Holly Energy Partners Announces Quarterly Distribution of $0.35 Per LP Unit
The Board of Directors of Holly Energy Partners (NYSE:HEP) has declared a cash distribution of
- Quarterly distribution maintained at $0.35 per unit for Q4 2021 and throughout 2022, ensuring stable cash flow.
- Commitment to fund capital expenditures within operating cash flow, supporting growth and financial sustainability.
- Targeting a distributable cash flow of 1.3x or greater, which strengthens financial health.
- Potential risks from the Sinclair Transactions may affect operational integration and expected synergies.
- Regulatory approvals needed for the Sinclair Transactions could face delays or challenges, impacting growth plans.
- Continuous risk from external factors such as COVID-19 affecting demand for petroleum products.
In 2022, HEP expects to hold the quarterly distribution constant at
HEP plans to announce results for its fourth quarter of 2021 on
The webcast may be accessed at:
https://events.q4inc.com/attendee/223318006
About
This press release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Please note that one hundred percent (
Forward Looking Statements:
The statements in this press release relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “strategy,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. These statements are based on our beliefs and assumptions, and those of our general partner, using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the
- the demand for, and supply of, crude oil and refined petroleum products, including uncertainty regarding the effects of the continuing COVID-19 pandemic on future demand for refined petroleum products, in markets we serve;
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HollyFrontier’s and our ability to successfully close the pending acquisition of
Sinclair Oil Corporation andSinclair Transportation Company (collectively, “Sinclair”, and such transactions, the “Sinclair Transactions”), or once closed, integrate the operations of Sinclair with our existing operations and fully realize the expected synergies of the Sinclair Transactions or on the expected timeline; - the satisfaction or waivers of the conditions precedent to the proposed Sinclair Transactions, including without limitation, the receipt of required regulatory approvals (including clearance by antitrust authorities necessary to complete the Sinclair Transactions on the terms and timeline desired);
- risks relating to the value of our limited partner common units to be issued at the closing of the Sinclair Transactions from sales in anticipation of closing and from sales by the Sinclair holders following the closing of the Sinclair Transactions;
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the cost and potential for a delay in closing as a result of litigation against us or
HollyFrontier challenging the Sinclair Transactions; - risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on our pipelines and/or terminalled, stored and throughput in our terminals and refinery processing units;
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the economic viability of
HollyFrontier , our other customers and our joint ventures' other customers, including any refusal or inability of our or our joint ventures' customers or counterparties to perform their obligations under their contracts; - our ability to purchase and integrate future acquired operations;
- our ability to complete previously announced or contemplated acquisitions;
- the availability and cost of additional debt and equity financing;
- the possibility of temporary or permanent reductions in production or shutdowns at refineries utilizing our pipeline, terminal facilities and refinery processing units, due to reasons such as infection in the workforce, in response to reductions in demand or lower gross margins due to the economic impact of the COVID-19 pandemic, and any potential asset impairments resulting from such actions;
- the effects of current and/or future governmental regulations and policies, including the effects of current and/or future restrictions on various commercial and economic activities in response to the COVID-19 pandemic;
- delay by government authorities in issuing permits necessary for our business or our capital projects;
- our and our joint venture partners' ability to complete and maintain operational efficiency in carrying out routine operations and capital construction projects;
- the possibility of terrorist or cyber-attacks and the consequences of any such attacks;
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general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in
the United States ; - the impact of recent or proposed changes in tax laws and regulations that affect master limited partnerships; and
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other financial, operational and legal risks and uncertainties detailed from time to time in our
Securities and Exchange Commission filings. All forward-looking statements included in this press release and all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements.
The forward-looking statements included in this press release speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Vice President, Investor Relations
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Investor Relations
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FAQ
What is the cash distribution declared by Holly Energy Partners for Q4 2021?
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