HEP - Earnings call transcript Q4 2018 | Holly Energy Partners LP

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Operator

Good afternoon and welcome to Holly Energy Partners Fourth Quarter 2018 Conference Call and Webcast. At this time all participants have been placed in a listen-only mode. The floor will be open for your questions following the presentation. [Operator Instructions] Please note that this conference is being recorded. It's now my pleasure to turn the floor over to Jared Harding. begin. may you Jared

Jared Harding

you I'm joining Relations Jared Energy Thank XXXX for Fourth Earnings Partners. Call. Harding all Adam. our for Quarter Holly Thanks, with Investor

Voliva, President today we morning December press for CEO George XX, us results a President Damiris, announcing quarter Joining and CFO. are issued Rich the Executive release This XXXX. Vice and and ending

at If one on find release you you may would like Web a hollyenergy.com. site copy of today's press our

including disclosure statement Before February XXXX. regarding expectations, any note provisions Also, Harbor be many future of noted be today's call webcast George Harbor as those predictions of Safe not no time may SEC or reading that the summary, These the speaks information In on replay to accurate in transcript. their cause sensitive outcomes. are proceed management statements. under are statements statements longer at are filings. or of made of presented factors XX, can today's Please from the only differ remarks. in federal it Rich Any today, with judgments, to are statements time Today's securities release. information forward-looking the guarantees provided please There results or covered intended press the note Safe our says expectations, laws. of

George. GAAP to today's measures. over And of include today's I'll non-GAAP to the discussion for call call reconciliations financial may press with Finally, measures. Please release see turn that,

George Damiris

per over pipeline with XXth XXXX operating increased this our unit announced resulting from well This remaining was as fourth interests distribution XXXX Permian HFC's to and refined Thanks processing Pipeline unit, and partially fourth increase X% volumes HEP Jared. volumes maintenance year. quarter period of and higher of we the in And lower thanks volumes last same and the Woods the XXXX our now $X.XXXX since you quarter consecutive Vegas Salt of offset crude the next the the volumes distribution a the each to oil solid are our of have between since by compared Lake Las and pipeline the increase as X% driven markets on Cross from acquisition the Frontier primarily arbitrage refinery afternoon. increase IPO City quarter by joining of wrapped up for call Gathering results refinery. normal stronger Refineries Salt Lake City anticipate System. as rates and products Overall the seasonal reopened. at unit and

organic to of small that oil construction example our on barrels During completed diesel gathering the the capacity In truck to per January, to loading crude HEP value the This rack several we opportunities a expanded win-win is the companies. we both quarter, of Permian projects system completed HFC approximately for XXX,XXX a commercial of Texas. with diesel add rack in to Orla, capitalize prime and benefit partners day. project

organic we'll into ahead Looking to execute XXXX, our existing to projects. footprint leverage continue

I'll As gathering in Permian, turn region. And to the product to and in production we'll that, opportunities increase over distribution systems pursue crude with expand continues Rich. the to call the our

Rich Voliva

XXXX, unit in Cross is for This in XXXX. income repairs. XXXX. non-cash refinery, million OpEx The well X% the these processing Pipelines. relating SLC quarter fourth decrease by of a of decrease which the to same acquisition included lower is of generated the distributable primarily period revenue in compared unplanned a was related HEP and $XX decrease driven to cracker as cash attributable maintenance HEP's resulted fourth on onetime the million to the million at fluid HEP quarter in to compared due flow to Frontier the Thanks, $XX HEP's George. in Net million to of as was higher which fourth cat $XX.X primarily quarter $XX quarter Woods gain of

HEP's ratio year and to an increase In we X.XXx X.XXx. $X.XXXX average escalators. X.Xx XXXX, half the our ratio expect quarter, distribution the coverage quarter unit XXXX, of for distribution the coverage for the per due coverage higher ratios full to year contractual and year with LP in was per of For by a second tariff

for Our spend capital and and of expect maintenance million quarter million for million approximately to $XX $XX were $XX including and maintenance million the $X expenditures we HollyFrontier. expansion expenditures CapEx. capital reimbursed by $X for million CapEx XXXX, capital any to of reimbursable million $XX In to approximately $X million excluding acquisitions CapEx

XX, debt Adam ratio EBITDA of December for reasonable in And growth year questions. I'll over position a HEP liquidity leverage almost $XXX any flexibility strong a the total call end As us allows billion had with outstanding financing of and opportunities. to X.Xx, to resulting full million of turn that, with $X.X of debt coupled

Operator

is Thank you. JPMorgan. from [Operator Instructions] your question Jeremy line open. from your And first Jeremy comes Tonet

JoeMartoglio

Joe Hi Jeremy. for this on is

George Damiris

Joe. Hi,

Joe Martoglio

you? X.Xx in the longer-term views how look leverage. see I still how ask I are long-term? would or you And wanted to also then leverage First target -- the about First, -- XXXX. you're leverage at on whether Xx wanted hit still to to I lower unleveraged the potentially if in early expecting wanted your get

George Damiris

Yes.

not in but Xx in during have first do it's I the XXXX, going sometime Joe, we be half, sure, to necessarily expect think, or first we're XXXX. quarter probably to I'm

think leverage target very profile given is we commercial And very, HEP, feel I feel -- the that that level. with of long-run still comfortable level. our very we

Joe Martoglio

helpful. And move wanted more still for X.Xx the towards and target you then, is that after I to was if on see, expected range? to of Okay. targeting. also middle Xx said the you're intact but Xx XXXX maybe That's you to Thanks. the one coverage XXXX, know,

George Damiris

Joe. Yes,

I think, this we'll look annually. at

important we'll to that's to evaluate with continue distribution we going holders to But long-term. continue we're Our that desire less very Xx as is that our to a go. the ratio unit coverage in to and the and than believe said do that's no grow we

Joe Martoglio

me. for Thanks. That's Okay. Sure. all

George Damiris

you. Thank

Operator

further back there the remarks. [Operator I'll no floor closing Instructions] questions, are to turn And over for Jared now any if

Jared Harding

Relations, Thanks again free Thanks. for you call to any out if Investor have today. reach questions. joining the Feel to

Operator

And this does call. today's conclude conference

now You you a Thank great day. have disconnect. for and joining may

Holly Energy Partners (HEP) 19 Feb 192018 Q4 Earnings call transcript