Document Entity Information
Document Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Smaller Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 105,440,201 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 3,045,000 | $ 7,776,000 |
Accounts receivable: | ||
Trade | 12,332,000 | 12,803,000 |
Affiliates | 46,786,000 | 51,501,000 |
Total accounts receivable | 59,118,000 | 64,304,000 |
Prepaid and other current assets | 4,311,000 | 2,311,000 |
Total current assets | 66,474,000 | 74,391,000 |
Properties and equipment, net | 1,538,655,000 | 1,569,471,000 |
Intangible assets, net | 115,329,000 | 129,463,000 |
Goodwill | 270,336,000 | 266,716,000 |
Equity Method Investments | 83,840,000 | 85,279,000 |
Other assets | 27,906,000 | 28,794,000 |
Total assets | 2,102,540,000 | 2,154,114,000 |
Accounts payable: | ||
Trade | 16,435,000 | 14,547,000 |
Affiliates | 14,222,000 | 7,725,000 |
Total accounts payable | 30,657,000 | 22,272,000 |
Accrued interest | 13,302,000 | 13,256,000 |
Deferred revenue | 8,697,000 | 9,598,000 |
Accrued property taxes | 1,779,000 | 4,652,000 |
Other current liabilities | 3,462,000 | 5,707,000 |
Total current liabilities | 57,897,000 | 55,485,000 |
Long-term debt | 1,418,900,000 | 1,507,308,000 |
Other long-term liabilities | 15,307,000 | 15,843,000 |
Deferred revenue | 48,714,000 | 47,272,000 |
Class B unit | 46,161,000 | 43,141,000 |
Partners’ equity: | ||
Common unitholders (105,440,201 and 101,568,955 units issued and outstanding at December 31, 2018 and 2017, respectively) | 427,435,000 | 393,959,000 |
Total partners’ equity | 427,435,000 | 393,959,000 |
Noncontrolling interest | 88,126,000 | 91,106,000 |
Total Equity | 515,561,000 | 485,065,000 |
Total liabilities and equity | $ 2,102,540,000 | $ 2,154,114,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Partners' Equity: | ||
Common units issued | 105,440,201 | 101,568,955 |
Common units outstanding | 105,440,201 | 101,568,955 |
General partner interest | 2.00% | 2.00% |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Revenues | $ 506,220 | $ 454,362 | $ 402,043 |
Operating costs and expenses: | |||
Operations (exclusive of depreciation and amortization) | 146,430 | 137,605 | 123,986 |
Depreciation and amortization | 98,492 | 79,278 | 70,428 |
General and administrative | 11,040 | 14,323 | 12,532 |
Total operating costs and expenses | 255,962 | 231,206 | 206,946 |
Operating income | 250,258 | 223,156 | 195,097 |
Other income (expense): | |||
Equity in earnings of equity method investments | 5,825 | 12,510 | 14,213 |
Interest expense | (71,899) | (58,448) | (52,552) |
Interest Income | 2,108 | 491 | 440 |
Loss on early extinguishment of debt | 0 | (12,225) | 0 |
Remeasurement gain on preexisting equity interests | 0 | 36,254 | 0 |
Gain on sale of assets and other | 121 | 422 | 677 |
Total other income (expense) | (63,845) | (20,996) | (37,222) |
Income before Income Taxes | 186,413 | 202,160 | 157,875 |
State income tax expense | (26) | (249) | (285) |
Net Income | 186,387 | 201,911 | 157,590 |
Allocation of net loss attributable to Predecessor | 0 | 0 | 10,657 |
Allocation of net income attributable to noncontrolling interest | (7,540) | (6,871) | (10,006) |
Net income attributable to the partners | 178,847 | 195,040 | 158,241 |
General partner interest in net income attributable to the Partnership, including incentive distributions | 0 | (35,047) | (57,173) |
Limited partners’ interest in net income | $ 178,847 | $ 159,993 | $ 101,068 |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 1.70 | $ 2.28 | $ 1.69 |
Weighted average limited partners’ units outstanding | 105,042 | 70,291 | 59,872 |
Affiliated Entity [Member] | |||
Revenues: | |||
Revenues | $ 397,808 | $ 377,136 | $ 333,116 |
Third-Party Customer [Member] | |||
Revenues: | |||
Revenues | $ 108,412 | $ 77,226 | $ 68,927 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 186,387 | $ 201,911 | $ 157,590 |
Change in fair value of cash flow hedging instruments | 0 | 88 | (607) |
Reclassification adjustment to net income on partial settlement of cash flow hedge | 0 | (179) | 508 |
Other comprehensive loss | 0 | (91) | (99) |
Comprehensive income before noncontrolling interest | 186,387 | 201,820 | 157,491 |
Allocation of net loss attributable to Predecessor | 0 | 0 | 10,657 |
Allocation of comprehensive income to noncontrolling interests | (7,540) | (6,871) | (10,006) |
Comprehensive income attributable to the partners | $ 178,847 | $ 194,949 | $ 158,142 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 186,387 | $ 201,911 | $ 157,590 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 98,492 | 79,278 | 70,428 |
Gain on sale of assets | (196) | (319) | (150) |
Remeasurement gain on preexisting equity interests | 0 | (36,254) | 0 |
Amortization of deferred charges | 3,041 | 3,063 | 3,247 |
Equity-based compensation expense | 3,203 | 2,520 | 3,519 |
Equity in earnings of equity investments, net of distributions | (149) | 1,450 | (2,032) |
Loss on early extinguishment of debt | 0 | 12,225 | 0 |
(Increase) decrease in operating assets: | |||
Accounts receivable – trade | 471 | (38) | 279 |
Accounts receivable – affiliates | 4,715 | (8,939) | (10,080) |
Prepaid and other current assets | (2,000) | 830 | 1,598 |
Increase (decrease) in operating liabilities: | |||
Accounts payable – trade | (329) | (1,975) | (365) |
Accounts payable – affiliates | 6,497 | (8,699) | (16) |
Accrued interest | 46 | (4,813) | 11,317 |
Deferred revenue | 1,862 | (1,267) | 7,058 |
Accrued property taxes | (2,873) | (2,179) | 1,633 |
Other current liabilities | (2,081) | 2,091 | (553) |
Other, net | (1,873) | (398) | 75 |
Net cash provided by operating activities | 295,213 | 238,487 | 243,548 |
Cash flows from investing activities | |||
Additions to properties, and equipment | (47,300) | (44,810) | (59,704) |
Acquisition of tanks and refinery processing units | (5,051) | 0 | (44,119) |
Purchase of investment in Cheyenne Pipeline | 0 | 0 | (42,627) |
Purchase of investment in Frontier Pipeline | (42,627) | ||
Purchase of controlling interests in SLC Pipeline and Frontier Aspen | (1,790) | (245,446) | 0 |
Proceeds from sale of assets | 210 | 849 | 427 |
Distributions in Excess of Equity in Earnings of Equity Investments | 1,588 | 3,134 | 2,993 |
Net cash used for investing activities | (52,343) | (286,273) | (143,030) |
Cash flows from financing activities | |||
Borrowings under credit agreement | 337,000 | 969,000 | 554,000 |
Repayments of credit agreement borrowings | (426,000) | (510,000) | (713,000) |
Redemption of 6.5% Senior Notes | 0 | (309,750) | 0 |
Proceeds from issuance of 6% Senior Notes | 0 | 101,750 | 394,000 |
Proceeds from issuance of common units | 114,771 | 52,110 | 125,870 |
Contributions from general partner | 882 | 1,072 | 2,577 |
Distributions to HEP unitholders | (264,979) | (234,575) | (192,037) |
Distributions to noncontrolling interest | (7,500) | (6,500) | (5,750) |
Distribution to HFC for acquisitions | 0 | (317,500) | |
Contributions from HFC for acquisitions | 51,262 | ||
Contributions to HFC for El Dorado Operating Tanks | 0 | (103) | 0 |
Distributions to HFC for Osage acquisition | 0 | 0 | (1,245) |
Purchase of units for incentive grants | 0 | 0 | (3,521) |
Units withheld for tax withholding obligations | (568) | (605) | (800) |
Deferred financing costs | (6) | (9,382) | (3,995) |
Other | (1,213) | (1,112) | (1,735) |
Net cash provided by (used) by financing activities | (247,601) | 51,905 | (111,874) |
Cash and cash equivalents | |||
Increase (decrease) for the year | (4,731) | 4,119 | (11,356) |
Beginning of period | 7,776 | 3,657 | 15,013 |
End of period | 3,045 | 7,776 | 3,657 |
Woods Cross [Member] | |||
Cash flows from financing activities | |||
Contributions from HFC for acquisitions | $ 0 | $ 0 | $ 51,262 |
Consolidated Statement of Partn
Consolidated Statement of Partners' Equity - USD ($) $ in Thousands | Total | Common Units | General Partner Interest | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance at Dec. 31, 2015 | $ 626,222 | $ 428,019 | $ 103,584 | $ 190 | $ 94,429 |
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||
Issuance of common units | 125,870 | 125,870 | 0 | ||
Capital contribution | 2,577 | 2,577 | 0 | ||
Distributions to HEP unitholders | (192,037) | (138,779) | (53,258) | ||
Distributions to noncontrolling interests | (5,750) | (5,750) | |||
Contribution from HFC for acquisitions | 82,549 | 82,549 | |||
Distribution To HFC for acquisition | (317,500) | (317,500) | |||
Purchase of Units for Incentive Grants | (3,521) | (3,521) | |||
Amortization of restricted and performance units | 3,519 | 3,519 | |||
Class B unit accretion | (6,378) | (6,250) | (128) | ||
Net income | 157,590 | 102,917 | 49,795 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 10,006 | 4,878 | |||
Other | (1,251) | (800) | (451) | ||
Other comprehensive income (loss) | (99) | (99) | |||
Ending balance at Dec. 31, 2016 | 471,791 | 510,975 | (132,832) | 91 | 93,557 |
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||
Issuance of common units | 52,100 | 52,100 | 0 | ||
Capital contribution | 1,072 | 1,072 | |||
Distributions to HEP unitholders | (234,575) | (181,439) | (53,136) | ||
Distributions to noncontrolling interests | (6,500) | (6,500) | |||
Distribution To HFC for acquisition | (103) | (103) | |||
Amortization of restricted and performance units | 2,520 | 2,520 | |||
Class B unit accretion | (2,822) | (2,780) | (42) | ||
Net income | 201,911 | 162,815 | 35,047 | ||
Equity restructuring transaction | (149,994) | 149,994 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 6,871 | 4,049 | |||
Other | (238) | (238) | 0 | ||
Other comprehensive income (loss) | (91) | (91) | |||
Ending balance at Dec. 31, 2017 | 485,065 | 393,959 | 0 | 0 | 91,106 |
Increase (Decrease) in Partners' Equity [Roll Forward] | |||||
Issuance of common units | 114,771 | 114,771 | |||
Distributions to HEP unitholders | (264,979) | (264,979) | 0 | ||
Distributions to noncontrolling interests | (7,500) | (7,500) | |||
Amortization of restricted and performance units | 3,203 | 3,203 | |||
Class B unit accretion | (3,020) | (3,020) | 0 | ||
Net income | 186,387 | 181,867 | 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 7,540 | 4,520 | |||
Other | 1,634 | 1,634 | 0 | ||
Other comprehensive income (loss) | 0 | ||||
Ending balance at Dec. 31, 2018 | $ 515,561 | $ 427,435 | $ 0 | $ 0 | $ 88,126 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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. As of December 31, 2018 , HollyFrontier Corporation (“HFC”) and its subsidiaries own a 57% limited partner interest and the non-economic general partner interest in HEP. 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. On October 31, 2017, we closed on an equity restructuring transaction with HEP Logistics Holdings, L.P. (“HEP Logistics”), a wholly-owned subsidiary of HFC and the general partner of HEP, pursuant to which the incentive distribution rights ("IDRs") held by HEP Logistics were canceled, and HEP Logistics' 2% general partner interest in HEP was converted into a non-economic general partner interest in HEP. In consideration, we issued 37,250,000 of our common units to HEP Logistics. In addition, HEP Logistics agreed to waive $2.5 million of limited partner cash distributions for each of twelve consecutive quarters beginning with the first quarter the units issued as consideration were eligible to receive distributions. As a result of this transaction, no distributions were made on the general partner interest after October 31, 2017. On January 25, 2018, we entered into a common unit purchase agreement in which certain purchasers agreed to purchase in a private placement 3,700,000 common units representing limited partner interests, at a price of $29.73 per common unit. The private placement closed on February 6, 2018, and we received proceeds of approximately $110 million , which were used to repay indebtedness under our revolving credit facility. 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 Delek US Holdings, Inc.’s (“Delek”) refinery in Big Spring, Texas. Additionally, we own a 75% interest in the UNEV Pipeline, LLC (“UNEV”), a 50% interest in Osage Pipe Line Company, LLC (“Osage”), and a 50% interest in Cheyenne 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 15. Our Pipelines and Terminals segment consists of: • 26 main pipeline segments • Crude gathering networks in Texas and New Mexico • 10 refined product terminals • 1 crude terminal • 31,800 track feet of rail storage located at two facilities • 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. Certain prior period balances have been reclassified for consistency with current year presentation. 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. 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, Delek 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. Intangible Assets Intangible assets include transportation agreements and acquired customer relationship intangible assets. Intangible assets are stated at acquisition date fair value and are being amortized over their useful lives using the straight-line method. 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. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values, including goodwill. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit. In 2018, 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, could result in the recognition of an impairment loss. In 2017, we assessed qualitative factors such as macroeconomic conditions, industry considerations, cost factors, and reporting unit financial performance and determined it was not more likely than not that the fair value of our reporting units were 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, 2018 . Investment in Equity Method Investments We account for our interests in noncontrolling 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, 2018 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investments Osage Pipe Line Company, LLC $ 9,964 $ 40,483 $ (30,519 ) Cheyenne Pipeline LLC 29,358 43,357 (13,999 ) Total $ 39,322 $ 83,840 $ (44,518 ) Balance at December 31, 2017 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investments Osage Pipe Line Company, LLC $ 10,631 $ 42,071 $ (31,440 ) Cheyenne Pipeline LLC 28,706 43,208 (14,502 ) Total $ 39,337 $ 85,279 $ (45,942 ) 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, 2018 and 2017 , we have asset retirement obligations of $8.9 million and $8.6 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 $46.2 million at December 31, 2018 , and $43.1 million at December 31, 2017 . Revenue Recognition Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. As a result, we bifurcate the consideration received between lease and service revenue. The service component is within the scope of Accounting Standards Codification (“ASC”) 606, which largely codified ASU 2014-09. Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter. The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize the service portion of these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Prior to the adoption of ASC 606 on January 1, 2018, billings to customers for their obligations under their quarterly minimum revenue commitments were recorded as deferred revenue liabilities if the customer had the right to receive future services for these billings. The revenue was recognized at the earlier of: • the customer receiving the future services provided by these billings, • the period in which the customer was contractually allowed to receive the services expired, or • our determination that we would not be required to provide services within the allowed period. We determined that we would not be required to provide services within the allowed period when, based on current and projected shipping levels, our pipeline systems would 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, 2018 , 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 $2.3 billion including $356 million for the year ending December 31, 2019, $308 million for the year ending December 31, 2020, $298 million for the year ending December 31, 2021, $271 million for the year ending December 31, 2022 and $236 million for the year ending December 31, 2023. 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 Delek with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Delek in 2005, under which Delek 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 since we had more than one class of participating securities prior to the October 31, 2017 equity restructuring transaction discussed above. Under the two-class method, 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, both of which were applicable prior to the October 31, 2017 equity restructuring transaction discussed above, and other participating securities, by the weighted-average number of common units outstanding during the year and other dilutive securities. Other participating securities and dilutive securities are not significant. Accounting Pronouncement Adopted During the Periods Presented 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 had an effective date of January 1, 2018, and we accounted for the new guidance using the modified retrospective implementation method, whereby a cumulative effect adjustment was recorded to retained earnings as of the date of initial application. In preparing for adoption, we evaluated the terms, conditions and performance obligations under our existing contracts with customers. Furthermore, we implemented policies to comply with this new standard. See above and Note 3 for additional information on our revenue recognition policies. 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 had an effective date of January 1, 2018, and had no effect on our financial condition, results of operations or cash flows. 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 was effective beginning with our 2018 reporting year and had no effect on our financial condition, results of operations or cash flows. Accounting Pronouncements Not Yet Adopted 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 plan to apply practical expedients provided in the standards update that allow us, among other things, not to reassess contracts that commenced prior to the adoption. The primary effect of adopting the new standard will be to record assets and obligations for current operating leases on our consolidated balance sheet. Adoption of the standard is not expected to have a material impact on our results of operations or cash flows. In preparing for adoption, we have identified, reviewed and evaluated contracts containing lease and embedded lease arrangements. Additionally, we have acquired and implemented software and systems to facilitate lease capture and related accounting treatment. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 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 permit HFC access to Magellan’s El Paso terminal. These connections were in service in the fourth quarter of 2017. 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 variable interest entity ("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. Tulsa Tanks On March 31, 2016, we acquired crude oil tanks (the "Tulsa Tanks") located at HFC’s Tulsa refinery from an affiliate of Plains All American pipeline, L. P. ("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. 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 is 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 $103 million in proceeds from a private placement of 3,420,000 common units 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 $57 million as of the acquisition date. As we are a consolidated 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. SLC Pipeline and Frontier Aspen On October 31, 2017, we acquired the remaining 75% interest in SLC Pipeline LLC ("SLC Pipeline") and the remaining 50% interest in Frontier Aspen LLC ("Frontier Aspen") from subsidiaries of Plains, for cash consideration of $250 million . Prior to this acquisition, we held noncontrolling interests of 25% of SLC Pipeline and 50% of Frontier Aspen. As a result of the acquisitions, SLC Pipeline and Frontier Aspen are wholly-owned subsidiaries of HEP. These acquisitions were accounted for as a business combination achieved in stages. Our preexisting equity method investments in SLC Pipeline and Frontier Aspen were remeasured at an acquisition date fair value of $112 million since we now have a controlling interest, and we recognized a gain on the remeasurement in the fourth quarter of 2017 of $36.3 million . The fair value of our preexisting equity method investments in SLC Pipeline and Frontier Aspen was estimated using Level 3 Inputs under the income method for these entities, adjusted for lack of control and marketability. The total consideration of $363.8 million , consisting of cash consideration of $250 million , working capital adjustments of $1.8 million and the fair value of our preexisting equity method investments in SLC Pipeline and Frontier Aspen of $112 million , was allocated to the acquisition date fair value of assets and liabilities acquired as of the October 31, 2017 acquisition date, with the excess purchase price recorded as goodwill. The following summarizes the final estimated value of assets and liabilities acquired: (in thousands) Cash and cash equivalents $ 4,609 Accounts receivable 5,164 Prepaid and other current assets 8 Properties and equipment 275,061 Intangible assets 70,182 Goodwill 13,845 Accounts payable (3,598 ) Accrued property taxes (1,438 ) Net assets acquired $ 363,833 During 2018, goodwill was increased by $3.6 million in connection with our finalization of preliminary estimates recorded in 2017 for the purchase price allocation. Our consolidated financial and operating results reflect the SLC Pipeline and Frontier Aspen operations beginning November 1, 2017. Our results of operations for the year ended December 31, 2017 included revenues of $7.9 million and net income of $4.1 million , excluding the $36.3 million remeasurement gain as of the acquisition date discussed above, for the period from November 1, 2017 through December 31, 2017 . SLC Pipeline is the owner of a 95-mile crude pipeline that transports crude oil into the Salt Lake City area from the Utah terminal of the Frontier Pipeline (defined below) and from Wahsatch Station. Frontier Aspen is the owner of a 289-mile crude pipeline from Casper, Wyoming to Frontier Station, Utah (the "Frontier Pipeline") that supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection to the SLC Pipeline. The following unaudited pro forma financial information combines the historical operations of HEP, SLC Pipeline and Frontier Aspen as if the acquisition had occurred on January 1, 2016: Years Ended December 31, 2017 2016 (in thousands) Revenues $ 489,382 $ 445,017 Net income attributable to the partners $ 161,900 $ 162,862 The unaudited pro forma net income attributable to the partners reflects the following adjustments: (1) To retrospectively reflect depreciation and amortization of intangible assets based on the preliminary fair value of the assets as if that fair value had been reflected January 1, 2016; (2) To eliminate HEP's equity income previously recorded on its equity method investments in SLC Pipeline and Frontier Aspen; and (3) To eliminate the remeasurement gain on preexisting equity interests in SLC Pipeline and Frontier Aspen. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Effective January 1, 2018, as described in Note 1, we adopted ASC 606, using the modified retrospective method, whereby the cumulative effect of applying the new standard was recorded as an adjustment to the opening balance of retained earnings as well as the carrying amounts of assets and liabilities as of January 1, 2018, which had no impact on our cash flows. The following table reflects the cumulative effect of adoption as of January 1, 2018: Prior to Adoption Increase (Decrease) As Adjusted (In thousands) Deferred revenue $ 9,598 $ (1,320 ) $ 8,278 Partners’ equity: Common unitholders $ 393,959 $ 1,320 $ 395,279 Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. Therefore, we bifurcate the consideration received between lease and service revenue. The service component is within the scope of ASC 606, which largely codified ASU 2014-09. Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter. The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize the service portion of these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. During the twelve months ended December 31, 2018 , 2017 and 2016 , we recognized $17.6 million , $11.9 million and $10.5 million , respectively, of these deficiency payments in revenue, of which $3.3 million , $5.6 million and $7.8 million , respectively, related to deficiency payments billed in prior periods. As of December 31, 2018 , deferred revenue reflected in our consolidated balance sheet related to shortfalls billed was $1.8 million . A contract liability exists when an entity is obligated to perform future services to a customer for which the entity has received consideration. Since HEP may be required to perform future services for these deficiency payments received, the deferred revenues on our balance sheet as of December 31, 2018 were considered contract liabilities. A contract asset exists when an entity has a right to consideration in exchange for goods or services transferred to a customer. Our consolidated balance sheet as of December 31, 2018 , included the contract assets and liabilities in the table below. December 31, January 1, (In thousands) Contract assets $ 1,818 $ — Contract liabilities $ (1,821 ) $ (2,713 ) The contract assets and liabilities include both lease and service components. We recognized $2.7 million of revenue that was previously included in contract liability as of January 1, 2018, during the twelve months ended December 31, 2018 . As of December 31, 2018 , we expect to recognize $2.3 billion in revenue related to our unfulfilled performance obligations under the terms of our long-term throughput agreements and operating leases expiring in 2019 through 2036. These agreements provide for changes in the minimum revenue guarantees annually for increases or decreases in the Producer Price Index (“PPI”) or Federal Energy Regulatory Commission (“FERC”) index, with certain contracts having provisions that limit the level of the rate increases or decreases. We expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues): Years Ending December 31, (In millions) 2019 $ 356 2020 308 2021 298 2022 271 2023 236 Thereafter 838 Total $ 2,307 Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 10 to 30 days of the date of invoice. Disaggregated revenues are as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Pipelines $ 283,507 $ 235,040 $ 232,634 Terminals, tanks and loading racks 147,534 142,418 136,365 Refinery processing units 75,179 76,904 33,044 $ 506,220 $ 454,362 $ 402,043 During the year ended December 31, 2018 , lease revenues amounted to $278.6 million , and service revenues amounted to $227.6 million . Both of these revenues were recorded within affiliates and third parties revenues on our consolidated statement of income. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and debt. 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 were as follows: December 31, 2018 December 31, 2017 Financial Instrument Fair Value Input Level Carrying Value Fair Value Carrying Value Fair Value (In thousands) Liabilities: 6.0% Senior Notes Level 2 $ 495,900 $ 488,310 $ 495,308 $ 525,120 Level 2 Financial Instruments Our senior notes 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. See Note 8 for additional information on these instruments. |
Properties and Equipment
Properties and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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 $ 1,571,338 $ 1,541,722 Refinery assets 347,338 347,338 Land and right of way 86,298 86,484 Construction in progress 23,482 12,029 Other 41,250 35,659 2,069,706 2,023,232 Less accumulated depreciation 531,051 453,761 $ 1,538,655 $ 1,569,471 We capitalized $0.3 million and $1.0 million in interest related to construction projects during the years ended December 31, 2018 and 2017 , respectively. Depreciation expense was $83.3 million , $71.1 million , and $62.9 million for the years ended December 31, 2018, 2017 and 2016 , respectively, and includes depreciation of assets acquired under capital leases. Asset abandonment charges of $1.0 million , $0.3 million and $0.6 million for assets permanently removed from service were included in depreciation expense for the years ended December 31, 2018, 2017 and 2016 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets include transportation agreements and customer relationships that represent a portion of the total purchase price of certain assets acquired from Delek in 2005 , from HFC in 2008 prior to HEP becoming a consolidated VIE of HFC, from Plains in 2017, and from other minor acquisitions in 2018. The carrying amounts of our intangible assets are as follows: Useful Life December 31, December 31, (In thousands) Delek transportation agreement 30 years $ 59,933 $ 59,933 HFC transportation agreements 10-15 years 75,131 75,131 Customer relationships 10 years 69,683 69,282 Other 50 50 204,797 204,396 Less accumulated amortization 89,468 74,933 $ 115,329 $ 129,463 Amortization expense was $14.5 million , $7.6 million and $6.9 million for the years ending December 31, 2018 , 2017 and 2016, respectively. We estimate amortization expense to be $14 million for each of the next four years and $9.9 million in 2023. 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, 2018 | |
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 $6.9 million , $5.9 million and $5.7 million for the years ended December 31, 2018, 2017 and 2016 , respectively. These costs include retirement costs of $3.1 million , $2.7 million and $2.6 million for the years ended December 31, 2018, 2017 and 2016 , 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, 2018 , we have two types of incentive-based awards outstanding, which are described below. The compensation cost charged against income was $3.0 million , $2.7 million and $2.7 million for the years ended December 31, 2018, 2017 and 2016 , 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, 2018 , 2,500,000 units were authorized to be granted under our Long-Term Incentive Plan, of which 1,210,341 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 phantom units to selected employees who perform services for us, with awards vesting over a period of one to three years. In the years ending December 31, 2017 and 2016, we granted restricted units to selected employees who performed services for us, which vest over a period of three years. Although full ownership of the units does not transfer to the recipients until the units vest, the recipients have distribution rights on these units from the date of grant, and the recipients of the restricted units have voting rights on the restricted units from the date of grant. The grant date fair value of each restricted or phantom 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 and phantom unit activity and changes during the year ended December 31, 2018 , is presented below: Restricted and Phantom Units Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2018 (nonvested) 119,009 $ 34.77 Granted 93,955 29.30 Vesting and transfer of common units to recipients (72,537 ) 34.20 Forfeited (2,411 ) 34.63 Outstanding at December 31, 2018 (nonvested) 138,016 $ 31.35 The grant date fair values of restricted units that were vested and transferred to recipients during the years ended December 31, 2018, 2017 and 2016 were $2.5 million , $2.0 million and $2.0 million , respectively. As of December 31, 2018 , there was $2.8 million of total unrecognized compensation expense related to unvested restricted and phantom unit grants, which is expected to be recognized over a weighted-average period of 1.6 years. For the years ended December 31, 2017 and 2016 , the grant date price applied to the number of restricted units awarded was $35.59 and $32.16 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 meeting certain criteria over the performance period. Under the terms of our performance unit grants, some awards are subject to the growth in our distributable cash flow per common unit over the performance period while other awards are subject to "financial performance" and "market performance." Financial performance is based on meeting certain earnings before interest, taxes, depreciation and amortization ("EBITDA") targets, while market performance is based on the relative standing of total unitholder return achieved by HEP compared to peer group companies. The number of units ultimately issued under these awards can range from 50% to 150% or 0% to 200% . As of December 31, 2018 , estimated unit payouts for outstanding nonvested performance unit awards ranged between 100% and 150% of the target number of performance units granted. Although common units are not transferred to the recipients until the performance units vest, the recipients have distribution rights with respect to the common units from the date of grant. A summary of performance unit activity and changes for the year ended December 31, 2018 , is presented below: Performance Units Units Outstanding at January 1, 2018 (nonvested) 36,911 Granted 19,120 Vesting and transfer of common units to recipients (4,283 ) Outstanding at December 31, 2018 (nonvested) 51,748 The grant date fair values of performance units vested and transferred to recipients were $0.1 million , $0.1 million and $1.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Based on the weighted average fair value of performance units outstanding at December 31, 2018 , of $1.7 million , there was $0.9 million of total unrecognized compensation expense related to nonvested performance units, which is expected to be recognized over a weighted-average period of 1.7 years. During the year ended December 31, 2018 , we did not purchase any common units in the open market for the issuance and settlement of unit awards under our Long-Term Incentive Plan. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments [Abstract] | |
Debt | Debt Credit Agreement We have a $1.4 billion senior secured revolving credit facility (the “Credit Agreement”) expiring in July 2022 . The Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments and working capital and for general partnership purposes. The Credit Agreement is also available to fund letters of credit up to a $50 million sub-limit, and it contains an accordion feature giving us the ability to increase the size of the facility by up to $300 million with additional lender commitments. Our obligations under the Credit Agreement are collateralized by substantially all of our assets, and indebtedness under the Credit Agreement is guaranteed by our material, wholly-owned subsidiaries. The Credit Agreement requires us to maintain compliance with certain financial covenants consisting of total leverage, senior secured leverage, and interest coverage. It also limits or restricts our ability to engage in certain activities. If, at any time prior to the expiration of the Credit Agreement, HEP obtains two investment grade credit ratings, the Credit Agreement will become unsecured and many of the covenants, limitations, and restrictions will be eliminated. 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 0.50% to 1.50% ) or (b) at a rate equal to LIBOR plus an applicable margin (ranging from 1.50% to 2.50% ). In each case, the applicable margin is based upon the ratio of our funded debt (as defined in the Credit Agreement) to EBITDA (earnings before interest, taxes, depreciation and amortization, as defined in the Credit Agreement). The weighted-average interest rates on our Credit Agreement borrowings for the years ending December 31, 2018 and 2017 , were 4.238% and 3.734% , respectively. We incur a commitment fee on the unused portion of the Credit Agreement at an annual rate ranging from 0.25% to 0.50% based upon the ratio of our funded debt to EBITDA for the four most recently completed fiscal quarters. We may prepay all loans at any time without penalty, except for tranche breakage costs. If an event of default exists under the Credit Agreement, the lenders will be able to accelerate the maturity of all loans outstanding and exercising other rights and remedies. We were in compliance with the covenants as of December 31, 2018 . Senior Notes 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”). On September 22, 2017, we closed a private placement of an additional $100 million in aggregate principal amount of the 6% Senior Notes for a combined aggregate principal amount outstanding of $500 million maturing in 2024. The 6% 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 6% Senior Notes as of December 31, 2018 . At any time when the 6% Senior Notes are rated investment grade by both Moody’s and Standard & Poor’s and no default or event of default exists, we will not be subject to many of the foregoing covenants. Additionally, we have certain redemption rights at varying premiums over face value under the 6% Senior Notes. Indebtedness under the 6% Senior Notes is guaranteed by our wholly-owned subsidiaries. On January 4, 2017, we redeemed the $300 million aggregate principal amount of 6.5% senior notes due in 2020 (the "6.5% Senior Notes") at a redemption cost of $309.8 million , at which time we recognized a $12.2 million early extinguishment loss consisting of a $9.8 million debt redemption premium and unamortized discount and financing costs of $2.4 million . We funded the redemption with borrowings under our Credit Agreement. 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 were 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 $ 923,000 $ 1,012,000 6% Senior Notes Principal 500,000 500,000 Unamortized debt issuance costs (4,100 ) (4,692 ) 495,900 495,308 Total long-term debt $ 1,418,900 $ 1,507,308 Maturities of our long-term debt are as follows: Years Ending December 31, (In thousands) 2019 $ — 2020 — 2021 — 2022 923,000 2023 — Thereafter 500,000 Total $ 1,423,000 Interest Rate Risk Management The two interest rate swaps that hedged our exposure to the cash flow risk caused by the effects of LIBOR changes on $150 million of Credit Agreement advances matured on July 31, 2017. The swaps effectively converted $150 million of our LIBOR based debt to fixed rate debt. Interest Expense and Other Debt Information Interest expense consists of the following components: Years Ended December 31, 2018 2017 2016 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 37,266 $ 28,928 $ 17,621 6% Senior Notes 30,000 25,813 10,811 6.5% Senior Notes — — 19,507 Amortization of discount and deferred debt issuance costs 3,041 3,063 3,246 Commitment fees and other 1,904 1,648 2,069 Total interest incurred 72,211 59,452 53,254 Less capitalized interest 312 1,004 702 Net interest expense $ 71,899 $ 58,448 $ 52,552 Cash paid for interest $ 69,112 $ 62,395 $ 38,530 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 $5.8 million and $5.1 million as of December 31, 2018 and 2017 , respectively, with accumulated depreciation of $4.3 million and $3.3 million as of December 31, 2018 and 2017 , respectively. We include depreciation of capital leases in depreciation and amortization in our consolidated statements of income. At December 31, 2018 , future minimum annual lease payments, including interest, for the capital leases are as follows: Years Ending December 31, (in thousands) 2019 $ 1,069 2020 589 2021 140 Total minimum lease payments 1,798 Less amount representing interest (109 ) Capital lease obligations $ 1,689 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease certain facilities and pipelines under operating leases, most of which contain renewal options. These operating leases have various termination dates through 2035. As of December 31, 2018 , 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) 2019 $ 7,252 2020 7,196 2021 7,147 2022 7,127 2023 7,045 Thereafter 24,619 Total $ 60,386 Rental expense charged to operations was $9.8 million , $9.1 million and $8.5 million for the years ended December 31, 2018, 2017 and 2016 , respectively. As of December 31, 2018, we expect to receive aggregate payments totaling $1.5 million over the life of our noncancelable sublease of office space, expiring in 2026. 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. In addition, we have long-term contractual obligations associated with rights-of-way agreements, which have various termination dates through 2061. The related payments below include only obligations under the remaining non-cancelable terms of these agreements at December 31, 2018 . At December 31, 2018 , these minimum future contractual obligations and other miscellaneous obligations having terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2019 $ 9,360 2020 7,683 2021 7,689 2022 7,069 2023 5,536 Thereafter 223,567 Total $ 260,904 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, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | Significant Customers All revenues are domestic revenues, of which 86% are currently generated from our two largest customers: HFC and Delek. The following table presents the percentage of total revenues generated by each of these customers: Years Ended December 31, 2018 2017 2016 HFC 79 % 83 % 83 % Delek 7 % 8 % 8 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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 Producer Price Index (“PPI”) or Federal Energy Regulatory Commission (“FERC”) index. As of December 31, 2018 , these agreements with HFC require minimum annualized payments to us of $314 million . If HFC fails to meet its minimum volume commitments under the agreements in any quarter, it will be required to pay us the amount of any shortfall in cash by the last day of the month following the end of the quarter. Under certain of these agreements, a shortfall payment may be applied as a credit in the following four quarters after its minimum obligations are met. Under certain provisions of an omnibus agreement we have with HFC (the “Omnibus Agreement”), we pay HFC an annual administrative fee ( $2.5 million in 2018) for the provision by HFC or its affiliates of various general and administrative services to us. This fee does not include the salaries of personnel employed by HFC who perform services for us on behalf of HLS or the cost of their employee benefits, which are charged to us separately by HFC. Also, we reimburse HFC and its affiliates for direct expenses they incur on our behalf. Related party transactions with HFC are as follows: • Revenues received from HFC were $397.8 million , $377.1 million and $333.1 million for the years ended December 31, 2018, 2017 and 2016 , respectively. • HFC charged us general and administrative services under the Omnibus Agreement of $2.5 million for each of the years ended December 31, 2018 , 2017 and 2016 . • We reimbursed HFC for costs of employees supporting our operations of $51.7 million , $46.6 million and $40.9 million for the years ended December 31, 2018, 2017 and 2016 , respectively. • HFC reimbursed us $10.0 million , $7.2 million and $14.0 million for the years ended December 31, 2018, 2017 and 2016 , respectively, for expense and capital projects. • We distributed $146.8 million , in the year ended December 31, 2018 to HFC as regular distributions on its common units and $130.7 million and $105.2 million in the years ended December 31, 2017 and 2016 , respectively, to HFC as regular distributions on its common units and general partner interest, including general partner incentive distributions. • Accounts receivable from HFC were $46.8 million and $51.5 million at December 31, 2018 and 2017 , respectively. • Accounts payable to HFC were $14.2 million and $7.7 million at December 31, 2018 and 2017 , respectively. • Revenues for the years ended December 31, 2018, 2017 and 2016 include $3.1 million , $4.8 million and $6.1 million , respectively, of shortfall payments billed to HFC in 2017 , 2016 and 2015 , respectively. Deferred revenue in the consolidated balance sheets at December 31, 2018 and 2017 , includes $1.7 million and $4.4 million , respectively, relating to certain shortfall billings to HFC. • We received lease payments from HFC for use of our Artesia and Tulsa railyards of $2.0 million , $0.5 million and $0.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. • 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. • On October 31, 2017, we closed on an equity restructuring transaction with HEP Logistics, a wholly-owned subsidiary of HFC and the general partner of HEP, pursuant to which the incentive distribution rights held by HEP Logistics were canceled, and HEP Logistics' 2% general partner interest in HEP was converted into a non-economic general partner interest in HEP. In consideration, we issued 37,250,000 of our common units to HEP Logistics. In addition, HEP Logistics agreed to waive $2.5 million of limited partner cash distributions for each of twelve consecutive quarters beginning with the first quarter the units issued as consideration were eligible to receive distributions. |
Partners' Equity, Income Alloca
Partners' Equity, Income Allocations and Cash Distributions | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Capital [Abstract] | |
Partners' Equity, Income Allocations and Cash Distributions | Partners’ Equity, Income Allocations and Cash Distributions At December 31, 2018 , HFC held 59,630,030 of our common units, constituting a 57% limited partner interest in us and held the non-economic general partner interest. Additionally, HFC owned all incentive distribution rights through October 31, 2017, when an agreement was reached with HEP Logistics, our general partner, impacting its equity interest in HEP including canceling these incentive distribution rights. See Note 1 for a description of this equity restructuring transaction. Common Unit Private Placements 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. On January 25, 2018, we entered into a common unit purchase agreement in which certain purchasers agreed to purchase in a private placement 3,700,000 common units representing limited partnership interests, at a price of $29.73 per common unit. The private placement closed on February 6, 2018, and we received proceeds of approximately $110 million , which were used to repay indebtedness under our Credit Agreement. After this common unit issuance, HFC owns a 57% limited partner interest in us. Continuous Offering Program We have a continuous offering program under which we 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, 2018 , HEP has issued 2,413,153 units under this program, providing $82.3 million in gross proceeds. 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 the partners is allocated to the partners based on their weighted-average ownership percentage during the period. Prior to the equity restructuring of the general partner interest owned by HEP Logistics described in Note 1 that occurred on October 31, 2017, net income attributable to the partners was 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 included incentive distributions that were 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 was 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, 2018 2017 2016 (In thousands) General partner interest in net income $ — $ 919 $ 3,165 General partner incentive distribution — 34,128 54,008 Net loss attributable to Predecessor — — (10,657 ) Total general partner interest in net income $ — $ 35,047 $ 46,516 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. Prior to the equity restructuring transaction discussed in Note 1, we made distributions in the manner displayed in the table below. Subsequent to the financial restructuring, distributions are made equally to all common unit holders regardless of the amount of the distribution per unit. 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% On January 24, 2019 , we announced our cash distribution for the fourth quarter of 2018 of $0.6675 per unit. The distribution is payable on all common units and was paid February 14, 2019 , to all unitholders of record on February 4, 2019 . However, HEP Logistics waived $2.5 million in limited partner cash distributions due to them as discussed in Note 1. 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, 2018 2017 2016 (In thousands, except per unit data) General partner interest in distribution $ — $ 2,335 $ 4,088 General partner incentive distribution — 34,128 54,008 Total general partner distribution — 36,463 58,096 Limited partner distribution 269,284 206,846 143,796 Total regular quarterly cash distribution $ 269,284 $ 243,309 $ 201,892 Cash distribution per unit applicable to limited partners $ 2.6475 $ 2.5475 $ 2.3625 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. |
Net Income Per Limited Partner
Net Income Per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2018 | |
Net Income per Limited Partner Unit [Abstract] | |
Earnings Per Share [Text Block] | Net Income Per Limited Partner Unit Net income per unit applicable to the limited partners was computed using the two-class method since we had more than one class of participating securities during the period from January 1, 2016 through October 31, 2017. The classes of participating securities during this period included common units, general partner units and IDRs. Due to the equity restructuring transaction described in Note 1, as of December 31, 2017, we had one class of security outstanding, common units. To the extent net income attributable to the partners exceeds or is less than cash distributions, this difference is allocated to the partners based on their weighted-average ownership percentage during the period, after consideration of any priority allocations of earnings. The dilutive securities are immaterial for all periods presented. See Note 1 for a description of the equity restructuring of the general partner interest owned by HEP Logistics, our general partner, and its IDRs that occurred on October 31, 2017. After this equity restructuring, the general partner interest is no longer entitled to any distributions and none were made on the general partner interest after October 31, 2017. In connection with this equity restructuring, HEP issued 37,250,000 of its common units to HEP Logistics on October 31, 2017. When our financial statements are retrospectively adjusted after a dropdown transaction, the earnings of the acquired business, prior to the closing of the transaction, are allocated entirely to our general partner and presented as net income (loss) attributable to Predecessors. The earnings per unit of our limited partners prior to the close of the transaction do not change as a result of the dropdown. After the closing of a dropdown transaction, the earnings of the acquired business are allocated in accordance with our partnership agreement as previously described. For purposes of applying the two-class method including the allocation of cash distributions in excess of earnings, net income per limited partner unit is computed as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Net income attributable to the partners $ 178,847 $ 195,040 $ 158,241 Less: General partner’s distribution declared (including IDRs) — (36,463 ) (58,096 ) Limited partner’s distribution declared on common units (269,284 ) (206,846 ) (143,796 ) Distributions in excess of net income attributable to the partners $ (90,437 ) $ (48,269 ) $ (43,651 ) General Partner (including IDRs) Limited Partners’ Common Units Total (In thousands, except per unit data) Year Ended December 31, 2018 Net income attributable to the partners: Distributions declared $ — $ 269,284 $ 269,284 Distributions in excess of net income attributable to partnership — (90,437 ) (90,437 ) Net income attributable to the partners $ — $ 178,847 $ 178,847 Weighted average limited partners' units outstanding 105,042 Limited partners' per unit interest in earnings - basic and diluted $ 1.70 Year Ended December 31, 2017 Net income attributable to the partners: Distributions declared $ 36,463 $ 206,846 $ 243,309 Distributions in excess of net income attributable to partnership (1,416 ) (46,853 ) (48,269 ) Net income attributable to the partners $ 35,047 $ 159,993 $ 195,040 Weighted average limited partners' units outstanding 70,291 Limited partners' per unit interest in earnings - basic and diluted $ 2.28 Year Ended December 31, 2016 Net income attributable to the partners: Distributions declared $ 58,096 $ 143,796 $ 201,892 Distributions in excess of net income attributable to partnership (873 ) (42,778 ) (43,651 ) Net income attributable to the partners $ 57,223 $ 101,018 $ 158,241 Weighted average limited partners' units outstanding 59,872 Limited partners' per unit interest in earnings - basic and diluted $ 1.69 |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2018 | |
Environmental Remediation Obligations [Abstract] | |
Environmental | Environmental We expensed $0.8 million , $0.5 million and $0.7 million for the years ended December 31, 2018, 2017 and 2016 , respectively, for environmental remediation obligations. The accrued environmental liability related to environmental clean-up projects for which we have assumed liability or for which indemnity provided by HFC has expired reflected in our consolidated balance sheets was $6.3 million and $6.5 million as of the years ended December 31, 2018 and 2017 , respectively, of which $4.3 million and $5.0 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, 2018 and 2017 , our consolidated balance sheets include additional accrued environmental liabilities of $0.5 million and $0.8 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. |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments Although financial information is reviewed by our chief operating decision makers from a variety of perspectives, they view the business as two reportable operating segments: pipelines and terminals, and refinery processing units. These segments adhere to the accounting polices used for our consolidated financial statements. For a discussion of these accounting policies and a summary of our reportable operating segments' assets and derivation of revenue, see Note 1. Pipelines and terminals have been aggregated as one reportable segment as both pipelines 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 reportable 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 segment. Years Ended December 31, 2018 2017 2016 (in thousands) Revenues: Pipelines and terminals - affiliate $ 322,629 $ 300,232 $ 300,072 Pipelines and terminals - third-party 108,412 77,226 68,927 Refinery processing units - affiliate 75,179 76,904 33,044 Total segment revenues $ 506,220 $ 454,362 $ 402,043 Segment operating income: Pipelines and terminals $ 230,116 $ 204,970 $ 204,923 Refinery processing units 31,182 32,509 2,706 Total segment operating income 261,298 237,479 207,629 Unallocated general and administrative expenses (11,040 ) (14,323 ) (12,532 ) Interest and financing costs, net (69,791 ) (57,957 ) (52,112 ) Loss on early extinguishment of debt — (12,225 ) — Equity in earnings of unconsolidated affiliates 5,825 12,510 14,213 Gain on sale of assets and other 121 36,676 677 Income before income taxes $ 186,413 $ 202,160 $ 157,875 Capital Expenditures: (2) Pipelines and terminals $ 53,957 $ 289,993 $ 59,704 Refinery processing units 184 263 44,119 Total capital expenditures $ 54,141 $ 290,256 $ 103,823 December 31, 2018 December 31, 2017 (in thousands) Identifiable assets: Pipelines and terminals (1) $ 1,692,282 $ 1,728,074 Refinery processing units 312,888 328,585 Other 97,370 97,455 Total identifiable assets $ 2,102,540 $ 2,154,114 (1) Includes goodwill of $270.3 million and $266.7 million as of the years ending December 31, 2018 and 2017 , respectively. (2) Includes maintenance, expansion and acquisition capital expenditures, which includes business and asset acquisitions of $5.1 million and $44.1 million in the years ended December 31, 2018 and 2016, respectively, and amounts paid and allocated to properties and equipment as part of our purchase of controlling interests in SLC Pipeline and Frontier Aspen, including $1.8 million and $245.4 million in the years ended December 31, 2018 and 2017, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | 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, 2018 Revenues $ 128,884 $ 118,760 $ 125,784 $ 132,792 $ 506,220 Operating income 64,418 56,946 62,923 65,971 250,258 Income before income taxes 48,717 41,527 46,573 49,596 186,413 Net income 48,635 41,499 46,534 49,719 186,387 Net income attributable to the partners 46,168 40,143 45,003 47,533 178,847 Limited partners’ per unit interest in earnings – basic and diluted $ 0.44 $ 0.38 $ 0.43 $ 0.45 $ 1.70 Distributions per limited partner unit $ 0.6550 $ 0.6600 $ 0.6650 $ 0.6675 $ 2.6475 Year Ended December 31, 2017 Revenues $ 105,634 $ 109,143 $ 110,364 $ 129,221 $ 454,362 Operating income 51,734 52,486 51,736 67,200 223,156 Income before income taxes 27,985 42,983 42,992 88,200 202,160 Net income 27,879 42,856 43,061 88,115 201,911 Net income attributable to the partners 25,563 41,335 42,071 86,071 195,040 Limited partners’ per unit interest in earnings – basic and diluted $ 0.13 $ 0.36 $ 0.66 $ 0.96 $ 2.28 Distributions per limited partner unit $ 0.6200 $ 0.6325 $ 0.6450 $ 0.6500 $ 2.5475 |
Supplemental Guarantor _ Non-Gu
Supplemental Guarantor / Non-Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
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 6% Senior Notes have been jointly and severally guaranteed by each of its direct and indirect 100% owned subsidiaries (“Guarantor Subsidiaries”). These guarantees are full and unconditional, subject to certain customary release provisions. These circumstances include (i) when a Guarantor Subsidiary is sold or sells all or substantially all of its assets, (ii) when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, (iii) when a Guarantor Subsidiary's guarantee of other indebtedness is terminated or released and (iv) when the requirements for legal defeasance or covenant defeasance or to discharge the senior notes have been satisfied. The following financial information presents condensed consolidating balance sheets, statements of comprehensive income, and statements of cash flows of the Parent, the Guarantor Subsidiaries and the Non-Guarantor subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Subsidiaries and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. Condensed Consolidating Balance Sheet December 31, 2018 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ — $ 3,043 $ — $ 3,045 Accounts receivable — 53,376 5,994 (252 ) 59,118 Prepaid and other current assets 217 3,542 552 — 4,311 Total current assets 219 56,918 9,589 (252 ) 66,474 Properties and equipment, net — 1,193,181 345,474 — 1,538,655 Investment in subsidiaries 1,850,416 264,378 — (2,114,794 ) — Intangible assets, net — 115,329 — — 115,329 Goodwill — 270,336 — — 270,336 Equity method investments — 83,840 — — 83,840 Other assets 9,291 18,615 — — 27,906 Total assets $ 1,859,926 $ 2,002,597 $ 355,063 $ (2,115,046 ) $ 2,102,540 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 30,325 $ 584 $ (252 ) $ 30,657 Accrued interest 13,302 — — — 13,302 Deferred revenue — 8,065 632 — 8,697 Accrued property taxes — 744 1,035 — 1,779 Other current liabilities 29 3,429 4 — 3,462 Total current liabilities 13,331 42,563 2,255 (252 ) 57,897 Long-term debt 1,418,900 — — — 1,418,900 Other long-term liabilities 260 14,743 304 — 15,307 Deferred revenue — 48,714 — — 48,714 Class B unit — 46,161 — — 46,161 Equity - partners 427,435 1,850,416 264,378 (2,114,794 ) 427,435 Equity - noncontrolling interest — — 88,126 — 88,126 Total liabilities and partners’ equity $ 1,859,926 $ 2,002,597 $ 355,063 $ (2,115,046 ) $ 2,102,540 Condensed Consolidating Balance Sheet December 31, 2017 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 511 $ 7,263 $ — $ 7,776 Accounts receivable — 59,448 5,038 (182 ) 64,304 Prepaid and other current assets 13 2,016 282 — 2,311 Total current assets 15 61,975 12,583 (182 ) 74,391 Properties and equipment, net — 1,213,626 355,845 — 1,569,471 Investment in subsidiaries 1,902,285 273,319 — (2,175,604 ) — Intangible assets, net — 129,463 — — 129,463 Goodwill — 266,716 — — 266,716 Equity method investments — 85,279 — — 85,279 Other assets 11,753 17,041 — — 28,794 Total assets $ 1,914,053 $ 2,047,419 $ 368,428 $ (2,175,786 ) $ 2,154,114 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 20,928 $ 1,526 $ (182 ) $ 22,272 Accrued interest 12,500 756 — — 13,256 Deferred revenue — 8,540 1,058 — 9,598 Accrued property taxes — 3,431 1,221 — 4,652 Other current liabilities — 5,707 — — 5,707 Total current liabilities 12,500 39,362 3,805 (182 ) 55,485 Long-term debt 1,507,308 — — — 1,507,308 Other long-term liabilities 286 15,359 198 — 15,843 Deferred revenue — 47,272 — — 47,272 Class B unit — 43,141 — — 43,141 Equity - partners 393,959 1,902,285 273,319 (2,175,604 ) 393,959 Equity - noncontrolling interest — — 91,106 — 91,106 Total liabilities and partners’ equity $ 1,914,053 $ 2,047,419 $ 368,428 $ (2,175,786 ) $ 2,154,114 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2018 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 373,576 $ 24,232 $ — $ 397,808 Third parties — 84,679 23,733 — 108,412 — 458,255 47,965 — 506,220 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 133,156 13,274 — 146,430 Depreciation and amortization — 81,799 16,693 — 98,492 General and administrative 3,535 7,505 — — 11,040 3,535 222,460 29,967 — 255,962 Operating income (loss) (3,535 ) 235,795 17,998 — 250,258 Equity in earnings of subsidiaries 254,398 13,559 — (267,957 ) — Equity in earnings of equity method investments — 5,825 — — 5,825 Interest income — 2,032 76 — 2,108 Interest expense (72,061 ) 162 — — (71,899 ) Gain on sale of assets and other 45 71 5 — 121 182,382 21,649 81 (267,957 ) (63,845 ) Income (loss) before income taxes 178,847 257,444 18,079 (267,957 ) 186,413 State income tax expense — (26 ) — — (26 ) Net income (loss) 178,847 257,418 18,079 (267,957 ) 186,387 Allocation of net income attributable to noncontrolling interests — (3,020 ) (4,520 ) — (7,540 ) Net income (loss) attributable to the Partnership 178,847 254,398 13,559 (267,957 ) 178,847 Other comprehensive income (loss) — — — — — Comprehensive income (loss) attributable to the Partnership $ 178,847 $ 254,398 $ 13,559 $ (267,957 ) $ 178,847 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 351,395 $ 25,741 $ — $ 377,136 Third parties — 55,400 21,826 — 77,226 — 406,795 47,567 — 454,362 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 122,619 14,986 — 137,605 Depreciation and amortization — 62,889 16,389 — 79,278 General and administrative 4,170 10,153 — — 14,323 4,170 195,661 31,375 — 231,206 Operating income (loss) (4,170 ) 211,134 16,192 — 223,156 Equity in earnings of subsidiaries 254,695 12,148 — (266,843 ) — Equity in earnings of equity method investments — 12,510 — — 12,510 Interest income — 491 — — 491 Interest expense (43,260 ) (15,188 ) — — (58,448 ) Loss on early extinguishment of debt (12,225 ) — — — (12,225 ) Remeasurement gain on preexisting equity interests — 36,254 — — 36,254 Gain on sale of assets and other — 417 5 — 422 199,210 46,632 5 (266,843 ) (20,996 ) Income (loss) before income taxes 195,040 257,766 16,197 (266,843 ) 202,160 State income tax expense — (249 ) — — (249 ) Net income (loss) 195,040 257,517 16,197 (266,843 ) 201,911 Allocation of net income attributable to noncontrolling interests — (2,822 ) (4,049 ) — (6,871 ) Net income (loss) attributable to the Partnership 195,040 254,695 12,148 (266,843 ) 195,040 Other comprehensive income (loss) (91 ) (91 ) — 91 (91 ) Comprehensive income (loss) attributable to the Partnership $ 194,949 $ 254,604 $ 12,148 $ (266,752 ) $ 194,949 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 (loss) 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 Allocation of net loss applicable to Predecessors — 10,657 — — 10,657 Allocation of net income attributable to noncontrolling interests — (5,128 ) (4,878 ) — (10,006 ) Net income (loss) attributable to the Partnership 158,241 193,432 14,634 (208,066 ) 158,241 Other comprehensive income (loss) (99 ) (99 ) — 99 (99 ) Comprehensive income (loss) attributable to the Partnership $ 158,142 $ 193,333 $ 14,634 $ (207,967 ) $ 158,142 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2018 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (68,693 ) $ 345,378 $ 32,087 $ (13,559 ) $ 295,213 Cash flows from investing activities Additions to properties and equipment — (41,031 ) (6,269 ) — (47,300 ) Business and asset acquisitions — (5,013 ) (38 ) — (5,051 ) Purchase of controlling interests in SLC Pipeline and Frontier Aspen — (1,790 ) — — (1,790 ) Proceeds from the sale of assets — 210 — — 210 Distributions in excess of equity in earnings of equity method investments — 1,588 — — 1,588 Distributions from UNEV in excess of earnings — 8,941 — (8,941 ) — — (37,095 ) (6,307 ) (8,941 ) (52,343 ) Cash flows from financing activities Net repayments under credit agreement (89,000 ) — — — (89,000 ) Net intercompany financing activities 307,587 (307,587 ) — — — Proceeds from issuance of common units 114,771 — — — 114,771 Contributions from general partner 882 — — 882 Distributions to HEP unitholders (264,979 ) — — — (264,979 ) Distributions to noncontrolling interest — — (30,000 ) 22,500 (7,500 ) Deferred financing costs — 6 — — 6 Units withheld for tax withholding obligations (568 ) — — — (568 ) Other — (1,213 ) — — (1,213 ) 68,693 (308,794 ) (30,000 ) 22,500 (247,601 ) Cash and cash equivalents Increase for the period — (511 ) (4,220 ) — (4,731 ) Beginning of period 2 511 7,263 — 7,776 End of period $ 2 $ — $ 3,043 $ — $ 3,045 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (51,235 ) $ 268,978 $ 32,892 $ (12,148 ) $ 238,487 Cash flows from investing activities Additions to properties and equipment — (41,827 ) (2,983 ) — (44,810 ) Purchase of interest in Cheyenne Pipeline — (245,446 ) — — (245,446 ) Proceeds from sale of assets — 849 — — 849 Distributions from UNEV in excess of earnings — 3,134 — — 3,134 Distribution in excess of equity in earnings in equity investments — 7,352 — (7,352 ) — — (275,938 ) (2,983 ) (7,352 ) (286,273 ) Cash flows from financing activities Net borrowings under credit agreement 1,012,000 (553,000 ) — — 459,000 Net intercompany financing activities (561,675 ) 561,675 — — — Redemption of notes (309,750 ) — — — (309,750 ) Proceeds from issuance of 6% Senior Notes 101,750 — — — 101,750 Proceeds from issuance of common units 52,100 10 — — 52,110 Contributions from General partner 1,440 (368 ) — — 1,072 Distributions to noncontrolling interests — — (26,000 ) 19,500 (6,500 ) Distributions to HEP unitholders (234,575 ) — — — (234,575 ) Contributions to HFC for El Dorado acquisition (103 ) — — — (103 ) Deferred financing costs (9,347 ) (35 ) — — (9,382 ) Units withheld for tax withholding obligations (605 ) — — — (605 ) Other — (1,112 ) — — (1,112 ) 51,235 7,170 (26,000 ) 19,500 51,905 Cash and cash equivalents Increase (decrease) for the period — 210 3,909 — 4,119 Beginning of period 2 301 3,354 — 3,657 End of period $ 2 $ 511 $ 7,263 $ — $ 7,776 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 $ (19,641 ) $ 245,771 $ 32,052 $ (14,634 ) $ 243,548 Cash flows from investing activities Additions to properties and equipment — (44,447 ) (15,257 ) — (59,704 ) Business and asset acquisitions — (44,119 ) — — (44,119 ) Purchase of investment in Frontier Pipeline — (42,627 ) — — (42,627 ) Proceeds from sale of assets — 427 — — 427 Distributions from UNEV in excess of earnings — 2,616 — (2,616 ) — Distributions in excess of equity in earnings in equity investments — 2,993 — — 2,993 — (125,157 ) (15,257 ) (2,616 ) (143,030 ) Cash flows from financing activities Net borrowings 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 noncontrolling interests — — (23,000 ) 17,250 (5,750 ) Distributions to HEP unitholders (192,037 ) — — — (192,037 ) Distributions 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 acquisitions 31,287 (31,287 ) — — — Distributions to HFC for Osage acquisition — (1,245 ) — — (1,245 ) Purchase of units for incentive grants (3,521 ) — — — (3,521 ) Deferred financing costs (910 ) (3,085 ) — — (3,995 ) Units withheld for tax withholding obligations (800 ) — — — (800 ) Other (450 ) (1,285 ) — — (1,735 ) 19,641 (125,765 ) (23,000 ) 17,250 (111,874 ) 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 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation | Holly Energy Partners, L.P. (“HEP”) together with its consolidated subsidiaries, is a publicly held master limited partnership. As of December 31, 2018 , HollyFrontier Corporation (“HFC”) and its subsidiaries own a 57% limited partner interest and the non-economic general partner interest in HEP. 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. On October 31, 2017, we closed on an equity restructuring transaction with HEP Logistics Holdings, L.P. (“HEP Logistics”), a wholly-owned subsidiary of HFC and the general partner of HEP, pursuant to which the incentive distribution rights ("IDRs") held by HEP Logistics were canceled, and HEP Logistics' 2% general partner interest in HEP was converted into a non-economic general partner interest in HEP. In consideration, we issued 37,250,000 of our common units to HEP Logistics. In addition, HEP Logistics agreed to waive $2.5 million of limited partner cash distributions for each of twelve consecutive quarters beginning with the first quarter the units issued as consideration were eligible to receive distributions. As a result of this transaction, no distributions were made on the general partner interest after October 31, 2017. On January 25, 2018, we entered into a common unit purchase agreement in which certain purchasers agreed to purchase in a private placement 3,700,000 common units representing limited partner interests, at a price of $29.73 per common unit. The private placement closed on February 6, 2018, and we received proceeds of approximately $110 million , which were used to repay indebtedness under our revolving credit facility. 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 Delek US Holdings, Inc.’s (“Delek”) refinery in Big Spring, Texas. Additionally, we own a 75% interest in the UNEV Pipeline, LLC (“UNEV”), a 50% interest in Osage Pipe Line Company, LLC (“Osage”), and a 50% interest in Cheyenne 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 15. Our Pipelines and Terminals segment consists of: • 26 main pipeline segments • Crude gathering networks in Texas and New Mexico • 10 refined product terminals • 1 crude terminal • 31,800 track feet of rail storage located at two facilities • 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. |
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. Certain prior period balances have been reclassified for consistency with current year presentation. 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. |
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, Delek 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 | Intangible assets include transportation agreements and acquired customer relationship intangible assets. Intangible assets are stated at acquisition date fair value and are being amortized over their useful lives using the straight-line method. |
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. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values, including goodwill. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit. In 2018, 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, could result in the recognition of an impairment loss. In 2017, we assessed qualitative factors such as macroeconomic conditions, industry considerations, cost factors, and reporting unit financial performance and determined it was not more likely than not that the fair value of our reporting units were 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, 2018 . |
Investment in Equity Method Investments, Policy | Investment in Equity Method Investments We account for our interests in noncontrolling 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. |
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, 2018 and 2017 , we have asset retirement obligations of $8.9 million and $8.6 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 $46.2 million at December 31, 2018 , and $43.1 million at December 31, 2017 . |
Revenue Recognition, Policy | Revenue Recognition Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. As a result, we bifurcate the consideration received between lease and service revenue. The service component is within the scope of Accounting Standards Codification (“ASC”) 606, which largely codified ASU 2014-09. Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter. The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize the service portion of these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Prior to the adoption of ASC 606 on January 1, 2018, billings to customers for their obligations under their quarterly minimum revenue commitments were recorded as deferred revenue liabilities if the customer had the right to receive future services for these billings. The revenue was recognized at the earlier of: • the customer receiving the future services provided by these billings, • the period in which the customer was contractually allowed to receive the services expired, or • our determination that we would not be required to provide services within the allowed period. We determined that we would not be required to provide services within the allowed period when, based on current and projected shipping levels, our pipeline systems would 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, 2018 , 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 $2.3 billion including $356 million for the year ending December 31, 2019, $308 million for the year ending December 31, 2020, $298 million for the year ending December 31, 2021, $271 million for the year ending December 31, 2022 and $236 million for the year ending December 31, 2023. 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. Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. Therefore, we bifurcate the consideration received between lease and service revenue. The service component is within the scope of ASC 606, which largely codified ASU 2014-09. Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter. The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize the service portion of these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. |
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 Delek with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Delek in 2005, under which Delek 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 since we had more than one class of participating securities prior to the October 31, 2017 equity restructuring transaction discussed above. Under the two-class method, 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, both of which were applicable prior to the October 31, 2017 equity restructuring transaction discussed above, and other participating securities, by the weighted-average number of common units outstanding during the year and other dilutive securities. Other participating securities and dilutive securities are not significant. |
New Accounting Pronouncements, Policy | Accounting Pronouncement Adopted During the Periods Presented 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 had an effective date of January 1, 2018, and we accounted for the new guidance using the modified retrospective implementation method, whereby a cumulative effect adjustment was recorded to retained earnings as of the date of initial application. In preparing for adoption, we evaluated the terms, conditions and performance obligations under our existing contracts with customers. Furthermore, we implemented policies to comply with this new standard. See above and Note 3 for additional information on our revenue recognition policies. 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 had an effective date of January 1, 2018, and had no effect on our financial condition, results of operations or cash flows. 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 was effective beginning with our 2018 reporting year and had no effect on our financial condition, results of operations or cash flows. |
Description of New Accounting Pronouncements Not yet Adopted | Accounting Pronouncements Not Yet Adopted 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 plan to apply practical expedients provided in the standards update that allow us, among other things, not to reassess contracts that commenced prior to the adoption. The primary effect of adopting the new standard will be to record assets and obligations for current operating leases on our consolidated balance sheet. Adoption of the standard is not expected to have a material impact on our results of operations or cash flows. In preparing for adoption, we have identified, reviewed and evaluated contracts containing lease and embedded lease arrangements. Additionally, we have acquired and implemented software and systems to facilitate lease capture and related accounting treatment. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Equity Method Investments [Table Text Block] | Balance at December 31, 2018 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investments Osage Pipe Line Company, LLC $ 9,964 $ 40,483 $ (30,519 ) Cheyenne Pipeline LLC 29,358 43,357 (13,999 ) Total $ 39,322 $ 83,840 $ (44,518 ) Balance at December 31, 2017 Underlying Equity Recorded Investment Balance Difference (in thousands) Equity Method Investments Osage Pipe Line Company, LLC $ 10,631 $ 42,071 $ (31,440 ) Cheyenne Pipeline LLC 28,706 43,208 (14,502 ) Total $ 39,337 $ 85,279 $ (45,942 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following summarizes the final estimated value of assets and liabilities acquired: (in thousands) Cash and cash equivalents $ 4,609 Accounts receivable 5,164 Prepaid and other current assets 8 Properties and equipment 275,061 Intangible assets 70,182 Goodwill 13,845 Accounts payable (3,598 ) Accrued property taxes (1,438 ) Net assets acquired $ 363,833 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information combines the historical operations of HEP, SLC Pipeline and Frontier Aspen as if the acquisition had occurred on January 1, 2016: Years Ended December 31, 2017 2016 (in thousands) Revenues $ 489,382 $ 445,017 Net income attributable to the partners $ 161,900 $ 162,862 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Cumulative Effect of Adjustment | The following table reflects the cumulative effect of adoption as of January 1, 2018: Prior to Adoption Increase (Decrease) As Adjusted (In thousands) Deferred revenue $ 9,598 $ (1,320 ) $ 8,278 Partners’ equity: Common unitholders $ 393,959 $ 1,320 $ 395,279 |
Schedule of Contract Asset and Contract Liability Balances | Our consolidated balance sheet as of December 31, 2018 , included the contract assets and liabilities in the table below. December 31, January 1, (In thousands) Contract assets $ 1,818 $ — Contract liabilities $ (1,821 ) $ (2,713 ) |
Schedule of Future Performance Obligations | We expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues): Years Ending December 31, (In millions) 2019 $ 356 2020 308 2021 298 2022 271 2023 236 Thereafter 838 Total $ 2,307 |
Schedule of Disaggregated Revenue | Disaggregated revenues are as follows: Years Ended December 31, 2018 2017 2016 (In thousands) Pipelines $ 283,507 $ 235,040 $ 232,634 Terminals, tanks and loading racks 147,534 142,418 136,365 Refinery processing units 75,179 76,904 33,044 $ 506,220 $ 454,362 $ 402,043 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 were as follows: December 31, 2018 December 31, 2017 Financial Instrument Fair Value Input Level Carrying Value Fair Value Carrying Value Fair Value (In thousands) Liabilities: 6.0% Senior Notes Level 2 $ 495,900 $ 488,310 $ 495,308 $ 525,120 |
Properties and Equipment (Table
Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $ 1,571,338 $ 1,541,722 Refinery assets 347,338 347,338 Land and right of way 86,298 86,484 Construction in progress 23,482 12,029 Other 41,250 35,659 2,069,706 2,023,232 Less accumulated depreciation 531,051 453,761 $ 1,538,655 $ 1,569,471 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Finite-Lived Intangible Assets, Gross [Abstract] | |
Intangible Assets by Major Class | The carrying amounts of our intangible assets are as follows: Useful Life December 31, December 31, (In thousands) Delek transportation agreement 30 years $ 59,933 $ 59,933 HFC transportation agreements 10-15 years 75,131 75,131 Customer relationships 10 years 69,683 69,282 Other 50 50 204,797 204,396 Less accumulated amortization 89,468 74,933 $ 115,329 $ 129,463 |
Employees, Retirement and Inc_2
Employees, Retirement and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted and phantom unit activity and changes during the year ended December 31, 2018 , is presented below: Restricted and Phantom Units Units Weighted- Average Grant-Date Fair Value Outstanding at January 1, 2018 (nonvested) 119,009 $ 34.77 Granted 93,955 29.30 Vesting and transfer of common units to recipients (72,537 ) 34.20 Forfeited (2,411 ) 34.63 Outstanding at December 31, 2018 (nonvested) 138,016 $ 31.35 |
Schedule of Nonvested Performance-based Units Activity | A summary of performance unit activity and changes for the year ended December 31, 2018 , is presented below: Performance Units Units Outstanding at January 1, 2018 (nonvested) 36,911 Granted 19,120 Vesting and transfer of common units to recipients (4,283 ) Outstanding at December 31, 2018 (nonvested) 51,748 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $ 923,000 $ 1,012,000 6% Senior Notes Principal 500,000 500,000 Unamortized debt issuance costs (4,100 ) (4,692 ) 495,900 495,308 Total long-term debt $ 1,418,900 $ 1,507,308 |
Schedule of Maturities of Long-term Debt | Maturities of our long-term debt are as follows: Years Ending December 31, (In thousands) 2019 $ — 2020 — 2021 — 2022 923,000 2023 — Thereafter 500,000 Total $ 1,423,000 |
Schedule of Interest Expense and Other Debt Information | Interest expense consists of the following components: Years Ended December 31, 2018 2017 2016 (In thousands) Interest on outstanding debt: Credit Agreement, net of interest on interest rate swaps $ 37,266 $ 28,928 $ 17,621 6% Senior Notes 30,000 25,813 10,811 6.5% Senior Notes — — 19,507 Amortization of discount and deferred debt issuance costs 3,041 3,063 3,246 Commitment fees and other 1,904 1,648 2,069 Total interest incurred 72,211 59,452 53,254 Less capitalized interest 312 1,004 702 Net interest expense $ 71,899 $ 58,448 $ 52,552 Cash paid for interest $ 69,112 $ 62,395 $ 38,530 |
Schedule of Capital Lease Obligations [Table Text Block] | At December 31, 2018 , future minimum annual lease payments, including interest, for the capital leases are as follows: Years Ending December 31, (in thousands) 2019 $ 1,069 2020 589 2021 140 Total minimum lease payments 1,798 Less amount representing interest (109 ) Capital lease obligations $ 1,689 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018 , 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) 2019 $ 7,252 2020 7,196 2021 7,147 2022 7,127 2023 7,045 Thereafter 24,619 Total $ 60,386 |
Commitments Disclosure Site Service Agreements | At December 31, 2018 , these minimum future contractual obligations and other miscellaneous obligations having terms in excess of one year are as follows: Years Ending December 31, (In thousands) 2019 $ 9,360 2020 7,683 2021 7,689 2022 7,069 2023 5,536 Thereafter 223,567 Total $ 260,904 |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 HFC 79 % 83 % 83 % Delek 7 % 8 % 8 % |
Partners' Equity Income Allocat
Partners' Equity Income Allocations and Cash Distributions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 (In thousands) General partner interest in net income $ — $ 919 $ 3,165 General partner incentive distribution — 34,128 54,008 Net loss attributable to Predecessor — — (10,657 ) Total general partner interest in net income $ — $ 35,047 $ 46,516 |
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, 2018 2017 2016 (In thousands, except per unit data) General partner interest in distribution $ — $ 2,335 $ 4,088 General partner incentive distribution — 34,128 54,008 Total general partner distribution — 36,463 58,096 Limited partner distribution 269,284 206,846 143,796 Total regular quarterly cash distribution $ 269,284 $ 243,309 $ 201,892 Cash distribution per unit applicable to limited partners $ 2.6475 $ 2.5475 $ 2.3625 |
Net Income Per Limited Partne_2
Net Income Per Limited Partner Unit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For purposes of applying the two-class method including the allocation of cash distributions in excess of earnings, net income per limited partner unit is computed as follows: Years Ended December 31, 2018 2017 2016 (in thousands) Net income attributable to the partners $ 178,847 $ 195,040 $ 158,241 Less: General partner’s distribution declared (including IDRs) — (36,463 ) (58,096 ) Limited partner’s distribution declared on common units (269,284 ) (206,846 ) (143,796 ) Distributions in excess of net income attributable to the partners $ (90,437 ) $ (48,269 ) $ (43,651 ) General Partner (including IDRs) Limited Partners’ Common Units Total (In thousands, except per unit data) Year Ended December 31, 2018 Net income attributable to the partners: Distributions declared $ — $ 269,284 $ 269,284 Distributions in excess of net income attributable to partnership — (90,437 ) (90,437 ) Net income attributable to the partners $ — $ 178,847 $ 178,847 Weighted average limited partners' units outstanding 105,042 Limited partners' per unit interest in earnings - basic and diluted $ 1.70 Year Ended December 31, 2017 Net income attributable to the partners: Distributions declared $ 36,463 $ 206,846 $ 243,309 Distributions in excess of net income attributable to partnership (1,416 ) (46,853 ) (48,269 ) Net income attributable to the partners $ 35,047 $ 159,993 $ 195,040 Weighted average limited partners' units outstanding 70,291 Limited partners' per unit interest in earnings - basic and diluted $ 2.28 Year Ended December 31, 2016 Net income attributable to the partners: Distributions declared $ 58,096 $ 143,796 $ 201,892 Distributions in excess of net income attributable to partnership (873 ) (42,778 ) (43,651 ) Net income attributable to the partners $ 57,223 $ 101,018 $ 158,241 Weighted average limited partners' units outstanding 59,872 Limited partners' per unit interest in earnings - basic and diluted $ 1.69 |
Operatng Segments (Tables)
Operatng Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Years Ended December 31, 2018 2017 2016 (in thousands) Revenues: Pipelines and terminals - affiliate $ 322,629 $ 300,232 $ 300,072 Pipelines and terminals - third-party 108,412 77,226 68,927 Refinery processing units - affiliate 75,179 76,904 33,044 Total segment revenues $ 506,220 $ 454,362 $ 402,043 Segment operating income: Pipelines and terminals $ 230,116 $ 204,970 $ 204,923 Refinery processing units 31,182 32,509 2,706 Total segment operating income 261,298 237,479 207,629 Unallocated general and administrative expenses (11,040 ) (14,323 ) (12,532 ) Interest and financing costs, net (69,791 ) (57,957 ) (52,112 ) Loss on early extinguishment of debt — (12,225 ) — Equity in earnings of unconsolidated affiliates 5,825 12,510 14,213 Gain on sale of assets and other 121 36,676 677 Income before income taxes $ 186,413 $ 202,160 $ 157,875 Capital Expenditures: (2) Pipelines and terminals $ 53,957 $ 289,993 $ 59,704 Refinery processing units 184 263 44,119 Total capital expenditures $ 54,141 $ 290,256 $ 103,823 December 31, 2018 December 31, 2017 (in thousands) Identifiable assets: Pipelines and terminals (1) $ 1,692,282 $ 1,728,074 Refinery processing units 312,888 328,585 Other 97,370 97,455 Total identifiable assets $ 2,102,540 $ 2,154,114 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Revenues $ 128,884 $ 118,760 $ 125,784 $ 132,792 $ 506,220 Operating income 64,418 56,946 62,923 65,971 250,258 Income before income taxes 48,717 41,527 46,573 49,596 186,413 Net income 48,635 41,499 46,534 49,719 186,387 Net income attributable to the partners 46,168 40,143 45,003 47,533 178,847 Limited partners’ per unit interest in earnings – basic and diluted $ 0.44 $ 0.38 $ 0.43 $ 0.45 $ 1.70 Distributions per limited partner unit $ 0.6550 $ 0.6600 $ 0.6650 $ 0.6675 $ 2.6475 Year Ended December 31, 2017 Revenues $ 105,634 $ 109,143 $ 110,364 $ 129,221 $ 454,362 Operating income 51,734 52,486 51,736 67,200 223,156 Income before income taxes 27,985 42,983 42,992 88,200 202,160 Net income 27,879 42,856 43,061 88,115 201,911 Net income attributable to the partners 25,563 41,335 42,071 86,071 195,040 Limited partners’ per unit interest in earnings – basic and diluted $ 0.13 $ 0.36 $ 0.66 $ 0.96 $ 2.28 Distributions per limited partner unit $ 0.6200 $ 0.6325 $ 0.6450 $ 0.6500 $ 2.5475 |
Supplemental Guarantor _ Non-_2
Supplemental Guarantor / Non-Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2018 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ — $ 3,043 $ — $ 3,045 Accounts receivable — 53,376 5,994 (252 ) 59,118 Prepaid and other current assets 217 3,542 552 — 4,311 Total current assets 219 56,918 9,589 (252 ) 66,474 Properties and equipment, net — 1,193,181 345,474 — 1,538,655 Investment in subsidiaries 1,850,416 264,378 — (2,114,794 ) — Intangible assets, net — 115,329 — — 115,329 Goodwill — 270,336 — — 270,336 Equity method investments — 83,840 — — 83,840 Other assets 9,291 18,615 — — 27,906 Total assets $ 1,859,926 $ 2,002,597 $ 355,063 $ (2,115,046 ) $ 2,102,540 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 30,325 $ 584 $ (252 ) $ 30,657 Accrued interest 13,302 — — — 13,302 Deferred revenue — 8,065 632 — 8,697 Accrued property taxes — 744 1,035 — 1,779 Other current liabilities 29 3,429 4 — 3,462 Total current liabilities 13,331 42,563 2,255 (252 ) 57,897 Long-term debt 1,418,900 — — — 1,418,900 Other long-term liabilities 260 14,743 304 — 15,307 Deferred revenue — 48,714 — — 48,714 Class B unit — 46,161 — — 46,161 Equity - partners 427,435 1,850,416 264,378 (2,114,794 ) 427,435 Equity - noncontrolling interest — — 88,126 — 88,126 Total liabilities and partners’ equity $ 1,859,926 $ 2,002,597 $ 355,063 $ (2,115,046 ) $ 2,102,540 Condensed Consolidating Balance Sheet December 31, 2017 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2 $ 511 $ 7,263 $ — $ 7,776 Accounts receivable — 59,448 5,038 (182 ) 64,304 Prepaid and other current assets 13 2,016 282 — 2,311 Total current assets 15 61,975 12,583 (182 ) 74,391 Properties and equipment, net — 1,213,626 355,845 — 1,569,471 Investment in subsidiaries 1,902,285 273,319 — (2,175,604 ) — Intangible assets, net — 129,463 — — 129,463 Goodwill — 266,716 — — 266,716 Equity method investments — 85,279 — — 85,279 Other assets 11,753 17,041 — — 28,794 Total assets $ 1,914,053 $ 2,047,419 $ 368,428 $ (2,175,786 ) $ 2,154,114 LIABILITIES AND PARTNERS’ EQUITY Current liabilities: Accounts payable $ — $ 20,928 $ 1,526 $ (182 ) $ 22,272 Accrued interest 12,500 756 — — 13,256 Deferred revenue — 8,540 1,058 — 9,598 Accrued property taxes — 3,431 1,221 — 4,652 Other current liabilities — 5,707 — — 5,707 Total current liabilities 12,500 39,362 3,805 (182 ) 55,485 Long-term debt 1,507,308 — — — 1,507,308 Other long-term liabilities 286 15,359 198 — 15,843 Deferred revenue — 47,272 — — 47,272 Class B unit — 43,141 — — 43,141 Equity - partners 393,959 1,902,285 273,319 (2,175,604 ) 393,959 Equity - noncontrolling interest — — 91,106 — 91,106 Total liabilities and partners’ equity $ 1,914,053 $ 2,047,419 $ 368,428 $ (2,175,786 ) $ 2,154,114 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2018 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 373,576 $ 24,232 $ — $ 397,808 Third parties — 84,679 23,733 — 108,412 — 458,255 47,965 — 506,220 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 133,156 13,274 — 146,430 Depreciation and amortization — 81,799 16,693 — 98,492 General and administrative 3,535 7,505 — — 11,040 3,535 222,460 29,967 — 255,962 Operating income (loss) (3,535 ) 235,795 17,998 — 250,258 Equity in earnings of subsidiaries 254,398 13,559 — (267,957 ) — Equity in earnings of equity method investments — 5,825 — — 5,825 Interest income — 2,032 76 — 2,108 Interest expense (72,061 ) 162 — — (71,899 ) Gain on sale of assets and other 45 71 5 — 121 182,382 21,649 81 (267,957 ) (63,845 ) Income (loss) before income taxes 178,847 257,444 18,079 (267,957 ) 186,413 State income tax expense — (26 ) — — (26 ) Net income (loss) 178,847 257,418 18,079 (267,957 ) 186,387 Allocation of net income attributable to noncontrolling interests — (3,020 ) (4,520 ) — (7,540 ) Net income (loss) attributable to the Partnership 178,847 254,398 13,559 (267,957 ) 178,847 Other comprehensive income (loss) — — — — — Comprehensive income (loss) attributable to the Partnership $ 178,847 $ 254,398 $ 13,559 $ (267,957 ) $ 178,847 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 351,395 $ 25,741 $ — $ 377,136 Third parties — 55,400 21,826 — 77,226 — 406,795 47,567 — 454,362 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 122,619 14,986 — 137,605 Depreciation and amortization — 62,889 16,389 — 79,278 General and administrative 4,170 10,153 — — 14,323 4,170 195,661 31,375 — 231,206 Operating income (loss) (4,170 ) 211,134 16,192 — 223,156 Equity in earnings of subsidiaries 254,695 12,148 — (266,843 ) — Equity in earnings of equity method investments — 12,510 — — 12,510 Interest income — 491 — — 491 Interest expense (43,260 ) (15,188 ) — — (58,448 ) Loss on early extinguishment of debt (12,225 ) — — — (12,225 ) Remeasurement gain on preexisting equity interests — 36,254 — — 36,254 Gain on sale of assets and other — 417 5 — 422 199,210 46,632 5 (266,843 ) (20,996 ) Income (loss) before income taxes 195,040 257,766 16,197 (266,843 ) 202,160 State income tax expense — (249 ) — — (249 ) Net income (loss) 195,040 257,517 16,197 (266,843 ) 201,911 Allocation of net income attributable to noncontrolling interests — (2,822 ) (4,049 ) — (6,871 ) Net income (loss) attributable to the Partnership 195,040 254,695 12,148 (266,843 ) 195,040 Other comprehensive income (loss) (91 ) (91 ) — 91 (91 ) Comprehensive income (loss) attributable to the Partnership $ 194,949 $ 254,604 $ 12,148 $ (266,752 ) $ 194,949 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 (loss) 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 Allocation of net loss applicable to Predecessors — 10,657 — — 10,657 Allocation of net income attributable to noncontrolling interests — (5,128 ) (4,878 ) — (10,006 ) Net income (loss) attributable to the Partnership 158,241 193,432 14,634 (208,066 ) 158,241 Other comprehensive income (loss) (99 ) (99 ) — 99 (99 ) Comprehensive income (loss) attributable to the Partnership $ 158,142 $ 193,333 $ 14,634 $ (207,967 ) $ 158,142 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2018 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (68,693 ) $ 345,378 $ 32,087 $ (13,559 ) $ 295,213 Cash flows from investing activities Additions to properties and equipment — (41,031 ) (6,269 ) — (47,300 ) Business and asset acquisitions — (5,013 ) (38 ) — (5,051 ) Purchase of controlling interests in SLC Pipeline and Frontier Aspen — (1,790 ) — — (1,790 ) Proceeds from the sale of assets — 210 — — 210 Distributions in excess of equity in earnings of equity method investments — 1,588 — — 1,588 Distributions from UNEV in excess of earnings — 8,941 — (8,941 ) — — (37,095 ) (6,307 ) (8,941 ) (52,343 ) Cash flows from financing activities Net repayments under credit agreement (89,000 ) — — — (89,000 ) Net intercompany financing activities 307,587 (307,587 ) — — — Proceeds from issuance of common units 114,771 — — — 114,771 Contributions from general partner 882 — — 882 Distributions to HEP unitholders (264,979 ) — — — (264,979 ) Distributions to noncontrolling interest — — (30,000 ) 22,500 (7,500 ) Deferred financing costs — 6 — — 6 Units withheld for tax withholding obligations (568 ) — — — (568 ) Other — (1,213 ) — — (1,213 ) 68,693 (308,794 ) (30,000 ) 22,500 (247,601 ) Cash and cash equivalents Increase for the period — (511 ) (4,220 ) — (4,731 ) Beginning of period 2 511 7,263 — 7,776 End of period $ 2 $ — $ 3,043 $ — $ 3,045 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 Parent Guarantor Restricted Subsidiaries Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Cash flows from operating activities $ (51,235 ) $ 268,978 $ 32,892 $ (12,148 ) $ 238,487 Cash flows from investing activities Additions to properties and equipment — (41,827 ) (2,983 ) — (44,810 ) Purchase of interest in Cheyenne Pipeline — (245,446 ) — — (245,446 ) Proceeds from sale of assets — 849 — — 849 Distributions from UNEV in excess of earnings — 3,134 — — 3,134 Distribution in excess of equity in earnings in equity investments — 7,352 — (7,352 ) — — (275,938 ) (2,983 ) (7,352 ) (286,273 ) Cash flows from financing activities Net borrowings under credit agreement 1,012,000 (553,000 ) — — 459,000 Net intercompany financing activities (561,675 ) 561,675 — — — Redemption of notes (309,750 ) — — — (309,750 ) Proceeds from issuance of 6% Senior Notes 101,750 — — — 101,750 Proceeds from issuance of common units 52,100 10 — — 52,110 Contributions from General partner 1,440 (368 ) — — 1,072 Distributions to noncontrolling interests — — (26,000 ) 19,500 (6,500 ) Distributions to HEP unitholders (234,575 ) — — — (234,575 ) Contributions to HFC for El Dorado acquisition (103 ) — — — (103 ) Deferred financing costs (9,347 ) (35 ) — — (9,382 ) Units withheld for tax withholding obligations (605 ) — — — (605 ) Other — (1,112 ) — — (1,112 ) 51,235 7,170 (26,000 ) 19,500 51,905 Cash and cash equivalents Increase (decrease) for the period — 210 3,909 — 4,119 Beginning of period 2 301 3,354 — 3,657 End of period $ 2 $ 511 $ 7,263 $ — $ 7,776 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 $ (19,641 ) $ 245,771 $ 32,052 $ (14,634 ) $ 243,548 Cash flows from investing activities Additions to properties and equipment — (44,447 ) (15,257 ) — (59,704 ) Business and asset acquisitions — (44,119 ) — — (44,119 ) Purchase of investment in Frontier Pipeline — (42,627 ) — — (42,627 ) Proceeds from sale of assets — 427 — — 427 Distributions from UNEV in excess of earnings — 2,616 — (2,616 ) — Distributions in excess of equity in earnings in equity investments — 2,993 — — 2,993 — (125,157 ) (15,257 ) (2,616 ) (143,030 ) Cash flows from financing activities Net borrowings 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 noncontrolling interests — — (23,000 ) 17,250 (5,750 ) Distributions to HEP unitholders (192,037 ) — — — (192,037 ) Distributions 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 acquisitions 31,287 (31,287 ) — — — Distributions to HFC for Osage acquisition — (1,245 ) — — (1,245 ) Purchase of units for incentive grants (3,521 ) — — — (3,521 ) Deferred financing costs (910 ) (3,085 ) — — (3,995 ) Units withheld for tax withholding obligations (800 ) — — — (800 ) Other (450 ) (1,285 ) — — (1,735 ) 19,641 (125,765 ) (23,000 ) 17,250 (111,874 ) 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 |
Description of Business and Pre
Description of Business and Presentation of Financial Statements (Details) - USD ($) | Feb. 14, 2019 | Jan. 25, 2018 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 06, 2018 |
Other Ownership Interests [Line Items] | ||||||||||||||
Units withheld for tax withholding obligations | $ (568,000) | $ (605,000) | $ (800,000) | |||||||||||
Goodwill, Impairment Loss | $ 0 | |||||||||||||
Ownership percentage, controlling interest | 57.00% | 57.00% | 57.00% | |||||||||||
Common Unit, Issued | 37,250,000 | 37,250,000 | ||||||||||||
Limited partner distribution | $ 2,500,000 | $ 269,284,000 | $ 206,846,000 | 143,796,000 | ||||||||||
General partner interest | 2.00% | 2.00% | ||||||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Underlying Equity in Net Assets | $ 39,322,000 | $ 39,337,000 | $ 39,322,000 | $ 39,337,000 | ||||||||||
Equity Method Investments | 83,840,000 | 85,279,000 | 83,840,000 | 85,279,000 | ||||||||||
Difference Between Carrying Amount and Underlying Equity | (44,518,000) | (45,942,000) | (44,518,000) | (45,942,000) | ||||||||||
Asset Retirement Obligation | 8,900,000 | 8,600,000 | 8,900,000 | 8,600,000 | ||||||||||
UNEV acquisition, contingent consideration | 30,000,000 | 30,000,000 | ||||||||||||
UNEV acquisition, HFC incentive distributions | 1,250,000 | 1,250,000 | ||||||||||||
Class B unit | 46,161,000 | 43,141,000 | 46,161,000 | 43,141,000 | ||||||||||
Minimum Annualized Payments Receivable Aggregate | 2,300,000,000 | 2,300,000,000 | ||||||||||||
Accrual for Environmental Loss Contingencies | $ 6,300,000 | $ 6,500,000 | 6,300,000 | $ 6,500,000 | ||||||||||
Partners' Capital Account, Units, Sold in Private Placement | 3,700,000 | 3,420,000 | ||||||||||||
Sale of Stock, Price Per Share | $ 29.73 | $ 29.73 | $ 30.18 | $ 30.18 | ||||||||||
Proceeds from Issuance of Private Placement | $ 110,000,000 | $ 110,000,000 | $ 103,000,000 | 103,000,000 | ||||||||||
Contributions from general partner | $ 882,000 | $ 1,072,000 | $ 2,577,000 | |||||||||||
UNEV Pipeline [Member] | ||||||||||||||
Other Ownership Interests [Line Items] | ||||||||||||||
Ownership percentage in equity method investment | 75.00% | 75.00% | ||||||||||||
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 | ||||||||||||
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] | ||||||||||||||
Limited partner distribution | $ 2,500,000 | |||||||||||||
Minimum Annualized Payments Receivable | $ 236,000,000 | $ 271,000,000 | $ 298,000,000 | $ 308,000,000 | $ 356,000,000 | |||||||||
Cheyenne [Member] | ||||||||||||||
Other Ownership Interests [Line Items] | ||||||||||||||
Underlying Equity in Net Assets | $ 29,358,000 | 28,706,000 | $ 29,358,000 | 28,706,000 | ||||||||||
Equity Method Investments | 43,357,000 | 43,208,000 | 43,357,000 | 43,208,000 | ||||||||||
Difference Between Carrying Amount and Underlying Equity | (13,999,000) | (14,502,000) | (13,999,000) | (14,502,000) | ||||||||||
Osage Pipeline [Member] | ||||||||||||||
Other Ownership Interests [Line Items] | ||||||||||||||
Underlying Equity in Net Assets | 9,964,000 | 10,631,000 | 9,964,000 | 10,631,000 | ||||||||||
Equity Method Investments | 40,483,000 | 42,071,000 | 40,483,000 | 42,071,000 | ||||||||||
Difference Between Carrying Amount and Underlying Equity | $ (30,519,000) | $ (31,440,000) | $ (30,519,000) | $ (31,440,000) |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Jan. 25, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)mibbl | Dec. 31, 2016USD ($) | Oct. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Underlying Equity in Net Assets | $ 39,337 | $ 39,322 | $ 39,337 | $ 39,322 | $ 39,337 | |||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Distribution to HFC for acquisitions | 0 | $ 317,500 | ||||||||||||
Remeasurement gain on preexisting equity interests | 36,300 | 0 | 36,254 | 0 | ||||||||||
Business Combination, Consideration Transferred | 363,800 | |||||||||||||
Property, Plant and Equipment, Additions | 54,141 | 290,256 | 103,823 | |||||||||||
Payments to Acquire Equity Method Investments | 0 | 0 | 42,627 | |||||||||||
Proceeds from Issuance of Private Placement | $ 110,000 | $ 110,000 | $ 103,000 | 103,000 | ||||||||||
Partners' Capital Account, Units, Sold in Private Placement | shares | 3,700,000 | 3,420,000 | ||||||||||||
Business Acquisition Purchase Price | $ 250,000 | |||||||||||||
Acquisition of Less than 100 Percent | $ 112,000 | |||||||||||||
Assets Acquired and Liabilities Assumed, Cash and Equivalents | 4,609 | |||||||||||||
Assets Acquired and Liabilities Assumed, Accounts Receivable | 5,164 | |||||||||||||
Assets Acquired and Liabilities Assumed, Prepaid and Other Current Assets | 8 | |||||||||||||
Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 275,061 | |||||||||||||
Assets Acquired and Liabilities Assumed, Intangible Assets | 70,182 | |||||||||||||
Assets Acquired and Liabilities Assumed, Goodwill | 13,845 | |||||||||||||
Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (3,598) | |||||||||||||
Assets Acquired and Liabilities Assumed, Accrued Property Taxes | 1,438 | |||||||||||||
Assets Acquired and Liabilities Assumed, Net | $ 363,833 | |||||||||||||
Revenues | 7,900 | |||||||||||||
Net income attributable to Holly Energy Partners | $ 4,100 | $ 47,533 | $ 45,003 | $ 40,143 | $ 46,168 | $ 86,071 | $ 42,071 | $ 41,335 | $ 25,563 | 178,847 | 195,040 | 158,241 | ||
Business Acquisition, Pro Forma Revenue | 489,382 | 445,017 | ||||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 161,900 | $ 162,862 | ||||||||||||
Frontier Pipeline [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 50.00% | 50.00% | 50.00% | |||||||||||
Osage Pipeline [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Underlying Equity in Net Assets | $ 12,100 | $ 12,100 | ||||||||||||
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 | |||||||||||||
Cheyenne [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | ||||||||||||
Length of Pipeline | mi | 87 | |||||||||||||
Production barrel capacity per day | bbl | 80,000 | |||||||||||||
Distribution to HFC for acquisitions | $ 278,000 | |||||||||||||
Purchase Obligation Minimum Annualized Payment | 57,000 | |||||||||||||
Payments to Acquire Equity Method Investments | $ 42,600 | |||||||||||||
SLC Pipeline [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 25.00% | 25.00% | 25.00% | |||||||||||
Woods Cross [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Duration of Sales Commitment - Years | 15 | |||||||||||||
Tulsa Tanks [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Property, Plant and Equipment, Additions | $ 39,500 |
Revenues - Schedule of Cumulati
Revenues - Schedule of Cumulative Effect of Adjustment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue | $ 8,697 | $ 8,278 | $ 9,598 |
Partners’ equity: Common unitholders | 427,435 | 395,279 | $ 393,959 |
Prior to Adoption | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue | 9,598 | ||
Partners’ equity: Common unitholders | $ 393,959 | ||
Increase (Decrease) | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue | (1,320) | ||
Partners’ equity: Common unitholders | $ 1,320 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Deferred revenue recognized | $ 17,600 | $ 11,900 | $ 10,500 | ||||||||
Deferred revenue recognized. billed prior period | 3,300 | 5,600 | 7,800 | ||||||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 2,700 | ||||||||||
Revenue, Remaining Performance Obligation, Amount | $ 2,307,000 | 2,307,000 | |||||||||
Operating Lease, Lease Income | 278,600 | ||||||||||
Services revenue | 132,792 | $ 125,784 | $ 118,760 | $ 128,884 | $ 129,221 | $ 110,364 | $ 109,143 | $ 105,634 | 506,220 | $ 454,362 | $ 402,043 |
Shortfall Payments | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Deferred revenue | $ 1,800 | 1,800 | |||||||||
Service, Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Services revenue | $ 227,600 |
Revenues - Narrative, Remaining
Revenues - Narrative, Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | $ 2,307 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | 356 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | 308 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | 298 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | 271 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | 236 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations | $ 838 |
Revenues - Schedule of Contract
Revenues - Schedule of Contract Asset and Liability Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract asset | $ 1,818 | $ 0 |
Contract liability | $ (1,821) | $ (2,713) |
Revenues - Schedule of Future P
Revenues - Schedule of Future Performance Obligations (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 2,307 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 356 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 308 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 298 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 271 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 236 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Unfulfilled performance obligations | $ 838 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unfulfilled performance obligations, expected timing |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregated Revenue | $ 132,792 | $ 125,784 | $ 118,760 | $ 128,884 | $ 129,221 | $ 110,364 | $ 109,143 | $ 105,634 | $ 506,220 | $ 454,362 | $ 402,043 |
Pipelines | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregated Revenue | 283,507 | 235,040 | 232,634 | ||||||||
Terminals, tanks and loading racks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregated Revenue | 147,534 | 142,418 | 136,365 | ||||||||
Refinery processing units | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregated Revenue | $ 75,179 | $ 76,904 | $ 33,044 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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 | $ 488,310 | $ 525,120 |
6.5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate, senior notes | 6.50% | |
Reported Value Measurement [Member] | 6.0% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 495,900 | $ 495,308 |
Properties and Equipment (Detai
Properties and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | $ 2,069,706 | $ 2,023,232 | |
Less accumulated depreciation | 531,051 | 453,761 | |
Properties and equipment, net | 1,538,655 | 1,569,471 | |
Interest costs, capitalized during period | 312 | 1,004 | $ 702 |
Depreciation expense | 83,300 | 71,100 | 62,900 |
Asset abandonment costs | 1,000 | 300 | $ 600 |
Pipelines,terminals and tankage [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 1,571,338 | 1,541,722 | |
Land and right of way [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 86,298 | 86,484 | |
Refining assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 347,338 | 347,338 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | 23,482 | 12,029 | |
Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment, gross | $ 41,250 | $ 35,659 |
Intangible Assets (Details)
Intangible Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Components | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Expense | $ 14,500 | $ 7,574 | $ 6,949 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 14,000 | ||
Intangible Assets [Abstract] | |||
Intangible Assets, gross | 204,797 | 204,396 | |
Less accumulated amortization | 89,468 | 74,933 | |
Intangible assets, net | $ 115,329 | 129,463 | |
Basis in Transportation Agreements | Components | 0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $ 14,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 14,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 14,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 9,900 | ||
Alon transportation agreement | |||
Intangible Assets [Abstract] | |||
Intangible Assets, gross | 59,933 | 59,933 | |
HFC transportation agreement | |||
Intangible Assets [Abstract] | |||
Intangible Assets, gross | 75,131 | 75,131 | |
Other [Member] | |||
Intangible Assets [Abstract] | |||
Intangible Assets, gross | 69,683 | 69,282 | |
El Dorado [Member] | |||
Intangible Assets [Abstract] | |||
Intangible Assets, gross | $ 50 | $ 50 |
Employees, Retirement and Inc_3
Employees, Retirement and Incentive Plans Retirement and Benefit Plan Costs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Componentsshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Retirement and benefit costs | $ 6.9 | $ 5.9 | $ 5.7 |
Retirement costs | $ 3.1 | 2.7 | 2.6 |
Long-term incentive plan, components | Components | 4 | ||
Share-based Compensation Expense | $ 3 | $ 2.7 | $ 2.7 |
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 | 1,210,341 |
Employees, Retirement and Inc_4
Employees, Retirement and Incentive Plans Restricted Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at January 1, 2018 (nonvested), Beginning of Period | 119,009 | ||
Granted | 93,955 | ||
Vesting and transfer of full ownership to recipients | (72,537) | ||
Forfeited | (2,411) | ||
Outstanding at December 31, 2018 (nonvested), End of Period | 138,016 | 119,009 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at January 1, 2018 (nonvested), Beginning of Period | $ 34.77 | ||
Granted | 29.30 | ||
Vesting and transfer of full ownership to recipients | 34.20 | $ 35.59 | $ 32.16 |
Forfeited | 34.63 | ||
Outstanding at December 31, 2018 (nonvested), End of Period | $ 31.35 | $ 34.77 | |
Weighted average remaining contractual term (years) | 1 year 7 months | ||
Grant date fair value of vested units transferred to recipients | $ 2.5 | $ 2 | $ 2 |
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 Inc_5
Employees, Retirement and Incentive Plans Performance Units (Details) - USD ($) $ in Thousands, $ / shares in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement, Nonvested [Roll Forward] | ||||
Purchase of units for incentive grants | $ 0 | $ 0 | $ (3,521) | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement, Nonvested [Roll Forward] | ||||
Outstanding at January 1, 2018 (nonvested), Beginning of Period | 36,911 | |||
Granted | 19,120 | |||
Vesting and transfer of full ownership to recipients | (4,283) | |||
Outstanding at December 31, 2018 (nonvested), End of Period | 51,748 | 51,748 | 36,911 | |
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 | $ 100 | $ 100 | $ 1,100 | |
Weighted average fair value of units outstanding | $ 1.7 | $ 1.7 | ||
Total unrecognized compensation related to nonvested units | $ 900 | $ 900 | ||
Weighted average remaining contractual term (years) | 1 year 8 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 | 0.00% | |||
Range of performance units earned, based on performance period, maximum (percent) | 200.00% |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Expiration Date | Jul. 1, 2022 | |
Debt Instrument, Interest Rate at Period End | 4.238% | 3.734% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Maximum Capacity | $ 50 | |
Line of Credit Facility, Accordion Feature | 300 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement, maximum borrowing capacity | $ 1,400 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |
Minimum [Member] | Option AA [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Minimum [Member] | Option (b) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
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 | 1.50% | |
Maximum [Member] | Option (b) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Debt Senior Notes (Details)
Debt Senior Notes (Details) - USD ($) $ in Thousands | Jan. 04, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 22, 2017 | Jul. 19, 2016 |
Debt Instrument [Line Items] | ||||||
Loss on early extinguishment of debt | $ 0 | $ 12,225 | $ 0 | |||
Credit agreement restrictions to 2018 | $ 171,000 | |||||
6.5% Interest Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate, senior notes | 6.50% | |||||
6.5% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 300,000 | |||||
Extinguishment of Debt, Amount | 309,800 | |||||
Stated interest rate, senior notes | 6.50% | |||||
Loss on early extinguishment of debt | 12,200 | |||||
Loss on Extinguishment of Debt Due to Unamortized Discount | 2,400 | |||||
Redemption Premium | $ 9,800 | |||||
6.0% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 500,000 | 500,000 | $ 500,000 | $ 400,000 | ||
Stated interest rate, senior notes | 6.00% | |||||
Debt Instrument, Maturity Date | Jan. 1, 2024 | |||||
Senior Notes | $ 495,900 | 495,308 | $ 100,000 | |||
Debt Instrument, Unamortized Discount | $ 4,100 | $ 4,692 |
Debt Long-Term Debt (Details)
Debt Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 22, 2017 | Jan. 04, 2017 | Jul. 19, 2016 |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | $ 923,000 | $ 1,012,000 | |||
Total long-term debt | 1,418,900 | 1,507,308 | |||
6.0% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 500,000 | 500,000 | $ 500,000 | $ 400,000 | |
Unamortized discount | (4,100) | (4,692) | |||
Senior Notes | $ 495,900 | $ 495,308 | $ 100,000 | ||
6.5% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 300,000 |
Debt Interest Rate Risk Managem
Debt Interest Rate Risk Management (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 923,000 | $ 1,012,000 |
Debt instrument, effective interest rate | 4.238% | 3.734% |
Cash Flow Hedging [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 150,000 | |
Interest Rate Swap [Member] | Cash Flow Hedging, Added 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 150,000 |
Debt Interest Expense and Other
Debt Interest Expense and Other Debt Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest expense, debt | $ 72,211 | $ 59,452 | $ 53,254 |
Less capitalized interest | 312 | 1,004 | 702 |
Net interest expense | 71,899 | 58,448 | 52,552 |
Cash paid for interest | 69,112 | 62,395 | 38,530 |
6.0% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 30,000 | 25,813 | 10,811 |
6.5% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 0 | 0 | 19,507 |
Amortization discount and deferred debt issuance costs [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 3,041 | 3,063 | 3,246 |
Commitment Fees and Other [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | 1,904 | 1,648 | 2,069 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, debt | $ 37,266 | $ 28,928 | $ 17,621 |
Debt Debt Maturities by Year (D
Debt Debt Maturities by Year (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 923,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 500,000 |
Long-term Debt | $ 1,423,000 |
Debt Debt Capitalized Leases (D
Debt Debt Capitalized Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $ 5,800 | $ 5,100 |
Capital Leases, Accumulated Depreciation | 4,300 | $ 3,300 |
Capital Lease Obligations [Member] | ||
Operating Leased Assets [Line Items] | ||
Capital lease obligations, payments in next twelve months | 1,069 | |
Capital lease obligations, payments in year two | 589 | |
Capital lease obligations, payments in year three | 140 | |
Capital Leases, Future Minimum Payments Due | 1,798 | |
Capital leases interest included in payments | (109) | |
Capital Leases, Future Minimum Payments, Net Minimum Payments | $ 1,689 | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 33 months | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 48 months |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long-term Purchase Commitment [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 7,252 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 7,196 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 7,147 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 7,127 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 7,045 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 24,619 | ||
Operating Leases, Future Minimum Payments Due | 60,386 | ||
Operating Leases, Rent Expense | 9,800 | $ 9,100 | $ 8,500 |
Operating Leases, Rent Expense, Sublease Rentals | 1,500 | ||
Site Service Commitments | |||
Long-term Purchase Commitment [Line Items] | |||
Site Service Agreements, Future Minimum Payments Due, Current Year | 9,360 | ||
Site Service Agreements, Future Minimum Payments, Due in Two Years | 7,683 | ||
Site Service Agreements, Future Minimum Payments, Due in Three Years | 7,689 | ||
Site Service Agreements, Future Minimum Payments, Due in Four Years | 7,069 | ||
Site Service Agreements, Future Minimum Payments, Due in Five Years | 5,536 | ||
Site Service Agreements, Future Minimum Payments, Due Thereafter | 223,567 | ||
Site Service Agreements, Future Minimum Payments Due | $ 260,904 |
Significant Customers (Details)
Significant Customers (Details) - Customers | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 86.00% | ||
Concentration risk, number of significant customers | 2 | ||
HFC [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 79.00% | 83.00% | 83.00% |
Alon [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 7.00% | 8.00% | 8.00% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||||||||
Revenues | $ 132,792 | $ 125,784 | $ 118,760 | $ 128,884 | $ 129,221 | $ 110,364 | $ 109,143 | $ 105,634 | $ 506,220 | $ 454,362 | $ 402,043 |
Due from Affiliates | 46,786 | 51,501 | 46,786 | 51,501 | |||||||
Due to Affiliate, Current | $ 14,222 | 7,725 | 14,222 | 7,725 | |||||||
Operating Lease, Lease Income | $ 2,000 | 500 | 500 | ||||||||
Ownership percentage in equity method investment | 50.00% | 50.00% | |||||||||
Property, Plant and Equipment, Additions | $ 54,141 | 290,256 | 103,823 | ||||||||
Payments to Acquire Productive Assets | 0 | 317,500 | |||||||||
Common Unit, Issued | 37,250,000 | 37,250,000 | |||||||||
Limited partner distribution | $ 2,500 | $ 269,284 | 206,846 | 143,796 | |||||||
HFC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Revenues | 397,808 | 377,136 | 333,116 | ||||||||
Affiliates | 3,100 | 4,800 | 6,100 | ||||||||
Reimbursements paid to related parties | 10,000 | 7,200 | 14,000 | ||||||||
Cash Distribution Paid | 146,800 | 130,700 | 105,200 | ||||||||
Due from Affiliates | 46,800 | 51,500 | 46,800 | 51,500 | |||||||
Due to Affiliate, Current | 14,200 | $ 7,700 | 14,200 | 7,700 | |||||||
Deferred revenue, increase from certain shortfall billings | 1,700 | 4,400 | |||||||||
HFC [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Minimum Annualized Payments Receivable | $ 314,000 | 314,000 | |||||||||
Annual Administrative Fee [Member] | HFC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Costs and Expenses, Related Party | 2,500 | ||||||||||
Reimbursements Paid [Member] | HFC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Expenses resulting from agreement with related party | 51,700 | $ 46,600 | $ 40,900 | ||||||||
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% | 50.00% | |||||||||
Payments to Acquire Productive Assets | $ 278,000 |
Partners' Equity Income Alloc_2
Partners' Equity Income Allocations and Cash Distributions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 25, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Feb. 06, 2018 |
Capital Unit [Line Items] | |||||
Partners' capital account, units held by controlling interest | 59,630,030 | ||||
Ownership percentage, controlling interest | 57.00% | 57.00% | |||
Partners' Capital Account, Units, Sold in Private Placement | 3,700,000 | 3,420,000 | |||
Sale of Stock, Price Per Share | $ 29.73 | $ 29.73 | $ 30.18 | ||
Proceeds from Issuance of Private Placement | $ 110 | $ 110 | $ 103 | $ 103 | |
Common Unit Issuance Program | $ 200 | ||||
Common Unit, Issued | 3,700,000 | 2,413,153 | |||
Proceeds from Issuance or Sale of Equity | $ 82.3 |
Partners' Equity Income Alloc_3
Partners' Equity Income Allocations and Cash Distributions (Interest Allocation in Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Partners' Capital [Abstract] | |||
General partner interest in net income | $ 0 | $ 919 | $ 3,165 |
General partner incentive distribution | 0 | 34,128 | 54,008 |
Allocation of net loss attributable to Predecessor | 0 | 0 | (10,657) |
Net income (Loss) Allocated to Partners After Predecessor Portion | $ 0 | $ 35,047 | $ 46,516 |
Partners' Equity Income Alloc_4
Partners' Equity Income Allocations and Cash Distributions (Cash Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 24, 2019 |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||||
Distribution of Available Cash to Unitholders, Period | 45 days | ||||||||||||
Partner Distributions | |||||||||||||
General partner interest in distribution | $ 0 | $ 2,335 | $ 4,088 | ||||||||||
General partner incentive distribution | 0 | 34,128 | 54,008 | ||||||||||
Total general partner distribution | 0 | 36,463 | 58,096 | ||||||||||
Limited partner distribution | $ 2,500 | 269,284 | 206,846 | 143,796 | |||||||||
Total regular quarterly cash distribution | $ 269,284 | $ 243,309 | $ 201,892 | ||||||||||
Cash distribution per unit applicable to limited partners | $ 0.6675 | $ 0.6650 | $ 0.6600 | $ 0.6550 | $ 0.6500 | $ 0.6450 | $ 0.6325 | $ 0.6200 | $ 2.6475 | $ 2.5475 | $ 2.3625 | ||
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% | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |||||||||||||
Partners' Capital, Distribution Amount Per Share | $ 0 | ||||||||||||
Incentive Distribution, Date | Feb. 14, 2019 | ||||||||||||
Distribution Made to Limited Partner, Date of Record | Feb. 4, 2019 | ||||||||||||
Partner Distributions | |||||||||||||
Limited partner distribution | $ 2,500 |
Net Income Per Limited Partne_3
Net Income Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Common Unit, Issued | 37,250,000 | 37,250,000 | |||||||||
General Partners' Capital Account, Period Distribution Amount | $ 0 | $ (36,463) | $ (58,096) | ||||||||
Limited partner distribution | $ (2,500) | (269,284) | (206,846) | (143,796) | |||||||
Partners Distributions | 269,284 | 243,309 | 201,892 | ||||||||
Distributions in Excess of Period Net Income | (90,437) | (48,269) | (43,651) | ||||||||
Net (Income) Loss Attributable to Partnership | $ 178,847 | $ 195,040 | $ 158,241 | ||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 105,042,000 | 70,291,000 | 59,872,000 | ||||||||
Net Income (Loss) Per Outstanding Limited Partnership Unit Basic and Diluted | $ 0.45 | $ 0.43 | $ 0.38 | $ 0.44 | $ 0.96 | $ 0.66 | $ 0.36 | $ 0.13 | $ 1.70 | $ 2.28 | $ 1.69 |
Limited Partner [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Distributions in Excess of Period Net Income | $ (90,437) | $ (46,853) | $ (42,778) | ||||||||
Net (Income) Loss Attributable to Partnership | 178,847 | 159,993 | 101,018 | ||||||||
General Partner [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Distributions in Excess of Period Net Income | 0 | (1,416) | (873) | ||||||||
Net (Income) Loss Attributable to Partnership | $ 0 | $ 35,047 | $ 57,223 |
Environmental (Narrative) (Deta
Environmental (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Environmental Exit Cost [Line Items] | |||
Environmental Remediation Expense | $ 0.8 | $ 0.5 | $ 0.7 |
Accrual for Environmental Loss Contingencies | 6.3 | 6.5 | |
Accrued Environmental Loss Contingencies, Noncurrent | 4.3 | 5 | |
Affiliated Entity [Member] | |||
Environmental Exit Cost [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 0.5 | $ 0.8 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 132,792 | $ 125,784 | $ 118,760 | $ 128,884 | $ 129,221 | $ 110,364 | $ 109,143 | $ 105,634 | $ 506,220 | $ 454,362 | $ 402,043 |
Operating Income | 65,971 | 62,923 | 56,946 | 64,418 | 67,200 | 51,736 | 52,486 | 51,734 | 250,258 | 223,156 | 195,097 |
Segment operating income | 261,298 | 237,479 | 207,629 | ||||||||
Unallocated general and administrative expenses | (11,040) | (14,323) | (12,532) | ||||||||
Interest and financing costs, net | (69,791) | (57,957) | (52,112) | ||||||||
Loss on early extinguishment of debt | 0 | (12,225) | 0 | ||||||||
Equity in earnings of equity method investments | 5,825 | 12,510 | 14,213 | ||||||||
Other Nonrecurring (Income) Expense | 121 | 36,676 | 677 | ||||||||
Income before Income Taxes | 49,596 | $ 46,573 | $ 41,527 | $ 48,717 | 88,200 | $ 42,992 | $ 42,983 | $ 27,985 | 186,413 | 202,160 | 157,875 |
Capital expenditures | 54,141 | 290,256 | 103,823 | ||||||||
Identifiable assets | 2,102,540 | 2,154,114 | 2,102,540 | 2,154,114 | |||||||
Goodwill | 270,336 | 266,716 | 270,336 | 266,716 | |||||||
Payments to Acquire Businesses, Gross | 5,051 | 0 | 44,119 | ||||||||
Other Payments to Acquire Businesses | 1,790 | 245,446 | 0 | ||||||||
Affiliated Entity [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 322,629 | 300,232 | 300,072 | ||||||||
Pipelines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 108,412 | 77,226 | 68,927 | ||||||||
Operating Income | 230,116 | 204,970 | 204,923 | ||||||||
Capital expenditures | 53,957 | 289,993 | 59,704 | ||||||||
Identifiable assets | 1,692,282 | 1,728,074 | 1,692,282 | 1,728,074 | |||||||
Refining [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 75,179 | 76,904 | 33,044 | ||||||||
Operating Income | 31,182 | 32,509 | 2,706 | ||||||||
Capital expenditures | 184 | 263 | $ 44,119 | ||||||||
Identifiable assets | 312,888 | 328,585 | 312,888 | 328,585 | |||||||
Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | $ 97,370 | $ 97,455 | $ 97,370 | $ 97,455 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | ||||||||||||
Revenues | $ 132,792 | $ 125,784 | $ 118,760 | $ 128,884 | $ 129,221 | $ 110,364 | $ 109,143 | $ 105,634 | $ 506,220 | $ 454,362 | $ 402,043 | |
Operating Income | 65,971 | 62,923 | 56,946 | 64,418 | 67,200 | 51,736 | 52,486 | 51,734 | 250,258 | 223,156 | 195,097 | |
Income before Income Taxes | 49,596 | 46,573 | 41,527 | 48,717 | 88,200 | 42,992 | 42,983 | 27,985 | 186,413 | 202,160 | 157,875 | |
Net income | 49,719 | 46,534 | 41,499 | 48,635 | 88,115 | 43,061 | 42,856 | 27,879 | 186,387 | 201,911 | 157,590 | |
Net income attributable to Holly Energy Partners | $ 4,100 | $ 47,533 | $ 45,003 | $ 40,143 | $ 46,168 | $ 86,071 | $ 42,071 | $ 41,335 | $ 25,563 | $ 178,847 | $ 195,040 | $ 158,241 |
Limited partners’ per unit interest in earnings—basic and diluted: | $ 0.45 | $ 0.43 | $ 0.38 | $ 0.44 | $ 0.96 | $ 0.66 | $ 0.36 | $ 0.13 | $ 1.70 | $ 2.28 | $ 1.69 | |
Distributions per Limited Partners Unit | $ 0.6675 | $ 0.6650 | $ 0.6600 | $ 0.6550 | $ 0.6500 | $ 0.6450 | $ 0.6325 | $ 0.6200 | $ 2.6475 | $ 2.5475 | $ 2.3625 |
Supplemental Guarantor _ Non-_3
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidated Balance Sheet (Details) - USD ($) | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | |||||
Cash and cash equivalents | $ 3,045,000 | $ 7,776,000 | $ 3,657,000 | $ 15,013,000 | |
Accounts receivable | 59,118,000 | 64,304,000 | |||
Prepaid and other current assets | 4,311,000 | 2,311,000 | |||
Total current assets | 66,474,000 | 74,391,000 | |||
Properties and equipment, net | 1,538,655,000 | 1,569,471,000 | |||
Investments in subsidiaries | 0 | 0 | |||
Intangible assets, net | 115,329,000 | 129,463,000 | |||
Goodwill | 270,336,000 | 266,716,000 | |||
Equity Method Investments | 83,840,000 | 85,279,000 | |||
Other assets | 27,906,000 | 28,794,000 | |||
Total assets | 2,102,540,000 | 2,154,114,000 | |||
Current liabilities: | |||||
Accrued interest | 13,302,000 | 13,256,000 | |||
Deferred revenue | 8,697,000 | $ 8,278,000 | 9,598,000 | ||
Accrued property taxes | 1,779,000 | 4,652,000 | |||
Other current liabilities | 3,462,000 | 5,707,000 | |||
Total current liabilities | 57,897,000 | 55,485,000 | |||
Long-term debt | 1,418,900,000 | 1,507,308,000 | |||
Other long-term liabilities | 15,307,000 | 15,843,000 | |||
Deferred Revenue | 48,714,000 | 47,272,000 | |||
Class B unit | 46,161,000 | 43,141,000 | |||
Equity - partners | 427,435,000 | 393,959,000 | |||
Equity - noncontrolling interest | 88,126,000 | 91,106,000 | |||
Total liabilities and equity | 2,102,540,000 | 2,154,114,000 | |||
Accounts Payable, Current | 30,657,000 | 22,272,000 | |||
Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Accounts receivable | (252,000) | (182,000) | |||
Prepaid and other current assets | 0 | 0 | |||
Total current assets | (252,000) | (182,000) | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | (2,114,794,000) | (2,175,604,000) | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | (2,115,046,000) | (2,175,786,000) | |||
Current liabilities: | |||||
Accrued interest | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (252,000) | (182,000) | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | (2,114,794,000) | (2,175,604,000) | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | (2,115,046,000) | (2,175,786,000) | |||
Accounts Payable, Current | (252,000) | (182,000) | |||
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 | 217,000 | 13,000 | |||
Total current assets | 219,000 | 15,000 | |||
Properties and equipment, net | 0 | 0 | |||
Investments in subsidiaries | 1,850,416,000 | 1,902,285,000 | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 9,291,000 | 11,753,000 | |||
Total assets | 1,859,926,000 | 1,914,053,000 | |||
Current liabilities: | |||||
Accrued interest | 13,302,000 | 12,500,000 | |||
Deferred revenue | 0 | 0 | |||
Accrued property taxes | 0 | 0 | |||
Other current liabilities | 29,000 | 0 | |||
Total current liabilities | 13,331,000 | 12,500,000 | |||
Long-term debt | 1,418,900,000 | 1,507,308,000 | |||
Other long-term liabilities | 260,000 | 286,000 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | 427,435,000 | 393,959,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 1,859,926,000 | 1,914,053,000 | |||
Accounts Payable, Current | 0 | 0 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 511,000 | 301,000 | 5,452,000 | |
Accounts receivable | 53,376,000 | 59,448,000 | |||
Prepaid and other current assets | 3,542,000 | 2,016,000 | |||
Total current assets | 56,918,000 | 61,975,000 | |||
Properties and equipment, net | 1,193,181,000 | 1,213,626,000 | |||
Investments in subsidiaries | 264,378,000 | 273,319,000 | |||
Intangible assets, net | 115,329,000 | 129,463,000 | |||
Goodwill | 270,336,000 | 266,716,000 | |||
Equity Method Investments | 83,840,000 | 85,279,000 | |||
Other assets | 18,615,000 | 17,041,000 | |||
Total assets | 2,002,597,000 | 2,047,419,000 | |||
Current liabilities: | |||||
Accrued interest | 0 | 756,000 | |||
Deferred revenue | 8,065,000 | 8,540,000 | |||
Accrued property taxes | 744,000 | 3,431,000 | |||
Other current liabilities | 3,429,000 | 5,707,000 | |||
Total current liabilities | 42,563,000 | 39,362,000 | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 14,743,000 | 15,359,000 | |||
Deferred Revenue | 48,714,000 | 47,272,000 | |||
Class B unit | 46,161,000 | 43,141,000 | |||
Equity - partners | 1,850,416,000 | 1,902,285,000 | |||
Equity - noncontrolling interest | 0 | 0 | |||
Total liabilities and equity | 2,002,597,000 | 2,047,419,000 | |||
Accounts Payable, Current | 30,325,000 | 20,928,000 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 3,043,000 | 7,263,000 | $ 3,354,000 | $ 9,559,000 | |
Accounts receivable | 5,994,000 | 5,038,000 | |||
Prepaid and other current assets | 552,000 | 282,000 | |||
Total current assets | 9,589,000 | 12,583,000 | |||
Properties and equipment, net | 345,474,000 | 355,845,000 | |||
Investments in subsidiaries | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Equity Method Investments | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | 355,063,000 | 368,428,000 | |||
Current liabilities: | |||||
Accrued interest | 0 | 0 | |||
Deferred revenue | 632,000 | 1,058,000 | |||
Accrued property taxes | 1,035,000 | 1,221,000 | |||
Other current liabilities | 4,000 | 0 | |||
Total current liabilities | 2,255,000 | 3,805,000 | |||
Long-term debt | 0 | 0 | |||
Other long-term liabilities | 304,000 | 198,000 | |||
Deferred Revenue | 0 | 0 | |||
Class B unit | 0 | 0 | |||
Equity - partners | 264,378,000 | 273,319,000 | |||
Equity - noncontrolling interest | 88,126,000 | 91,106,000 | |||
Total liabilities and equity | 355,063,000 | 368,428,000 | |||
Accounts Payable, Current | $ 584,000 | $ 1,526,000 |
Supplemental Guarantor _ Non-_4
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | ||||||||||||
Revenues | $ 132,792 | $ 125,784 | $ 118,760 | $ 128,884 | $ 129,221 | $ 110,364 | $ 109,143 | $ 105,634 | $ 506,220 | $ 454,362 | $ 402,043 | |
Operating costs and expenses [Abstract] | ||||||||||||
Operations (exclusive of depreciation and amortization) | 146,430 | 137,605 | 123,986 | |||||||||
Depreciation and amortization | 98,492 | 79,278 | 70,428 | |||||||||
General and administrative | 11,040 | 14,323 | 12,532 | |||||||||
Total operating costs and expenses | 255,962 | 231,206 | 206,946 | |||||||||
Operating Income | 65,971 | 62,923 | 56,946 | 64,418 | 67,200 | 51,736 | 52,486 | 51,734 | 250,258 | 223,156 | 195,097 | |
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||
Equity in earnings of equity method investments | 5,825 | 12,510 | 14,213 | |||||||||
Interest Income | 2,108 | 491 | 440 | |||||||||
Interest expense | (71,899) | (58,448) | (52,552) | |||||||||
Loss on early extinguishment of debt | 0 | (12,225) | 0 | |||||||||
Remeasurement gain on preexisting equity interests | 36,300 | 0 | 36,254 | 0 | ||||||||
Gain on sale of assets and other | 121 | 422 | 677 | |||||||||
Total other income (expense) | (63,845) | (20,996) | (37,222) | |||||||||
Income before Income Taxes | 49,596 | 46,573 | 41,527 | 48,717 | 88,200 | 42,992 | 42,983 | 27,985 | 186,413 | 202,160 | 157,875 | |
State income tax expense | (26) | (249) | (285) | |||||||||
Net income | 186,387 | 201,911 | 157,590 | |||||||||
Allocation of net loss attributable to Predecessor | 0 | 0 | 10,657 | |||||||||
Allocation of net income attributable to noncontrolling interest | (7,540) | (6,871) | (10,006) | |||||||||
Net income attributable to Holly Energy Partners | $ 4,100 | $ 47,533 | $ 45,003 | $ 40,143 | $ 46,168 | $ 86,071 | $ 42,071 | $ 41,335 | $ 25,563 | 178,847 | 195,040 | 158,241 |
Other comprehensive income (loss) | 0 | (91) | (99) | |||||||||
Comprehensive income attributable to the partners | 178,847 | 194,949 | 158,142 | |||||||||
SLC Pipeline [Member] | ||||||||||||
Operating costs and expenses [Abstract] | ||||||||||||
Equity in earnings of equity method investments | 5,825 | 12,510 | 14,213 | |||||||||
Parent [Member] | ||||||||||||
Revenues: | ||||||||||||
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 | 3,535 | 4,170 | 3,804 | |||||||||
Total operating costs and expenses | 3,535 | 4,170 | 3,804 | |||||||||
Operating Income | (3,535) | (4,170) | (3,804) | |||||||||
Equity in earnings of subsidiaries | 254,398 | 254,695 | 193,432 | |||||||||
Interest Income | 0 | 0 | 0 | |||||||||
Interest expense | (72,061) | (43,260) | (31,387) | |||||||||
Loss on early extinguishment of debt | (12,225) | |||||||||||
Remeasurement gain on preexisting equity interests | 0 | |||||||||||
Gain on sale of assets and other | 45 | 0 | ||||||||||
Total other income (expense) | 182,382 | 199,210 | 162,045 | |||||||||
Income before Income Taxes | 178,847 | 195,040 | 158,241 | |||||||||
State income tax expense | 0 | 0 | 0 | |||||||||
Net income | 178,847 | 195,040 | 158,241 | |||||||||
Allocation of net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||||||
Net income attributable to Holly Energy Partners | 178,847 | 195,040 | 158,241 | |||||||||
Other comprehensive income (loss) | 0 | (91) | (99) | |||||||||
Comprehensive income attributable to the partners | 178,847 | 194,949 | 158,142 | |||||||||
Parent [Member] | SLC Pipeline [Member] | ||||||||||||
Operating costs and expenses [Abstract] | ||||||||||||
Equity in earnings of equity method investments | 0 | 0 | 0 | |||||||||
Guarantor Subsidiaries [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 458,255 | 406,795 | 354,375 | |||||||||
Operating costs and expenses [Abstract] | ||||||||||||
Operations (exclusive of depreciation and amortization) | 133,156 | 122,619 | 111,181 | |||||||||
Depreciation and amortization | 81,799 | 62,889 | 55,083 | |||||||||
General and administrative | 7,505 | 10,153 | 8,728 | |||||||||
Total operating costs and expenses | 222,460 | 195,661 | 174,992 | |||||||||
Operating Income | 235,795 | 211,134 | 179,383 | |||||||||
Equity in earnings of subsidiaries | 13,559 | 12,148 | 14,634 | |||||||||
Interest Income | 2,032 | 491 | 421 | |||||||||
Interest expense | 162 | (15,188) | (21,165) | |||||||||
Loss on early extinguishment of debt | 0 | |||||||||||
Remeasurement gain on preexisting equity interests | 36,254 | |||||||||||
Gain on sale of assets and other | 71 | 417 | 702 | |||||||||
Total other income (expense) | 21,649 | 46,632 | 8,805 | |||||||||
Income before Income Taxes | 257,444 | 257,766 | 188,188 | |||||||||
State income tax expense | (26) | (249) | (285) | |||||||||
Net income | 257,418 | 257,517 | 187,903 | |||||||||
Allocation of net loss attributable to Predecessor | 10,657 | |||||||||||
Allocation of net income attributable to noncontrolling interest | (3,020) | (2,822) | (5,128) | |||||||||
Net income attributable to Holly Energy Partners | 254,398 | 254,695 | 193,432 | |||||||||
Other comprehensive income (loss) | 0 | (91) | (99) | |||||||||
Comprehensive income attributable to the partners | 254,398 | 254,604 | 193,333 | |||||||||
Guarantor Subsidiaries [Member] | SLC Pipeline [Member] | ||||||||||||
Operating costs and expenses [Abstract] | ||||||||||||
Equity in earnings of equity method investments | 5,825 | 12,510 | 14,213 | |||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 47,965 | 47,567 | 47,668 | |||||||||
Operating costs and expenses [Abstract] | ||||||||||||
Operations (exclusive of depreciation and amortization) | 13,274 | 14,986 | 12,805 | |||||||||
Depreciation and amortization | 16,693 | 16,389 | 15,345 | |||||||||
General and administrative | 0 | 0 | 0 | |||||||||
Total operating costs and expenses | 29,967 | 31,375 | 28,150 | |||||||||
Operating Income | 17,998 | 16,192 | 19,518 | |||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||
Interest Income | 76 | 0 | 19 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | 0 | |||||||||||
Remeasurement gain on preexisting equity interests | 0 | |||||||||||
Gain on sale of assets and other | 5 | 5 | (25) | |||||||||
Total other income (expense) | 81 | 5 | (6) | |||||||||
Income before Income Taxes | 18,079 | 16,197 | 19,512 | |||||||||
State income tax expense | 0 | 0 | 0 | |||||||||
Net income | 18,079 | 16,197 | 19,512 | |||||||||
Allocation of net income attributable to noncontrolling interest | (4,520) | (4,049) | (4,878) | |||||||||
Net income attributable to Holly Energy Partners | 13,559 | 12,148 | 14,634 | |||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | |||||||||
Comprehensive income attributable to the partners | 13,559 | 12,148 | 14,634 | |||||||||
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: | ||||||||||||
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 | 0 | 0 | 0 | |||||||||
Total operating costs and expenses | 0 | 0 | 0 | |||||||||
Operating Income | 0 | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | (267,957) | (266,843) | (208,066) | |||||||||
Interest Income | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | 0 | |||||||||||
Remeasurement gain on preexisting equity interests | 0 | |||||||||||
Gain on sale of assets and other | 0 | 0 | ||||||||||
Total other income (expense) | (267,957) | (266,843) | (208,066) | |||||||||
Income before Income Taxes | (267,957) | (266,843) | (208,066) | |||||||||
State income tax expense | 0 | 0 | 0 | |||||||||
Net income | (267,957) | (266,843) | (208,066) | |||||||||
Allocation of net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||||||
Net income attributable to Holly Energy Partners | (267,957) | (266,843) | (208,066) | |||||||||
Other comprehensive income (loss) | 0 | 91 | 99 | |||||||||
Comprehensive income attributable to the partners | (267,957) | (266,752) | (207,967) | |||||||||
Eliminations [Member] | SLC Pipeline [Member] | ||||||||||||
Operating costs and expenses [Abstract] | ||||||||||||
Equity in earnings of equity method investments | 0 | 0 | 0 | |||||||||
Affiliated Entity [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 397,808 | 377,136 | 333,116 | |||||||||
Affiliated Entity [Member] | Parent [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Affiliated Entity [Member] | Guarantor Subsidiaries [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 373,576 | 351,395 | 307,049 | |||||||||
Affiliated Entity [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 24,232 | 25,741 | 26,067 | |||||||||
Affiliated Entity [Member] | Eliminations [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Third-Party Customer [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 108,412 | 77,226 | 68,927 | |||||||||
Third-Party Customer [Member] | Parent [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Third-Party Customer [Member] | Guarantor Subsidiaries [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 84,679 | 55,400 | 47,326 | |||||||||
Third-Party Customer [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | 23,733 | 21,826 | 21,601 | |||||||||
Third-Party Customer [Member] | Eliminations [Member] | ||||||||||||
Revenues: | ||||||||||||
Revenues | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor _ Non-_5
Supplemental Guarantor / Non-Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 295,213 | $ 238,487 | $ 243,548 |
Cash flows from investing activities | |||
Additions to property and equipment | (47,300) | (44,810) | (59,704) |
Purchase of controlling interests in SLC Pipeline and Frontier Aspen | (1,790) | (245,446) | 0 |
Acquisition of tanks and refinery processing units | (5,051) | 0 | (44,119) |
Purchase of investment in Frontier Pipeline | (42,627) | ||
Proceeds from Sale of Property, Plant, and Equipment | 210 | 849 | 427 |
Distributions in Excess of Equity in Earnings of Equity Investments | 1,588 | 3,134 | 2,993 |
Distributions from UNEV in excess of earnings | 0 | 0 | 0 |
Net cash used for investing activities | (52,343) | (286,273) | (143,030) |
Cash flows from financing activities | |||
Net Borrowings under Credit Agreement | (89,000) | 459,000 | (159,000) |
Net Intercompany Financing Activities | 0 | 0 | 0 |
Proceeds from Issuance of Senior Long-term Debt | 0 | 101,750 | 394,000 |
Redemption of notes | 0 | (309,750) | 0 |
Proceeds from Issuance of common units | 114,771 | 52,110 | 125,870 |
Contributions from general partner | (882) | (1,072) | (2,577) |
Proceeds from (Payments to) Noncontrolling Interests | (7,500) | (6,500) | (5,750) |
Distribution Made to Limited Partner, Cash Distributions Paid | (264,979) | (234,575) | (192,037) |
Payments to Acquire Other Investments | 0 | (103) | 0 |
Purchase of units for incentive grants | 0 | 0 | (3,521) |
Deferred financing costs | (6) | (9,382) | (3,995) |
Payments for (Proceeds from) Productive Assets | 0 | 0 | (1,245) |
Units withheld for tax withholding obligations | (568) | (605) | (800) |
Other | (1,213) | (1,112) | (1,735) |
Net cash provided by (used) by financing activities | (247,601) | 51,905 | (111,874) |
Increase (decrease) for the year | (4,731) | 4,119 | (11,356) |
Beginning of period | 7,776 | 3,657 | 15,013 |
End of period | 3,045 | 7,776 | 3,657 |
Payments to Acquire Productive Assets | 0 | (317,500) | |
Proceeds from Contributions from Parent | 51,262 | ||
Payments to Acquire Other Productive Assets | 0 | ||
Woods Cross [Member] | |||
Cash flows from financing activities | |||
Proceeds from Contributions from Parent | 0 | 0 | 51,262 |
Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (13,559) | (12,148) | (14,634) |
Cash flows from investing activities | |||
Additions to property and equipment | 0 | 0 | 0 |
Purchase of controlling interests in SLC Pipeline and Frontier Aspen | 0 | 0 | |
Acquisition of tanks and refinery processing units | 0 | 0 | |
Purchase of investment in Frontier Pipeline | 0 | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 0 |
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 |
Distributions from UNEV in excess of earnings | (8,941) | 7,352 | (2,616) |
Net cash used for investing activities | (8,941) | (7,352) | (2,616) |
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 Long-term Debt | 0 | 0 | |
Redemption of notes | 0 | ||
Proceeds from Issuance of common units | 0 | 0 | 0 |
Contributions from general partner | 0 | 0 | 0 |
Proceeds from (Payments to) Noncontrolling Interests | 22,500 | 19,500 | 17,250 |
Distribution Made to Limited Partner, Cash Distributions Paid | 0 | 0 | 0 |
Payments to Acquire Other Investments | 0 | ||
Purchase of units for incentive grants | 0 | ||
Deferred financing costs | 0 | 0 | 0 |
Payments for (Proceeds from) Productive Assets | 0 | ||
Units withheld for tax withholding obligations | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash provided by (used) by financing activities | 22,500 | 19,500 | 17,250 |
Increase (decrease) for the year | 0 | 0 | 0 |
Beginning of period | 0 | 0 | 0 |
End of period | 0 | 0 | 0 |
Payments to Acquire Productive Assets | 0 | ||
Proceeds from Contributions from Parent | 0 | ||
Payments to Acquire Other Productive Assets | 0 | ||
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (68,693) | (51,235) | (19,641) |
Cash flows from investing activities | |||
Additions to property and equipment | 0 | 0 | 0 |
Purchase of controlling interests in SLC Pipeline and Frontier Aspen | 0 | 0 | |
Acquisition of tanks and refinery processing units | 0 | 0 | |
Purchase of investment in Frontier Pipeline | 0 | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 0 |
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 |
Distributions from UNEV in excess of earnings | 0 | 0 | 0 |
Net cash used for investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Net Borrowings under Credit Agreement | (89,000) | 1,012,000 | 0 |
Net Intercompany Financing Activities | 307,587 | (561,675) | (302,600) |
Proceeds from Issuance of Senior Long-term Debt | 101,750 | 394,000 | |
Redemption of notes | (309,750) | ||
Proceeds from Issuance of common units | 114,771 | 52,100 | 125,870 |
Contributions from general partner | (882) | (1,440) | (2,577) |
Proceeds from (Payments to) Noncontrolling Interests | 0 | 0 | 0 |
Distribution Made to Limited Partner, Cash Distributions Paid | (264,979) | (234,575) | (192,037) |
Payments to Acquire Other Investments | (103) | ||
Purchase of units for incentive grants | (3,521) | ||
Deferred financing costs | 0 | (9,347) | (910) |
Payments for (Proceeds from) Productive Assets | 0 | ||
Units withheld for tax withholding obligations | (568) | (605) | (800) |
Other | 0 | 0 | (450) |
Net cash provided by (used) by financing activities | 68,693 | 51,235 | 19,641 |
Increase (decrease) for the year | 0 | 0 | 0 |
Beginning of period | 2 | 2 | 2 |
End of period | 2 | 2 | 2 |
Payments to Acquire Productive Assets | (30,378) | ||
Proceeds from Contributions from Parent | (3,397) | ||
Payments to Acquire Other Productive Assets | 31,287 | ||
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 345,378 | 268,978 | 245,771 |
Cash flows from investing activities | |||
Additions to property and equipment | (41,031) | (41,827) | (44,447) |
Purchase of controlling interests in SLC Pipeline and Frontier Aspen | (1,790) | (245,446) | |
Acquisition of tanks and refinery processing units | (5,013) | (44,119) | |
Purchase of investment in Frontier Pipeline | (42,627) | ||
Proceeds from Sale of Property, Plant, and Equipment | 210 | 849 | 427 |
Distributions in Excess of Equity in Earnings of Equity Investments | 1,588 | 3,134 | 2,993 |
Distributions from UNEV in excess of earnings | 8,941 | 7,352 | 2,616 |
Net cash used for investing activities | (37,095) | (275,938) | (125,157) |
Cash flows from financing activities | |||
Net Borrowings under Credit Agreement | 0 | (553,000) | (159,000) |
Net Intercompany Financing Activities | (307,587) | 561,675 | 302,600 |
Proceeds from Issuance of Senior Long-term Debt | 0 | 0 | |
Redemption of notes | 0 | ||
Proceeds from Issuance of common units | 0 | 10 | 0 |
Contributions from general partner | 368 | 0 | |
Proceeds from (Payments to) Noncontrolling Interests | 0 | 0 | 0 |
Distribution Made to Limited Partner, Cash Distributions Paid | 0 | 0 | 0 |
Payments to Acquire Other Investments | 0 | ||
Purchase of units for incentive grants | 0 | ||
Deferred financing costs | 6 | (35) | (3,085) |
Payments for (Proceeds from) Productive Assets | (1,245) | ||
Units withheld for tax withholding obligations | 0 | 0 | 0 |
Other | 1,213 | (1,112) | (1,285) |
Net cash provided by (used) by financing activities | (308,794) | 7,170 | (125,765) |
Increase (decrease) for the year | (511) | 210 | (5,151) |
Beginning of period | 511 | 301 | 5,452 |
End of period | 0 | 511 | 301 |
Payments to Acquire Productive Assets | (287,122) | ||
Proceeds from Contributions from Parent | 54,659 | ||
Payments to Acquire Other Productive Assets | (31,287) | ||
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 32,087 | 32,892 | 32,052 |
Cash flows from investing activities | |||
Additions to property and equipment | (6,269) | (2,983) | (15,257) |
Purchase of controlling interests in SLC Pipeline and Frontier Aspen | 0 | 0 | |
Acquisition of tanks and refinery processing units | (38) | 0 | |
Purchase of investment in Frontier Pipeline | 0 | ||
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 0 |
Distributions in Excess of Equity in Earnings of Equity Investments | 0 | 0 | 0 |
Distributions from UNEV in excess of earnings | 0 | 0 | 0 |
Net cash used for investing activities | (6,307) | (2,983) | (15,257) |
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 Long-term Debt | 0 | 0 | |
Redemption of notes | 0 | ||
Proceeds from Issuance of common units | 0 | 0 | 0 |
Contributions from general partner | 0 | 0 | 0 |
Proceeds from (Payments to) Noncontrolling Interests | (30,000) | (26,000) | (23,000) |
Distribution Made to Limited Partner, Cash Distributions Paid | 0 | 0 | 0 |
Payments to Acquire Other Investments | 0 | ||
Purchase of units for incentive grants | 0 | ||
Deferred financing costs | 0 | 0 | 0 |
Payments for (Proceeds from) Productive Assets | 0 | ||
Units withheld for tax withholding obligations | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash provided by (used) by financing activities | (30,000) | (26,000) | (23,000) |
Increase (decrease) for the year | (4,220) | 3,909 | (6,205) |
Beginning of period | 7,263 | 3,354 | 9,559 |
End of period | $ 3,043 | $ 7,263 | 3,354 |
Payments to Acquire Productive Assets | 0 | ||
Proceeds from Contributions from Parent | 0 | ||
Payments to Acquire Other Productive Assets | $ 0 |