Holly Energy Partners, L.P. Reports Fourth Quarter Results
Holly Energy Partners (HEP) reported a net income of $45.6 million ($0.43 per unit) for Q4 2021, down from $51.3 million ($0.49 per unit) in Q4 2020. Revenues were $118.5 million, a decrease of $9 million due to lower pipeline volumes and revenues from Cheyenne assets. HEP's distributable cash flow was $63.1 million, a drop of 9.9%. The Partnership declared a quarterly cash distribution of $0.35 per unit for 2022, maintaining a coverage ratio of 1.8x. Despite challenges from operational disruptions at HollyFrontier’s refineries, HEP aims to reduce leverage to 3.0-3.5x while sustaining cash flows.
- Distributable cash flow coverage ratio of 1.8x.
- Quarterly distribution of $0.35 per unit held constant for 2022.
- Decrease in interest expense, helping to improve financial stability.
- Net income decreased by $5.7 million year-over-year for Q4.
- Revenues down by $9 million due to lower pipeline volumes and Cheyenne asset performance.
- Distributable cash flow decreased by 9.9% compared to Q4 2020.
-
Reported net income attributable to HEP of
or$45.6 million per unit$0.43
-
Announced quarterly distribution of
per unit$0.35
-
Reported EBITDA of
and Adjusted EBITDA of$70.8 million $79.7 million
Distributable cash flow was
The decrease in net income attributable to HEP was mainly due to lower volumes on our pipeline systems, lower on-going revenues from our
Commenting on our 2021 fourth quarter results,
"Looking forward, we expect to hold the quarterly distribution constant at
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 a 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 fourth 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 ultimately expect demand to return to pre-COVID-19 levels. For additional details of the impact of COVID-19 on our business, please see our Form 10-K for the year ended
Fourth Quarter 2021 Revenue Highlights
Revenues for the quarter were
-
Revenues from our refined product pipelines were
, a decrease of$22.7 million , on shipments averaging 135.2 thousand barrels per day ("mbpd") compared to 155.8 mbpd for the fourth quarter of 2020. The revenue and volume decreases were mainly due to lower volumes on our product pipelines servicing$5.9 million HollyFrontier's Navajo refinery due to the planned turnaround as well as unplanned maintenance activities at the refinery following the turnaround during the fourth quarter of 2021.
-
Revenues from our intermediate pipelines were
, consistent with the fourth quarter of 2020. Shipments averaged 105.5 mbpd compared to 134.8 mbpd for the fourth 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
, a decrease of$30.7 million , on shipments averaging 455.0 mbpd compared to 410.4 mbpd for the fourth quarter of 2020. The increase in volumes was mainly attributable to our Cushing Connect Pipeline in$1.3 million Oklahoma which went into service at the end of the third quarter of 2021. Revenues did not increase in proportion to volumes due to recognizing most of the Cushing Connect Pipeline tariffs as interest income under sales-type lease accounting.
-
Revenues from terminal, tankage and loading rack fees were
, a decrease of$33.9 million compared to the fourth quarter of 2020. Refined products and crude oil terminalled in the facilities averaged 460.4 mbpd compared to 440.7 mbpd for the fourth quarter of 2020. The increase in volumes was mainly the result of higher throughputs at$5.0 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 recording certain tariffs and fees as interest income under sales-type lease accounting that were recorded as revenue in the fourth quarter of 2020.
-
Revenues from refinery processing units were
, an increase of$23.7 million compared to the fourth quarter of 2020, and throughputs averaged 68.8 mbpd compared to 63.9 mbpd for the fourth quarter of 2020. The increase in volumes was mainly due to increased throughput for both our$3.2 million Woods Cross andEl Dorado processing units. Revenues increased mainly due to higher recovery of natural gas costs.
Year Ended
Revenues for the year ended
-
Revenues from our refined product pipelines were
, a decrease of$107.4 million , on shipments averaging 158.1 mbpd compared to 161.5 mbpd for the year ended$9.5 million December 31, 2020 . The volume and revenue decreases were mainly due to lower volumes on pipelines servicingHollyFrontier's Navajo refinery and Delek'sBig Spring refinery .
-
Revenues from our intermediate pipelines were
, an increase of$30.1 million compared to the year ended$0.1 million December 31, 2020 . Shipments averaged 125.2 mbpd compared to 137.1 mbpd for the year endedDecember 31, 2020 . The decrease in volumes was mainly due to lower throughputs on our intermediate pipelines servicingHollyFrontier's Tulsa and Navajo refineries while revenue remained relatively constant mainly due to contractual minimum volume guarantees.
-
Revenues from our crude pipelines were
, an increase of$125.6 million compared to the year ended$6.7 million December 31, 2020 . Shipments averaged 408.6 mbpd compared to 387.7 mbpd for the year endedDecember 31, 2020 . The increases were mainly attributable to increased volumes on our crude pipeline systems inWyoming andUtah partially offset by lower volumes on our pipeline systems servicingHollyFrontier's Navajo refinery . Volumes also increased due to the addition of volumes on our Cushing Connect Pipeline inOklahoma , which went into service at the end of the third quarter of 2021.
-
Revenues from terminal, tankage and loading rack fees were
, a decrease of$142.3 million compared to the year ended$9.4 million December 31, 2020 . Refined products and crude oil terminalled in the facilities averaged 442.9 mbpd compared to 442.2 mbpd for the year endedDecember 31, 2020 . 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 recording certain tariffs and fees as interest income under sales-type lease accounting that were recorded as revenue in the year endedDecember 31, 2020 .
-
Revenues from refinery processing units were
, an increase of$89.1 million compared to the year ended$8.8 million December 31, 2020 . Throughputs averaged 69.6 mbpd compared to 61.4 mbpd for the year endedDecember 31, 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/223318006
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, 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 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
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 months and the years ended
|
Three Months Ended |
|
Change from |
||||||||
|
2021 |
|
2020 |
|
2020 |
||||||
|
(In thousands, except per unit data) |
||||||||||
Revenues |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
$ |
12,831 |
|
|
$ |
18,568 |
|
|
$ |
(5,737 |
) |
Affiliates – intermediate pipelines |
|
7,537 |
|
|
|
7,537 |
|
|
|
— |
|
Affiliates – crude pipelines |
|
19,527 |
|
|
|
20,103 |
|
|
|
(576 |
) |
|
|
39,895 |
|
|
|
46,208 |
|
|
|
(6,313 |
) |
Third parties – refined product pipelines |
|
9,876 |
|
|
|
10,011 |
|
|
|
(135 |
) |
Third parties – crude pipelines |
|
11,159 |
|
|
|
11,898 |
|
|
|
(739 |
) |
|
|
60,930 |
|
|
|
68,117 |
|
|
|
(7,187 |
) |
Terminals, tanks and loading racks: |
|
|
|
|
|
||||||
Affiliates |
|
29,080 |
|
|
|
35,156 |
|
|
|
(6,076 |
) |
Third parties |
|
4,801 |
|
|
|
3,721 |
|
|
|
1,080 |
|
|
|
33,881 |
|
|
|
38,877 |
|
|
|
(4,996 |
) |
|
|
|
|
|
|
||||||
Affiliates - refinery processing units |
|
23,682 |
|
|
|
20,462 |
|
|
|
3,220 |
|
|
|
|
|
|
|
||||||
Total revenues |
|
118,493 |
|
|
|
127,456 |
|
|
|
(8,963 |
) |
Operating costs and expenses |
|
|
|
|
|
||||||
Operations |
|
44,298 |
|
|
|
37,971 |
|
|
|
6,327 |
|
Depreciation and amortization |
|
21,906 |
|
|
|
24,376 |
|
|
|
(2,470 |
) |
General and administrative |
|
2,973 |
|
|
|
2,419 |
|
|
|
554 |
|
|
|
69,177 |
|
|
|
64,766 |
|
|
|
4,411 |
|
Operating income |
|
49,316 |
|
|
|
62,690 |
|
|
|
(13,374 |
) |
|
|
|
|
|
|
||||||
Equity in earnings of equity method investments |
|
3,557 |
|
|
|
1,462 |
|
|
|
2,095 |
|
Interest expense, including amortization |
|
(13,223 |
) |
|
|
(13,775 |
) |
|
|
552 |
|
Interest income |
|
9,928 |
|
|
|
2,787 |
|
|
|
7,141 |
|
Gain on sale of assets and other |
|
185 |
|
|
|
251 |
|
|
|
(66 |
) |
|
|
447 |
|
|
|
(9,275 |
) |
|
|
9,722 |
|
Income before income taxes |
|
49,763 |
|
|
|
53,415 |
|
|
|
(3,652 |
) |
State income tax benefit (expense) |
|
28 |
|
|
|
(58 |
) |
|
|
86 |
|
Net income |
|
49,791 |
|
|
|
53,357 |
|
|
|
(3,566 |
) |
Allocation of net income attributable to noncontrolling interests |
|
(4,147 |
) |
|
|
(2,018 |
) |
|
|
(2,129 |
) |
Net income attributable to |
$ |
45,644 |
|
|
$ |
51,339 |
|
|
$ |
(5,695 |
) |
Limited partners’ earnings per unit – basic and diluted |
$ |
0.43 |
|
|
$ |
0.49 |
|
|
$ |
(0.06 |
) |
Weighted average limited partners’ units outstanding |
|
105,440 |
|
|
|
105,440 |
|
|
|
— |
|
EBITDA(1) |
$ |
70,817 |
|
|
$ |
86,761 |
|
|
$ |
(15,944 |
) |
Adjusted EBITDA(1) |
$ |
79,737 |
|
|
$ |
88,269 |
|
|
$ |
(8,532 |
) |
Distributable cash flow(2) |
$ |
63,097 |
|
|
$ |
69,999 |
|
|
$ |
(6,902 |
) |
Volumes (bpd) |
|
|
|
|
|
|
Pipelines: |
|
|
|
|
|
|
Affiliates – refined product pipelines |
81,272 |
|
113,400 |
|
(32,128 |
) |
Affiliates – intermediate pipelines |
105,499 |
|
134,780 |
|
(29,281 |
) |
Affiliates – crude pipelines |
334,103 |
|
279,695 |
|
54,408 |
|
|
520,874 |
|
527,875 |
|
(7,001 |
) |
Third parties – refined product pipelines |
53,958 |
|
42,414 |
|
11,544 |
|
Third parties – crude pipelines |
120,902 |
|
130,752 |
|
(9,850 |
) |
|
695,734 |
|
701,041 |
|
(5,307 |
) |
Terminals and loading racks: |
|
|
|
|
|
|
Affiliates |
407,261 |
|
394,289 |
|
12,972 |
|
Third parties |
53,091 |
|
46,393 |
|
6,698 |
|
|
460,352 |
|
440,682 |
|
19,670 |
|
|
|
|
|
|
|
|
Affiliates – refinery processing units |
68,810 |
|
63,927 |
|
4,883 |
|
|
|
|
|
|
|
|
Total for pipelines, terminals and refinery processing unit assets (bpd) |
1,224,896 |
|
1,205,650 |
|
19,246 |
|
|
Years Ended |
|
Change from |
||||||||
|
2021 |
|
2020 |
|
2020 |
||||||
|
(In thousands, except per unit data) |
||||||||||
Revenues |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
$ |
69,351 |
|
|
$ |
73,571 |
|
|
$ |
(4,220 |
) |
Affiliates – intermediate pipelines |
|
30,101 |
|
|
|
30,023 |
|
|
|
78 |
|
Affiliates – crude pipelines |
|
77,768 |
|
|
|
80,026 |
|
|
|
(2,258 |
) |
|
|
177,220 |
|
|
|
183,620 |
|
|
|
(6,400 |
) |
Third parties – refined product pipelines |
|
38,064 |
|
|
|
43,371 |
|
|
|
(5,307 |
) |
Third parties – crude pipelines |
|
47,826 |
|
|
|
38,843 |
|
|
|
8,983 |
|
|
|
263,110 |
|
|
|
265,834 |
|
|
|
(2,724 |
) |
Terminals, tanks and loading racks: |
|
|
|
|
|
||||||
Affiliates |
|
124,511 |
|
|
|
135,867 |
|
|
|
(11,356 |
) |
Third parties |
|
17,756 |
|
|
|
15,825 |
|
|
|
1,931 |
|
|
|
142,267 |
|
|
|
151,692 |
|
|
|
(9,425 |
) |
|
|
|
|
|
|
||||||
Affiliates - refinery processing units |
|
89,118 |
|
|
|
80,322 |
|
|
|
8,796 |
|
|
|
|
|
|
|
||||||
Total revenues |
|
494,495 |
|
|
|
497,848 |
|
|
|
(3,353 |
) |
Operating costs and expenses |
|
|
|
|
|
||||||
Operations |
|
170,524 |
|
|
|
147,692 |
|
|
|
22,832 |
|
Depreciation and amortization |
|
93,800 |
|
|
|
99,578 |
|
|
|
(5,778 |
) |
General and administrative |
|
12,637 |
|
|
|
9,989 |
|
|
|
2,648 |
|
|
|
11,034 |
|
|
|
35,653 |
|
|
|
(24,619 |
) |
|
|
287,995 |
|
|
|
292,912 |
|
|
|
(4,917 |
) |
Operating income |
|
206,500 |
|
|
|
204,936 |
|
|
|
1,564 |
|
|
|
|
|
|
|
||||||
Equity in earnings of equity method investments |
|
12,432 |
|
|
|
6,647 |
|
|
|
5,785 |
|
Interest expense, including amortization |
|
(53,818 |
) |
|
|
(59,424 |
) |
|
|
5,606 |
|
Interest income |
|
29,925 |
|
|
|
10,621 |
|
|
|
19,304 |
|
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 |
|
6,179 |
|
|
|
8,691 |
|
|
|
(2,512 |
) |
|
|
19,395 |
|
|
|
(25,546 |
) |
|
|
44,941 |
|
Income before income taxes |
|
225,895 |
|
|
|
179,390 |
|
|
|
46,505 |
|
State income tax expense |
|
(32 |
) |
|
|
(167 |
) |
|
|
135 |
|
Net income |
|
225,863 |
|
|
|
179,223 |
|
|
|
46,640 |
|
Allocation of net income attributable to noncontrolling interests |
|
(10,917 |
) |
|
|
(8,740 |
) |
|
|
(2,177 |
) |
Net income attributable to |
$ |
214,946 |
|
|
$ |
170,483 |
|
|
$ |
44,463 |
|
Limited partners’ earnings per unit—basic and diluted |
$ |
2.03 |
|
|
$ |
1.61 |
|
|
$ |
0.42 |
|
Weighted average limited partners’ units outstanding |
|
105,440 |
|
|
|
105,440 |
|
|
|
— |
|
EBITDA(1) |
$ |
332,671 |
|
|
$ |
319,031 |
|
|
$ |
13,640 |
|
Adjusted EBITDA(1) |
$ |
339,203 |
|
|
$ |
345,978 |
|
|
$ |
(6,775 |
) |
Distributable cash flow(2) |
$ |
269,805 |
|
|
$ |
283,057 |
|
|
$ |
(13,252 |
) |
|
|
|
|
|
|
||||||
Volumes (bpd) |
|
|
|
|
|
||||||
Pipelines: |
|
|
|
|
|
||||||
Affiliates – refined product pipelines |
|
108,767 |
|
|
|
115,827 |
|
|
|
(7,060 |
) |
Affiliates – intermediate pipelines |
|
125,225 |
|
|
|
137,053 |
|
|
|
(11,828 |
) |
Affiliates – crude pipelines |
|
279,514 |
|
|
|
277,025 |
|
|
|
2,489 |
|
|
|
513,506 |
|
|
|
529,905 |
|
|
|
(16,399 |
) |
Third parties – refined product pipelines |
|
49,356 |
|
|
|
45,685 |
|
|
|
3,671 |
|
Third parties – crude pipelines |
|
129,084 |
|
|
|
110,691 |
|
|
|
18,393 |
|
|
|
691,946 |
|
|
|
686,281 |
|
|
|
5,665 |
|
Terminals and loading racks: |
|
|
|
|
|
||||||
Affiliates |
|
391,698 |
|
|
|
393,300 |
|
|
|
(1,602 |
) |
Third parties |
|
51,184 |
|
|
|
48,909 |
|
|
|
2,275 |
|
|
|
442,882 |
|
|
|
442,209 |
|
|
|
673 |
|
|
|
|
|
|
|
||||||
Affiliates – refinery processing units |
|
69,628 |
|
|
|
61,416 |
|
|
|
8,212 |
|
|
|
|
|
|
|
||||||
Total for pipelines, terminals and refinery processing unit assets (bpd) |
|
1,204,456 |
|
|
|
1,189,906 |
|
|
|
14,550 |
|
(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
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(In thousands) |
||||||||||||||
Net income attributable to |
|
$ |
45,644 |
|
|
$ |
51,339 |
|
|
$ |
214,946 |
|
|
$ |
170,483 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
13,223 |
|
|
|
13,775 |
|
|
|
53,818 |
|
|
|
59,424 |
|
Interest income |
|
|
(9,928 |
) |
|
|
(2,787 |
) |
|
|
(29,925 |
) |
|
|
(10,621 |
) |
State income tax (benefit) expense |
|
|
(28 |
) |
|
|
58 |
|
|
|
32 |
|
|
|
167 |
|
Depreciation and amortization |
|
|
21,906 |
|
|
|
24,376 |
|
|
|
93,800 |
|
|
|
99,578 |
|
EBITDA |
|
$ |
70,817 |
|
|
$ |
86,761 |
|
|
$ |
332,671 |
|
|
$ |
319,031 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,915 |
|
Gain on sales-type leases |
|
|
— |
|
|
|
— |
|
|
|
(24,677 |
) |
|
|
(33,834 |
) |
Gain on significant asset sales |
|
|
— |
|
|
|
— |
|
|
|
(5,263 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
11,034 |
|
|
|
35,653 |
|
HEP's pro-rata share of gain on business interruption insurance settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,079 |
) |
Tariffs and fees not included in revenues |
|
|
10,526 |
|
|
|
3,114 |
|
|
|
31,863 |
|
|
|
11,717 |
|
Lease payments not included in operating costs |
|
|
(1,606 |
) |
|
|
(1,606 |
) |
|
|
(6,425 |
) |
|
|
(6,425 |
) |
Adjusted EBITDA |
|
$ |
79,737 |
|
|
$ |
88,269 |
|
|
$ |
339,203 |
|
|
$ |
345,978 |
|
(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
|
|
Years Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(In thousands) |
||||||||||||||
Net income attributable to |
|
$ |
45,644 |
|
|
$ |
51,339 |
|
|
$ |
214,946 |
|
|
$ |
170,483 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
21,906 |
|
|
|
24,376 |
|
|
|
93,800 |
|
|
|
99,578 |
|
Amortization of discount and deferred debt charges |
|
|
765 |
|
|
|
840 |
|
|
|
3,757 |
|
|
|
3,319 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,915 |
|
Revenue recognized (greater) less than customer billings |
|
|
3,656 |
|
|
|
(44 |
) |
|
|
3,355 |
|
|
|
(743 |
) |
Maintenance capital expenditures(3) |
|
|
(6,459 |
) |
|
|
(3,451 |
) |
|
|
(15,293 |
) |
|
|
(8,643 |
) |
Decrease in environmental liability |
|
|
(697 |
) |
|
|
(1,206 |
) |
|
|
(661 |
) |
|
|
(1,020 |
) |
Decrease in reimbursable deferred revenue |
|
|
(2,987 |
) |
|
|
(3,113 |
) |
|
|
(13,494 |
) |
|
|
(12,175 |
) |
Gain on sales-type lease |
|
|
— |
|
|
|
— |
|
|
|
(24,677 |
) |
|
|
(33,834 |
) |
Gain on significant asset sales |
|
|
— |
|
|
|
— |
|
|
|
(5,263 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
11,034 |
|
|
|
35,653 |
|
Other |
|
|
1,269 |
|
|
|
1,258 |
|
|
|
2,301 |
|
|
|
4,524 |
|
Distributable cash flow |
|
$ |
63,097 |
|
|
$ |
69,999 |
|
|
$ |
269,805 |
|
|
$ |
283,057 |
|
(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 |
|
$ |
14,381 |
|
$ |
21,990 |
Working capital |
|
$ |
17,461 |
|
$ |
14,247 |
Total assets |
|
$ |
2,165,867 |
|
$ |
2,167,565 |
Long-term debt |
|
$ |
1,333,049 |
|
$ |
1,405,603 |
Partners' equity |
|
$ |
443,017 |
|
$ |
379,292 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222005414/en/
Chief Financial Officer and Treasurer
214/954-6511
Source:
FAQ
What was Holly Energy Partners' net income for Q4 2021?
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