Derivative Instruments And Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments, Gain (Loss) [Line Items]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements				Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings
				Location	Amount			Location	Amount
				(In thousands)
Three Months Ended March 31, 2013
Commodity price swaps
Change in fair value	$	(10,404	)	Sales and other revenues	$	(19,185	)	Sales and other revenues	$	(356	)
Loss reclassified to earnings due to settlements	27,200			Cost of products sold	(6,532		)	Cost of products sold	3,131
Amortization of discontinued hedge reclassified to earnings	90			Operating expenses	(1,573		)	Operating expenses	(365		)
Total	$	16,886			$	(27,290	)		$	2,410
Three Months Ended March 31, 2012
Commodity price swaps
Change in fair value	$	(140,121	)	Sales and other revenues	$	(34,125	)	Sales and other revenues	$	(1,330	)
Loss reclassified to earnings due to settlements	(16,416		)	Cost of products sold	50,541
Total	$	(156,537	)		$	16,416			$	(1,330	)

Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments

As of March 31, 2013, we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted purchases of natural gas and crude oil and sales of refined products:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2013	2014	2015	2016	2017	Unit of Measure
Commodity Price Swaps:
Natural gas - long	45,600,000	7,200,000	9,600,000	9,600,000	9,600,000	9,600,000	MMBTU
WTI crude oil - long	8,340,000	7,975,000	365,000	—	—	—	Barrels
Ultra-low sulfur diesel - short	8,340,000	7,975,000	365,000	—	—	—	Barrels
Forward sales - diesel and gasoline	535,000	535,000	—	—	—	—	Barrels

Schedule of Realized Gain (Loss)

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Three Months Ended March 31,
Location of Gain (Loss) Recognized in Income	2013			2012
	(In thousands)
Cost of products sold	$	33,592		$	(14,994	)
Operating expenses	(4,993		)	(1,701		)
Total	$	28,599		$	(16,695	)

Schedule of Notional Amounts of Outstanding Derivative Positions

As of March 31, 2013, we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2013	2014	2015	2016	2017	Unit of Measure
Commodity price swap (gasoline) - long	125,000	125,000	—	—	—	—	Barrels
Commodity price swap (gasoline) - short	125,000	125,000	—	—	—	—	Barrels
Commodity price swap (WCS spread) - long	5,362,500	5,362,500	—	—	—	—	Barrels
Commodity price swap (WTS spread) - long	1,960,000	1,960,000	—	—	—	—	Barrels
Commodity price swap (natural gas) - long	45,600,000	7,200,000	9,600,000	9,600,000	9,600,000	9,600,000	MMBTU
Commodity price swap (natural gas) - short	45,600,000	7,200,000	9,600,000	9,600,000	9,600,000	9,600,000	MMBTU
NYMEX futures (WTI) - long	234,000	234,000	—	—	—	—	Barrels
NYMEX futures (WTI) - short	1,178,000	1,178,000	—	—	—	—	Barrels
Physical contracts - long	540,000	540,000	—	—	—	—	Barrels
Physical contracts - short	540,000	540,000	—	—	—	—	Barrels

Schedule of Interest Rate Derivatives

The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP's interest rate swaps under cash flow hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Loss Recognized in Earnings Due to Settlements
				Location	Amount
	(In thousands)
Three Months Ended March 31, 2013
Interest rate swaps
Change in fair value	$	58
Loss reclassified to earnings due to settlements	504			Interest expense	$	(1,353	)
Amortization of discontinued hedge reclassified to earnings	849
Total	$	1,411			$	(1,353	)
Three Months Ended March 31, 2012
Interest rate swaps
Change in fair value	$	(578	)
Loss reclassified to earnings due to settlements	224			Interest expense	$	(1,498	)
Amortization of discontinued hedge reclassified to earnings	1,274
Total	$	920			$	(1,498	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position							Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet			Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
March 31, 2013
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—		$	—	$	24,630	$	(27,144	)	$	(2,514	)
Forward sales contracts	1,468		—			1,468		—		—			—
Interest rate swap contracts	—		—			—		2,868		—			2,868
	$	1,468	$	—		$	1,468	$	27,498	$	(27,144	)	$	354
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	12,493	$	(1,842	)	$	10,651	$	12,178	$	(4,171	)	$	8,007
NYMEX futures contracts	—		—			—		5,837		—			5,837
	$	12,493	$	(1,842	)	$	10,651	$	18,015	$	(4,171	)	$	13,844
Total net balance						$	12,119						$	14,198
Balance sheet classification:	Prepayment and other					$	12,119	Accrued liabilities					$	562
								Other long-term liabilities					13,636
						$	12,119						$	14,198

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2012
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	37,828	$	(17,383	)	$	20,445
Interest rate swap contracts	—		—		—		3,430		—			3,430
	$	—	$	—	$	—	$	41,258	$	(17,383	)	$	23,875
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	46,154	$	—		$	46,154
NYMEX futures contracts	—		—		—		5,563		—			5,563
	$	—	$	—	$	—	$	51,717	$	—		$	51,717
Total net balance					$	—						$	75,592
Balance sheet classification:							Accrued liabilities					$	62,388
							Other long-term liabilities					13,204
												$	75,592