Holly Energy Partners, L.P. Reports Third Quarter Results
Holly Energy Partners, L.P. (HEP) reported a net income of $49.2 million or $0.46 per unit for Q3 2021, significantly up from $17.8 million in Q3 2020. The quarterly revenue totaled $122.6 million, a decrease of $5.1 million year-over-year. The partnership declared a quarterly distribution of $0.35 per unit. Key factors include improved interest income and reduced expenses, offset by lower revenues and operating costs. Despite ongoing impacts from COVID-19, HEP is optimistic about demand recovery and completing infrastructure projects by year-end.
- Net income increased to $49.2 million from $17.8 million YoY.
- Quarterly distribution declared at $0.35 per unit.
- Operating costs decreased by $35.7 million from Q3 2020.
- Q3 revenues fell by $5.1 million compared to Q3 2020.
- Distributable cash flow decreased by $10.1 million or 13.1% YoY.
- Ongoing impact of COVID-19 on demand and revenues.
-
Reported net income attributable to HEP of
or$49.2 million per unit$0.46 -
Announced quarterly distribution of
per unit$0.35 -
Reported EBITDA of
and Adjusted EBITDA of$77.6 million $83.3 million
Net income attributable to HEP for the third quarter of 2020 included a goodwill impairment charge of
Distributable cash flow was
Commenting on our 2021 third quarter results,
Impact of COVID-19 on Our Business
Our business depends in large part on the demand for the various petroleum products we transport, terminal and store in the markets we serve. The impact of the COVID-19 pandemic on the global macroeconomy created diminished demand, as well as lack of forward visibility, for refined products and crude oil transportation, and for the terminalling and storage services that we provide. Since the declines in demand at the beginning of the COVID-19 pandemic, we began to see improvement in demand for these products and services beginning late in the second quarter of 2020 that continued through the third quarter of 2021, with aggregate volumes approaching pre-pandemic levels. We expect our customers will continue to adjust refinery production levels commensurate with market demand, and with the increasing availability of vaccines, we believe there is a path to a fulsome recovery in demand in 2021. For additional details of the impact of COVID-19 on our business, please see our Form 10-Q for the quarter ended
Third Quarter 2021 Revenue Highlights
Revenues for the third quarter were
-
Revenues from our refined product pipelines were
, a decrease of$27.5 million compared to the third quarter of 2020. Shipments averaged 162.3 thousand barrels per day ("mbpd") compared to 179.6 mbpd for the third quarter of 2020. The volume and revenue decreases were mainly due to lower volumes on pipelines servicing$0.9 million HollyFrontier's Navajo refinery and our pipelines servicing Delek'sBig Spring refinery .
-
Revenues from our intermediate pipelines were
, consistent with the third quarter of 2020. Shipments averaged 136.4 mbpd for the third quarter of 2021 compared to 142.8 mbpd for the third quarter of 2020. The decrease in volumes was mainly due to lower throughputs on our intermediate pipelines servicing$7.5 million HollyFrontier's Navajo refinery while revenue remained constant mainly due to contractual minimum volume guarantees.
-
Revenues from our crude pipelines were
, consistent with the third quarter of 2020. Shipments averaged 408.0 mbpd compared to 404.3 mbpd for the third quarter of 2020. The increase in volumes was mainly attributable to our crude pipeline systems in$32.3 million Wyoming andUtah .
-
Revenues from terminal, tankage and loading rack fees were
, a decrease of$33.3 million compared to the third quarter of 2020. Refined products and crude oil terminalled in the facilities averaged 472.2 mbpd compared to 459.3 mbpd for the third quarter of 2020. The increase in volumes was mainly the result of higher throughputs at$5.7 million HollyFrontier's El Dorado refinery . Revenues decreased mainly due to lower on-going revenues on ourCheyenne assets as a result of the conversion of theHollyFrontier Cheyenne refinery to renewable diesel production and reclassifications of certain tariffs and fees from revenue to interest income under sales-type lease accounting.
-
Revenues from refinery processing units were
, an increase of$21.9 million compared to the third quarter of 2020, and throughputs averaged 72.3 mbpd compared to 62.0 mbpd for the third quarter of 2020. The increase in volumes was mainly due to increased throughput for both our$1.5 million Woods Cross andEl Dorado processing units. Revenues increased mainly due to higher natural gas recoveries in revenues. Revenues did not increase in proportion to the increase in volumes mainly due to contractual minimum volume guarantees.
Nine Months Ended
Revenues for the nine months ended
-
Revenues from our refined product pipelines were
, a decrease of$84.7 million compared to the nine months ended$3.7 million September 30, 2020 . Shipments averaged 165.8 mbpd compared to 172.6 mbpd for the nine months endedSeptember 30, 2020 . The volume and revenue decreases were mainly due to lower volumes on pipelines servicing Delek'sBig Spring refinery .
-
Revenues from our intermediate pipelines were
, an increase of$22.6 million compared to the nine months ended$0.1 million September 30, 2020 . Shipments averaged 131.9 mbpd compared to 137.8 mbpd for the nine months endedSeptember 30, 2020 . The decrease in volumes was mainly due to lower throughputs on our intermediate pipelines servicingHollyFrontier's Tulsa refinery while revenue remained relatively constant mainly due to contractual minimum volume guarantees.
-
Revenues from our crude pipelines were
, an increase of$94.9 million compared to the nine months ended$8.0 million September 30, 2020 . Shipments averaged 393.0 mbpd compared to 380.1 mbpd for the nine months endedSeptember 30, 2020 . The increases were mainly attributable to increased volumes on our crude pipeline systems inWyoming andUtah .
-
Revenues from terminal, tankage and loading rack fees were
, a decrease of$108.4 million compared to the nine months ended$4.4 million September 30, 2020 . Refined products and crude oil terminalled in the facilities averaged 436.9 mbpd compared to 451.0 mbpd for the nine months endedSeptember 30, 2020 . Volumes decreased mainly as a result of lower throughputs atHollyFrontier's Tulsa refinery as well as the cessation of petroleum refinery operations atHollyFrontier's Cheyenne refinery . Revenues decreased mainly as a result of reclassifications of certain tariffs and fees from revenue to interest income under sales-type lease accounting.
-
Revenues from refinery processing units were
, an increase of$65.4 million compared to the nine months ended$5.6 million September 30, 2020 . Throughputs averaged 69.9 mbpd compared to 60.6 mbpd for the nine months endedSeptember 30, 2020 . The increase in volumes was mainly due to increased throughput for both ourWoods Cross andEl Dorado processing units. Revenues increased mainly due to higher recovery of natural gas costs as well as higher throughputs.
Operating Costs and Expenses Highlights
Operating costs and expenses were
Interest expense was
We have scheduled a webcast conference call today at
https://events.q4inc.com/attendee/931953223
An audio archive of this webcast will be available using the above noted link through
About
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 are intended to identify forward-looking statements. 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. Our forward-looking statements are subject to a variety of risks, uncertainties and assumptions. Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give any assurances that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. Any differences could be caused by a number of factors including, but not limited to:
-
HollyFrontier’s and the Partnership’s 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 its 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 the
HollyFrontier stockholder approval for the issuance of HF Sinclair common stock at closing and 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 HEP’s 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;
-
the cost and potential for delay in closing as a result of litigation against us or
HollyFrontier challenging the Sinclair Transactions; - 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;
- 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
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; - 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 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 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;
- 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;
-
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
Securities and Exchange Commission 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 nine months ended
|
Three Months Ended |
|
Change from |
|||||||||||
|
2021 |
|
2020 |
|
2020 |
|||||||||
|
(In thousands, except per unit data) |
|||||||||||||
Revenues |
|
|
|
|
|
|||||||||
Pipelines: |
|
|
|
|
|
|||||||||
Affiliates – refined product pipelines |
$ |
18,702 |
|
|
|
$ |
18,619 |
|
|
|
$ |
83 |
|
|
Affiliates – intermediate pipelines |
7,537 |
|
|
|
7,537 |
|
|
|
— |
|
|
|||
Affiliates – crude pipelines |
19,536 |
|
|
|
20,218 |
|
|
|
(682 |
) |
|
|||
|
45,775 |
|
|
|
46,374 |
|
|
|
(599 |
) |
|
|||
Third parties – refined product pipelines |
8,799 |
|
|
|
9,812 |
|
|
|
(1,013 |
) |
|
|||
Third parties – crude pipelines |
12,780 |
|
|
|
12,106 |
|
|
|
674 |
|
|
|||
|
67,354 |
|
|
|
68,292 |
|
|
|
(938 |
) |
|
|||
Terminals, tanks and loading racks: |
|
|
|
|
|
|||||||||
Affiliates |
29,436 |
|
|
|
34,215 |
|
|
|
(4,779 |
) |
|
|||
Third parties |
3,881 |
|
|
|
4,821 |
|
|
|
(940 |
) |
|
|||
|
33,317 |
|
|
|
39,036 |
|
|
|
(5,719 |
) |
|
|||
|
|
|
|
|
|
|||||||||
Refinery processing units - Affiliates |
21,913 |
|
|
|
20,403 |
|
|
|
1,510 |
|
|
|||
|
|
|
|
|
|
|||||||||
Total revenues |
122,584 |
|
|
|
127,731 |
|
|
|
(5,147 |
) |
|
|||
Operating costs and expenses |
|
|
|
|
|
|||||||||
Operations |
42,793 |
|
|
|
40,003 |
|
|
|
2,790 |
|
|
|||
Depreciation and amortization |
21,826 |
|
|
|
26,190 |
|
|
|
(4,364 |
) |
|
|||
General and administrative |
3,849 |
|
|
|
2,332 |
|
|
|
1,517 |
|
|
|||
|
— |
|
|
|
35,653 |
|
|
|
(35,653 |
) |
|
|||
|
68,468 |
|
|
|
104,178 |
|
|
|
(35,710 |
) |
|
|||
Operating income |
54,116 |
|
|
|
23,553 |
|
|
|
30,563 |
|
|
|||
|
|
|
|
|
|
|||||||||
Equity in earnings of equity method investments |
3,689 |
|
|
|
1,316 |
|
|
|
2,373 |
|
|
|||
Interest expense, including amortization |
(13,417 |
) |
|
|
(14,104 |
) |
|
|
687 |
|
|
|||
Interest income |
6,835 |
|
|
|
2,803 |
|
|
|
4,032 |
|
|
|||
Gain on sale of assets and other |
77 |
|
|
|
7,465 |
|
|
|
(7,388 |
) |
|
|||
|
(2,816 |
) |
|
|
(2,520 |
) |
|
|
(296 |
) |
|
|||
Income before income taxes |
51,300 |
|
|
|
21,033 |
|
|
|
30,267 |
|
|
|||
State income tax benefit (expense) |
4 |
|
|
|
(34 |
) |
|
|
38 |
|
|
|||
Net income |
51,304 |
|
|
|
20,999 |
|
|
|
30,305 |
|
|
|||
Allocation of net income attributable to noncontrolling interests |
(2,144 |
) |
|
|
(3,186 |
) |
|
|
1,042 |
|
|
|||
Net income attributable to |
$ |
49,160 |
|
|
|
$ |
17,813 |
|
|
|
$ |
31,347 |
|
|
Limited partners’ earnings per unit – basic and diluted |
$ |
0.46 |
|
|
|
$ |
0.17 |
|
|
|
$ |
0.29 |
|
|
Weighted average limited partners’ units outstanding |
105,440 |
|
|
|
105,440 |
|
|
|
— |
|
|
|||
EBITDA(1) |
$ |
77,564 |
|
|
|
$ |
55,338 |
|
|
|
$ |
22,226 |
|
|
Adjusted EBITDA(1) |
$ |
83,270 |
|
|
|
$ |
86,435 |
|
|
|
$ |
(3,165 |
) |
|
Distributable cash flow(2) |
$ |
66,810 |
|
|
|
$ |
76,894 |
|
|
|
$ |
(10,084 |
) |
|
Volumes (bpd) |
|
|
|
|
|
||||
Pipelines: |
|
|
|
|
|
||||
Affiliates – refined product pipelines |
115,507 |
|
|
119,403 |
|
|
(3,896 |
) |
|
Affiliates – intermediate pipelines |
136,398 |
|
|
142,817 |
|
|
(6,419 |
) |
|
Affiliates – crude pipelines |
271,717 |
|
|
270,840 |
|
|
877 |
|
|
|
523,622 |
|
|
533,060 |
|
|
(9,438 |
) |
|
Third parties – refined product pipelines |
46,834 |
|
|
60,203 |
|
|
(13,369 |
) |
|
Third parties – crude pipelines |
136,247 |
|
|
133,487 |
|
|
2,760 |
|
|
|
706,703 |
|
|
726,750 |
|
|
(20,047 |
) |
|
Terminals and loading racks: |
|
|
|
|
|
||||
Affiliates |
419,665 |
|
|
401,904 |
|
|
17,761 |
|
|
Third parties |
52,541 |
|
|
57,355 |
|
|
(4,814 |
) |
|
|
472,206 |
|
|
459,259 |
|
|
12,947 |
|
|
|
|
|
|
|
|
||||
Refinery processing units - Affiliates |
72,297 |
|
|
62,016 |
|
|
10,281 |
|
|
|
|
|
|
|
|
||||
Total for pipelines and terminal assets (bpd) |
1,251,206 |
|
|
1,248,025 |
|
|
3,181 |
|
|
|
Nine Months Ended |
|
Change from |
|||||||||||
|
2021 |
|
2020 |
|
2020 |
|||||||||
|
(In thousands, except per unit data) |
|||||||||||||
Revenues |
|
|
|
|
|
|||||||||
Pipelines: |
|
|
|
|
|
|||||||||
Affiliates – refined product pipelines |
$ |
56,520 |
|
|
|
$ |
55,004 |
|
|
|
$ |
1,516 |
|
|
Affiliates – intermediate pipelines |
22,564 |
|
|
|
22,486 |
|
|
|
78 |
|
|
|||
Affiliates – crude pipelines |
58,241 |
|
|
|
59,922 |
|
|
|
(1,681 |
) |
|
|||
|
137,325 |
|
|
|
137,412 |
|
|
|
(87 |
) |
|
|||
Third parties – refined product pipelines |
28,188 |
|
|
|
33,360 |
|
|
|
(5,172 |
) |
|
|||
Third parties – crude pipelines |
36,667 |
|
|
|
26,946 |
|
|
|
9,721 |
|
|
|||
|
202,180 |
|
|
|
197,718 |
|
|
|
4,462 |
|
|
|||
Terminals, tanks and loading racks: |
|
|
|
|
|
|||||||||
Affiliates |
95,431 |
|
|
|
100,711 |
|
|
|
(5,280 |
) |
|
|||
Third parties |
12,955 |
|
|
|
12,103 |
|
|
|
852 |
|
|
|||
|
108,386 |
|
|
|
112,814 |
|
|
|
(4,428 |
) |
|
|||
|
|
|
|
|
|
|||||||||
Refinery processing units - Affiliates |
65,436 |
|
|
|
59,860 |
|
|
|
5,576 |
|
|
|||
|
|
|
|
|
|
|||||||||
Total revenues |
376,002 |
|
|
|
370,392 |
|
|
|
5,610 |
|
|
|||
Operating costs and expenses |
|
|
|
|
|
|||||||||
Operations |
126,226 |
|
|
|
109,721 |
|
|
|
16,505 |
|
|
|||
Depreciation and amortization |
71,894 |
|
|
|
75,202 |
|
|
|
(3,308 |
) |
|
|||
General and administrative |
9,664 |
|
|
|
7,569 |
|
|
|
2,095 |
|
|
|||
|
11,034 |
|
|
|
35,653 |
|
|
|
(24,619 |
) |
|
|||
|
218,818 |
|
|
|
228,145 |
|
|
|
(9,327 |
) |
|
|||
Operating income |
157,184 |
|
|
|
142,247 |
|
|
|
14,937 |
|
|
|||
|
|
|
|
|
|
|||||||||
Equity in earnings of equity method investments |
8,875 |
|
|
|
5,186 |
|
|
|
3,689 |
|
|
|||
Interest expense, including amortization |
(40,595 |
) |
|
|
(45,650 |
) |
|
|
5,055 |
|
|
|||
Interest income |
19,997 |
|
|
|
7,834 |
|
|
|
12,163 |
|
|
|||
Loss on early extinguishment of debt |
— |
|
|
|
(25,915 |
) |
|
|
25,915 |
|
|
|||
Gain on sales-type leases
|
24,677 |
|
|
|
33,834 |
|
|
|
(9,157 |
) |
|
|||
Gain on sale of assets and other |
5,994 |
|
|
|
8,439 |
|
|
|
(2,445 |
) |
|
|||
|
18,948 |
|
|
|
(16,272 |
) |
|
|
35,220 |
|
|
|||
Income before income taxes |
176,132 |
|
|
|
125,975 |
|
|
|
50,157 |
|
|
|||
State income tax expense |
(60 |
) |
|
|
(110 |
) |
|
|
50 |
|
|
|||
Net income |
176,072 |
|
|
|
125,865 |
|
|
|
50,207 |
|
|
|||
Allocation of net income attributable to noncontrolling interests |
(6,770 |
) |
|
|
(6,721 |
) |
|
|
(49 |
) |
|
|||
Net income attributable to |
$ |
169,302 |
|
|
|
$ |
119,144 |
|
|
|
$ |
50,158 |
|
|
Limited partners’ earnings per unit – basic and diluted |
$ |
1.60 |
|
|
|
$ |
1.13 |
|
|
|
$ |
0.47 |
|
|
Weighted average limited partners’ units outstanding |
105,440 |
|
|
|
105,440 |
|
|
|
— |
|
|
|||
EBITDA(1) |
$ |
261,854 |
|
|
|
$ |
232,272 |
|
|
|
$ |
29,582 |
|
|
Adjusted EBITDA(1) |
$ |
259,466 |
|
|
|
$ |
257,711 |
|
|
|
$ |
1,755 |
|
|
Distributable cash flow(2) |
$ |
206,707 |
|
|
|
$ |
213,058 |
|
|
|
$ |
(6,351 |
) |
|
Volumes (bpd) |
|
|
|
|
|
||||
Pipelines: |
|
|
|
|
|
||||
Affiliates – refined product pipelines |
118,033 |
|
|
116,641 |
|
|
1,392 |
|
|
Affiliates – intermediate pipelines |
131,873 |
|
|
137,816 |
|
|
(5,943 |
) |
|
Affiliates – crude pipelines |
261,117 |
|
|
276,128 |
|
|
(15,011 |
) |
|
|
511,023 |
|
|
530,585 |
|
|
(19,562 |
) |
|
Third parties – refined product pipelines |
47,805 |
|
|
55,921 |
|
|
(8,116 |
) |
|
Third parties – crude pipelines |
131,842 |
|
|
103,955 |
|
|
27,887 |
|
|
|
690,670 |
|
|
690,461 |
|
|
209 |
|
|
Terminals and loading racks: |
|
|
|
|
|
||||
Affiliates |
386,400 |
|
|
401,245 |
|
|
(14,845 |
) |
|
Third parties |
50,542 |
|
|
49,753 |
|
|
789 |
|
|
|
436,942 |
|
|
450,998 |
|
|
(14,056 |
) |
|
|
|
|
|
|
|
||||
Refinery processing units - Affiliates |
69,904 |
|
|
60,573 |
|
|
9,331 |
|
|
|
|
|
|
|
|
||||
Total for pipelines and terminal assets (bpd) |
1,197,516 |
|
|
1,202,032 |
|
|
(4,516 |
) |
|
(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 |
|
Nine Months Ended |
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
(In thousands) |
||||||||||||||||||
Net income attributable to |
|
$ |
49,160 |
|
|
|
$ |
17,813 |
|
|
|
$ |
169,302 |
|
|
|
$ |
119,144 |
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||||||
Interest expense |
|
13,417 |
|
|
|
14,104 |
|
|
|
40,595 |
|
|
|
45,650 |
|
|
||||
Interest Income |
|
(6,835 |
) |
|
|
(2,803 |
) |
|
|
(19,997 |
) |
|
|
(7,834 |
) |
|
||||
State income tax (benefit) expense |
|
(4 |
) |
|
|
34 |
|
|
|
60 |
|
|
|
110 |
|
|
||||
Depreciation and amortization |
|
21,826 |
|
|
|
26,190 |
|
|
|
71,894 |
|
|
|
75,202 |
|
|
||||
EBITDA |
|
77,564 |
|
|
|
55,338 |
|
|
|
261,854 |
|
|
|
232,272 |
|
|
||||
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,915 |
|
|
||||
Gain on sales-type leases |
|
— |
|
|
|
— |
|
|
|
(24,677 |
) |
|
|
(33,834 |
) |
|
||||
Gain on significant asset sales |
|
— |
|
|
|
— |
|
|
|
(5,263 |
) |
|
|
— |
|
|
||||
|
|
— |
|
|
|
35,653 |
|
|
|
11,034 |
|
|
|
35,653 |
|
|
||||
HEP's pro-rata share of gain on business interruption insurance settlement |
|
— |
|
|
|
(6,079 |
) |
|
|
— |
|
|
|
(6,079 |
) |
|
||||
Tariffs and fees not included in revenues |
|
7,312 |
|
|
|
3,129 |
|
|
|
21,337 |
|
|
|
8,603 |
|
|
||||
Lease payments not included in operating costs |
|
(1,606 |
) |
|
|
(1,606 |
) |
|
|
(4,819 |
) |
|
|
(4,819 |
) |
|
||||
Adjusted EBITDA |
|
$ |
83,270 |
|
|
|
$ |
86,435 |
|
|
|
$ |
259,466 |
|
|
|
$ |
257,711 |
|
|
(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 |
|
Nine Months Ended |
||||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
|
|
(In thousands) |
||||||||||||||||||
Net income attributable to |
|
$ |
49,160 |
|
|
|
$ |
17,813 |
|
|
|
$ |
169,302 |
|
|
|
$ |
119,144 |
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization |
|
21,826 |
|
|
|
26,190 |
|
|
|
71,894 |
|
|
|
75,202 |
|
|
||||
Amortization of discount and deferred debt charges |
|
763 |
|
|
|
838 |
|
|
|
2,992 |
|
|
|
2,479 |
|
|
||||
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,915 |
|
|
||||
Customer billings greater than revenue recognized |
|
(122 |
) |
|
|
(198 |
) |
|
|
(301 |
) |
|
|
(699 |
) |
|
||||
Maintenance capital expenditures (3) |
|
(3,351 |
) |
|
|
(1,565 |
) |
|
|
(8,834 |
) |
|
|
(5,192 |
) |
|
||||
Increase (decrease) in environmental liability |
|
271 |
|
|
|
29 |
|
|
|
36 |
|
|
|
187 |
|
|
||||
Decrease in reimbursable deferred revenue |
|
(2,991 |
) |
|
|
(3,257 |
) |
|
|
(10,507 |
) |
|
|
(9,062 |
) |
|
||||
Gain on sales-type leases |
|
— |
|
|
|
— |
|
|
|
(24,677 |
) |
|
|
(33,834 |
) |
|
||||
Gain on significant asset sales |
|
— |
|
|
|
— |
|
|
|
(5,263 |
) |
|
|
— |
|
|
||||
|
|
— |
|
|
|
35,653 |
|
|
|
11,034 |
|
|
|
35,653 |
|
|
||||
Other |
|
1,254 |
|
|
|
1,391 |
|
|
|
1,031 |
|
|
|
3,265 |
|
|
||||
Distributable cash flow |
|
$ |
66,810 |
|
|
|
$ |
76,894 |
|
|
|
$ |
206,707 |
|
|
|
$ |
213,058 |
|
|
(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. |
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
|
|
(In thousands) |
||||||
Balance Sheet Data |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
12,816 |
|
|
$ |
21,990 |
|
Working capital |
|
$ |
3,146 |
|
|
$ |
14,247 |
|
Total assets |
|
$ |
2,152,576 |
|
|
$ |
2,167,565 |
|
Long-term debt |
|
$ |
1,333,309 |
|
|
$ |
1,405,603 |
|
Partners' equity |
|
$ |
437,998 |
|
|
$ |
379,292 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211102005350/en/
Chief Financial Officer and Treasurer
214-954-6511
Source:
FAQ
What were Holly Energy Partners' financial results for Q3 2021?
What is the quarterly distribution declared by HEP?
How did HEP's revenues change in Q3 2021 compared to Q3 2020?
What factors contributed to HEP's net income increase in Q3 2021?