Supplemental Guarantor / Non-Guarantor Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]



December 31, 2016	Parent		Guarantor Restricted Subsidiaries		Non-Guarantor Non-Restricted Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2	$	301	$	3,354	$	—		$	3,657
Accounts receivable	—		45,056		5,554		(202		)	50,408
Prepaid and other current assets	11		2,633		244		—			2,888
Total current assets	13		47,990		9,152		(202		)	56,953

Properties and equipment, net	—		957,045		371,350		—			1,328,395
Investment in subsidiaries	1,086,008		280,671		—		(1,366,679		)	—
Transportation agreements, net	—		66,856		—		—			66,856
Goodwill	—		256,498		—		—			256,498
Equity method investments	—		165,609		—		—			165,609
Other assets	725		9,201		—		—			9,926
Total assets	$	1,086,746	$	1,783,870	$	380,502	$	(1,366,881	)	$	1,884,237

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	24,245	$	2,899	$	(202	)	$	26,942
Accrued interest	17,300		769		—		—			18,069
Deferred revenue	—		8,797		2,305		—			11,102
Accrued property taxes	—		4,514		883		—			5,397
Other current liabilities	14		3,208		3		—			3,225
Total current liabilities	17,314		41,533		6,090		(202		)	64,735

Long-term debt	690,912		553,000		—		—			1,243,912
Other long-term liabilities	286		15,975		184		—			16,445
Deferred revenue	—		47,035		—		—			47,035
Class B unit	—		40,319		—		—			40,319
Equity - partners	378,234		1,086,008		280,671		(1,366,679		)	378,234
Equity - noncontrolling interest	—		—		93,557		—			93,557
Total liabilities and partners’ equity	$	1,086,746	$	1,783,870	$	380,502	$	(1,366,881	)	$	1,884,237

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	—		921,217		371,843		—			1,293,060
Investment in subsidiaries	834,444		283,287		—		(1,117,731		)	—
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	$	835,262	$	1,671,950	$	388,363	$	(1,117,929	)	$	1,777,646

LIABILITIES AND PARTNERS’ 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	531,793		834,444		283,287		(1,117,731		)	531,793
Equity - noncontrolling interest	—		—		94,429		—			94,429
Total liabilities and partners’ equity	$	835,262	$	1,671,950	$	388,363	$	(1,117,929	)	$	1,777,646

(1) Retrospectively adjusted as described in Note 2.

Condensed Consolidating Statement of Comprehensive Income



Year Ended December 31, 2016	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	307,049		$	26,067		$	—		$	333,116
Third parties	—			47,326			21,601			—			68,927
	—			354,375			47,668			—			402,043
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			111,181			12,805			—			123,986
Depreciation and amortization	—			55,083			15,345			—			70,428
General and administrative	3,804			8,728			—			—			12,532
	3,804			174,992			28,150			—			206,946
Operating income (loss)	(3,804		)	179,383			19,518			—			195,097
Equity in earnings of subsidiaries	193,432			14,634			—			(208,066		)	—
Equity in earnings of equity method investments	—			14,213			—			—			14,213
Interest income	—			421			19			—			440
Interest expense	(31,387		)	(21,165		)	—			—			(52,552		)
Gain on sale of assets and other	—			702			(25		)	—			677
	162,045			8,805			(6		)	(208,066		)	(37,222		)
Income (loss) before income taxes	158,241			188,188			19,512			(208,066		)	157,875
State income tax expense	—			(285		)	—			—			(285		)
Net income (loss)	158,241			187,903			19,512			(208,066		)	157,590
Net loss applicable to predecessor	—			10,657			—			—			10,657
Allocation of net income attributable to noncontrolling interests	—			(5,128		)	(4,878		)	—			(10,006		)
Net income (loss) attributable to Holly Energy Partners	158,241			193,432			14,634			(208,066		)	158,241
Other comprehensive income (loss)	(99		)	(99		)	—			99			(99		)
Comprehensive income (loss)	$	158,142		$	193,333		$	14,634		$	(207,967	)	$	158,142

Condensed Consolidating Statement of Comprehensive Income



Year Ended December 31, 2015⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	269,277		$	22,944		$	—		$	292,221
Third parties	—			47,189			19,465			—			66,654
	—			316,466			42,409			—			358,875
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			94,087			11,469			—			105,556
Depreciation and amortization	—			48,302			15,004			—			63,306
General and administrative	3,616			8,940			—			—			12,556
	3,616			151,329			26,473			—			181,418
Operating income (loss)	(3,616		)	165,137			15,936			—			177,457
Equity in earnings of subsidiaries	161,097			11,915			—			(173,012		)	—
Equity in earnings of equity method investments	—			4,803			—			—			4,803
Interest income	—			526			—			—			526
Interest expense	(20,273		)	(17,145		)	—			—			(37,418		)
Gain on sale of assets and other	—			535			(49		)	—			486
	140,824			634			(49		)	(173,012		)	(31,603		)
Income (loss) before income taxes	137,208			165,771			15,887			(173,012		)	145,854
State income tax expense	—			(228		)	—			—			(228		)
Net income (loss)	137,208			165,543			15,887			(173,012		)	145,626
Net loss applicable to predecessor	—			2,702			—			—			2,702
Allocation of net income attributable to noncontrolling interests	—			(7,148		)	(3,972		)	—			(11,120		)
Net income (loss) attributable to Holly Energy Partners	137,208			161,097			11,915			(173,012		)	137,208
Other comprehensive income (loss)	236			236			—			(236		)	236
Comprehensive income (loss)	$	137,444		$	161,333		$	11,915		$	(173,248	)	$	137,444

(1) Retrospectively adjusted as described in Note 2.

Condensed Consolidating Statement of Comprehensive Income



Year Ended December 31, 2014 ⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	254,364		$	22,073		$	(1,241	)	$	275,196
Third parties	—			45,711			11,638			—			57,349
	—			300,075			33,711			(1,241		)	332,545
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			94,766			12,660			(1,241		)	106,185
Depreciation and amortization	—			47,955			14,574			—			62,529
General and administrative	2,658			8,166			—			—			10,824
	2,658			150,887			27,234			(1,241		)	179,538
Operating income (loss)	(2,658		)	149,188			6,477			—			153,007
Equity in earnings (loss) of subsidiaries	138,691			4,858			—			(143,549		)	—
Equity in earnings of equity method investments	—			2,987			—			—			2,987
Interest income	—			3			—			—			3
Interest expense	(22,831		)	(13,270		)	—			—			(36,101		)
Loss on early extinguishment of debt	(7,677		)	—			—			—			(7,677		)
Gain on sale of assets and other	—			82			—			—			82
	108,183			(5,340		)	—			(143,549		)	(40,706		)
Income (loss) before income taxes	105,525			143,848			6,477			(143,549		)	112,301
State income tax expense	—			(235		)	—			—			(235		)
Net income (loss)	105,525			143,613			6,477			(143,549		)	112,066
Net loss applicable to predecessors	—			1,747			—			—			1,747
Allocation of net income attributable to noncontrolling interests	—			(6,669		)	(1,619		)	—			(8,288		)
Net income (loss) attributable to Holly Energy Partners	105,525			138,691			4,858			(143,549		)	105,525
Other comprehensive income (loss)	98			98			—			(98		)	98
Comprehensive income (loss)	$	105,623		$	138,789		$	4,858		$	(143,647	)	$	105,623

Condensed Consolidating Statement of Cash Flows



Year Ended December 31, 2016	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(20,441	)	$	245,771		$	32,052		$	(14,634	)	$	242,748

Cash flows from investing activities
Additions to properties and equipment	—			(44,447		)	(15,257		)	—			(59,704		)
Acquisition of tanks and operating units	—			(44,119		)	—			—			(44,119		)
Purchase of tanks and operating units	—			(42,627		)	—			—			(42,627		)
Proceeds from the sale of assets	—			427			—			—			427
Distributions in excess of equity in earnings of equity companies	—			2,993			—			—			2,993
Distributions from UNEV	—			2,616			—			(2,616		)	—
	—			(125,157		)	(15,257		)	(2,616		)	(143,030		)
Cash flows from financing activities
Net repayments under credit agreement	—			(159,000		)	—			—			(159,000		)
Net intercompany financing activities	(302,600		)	302,600			—			—			—
Proceeds from issuance of 6% Senior Notes	394,000			—			—			—			394,000
Proceeds from issuance of common units	125,870			—			—			—			125,870
Contributions from general partner	2,577			—			—			—			2,577
Distributions to HEP unitholders	(192,037		)	—			—			—			(192,037		)
Distributions to noncontrolling interest	—			—			(23,000		)	17,250			(5,750		)
Distribution to HFC for acquisitions	(30,378		)	(287,122		)	—			—			(317,500		)
Contributions from HFC for acquisitions	(3,397		)	54,659			—			—			51,262
Distributions to HFC for Osage acquisition	—			(1,245		)	—			—			(1,245		)
Contributions from HFC for Osage acquisition	31,287			(31,287		)	—			—			—
Purchase of units for incentive grants	(3,521		)	—			—			—			(3,521		)
Deferred financing costs	(910		)	(3,085		)	—			—			(3,995		)
Other	(450		)	(1,285		)	—			—			(1,735		)
	20,441			(125,765		)	(23,000		)	17,250			(111,074		)
Cash and cash equivalents
Increase for the period	—			(5,151		)	(6,205		)	—			(11,356		)
Beginning of period	2			5,452			9,559			—			15,013
End of period	$	2		$	301		$	3,354		$	—		$	3,657

Condensed Consolidating Statement of Cash Flows



Year Ended December 31, 2015 ⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(19,490	)	$	232,650		$	29,501		$	(11,915	)	$	230,746

Cash flows from investing activities
Additions to properties and equipment	—			(65,574		)	(1,442		)	—			(67,016		)
Purchase of tanks and operating units	—			(126,105		)	—			—			(126,105		)
Purchase of investment in Frontier Pipeline	—			(55,032		)	—			—			(55,032		)
Proceeds from sale of assets	—			1,279			—			—			1,279
Distributions from UNEV	—			1,960			—			(1,960		)	—
Distribution in excess of equity in earnings in equity companies	—			194			—			—			194
	—			(243,278		)	(1,442		)	(1,960		)	(246,680		)

Cash flows from financing activities
Net borrowings under credit agreement	—			141,000			—			—			141,000
Net intercompany financing activities	192,108			(192,108		)	—			—			—
Distributions to noncontrolling interests	—			—			(18,500		)	13,875			(4,625		)
Distributions to HEP unitholders	(169,063		)	—			—			—			(169,063		)
Contributions from HFC for acquisitions	—			128,476			—			—			128,476
Distributions to HFC for acquisitions	—			(62,000		)	—			—			(62,000		)
Deferred financing costs	—			(962		)	—			—			(962		)
Purchase of units for restricted grants	(3,555		)	—			—			—			(3,555		)
Other	—			(1,154		)	—			—			(1,154		)
	19,490			13,252			(18,500		)	13,875			28,117
Cash and cash equivalents
Increase (decrease) for the period	—			2,624			9,559			—			12,183
Beginning of period	2			2,828			—			—			2,830
End of period	$	2		$	5,452		$	9,559		$	—		$	15,013

(1) Retrospectively adjusted as described in Note 2.

Condensed Consolidating Statement of Cash Flows



Year Ended December 31, 2014 ⁽¹⁾	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(25,339	)	$	191,889		$	19,398		$	(692	)	$	185,256

Cash flows from investing activities
Additions to properties and equipment	—			(101,492		)	(8,201		)	—			(109,693		)
Acquisition of tanks and operating units	—			(88,993		)	—			—			(88,993		)
Distributions from UNEV	—			11,383			—			(11,383		)	—
Distributions in excess of equity in earnings in equity companies	—			263			—			—			263
	—			(178,839		)	(8,201		)	(11,383		)	(198,423		)

Cash flows from financing activities
Net borrowings under credit agreement	—			208,000			—			—			208,000
Net intercompany financing activities	339,771			(339,771		)	—			—			—
Redemption of senior notes	(156,188		)	—			—			—			(156,188		)
Distributions to noncontrolling interests	—			—			(16,100		)	12,075			(4,025		)
Distributions to HEP unitholders	(154,670		)	—			—			—			(154,670		)
Contributions from HFC f acquisitions	—			120,111			—			—			120,111
Purchase of units for restricted grants	(3,577		)	—			—			—			(3,577		)
Deferred financing costs	—			(9		)	—			—			(9		)
Other	3			—			—			—			3
	25,339			(11,669		)	(16,100		)	12,075			9,645
Cash and cash equivalents
Increase for the period	—			1,381			(4,903		)	—			(3,522		)
Beginning of period	2			1,447			4,903			—			6,352
End of period	$	2		$	2,828		$	—		$	—		$	2,830

(1) Retrospectively adjusted as described in Note 2.