Document Entity Information
Document Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 62,780,503 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,300,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 3,657,000 | $ 15,013,000 | |
Accounts receivable: | |||
Trade | 7,846,000 | 8,593,000 | |
Affiliates | 42,562,000 | 32,482,000 | |
Total accounts receivable | 50,408,000 | 41,075,000 | |
Prepaid and other current assets | 2,888,000 | 5,054,000 | |
Total current assets | 56,953,000 | 61,142,000 | |
Properties and equipment, net | 1,328,395,000 | 1,293,060,000 | [1] |
Transportation agreements, net | 66,856,000 | 73,805,000 | |
Goodwill | 256,498,000 | 256,498,000 | |
Equity Method Investments | 165,609,000 | 79,438,000 | |
Other assets | 9,926,000 | 13,703,000 | |
Total assets | 1,884,237,000 | 1,777,646,000 | [1] |
Accounts payable: | |||
Trade | 10,518,000 | 10,948,000 | [1] |
Affiliates | 16,424,000 | 11,635,000 | |
Total accounts payable | 26,942,000 | 22,583,000 | [1] |
Accrued interest | 18,069,000 | 6,752,000 | |
Deferred revenue | 11,102,000 | 12,016,000 | |
Accrued property taxes | 5,397,000 | 3,764,000 | |
Other current liabilities | 3,225,000 | 3,809,000 | |
Total current liabilities | 64,735,000 | 48,924,000 | [1] |
Long-term debt | 1,243,912,000 | 1,008,752,000 | |
Other long-term liabilities | 16,445,000 | 20,744,000 | |
Deferred Revenue | 47,035,000 | 39,063,000 | |
Class B unit | 40,319,000 | 33,941,000 | |
Partners’ equity: | |||
Common unitholders (62,780,503 and 58,657,048 units issued and outstanding at December 31, 2016 and 2015, respectively) | 510,975,000 | 428,019,000 | |
General partner interest (2% interest) | (132,832,000) | 103,584,000 | [1] |
Accumulated other comprehensive income (loss) | 91,000 | 190,000 | |
Total partners’ equity | 378,234,000 | 531,793,000 | [1] |
Noncontrolling interest | 93,557,000 | 94,429,000 | |
Total Equity | 471,791,000 | 626,222,000 | [1],[2] |
Total liabilities and equity | $ 1,884,237,000 | $ 1,777,646,000 | [1] |
[1] | (1) Retrospectively adjusted as described in Note 2. | ||
[2] | (1) Retrospectively adjusted as described in Note 2. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Partners' Equity: | ||
Common units issued | 62,780,503 | 58,657,048 |
Common units outstanding | 62,780,503 | 58,657,048 |
General partner interest | 2.00% |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Affiliates | $ 333,116 | $ 292,221 | $ 275,196 |
Third parties | 68,927 | 66,654 | 57,349 |
Total revenues | 402,043 | 358,875 | 332,545 |
Operating costs and expenses: | |||
Operations (exclusive of depreciation and amortization) | 123,986 | 105,556 | 106,185 |
Depreciation and amortization | 70,428 | 63,306 | 62,529 |
General and administrative | 12,532 | 12,556 | 10,824 |
Total operating costs and expenses | 206,946 | 181,418 | 179,538 |
Operating income | 195,097 | 177,457 | 153,007 |
Other income (expense): | |||
Equity in earnings of equity method investments | 14,213 | 4,803 | 2,987 |
Interest expense | (52,552) | (37,418) | (36,101) |
Interest Income | 440 | 526 | 3 |
Loss on early extinguishment of debt | 0 | 0 | (7,677) |
Gain on sale of assets and other | 677 | 486 | 82 |
Total other income (expense) | (37,222) | (31,603) | (40,706) |
Income before Income Taxes | 157,875 | 145,854 | 112,301 |
State income tax expense | (285) | (228) | (235) |
Net Income | 157,590 | 145,626 | 112,066 |
Allocation of net loss attributable to predecessor | 10,657 | 2,702 | 1,747 |
Allocation of net income (loss) attributable to noncontrolling interest | (10,006) | (11,120) | (8,288) |
Net income attributable to Holly Energy Partners | 158,241 | 137,208 | 105,525 |
General partner interest in net income, including incentive distributions | (57,173) | (42,337) | (34,667) |
Limited partners’ interest in net income | $ 101,068 | $ 94,871 | $ 70,858 |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 1.69 | $ 1.60 | $ 1.20 |
Weighted average limited partners’ units outstanding | 59,872 | 58,657 | 58,657 |
SLC Pipeline [Member] | |||
Other income (expense): | |||
Equity in earnings of equity method investments | $ 14,213 | $ 4,803 | $ 2,987 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 157,590 | $ 145,626 | $ 112,066 |
Change in fair value of cash flow hedging instruments | (607) | (1,864) | (2,104) |
Reclassification adjustment to net income on partial settlement of cash flow hedge | 508 | 2,100 | 2,202 |
Other comprehensive income (loss) | (99) | 236 | 98 |
Comprehensive income before noncontrolling interest | 157,491 | 145,862 | 112,164 |
Allocation of net loss attributable to predecessor | 10,657 | 2,702 | 1,747 |
Allocation of comprehensive (income) loss to noncontrolling interests | (10,006) | (11,120) | (8,288) |
Comprehensive income attributable to the Partnership | $ 158,142 | $ 137,444 | $ 105,623 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Cash flows from operating activities | ||||||
Net income | $ 157,590 | $ 145,626 | $ 112,066 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 70,428 | 63,306 | 62,529 | |||
Gain on sale of assets | (150) | (375) | 0 | |||
Amortization of deferred charges | 3,247 | 1,928 | 1,820 | |||
Amortization of restricted and performance units | 2,719 | 3,484 | 3,539 | |||
Equity in earnings of equity investments, net of distributions | (2,032) | (122) | 0 | |||
Loss on early extinguishment of debt | 0 | 0 | 7,677 | |||
(Increase) decrease in operating assets: | ||||||
Accounts receivable – trade | 279 | (1,820) | (1,676) | |||
Accounts receivable – affiliates | (10,080) | 1,419 | (3,717) | |||
Prepaid and other current assets | 1,598 | (626) | (510) | |||
Increase (decrease) in operating liabilities: | ||||||
Accounts payable – trade | (365) | (1,996) | 2,469 | |||
Accounts payable – affiliates | (16) | 6,396 | (3,245) | |||
Accrued interest | 11,317 | 137 | (3,624) | |||
Deferred revenue | 7,058 | 9,255 | 6,173 | |||
Accrued property taxes | 1,633 | 1,061 | 100 | |||
Other current liabilities | (553) | (499) | 1,819 | |||
Other, net | 75 | 3,572 | (164) | |||
Net cash provided by operating activities | 242,748 | 230,746 | 185,256 | |||
Cash flows from investing activities | ||||||
Additions to properties, and equipment | (59,704) | (39,393) | [1] | (79,959) | [1] | |
Acquisition of tanks and refinery processing units | (44,119) | (153,728) | [1] | (118,727) | [1] | |
Purchase of investment in Cheyenne Pipeline | (42,627) | 0 | 0 | |||
Purchase of investment in Frontier Pipeline | 0 | (55,032) | 0 | |||
Proceeds from sale of assets | 427 | 1,279 | 0 | |||
Distributions in Excess of Equity in Earnings of Equity Investments | 2,993 | 194 | 263 | |||
Net cash used for investing activities | (143,030) | (246,680) | [1] | (198,423) | [1] | |
Cash flows from financing activities | ||||||
Borrowings under credit agreement | 554,000 | 973,900 | 642,300 | |||
Repayments of credit agreement borrowings | (713,000) | (832,900) | (434,300) | |||
Proceeds from issuance of 6% Senior Notes | 394,000 | 0 | 0 | |||
Proceeds from issuance of common units | 125,870 | 0 | 0 | |||
Redemption of 8.25% senior notes | 0 | 0 | (156,188) | |||
Contribution from general partner | 2,577 | 128,476 | 120,111 | |||
Distributions to HEP unitholders | (192,037) | (169,063) | (154,670) | |||
Distributions to noncontrolling interest | (5,750) | (4,625) | (4,025) | |||
Distribution to HFC for acquisitions | (317,500) | (62,000) | 0 | |||
Contributions from HFC for acquisitions | [1] | 128,476 | 120,111 | |||
Distributions to HFC for acquisitions | (62,000) | |||||
Distributions to HFC for Osage acquisition | (1,245) | 0 | 0 | |||
Purchase of units for incentive grants | (3,521) | (3,555) | (3,577) | |||
Deferred financing costs | (3,995) | (962) | (9) | |||
Other | (1,735) | (1,154) | 3 | |||
Net cash used by financing activities | (111,074) | 28,117 | [1] | 9,645 | [1] | |
Cash and cash equivalents | ||||||
Increase (decrease) for the year | (11,356) | 12,183 | (3,522) | |||
Beginning of period | 15,013 | 2,830 | 6,352 | |||
End of period | 3,657 | 15,013 | 2,830 | |||
Cheyenne [Member] | ||||||
Cash flows from investing activities | ||||||
Purchase of investment in Cheyenne Pipeline | (42,600) | |||||
Cash flows from financing activities | ||||||
Distribution to HFC for acquisitions | (278,000) | |||||
Frontier Pipeline [Member] | ||||||
Cash flows from investing activities | ||||||
Additions to properties, and equipment | (54,600) | |||||
Woods Cross [Member] | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 0 | 0 | ||||
Increase (decrease) in operating liabilities: | ||||||
Net cash provided by operating activities | (1,837) | (705) | ||||
Cash flows from investing activities | ||||||
Acquisition of tanks and refinery processing units | (98,092) | (86,768) | ||||
Net cash used for investing activities | (98,092) | (86,768) | ||||
Cash flows from financing activities | ||||||
Contribution from general partner | 51,262 | |||||
Contributions from HFC for acquisitions | $ 51,262 | 128,476 | [1] | 120,111 | [1] | |
Net cash used by financing activities | $ 99,929 | $ 87,473 | ||||
[1] | 1) Retrospectively adjusted as described in Note 2. |
Consolidated Statement of Partn
Consolidated Statement of Partners' Equity - USD ($) $ in Thousands | Total | Common Units | General Partner Interest | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Guarantor Subsidiaries [Member] | |||
Beginning balance at Dec. 31, 2013 | $ 527,917 | $ 516,147 | $ (85,574) | $ (144) | $ 97,488 | ||||
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||||||
Distributions to HEP unitholders | (154,670) | (119,944) | (34,726) | ||||||
Distributions to noncontrolling interests | (4,025) | (4,025) | |||||||
Contribution from HFC | [1] | 120,110 | 120,110 | ||||||
Distribution to HFC for acquisitions | 0 | ||||||||
Purchase of Units for Incentive Grants | (3,577) | (3,577) | |||||||
Amortization of restricted and performance units | 3,539 | 3,539 | |||||||
Class B unit accretion | (6,668) | (6,534) | (134) | ||||||
Net income | 112,066 | 79,182 | 31,265 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 8,288 | 1,619 | $ 6,669 | ||||||
Other comprehensive income (loss) | 98 | 98 | 98 | ||||||
Ending balance at Dec. 31, 2014 | 594,790 | [1] | 468,813 | 30,941 | [1] | (46) | 95,082 | ||
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||||||
Distributions to HEP unitholders | (169,063) | (127,152) | (41,911) | ||||||
Distributions to noncontrolling interests | (4,625) | (4,625) | |||||||
Contribution from HFC | [1] | 128,477 | 128,477 | ||||||
Distribution to HFC for acquisitions | (62,000) | ||||||||
Purchase of Units for Incentive Grants | (3,555) | (3,555) | |||||||
Amortization of restricted and performance units | 3,484 | 3,484 | |||||||
Class B unit accretion | (7,148) | (7,005) | (143) | ||||||
Net income | 145,626 | 93,434 | 48,220 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 11,120 | 3,972 | 7,148 | ||||||
Other comprehensive income (loss) | 236 | 236 | 236 | ||||||
Ending balance at Dec. 31, 2015 | 626,222 | [1],[2] | 428,019 | 103,584 | [1] | 190 | 94,429 | ||
Stock Issued During Period, Value, Acquisitions | 125,870 | 125,870 | 0 | ||||||
Increase (Decrease) in Partners' Capital | 2,577 | 2,577 | |||||||
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||||||
Distributions to HEP unitholders | (192,037) | (138,779) | (53,258) | ||||||
Distributions to noncontrolling interests | (5,750) | (5,750) | |||||||
Contribution from HFC | 31,287 | 0 | |||||||
Distribution To HFC for acquisition | (62,000) | (62,000) | |||||||
Distribution to HFC for acquisitions | (317,500) | (317,500) | (287,122) | ||||||
Purchase of Units for Incentive Grants | (3,521) | (3,521) | |||||||
Amortization of restricted and performance units | 2,719 | 2,719 | |||||||
Class B unit accretion | (6,378) | (6,250) | (128) | ||||||
Contribution from HFC for acquisitions | 51,262 | ||||||||
Net income | 157,590 | 102,917 | 49,795 | ||||||
Other | (451) | 0 | (451) | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 10,006 | 4,878 | 5,128 | ||||||
Other comprehensive income (loss) | (99) | (99) | $ (99) | ||||||
Ending balance at Dec. 31, 2016 | $ 471,791 | $ 510,975 | $ (132,832) | $ 91 | $ 93,557 | ||||
[1] | (1) Retrospectively adjusted as described in Note 2. | ||||||||
[2] | (1) Retrospectively adjusted as described in Note 2. |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Holly Energy Partners, L.P. (“HEP”) together with its consolidated subsidiaries, is a publicly held master limited partnership which is 37% 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 own and operate petroleum product and crude oil pipelines, terminal, tankage and loading rack facilities and refinery processing units that support HFC’s refining and marketing operations in the Mid-Continent, Southwest and Northwest regions of the United States and Alon USA, Inc.’s (“Alon”) refinery in Big Spring, Texas. Additionally, we own a 75% interest in the UNEV Pipeline, LLC (“UNEV”), a 50% interest in Frontier Aspen LLC, a 50% interest in Osage Pipe Line Company, LLC (“Osage”), a 50% interest in Cheyenne Pipeline LLC and a 25% interest in SLC Pipeline LLC. We operate in two reportable segments, a Pipelines and Terminals segment and a Refinery Processing Unit segment. Disclosures around these segments are discussed in Note 14. Our Pipelines and Terminals segment consists of: • 24 main pipeline segments • Crude gathering networks in Texas and New Mexico • 10 refined product terminals • 1 crude terminal • 8,300 track feet of rail storage located at one facility • 7 locations with truck and/or rail racks • Tankage at all six of HFC's refining facility locations Our Refinery Processing Unit segment consists of five refinery processing units at two of HFC's refining facility locations. We generate revenues by charging tariffs for transporting petroleum products and crude oil through our pipelines, by charging fees for terminalling and storing refined products and other hydrocarbons, providing other services at our storage tanks and terminals and by charging fees for processing hydrocarbon feedstocks through our refinery processing units. We do not take ownership of products that we transport, terminal, store or process, and therefore, we are not exposed directly to changes in commodity prices. Principles of Consolidation and Common Control Transactions The consolidated financial statements include our accounts, our Predecessor's (defined below) and those of subsidiaries and joint ventures that we control. All significant intercompany transactions and balances have been eliminated. Most of our acquisitions from HFC occurred while we were a consolidated variable interest entity of HFC. Therefore, as an entity under common control with HFC, we recorded these acquisitions on our balance sheets at HFC's historical basis instead of our purchase price or fair value. U.S. generally accepted accounting principles ("GAAP") require transfers of a business between entities under common control to be accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to include the historical results and assets of the acquisitions from HFC for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the acquisitions prior to their respective acquisition dates as those of our "Predecessor." Many of these transactions are cash purchases and do not involve the issuance of equity; however, GAAP requires the retrospective adjustment of financial statements. Therefore, in such transactions, the prior year balance sheet includes as equity the amount of cost incurred by HFC to that date. See Note 2 for further discussion as well as effects of the retrospective adjustments. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The carrying amounts reported on the balance sheets approximate fair value due to the short-term maturity of these instruments. Accounts Receivable The majority of the accounts receivable are due from affiliates of HFC, Alon or independent companies in the petroleum industry. Credit is extended based on evaluation of the customer's financial condition and, in certain circumstances, collateral such as letters of credit or guarantees, may be required. Credit losses are charged to income when accounts are deemed uncollectible and historically have been minimal. Properties and Equipment Properties and equipment are stated at cost. Properties and equipment acquired from HFC while under common control of HFC are stated at HFC's historical basis. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 25 years for terminal facilities and tankage, 25 to 32 years for pipelines, 25 years for refinery processing units and 5 to 10 years for corporate and other assets. We depreciate assets acquired under capital leases over the lesser of the lease term or the economic life of the assets. Maintenance, repairs and minor replacements are expensed as incurred. Costs of replacements constituting improvements are capitalized. Transportation Agreements The transportation agreement assets are intangible assets which are stated at acquisition date fair value and are being amortized over the periods of the agreements using the straight-line method. See Note 5 for additional information on our transportation agreements. Goodwill and Long-Lived Assets Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not amortized. We test goodwill at the reporting unit level for impairment annually and between annual tests if events or changes in circumstances indicate the carrying amount may exceed fair value. Recoverability is determined by comparing the estimated fair value of a reporting unit to the carrying value, including the related goodwill, of that reporting unit. In prior years, we used the present value of the expected future net cash flows and market multiple analyses to determine the estimated fair values of the reporting units. The impairment test requires the use of projections, estimates and assumptions as to the future performance of our operations. Actual results could differ from projections resulting in revisions to our assumptions, and if required, recognizing an impairment loss. In 2016, we assessed qualitative factors such as macroeconomic conditions, industry considerations, cost factors, and reporting unit financial performance and determined it is not more likely than not that the fair value of our reporting units are less than the respective carrying value. Therefore, in accordance with GAAP, further testing was not required. We evaluate long-lived assets, including finite intangible assets, for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset's carrying value exceeds its fair value. There have been no impairments to goodwill or our long-lived assets through December 31, 2016 . Investment in Equity Method Investments We account for our 25% SLC Pipeline and 50% joint venture interests using the equity method of accounting, whereby we record our pro-rata share of earnings of these companies, and contributions to and distributions from the joint ventures as adjustments to our investment balances. The difference between the cost of an investment and our proportionate share of the underlying equity in net assets recorded on the investee's books is allocated to the various assets and liabilities of the equity method investment. The following table summarizes our recorded investments compared to our share of underlying equity for each investee. We are amortizing the differences as adjustments to our pro-rata share of earnings over the useful lives of the underlying assets of these joint ventures. Balance at December 31, 2016 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investment SLC Pipeline LLC $ 57,273 $ 24,417 $ 32,856 Frontier Aspen LLC 11,630 53,160 (41,530 ) Osage Pipe Line Company, LLC 10,730 43,375 (32,645 ) Cheyenne Pipeline LLC 29,658 44,657 (14,999 ) Total $ 109,291 $ 165,609 $ (56,318 ) Asset Retirement Obligations We record legal obligations associated with the retirement of certain of our long-lived assets that result from the acquisition, construction, development and/or the normal operation of our long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded in the period in which the liability is incurred and when a reasonable estimate of the fair value of the liability can be made. For our pipeline assets, the right-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon cessation of the pipeline service. Additionally, management is unable to predict when, or if, our pipelines and related facilities would become obsolete and require decommissioning. Accordingly, we have recorded no liability or corresponding asset related to an asset retirement obligation for the majority of our pipelines as both the amounts and timing of such potential future costs are indeterminable. For our remaining assets, at December 31, 2016 and 2015 , we have asset retirement obligations of $8.0 million and $7.6 million , respectively, that are recorded under “Other long-term liabilities” in our consolidated balance sheets. Class B Unit Under the terms of the transaction to acquire HFC's 75% interest in UNEV, we issued HFC a Class B unit comprising a noncontrolling equity interest in a wholly-owned subsidiary subject to redemption to the extent that HFC is entitled to a 50% interest in our share of annual UNEV earnings before interest, income taxes, depreciation, and amortization above $30 million beginning July 1, 2016, and ending in June 2032, subject to certain limitations. Such contingent redemption payments are limited to the unredeemed value of the Class B Unit. However, to the extent earnings thresholds are not achieved, no redemption payments are required. No redemption payments have been required to date. Contemporaneously with this transaction, HFC (our general partner) agreed to forego its right to incentive distributions of up to $1.25 million per quarter over twelve consecutive quarterly periods following the closing of the transaction and up to an additional four quarters if HFC's Woods Cross refinery expansion did not attain certain thresholds. HEP Logistics' waiver of its right to incentive distributions of $1.25 million per quarter ended with the distribution paid in the third quarter of 2016. Pursuant to the terms of the transaction agreements, the Class B unit increases by the amount of each foregone incentive distribution and by a 7% factor compounded annually on the outstanding unredeemed balance through its expiration date. At our option, we may redeem, in whole or in part, the Class B unit at the current unredeemed value based on the calculation described. The Class B unit had a carrying value of $40.3 million at December 31, 2016 , and $33.9 million at December 31, 2015 . Revenue Recognition Revenues are recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. Billings to customers for their obligations under their quarterly minimum revenue commitments are recorded as deferred revenue liabilities if the customer has the right to receive future services for these billings. The revenue is recognized at the earlier of: • the customer receiving the future services provided by these billings, • the period in which the customer is contractually allowed to receive the services expires, or • our determination that we will not be required to provide services within the allowed period. We determine that we will not be required to provide services within the allowed period when, based on current and projected shipping levels, our pipeline systems will not have the necessary capacity to enable a customer to exceed its minimum volume levels to such a degree as to utilize the shortfall credit within its respective contractual shortfall make-up period. We have additional revenues under an operating lease to a third party of an interest in the capacity of one of our pipelines. As of December 31, 2016 , customers' minimum revenue commitments per the terms of long-term throughput agreements expiring in 2019 through 2036 and the third party operating lease require minimum annualized payments to us in the aggregate of $2.9 billion including $363 million for the years ending December 31, 2017 and 2018, $340 million for the year ending December 31, 2019, $295 million for the year ending December 31, 2020 and $290 million for the year ending December 31, 2021. These agreements provide for changes in the minimum revenue guarantees annually for increases or decreases in the PPI or the FERC index, with certain contracts having provisions that limit the level of the rate increases or decreases. We have other cost reimbursement provisions in our throughput / storage agreements providing that customers (including HFC) reimburse us for certain costs. Such reimbursements are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement. Taxes billed and collected from our pipeline and terminal customers are recorded on a net basis with no effect on net income. Environmental Costs Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HFC, HFC has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HFC occurring or existing prior to the date of such transfers. We have an environmental agreement with Alon with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Alon in 2005, under which Alon will indemnify us subject to certain monetary and time limitations. Environmental costs recoverable through insurance, indemnification agreements or other sources are included in other assets to the extent such recoveries are considered probable. Income Tax We are subject to the Texas margin tax that is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax. We are organized as a pass-through entity for federal income tax purposes. As a result, our partners are responsible for federal income taxes based on their respective share of taxable income. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the partnership agreement. Net Income per Limited Partners' Unit We use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the year. Net income per unit applicable to limited partners is computed by dividing limited partners' interest in net income, after adjusting for the allocation of net income or loss attributable to the Predecessor, the allocation of net income or loss attributable to noncontrolling interests and the general partner's 2% interest and incentive distributions and other participating securities, by the weighted-average number of outstanding common units and other dilutive securities. Other participating securities and dilutive securities are not significant. New Accounting Pronouncements Revenue Recognition In May 2014, an accounting standard update was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we intend to account for the new guidance using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition or results of operations. 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. Share-Based Compensation In March 2016, an accounting standard update was issued which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We will adopt this standard effective in the first quarter of 2017. We do not expect this standard to have a material impact on our financial condition, results of operations and cash flows. Business Combinations In December 2014, an accounting standard update was issued to provide new guidance on the definition of a business in relation to accounting for identifiable intangible assets in business combinations. This standard has an effective date of January 1, 2018, and we are evaluating its impact. 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. Earnings Per Unit In April 2015, an accounting standard update was issued requiring the allocation of the earnings or losses of a transferred business for periods before the date of a dropdown transactions accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit. We adopted this standard as of January 1, 2016. In connection with the dropdown transactions from HFC’s Tulsa refinery on March 31, 2016, and HFC's Woods Cross refinery units on October 1, 2016, we reduced net income by $0.9 million and $1.8 million , respectively, for the year ended December 31, 2015 and $1.0 million and $0.7 million , respectively, for the year ended December 31, 2014. This reduction had no impact on the historical earnings per limited partner unit. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions El Dorado Tank Farm On March 6, 2015, we completed the acquisition of an existing crude tank farm adjacent to HFC's El Dorado Refinery from an unrelated third-party for $27.5 million in cash. Substantially all of the purchase price was allocated to properties and equipment and no goodwill was recorded. HFC is the main customer of this crude tank farm. Frontier Pipeline On August 31, 2015, we purchased a 50% interest in Frontier Aspen LLC (formerly known as Frontier Pipeline Company), which owns a 289 -mile crude oil pipeline running from Casper, Wyoming to Frontier Station, Utah (the "Frontier Pipeline"), from an affiliate of Enbridge, Inc. for cash consideration of $54.6 million . Frontier Pipeline will continue to be operated by an affiliate of Plains All American Pipeline, L.P. ("Plains"), which owns the remaining 50% interest. The Frontier Pipeline has a 72,000 bpd capacity and supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection to the SLC Pipeline. El Dorado Operating On November 1, 2015, we acquired from 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 million . As we are a consolidated VIE 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 retrospectively adjusted our historical financial results in 2015 for all periods to include El Dorado Operating for the periods we were under common control of HFC. 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 transitioned into that role on September 1, 2016. Since we are a consolidated VIE 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 $44.5 million offset by our net carrying basis in the El Paso terminal of $12.1 million with the difference recorded as a contribution from HFC. However, since these transactions were concurrent, there was no impact on periods prior to February 22, 2016. The carrying value of our 50% membership interest in Osage of $44.5 million exceeds the amount of the underlying equity in net assets recorded by Osage by $33.1 million . Tulsa Tanks On March 31, 2016, we acquired crude oil tanks located at HFC’s Tulsa refinery from an affiliate of Plains for cash consideration of $39.5 million . 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 VIE 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 2016 consolidated income statement was adjusted to reflect a $0.2 million increase in operating costs and expenses for the year ended December 31, 2016. Retrospective adjustments to our consolidated balance sheet, consolidated statements of income, and consolidated statements of cash flows from previous years are shown in the tables below. Cheyenne Pipeline On June 3, 2016, we acquired a 50% interest in Cheyenne Pipeline LLC, owner of the Cheyenne Pipeline, in exchange for a contribution of $42.6 million in cash to Cheyenne Pipeline LLC. Cheyenne Pipeline LLC will continue to be operated by an affiliate of Plains, which owns the remaining 50% interest. The 87 -mile crude oil pipeline runs from Fort Laramie to Cheyenne, Wyoming and has an 80,000 barrel per day (“bpd”) capacity. Woods Cross Operating Effective October 1, 2016, we acquired all the membership interests of Woods Cross Operating LLC (“Woods Cross Operating”), a wholly owned subsidiary of HFC, which owns the newly constructed atmospheric distillation tower, fluid catalytic cracking unit, and polymerization unit located at HFC’s Woods Cross refinery, for cash consideration of $278 million . The consideration was funded with approximately $103 million in proceeds from a private placement of 3,420,000 common units representing limited partnership interests at a price of $30.18 per common unit with the balance funded with borrowings under our credit facility. 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 $56.7 million . As we are a consolidated variable interest entity (“VIE”) of HFC, this transaction was recorded as a transfer between entities under common control and reflect HFC’s carrying basis in the net assets acquired. We have retrospectively adjusted our financial position and operating results as if these units were owned for all periods while we were under common control of HFC. The 2016 consolidated income statement was adjusted to reflect a $10.4 million increase in operating costs and expenses for the year ended December 31, 2016. Retrospective adjustments to our consolidated balance sheet, consolidated statements of income, and consolidated statements of cash flows from previous years are shown in the tables below. The Utah Division of Air Quality issued an air quality permit to HollyFrontier Woods Cross Refining LLC (“HFC Woods Cross Refining”) authorizing the expansion units at the Woods Cross refinery. The appeal proceeding challenging the Utah Department of Environmental Quality’s decision to uphold the air quality permit is still pending. The purchase agreement provides us with the option to compel HFC Woods Cross Refining to repurchase the interests for the full purchase price paid if the assets are required to be idled for 90 or more days as a result of a final decision in the appeal proceedings. If we do not exercise the foregoing right and, by reason of the appeal proceedings, the assets must be modified, then HFC will be responsible for the costs of such modifications. The following table presents lines in our previously reported balance sheet as of December 31, 2015, that were impacted by Predecessor transactions, and retrospectively adjusts for the acquisitions of the Tulsa Tanks and Woods Cross Operating. The assets and liabilities of El Dorado Operating are included in our previously reported balance sheet as of December 31, 2015. Balance at December 31, 2015 Holly Energy Partners, L.P. (Previously reported) Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) (In Thousands) Properties and equipment, net $ 1,049,870 $ 9,309 $ 233,881 $ 1,293,060 Other long-term liabilities 20,675 69 — 20,744 General partner interest (2% interest) (139,537 ) 9,240 233,881 103,584 The amounts of the general partner interest for the Tulsa Tanks and Woods Cross Operating included in the table above were part of the cash distribution of $317.5 million to HFC in 2016. The following tables present lines in our previously reported income statement for the years ended December 31, 2015 and 2014, that were impacted by Predecessor transactions, and retrospectively adjusts for the acquisitions of the Tulsa Tanks and Woods Cross Operating. Year Ended December 31, 2015 Holly Energy Partners, L.P. (Previously reported) Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) (In Thousands) Operating costs and expenses: Operations (exclusive of depreciation and amortization) $ 103,308 $ 411 $ 1,837 $ 105,556 Depreciation and amortization 62,852 454 — 63,306 Allocation of net loss attributable to predecessor — 865 1,837 2,702 Year Ended December 31, 2014 Holly Energy Partners, L.P. (Previously reported) Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) (In Thousands) Operating costs and expenses: Operations (exclusive of depreciation and amortization) $ 104,801 $ 679 $ 705 $ 106,185 Depreciation and amortization 62,166 363 — 62,529 Allocation of net loss attributable to predecessor — 1,042 705 1,747 The following tables present lines in our previously reported cash flows for the years ended December 31, 2015 and 2014, that were impacted by Predecessor transactions, and retrospectively adjusts for the acquisitions of the Tulsa Tanks and Woods Cross Operating. There was no change to the total previously reported cash flows for the years ended December 31, 2015 and 2014 for El Dorado Operating, although the presentation was changed as shown in the tables below. Year Ended December 31, 2015 Holly Energy Partners, L.P. (Previously reported) Reclassifications Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) Cash flows from operating activities (In Thousands) Net income $ 148,328 $ — $ (865 ) $ (1,837 ) $ 145,626 Depreciation and amortization 62,852 — 454 — 63,306 Net cash provided by operating activities $ 232,994 $ — $ (411 ) $ (1,837 ) $ 230,746 Cash flows from investing activities Additions to properties and equipment (67,016 ) 27,623 — — (39,393 ) Acquisition of tanks and operating units (27,500 ) (27,623 ) (513 ) (98,092 ) (153,728 ) Net cash used for investing activities $ (148,075 ) $ — $ (513 ) $ (98,092 ) $ (246,680 ) Cash flows from financing activities Contributions from HFC for acquisitions 27,623 — 924 99,929 128,476 Net cash provided (used) by financing activities $ (72,736 ) $ — $ 924 $ 99,929 $ 28,117 Year Ended December 31, 2014 Holly Energy Partners, L.P. (Previously reported) Reclassifications Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) Cash flows from operating activities (In Thousands) Net Income $ 113,813 $ — $ (1,042 ) $ (705 ) $ 112,066 Depreciation and amortization 62,166 — 363 — 62,529 Net cash provided by operating activities $ 186,640 $ — $ (679 ) $ (705 ) $ 185,256 Cash flows from investing activities Additions to properties and equipment (109,693 ) 29,734 — — (79,959 ) Acquisition of tanks and operating units — (29,734 ) (2,225 ) (86,768 ) (118,727 ) Net cash used for investing activities $ (109,430 ) $ — $ (2,225 ) $ (86,768 ) $ (198,423 ) Cash flows from financing activities Contributions from HFC for acquisitions 29,734 — 2,904 87,473 120,111 Net cash provided (used) by financing activities $ (80,732 ) $ — $ 2,904 $ 87,473 $ 9,645 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 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 equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Debt consists of outstanding principal under our revolving credit agreement (which approximates fair value as interest rates are reset frequently at current interest rates) and our fixed interest rate senior notes. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability) including assumptions about risk. GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. The carrying amounts and estimated fair values of our senior notes and interest rate swaps were as follows: December 31, 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 $ 91 $ 91 $ 304 $ 304 Liabilities: 6.0% Senior Notes Level 2 $ 393,393 $ 415,500 $ — $ — 6.5% Senior Notes Level 2 297,519 308,250 296,752 295,500 Interest rate swaps Level 2 — — 114 114 $ 690,912 $ 723,750 $ 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 7 for additional information on these instruments. |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | Properties and Equipment The carrying amounts of our properties and equipment are as follows: December 31, December 31, (In thousands) Pipelines, terminals and tankage $ 1,246,746 $ 1,231,597 Refinery assets 346,058 297,217 Land and right of way 65,331 66,215 Construction in progress 28,753 28,249 Other 27,133 22,200 1,714,021 1,645,478 Less accumulated depreciation 385,626 352,418 $ 1,328,395 $ 1,293,060 We capitalized $0.7 million and $0.8 million in interest related to construction projects during the years ended December 31, 2016 and 2015 , respectively. Depreciation expense was $62.9 million , $55.8 million , and $55.1 million for the years ended December 31, 2016, 2015 and 2014 , respectively, and includes depreciation of assets acquired under capital leases. Asset abandonment charges of $0.6 million , $1.1 million and $1.9 million for assets permanently removed from service were included in depreciation expense for the years ended December 31, 2016, 2015 and 2014 , respectively. |
Transportation Agreements
Transportation Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Transportation Agreements | Transportation Agreements Our transportation agreements are intangible assets that represent a portion of the total purchase price of certain assets acquired from Alon in 2005 and from HFC in 2008 prior to HEP becoming a consolidated VIE of HFC. The Alon agreement is being amortized over 30 years ending 2035 (the initial 15 -year term of the agreement plus an expected 15 -year extension period) and the HFC agreement is being amortized over 15 years ending 2023 (the term of the HFC agreement). The carrying amounts of our transportation agreements are as follows: December 31, December 31, (In thousands) Alon transportation agreement $ 59,933 $ 59,933 HFC transportation agreement 74,231 74,231 Other 50 50 134,214 134,214 Less accumulated amortization 67,358 60,409 $ 66,856 $ 73,805 Amortization expense was $6.9 million for each of the years ended December 31, 2016, 2015 and 2014 , respectively. We have additional transportation agreements with HFC resulting from historical transactions consisting of pipeline, terminal and tankage assets contributed to us or acquired from HFC. These transactions occurred while we were a consolidated variable interest entity of HFC; therefore, our basis in these agreements is zero and does not reflect a step-up in basis to fair value. |
Employees, Retirement and Incen
Employees, Retirement and Incentive Plans | 12 Months Ended |
Dec. 31, 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 $5.7 million , $5.4 million and $7.4 million for the years ended December 31, 2016, 2015 and 2014 , respectively. These costs include retirement costs of $2.6 million , $2.2 million and $4.4 million for the years ended December 31, 2016, 2015 and 2014 , 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, 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. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting (a significant proportion of our awards) is to expense the costs ratably over the vesting periods. As of December 31, 2016 , we have two types of incentive-based awards outstanding, which are described below. The compensation cost charged against income was $2.7 million , $3.4 million and $3.5 million for the years ended December 31, 2016, 2015 and 2014 , respectively. We currently purchase units in the open market instead of issuing new units for settlement of all unit awards under our Long-Term Incentive Plan. As of December 31, 2016 , 2,500,000 units were authorized to be granted under our Long-Term Incentive Plan, of which 1,377,640 have not yet been granted, assuming no forfeitures of the unvested units and full achievement of goals for the unvested performance units. 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 year ended December 31, 2016 , is presented below: Restricted Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2016 (nonvested) 101,408 $ 33.63 Granted 88,899 32.16 Vesting and transfer of common units to recipients (61,768 ) 32.81 Forfeited (4,551 ) 34.21 Outstanding at December 31, 2016 (nonvested) 123,988 $ 32.96 The fair values of restricted and phantom units that were vested and transferred to recipients during the years ended December 31, 2016, 2015 and 2014 were $2.0 million , $2.5 million and $2.7 million respectively. As of December 31, 2016 , there was $2.8 million of total unrecognized compensation expense related to nonvested restricted unit grants, which is expected to be recognized over a weighted-average period of 1.6 years. For the years ended December 31, 2015 and 2014 , the grant date closing unit price applied to the number of restricted units and phantom units ultimately awarded was $34.16 and $33.49 respectively. Performance Units Under our Long-Term Incentive Plan, we grant performance units to selected executives who perform services for us. Performance units granted are payable in common units at the end of a three -year performance period based upon the growth in our distributable cash flow per common unit over the performance period. As of December 31, 2016 , estimated unit payouts for outstanding nonvested performance unit awards ranged between 100% and 150% of the target number of performance units granted. We granted 32,862 performance units during the year ended December 31, 2016 . Performance units granted in 2015 and 2016 vest over a three-year performance period ending December 31, 2018 and 2019, respectively, and are payable in HEP common units. The number of units actually earned will be based on the growth of our distributable cash flow per common unit over the performance period, and can range from 50% to 150% of the target number of performance units granted. Although common units are not transferred to the recipients until the performance units vest, the recipients have distribution rights with respect to the common units from the date of grant. The fair value of these performance units is based on the grant date closing unit price of $24.48 and $33.33 for the performance units granted in February and October, respectively and will apply to the number of units ultimately awarded. For the years ended December 31, 2015 and 2014 , the weighted average grant date closing unit price applied to the number of units awarded was $34.21 and $33.57 respectively. A summary of performance unit activity and changes for the year ended December 31, 2016 , is presented below: Performance Units Units Outstanding at January 1, 2016 (nonvested) 45,494 Granted 32,862 Vesting and transfer of common units to recipients (26,157 ) Forfeited (2,679 ) Outstanding at December 31, 2016 (nonvested) 49,520 The grant date fair value of performance units vested and transferred to recipients was $1.1 million for the year ended December 31, 2016 , $0.6 million for the year ended December 31, 2015, and $0.5 million for the year ended December 31, 2014. Based on the weighted average fair value of performance units outstanding at December 31, 2016 , of $1.6 million , there was $1.3 million of total unrecognized compensation expense related to nonvested performance units, which is expected to be recognized over a weighted-average period of 2.3 years. During the year ended December 31, 2016 , we paid $3.5 million for the purchase of our common units in the open market for the issuance and settlement of all unit awards under our Long-Term Incentive Plan. |
Debt
Debt | 12 Months Ended |
Dec. 31, 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. Indebtedness under the Credit Agreement bears interest, at our option, at either (a) the reference rate as announced by the administrative agent plus an applicable margin (ranging from 0.750% to 1.75% ) or (b) at a rate equal to LIBOR plus an applicable margin (ranging from 1.750% to 2.75% ). In each case, the applicable margin is based upon the ratio of our funded debt (as defined in the Credit Agreement) to EBITDA (earnings before interest, taxes, depreciation and amortization, as defined in the Credit Agreement). The weighted-average interest rates on our Credit Agreement borrowings in effect at December 31, 2016 and 2015 , were 2.978% and 2.655% , respectively. We incur a commitment fee on the unused portion of the Credit Agreement at an annual rate ranging from 0.30% to 0.50% based upon the ratio of our funded debt to EBITDA for the four most recently completed fiscal quarters. The Credit Agreement imposes certain requirements on us with which we were in compliance as of December 31, 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. We were in compliance with the covenants as of December 31, 2016 . Senior Notes As of December 31, 2016, we had $300 million in aggregate principal amount outstanding of 6.5% senior notes (the "6.5% Senior Notes") maturing March 2020. On January 4, 2017, we redeemed the $300 million aggregate principal amount of 6.5% Senior Notes at a redemption cost of $316.4 million , at which time we recognized a $12.2 million early extinguishment loss. We funded the redemption with borrowings under our Credit Agreement. On July 19, 2016, we closed a private placement of $400 million in aggregate principal amount of 6% senior unsecured notes due in 2024 (the “6% Senior Notes” and together with the 6.5% Senior Notes, the “Senior Notes”). We used the net proceeds to pay down indebtedness under our revolving credit agreement. The Senior Notes are unsecured and impose certain restrictive covenants, 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. We were in compliance with the restrictive covenants for the Senior Notes as of December 31, 2016 . At any time when the 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 Senior Notes. In March 2014, we redeemed the $150 million aggregate principal amount of 8.25% Senior Notes maturing March 2018 at a redemption cost of $156.2 million , at which time we recognized a $7.7 million early extinguishment loss. We funded the redemption with borrowings under our Credit Agreement. Indebtedness under the 6% Senior Notes and the 6.5% Senior Notes involves recourse to HEP Logistics, our general partner, and is guaranteed by our material, wholly-owned subsidiaries. However, any recourse to HEP Logistics would be limited to the extent of its assets, which other than its investment in us, are not significant. Our purchase and contribution agreements with HFC with respect to the intermediate pipelines acquired in 2005 and the crude pipelines and tankage assets acquired in 2008, restrict us from selling these pipelines and terminals acquired from HFC. Under these agreements, we are restricted from prepaying borrowings and long-term debt to below $171 million prior to 2018, subject to certain limited exceptions. Long-term Debt The carrying amounts of our long-term debt are as follows: December 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 553,000 $ 712,000 6% Senior Notes Principal 400,000 — Unamortized debt issuance costs (6,607 ) — 393,393 — 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (2,481 ) (3,248 ) 297,519 296,752 Total long-term debt $ 1,243,912 $ 1,008,752 Maturities of our long-term debt are as follows: Years Ending December 31, (In thousands) 2017 $ — 2018 553,000 2019 — 2020 300,000 2021 — Thereafter 400,000 Total $ 1,253,000 Interest Rate Risk Management We use interest rate swaps (derivative instruments) to manage our exposure to interest rate risk. As of December 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 December 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 that 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 December 31, 2016 , we had no ineffectiveness on our cash flow hedges. At December 31, 2016 , we have accumulated other comprehensive income of $91,000 that relates to our current cash flow hedging instruments. Approximately $91,000 will be transferred from accumulated other comprehensive income into interest expense as interest is paid on the underlying swap agreements over the next twelve-month period, assuming interest rates remain unchanged. Additional information on our interest rate swaps is as follows: Derivative Instrument Balance Sheet Location Fair Value Location of Offsetting Balance Offsetting Amount (In thousands) December 31, 2016 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other current $ 91 Accumulated other comprehensive loss $ 91 $ 91 $ 91 December 31, 2015 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other long-term $ 304 Accumulated other $ 304 Variable-to-fixed interest rate swap contract ($155 million of LIBOR based debt interest) Other current (114 ) Accumulated other comprehensive income (114 ) $ 190 $ 190 Interest Expense and Other Debt Information Interest expense consists of the following components: Years Ended December 31, 2016 2015 2014 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 17,621 $ 16,107 $ 13,350 6% Senior Notes 10,811 — — 6.5% Senior Notes 19,507 19,507 19,446 8.25% Senior Notes — — 2,544 Amortization of discount and deferred debt issuance costs 3,246 1,928 1,821 Commitment fees and other 2,069 638 450 Total interest incurred 53,254 38,180 37,611 Less capitalized interest 702 762 1,510 Net interest expense $ 52,552 $ 37,418 $ 36,101 Cash paid for interest $ 38,530 $ 35,938 $ 39,414 Capital Lease Obligations Our capital lease obligations relate to vehicle leases with initial terms of 33 to 48 months. The total cost of assets under capital leases was $4.9 million and $3.0 million as of December 31, 2016 and 2015 , respectively, with accumulated depreciation of $2.4 million and $1.1 million as of December 31, 2016 and 2015 , respectively. We include depreciation of capital leases in depreciation and amortization in our consolidated statements of income. At December 31, 2016 , future minimum annual lease payments, including interest, for the capital leases are as follows: Years Ending December 31, (in thousands) 2017 $ 1,340 2018 679 2019 431 2020 10 Total minimum lease payments 2,460 Less amount representing interest (165 ) Capital lease obligations $ 2,295 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease certain facilities, pipelines and rights of way under operating leases, most of which contain renewal options. The right of way agreements have various termination dates through 2061. As of December 31, 2016 , the minimum future rental commitments under operating leases having non-cancelable lease terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2017 $ 7,523 2018 7,037 2019 7,032 2020 6,866 2021 6,869 Thereafter 41,769 Total $ 77,096 Rental expense charged to operations was $8.5 million , $8.9 million and $8.0 million for the years ended December 31, 2016, 2015 and 2014 , respectively. We also have other long-term contractual obligations consisting of long-term site service agreements with HFC, expiring in 2058 through 2066 , for the provision of certain facility services and utility costs that relate to our assets located at HFC’s refinery facilities. We are presenting obligations for the full term of these agreements; however, the agreements can be terminated with 180 day notice if we cease to operate the applicable assets. At December 31, 2016 , these minimum future contractual obligations having terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2017 $ 5,132 2018 5,132 2019 5,132 2020 5,132 2021 5,132 Thereafter 223,312 Total $ 248,972 We are a party to various legal and regulatory proceedings, none of which we believe will have a material adverse impact on our financial condition, results of operations or cash flows. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | Significant Customers All revenues are domestic revenues, of which 91% are currently generated from our two largest customers: HFC and Alon. The following table presents the percentage of total revenues generated by each of these customers: Years Ended December 31, 2016 2015 2014 HFC 83 % 81 % 83 % Alon 8 % 10 % 10 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 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 2036. 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 PPI or the FERC index. As of December 31, 2016 , these agreements with HFC require minimum annualized payments to us of $321.0 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 from services to HFC were $333.1 million , $292.2 million and $275.2 million for the years ended December 31, 2016, 2015 and 2014 , respectively. • HFC charged us general and administrative services under the Omnibus Agreement of $2.5 million for the year ended December 31, 2016 , $2.4 million for the year ended December 31, 2015 , and $2.3 million for the year ended December 31, 2014 . • We reimbursed HFC for costs of employees supporting our operations of $40.9 million , $34.5 million and $38.9 million for the years ended December 31, 2016, 2015 and 2014 , respectively. • HFC reimbursed us $14.0 million , $13.5 million and $16.8 million for the years ended December 31, 2016, 2015 and 2014 , respectively, for expense and capital projects. • We distributed $105.2 million , $90.4 million and $80.5 million , for the years ended December 31, 2016, 2015 and 2014 , respectively, to HFC as regular distributions on its common units and general partner interest, including general partner incentive distributions. • Accounts receivable from HFC were $42.6 million and $32.5 million at December 31, 2016 and 2015 , respectively. • Accounts payable to HFC were $16.4 million and $11.6 million at December 31, 2016 and 2015 , respectively. • Revenues for the years ended December 31, 2016, 2015 and 2014 include $6.1 million , $7.3 million and $10.1 million , respectively, of shortfall payments billed in 2015 , 2014 and 2013 , respectively. Deferred revenue in the consolidated balance sheets at December 31, 2016 and 2015 , includes $5.6 million and $6.4 million , respectively, relating to certain shortfall billings. • In November 2015, we acquired from HFC all the outstanding membership interests in El Dorado Operating which owns the newly constructed naphtha fractionation and hydrogen generation units at HFC’s El Dorado refinery. See Note 2 for a description of this transaction. 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 2 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 for $39.5 million . See Note 2 for a description of this transaction. • Effective October 1, 2016, we acquired all the membership interests of Woods Cross Operating, a wholly owned subsidiary of HFC, which owns the newly constructed atmospheric distillation tower, fluid catalytic cracking unit, and polymerization unit located at HFC’s Woods Cross refinery, for cash consideration of $278 million . See Note 2 for a description of this transaction. |
Partners' Equity, Income Alloca
Partners' Equity, Income Allocations and Cash Distributions | 12 Months Ended |
Dec. 31, 2016 | |
Partners' Capital [Abstract] | |
Partners' Equity, Income Allocations and Cash Distributions | Partners’ Equity, Income Allocations and Cash Distributions As of December 31, 2016 , HFC held 22,380,030 of our common units and the 2% general partner interest, which together constituted a 37% ownership interest in us. Additionally, HFC owned all incentive distribution rights. Common Unit Private Placement On September 16, 2016, we entered into a common unit purchase agreement in which certain purchasers agreed to purchase in a private placement 3,420,000 common units representing limited partnership interests, at a price of $30.18 per common unit. The private placement closed on October 3, 2016, and we received proceeds of approximately $103 million , which were used to finance a portion of the Woods Cross acquisition discussed in Note 2. As a result of the private placement, HFC now owns a 37% interest in us (including the 2% general partner interest). To maintain the 2% general partner interest, HFC contributed $2.1 million in October 2016. Continuous Offering Program On May 10, 2016, we established a continuous offering program under which HEP may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million . As of December 31, 2016, HEP has issued 703,455 units under this program, providing $23.5 million in gross proceeds. We incurred sales commissions of $0.5 million associated with the issuance of these units. In connection with this program and to maintain the 2% general partner interest, HFC made capital contributions totaling $0.5 million as of December 31, 2016. We intend to use our net proceeds for general partnership purposes, which may include funding working capital, repayment of debt, acquisitions and capital expenditures. Amounts repaid under our credit facility may be reborrowed from time to time. 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 incentive distributions and other priority allocations are allocated to the general partner, the remaining net income attributable to HEP is allocated to the partners based on their weighted-average ownership percentage during the period. The following table presents the allocation of the general partner interest in net income for the periods presented below: Years Ended December 31, 2016 2015 2014 (In thousands) General partner interest in net income $ 3,165 $ 1,936 $ 1,446 General partner incentive distribution 54,008 40,401 33,221 Net loss attributable to predecessor $ (10,657 ) $ (2,702 ) $ (1,747 ) Total general partner interest in net income $ 46,516 $ 39,635 $ 32,920 Cash Distributions We consider regular cash distributions to unitholders on a quarterly basis, although there is no assurance as to the future cash distributions since they are dependent upon future earnings, cash flows, capital requirements, financial condition and other factors. Within 45 days after the end of each quarter, we distribute all of our available cash (as defined in our partnership agreement) to unitholders of record on the applicable record date. The amount of available cash generally is all cash on hand at the end of the quarter; less the amount of cash reserves established by our general partner to provide for the proper conduct of our business, comply with applicable laws, any of our debt instruments, or other agreements; or provide funds for distributions to our unitholders and to our general partner for any one or more of the next four quarters; plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. We make distributions in the following manner: Total Quarterly Distribution Marginal Percentage Interest in Distributions Target Amount Unitholders General Partner Minimum quarterly distribution $0.25 98% 2% First target distribution Up to $0.275 98% 2% Second target distribution above $0.275 up to $0.3125 85% 15% Third target distribution above $0.3125 up to $0.375 75% 25% Thereafter Above $0.375 50% 50% Our general partner, HEP Logistics, is entitled to incentive distributions if the amount we distribute with respect to any quarter exceeds specified target levels. On January 26, 2017 , we announced our cash distribution for the fourth quarter of 2016 of $0.6075 per unit. The distribution is payable on all common and general partner units and was paid February 14, 2017 , to all unitholders of record on February 6, 2017 . The following table presents the allocation of our regular quarterly cash distributions to the general and limited partners for the periods in which they apply. Our distributions are declared subsequent to quarter end; therefore, the amounts presented do not reflect distributions paid during the periods presented below. Years Ended December 31, 2016 2015 2014 (In thousands, except per unit data) General partner interest in distribution $ 4,088 $ 3,563 $ 3,264 General partner incentive distribution 54,008 40,401 33,221 Total general partner distribution 58,096 43,964 36,485 Limited partner distribution 143,796 129,192 121,714 Total regular quarterly cash distribution $ 201,892 $ 173,156 $ 158,199 Cash distribution per unit applicable to limited partners $ 2.3625 $ 2.2025 $ 2.0750 As a master limited partnership, we distribute our available cash, which historically has exceeded our net income attributable to HEP because depreciation and amortization expense represents a non-cash charge against income. The result is a decline in our partners’ equity since our regular quarterly distributions have exceeded our quarterly net income attributable to HEP. Additionally, if the asset contributions and acquisitions from HFC had occurred while we were not a consolidated variable interest entity of HFC, our acquisition cost, in excess of HFC’s historical basis in the transferred assets, would have been recorded in our financial statements at the time of acquisition as increases to our properties and equipment and intangible assets instead of decreases to our partners’ equity. |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |
Environmental | Environmental We expensed $0.7 million , $3.6 million and $3.1 million for the years ended December 31, 2016, 2015 and 2014 , respectively, for long term environmental remediation projects. During the year ended December 31, 2016 , we increased certain environmental cost accruals to reflect revisions to the cost estimates and the time frame for which the related environmental remediation and monitoring activities are expected to occur. The accrued environmental liability, net of expected recoveries from indemnifying parties, reflected in our consolidated balance sheets was $7.1 million and $7.7 million at December 31, 2016 and December 31, 2015 , respectively, of which $5.4 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 December 31, 2016 and December 31, 2015 , our consolidated balance sheets include additional accrued environmental liabilities of $0.9 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. |
Segment (Notes)
Segment (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |
Segment Reporting Disclosure [Text Block] | Operating Segments Although financial information is reviewed by our chief operating decision makers from a variety of perspectives, they view the business in two operating segments: pipelines and terminals, and refinery processing units. These operating segments adhere to the accounting polices used for our consolidated financial statements. For a discussion of these accounting policies and a summary of our operating segments' assets and derivation of revenue, see Note 1. The pipelines and terminals segment has been aggregated as both pipeline and terminals (1) have similar economic characteristics, (2) similarly provide logistics services of transportation and storage of petroleum products, (3) similarly support the petroleum refining business, including distribution of its products, (4) have principally the same customers and (5) are subject to similar regulatory requirements. We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific operating segment. Identifiable assets are those used by the segment, whereas other assets are principally equity method investments, cash, deposits and other assets that are not associated with a specific reportable operating segment. Years Ended December 31, 2016 2015 2014 (in thousands) Revenues: Pipelines and terminals - affiliate $ 300,072 $ 289,258 $ 275,196 Pipelines and terminals - third-party 68,927 66,654 57,349 Refinery processing units - affiliate 33,044 2,963 — Total segment revenues $ 402,043 $ 358,875 $ 332,545 Segment operating income: Pipelines and terminals $ 204,923 $ 191,451 $ 164,536 Refinery processing units 2,706 (1,438 ) (705 ) Total segment operating income 207,629 190,013 163,831 Unallocated general and administrative expenses (12,532 ) (12,556 ) (10,824 ) Interest and financing costs, net (52,112 ) (36,892 ) (43,775 ) Equity in earnings of unconsolidated affiliates 14,213 4,803 2,987 Gain on sale of assets and other 677 486 82 Income before income taxes $ 157,875 $ 145,854 $ 112,301 Capital Expenditures: Pipelines and terminals $ 59,704 $ 67,406 $ 82,184 Refinery processing units 44,119 125,715 116,502 Total capital expenditures $ 103,823 $ 193,121 $ 198,686 December 31, 2016 December 31, 2015 (in thousands) Identifiable assets: Pipelines and terminals $ 1,369,756 $ 1,391,055 Refinery processing units 342,506 296,080 Other 171,975 90,511 Total identifiable assets $ 1,884,237 $ 1,777,646 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Quarterly Financial Data (Unaudited) Summarized quarterly financial data is as follows: First Second Third Fourth Total (In thousands, except per unit data) Year Ended December 31, 2016 Revenues $ 102,010 $ 94,897 $ 92,610 $ 112,526 $ 402,043 Operating income 54,513 47,111 38,924 54,549 195,097 Income before income taxes 46,847 39,569 28,464 42,995 157,875 Net income 46,751 39,516 28,404 42,919 157,590 Net income attributable to Holly Energy Partners 42,975 39,120 34,785 41,361 158,241 Limited partners’ per unit interest in net income – basic and diluted $ 0.52 $ 0.45 $ 0.33 $ 0.40 $ 1.69 Distributions per limited partner unit $ 0.5750 $ 0.5850 $ 0.5950 $ 0.6075 $ 2.3625 Year Ended December 31, 2015 Revenues $ 89,756 $ 83,479 $ 88,389 $ 97,251 $ 358,875 Operating income 43,143 39,745 43,617 50,952 177,457 Income before income taxes 35,268 31,394 35,956 43,236 145,854 Net income 35,168 31,457 35,888 43,113 145,626 Net income attributable to Holly Energy Partners 31,803 30,401 34,485 40,519 137,208 Limited partners’ per unit interest in net income – basic and diluted $ 0.37 $ 0.34 $ 0.40 $ 0.49 $ 1.60 Distributions per limited partner unit $ 0.5375 $ 0.5450 $ 0.5550 $ 0.5650 $ 2.2025 |
Supplemental Guarantor _ Non-Gu
Supplemental Guarantor / Non-Guarantor Financial Information | 12 Months Ended |
Dec. 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. In conjunction with the preparation of our December 31, 2016, Condensed Consolidating Balance Sheet and Statements of Comprehensive Income included below, we identified and corrected the presentation of noncontrolling interests presented in the eliminations column in prior periods to reflect such balances and activity within the respective guarantor and nonguarantor subsidiaries columns. Condensed Consolidating Balance Sheet December 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 301 $ 3,354 $ — $ 3,657 Accounts receivable — 45,056 5,554 (202 ) 50,408 Prepaid and other current assets 11 2,633 244 — 2,888 Total current assets 13 47,990 9,152 (202 ) 56,953 Properties and equipment, net — 957,045 371,350 — 1,328,395 Investment in subsidiaries 1,086,008 280,671 — (1,366,679 ) — Transportation agreements, net — 66,856 — — 66,856 Goodwill — 256,498 — — 256,498 Equity method investments — 165,609 — — 165,609 Other assets 725 9,201 — — 9,926 Total assets $ 1,086,746 $ 1,783,870 $ 380,502 $ (1,366,881 ) $ 1,884,237 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 24,245 $ 2,899 $ (202 ) $ 26,942 Accrued interest 17,300 769 — — 18,069 Deferred revenue — 8,797 2,305 — 11,102 Accrued property taxes — 4,514 883 — 5,397 Other current liabilities 14 3,208 3 — 3,225 Total current liabilities 17,314 41,533 6,090 (202 ) 64,735 Long-term debt 690,912 553,000 — — 1,243,912 Other long-term liabilities 286 15,975 184 — 16,445 Deferred revenue — 47,035 — — 47,035 Class B unit — 40,319 — — 40,319 Equity - partners 378,234 1,086,008 280,671 (1,366,679 ) 378,234 Equity - noncontrolling interest — — 93,557 — 93,557 Total liabilities and partners’ equity $ 1,086,746 $ 1,783,870 $ 380,502 $ (1,366,881 ) $ 1,884,237 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 — 921,217 371,843 — 1,293,060 Investment in subsidiaries 834,444 283,287 — (1,117,731 ) — 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 $ 835,262 $ 1,671,950 $ 388,363 $ (1,117,929 ) $ 1,777,646 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 19,448 $ 3,333 $ (198 ) $ 22,583 Accrued interest 6,500 252 — — 6,752 Deferred revenue — 6,010 6,006 — 12,016 Accrued property taxes — 2,627 1,137 — 3,764 Other current liabilities 7 3,802 — — 3,809 Total current liabilities 6,507 32,139 10,476 (198 ) 48,924 Long-term debt 296,752 712,000 — — 1,008,752 Other long-term liabilities 210 20,363 171 — 20,744 Deferred revenue — 39,063 — — 39,063 Class B unit — 33,941 — — 33,941 Equity - partners 531,793 834,444 283,287 (1,117,731 ) 531,793 Equity - noncontrolling interest — — 94,429 — 94,429 Total liabilities and partners’ equity $ 835,262 $ 1,671,950 $ 388,363 $ (1,117,929 ) $ 1,777,646 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 307,049 $ 26,067 $ — $ 333,116 Third parties — 47,326 21,601 — 68,927 — 354,375 47,668 — 402,043 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 111,181 12,805 — 123,986 Depreciation and amortization — 55,083 15,345 — 70,428 General and administrative 3,804 8,728 — — 12,532 3,804 174,992 28,150 — 206,946 Operating income (loss) (3,804 ) 179,383 19,518 — 195,097 Equity in earnings of subsidiaries 193,432 14,634 — (208,066 ) — Equity in earnings of equity method investments — 14,213 — — 14,213 Interest income — 421 19 — 440 Interest expense (31,387 ) (21,165 ) — — (52,552 ) Gain on sale of assets and other — 702 (25 ) — 677 162,045 8,805 (6 ) (208,066 ) (37,222 ) Income (loss) before income taxes 158,241 188,188 19,512 (208,066 ) 157,875 State income tax expense — (285 ) — — (285 ) Net income (loss) 158,241 187,903 19,512 (208,066 ) 157,590 Net loss applicable to predecessor — 10,657 — — 10,657 Allocation of net income attributable to noncontrolling interests — (5,128 ) (4,878 ) — (10,006 ) Net income (loss) attributable to Holly Energy Partners 158,241 193,432 14,634 (208,066 ) 158,241 Other comprehensive income (loss) (99 ) (99 ) — 99 (99 ) Comprehensive income (loss) $ 158,142 $ 193,333 $ 14,634 $ (207,967 ) $ 158,142 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 269,277 $ 22,944 $ — $ 292,221 Third parties — 47,189 19,465 — 66,654 — 316,466 42,409 — 358,875 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 94,087 11,469 — 105,556 Depreciation and amortization — 48,302 15,004 — 63,306 General and administrative 3,616 8,940 — — 12,556 3,616 151,329 26,473 — 181,418 Operating income (loss) (3,616 ) 165,137 15,936 — 177,457 Equity in earnings of subsidiaries 161,097 11,915 — (173,012 ) — Equity in earnings of equity method investments — 4,803 — — 4,803 Interest income — 526 — — 526 Interest expense (20,273 ) (17,145 ) — — (37,418 ) Gain on sale of assets and other — 535 (49 ) — 486 140,824 634 (49 ) (173,012 ) (31,603 ) Income (loss) before income taxes 137,208 165,771 15,887 (173,012 ) 145,854 State income tax expense — (228 ) — — (228 ) Net income (loss) 137,208 165,543 15,887 (173,012 ) 145,626 Net loss applicable to predecessor — 2,702 — — 2,702 Allocation of net income attributable to noncontrolling interests — (7,148 ) (3,972 ) — (11,120 ) Net income (loss) attributable to Holly Energy Partners 137,208 161,097 11,915 (173,012 ) 137,208 Other comprehensive income (loss) 236 236 — (236 ) 236 Comprehensive income (loss) $ 137,444 $ 161,333 $ 11,915 $ (173,248 ) $ 137,444 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 254,364 $ 22,073 $ (1,241 ) $ 275,196 Third parties — 45,711 11,638 — 57,349 — 300,075 33,711 (1,241 ) 332,545 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 94,766 12,660 (1,241 ) 106,185 Depreciation and amortization — 47,955 14,574 — 62,529 General and administrative 2,658 8,166 — — 10,824 2,658 150,887 27,234 (1,241 ) 179,538 Operating income (loss) (2,658 ) 149,188 6,477 — 153,007 Equity in earnings (loss) of subsidiaries 138,691 4,858 — (143,549 ) — Equity in earnings of equity method investments — 2,987 — — 2,987 Interest income — 3 — — 3 Interest expense (22,831 ) (13,270 ) — — (36,101 ) Loss on early extinguishment of debt (7,677 ) — — — (7,677 ) Gain on sale of assets and other — 82 — — 82 108,183 (5,340 ) — (143,549 ) (40,706 ) Income (loss) before income taxes 105,525 143,848 6,477 (143,549 ) 112,301 State income tax expense — (235 ) — — (235 ) Net income (loss) 105,525 143,613 6,477 (143,549 ) 112,066 Net loss applicable to predecessors — 1,747 — — 1,747 Allocation of net income attributable to noncontrolling interests — (6,669 ) (1,619 ) — (8,288 ) Net income (loss) attributable to Holly Energy Partners 105,525 138,691 4,858 (143,549 ) 105,525 Other comprehensive income (loss) 98 98 — (98 ) 98 Comprehensive income (loss) $ 105,623 $ 138,789 $ 4,858 $ (143,647 ) $ 105,623 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (20,441 ) $ 245,771 $ 32,052 $ (14,634 ) $ 242,748 Cash flows from investing activities Additions to properties and equipment — (44,447 ) (15,257 ) — (59,704 ) Acquisition of tanks and operating units — (44,119 ) — — (44,119 ) Purchase of tanks and operating units — (42,627 ) — — (42,627 ) Proceeds from the sale of assets — 427 — — 427 Distributions in excess of equity in earnings of equity companies — 2,993 — — 2,993 Distributions from UNEV — 2,616 — (2,616 ) — — (125,157 ) (15,257 ) (2,616 ) (143,030 ) Cash flows from financing activities Net repayments under credit agreement — (159,000 ) — — (159,000 ) Net intercompany financing activities (302,600 ) 302,600 — — — Proceeds from issuance of 6% Senior Notes 394,000 — — — 394,000 Proceeds from issuance of common units 125,870 — — — 125,870 Contributions from general partner 2,577 — — — 2,577 Distributions to HEP unitholders (192,037 ) — — — (192,037 ) Distributions to noncontrolling interest — — (23,000 ) 17,250 (5,750 ) Distribution to HFC for acquisitions (30,378 ) (287,122 ) — — (317,500 ) Contributions from HFC for acquisitions (3,397 ) 54,659 — — 51,262 Distributions to HFC for Osage acquisition — (1,245 ) — — (1,245 ) Contributions from HFC for Osage acquisition 31,287 (31,287 ) — — — Purchase of units for incentive grants (3,521 ) — — — (3,521 ) Deferred financing costs (910 ) (3,085 ) — — (3,995 ) Other (450 ) (1,285 ) — — (1,735 ) 20,441 (125,765 ) (23,000 ) 17,250 (111,074 ) Cash and cash equivalents Increase for the period — (5,151 ) (6,205 ) — (11,356 ) Beginning of period 2 5,452 9,559 — 15,013 End of period $ 2 $ 301 $ 3,354 $ — $ 3,657 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (19,490 ) $ 232,650 $ 29,501 $ (11,915 ) $ 230,746 Cash flows from investing activities Additions to properties and equipment — (65,574 ) (1,442 ) — (67,016 ) Purchase of tanks and operating units — (126,105 ) — — (126,105 ) Purchase of investment in Frontier Pipeline — (55,032 ) — — (55,032 ) Proceeds from sale of assets — 1,279 — — 1,279 Distributions from UNEV — 1,960 — (1,960 ) — Distribution in excess of equity in earnings in equity companies — 194 — — 194 — (243,278 ) (1,442 ) (1,960 ) (246,680 ) Cash flows from financing activities Net borrowings under credit agreement — 141,000 — — 141,000 Net intercompany financing activities 192,108 (192,108 ) — — — Distributions to noncontrolling interests — — (18,500 ) 13,875 (4,625 ) Distributions to HEP unitholders (169,063 ) — — — (169,063 ) Contributions from HFC for acquisitions — 128,476 — — 128,476 Distributions to HFC for acquisitions — (62,000 ) — — (62,000 ) Deferred financing costs — (962 ) — — (962 ) Purchase of units for restricted grants (3,555 ) — — — (3,555 ) Other — (1,154 ) — — (1,154 ) 19,490 13,252 (18,500 ) 13,875 28,117 Cash and cash equivalents Increase (decrease) for the period — 2,624 9,559 — 12,183 Beginning of period 2 2,828 — — 2,830 End of period $ 2 $ 5,452 $ 9,559 $ — $ 15,013 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (25,339 ) $ 191,889 $ 19,398 $ (692 ) $ 185,256 Cash flows from investing activities Additions to properties and equipment — (101,492 ) (8,201 ) — (109,693 ) Acquisition of tanks and operating units — (88,993 ) — — (88,993 ) Distributions from UNEV — 11,383 — (11,383 ) — Distributions in excess of equity in earnings in equity companies — 263 — — 263 — (178,839 ) (8,201 ) (11,383 ) (198,423 ) Cash flows from financing activities Net borrowings under credit agreement — 208,000 — — 208,000 Net intercompany financing activities 339,771 (339,771 ) — — — Redemption of senior notes (156,188 ) — — — (156,188 ) Distributions to noncontrolling interests — — (16,100 ) 12,075 (4,025 ) Distributions to HEP unitholders (154,670 ) — — — (154,670 ) Contributions from HFC f acquisitions — 120,111 — — 120,111 Purchase of units for restricted grants (3,577 ) — — — (3,577 ) Deferred financing costs — (9 ) — — (9 ) Other 3 — — — 3 25,339 (11,669 ) (16,100 ) 12,075 9,645 Cash and cash equivalents Increase for the period — 1,381 (4,903 ) — (3,522 ) Beginning of period 2 1,447 4,903 — 6,352 End of period $ 2 $ 2,828 $ — $ — $ 2,830 (1) Retrospectively adjusted as described in Note 2. |
Description of Business and S23
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation and Common Control Transactions, Policy | Principles of Consolidation and Common Control Transactions The consolidated financial statements include our accounts, our Predecessor's (defined below) and those of subsidiaries and joint ventures that we control. All significant intercompany transactions and balances have been eliminated. Most of our acquisitions from HFC occurred while we were a consolidated variable interest entity of HFC. Therefore, as an entity under common control with HFC, we recorded these acquisitions on our balance sheets at HFC's historical basis instead of our purchase price or fair value. U.S. generally accepted accounting principles ("GAAP") require transfers of a business between entities under common control to be accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to include the historical results and assets of the acquisitions from HFC for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the acquisitions prior to their respective acquisition dates as those of our "Predecessor." Many of these transactions are cash purchases and do not involve the issuance of equity; however, GAAP requires the retrospective adjustment of financial statements. Therefore, in such transactions, the prior year balance sheet includes as equity the amount of cost incurred by HFC to that date. See Note 2 for further discussion as well as effects of the retrospective adjustments. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The carrying amounts reported on the balance sheets approximate fair value due to the short-term maturity of these instruments. |
Accounts Receivable, Policy | Accounts Receivable The majority of the accounts receivable are due from affiliates of HFC, Alon or independent companies in the petroleum industry. Credit is extended based on evaluation of the customer's financial condition and, in certain circumstances, collateral such as letters of credit or guarantees, may be required. Credit losses are charged to income when accounts are deemed uncollectible and historically have been minimal. |
Properties and Equipment, Policy | Properties and Equipment Properties and equipment are stated at cost. Properties and equipment acquired from HFC while under common control of HFC are stated at HFC's historical basis. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 25 years for terminal facilities and tankage, 25 to 32 years for pipelines, 25 years for refinery processing units and 5 to 10 years for corporate and other assets. We depreciate assets acquired under capital leases over the lesser of the lease term or the economic life of the assets. Maintenance, repairs and minor replacements are expensed as incurred. Costs of replacements constituting improvements are capitalized. |
Transportation Agreements, Policy | Transportation Agreements The transportation agreement assets are intangible assets which are stated at acquisition date fair value and are being amortized over the periods of the agreements using the straight-line method. See Note 5 for additional information on our transportation agreements. |
Goodwill and Long-Lived Assets, Policy | Goodwill and Long-Lived Assets Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not amortized. We test goodwill at the reporting unit level for impairment annually and between annual tests if events or changes in circumstances indicate the carrying amount may exceed fair value. Recoverability is determined by comparing the estimated fair value of a reporting unit to the carrying value, including the related goodwill, of that reporting unit. In prior years, we used the present value of the expected future net cash flows and market multiple analyses to determine the estimated fair values of the reporting units. The impairment test requires the use of projections, estimates and assumptions as to the future performance of our operations. Actual results could differ from projections resulting in revisions to our assumptions, and if required, recognizing an impairment loss. In 2016, we assessed qualitative factors such as macroeconomic conditions, industry considerations, cost factors, and reporting unit financial performance and determined it is not more likely than not that the fair value of our reporting units are less than the respective carrying value. Therefore, in accordance with GAAP, further testing was not required. We evaluate long-lived assets, including finite intangible assets, for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset's carrying value exceeds its fair value. There have been no impairments to goodwill or our long-lived assets through December 31, 2016 . |
Investment in Equity Method Investments, Policy | Investment in Equity Method Investments We account for our 25% SLC Pipeline and 50% joint venture interests using the equity method of accounting, whereby we record our pro-rata share of earnings of these companies, and contributions to and distributions from the joint ventures as adjustments to our investment balances. The difference between the cost of an investment and our proportionate share of the underlying equity in net assets recorded on the investee's books is allocated to the various assets and liabilities of the equity method investment. The following table summarizes our recorded investments compared to our share of underlying equity for each investee. We are amortizing the differences as adjustments to our pro-rata share of earnings over the useful lives of the underlying assets of these joint ventures. Balance at December 31, 2016 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investment SLC Pipeline LLC $ 57,273 $ 24,417 $ 32,856 Frontier Aspen LLC 11,630 53,160 (41,530 ) Osage Pipe Line Company, LLC 10,730 43,375 (32,645 ) Cheyenne Pipeline LLC 29,658 44,657 (14,999 ) Total $ 109,291 $ 165,609 $ (56,318 ) |
Asset Retirement Obligations, Policy | Asset Retirement Obligations We record legal obligations associated with the retirement of certain of our long-lived assets that result from the acquisition, construction, development and/or the normal operation of our long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded in the period in which the liability is incurred and when a reasonable estimate of the fair value of the liability can be made. For our pipeline assets, the right-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon cessation of the pipeline service. Additionally, management is unable to predict when, or if, our pipelines and related facilities would become obsolete and require decommissioning. Accordingly, we have recorded no liability or corresponding asset related to an asset retirement obligation for the majority of our pipelines as both the amounts and timing of such potential future costs are indeterminable. For our remaining assets, at December 31, 2016 and 2015 , we have asset retirement obligations of $8.0 million and $7.6 million , respectively, that are recorded under “Other long-term liabilities” in our consolidated balance sheets. |
Class B Unit, Policy | Class B Unit Under the terms of the transaction to acquire HFC's 75% interest in UNEV, we issued HFC a Class B unit comprising a noncontrolling equity interest in a wholly-owned subsidiary subject to redemption to the extent that HFC is entitled to a 50% interest in our share of annual UNEV earnings before interest, income taxes, depreciation, and amortization above $30 million beginning July 1, 2016, and ending in June 2032, subject to certain limitations. Such contingent redemption payments are limited to the unredeemed value of the Class B Unit. However, to the extent earnings thresholds are not achieved, no redemption payments are required. No redemption payments have been required to date. Contemporaneously with this transaction, HFC (our general partner) agreed to forego its right to incentive distributions of up to $1.25 million per quarter over twelve consecutive quarterly periods following the closing of the transaction and up to an additional four quarters if HFC's Woods Cross refinery expansion did not attain certain thresholds. HEP Logistics' waiver of its right to incentive distributions of $1.25 million per quarter ended with the distribution paid in the third quarter of 2016. Pursuant to the terms of the transaction agreements, the Class B unit increases by the amount of each foregone incentive distribution and by a 7% factor compounded annually on the outstanding unredeemed balance through its expiration date. At our option, we may redeem, in whole or in part, the Class B unit at the current unredeemed value based on the calculation described. The Class B unit had a carrying value of $40.3 million at December 31, 2016 , and $33.9 million at December 31, 2015 . |
Revenue Recognition, Policy | Revenue Recognition Revenues are recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. Billings to customers for their obligations under their quarterly minimum revenue commitments are recorded as deferred revenue liabilities if the customer has the right to receive future services for these billings. The revenue is recognized at the earlier of: • the customer receiving the future services provided by these billings, • the period in which the customer is contractually allowed to receive the services expires, or • our determination that we will not be required to provide services within the allowed period. We determine that we will not be required to provide services within the allowed period when, based on current and projected shipping levels, our pipeline systems will not have the necessary capacity to enable a customer to exceed its minimum volume levels to such a degree as to utilize the shortfall credit within its respective contractual shortfall make-up period. We have additional revenues under an operating lease to a third party of an interest in the capacity of one of our pipelines. As of December 31, 2016 , customers' minimum revenue commitments per the terms of long-term throughput agreements expiring in 2019 through 2036 and the third party operating lease require minimum annualized payments to us in the aggregate of $2.9 billion including $363 million for the years ending December 31, 2017 and 2018, $340 million for the year ending December 31, 2019, $295 million for the year ending December 31, 2020 and $290 million for the year ending December 31, 2021. These agreements provide for changes in the minimum revenue guarantees annually for increases or decreases in the PPI or the FERC index, with certain contracts having provisions that limit the level of the rate increases or decreases. We have other cost reimbursement provisions in our throughput / storage agreements providing that customers (including HFC) reimburse us for certain costs. Such reimbursements are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement. Taxes billed and collected from our pipeline and terminal customers are recorded on a net basis with no effect on net income. |
Environmental Costs, Policy | Environmental Costs Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HFC, HFC has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HFC occurring or existing prior to the date of such transfers. We have an environmental agreement with Alon with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Alon in 2005, under which Alon will indemnify us subject to certain monetary and time limitations. Environmental costs recoverable through insurance, indemnification agreements or other sources are included in other assets to the extent such recoveries are considered probable. |
Income Tax, Policy | Income Tax We are subject to the Texas margin tax that is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax. We are organized as a pass-through entity for federal income tax purposes. As a result, our partners are responsible for federal income taxes based on their respective share of taxable income. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the partnership agreement. |
Net Income per Limited Partners' Unit, Policy | Net Income per Limited Partners' Unit We use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the year. Net income per unit applicable to limited partners is computed by dividing limited partners' interest in net income, after adjusting for the allocation of net income or loss attributable to the Predecessor, the allocation of net income or loss attributable to noncontrolling interests and the general partner's 2% interest and incentive distributions and other participating securities, by the weighted-average number of outstanding common units and other dilutive securities. Other participating securities and dilutive securities are not significant. |
New Accounting Pronouncements, Policy | New Accounting Pronouncements Revenue Recognition In May 2014, an accounting standard update was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we intend to account for the new guidance using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition or results of operations. 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. Share-Based Compensation In March 2016, an accounting standard update was issued which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We will adopt this standard effective in the first quarter of 2017. We do not expect this standard to have a material impact on our financial condition, results of operations and cash flows. Business Combinations In December 2014, an accounting standard update was issued to provide new guidance on the definition of a business in relation to accounting for identifiable intangible assets in business combinations. This standard has an effective date of January 1, 2018, and we are evaluating its impact. 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. Earnings Per Unit In April 2015, an accounting standard update was issued requiring the allocation of the earnings or losses of a transferred business for periods before the date of a dropdown transactions accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit. We adopted this standard as of January 1, 2016. In connection with the dropdown transactions from HFC’s Tulsa refinery on March 31, 2016, and HFC's Woods Cross refinery units on October 1, 2016, we reduced net income by $0.9 million and $1.8 million , respectively, for the year ended December 31, 2015 and $1.0 million and $0.7 million , respectively, for the year ended December 31, 2014. This reduction had no impact on the historical earnings per limited partner unit. |
Description of Business and S24
Description of Business and Summary of Significant Accounting Policies Equity Company Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Equity Method Investments [Table Text Block] | Balance at December 31, 2016 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investment SLC Pipeline LLC $ 57,273 $ 24,417 $ 32,856 Frontier Aspen LLC 11,630 53,160 (41,530 ) Osage Pipe Line Company, LLC 10,730 43,375 (32,645 ) Cheyenne Pipeline LLC 29,658 44,657 (14,999 ) Total $ 109,291 $ 165,609 $ (56,318 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination, Separately Recognized Transactions | The following table presents lines in our previously reported balance sheet as of December 31, 2015, that were impacted by Predecessor transactions, and retrospectively adjusts for the acquisitions of the Tulsa Tanks and Woods Cross Operating. The assets and liabilities of El Dorado Operating are included in our previously reported balance sheet as of December 31, 2015. Balance at December 31, 2015 Holly Energy Partners, L.P. (Previously reported) Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) (In Thousands) Properties and equipment, net $ 1,049,870 $ 9,309 $ 233,881 $ 1,293,060 Other long-term liabilities 20,675 69 — 20,744 General partner interest (2% interest) (139,537 ) 9,240 233,881 103,584 |
Predecessor Costs | Year Ended December 31, 2015 Holly Energy Partners, L.P. (Previously reported) Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) (In Thousands) Operating costs and expenses: Operations (exclusive of depreciation and amortization) $ 103,308 $ 411 $ 1,837 $ 105,556 Depreciation and amortization 62,852 454 — 63,306 Allocation of net loss attributable to predecessor — 865 1,837 2,702 Year Ended December 31, 2014 Holly Energy Partners, L.P. (Previously reported) Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) (In Thousands) Operating costs and expenses: Operations (exclusive of depreciation and amortization) $ 104,801 $ 679 $ 705 $ 106,185 Depreciation and amortization 62,166 363 — 62,529 Allocation of net loss attributable to predecessor — 1,042 705 1,747 |
Acquisition cash flows [Table Text Block] | There was no change to the total previously reported cash flows for the years ended December 31, 2015 and 2014 for El Dorado Operating, although the presentation was changed as shown in the tables below. Year Ended December 31, 2015 Holly Energy Partners, L.P. (Previously reported) Reclassifications Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) Cash flows from operating activities (In Thousands) Net income $ 148,328 $ — $ (865 ) $ (1,837 ) $ 145,626 Depreciation and amortization 62,852 — 454 — 63,306 Net cash provided by operating activities $ 232,994 $ — $ (411 ) $ (1,837 ) $ 230,746 Cash flows from investing activities Additions to properties and equipment (67,016 ) 27,623 — — (39,393 ) Acquisition of tanks and operating units (27,500 ) (27,623 ) (513 ) (98,092 ) (153,728 ) Net cash used for investing activities $ (148,075 ) $ — $ (513 ) $ (98,092 ) $ (246,680 ) Cash flows from financing activities Contributions from HFC for acquisitions 27,623 — 924 99,929 128,476 Net cash provided (used) by financing activities $ (72,736 ) $ — $ 924 $ 99,929 $ 28,117 Year Ended December 31, 2014 Holly Energy Partners, L.P. (Previously reported) Reclassifications Tulsa Tanks Woods Cross Operating Holly Energy Partners, L.P. (Currently reported) Cash flows from operating activities (In Thousands) Net Income $ 113,813 $ — $ (1,042 ) $ (705 ) $ 112,066 Depreciation and amortization 62,166 — 363 — 62,529 Net cash provided by operating activities $ 186,640 $ — $ (679 ) $ (705 ) $ 185,256 Cash flows from investing activities Additions to properties and equipment (109,693 ) 29,734 — — (79,959 ) Acquisition of tanks and operating units — (29,734 ) (2,225 ) (86,768 ) (118,727 ) Net cash used for investing activities $ (109,430 ) $ — $ (2,225 ) $ (86,768 ) $ (198,423 ) Cash flows from financing activities Contributions from HFC for acquisitions 29,734 — 2,904 87,473 120,111 Net cash provided (used) by financing activities $ (80,732 ) $ — $ 2,904 $ 87,473 $ 9,645 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 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: December 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 $ 91 $ 91 $ 304 $ 304 Liabilities: 6.0% Senior Notes Level 2 $ 393,393 $ 415,500 $ — $ — 6.5% Senior Notes Level 2 297,519 308,250 296,752 295,500 Interest rate swaps Level 2 — — 114 114 $ 690,912 $ 723,750 $ 296,866 $ 295,614 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment | The carrying amounts of our properties and equipment are as follows: December 31, December 31, (In thousands) Pipelines, terminals and tankage $ 1,246,746 $ 1,231,597 Refinery assets 346,058 297,217 Land and right of way 65,331 66,215 Construction in progress 28,753 28,249 Other 27,133 22,200 1,714,021 1,645,478 Less accumulated depreciation 385,626 352,418 $ 1,328,395 $ 1,293,060 |
Transportation Agreements (Tabl
Transportation Agreements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Transportation Agreements by Major Class | The carrying amounts of our transportation agreements are as follows: December 31, December 31, (In thousands) Alon transportation agreement $ 59,933 $ 59,933 HFC transportation agreement 74,231 74,231 Other 50 50 134,214 134,214 Less accumulated amortization 67,358 60,409 $ 66,856 $ 73,805 |
Employees, Retirement and Inc29
Employees, Retirement and Incentive Plans (Tables) | 12 Months Ended |
Dec. 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 year ended December 31, 2016 , is presented below: Restricted Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2016 (nonvested) 101,408 $ 33.63 Granted 88,899 32.16 Vesting and transfer of common units to recipients (61,768 ) 32.81 Forfeited (4,551 ) 34.21 Outstanding at December 31, 2016 (nonvested) 123,988 $ 32.96 |
Schedule of Nonvested Performance-based Units Activity | A summary of performance unit activity and changes for the year ended December 31, 2016 , is presented below: Performance Units Units Outstanding at January 1, 2016 (nonvested) 45,494 Granted 32,862 Vesting and transfer of common units to recipients (26,157 ) Forfeited (2,679 ) Outstanding at December 31, 2016 (nonvested) 49,520 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term Debt The carrying amounts of our long-term debt are as follows: December 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 553,000 $ 712,000 6% Senior Notes Principal 400,000 — Unamortized debt issuance costs (6,607 ) — 393,393 — 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (2,481 ) (3,248 ) 297,519 296,752 Total long-term debt $ 1,243,912 $ 1,008,752 |
Schedule of Maturities of Long-term Debt | Maturities of our long-term debt are as follows: Years Ending December 31, (In thousands) 2017 $ — 2018 553,000 2019 — 2020 300,000 2021 — Thereafter 400,000 Total $ 1,253,000 |
Schedule of Derivative Instruments | Additional information on our interest rate swaps is as follows: Derivative Instrument Balance Sheet Location Fair Value Location of Offsetting Balance Offsetting Amount (In thousands) December 31, 2016 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other current $ 91 Accumulated other comprehensive loss $ 91 $ 91 $ 91 December 31, 2015 Interest rate swaps designated as cash flow hedging instrument: Variable-to-fixed interest rate swap contract ($150 million of LIBOR based debt interest) Other long-term $ 304 Accumulated other $ 304 Variable-to-fixed interest rate swap contract ($155 million of LIBOR based debt interest) Other current (114 ) Accumulated other comprehensive income (114 ) $ 190 $ 190 |
Schedule of Interest Expense and Other Debt Information | Interest expense consists of the following components: Years Ended December 31, 2016 2015 2014 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 17,621 $ 16,107 $ 13,350 6% Senior Notes 10,811 — — 6.5% Senior Notes 19,507 19,507 19,446 8.25% Senior Notes — — 2,544 Amortization of discount and deferred debt issuance costs 3,246 1,928 1,821 Commitment fees and other 2,069 638 450 Total interest incurred 53,254 38,180 37,611 Less capitalized interest 702 762 1,510 Net interest expense $ 52,552 $ 37,418 $ 36,101 Cash paid for interest $ 38,530 $ 35,938 $ 39,414 |
Schedule of Capital Lease Obligations [Table Text Block] | At December 31, 2016 , future minimum annual lease payments, including interest, for the capital leases are as follows: Years Ending December 31, (in thousands) 2017 $ 1,340 2018 679 2019 431 2020 10 Total minimum lease payments 2,460 Less amount representing interest (165 ) Capital lease obligations $ 2,295 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2016 , the minimum future rental commitments under operating leases having non-cancelable lease terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2017 $ 7,523 2018 7,037 2019 7,032 2020 6,866 2021 6,869 Thereafter 41,769 Total $ 77,096 |
Commitments Disclosure Site Service Agreements | At December 31, 2016 , these minimum future contractual obligations having terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2017 $ 5,132 2018 5,132 2019 5,132 2020 5,132 2021 5,132 Thereafter 223,312 Total $ 248,972 |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 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: Years Ended December 31, 2016 2015 2014 HFC 83 % 81 % 83 % Alon 8 % 10 % 10 % |
Partners' Equity Income Allocat
Partners' Equity Income Allocations and Cash Distributions (Tables) | 12 Months Ended |
Dec. 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: Years Ended December 31, 2016 2015 2014 (In thousands) General partner interest in net income $ 3,165 $ 1,936 $ 1,446 General partner incentive distribution 54,008 40,401 33,221 Net loss attributable to predecessor $ (10,657 ) $ (2,702 ) $ (1,747 ) Total general partner interest in net income $ 46,516 $ 39,635 $ 32,920 |
Schedule of Distributions Made to Partners Percentages | Total Quarterly Distribution Marginal Percentage Interest in Distributions Target Amount Unitholders General Partner Minimum quarterly distribution $0.25 98% 2% First target distribution Up to $0.275 98% 2% Second target distribution above $0.275 up to $0.3125 85% 15% Third target distribution above $0.3125 up to $0.375 75% 25% Thereafter Above $0.375 50% 50% |
Schedule of Distributions Made to Members or Limited Partners, by Distribution | The following table presents the allocation of our regular quarterly cash distributions to the general and limited partners for the periods in which they apply. Our distributions are declared subsequent to quarter end; therefore, the amounts presented do not reflect distributions paid during the periods presented below. Years Ended December 31, 2016 2015 2014 (In thousands, except per unit data) General partner interest in distribution $ 4,088 $ 3,563 $ 3,264 General partner incentive distribution 54,008 40,401 33,221 Total general partner distribution 58,096 43,964 36,485 Limited partner distribution 143,796 129,192 121,714 Total regular quarterly cash distribution $ 201,892 $ 173,156 $ 158,199 Cash distribution per unit applicable to limited partners $ 2.3625 $ 2.2025 $ 2.0750 |
Segment (Tables)
Segment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended December 31, 2016 2015 2014 (in thousands) Revenues: Pipelines and terminals - affiliate $ 300,072 $ 289,258 $ 275,196 Pipelines and terminals - third-party 68,927 66,654 57,349 Refinery processing units - affiliate 33,044 2,963 — Total segment revenues $ 402,043 $ 358,875 $ 332,545 Segment operating income: Pipelines and terminals $ 204,923 $ 191,451 $ 164,536 Refinery processing units 2,706 (1,438 ) (705 ) Total segment operating income 207,629 190,013 163,831 Unallocated general and administrative expenses (12,532 ) (12,556 ) (10,824 ) Interest and financing costs, net (52,112 ) (36,892 ) (43,775 ) Equity in earnings of unconsolidated affiliates 14,213 4,803 2,987 Gain on sale of assets and other 677 486 82 Income before income taxes $ 157,875 $ 145,854 $ 112,301 Capital Expenditures: Pipelines and terminals $ 59,704 $ 67,406 $ 82,184 Refinery processing units 44,119 125,715 116,502 Total capital expenditures $ 103,823 $ 193,121 $ 198,686 December 31, 2016 December 31, 2015 (in thousands) Identifiable assets: Pipelines and terminals $ 1,369,756 $ 1,391,055 Refinery processing units 342,506 296,080 Other 171,975 90,511 Total identifiable assets $ 1,884,237 $ 1,777,646 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data is as follows: First Second Third Fourth Total (In thousands, except per unit data) Year Ended December 31, 2016 Revenues $ 102,010 $ 94,897 $ 92,610 $ 112,526 $ 402,043 Operating income 54,513 47,111 38,924 54,549 195,097 Income before income taxes 46,847 39,569 28,464 42,995 157,875 Net income 46,751 39,516 28,404 42,919 157,590 Net income attributable to Holly Energy Partners 42,975 39,120 34,785 41,361 158,241 Limited partners’ per unit interest in net income – basic and diluted $ 0.52 $ 0.45 $ 0.33 $ 0.40 $ 1.69 Distributions per limited partner unit $ 0.5750 $ 0.5850 $ 0.5950 $ 0.6075 $ 2.3625 Year Ended December 31, 2015 Revenues $ 89,756 $ 83,479 $ 88,389 $ 97,251 $ 358,875 Operating income 43,143 39,745 43,617 50,952 177,457 Income before income taxes 35,268 31,394 35,956 43,236 145,854 Net income 35,168 31,457 35,888 43,113 145,626 Net income attributable to Holly Energy Partners 31,803 30,401 34,485 40,519 137,208 Limited partners’ per unit interest in net income – basic and diluted $ 0.37 $ 0.34 $ 0.40 $ 0.49 $ 1.60 Distributions per limited partner unit $ 0.5375 $ 0.5450 $ 0.5550 $ 0.5650 $ 2.2025 |
Supplemental Guarantor _ Non-36
Supplemental Guarantor / Non-Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 301 $ 3,354 $ — $ 3,657 Accounts receivable — 45,056 5,554 (202 ) 50,408 Prepaid and other current assets 11 2,633 244 — 2,888 Total current assets 13 47,990 9,152 (202 ) 56,953 Properties and equipment, net — 957,045 371,350 — 1,328,395 Investment in subsidiaries 1,086,008 280,671 — (1,366,679 ) — Transportation agreements, net — 66,856 — — 66,856 Goodwill — 256,498 — — 256,498 Equity method investments — 165,609 — — 165,609 Other assets 725 9,201 — — 9,926 Total assets $ 1,086,746 $ 1,783,870 $ 380,502 $ (1,366,881 ) $ 1,884,237 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 24,245 $ 2,899 $ (202 ) $ 26,942 Accrued interest 17,300 769 — — 18,069 Deferred revenue — 8,797 2,305 — 11,102 Accrued property taxes — 4,514 883 — 5,397 Other current liabilities 14 3,208 3 — 3,225 Total current liabilities 17,314 41,533 6,090 (202 ) 64,735 Long-term debt 690,912 553,000 — — 1,243,912 Other long-term liabilities 286 15,975 184 — 16,445 Deferred revenue — 47,035 — — 47,035 Class B unit — 40,319 — — 40,319 Equity - partners 378,234 1,086,008 280,671 (1,366,679 ) 378,234 Equity - noncontrolling interest — — 93,557 — 93,557 Total liabilities and partners’ equity $ 1,086,746 $ 1,783,870 $ 380,502 $ (1,366,881 ) $ 1,884,237 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 — 921,217 371,843 — 1,293,060 Investment in subsidiaries 834,444 283,287 — (1,117,731 ) — 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 $ 835,262 $ 1,671,950 $ 388,363 $ (1,117,929 ) $ 1,777,646 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 19,448 $ 3,333 $ (198 ) $ 22,583 Accrued interest 6,500 252 — — 6,752 Deferred revenue — 6,010 6,006 — 12,016 Accrued property taxes — 2,627 1,137 — 3,764 Other current liabilities 7 3,802 — — 3,809 Total current liabilities 6,507 32,139 10,476 (198 ) 48,924 Long-term debt 296,752 712,000 — — 1,008,752 Other long-term liabilities 210 20,363 171 — 20,744 Deferred revenue — 39,063 — — 39,063 Class B unit — 33,941 — — 33,941 Equity - partners 531,793 834,444 283,287 (1,117,731 ) 531,793 Equity - noncontrolling interest — — 94,429 — 94,429 Total liabilities and partners’ equity $ 835,262 $ 1,671,950 $ 388,363 $ (1,117,929 ) $ 1,777,646 (1) Retrospectively adjusted as described in Note 2. |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 307,049 $ 26,067 $ — $ 333,116 Third parties — 47,326 21,601 — 68,927 — 354,375 47,668 — 402,043 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 111,181 12,805 — 123,986 Depreciation and amortization — 55,083 15,345 — 70,428 General and administrative 3,804 8,728 — — 12,532 3,804 174,992 28,150 — 206,946 Operating income (loss) (3,804 ) 179,383 19,518 — 195,097 Equity in earnings of subsidiaries 193,432 14,634 — (208,066 ) — Equity in earnings of equity method investments — 14,213 — — 14,213 Interest income — 421 19 — 440 Interest expense (31,387 ) (21,165 ) — — (52,552 ) Gain on sale of assets and other — 702 (25 ) — 677 162,045 8,805 (6 ) (208,066 ) (37,222 ) Income (loss) before income taxes 158,241 188,188 19,512 (208,066 ) 157,875 State income tax expense — (285 ) — — (285 ) Net income (loss) 158,241 187,903 19,512 (208,066 ) 157,590 Net loss applicable to predecessor — 10,657 — — 10,657 Allocation of net income attributable to noncontrolling interests — (5,128 ) (4,878 ) — (10,006 ) Net income (loss) attributable to Holly Energy Partners 158,241 193,432 14,634 (208,066 ) 158,241 Other comprehensive income (loss) (99 ) (99 ) — 99 (99 ) Comprehensive income (loss) $ 158,142 $ 193,333 $ 14,634 $ (207,967 ) $ 158,142 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 269,277 $ 22,944 $ — $ 292,221 Third parties — 47,189 19,465 — 66,654 — 316,466 42,409 — 358,875 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 94,087 11,469 — 105,556 Depreciation and amortization — 48,302 15,004 — 63,306 General and administrative 3,616 8,940 — — 12,556 3,616 151,329 26,473 — 181,418 Operating income (loss) (3,616 ) 165,137 15,936 — 177,457 Equity in earnings of subsidiaries 161,097 11,915 — (173,012 ) — Equity in earnings of equity method investments — 4,803 — — 4,803 Interest income — 526 — — 526 Interest expense (20,273 ) (17,145 ) — — (37,418 ) Gain on sale of assets and other — 535 (49 ) — 486 140,824 634 (49 ) (173,012 ) (31,603 ) Income (loss) before income taxes 137,208 165,771 15,887 (173,012 ) 145,854 State income tax expense — (228 ) — — (228 ) Net income (loss) 137,208 165,543 15,887 (173,012 ) 145,626 Net loss applicable to predecessor — 2,702 — — 2,702 Allocation of net income attributable to noncontrolling interests — (7,148 ) (3,972 ) — (11,120 ) Net income (loss) attributable to Holly Energy Partners 137,208 161,097 11,915 (173,012 ) 137,208 Other comprehensive income (loss) 236 236 — (236 ) 236 Comprehensive income (loss) $ 137,444 $ 161,333 $ 11,915 $ (173,248 ) $ 137,444 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 254,364 $ 22,073 $ (1,241 ) $ 275,196 Third parties — 45,711 11,638 — 57,349 — 300,075 33,711 (1,241 ) 332,545 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 94,766 12,660 (1,241 ) 106,185 Depreciation and amortization — 47,955 14,574 — 62,529 General and administrative 2,658 8,166 — — 10,824 2,658 150,887 27,234 (1,241 ) 179,538 Operating income (loss) (2,658 ) 149,188 6,477 — 153,007 Equity in earnings (loss) of subsidiaries 138,691 4,858 — (143,549 ) — Equity in earnings of equity method investments — 2,987 — — 2,987 Interest income — 3 — — 3 Interest expense (22,831 ) (13,270 ) — — (36,101 ) Loss on early extinguishment of debt (7,677 ) — — — (7,677 ) Gain on sale of assets and other — 82 — — 82 108,183 (5,340 ) — (143,549 ) (40,706 ) Income (loss) before income taxes 105,525 143,848 6,477 (143,549 ) 112,301 State income tax expense — (235 ) — — (235 ) Net income (loss) 105,525 143,613 6,477 (143,549 ) 112,066 Net loss applicable to predecessors — 1,747 — — 1,747 Allocation of net income attributable to noncontrolling interests — (6,669 ) (1,619 ) — (8,288 ) Net income (loss) attributable to Holly Energy Partners 105,525 138,691 4,858 (143,549 ) 105,525 Other comprehensive income (loss) 98 98 — (98 ) 98 Comprehensive income (loss) $ 105,623 $ 138,789 $ 4,858 $ (143,647 ) $ 105,623 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (20,441 ) $ 245,771 $ 32,052 $ (14,634 ) $ 242,748 Cash flows from investing activities Additions to properties and equipment — (44,447 ) (15,257 ) — (59,704 ) Acquisition of tanks and operating units — (44,119 ) — — (44,119 ) Purchase of tanks and operating units — (42,627 ) — — (42,627 ) Proceeds from the sale of assets — 427 — — 427 Distributions in excess of equity in earnings of equity companies — 2,993 — — 2,993 Distributions from UNEV — 2,616 — (2,616 ) — — (125,157 ) (15,257 ) (2,616 ) (143,030 ) Cash flows from financing activities Net repayments under credit agreement — (159,000 ) — — (159,000 ) Net intercompany financing activities (302,600 ) 302,600 — — — Proceeds from issuance of 6% Senior Notes 394,000 — — — 394,000 Proceeds from issuance of common units 125,870 — — — 125,870 Contributions from general partner 2,577 — — — 2,577 Distributions to HEP unitholders (192,037 ) — — — (192,037 ) Distributions to noncontrolling interest — — (23,000 ) 17,250 (5,750 ) Distribution to HFC for acquisitions (30,378 ) (287,122 ) — — (317,500 ) Contributions from HFC for acquisitions (3,397 ) 54,659 — — 51,262 Distributions to HFC for Osage acquisition — (1,245 ) — — (1,245 ) Contributions from HFC for Osage acquisition 31,287 (31,287 ) — — — Purchase of units for incentive grants (3,521 ) — — — (3,521 ) Deferred financing costs (910 ) (3,085 ) — — (3,995 ) Other (450 ) (1,285 ) — — (1,735 ) 20,441 (125,765 ) (23,000 ) 17,250 (111,074 ) Cash and cash equivalents Increase for the period — (5,151 ) (6,205 ) — (11,356 ) Beginning of period 2 5,452 9,559 — 15,013 End of period $ 2 $ 301 $ 3,354 $ — $ 3,657 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (19,490 ) $ 232,650 $ 29,501 $ (11,915 ) $ 230,746 Cash flows from investing activities Additions to properties and equipment — (65,574 ) (1,442 ) — (67,016 ) Purchase of tanks and operating units — (126,105 ) — — (126,105 ) Purchase of investment in Frontier Pipeline — (55,032 ) — — (55,032 ) Proceeds from sale of assets — 1,279 — — 1,279 Distributions from UNEV — 1,960 — (1,960 ) — Distribution in excess of equity in earnings in equity companies — 194 — — 194 — (243,278 ) (1,442 ) (1,960 ) (246,680 ) Cash flows from financing activities Net borrowings under credit agreement — 141,000 — — 141,000 Net intercompany financing activities 192,108 (192,108 ) — — — Distributions to noncontrolling interests — — (18,500 ) 13,875 (4,625 ) Distributions to HEP unitholders (169,063 ) — — — (169,063 ) Contributions from HFC for acquisitions — 128,476 — — 128,476 Distributions to HFC for acquisitions — (62,000 ) — — (62,000 ) Deferred financing costs — (962 ) — — (962 ) Purchase of units for restricted grants (3,555 ) — — — (3,555 ) Other — (1,154 ) — — (1,154 ) 19,490 13,252 (18,500 ) 13,875 28,117 Cash and cash equivalents Increase (decrease) for the period — 2,624 9,559 — 12,183 Beginning of period 2 2,828 — — 2,830 End of period $ 2 $ 5,452 $ 9,559 $ — $ 15,013 (1) Retrospectively adjusted as described in Note 2. Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (1) Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (25,339 ) $ 191,889 $ 19,398 $ (692 ) $ 185,256 Cash flows from investing activities Additions to properties and equipment — (101,492 ) (8,201 ) — (109,693 ) Acquisition of tanks and operating units — (88,993 ) — — (88,993 ) Distributions from UNEV — 11,383 — (11,383 ) — Distributions in excess of equity in earnings in equity companies — 263 — — 263 — (178,839 ) (8,201 ) (11,383 ) (198,423 ) Cash flows from financing activities Net borrowings under credit agreement — 208,000 — — 208,000 Net intercompany financing activities 339,771 (339,771 ) — — — Redemption of senior notes (156,188 ) — — — (156,188 ) Distributions to noncontrolling interests — — (16,100 ) 12,075 (4,025 ) Distributions to HEP unitholders (154,670 ) — — — (154,670 ) Contributions from HFC f acquisitions — 120,111 — — 120,111 Purchase of units for restricted grants (3,577 ) — — — (3,577 ) Deferred financing costs — (9 ) — — (9 ) Other 3 — — — 3 25,339 (11,669 ) (16,100 ) 12,075 9,645 Cash and cash equivalents Increase for the period — 1,381 (4,903 ) — (3,522 ) Beginning of period 2 1,447 4,903 — 6,352 End of period $ 2 $ 2,828 $ — $ — $ 2,830 (1) Retrospectively adjusted as described in Note 2. |
Description of Business and Pre
Description of Business and Presentation of Financial Statements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Ownership Interests [Line Items] | |||||||||
Goodwill, Impairment Loss | $ 0 | ||||||||
Ownership percentage, controlling interest | 37.00% | 37.00% | |||||||
General partner interest | 2.00% | ||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | |||||||
Underlying Equity in Net Assets | $ 109,291,000 | $ 109,291,000 | |||||||
Equity Method Investments | 165,609,000 | 165,609,000 | $ 79,438,000 | ||||||
Difference Between Carrying Amount and Underlying Equity | (56,318,000) | (56,318,000) | |||||||
Asset Retirement Obligation | 8,000,000 | 8,000,000 | 7,600,000 | ||||||
UNEV acquisition, contingent consideration | 30,000,000 | 30,000,000 | |||||||
UNEV acquisition, HFC incentive distributions | 1,250,000 | 1,250,000 | |||||||
Class B unit | 40,319,000 | 40,319,000 | 33,941,000 | ||||||
Minimum Annualized Payments Receivable Aggregate | 2,900,000,000 | 2,900,000,000 | |||||||
Accrual for Environmental Loss Contingencies | $ 7,100,000 | $ 7,100,000 | 7,700,000 | ||||||
Partners' Capital Account, Units, Sold in Private Placement | 3,420,000 | ||||||||
Sale of Stock, Price Per Share | $ 30.18 | $ 30.18 | |||||||
Proceeds from Issuance of Private Placement | $ 103,000,000 | $ 103,000,000 | |||||||
Contribution from general partner | $ 2,100,000 | $ 2,577,000 | 128,476,000 | $ 120,111,000 | |||||
SLC Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Ownership percentage in equity method investment | 25.00% | 25.00% | |||||||
UNEV Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Ownership percentage in equity method investment | 75.00% | 75.00% | |||||||
Frontier Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | |||||||
Osage Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | |||||||
Underlying Equity in Net Assets | $ 12,100,000 | $ 12,100,000 | |||||||
Difference Between Carrying Amount and Underlying Equity | $ 33,100,000 | $ 33,100,000 | |||||||
Cheyenne [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | |||||||
Other Fixed Assets [Member] | Minimum [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||
Other Fixed Assets [Member] | Maximum [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||
Pipelines,terminals and tankage [Member] | Minimum [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 25 years | ||||||||
Pipelines,terminals and tankage [Member] | Maximum [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 32 years | ||||||||
Terminal Facilities and Tankage [Member] [Member] | Minimum [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 15 years | ||||||||
Terminal Facilities and Tankage [Member] [Member] | Maximum [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Property, Plant and Equipment, Useful Life | 25 years | ||||||||
Subsequent Event [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Minimum Annualized Payments Receivable | $ 290,000,000 | $ 295,000,000 | $ 340,000,000 | $ 363,000,000 | $ 363,000,000 | ||||
Cheyenne [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Underlying Equity in Net Assets | $ 29,658,000 | $ 29,658,000 | |||||||
Equity Method Investments | 44,657,000 | 44,657,000 | |||||||
Difference Between Carrying Amount and Underlying Equity | (14,999,000) | (14,999,000) | |||||||
Osage Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Underlying Equity in Net Assets | 10,730,000 | 10,730,000 | |||||||
Equity Method Investments | 43,375,000 | 43,375,000 | |||||||
Difference Between Carrying Amount and Underlying Equity | (32,645,000) | (32,645,000) | |||||||
Frontier Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Underlying Equity in Net Assets | 11,630,000 | 11,630,000 | |||||||
Equity Method Investments | 53,160,000 | 53,160,000 | |||||||
Difference Between Carrying Amount and Underlying Equity | (41,530,000) | (41,530,000) | |||||||
SLC Pipeline [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Underlying Equity in Net Assets | 57,273,000 | 57,273,000 | |||||||
Equity Method Investments | 24,417,000 | 24,417,000 | |||||||
Difference Between Carrying Amount and Underlying Equity | $ 32,856,000 | 32,856,000 | |||||||
Tulsa Tanks [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Woods Cross acquisition, net income adjustment | 900,000 | 1,000,000 | |||||||
Contribution from general partner | 924,000 | 2,904,000 | |||||||
Woods Cross [Member] | |||||||||
Other Ownership Interests [Line Items] | |||||||||
Woods Cross acquisition, net income adjustment | $ 1,800,000 | $ 700,000 | |||||||
Contribution from general partner | $ 51,262,000 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)mibbl | Dec. 31, 2014USD ($) | ||||
Business Acquisition [Line Items] | ||||||||||||||
Distribution to HFC for acquisitions | $ 317,500 | $ 62,000 | $ 0 | |||||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Additions to properties, and equipment | $ (59,704) | (39,393) | [1] | (79,959) | [1] | |||||||||
Underlying Equity in Net Assets | $ 109,291 | 109,291 | ||||||||||||
Difference Between Carrying Amount and Underlying Equity | (56,318) | (56,318) | ||||||||||||
Property, Plant and Equipment, Additions | 103,823 | 193,121 | 198,686 | |||||||||||
Operating Expenses | 206,946 | 181,418 | 179,538 | |||||||||||
Payments to Acquire Equity Method Investments | 42,627 | 0 | 0 | |||||||||||
Proceeds from Issuance of Private Placement | $ 103,000 | $ 103,000 | ||||||||||||
Partners' Capital Account, Units, Sold in Private Placement | shares | 3,420,000 | |||||||||||||
Sale of Stock, Price Per Share | $ / shares | $ 30.18 | $ 30.18 | ||||||||||||
Properties and equipment, net | $ 1,293,060 | 1,293,060 | ||||||||||||
Operations (exclusive of depreciation and amortization) | $ 123,986 | 105,556 | 106,185 | |||||||||||
Depreciation and amortization | 70,428 | 63,306 | 62,529 | |||||||||||
Operating Expenses | 10,657 | 2,702 | 1,747 | |||||||||||
Other long-term liabilities | 20,744 | 20,744 | ||||||||||||
General partner interest (2% interest) | $ (132,832) | 103,584 | [2] | (132,832) | 103,584 | [2] | ||||||||
Net income | 42,919 | $ 28,404 | $ 39,516 | $ 46,751 | 43,113 | $ 35,888 | $ 31,457 | $ 35,168 | 157,590 | 145,626 | 112,066 | |||
Net cash provided by operating activities | 242,748 | 230,746 | 185,256 | |||||||||||
Additions to properties and equipment | (59,704) | (67,016) | (109,693) | |||||||||||
Payments to Acquire Businesses, Gross | (44,119) | (153,728) | [1] | (118,727) | [1] | |||||||||
Net cash used for investing activities | (143,030) | (246,680) | [1] | (198,423) | [1] | |||||||||
Contribution from general partner | $ 2,100 | 2,577 | 128,476 | 120,111 | ||||||||||
Net cash used by financing activities | $ (111,074) | $ 28,117 | [1] | 9,645 | [1] | |||||||||
Frontier Pipeline [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Length of Pipeline | mi | 289 | |||||||||||||
Production barrel capacity per day | bbl | 72,000 | |||||||||||||
Additions to properties, and equipment | $ (54,600) | |||||||||||||
UNEV Pipeline [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage in equity method investment | 75.00% | 75.00% | ||||||||||||
Osage Pipeline [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Length of Pipeline | mi | 135 | |||||||||||||
Duration of Sales Commitment - Years | 20 | |||||||||||||
Business Combination, Consideration Transferred | $ 44,500 | |||||||||||||
Underlying Equity in Net Assets | $ 12,100 | 12,100 | ||||||||||||
Difference Between Carrying Amount and Underlying Equity | $ 33,100 | 33,100 | ||||||||||||
El Dorado [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additions to properties, and equipment | $ (62,000) | |||||||||||||
Purchase Obligation Minimum Annualized Payment | $ 15,000 | |||||||||||||
Cheyenne [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Distribution to HFC for acquisitions | $ 278,000 | |||||||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Length of Pipeline | mi | 87 | |||||||||||||
Production barrel capacity per day | bbl | 80,000 | |||||||||||||
Purchase Obligation Minimum Annualized Payment | $ 56,700 | |||||||||||||
Payments to Acquire Equity Method Investments | $ 42,600 | |||||||||||||
Woods Cross [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Duration of Sales Commitment - Years | 15 | |||||||||||||
Affiliated Entity [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additions to properties and equipment | $ (39,393) | (79,959) | ||||||||||||
El Dorado [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Distribution to HFC for acquisitions | $ 27,500 | |||||||||||||
Depreciation and amortization | 0 | 0 | ||||||||||||
Net income | 0 | 0 | ||||||||||||
Net cash provided by operating activities | 0 | 0 | ||||||||||||
Additions to properties and equipment | (27,623) | (29,734) | ||||||||||||
Payments to Acquire Businesses, Gross | (27,623) | (29,734) | ||||||||||||
Net cash used for investing activities | 0 | 0 | ||||||||||||
Contribution from general partner | 0 | 0 | ||||||||||||
Net cash used by financing activities | 0 | 0 | ||||||||||||
Tulsa Tanks [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Property, Plant and Equipment, Additions | 39,500 | |||||||||||||
Properties and equipment, net | 9,309 | 9,309 | ||||||||||||
Operations (exclusive of depreciation and amortization) | 411 | 679 | ||||||||||||
Depreciation and amortization | 454 | 363 | ||||||||||||
Operating Expenses | 865 | 1,042 | ||||||||||||
Other long-term liabilities | 69 | 69 | ||||||||||||
General partner interest (2% interest) | 9,240 | 9,240 | ||||||||||||
Net income | (865) | (1,042) | ||||||||||||
Net cash provided by operating activities | (411) | (679) | ||||||||||||
Additions to properties and equipment | 0 | 0 | ||||||||||||
Payments to Acquire Businesses, Gross | (513) | (2,225) | ||||||||||||
Net cash used for investing activities | (513) | (2,225) | ||||||||||||
Contribution from general partner | 924 | 2,904 | ||||||||||||
Net cash used by financing activities | 924 | 2,904 | ||||||||||||
Woods Cross [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Properties and equipment, net | 233,881 | 233,881 | ||||||||||||
Operations (exclusive of depreciation and amortization) | 1,837 | 705 | ||||||||||||
Depreciation and amortization | 0 | 0 | ||||||||||||
Operating Expenses | 1,837 | 705 | ||||||||||||
Other long-term liabilities | 0 | 0 | ||||||||||||
General partner interest (2% interest) | 233,881 | 233,881 | ||||||||||||
Net income | (1,837) | (705) | ||||||||||||
Net cash provided by operating activities | (1,837) | (705) | ||||||||||||
Additions to properties and equipment | 0 | 0 | ||||||||||||
Payments to Acquire Businesses, Gross | (98,092) | (86,768) | ||||||||||||
Net cash used for investing activities | (98,092) | (86,768) | ||||||||||||
Contribution from general partner | 51,262 | |||||||||||||
Contribution of Property | 99,929 | 87,473 | ||||||||||||
Net cash used by financing activities | 99,929 | 87,473 | ||||||||||||
Tulsa Tanks [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Operating Expenses | 200 | |||||||||||||
Woods Cross [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Operating Expenses | $ 10,400 | |||||||||||||
Scenario, Actual [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Properties and equipment, net | 1,049,870 | 1,049,870 | ||||||||||||
Operations (exclusive of depreciation and amortization) | 103,308 | 104,801 | ||||||||||||
Depreciation and amortization | 62,852 | 62,166 | ||||||||||||
Operating Expenses | 0 | 0 | ||||||||||||
Other long-term liabilities | 20,675 | 20,675 | ||||||||||||
General partner interest (2% interest) | $ (139,537) | (139,537) | ||||||||||||
Net income | 148,328 | 113,813 | ||||||||||||
Net cash provided by operating activities | 232,994 | 186,640 | ||||||||||||
Additions to properties and equipment | (67,016) | (109,693) | ||||||||||||
Payments to Acquire Businesses, Gross | (27,500) | 0 | ||||||||||||
Net cash used for investing activities | (148,075) | (109,430) | ||||||||||||
Contribution from general partner | 27,623 | 29,734 | ||||||||||||
Net cash used by financing activities | $ (72,736) | $ (80,732) | ||||||||||||
[1] | 1) Retrospectively adjusted as described in Note 2. | |||||||||||||
[2] | (1) Retrospectively adjusted as described in Note 2. |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 723,750 | $ 295,614 |
6.0% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate, senior notes | 6.00% | |
6.0% Senior Notes [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 415,500 | 0 |
6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate, senior notes | 6.50% | |
6.5% Senior Notes [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 308,250 | 295,500 |
Interest Rate Swap [Member] | Fair value inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Instruments and Hedges, Assets | 91 | 304 |
Derivative Instruments and Hedges, Liabilities | 0 | 114 |
Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 690,912 | 296,866 |
Reported Value Measurement [Member] | 6.0% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 393,393 | 0 |
Reported Value Measurement [Member] | 6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 297,519 | 296,752 |
Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Instruments and Hedges, Assets | 91 | 304 |
Derivative Instruments and Hedges, Liabilities | $ 0 | $ 114 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | $ 1,714,021 | $ 1,645,478 | ||
Less accumulated depreciation | 385,626 | 352,418 | ||
Properties and equipment, net | 1,328,395 | 1,293,060 | [1] | |
Interest costs, capitalized during period | 702 | 762 | $ 1,510 | |
Depreciation expense | 62,900 | 55,800 | 55,100 | |
Asset abandonment costs | 600 | 1,100 | $ 1,900 | |
Pipelines,terminals and tankage [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 1,246,746 | 1,231,597 | ||
Land and right of way [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 65,331 | 66,215 | ||
Refining assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 346,058 | 297,217 | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | 28,753 | 28,249 | ||
Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Properties and equipment, gross | $ 27,133 | $ 22,200 | ||
[1] | (1) Retrospectively adjusted as described in Note 2. |
Transportation Agreements (Deta
Transportation Agreements (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Components | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Expense | $ 6,900 | $ 6,949 | $ 6,949 |
Transportation Agreements [Abstract] | |||
Transportation agreements, gross | 134,214 | 134,214 | |
Less accumulated amortization | 67,358 | 60,409 | |
Transportation agreements, net | $ 66,856 | 73,805 | |
Basis in Transportation Agreements | Components | 0 | ||
Alon transportation agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (years) | 30 years | ||
Initial Term of Useful Life | 15 years | ||
Extension term | 15 years | ||
Transportation Agreements [Abstract] | |||
Transportation agreements, gross | $ 59,933 | 59,933 | |
HFC transportation agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (years) | 15 years | ||
Transportation Agreements [Abstract] | |||
Transportation agreements, gross | $ 74,231 | 74,231 | |
El Dorado [Member] | |||
Transportation Agreements [Abstract] | |||
Transportation agreements, gross | $ 50 | $ 50 |
Employees, Retirement and Inc42
Employees, Retirement and Incentive Plans Retirement and Benefit Plan Costs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Componentsshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Retirement and benefit costs | $ 5.7 | $ 5.4 | $ 7.4 |
Retirement costs | $ 2.6 | 2.2 | 4.4 |
Long-term incentive plan, components | Components | 4 | ||
Share-based Compensation Expense | $ 2.7 | $ 3.4 | $ 3.5 |
Long-term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units authorized under Long-term Incentive Plan | shares | 2,500,000 | ||
Number of units not yet granted | shares | 1,377,640 |
Employees, Retirement and Inc43
Employees, Retirement and Incentive Plans Restricted Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at January 1, 2016 (nonvested) | 101,408 | ||
Granted | 88,899 | ||
Vesting and transfer of full ownership to recipients | (61,768) | ||
Forfeited | (4,551) | ||
Outstanding at December 31, 2016 (nonvested) | 123,988 | 101,408 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at January 1, 2016 (nonvested) | $ 33.63 | ||
Granted | 32.16 | ||
Vesting and transfer of full ownership to recipients | 32.81 | $ 34.16 | $ 33.49 |
Forfeited | 34.21 | ||
Outstanding at December 31, 2016 (nonvested) | $ 32.96 | $ 33.63 | |
Weighted average remaining contractual term (years) | 1 year 7 months | ||
Grant date fair value of vested units transferred to recipients | $ 2 | $ 2.5 | $ 2.7 |
Total unrecognized compensation related to nonvested units | $ 2.8 | ||
Minimum [Member] | Restricted Stock [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 1 year | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 1 year | ||
Maximum [Member] | Restricted Stock [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 3 years | ||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Grant-Date Fair Value | |||
Award vesting period | 3 years |
Employees, Retirement and Inc44
Employees, Retirement and Incentive Plans Performance Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement, Nonvested [Roll Forward] | |||||
Purchase of units for incentive grants | $ (3,521) | $ (3,555) | $ (3,577) | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement, Nonvested [Roll Forward] | |||||
Outstanding at January 1, 2016 (nonvested) | 45,494 | 45,494 | |||
Granted | 32,862 | ||||
Vesting and transfer of full ownership to recipients | (26,157) | ||||
Forfeited | (2,679) | ||||
Outstanding at December 31, 2016 (nonvested) | 49,520 | 49,520 | 45,494 | ||
Executive Officer [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Certain Officers [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Maximum [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Long-term Incentive Plan [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement, Nonvested [Roll Forward] | |||||
Grant date fair value of vested units transferred to recipients | $ 1,100 | $ 600 | $ 500 | ||
Weighted average fair value of units outstanding | $ 1,600,000 | $ 1,600,000 | |||
Total unrecognized compensation related to nonvested units | $ 1,300 | $ 1,300 | |||
Weighted average remaining contractual term (years) | 2 years 4 months | ||||
Long-term Incentive Plan [Member] | Certain Officers [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated Share Payouts, Outstanding Nonvested Performance Unit Awards Maximum | 150.00% | 150.00% | |||
Estimated Share Payouts, Outstanding Nonvested Performance Unit Awards Minimum | 100.00% | 100.00% | |||
Range of performance units earned, based on performance period, minimum percentage | 50.00% | ||||
Range of performance units earned, based on performance period, maximum (percent) | 150.00% | ||||
Grants in period, weighted average grant date fair value | $ 33,330 | $ 24.48 | $ 34.21 | $ 33.57 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate at Period End | 2.978% | 2.655% | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Letters of Credit Maximum Capacity | $ 50 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit agreement, maximum borrowing capacity | $ 1,200 | $ 850 | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||
Minimum [Member] | Option AA [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Minimum [Member] | Option (b) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||
Maximum [Member] | Option AA [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Maximum [Member] | Option (b) [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Debt Senior Notes (Details)
Debt Senior Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 04, 2017 | |
Debt Instrument [Line Items] | ||||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ (7,677) | |||
Credit agreement restrictions to 2018 | 171,000 | |||||
8.25% Interest Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 150,000 | |||||
Extinguishment of Debt, Amount | $ 156,200 | |||||
Stated interest rate, senior notes | 8.25% | |||||
Loss on early extinguishment of debt | $ 7,700 | |||||
6.5% Interest Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 300,000 | |||||
Stated interest rate, senior notes | 6.50% | |||||
6.5% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 300,000 | $ 300,000 | ||||
Stated interest rate, senior notes | 6.50% | |||||
6.0% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 400,000 | |||||
Stated interest rate, senior notes | 6.00% | |||||
Subsequent Event [Member] | 6.5% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 300,000 | |||||
Extinguishment of Debt, Amount | $ 316,400 | |||||
Loss on early extinguishment of debt | $ 12,200 |
Debt Long-Term Debt (Details)
Debt Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 553,000 | $ 712,000 |
Total long-term debt | 1,243,912 | 1,008,752 |
6.0% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000 | |
Unamortized discount | (6,607) | |
Senior Notes | 393,393 | |
6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000 | 300,000 |
Unamortized discount | (2,481) | (3,248) |
Senior Notes | $ 297,519 | $ 296,752 |
Debt Interest Rate Risk Managem
Debt Interest Rate Risk Management (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 553,000,000 | $ 712,000,000 |
Debt instrument, effective interest rate | 2.978% | 2.655% |
Accumulated other comprehensive income (loss) | $ 91,000 | $ 190,000 |
Derivative Asset | 91,000 | |
Gain (Loss) Recognized in the Next Twelve Months, Net | 91,000 | |
Derivative Assets (Liabilities), at Fair Value, Net | 190,000 | |
Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | 150,000,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Accumulated other comprehensive income (loss) | 91,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging, Added 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 150,000,000 | |
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 Long-term Liabilities [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Asset | (304,000) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative liabilities, fair value | 114,000 | |
Derivative Asset | $ 91,000 | 304,000 |
Other Current Assets [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative Asset | $ 91,000 | |
Other Noncurrent Assets [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Derivative liabilities, fair value | $ 114,000 |
Debt Interest Expense and Other
Debt Interest Expense and Other Debt Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Interest expense, debt | $ 53,254 | $ 38,180 | $ 37,611 |
Less capitalized interest | 702 | 762 | 1,510 |
Net interest expense | 52,552 | 37,418 | 36,101 |
Cash paid for interest | 38,530 | 35,938 | 39,414 |
6.0% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 10,811 | 0 | 0 |
6.5% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 19,507 | 19,507 | 19,446 |
8.25% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 0 | 0 | 2,544 |
Amortization discount and deferred debt issuance costs [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 3,246 | 1,928 | 1,821 |
Commitment Fees [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 2,069 | 638 | 450 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | $ 17,621 | $ 16,107 | $ 13,350 |
Debt Debt Maturities by Year (D
Debt Debt Maturities by Year (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 553,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 300,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 400,000 |
Long-term Debt | $ 1,253,000 |
Debt Debt Capitalized Leases (D
Debt Debt Capitalized Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 4,900 | $ 3,000 |
Capital Leases, Accumulated Depreciation | 2,400 | $ 1,100 |
Capital Lease Obligations [Member] | ||
Operating Leased Assets [Line Items] | ||
Capital lease obligations, payments in next twelve months | 1,340 | |
Capital lease obligations, payments in year two | 679 | |
Capital lease obligations, payments in year three | 431 | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Four | 10 | |
Capital Leases, Future Minimum Payments Due | 2,460 | |
Capital leases interest included in payments | (165) | |
Capital Leases, Future Minimum Payments, Net Minimum Payments | $ 2,295 |
Commitments and Contingencies52
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term Purchase Commitment [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 7,523 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 7,037 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 7,032 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 6,866 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 6,869 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 41,769 | ||
Operating Leases, Future Minimum Payments Due | 77,096 | ||
Operating Leases, Rent Expense | 8,500 | $ 8,900 | $ 8,000 |
Site Service Commitments | |||
Long-term Purchase Commitment [Line Items] | |||
Site Service Agreements, Future Minimum Payments Due, Current Year | 5,132 | ||
Site Service Agreements, Future Minimum Payments, Due in Two Years | 5,132 | ||
Site Service Agreements, Future Minimum Payments, Due in Three Years | 5,132 | ||
Site Service Agreements, Future Minimum Payments, Due in Four Years | 5,132 | ||
Site Service Agreements, Future Minimum Payments, Due in Five Years | 5,132 | ||
Site Service Agreements, Future Minimum Payments, Due Thereafter | 223,312 | ||
Site Service Agreements, Future Minimum Payments Due | $ 248,972 |
Significant Customers (Details)
Significant Customers (Details) - Customers | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 91.00% | ||
Concentration risk, number of significant customers | 2 | ||
HFC [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 83.00% | 81.00% | 83.00% |
Alon [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 8.00% | 10.00% | 10.00% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Affiliates | $ 333,116 | $ 292,221 | $ 275,196 |
Due from Affiliates | 42,562 | 32,482 | |
Due to Affiliate, Current | $ 16,424 | 11,635 | |
Ownership percentage in equity method investment | 50.00% | ||
Property, Plant and Equipment, Additions | $ 103,823 | 193,121 | 198,686 |
Payments to Acquire Productive Assets | 317,500 | 62,000 | 0 |
HFC [Member] | |||
Related Party Transaction [Line Items] | |||
Minimum Annualized Payments Receivable | 321,000 | ||
Annual Administrative Fee [Member] | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses, Related Party | 2,500 | 2,400 | 2,300 |
Reimbursements Paid [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses resulting from agreement with related party | 40,900 | 34,500 | 38,900 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursements paid to related parties | 14,000 | 13,500 | 16,800 |
Cash Distribution Paid | 105,200 | 90,400 | 80,500 |
Shortfall payments billed [Domain] | |||
Related Party Transaction [Line Items] | |||
Affiliates | 6,100 | 7,300 | $ 10,100 |
Deferred Revenue, Additions | 5,600 | $ 6,400 | |
Tulsa Tanks [Member] | |||
Related Party Transaction [Line Items] | |||
Property, Plant and Equipment, Additions | $ 39,500 | ||
Cheyenne [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership percentage in equity method investment | 50.00% | ||
Payments to Acquire Productive Assets | $ 278,000 |
Net Income Per Limited Partner
Net Income Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
General Partners' Capital Account, Period Distribution Amount | $ (58,096) | $ (43,964) | $ (36,485) | ||||||||
Limited partner distribution | (143,796) | (129,192) | (121,714) | ||||||||
Net income attributable to Holly Energy Partners | $ 41,361 | $ 34,785 | $ 39,120 | $ 42,975 | $ 40,519 | $ 34,485 | $ 30,401 | $ 31,803 | 158,241 | 137,208 | 105,525 |
Allocation of net loss attributable to predecessor | 10,657 | 2,702 | 1,747 | ||||||||
Partners Distributions | 201,892 | 173,156 | 158,199 | ||||||||
Distributions in Excess of Period Net Income | (43,651) | (35,948) | (52,674) | ||||||||
Net (Income) Loss Attributable to Partnership | $ 158,241 | $ 137,208 | $ 105,525 | ||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 59,872 | 58,657 | 58,657 | ||||||||
Net Income (Loss) Per Outstanding Limited Partnership Unit Basic and Diluted | $ 0.40 | $ 0.33 | $ 0.45 | $ 0.52 | $ 0.49 | $ 0.40 | $ 0.34 | $ 0.37 | $ 1.69 | $ 1.60 | $ 1.20 |
Limited Partner [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Distributions in Excess of Period Net Income | $ (42,778) | $ (35,229) | $ (51,621) | ||||||||
Net (Income) Loss Attributable to Partnership | 101,018 | 93,963 | 70,093 | ||||||||
General Partner [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Distributions in Excess of Period Net Income | (873) | (719) | (1,053) | ||||||||
Net (Income) Loss Attributable to Partnership | $ 57,223 | $ 43,245 | $ 35,432 |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capital Unit [Line Items] | ||||
Partners' capital account, units held by controlling interest | 22,380,030 | 22,380,030 | ||
General partner ownership interest | 2.00% | |||
Ownership percentage, controlling interest | 37.00% | 37.00% | ||
Partners' Capital Account, Units, Sold in Private Placement | 3,420,000 | |||
Sale of Stock, Price Per Share | $ 30.18 | $ 30.18 | ||
Proceeds from Issuance of Private Placement | $ 103,000 | $ 103,000 | ||
Contribution from general partner | $ 2,100 | 2,577 | $ 128,476 | $ 120,111 |
Common Unit Issuance Program | $ 200,000 | |||
Common Unit, Issued | 703,455 | 703,455 | ||
Proceeds from Issuance of Common Limited Partners Units | $ 23,500 | |||
Fees and Commissions | 500 | |||
General Partners' Contributed Capital | $ 500 | $ 500 |
Partners' Equity, Allocations o
Partners' Equity, Allocations of Net Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Partners' Capital [Abstract] | |||
General partner interest in net income | $ 3,165 | $ 1,936 | $ 1,446 |
General partner incentive distribution | 54,008 | 40,401 | 33,221 |
Allocation of net loss attributable to predecessor | (10,657) | (2,702) | (1,747) |
Net income (Loss) Allocated to Partners After Predecessor Portion | $ 46,516 | $ 39,635 | $ 32,920 |
Partners' Equity, Cash Distribu
Partners' Equity, Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners' Capital, Distribution Amount Per Share | $ 0 | $ 0 | |||||||||
Incentive Distribution, Date | Feb. 14, 2017 | ||||||||||
Distribution Made to Limited Partner, Date of Record | Feb. 6, 2017 | ||||||||||
Distribution of Available Cash to Unitholders, Period | 45 days | ||||||||||
Partner Distributions | |||||||||||
General partner interest in distribution | $ 4,088 | $ 3,563 | $ 3,264 | ||||||||
General partner incentive distribution | 54,008 | 40,401 | 33,221 | ||||||||
Total general partner distribution | 58,096 | 43,964 | 36,485 | ||||||||
Limited partner distribution | 143,796 | 129,192 | 121,714 | ||||||||
Total regular quarterly cash distribution | $ 201,892 | $ 173,156 | $ 158,199 | ||||||||
Cash distribution per unit applicable to limited partners | $ 0.6075 | $ 0.5950 | $ 0.5850 | $ 0.5750 | $ 0.5650 | $ 0.5550 | $ 0.5450 | $ 0.5375 | $ 2.3625 | $ 2.2025 | $ 2.0750 |
Minimum Quarterly Distribution Percentage [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.250 | ||||||||||
General Partners Capital, Distribution Amount per share | 2.00% | ||||||||||
Partners Capital Distribution percentage | 98.00% | ||||||||||
First Target Distribution [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Maximum | $ 0.275 | ||||||||||
General Partners Capital, Distribution Amount per share | 2.00% | ||||||||||
Partners Capital Distribution percentage | 98.00% | ||||||||||
Second Distribution Target [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.275 | ||||||||||
Partners Capital, Distribution Amount per share Maximum | $ 0.3125 | ||||||||||
General Partners Capital, Distribution Amount per share | 15.00% | ||||||||||
Partners Capital Distribution percentage | 85.00% | ||||||||||
Third Target Distribution [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.3125 | ||||||||||
Partners Capital, Distribution Amount per share Maximum | $ 0.375 | ||||||||||
General Partners Capital, Distribution Amount per share | 25.00% | ||||||||||
Partners Capital Distribution percentage | 75.00% | ||||||||||
Thereafter Target Distribution [Member] | |||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||
Partners Capital, Distribution Amount per share Minimum | $ 0.375 | ||||||||||
General Partners Capital, Distribution Amount per share | 50.00% | ||||||||||
Partners Capital Distribution percentage | 50.00% |
Environmental Environmental Rem
Environmental Environmental Remediation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Environmental Exit Cost [Line Items] | |||
Environmental Remediation Expense | $ 0.7 | $ 3.6 | $ 3.1 |
Accrual for Environmental Loss Contingencies | 7.1 | 7.7 | |
Accrued Environmental Loss Contingencies, Noncurrent | 5.4 | 6.1 | |
Affiliated Entity [Member] | |||
Environmental Exit Cost [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 0.9 | $ 6.4 |
Segment (Details)
Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue, Net | $ 112,526 | $ 92,610 | $ 94,897 | $ 102,010 | $ 97,251 | $ 88,389 | $ 83,479 | $ 89,756 | $ 402,043 | $ 358,875 | $ 332,545 | ||
Operating Income (Loss) | 54,549 | 38,924 | 47,111 | 54,513 | 50,952 | 43,617 | 39,745 | 43,143 | 195,097 | 177,457 | 153,007 | ||
Segment operating income | 207,629 | 190,013 | 163,831 | ||||||||||
Unallocated general and administrative expenses | 12,532 | 12,556 | 10,824 | ||||||||||
Interest and financing costs, net | (52,112) | (36,892) | (43,775) | ||||||||||
Equity in earnings of equity method investments | 14,213 | 4,803 | 2,987 | ||||||||||
Gain on sale of assets and other | 677 | 486 | 82 | ||||||||||
Income before Income Taxes | 42,995 | $ 28,464 | $ 39,569 | $ 46,847 | 43,236 | $ 35,956 | $ 31,394 | $ 35,268 | 157,875 | 145,854 | 112,301 | ||
Capital expenditures | 103,823 | 193,121 | 198,686 | ||||||||||
Identifiable assets | 1,884,237 | 1,777,646 | [1] | 1,884,237 | 1,777,646 | [1] | |||||||
Affiliated Entity [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue, Net | 300,072 | 289,258 | 275,196 | ||||||||||
Pipelines [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue, Net | 68,927 | 66,654 | 57,349 | ||||||||||
Operating Income (Loss) | 204,923 | 191,451 | 164,536 | ||||||||||
Capital expenditures | 59,704 | 67,406 | 82,184 | ||||||||||
Identifiable assets | 1,369,756 | 1,391,055 | 1,369,756 | 1,391,055 | |||||||||
Refining [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenue, Net | 33,044 | 2,963 | 0 | ||||||||||
Operating Income (Loss) | 2,706 | (1,438) | (705) | ||||||||||
Capital expenditures | 44,119 | 125,715 | $ 116,502 | ||||||||||
Identifiable assets | 342,506 | 296,080 | 342,506 | 296,080 | |||||||||
Other Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Identifiable assets | $ 171,975 | $ 90,511 | $ 171,975 | $ 90,511 | |||||||||
[1] | (1) Retrospectively adjusted as described in Note 2. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 112,526 | $ 92,610 | $ 94,897 | $ 102,010 | $ 97,251 | $ 88,389 | $ 83,479 | $ 89,756 | $ 402,043 | $ 358,875 | $ 332,545 |
Operating Income (Loss) | 54,549 | 38,924 | 47,111 | 54,513 | 50,952 | 43,617 | 39,745 | 43,143 | 195,097 | 177,457 | 153,007 |
Income before Income Taxes | 42,995 | 28,464 | 39,569 | 46,847 | 43,236 | 35,956 | 31,394 | 35,268 | 157,875 | 145,854 | 112,301 |
Net income | 42,919 | 28,404 | 39,516 | 46,751 | 43,113 | 35,888 | 31,457 | 35,168 | 157,590 | 145,626 | 112,066 |
Net income attributable to Holly Energy Partners | $ 41,361 | $ 34,785 | $ 39,120 | $ 42,975 | $ 40,519 | $ 34,485 | $ 30,401 | $ 31,803 | $ 158,241 | $ 137,208 | $ 105,525 |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 0.40 | $ 0.33 | $ 0.45 | $ 0.52 | $ 0.49 | $ 0.40 | $ 0.34 | $ 0.37 | $ 1.69 | $ 1.60 | $ 1.20 |
Distributions per Limited Partners Unit | $ 0.6075 | $ 0.5950 | $ 0.5850 | $ 0.5750 | $ 0.5650 | $ 0.5550 | $ 0.5450 | $ 0.5375 | $ 2.3625 | $ 2.2025 | $ 2.0750 |
Supplemental Guarantor _ Non-62
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidated Balance Sheet (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current assets: | |||||
Cash and cash equivalents | $ 3,657,000 | $ 15,013,000 | $ 2,830,000 | $ 6,352,000 | |
Accounts receivable | 50,408,000 | 41,075,000 | |||
Prepaid and other current assets | 2,888,000 | 5,054,000 | |||
Total current assets | 56,953,000 | 61,142,000 | |||
Properties and equipment, net | 1,328,395,000 | 1,293,060,000 | [1] | ||
Investments in subsidiaries | 0 | 0 | |||
Transportation agreements, net | 66,856,000 | 73,805,000 | |||
Goodwill | 256,498,000 | 256,498,000 | |||
Equity Method Investments | 165,609,000 | 79,438,000 | |||
Other assets | 9,926,000 | 13,703,000 | |||
Total assets | 1,884,237,000 | 1,777,646,000 | [1] | ||
Current liabilities: | |||||
Accounts payable | 26,942,000 | 22,583,000 | [1] | ||
Accrued interest | 18,069,000 | 6,752,000 | |||
Deferred revenue | 11,102,000 | 12,016,000 | |||
Accrued property taxes | 5,397,000 | 3,764,000 | |||
Other current liabilities | 3,225,000 | 3,809,000 | |||
Total current liabilities | 64,735,000 | 48,924,000 | [1] | ||
Long-term debt | 1,243,912,000 | 1,008,752,000 | |||
Other long-term liabilities | 16,445,000 | 20,744,000 | |||
Deferred Revenue | 47,035,000 | 39,063,000 | |||
Class B unit | 40,319,000 | 33,941,000 | |||
Equity - partners | 378,234,000 | 531,793,000 | [1] | ||
Equity - noncontrolling interest | 93,557,000 | 94,429,000 | |||
Total liabilities and equity | 1,884,237,000 | 1,777,646,000 | [1] | ||
Parent [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 2,000 | 2,000 | 2,000 | 2,000 | |
Accounts receivable | 0 | 0 | |||
Prepaid and other current assets | 11,000 | 174,000 | |||
Total current assets | 13,000 | 176,000 | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | 1,086,008,000 | 834,444,000 | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 725,000 | 642,000 | |||
Total assets | 1,086,746,000 | 835,262,000 | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Accrued interest | 17,300,000 | 6,500,000 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 14,000 | 7,000 | |||
Total current liabilities | 17,314,000 | 6,507,000 | |||
Long-term debt | 690,912,000 | 296,752,000 | |||
Other long-term liabilities | 286,000 | 210,000 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | 378,234,000 | 531,793,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 1,086,746,000 | 835,262,000 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 301,000 | 5,452,000 | 2,828,000 | 1,447,000 | |
Accounts receivable | 45,056,000 | 35,558,000 | |||
Prepaid and other current assets | 2,633,000 | 3,634,000 | |||
Total current assets | 47,990,000 | 44,644,000 | |||
Properties and equipment, net | 957,045,000 | 921,217,000 | |||
Investments in subsidiaries | 280,671,000 | 283,287,000 | |||
Transportation agreements, net | 66,856,000 | 73,805,000 | |||
Goodwill | 256,498,000 | 256,498,000 | |||
Equity Method Investments | 165,609,000 | 79,438,000 | |||
Other assets | 9,201,000 | 13,061,000 | |||
Total assets | 1,783,870,000 | 1,671,950,000 | |||
Current liabilities: | |||||
Accounts payable | 24,245,000 | 19,448,000 | |||
Accrued interest | 769,000 | 252,000 | |||
Deferred revenue | 8,797,000 | 6,010,000 | |||
Accrued property taxes | 4,514,000 | 2,627,000 | |||
Other current liabilities | 3,208,000 | 3,802,000 | |||
Total current liabilities | 41,533,000 | 32,139,000 | |||
Long-term debt | 553,000,000 | 712,000,000 | |||
Other long-term liabilities | 15,975,000 | 20,363,000 | |||
Deferred Revenue | 47,035,000 | 39,063,000 | |||
Class B unit | 40,319,000 | 33,941,000 | |||
Equity - partners | 1,086,008,000 | 834,444,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 1,783,870,000 | 1,671,950,000 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 3,354,000 | 9,559,000 | 0 | 4,903,000 | |
Accounts receivable | 5,554,000 | 5,715,000 | |||
Prepaid and other current assets | 244,000 | 1,246,000 | |||
Total current assets | 9,152,000 | 16,520,000 | |||
Properties and equipment, net | 371,350,000 | 371,843,000 | |||
Investments in subsidiaries | 0 | 0 | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | 380,502,000 | 388,363,000 | |||
Current liabilities: | |||||
Accounts payable | 2,899,000 | 3,333,000 | |||
Accrued interest | 0 | 0 | |||
Deferred revenue | 2,305,000 | 6,006,000 | |||
Accrued property taxes | 883,000 | 1,137,000 | |||
Other current liabilities | 3,000 | 0 | |||
Total current liabilities | 6,090,000 | 10,476,000 | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 184,000 | 171,000 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | 280,671,000 | 283,287,000 | |||
Equity - noncontrolling interest | 93,557,000 | 94,429,000 | |||
Total liabilities and equity | 380,502,000 | 388,363,000 | |||
Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Accounts receivable | (202,000) | (198,000) | |||
Prepaid and other current assets | 0 | 0 | |||
Total current assets | (202,000) | (198,000) | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | (1,366,679,000) | (1,117,731,000) | |||
Transportation agreements, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | (1,366,881,000) | (1,117,929,000) | |||
Current liabilities: | |||||
Accounts payable | (202,000) | (198,000) | |||
Accrued interest | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (202,000) | (198,000) | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | (1,366,679,000) | (1,117,731,000) | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | $ (1,366,881,000) | $ (1,117,929,000) | |||
[1] | (1) Retrospectively adjusted as described in Note 2. |
Supplemental Guarantor _ Non-63
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues [Abstract] | |||||||||||
Affiliates | $ 333,116 | $ 292,221 | $ 275,196 | ||||||||
Third parties | 68,927 | 66,654 | 57,349 | ||||||||
Total revenues | $ 112,526 | $ 92,610 | $ 94,897 | $ 102,010 | $ 97,251 | $ 88,389 | $ 83,479 | $ 89,756 | 402,043 | 358,875 | 332,545 |
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 123,986 | 105,556 | 106,185 | ||||||||
Depreciation and amortization | 70,428 | 63,306 | 62,529 | ||||||||
General and administrative | 12,532 | 12,556 | 10,824 | ||||||||
Total operating costs and expenses | 206,946 | 181,418 | 179,538 | ||||||||
Operating income (loss) | 54,549 | 38,924 | 47,111 | 54,513 | 50,952 | 43,617 | 39,745 | 43,143 | 195,097 | 177,457 | 153,007 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings of equity method investments | 14,213 | 4,803 | 2,987 | ||||||||
Interest Income | 440 | 526 | 3 | ||||||||
Interest expense | (52,552) | (37,418) | (36,101) | ||||||||
Loss on early extinguishment of debt | 0 | 0 | (7,677) | ||||||||
Gain on sale of assets and other | 677 | 486 | 82 | ||||||||
Total other income (expense) | (37,222) | (31,603) | (40,706) | ||||||||
Income before Income Taxes | 42,995 | 28,464 | 39,569 | 46,847 | 43,236 | 35,956 | 31,394 | 35,268 | 157,875 | 145,854 | 112,301 |
State income tax expense | (285) | (228) | (235) | ||||||||
Net income | 157,590 | 145,626 | 112,066 | ||||||||
Allocation of net loss attributable to predecessor | 10,657 | 2,702 | 1,747 | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | (10,006) | (11,120) | (8,288) | ||||||||
Net income attributable to Holly Energy Partners | $ 41,361 | $ 34,785 | $ 39,120 | $ 42,975 | $ 40,519 | $ 34,485 | $ 30,401 | $ 31,803 | 158,241 | 137,208 | 105,525 |
Other comprehensive income (loss) | (99) | 236 | 98 | ||||||||
Comprehensive income attributable to the Partnership | 158,142 | 137,444 | 105,623 | ||||||||
SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 14,213 | 4,803 | 2,987 | ||||||||
Parent [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 0 | 0 | 0 | ||||||||
Third parties | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 3,804 | 3,616 | 2,658 | ||||||||
Total operating costs and expenses | 3,804 | 3,616 | 2,658 | ||||||||
Operating income (loss) | (3,804) | (3,616) | (2,658) | ||||||||
Equity in earnings of subsidiaries | 193,432 | 161,097 | 138,691 | ||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | (31,387) | (20,273) | (22,831) | ||||||||
Loss on early extinguishment of debt | (7,677) | ||||||||||
Gain on sale of assets and other | 0 | 0 | 0 | ||||||||
Total other income (expense) | 162,045 | 140,824 | 108,183 | ||||||||
Income before Income Taxes | 158,241 | 137,208 | 105,525 | ||||||||
State income tax expense | 0 | 0 | 0 | ||||||||
Net income | 158,241 | 137,208 | 105,525 | ||||||||
Allocation of net loss attributable to predecessor | 0 | 0 | |||||||||
Allocation of net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Holly Energy Partners | 158,241 | 137,208 | 105,525 | ||||||||
Other comprehensive income (loss) | (99) | 236 | 98 | ||||||||
Comprehensive income attributable to the Partnership | 158,142 | 137,444 | 105,623 | ||||||||
Parent [Member] | SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 0 | 0 | 0 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 307,049 | 269,277 | 254,364 | ||||||||
Third parties | 47,326 | 47,189 | 45,711 | ||||||||
Total revenues | 354,375 | 316,466 | 300,075 | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 111,181 | 94,087 | 94,766 | ||||||||
Depreciation and amortization | 55,083 | 48,302 | 47,955 | ||||||||
General and administrative | 8,728 | 8,940 | 8,166 | ||||||||
Total operating costs and expenses | 174,992 | 151,329 | 150,887 | ||||||||
Operating income (loss) | 179,383 | 165,137 | 149,188 | ||||||||
Equity in earnings of subsidiaries | 14,634 | 11,915 | 4,858 | ||||||||
Interest Income | 421 | 526 | 3 | ||||||||
Interest expense | (21,165) | (17,145) | (13,270) | ||||||||
Gain on sale of assets and other | 702 | 535 | 82 | ||||||||
Total other income (expense) | 8,805 | 634 | (5,340) | ||||||||
Income before Income Taxes | 188,188 | 165,771 | 143,848 | ||||||||
State income tax expense | (285) | (228) | (235) | ||||||||
Net income | 187,903 | 165,543 | 143,613 | ||||||||
Allocation of net loss attributable to predecessor | 10,657 | 2,702 | 1,747 | ||||||||
Allocation of net income (loss) attributable to noncontrolling interest | (5,128) | (7,148) | (6,669) | ||||||||
Net income attributable to Holly Energy Partners | 193,432 | 161,097 | 138,691 | ||||||||
Other comprehensive income (loss) | (99) | 236 | 98 | ||||||||
Comprehensive income attributable to the Partnership | 193,333 | 161,333 | 138,789 | ||||||||
Guarantor Subsidiaries [Member] | SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 14,213 | 4,803 | 2,987 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 26,067 | 22,944 | 22,073 | ||||||||
Third parties | 21,601 | 19,465 | 11,638 | ||||||||
Total revenues | 47,668 | 42,409 | 33,711 | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 12,805 | 11,469 | 12,660 | ||||||||
Depreciation and amortization | 15,345 | 15,004 | 14,574 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Total operating costs and expenses | 28,150 | 26,473 | 27,234 | ||||||||
Operating income (loss) | 19,518 | 15,936 | 6,477 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Interest Income | 19 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain on sale of assets and other | (25) | (49) | 0 | ||||||||
Total other income (expense) | (6) | (49) | 0 | ||||||||
Income before Income Taxes | 19,512 | 15,887 | 6,477 | ||||||||
State income tax expense | 0 | 0 | 0 | ||||||||
Net income | 19,512 | 15,887 | 6,477 | ||||||||
Allocation of net loss attributable to predecessor | 0 | 0 | |||||||||
Allocation of net income (loss) attributable to noncontrolling interest | (4,878) | (3,972) | (1,619) | ||||||||
Net income attributable to Holly Energy Partners | 14,634 | 11,915 | 4,858 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to the Partnership | 14,634 | 11,915 | 4,858 | ||||||||
Non-Guarantor Subsidiaries [Member] | Equity Method Investee [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | 0 | 0 | 0 | ||||||||
Eliminations [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Affiliates | 0 | 0 | (1,241) | ||||||||
Third parties | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | (1,241) | ||||||||
Operating costs and expenses [Abstract] | |||||||||||
Operations (exclusive of depreciation and amortization) | 0 | 0 | (1,241) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Total operating costs and expenses | 0 | 0 | (1,241) | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (208,066) | (173,012) | (143,549) | ||||||||
Interest Income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain on sale of assets and other | 0 | 0 | 0 | ||||||||
Total other income (expense) | (208,066) | (173,012) | (143,549) | ||||||||
Income before Income Taxes | (208,066) | (173,012) | (143,549) | ||||||||
State income tax expense | 0 | 0 | 0 | ||||||||
Net income | (208,066) | (173,012) | (143,549) | ||||||||
Allocation of net loss attributable to predecessor | 0 | 0 | |||||||||
Allocation of net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income attributable to Holly Energy Partners | (208,066) | (173,012) | (143,549) | ||||||||
Other comprehensive income (loss) | 99 | (236) | (98) | ||||||||
Comprehensive income attributable to the Partnership | (207,967) | (173,248) | (143,647) | ||||||||
Eliminations [Member] | SLC Pipeline [Member] | |||||||||||
Operating costs and expenses [Abstract] | |||||||||||
Equity in earnings of equity method investments | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor _ Non-64
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net cash provided by operating activities | $ 242,748 | $ 230,746 | $ 185,256 | ||||
Cash flows from investing activities | |||||||
Payments to Acquire Property, Plant, and Equipment | 59,704 | 67,016 | 109,693 | ||||
Payments to Acquire Businesses, Gross | 44,119 | 126,105 | [1] | 88,993 | [1] | ||
Payments to Acquire Equity Method Investments | 42,627 | 0 | 0 | ||||
Purchase of investment in Frontier Pipeline | 0 | (55,032) | 0 | ||||
Proceeds from Sale of Property, Plant, and Equipment | 427 | 1,279 | 0 | ||||
Distributions in Excess of Equity in Earnings of Equity Investments | 2,993 | 194 | 263 | ||||
Distributions from UNEV | 0 | 0 | 0 | ||||
Net cash used for investing activities | (143,030) | (246,680) | [1] | (198,423) | [1] | ||
Cash flows from financing activities | |||||||
Net Borrowings under Credit Agreement | (159,000) | 141,000 | 208,000 | ||||
Net Intercompany Financing Activities | 0 | 0 | 0 | ||||
Proceeds from issuance of Senior Notes | 394,000 | 0 | 0 | ||||
Proceeds from Issuance of common units | 125,870 | 0 | 0 | ||||
Distributions to HEP unitholders | (192,037) | (169,063) | (154,670) | ||||
Contributions from HFC for acquisitions | [1] | 128,476 | 120,111 | ||||
Contributions (distributions) from noncontrolling interests | (5,750) | (4,625) | 4,025 | ||||
Distributions to HFC for acquisitions | (62,000) | ||||||
Distribution to HFC for acquisitions | (317,500) | (62,000) | 0 | ||||
Contribution from general partner | $ 2,100 | 2,577 | 128,476 | 120,111 | |||
Distributions to HFC for Osage acquisition | (1,245) | 0 | 0 | ||||
Redemption of senior notes | 0 | 0 | (156,188) | ||||
Purchase of units for incentive grants | (3,521) | (3,555) | (3,577) | ||||
Deferred financing costs | (3,995) | (962) | (9) | ||||
Other | (1,735) | (1,154) | 3 | ||||
Net cash used by financing activities | (111,074) | 28,117 | [1] | 9,645 | [1] | ||
Increase (decrease) for the year | (11,356) | 12,183 | (3,522) | ||||
Beginning of period | 15,013 | 2,830 | 6,352 | ||||
End of period | 3,657 | 3,657 | 15,013 | 2,830 | |||
Parent [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net cash provided by operating activities | (20,441) | (19,490) | (25,339) | ||||
Cash flows from investing activities | |||||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | 0 | ||||
Payments to Acquire Businesses, Gross | 0 | 0 | [1] | 0 | [1] | ||
Payments to Acquire Equity Method Investments | 0 | ||||||
Purchase of investment in Frontier Pipeline | 0 | ||||||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | |||||
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 | ||||
Distributions from UNEV | 0 | 0 | 0 | ||||
Net cash used for investing activities | 0 | 0 | 0 | ||||
Cash flows from financing activities | |||||||
Net Borrowings under Credit Agreement | 0 | 0 | 0 | ||||
Net Intercompany Financing Activities | (302,600) | 192,108 | 339,771 | ||||
Proceeds from issuance of Senior Notes | 394,000 | ||||||
Proceeds from Issuance of common units | 125,870 | ||||||
Distributions to HEP unitholders | (192,037) | (169,063) | (154,670) | ||||
Contributions from HFC for acquisitions | [1] | 0 | 0 | ||||
Contributions (distributions) from noncontrolling interests | 0 | 0 | 0 | ||||
Distributions to HFC for acquisitions | 0 | ||||||
Distribution to HFC for acquisitions | (30,378) | ||||||
Contribution from general partner | 2,577 | ||||||
Distributions to HFC for Osage acquisition | 0 | ||||||
Redemption of senior notes | 156,188 | ||||||
Purchase of units for incentive grants | (3,521) | (3,555) | (3,577) | ||||
Deferred financing costs | (910) | 0 | 0 | ||||
Other | (450) | 0 | 3 | ||||
Net cash used by financing activities | 20,441 | 19,490 | 25,339 | ||||
Increase (decrease) for the year | 0 | 0 | 0 | ||||
Beginning of period | 2 | 2 | 2 | ||||
End of period | 2 | 2 | 2 | 2 | |||
Guarantor Subsidiaries [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net cash provided by operating activities | 245,771 | 232,650 | 191,889 | ||||
Cash flows from investing activities | |||||||
Payments to Acquire Property, Plant, and Equipment | 44,447 | 65,574 | 101,492 | ||||
Payments to Acquire Businesses, Gross | 44,119 | 126,105 | [1] | 88,993 | [1] | ||
Payments to Acquire Equity Method Investments | 42,627 | ||||||
Purchase of investment in Frontier Pipeline | (55,032) | ||||||
Proceeds from Sale of Property, Plant, and Equipment | 427 | 1,279 | |||||
Distributions in Excess of Equity in Earnings of Equity Investments | 2,993 | 194 | 263 | ||||
Distributions from UNEV | 2,616 | 1,960 | 11,383 | ||||
Net cash used for investing activities | (125,157) | (243,278) | (178,839) | ||||
Cash flows from financing activities | |||||||
Net Borrowings under Credit Agreement | (159,000) | 141,000 | 208,000 | ||||
Net Intercompany Financing Activities | 302,600 | (192,108) | (339,771) | ||||
Proceeds from issuance of Senior Notes | 0 | ||||||
Proceeds from Issuance of common units | 0 | ||||||
Distributions to HEP unitholders | 0 | 0 | 0 | ||||
Contributions from HFC for acquisitions | [1] | 128,476 | 120,111 | ||||
Contributions (distributions) from noncontrolling interests | 0 | 0 | 0 | ||||
Distributions to HFC for acquisitions | (62,000) | ||||||
Distribution to HFC for acquisitions | (287,122) | ||||||
Contribution from general partner | 0 | ||||||
Distributions to HFC for Osage acquisition | (1,245) | ||||||
Redemption of senior notes | 0 | ||||||
Purchase of units for incentive grants | 0 | 0 | 0 | ||||
Deferred financing costs | (3,085) | (962) | (9) | ||||
Other | (1,285) | (1,154) | 0 | ||||
Net cash used by financing activities | (125,765) | 13,252 | (11,669) | ||||
Increase (decrease) for the year | (5,151) | 2,624 | 1,381 | ||||
Beginning of period | 5,452 | 2,828 | 1,447 | ||||
End of period | 301 | 301 | 5,452 | 2,828 | |||
Non-Guarantor Subsidiaries [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net cash provided by operating activities | 32,052 | 29,501 | 19,398 | ||||
Cash flows from investing activities | |||||||
Payments to Acquire Property, Plant, and Equipment | 15,257 | 1,442 | 8,201 | ||||
Payments to Acquire Businesses, Gross | 0 | 0 | [1] | 0 | [1] | ||
Payments to Acquire Equity Method Investments | 0 | ||||||
Purchase of investment in Frontier Pipeline | 0 | ||||||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | |||||
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 | ||||
Distributions from UNEV | 0 | 0 | 0 | ||||
Net cash used for investing activities | (15,257) | (1,442) | (8,201) | ||||
Cash flows from financing activities | |||||||
Net Borrowings under Credit Agreement | 0 | 0 | 0 | ||||
Net Intercompany Financing Activities | 0 | 0 | 0 | ||||
Proceeds from issuance of Senior Notes | 0 | ||||||
Proceeds from Issuance of common units | 0 | ||||||
Distributions to HEP unitholders | 0 | 0 | 0 | ||||
Contributions from HFC for acquisitions | [1] | 0 | 0 | ||||
Contributions (distributions) from noncontrolling interests | (23,000) | (18,500) | (16,100) | ||||
Distributions to HFC for acquisitions | 0 | ||||||
Distribution to HFC for acquisitions | 0 | ||||||
Contribution from general partner | 0 | ||||||
Distributions to HFC for Osage acquisition | 0 | ||||||
Redemption of senior notes | 0 | ||||||
Purchase of units for incentive grants | 0 | 0 | 0 | ||||
Deferred financing costs | 0 | 0 | 0 | ||||
Other | 0 | 0 | 0 | ||||
Net cash used by financing activities | (23,000) | (18,500) | (16,100) | ||||
Increase (decrease) for the year | (6,205) | 9,559 | (4,903) | ||||
Beginning of period | 9,559 | 0 | 4,903 | ||||
End of period | 3,354 | 3,354 | 9,559 | 0 | |||
Woods Cross [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net cash provided by operating activities | (1,837) | (705) | |||||
Cash flows from investing activities | |||||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | |||||
Net cash used for investing activities | (98,092) | (86,768) | |||||
Cash flows from financing activities | |||||||
Contributions from HFC for acquisitions | 51,262 | 128,476 | [1] | 120,111 | [1] | ||
Contribution from general partner | 51,262 | ||||||
Net cash used by financing activities | 99,929 | 87,473 | |||||
Woods Cross [Member] | Parent [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | (3,397) | ||||||
Woods Cross [Member] | Guarantor Subsidiaries [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | 54,659 | ||||||
Woods Cross [Member] | Non-Guarantor Subsidiaries [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | 0 | ||||||
Osage Pipeline [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | 0 | ||||||
Osage Pipeline [Member] | Parent [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | 31,287 | ||||||
Osage Pipeline [Member] | Guarantor Subsidiaries [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | (31,287) | ||||||
Osage Pipeline [Member] | Non-Guarantor Subsidiaries [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | 0 | ||||||
Eliminations [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Net cash provided by operating activities | (14,634) | (11,915) | (692) | ||||
Cash flows from investing activities | |||||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | 0 | ||||
Payments to Acquire Businesses, Gross | 0 | 0 | [1] | 0 | [1] | ||
Payments to Acquire Equity Method Investments | 0 | ||||||
Purchase of investment in Frontier Pipeline | 0 | ||||||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | |||||
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 | ||||
Distributions from UNEV | (2,616) | (1,960) | (11,383) | ||||
Net cash used for investing activities | (2,616) | (1,960) | (11,383) | ||||
Cash flows from financing activities | |||||||
Net Borrowings under Credit Agreement | 0 | 0 | 0 | ||||
Net Intercompany Financing Activities | 0 | 0 | 0 | ||||
Proceeds from issuance of Senior Notes | 0 | ||||||
Proceeds from Issuance of common units | 0 | ||||||
Distributions to HEP unitholders | 0 | 0 | 0 | ||||
Contributions from HFC for acquisitions | [1] | 0 | 0 | ||||
Contributions (distributions) from noncontrolling interests | 17,250 | 13,875 | 12,075 | ||||
Distributions to HFC for acquisitions | 0 | ||||||
Distribution to HFC for acquisitions | 0 | ||||||
Contribution from general partner | 0 | ||||||
Distributions to HFC for Osage acquisition | 0 | ||||||
Redemption of senior notes | 0 | ||||||
Purchase of units for incentive grants | 0 | 0 | 0 | ||||
Deferred financing costs | 0 | 0 | 0 | ||||
Other | 0 | 0 | 0 | ||||
Net cash used by financing activities | 17,250 | 13,875 | 12,075 | ||||
Increase (decrease) for the year | 0 | 0 | 0 | ||||
Beginning of period | 0 | 0 | 0 | ||||
End of period | $ 0 | 0 | $ 0 | $ 0 | |||
Eliminations [Member] | Woods Cross [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | 0 | ||||||
Eliminations [Member] | Osage Pipeline [Member] | |||||||
Cash flows from financing activities | |||||||
Contribution from general partner | $ 0 | ||||||
[1] | 1) Retrospectively adjusted as described in Note 2. |