Supplemental Guarantor / Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2012



June 30, 2012	Parent		Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2	$	4,214		$	—		$	4,216
Accounts receivable	—		30,169			—			30,169
Intercompany accounts receivable (payable)	47,371		(47,371		)	—			—
Prepaid and other current assets	42		3,368			—			3,410
Total current assets	47,415		(9,620		)	—			37,795
Properties and equipment, net	—		532,548			—			532,548
Investment in subsidiaries	716,967		—			(716,967		)	—
Transportation agreements, net	—		98,070			—			98,070
Goodwill	—		256,498			—			256,498
Investment in SLC Pipeline	—		25,427			—			25,427
Other assets	1,757		7,603			—			9,360
Total assets	$	766,139	$	910,526		$	(716,967	)	$	959,698

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	9,695		$	—		$	9,695
Accrued interest	9,602		53			—			9,655
Deferred revenue	—		3,603			—			3,603
Accrued property taxes	—		1,910			—			1,910
Other current liabilities	478		2,103			—			2,581
Total current liabilities	10,080		17,364			—			27,444
Long-term debt	443,195		170,000			—			613,195
Other long-term liabilities	—		6,195			—			6,195
Partners’ equity	312,864		716,967			(716,967		)	312,864
Total liabilities and partners’ equity	$	766,139	$	910,526		$	(716,967	)	$	959,698

Condensed Consolidating Balance Sheet



December 31, 2011	Parent		Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2	$	3,267		$	—		$	3,269
Accounts receivable	—		34,071			—			34,071
Intercompany accounts receivable (payable)	17,745		(17,745		)	—			—
Prepaid and other current assets	266		2,378			—			2,644
Total current assets	18,013		21,971			—			39,984
Properties and equipment, net	—		536,425			—			536,425
Investment in subsidiaries	651,217		—			(651,217		)	—
Transportation agreements, net	—		101,543			—			101,543
Goodwill	—		256,498			—			256,498
Investment in SLC Pipeline	—		25,302			—			25,302
Other assets	1,322		5,882			—			7,204
Total assets	$	670,552	$	947,621		$	(651,217	)	$	966,956

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	11,406		$	—		$	11,406
Accrued interest	7,498		782			—			8,280
Deferred revenue	—		4,032			—			4,032
Accrued property taxes	—		2,196			—			2,196
Other current liabilities	689		1,088			—			1,777
Total current liabilities	8,187		19,504			—			27,691
Long-term debt	332,988		272,900			—			605,888
Other long-term liabilities	—		4,000			—			4,000
Partners’ equity	329,377		651,217			(651,217		)	329,377
Total liabilities and partners’ equity	$	670,552	$	947,621		$	(651,217	)	$	966,956

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended June 30, 2012	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	54,224		$	—		$	54,224
Third parties	—			9,468			—			9,468
	—			63,692			—			63,692
Operating costs and expenses:
Operations	—			17,923			—			17,923
Depreciation and amortization	—			9,132			—			9,132
General and administrative	484			2,003			—			2,487
	484			29,058			—			29,542
Operating income (loss)	(484		)	34,634			—			34,150
Equity in earnings of subsidiaries	32,339			—			(32,339		)	—
Equity in earnings of SLC Pipeline	—			794			—			794
Interest expense	(8,310		)	(3,014		)	—			(11,324		)
Loss on early extinguishment of debt	(383		)	—			—			(383		)
	23,646			(2,220		)	(32,339		)	(10,913		)
Income before income taxes	23,162			32,414			(32,339		)	23,237
State income tax expense	—			(75		)	—			(75		)
Net income	23,162			32,339			(32,339		)	23,162
Other comprehensive (loss)	(235		)	—			—			(235		)
Comprehensive income	$	22,927		$	32,339		$	(32,339	)	$	22,927

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended June 30, 2011	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	37,139		$	—		$	37,139
Third parties	—			13,801			—			13,801
	—			50,940			—			50,940
Operating costs and expenses:
Operations	—			14,366			—			14,366
Depreciation and amortization	—			7,713			—			7,713
General and administrative	952			621			—			1,573
	952			22,700			—			23,652
Operating income (loss)	(952		)	28,240			—			27,288
Equity in earnings of subsidiaries	26,086			—			(26,086		)	—
Equity in earnings of SLC Pipeline	—			467			—			467
Interest expense	(6,121		)	(2,603		)	—			(8,724		)
	19,965			(2,136		)	(26,086		)	(8,257		)
Income before income taxes	19,013			26,104			(26,086		)	19,031
State income tax expense	—			(18		)	—			(18		)
Net income	19,013			26,086			(26,086		)	19,013
Other comprehensive income	271			—			—			271
Comprehensive income	$	19,284		$	26,086		$	(26,086	)	$	19,284

Condensed Consolidating Statement of Comprehensive Income



Six Months Ended June 30, 2012	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	107,017		$	—		$	107,017
Third parties	—			20,190			—			20,190
	—			127,207			—			127,207
Operating costs and expenses:
Operations	—			34,911			—			34,911
Depreciation and amortization	—			19,396			—			19,396
General and administrative	1,926			2,600			—			4,526
	1,926			56,907			—			58,833
Operating income (loss)	(1,926		)	70,300			—			68,374
Equity in earnings of subsidiaries	65,064			—			(65,064		)	—
Equity in earnings of SLC Pipeline	—			1,625			—			1,625
Interest expense	(15,018		)	(6,711		)	—			(21,729		)
Loss on early extinguishment of debt	(2,979		)	—			—			(2,979		)
	47,067			(5,086		)	(65,064		)	(23,083		)
Income before income taxes	45,141			65,214			(65,064		)	45,291
State income tax expense	—			(150		)	—			(150		)
Net income	45,141			65,064			(65,064		)	45,141
Other comprehensive income	685			—			—			685
Comprehensive income	$	45,826		$	65,064		$	(65,064	)	$	45,826

Condensed Consolidating Statement of Comprehensive Income



Six Months Ended June 30, 2011	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	71,246		$	—		$	71,246
Third parties	—			24,711			—			24,711
	—			95,957			—			95,957
Operating costs and expenses:
Operations	—			27,162			—			27,162
Depreciation and amortization	—			15,353			—			15,353
General and administrative	1,703			1,233			—			2,936
	1,703			43,748			—			45,451
Operating income (loss)	(1,703		)	52,209			—			50,506
Equity in earnings of subsidiaries	48,128			—			(48,128		)	—
Equity in earnings of SLC Pipeline	—			1,207			—			1,207
Interest expense	(12,243		)	(5,030		)	—			(17,273		)
Other	—			(12		)	—			(12		)
	35,885			(3,835		)	(48,128		)	(16,078		)
Income before income taxes	34,182			48,374			(48,128		)	34,428
State income tax expense	—			(246		)	—			(246		)
Net income	34,182			48,128			(48,128		)	34,182
Other comprehensive income	1,554			—			—			1,554
Comprehensive income	$	35,736		$	48,128		$	(48,128	)	$	35,736



Six Months Ended June 30, 2012	Parent			Guarantor Subsidiaries				Eliminations		Consolidated
	(In thousands)
Cash flows from operating activities	$	(45,135	)	$	118,635			$	—	$	73,500

Cash flows from investing activities
Additions to properties and equipment	—			(12,008		)		—		(12,008		)

Cash flows from financing activities
Net repayments under credit agreement	—			(30,000		)		—		(30,000		)
Proceeds from issuance of senior notes	294,750			—				—		294,750
Repayments of senior notes	(185,000		)	—				—		(185,000		)
Repayment of promissory notes	—			(72,900		)		—		(72,900		)
Distributions to HEP unitholders	(59,977		)	—				—		(59,977		)
Purchase of units for incentive grants	(4,533		)	—				—		(4,533		)
Deferred financing costs	(567		)	(2,595		)		—		(3,162		)
Other	462			(185		)	—	—		277
	45,135			(105,680		)		—		(60,545		)
Cash and cash equivalents
Increase for the period	—			947				—		947
Beginning of period	2			3,267				—		3,269
End of period	$	2		$	4,214			$	—	$	4,216

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 2011	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Cash flows from operating activities	$	46,241		$	48		$	—	$	46,289

Cash flows from investing activities
Additions to properties and equipment	—			(22,900		)	—		(22,900		)

Cash flows from financing activities
Net borrowings under credit agreement	—			27,000			—		27,000
Distributions to HEP unitholders	(44,862		)	—			—		(44,862		)
Purchase of units for incentive grants	(1,379		)	—			—		(1,379		)
Deferred financing costs	—			(3,149		)	—		(3,149		)
	(46,241		)	23,851			—		(22,390		)
Cash and cash equivalents
Increase for the period	—			999			—		999
Beginning of period	2			401			—		403
End of period	$	2		$	1,400		$	—	$	1,402