Supplemental Guarantor / Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]



March 31, 2020		Parent		Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries		Eliminations			Consolidated
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	1,722	$	(1,152	)	$	18,712	$	—		$	19,282
Accounts receivable		—		49,018			5,988		(962		)	54,044
Prepaid and other current assets		445		6,483			620					7,548
Total current assets		2,167		54,349			25,320		(962		)	80,874

Properties and equipment, net		—		1,123,996			341,793		—			1,465,789
Operating lease right-of-use assets	0	—		3,379			208		—			3,587
Net investment in leases		—		134,108			—		—			134,108
Investment in subsidiaries		1,837,112		277,876			—		(2,114,988		)	—
Intangible assets, net		—		97,820			—		—			97,820
Goodwill		—		270,336			—		—			270,336
Equity method investments		—		84,526			39,054		—			123,580
Other assets		6,110		6,080			—		—			12,190
Total assets		$	1,845,389	$	2,052,470		$	406,375	$	(2,115,950	)	$	2,188,284

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	—	$	13,363		$	13,541	$	(962	)	$	25,942
Accrued interest		4,695		—			—		—			4,695
Deferred revenue		—		10,510			300		—			10,810
Accrued property taxes		—		3,845			1,862		—			5,707
Current operating lease liabilities		—		1,167			68		—			1,235
Current finance lease liabilities		—		3,238			—		—			3,238
Other current liabilities		121		2,923			21		—			3,065
Total current liabilities		4,816		35,046			15,792		(962		)	54,692

Long-term debt		1,502,154		—			—		—			1,502,154
Noncurrent operating lease liabilities		—		2,709			—		—			2,709
Noncurrent finance lease liabilities		—		70,640			—		—			70,640
Other long-term liabilities		260		11,658			532		—			12,450
Deferred revenue		—		45,078			—		—			45,078
Class B unit		—		50,227			—		—			50,227
Equity - partners		338,159		1,837,112			277,876		(2,114,988		)	338,159
Equity - noncontrolling interest		—		—			112,175		—			112,175
Total liabilities and equity		$	1,845,389	$	2,052,470		$	406,375	$	(2,115,950	)	$	2,188,284

Condensed Consolidating Balance Sheet



December 31, 2019	Parent		Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	4,790	$	(709	)	$	9,206	$	—		$	13,287
Accounts receivable	—		60,229			8,549		(331		)	68,447
Prepaid and other current assets	282		6,710			637		—			7,629
Total current assets	5,072		66,230			18,392		(331		)	89,363

Properties and equipment, net	—		1,133,534			333,565		—			1,467,099
Operating lease right-of-use assets	—		3,243			12		—			3,255
Net investment in leases	—		134,886			—		—			134,886
Investment in subsidiaries	1,844,812		275,279			—		(2,120,091		)	—
Intangible assets, net	—		101,322			—		—			101,322
Goodwill	—		270,336			—		—			270,336
Equity method investments	—		82,987			37,084		—			120,071
Other assets	6,722		6,178			—		—			12,900
Total assets	$	1,856,606	$	2,073,995		$	389,053	$	(2,120,422	)	$	2,199,232

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—	$	29,895		$	4,991	$	(331	)	$	34,555
Accrued interest	13,206		—			—		—			13,206
Deferred revenue	—		9,740			650		—			10,390
Accrued property taxes	—		2,737			1,062		—			3,799
Current operating lease liabilities	—		1,114			12		—			1,126
Current finance lease liabilities	—		3,224			—		—			3,224
Other current liabilities	6		2,293			6		—			2,305
Total current liabilities	13,212		49,003			6,721		(331		)	68,605

Long-term debt	1,462,031		—			—		—			1,462,031
Noncurrent operating lease liabilities	—		2,482			—		—			2,482
Noncurrent finance lease liabilities	—		70,475			—		—			70,475
Other long-term liabilities	260		12,150			398		—			12,808
Deferred revenue	—		45,681			—		—			45,681
Class B unit	—		49,392			—		—			49,392
Equity - partners	381,103		1,844,812			275,279		(2,120,091		)	381,103
Equity - noncontrolling interest	—		—			106,655		—			106,655
Total liabilities and equity	$	1,856,606	$	2,073,995		$	389,053	$	(2,120,422	)	$	2,199,232

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended March 31, 2020	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	94,755		$	6,673		$	—		$	101,428
Third parties	—			19,155			7,271			—			26,426
	—			113,910			13,944			—			127,854
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			31,131			3,850			—			34,981
Depreciation and amortization	—			19,753			4,225			—			23,978
General and administrative	1,099			1,603			—			—			2,702
	1,099			52,487			8,075			—			61,661
Operating income (loss)	(1,099		)	61,423			5,869			—			66,193

Other income (expense):
Equity in earnings of subsidiaries	68,535			4,295			—			(72,830		)	—
Equity in earnings of equity method investments	—			2,088			(374		)	—			1,714
Interest expense	(16,730		)	(1,037		)	—			—			(17,767		)
Interest income	—			2,218			—			—			2,218
Loss on early extinguishment of debt	(25,915		)	—			—			—			(25,915		)
Gain on sale of assets and other	70			420			16			—			506
	25,960			7,984			(358		)	(72,830		)	(39,244		)
Income before income taxes	24,861			69,407			5,511			(72,830		)	26,949
State income tax expense	—			(37		)	—			—			(37		)
Net income	24,861			69,370			5,511			(72,830		)	26,912
Allocation of net income attributable to noncontrolling interests	—			(835		)	(1,216		)	—			(2,051		)
Net income attributable to the partners	$	24,861		$	68,535		$	4,295		$	(72,830	)	$	24,861

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended March 31, 2019	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	97,393		$	5,966		$	—		$	103,359
Third parties	—			22,065			9,073			—			31,138
	—			119,458			15,039			—			134,497
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			34,077			3,442			—			37,519
Depreciation and amortization				19,536			4,288			—			23,824
General and administrative	1,076			1,544			—			—			2,620
	1,076			55,157			7,730			—			63,963
Operating income (loss)	(1,076		)	64,301			7,309			—			70,534

Other income (expense):
Equity in earnings of subsidiaries	71,299			5,496			—			(76,795		)	—
Equity in earnings of equity method investments	—			2,100			—			—			2,100
Interest expense	(19,041		)	19			—			—			(19,022		)
Interest income	—			528			—			—			528
Gain (loss) on sale of assets and other	—			(329		)	19			—			(310		)
	52,258			7,814			19			(76,795		)	(16,704		)
Income before income taxes	51,182			72,115			7,328			(76,795		)	53,830
State income tax expense	—			(36		)	—			—			(36		)
Net income	51,182			72,079			7,328			(76,795		)	53,794
Allocation of net income attributable to noncontrolling interests	—			(780		)	(1,832		)	—			(2,612		)
Net income attributable to the partners	$	51,182		$	71,299		$	5,496		$	(76,795	)	$	51,182

Condensed Consolidating Statement of Cash Flows



Three Months Ended March 31, 2020	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(24,974	)	$	85,061		$	22,243		$	(4,383	)	$	77,947

Cash flows from investing activities
Additions to properties and equipment	—			(5,942		)	(13,000		)	—			(18,942		)
Investment in Cushing Connect	—			(7,304		)	(2,345		)	7,304			(2,345		)
Distributions from UNEV in excess of earnings	—			4,617			—			(4,617		)	—
Proceeds from sale of assets	—			417			—			—			417
	—			(8,212		)	(15,345		)	2,687			(20,870		)

Cash flows from financing activities
Net borrowings under credit agreement	45,000			—			—			—			45,000
Net intercompany financing activities	76,196			(76,196		)	—			—			—
Redemption of senior notes	(522,500		)	—			—			—			(522,500		)
Proceeds from issuance of senior notes	500,000			—			—			—			500,000
Contribution from general partner	354			—			7,304			(7,304		)	354
Contribution from noncontrolling interest	—			—			7,304			—			7,304
Distributions to HEP unitholders	(68,519		)	—			—			—			(68,519		)
Distributions to noncontrolling interests	—			—			(12,000		)	9,000			(3,000		)
Units withheld for tax withholding obligations	(147		)	—			—			—			(147		)
Deferred financing costs	(8,478		)	—			—			—			(8,478		)
Payments on finance leases	—			(1,096		)	—			—			(1,096		)
	21,906			(77,292		)	2,608			1,696			(51,082		)

Cash and cash equivalents
Increase (decrease) for the period	(3,068		)	(443		)	9,506			—			5,995
Beginning of period	4,790			(709		)	9,206			—			13,287
End of period	$	1,722		$	(1,152	)	$	18,712		$	—		$	19,282

Condensed Consolidating Statement of Cash Flows



Three Months Ended March 31, 2019	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(26,584	)	$	91,226		$	12,009		$	(5,496	)	$	71,155

Cash flows from investing activities
Additions to properties and equipment	—			(10,564		)	(154		)	—			(10,718		)
Distributions from UNEV in excess of earnings	—			3,504			—			(3,504		)	—
Proceeds from sale of assets	—			9			—			—			9
Distributions in excess of equity in earnings of equity investments	—			395			—			—			395
	—			(6,656		)	(154		)	(3,504		)	(10,314		)

Cash flows from financing activities
Net repayments under credit agreement	19,000			—			—			—			19,000
Net intercompany financing activities	75,678			(75,678		)	—			—			—
Distributions to HEP unitholders	(67,975		)	—			—			—			(67,975		)
Distributions to noncontrolling interests	—			—			(12,000		)	9,000			(3,000		)
Units withheld for tax withholding obligations	(119		)	—			—			—			(119		)
Payments on finance leases	—			(252		)	—			—			(252		)
	26,584			(75,930		)	(12,000		)	9,000			(52,346		)

Cash and cash equivalents
Increase (decrease) for the period	—			8,640			(145		)	—			8,495
Beginning of period	2			—			3,043			—			3,045
End of period	$	2		$	8,640		$	2,898		$	—		$	11,540