HOLLY ENERGY PARTNERS LP

CIK:0001283140|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Revenues:	$ 158,360	$ 149,002	$ 441,409	$ 404,970
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	58,422	60,470	163,706	156,994
Depreciation and amortization	24,362	25,236	74,922	74,397
General and administrative	7,947	3,751	18,094	12,745
Total operating costs and expenses	90,731	89,457	256,722	244,136
Operating income	67,629	59,545	184,687	160,834
Other income (expense):
Equity in earnings of equity method investments	3,581	(16,334)	11,008	(7,261)
Interest expense (including amortization)	(27,285)	(22,965)	(79,711)	(56,951)
Interest income	20,294	24,234	61,050	61,212
Gain on sale of assets and other	708	494	983	640
Total other income (expense)	(2,702)	(14,571)	(6,670)	(2,360)
Income before income taxes	64,927	44,974	178,017	158,474
State income tax expense	(16)	(38)	(18)	(83)
Net income	64,911	44,936	177,999	158,391
Allocation of net income attributable to noncontrolling interests	(1,886)	(2,985)	(7,223)	(10,089)
Net income attributable to the partners	$ 63,025	$ 41,951	$ 170,776	$ 148,302
Limited partners’ per unit interest in earnings— basic (in USD per share)	$ 0.50	$ 0.33	$ 1.35	$ 1.22
Limited partners’ per unit interest in earnings— diluted (in USD per share)	$ 0.50	$ 0.33	$ 1.35	$ 1.22
Weighted average limited partners’ units outstanding, basic (in shares)	126,440	126,440	126,440	120,902
Weighted average limited partners’ units outstanding, diluted (in shares)	126,440	126,440	126,440	120,902
Affiliates
Revenues:
Revenues:	$ 129,287	$ 122,868	$ 356,087	$ 325,659
Third parties
Revenues:
Revenues:	$ 29,073	$ 26,134	$ 85,322	$ 79,311

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net income	$ 177,999	$ 158,391
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	74,922	74,397
Gain on sale of assets	(675)	(29)
Amortization of deferred charges	3,240	2,863
Equity-based compensation expense	1,092	1,493
Equity in earnings of equity method investments, net of distributions	6,073	22,084
(Increase) decrease in operating assets:
Accounts receivable—trade	(1,116)	(174)
Accounts receivable—affiliates	(19,678)	(16,643)
Prepaid and other current assets	2,635	2,264
Increase (decrease) in operating liabilities:
Accounts payable—trade	(516)	2,586
Accounts payable—affiliates	2,805	5,844
Accrued interest	(480)	6,664
Deferred revenue	1,244	(5,572)
Accrued property taxes	5,609	5,089
Other current liabilities	2,076	(20)
Turnaround expenditures	(618)	(24,728)
Other, net	3,911	3,988
Net cash provided by operating activities	258,523	238,497
Cash flows from investing activities
Additions to properties and equipment	(21,978)	(31,194)
Acquisition of Sinclair Transportation	0	(328,955)
Investment in Osage Pipe Line Company, LLC	(4,750)	(5,000)
Proceeds from sale of assets	1,417	37
Distributions in excess of equity in earnings of equity investments	1,993	4,724
Net cash used for investing activities	(23,318)	(360,388)
Cash flows from financing activities
Borrowings under credit agreement	60,000	460,000
Repayments of credit agreement borrowings	(149,500)	(594,000)
Proceeds from issuance of debt	0	400,000
Payments on Class B Unit	(2,569)	0
Distributions to HEP unitholders	(132,925)	(125,669)
Distributions to noncontrolling interests	(6,648)	(7,308)
Payments on finance leases	(3,261)	(2,700)
Deferred financing costs	0	(6,541)
Purchase of units for incentive grants	0	(334)
Units withheld for tax withholding obligations	(1)	(217)
Other	5	(170)
Net cash provided (used) by financing activities	(234,899)	123,061
Cash and cash equivalents
Increase for the period	306	1,170
Beginning of period	10,917	14,381
End of period	11,223	15,551
Supplemental disclosure of cash flow information
Cash paid during the period for interest	$ 76,294	$ 47,941

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents (Cushing Connect VIEs: $1,900 and $2,147, respectively)	$ 11,223	$ 10,917
Accounts receivable:
Accounts receivable	100,597	79,803
Prepaid and other current assets	10,026	12,397
Total current assets	121,846	103,117
Properties and equipment, net	1,362,829	1,388,888
Operating lease right-of-use assets, net	1,797	2,317
Net investment in leases (Cushing Connect VIEs: $101,855 and $101,871, respectively)	521,099	539,705
Intangible assets, net	51,681	59,300
Goodwill	342,762	342,762
Equity method investments (Cushing Connect VIEs: $32,753 and $34,746, respectively)	267,291	270,604
Deferred turnaround costs	21,279	24,154
Other assets	16,850	16,655
Total assets	2,707,434	2,747,502
Accounts payable:
Accounts payable	46,683	42,509
Accrued interest	17,512	17,992
Deferred revenue	21,066	12,087
Accrued property taxes	11,058	5,449
Current operating lease liabilities	793	968
Current finance lease liabilities	4,634	4,389
Other current liabilities	4,506	2,430
Total current liabilities	106,252	85,824
Long-term debt	1,468,505	1,556,334
Noncurrent operating lease liabilities	1,371	1,720
Noncurrent finance lease liabilities	60,474	62,513
Other long-term liabilities	28,571	29,111
Deferred revenue	16,878	24,613
Class B unit	61,034	60,507
Partners’ equity:
Common unitholders (126,440,201 units issued and outstanding at both September 30, 2023 and December 31, 2022)	896,066	857,126
Noncontrolling interests	68,283	69,754
Total equity	964,349	926,880
Total liabilities and equity	2,707,434	2,747,502
Trade
Accounts receivable:
Accounts receivable	17,460	16,344
Accounts payable:
Accounts payable	28,122	26,753
Affiliates
Accounts receivable:
Accounts receivable	83,137	63,459
Accounts payable:
Accounts payable	$ 18,561	$ 15,756