DALLAS -- (Business Wire)
Holly Energy Partners, L.P. (“HEP” or the “Partnership”) (NYSE:HEP)
today reported financial results for the fourth quarter of 2014. For the
quarter, distributable cash flow was $41.8 million, an increase of $7.6
million, or 22.1% compared to the fourth quarter of 2013. HEP announced
its 41stconsecutive distribution increase on January 22,
2015, raising the quarterly distribution from $0.5225 to $0.53 per unit,
representing a 6.0% increase over the distribution for the fourth
quarter of 2013.
Net income attributable to Holly Energy Partners for the fourth quarter
was $28.7 million ($0.33 per basic and diluted limited partner unit)
compared to $19.0 million ($0.19 per basic and diluted limited partner
unit) for the fourth quarter of 2013. This increase in earnings is
primarily due to higher pipeline volumes and annual tariff increases as
well as decreased interest expense due to the early retirement of our
8.25% Senior Notes in March 2014. Compared to the fourth quarter of
2014, pipeline shipments were low during the fourth quarter of 2013 due
to reduced crude throughput at HollyFrontier Corporation's ("HFC")
Navajo Refinery caused by wastewater processing constraints.
Commenting on the fourth quarter of 2014, Mike Jennings, Chief Executive
Officer, stated, “We are pleased that financial results for the fourth
quarter of 2014 allowed us to continue our record of raising our
quarterly distribution. We remain optimistic about our organic growth
potential, especially on our New Mexico crude system and on the UNEV
products pipeline. Additionally, we are evaluating new growth
opportunities that leverage our capabilities and HollyFrontier
Corporation's refining footprint. As we look forward, we believe HEP is
well positioned for continued growth due to the quality and geographic
location of our assets, our talented employee base, and our financially
strong and supportive general partner, HollyFrontier."
Fourth Quarter 2014 Revenue Highlights
Revenues for the quarter were $88.4 million, a $10.5 million increase
compared to the fourth quarter of 2013. The revenue increase was due to
higher volumes and annual tariff increases in addition to a $1.7 million
increase in previously deferred revenue realized. Overall pipeline
volumes were up 31% compared to the fourth quarter of 2013.
-
Revenues from our refined product pipelines were $31.7 million,
an increase of $3.7 million due to higher volumes and annual tariff
increases. Shipments averaged 192.1 thousand barrels per day (“mbpd”)
compared to 174.2 mbpd for the fourth quarter of 2013 mainly due to
the reduced crude throughput at HFC's Navajo refinery during the
fourth quarter of 2013.
-
Revenues from our intermediate pipelines were $8.2 million, an
increase of $2.8 million primarily due to an increase of $1.6 million
in previously deferred revenue realized and the effects of increased
volumes. Shipments averaged 131.6 mbpd compared to 114.4 mbpd for the
fourth quarter of 2013 mainly due to the reduced crude throughput at
HFC's Navajo refinery during the fourth quarter of 2013.
-
Revenues from our crude pipelines were $16.6 million, an
increase of $4.6 million, on shipments averaging 242.5 mbpd compared
to 142.7 mbpd for the fourth quarter of 2013. This increase is due to
increased volumes and revenue from the New Mexico gathering system
expansion as well as low volumes during the fourth quarter of 2013 due
to the reduced crude throughput at HFC's Navajo refinery.
-
Revenues from terminal, tankage and loading rack fees were
$32.0 million, a decrease of $0.6 million compared to the fourth
quarter of 2013. The decrease in revenue is due to lower cost
reimbursement receipts from HFC offset with higher volumes. Refined
products terminalled in our facilities increased to an average of
332.0 mbpd compared to 300.1 mbpd for the fourth quarter of 2013.
Revenues for the three months ended December 31, 2014, include the
recognition of $3.4 million of prior shortfalls billed to shippers in
2013 and 2014, as they did not meet their minimum volume commitments
within the contractual make-up period. As of December 31, 2014, deferred
revenue on our consolidated balance sheet related to shortfalls billed
was $9.3 million. Such deferred revenue will be recognized in earnings
either as (a) payment for shipments in excess of guaranteed levels, if
and to the extent the pipeline system will have the necessary capacity
for shipments in excess of guaranteed levels, or (b) when shipping
rights expire unused over the contractual make-up period.
Year Ended December 31, 2014 Revenue Highlights
Revenues for the year ended December 31, 2014, were $332.5 million, a
$27.4 million increase compared to the same period of 2013. This is due
principally to increased pipeline shipments, the effect of annual tariff
increases and a $4.2 million increase in previously deferred revenue
realized. Overall pipeline volumes were up 13% compared to 2013 largely
due to low volumes in 2013 resulting from a major maintenance turnaround
at HFC's Navajo refinery in the first quarter of 2013 as well as the
reduced crude throughput at HFC's Navajo refinery during the fourth
quarter of 2013.
-
Revenues from our refined product pipelines were $121.2
million, an increase of $13.0 million, primarily due to increased
volumes and the effect of a $2.1 million increase in previously
deferred revenue realized. Shipments averaged 183.2 mbpd compared to
170.8 mbpd for the year ended December 31, 2013.
-
Revenues from our intermediate pipelines were $29.8 million, an
increase of $4.4 million, on shipments averaging 138.3 mbpd compared
to 128.5 mbpd for the year ended December 31, 2013. The increase in
revenue is due to the effects of a $2.2 million increase in previously
deferred revenue realized and increased volumes on intermediate
pipeline segments.
-
Revenues from our crude pipelines were $56.8 million, an
increase of $8.1 million, on shipments averaging 199.6 mbpd compared
to 161.4 mbpd for the year ended December 31, 2013. Revenues increased
due to the annual tariff increases and higher volumes resulting from
the New Mexico gathering system expansion as well as low volumes in
2013 caused by the turnaround at HFC's Navajo refinery and the fourth
quarter 2013 processing constraints at HFC's Navajo refinery.
-
Revenues from terminal, tankage and loading rack fees were
$124.7 million, an increase of $1.9 million compared to the year ended
December 31, 2013. This increase is due principally to increased
volumes. Refined products terminalled in our facilities increased to
an average of 331.0 mbpd compared to 318.9 mbpd for the year ended
December 31, 2013.
Revenues for the year ended December 31, 2014, include the recognition
of $12.0 million of prior shortfalls billed to shippers in 2013.
Operating Costs and Expenses Highlights
Operating costs and expenses were $50.1 million and $177.8 million for
the three months and year ended December 31, 2014, respectively,
representing increases of $3.0 million and $1.2 million over the
respective periods of 2013. These increases are due to year-over-year
increases in maintenance costs and environmental accruals partially
offset by lower depreciation and amortization caused by lower
abandonment charges related to tankage permanently removed from service.
Operating expenses for the year ended December 31, 2013 were reduced by
$3.5 million due to a net tax refund related to payroll costs over a
multi-year period.
We have scheduled a webcast conference call today at 4:00 PM Eastern
Time to discuss financial results. This webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1052229.
An audio archive of this webcast will be available using the above noted
link through March 10, 2015.
About Holly Energy Partners, L.P.
Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides
petroleum product and crude oil transportation, terminalling, storage
and throughput services to the petroleum industry, including
HollyFrontier Corporation subsidiaries. The Partnership owns and
operates petroleum product and crude gathering pipelines, tankage and
terminals in Texas, New Mexico, Arizona, Washington, Idaho, Oklahoma,
Utah, Wyoming and Kansas. In addition, the Partnership owns a 75%
interest in UNEV Pipeline, LLC, the owner of a Holly Energy operated
refined products pipeline running from Salt Lake City, Utah to Las
Vegas, Nevada, and related product terminals and a 25% interest in SLC
Pipeline LLC, a 95-mile intrastate pipeline system serving refineries in
the Salt Lake City, Utah area.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an
independent petroleum refiner and marketer that produces high value
light products such as gasoline, diesel fuel, jet fuel and other
specialty products. HollyFrontier operates through its subsidiaries a
135,000 barrels-per-stream-day (“bpsd”) refinery located in El Dorado,
Kansas, a 125,000 bpsd refinery in Tulsa, Oklahoma, a 100,000 bpsd
refinery located in Artesia, New Mexico, a 52,000 bpsd refinery located
in Cheyenne, Wyoming, and a 31,000 bpsd refinery in Woods Cross, Utah.
HollyFrontier markets its refined products principally in the Southwest
U.S., the Rocky Mountains extending into the Pacific Northwest and in
other neighboring Plains states. A subsidiary of HollyFrontier also owns
a 39% interest (including the general partner interest) in Holly Energy
Partners, L.P.
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,”
“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. 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 assurance that our expectations will prove to be
correct. All statements concerning our expectations for future results
of operations are based on forecasts for our existing operations and do
not include the potential impact of any future acquisitions. Our
forward-looking statements are subject to a variety of risks,
uncertainties and assumptions. If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect,
our actual results may vary materially from those anticipated,
estimated, projected or expected. Certain factors could cause actual
results to differ materially from results anticipated in the
forward-looking statements. These factors include, but are not limited
to:
-
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;
-
the economic viability of HollyFrontier Corporation, Alon USA, Inc.
and our other customers;
-
the demand for refined petroleum products in 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 reductions in production or shutdowns at refineries
utilizing our pipeline and terminal facilities;
-
the effects of current and future government regulations and policies;
-
our operational efficiency in carrying out routine operations and
capital construction projects;
-
the possibility of terrorist attacks and the consequences of any such
attacks;
-
general economic conditions; and
-
other financial, operations 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 years ended December
31, 2014 and 2013.
|
|
|
|
| | |
| | |
| |
| | | | Three Months Ended
December 31, |
| | Change from |
| | | | 2014 |
| | 2013 |
| | 2013 |
| | | |
(In thousands, except per unit data)
|
| Revenues | | | | | | | | | | | |
|
Pipelines:
| | | | | | | | | | | |
|
Affiliates – refined product pipelines
| | | |
$
|
18,332
| | |
$
|
15,523
| | |
$
|
2,809
| |
|
Affiliates – intermediate pipelines
| | | |
8,182
| | |
5,367
| | |
2,815
| |
|
Affiliates – crude pipelines
| | | |
16,597
|
| |
11,990
|
| |
4,607
|
|
| | | |
43,111
| | |
32,880
| | |
10,231
| |
|
Third parties – refined product pipelines
| | | |
13,339
|
| |
12,424
|
| |
915
|
|
| | | |
56,450
| | |
45,304
| | |
11,146
| |
|
Terminals, tanks and loading racks:
| | | | | | | | | | | |
|
Affiliates
| | | |
28,323
| | |
29,267
| | |
(944
|
)
|
|
Third parties
| | | |
3,640
|
| |
3,305
|
| |
335
|
|
| | | |
31,963
|
| |
32,572
|
| |
(609
|
)
|
|
Total revenues
| | | |
88,413
| | |
77,876
| | |
10,537
| |
| Operating costs and expenses: | | | | | | | | | | | |
|
Operations (exclusive of depreciation and amortization)
| | | |
31,966
| | |
27,355
| | |
4,611
| |
|
Depreciation and amortization
| | | |
15,213
| | |
16,693
| | |
(1,480
|
)
|
|
General and administrative
| | | |
2,891
|
| |
3,003
|
| |
(112
|
)
|
| | | |
50,070
|
| |
47,051
|
| |
3,019
|
|
| Operating income | | | |
38,343
| | |
30,825
| | |
7,518
| |
| | | | | | | | | | |
|
|
Equity in earnings of SLC Pipeline
| | | |
837
| | |
588
| | |
249
| |
|
Interest expense, including amortization
| | | |
(8,733
|
)
| |
(11,081
|
)
| |
2,348
| |
|
Interest income
| | | |
—
| | |
51
| | |
(51
|
)
|
|
Gain (loss) on sale of assets
| | | |
—
| | |
(53
|
)
| |
53
| |
|
Other income
| | | |
37
|
| |
—
|
| |
37
|
|
| | | |
(7,859
|
)
| |
(10,495
|
)
| |
2,636
|
|
| Income before income taxes | | | |
30,484
| | |
20,330
| | |
10,154
| |
|
State income tax (expense) benefit
| | | |
(90
|
)
| |
108
|
| |
(198
|
)
|
| Net income | | | |
30,394
| | |
20,438
| | |
9,956
| |
|
Allocation of net income attributable to noncontrolling interests
| | | |
(1,727
|
)
| |
(1,440
|
)
| |
(287
|
)
|
| Net income attributable to Holly Energy Partners | | | |
28,667
| | |
18,998
| | |
9,669
| |
|
General partner interest in net income, including incentive
distributions(1) | | | |
9,333
|
| |
7,485
|
| |
1,848
|
|
| Limited partners’ interest in net income | | | |
$
|
19,334
|
| |
$
|
11,513
|
| |
$
|
7,821
|
|
| Limited partners’ earnings per unit – basic and diluted:(1) | | | |
$
|
0.33
|
| |
$
|
0.19
|
| |
$
|
0.14
|
|
| Weighted average limited partners’ units outstanding | | | |
58,657
|
| |
58,657
|
| |
—
|
|
| EBITDA(2) | | | |
$
|
52,703
|
| |
$
|
46,613
|
| |
$
|
6,090
|
|
| Distributable cash flow(3) | | | |
$
|
41,835
|
| |
$
|
34,263
|
| |
$
|
7,572
|
|
| Volumes (bpd) | | | | | | | | | | | |
|
Pipelines:
| | | | | | | | | | | |
|
Affiliates – refined product pipelines
| | | |
117,486
| | |
100,067
| | |
17,419
| |
|
Affiliates – intermediate pipelines
| | | |
131,590
| | |
114,389
| | |
17,201
| |
|
Affiliates – crude pipelines
| | | |
242,533
|
| |
142,713
|
| |
99,820
|
|
| | | |
491,609
| | |
357,169
| | |
134,440
| |
|
Third parties – refined product pipelines
| | | |
74,631
|
| |
74,098
|
| |
533
|
|
| | | |
566,240
| | |
431,267
| | |
134,973
| |
|
Terminals and loading racks:
| | | | | | | | | | | |
|
Affiliates
| | | |
260,198
| | |
225,036
| | |
35,162
| |
|
Third parties
| | | |
71,817
|
| |
75,057
|
| |
(3,240
|
)
|
| | | |
332,015
|
| |
300,093
|
| |
31,922
|
|
| Total for pipelines and terminal assets (bpd) | | | |
898,255
|
| |
731,360
|
| |
166,895
|
|
| | | | | | | | | | |
|
|
|
|
| | |
| |
| | | | Years Ended December 31, |
| | Change from |
| | | | 2014 |
|
| 2013 |
| | 2013 |
| | | |
(In thousands, except per unit data)
|
| Revenues | | | | | | | | | | | |
|
Pipelines:
| | | | | | | | | | | |
|
Affiliates – refined product pipelines
| | | |
$
|
77,852
| | |
$
|
66,441
| | |
$
|
11,411
| |
|
Affiliates – intermediate pipelines
| | | |
29,813
| | |
25,397
| | |
4,416
| |
|
Affiliates – crude pipelines
| | | |
56,804
|
| |
48,749
|
| |
8,055
|
|
| | | |
164,469
| | |
140,587
| | |
23,882
| |
|
Third parties – refined product pipelines
| | | |
43,377
|
| |
41,837
|
| |
1,540
|
|
| | | |
207,846
| | |
182,424
| | |
25,422
| |
|
Terminals, tanks and loading racks:
| | | | | | | | | | | |
|
Affiliates
| | | |
110,726
| | |
111,781
| | |
(1,055
|
)
|
|
Third parties
| | | |
13,973
|
| |
10,977
|
| |
2,996
|
|
| | | |
124,699
|
| |
122,758
|
| |
1,941
|
|
|
Total revenues
| | | |
332,545
| | |
305,182
| | |
27,363
| |
| Operating costs and expenses: | | | | | | | | | | | |
|
Operations (exclusive of depreciation and amortization)
| | | |
104,801
| | |
99,444
| | |
5,357
| |
|
Depreciation and amortization
| | | |
62,166
| | |
65,423
| | |
(3,257
|
)
|
|
General and administrative
| | | |
10,824
|
| |
11,749
|
| |
(925
|
)
|
| | | |
177,791
|
| |
176,616
|
| |
1,175
|
|
| Operating income | | | |
154,754
| | |
128,566
| | |
26,188
| |
| | | | | | | | | | |
|
|
Equity in earnings of SLC Pipeline
| | | |
2,987
| | |
2,826
| | |
161
| |
|
Interest expense, including amortization
| | | |
(36,101
|
)
| |
(47,010
|
)
| |
10,909
| |
|
Interest income
| | | |
3
| | |
161
| | |
(158
|
)
|
|
Loss on early extinguishment of debt
| | | |
(7,677
|
)
| |
—
| | |
(7,677
|
)
|
|
Gain on sale of assets
| | | |
—
| | |
1,810
| | |
(1,810
|
)
|
|
Other income
| | | |
82
|
| |
61
|
| |
21
|
|
| | | |
(40,706
|
)
| |
(42,152
|
)
| |
1,446
|
|
| Income before income taxes | | | |
114,048
| | |
86,414
| | |
27,634
| |
|
State income tax expense
| | | |
(235
|
)
| |
(333
|
)
| |
98
|
|
| Net income | | | |
113,813
| | |
86,081
| | |
27,732
| |
|
Allocation of net income attributable to noncontrolling interests
| | | |
(8,288
|
)
| |
(6,632
|
)
| |
(1,656
|
)
|
| Net income attributable to Holly Energy Partners | | | |
105,525
| | |
79,449
| | |
26,076
| |
|
General partner interest in net income, including incentive
distributions(1) | | | |
(34,667
|
)
| |
(27,523
|
)
| |
(7,144
|
)
|
| Limited partners’ interest in net income | | | |
$
|
70,858
|
| |
$
|
51,926
|
| |
$
|
18,932
|
|
| Limited partners’ earnings per unit – basic and diluted:(1) | | | |
$
|
1.20
|
| |
$
|
0.88
|
| |
$
|
0.32
|
|
| Weighted average limited partners’ units outstanding | | | |
58,657
|
| |
58,246
|
| |
411
|
|
| EBITDA(2) | | | |
$
|
211,701
|
| |
$
|
192,054
|
| |
$
|
19,647
|
|
| Distributable cash flow(3) | | | |
$
|
172,718
|
| |
$
|
146,579
|
| |
$
|
26,139
|
|
| Volumes (bpd) | | | | | | | | | | | |
|
Pipelines:
| | | | | | | | | | | |
|
Affiliates – refined product pipelines
| | | |
119,156
| | |
107,493
| | |
11,663
| |
|
Affiliates – intermediate pipelines
| | | |
138,258
| | |
128,475
| | |
9,783
| |
|
Affiliates – crude pipelines
| | | |
199,600
|
| |
161,391
|
| |
38,209
|
|
| | | |
457,014
| | |
397,359
| | |
59,655
| |
|
Third parties – refined product pipelines
| | | |
64,055
|
| |
63,337
|
| |
718
|
|
| | | |
521,069
| | |
460,696
| | |
60,373
| |
|
Terminals and loading racks:
| | | | | | | | | | | |
|
Affiliates
| | | |
261,888
| | |
255,108
| | |
6,780
| |
|
Third parties
| | | |
69,100
|
| |
63,791
|
| |
5,309
|
|
| | | |
330,988
|
| |
318,899
|
| |
12,089
|
|
| Total for pipelines and terminal assets (bpd) | | | |
852,057
|
| |
779,595
|
| |
72,462
|
|
| | | | | | | | | | |
|
(1) Net income attributable to Holly Energy Partners is allocated
between limited partners and the general partner interest in accordance
with the provisions of the partnership agreement. Net income allocated
to the general partner includes incentive distributions declared
subsequent to quarter end. General partner incentive distributions were
$8.9 million and $7.3 million for the three months ended December 31,
2014 and 2013, respectively, and $33.2 million and $26.5 million for the
years ended December 31, 2014 and 2013, respectively.
(2) Earnings before interest, taxes, depreciation and amortization
(“EBITDA”) is calculated as net income attributable to Holly Energy
Partners plus (i) interest expense and loss on early extinguishment of
debt, net of interest income, (ii) state income tax and (iii)
depreciation and amortization. EBITDA is not a calculation based upon
GAAP. However, the amounts included in the EBITDA calculation are
derived from amounts included in our consolidated financial statements.
EBITDA should not be considered as an alternative to net income
attributable to Holly Energy Partners or operating income, as an
indication of our operating performance or as an alternative to
operating cash flow as a measure of liquidity. EBITDA is not necessarily
comparable to similarly titled measures of other companies. EBITDA is
presented here because it is a widely used financial indicator used by
investors and analysts to measure performance. EBITDA also is used by
our management for internal analysis and as a basis for compliance with
financial covenants.
Set forth below is our calculation of EBITDA.
|
|
|
| | |
| |
| | | | Three Months Ended
December 31, |
| | Years Ended December
31, |
| | | | 2014 |
|
| 2013 |
| | 2014 |
|
| 2013 |
| | | |
(In thousands)
|
| Net income attributable to Holly Energy Partners | | | |
$
|
28,667
| | |
$
|
18,998
| | |
$
|
105,525
| | |
$
|
79,449
| |
|
Add (subtract):
| | | | | | | | | | | | | | |
|
Interest expense
| | | |
8,297
| | |
10,551
| | |
34,280
| | |
44,041
| |
|
Interest income
| | | |
—
| | |
(51
|
)
| |
(3
|
)
| |
(161
|
)
|
|
Amortization of discount and deferred debt charges
| | | |
436
| | |
530
| | |
1,821
| | |
2,120
| |
|
Loss on early extinguishment of debt
| | | |
—
| | |
—
| | |
7,677
| | |
—
| |
Amortization of unrecognized loss attributable to terminated cash
flow hedge
| | | |
—
| | |
—
| | |
—
| | |
849
| |
|
State income tax
| | | |
90
| | |
(108
|
)
| |
235
| | |
333
| |
|
Depreciation and amortization
| | | |
15,213
| | |
16,693
|
| |
62,166
|
| |
65,423
|
|
| EBITDA | | | |
$
|
52,703
| | |
$
|
46,613
|
| |
$
|
211,701
|
| |
$
|
192,054
|
|
| | | | | | | | | | | | | | | | | |
|
(3) 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 Holly Energy Partners or operating income, as
an indication of our operating performance, or as an alternative to
operating cash flow as a measure of liquidity. Distributable cash flow
is not necessarily comparable to similarly titled measures of other
companies. Distributable cash flow is presented here because it is a
widely accepted financial indicator used by investors to compare
partnership performance. It is also used by management for internal
analysis and our performance units. We believe that this measure
provides investors an enhanced perspective of the operating performance
of our assets and the cash our business is generating.
Set forth below is our calculation of distributable cash flow.
|
|
|
| | |
| |
| | | | Three Months Ended
December 31, |
| | Years Ended December
31, |
| | | | 2014 |
|
| 2013 |
| | 2014 |
|
| 2013 |
| | | |
(In thousands)
|
| Net income attributable to Holly Energy Partners | | | |
$
|
28,667
| | |
$
|
18,998
| | |
$
|
105,525
| | |
$
|
79,449
| |
|
Add (subtract):
| | | | | | | | | | | | | | |
|
Depreciation and amortization
| | | |
15,213
| | |
16,693
| | |
62,166
| | |
65,423
| |
|
Amortization of discount and deferred debt charges
| | | |
436
| | |
530
| | |
1,821
| | |
2,120
| |
|
Loss on early extinguishment of debt
| | | |
—
| | |
—
| | |
7,677
| | |
—
| |
|
Amortization of unrecognized loss attributable to terminated cash
flow hedge
| | | |
—
| | |
—
| | |
—
| | |
849
| |
|
Increase (decrease) in deferred revenue attributable to shortfall
billings
| | | |
(2,454
|
)
| |
62
| | |
(2,503
|
)
| |
3,686
| |
|
Maintenance capital expenditures*
| | | |
(2,271
|
)
| |
(2,126
|
)
| |
(4,616
|
)
| |
(8,683
|
)
|
|
Billed crude revenue settlement
| | | |
—
| | |
—
| | |
—
| | |
918
| |
|
Other non-cash adjustments
| | | |
2,244
|
| |
106
|
| |
2,648
|
| |
2,817
|
|
| Distributable cash flow | | | |
$
|
41,835
|
| |
$
|
34,263
|
| |
$
|
172,718
|
| |
$
|
146,579
|
|
| | | | | | | | | | | | | | | | | |
|
* 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, and
safety and to address environmental regulations.
|
|
|
| |
|
| |
| | | | December 31, | | | December 31, |
| | | | 2014 |
| | 2013 |
| | | |
(In thousands)
|
| Balance Sheet Data | | | | | | | | |
|
Cash and cash equivalents
| | | |
$
|
2,830
| | |
$
|
6,352
| |
|
Working capital (deficit)
| | | |
$
|
3,140
| | |
$
|
(6,604
|
)
|
|
Total assets
| | | |
$
|
1,401,555
| | |
$
|
1,382,508
| |
|
Long-term debt
| | | |
$
|
867,579
| | |
$
|
807,630
| |
|
Partners' equity(4) | | | |
$
|
320,362
| | |
$
|
369,446
| |
| | | | | | | | | |
|
(4) As a master limited partnership, we distribute our available cash,
which historically has exceeded our net income attributable to Holly
Energy Partners because depreciation and amortization expense represents
a non-cash charge against income. The result is a decline in partners’
equity since our regular quarterly distributions have exceeded our
quarterly net income attributable to Holly Energy Partners.
Additionally, if the assets contributed and acquired from HollyFrontier
while we were a consolidated variable interest entity of HollyFrontier
had been acquired from third parties, our acquisition cost in excess of
HollyFrontier’s basis in the transferred assets of $305.3 million would
have been recorded as increases to our properties and equipment and
intangible assets at the time of acquisition instead of decreases to
partners’ equity.
Contacts:
Holly Energy Partners, L.P.
Douglas S. Aron, 214-954-6511
Executive
Vice President and
Chief Financial Officer
or
Julia
Heidenreich, 214-954-6511
Vice President, Investor Relations
or
Craig
Biery, 214-954-6511
Investor Relations
Source: Holly Energy Partners, L.P.
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