Holly Energy Partners, L.P. Reports Second Quarter Results
Holly Energy Partners, L.P. (HEP) reported a net income of $56.8 million for Q2 2022, translating to $0.45 per unit. This represents an increase from $55.7 million in Q2 2021, which included a one-time gain of $5.3 million. The rise in income is attributed to the acquisition of Sinclair Transportation, though offset by increased operating costs and interest expenses. Revenues rose to $135.8 million, primarily due to Sinclair assets, despite declines from certain product pipelines. HEP declared a quarterly distribution of $0.35 per unit.
- Net income increased to $56.8 million from $55.7 million in Q2 2021.
- Distributable cash flow rose by 17.7%, reaching $78.5 million.
- Quarterly revenue climbed to $135.8 million, boosted by Sinclair Transportation acquisition.
- Expected leverage target of 3.5x by year-end.
- Higher operating costs and interest expenses reduced net income impact.
- Revenues from refined product pipelines decreased by $2.6 million.
- Revenue recognition primarily as interest income under sales-type lease accounting.
-
Reported net income attributable to HEP of
or$56.8 million per unit$0.45
-
Announced quarterly distribution of
per unit$0.35
-
Reported EBITDA of
and Adjusted EBITDA of$79.8 million million$104.2
Results for the second quarter of 2021 reflect a gain of
Distributable cash flow was
Commenting on our 2022 second quarter results,
“Looking forward, we remain focused on integrating Sinclair Transportation while maintaining safe and reliable operations across our asset base. Additionally, we remain committed to our disciplined capital allocation framework as we continue to reduce leverage using retained cash flow. We are on track to achieve our short-term leverage target of 3.5x by year-end. Consistent with our disciplined capital allocation framework, we expect to increase unitholder returns in 2023.”
Second Quarter 2022 Revenue Highlights
Revenues for the second quarter of 2022 were
-
Revenues from our refined product pipelines were
, a decrease of$26.1 million compared to the second quarter of 2021. Shipments averaged 178.3 thousand barrels per day ("mbpd") compared to 171.2 mbpd for the second quarter of 2021. The volume increase was mainly due to higher volumes on our recently acquired Sinclair Transportation product pipelines, partially offset by lower volumes on pipelines servicing HF Sinclair's$2.6 million Navajo refinery . The revenue decrease was mainly due to lower volumes on pipelines servicing HF Sinclair'sNavajo refinery and lower revenues from Delek US Holdings, Inc. due to the expiration of a capacity lease, partially offset by revenues on our recently acquired Sinclair Transportation product pipelines. Revenues did not increase in proportion to volumes due to our recognition of a portion of the Sinclair Transportation refined product pipeline tariffs as interest income under sales-type lease accounting.
-
Revenues from our intermediate pipelines were
, consistent with the second quarter of 2021. Shipments averaged 124.6 mbpd for the second quarter of 2022 compared to 143.8 mbpd for the second quarter of 2021. The decrease in volumes was mainly due to lower throughputs on our intermediate pipelines servicing HF Sinclair's$7.5 million Navajo refinery while revenue remained constant due to contractual minimum volume guarantees.
-
Revenues from our crude pipelines were
, an increase of$34.7 million compared to the second quarter of 2021. Shipments averaged 615.3 mbpd compared to 396.7 mbpd for the second quarter of 2021. The increase in volumes was mainly attributable to our Cushing Connect pipeline, which went into service in$2.6 million September 2021 , as well as volumes on our recently acquired Sinclair Transportation crude pipelines. The increase in revenues was mainly due to our recently acquired Sinclair Transportation crude pipelines. Revenues did not increase in proportion to volumes due to our recognition of most of the Cushing Connect pipeline and Sinclair Transportation crude pipeline tariffs as interest income under sales-type lease accounting.
-
Revenues from terminal, tankage and loading rack fees were
, an increase of$44.6 million compared to the second quarter of 2021. Refined products and crude oil terminalled in the facilities averaged 609.0 mbpd compared to 466.7 mbpd for the second quarter of 2021. The increase in volumes was mainly due to our recently acquired Sinclair Transportation assets. Revenues increased mainly due to revenues on our recently acquired Sinclair Transportation assets and higher butane blending revenues. In addition, the second quarter of 2021 included the recognition of$7.7 million of the$3.4 million termination fee related to the termination of HF Sinclair's minimum volume commitment on our$10 million Cheyenne assets as a result of the conversion of theHF Sinclair Cheyenne refinery to renewable diesel production.
-
Revenues from refinery processing units were
, an increase of$22.9 million compared to the second quarter of 2021, and throughputs averaged 72.3 mbpd compared to 76.6 mbpd for the second quarter of 2021. The decrease in volumes was mainly due to decreased throughput at our$1.9 million El Dorado refinery processing units. Revenues increased mainly due to higher natural gas cost recoveries in revenues. Revenues did not decrease in proportion to the decrease in volumes mainly due to contractual minimum volume guarantees.
Six Months Ended
Revenues for the six months ended
-
Revenues from our refined product pipelines were
, a decrease of$52.3 million compared to the six months ended$5.0 million June 30, 2021 . Shipments averaged 167.3 mbpd compared to 167.6 mbpd for the six months endedJune 30, 2021 . The volume and revenue decreases were mainly due to lower volumes on pipelines servicing HF Sinclair'sNavajo refinery , partially offset by volumes on our recently acquired Sinclair Transportation assets and higher volumes on our UNEV pipeline. We recognized a significant portion of the Sinclair Transportation refined product pipeline tariffs as interest income under sales-type lease accounting.
-
Revenues from our intermediate pipelines were
, consistent with the six months ended$15.0 million June 30, 2021 . Shipments averaged 121.2 mbpd compared to 129.6 mbpd for the six months endedJune 30, 2021 . The decrease in volumes was mainly due to lower throughputs on our intermediate pipelines servicing HF Sinclair'sNavajo refinery while revenue remained relatively constant due to contractual minimum volume guarantees.
-
Revenues from our crude pipelines were
, an increase of$65.8 million compared to the six months ended$3.2 million June 30, 2021 . Shipments averaged 571.5 mbpd compared to 385.3 mbpd for the six months endedJune 30, 2021 . The increase in volumes was mainly attributable to our Cushing Connect pipeline, which went into service inSeptember 2021 , as well as volumes on our recently acquired Sinclair Transportation crude pipelines. The increase in revenues was mainly due to our recently acquired Sinclair Transportation crude pipelines and higher volumes on our legacy crude pipelines inWyoming andUtah . Revenues did not increase in proportion to volumes due to our recognition of most of the Cushing Connect pipeline and Sinclair Transportation crude pipeline tariffs as interest income under sales-type lease accounting.
-
Revenues from terminal, tankage and loading rack fees were
, an increase of$81.6 million compared to the six months ended$6.5 million June 30, 2021 . Refined products and crude oil terminalled in the facilities averaged 552.0 mbpd compared to 418.1 mbpd for the six months endedJune 30, 2021 . Volumes increased mainly due to volumes on our recently acquired Sinclair Transportation assets and higher throughputs at HF Sinclair'sTulsa refinery . Revenues increased mainly due to revenues on our recently acquired Sinclair Transportation assets and higher butane blending revenues. In addition, the six months endedJune 30, 2021 included the recognition of of the$9.9 million termination fee related to the termination of HF Sinclair's minimum volume commitment on our$10 million Cheyenne assets as a result of the conversion of theHF Sinclair Cheyenne refinery to renewable diesel production.
-
Revenues from refinery processing units were
, a decrease of$41.3 million compared to the six months ended$2.2 million June 30, 2021 . Throughputs averaged 68.8 mbpd compared to 68.7 mbpd for the six months endedJune 30, 2021 with increased throughputs at ourEl Dorado refinery processing units offset by lower throughputs at ourWoods Cross refinery processing units, which were down for a scheduled turnaround inMarch 2022 . Revenues decreased mainly due to the lower throughput at ourWoods Cross refinery processing units, partially offset by higher natural gas cost recoveries in revenues.
Operating Costs and Expenses Highlights
Operating costs and expenses were
Interest Expense and Interest Income Highlights
Interest expense was
Interest income for the three and six months ended
We have scheduled a conference call today at
https://events.q4inc.com/attendee/167295545
An audio archive of this webcast will be available using the above noted link through
About
HF Sinclair Corporation, headquartered in
This press release contains various “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. When used in this press release, words such as “anticipate,” “project,” “expect,” “will,” “plan,” “goal,” “forecast,” “strategy,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements. These forward-looking 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
-
HF Sinclair’s and HEP’s ability to successfully integrate the
Sinclair Oil Corporation (now known asSinclair Oil LLC , "Sinclair Oil") and Sinclair Transportation businesses acquired fromREH Company (formerly known asThe Sinclair Companies ) (collectively, the “Sinclair Transactions”), with its existing operations and fully realize the expected synergies of the Sinclair Transactions or on the expected timeline;
- the demand for and supply of crude oil and refined products, including uncertainty regarding the effects of the continuing COVID-19 pandemic on future demand and increasing societal expectations that companies address climate change;
- risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on our pipelines and/or terminalled, stored or throughput in our terminals and refinery processing units;
- the economic viability of HF Sinclair, 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;
- the demand for refined petroleum products in the markets we serve;
- 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 pipelines, terminal facilities and refinery processing units, due to reasons such as infection in the workforce, in response to reductions in demand, accidents, unexpected leaks or spills, unscheduled shutdowns, weather events, civil unrest, expropriation of assets, and other economic, diplomatic, legislative, or political events or developments, terrorism, cyberattacks, or other catastrophes or disruptions affecting our operations, terminal facilities, machinery, pipelines and other logistics assets, equipment, or information systems, or any of the foregoing of our suppliers, customers, or third-party service providers or lower gross margins due to the economic impact of the COVID-19 pandemic, inflation and labor costs, and any potential asset impairments resulting from such actions;
- the effects of current and future government regulations and policies, including the effects of current and future restrictions on various commercial and economic activities in response to the COVID-19 pandemic and increases in interest rates;
- 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 cyberattacks and the consequences of any such attacks;
- uncertainty regarding the effects and duration of global hostilities and any associated military campaigns which may disrupt crude oil supplies and markets for refined products and create instability in the financial markets that could restrict our ability to raise capital;
-
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 the tax laws and regulations that affect master limited partnerships; and
-
other financial, operational and legal risks and uncertainties detailed from time to time in our
SEC filings.
The forward-looking statements 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.
RESULTS OF OPERATIONS (Unaudited)
Income, Distributable Cash Flow and Volumes
The following tables present income, distributable cash flow and volume information for the three and six months ended
|
Three Months Ended |
|
Change from |
||||||||
|
2022 |
|
2021 |
|
2021 |
||||||
|
(In thousands, except per unit data) |
||||||||||
Revenues |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
$ |
20,920 |
|
|
$ |
19,213 |
|
|
$ |
1,707 |
|
Affiliates – intermediate pipelines |
|
7,521 |
|
|
|
7,521 |
|
|
|
— |
|
Affiliates – crude pipelines |
|
20,971 |
|
|
|
19,251 |
|
|
|
1,720 |
|
|
|
49,412 |
|
|
|
45,985 |
|
|
|
3,427 |
|
Third parties – refined product pipelines |
|
5,215 |
|
|
|
9,526 |
|
|
|
(4,311 |
) |
Third parties – crude pipelines |
|
13,692 |
|
|
|
12,811 |
|
|
|
881 |
|
|
|
68,319 |
|
|
|
68,322 |
|
|
|
(3 |
) |
Terminals, tanks and loading racks: |
|
|
|
|
|
||||||
Affiliates |
|
38,232 |
|
|
|
32,131 |
|
|
|
6,101 |
|
Third parties |
|
6,326 |
|
|
|
4,756 |
|
|
|
1,570 |
|
|
|
44,558 |
|
|
|
36,887 |
|
|
|
7,671 |
|
|
|
|
|
|
|
||||||
Refinery processing units - Affiliates |
|
22,893 |
|
|
|
21,026 |
|
|
|
1,867 |
|
|
|
|
|
|
|
||||||
Total revenues |
|
135,770 |
|
|
|
126,235 |
|
|
|
9,535 |
|
Operating costs and expenses |
|
|
|
|
|
||||||
Operations |
|
53,899 |
|
|
|
42,068 |
|
|
|
11,831 |
|
Depreciation and amortization |
|
26,974 |
|
|
|
25,003 |
|
|
|
1,971 |
|
General and administrative |
|
4,682 |
|
|
|
2,847 |
|
|
|
1,835 |
|
|
|
85,555 |
|
|
|
69,918 |
|
|
|
15,637 |
|
Operating income |
|
50,215 |
|
|
|
56,317 |
|
|
|
(6,102 |
) |
|
|
|
|
|
|
||||||
Equity in earnings of equity method investments |
|
5,447 |
|
|
|
3,423 |
|
|
|
2,024 |
|
Interest expense, including amortization |
|
(20,347 |
) |
|
|
(13,938 |
) |
|
|
(6,409 |
) |
Interest income |
|
24,331 |
|
|
|
6,614 |
|
|
|
17,717 |
|
Gain on sales-type leases |
|
— |
|
|
|
27 |
|
|
|
(27 |
) |
Gain on sale of assets and other |
|
45 |
|
|
|
5,415 |
|
|
|
(5,370 |
) |
|
|
9,476 |
|
|
|
1,541 |
|
|
|
7,935 |
|
Income before income taxes |
|
59,691 |
|
|
|
57,858 |
|
|
|
1,833 |
|
State income tax expense |
|
(14 |
) |
|
|
(27 |
) |
|
|
13 |
|
Net income |
|
59,677 |
|
|
|
57,831 |
|
|
|
1,846 |
|
Allocation of net income attributable to noncontrolling interests |
|
(2,885 |
) |
|
|
(2,086 |
) |
|
|
(799 |
) |
Net income attributable to |
$ |
56,792 |
|
|
$ |
55,745 |
|
|
$ |
1,047 |
|
Limited partners’ earnings per unit – basic and diluted |
$ |
0.45 |
|
|
$ |
0.53 |
|
|
$ |
(0.08 |
) |
Weighted average limited partners’ units outstanding |
|
126,440 |
|
|
|
105,440 |
|
|
|
21,000 |
|
EBITDA(1) |
$ |
79,796 |
|
|
$ |
88,099 |
|
|
$ |
(8,303 |
) |
Adjusted EBITDA(1) |
$ |
104,244 |
|
|
$ |
88,261 |
|
|
$ |
15,983 |
|
Distributable cash flow(2) |
$ |
78,458 |
|
|
$ |
66,680 |
|
|
$ |
11,778 |
|
Volumes (bpd) |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
140,333 |
|
119,046 |
|
21,287 |
|
|||||
Affiliates – intermediate pipelines |
124,588 |
|
143,762 |
|
(19,174 |
) |
|||||
Affiliates – crude pipelines |
477,241 |
|
260,756 |
|
216,485 |
|
|||||
|
742,162 |
|
523,564 |
|
218,598 |
|
|||||
Third parties – refined product pipelines |
37,989 |
|
52,126 |
|
(14,137 |
) |
|||||
Third parties – crude pipelines |
138,040 |
|
135,904 |
|
2,136 |
|
|||||
|
918,191 |
|
711,594 |
|
206,597 |
|
|||||
Terminals and loading racks: |
|
|
|
|
|
||||||
Affiliates |
572,289 |
|
413,441 |
|
158,848 |
|
|||||
Third parties |
36,748 |
|
53,257 |
|
(16,509 |
) |
|||||
|
609,037 |
|
466,698 |
|
142,339 |
|
|||||
|
|
|
|
|
|
||||||
Refinery processing units - Affiliates |
72,342 |
|
76,589 |
|
(4,247 |
) |
|||||
|
|
|
|
|
|
||||||
Total for pipelines and terminal assets (bpd) |
1,599,570 |
|
1,254,881 |
|
344,689 |
|
.
|
Six Months Ended |
|
Change from |
||||||||
|
2022 |
|
2021 |
|
2021 |
||||||
|
(In thousands, except per unit data) |
||||||||||
Revenues |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
$ |
37,780 |
|
|
$ |
37,819 |
|
|
$ |
(39 |
) |
Affiliates – intermediate pipelines |
|
15,027 |
|
|
|
15,027 |
|
|
|
— |
|
Affiliates – crude pipelines |
|
39,248 |
|
|
|
38,705 |
|
|
|
543 |
|
|
|
92,055 |
|
|
|
91,551 |
|
|
|
504 |
|
Third parties – refined product pipelines |
|
14,475 |
|
|
|
19,389 |
|
|
|
(4,914 |
) |
Third parties – crude pipelines |
|
26,569 |
|
|
|
23,887 |
|
|
|
2,682 |
|
|
|
133,099 |
|
|
|
134,827 |
|
|
|
(1,728 |
) |
Terminals, tanks and loading racks: |
|
|
|
|
|
||||||
Affiliates |
|
69,440 |
|
|
|
65,995 |
|
|
|
3,445 |
|
Third parties |
|
12,133 |
|
|
|
9,074 |
|
|
|
3,059 |
|
|
|
81,573 |
|
|
|
75,069 |
|
|
|
6,504 |
|
|
|
|
|
|
|
||||||
Refinery processing units - Affiliates |
|
41,296 |
|
|
|
43,522 |
|
|
|
(2,226 |
) |
|
|
|
|
|
|
||||||
Total revenues |
|
255,968 |
|
|
|
253,418 |
|
|
|
2,550 |
|
Operating costs and expenses |
|
|
|
|
|
||||||
Operations |
|
96,524 |
|
|
|
83,433 |
|
|
|
13,091 |
|
Depreciation and amortization |
|
49,161 |
|
|
|
50,068 |
|
|
|
(907 |
) |
General and administrative |
|
8,994 |
|
|
|
5,815 |
|
|
|
3,179 |
|
|
|
— |
|
|
|
11,034 |
|
|
|
(11,034 |
) |
|
|
154,679 |
|
|
|
150,350 |
|
|
|
4,329 |
|
Operating income |
|
101,289 |
|
|
|
103,068 |
|
|
|
(1,779 |
) |
|
|
|
|
|
|
||||||
Equity in earnings of equity method investments |
|
9,073 |
|
|
|
5,186 |
|
|
|
3,887 |
|
Interest expense, including amortization |
|
(33,986 |
) |
|
|
(27,178 |
) |
|
|
(6,808 |
) |
Interest income |
|
36,978 |
|
|
|
13,162 |
|
|
|
23,816 |
|
Gain on sales-type leases |
|
— |
|
|
|
24,677 |
|
|
|
(24,677 |
) |
Other income (loss) |
|
146 |
|
|
|
5,917 |
|
|
|
(5,771 |
) |
|
|
12,211 |
|
|
|
21,764 |
|
|
|
(9,553 |
) |
Income before income taxes |
|
113,500 |
|
|
|
124,832 |
|
|
|
(11,332 |
) |
State income tax expense |
|
(45 |
) |
|
|
(64 |
) |
|
|
19 |
|
Net income |
|
113,455 |
|
|
|
124,768 |
|
|
|
(11,313 |
) |
Allocation of net income attributable to noncontrolling interests |
|
(7,104 |
) |
|
|
(4,626 |
) |
|
|
(2,478 |
) |
Net income attributable to |
$ |
106,351 |
|
|
$ |
120,142 |
|
|
$ |
(13,791 |
) |
Limited partners’ earnings per unit—basic and diluted |
$ |
0.90 |
|
|
$ |
1.14 |
|
|
$ |
(0.24 |
) |
Weighted average limited partners’ units outstanding |
|
118,087 |
|
|
|
105,440 |
|
|
|
12,647 |
|
EBITDA(1) |
$ |
152,565 |
|
|
$ |
184,290 |
|
|
$ |
(31,725 |
) |
Adjusted EBITDA(1) |
$ |
189,581 |
|
|
$ |
176,196 |
|
|
$ |
13,385 |
|
Distributable cash flow(2) |
$ |
142,912 |
|
|
$ |
139,899 |
|
|
$ |
3,013 |
|
|
|
|
|
|
|
||||||
Volumes (bpd) |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
|
123,863 |
|
|
|
119,316 |
|
|
|
4,547 |
|
Affiliates – intermediate pipelines |
|
121,213 |
|
|
|
129,573 |
|
|
|
(8,360 |
) |
Affiliates – crude pipelines |
|
436,865 |
|
|
|
255,730 |
|
|
|
181,135 |
|
|
|
681,941 |
|
|
|
504,619 |
|
|
|
177,322 |
|
Third parties – refined product pipelines |
|
43,479 |
|
|
|
48,298 |
|
|
|
(4,819 |
) |
Third parties – crude pipelines |
|
134,602 |
|
|
|
129,603 |
|
|
|
4,999 |
|
|
|
860,022 |
|
|
|
682,520 |
|
|
|
177,502 |
|
Terminals and loading racks: |
|
|
|
|
|
||||||
Affiliates |
|
509,509 |
|
|
|
368,612 |
|
|
|
140,897 |
|
Third parties |
|
42,519 |
|
|
|
49,526 |
|
|
|
(7,007 |
) |
|
|
552,028 |
|
|
|
418,138 |
|
|
|
133,890 |
|
|
|
|
|
|
|
||||||
Refinery processing units - Affiliates |
|
68,804 |
|
|
|
68,688 |
|
|
|
116 |
|
|
|
|
|
|
|
||||||
Total for pipelines and terminal assets (bpd) |
|
1,480,854 |
|
|
|
1,169,346 |
|
|
|
311,508 |
|
(1) |
|
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is calculated as net income attributable to |
Set forth below is our calculation of EBITDA and Adjusted EBITDA.
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(In thousands) |
||||||||||||||
Net income attributable to |
|
$ |
56,792 |
|
|
$ |
55,745 |
|
|
$ |
106,351 |
|
|
$ |
120,142 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
20,347 |
|
|
|
13,938 |
|
|
|
33,986 |
|
|
|
27,178 |
|
Interest income |
|
|
(24,331 |
) |
|
|
(6,614 |
) |
|
|
(36,978 |
) |
|
|
(13,162 |
) |
State income tax expense |
|
|
14 |
|
|
|
27 |
|
|
|
45 |
|
|
|
64 |
|
Depreciation and amortization |
|
|
26,974 |
|
|
|
25,003 |
|
|
|
49,161 |
|
|
|
50,068 |
|
EBITDA |
|
|
79,796 |
|
|
|
88,099 |
|
|
|
152,565 |
|
|
|
184,290 |
|
Gain on sales-type leases |
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(24,677 |
) |
Gain on significant asset sales |
|
|
— |
|
|
|
(5,263 |
) |
|
|
— |
|
|
|
(5,263 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,034 |
|
Acquisition integration and regulatory costs |
|
|
886 |
|
|
|
— |
|
|
|
1,722 |
|
|
|
— |
|
Tariffs and fees not included in revenues |
|
|
25,168 |
|
|
|
7,058 |
|
|
|
38,507 |
|
|
|
14,025 |
|
Lease payments not included in operating costs |
|
|
(1,606 |
) |
|
|
(1,606 |
) |
|
|
(3,213 |
) |
|
|
(3,213 |
) |
Adjusted EBITDA |
|
$ |
104,244 |
|
|
$ |
88,261 |
|
|
$ |
189,581 |
|
|
$ |
176,196 |
|
(2) |
|
Distributable cash flow is not a calculation based upon GAAP. However, the amounts included in the calculation are derived from amounts presented in our consolidated financial statements, with the general exception of maintenance capital expenditures. Distributable cash flow should not be considered in isolation or as an alternative to net income attributable to |
Set forth below is our calculation of distributable cash flow.
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(In thousands) |
||||||||||||||
Net income attributable to |
|
$ |
56,792 |
|
|
$ |
55,745 |
|
|
$ |
106,351 |
|
|
$ |
120,142 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
26,974 |
|
|
|
25,003 |
|
|
|
49,161 |
|
|
|
50,068 |
|
Amortization of discount and deferred debt charges |
|
|
1,033 |
|
|
|
1,385 |
|
|
|
1,803 |
|
|
|
2,229 |
|
Customer billings greater (less) than net income recognized |
|
|
125 |
|
|
|
(3,573 |
) |
|
|
621 |
|
|
|
(179 |
) |
Maintenance capital expenditures(3) |
|
|
(4,963 |
) |
|
|
(4,111 |
) |
|
|
(10,583 |
) |
|
|
(5,482 |
) |
Increase (decrease) in environmental liability |
|
|
(124 |
) |
|
|
(78 |
) |
|
|
(244 |
) |
|
|
(234 |
) |
Decrease in reimbursable deferred revenue |
|
|
(3,356 |
) |
|
|
(3,502 |
) |
|
|
(6,590 |
) |
|
|
(7,516 |
) |
Gain on sales-type leases |
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(24,677 |
) |
Gain on significant asset sales |
|
|
— |
|
|
|
(5,263 |
) |
|
|
— |
|
|
|
(5,263 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,034 |
|
Other |
|
|
1,977 |
|
|
|
1,101 |
|
|
|
2,393 |
|
|
|
(223 |
) |
Distributable cash flow |
|
$ |
78,458 |
|
|
$ |
66,680 |
|
|
$ |
142,912 |
|
|
$ |
139,899 |
|
(3) |
|
Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of our assets and to extend their useful lives. Maintenance capital expenditures include expenditures required to maintain equipment reliability, tankage and pipeline integrity, safety and to address environmental regulations. |
Set forth below is certain balance sheet data.
|
|
|
|
|
||
|
|
2022 |
|
2021 |
||
|
|
(In thousands) |
||||
Balance Sheet Data |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
14,884 |
|
$ |
14,381 |
Working capital |
|
$ |
15,259 |
|
$ |
17,461 |
Total assets |
|
$ |
2,775,038 |
|
$ |
2,165,867 |
Long-term debt |
|
$ |
1,608,460 |
|
$ |
1,333,049 |
Partners' equity |
|
$ |
837,785 |
|
$ |
443,017 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005120/en/
Chief Financial Officer and Treasurer
214-954-6511
Source:
FAQ
What were HEP's earnings for Q2 2022?
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