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8-K - FORM 8-K - HOLLY ENERGY PARTNERS LP | c12611e8vk.htm |
Exhibit 99.1
Press Release February 15, 2011 |
Holly Energy Partners, L.P. Reports Fourth Quarter and Year End Results
Dallas, Texas Holly Energy Partners, L.P. (HEP or the Partnership) (NYSE-HEP) today
reported financial results for the fourth quarter of 2010. For the quarter, distributable cash
flow was $24.3 million, up $3.7 million, or 18% compared to fourth quarter of 2009. For the year
ended December 31, 2010, distributable cash flow was $91.1 million, up $18.8 million or 26%
compared to the same period of 2009. Based on these results, HEP announced its 25th
consecutive distribution increase on January 26, 2011, raising the quarterly distribution from
$0.835 to $0.845, representing a 5% increase over the distribution for the fourth quarter of 2009.
For the quarter, income from continuing operations was $18.5 million ($0.68 per basic and diluted
limited partner unit) compared to $12 million ($0.47 per basic and diluted limited partner unit)
for the fourth quarter of 2009. Net income was $18.5 million ($0.68 per basic and diluted limited
partner unit) versus $27.6 million ($1.22 per basic and diluted limited partner unit) for the
fourth quarter of 2009, which included Rio Grande Pipeline Companys operating results and a gain
on sale of $14.5 million, presented as discontinued operations. Excluding discontinued operations,
the increase in overall earnings is due principally to contributions from our December 2009 and
March 2010 asset acquisitions, higher shipment volumes and an increase in deferred revenue
realized, partially offset by increased interest costs.
For the year, income from continuing operations was $58.9 million ($2.12 per basic and diluted
limited partner unit) compared to $46.2 million ($2.12 per basic and diluted limited partner unit)
for 2009. Net income was $58.9 million ($2.12 per basic and diluted limited partner unit) versus
$66 million ($3.18 per basic and diluted limited partner unit) for the year ended December 31,
2009, which included discontinued operations.
Commenting on the fourth quarter of 2010, Matt Clifton, Chairman of the Board and Chief Executive
Officer stated, The fourth quarter generated solid financial results, extending our track record
of producing consistent levels of distributable cash flow and EBITDA. For the quarter, increased
distributable cash flow over the same period of 2009 allowed us to declare our 25th
consecutive distribution increase. EBITDA (reaching a new quarterly high) was $35.7 million, an
increase of $9.8 million or 38% over last years fourth quarter, and for the full year period, was
$123.8 million, an increase of $23.1 million or 23% over 2009, reflecting earnings contributions
from our 2009 and March 2010 asset acquisitions. Furthermore, overall shipping levels on our
pipeline systems reached an all time high. We are extremely pleased with these operating results.
Currently, we are on track to complete the interconnect pipeline project at Hollys Tulsa refinery
in the spring and are finalizing terms to provide throughput services under a long-term
service agreement with Holly. Looking forward, we will continue to explore other opportunities to
provide further growth in our distributable cash flow, asset base and geographic footprint,
Clifton said.
Fourth Quarter 2010 Revenue Highlights
Total revenues from continuing operations for the quarter were $49.4 million, a $10.9 million
increase compared to the fourth quarter of 2009. This was due to revenues attributable to our
December 2009 and March 2010 asset acquisitions, increased pipeline shipments and a $0.8 million
increase in previously deferred revenue realized. Overall pipeline shipments increased 9% over the
fourth quarter of 2009, reflecting a 7% and 26% increase in affiliate and third-party pipeline
shipments, respectively.
| Revenues from our refined product pipelines were $21.4 million, an increase of $2.6
million, on shipments averaging 147.1 thousand barrels per day (mbpd) compared to 133.4
mbpd for the fourth quarter of 2009. This includes a $0.6 million increase in previously
deferred revenue realized. |
| Revenues from our intermediate pipelines were $5.3 million, an increase of $0.4 million,
on shipments averaging 88.5 mbpd compared to 85.5 mbpd for the fourth quarter of 2009.
This includes a $0.2 million increase in previously deferred revenue realized. |
| Revenues from our crude pipelines were $10 million, an increase of $2 million. This is
primarily due to a $1.5 million year-over-year increase in revenues attributable to our
Roadrunner Pipeline agreement beginning in December 2009. Volumes shipped on our crude
pipelines averaged 156 mbpd compared to 140 mbpd for the fourth quarter of 2009. |
| Revenues from terminal, tankage and loading rack fees were $12.6 million, an increase of
$6 million compared to the fourth quarter of 2009. This includes a $5.7 million
year-over-year increase in revenues attributable to volumes transferred and stored at our
Tulsa storage and rack facilities. |
Revenues from continuing operations for the three months ended December 31, 2010 include the
recognition of $2.7 million of prior shortfalls billed to shippers in 2009, as they did not meet
their minimum volume commitments in any of the subsequent four quarters. As of December 31, 2010,
deferred revenue in our consolidated balance sheet was $10.4 million. Such deferred revenue will
be recognized in earnings either as payment for shipments in excess of guaranteed levels or when
shipping rights expire unused over the next four quarters.
Full Year 2010 Revenue Highlights
Total revenues from continuing operations for the year were $182.1 million, a $35.5 million
increase compared to 2009. This was due to our recent asset acquisitions and higher tariffs on
affiliate shipments, partially offset by a $7.3 million decrease in previously deferred revenue
realized. For 2010, overall pipeline shipments were up 7%, reflecting increased affiliate volumes
attributable to Holly Corporations (Holly) first quarter of 2009 Navajo refinery expansion,
including volumes shipped on our new 16 intermediate and Beeson pipelines, partially offset by a
decrease in third-party shipments. Additionally, prior year affiliate shipments reflect lower
first quarter volumes as a result of production downtime during a major maintenance turnaround of
the Navajo refinery during the first quarter of 2009.
| Revenues from our refined product pipelines were $76.4 million, a decrease of $4.7
million. This is primarily due to an $8.5 million decrease in previously deferred revenue
realized that was partially offset by an overall increase refined product pipeline
shipments. Volumes shipped on our refined product pipelines averaged 135 mbpd compared to
131.7 mbpd for year ended December 31, 2009, reflecting an increase in affiliate shipments,
partially offset by a decline in third-party shipments. |
| Revenues from our intermediate pipelines were $21 million, an increase of $4.6 million,
on shipments averaging 84.3 mbpd compared to 69.8 mbpd for the year ended December 31,
2009. This increase includes revenues attributable to volumes shipped on our 16-inch
intermediate pipeline and a $1.2 million increase in previously deferred revenue realized. |
| Revenues from our crude pipelines were $38.9 million, an increase of $9.7 million. This
is primarily due to a $8.4 million year-over-year increase in revenues attributable to our
Roadrunner Pipeline agreement. Volumes shipped on our crude pipelines averaged 144 mbpd
compared to 137.2 mbpd for the year ended December 31, 2009. |
| Revenues from terminal, tankage and loading rack fees were $45.7 million, an increase of
$25.9 million compared to the year ended December 31, 2009. This includes a $24.7 million
year-over-year increase in revenues attributable to volumes transferred and stored at our
Tulsa storage and rack facilities. |
Our revenues from continuing operations for the year ended December 31, 2010 include the
recognition of $8.4 million of prior shortfalls billed to shippers in 2009, as they did not meet
their minimum volume commitments in any of the subsequent four quarters.
Cost and Expense Highlights
Operating costs and expenses were $23.1 million and $91.3 million for the three months and year
ended December 31, 2010, respectively, representing increases of $1.1 million and $13 million
compared to the same periods of 2009. These increases were due to costs attributable to our recent
asset acquisitions, higher year-to-date throughput volumes on our heritage pipelines, early 2010
transaction related expenses, and higher depreciation, maintenance and payroll expense.
Additionally, interest expense was $8.5 million and $34 million for the three months and year ended
December 31, 2010, respectively, representing increases of $3.2 million and $12.5 million compared
to the same periods of 2009. These increases reflect interest on our 8.25% senior notes issued in
March 2010 and costs of $1.1 million from a partial settlement of an interest rate swap in the
second quarter of 2010.
We have scheduled a webcast conference call today at 4:00 PM Eastern Time to discuss financial
results. This webcast may be accessed at: http://www.videonewswire.com/event.asp?id=76110.
An audio archive of this webcast will be available using the above noted link through February 28,
2011.
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 Holly Corporation subsidiaries. The Partnership owns and operates petroleum product and
crude gathering pipelines, tankage and terminals in Texas, New Mexico, Arizona, Washington, Idaho,
Oklahoma and Utah. In addition, the Partnership owns a 25% interest in SLC Pipeline LLC, a 95-mile
intrastate pipeline system serving refineries in the Salt Lake City, Utah area.
Holly Corporation operates through its subsidiaries a 100,000 barrels-per-stream-day (bpsd)
refinery located in Artesia, New Mexico, a 31,000 bpsd refinery in Woods Cross, Utah and a 125,000
bpsd refinery in Tulsa, Oklahoma. A Holly Corporation subsidiary owns a 34% interest (including
the general partner interest) in the Partnership.
The following is a safe harbor statement under the Private Securities Litigation Reform Act of
1995: 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, 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. Such 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 in our terminals; |
| the economic viability of Holly Corporation, Alon USA, Inc. and our other customers; |
| the demand for refined petroleum products in markets we serve; |
| our ability to successfully purchase and integrate additional operations in the future; |
| 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, 2010 and 2009.
Three Months Ended | ||||||||||||
December 31, | Change from | |||||||||||
2010 | 2009 | 2009 | ||||||||||
(In thousands, except per unit data) | ||||||||||||
Revenues |
||||||||||||
Pipelines: |
||||||||||||
Affiliates refined product pipelines |
$ | 12,595 | $ | 12,020 | $ | 575 | ||||||
Affiliates intermediate pipelines |
5,325 | 4,924 | 401 | |||||||||
Affiliates crude pipelines |
10,025 | 8,051 | 1,974 | |||||||||
27,945 | 24,995 | 2,950 | ||||||||||
Third parties refined product pipelines |
8,818 | 6,805 | 2,013 | |||||||||
36,763 | 31,800 | 4,963 | ||||||||||
Terminals and loading racks: |
||||||||||||
Affiliates |
10,442 | 4,654 | 5,788 | |||||||||
Third parties |
2,164 | 1,971 | 193 | |||||||||
12,606 | 6,625 | 5,981 | ||||||||||
Total revenues |
49,369 | 38,425 | 10,944 | |||||||||
Operating costs and expenses: |
||||||||||||
Operations |
12,760 | 11,927 | 833 | |||||||||
Depreciation and amortization |
8,644 | 7,505 | 1,139 | |||||||||
General and administrative |
1,735 | 2,607 | (872 | ) | ||||||||
23,139 | 22,039 | 1,100 | ||||||||||
Operating income |
26,230 | 16,386 | 9,844 | |||||||||
Equity in earnings of SLC Pipeline |
798 | 610 | 188 | |||||||||
Interest income |
1 | 1 | | |||||||||
Interest expense, including amortization |
(8,491 | ) | (5,276 | ) | (3,215 | ) | ||||||
Other income |
15 | 2 | 13 | |||||||||
(7,677 | ) | (4,663 | ) | (3,014 | ) | |||||||
Income from continuing operations before income taxes |
18,553 | 11,723 | 6,830 | |||||||||
State income tax |
(80 | ) | 246 | (326 | ) | |||||||
Income from continuing operations |
18,473 | 11,969 | 6,504 | |||||||||
Discontinued operations(1) |
||||||||||||
Income from discontinued operations, net of noncontrolling interest of $388 |
| 1,196 | (1,196 | ) | ||||||||
Gain on sale of interest in Rio Grande |
| 14,479 | (14,479 | ) | ||||||||
Income from discontinued operations |
| 15,675 | (15,675 | ) | ||||||||
Net income |
18,473 | 27,644 | (9,171 | ) | ||||||||
Less general partner interest in net income, including incentive distributions(2) |
3,425 | 2,784 | 641 | |||||||||
Limited partners interest in net income |
$ | 15,048 | $ | 24,860 | $ | (9,812 | ) | |||||
Limited partners earnings per unit basic and diluted:(2) |
||||||||||||
Income from continuing operations |
$ | 0.68 | $ | 0.47 | $ | 0.21 | ||||||
Income from discontinued operations |
| 0.75 | (0.75 | ) | ||||||||
Net income |
$ | 0.68 | $ | 1.22 | $ | (0.54 | ) | |||||
Weighted average limited partners units outstanding |
22,079 | 20,434 | 1,645 | |||||||||
EBITDA(3) |
$ | 35,687 | $ | 25,876 | $ | 9,811 | ||||||
Distributable cash flow(4) |
$ | 24,254 | $ | 20,536 | $ | 3,718 | ||||||
Volumes from continuing operations (bpd)(1) |
||||||||||||
Pipelines: |
||||||||||||
Affiliates refined product pipelines |
99,301 | 95,455 | 3,846 | |||||||||
Affiliates intermediate pipelines |
88,530 | 85,519 | 3,011 | |||||||||
Affiliates crude pipelines |
156,048 | 140,000 | 16,048 | |||||||||
343,879 | 320,974 | 22,905 | ||||||||||
Third parties refined product pipelines |
47,775 | 37,958 | 9,817 | |||||||||
391,654 | 358,932 | 32,722 | ||||||||||
Terminals and loading racks: |
||||||||||||
Affiliates |
181,745 | 136,576 | 45,169 | |||||||||
Third parties |
41,772 | 40,228 | 1,544 | |||||||||
223,517 | 176,804 | 46,713 | ||||||||||
Total for pipelines and terminal assets (bpd) |
615,171 | 535,736 | 79,435 | |||||||||
Years Ended | ||||||||||||
December 31, | Change from | |||||||||||
2010 | 2009 | 2009 | ||||||||||
(In thousands, except per unit data) | ||||||||||||
Revenues |
||||||||||||
Pipelines: |
||||||||||||
Affiliates refined product pipelines |
$ | 48,482 | $ | 43,206 | $ | 5,276 | ||||||
Affiliates intermediate pipelines |
20,998 | 16,362 | 4,636 | |||||||||
Affiliates crude pipelines |
38,932 | 29,266 | 9,666 | |||||||||
108,412 | 88,834 | 19,578 | ||||||||||
Third parties refined product pipelines |
27,954 | 37,930 | (9,976 | ) | ||||||||
136,366 | 126,764 | 9,602 | ||||||||||
Terminals and loading racks: |
||||||||||||
Affiliates |
37,964 | 12,561 | 25,403 | |||||||||
Third parties |
7,767 | 7,236 | 531 | |||||||||
45,731 | 19,797 | 25,934 | ||||||||||
Total revenues |
182,097 | 146,561 | 35,536 | |||||||||
Operating costs and expenses: |
||||||||||||
Operations |
52,947 | 44,003 | 8,944 | |||||||||
Depreciation and amortization |
30,682 | 26,714 | 3,968 | |||||||||
General and administrative |
7,719 | 7,586 | 133 | |||||||||
91,348 | 78,303 | 13,045 | ||||||||||
Operating income |
90,749 | 68,258 | 22,491 | |||||||||
Equity in earnings of SLC Pipeline |
2,393 | 1,919 | 474 | |||||||||
Interest income |
7 | 11 | (4 | ) | ||||||||
Interest expense, including amortization |
(34,001 | ) | (21,501 | ) | (12,500 | ) | ||||||
Other income |
17 | 67 | (50 | ) | ||||||||
SLC Pipeline acquisition costs |
| (2,500 | ) | 2,500 | ||||||||
(31,584 | ) | (22,004 | ) | (9,580 | ) | |||||||
Income from continuing operations before income taxes |
59,165 | 46,254 | 12,911 | |||||||||
State income tax |
(296 | ) | (20 | ) | (276 | ) | ||||||
Income from continuing operations |
58,869 | 46,234 | 12,635 | |||||||||
Discontinued operations(1) |
||||||||||||
Income from discontinued operations, net of noncontrolling interest of $1,579 |
| 5,301 | (5,301 | ) | ||||||||
Gain on sale of interest in Rio Grande |
| 14,479 | (14,479 | ) | ||||||||
Income from discontinued operations |
| 19,780 | (19,780 | ) | ||||||||
Net income |
58,869 | 66,014 | (7,145 | ) | ||||||||
Less general partner interest in net income, including incentive distributions(2) |
12,152 | 7,947 | 4,205 | |||||||||
Limited partners interest in net income |
$ | 46,717 | $ | 58,067 | $ | (11,350 | ) | |||||
Limited partners earnings per unit basic and diluted:(2) |
||||||||||||
Income from continuing operations |
$ | 2.12 | $ | 2.12 | $ | | ||||||
Income from discontinued operations |
| 1.06 | (1.06 | ) | ||||||||
Net income |
$ | 2.12 | $ | 3.18 | $ | (1.06 | ) | |||||
Weighted average limited partners units outstanding |
22,079 | 18,268 | 3,811 | |||||||||
EBITDA(3) |
$ | 123,841 | $ | 100,707 | $ | 23,134 | ||||||
Distributable cash flow(4) |
$ | 91,054 | $ | 72,213 | $ | 18,841 | ||||||
Volumes from continuing operations (bpd)(1) |
||||||||||||
Pipelines: |
||||||||||||
Affiliates refined product pipelines |
96,094 | 88,001 | 8,093 | |||||||||
Affiliates intermediate pipelines |
84,277 | 69,794 | 14,483 | |||||||||
Affiliates crude pipelines |
144,011 | 137,244 | 6,767 | |||||||||
324,382 | 295,039 | 29,343 | ||||||||||
Third parties refined product pipelines |
38,910 | 43,709 | (4,799 | ) | ||||||||
363,292 | 338,748 | 24,544 | ||||||||||
Terminals and loading racks: |
||||||||||||
Affiliates |
178,903 | 114,431 | 64,472 | |||||||||
Third parties |
39,568 | 42,206 | (2,638 | ) | ||||||||
218,471 | 156,637 | 61,834 | ||||||||||
Total for pipelines and terminal assets (bpd) |
581,763 | 495,385 | 86,378 | |||||||||
(1) | On December 1, 2009, we sold our 70% interest in Rio Grande. Results of operations of
Rio Grande are presented in discontinued operations. Pipeline volume information excludes
volumes attributable to Rio Grande. |
|
(2) | Net income 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. For
the three months and year ended December 31, 2010, general partner incentive distributions
were $3.1 million and $11.2 million, respectively, and were $2.3 million and $6.7 million
for the respective periods of 2009. Net income attributable to the limited partners is
divided by the weighted average limited partner units outstanding in computing the limited
partners per unit interest in net income. |
|
(3) | Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated
as net income plus (i) interest expense, net of interest income, (ii) state income tax and
(iii) depreciation and amortization. EBITDA is not a calculation based upon U.S. generally
accepted accounting principles (GAAP). However, the amounts included in the EBITDA
calculation are derived from amounts included in our consolidated financial statements,
with the exception of EBITDA from discontinued operations. EBITDA should not be considered
as an alternative to net income 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 | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
Income from continuing operations |
$ | 18,473 | $ | 11,969 | $ | 58,869 | $ | 46,234 | ||||||||
Add (subtract): |
||||||||||||||||
Interest expense |
8,223 | 5,224 | 30,453 | 20,620 | ||||||||||||
Amortization of discount and deferred
debt issuance costs |
268 | 177 | 1,008 | 706 | ||||||||||||
Increase (decrease) in interest expense
change in fair value of interest rate
swaps and swap settlement costs |
| (125 | ) | 2,540 | 175 | |||||||||||
Interest income |
(1 | ) | (1 | ) | (7 | ) | (11 | ) | ||||||||
State income tax |
80 | (246 | ) | 296 | 20 | |||||||||||
Depreciation and amortization |
8,644 | 7,505 | 30,682 | 26,714 | ||||||||||||
EBITDA from discontinued operations (excludes gain on sale of Rio Grande) |
| 1,373 | | 6,249 | ||||||||||||
EBITDA |
$ | 35,687 | $ | 25,876 | $ | 123,841 | $ | 100,707 | ||||||||
(4) | Distributable cash flow is not a calculation based upon GAAP. However, the amounts
included in the calculation are derived from amounts separately presented in our
consolidated financial statements, with the exception of equity in excess cash flows over
earnings of SLC Pipeline, maintenance capital expenditures and distributable cash flow from
discontinued operations. Distributable cash flow should not be considered in isolation or
as an alternative to net income 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 also is 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 | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands) | ||||||||||||||||
Income from continuing operations |
$ | 18,473 | $ | 11,969 | $ | 58,869 | $ | 46,234 | ||||||||
Add (subtract): |
||||||||||||||||
Depreciation and amortization |
8,644 | 7,505 | 30,682 | 26,714 | ||||||||||||
Amortization of discount and deferred debt issuance costs |
268 | 177 | 1,008 | 706 | ||||||||||||
Increase (decrease) in interest expense
change in fair value of interest rate
swaps and swap settlement costs |
| (125 | ) | 2,540 | 175 | |||||||||||
Equity in excess cash flows over earnings of SLC Pipeline |
(118 | ) | 165 | 407 | 552 | |||||||||||
Increase (decrease) in deferred revenue |
(1,244 | ) | 820 | 2,035 | (7,256 | ) | ||||||||||
SLC Pipeline acquisition costs* |
| | | 2,500 | ||||||||||||
Maintenance capital expenditures** |
(1,769 | ) | (1,333 | ) | (4,487 | ) | (3,595 | ) | ||||||||
Distributable cash flow from discontinued
operations (excludes gain on sale of
Rio Grande) |
| 1,358 | | 6,183 | ||||||||||||
Distributable cash flow |
$ | 24,254 | $ | 20,536 | $ | 91,054 | $ | 72,213 | ||||||||
* | We expensed the $2.5 million finders fee associated with our joint venture
agreement with Plains that closed in March 2009. These costs directly relate to our
interest in the new joint venture pipeline and are similar to expansion capital
expenditures; accordingly, we have added back these costs to arrive at distributable
cash flow. |
|
** | 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, | |||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Balance Sheet Data |
||||||||
Cash and cash equivalents |
$ | 403 | $ | 2,508 | ||||
Working capital |
$ | (7,758 | ) | $ | 4,404 | |||
Total assets |
$ | 643,273 | $ | 616,845 | ||||
Long-term debt(5) |
$ | 491,648 | $ | 390,827 | ||||
Total equity(6) |
$ | 109,372 | $ | 193,864 |
(5) | Includes $159 million and $206 million of credit agreement advances at December 31, 2010
and 2009, respectively. |
|
(6) | As a master limited partnership, we distribute our available cash, which historically
has exceeded our net income 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. Additionally, if
the assets transferred to us upon our initial public offering in 2004, the intermediate
pipelines purchased from Holly in 2005 and the assets purchased from Holly in 2009 and
March 2010 had been acquired from third parties, our acquisition cost in excess of Hollys
basis in the transferred assets of $218 million would have been recorded as increases to
our properties and equipment and intangible assets instead of decreases to partners
equity. |
FOR FURTHER INFORMATION, Contact:
Bruce R. Shaw, Senior Vice President and
Chief Financial Officer
M. Neale Hickerson, Vice President,
Investor Relations
Holly Energy Partners, L.P.
214/871-3555
Chief Financial Officer
M. Neale Hickerson, Vice President,
Investor Relations
Holly Energy Partners, L.P.
214/871-3555