Partners' Equity, Income Allocations and Cash Distributions

9 Months Ended

Sep. 30, 2020

Partners' Capital [Abstract]

Partners' Equity, Income Allocations and Cash Distributions

Partners’ Equity, Income Allocations and Cash Distributions

As of September 30, 2020, HFC held 59,630,030 of our common units, constituting a 57% limited partner interest in us, and held the non-economic general partner interest.

Continuous Offering Program

We have a continuous offering program under which we may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million. As of September 30, 2020, HEP has issued 2,413,153 units under this program, providing $82.3 million in gross proceeds.

Allocations of Net Income

Net income attributable to HEP is allocated to the partners based on their weighted-average ownership percentage during the period.

Cash Distributions

On October 22, 2020, we announced our cash distribution for the third quarter of 2020 of $0.35 per unit. The distribution is payable on all common units and will be paid November 12, 2020, to all unitholders of record on November 2, 2020.

Our regular quarterly cash distribution to the limited partners will be $37.0 million for the three months ended September 30, 2020 and was $68.5 million for the three months ended September 30, 2019. For the nine months ended September 30, 2020, the regular quarterly distribution to the limited partners will be $105.9 million and was $205.2 million for the nine months ended September 30, 2019. Our distributions are declared subsequent to quarter end; therefore, these amounts do not reflect distributions paid during the respective period.