 0.5300 $ 2.0750 |
Supplemental Guarantor _ Non-Gu
Supplemental Guarantor / Non-Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract] | |
Supplemental Guarantor / Non-Guarantor Financial Information | Supplemental Guarantor/Non-Guarantor Financial Information Obligations of HEP (“Parent”) under the Senior Notes have been jointly and severally guaranteed by each of its direct and indirect 100% owned subsidiaries (“Guarantor Subsidiaries”). These guarantees are full and unconditional, subject to certain customary release provisions. These circumstances include (i) when a Guarantor Subsidiary is sold or sells all or substantially all of its assets, (ii) when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, (iii) when a Guarantor Subsidiary's guarantee of other indebtedness is terminated or released and (iv) when the requirements for legal defeasance or covenant defeasance or to discharge the Senior Notes have been satisfied. The following financial information presents condensed consolidating balance sheets, statements of comprehensive income, and statements of cash flows of the Parent, the Guarantor Subsidiaries and the Non-Guarantor subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Subsidiaries and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. Condensed Consolidating Balance Sheet December 31, 2015 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 5,452 $ 9,559 $ — $ 15,013 Accounts receivable — 35,558 5,715 (198 ) 41,075 Prepaid and other current assets 174 3,634 1,246 — 5,054 Total current assets 176 44,644 16,520 (198 ) 61,142 Properties and equipment, net — 678,027 371,843 — 1,049,870 Investment in subsidiaries 591,323 283,287 — (874,610 ) — Transportation agreements, net — 73,805 — — 73,805 Goodwill — 256,498 — — 256,498 Equity method investments — 79,438 — — 79,438 Other assets 642 13,061 — — 13,703 Total assets $ 592,141 $ 1,428,760 $ 388,363 $ (874,808 ) $ 1,534,456 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 19,448 $ 3,333 $ (198 ) $ 22,583 Accrued interest 6,500 252 — — 6,752 Deferred revenue — 6,010 6,006 — 12,016 Accrued property taxes — 2,627 1,137 — 3,764 Other current liabilities 7 3,802 — — 3,809 Total current liabilities 6,507 32,139 10,476 (198 ) 48,924 Long-term debt 296,752 712,000 — — 1,008,752 Other long-term liabilities 210 20,294 171 — 20,675 Deferred revenue — 39,063 — — 39,063 Class B unit — 33,941 — — 33,941 Equity - partners 288,672 591,323 377,716 (969,039 ) 288,672 Equity - noncontrolling interest — — — 94,429 94,429 Total liabilities and partners’ equity $ 592,141 $ 1,428,760 $ 388,363 $ (874,808 ) $ 1,534,456 Condensed Consolidating Balance Sheet December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 2,828 $ — $ — $ 2,830 Accounts receivable — 34,274 6,044 (189 ) 40,129 Prepaid and other current assets 212 2,856 1,315 — 4,383 Total current assets 214 39,958 7,359 (189 ) 47,342 Properties and equipment, net — 635,107 383,491 — 1,018,598 Investment in subsidiaries 656,477 285,247 — (941,724 ) — Transportation agreements, net — 80,703 — — 80,703 Goodwill — 256,498 — — 256,498 Equity method investments — 24,478 — — 24,478 Other assets 1,319 10,143 — — 11,462 Total assets $ 658,010 $ 1,332,134 $ 390,850 $ (941,913 ) $ 1,439,081 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 19,237 $ 2,575 $ (189 ) $ 21,623 Accrued interest 6,500 115 — — 6,615 Deferred revenue — 5,672 6,760 — 12,432 Accrued property taxes — 1,902 801 — 2,703 Other current liabilities 45 4,408 118 — 4,571 Total current liabilities 6,545 31,334 10,254 (189 ) 47,944 Long-term debt 296,579 570,407 — — 866,986 Other long-term liabilities 147 17,731 267 — 18,145 Deferred revenue — 29,392 — — 29,392 Class B unit — 26,793 — — 26,793 Equity - partners 354,739 656,477 380,329 (1,036,806 ) 354,739 Equity - noncontrolling interest — — — 95,082 95,082 Total liabilities and partners’ equity $ 658,010 $ 1,332,134 $ 390,850 $ (941,913 ) $ 1,439,081 (1) Retrospectively adjusted as described in Notes 2 and 7. Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 269,277 $ 22,944 $ — $ 292,221 Third parties — 47,189 19,465 — 66,654 — 316,466 42,409 — 358,875 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 91,839 11,469 — 103,308 Depreciation and amortization — 47,848 15,004 — 62,852 General and administrative 3,616 8,940 — — 12,556 3,616 148,627 26,473 — 178,716 Operating income (loss) (3,616 ) 167,839 15,936 — 180,159 Equity in earnings of subsidiaries 161,097 11,915 — (173,012 ) — Equity in earnings of equity method investments — 4,803 — — 4,803 Interest income — 526 — — 526 Interest expense (20,273 ) (17,145 ) — — (37,418 ) Gain on sale of assets — 375 — — 375 Other — 160 (49 ) — 111 140,824 634 (49 ) (173,012 ) (31,603 ) Income (loss) before income taxes 137,208 168,473 15,887 (173,012 ) 148,556 State income tax expense — (228 ) — — (228 ) Net income (loss) 137,208 168,245 15,887 (173,012 ) 148,328 Allocation of net (income) attributable to noncontrolling interests — — — (11,120 ) (11,120 ) Net income (loss) attributable to Holly Energy Partners 137,208 168,245 15,887 (184,132 ) 137,208 Other comprehensive income (loss) 236 236 — (236 ) 236 Comprehensive income (loss) $ 137,444 $ 168,481 $ 15,887 $ (184,368 ) $ 137,444 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2014 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 254,364 $ 22,073 $ (1,241 ) $ 275,196 Third parties — 45,711 11,638 — 57,349 — 300,075 33,711 (1,241 ) 332,545 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 93,382 12,660 (1,241 ) 104,801 Depreciation and amortization — 47,592 14,574 — 62,166 General and administrative 2,658 8,166 — — 10,824 2,658 149,140 27,234 (1,241 ) 177,791 Operating income (loss) (2,658 ) 150,935 6,477 — 154,754 Equity in earnings of subsidiaries 138,691 4,858 — (143,549 ) — Equity in earnings of equity method investments — 2,987 — — 2,987 Interest income — 3 — — 3 Interest expense (22,831 ) (13,270 ) — — (36,101 ) Loss on early extinguishment of debt (7,677 ) — — — (7,677 ) Other — 82 — — 82 108,183 (5,340 ) — (143,549 ) (40,706 ) Income (loss) before income taxes 105,525 145,595 6,477 (143,549 ) 114,048 State income tax expense — (235 ) — — (235 ) Net income (loss) 105,525 145,360 6,477 (143,549 ) 113,813 Allocation of net loss attributable to noncontrolling interests — — — (8,288 ) (8,288 ) Net income (loss) attributable to Holly Energy Partners 105,525 145,360 6,477 (151,837 ) 105,525 Other comprehensive income (loss) 98 98 — (98 ) 98 Comprehensive income (loss) $ 105,623 $ 145,458 $ 6,477 $ (151,935 ) $ 105,623 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2013 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 236,336 $ 17,258 $ (1,226 ) $ 252,368 Third parties — 42,139 10,675 — 52,814 — 278,475 27,933 (1,226 ) 305,182 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 88,614 12,056 (1,226 ) 99,444 Depreciation and amortization — 51,082 14,341 — 65,423 General and administrative 3,381 8,368 — — 11,749 3,381 148,064 26,397 (1,226 ) 176,616 Operating income (loss) (3,381 ) 130,411 1,536 — 128,566 Equity in earnings (loss) of subsidiaries 115,850 1,231 — (117,081 ) — Equity in earnings of equity method investments — 2,826 — — 2,826 Interest income — 56 105 — 161 Interest expense (33,020 ) (13,990 ) — — (47,010 ) Gain on sale of assets — 1,810 — — 1,810 Other — 61 — — 61 82,830 (8,006 ) 105 (117,081 ) (42,152 ) Income (loss) before income taxes 79,449 122,405 1,641 (117,081 ) 86,414 State income tax expense — (333 ) — — (333 ) Net income (loss) 79,449 122,072 1,641 (117,081 ) 86,081 Allocation of net loss attributable to noncontrolling interests — — — (6,632 ) (6,632 ) Net income (loss) attributable to Holly Energy Partners 79,449 122,072 1,641 (123,713 ) 79,449 Other comprehensive income (loss) 4,135 4,135 — (4,135 ) 4,135 Comprehensive income (loss) $ 83,584 $ 126,207 $ 1,641 $ (127,848 ) $ 83,584 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (19,490 ) $ 234,898 $ 29,501 $ (11,915 ) $ 232,994 Cash flows from investing activities Additions to properties and equipment — (65,574 ) (1,442 ) — (67,016 ) Purchase of El Dorado crude tanks — (27,500 ) — — (27,500 ) Purchase of investment in Frontier Pipeline — (55,032 ) — — (55,032 ) Proceeds from the sale of assets — 1,279 — — 1,279 Distributions from UNEV — 1,960 — (1,960 ) — Distributions in excess of equity in earnings of equity companies — 194 — — 194 — (144,673 ) (1,442 ) (1,960 ) (148,075 ) Cash flows from financing activities Net borrowings under credit agreement — 141,000 — — 141,000 Net intercompany financing activities 192,108 (192,108 ) — — — Contributions from HFC for El Dorado Operating acquisition — 27,623 — — 27,623 Distributions to HFC for El Dorado Operating acquisition — (62,000 ) — — (62,000 ) Distributions to HEP unitholders (169,063 ) — — — (169,063 ) Distributions to noncontrolling interests — — (18,500 ) 13,875 (4,625 ) Deferred financing costs — (962 ) — — (962 ) Purchase of units for incentive grants (3,555 ) — — — (3,555 ) Other — (1,154 ) — — (1,154 ) 19,490 (87,601 ) (18,500 ) 13,875 (72,736 ) Cash and cash equivalents Increase for the period — 2,624 9,559 — 12,183 Beginning of period 2 2,828 — — 2,830 End of period $ 2 $ 5,452 $ 9,559 $ — $ 15,013 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (25,339 ) $ 193,273 $ 19,398 $ (692 ) $ 186,640 Cash flows from investing activities Additions to properties and equipment — (101,492 ) (8,201 ) — (109,693 ) Distributions from UNEV — 11,383 — (11,383 ) — Distribution in excess of equity in earnings in equity companies — 263 — — 263 — (89,846 ) (8,201 ) (11,383 ) (109,430 ) Cash flows from financing activities Net repayments under credit agreement — 208,000 — — 208,000 Net intercompany financing activities 339,771 (339,771 ) — — — Redemption of senior notes (156,188 ) — — — (156,188 ) Distributions to noncontrolling interests — — (16,100 ) 12,075 (4,025 ) Distributions to HEP unitholders (154,670 ) — — — (154,670 ) Contributions from HFC for El Dorado Operating acquisition — 29,734 — — 29,734 Deferred financing costs — (9 ) — — (9 ) Purchase of units for restricted grants (3,577 ) — — — (3,577 ) Other 3 — — — 3 25,339 (102,046 ) (16,100 ) 12,075 (80,732 ) Cash and cash equivalents Increase (decrease) for the period — 1,381 (4,903 ) — (3,522 ) Beginning of period 2 1,447 4,903 — 6,352 End of period $ 2 $ 2,828 $ — $ — $ 2,830 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (34,605 ) $ 197,678 $ 20,007 $ — $ 183,080 Cash flows from investing activities Additions to properties and equipment — (49,597 ) (7,016 ) — (56,613 ) Proceeds from the sale of assets — 2,731 — — 2,731 Distributions from UNEV — 9,375 — (9,375 ) — Distributions in excess of equity in earnings in equity companies — 300 — — 300 — (37,191 ) (7,016 ) (9,375 ) (53,582 ) Cash flows from financing activities Net borrowings under credit agreement — (58,000 ) — — (58,000 ) Net intercompany financing activities 105,031 (105,031 ) — — — Proceeds from issuance of common units 73,444 — — — 73,444 Distributions to noncontrolling interests — — (12,500 ) 9,375 (3,125 ) Contributions from general partner 1,499 — — — 1,499 Distributions to HEP unitholders (139,486 ) — — — (139,486 ) Contributions from HFC for El Dorado Operating acquisition — 4,512 — — 4,512 Purchase of units for restricted grants (5,634 ) — — — (5,634 ) Deferred financing costs — (1,344 ) — — (1,344 ) Other (249 ) — — — (249 ) 34,605 (159,863 ) (12,500 ) 9,375 (128,383 ) Cash and cash equivalents Increase for the period — 624 491 — 1,115 Beginning of period 2 823 4,412 — 5,237 End of period $ 2 $ 1,447 $ 4,903 $ — $ 6,352 (1) Retrospectively adjusted as described in Note 2. |
Description of Business and S22
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation and Common Control Transactions, Policy | Principles of Consolidation and Common Control Transactions The consolidated financial statements include our accounts and those of subsidiaries and joint ventures that we control through a more than 50% ownership interest. All significant inter-company transactions and balances have been eliminated. Most of our asset acquisitions from HFC occurred while we were a consolidated variable interest entity of HFC. Therefore, as an entity under common control with HFC, we recorded these assets on our balance sheets at HFC's historical basis instead of our purchase price or fair value. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The carrying amounts reported on the balance sheets approximate fair value due to the short-term maturity of these instruments. |
Accounts Receivable, Policy | Accounts Receivable The majority of the accounts receivable are due from affiliates of HFC, Alon or independent companies in the petroleum industry. Credit is extended based on evaluation of the customer's financial condition and, in certain circumstances, collateral such as letters of credit or guarantees, may be required. Credit losses are charged to income when accounts are deemed uncollectible and historically have been minimal. |
Properties and Equipment, Policy | Properties and Equipment Properties and equipment are stated at cost. Properties and equipment acquired from HFC while under common control of HFC are stated at HFC's historical basis. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 25 years for terminal facilities and tankage, 25 to 32 years for pipelines and 5 to 10 years for corporate and other assets. We depreciate assets acquired under capital leases over the lesser of the lease term or the economic life of the assets. Maintenance, repairs and minor replacements are expensed as incurred. Costs of replacements constituting improvements are capitalized. |
Transportation Agreements, Policy | Transportation Agreements The transportation agreement assets are stated at acquisition date fair value and are being amortized over the periods of the agreements using the straight-line method. See Note 5 for additional information on our transportation agreements. |
Goodwill and Long-Lived Assets, Policy | Goodwill and Long-Lived Assets Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not amortized. We test goodwill at the reporting unit level for impairment annually and between annual tests if events or changes in circumstances indicate the carrying amount may exceed fair value. Recoverability is determined by comparing the estimated fair value of a reporting unit to the carrying value, including the related goodwill, of that reporting unit. We use the present value of the expected future net cash flows and market multiple analyses to determine the estimated fair values of the reporting units. The impairment test requires the use of projections, estimates and assumptions as to the future performance of our operations. Actual results could differ from projections resulting in revisions to our assumptions, and if required, recognizing an impairment loss. We evaluate long-lived assets, including finite intangible assets, for potential 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, if any, to be recorded is equal to the amount by which a long-lived asset's carrying value exceeds its fair value. There have been no impairments to goodwill or our long-lived assets as of December 31, 2015 . |
Investment in Equity Method Investments, Policy | Investment in Equity Method Investments We account for our 25% SLC Pipeline and 50% Frontier Pipeline joint venture interests using the equity method of accounting, whereby we record our pro-rata share of earnings of the two companies, and contributions to and distributions from the two companies as adjustments to our investment balances. As of December 31, 2015 , our underlying equity in the SLC Pipeline was $57.7 million compared to our recorded investment balance of $24.3 million , a difference of $33.4 million , and our underlying equity in Frontier Pipeline was $12.6 million compared to our recorded investment balance of $55.2 million , a difference of $42.6 million . We are amortizing the differences as adjustments to our pro-rata share of earnings over the useful lives of the underlying assets of these joint ventures. |
Asset Retirement Obligations, Policy | Asset Retirement Obligations We record legal obligations associated with the retirement of certain of our long-lived assets that result from the acquisition, construction, development and/or the normal operation of our long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded in the period in which the liability is incurred and when a reasonable estimate of the fair value of the liability can be made. For our pipeline assets, the right-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon cessation of the pipeline service. Additionally, management is unable to predict when, or if, our pipelines and related facilities would become obsolete and require decommissioning. Accordingly, we have recorded no liability or corresponding asset related to an asset retirement obligation for the majority of our pipelines as both the amounts and timing of such potential future costs are indeterminable. For our remaining assets, at December 31, 2015 and 2014 , we have asset retirement obligations of $7.6 million and $6.8 million , respectively, that are recorded under “Other long-term liabilities” in our consolidated balance sheets. |
Class B Unit, Policy | Class B Unit Under the terms of the transaction to acquire HFC's 75% interest in UNEV, we issued HFC a Class B unit comprising a noncontrolling equity interest in a wholly-owned subsidiary subject to redemption to the extent that HFC is entitled to a 50% interest in our share of annual UNEV earnings before interest, income taxes, depreciation, and amortization above $30 million beginning July 1, 2016, and ending in June 2032, subject to certain limitations. Such contingent redemption payments are limited to the unredeemed value of the Class B Unit. However, to the extent earnings thresholds are not achieved, no redemption payments are required. Contemporaneously with this transaction, HFC (our general partner) agreed to forego its right to incentive distributions of up to $1.25 million per quarter over twelve consecutive quarterly periods, beginning with the distributions paid in the fourth quarter of 2012, and up to an additional four quarters if HFC's Woods Cross Refinery expansion did not attain certain thresholds. HFC expects to complete this expansion in the first quarter of 2016. Therefore, we expect HEP Logistics' waiver of its right to incentive distributions of $1.25 million per quarter to end in the second quarter of 2016. The Class B unit increases by the amount of each foregone incentive distribution and by a 7% factor compounded annually on the outstanding unredeemed balance through its expiration date. At our option, we may redeem, in whole or in part, the Class B unit at the current unredeemed value based on the calculation described. The Class B unit had a carrying value of $33.9 million at December 31, 2015 , and $26.8 million at December 31, 2014 . |
Revenue Recognition, Policy | Revenue Recognition Revenues are recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. Billings to customers for their obligations under their quarterly minimum revenue commitments are recorded as deferred revenue liabilities if the customer has the right to receive future services for these billings. The revenue is recognized at the earlier of: • the customer receiving the future services provided by these billings, • the period in which the customer is contractually allowed to receive the services expires, or • our determination that we will not be required to provide services within the allowed period. We determine that we will not be required to provide services within the allowed period when, based on current and projected shipping levels, our pipeline systems will not have the necessary capacity to enable a customer to exceed its minimum volume levels to such a degree as to utilize the shortfall credit within its respective contractual shortfall make-up period. We have additional revenues under an operating lease to a third party of an interest in the capacity of one of our pipelines. As of December 31, 2015 , billings to customers under their minimum revenue commitments per the terms of long-term throughput agreements expiring in 2019 through 2030 and the third party operating lease require minimum annualized payments to us in the aggregate of $2.3 billion including $300 million for the years ending December 31, 2016, 2017, and 2018, $275 million for the year ending December 31, 2019 and $228 million for the year ending December 31, 2020. These agreements provide for increases in the minimum revenue guarantees annually for increases in the PPI or the FERC index, with certain contracts having provisions that limit the level of the rate increases. We have other cost reimbursement provisions in our throughput / storage agreements providing that customers (including HFC) reimburse us for certain costs. Such reimbursement receipts are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement. Taxes billed and collected from our pipeline and terminal customers are recorded on a net basis with no effect on net income. |
Environmental Costs, Policy | Environmental Costs Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. 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 require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. At December 31, 2015 and 2014 , we had accrued liabilities, measured on an undiscounted basis, net of expected recoveries from indemnifying parties, for environmental remediation obligations of $7.7 million and $5.2 million respectively, of which $1.5 million and $2.3 million , respectively, were classified as other current liabilities. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HFC, HFC has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HFC occurring or existing prior to the date of such transfers. We have an environmental agreement with Alon with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Alon in 2005, under which Alon will indemnify us subject to certain monetary and time limitations. Environmental costs recoverable through insurance, indemnification agreements or other sources are included in other assets to the extent such recoveries are considered probable. |
Income Tax, Policy | Income Tax We are subject to the Texas margin tax that is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax. We are organized as a pass-through entity for federal income tax purposes. As a result, our partners are responsible for federal income taxes based on their respective share of taxable income. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under the partnership agreement. |
Net Income per Limited Partners' Unit, Policy | Net Income per Limited Partners' Unit We use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the year. Net income per unit applicable to limited partners is computed by dividing limited partners' interest in net income, after adjusting for the allocation of net income or loss attributable to the predecessor, the allocation of net income or loss attributable to noncontrolling interests and the general partner's 2% interest and incentive distributions and other participating securities, by the weighted-average number of outstanding common units and other dilutive securities. Other participating securities and dilutive securities are not significant. |
New Accounting Pronouncements, Policy | New Accounting Pronouncements Revenue Recognition In May 2014, an accounting standard update 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 are evaluating the impact of this standard. Consolidation In February 2015, the FASB issued a standard that modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The standard is effective for interim and annual periods beginning after December 15, 2015, and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. At this time, we are evaluating the potential impact of this standard on our financial statements, as well as the available transition methods. Debt Issuance Costs In April 2015, an accounting standard update was issued requiring debt issuance costs to be presented as a direct deduction from the carrying amount of the debt liability. We early adopted this standard as of December 31, 2015, and reclassified $0.5 million and $0.6 million for the years ended December 31, 2015 and December 31, 2014, respectively. Financial Assets and Liabilities In January 2016, an accounting standard update was issued requiring changes in the accounting and disclosures for financial instruments. This standard will become effective beginning with our 2018 reporting year. We are evaluating the impact of this standard. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Financial Instruments Measured on Recurring Basis | The carrying amounts and estimated fair values of our senior notes and interest rate swaps were as follows: December 31, 2015 December 31, 2014 Financial Instrument Fair Value Input Level Carrying Value Fair Value Carrying Value Fair Value (In thousands) Assets: Interest rate swaps Level 2 $ 304 $ 304 $ 1,019 $ 1,019 Liabilities: 6.5% Senior Notes Level 2 $ 296,752 $ 295,500 $ 295,986 $ 291,000 Interest rate swaps Level 2 114 114 1,065 1,065 $ 296,866 $ 295,614 $ 297,051 $ 292,065 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | The carrying amounts of our properties and equipment after retrospective adjustment as per Note 2 are as follows: December 31, December 31, (In thousands) Pipelines, terminals and tankage $ 1,219,973 $ 1,137,157 Land and right of way 66,215 64,458 Refinery assets 63,336 1,347 Construction in progress 28,249 94,347 Other 22,200 21,289 1,399,973 1,318,598 Less accumulated depreciation 350,103 300,000 $ 1,049,870 $ 1,018,598 |
Transportation Agreements (Tabl
Transportation Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Transportation Agreements by Major Class | The carrying amounts of our transportation agreements are as follows: December 31, December 31, (In thousands) Alon transportation agreement $ 59,933 $ 59,933 HFC transportation agreement 74,231 74,231 Other 50 — 134,214 134,164 Less accumulated amortization 60,409 53,461 $ 73,805 $ 80,703 |
Employees, Retirement and Inc26
Employees, Retirement and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted unit and phantom unit activity and changes during the year ended December 31, 2015 , is presented below: Restricted and Phantom Units Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2015 (nonvested) 126,077 $ 33.43 Granted 65,437 34.16 Vesting and transfer of full ownership to recipients (74,108 ) 33.92 Forfeited (15,998 ) 32.84 Outstanding at December 31, 2015 (nonvested) 101,408 $ 33.63 |
Schedule of Nonvested Performance-based Units Activity | A summary of performance unit activity and changes for the year ended December 31, 2015 , is presented below: Performance Units Units Outstanding at January 1, 2015 (nonvested) 71,245 Granted 12,792 Vesting and transfer of common units to recipients (18,167 ) Forfeited (20,376 ) Outstanding at December 31, 2015 (nonvested) 45,494 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term Debt The carrying amounts of our long-term debt are as follows: December 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 712,000 $ 571,000 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (3,248 ) (4,014 ) 296,752 295,986 Total long-term debt $ 1,008,752 $ 866,986 |
Schedule of Maturities of Long-term Debt | Maturities of our long-term debt are as follows: Years Ending December 31, (In thousands) 2016 $ — 2017 — 2018 712,000 2019 — 2020 300,000 Thereafter — Total $ 1,012,000 |
Schedule of Derivative Instruments | Additional information on our interest rate swaps is as follows: Derivative Instrument Balance Sheet Location Fair Value Location of Offsetting Balance Offsetting Amount (In thousands) December 31, 2015 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other long-term $ 304 Accumulated other $ 304 Variable-to-fixed interest rate swap contract ($155 million of LIBOR based debt interest) Other current liabilities (114 ) Accumulated other comprehensive loss (114 ) $ 190 $ 190 December 31, 2014 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($155 million of LIBOR based debt interest) Other long-term $ (1,065 ) Accumulated other $ (1,065 ) Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other long-term assets 1,019 Accumulated other comprehensive income 1,019 $ (46 ) $ (46 ) |
Schedule of Interest Expense and Other Debt Information | Interest expense consists of the following components: Years Ended December 31, 2015 2014 2013 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 16,107 $ 13,350 $ 11,961 6.5% Senior Notes 19,507 19,446 19,506 8.25% Senior Notes — 2,544 12,380 Amortization of discount and deferred debt issuance costs 1,928 1,821 2,120 Amortization of unrecognized loss attributable to terminated cash flow hedge — — 849 Commitment fees 638 450 835 Total interest incurred 38,180 37,611 47,651 Less capitalized interest 762 1,510 641 Net interest expense $ 37,418 $ 36,101 $ 47,010 Cash paid for interest $ 35,938 $ 39,414 $ 44,655 |
Schedule of Capital Lease Obligations [Table Text Block] | At December 31, 2015, future minimum annual lease payments, including interest, for the capital leases are as follows: Years Ending December 31, (in thousands) 2016 $ 700 2017 960 2018 220 Total minimum lease payments 1,880 Less amount representing interest (123 ) Capital lease obligations $ 1,757 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2015 , the minimum future rental commitments under operating leases having non-cancelable lease terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2016 $ 7,435 2017 6,890 2018 6,864 2019 6,813 2020 6,670 Thereafter 44,416 Total $ 79,088 |
Commitments Disclosure Site Service Agreements | At December 31, 2015 , these minimum future contractual obligations having terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2016 $ 1,516 2017 1,516 2018 1,516 2019 1,516 2020 1,516 Thereafter 63,006 Total $ 70,586 |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following table presents the percentage of total revenues generated by each of these customers: Years Ended December 31, 2015 2014 2013 HFC 81 % 83 % 83 % Alon 10 % 10 % 11 % |
Partners' Equity Income Allocat
Partners' Equity Income Allocations and Cash Distributions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital [Abstract] | |
Schedule of Allocation of General Partner Interest in Net Income | The following table presents the allocation of the general partner interest in net income for the periods presented below: Years Ended December 31, 2015 2014 2013 (in thousands) General partner interest in net income $ 1,936 $ 1,446 $ 1,059 General partner incentive distribution 40,401 33,221 26,464 Total general partner interest in net income $ 42,337 $ 34,667 $ 27,523 |
Schedule of Distributions Made to Partners Percentages | Total Quarterly Distribution Marginal Percentage Interest in Distributions Target Amount Unitholders General Partner Minimum quarterly distribution $0.25 98% 2% First target distribution Up to $0.275 98% 2% Second target distribution above $0.275 up to $0.3125 85% 15% Third target distribution above $0.3125 up to $0.375 75% 25% Thereafter Above $0.375 50% 50% |
Schedule of Distributions Made to Members or Limited Partners, by Distribution | The following table presents the allocation of our regular quarterly cash distributions to the general and limited partners for the periods in which they apply. Our distributions are declared subsequent to quarter end; therefore, the amounts presented do not reflect distributions paid during the periods presented below. Years Ended December 31, 2015 2014 2013 (In thousands, except per unit data) General partner interest in distribution $ 3,563 $ 3,264 $ 2,982 General partner incentive distribution 40,401 33,221 26,464 Total general partner distribution 43,964 36,485 29,446 Limited partner distribution 129,192 121,714 114,675 Total regular quarterly cash distribution $ 173,156 $ 158,199 $ 144,121 Cash distribution per unit applicable to limited partners $ 2.2025 $ 2.075 $ 1.955 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data is as follows: First Second Third Fourth Total (In thousands, except per unit data) Year Ended December 31, 2015 Revenues $ 89,756 $ 83,479 $ 88,389 $ 97,251 $ 358,875 Operating income 43,806 40,431 44,295 51,627 180,159 Income before income taxes 35,931 32,080 36,635 43,910 148,556 Net income 35,830 32,144 36,566 43,788 148,328 Net income attributable to Holly Energy Partners 31,803 30,401 34,485 40,519 137,208 Limited partners’ per unit interest in net income – basic and diluted $ 0.37 $ 0.34 $ 0.40 $ 0.49 $ 1.60 Distributions per limited partner unit $ 0.5375 $ 0.5450 $ 0.5550 $ 0.5650 $ 2.2025 Year Ended December 31, 2014 Revenues $ 87,004 $ 74,998 $ 82,130 $ 88,413 $ 332,545 Operating income 45,453 32,033 38,925 38,343 154,754 Income before income taxes 27,855 24,478 31,231 30,484 114,048 Net income 27,780 24,450 31,189 30,394 113,813 Net income attributable to Holly Energy Partners 24,143 23,034 29,680 28,668 105,525 Limited partners’ per unit interest in net income – basic and diluted $ 0.27 $ 0.25 $ 0.35 $ 0.33 $ 1.20 Distributions per limited partner unit $ 0.5075 $ 0.5150 $ 0.5225 $ 0.5300 $ 2.0750 |
Supplemental Guarantor _ Non-32
Supplemental Guarantor / Non-Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2015 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 5,452 $ 9,559 $ — $ 15,013 Accounts receivable — 35,558 5,715 (198 ) 41,075 Prepaid and other current assets 174 3,634 1,246 — 5,054 Total current assets 176 44,644 16,520 (198 ) 61,142 Properties and equipment, net — 678,027 371,843 — 1,049,870 Investment in subsidiaries 591,323 283,287 — (874,610 ) — Transportation agreements, net — 73,805 — — 73,805 Goodwill — 256,498 — — 256,498 Equity method investments — 79,438 — — 79,438 Other assets 642 13,061 — — 13,703 Total assets $ 592,141 $ 1,428,760 $ 388,363 $ (874,808 ) $ 1,534,456 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 19,448 $ 3,333 $ (198 ) $ 22,583 Accrued interest 6,500 252 — — 6,752 Deferred revenue — 6,010 6,006 — 12,016 Accrued property taxes — 2,627 1,137 — 3,764 Other current liabilities 7 3,802 — — 3,809 Total current liabilities 6,507 32,139 10,476 (198 ) 48,924 Long-term debt 296,752 712,000 — — 1,008,752 Other long-term liabilities 210 20,294 171 — 20,675 Deferred revenue — 39,063 — — 39,063 Class B unit — 33,941 — — 33,941 Equity - partners 288,672 591,323 377,716 (969,039 ) 288,672 Equity - noncontrolling interest — — — 94,429 94,429 Total liabilities and partners’ equity $ 592,141 $ 1,428,760 $ 388,363 $ (874,808 ) $ 1,534,456 Condensed Consolidating Balance Sheet December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 2,828 $ — $ — $ 2,830 Accounts receivable — 34,274 6,044 (189 ) 40,129 Prepaid and other current assets 212 2,856 1,315 — 4,383 Total current assets 214 39,958 7,359 (189 ) 47,342 Properties and equipment, net — 635,107 383,491 — 1,018,598 Investment in subsidiaries 656,477 285,247 — (941,724 ) — Transportation agreements, net — 80,703 — — 80,703 Goodwill — 256,498 — — 256,498 Equity method investments — 24,478 — — 24,478 Other assets 1,319 10,143 — — 11,462 Total assets $ 658,010 $ 1,332,134 $ 390,850 $ (941,913 ) $ 1,439,081 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 19,237 $ 2,575 $ (189 ) $ 21,623 Accrued interest 6,500 115 — — 6,615 Deferred revenue — 5,672 6,760 — 12,432 Accrued property taxes — 1,902 801 — 2,703 Other current liabilities 45 4,408 118 — 4,571 Total current liabilities 6,545 31,334 10,254 (189 ) 47,944 Long-term debt 296,579 570,407 — — 866,986 Other long-term liabilities 147 17,731 267 — 18,145 Deferred revenue — 29,392 — — 29,392 Class B unit — 26,793 — — 26,793 Equity - partners 354,739 656,477 380,329 (1,036,806 ) 354,739 Equity - noncontrolling interest — — — 95,082 95,082 Total liabilities and partners’ equity $ 658,010 $ 1,332,134 $ 390,850 $ (941,913 ) $ 1,439,081 (1) Retrospectively adjusted as described in Notes 2 and 7. |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 269,277 $ 22,944 $ — $ 292,221 Third parties — 47,189 19,465 — 66,654 — 316,466 42,409 — 358,875 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 91,839 11,469 — 103,308 Depreciation and amortization — 47,848 15,004 — 62,852 General and administrative 3,616 8,940 — — 12,556 3,616 148,627 26,473 — 178,716 Operating income (loss) (3,616 ) 167,839 15,936 — 180,159 Equity in earnings of subsidiaries 161,097 11,915 — (173,012 ) — Equity in earnings of equity method investments — 4,803 — — 4,803 Interest income — 526 — — 526 Interest expense (20,273 ) (17,145 ) — — (37,418 ) Gain on sale of assets — 375 — — 375 Other — 160 (49 ) — 111 140,824 634 (49 ) (173,012 ) (31,603 ) Income (loss) before income taxes 137,208 168,473 15,887 (173,012 ) 148,556 State income tax expense — (228 ) — — (228 ) Net income (loss) 137,208 168,245 15,887 (173,012 ) 148,328 Allocation of net (income) attributable to noncontrolling interests — — — (11,120 ) (11,120 ) Net income (loss) attributable to Holly Energy Partners 137,208 168,245 15,887 (184,132 ) 137,208 Other comprehensive income (loss) 236 236 — (236 ) 236 Comprehensive income (loss) $ 137,444 $ 168,481 $ 15,887 $ (184,368 ) $ 137,444 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2014 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 254,364 $ 22,073 $ (1,241 ) $ 275,196 Third parties — 45,711 11,638 — 57,349 — 300,075 33,711 (1,241 ) 332,545 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 93,382 12,660 (1,241 ) 104,801 Depreciation and amortization — 47,592 14,574 — 62,166 General and administrative 2,658 8,166 — — 10,824 2,658 149,140 27,234 (1,241 ) 177,791 Operating income (loss) (2,658 ) 150,935 6,477 — 154,754 Equity in earnings of subsidiaries 138,691 4,858 — (143,549 ) — Equity in earnings of equity method investments — 2,987 — — 2,987 Interest income — 3 — — 3 Interest expense (22,831 ) (13,270 ) — — (36,101 ) Loss on early extinguishment of debt (7,677 ) — — — (7,677 ) Other — 82 — — 82 108,183 (5,340 ) — (143,549 ) (40,706 ) Income (loss) before income taxes 105,525 145,595 6,477 (143,549 ) 114,048 State income tax expense — (235 ) — — (235 ) Net income (loss) 105,525 145,360 6,477 (143,549 ) 113,813 Allocation of net loss attributable to noncontrolling interests — — — (8,288 ) (8,288 ) Net income (loss) attributable to Holly Energy Partners 105,525 145,360 6,477 (151,837 ) 105,525 Other comprehensive income (loss) 98 98 — (98 ) 98 Comprehensive income (loss) $ 105,623 $ 145,458 $ 6,477 $ (151,935 ) $ 105,623 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2013 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 236,336 $ 17,258 $ (1,226 ) $ 252,368 Third parties — 42,139 10,675 — 52,814 — 278,475 27,933 (1,226 ) 305,182 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 88,614 12,056 (1,226 ) 99,444 Depreciation and amortization — 51,082 14,341 — 65,423 General and administrative 3,381 8,368 — — 11,749 3,381 148,064 26,397 (1,226 ) 176,616 Operating income (loss) (3,381 ) 130,411 1,536 — 128,566 Equity in earnings (loss) of subsidiaries 115,850 1,231 — (117,081 ) — Equity in earnings of equity method investments — 2,826 — — 2,826 Interest income — 56 105 — 161 Interest expense (33,020 ) (13,990 ) — — (47,010 ) Gain on sale of assets — 1,810 — — 1,810 Other — 61 — — 61 82,830 (8,006 ) 105 (117,081 ) (42,152 ) Income (loss) before income taxes 79,449 122,405 1,641 (117,081 ) 86,414 State income tax expense — (333 ) — — (333 ) Net income (loss) 79,449 122,072 1,641 (117,081 ) 86,081 Allocation of net loss attributable to noncontrolling interests — — — (6,632 ) (6,632 ) Net income (loss) attributable to Holly Energy Partners 79,449 122,072 1,641 (123,713 ) 79,449 Other comprehensive income (loss) 4,135 4,135 — (4,135 ) 4,135 Comprehensive income (loss) $ 83,584 $ 126,207 $ 1,641 $ (127,848 ) $ 83,584 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (19,490 ) $ 234,898 $ 29,501 $ (11,915 ) $ 232,994 Cash flows from investing activities Additions to properties and equipment — (65,574 ) (1,442 ) — (67,016 ) Purchase of El Dorado crude tanks — (27,500 ) — — (27,500 ) Purchase of investment in Frontier Pipeline — (55,032 ) — — (55,032 ) Proceeds from the sale of assets — 1,279 — — 1,279 Distributions from UNEV — 1,960 — (1,960 ) — Distributions in excess of equity in earnings of equity companies — 194 — — 194 — (144,673 ) (1,442 ) (1,960 ) (148,075 ) Cash flows from financing activities Net borrowings under credit agreement — 141,000 — — 141,000 Net intercompany financing activities 192,108 (192,108 ) — — — Contributions from HFC for El Dorado Operating acquisition — 27,623 — — 27,623 Distributions to HFC for El Dorado Operating acquisition — (62,000 ) — — (62,000 ) Distributions to HEP unitholders (169,063 ) — — — (169,063 ) Distributions to noncontrolling interests — — (18,500 ) 13,875 (4,625 ) Deferred financing costs — (962 ) — — (962 ) Purchase of units for incentive grants (3,555 ) — — — (3,555 ) Other — (1,154 ) — — (1,154 ) 19,490 (87,601 ) (18,500 ) 13,875 (72,736 ) Cash and cash equivalents Increase for the period — 2,624 9,559 — 12,183 Beginning of period 2 2,828 — — 2,830 End of period $ 2 $ 5,452 $ 9,559 $ — $ 15,013 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (25,339 ) $ 193,273 $ 19,398 $ (692 ) $ 186,640 Cash flows from investing activities Additions to properties and equipment — (101,492 ) (8,201 ) — (109,693 ) Distributions from UNEV — 11,383 — (11,383 ) — Distribution in excess of equity in earnings in equity companies — 263 — — 263 — (89,846 ) (8,201 ) (11,383 ) (109,430 ) Cash flows from financing activities Net repayments under credit agreement — 208,000 — — 208,000 Net intercompany financing activities 339,771 (339,771 ) — — — Redemption of senior notes (156,188 ) — — — (156,188 ) Distributions to noncontrolling interests — — (16,100 ) 12,075 (4,025 ) Distributions to HEP unitholders (154,670 ) — — — (154,670 ) Contributions from HFC for El Dorado Operating acquisition — 29,734 — — 29,734 Deferred financing costs — (9 ) — — (9 ) Purchase of units for restricted grants (3,577 ) — — — (3,577 ) Other 3 — — — 3 25,339 (102,046 ) (16,100 ) 12,075 (80,732 ) Cash and cash equivalents Increase (decrease) for the period — 1,381 (4,903 ) — (3,522 ) Beginning of period 2 1,447 4,903 — 6,352 End of period $ 2 $ 2,828 $ — $ — $ 2,830 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (34,605 ) $ 197,678 $ 20,007 $ — $ 183,080 Cash flows from investing activities Additions to properties and equipment — (49,597 ) (7,016 ) — (56,613 ) Proceeds from the sale of assets — 2,731 — — 2,731 Distributions from UNEV — 9,375 — (9,375 ) — Distributions in excess of equity in earnings in equity companies — 300 — — 300 — (37,191 ) (7,016 ) (9,375 ) (53,582 ) Cash flows from financing activities Net borrowings under credit agreement — (58,000 ) — — (58,000 ) Net intercompany financing activities 105,031 (105,031 ) — — — Proceeds from issuance of common units 73,444 — — — 73,444 Distributions to noncontrolling interests — — (12,500 ) 9,375 (3,125 ) Contributions from general partner 1,499 — — — 1,499 Distributions to HEP unitholders (139,486 ) — — — (139,486 ) Contributions from HFC for El Dorado Operating acquisition — 4,512 — — 4,512 Purchase of units for restricted grants (5,634 ) — — — (5,634 ) Deferred financing costs — (1,344 ) — — (1,344 ) Other (249 ) — — — (249 ) 34,605 (159,863 ) (12,500 ) 9,375 (128,383 ) Cash and cash equivalents Increase for the period — 624 491 — 1,115 Beginning of period 2 823 4,412 — 5,237 End of period $ 2 $ 1,447 $ 4,903 $ — $ 6,352 (1) Retrospectively adjusted as described in Note 2. |
Description of Business and Pre
Description of Business and Presentation of Financial Statements (Details) | 12 Months Ended | ||||
Dec. 31, 2015USD ($)miin | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2014USD ($) | |
Other Ownership Interests [Line Items] | |||||
Ownership percentage, controlling interest | 39.00% | ||||
General partner interest | 2.00% | ||||
Equity method investment, ownership percentage | 50.00% | ||||
Equity Method Investments | $ 79,438,000 | $ 24,478,000 | |||
Asset Retirement Obligation | 7,600,000 | 6,800,000 | |||
Business Combination, Contingent Consideration Arrangement | 30,000,000 | ||||
Business Acquisition, Payment of Contingent Consideration | 1,250,000 | ||||
Class B unit | 33,941,000 | 26,793,000 | |||
Accrual for Environmental Loss Contingencies | 7,700,000 | 5,200,000 | |||
Deferred Finance Costs, Net | $ 500,000 | 600,000 | |||
SLC Pipeline [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Pipeline, length (miles) | mi | 95 | ||||
Equity method investment, ownership percentage | 25.00% | ||||
Equity Method Investment, Underlying Equity in Net Assets | $ 57,700,000 | ||||
Equity Method Investments | 24,300,000 | ||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 33,400,000 | ||||
UNEV Pipeline [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Pipeline, size (inches) | in | 12 | ||||
Pipeline, length (miles) | mi | 427 | ||||
Equity method investment, ownership percentage | 75.00% | ||||
Frontier Pipeline [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Pipeline, length (miles) | mi | 289 | ||||
Equity method investment, ownership percentage | 50.00% | ||||
Equity Method Investment, Underlying Equity in Net Assets | $ 12,600,000 | ||||
Equity Method Investments | 55,200,000 | ||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ (42,600,000) | ||||
Other Fixed Assets [Member] | Minimum [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Other Fixed Assets [Member] | Maximum [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Pipelines and terminals [Member] | Minimum [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 25 years | ||||
Pipelines and terminals [Member] | Maximum [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 32 years | ||||
Terminal Facilities and Tankage [Member] [Member] | Minimum [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 15 years | ||||
Terminal Facilities and Tankage [Member] [Member] | Maximum [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 25 years | ||||
Other Current Liabilities [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Accrual for Environmental Loss Contingencies | $ 1,500,000 | $ 2,300,000 | |||
Subsequent Event [Member] | |||||
Other Ownership Interests [Line Items] | |||||
Minimum Annualized Payments Receivable Aggregate | $ 2,300,000,000 | ||||
Minimum Annualized Payments Receivable | $ 228,000,000 | $ 275,000,000 | $ 300,000,000 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)MMBbls | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Purchase of El Dorado crude tanks | $ 27,500 | $ 0 | $ 0 | |
Equity method investment, ownership percentage | 50.00% | |||
Payments to Acquire Property, Plant, and Equipment | $ 62,000 | |||
Purchase Obligation Minimum Annualized Payment | $ 15,300 | |||
Property, Plant, and Equipment Acquired | 38,100 | $ 4,500 | ||
Liabilities Assumed in Acquisition | 3,700 | |||
General Partner Interest, Net Equity Added | $ 34,400 | |||
Frontier Pipeline [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Equity Method Investments | $ 55,000 | |||
Production barrel capacity per day | MMBbls | 72,000 | |||
UNEV Pipeline [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity method investment, ownership percentage | 75.00% | |||
Subsequent Event [Member] | Osage Pipeline [Member] | ||||
Business Acquisition [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 295,614 | $ 292,065 |
6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate, senior notes | 6.50% | |
6.5% Senior Notes [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 295,500 | 291,000 |
Interest Rate Swap [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Instruments and Hedges, Assets | 304 | 1,019 |
Derivative Instruments and Hedges, Liabilities | 114 | 1,065 |
Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 296,866 | 297,051 |
Reported Value Measurement [Member] | 6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 296,752 | 295,986 |
Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Instruments and Hedges, Assets | 304 | 1,019 |
Derivative Instruments and Hedges, Liabilities | $ 114 | $ 1,065 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | $ 1,399,973 | $ 1,318,598 | ||
Less accumulated depreciation | 350,103 | 300,000 | ||
Properties and equipment, net | 1,049,870 | 1,018,598 | [1] | |
Purchase of El Dorado crude tanks | (27,500) | 0 | $ 0 | |
Property, Plant, and Equipment Acquired | 38,100 | 4,500 | ||
Interest costs, capitalized during period | (762) | (1,510) | (641) | |
Depreciation | 55,400 | 54,700 | 58,100 | |
Noncash Project Abandonment Costs | 1,100 | 1,900 | $ 6,200 | |
Pipelines and terminals [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 1,219,973 | 1,137,157 | ||
Land and right of way [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 66,215 | 64,458 | ||
Refining Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 63,336 | 1,347 | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 28,249 | 94,347 | ||
Property, Plant and Equipment, Other Types [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | $ 22,200 | $ 21,289 | ||
[1] | (1) Retrospectively adjusted as described in Notes 2 and 7. |
Transportation Agreements (Deta
Transportation Agreements (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Components | Dec. 31, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Transportation Agreements, Amortization Expense | $ 6,900 | |
Transportation Agreements [Abstract] | ||
Transportation agreements, gross | 134,214 | $ 134,164 |
Less accumulated amortization | 60,409 | 53,461 |
Transportation agreements, net | $ 73,805 | 80,703 |
Basis in Transportation Agreements | Components | 0 | |
Alon transportation agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Transportation Agreements, Useful Life (years) | 30 years | |
Transportation Agreements, Initial Term of Useful Life | 15 years | |
Transportation Agreements, Useful Life, Initial Term | 15 years | |
Transportation Agreements [Abstract] | ||
Transportation agreements, gross | $ 59,933 | 59,933 |
HFC transportation agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Transportation Agreements, Useful Life (years) | 15 years | |
Transportation Agreements [Abstract] | ||
Transportation agreements, gross | $ 74,231 | 74,231 |
El Dorado [Member] | ||
Transportation Agreements [Abstract] | ||
Transportation agreements, gross | $ 50 | $ 0 |
Employees, Retirement and Inc38
Employees, Retirement and Incentive Plans Retirement and Benefit Plan Costs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Componentsshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee benefits and share-based compensation | $ 5,400 | $ 7,400 | $ 7,400 |
Pension Expense | $ 2,200 | 4,400 | 5,000 |
Long-term incentive plan, components | Components | 4 | ||
Share-based Compensation Expense | $ 3,372 | $ 3,539 | $ 3,575 |
Long-term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units authorized under equity-based compensation plans | shares | 2,500,000 | ||
Number of units available for grant | shares | 1,498,749 |
Employees, Retirement and Inc39
Employees, Retirement and Incentive Plans Restricted Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at January 1, 2015 (nonvested) | 126,077 | ||
Granted | 65,437 | ||
Vesting and transfer of full ownership to recipients | (74,108) | ||
Forfeited | (15,998) | ||
Outstanding at December 31, 2015 (nonvested) | 101,408 | 126,077 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at January 1, 2015 (nonvested) | $ 33.43 | ||
Granted | 34.16 | ||
Vesting and transfer of full ownership to recipients | 33.92 | $ 33.49 | $ 34.66 |
Forfeited | 32.84 | ||
Outstanding at December 31, 2015 (nonvested) | $ 33.63 | $ 33.43 | |
Weighted average remaining contractual term (years) | 6 months | ||
Fair value of vested units transferred to recipients | $ 2.5 | $ 2.7 | $ 1.2 |
Total unrecognized compensation related to nonvested units | $ 2.4 | ||
Minimum [Member] | Restricted Stock [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 1 year | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 1 year | ||
Maximum [Member] | Restricted Stock [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 3 years | ||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 3 years |
Employees, Retirement and Inc40
Employees, Retirement and Incentive Plans Performance Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement, Nonvested [Roll Forward] | ||||
Purchase of units for incentive grants | $ (3,555) | $ (3,577) | $ (5,634) | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement, Nonvested [Roll Forward] | ||||
Outstanding at January 1, 2015 (nonvested) | 71,245 | |||
Granted | 12,792 | |||
Vesting and transfer of full ownership to recipients | (18,167) | |||
Forfeited | (20,376) | |||
Outstanding at December 31, 2015 (nonvested) | 45,494 | 45,494 | 71,245 | |
Executive Officer [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Certain Officers [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Maximum [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Long-term Incentive Plan [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement, Nonvested [Roll Forward] | ||||
Fair value of vested units transferred to recipients | $ 600 | $ 500 | ||
Weighted average fair value, units vested and transferred to recipients | $ 1,700,000 | $ 1,700,000 | ||
Total unrecognized compensation related to nonvested units | $ 600 | $ 600 | ||
Weighted average remaining contractual term (years) | 1 year 1 month | |||
Long-term Incentive Plan [Member] | Certain Officers [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated Share Payouts, Outstanding Nonvested Performance Unit Awards Maximum | 167.00% | 167.00% | ||
Estimated Share Payouts, Outstanding Nonvested Performance Unit Awards Minimum | 100.00% | 100.00% | ||
Range of performance units earned, based on performance units granted, minimum (percent) | 50.00% | |||
Range of performance units earned, based on performance units granted, maximum (percent) | 150.00% | |||
Grants in period, weighted average grant date fair value | $ 34.21 | $ 33.57 | $ 37.90 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Deferred Finance Costs, Net | $ 0.5 | $ 0.6 | |
Debt Instrument, Interest Rate at Period End | 2.572% | 2.152% | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Letters of Credit Maximum Capacity | $ 50 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit agreement, maximum borrowing capacity | $ 850 | $ 650 | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||
Minimum [Member] | Option AA [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.625% | ||
Minimum [Member] | Option (b) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.45% | ||
Maximum [Member] | Option AA [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Maximum [Member] | Option (b) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Debt Senior Notes (Details)
Debt Senior Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | $ 0 | $ (7,677) | $ 0 | |
Credit agreement restrictions before 2015 | 206,000 | |||
Credit agreement restrictions 2015 to 2018 | 171,000 | |||
Deferred Finance Costs, Net | 500 | $ 600 | ||
8.25% Interest Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 150,000 | |||
Stated interest rate, senior notes | 8.25% | |||
Senior Notes Aggregate Redemption Amount | $ 156,200 | |||
Loss on early extinguishment of debt | $ 7,700 | |||
6.5% Interest Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 300,000 | |||
Stated interest rate, senior notes | 6.50% |
Debt Long-Term Debt (Details)
Debt Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 712,000 | $ 571,000 | |
Total long-term debt | 1,008,752 | 866,986 | [1] |
6.5% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 300,000 | 300,000 | |
Unamortized discount | (3,248) | (4,014) | |
Senior Notes | $ 296,752 | $ 295,986 | |
[1] | (1) Retrospectively adjusted as described in Notes 2 and 7. |
Debt Interest Rate Risk Managem
Debt Interest Rate Risk Management (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015USD ($)swap | Dec. 31, 2015USD ($)swap | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 712,000,000 | $ 712,000,000 | $ 571,000,000 |
Debt instrument, effective interest rate | 2.572% | 2.572% | 2.152% |
Accumulated other comprehensive income (loss) | $ 190,000 | $ 190,000 | $ (46,000) |
Derivative liabilities, fair value | 46,000 | ||
Derivative Asset | 190,000 | 190,000 | |
Gain (Loss) Recognized in the Next Twelve Months, Net | 77,861 | ||
Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 305,000,000 | 305,000,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 155,000,000 | $ 155,000,000 | |
Long-term debt, fixed interest rate | 0.99% | 0.99% | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Debt instrument, effective interest rate | 3.24% | 3.24% | |
Accumulated other comprehensive income (loss) | $ 190,000 | $ 190,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging, Added 2012 [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | $ 150,000,000 | $ 150,000,000 | |
Long-term debt, fixed interest rate | 0.74% | 0.74% | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Debt instrument, effective interest rate | 2.99% | 2.99% | |
Number of interest rate swaps | swap | 2 | 2 | |
Previous Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, effective interest rate | 6.24% | 6.24% | |
Derivative, Cost of Hedge | $ 6,000,000 | ||
Other Long-term Liabilities [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Derivative liabilities, fair value | (1,065,000) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Derivative liabilities, fair value | 114,000 | $ 114,000 | 1,065,000 |
Derivative Asset | 304,000 | 304,000 | 1,019,000 |
Other Current Liabilities [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Derivative liabilities, fair value | (114,000) | (114,000) | |
Other Noncurrent Assets [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Debt Instrument [Line Items] | |||
Derivative Asset | $ 304,000 | $ 304,000 | $ 1,019,000 |
Debt Interest Expense and Other
Debt Interest Expense and Other Debt Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Interest expense, debt | $ 38,180 | $ 37,611 | $ 47,651 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 0 | 0 | 849 |
Less capitalized interest | 762 | 1,510 | 641 |
Net interest expense | 37,418 | 36,101 | 47,010 |
Cash paid for interest | 35,938 | 39,414 | 44,655 |
6.5% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 19,507 | 19,446 | 19,506 |
8.25% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 0 | 2,544 | 12,380 |
Amortization discount and deferred debt issuance costs [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 1,928 | 1,821 | 2,120 |
Commitment Fees [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 638 | 450 | 835 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | $ 16,107 | $ 13,350 | $ 11,961 |
Debt Debt Maturities by Year (D
Debt Debt Maturities by Year (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 712,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 300,000 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 |
Long-term Debt | $ 1,012,000 |
Debt Debt Capitalized Leases (D
Debt Debt Capitalized Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Operating Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 3,000 | $ 2,100 |
Capital Leases, Accumulated Depreciation | 1,100 | $ 200 |
Capital Lease Obligations [Member] | ||
Operating Leased Assets [Line Items] | ||
Capital lease obligations, payments in next twelve months | 700 | |
Capital lease obligations, payments in year two | 960 | |
Capital lease obligations, payments in year three | 220 | |
Capital Leases, Future Minimum Payments Due | 1,880 | |
Capital leases interest included in payments | (123) | |
Capital Leases, Future Minimum Payments, Net Minimum Payments | $ 1,757 |
Commitments and Contingencies48
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term Purchase Commitment [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 7,435 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 6,890 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 6,864 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 6,813 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 6,670 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 44,416 | ||
Operating Leases, Future Minimum Payments Due | 79,088 | ||
Operating Leases, Rent Expense | 8,900 | $ 8,000 | $ 8,300 |
Site Service Commitments | |||
Long-term Purchase Commitment [Line Items] | |||
Site Service Agreements, Future Minimum Payments Due, Current Year | 1,516 | ||
Site Service Agreements, Future Minimum Payments, Due in Two Years | 1,516 | ||
Site Service Agreements, Future Minimum Payments, Due in Three Years | 1,516 | ||
Site Service Agreements, Future Minimum Payments, Due in Four Years | 1,516 | ||
Site Service Agreements, Future Minimum Payments, Due in Five Years | 1,516 | ||
Site Service Agreements, Future Minimum Payments, Due Thereafter | 63,006 | ||
Site Service Agreements, Future Minimum Payments Due | $ 70,586 |
Significant Customers (Details)
Significant Customers (Details) - Customers | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 91.00% | ||
Concentration risk, number of significant customers | 2 | ||
HFC [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 81.00% | 83.00% | 83.00% |
Alon [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | 11.00% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Affiliates | $ 292,221 | $ 275,196 | $ 252,368 |
Payroll tax refund | 3,500 | ||
Due from Affiliates | 32,482 | 33,392 | |
Due to Affiliate, Current | 11,635 | 5,239 | |
HFC [Member] | |||
Related Party Transaction [Line Items] | |||
Minimum Annualized Payments Receivable | 257,600 | ||
Annual Administrative Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Other Commitment | 2,400 | 2,500 | |
Costs and Expenses, Related Party | 2,400 | 2,300 | |
Reimbursements Paid [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses resulting from agreement with related party | 34,500 | 38,900 | 34,600 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursements paid to related parties | 13,500 | 16,800 | 21,600 |
Cash Distribution Paid | 90,400 | 80,500 | 71,400 |
Purchase Commitment, Excluding Long-term Commitment [Domain] | |||
Related Party Transaction [Line Items] | |||
Affiliates | 7,300 | 10,100 | $ 5,100 |
Deferred Revenue, Additions | $ 6,400 | $ 7,300 |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2015 | |
Capital Unit [Line Items] | ||
Partners' capital account, units held by controlling interest | 22,380,030 | |
General partner ownership interest | 2.00% | |
Ownership percentage, controlling interest | 39.00% | |
Sale of Stock, Number of Shares Issued in Transaction | 1,875,000 | |
Partners' Capital Account, Sale of Units | $ 73.4 | |
Public Offering of Securities, Maximum Proceeds Authorized | $ 2,000 | |
General Partner HFC [Member] | ||
Capital Unit [Line Items] | ||
Sale of Stock, Number of Shares Issued in Transaction | 1,875,000 |
Partners' Equity, Allocations o
Partners' Equity, Allocations of Net Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Partners' Capital [Abstract] | |||
General partner interest in net income | $ 1,936 | $ 1,446 | $ 1,059 |
General partner incentive distribution | 40,401 | 33,221 | 26,464 |
Total general partner interest in net income | $ 42,337 | $ 34,667 | $ 27,523 |
Partners' Equity, Cash Distribu
Partners' Equity, Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners' Capital, Distribution Amount Per Share | $ 0 | $ 0 | |||||||||
Incentive Distribution, Date | Feb. 12, 2016 | ||||||||||
Distribution Made to Limited Partner, Date of Record | Feb. 2, 2016 | ||||||||||
Net Income (Loss) Allocated to General Partners | $ 8,800 | ||||||||||
Distribution of Available Cash to Unitholders, Period | 45 days | ||||||||||
Partner Distributions | |||||||||||
General partner interest in distribution | $ 3,563 | 3,264 | $ 2,982 | ||||||||
General partner incentive distribution | 40,401 | 33,221 | 26,464 | ||||||||
Total general partner distribution | 43,964 | 36,485 | 29,446 | ||||||||
Limited partner distribution | 129,192 | 121,714 | 114,675 | ||||||||
Total regular quarterly cash distribution | $ 173,156 | $ 158,199 | $ 144,121 | ||||||||
Cash distribution per unit applicable to limited partners | $ 0.5650 | $ 0.5550 | $ 0.5450 | $ 0.5375 | $ 0.5300 | $ 0.5225 | $ 0.5150 | $ 0.5075 | $ 2.2025 | $ 2.0750 | $ 1.955 |
Minimum Quarterly Distribution Percentage [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.250 | ||||||||||
General Partners Capital, Distribution Amount per share | 2.00% | ||||||||||
Partners Capital Distribution percentage | 98.00% | ||||||||||
First Target Distribution [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Maximum | $ 0.275 | ||||||||||
General Partners Capital, Distribution Amount per share | 2.00% | ||||||||||
Partners Capital Distribution percentage | 98.00% | ||||||||||
Second Distribution Target [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.275 | ||||||||||
Partners Capital, Distribution Amount per share Maximum | $ 0.3125 | ||||||||||
General Partners Capital, Distribution Amount per share | 15.00% | ||||||||||
Partners Capital Distribution percentage | 85.00% | ||||||||||
Third Target Distribution [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.3125 | ||||||||||
Partners Capital, Distribution Amount per share Maximum | $ 0.375 | ||||||||||
General Partners Capital, Distribution Amount per share | 25.00% | ||||||||||
Partners Capital Distribution percentage | 75.00% | ||||||||||
Thereafter Target Distribution [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.375 | ||||||||||
General Partners Capital, Distribution Amount per share | 50.00% | ||||||||||
Partners Capital Distribution percentage | 50.00% |
Environmental Environmental Rem
Environmental Environmental Remediation (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Environmental Exit Cost [Line Items] | |||||
Environmental Remediation Expense | $ 3.6 | $ 3.1 | $ 1.8 | ||
Accrual for Environmental Loss Contingencies | $ 7.7 | $ 5.2 | |||
Accrued Environmental Loss Contingencies, Noncurrent | 6.1 | 2.8 | |||
Affiliated Entity [Member] | |||||
Environmental Exit Cost [Line Items] | |||||
Accrual for Environmental Loss Contingencies | 6.4 | 6.8 | |||
Environmental Recovery Receivable | $ 6.4 | $ 6.8 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 97,251 | $ 88,389 | $ 83,479 | $ 89,756 | $ 88,413 | $ 82,130 | $ 74,998 | $ 87,004 | $ 358,875 | $ 332,545 | $ 305,182 |
Operating Income (Loss) | 51,627 | 44,295 | 40,431 | 43,806 | 38,343 | 38,925 | 32,033 | 45,453 | 180,159 | 154,754 | 128,566 |
Income before Income Taxes | 43,910 | 36,635 | 32,080 | 35,931 | 30,484 | 31,231 | 24,478 | 27,855 | 148,556 | 114,048 | 86,414 |
Net Income | 43,788 | 36,566 | 32,144 | 35,830 | 30,394 | 31,189 | 24,450 | 27,780 | 148,328 | 113,813 | 86,081 |
Net Income attributable to Holly Energy Partners | $ 40,519 | $ 34,485 | $ 30,401 | $ 31,803 | $ 28,668 | $ 29,680 | $ 23,034 | $ 24,143 | $ 137,208 | $ 105,525 | $ 79,449 |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 0.49 | $ 0.40 | $ 0.34 | $ 0.37 | $ 0.33 | $ 0.35 | $ 0.25 | $ 0.27 | $ 1.60 | $ 1.20 | $ 0.88 |
Distributions per Limited Partners Unit | $ 0.5650 | $ 0.5550 | $ 0.5450 | $ 0.5375 | $ 0.5300 | $ 0.5225 | $ 0.5150 | $ 0.5075 | $ 2.2025 | $ 2.0750 | $ 1.955 |
Supplemental Guarantor _ Non-56
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidated Balance Sheet (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current assets: | |||||
Cash and cash equivalents | $ 15,013,000 | $ 2,830,000 | $ 6,352,000 | $ 5,237,000 | |
Accounts receivable | 41,075,000 | 40,129,000 | |||
Prepaid and other current assets | 5,054,000 | 4,383,000 | |||
Total current assets | 61,142,000 | 47,342,000 | |||
Properties and equipment, net | 1,049,870,000 | 1,018,598,000 | [1] | ||
Investments in subsidiaries | 0 | 0 | |||
Transportation agreements, net | 73,805,000 | 80,703,000 | |||
Goodwill | 256,498,000 | 256,498,000 | |||
Equity Method Investments | 79,438,000 | 24,478,000 | |||
Other assets | 13,703,000 | 11,462,000 | [1] | ||
Total assets | 1,534,456,000 | 1,439,081,000 | [1] | ||
Current liabilities: | |||||
Accounts payable | 22,583,000 | 21,623,000 | [1] | ||
Accrued interest | 6,752,000 | 6,615,000 | |||
Deferred revenue | 12,016,000 | 12,432,000 | |||
Accrued property taxes | 3,764,000 | 2,703,000 | |||
Other current liabilities | 3,809,000 | 4,571,000 | |||
Total current liabilities | 48,924,000 | 47,944,000 | [1] | ||
Long-term debt | 1,008,752,000 | 866,986,000 | [1] | ||
Other long-term liabilities | 20,675,000 | 18,145,000 | |||
Deferred Revenue | 39,063,000 | 29,392,000 | |||
Class B unit | 33,941,000 | 26,793,000 | |||
Equity - partners | 288,672,000 | 354,739,000 | [1] | ||
Equity - noncontrolling interest | 94,429,000 | 95,082,000 | |||
Total liabilities and equity | 1,534,456,000 | 1,439,081,000 | [1] | ||
Parent [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 2,000 | 2,000 | 2,000 | 2,000 | |
Accounts receivable | 0 | 0 | |||
Prepaid and other current assets | 174,000 | 212,000 | |||
Total current assets | 176,000 | 214,000 | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | 591,323,000 | 656,477,000 | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 642,000 | 1,319,000 | |||
Total assets | 592,141,000 | 658,010,000 | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Accrued interest | 6,500,000 | 6,500,000 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 7,000 | 45,000 | |||
Total current liabilities | 6,507,000 | 6,545,000 | |||
Long-term debt | 296,752,000 | 296,579,000 | |||
Other long-term liabilities | 210,000 | 147,000 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | 288,672,000 | 354,739,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 592,141,000 | 658,010,000 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 5,452,000 | 2,828,000 | 1,447,000 | 823,000 | |
Accounts receivable | 35,558,000 | 34,274,000 | |||
Prepaid and other current assets | 3,634,000 | 2,856,000 | |||
Total current assets | 44,644,000 | 39,958,000 | |||
Properties and equipment, net | 678,027,000 | 635,107,000 | |||
Investments in subsidiaries | 283,287,000 | 285,247,000 | |||
Transportation agreements, net | 73,805,000 | 80,703,000 | |||
Goodwill | 256,498,000 | 256,498,000 | |||
Equity Method Investments | 79,438,000 | 24,478,000 | |||
Other assets | 13,061,000 | 10,143,000 | |||
Total assets | 1,428,760,000 | 1,332,134,000 | |||
Current liabilities: | |||||
Accounts payable | 19,448,000 | 19,237,000 | |||
Accrued interest | 252,000 | 115,000 | |||
Deferred revenue | 6,010,000 | 5,672,000 | |||
Accrued property taxes | 2,627,000 | 1,902,000 | |||
Other current liabilities | 3,802,000 | 4,408,000 | |||
Total current liabilities | 32,139,000 | 31,334,000 | |||
Long-term debt | 712,000,000 | 570,407,000 | |||
Other long-term liabilities | 20,294,000 | 17,731,000 | |||
Deferred Revenue | 39,063,000 | 29,392,000 | |||
Class B unit | 33,941,000 | 26,793,000 | |||
Equity - partners | 591,323,000 | 656,477,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 1,428,760,000 | 1,332,134,000 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 9,559,000 | 0 | 4,903,000 | 4,412,000 | |
Accounts receivable | 5,715,000 | 6,044,000 | |||
Prepaid and other current assets | 1,246,000 | 1,315,000 | |||
Total current assets | 16,520,000 | 7,359,000 | |||
Properties and equipment, net | 371,843,000 | 383,491,000 | |||
Investments in subsidiaries | 0 | 0 | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | 388,363,000 | 390,850,000 | |||
Current liabilities: | |||||
Accounts payable | 3,333,000 | 2,575,000 | |||
Accrued interest | 0 | 0 | |||
Deferred revenue | 6,006,000 | 6,760,000 | |||
Accrued property taxes | 1,137,000 | 801,000 | |||
Other current liabilities | 0 | 118,000 | |||
Total current liabilities | 10,476,000 | 10,254,000 | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 171,000 | 267,000 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | 377,716,000 | 380,329,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 388,363,000 | 390,850,000 | |||
Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Accounts receivable | (198,000) | (189,000) | |||
Prepaid and other current assets | 0 | 0 | |||
Total current assets | (198,000) | (189,000) | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | (874,610,000) | (941,724,000) | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | (874,808,000) | (941,913,000) | |||
Current liabilities: | |||||
Accounts payable | (198,000) | (189,000) | |||
Accrued interest | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (198,000) | (189,000) | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | (969,039,000) | (1,036,806,000) | |||
Equity - noncontrolling interest | 94,429,000 | 95,082,000 | |||
Total liabilities and equity | $ (874,808,000) | $ (941,913,000) | |||
[1] | (1) Retrospectively adjusted as described in Notes 2 and 7. |
Supplemental Guarantor _ Non-57
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues [Abstract] | |||||||||||
Affiliates | $ 292,221 | $ 275,196 | $ 252,368 | ||||||||
Third parties | 66,654 | 57,349 | 52,814 | ||||||||
Total revenues | $ 97,251 | $ 88,389 | $ 83,479 | $ 89,756 | $ 88,413 | $ 82,130 | $ 74,998 | $ 87,004 | 358,875 | 332,545 | 305,182 |
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 103,308 | 104,801 | 99,444 | ||||||||
Depreciation and amortization | 62,852 | 62,166 | 65,423 | ||||||||
General and administrative | 12,556 | 10,824 | 11,749 | ||||||||
Total operating costs and expenses | 178,716 | 177,791 | 176,616 | ||||||||
Operating income (loss) | 51,627 | 44,295 | 40,431 | 43,806 | 38,343 | 38,925 | 32,033 | 45,453 | 180,159 | 154,754 | 128,566 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings of equity method investments | 4,803 | 2,987 | 2,826 | ||||||||
Interest Income | 526 | 3 | 161 | ||||||||
Interest expense | (37,418) | (36,101) | (47,010) | ||||||||
Loss on early extinguishment of debt | 0 | (7,677) | 0 | ||||||||
Gain on sale of assets | 375 | 0 | 1,810 | ||||||||
Other Income | 111 | 82 | 61 | ||||||||
Total other income (expense) | (31,603) | (40,706) | (42,152) | ||||||||
Income before Income Taxes | 43,910 | 36,635 | 32,080 | 35,931 | 30,484 | 31,231 | 24,478 | 27,855 | 148,556 | 114,048 | 86,414 |
State income tax expense | (228) | (235) | (333) | ||||||||
Net income | 148,328 | 113,813 | 86,081 | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | (11,120) | (8,288) | (6,632) | ||||||||
Net Income attributable to Holly Energy Partners | $ 40,519 | $ 34,485 | $ 30,401 | $ 31,803 | $ 28,668 | $ 29,680 | $ 23,034 | $ 24,143 | 137,208 | 105,525 | 79,449 |
Other comprehensive income (loss) | 236 | 98 | 4,135 | ||||||||
Comprehensive income attributable to Holly Energy Partners | 137,444 | 105,623 | 83,584 | ||||||||
SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 4,803 | 2,987 | 2,826 | ||||||||
Parent [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 0 | 0 | 0 | ||||||||
Third parties | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 3,616 | 2,658 | 3,381 | ||||||||
Total operating costs and expenses | 3,616 | 2,658 | 3,381 | ||||||||
Operating income (loss) | (3,616) | (2,658) | (3,381) | ||||||||
Equity in earnings of subsidiaries | 161,097 | 138,691 | 115,850 | ||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | (20,273) | (22,831) | (33,020) | ||||||||
Loss on early extinguishment of debt | (7,677) | ||||||||||
Gain on sale of assets | 0 | ||||||||||
Other Income | 0 | 0 | 0 | ||||||||
Total other income (expense) | 140,824 | 108,183 | 82,830 | ||||||||
Income before Income Taxes | 137,208 | 105,525 | 79,449 | ||||||||
State income tax expense | 0 | 0 | 0 | ||||||||
Net income | 137,208 | 105,525 | 79,449 | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income attributable to Holly Energy Partners | 137,208 | 105,525 | 79,449 | ||||||||
Other comprehensive income (loss) | 236 | 98 | 4,135 | ||||||||
Comprehensive income attributable to Holly Energy Partners | 137,444 | 105,623 | 83,584 | ||||||||
Parent [Member] | SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 0 | 0 | 0 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 269,277 | 254,364 | 236,336 | ||||||||
Third parties | 47,189 | 45,711 | 42,139 | ||||||||
Total revenues | 316,466 | 300,075 | 278,475 | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 91,839 | 93,382 | 88,614 | ||||||||
Depreciation and amortization | 47,848 | 47,592 | 51,082 | ||||||||
General and administrative | 8,940 | 8,166 | 8,368 | ||||||||
Total operating costs and expenses | 148,627 | 149,140 | 148,064 | ||||||||
Operating income (loss) | 167,839 | 150,935 | 130,411 | ||||||||
Equity in earnings of subsidiaries | 11,915 | 4,858 | 1,231 | ||||||||
Interest Income | 526 | 3 | 56 | ||||||||
Interest expense | (17,145) | (13,270) | (13,990) | ||||||||
Loss on early extinguishment of debt | 0 | ||||||||||
Gain on sale of assets | 375 | 1,810 | |||||||||
Other Income | 160 | 82 | 61 | ||||||||
Total other income (expense) | 634 | (5,340) | (8,006) | ||||||||
Income before Income Taxes | 168,473 | 145,595 | 122,405 | ||||||||
State income tax expense | (228) | (235) | (333) | ||||||||
Net income | 168,245 | 145,360 | 122,072 | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income attributable to Holly Energy Partners | 168,245 | 145,360 | 122,072 | ||||||||
Other comprehensive income (loss) | 236 | 98 | 4,135 | ||||||||
Comprehensive income attributable to Holly Energy Partners | 168,481 | 145,458 | 126,207 | ||||||||
Guarantor Subsidiaries [Member] | SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 4,803 | 2,987 | 2,826 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 22,944 | 22,073 | 17,258 | ||||||||
Third parties | 19,465 | 11,638 | 10,675 | ||||||||
Total revenues | 42,409 | 33,711 | 27,933 | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 11,469 | 12,660 | 12,056 | ||||||||
Depreciation and amortization | 15,004 | 14,574 | 14,341 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Total operating costs and expenses | 26,473 | 27,234 | 26,397 | ||||||||
Operating income (loss) | 15,936 | 6,477 | 1,536 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Interest Income | 0 | 0 | 105 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Loss on early extinguishment of debt | 0 | ||||||||||
Gain on sale of assets | 0 | ||||||||||
Other Income | (49) | 0 | 0 | ||||||||
Total other income (expense) | (49) | 0 | 105 | ||||||||
Income before Income Taxes | 15,887 | 6,477 | 1,641 | ||||||||
State income tax expense | 0 | 0 | 0 | ||||||||
Net income | 15,887 | 6,477 | 1,641 | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income attributable to Holly Energy Partners | 15,887 | 6,477 | 1,641 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Holly Energy Partners | 15,887 | 6,477 | 1,641 | ||||||||
Non-Guarantor Subsidiaries [Member] | Equity Method Investee [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 0 | 0 | 0 | ||||||||
Eliminations [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 0 | (1,241) | (1,226) | ||||||||
Third parties | 0 | 0 | 0 | ||||||||
Total revenues | 0 | (1,241) | (1,226) | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 0 | (1,241) | (1,226) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Total operating costs and expenses | 0 | (1,241) | (1,226) | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (173,012) | (143,549) | (117,081) | ||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Loss on early extinguishment of debt | 0 | ||||||||||
Gain on sale of assets | 0 | ||||||||||
Other Income | 0 | 0 | 0 | ||||||||
Total other income (expense) | (173,012) | (143,549) | (117,081) | ||||||||
Income before Income Taxes | (173,012) | (143,549) | (117,081) | ||||||||
State income tax expense | 0 | 0 | 0 | ||||||||
Net income | (173,012) | (143,549) | (117,081) | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | (11,120) | (8,288) | (6,632) | ||||||||
Net Income attributable to Holly Energy Partners | (184,132) | (151,837) | (123,713) | ||||||||
Other comprehensive income (loss) | (236) | (98) | (4,135) | ||||||||
Comprehensive income attributable to Holly Energy Partners | (184,368) | (151,935) | (127,848) | ||||||||
Eliminations [Member] | SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor _ Non-58
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash provided by operating activities | $ 232,994 | $ 186,640 | $ 183,080 | ||
Cash flows from investing activities | |||||
Additions to properties and equipment | (67,016) | (109,693) | [1] | (56,613) | [1] |
Purchase of El Dorado crude tanks | (27,500) | 0 | 0 | ||
Purchase of investment in Frontier Pipeline | (55,032) | 0 | 0 | ||
Proceeds from sale of assets | 1,279 | 0 | 2,731 | ||
Distributions from UNEV | 0 | 0 | 0 | ||
Distributions in Excess of Equity in Earnings of Equity Investments | 194 | 263 | 300 | ||
Net Cash Provided by (Used in) Investing Activities | (148,075) | (109,430) | [1] | (53,582) | [1] |
Cash flows from financing activities | |||||
Net Borrowings under Credit Agreement | 141,000 | 208,000 | (58,000) | ||
Net Intercompany Financing Activities | 0 | 0 | 0 | ||
Contributions from HFC for El Dorado Operating acquisition | 27,623 | 29,734 | [1],[2] | 4,512 | [1],[2] |
Distributions to HFC for El Dorado Operating acquisition | (62,000) | 0 | 0 | ||
Distributions to HEP unitholders | (169,063) | (154,670) | (139,486) | ||
Contributions (distributions) from noncontrolling interests | (4,625) | (4,025) | 3,125 | ||
Contribution from general partner | 1,499 | ||||
Deferred financing costs | (962) | (9) | (1,344) | ||
Purchase of units for incentive grants | (3,555) | (3,577) | (5,634) | ||
Other | (1,154) | 3 | (249) | ||
Proceeds from Issuance of Common Limited Partners Units | 0 | 0 | 73,444 | ||
Redemption of senior notes | 0 | (156,188) | 0 | ||
Net cash used by financing activities | (72,736) | (80,732) | [1] | (128,383) | [1] |
Increase (decrease) for the year | 12,183 | (3,522) | 1,115 | ||
Beginning of period | 2,830 | 6,352 | 5,237 | ||
End of period | 15,013 | 2,830 | 6,352 | ||
Parent [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash provided by operating activities | (19,490) | (25,339) | (34,605) | ||
Cash flows from investing activities | |||||
Additions to properties and equipment | 0 | 0 | 0 | ||
Purchase of El Dorado crude tanks | 0 | ||||
Purchase of investment in Frontier Pipeline | 0 | ||||
Proceeds from sale of assets | 0 | 0 | |||
Distributions from UNEV | 0 | 0 | 0 | ||
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 | ||
Net Cash Provided by (Used in) Investing Activities | 0 | 0 | 0 | ||
Cash flows from financing activities | |||||
Net Borrowings under Credit Agreement | 0 | 0 | 0 | ||
Net Intercompany Financing Activities | 192,108 | 339,771 | 105,031 | ||
Contributions from HFC for El Dorado Operating acquisition | 0 | 0 | 0 | ||
Distributions to HFC for El Dorado Operating acquisition | 0 | ||||
Distributions to HEP unitholders | (169,063) | (154,670) | (139,486) | ||
Contributions (distributions) from noncontrolling interests | 0 | 0 | 0 | ||
Contribution from general partner | 1,499 | ||||
Deferred financing costs | 0 | 0 | 0 | ||
Purchase of units for incentive grants | (3,555) | (3,577) | (5,634) | ||
Other | 0 | 3 | (249) | ||
Proceeds from Issuance of Common Limited Partners Units | 73,444 | ||||
Redemption of senior notes | (156,188) | ||||
Net cash used by financing activities | 19,490 | 25,339 | 34,605 | ||
Increase (decrease) for the year | 0 | 0 | 0 | ||
Beginning of period | 2 | 2 | 2 | ||
End of period | 2 | 2 | 2 | ||
Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash provided by operating activities | 234,898 | 193,273 | 197,678 | ||
Cash flows from investing activities | |||||
Additions to properties and equipment | (65,574) | (101,492) | (49,597) | ||
Purchase of El Dorado crude tanks | (27,500) | ||||
Purchase of investment in Frontier Pipeline | (55,032) | ||||
Proceeds from sale of assets | 1,279 | 2,731 | |||
Distributions from UNEV | 1,960 | 11,383 | 9,375 | ||
Distributions in Excess of Equity in Earnings of Equity Investments | 194 | 263 | 300 | ||
Net Cash Provided by (Used in) Investing Activities | (144,673) | (89,846) | (37,191) | ||
Cash flows from financing activities | |||||
Net Borrowings under Credit Agreement | 141,000 | 208,000 | (58,000) | ||
Net Intercompany Financing Activities | (192,108) | (339,771) | (105,031) | ||
Contributions from HFC for El Dorado Operating acquisition | 27,623 | 29,734 | 4,512 | ||
Distributions to HFC for El Dorado Operating acquisition | (62,000) | ||||
Distributions to HEP unitholders | 0 | 0 | 0 | ||
Contributions (distributions) from noncontrolling interests | 0 | 0 | 0 | ||
Contribution from general partner | 0 | ||||
Deferred financing costs | (962) | (9) | (1,344) | ||
Purchase of units for incentive grants | 0 | 0 | 0 | ||
Other | (1,154) | 0 | 0 | ||
Proceeds from Issuance of Common Limited Partners Units | 0 | ||||
Redemption of senior notes | 0 | ||||
Net cash used by financing activities | (87,601) | (102,046) | (159,863) | ||
Increase (decrease) for the year | 2,624 | 1,381 | 624 | ||
Beginning of period | 2,828 | 1,447 | 823 | ||
End of period | 5,452 | 2,828 | 1,447 | ||
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash provided by operating activities | 29,501 | 19,398 | 20,007 | ||
Cash flows from investing activities | |||||
Additions to properties and equipment | (1,442) | (8,201) | (7,016) | ||
Purchase of El Dorado crude tanks | 0 | ||||
Purchase of investment in Frontier Pipeline | 0 | ||||
Proceeds from sale of assets | 0 | 0 | |||
Distributions from UNEV | 0 | 0 | 0 | ||
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 | ||
Net Cash Provided by (Used in) Investing Activities | (1,442) | (8,201) | (7,016) | ||
Cash flows from financing activities | |||||
Net Borrowings under Credit Agreement | 0 | 0 | 0 | ||
Net Intercompany Financing Activities | 0 | 0 | 0 | ||
Contributions from HFC for El Dorado Operating acquisition | 0 | 0 | 0 | ||
Distributions to HFC for El Dorado Operating acquisition | 0 | ||||
Distributions to HEP unitholders | 0 | 0 | 0 | ||
Contributions (distributions) from noncontrolling interests | (18,500) | (16,100) | (12,500) | ||
Contribution from general partner | 0 | ||||
Deferred financing costs | 0 | 0 | 0 | ||
Purchase of units for incentive grants | 0 | 0 | 0 | ||
Other | 0 | 0 | 0 | ||
Proceeds from Issuance of Common Limited Partners Units | 0 | ||||
Redemption of senior notes | 0 | ||||
Net cash used by financing activities | (18,500) | (16,100) | (12,500) | ||
Increase (decrease) for the year | 9,559 | (4,903) | 491 | ||
Beginning of period | 0 | 4,903 | 4,412 | ||
End of period | 9,559 | 0 | 4,903 | ||
Eliminations [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net cash provided by operating activities | (11,915) | (692) | 0 | ||
Cash flows from investing activities | |||||
Additions to properties and equipment | 0 | 0 | 0 | ||
Purchase of El Dorado crude tanks | 0 | ||||
Purchase of investment in Frontier Pipeline | 0 | ||||
Proceeds from sale of assets | 0 | 0 | |||
Distributions from UNEV | (1,960) | (11,383) | (9,375) | ||
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 | ||
Net Cash Provided by (Used in) Investing Activities | (1,960) | (11,383) | (9,375) | ||
Cash flows from financing activities | |||||
Net Borrowings under Credit Agreement | 0 | 0 | 0 | ||
Net Intercompany Financing Activities | 0 | 0 | 0 | ||
Contributions from HFC for El Dorado Operating acquisition | 0 | 0 | 0 | ||
Distributions to HFC for El Dorado Operating acquisition | 0 | ||||
Distributions to HEP unitholders | 0 | 0 | 0 | ||
Contributions (distributions) from noncontrolling interests | 13,875 | 12,075 | 9,375 | ||
Contribution from general partner | 0 | ||||
Deferred financing costs | 0 | 0 | 0 | ||
Purchase of units for incentive grants | 0 | 0 | 0 | ||
Other | 0 | 0 | 0 | ||
Proceeds from Issuance of Common Limited Partners Units | 0 | ||||
Redemption of senior notes | 0 | ||||
Net cash used by financing activities | 13,875 | 12,075 | 9,375 | ||
Increase (decrease) for the year | 0 | 0 | 0 | ||
Beginning of period | 0 | 0 | 0 | ||
End of period | $ 0 | $ 0 | $ 0 | ||
[1] | (1) Retrospectively adjusted as described in Note 2. | ||||
[2] | (1) Retrospectively adjusted as described in Note 2. |