Document Entity Information
Document Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
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-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 58,657,048 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 9,034 | $ 15,013 | |
Accounts receivable: | |||
Trade | 7,936 | 8,593 | |
Affiliates | 33,120 | 32,482 | |
Total accounts receivable | 41,056 | 41,075 | |
Prepaid and other current assets | 5,181 | 5,054 | |
Total current assets | 55,271 | 61,142 | |
Properties and equipment, net | 1,052,772 | 1,059,179 | [1] |
Transportation agreements, net | 72,067 | 73,805 | |
Goodwill | 256,498 | 256,498 | |
Equity method investments | 124,134 | 79,438 | |
Other assets | 11,819 | 13,703 | |
Total assets | 1,572,561 | 1,543,765 | |
Accounts payable: | |||
Trade | 12,305 | 10,948 | |
Affiliates | 6,175 | 11,635 | |
Total accounts payable | 18,480 | 22,583 | |
Accrued interest | 1,972 | 6,752 | |
Deferred revenue | 7,050 | 12,016 | |
Accrued property taxes | 4,107 | 3,764 | |
Other current liabilities | 2,945 | 3,809 | |
Total current liabilities | 34,554 | 48,924 | |
Long-term debt | 1,061,944 | 1,008,752 | |
Other long-term liabilities | 16,397 | 20,744 | [1] |
Deferred revenue | 39,441 | 39,063 | |
Class B unit | 35,807 | 33,941 | |
Partners’ equity: | |||
Common unitholders (58,657,048 units issued and outstanding at March 31, 2016 and December 31, 2015 | 425,669 | 428,019 | |
General partner interest (2% interest) | (137,228) | (130,297) | [1] |
Accumulated other comprehensive loss | (263) | 190 | |
Total partners’ equity | 288,178 | 297,912 | |
Noncontrolling interest | 96,240 | 94,429 | |
Total Equity | 384,418 | 392,341 | |
Total liabilities and equity | $ 1,572,561 | $ 1,543,765 | |
[1] | Retrospectively adjusted as described in Note 1. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues: | |||
Affiliates | $ 82,846 | $ 72,255 | |
Third parties | 19,164 | 17,501 | |
Total revenues | 102,010 | 89,756 | |
Operating costs and expenses: | |||
Operations (exclusive of depreciation and amortization) | 26,922 | 28,065 | [1] |
Depreciation and amortization | 16,551 | 14,798 | [1] |
General and administrative | 3,091 | 3,290 | |
Total operating costs and expenses | 46,564 | 46,153 | [1] |
Operating income | 55,446 | 43,603 | [1] |
Other income (expense): | |||
Equity in Earnings of Equity Method Investments | 2,765 | 734 | |
Interest expense | (10,535) | (8,768) | |
Interest income | 112 | 0 | |
Gain on sale of assets | 0 | 159 | |
Other (income) expense | (8) | 0 | |
Total other income (expense) | (7,666) | (7,875) | |
Income before income taxes | 47,780 | 35,728 | [1] |
State income tax (expense) benefit | (95) | (101) | |
Net Income | 47,685 | 35,627 | [1] |
Allocation of Net Income Attributable to Noncontrolling Interest | (4,927) | (4,027) | |
Net income attributable to Holly Energy Partners | 42,758 | 31,600 | [1] |
General partner interest in net income, including incentive distributions | (11,886) | (9,607) | [1] |
Limited partners’ interest in net income | $ 30,872 | $ 21,993 | [1] |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 0.52 | $ 0.37 | |
Weighted average limited partners’ units outstanding | 58,657 | 58,657 | |
[1] | Retrospectively adjusted as described in Note 1. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Net income | $ 47,685 | $ 35,627 | [1] |
Other comprehensive income: | |||
Change in fair value of cash flow hedging instruments | (683) | (1,280) | |
Reclassification adjustment to net income on partial settlement of cash flow hedge | 230 | 531 | |
Other comprehensive income (loss) | (453) | (749) | |
Comprehensive income before noncontrolling interest | 47,232 | 34,878 | [1] |
Allocation of comprehensive income to noncontrolling interests | (4,927) | (4,027) | |
Comprehensive income attributable to Holly Energy Partners | $ 42,305 | $ 30,851 | [1] |
[1] | Retrospectively adjusted as described in Note 1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities | |||
Net income | $ 47,685 | $ 35,627 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16,551 | 14,798 | [1] |
Gain on sale of assets | 0 | (159) | |
Amortization of deferred charges | 593 | 436 | |
Amortization of restricted and performance units | 651 | 896 | |
Distributions less than income from equity investments | (365) | 0 | |
(Increase) decrease in operating assets: | |||
Accounts receivable – trade | 657 | (5,065) | |
Accounts receivable – affiliates | (637) | 5,804 | |
Prepaid and other current assets | (128) | 39 | |
Increase (decrease) in operating liabilities: | |||
Accounts payable – trade | (1,082) | 1,748 | |
Accounts payable – affiliates | (5,460) | 10,564 | |
Accrued interest | (4,780) | (4,811) | |
Deferred revenue | (4,588) | (3,355) | |
Accrued property taxes | 343 | 42 | |
Other current liabilities | (843) | 57 | |
Other, net | (295) | 4,171 | |
Net cash provided by operating activities | 48,302 | 60,792 | |
Cash flows from investing activities | |||
Additions to Properties and Equipment | (17,873) | (24,227) | [1] |
Purchase of El Dorado crude tanks | 0 | (27,500) | |
Proceeds from sale of assets | 12 | 218 | |
Distributions in excess of equity in earnings of SLC Pipeline | 99 | 16 | |
Net cash used for investing activities | (17,762) | (51,493) | |
Cash flows from financing activities | |||
Borrowings under credit agreement | 522,000 | 153,500 | |
Repayments of credit agreement borrowings | (469,000) | (130,500) | |
Proceeds from Contributions from Parent | 0 | 12,563 | [1] |
Proceeds from Partnership Contribution | 99 | 472 | [1] |
Distributions to HEP unitholders | (44,960) | (40,865) | |
Distributions to noncontrolling interests | (1,250) | (1,250) | |
Distribution to HFC for Tulsa Tank Acquisition | (39,500) | 0 | |
Purchase of units for incentive grants | (784) | (247) | |
Deferred financing costs | 2,964 | 0 | |
Other | (160) | 0 | |
Net cash used for financing activities | (36,519) | (6,327) | |
Cash and cash equivalents | |||
Increase (decrease) for the period | (5,979) | 2,972 | |
Beginning of period | 15,013 | 2,830 | |
End of period | $ 9,034 | $ 5,802 | |
[1] | Retrospectively adjusted as described in Note 1. |
Consolidated Statement of Partn
Consolidated Statement of Partners' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Units | General Partner Interest | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Tulsa Tanks [Member] | |
Partners' Capital Account, Contributions | $ 32,455 | $ 32,455 | $ 0 | ||||
General Partner Distributions | (948) | $ (39,500) | |||||
Proceeds from Partnership Contribution | 99 | $ 99 | |||||
Balance at Dec. 31, 2015 | 392,341 | $ 428,019 | (130,297) | [1] | $ 190 | 94,429 | |
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||||
Distributions to HEP unitholders | (44,960) | (33,126) | (11,834) | ||||
Distributions to Noncontrolling Interest | (1,250) | (1,250) | |||||
Purchase of units for incentive grants | (784) | (784) | |||||
Amortization of restricted and performance units | 651 | 651 | |||||
Class B unit accretion | (1,866) | (1,829) | (37) | ||||
Net income | 47,685 | 32,738 | 11,886 | 3,061 | |||
Other comprehensive income | (453) | (453) | |||||
Balance at Mar. 31, 2016 | $ 384,418 | $ 425,669 | $ (137,228) | $ (263) | $ 96,240 | ||
[1] | Retrospectively adjusted as described in Note 1. |
Description of Business and Pre
Description of Business and Presentation of Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business and Presentation of Financial Statements | Description of Business and Presentation of Financial Statements 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, loading rack facilities and refinery processing units. We own and operate petroleum product and crude oil pipelines, terminals, 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 UNEV Pipeline, LLC, a 50% interest in Frontier Pipeline Company, a 50% interest in Osage Pipe Line Company, LLC (“Osage”), and a 25% interest in SLC Pipeline LLC. 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. The consolidated financial statements included herein have been prepared without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The interim financial statements reflect all adjustments, which, in the opinion of management, are necessary for a fair presentation of our results for the interim periods. Such adjustments are considered to be of a normal recurring nature. Although certain notes and other information required by U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015 . Results of operations for interim periods are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2016 . Acquisitions Tulsa Tanks On March 31, 2016, we acquired crude oil tanks located at HFC’s Tulsa refinery from an affiliate of Plains All American Pipeline, L.P. (“Plains”) for $39.5 million . Previously in 2009, HFC sold these tanks to Plains and leased them back, and due to HFC’s continuing interest in the tanks, HFC accounted for the transaction as a financing arrangement. Accordingly, the tanks remained on HFC’s balance sheet and were depreciated for accounting purposes. As we are a consolidated variable interest entity of HFC, this transaction was recorded as a transfer between entities under common control and reflects HFC’s carrying basis in the net assets acquired. We have retrospectively adjusted our financial position and operating results as if these crude oil tanks were owned for all periods while we were under common control of HFC. The 2015 consolidated income statement was adjusted to reflect a $0.2 million increase in operating costs and expenses for the three months ended March 31, 2015, the consolidated balance sheet was adjusted to reflect increases of $9.3 million in net properties and equipment, $0.1 million in other long-term liabilities and $9.2 million in general partner interest at March 31, 2015. The consolidated statement of cash flows for the three months ended March 31, 2015, reflects these changes in cash flows from investing and financing activities. In connection with this transaction, we expect to enter into a 10-year throughput agreement containing minimum quarterly throughput commitments from HFC that are expected to provide minimum annualized revenues of $6.1 million . Osage On February 22, 2016, HFC obtained a 50% membership interest in 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 requiring 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 connects to the Jayhawk pipeline serving the CHS Inc. refinery in McPherson, Kansas. The Osage Pipeline is the primary pipeline supplying 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 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. Since we are a consolidated variable interest entity of HFC, this transaction was recorded as a transfer between entities under common control and reflects HFC’s carrying basis of its 50% membership interest in Osage of $44.0 million offset by our net carrying basis in the El Paso terminal of $12.0 million with the difference treated as a contribution from HFC. The carrying value of our 50% membership interest in Osage of $44.0 million exceeds the amount of the underlying equity in net assets recorded by Osage by $33.0 million . El Dorado Operating 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 (“El Dorado Operating”), 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 . As we are a consolidated variable interest entity of HFC, this transaction was recorded as a transfer between entities under common control and reflects HFC’s carrying basis in El Dorado Operating’s assets and liabilities. We have retrospectively adjusted our financial position and operating results as if El Dorado Operating were a consolidated subsidiary for all periods while we were under common control of HFC. The consolidated statement of cash flows for the three months ending March 31, 2015, reflects a $12.6 million recast between investing activities and financing activities. 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. 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. We adopted the new standard effective January 1, 2016. This standard had no impact on the entities we consolidate. 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. Leases In February 2016, an accounting standard update was issued requiring leases to be measured and recognized as a lease liability, with a corresponding right-of-use asset on the balance sheet. This standard has an effective date of January 1, 2019, and we are evaluating the impact of this standard. Earnings Per Unit In April 2015, an accounting standard update was issued requiring changes to the allocation of the earnings or losses of a transferred business for periods before the date of a dropdown of net assets accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit. We have adopted this standard as of January 1, 2016, as required. In connection with the dropdown of assets from HFC’s Tulsa refinery on March 31, 2016, we reduced net income by $0.2 million for the three months ending March 31, 2015. This reduction had no impact on the historical earnings per unit. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 Financial Instrument Fair Value Input Level Carrying Value Fair Value Carrying Value Fair Value (In thousands) Assets: Interest rate swaps Level 2 $ — $ — $ 304 $ 304 Liabilities: 6.5% Senior notes Level 2 $ 296,944 $ 295,500 $ 296,752 $ 295,500 Interest rate swaps Level 2 263 263 114 114 $ 297,207 $ 295,763 $ 296,866 $ 295,614 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 6 for additional information on these instruments. |
Properties and Equipment
Properties and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | Properties and Equipment The carrying amounts of our properties and equipment are as follows: March 31, December 31, 2015 (1) (In thousands) Pipelines, terminals and tankage $ 1,200,516 $ 1,231,597 Land and right of way 65,274 66,215 Refinery assets 64,371 63,336 Construction in progress 43,201 28,249 Other 23,573 22,200 1,396,935 1,411,597 Less accumulated depreciation 344,163 352,418 $ 1,052,772 $ 1,059,179 (1) Retrospectively adjusted as described in Note 1. We capitalized $0.1 million and $0.3 million in interest attributable to construction projects during the three months ended March 31, 2016 and 2015 , respectively. Depreciation expense was $14.7 million and $12.9 million for the three months ended March 31, 2016 and 2015 , respectively. |
Transportation Agreements
Transportation Agreements | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [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: March 31, December 31, (In thousands) Alon transportation agreement $ 59,933 $ 59,933 HFC transportation agreement 74,231 74,231 Other 50 50 134,214 134,214 Less accumulated amortization 62,147 60,409 $ 72,067 $ 73,805 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 $1.6 million and $1.4 million for the three months ended March 31, 2016 and 2015 , 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, Cheyenne and Tulsa refineries, and HLS reimburses HFC for its prorated portion of the wages, benefits, and other costs related to these employees. 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. As of March 31, 2016 , we have two types of incentive-based awards outstanding, which are described below. The compensation cost charged against income was $0.7 million and $0.8 million for the three months ended March 31, 2016 and 2015 , 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 March 31, 2016 , 2,500,000 units were authorized to be granted under our Long-Term Incentive Plan, of which 1,480,449 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 activity and changes during the three months ended March 31, 2016 , is presented below: Restricted Units Units Weighted Average Grant-Date Fair Value Outstanding at January 1, 2016 (nonvested) 101,408 $ 33.63 Granted 10,725 24.48 Outstanding at March 31, 2016 (nonvested) 112,133 $ 32.76 As of March 31, 2016 , there was $2.2 million of total unrecognized compensation expense related to nonvested restricted unit grants, which is expected to be recognized over a weighted-average period of 1.3 years. 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 a three-year performance period based upon the growth in our distributable cash flow per common unit over the performance period. As of March 31, 2016 , estimated unit payouts for outstanding nonvested performance unit awards ranged between 100% and 150% . We granted 10,725 performance units during the three months ended March 31, 2016 . Performance units granted in 2015 and during the three months ended March 31, 2016, 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. A summary of performance unit activity and changes during the three months ended March 31, 2016 , is presented below: Performance Units Units Outstanding at January 1, 2016 (nonvested) 45,494 Granted 10,725 Vesting and transfer of common units to recipients (26,157 ) Outstanding at March 31, 2016 (Nonvested) 30,062 The grant-date fair value of performance units vested and transferred to recipients during the three months ended March 31, 2016 , was $1.1 million . Based on the weighted average fair value of performance units outstanding at March 31, 2016 , of $0.9 million , there was $0.7 million of total unrecognized compensation expense related to nonvested performance units, which is expected to be recognized over a weighted-average period of 2.4 years. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Instruments [Abstract] | |
Debt | Debt Credit Agreement In March 2016, we amended our senior secured revolving credit facility (the “Credit Agreement”) expiring in November 2018, increasing the size of the Credit Agreement from $850 million to $1.2 billion . 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. 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. The Credit Agreement imposes certain requirements on us with which we were in compliance as of March 31, 2016 , 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 March 31, 2016 , 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. Indebtedness under the 6.5% Senior Notes involves recourse to HEP Logistics, our general partner, and is guaranteed by our 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. Long-term Debt The carrying amounts of our long-term debt are as follows: March 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 765,000 $ 712,000 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (3,056 ) (3,248 ) 296,944 296,752 Total long-term debt $ 1,061,944 $ 1,008,752 Interest Rate Risk Management We use interest rate swaps (derivative instruments) to manage our exposure to interest rate risk. As of March 31, 2016 , we have two interest rate swaps with identical terms that hedge our exposure to the cash flow risk caused by the effects of LIBOR changes on $150 million of Credit Agreement advances. The swaps 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 March 31, 2016 , 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 these interest rate swaps are effective in offsetting the variability in interest payments on $150 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 $150 million of our variable rate debt. Any ineffectiveness is recorded directly to interest expense. As of March 31, 2016 , we had no ineffectiveness on our cash flow hedges. At March 31, 2016 , we have accumulated other comprehensive loss of $0.3 million that relates to our current cash flow hedging instruments. Approximately $0.2 million will be transferred from accumulated other comprehensive loss 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) March 31, 2016 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contracts ($150 million of LIBOR-based debt interest) Other long-term liabilities $ (263 ) Accumulated other comprehensive income $ (263 ) $ (263 ) $ (263 ) 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 assets $ 304 Accumulated other comprehensive loss $ 304 Variable-to-fixed interest rate swap contracts ($155 million of LIBOR-based debt interest) Other long-term liabilities (114 ) Accumulated other (114 ) $ 190 $ 190 Interest Expense and Other Debt Information Interest expense consists of the following components: Three Months Ended March 31, 2016 2015 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 5,006 $ 3,657 6.5% Senior Notes 4,875 4,875 Amortization of discount and deferred debt issuance costs 593 436 Commitment fees 201 77 Total interest incurred 10,675 9,045 Less capitalized interest 140 277 Net interest expense $ 10,535 $ 8,768 Cash paid for interest $ 14,841 $ 13,400 Capital Lease Obligations Our capital lease obligations, which relate to vehicle leases with initial terms of 33 to 36 months, are $1.8 million as of both March 31, 2016 and December 31, 2015. The total cost of assets under capital leases was $3.3 million and $3.0 million as of March 31, 2016 and December 31, 2015 , respectively, with accumulated depreciation of $1.3 million and $1.1 million as of March 31, 2016 and December 31, 2015 , respectively. We include depreciation of capital leases in depreciation and amortization in our consolidated statements of income. |
Significant Customers
Significant Customers | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | Significant Customers All revenues are domestic revenues, of which 89% are currently generated from our two largest customers: HFC and Alon. The following table presents the percentage of total revenues generated by each of these customers: Three Months Ended March 31, 2016 2015 HFC 81 % 81 % Alon 8 % 9 % |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We serve HFC’s refineries under long-term pipeline, terminal and tankage throughput agreements, and refinery processing unit tolling 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, terminals, 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 Producer Price Index (“PPI”) or Federal Energy Regulatory Commission (“FERC”) index. As of March 31, 2016 , these agreements with HFC require minimum annualized payments to us of $263.7 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 (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 $82.8 million and $72.3 million for the three months ended March 31, 2016 and 2015 , respectively. • HFC charged us general and administrative services under the Omnibus Agreement of $0.6 million for each of the three months ended March 31, 2016 and 2015 . • We reimbursed HFC for costs of employees supporting our operations of $9.8 million and $8.8 million for the three months ended March 31, 2016 and 2015 , respectively. • HFC reimbursed us $1.8 million and $2.6 million for the three months ended March 31, 2016 and 2015 , respectively, for certain reimbursable costs and capital projects. • We distributed $24.5 million and $21.6 million for the three months ended March 31, 2016 and 2015 , respectively, to HFC as regular distributions on its common units and general partner interest, including general partner incentive distributions. • Accounts receivable from HFC were $33.1 million and $32.5 million at March 31, 2016 , and December 31, 2015 , respectively. • Accounts payable to HFC were $6.2 million and $11.6 million at March 31, 2016 , and December 31, 2015 , respectively. • Revenues for the three months ended March 31, 2016 and 2015 , include $5.2 million and $5.6 million , respectively, of shortfall payments billed in 2015 and 2014, 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 March 31, 2016 , and December 31, 2015 , includes $1.5 million and $6.4 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 $1.5 million deferred at March 31, 2016 . • On February 22, 2016, HFC obtained a 50% membership interest in Osage in a non-monetary exchange, whereby a subsidiary of Magellan will provide terminalling services for all HFC products originating in Artesia, New Mexico that require terminalling in or through El Paso, Texas. 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. See Note 1 for a description of this transaction. • On March 31, 2016, we acquired crude oil tanks located at HFC’s Tulsa refinery from an affiliate of Plains All American Pipeline, L.P. for $39.5 million . See Note 1 for a description of this transaction. |
Partners' Equity
Partners' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Partners' Capital [Abstract] | |
Partners' Equity | Partners’ Equity As of March 31, 2016 , 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 in us. 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: Three Months Ended March 31, 2016 2015 (In thousands) General partner interest in net income $ 413 $ 246 General partner incentive distribution 11,473 9,361 Total general partner interest in net income $ 11,886 $ 9,607 Cash Distributions Our general partner, HEP Logistics, is entitled to incentive distributions if the amount we distribute with respect to any quarter exceeds specified target levels. On April 22, 2016 , we announced our cash distribution for the first quarter of 2016 of $0.575 per unit. The distribution is payable on all common and general partner units and will be paid May 13, 2016 , to all unitholders of record on May 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. Three Months Ended March 31, 2016 2015 (In thousands, except per unit data) General partner interest in distribution $ 948 $ 860 General partner incentive distribution 11,473 9,361 Total general partner distribution 12,421 10,221 Limited partner distribution 33,728 31,528 Total regular quarterly cash distribution $ 46,149 $ 41,749 Cash distribution per unit applicable to limited partners $ 0.5750 $ 0.5375 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 | 3 Months Ended |
Mar. 31, 2016 | |
Accrual for Environmental Loss Contingencies [Abstract] | |
Environmental | Environmental We incurred no expenses for the three months ended March 31, 2016 and $4.2 million for the three months ended March 31, 2015 , for environmental remediation obligations. The accrued environmental liability, net of expected recoveries from indemnifying parties, reflected in our consolidated balance sheets was $7.4 million and $7.7 million at March 31, 2016 , and December 31, 2015 , respectively, of which $5.8 million and $6.1 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 March 31, 2016 , and December 31, 2015 , our accrued environmental liability included $1.0 million and $6.4 million , respectively, for HFC indemnified liabilities, and other assets included equal and offsetting balances representing amounts due from HFC related to indemnifications for environmental remediation liabilities. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 operation or cash flows. |
Supplemental Guarantor _ Non-Gu
Supplemental Guarantor / Non-Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 1,003 $ 8,029 $ — $ 9,034 Accounts receivable — 36,505 4,721 (170 ) 41,056 Prepaid and other current assets 199 3,766 1,216 — 5,181 Total current assets 201 41,274 13,966 (170 ) 55,271 Properties and equipment, net — 672,825 379,947 — 1,052,772 Investment in subsidiaries 586,328 288,721 — (875,049 ) — Transportation agreements, net — 72,067 — — 72,067 Goodwill — 256,498 — — 256,498 Equity method investments — 124,134 — — 124,134 Other assets 658 11,161 — — 11,819 Total assets $ 587,187 $ 1,466,680 $ 393,913 $ (875,219 ) $ 1,572,561 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 12,124 $ 6,526 $ (170 ) $ 18,480 Accrued interest 1,625 347 — — 1,972 Deferred revenue — 6,736 314 — 7,050 Accrued property taxes — 2,210 1,897 — 4,107 Other current liabilities 213 2,692 40 — 2,945 Total current liabilities 1,838 24,109 8,777 (170 ) 34,554 Long-term debt 296,944 765,000 — — 1,061,944 Other long-term liabilities 227 15,995 175 — 16,397 Deferred revenue — 39,441 — — 39,441 Class B unit — 35,807 — — 35,807 Equity - partners 288,178 586,328 384,961 (971,289 ) 288,178 Equity - noncontrolling interest — — — 96,240 96,240 Total liabilities and equity $ 587,187 $ 1,466,680 $ 393,913 $ (875,219 ) $ 1,572,561 Condensed Consolidating Balance Sheet December 31, 2015 (1) 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 — 687,336 371,843 — 1,059,179 Investment in subsidiaries 600,563 283,287 — (883,850 ) — 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 $ 601,381 $ 1,438,069 $ 388,363 $ (884,048 ) $ 1,543,765 LIABILITIES AND 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 20,363 171 — 20,744 Deferred revenue — 39,063 — — 39,063 Class B unit — 33,941 — — 33,941 Equity - partners 297,912 600,563 377,716 (978,279 ) 297,912 Equity - noncontrolling interest — — — 94,429 94,429 Total liabilities and equity $ 601,381 $ 1,438,069 $ 388,363 $ (884,048 ) $ 1,543,765 (1) Retrospectively adjusted as described in Note 1. Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 72,252 $ 10,594 $ — $ 82,846 Third parties — 10,732 8,432 — 19,164 — 82,984 19,026 — 102,010 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 23,891 3,031 — 26,922 Depreciation and amortization 12,793 3,758 — 16,551 General and administrative 1,165 1,926 — — 3,091 1,165 38,610 6,789 — 46,564 Operating income (loss) (1,165 ) 44,374 12,237 — 55,446 Equity in earnings of subsidiaries 48,990 9,184 — (58,174 ) — Equity in earnings of equity method investments — 2,765 — — 2,765 Interest expense (5,067 ) (5,468 ) — — (10,535 ) Interest income — 105 7 — 112 Other income (expense) — (9 ) 1 — (8 ) 43,923 6,577 8 (58,174 ) (7,666 ) Income (loss) before income taxes 42,758 50,951 12,245 (58,174 ) 47,780 State income tax expense — (95 ) — — (95 ) Net income (loss) 42,758 50,856 12,245 (58,174 ) 47,685 Allocation of net (income) attributable to noncontrolling interests — — — (4,927 ) (4,927 ) Net income (loss) attributable to Holly Energy Partners 42,758 50,856 12,245 (63,101 ) 42,758 Other comprehensive income (loss) (453 ) (453 ) — 453 (453 ) Comprehensive income (loss) attributable to Holly Energy Partners $ 42,305 $ 50,403 $ 12,245 $ (62,648 ) $ 42,305 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 63,056 $ 9,224 $ (25 ) $ 72,255 Third parties — 11,387 6,114 — 17,501 — 74,443 15,338 (25 ) 89,756 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 25,630 2,460 (25 ) 28,065 Depreciation and amortization — 11,066 3,732 — 14,798 General and administrative 1,063 2,227 — — 3,290 1,063 38,923 6,192 (25 ) 46,153 Operating income (loss) (1,063 ) 35,520 9,146 — 43,603 Equity in earnings of subsidiaries 37,730 6,860 — (44,590 ) — Equity in earnings of equity method investments — 734 — — 734 Interest expense (5,067 ) (3,701 ) — — (8,768 ) Gain on sale of assets — 159 — — 159 32,663 4,052 — (44,590 ) (7,875 ) Income (loss) before income taxes 31,600 39,572 9,146 (44,590 ) 35,728 State income tax expense — (101 ) — — (101 ) Net income (loss) 31,600 39,471 9,146 (44,590 ) 35,627 Allocation of net (income) attributable to noncontrolling interests — — — (4,027 ) (4,027 ) Net income (loss) attributable to Holly Energy Partners 31,600 39,471 9,146 (48,617 ) 31,600 Other comprehensive income (loss) (749 ) (749 ) — 749 (749 ) Comprehensive income (loss) attributable to Holly Energy Partners $ 30,851 $ 38,722 $ 9,146 $ (47,868 ) $ 30,851 (1) Retrospectively adjusted as described in Note 1. Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (10,084 ) $ 48,712 $ 13,424 $ (3,750 ) $ 48,302 Cash flows from investing activities Additions to properties and equipment — (7,919 ) (9,954 ) — (17,873 ) Proceeds from sale of assets — 12 — — 12 Distributions in excess of equity in earnings of equity investments — 99 — — 99 — (7,808 ) (9,954 ) — (17,762 ) Cash flows from financing activities Net borrowings under credit agreement — 53,000 — — 53,000 Net intercompany financing activities 53,751 (53,751 ) — — — Contribution from general partners 32,455 (32,455 ) — — — Distributions to HEP unitholders (44,960 ) — — — (44,960 ) Distributions to HFC for Tulsa Tanks (30,378 ) (9,122 ) — — (39,500 ) Contributions from HFC for Tulsa Tanks — 99 — — 99 Distributions to noncontrolling interests — — (5,000 ) 3,750 (1,250 ) Purchase of units for incentive grants (784 ) — — — (784 ) Deferred financing cost — (2,964 ) — — (2,964 ) Other — (160 ) — — (160 ) 10,084 (45,353 ) (5,000 ) 3,750 (36,519 ) Cash and cash equivalents Increase (decrease) for the period — (4,449 ) (1,530 ) — (5,979 ) Beginning of period 2 5,452 9,559 — 15,013 End of period $ 2 $ 1,003 $ 8,029 $ — $ 9,034 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (9,873 ) $ 63,029 $ 8,328 $ (692 ) $ 60,792 Cash flows from investing activities Additions to properties and equipment — (23,919 ) (308 ) — (24,227 ) Purchase of El Dorado crude tanks — (27,500 ) — — (27,500 ) Proceeds from sale of assets — 218 — — 218 Distributions from noncontrolling interest — 3,058 — (3,058 ) — Distributions in excess of equity in earnings of equity investments — 16 — — 16 — (48,127 ) (308 ) (3,058 ) (51,493 ) Cash flows from financing activities Net repayments under credit agreement — 23,000 — — 23,000 Net intercompany financing activities 50,985 (50,985 ) — — — Contributions from HFC for El Dorado Operating acquisition — 12,563 — — 12,563 Distributions to HEP unitholders (40,865 ) — — — (40,865 ) Contribution from HFC for Tulsa tank acquisition — 472 — — 472 Distributions to noncontrolling interests — — (5,000 ) 3,750 (1,250 ) Purchase of units for incentive grants (247 ) — — — (247 ) 9,873 (14,950 ) (5,000 ) 3,750 (6,327 ) Cash and cash equivalents Increase (decrease) for the period — (48 ) 3,020 — 2,972 Beginning of period 2 2,828 — — 2,830 End of period $ 2 $ 2,780 $ 3,020 $ — $ 5,802 (1) Retrospectively adjusted as described in Note 1. |
Description of Business and P20
Description of Business and Presentation of Financial Statements Accounting Policy Descriptions (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | 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. 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. We adopted the new standard effective January 1, 2016. This standard had no impact on the entities we consolidate. 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. Leases In February 2016, an accounting standard update was issued requiring leases to be measured and recognized as a lease liability, with a corresponding right-of-use asset on the balance sheet. This standard has an effective date of January 1, 2019, and we are evaluating the impact of this standard. Earnings Per Unit In April 2015, an accounting standard update was issued requiring changes to the allocation of the earnings or losses of a transferred business for periods before the date of a dropdown of net assets accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit. We have adopted this standard as of January 1, 2016, as required. In connection with the dropdown of assets from HFC’s Tulsa refinery on March 31, 2016, we reduced net income by $0.2 million for the three months ending March 31, 2015. This reduction had no impact on the historical earnings per unit. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 Financial Instrument Fair Value Input Level Carrying Value Fair Value Carrying Value Fair Value (In thousands) Assets: Interest rate swaps Level 2 $ — $ — $ 304 $ 304 Liabilities: 6.5% Senior notes Level 2 $ 296,944 $ 295,500 $ 296,752 $ 295,500 Interest rate swaps Level 2 263 263 114 114 $ 297,207 $ 295,763 $ 296,866 $ 295,614 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | The carrying amounts of our properties and equipment are as follows: March 31, December 31, 2015 (1) (In thousands) Pipelines, terminals and tankage $ 1,200,516 $ 1,231,597 Land and right of way 65,274 66,215 Refinery assets 64,371 63,336 Construction in progress 43,201 28,249 Other 23,573 22,200 1,396,935 1,411,597 Less accumulated depreciation 344,163 352,418 $ 1,052,772 $ 1,059,179 (1) Retrospectively adjusted as described in Note 1. |
Transportation Agreements (Tabl
Transportation Agreements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets by Major Class | The carrying amounts of our transportation agreements are as follows: March 31, December 31, (In thousands) Alon transportation agreement $ 59,933 $ 59,933 HFC transportation agreement 74,231 74,231 Other 50 50 134,214 134,214 Less accumulated amortization 62,147 60,409 $ 72,067 $ 73,805 |
Employees, Retirement and Inc24
Employees, Retirement and Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted unit activity and changes during the three months ended March 31, 2016 , is presented below: Restricted Units Units Weighted Average Grant-Date Fair Value Outstanding at January 1, 2016 (nonvested) 101,408 $ 33.63 Granted 10,725 24.48 Outstanding at March 31, 2016 (nonvested) 112,133 $ 32.76 |
Schedule of Nonvested Performance-based Units Activity | A summary of performance unit activity and changes during the three months ended March 31, 2016 , is presented below: Performance Units Units Outstanding at January 1, 2016 (nonvested) 45,494 Granted 10,725 Vesting and transfer of common units to recipients (26,157 ) Outstanding at March 31, 2016 (Nonvested) 30,062 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying amounts of our long-term debt are as follows: March 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 765,000 $ 712,000 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (3,056 ) (3,248 ) 296,944 296,752 Total long-term debt $ 1,061,944 $ 1,008,752 |
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) March 31, 2016 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contracts ($150 million of LIBOR-based debt interest) Other long-term liabilities $ (263 ) Accumulated other comprehensive income $ (263 ) $ (263 ) $ (263 ) 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 assets $ 304 Accumulated other comprehensive loss $ 304 Variable-to-fixed interest rate swap contracts ($155 million of LIBOR-based debt interest) Other long-term liabilities (114 ) Accumulated other (114 ) $ 190 $ 190 |
Schedule of Interest Expense and Other Debt Information | Interest expense consists of the following components: Three Months Ended March 31, 2016 2015 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 5,006 $ 3,657 6.5% Senior Notes 4,875 4,875 Amortization of discount and deferred debt issuance costs 593 436 Commitment fees 201 77 Total interest incurred 10,675 9,045 Less capitalized interest 140 277 Net interest expense $ 10,535 $ 8,768 Cash paid for interest $ 14,841 $ 13,400 |
Significant Customers (Tables)
Significant Customers (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: Three Months Ended March 31, 2016 2015 HFC 81 % 81 % Alon 8 % 9 % |
Partners' Equity (Tables)
Partners' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: Three Months Ended March 31, 2016 2015 (In thousands) General partner interest in net income $ 413 $ 246 General partner incentive distribution 11,473 9,361 Total general partner interest in net income $ 11,886 $ 9,607 |
Schedule of Distributions Made to Members or Limited Partners | 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. Three Months Ended March 31, 2016 2015 (In thousands, except per unit data) General partner interest in distribution $ 948 $ 860 General partner incentive distribution 11,473 9,361 Total general partner distribution 12,421 10,221 Limited partner distribution 33,728 31,528 Total regular quarterly cash distribution $ 46,149 $ 41,749 Cash distribution per unit applicable to limited partners $ 0.5750 $ 0.5375 |
Supplemental Guarantor _ Non-28
Supplemental Guarantor / Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet March 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 1,003 $ 8,029 $ — $ 9,034 Accounts receivable — 36,505 4,721 (170 ) 41,056 Prepaid and other current assets 199 3,766 1,216 — 5,181 Total current assets 201 41,274 13,966 (170 ) 55,271 Properties and equipment, net — 672,825 379,947 — 1,052,772 Investment in subsidiaries 586,328 288,721 — (875,049 ) — Transportation agreements, net — 72,067 — — 72,067 Goodwill — 256,498 — — 256,498 Equity method investments — 124,134 — — 124,134 Other assets 658 11,161 — — 11,819 Total assets $ 587,187 $ 1,466,680 $ 393,913 $ (875,219 ) $ 1,572,561 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 12,124 $ 6,526 $ (170 ) $ 18,480 Accrued interest 1,625 347 — — 1,972 Deferred revenue — 6,736 314 — 7,050 Accrued property taxes — 2,210 1,897 — 4,107 Other current liabilities 213 2,692 40 — 2,945 Total current liabilities 1,838 24,109 8,777 (170 ) 34,554 Long-term debt 296,944 765,000 — — 1,061,944 Other long-term liabilities 227 15,995 175 — 16,397 Deferred revenue — 39,441 — — 39,441 Class B unit — 35,807 — — 35,807 Equity - partners 288,178 586,328 384,961 (971,289 ) 288,178 Equity - noncontrolling interest — — — 96,240 96,240 Total liabilities and equity $ 587,187 $ 1,466,680 $ 393,913 $ (875,219 ) $ 1,572,561 Condensed Consolidating Balance Sheet December 31, 2015 (1) 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 — 687,336 371,843 — 1,059,179 Investment in subsidiaries 600,563 283,287 — (883,850 ) — 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 $ 601,381 $ 1,438,069 $ 388,363 $ (884,048 ) $ 1,543,765 LIABILITIES AND 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 20,363 171 — 20,744 Deferred revenue — 39,063 — — 39,063 Class B unit — 33,941 — — 33,941 Equity - partners 297,912 600,563 377,716 (978,279 ) 297,912 Equity - noncontrolling interest — — — 94,429 94,429 Total liabilities and equity $ 601,381 $ 1,438,069 $ 388,363 $ (884,048 ) $ 1,543,765 (1) Retrospectively adjusted as described in Note 1. |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 72,252 $ 10,594 $ — $ 82,846 Third parties — 10,732 8,432 — 19,164 — 82,984 19,026 — 102,010 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 23,891 3,031 — 26,922 Depreciation and amortization 12,793 3,758 — 16,551 General and administrative 1,165 1,926 — — 3,091 1,165 38,610 6,789 — 46,564 Operating income (loss) (1,165 ) 44,374 12,237 — 55,446 Equity in earnings of subsidiaries 48,990 9,184 — (58,174 ) — Equity in earnings of equity method investments — 2,765 — — 2,765 Interest expense (5,067 ) (5,468 ) — — (10,535 ) Interest income — 105 7 — 112 Other income (expense) — (9 ) 1 — (8 ) 43,923 6,577 8 (58,174 ) (7,666 ) Income (loss) before income taxes 42,758 50,951 12,245 (58,174 ) 47,780 State income tax expense — (95 ) — — (95 ) Net income (loss) 42,758 50,856 12,245 (58,174 ) 47,685 Allocation of net (income) attributable to noncontrolling interests — — — (4,927 ) (4,927 ) Net income (loss) attributable to Holly Energy Partners 42,758 50,856 12,245 (63,101 ) 42,758 Other comprehensive income (loss) (453 ) (453 ) — 453 (453 ) Comprehensive income (loss) attributable to Holly Energy Partners $ 42,305 $ 50,403 $ 12,245 $ (62,648 ) $ 42,305 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 63,056 $ 9,224 $ (25 ) $ 72,255 Third parties — 11,387 6,114 — 17,501 — 74,443 15,338 (25 ) 89,756 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 25,630 2,460 (25 ) 28,065 Depreciation and amortization — 11,066 3,732 — 14,798 General and administrative 1,063 2,227 — — 3,290 1,063 38,923 6,192 (25 ) 46,153 Operating income (loss) (1,063 ) 35,520 9,146 — 43,603 Equity in earnings of subsidiaries 37,730 6,860 — (44,590 ) — Equity in earnings of equity method investments — 734 — — 734 Interest expense (5,067 ) (3,701 ) — — (8,768 ) Gain on sale of assets — 159 — — 159 32,663 4,052 — (44,590 ) (7,875 ) Income (loss) before income taxes 31,600 39,572 9,146 (44,590 ) 35,728 State income tax expense — (101 ) — — (101 ) Net income (loss) 31,600 39,471 9,146 (44,590 ) 35,627 Allocation of net (income) attributable to noncontrolling interests — — — (4,027 ) (4,027 ) Net income (loss) attributable to Holly Energy Partners 31,600 39,471 9,146 (48,617 ) 31,600 Other comprehensive income (loss) (749 ) (749 ) — 749 (749 ) Comprehensive income (loss) attributable to Holly Energy Partners $ 30,851 $ 38,722 $ 9,146 $ (47,868 ) $ 30,851 (1) Retrospectively adjusted as described in Note 1. |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (10,084 ) $ 48,712 $ 13,424 $ (3,750 ) $ 48,302 Cash flows from investing activities Additions to properties and equipment — (7,919 ) (9,954 ) — (17,873 ) Proceeds from sale of assets — 12 — — 12 Distributions in excess of equity in earnings of equity investments — 99 — — 99 — (7,808 ) (9,954 ) — (17,762 ) Cash flows from financing activities Net borrowings under credit agreement — 53,000 — — 53,000 Net intercompany financing activities 53,751 (53,751 ) — — — Contribution from general partners 32,455 (32,455 ) — — — Distributions to HEP unitholders (44,960 ) — — — (44,960 ) Distributions to HFC for Tulsa Tanks (30,378 ) (9,122 ) — — (39,500 ) Contributions from HFC for Tulsa Tanks — 99 — — 99 Distributions to noncontrolling interests — — (5,000 ) 3,750 (1,250 ) Purchase of units for incentive grants (784 ) — — — (784 ) Deferred financing cost — (2,964 ) — — (2,964 ) Other — (160 ) — — (160 ) 10,084 (45,353 ) (5,000 ) 3,750 (36,519 ) Cash and cash equivalents Increase (decrease) for the period — (4,449 ) (1,530 ) — (5,979 ) Beginning of period 2 5,452 9,559 — 15,013 End of period $ 2 $ 1,003 $ 8,029 $ — $ 9,034 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (9,873 ) $ 63,029 $ 8,328 $ (692 ) $ 60,792 Cash flows from investing activities Additions to properties and equipment — (23,919 ) (308 ) — (24,227 ) Purchase of El Dorado crude tanks — (27,500 ) — — (27,500 ) Proceeds from sale of assets — 218 — — 218 Distributions from noncontrolling interest — 3,058 — (3,058 ) — Distributions in excess of equity in earnings of equity investments — 16 — — 16 — (48,127 ) (308 ) (3,058 ) (51,493 ) Cash flows from financing activities Net repayments under credit agreement — 23,000 — — 23,000 Net intercompany financing activities 50,985 (50,985 ) — — — Contributions from HFC for El Dorado Operating acquisition — 12,563 — — 12,563 Distributions to HEP unitholders (40,865 ) — — — (40,865 ) Contribution from HFC for Tulsa tank acquisition — 472 — — 472 Distributions to noncontrolling interests — — (5,000 ) 3,750 (1,250 ) Purchase of units for incentive grants (247 ) — — — (247 ) 9,873 (14,950 ) (5,000 ) 3,750 (6,327 ) Cash and cash equivalents Increase (decrease) for the period — (48 ) 3,020 — 2,972 Beginning of period 2 2,828 — — 2,830 End of period $ 2 $ 2,780 $ 3,020 $ — $ 5,802 (1) Retrospectively adjusted as described in Note 1. |
Description of Business and P29
Description of Business and Presentation of Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | ||
Other Ownership Interests [Line Items] | ||||
Ownership percentage, controlling interest | 39.00% | |||
General partner interest | 2.00% | |||
Equity Method Investment, Underlying Equity in Net Assets | $ 12,000 | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 33,000 | |||
General Partner Distributions | 948 | $ 860 | ||
Equity method investments | 124,134 | $ 79,438 | ||
Additions to Properties and Equipment | (17,873) | (24,227) | [1] | |
Proceeds from Contributions from Parent | $ 0 | $ 12,563 | [1] | |
SLC Pipeline [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 25.00% | |||
UNEV Pipeline [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 75.00% | |||
Frontier Pipeline [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Osage Pipeline [Member] [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Shareholders' Equity [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Business Combination, Consideration Transferred | $ 9,200 | |||
Tulsa Tanks [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Property, Plant and Equipment, Additions | 39,500 | |||
Business Acquisition, Pro Forma Net Income (Loss) | 200 | |||
General Partner Distributions | 39,500 | |||
Property Plant and Equipment Acquired [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Business Combination, Consideration Transferred | 9,300 | |||
Liability [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Business Combination, Consideration Transferred | 100 | |||
El Dorado [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Additions to Properties and Equipment | (62,000) | |||
Purchase Obligation Minimum Annualized Payment | $ 15,300 | |||
Plains Member | ||||
Other Ownership Interests [Line Items] | ||||
Purchase Obligation Minimum Annualized Payment | 6,100 | |||
Osage Pipeline [Member] [Member] | ||||
Other Ownership Interests [Line Items] | ||||
Business Combination, Consideration Transferred | $ 44,000 | |||
[1] | Retrospectively adjusted as described in Note 1. |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 295,763 | $ 295,614 |
Interest Rate Swap [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 304 |
Financial Liabilities Fair Value Disclosure | 263 | 114 |
6.5% Senior Notes [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 295,500 | 295,500 |
Carrying Amount [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 297,207 | 296,866 |
Carrying Amount [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 304 |
Financial Liabilities Fair Value Disclosure | 263 | 114 |
Carrying Amount [Member] | 6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 296,944 | $ 296,752 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | $ 1,396,935 | $ 1,411,597 | ||
Less accumulated depreciation | 344,163 | 352,418 | ||
Properties and equipment, net | 1,052,772 | 1,059,179 | [1] | |
Interest costs, capitalized during period | (140) | $ (277) | ||
Depreciation | 14,700 | $ 12,900 | ||
Pipelines and terminals [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 1,200,516 | 1,231,597 | ||
Land and right of way [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 65,274 | 66,215 | ||
324110 Petroleum Refineries [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 64,371 | 63,336 | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 43,201 | 28,249 | ||
Other Fixed Assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | $ 23,573 | $ 22,200 | ||
[1] | Retrospectively adjusted as described in Note 1. |
Transportation Agreements (Deta
Transportation Agreements (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)yr | Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Transportation agreements, gross | $ 134,214 | $ 134,214 |
Less accumulated amortization | 62,147 | 60,409 |
Transportation agreements, net | $ 72,067 | 73,805 |
Alon transportation agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life (years) | 30 years | |
Finite-Lived Intangible Assets, Useful Life, Initial Term (years) | yr | 15 | |
Finite-Lived Intangible Assets, Useful Life, Extension Period (years) | yr | 15 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Transportation agreements, gross | $ 59,933 | 59,933 |
HFC transportation agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life (years) | 15 years | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Transportation agreements, gross | $ 74,231 | 74,231 |
El Dorado [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Transportation agreements, gross | $ 50 | $ 50 |
Employees, Retirement and Inc33
Employees, Retirement and Incentive Plans Retirement and Benefit Plan Costs (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)TypesComponentsshares | Mar. 31, 2015USD ($) | |
Share-based Compensation Arrangements | ||
Employee benefits and share-based compensation | $ | $ 1.6 | $ 1.4 |
Long-term incentive plan, components | Components | 4 | |
Equity-based compensation, types | Types | 2 | |
Compensation costs of incentive awards | $ | $ 0.7 | $ 0.8 |
Deferred Bonus [Member] | ||
Share-based Compensation Arrangements | ||
Units authorized under equity-based compensation plans (new) | shares | 2,500,000 | |
Number of units available for grant | shares | 1,480,449 |
Employees, Retirement and Inc34
Employees, Retirement and Incentive Plans Restricted Units (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock [Member] | Minimum [Member] | ||
Share-based Compensation Arrangements | ||
Award vesting period | 1 year | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation Arrangements | ||
Award vesting period | 3 years | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangements | ||
Total unrecognized compensation related to nonvested units | $ 2.2 | |
Weighted average remaining contractual term (years) | 1 year 4 months | |
Nonvested restricted units outstanding | 112,133 | 101,408 |
Weighted average grant date fair value | $ 32.76 | $ 33.63 |
Share-based Compensation Arrangements, Grants | 10,725 | |
Weighted Average Grant Date Fair Value | $ 24.48 |
Employees, Retirement and Inc35
Employees, Retirement and Incentive Plans Performance Units (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Share-based Compensation Arrangement Instruments [Roll Forward] | |
Vested and Expected to Vest Shares Outstanding, Aggregate Intrinsic Value | $ | $ 0.9 |
Performance Shares [Member] | |
Share-based Compensation Arrangements | |
Share-based Compensation Arrangements, Grants | 10,725 |
Estimated Share Payouts Unit Awards Minimum | 100.00% |
Estimated Share Payouts Unit Awards Maximum | 150.00% |
Share-based Compensation Arrangement Instruments [Roll Forward] | |
Outstanding at January 1, 2016 (nonvested) | 45,494 |
Vesting and transfer of full ownership to recipients | (26,157) |
Outstanding at March 31, 2016 (nonvested) | 30,062 |
Fair value of vested units transferred to recipients | $ | $ 1.1 |
Total unrecognized compensation related to nonvested units | $ | $ 0.7 |
Weighted average remaining contractual term (years) | 2 years 5 months |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangements | |
Share-based Compensation Arrangements, Grants | 10,725 |
Share-based Compensation Arrangement Instruments [Roll Forward] | |
Outstanding at January 1, 2016 (nonvested) | 101,408 |
Outstanding at March 31, 2016 (nonvested) | 112,133 |
Total unrecognized compensation related to nonvested units | $ | $ 2.2 |
Weighted average remaining contractual term (years) | 1 year 4 months |
Executive Officer [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangements | |
Estimated Share Payouts Unit Awards Minimum | 50.00% |
Estimated Share Payouts Unit Awards Maximum | 150.00% |
Debt Senior Notes (Details)
Debt Senior Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | $ 850,000 |
6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 300,000 | $ 300,000 |
Stated interest rate, senior notes | 6.50% | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 |
Debt Long-Term Debt (Details)
Debt Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | $ 850,000 |
Credit Agreement | 765,000 | 712,000 |
Total long-term debt | 1,061,944 | 1,008,752 |
6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000 | 300,000 |
Unamortized discount | (3,056) | (3,248) |
Senior Notes | 296,944 | $ 296,752 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 |
Debt Interest Rate Risk Managem
Debt Interest Rate Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 765,000 | $ 712,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (263) | 190 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 200 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | 150,000 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 300 | |
Interest Rate Swap [Member] | Cash Flow Hedging, Added 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 150,000 | |
Long-term debt, fixed interest rate | 0.74% | |
Debt instrument, basis spread on variable rate | 2.25% | |
Debt instrument, effective interest rate | 2.99% | |
Other Liabilities [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative liabilities, fair value | $ (263) | |
Derivative Asset | 304 | |
Derivative Instruments and Hedges, Liabilities | (263) | 190 |
Other Assets [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative liabilities, fair value | (114) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Instruments and Hedges, Assets | (263) | |
Derivative liabilities, fair value | $ (263) | (114) |
Derivative Asset | 304 | |
Derivative Instruments and Hedges, Liabilities | $ 190 |
Debt Interest Expense and Other
Debt Interest Expense and Other Debt Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Interest expense, debt | $ 10,675 | $ 9,045 |
Less capitalized interest | (140) | (277) |
Interest expense | 10,535 | 8,768 |
Cash paid for interest | 14,841 | 13,400 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 5,006 | 3,657 |
Senior Notes [Member] | 6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 4,875 | 4,875 |
Amortization discount and deferred debt issuance costs [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 593 | 436 |
Loan Lending Commitment Arrangement Fees [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | $ 201 | $ 77 |
Debt Debt Capital Leases (Detai
Debt Debt Capital Leases (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Capital Leases [Abstract] | ||
Capital Lease Obligations | $ 1.8 | |
Capital Leased Assets, Gross | 3.3 | $ 3 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 1.3 | $ 1.1 |
Significant Customers (Details)
Significant Customers (Details) - Customers | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
HFC [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 81.00% | 81.00% |
Alon [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 8.00% | 9.00% |
Sales Revenue, Net [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 88.80% | |
Concentration risk, number of significant customers | 2 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Costs and Expenses, Related Party | $ 2,500 | ||
G & A Expenses from Transactions with Related Party | 600 | ||
Revenue from related parties | 82,846 | $ 72,255 | |
Expenses resulting from agreement with related party | 9,800 | 8,800 | |
Reimbursements received from related parties | 1,800 | 2,600 | |
Distributions to HEP unitholders | 44,960 | 40,865 | |
Due from Affiliate, Current | 33,100 | $ 32,500 | |
Due to Affiliate, Current | 6,175 | 11,635 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Other Commitments, Future Minimum Payments, Remainder of Fiscal Year | 263,700 | ||
Distributions to HEP unitholders | 24,500 | 21,600 | |
Shortfall Payments [Member] | |||
Related Party Transaction [Line Items] | |||
Deferred Revenue, Revenue Recognized | 5,200 | $ 5,600 | |
Deferred revenue, related parties | $ 1,500 | $ 6,400 | |
Osage Pipeline [Member] [Member] | |||
Related Party Transaction [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Tulsa Tanks [Member] | |||
Related Party Transaction [Line Items] | |||
Property, Plant and Equipment, Additions | $ 39,500 |
Partners' Equity, Issuances (De
Partners' Equity, Issuances (Details) | 3 Months Ended |
Mar. 31, 2016shares | |
Partners' Capital [Abstract] | |
Partners' capital account, units held by controlling interest | 22,380,030 |
General partner ownership interest | 2.00% |
Ownership percentage, controlling interest | 39.00% |
Partners' Equity, Allocations o
Partners' Equity, Allocations of Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Partners' Capital [Abstract] | |||
General Partner Interest in Net Income | $ 413 | $ 246 | |
General partner incentive distribution | 11,473 | 9,361 | |
General partner interest in net income attributable to HEP | $ 11,886 | $ 9,607 | [1] |
[1] | Retrospectively adjusted as described in Note 1. |
Partners' Equity, Cash Distribu
Partners' Equity, Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Partners' Capital [Abstract] | ||
Dividends Payable, Date Declared | Apr. 22, 2016 | |
Dividends Payable, Date of Record | May 2, 2016 | |
Dividends Payable, Date to be Paid | May 13, 2016 | |
Allocations of Quarterly Cash Distributions to General and Limited Partners | ||
Partners' Capital, Distribution Amount Per Share | $ 0.575 | |
Partner Distributions | ||
General partner interest | $ 948 | $ 860 |
Incentive Distribution, Distribution | 11,473 | 9,361 |
Total general partner distribution | 12,421 | 10,221 |
Limited partner distribution | 33,728 | 31,528 |
Partners' Capital Account, Distributions | $ 46,149 | $ 41,749 |
Cash distribution per unit applicable to limited partners | $ 0.5750 | $ 0.5375 |
Environmental Environmental (De
Environmental Environmental (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Environmental Remediation Expense | $ 4.2 | ||
Accrued Environmental Expense | $ 7.4 | $ 7.7 | |
Accrued Environmental Expense, Noncurrent | 5.8 | 6.1 | |
Affiliated Entity [Member] | |||
Loss Contingencies [Line Items] | |||
Accrued Environmental Expense | $ 1 | $ 6.4 |
Supplemental Guarantor _ Non-47
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||||
Cash and cash equivalents | $ 9,034 | $ 15,013 | $ 5,802 | $ 2,830 | |
Accounts receivable | 41,056 | 41,075 | |||
Prepaid and other current assets | 5,181 | 5,054 | |||
Total current assets | 55,271 | 61,142 | |||
Properties and equipment, net | 1,052,772 | 1,059,179 | [1] | ||
Investments in subsidiaries | 0 | 0 | |||
Transportation agreements, net | 72,067 | 73,805 | |||
Goodwill | 256,498 | 256,498 | |||
Equity method investments | 124,134 | 79,438 | |||
Other assets | 11,819 | 13,703 | |||
Total assets | 1,572,561 | 1,543,765 | |||
Current liabilities: | |||||
Accounts payable | 18,480 | 22,583 | |||
Accrued interest | 1,972 | 6,752 | |||
Deferred revenue | 7,050 | 12,016 | |||
Accrued property taxes | 4,107 | 3,764 | |||
Other current liabilities | 2,945 | 3,809 | |||
Total current liabilities | 34,554 | 48,924 | |||
Long-term debt | 1,061,944 | 1,008,752 | |||
Other long-term liabilities | 16,397 | 20,744 | |||
Deferred revenue | 39,441 | 39,063 | |||
Class B unit | 35,807 | 33,941 | |||
Partners' Capital | 288,178 | 297,912 | |||
Equity - noncontrolling interest | 96,240 | 94,429 | |||
Total liabilities and equity | 1,572,561 | 1,543,765 | |||
Parent Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 2 | 2 | 2 | 2 | |
Accounts receivable | 0 | 0 | |||
Prepaid and other current assets | 199 | 174 | |||
Total current assets | 201 | 176 | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | 586,328 | 600,563 | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity method investments | 0 | 0 | |||
Other assets | 658 | 642 | |||
Total assets | 587,187 | 601,381 | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Accrued interest | 1,625 | 6,500 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 213 | 7 | |||
Total current liabilities | 1,838 | 6,507 | |||
Long-term debt | 296,944 | 296,752 | |||
Other long-term liabilities | 227 | 210 | |||
Deferred revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Partners' Capital | 288,178 | 297,912 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 587,187 | 601,381 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 1,003 | 5,452 | 2,780 | 2,828 | |
Accounts receivable | 36,505 | 35,558 | |||
Prepaid and other current assets | 3,766 | 3,634 | |||
Total current assets | 41,274 | 44,644 | |||
Properties and equipment, net | 672,825 | 687,336 | |||
Investments in subsidiaries | 288,721 | 283,287 | |||
Transportation agreements, net | 72,067 | 73,805 | |||
Goodwill | 256,498 | 256,498 | |||
Equity method investments | 124,134 | 79,438 | |||
Other assets | 11,161 | 13,061 | |||
Total assets | 1,466,680 | 1,438,069 | |||
Current liabilities: | |||||
Accounts payable | 12,124 | 19,448 | |||
Accrued interest | 347 | 252 | |||
Deferred revenue | 6,736 | 6,010 | |||
Accrued property taxes | 2,210 | 2,627 | |||
Other current liabilities | 2,692 | 3,802 | |||
Total current liabilities | 24,109 | 32,139 | |||
Long-term debt | 765,000 | 712,000 | |||
Other long-term liabilities | 15,995 | 20,363 | |||
Deferred revenue | 39,441 | 39,063 | |||
Class B unit | 35,807 | 33,941 | |||
Partners' Capital | 586,328 | 600,563 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 1,466,680 | 1,438,069 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 8,029 | 9,559 | 3,020 | 0 | |
Accounts receivable | 4,721 | 5,715 | |||
Prepaid and other current assets | 1,216 | 1,246 | |||
Total current assets | 13,966 | 16,520 | |||
Properties and equipment, net | 379,947 | 371,843 | |||
Investments in subsidiaries | 0 | 0 | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity method investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | 393,913 | 388,363 | |||
Current liabilities: | |||||
Accounts payable | 6,526 | 3,333 | |||
Accrued interest | 0 | 0 | |||
Deferred revenue | 314 | 6,006 | |||
Accrued property taxes | 1,897 | 1,137 | |||
Other current liabilities | 40 | 0 | |||
Total current liabilities | 8,777 | 10,476 | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 175 | 171 | |||
Deferred revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Partners' Capital | 384,961 | 377,716 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 393,913 | 388,363 | |||
Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Accounts receivable | (170) | (198) | |||
Prepaid and other current assets | 0 | 0 | |||
Total current assets | (170) | (198) | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | (875,049) | (883,850) | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity method investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | (875,219) | (884,048) | |||
Current liabilities: | |||||
Accounts payable | (170) | (198) | |||
Accrued interest | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (170) | (198) | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Partners' Capital | (971,289) | (978,279) | |||
Equity - noncontrolling interest | 96,240 | 94,429 | |||
Total liabilities and equity | $ (875,219) | $ (884,048) | |||
[1] | Retrospectively adjusted as described in Note 1. |
Supplemental Guarantor _ Non-48
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues [Abstract] | |||
Affiliates | $ 82,846 | $ 72,255 | |
Third parties | 19,164 | 17,501 | |
Total revenues | 102,010 | 89,756 | |
Operating costs and expenses [Abstract] | |||
Operations (exclusive of depreciation and amortization) | 26,922 | 28,065 | [1] |
Depreciation and amortization | 16,551 | 14,798 | [1] |
General and administrative | 3,091 | 3,290 | |
Total operating costs and expenses | 46,564 | 46,153 | [1] |
Operating income | 55,446 | 43,603 | [1] |
Equity in Earnings (Loss) of Subsidiaries | 0 | 0 | |
Equity in Earnings of Equity Method Investments | 2,765 | 734 | |
Interest expense | (10,535) | (8,768) | |
Gain (Loss) on Sale of Assets | 159 | ||
Interest income | 112 | 0 | |
Other (income) expense | (8) | 0 | |
Total other income (expense) | (7,666) | (7,875) | |
Income before income taxes | 47,780 | 35,728 | [1] |
State income tax expense | 95 | 101 | |
Net income | 47,685 | 35,627 | [1] |
Allocation of Net Income Attributable to Noncontrolling Interest | (4,927) | (4,027) | |
Net income attributable to Holly Energy Partners | 42,758 | 31,600 | [1] |
Other comprehensive income (loss) | (453) | (749) | |
Comprehensive income attributable to Holly Energy Partners | 42,305 | 30,851 | [1] |
Equity Method Investments [Member] | |||
Operating costs and expenses [Abstract] | |||
Equity in Earnings of Equity Method Investments | 2,765 | 734 | |
Parent Company [Member] | |||
Revenues [Abstract] | |||
Affiliates | 0 | 0 | |
Third parties | 0 | 0 | |
Total revenues | 0 | 0 | |
Operating costs and expenses [Abstract] | |||
Operations (exclusive of depreciation and amortization) | $ 0 | 0 | |
Depreciation and amortization | 0 | ||
General and administrative | $ 1,165 | 1,063 | |
Total operating costs and expenses | 1,165 | 1,063 | |
Operating income | (1,165) | (1,063) | |
Equity in Earnings (Loss) of Subsidiaries | 48,990 | 37,730 | |
Interest expense | (5,067) | (5,067) | |
Gain (Loss) on Sale of Assets | 0 | ||
Interest income | 0 | ||
Other (income) expense | 0 | ||
Total other income (expense) | 43,923 | 32,663 | |
Income before income taxes | 42,758 | 31,600 | |
State income tax expense | 0 | 0 | |
Net income | 42,758 | 31,600 | |
Allocation of Net Income Attributable to Noncontrolling Interest | 0 | 0 | |
Net income attributable to Holly Energy Partners | 42,758 | 31,600 | |
Other comprehensive income (loss) | (453) | (749) | |
Comprehensive income attributable to Holly Energy Partners | 42,305 | 30,851 | |
Parent Company [Member] | Equity Method Investments [Member] | |||
Operating costs and expenses [Abstract] | |||
Equity in Earnings of Equity Method Investments | 0 | 0 | |
Guarantor Subsidiaries [Member] | |||
Revenues [Abstract] | |||
Affiliates | 72,252 | 63,056 | |
Third parties | 10,732 | 11,387 | |
Total revenues | 82,984 | 74,443 | |
Operating costs and expenses [Abstract] | |||
Operations (exclusive of depreciation and amortization) | 23,891 | 25,630 | |
Depreciation and amortization | 12,793 | 11,066 | |
General and administrative | 1,926 | 2,227 | |
Total operating costs and expenses | 38,610 | 38,923 | |
Operating income | 44,374 | 35,520 | |
Equity in Earnings (Loss) of Subsidiaries | 9,184 | 6,860 | |
Interest expense | (5,468) | (3,701) | |
Gain (Loss) on Sale of Assets | 159 | ||
Interest income | 105 | ||
Other (income) expense | (9) | ||
Total other income (expense) | 6,577 | 4,052 | |
Income before income taxes | 50,951 | 39,572 | |
State income tax expense | 95 | 101 | |
Net income | 50,856 | 39,471 | |
Allocation of Net Income Attributable to Noncontrolling Interest | 0 | 0 | |
Net income attributable to Holly Energy Partners | 50,856 | 39,471 | |
Other comprehensive income (loss) | (453) | (749) | |
Comprehensive income attributable to Holly Energy Partners | 50,403 | 38,722 | |
Guarantor Subsidiaries [Member] | Equity Method Investments [Member] | |||
Operating costs and expenses [Abstract] | |||
Equity in Earnings of Equity Method Investments | 2,765 | 734 | |
Non-Guarantor Subsidiaries [Member] | |||
Revenues [Abstract] | |||
Affiliates | 10,594 | 9,224 | |
Third parties | 8,432 | 6,114 | |
Total revenues | 19,026 | 15,338 | |
Operating costs and expenses [Abstract] | |||
Operations (exclusive of depreciation and amortization) | 3,031 | 2,460 | |
Depreciation and amortization | 3,758 | 3,732 | |
General and administrative | 0 | 0 | |
Total operating costs and expenses | 6,789 | 6,192 | |
Operating income | 12,237 | 9,146 | |
Equity in Earnings (Loss) of Subsidiaries | 0 | 0 | |
Interest expense | 0 | 0 | |
Gain (Loss) on Sale of Assets | 0 | ||
Interest income | 7 | ||
Other (income) expense | 1 | ||
Total other income (expense) | 8 | 0 | |
Income before income taxes | 12,245 | 9,146 | |
State income tax expense | 0 | 0 | |
Net income | 12,245 | 9,146 | |
Allocation of Net Income Attributable to Noncontrolling Interest | 0 | 0 | |
Net income attributable to Holly Energy Partners | 12,245 | 9,146 | |
Other comprehensive income (loss) | 0 | 0 | |
Comprehensive income attributable to Holly Energy Partners | 12,245 | 9,146 | |
Non-Guarantor Subsidiaries [Member] | Equity Method Investments [Member] | |||
Operating costs and expenses [Abstract] | |||
Equity in Earnings of Equity Method Investments | 0 | 0 | |
Eliminations [Member] | |||
Revenues [Abstract] | |||
Affiliates | 0 | (25) | |
Third parties | 0 | 0 | |
Total revenues | 0 | (25) | |
Operating costs and expenses [Abstract] | |||
Operations (exclusive of depreciation and amortization) | 0 | (25) | |
Depreciation and amortization | 0 | 0 | |
General and administrative | 0 | 0 | |
Total operating costs and expenses | 0 | (25) | |
Operating income | 0 | 0 | |
Equity in Earnings (Loss) of Subsidiaries | (58,174) | (44,590) | |
Interest expense | 0 | 0 | |
Gain (Loss) on Sale of Assets | 0 | ||
Interest income | 0 | ||
Other (income) expense | 0 | ||
Total other income (expense) | (58,174) | (44,590) | |
Income before income taxes | (58,174) | (44,590) | |
State income tax expense | 0 | 0 | |
Net income | (58,174) | (44,590) | |
Allocation of Net Income Attributable to Noncontrolling Interest | (4,927) | (4,027) | |
Net income attributable to Holly Energy Partners | (63,101) | (48,617) | |
Other comprehensive income (loss) | 453 | 749 | |
Comprehensive income attributable to Holly Energy Partners | (62,648) | (47,868) | |
Eliminations [Member] | Equity Method Investments [Member] | |||
Operating costs and expenses [Abstract] | |||
Equity in Earnings of Equity Method Investments | $ 0 | $ 0 | |
[1] | Retrospectively adjusted as described in Note 1. |
Supplemental Guarantor _ Non-49
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 48,302 | $ 60,792 | |
Cash flows from investing activities | |||
Additions to Properties and Equipment | (17,873) | (24,227) | [1] |
Purchase of El Dorado crude tanks | 0 | (27,500) | |
Proceeds from sale of assets | 12 | 218 | |
Distributions from Noncontrolling Interests | 0 | ||
Distributions in excess of earnings of equity method investments | 99 | 16 | |
Net cash used for investing activities | (17,762) | (51,493) | |
Cash flows from financing activities | |||
Net borrowings under credit agreement | 53,000 | 23,000 | |
Net intercompany financing activities | 0 | 0 | |
Distributions to HEP unitholders | (44,960) | (40,865) | |
Distribution to HFC for Tulsa Tank Acquisition | (39,500) | 0 | |
Proceeds from Partnership Contribution | 99 | 472 | [1] |
Proceeds from Contributions from Parent | 0 | 12,563 | [1] |
Distributions to noncontrolling interests | (1,250) | (1,250) | |
Purchase of units for incentive grants | (784) | (247) | |
Deferred financing costs | (2,964) | 0 | |
Other | (160) | 0 | |
Net cash used for financing activities | (36,519) | (6,327) | |
Increase (decrease) for the period | (5,979) | 2,972 | |
Beginning of period | 15,013 | 2,830 | |
End of period | 9,034 | 5,802 | |
Proceeds from Contributed Capital | 0 | ||
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (10,084) | (9,873) | |
Cash flows from investing activities | |||
Additions to Properties and Equipment | 0 | 0 | |
Purchase of El Dorado crude tanks | 0 | ||
Proceeds from sale of assets | 0 | 0 | |
Distributions from Noncontrolling Interests | 0 | ||
Distributions in excess of earnings of equity method investments | 0 | 0 | |
Net cash used for investing activities | 0 | 0 | |
Cash flows from financing activities | |||
Net borrowings under credit agreement | 0 | 0 | |
Net intercompany financing activities | 53,751 | 50,985 | |
Distributions to HEP unitholders | (44,960) | (40,865) | |
Distribution to HFC for Tulsa Tank Acquisition | (30,378) | ||
Proceeds from Partnership Contribution | 0 | 0 | |
Proceeds from Contributions from Parent | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | |
Purchase of units for incentive grants | (784) | (247) | |
Deferred financing costs | 0 | ||
Other | 0 | ||
Net cash used for financing activities | 10,084 | 9,873 | |
Increase (decrease) for the period | 0 | 0 | |
Beginning of period | 2 | 2 | |
End of period | 2 | 2 | |
Proceeds from Contributed Capital | 32,455 | ||
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 48,712 | 63,029 | |
Cash flows from investing activities | |||
Additions to Properties and Equipment | (7,919) | (23,919) | |
Purchase of El Dorado crude tanks | (27,500) | ||
Proceeds from sale of assets | 12 | 218 | |
Distributions from Noncontrolling Interests | 3,058 | ||
Distributions in excess of earnings of equity method investments | 99 | 16 | |
Net cash used for investing activities | (7,808) | (48,127) | |
Cash flows from financing activities | |||
Net borrowings under credit agreement | 53,000 | 23,000 | |
Net intercompany financing activities | (53,751) | (50,985) | |
Distributions to HEP unitholders | 0 | 0 | |
Distribution to HFC for Tulsa Tank Acquisition | (9,122) | ||
Proceeds from Partnership Contribution | 99 | 472 | |
Proceeds from Contributions from Parent | 12,563 | ||
Distributions to noncontrolling interests | 0 | 0 | |
Purchase of units for incentive grants | 0 | 0 | |
Deferred financing costs | (2,964) | ||
Other | (160) | ||
Net cash used for financing activities | (45,353) | (14,950) | |
Increase (decrease) for the period | (4,449) | (48) | |
Beginning of period | 5,452 | 2,828 | |
End of period | 1,003 | 2,780 | |
Proceeds from Contributed Capital | (32,455) | ||
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 13,424 | 8,328 | |
Cash flows from investing activities | |||
Additions to Properties and Equipment | (9,954) | (308) | |
Purchase of El Dorado crude tanks | 0 | ||
Proceeds from sale of assets | 0 | 0 | |
Distributions from Noncontrolling Interests | 0 | ||
Distributions in excess of earnings of equity method investments | 0 | 0 | |
Net cash used for investing activities | (9,954) | (308) | |
Cash flows from financing activities | |||
Net borrowings under credit agreement | 0 | 0 | |
Net intercompany financing activities | 0 | 0 | |
Distributions to HEP unitholders | 0 | 0 | |
Distribution to HFC for Tulsa Tank Acquisition | 0 | ||
Proceeds from Partnership Contribution | 0 | 0 | |
Proceeds from Contributions from Parent | 0 | ||
Distributions to noncontrolling interests | (5,000) | (5,000) | |
Purchase of units for incentive grants | 0 | 0 | |
Deferred financing costs | 0 | ||
Other | 0 | ||
Net cash used for financing activities | (5,000) | (5,000) | |
Increase (decrease) for the period | (1,530) | 3,020 | |
Beginning of period | 9,559 | 0 | |
End of period | 8,029 | 3,020 | |
Proceeds from Contributed Capital | 0 | ||
Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (3,750) | (692) | |
Cash flows from investing activities | |||
Additions to Properties and Equipment | 0 | 0 | |
Purchase of El Dorado crude tanks | 0 | ||
Proceeds from sale of assets | 0 | 0 | |
Distributions from Noncontrolling Interests | (3,058) | ||
Distributions in excess of earnings of equity method investments | 0 | 0 | |
Net cash used for investing activities | 0 | (3,058) | |
Cash flows from financing activities | |||
Net borrowings under credit agreement | 0 | 0 | |
Net intercompany financing activities | 0 | 0 | |
Distributions to HEP unitholders | 0 | 0 | |
Distribution to HFC for Tulsa Tank Acquisition | 0 | ||
Proceeds from Partnership Contribution | 0 | 0 | |
Proceeds from Contributions from Parent | 0 | ||
Distributions to noncontrolling interests | 3,750 | 3,750 | |
Purchase of units for incentive grants | 0 | 0 | |
Deferred financing costs | 0 | ||
Other | 0 | ||
Net cash used for financing activities | 3,750 | 3,750 | |
Increase (decrease) for the period | 0 | 0 | |
Beginning of period | 0 | 0 | |
End of period | 0 | $ 0 | |
Proceeds from Contributed Capital | $ 0 | ||
[1] | Retrospectively adjusted as described in Note 1. |