XML 48 R24.htm IDEA: XBRL DOCUMENT v3.22.4
Supplemental Guarantor / Non-Guarantor Financial Information
 12 Months Ended
Dec. 31, 2022
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]  
Supplemental Guarantor / Non-Guarantor Financial Information Supplemental Guarantor/Non-Guarantor Financial Information
Obligations of HEP (“Parent”) under the Senior Notes have been jointly and severally guaranteed by each of its direct and indirect 100% owned subsidiaries (“Guarantor Subsidiaries”). These guarantees are full and unconditional, subject to certain customary release provisions. These circumstances include (i) when a Guarantor Subsidiary is sold or sells all or substantially all of its assets, (ii) when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, (iii) when a Guarantor Subsidiary's guarantee of other indebtedness is terminated or released and (iv) when the requirements for legal defeasance or covenant defeasance or to discharge the senior notes have been satisfied.

The following financial information presents condensed consolidating balance sheets and statements of income of the Parent, the Guarantor Subsidiaries and the Non-Guarantor subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting.

As a result of the HEP Transaction, UNEV Pipeline, LLC became a 100% owned subsidiary, and it was subsequently added as a guarantor of the obligations of HEP under the Senior Notes during the second quarter of 2022. UNEV Pipeline, LLC financial information has been included in the Guarantor Subsidiaries financial information for all periods presented.
Condensed Consolidating Balance Sheet
December 31, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$4,316 $4,454 $2,147 $— $10,917 
Accounts receivable— 79,689 1,453 (1,339)79,803 
Prepaid and other current assets256 12,141 356 (356)12,397 
Total current assets4,572 96,284 3,956 (1,695)103,117 
Properties and equipment, net— 1,388,888 — — 1,388,888 
Operating lease right-of-use assets— 2,317 — — 2,317 
Net investment in leases— 539,705 101,871 (101,871)539,705 
Investment in subsidiaries2,432,767 69,754 — (2,502,521)— 
Intangible assets, net— 59,300 — — 59,300 
Goodwill— 342,762 — — 342,762 
Equity method investments— 235,858 34,746 — 270,604 
Deferred turnaround costs24,154 — — 24,154 
Other assets5,865 10,790 — — 16,655 
Total assets$2,443,204 $2,769,812 $140,573 $(2,606,087)$2,747,502 
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable$— $43,303 $545 $(1,339)$42,509 
Accrued interest17,992 — — — 17,992 
Deferred revenue— 12,087 — — 12,087 
Accrued property taxes— 5,449 — — 5,449 
Current operating lease liabilities— 968 — — 968 
Current finance lease liabilities— 6,560 — (2,171)4,389 
Other current liabilities117 1,793 520 — 2,430 
Total current liabilities18,109 70,160 1,065 (3,510)85,824 
Long-term debt1,556,334 — — — 1,556,334 
Noncurrent operating lease liabilities— 1,720 — — 1,720 
Noncurrent finance lease liabilities— 150,935 — (88,422)62,513 
Other long-term liabilities— 29,111 — — 29,111 
Deferred revenue— 24,613 — — 24,613 
Class B unit— 60,507 — — 60,507 
Equity - partners868,760 2,432,767 69,754 (2,514,155)857,126 
Equity - noncontrolling interests— 69,754 — 69,754 
Total liabilities and partners’ equity$2,443,203 $2,769,813 $140,573 $(2,606,087)$2,747,502 
Condensed Consolidating Balance Sheet
December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$1,273 $4,227 $8,881 $— $14,381 
Accounts receivable— 68,768 2,833 (2,702)68,899 
Prepaid and other current assets353 10,680 304 (304)11,033 
Total current assets1,626 83,675 12,018 (3,006)94,313 
Properties and equipment, net— 1,329,028 — — 1,329,028 
Operating lease right-of-use assets— 2,275 — — 2,275 
Net investment in leases— 309,301 100,032 (100,030)309,303 
Investment in subsidiaries1,785,024 70,437 — (1,855,461)— 
Intangible assets, net— 73,307 — — 73,307 
Goodwill— 223,650 — — 223,650 
Equity method investments— 78,873 37,505 — 116,378 
Deferred turnaround costs— 2,632 — — 2,632 
Other assets8,118 6,863 — — 14,981 
Total assets$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable$— $34,566 $8,416 $(2,702)$40,280 
Accrued interest11,258 — — — 11,258 
Deferred revenue— 14,585 — — 14,585 
Accrued property taxes— 4,542 — — 4,542 
Current operating lease liabilities— 620 — — 620 
Current finance lease liabilities— 5,566 — (1,780)3,786 
Other current liabilities3 1,513 265 — 1,781 
Total current liabilities11,261 61,392 8,681 (4,482)76,852 
Long-term debt1,333,049 — — — 1,333,049 
Noncurrent operating lease liabilities— 2,030 — — 2,030 
Noncurrent finance lease liabilities— 156,102 — (91,453)64,649 
Other long-term liabilities340 12,187 — — 12,527 
Deferred revenue— 29,662 — — 29,662 
Class B unit— 56,549 — — 56,549 
Equity - partners450,118 1,785,024 70,437 (1,862,562)443,017 
Equity - noncontrolling interests— 77,095 70,437 — 147,532 
Total liabilities and partners’ equity$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
Condensed Consolidating Statement of Income
Year Ended December 31, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $438,280 $— $— $438,280 
Third parties— 109,200 — — 109,200 
— 547,480 — — 547,480 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 206,945 3,678 — 210,623 
Depreciation and amortization— 99,092 — — 99,092 
General and administrative3,777 13,226 — — 17,003 
3,777 319,263 3,678 — 326,718 
Operating income (loss)(3,777)228,217 (3,678)— 220,762 
Equity in earnings of subsidiaries299,319 8,071 — (307,390)— 
Equity in earnings of equity method investments— (3,585)3,325 — (260)
Interest expense(78,759)(20,296)— 16,495 (82,560)
Interest income— 91,406 16,495 (16,495)91,406 
Gain on sale of assets and other— 668 — — 668 
220,560 76,264 19,820 (307,390)9,254 
Income (loss) before income taxes216,783 304,481 16,142 (307,390)230,016 
State income tax expense— (111)— — (111)
Net income (loss)216,783 304,370 16,142 (307,390)229,905 
Allocation of net income attributable to noncontrolling interests
— (5,051)(8,071)— (13,122)
Net income (loss) attributable to the Partnership
216,783 299,319 8,071 (307,390)216,783 
Condensed Consolidating Statement of Income
Year Ended December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $390,849 $— $— $390,849 
Third parties— 103,646 — — 103,646 
— 494,495 — — 494,495 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 167,832 2,692 — 170,524 
Depreciation and amortization— 93,800 — — 93,800 
General and administrative3,647 8,990 — — 12,637 
Goodwill Impairment— 11,034 — — 11,034 
3,647 281,656 2,692 — 287,995 
Operating income (loss)(3,647)212,839 (2,692)— 206,500 
Equity in earnings of subsidiaries275,558 2,532 — (278,090)— 
Equity in earnings of equity method investments— 8,897 3,535 — 12,432 
Interest income— 29,925 4,220 (4,220)29,925 
Interest expense(49,864)(8,174)— 4,220 (53,818)
Gain on sales-type lease— 31,778 — (7,101)24,677 
Gain on sale of assets and other— 6,179 — — 6,179 
225,694 71,137 7,755 (285,191)19,395 
Income (loss) before income taxes222,047 283,976 5,063 (285,191)225,895 
State income tax expense— (32)— — (32)
Net income (loss)222,047 283,944 5,063 (285,191)225,863 
Allocation of net income attributable to noncontrolling interests
— (8,386)(2,531)— (10,917)
Net income (loss) attributable to the Partnership
222,047 275,558 2,532 (285,191)214,946 
Condensed Consolidating Statement of Income
Year Ended December 31, 2020ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $399,809 $— $— $399,809 
Third parties— 98,039 — — 98,039 
— 497,848 — — 497,848 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 146,585 1,107 — 147,692 
Depreciation and amortization— 99,578 — — 99,578 
General and administrative3,227 6,762 — — 9,989 
Goodwill Impairment— 35,653 — — 35,653 
3,227 288,578 1,107 — 292,912 
Operating income (loss)(3,227)209,270 (1,107)— 204,936 
Equity in earnings (loss) of subsidiaries254,608 219 — (254,827)— 
Equity in earnings of equity method investments— 5,105 1,542 — 6,647 
Interest income26 10,592 3 — 10,621 
Interest expense(55,298)(4,126)— — (59,424)
Gain on sales-type lease— 33,834 — — 33,834 
Loss on extinguishment of debt(25,915)— — — (25,915)
Gain on sale of assets and other289 8,402 — — 8,691 
173,710 54,026 1,545 (254,827)(25,546)
Income (loss) before income taxes170,483 263,296 438 (254,827)179,390 
State income tax expense— (167)— — (167)
Net income (loss)170,483 263,129 438 (254,827)179,223 
Allocation of net income attributable to noncontrolling interests
— (8,521)(219)— (8,740)
Net income (loss) attributable to the Partnership
170,483 254,608 219 (254,827)170,483