Partners’ Equity, Income Allocations and Cash Distributions (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Allocation of General Partner Interest in Net Income

The following table presents the allocation of the general partner interest in net income for the periods presented below:



	Years Ended December 31,
	2011		2010		2009
	(In thousands)
General partner interest in net income	$	1,250	$	971	$	1,210
General partner incentive distribution	15,519		11,181		6,737
Total general partner interest in net income attributable to HEP	$	16,769	$	12,152	$	7,947

Schedule of Distributions Made to Members or Limited Partners, by Distribution

Our general partner, HEP Logistics, is entitled to incentive distributions if the amount we distribute with respect to any quarter exceeds specified target levels presented below:



	Total Quarterly Distribution Target Amount	Marginal Percentage Interest in Distributions
	Total Quarterly Distribution Target Amount	Unitholders		General Partner
Minimum quarterly distribution	$0.50	98	%	2	%
First target distribution	Up to $0.55	98	%	2	%
Second target distribution	above $0.55 up to $0.625	85	%	15	%
Third target distribution	above $0.625 up to $0.75	75	%	25	%
Thereafter	Above $0.75	50	%	50	%

On January 25, 2012, we announced our cash distribution for the fourth quarter of 2011 of $0.885 per unit. The distribution is payable on all common and general partner units and will be paid February 14, 2012 to all unitholders of record on February 6, 2012.

The following table presents the allocation of our regular quarterly cash distributions to the general and limited partners for the periods in which they apply. Our distributions are declared subsequent to quarter end; therefore, the amounts presented do not reflect distributions paid during the periods presented below.



	Years Ended December 31,
	2011		2010		2009
	(in thousands, except per unit data)
General partner interest	$	1,981	$	1,724	$	1,356
General partner incentive distribution	15,519		11,181		6,737
Total general partner distribution	17,500		12,905		8,093
Limited partner distribution	81,508		73,223		59,725
Total regular quarterly cash distribution	$	99,008	$	86,128	$	67,818
Cash distribution per unit applicable to limited partners	$	3.48	$	3.32	$	3.16