HEP - Earnings call transcript Q2 2020 | Holly Energy Partners LP

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Holly Energy Partners Second Quarter 2020 Conference Call and Webcast. At this time, all participants have been placed on 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 is now my pleasure to turn the floor to Trey Schonter.

Trey Schonter

you XXXX of earnings thank our for and quarter second call. Ian, to you all joining Thanks, I'm Trey Schonter Partners. with Investor Relations for Holly Energy

us XXXX. This Voliva, Vice Rich results for press today John ending the Joining Senior June quarter Harrison, XX, release President announcing President we morning and CFO. the issued a and are

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

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

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

Rich Voliva

during continued and employees this environment. like health safety with you for to your In top this health afternoon, thank response our thanks Energy their On focus everyone flexibility and joining Good in COVID-XX and we I'd of challenging our Thank of and To safe time. the and in families Partners priority. and call to is Trey. that the Holly you, difficult behalf our are hope employees good begin, today. for

and monitoring successful HEP have the the the results, on protocols previous home quarter volatile our certain strength limiting per essential work our quarter. and to personnel Board health and include the shifts from of going second same consistent several policies address on-site These will supporting to continuity our guidance April, XXth. challenging center protect properly cash policy we maintained been developments On monitor to business be July operational actions have only, backdrop, in approved staff amount to paid forward. closely issued of $X.XX safety and delivered the COVID-XX staggering our We these resilience solid to distribution and help This Despite a for highlighting with employees, which operations the in represents unit quarterly in XXrd August paid model. employees.

quarter reduction demand XX% volumes As XXXX. second COVID-XX, a product from result, destruction of in to we the the a overall crude pipeline compared and experienced

However, of total representative only our of strength minimum the revenues down were commitments. volume XX%,

the Over May bottom volumes saw course we in of incremental showing with quarter improvement. the second June

adjust forward Looking market this increasing our continue to match as to anticipate refinery customers demand. improvement production we

we went anticipate an venture updates. of pipeline million annualized in the HEP. start The on remains of and quarter $X.X full service expected Xst Cushing date of first project to with Turning April schedule to joint terminal JV in XXXX net on The XXXX. EBITDA Connect the into portion

announced approximately annualized payments project refinery HEP of receives with to a $XX.X of conversion volume to Cheyenne the to its Xst, the pipeline supported are renewable the in expect JV a HollyFrontier in HEP. by gate. We diesel our assets minimum June net the plans assets commitment. produce Both convert On to million annualized related million quarter third inside plant, minimum EBITDA $X refinery to XXXX. long-term beginning

we with to our changes existing throughput related begins, process begin HollyFrontier conversion agreement. potential negotiations the As will to

order in and time. And will commitment same during this everyone and we to facilitate during our this healthy turn to the challenging with of forward, focus I'll hope Again of level environment. stays operating continuity I maintain the that, Moving responsibly the to John. business over safely call

John Harrison

Thanks, Rich.

to met income second quarter quarter Holly million a the Partners Energy party million non-cash throughput second XXXX $XX.X agreement lease. of in attributable The to the a compared definition was a was the to For million gain of $XX.X sales-type resulting of $XX.X increase due of net XXXX. third renewal primarily from that the

per to offset operating to partially was can was of expense. by $XX.X one-time compared period XXXX to same table represents due unit. $X.X This for was $XX.X period million XXXX. related this attributable quarter be The utilization the reflecting The income lower refinery the same net $X.XX adjustments decrease to second in $XX.X to our million the COVID-XX the rates a In HEP lower compared year. EBITDA interest and expenses these million million lower in gain, last quarter reconciliation press limited and release. decrease found Excluding adjusted or partner in

flow generated million, of decrease compared year. $X period the cash quarter the distributable $XX.X During HEP to a last same million

times quarter under Our million, CapEx. and distribution approximately coverage year-to-date. maintenance and were the for ratio was joint $XX X.X $X approximately million in including $XX joint a venture and Cushing expenditures X.X for Capital investments quarter the venture million times just Connect during the

and projected unchanged $XX of full at capital venture our the remain million. share joint For to $XX year million XXXX, investments expenditures

outstanding notes XXth, on credit drawn revolving of approximately matures debt June $X.X our of and XXXX. of consisting in $X billion XXXX, total $X.X due HEP billion facility which of of billion As million approximately July $XXX had senior

at to well times. X.XX is month liquidity over was which leverage of EBITDA and end Our times, X.X our covenant the debt of XX below second was quarter adjusted the $XXX million trailing our

second investment fee to we during to flow all macro even use reduce to and As retained solid flow results, operations previously delivered HEP In model quarter plan and with position to business us challenging from communicated, cash intend our capital based fund incremental continues summary, the cash environment. well leverage.

the any operator for to questions. call back the turn I'll Now,

Trey Schonter

investor have any call you Thanks today. All for questions. to out joining to you. if Thank reach right. again the relations free Feel

Operator

today's This concludes call. conference

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

Holly Energy Partners (HEP) 5 Aug 202020 Q2 Earnings call transcript