Supplemental Guarantor / Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]



June 30, 2016	Parent		Guarantor Restricted Subsidiaries		Non-Guarantor Non-Restricted Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2	$	393	$	4,487	$	—		$	4,882
Accounts receivable	—		44,951		5,345		(163		)	50,133
Prepaid and other current assets	86		3,284		1,268		—			4,638
Total current assets	88		48,628		11,100		(163		)	59,653

Properties and equipment, net	—		675,929		378,233		—			1,054,162
Investment in subsidiaries	598,391		286,340		—		(884,731		)	—
Transportation agreements, net	—		70,330		—		—			70,330
Goodwill	—		256,498		—		—			256,498
Equity method investments	—		165,362		—		—			165,362
Other assets	677		10,647		—		—			11,324
Total assets	$	599,156	$	1,513,734	$	389,333	$	(884,894	)	$	1,617,329

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—	$	18,837	$	2,753	$	(163	)	$	21,427
Accrued interest	6,500		161		—		—			6,661
Deferred revenue	—		7,931		1,622		—			9,553
Accrued property taxes	—		2,205		2,969		—			5,174
Other current liabilities	11		3,263		24		—			3,298
Total current liabilities	6,511		32,397		7,368		(163		)	46,113

Long-term debt	297,136		786,000		—		—			1,083,136
Other long-term liabilities	245		16,767		178		—			17,190
Deferred revenue	—		42,474		—		—			42,474
Class B unit	—		37,705		—		—			37,705
Equity - partners	295,264		598,391		381,787		(980,178		)	295,264
Equity - noncontrolling interest	—		—		—		95,447			95,447
Total liabilities and equity	$	599,156	$	1,513,734	$	389,333	$	(884,894	)	$	1,617,329

Condensed Consolidating Balance Sheet



December 31, 2015 ⁽¹⁾	Parent		Guarantor Restricted Subsidiaries		Non-Guarantor Non-Restricted Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2	$	5,452	$	9,559	$	—		$	15,013
Accounts receivable	—		35,558		5,715		(198		)	41,075
Prepaid and other current assets	174		3,634		1,246		—			5,054
Total current assets	176		44,644		16,520		(198		)	61,142

Properties and equipment, net	—		687,336		371,843		—			1,059,179
Investment in subsidiaries	600,563		283,287		—		(883,850		)	—
Transportation agreements, net	—		73,805		—		—			73,805
Goodwill	—		256,498		—		—			256,498
Equity method investments	—		79,438		—		—			79,438
Other assets	642		13,061		—		—			13,703
Total assets	$	601,381	$	1,438,069	$	388,363	$	(884,048	)	$	1,543,765

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—	$	19,448	$	3,333	$	(198	)	$	22,583
Accrued interest	6,500		252		—		—			6,752
Deferred revenue	—		6,010		6,006		—			12,016
Accrued property taxes	—		2,627		1,137		—			3,764
Other current liabilities	7		3,802		—		—			3,809
Total current liabilities	6,507		32,139		10,476		(198		)	48,924

Long-term debt	296,752		712,000		—		—			1,008,752
Other long-term liabilities	210		20,363		171		—			20,744
Deferred revenue	—		39,063		—		—			39,063
Class B unit	—		33,941		—		—			33,941
Equity - partners	297,912		600,563		377,716		(978,279		)	297,912
Equity - noncontrolling interest	—		—		—		94,429			94,429
Total liabilities and equity	$	601,381	$	1,438,069	$	388,363	$	(884,048	)	$	1,543,765

(1) Retrospectively adjusted as described in Note 1.

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended June 30, 2016	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-restricted Subsidiaries		Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	74,787		$	4,392	$	—		$	79,179
Third parties	—			11,691			4,027		—			15,718
	—			86,478			8,419		—			94,897
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			24,444			2,811		—			27,255
Depreciation and amortization				11,922			3,787		—			15,709
General and administrative	971			1,892			—		—			2,863
	971			38,258			6,598		—			45,827
Operating income (loss)	(971		)	48,220			1,821		—			49,070
Equity in earnings of subsidiaries	45,164			1,370			—		(46,534		)	—
Equity in earnings of equity method investments	—			3,623			—		—			3,623
Interest expense	(5,073		)	(6,203		)	—		—			(11,276		)
Interest income	—			107			5		—			112
Loss on sale of assets	—			(5		)	—		—			(5		)
Other income (expense)	—			5			—		—			5
	40,091			(1,103		)	5		(46,534		)	(7,541		)
Income (loss) before income taxes	39,120			47,117			1,826		(46,534		)	41,529
State income tax expense	—			(54		)	—		—			(54		)
Net income (loss)	39,120			47,063			1,826		(46,534		)	41,475
Allocation of net (income) attributable to noncontrolling interests	—			—			—		(2,355		)	(2,355		)
Net income (loss) attributable to Holly Energy Partners	39,120			47,063			1,826		(48,889		)	39,120
Other comprehensive income (loss)	(142		)	(142		)	—		142			(142		)
Comprehensive income (loss) attributable to Holly Energy Partners	$	38,978		$	46,921		$	1,826	$	(48,747	)	$	38,978

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended June 30, 2015 ⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	64,727		$	3,545		$	25		$	68,297
Third parties	—			11,895			3,287			—			15,182
	—			76,622			6,832			25			83,479
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			22,222			3,153			25			25,400
Depreciation and amortization	—			11,432			3,747			—			15,179
General and administrative	637			2,059			—			—			2,696
	637			35,713			6,900			25			43,275
Operating income (loss)	(637		)	40,909			(68		)	—			40,204
Equity in earnings of subsidiaries	36,111			(88		)	—			(36,023		)	—
Equity in earnings of equity method investments	—			631			—			—			631
Interest expense	(5,073		)	(3,983		)	—			—			(9,056		)
Interest income	—			3			—			—			3
Gain on sale of assets	—			50			—			—			50
Other income (expense)	—			70			(49		)	—			21
	31,038			(3,317		)	(49		)	(36,023		)	(8,351		)
Income (loss) before income taxes	30,401			37,592			(117		)	(36,023		)	31,853
State income tax expense	—			64			—			—			64
Net income (loss)	30,401			37,656			(117		)	(36,023		)	31,917
Allocation of net (income) attributable to noncontrolling interests	—			—			—			(1,743		)	(1,743		)
Net income (loss) attributable to Holly Energy Partners	30,401			37,656			(117		)	(37,766		)	30,174
Other comprehensive income (loss)	222			222			—			(222		)	222
Comprehensive income (loss) attributable to Holly Energy Partners	$	30,623		$	37,878		$	(117	)	$	(37,988	)	$	30,396

(1) Retrospectively adjusted as described in Note 1.

Condensed Consolidating Statement of Comprehensive Income



Six Months Ended June 30, 2016	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-restricted Subsidiaries		Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	147,039		$	14,986	$	—		$	162,025
Third parties	—			22,423			12,459		—			34,882
	—			169,462			27,445		—			196,907
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			48,335			5,842		—			54,177
Depreciation and amortization	—			24,715			7,545		—			32,260
General and administrative	2,136			3,818			—		—			5,954
	2,136			76,868			13,387		—			92,391
Operating income (loss)	(2,136		)	92,594			14,058		—			104,516
Equity in earnings (loss) of subsidiaries	94,154			10,553			—		(104,707		)	—
Equity in earnings of equity method investments	—			6,388			—		—			6,388
Interest expense	(10,140		)	(11,671		)	—		—			(21,811		)
Interest income	—			212			12		—			224
Loss on sale of assets	—			(5		)	—		—			(5		)
Other income (expense)	—			(4		)	1		—			(3		)
	84,014			5,473			13		(104,707		)	(15,207		)
Income (loss) before income taxes	81,878			98,067			14,071		(104,707		)	89,309
State income tax expense	—			(149		)	—		—			(149		)
Net income (loss)	81,878			97,918			14,071		(104,707		)	89,160
Allocation of net income attributable to noncontrolling interests	—			—			—		(7,282		)	(7,282		)
Net income (loss) attributable to Holly Energy Partners	81,878			97,918			14,071		(111,989		)	81,878
Other comprehensive income (loss)	(595		)	(595		)	—		595			(595		)
Comprehensive income (loss)	$	81,283		$	97,323		$	14,071	$	(111,394	)	$	81,283

Condensed Consolidating Statement of Comprehensive Income



Six Months Ended June 30, 2015 ⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	127,783		$	12,769		$	—		$	140,552
Third parties	—			23,282			9,401			—			32,683
	—			151,065			22,170			—			173,235
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			47,852			5,613			—			53,465
Depreciation and amortization	—			22,498			7,479			—			29,977
General and administrative	1,700			4,286			—			—			5,986
	1,700			74,636			13,092			—			89,428
Operating income (loss)	(1,700		)	76,429			9,078			—			83,807
Equity in earnings (loss) of subsidiaries	74,044			6,772			—			(80,816		)	—
Equity in earnings of equity method investments	—			1,365			—			—			1,365
Interest expense	(10,140		)	(7,684		)	—			—			(17,824		)
Interest income	—			3			—			—			3
Gain on sale of assets	—			209			—			—			209
Other income	—			70			(49		)	—			21
	63,904			735			(49		)	(80,816		)	(16,226		)
Income (loss) before income taxes	62,204			77,164			9,029			(80,816		)	67,581
State income tax expense	—			(37		)	—			—			(37		)
Net income (loss)	62,204			77,127			9,029			(80,816		)	67,544
Allocation of net income attributable to noncontrolling interests	—			—			—			(5,770		)	(5,770		)
Net income (loss) attributable to Holly Energy Partners	62,204			77,127			9,029			(86,586		)	61,774
Other comprehensive income (loss)	(527		)	(527		)	—			527			(527		)
Comprehensive income (loss)	$	61,677		$	76,600		$	9,029		$	(86,059	)	$	61,247

(1) Retrospectively adjusted as described in Note 1.

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 2016	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(10,608	)	$	113,145		$	19,155		$	(7,500	)	$	114,192

Cash flows from investing activities
Additions to properties and equipment	—			(18,440		)	(14,227		)	—			(32,667		)
Purchase of investment in Frontier Pipeline	—			(42,500		)	—			—			(42,500		)
Proceeds from sale of assets	—			18			—			—			18
Distributions in excess of equity in earnings of equity investments	—			1,496			—			—			1,496
	—			(59,426		)	(14,227		)	—			(73,653		)

Cash flows from financing activities
Net borrowings under credit agreement	—			74,000			—			—			74,000
Net intercompany financing activities	86,789			(86,789		)	—			—			—
Proceeds from issuance of common units	14,586			(896		)	—			—			13,690
Contribution from general partner	120			—			—			—			120
Contribution from general partner for Osage	31,285			(31,285		)	—			—			—
Distributions to HEP unitholders	(91,109		)	—			—			—			(91,109		)
Distribution to HFC for Osage	—			(1,245		)	—			—			(1,245		)
Distributions to HFC for Tulsa tank acquisition	(30,378		)	(9,122		)	—			—			(39,500		)
Contributions from HFC for Tulsa tank expenditures	99			—			—			—			99
Distributions to noncontrolling interests	—			—			(10,000		)	7,500			(2,500		)
Purchase of units for incentive grants	(784		)	—			—			—			(784		)
Deferred financing cost	—			(3,084		)	—			—			(3,084		)
Other	—			(357		)	—			—			(357		)
	10,608			(58,778		)	(10,000		)	7,500			(50,670		)

Cash and cash equivalents
Increase (decrease) for the period	—			(5,059		)	(5,072		)	—			(10,131		)
Beginning of period	2			5,452			9,559			—			15,013
End of period	$	2		$	393		$	4,487		$	—		$	4,882

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 2015 ⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(9,639	)	$	111,307		$	15,358		$	(6,772	)	$	110,254

Cash flows from investing activities
Additions to properties and equipment	—			(41,559		)	(784		)	—			(42,343		)
Purchase of El Dorado crude tanks	—			(27,500		)	—			—			(27,500		)
Proceeds from sale of assets	—			965			—			—			965
Distributions from noncontrolling interest	—			1,853			—			(1,853		)	—
Distributions in excess of equity in earnings of equity investments	—			198			—			—			198
	—			(66,043		)	(784		)	(1,853		)	(68,680		)

Cash flows from financing activities
Net repayments under credit agreement	—			33,000			—			—			33,000
Net intercompany financing activities	92,498			(92,498		)	—			—			—
Contributions from HFC for El Dorado Operating acquisition	—			18,888			—			—			18,888
Distributions to HEP unitholders	(82,614		)	—			—			—			(82,614		)
Contribution from HFC for Tulsa tank expenditures	—			722			—			—			722
Distributions to noncontrolling interests	—			—			(11,500		)	8,625			(2,875		)
Purchase of units for incentive grants	(247		)	—			—			—			(247		)
Other	—			(854		)	—			—			(854		)
	9,637			(40,742		)	(11,500		)	8,625			(33,980		)

Cash and cash equivalents
Increase (decrease) for the period	(2		)	4,522			3,074			—			7,594
Beginning of period	2			2,828			—			—			2,830
End of period	$	—		$	7,350		$	3,074		$	—		$	10,424

(1) Retrospectively adjusted as described in Note 1.