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Holly Energy Partners, L.P. (HEP) RSS Feed

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Created
05/09/08
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About Us 

Holly Energy Partners, L.P. ("HEP") is a Delaware limited partnership formed in early 2004 by HollyFrontier. We hold a particularly strategic position within the industry for several reasons: 

Our assets are located in attractive high-growth markets: Our pipelines and terminals serve our customers' marketing operations in the Southwest, Rocky Mountain and Mid-West regions of the U.S. In many of our core markets, demand for light refined products exceeds local production, due in part to above-average population growth. Population growth in these markets should increase demand for light refined products shipped on our pipelines. 

A substantial part of our business operates under long-term contracts: We conduct most of our operations pursuant to long-term contracts, which enhance the stability and predictability of our revenues and cash flows. We also expect that our long-standing customer relationships will lead to repeat business and the renewal of all our short-term contracts. 

Our assets are modern, efficient, and well maintained: We continually invest in the maintenance and integrity of our assets, including inspection and repair programs to comply with federal regulations. Our assets are operated via satellite communications systems from our control center, where state-of-the-art computers continuously monitor real-time operational data. 

We have a strategic relationship with HollyFrontier: We have a long-term strategic relationship with HollyFrontier. Our growth plan is to continue to pursue purchases of logistic assets at HollyFrontier's existing refining locations in New Mexico, Utah, Oklahoma, Kansas and Wyoming. We will also work with HollyFrontier on logistic asset acquisitions in conjunction with HollyFrontier's refinery acquisition strategies. Furthermore, we will continue to pursue third-party logistic asset acquisitions that are accretive to our unitholders and increase the diversity of our revenues. 

We are contractually bound to HollyFrontier's growth initiatives:We have benefited from HollyFrontier's past refinery expansion initiatives. As HollyFrontier further expands its refineries, the additional production will likely be transported, stored, and distributed through our pipelines and terminals. Our omnibus agreement with HollyFrontier grants us an opportunity to acquire certain types of transportation and distribution assets that are part of any acquisition it makes. 

Our financial flexibility allows us to pursue growth opportunities: We have a $550 million credit agreement, available for general partnership purposes such as capital expenditures and acquisitions. Along with our ability to issue new partnership units, we have significant resources to finance expansion and acquisitions. 

We have an experienced management team with a proven track record: We benefit from the vast experience and long-standing industry relationships of our management team. Our senior management has run HollyFrontier's pipeline and terminals business for many years and brings many years of energy industry experience to Holly Energy Partners. 


Page last updated: 3/27/13

 
Did You Know?
The Pithole oil boom spawned several pipelines. One of these was a 2-inch line from Pithole to Henry's Bend on the Allegheny River. It began delivering oil on October 24, 1865. The pipeline was 4 miles long with a through-put of 2000 barrels per day.  More...




InvestorsFAQs 

How and when is cash distributed?
Do unit holders have voting rights?
When and to whom does the right of limited call apply?
On which exchange are your units listed?



How and when is cash distributed? 

In general, we pay cash distributions in the following manner:
  • 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.
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." 

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


Current Stock Price
HEP $40.10 ( 0.05)  
3/28/2013 4:04pm 

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...





 
                                                                                                                            


 
                                                                                                          




 
                                                                       







                                                                                                                                                                                                           


 
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