HEP - Earnings call transcript Q1 2021 | Holly Energy Partners LP

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Operator

Welcome to the Holly Energy Partners' First Quarter 2021 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 is now my pleasure to turn the floor over to Trey Schonter. begin. may you Trey,

Trey Schonter

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

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

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

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

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

Richard Voliva

decrease our quarter volumes of the as the Uri. XXXX Cheyenne for at itself largely the this HollyFrontier's no refinery. in the refinery first the of on to personnel to solid from HollyFrontier's the Uri, operations you in Thanks, HEP to winter Revenue the impact in Tulsa due joining call quarter. compared of petroleum to field. Trey. work damage refinery overall experienced of great HEP stable and each Thanks Thanks of first end storm, despite the results afternoon. remained generated

for driving side, incremental transportation demand we we summer and continue fuels across to as refined regions, improvement season. we anticipate see our the demand the product On into head

announced we the XX quarterly quarter, deleveraging. unitholders during of to after capital further X. distribution the use unit excess flat and the $X.XX to May hold as on plan on May be and to record year a We LP to investments per distributions intend cash distribution During flow cash paid for

Turning to on The start-up later pipeline delays, July. this our the is weather-related in accumulation expected be updates. project budget is project to Due to schedule Cushing month. expected tank an of Connect now service currently in with and year-to-date early Navajo

is XXXX. Frontier to progress make the expected the fourth currently in continue on expansion, and quarter Pipeline to We of in which on be schedule service

our Looking execution our as across John. remains the focus forward, call And turn consistent over improvement continue to now to I'll markets. operational we on see

John Harrison

Rich. Thanks,

a Partners net XXXX, $XX.X of The that approximately versus to of quarter partially primarily million to $XX gain Holly first quarter leases, XXXX, increase million million an the Energy offset million by first quarter collectively million charge sales-type had compared income extinguishment $XX.X increased goodwill million For was charge. due XXXX. impairment on which $XX $XX debt attributable first a income $XX to in of was early net by the

found last was same adjusted reconciliation million in the $XX.X be adjustments compared year. to these in million can press EBITDA reflecting our XXXX quarter $XX.X period table First A release.

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

investments expenditures approximately million, just ratio for quarter coverage Connect distribution which joint includes quarter. current $XX were venture. the venture the was during Cushing $XX million and Our the two times under for Capital joint

operations. all CapEx in inclusive we investments, million of to $XX and generated expect joint expect $XX we and of our XXXX, million venture from year full between For fund spend share total CapEx, with to cash

On facility the XX, March and had deleveraging XXXX our extended $XXX we key $XXX of credit the maintenance of to million strategy. drawn billion, consistent million due $X.X facility. debt notes on XX, maturity facility to under billion HEP revolving XXXX consisting of covenants outstanding, of The total April $X.X amended senior of our successfully with of our credit July right-size financial the and remain revolving unchanged As facility.

liquidity times. $XXX adjusted at first our the at trailing Our approximately right and to XX-month the was X.X was end quarter of EBITDA million, debt

And opportunities, quarter, cash flow plan the $XX X.X our we to continue million absent our further we During target facility. growth to range to reduce on using revolving repaid X.X retained of down times. to approximately credit any leverage

the like to operator to for the back call turn I'd Now any questions.

Operator

first comes the of Your Instructions] from question Spiro Suisse. Dounis line from [Operator Credit

Spiro Dounis

John. Hi, guys doing? Rich. How are you Hey,

Richard Voliva

you? are how Spiro, Good.

Spiro Dounis

just Rich, Doing the hoping some of curious little that talk we're levels. here. bit the are that has really the parts like And some to normal that But that by could I was or segments about almost shielded MVCs? or at there's back a will we'll protected still well. up been recovery degree something see to of in up pre-COVID know largely been for if I of others. extent business Or that segments you lagging revenue? kind maybe the least picked has any show actually haven't there, a to it now

Richard Voliva

Salt shipping be than where you out. One more has in I and we're would would probably got See, were will, places Vegas some UNEV a as where help a of Cushing little function that's City. much demand a previously. up think especially we've I less general if There, couple demand seen gathering, of think pre-COVID relative levels, we that crude vis-à-vis Lake demand, there's not to as to volume I pre-COVID. slack, think

see range. the demand volume will more two versus UNEV. we recover probably well, the we'd see with we Those there, slack be as expect So have that pre-COVID

Spiro Dounis

Got you.

Okay.

to a recovery. So upside the just tour bit on little a there of the

But your few think if there's here, wrong, between guess, sticking the backdrop outlook. correct to per curious just speaking. we highly much to Are I to but should continue how will improving, about $XX the or now you close maybe $XX a how think or risk I generally Like Just that next sense MVCs MVCs that anywhere bit, at utilized question, and are I'm assets Second of sputtering. trying kind about real I'm but of any with position thinking these be? million should we leases said, million a all. to of that, rolling over on getting normal just year years, front? get off of if

Richard Voliva

we pretty And highly these No, critical all that all, are function that Spiro, - infrastructure assets. remember, these refineries assets utilized to serve. the or are

last years, Cheyenne to that don't serve. these X.X of had has that forward. expecting specific think going we're in of the a that competitive place Really other we We see was been with renewed risk see the commitments So nature the the refineries refinery. but we of to kind any I - change, that obviously, year, that

Spiro Dounis

could know. a housekeeping just to Good I quick one question. sneak Last in Okay. if

And sorry, $X looks this, quarter. million John, if were this recorded closer but you not like to it tariffs addressed as revenue

that something sustainable? half I what or drove than maybe $X is that's think line to that, on and going million to closer $X if that be that item that's about typically, number uptick million. Curious

John Harrison

Sure.

as lease we Cheyenne related So well Tulsa. type the particularly rack have sales at adjustments, some as assets, did a lubes new to

be going it and it, is drove what that's recurring. to So

million that forward. quarterly positive So kind on adjustments basis a you'll netted of those together two see - going $X of a

Spiro Dounis

had. I sense. you, That’s well. Thank Makes all gentlemen. Great. Be

Richard Voliva

Spiro. Thanks,

Operator

I further there floor for the are remarks. Trey Okay, Instructions] over no any [Operator turn to if questions, will closing back

Trey Schonter

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

Operator

conference today's call. concludes This

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

Holly Energy Partners (HEP) 4 May 212021 Q1 Earnings call transcript