How and when is cash distributed?
In general, we pay cash distributions in the following manner:
If cash distributions exceed $0.55 per unit in a quarter, our general partner will receive increasing percentages, up to 50%, of the cash we distribute in excess of that amount. We refer to these as "incentive distributions."
- first, 98% to the holders of common units and 2% to our general partner, until each common unit has received a minimum quarterly distribution of $0.50 plus any arrearages from prior quarters;
- second, 98% to the holders of subordinated units and 2% to our general partner, until each subordinated unit has received a minimum quarterly distribution of $0.50; and
- third, 98% to all unit holders, pro rata, and 2% to the general partner, until each unit has received a distribution of $0.55.
We must distribute all of our cash on hand at the end of each quarter, less reserves established by our general partner in its discretion. We refer to this as "available cash." The amount of available cash may be greater than or less than the minimum quarterly distribution.
Do unit holders have voting rights?
Unlike the holders of common stock in a corporation, unitholders have only limited voting rights on matters affecting our business and, therefore, limited ability to influence management's decisions regarding our business. Unitholders did not elect our general partner or the board of directors of our general partner's general partner and have no right to elect our general partner or the board of directors of our general partner's general partner on an annual or other continuing basis. The vote of the holders of at least 66 2/3% of all outstanding units voting together as a single class is required to remove the general partner. Unitholders will be unable to remove the general partner without its consent because the general partner and its affiliates own sufficient units to prevent its removal.
When and to whom does the right of limited call apply?
If at any time our general partner and its affiliates own more than 80% of the outstanding common units, our general partner has the right, but not the obligation, to purchase all of the remaining common units at a price not less than the then-current market price of the common units.
On which exchange are your units listed?
Our common units are listed on the New York Stock Exchange under the symbol "HEP."
Page last updated: 3/20/13
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Current Stock Price
HEP $40.10 ( 0.05)
Did You Know?
The growth and competition of pipeline companies surged in the 1870's. Union Pipeline Co., Empire Pipeline, Mutual and the United Pipelines were a few of the big names. The first Standard Oil pipeline began taking hold in the oil region as the American Transfer Company. More...