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DALLAS--(BUSINESS WIRE)--Nov 7, 2022--
Holly Energy Partners, L.P. ("HEP" or the "Partnership") (NYSE: HEP) today reported financial results for the third quarter of 2022. Net income attributable to HEP for the third quarter of 2022 was $42.0 million ($0.33 per basic and diluted limited partner unit), compared to $49.2 million ($0.46 per basic and diluted limited partner unit) for the third quarter of 2021.
Results for the third quarter of 2022 reflect the impact to our equity in earnings of equity method investments of HEP’s 50% share of incurred and estimated environmental remediation and recovery expenses, net of insurance proceeds received to date, associated with a release of crude oil on the Osage Pipe Line Company, LLC ("Osage") pipeline of $20.3 million. Excluding this impact, net income attributable to HEP for the third quarter of 2022 was $62.2 million ($0.49 per basic and diluted limited partner unit). The increase in net income attributable to HEP was mainly due to net income from Sinclair Transportation Company LLC ("Sinclair Transportation"), which was acquired on March 14, 2022, partially offset by higher interest expense and higher operating costs and expenses.
Distributable cash flow was $78.7 million for the third quarter of 2022, an increase of $11.9 million, or 17.8%, compared to the third quarter of 2021. The increase was mainly due to distributable cash flow related to Sinclair Transportation, partially offset by higher interest expense. HEP declared a quarterly cash distribution of $0.35 per unit on October 20, 2022.
Commenting on our 2022 third quarter results, Michael Jennings, Chief Executive Officer and President, stated, “HEP generated solid results during the quarter, supported by strong volumes in both our crude and refined product transportation and storage systems. We announced a quarterly distribution of $0.35 per unit and remain committed to our capital allocation strategy.”
Third Quarter 2022 Revenue Highlights
Revenues for the third quarter of 2022 were $149.0 million, an increase of $26.4 million compared to the third quarter of 2021. The increase was mainly due to revenues on our recently acquired Sinclair Transportation assets, higher revenues on our refinery processing units and rate increases that went into effect on July 1, 2022.
Nine Months EndedSeptember 30,2022 Revenue Highlights
Revenues for the nine months ended September 30, 2022, were $405.0 million, an increase of $29.0 million compared to the nine months ended September 30, 2021. The increase was mainly attributable to revenues on our recently acquired Sinclair Transportation assets and increased revenues from our UNEV assets, partially offset by lower revenues on our Cheyenne assets as a result of the conversion of HF Sinclair's Cheyenne refinery to renewable diesel production and lower revenues on our product pipelines servicing HF Sinclair's Navajo refinery. The nine months ended September 30, 2021 included the recognition of the $10 million termination fee related to the termination of HF Sinclair's minimum volume commitment on our Cheyenne assets.
Operating Costs and Expenses Highlights
Operating costs and expenses were $89.5 million and $244.1 million for the three and nine months ended September 30, 2022, representing increases of $21.0 million and $25.3 million from the three and nine months ended September 30, 2021. The increases were mainly due to operating costs and expenses associated with our recently acquired Sinclair Transportation assets as well as higher employee costs, natural gas costs, maintenance costs and materials and supplies costs, partially offset by lower rentals and leases. In addition, the nine months ended September 30, 2021 included a goodwill impairment charge of $11.0 million related to our Cheyenne reporting unit.
Interest Expense and Interest Income Highlights
Interest expense was $23.0 million and $57.0 million for the three and nine months ended September 30, 2022, representing increases of $9.5 million and $16.4 million from the three and nine months ended September 30, 2021. The increases were mainly due to our April 2022 issuance of $400 million in aggregate principal amount of 6.375% senior unsecured notes maturing in April 2027 related to the funding of the cash portion of the Sinclair Transportation acquisition. In addition, market interest rates increased on our senior secured revolving credit facility.
Interest income for the three and nine months ended September 30, 2022, totaled $24.2 million and $61.2 million, representing increases of $17.4 million and $41.2 million compared to the three and nine months ended September 30, 2021. The increases were mainly due to higher sales-type lease interest income from our recently acquired Sinclair Transportation pipelines and terminals and our Cushing Connect pipeline, which was placed into service at the end of the third quarter of 2021.
Equity in Earnings of Equity Method Investments Highlights
Equity in earnings of equity method investments were losses of $16.3 million and $7.3 million for the three and nine months ended September 30, 2022, representing decreases of $20.0 million and $16.1 million compared to the three and nine months ended September 30, 2021. The decreases were mainly due to lower earnings from our equity method investment in Osage due to HEP’s 50% share of incurred and estimated environmental remediation and recovery expenses, net of insurance proceeds received to date, associated with a release of crude oil that occurred in the third quarter of 2022. Additional insurance recoveries will be recorded as they are received. Our share of the remaining insurance coverage is $12.5 million. The pipeline resumed operations in the third quarter of 2022 and remediation efforts are underway. The decrease in Osage was partially offset by equity in earnings from Pioneer Investments Corp., which was acquired as part of our Sinclair Transportation acquisition.
We have scheduled a conference call today at 8:30 AM Eastern Time to discuss financial results. This webcast may be accessed at:
https://events.q4inc.com/attendee/908108663
An audio archive of this webcast will be available using the above noted link through November 21, 2022.
About Holly Energy Partners, L.P.
Holly Energy Partners, L.P. ("HEP"), headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including subsidiaries of HF Sinclair Corporation. HEP, through its subsidiaries and joint ventures, owns and/or operates petroleum product and crude pipelines, tankage and terminals in Colorado, Idaho, Iowa, Kansas, Missouri, Nevada, New Mexico, Oklahoma, Texas, Utah, Washington, and Wyoming, as well as refinery processing units in Kansas and Utah.
HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and other specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Washington, Wyoming and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. HF Sinclair supplies high-quality fuels to more than 1,300 Sinclair branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. Through its subsidiaries, HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in Artesia, New Mexico. HF Sinclair also owns a 47% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P.
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 Securities and Exchange Commission (the “SEC”). 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:
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 September 30, 2022 and 2021.
| Three Months Ended September 30, |
| Change from | ||||||||
| 2022 |
| 2021 |
| 2021 | ||||||
| (In thousands, except per unit data) | ||||||||||
Revenues |
|
|
|
|
| ||||||
Pipelines: |
|
|
|
|
| ||||||
Affiliates – refined product pipelines | $ | 24,731 |
|
| $ | 18,702 |
|
| $ | 6,029 |
|
Affiliates – intermediate pipelines |
| 7,988 |
|
|
| 7,537 |
|
|
| 451 |
|
Affiliates – crude pipelines |
| 23,169 |
|
|
| 19,536 |
|
|
| 3,633 |
|
|
| 55,888 |
|
|
| 45,775 |
|
|
| 10,113 |
|
Third parties – refined product pipelines |
| 6,694 |
|
|
| 8,799 |
|
|
| (2,105 | ) |
Third parties – crude pipelines |
| 14,565 |
|
|
| 12,780 |
|
|
| 1,785 |
|
|
| 77,147 |
|
|
| 67,354 |
|
|
| 9,793 |
|
Terminals, tanks and loading racks: |
|
|
|
|
| ||||||
Affiliates |
| 39,557 |
|
|
| 29,436 |
|
|
| 10,121 |
|
Third parties |
| 4,875 |
|
|
| 3,881 |
|
|
| 994 |
|
|
| 44,432 |
|
|
| 33,317 |
|
|
| 11,115 |
|
|
|
|
|
|
| ||||||
Refinery processing units - Affiliates |
| 27,423 |
|
|
| 21,913 |
|
|
| 5,510 |
|
|
|
|
|
|
| ||||||
Total revenues |
| 149,002 |
|
|
| 122,584 |
|
|
| 26,418 |
|
Operating costs and expenses |
|
|
|
|
| ||||||
Operations |
| 60,470 |
|
|
| 42,793 |
|
|
| 17,677 |
|
Depreciation and amortization |
| 25,236 |
|
|
| 21,826 |
|
|
| 3,410 |
|
General and administrative |
| 3,751 |
|
|
| 3,849 |
|
|
| (98 | ) |
|
| 89,457 |
|
|
| 68,468 |
|
|
| 20,989 |
|
Operating income |
| 59,545 |
|
|
| 54,116 |
|
|
| 5,429 |
|
|
|
|
|
|
| ||||||
Equity in earnings of equity method investments |
| (16,334 | ) |
|
| 3,689 |
|
|
| (20,023 | ) |
Interest expense, including amortization |
| (22,965 | ) |
|
| (13,417 | ) |
|
| (9,548 | ) |
Interest income |
| 24,234 |
|
|
| 6,835 |
|
|
| 17,399 |
|
Gain on sale of assets and other |
| 494 |
|
|
| 77 |
|
|
| 417 |
|
|
| (14,571 | ) |
|
| (2,816 | ) |
|
| (11,755 | ) |
Income before income taxes |
| 44,974 |
|
|
| 51,300 |
|
|
| (6,326 | ) |
State income tax expense |
| (38 | ) |
|
| 4 |
|
|
| (42 | ) |
Net income |
| 44,936 |
|
|
| 51,304 |
|
|
| (6,368 | ) |
Allocation of net income attributable to noncontrolling interests |
| (2,985 | ) |
|
| (2,144 | ) |
|
| (841 | ) |
Net income attributable to Holly Energy Partners | $ | 41,951 |
|
| $ | 49,160 |
|
| $ | (7,209 | ) |
Limited partners’ earnings per unit – basic and diluted | $ | 0.33 |
|
| $ | 0.46 |
|
| $ | (0.13 | ) |
Weighted average limited partners’ units outstanding |
| 126,440 |
|
|
| 105,440 |
|
|
| 21,000 |
|
EBITDA(1) | $ | 65,956 |
|
| $ | 77,564 |
|
| $ | (11,608 | ) |
Adjusted EBITDA(1) | $ | 110,092 |
|
| $ | 83,270 |
|
| $ | 26,822 |
|
Distributable cash flow(2) | $ | 78,731 |
|
| $ | 66,810 |
|
| $ | 11,921 |
|
Volumes (bpd) |
|
|
|
|
| ||||||
Pipelines: |
|
|
|
|
| ||||||
Affiliates – refined product pipelines |
| 167,618 |
|
|
| 115,507 |
|
|
| 52,111 |
|
Affiliates – intermediate pipelines |
| 137,049 |
|
|
| 136,398 |
|
|
| 651 |
|
Affiliates – crude pipelines |
| 507,419 |
|
|
| 271,717 |
|
|
| 235,702 |
|
|
| 812,086 |
|
|
| 523,622 |
|
|
| 288,464 |
|
Third parties – refined product pipelines |
| 38,040 |
|
|
| 46,834 |
|
|
| (8,794 | ) |
Third parties – crude pipelines |
| 131,622 |
|
|
| 136,247 |
|
|
| (4,625 | ) |
|
| 981,748 |
|
|
| 706,703 |
|
|
| 275,045 |
|
Terminals and loading racks: |
|
|
|
|
| ||||||
Affiliates |
| 583,089 |
|
|
| 419,665 |
|
|
| 163,424 |
|
Third parties |
| 37,782 |
|
|
| 52,541 |
|
|
| (14,759 | ) |
|
| 620,871 |
|
|
| 472,206 |
|
|
| 148,665 |
|
|
|
|
|
|
| ||||||
Refinery processing units - Affiliates |
| 72,065 |
|
|
| 72,297 |
|
|
| (232 | ) |
|
|
|
|
|
| ||||||
Total for pipelines and terminal assets (bpd) |
| 1,674,684 |
|
|
| 1,251,206 |
|
|
| 423,478 |
|
| Nine Months Ended September 30, |
| Change from | ||||||||
| 2022 |
| 2021 |
| 2021 | ||||||
| (In thousands, except per unit data) | ||||||||||
Revenues |
|
|
|
|
| ||||||
Pipelines: |
|
|
|
|
| ||||||
Affiliates – refined product pipelines | $ | 62,511 |
|
| $ | 56,520 |
|
| $ | 5,991 |
|
Affiliates – intermediate pipelines |
| 23,015 |
|
|
| 22,564 |
|
|
| 451 |
|
Affiliates – crude pipelines |
| 62,417 |
|
|
| 58,241 |
|
|
| 4,176 |
|
|
| 147,943 |
|
|
| 137,325 |
|
|
| 10,618 |
|
Third parties – refined product pipelines |
| 21,169 |
|
|
| 28,188 |
|
|
| (7,019 | ) |
Third parties – crude pipelines |
| 41,134 |
|
|
| 36,667 |
|
|
| 4,467 |
|
|
| 210,246 |
|
|
| 202,180 |
|
|
| 8,066 |
|
Terminals, tanks and loading racks: |
|
|
|
|
| ||||||
Affiliates |
| 108,997 |
|
|
| 95,431 |
|
|
| 13,566 |
|
Third parties |
| 17,008 |
|
|
| 12,955 |
|
|
| 4,053 |
|
|
| 126,005 |
|
|
| 108,386 |
|
|
| 17,619 |
|
|
|
|
|
|
| ||||||
Refinery processing units - Affiliates |
| 68,719 |
|
|
| 65,436 |
|
|
| 3,283 |
|
|
|
|
|
|
| ||||||
Total revenues |
| 404,970 |
|
|
| 376,002 |
|
|
| 28,968 |
|
Operating costs and expenses |
|
|
|
|
| ||||||
Operations |
| 156,994 |
|
|
| 126,226 |
|
|
| 30,768 |
|
Depreciation and amortization |
| 74,397 |
|
|
| 71,894 |
|
|
| 2,503 |
|
General and administrative |
| 12,745 |
|
|
| 9,664 |
|
|
| 3,081 |
|
Goodwill impairment |
| — |
|
|
| 11,034 |
|
|
| (11,034 | ) |
|
| 244,136 |
|
|
| 218,818 |
|
|
| 25,318 |
|
Operating income |
| 160,834 |
|
|
| 157,184 |
|
|
| 3,650 |
|
|
|
|
|
|
| ||||||
Equity in earnings of equity method investments |
| (7,261 | ) |
|
| 8,875 |
|
|
| (16,136 | ) |
Interest expense, including amortization |
| (56,951 | ) |
|
| (40,595 | ) |
|
| (16,356 | ) |
Interest income |
| 61,212 |
|
|
| 19,997 |
|
|
| 41,215 |
|
Gain on sales-type leases |
| — |
|
|
| 24,677 |
|
|
| (24,677 | ) |
Other income (loss) |
| 640 |
|
|
| 5,994 |
|
|
| (5,354 | ) |
|
| (2,360 | ) |
|
| 18,948 |
|
|
| (21,308 | ) |
Income before income taxes |
| 158,474 |
|
|
| 176,132 |
|
|
| (17,658 | ) |
State income tax expense |
| (83 | ) |
|
| (60 | ) |
|
| (23 | ) |
Net income |
| 158,391 |
|
|
| 176,072 |
|
|
| (17,681 | ) |
Allocation of net income attributable to noncontrolling interests |
| (10,089 | ) |
|
| (6,770 | ) |
|
| (3,319 | ) |
Net income attributable to Holly Energy Partners | $ | 148,302 |
|
| $ | 169,302 |
|
| $ | (21,000 | ) |
Limited partners’ earnings per unit—basic and diluted | $ | 1.22 |
|
| $ | 1.60 |
|
| $ | (0.38 | ) |
Weighted average limited partners’ units outstanding |
| 120,902 |
|
|
| 105,440 |
|
|
| 15,462 |
|
EBITDA (1) | $ | 218,521 |
|
| $ | 261,854 |
|
| $ | (43,333 | ) |
Adjusted EBITDA (1) | $ | 299,673 |
|
| $ | 259,466 |
|
| $ | 40,207 |
|
Distributable cash flow (2) | $ | 221,643 |
|
| $ | 206,707 |
|
| $ | 14,936 |
|
|
|
|
|
|
| ||||||
Volumes (bpd) |
|
|
|
|
| ||||||
Pipelines: |
|
|
|
|
| ||||||
Affiliates – refined product pipelines |
| 138,608 |
|
|
| 118,033 |
|
|
| 20,575 |
|
Affiliates – intermediate pipelines |
| 126,550 |
|
|
| 131,873 |
|
|
| (5,323 | ) |
Affiliates – crude pipelines |
| 460,641 |
|
|
| 261,117 |
|
|
| 199,524 |
|
|
| 725,799 |
|
|
| 511,023 |
|
|
| 214,776 |
|
Third parties – refined product pipelines |
| 41,646 |
|
|
| 47,805 |
|
|
| (6,159 | ) |
Third parties – crude pipelines |
| 133,598 |
|
|
| 131,842 |
|
|
| 1,756 |
|
|
| 901,043 |
|
|
| 690,670 |
|
|
| 210,373 |
|
Terminals and loading racks: |
|
|
|
|
| ||||||
Affiliates |
| 534,305 |
|
|
| 386,400 |
|
|
| 147,905 |
|
Third parties |
| 40,923 |
|
|
| 50,542 |
|
|
| (9,619 | ) |
|
| 575,228 |
|
|
| 436,942 |
|
|
| 138,286 |
|
|
|
|
|
|
| ||||||
Refinery processing units - Affiliates |
| 69,903 |
|
|
| 69,904 |
|
|
| (1 | ) |
|
|
|
|
|
| ||||||
Total for pipelines and terminal assets (bpd) |
| 1,546,174 |
|
|
| 1,197,516 |
|
|
| 348,658 |
|
| (1) | Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is calculated as net income attributable to Holly Energy Partners, L.P. ("Holly Energy Partners") plus (i) interest expense, net of interest income, (ii) state income tax expense and (iii) depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus (i) goodwill impairment, (ii) acquisition integration and regulatory costs, (iii) our share of Osage environmental remediation expenses included in equity in earnings of equity method investments and (iv) tariffs and fees not included in revenues due to impacts from lease accounting for certain tariffs and fees minus (v) gain on sales-type leases, (vi) gain on significant asset sales and (vii) pipeline lease payments not included in operating costs and expenses. Portions of our minimum guaranteed pipeline and terminal tariffs and fees for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. Similarly, certain pipeline lease payments were previously recorded as operating costs and expenses, but the underlying lease was reclassified from an operating lease to a financing lease, and these payments are now recorded as interest expense and reductions in the lease liability. EBITDA and Adjusted EBITDA are not calculations based upon generally accepted accounting principles ("GAAP"). However, the amounts included in the EBITDA and Adjusted EBITDA calculations are derived from amounts included in our consolidated financial statements. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income attributable to Holly Energy Partners or operating income, as indications of our operating performance or as alternatives to operating cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures of other companies. EBITDA and Adjusted EBITDA are presented here because they are widely used financial indicators used by investors and analysts to measure performance. EBITDA and Adjusted EBITDA are also used by our management for internal analysis and as a basis for compliance with financial covenants. |
Set forth below is our calculation of EBITDA and Adjusted EBITDA. |
|
| Three Months Ended September |
| Nine Months Ended September | ||||||||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
|
| (In thousands) | ||||||||||||||
Net income attributable to Holly Energy Partners |
| $ | 41,951 |
|
| $ | 49,160 |
|
| $ | 148,302 |
|
| $ | 169,302 |
|
Add (subtract): |
|
|
|
|
|
|
|
| ||||||||
Interest expense |
|
| 22,965 |
|
|
| 13,417 |
|
|
| 56,951 |
|
|
| 40,595 |
|
Interest income |
|
| (24,234 | ) |
|
| (6,835 | ) |
|
| (61,212 | ) |
|
| (19,997 | ) |
State income tax expense |
|
| 38 |
|
|
| (4 | ) |
|
| 83 |
|
|
| 60 |
|
Depreciation and amortization |
|
| 25,236 |
|
|
| 21,826 |
|
|
| 74,397 |
|
|
| 71,894 |
|
EBITDA |
|
| 65,956 |
|
|
| 77,564 |
|
|
| 218,521 |
|
|
| 261,854 |
|
Gain on sales-type leases |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (24,677 | ) |
Gain on significant asset sales |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5,263 | ) |
Goodwill impairment |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,034 |
|
Share of Osage environmental remediation costs |
|
| 20,297 |
|
|
| — |
|
|
| 20,297 |
|
|
| — |
|
Acquisition integration and regulatory costs |
|
| 373 |
|
|
| — |
|
|
| 2,095 |
|
|
| — |
|
Tariffs and fees not included in revenues |
|
| 25,072 |
|
|
| 7,312 |
|
|
| 63,579 |
|
|
| 21,337 |
|
Lease payments not included in operating costs |
|
| (1,606 | ) |
|
| (1,606 | ) |
|
| (4,819 | ) |
|
| (4,819 | ) |
Adjusted EBITDA |
| $ | 110,092 |
|
| $ | 83,270 |
|
| $ | 299,673 |
|
| $ | 259,466 |
|
| (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 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 September |
| Nine Months Ended September | ||||||||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
|
| (In thousands) | ||||||||||||||
Net income attributable to Holly Energy Partners |
| $ | 41,951 |
|
| $ | 49,160 |
|
| $ | 148,302 |
|
| $ | 169,302 |
|
Add (subtract): |
|
|
|
|
|
|
|
| ||||||||
Depreciation and amortization |
|
| 25,236 |
|
|
| 21,826 |
|
|
| 74,397 |
|
|
| 71,894 |
|
Amortization of discount and deferred debt charges |
|
| 1,060 |
|
|
| 763 |
|
|
| 2,863 |
|
|
| 2,992 |
|
Customer billings greater (less) than net income recognized |
|
| (587 | ) |
|
| (122 | ) |
|
| 34 |
|
|
| (301 | ) |
Maintenance capital expenditures (3) |
|
| (4,679 | ) |
|
| (3,351 | ) |
|
| (15,262 | ) |
|
| (8,834 | ) |
Increase (decrease) in environmental liability |
|
| 5,364 |
|
|
| 271 |
|
|
| 5,120 |
|
|
| 36 |
|
Share of Osage insurance coverage |
|
| 12,500 |
|
|
| — |
|
|
| 12,500 |
|
|
| — |
|
Decrease in reimbursable deferred revenue |
|
| (3,538 | ) |
|
| (2,991 | ) |
|
| (10,127 | ) |
|
| (10,507 | ) |
Gain on sales-type leases |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (24,677 | ) |
Gain on significant asset sales |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5,263 | ) |
Goodwill impairment |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,034 |
|
Other |
|
| 1,424 |
|
|
| 1,254 |
|
|
| 3,816 |
|
|
| 1,031 |
|
Distributable cash flow |
| $ | 78,731 |
|
| $ | 66,810 |
|
| $ | 221,643 |
|
| $ | 206,707 |
|
| (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. |
|
| September 30, |
| December 31, | ||
|
| 2022 |
| 2021 | ||
|
| (In thousands) | ||||
Balance Sheet Data |
|
|
|
| ||
Cash and cash equivalents |
| $ | 15,551 |
| $ | 14,381 |
Working capital |
| $ | 20,570 |
| $ | 17,461 |
Total assets |
| $ | 2,764,971 |
| $ | 2,165,867 |
Long-term debt |
| $ | 1,593,797 |
| $ | 1,333,049 |
Partners' equity |
| $ | 835,178 |
| $ | 443,017 |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221107005377/en/
CONTACT: John Harrison, Senior Vice President,
Chief Financial Officer and Treasurer
Craig Biery, Vice President, Investor Relations
Holly Energy Partners, L.P.
214-954-6511
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: ENERGY PROFESSIONAL SERVICES OIL/GAS FINANCE
SOURCE: Holly Energy Partners, L.P.
Copyright Business Wire 2022.
PUB: 11/07/2022 06:30 AM/DISC: 11/07/2022 06:32 AM
http://www.businesswire.com/news/home/20221107005377/en