- Reported net income attributable to HEP of $45.6 million or
$0.43 per unit
- Announced quarterly distribution of $0.35 per unit
- Reported EBITDA of $70.8 million and Adjusted EBITDA of $79.7
million
Holly Energy Partners, L.P. (“HEP” or the “Partnership”) (NYSE:
HEP) today reported financial results for the fourth quarter of
2021. Net income attributable to HEP for the fourth quarter was
$45.6 million ($0.43 per basic and diluted limited partner unit)
compared to $51.3 million ($0.49 per basic and diluted limited
partner unit) for the fourth quarter of 2020.
Distributable cash flow was $63.1 million for the quarter, a
decrease of $6.9 million, or 9.9%, compared to the fourth quarter
of 2020. HEP declared a quarterly cash distribution of $0.35 on
January 21, 2022.
The decrease in net income attributable to HEP was mainly due to
lower volumes on our pipeline systems, lower on-going revenues from
our Cheyenne assets as a result of the conversion of HollyFrontier
Corporation's (“HollyFrontier”) Cheyenne refinery to renewable
diesel production and higher operating expenses, partially offset
by lower interest expense and higher equity in earnings of equity
method investments.
Commenting on our 2021 fourth quarter results, Michael Jennings,
Chief Executive Officer, stated, "HEP delivered another quarter of
strong operational performance and solid financial results despite
the planned turnaround and unplanned maintenance at HollyFrontier’s
Navajo refinery. We ended the year with a distributable cash flow
coverage ratio of 1.8x and continued our deleveraging strategy,
bringing HEP’s leverage ratio to 3.9x."
"Looking forward, we expect to hold the quarterly distribution
constant at $0.35 per unit during 2022, and we remain committed to
our distribution strategy focused on funding all capital
expenditures and distributions within operating cash flow and
maintaining distributable cash flow coverage of 1.3x or greater
with the goal of reducing leverage to 3.0-3.5x."
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 December 31, 2021.
Fourth Quarter 2021 Revenue Highlights
Revenues for the quarter were $118.5 million, a decrease of $9.0
million compared to the fourth quarter of 2020. The decrease was
mainly due to lower on-going revenues from our Cheyenne assets as a
result of the conversion of the HollyFrontier Cheyenne refinery to
renewable diesel production, lower volumes on our product pipelines
servicing 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, 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 our refined product pipelines were $22.7
million, a decrease of $5.9 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
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 $7.5
million, 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 HollyFrontier's
Navajo refinery while revenue remained constant mainly due to
contractual minimum volume guarantees.
- Revenues from our crude pipelines were $30.7 million, a
decrease of $1.3 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 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 $33.9 million, a decrease of $5.0 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 HollyFrontier's El Dorado refinery.
Revenues decreased mainly due to lower on-going revenues on our
Cheyenne assets as a result of the conversion of the HollyFrontier
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 $23.7
million, an increase of $3.2 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 Woods Cross and El Dorado
processing units. Revenues increased mainly due to higher recovery
of natural gas costs.
Year Ended December 31, 2021 Revenue Highlights
Revenues for the year ended December 31, 2021, were $494.5
million, a decrease of $3.4 million compared to the year ended
December 31, 2020. The decrease was mainly attributable to lower
on-going revenues from our Cheyenne assets as a result of the
conversion of the HollyFrontier Cheyenne refinery to renewable
diesel production, lower volumes on our product pipelines servicing
HollyFrontier's Navajo refinery and Delek's Big Spring refinery,
and recording certain tariffs and fees as interest income under
sales-type lease accounting that were recorded as revenue for the
year ended December 31, 2020, partially offset by higher revenues
from our crude pipeline systems in Wyoming and Utah and our Woods
Cross and El Dorado refinery processing units mainly due to higher
recovery of natural gas costs.
- Revenues from our refined product pipelines were $107.4
million, a decrease of $9.5 million, on shipments averaging 158.1
mbpd compared to 161.5 mbpd for the year ended December 31, 2020.
The volume and revenue decreases were mainly due to lower volumes
on pipelines servicing HollyFrontier's Navajo refinery and Delek's
Big Spring refinery.
- Revenues from our intermediate pipelines were $30.1
million, an increase of $0.1 million compared to the year ended
December 31, 2020. Shipments averaged 125.2 mbpd compared to 137.1
mbpd for the year ended December 31, 2020. The decrease in volumes
was mainly due to lower throughputs on our intermediate pipelines
servicing HollyFrontier's Tulsa and Navajo refineries while revenue
remained relatively constant mainly due to contractual minimum
volume guarantees.
- Revenues from our crude pipelines were $125.6 million,
an increase of $6.7 million compared to the year ended December 31,
2020. Shipments averaged 408.6 mbpd compared to 387.7 mbpd for the
year ended December 31, 2020. The increases were mainly
attributable to increased volumes on our crude pipeline systems in
Wyoming and Utah partially offset by lower volumes on our pipeline
systems servicing HollyFrontier's Navajo refinery. Volumes also
increased due to the addition of volumes on our Cushing Connect
Pipeline in Oklahoma, which went into service at the end of the
third quarter of 2021.
- Revenues from terminal, tankage and loading rack fees
were $142.3 million, a decrease of $9.4 million compared to the
year ended December 31, 2020. Refined products and crude oil
terminalled in the facilities averaged 442.9 mbpd compared to 442.2
mbpd for the year ended December 31, 2020. Revenues decreased
mainly due to lower on-going revenues on our Cheyenne assets as a
result of the conversion of the HollyFrontier 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 ended December 31, 2020.
- Revenues from refinery processing units were $89.1
million, an increase of $8.8 million compared to the year ended
December 31, 2020. Throughputs averaged 69.6 mbpd compared to 61.4
mbpd for the year ended December 31, 2020. The increase in volumes
was mainly due to increased throughput for both our Woods Cross and
El 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 $69.2 million and $288.0
million for the three months and year ended December 31, 2021,
respectively, representing an increase of $4.4 million and a
decrease of $4.9 million from the three months and year ended
December 31, 2020, respectively. The fourth quarter increase was
mainly due to an increase in employee costs, maintenance and
expense projects and natural gas costs, partially offset by lower
depreciation. The decrease for the year ended December 31, 2021 was
mainly due to the higher goodwill impairment charge related to our
Cheyenne reporting unit in 2020 than recorded in 2021, partially
offset by higher employee costs, maintenance costs, pipeline rental
costs and natural gas costs.
Interest expense was $13.2 million and $53.8 million for the
three months and year ended December 31, 2021, respectively,
representing decreases of $0.6 million and $5.6 million over the
same periods of 2020. The decreases were mainly due to lower
average borrowings outstanding under our senior secured revolving
credit facility.
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://events.q4inc.com/attendee/223318006
An audio archive of this webcast will be available using the
above noted link through March 8, 2022.
About Holly Energy Partners, L.P.
Holly Energy Partners, L.P. (“HEP” or the “Partnership”),
headquartered in Dallas, Texas, provides petroleum product and
crude oil transportation, terminalling, storage and throughput
services to the petroleum industry, including subsidiaries of
HollyFrontier Corporation. The Partnership, through its
subsidiaries and joint ventures, owns and/or operates petroleum
product and crude pipelines, tankage and terminals in Texas, New
Mexico, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming and
Kansas, as well as refinery processing units in Utah and
Kansas.
HollyFrontier Corporation (“HollyFrontier”), 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 owns and
operates refineries located in Kansas, Oklahoma, New Mexico,
Washington 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. In addition,
HollyFrontier produces base oils and other specialized lubricants
in the U.S., Canada and the Netherlands, and exports products to
more than 80 countries. HollyFrontier also owns a 57% limited
partner interest and a non-economic general partner interest in
HEP.
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 and
Sinclair 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 December 31,
2021 and 2020.
Three Months Ended December
31,
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 Holly Energy
Partners
$
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 December
31,
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
Goodwill impairment
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 Holly Energy
Partners
$
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 Holly Energy Partners plus (i) interest
expense, net of interest income, (ii) state income tax and (iii)
depreciation and amortization. Adjusted EBITDA is calculated as
EBITDA plus (i) loss on early extinguishment of debt, (ii) goodwill
impairment, (iii) tariffs and fees not included in revenues due to
impacts from lease accounting for certain tariffs and fees minus
(iv) gain on sales-type leases, (v) gain on significant asset
sales, (vi) HEP's pro-rata share of gain on business interruption
insurance settlement and (vii) pipeline lease payments not included
in operating costs and expenses. Portions of our minimum guaranteed
pipeline tariffs 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. These pipeline tariffs
were previously recorded as revenues prior to the renewal of the
throughput agreement, which triggered sales-type lease accounting.
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
December 31,
Years Ended
December 31,
2021
2020
2021
2020
(In thousands)
Net income attributable to Holly Energy
Partners
$
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
)
—
Goodwill impairment
—
—
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 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,
2021
2020
2021
2020
(In thousands)
Net income attributable to Holly Energy
Partners
$
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
)
—
Goodwill impairment
—
—
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.
December 31,
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/
John Harrison, Senior Vice President, Chief Financial Officer
and Treasurer Craig Biery, Vice President, Investor Relations Holly
Energy Partners, L.P. 214/954-6511
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