Supplemental Guarantor / Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2020

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]



June 30, 2020		Parent		Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries		Eliminations			Consolidated
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	3,927	$	(766	)	$	15,752	$	—		$	18,913
Accounts receivable		—		58,197			7,840		(1,261		)	64,776
Prepaid and other current assets		337		6,992			576					7,905
Total current assets		4,264		64,423			24,168		(1,261		)	91,594

Properties and equipment, net		—		1,110,139			348,795		—			1,458,934
Operating lease right-of-use assets	0	—		3,185			192		—			3,377
Net investment in leases		—		168,153					—			168,153
Investment in subsidiaries		1,868,595		282,348			—		(2,150,943		)	—
Intangible assets, net		—		94,318			—		—			94,318
Goodwill		—		270,336			—		—			270,336
Equity method investments		—		83,484			39,815		—			123,299
Other assets		5,497		6,275			—		—			11,772
Total assets		$	1,878,356	$	2,082,661		$	412,970	$	(2,152,204	)	$	2,221,783

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	—	$	14,343		$	8,843	$	(1,261	)	$	21,925
Accrued interest		10,683		—			—		—			10,683
Deferred revenue		—		10,502			500		—			11,002
Accrued property taxes		—		2,732			2,794		—			5,526
Current operating lease liabilities		—		1,145			68		—			1,213
Current finance lease liabilities		—		3,293			—		—			3,293
Other current liabilities		42		2,819			114		—			2,975
Total current liabilities		10,725		34,834			12,319		(1,261		)	56,617

Long-term debt		1,486,648		—			—		—			1,486,648
Noncurrent operating lease liabilities		—		2,530			—		—			2,530
Noncurrent finance lease liabilities		—		70,039			—		—			70,039
Other long-term liabilities		260		12,909			520		—			13,689
Deferred revenue		—		42,692			—		—			42,692
Class B unit		—		51,062			—		—			51,062
Equity - partners		380,723		1,868,595			282,348		(2,150,943		)	380,723
Equity - noncontrolling interest		—		—			117,783		—			117,783
Total liabilities and equity		$	1,878,356	$	2,082,661		$	412,970	$	(2,152,204	)	$	2,221,783

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 June 30, 2020	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	89,417		$	6,146		$	—		$	95,563
Third parties	—			15,887			3,357			—			19,244
	—			105,304			9,503			—			114,807
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			30,980			3,757			—			34,737
Depreciation and amortization	—			20,739			4,295			—			25,034
General and administrative	780			1,755			—			—			2,535
	780			53,474			8,052			—			62,306
Operating income (loss)	(780		)	51,830			1,451			—			52,501

Other income (expense):
Equity in earnings of subsidiaries	89,893			1,510			—			(91,403		)	—
Equity in earnings of equity method investments	—			1,449			707			—			2,156
Interest expense	(12,740		)	(1,039		)	—			—			(13,779		)
Interest income	26			2,787			—			—			2,813
Gain on sales-type lease	—			33,834			—			—			33,834
Gain on sale of assets and other	71			396			1			—			468
	77,250			38,937			708			(91,403		)	25,492
Income before income taxes	76,470			90,767			2,159			(91,403		)	77,993
State income tax expense	—			(39		)	—			—			(39		)
Net income	76,470			90,728			2,159			(91,403		)	77,954
Allocation of net income attributable to noncontrolling interests	—			(835		)	(649		)	—			(1,484		)
Net income attributable to the partners	$	76,470		$	89,893		$	1,510		$	(91,403	)	$	76,470

Condensed Consolidating Statement of Comprehensive Income



Three Months Ended June 30, 2019	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	96,221		$	6,148		$	—		$	102,369
Third parties	—			23,700			4,682			—			28,382
	—			119,921			10,830			—			130,751
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			36,701			3,901			—			40,602
Depreciation and amortization				20,027			4,220			—			24,247
General and administrative	745			1,243			—			—			1,988
	745			57,971			8,121			—			66,837
Operating income (loss)	(745		)	61,950			2,709			—			63,914

Other income (expense):
Equity in earnings of subsidiaries	65,431			2,063			—			(67,494		)	—
Equity in earnings of equity method investments	—			1,783			—			—			1,783
Interest expense	(18,996		)	(234		)	—			—			(19,230		)
Interest income	—			551			—			—			551
Gain (loss) on sale of assets and other	—			69			42			—			111
	46,435			4,232			42			(67,494		)	(16,785		)
Income before income taxes	45,690			66,182			2,751			(67,494		)	47,129
State income tax benefit	—			30			—			—			30
Net income	45,690			66,212			2,751			(67,494		)	47,159
Allocation of net income attributable to noncontrolling interests	—			(781		)	(688		)	—			(1,469		)
Net income attributable to the partners	$	45,690		$	65,431		$	2,063		$	(67,494	)	$	45,690

Condensed Consolidating Statement of Comprehensive Income



Six Months Ended June 30, 2020	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-restricted Subsidiaries				Eliminations				Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	184,172		$	12,819			$	—			$	196,991
Third parties	—			35,042			10,628				—				45,670
	—			219,214			23,447				—				242,661
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			62,111			7,607				—				69,718
Depreciation and amortization	—			40,492			8,520				—				49,012
General and administrative	1,879			3,358			—				—				5,237
	1,879			105,961			16,127				—				123,967
Operating income (loss)	(1,879		)	113,253			7,320				—			—	118,694

Other income (expense):
Equity in earnings of subsidiaries	158,428			5,805			—				(164,233		)		—
Equity in earnings of equity method investments	—			3,537			333			—	—				3,870
Interest expense	(29,470		)	(2,076		)	—				—				(31,546		)
Interest income	26			5,005			—				—				5,031
Loss on early extinguishment of debt	(25,915		)	—			—				—				(25,915		)
Gain on sales-type lease	—			33,834			—				—				33,834
Gain on sale of assets and other	141			816			17			—	—				974
	103,210			46,921			350				(164,233		)		(13,752		)
Income before income taxes	101,331			160,174			7,670				(164,233		)		104,942
State income tax expense	—			(76		)	—				—				(76		)
Net income	101,331			160,098			7,670				(164,233		)		104,866
Allocation of net income attributable to noncontrolling interests	—			(1,670		)	(1,865		)		—				(3,535		)
Net income attributable to the partners	$	101,331		$	158,428		$	5,805			$	(164,233	)		$	101,331

Condensed Consolidating Statement of Comprehensive Income



Six Months Ended June 30, 2019	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-restricted Subsidiaries				Eliminations			Consolidated
	(In thousands)
Revenues:
Affiliates	$	—		$	193,614		$	12,114			$	—		$	205,728
Third parties	—			45,765			13,755				—			59,520
	—			239,379			25,869				—			265,248
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)	—			70,778			7,343				—			78,121
Depreciation and amortization				39,563			8,508				—			48,071
General and administrative	1,821			2,787			—				—			4,608
	1,821			113,128			15,851				—			130,800
Operating income (loss)	(1,821		)	126,251			10,018				—			134,448

Other income (expense):
Equity in earnings of subsidiaries	136,730			7,559			—				(144,289		)	—
Equity in earnings of equity method investments	—			3,883			—			—	—			3,883
Interest expense	(38,037		)	(215		)	—				—			(38,252		)
Interest income	—			1,079			—			—	—			1,079
Gain on sale of assets and other	—			(260		)	61				—			(199		)
	98,693			12,046			61				(144,289		)	(33,489		)
Income before income taxes	96,872			138,297			10,079				(144,289		)	100,959
State income tax expense	—			(6		)	—				—			(6		)
Net income	96,872			138,291			10,079				(144,289		)	100,953
Allocation of net income attributable to noncontrolling interests	—			(1,561		)	(2,520		)		—			(4,081		)
Net income attributable to the partners	$	96,872		$	136,730		$	7,559			$	(144,289	)	$	96,872

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 2020	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(31,103	)	$	151,331		$	20,277		$	(5,911	)	$	134,594

Cash flows from investing activities
Additions to properties and equipment	—			(8,883		)	(21,857		)	—			(30,740		)
Investment in Cushing Connect	—			(13,263		)	(2,400		)	13,263			(2,400		)
Proceeds from sale of assets	—			816			—			—			816
Distributions in excess of equity in earnings of equity investments	—			6,559			—			(6,089		)	470
	—			(14,771		)	(24,257		)	7,174			(31,854		)

Cash flows from financing activities
Net borrowings under credit agreement	29,500			—			—			—			29,500
Net intercompany financing activities	134,645			(134,645		)	—			—			—
Redemption of senior notes	(522,500		)	—			—			—			(522,500		)
Proceeds from issuance of senior notes	500,000			—			—			—			500,000
Contribution from general partner	435			—			13,263			(13,263		)	435
Contribution from noncontrolling interest	—			—			13,263			—			13,263
Distributions to HEP unitholders	(102,979		)	—			—			—			(102,979		)
Distributions to noncontrolling interests	—			—			(16,000		)	12,000			(4,000		)
Units withheld for tax withholding obligations	(147		)	—			—			—			(147		)
Deferred financing costs	(8,714		)	—			—			—			(8,714		)
Payments on finance leases	—			(1,972		)	—			—			(1,972		)
	30,240			(136,617		)	10,526			(1,263		)	(97,114		)

Cash and cash equivalents
Increase (decrease) for the period	(863		)	(57		)	6,546			—			5,626
Beginning of period	4,790			(709		)	9,206			—			13,287
End of period	$	3,927		$	(766	)	$	15,752		$	—		$	18,913

Condensed Consolidating Statement of Cash Flows



Six Months Ended June 30, 2019	Parent			Guarantor Restricted Subsidiaries			Non-Guarantor Non-Restricted Subsidiaries			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(37,005	)	$	165,882		$	23,671		$	(7,559	)	$	144,989

Cash flows from investing activities
Additions to properties and equipment	—			(17,274		)	(478		)	—			(17,752		)
Distributions from UNEV in excess of earnings	—			8,191			—			(8,191		)	—
Proceeds from sale of assets	—			194			—			—			194
Distributions in excess of equity in earnings of equity investments	—			299			—			—			299
	—			(8,590		)	(478		)	(8,191		)	(17,259		)

Cash flows from financing activities
Net borrowings under credit agreement	18,500			—			—			—			18,500
Net intercompany financing activities	155,225			(155,225		)	—			—			—
Distributions to HEP unitholders	(136,207		)	—			—			—			(136,207		)
Distributions to noncontrolling interests	—			—			(21,000		)	15,750			(5,250		)
Units withheld for tax withholding obligations	(119		)	—			—			—			(119		)
Purchase units for incentive grants	(255		)				—			—			(255		)
Payments on finance leases	(139		)	(364		)	—			—			(503		)
	37,005			(155,589		)	(21,000		)	15,750			(123,834		)

Cash and cash equivalents
Increase for the period	—			1,703			2,193			—			3,896
Beginning of period	2			—			3,043			—			3,045
End of period	$	2		$	1,703		$	5,236		$	—		$	6,941