DALLAS, Feb. 11 /PRNewswire-FirstCall/ -- Holly Energy Partners,
L.P. ("HEP" or the "Partnership") (NYSE:HEP) today reported its
financial results for the fourth quarter of 2009. For the quarter,
distributable cash flow was $20.5 million, up $3.6 million or 21%
from the same period last year. For the year ended December 31,
2009, distributable cash flow was $72.2 million, up $11.8 million
or 20% from last year. Based on these results, HEP announced on
January 27, 2010 its twenty-first consecutive quarterly
distribution increase, raising the quarterly distribution from
$0.795 to $0.805 per unit, representing a 5% increase over the
distribution for the fourth quarter of 2008. On December 1, 2009,
we sold our 70% interest in Rio Grande Pipeline Company ("Rio
Grande") for $35 million. As a result, Rio Grande's operating
results and a gain on the sale of $14.5 million are presented in
discontinued operations. Income from continuing operations for the
fourth quarter of 2009 was $12 million ($0.47 per basic and diluted
limited partner unit) compared to $5.7 million ($0.28 per basic and
diluted limited partner unit) for the same period of 2008. Income
from continuing operations for the year ended December 31, 2009 was
$46.2 million ($2.12 per basic and diluted limited partner unit)
compared to $20.7 million ($1.04 per basic and diluted limited
partner unit) for the same period of 2008. Net income for the
fourth quarter of 2009 was $27.6 million ($1.22 per basic and
diluted limited partner unit) compared to $7.1 million ($0.37 per
basic and diluted limited partner unit) for the same period of
2008. Net income for the year ended December 31, 2009 was $66
million ($3.18 per basic and diluted limited partner unit) compared
to $25.4 million ($1.32 per basic and diluted limited partner unit)
for the same period of 2008. Commenting on the fourth quarter of
2009, Matt Clifton, Chairman of the Board and Chief Executive
Officer stated, "We concluded 2009 with a fourth consecutive
quarter of solid operating results. For the fourth quarter,
distributable cash flow increased $3.6 million or 21% over the same
period of 2008, allowing us to declare our 21st consecutive
distribution increase. EBITDA was $25.9 million, an increase of
$4.5 million or 21% over the same period last year, in part
reflecting increased shipments on our refined product, intermediate
and crude pipeline systems as a result of increased production
attributable to Holly Corporation's ("Holly") 15,000 bpd Navajo
refinery capacity expansion in the first quarter of 2009.
Additionally, fourth quarter earnings benefited from revenue
contributions from our recent 2009 asset acquisitions. In December,
we acquired logistics, storage and loading facilities from an
affiliate of Sinclair Oil Company that support Holly's Tulsa
refinery operations as well as the Roadrunner and Beeson pipelines
that provide Holly's Navajo refinery with added feedstock
flexibility. Also in December, we sold our 70% interest in Rio
Grande to upgrade our asset portfolio into newer, more
growth-oriented assets. We look forward to additional revenue
contributions as we realize the full-year earnings from our late
2009 acquisitions. In 2009, we invested over $230 million in
acquisitions and long-term growth projects. As we start 2010, we
will also continue to explore additional organic and external
growth opportunities that will further enhance unitholder value."
Fourth Quarter 2009 Total revenues from continuing operations for
the fourth quarter of 2009 were $38.4 million, a $6.6 million
increase compared to the three months ended December 31, 2008. This
increase was due to overall increased shipments on our pipeline
systems, the effect of the July 2009 annual tariff increases on
affiliate pipeline shipments, an increase in previously deferred
revenue realized and revenues attributable to our newly acquired
Tulsa facilities. Increased volumes attributable to Holly's recent
refinery expansion, including volumes shipped on our new 16"
intermediate and Beeson pipelines, contributed to an 11% increase
in affiliate pipeline shipments. -- Revenues from our refined
product pipelines were $18.8 million, an increase of $0.8 million
compared to the fourth quarter of 2008. This increase was due to
increased affiliate shipments on our refined product pipeline
system, the effect of the July 2009 annual tariff increase on
affiliate refined product shipments and a $1 million increase in
previously deferred revenue realized. These factors were partially
offset by a decrease in third party refined product pipeline
shipments. Shipments on our refined product pipeline system
averaged 133.4 thousand barrels per day ("mbpd") compared to 134.5
mbpd for the same period last year. -- Revenues from our
intermediate pipelines were $4.9 million, an increase of $2 million
compared to the fourth quarter of 2008. This increase was due to
increased shipments on our intermediate pipeline system including
volumes shipped on our new 16" pipeline, the effect of the July
2009 annual tariff increase on intermediate pipeline shipments and
a $0.4 million increase in previously deferred revenue realized.
Shipments on our intermediate product pipeline system increased to
an average of 85.5 mbpd compared to 61.4 mbpd for the same period
last year. -- Revenues from our crude pipelines were $8.1 million,
an increase of $1.2 million compared to the fourth quarter of 2008.
This increase includes $0.8 million in revenues attributable our
Roadrunner Pipeline transportation agreement with Holly. Shipments
on our crude pipeline system increased to an average of 140 mbpd
compared to 135.1 mbpd for the same period last year. -- Revenues
from terminal, tankage and loading rack fees were $6.6 million, an
increase of $2.6 million compared to the fourth quarter of 2008.
This increase includes $2.0 million in revenues attributable to
volumes transferred via our newly acquired Tulsa facilities. Full
Year 2009 Total revenues from continuing operations for the year
ended December 31, 2009 were $146.6 million, a $37.7 million
increase compared to the year ended December 31, 2008. This
increase was due to overall increased shipments on our pipeline
systems, increased revenues attributable to our crude pipeline
assets acquired in the first quarter of 2008, the effect of annual
tariff increases on affiliate pipeline shipments, an increase in
previously deferred revenue realized and revenues attributable to
our newly acquired Tulsa facilities. Affiliate shipment volumes for
the year ended December 31, 2009 were impacted by the effects of
reduced production during Holly's planned maintenance turnaround of
its Navajo refinery in the first quarter of 2009. Additionally,
third-party refined product shipments were up for 2009 compared to
last year's, which were down as a result of limited production
resulting from an explosion and fire at Alon's Big Spring refinery
in the first quarter of 2008. -- Revenues from our refined product
pipelines were $81.1 million, an increase of $21.4 million compared
to the year ended December 31, 2008. This increase was due to
increased shipments on our refined product pipeline system, the
effect of the annual tariff increase on affiliate refined product
shipments and a $10.7 million increase in previously deferred
revenue realized. Shipments on our refined product pipeline system
increased to an average of 131.7 mbpd compared to 106 mbpd for the
same period last year. -- Revenues from our intermediate pipelines
were $16.4 million, an increase of $4.4 million compared to the
year ended December 31, 2008. This increase was due to increased
shipments on our intermediate pipeline system including volumes
shipped on our new 16" pipeline, the effect of annual tariff
increase on intermediate pipeline shipments and a $1.1 million
increase in previously deferred revenue realized. Shipments on our
intermediate product pipeline system increased to an average of
69.8 mbpd compared to 58.9 mbpd for the same period last year. --
Revenues from our crude pipelines were $29.3 million, an increase
of $6.9 million compared to the year ended December 31, 2008. This
increase was due to the realization of revenues from crude oil
shipments for a full twelve-month period during the year ended
December 31, 2009 compared to ten months of shipments during the
same period last year due to the commencement of operations on
March 1, 2008 and increased shipments on our crude pipeline system.
Additionally, this increase includes $0.8 million in revenues
related to our Roadrunner Pipeline transportation agreement with
Holly. Shipments on our crude pipeline system increased to an
average of 137.2 mbpd during the year ended December 31, 2009
compared to 111.4 mbpd for the same period last year. -- Revenues
from terminal, tankage and loading rack fees were $19.8 million, an
increase of $5 million compared to the year ended December 31,
2008. This increase includes $2.5 million in revenues attributable
to volumes transferred via our newly acquired Tulsa facilities. Our
revenues from continuing operations for the three months and year
ended December 31, 2009 include the recognition of $1.8 million and
$15.7 million, respectively, of prior shortfalls billed to shippers
in 2008 as they did not meet their minimum volume commitments in
any of the subsequent four quarters. Additionally, deferred revenue
in our consolidated balance sheets at December 31, 2009 is $8.4
million. Although shortfall billings are initially recorded as
deferred revenue, they are included in our distributable cash flow
as they occur. These deferred revenue amounts are later recognized
as revenue and included in net income within a one year period
either when a shipper exceeds its minimum volume commitments and is
able to utilize these shortfall payments as a credit or when a
shipper's rights to these shortfall payments expire and are no
longer subject to recapture. Operating costs and expenses were $22
million and $78.3 million for the three months and year ended
December 31, 2009, respectively, an increase of $3.5 million and
$11.1 million compared to the same periods of 2008, respectively.
These increases were due to increased costs attributable to higher
throughput volumes, including those from our 2009 asset
acquisitions, and higher depreciation, maintenance and payroll
expense. Additionally, operating costs and expenses for the year
ended December 31, 2009 reflect crude pipeline operating costs for
a full twelve-month period compared to ten months in 2008 due to
the commencement of our crude pipeline operations on March 1, 2008.
Furthermore, under new accounting requirements effective January
2009, we were required to expense rather than capitalize certain
acquisition costs of $2.5 million associated with our March 2009
acquisition of a 25% interest in the SLC Pipeline from Plains All
American Pipeline, L.P. ("Plains"). We have scheduled a webcast
conference call today at 4:00 PM Eastern Time to discuss financial
results. This webcast may be accessed at:
http://www.videonewswire.com/event.asp?id=65673. An audio archive
of this webcast will be available using the link above through
February 25, 2010. Holly Energy Partners, L.P., headquartered in
Dallas, Texas, provides petroleum product and crude oil
transportation, terminalling, storage and throughput services to
the petroleum industry, including Holly Corporation subsidiaries.
The Partnership owns and operates petroleum product and crude
gathering pipelines, tankage and terminals in Texas, New Mexico,
Arizona, Washington, Idaho, Oklahoma and Utah. In addition, the
Partnership owns a 25% interest in SLC Pipeline LLC, a 95-mile
intrastate pipeline system serving refineries in the Salt Lake
City, Utah area. Holly Corporation operates through its
subsidiaries a 100,000 barrels-per-stream-day ("bpsd") refinery
located in Artesia, New Mexico, a 31,000 bpsd refinery in Woods
Cross, Utah and a 125,000 bpsd refinery in Tulsa, Oklahoma. A Holly
Corporation subsidiary owns a 34% interest (including the general
partner interest) in the Partnership. The following is a "safe
harbor" statement under the Private Securities Litigation Reform
Act of 1995: The statements in this press release relating to
matters that are not historical facts are "forward-looking
statements" within the meaning of the federal securities laws.
Forward looking statements use words such as "anticipate,"
"project," "expect," "plan," "explore," "goal," "forecast,"
"intend," "could," "believe," "may," "look forward to," and similar
expressions and statements regarding our plans and objectives for
future operations. These statements are based on our beliefs and
assumptions, and those of our general partner, using currently
available information and expectations as of the date hereof, are
not guarantees of future performance and involve certain risks and
uncertainties. Although we and our general partner believe that
such expectations reflected in such forward-looking statements are
reasonable, neither we nor our general partner can give assurance
that our expectations will prove correct. Such statements are
subject to a variety of risks, uncertainties and assumptions. If
one or more of these risks or uncertainties materialize, or if
underlying assumptions prove incorrect, our actual results may vary
materially from those anticipated, estimated, projected or
expected. Certain factors could cause actual results to differ
materially from results anticipated in the forward-looking
statements. These factors, include, but are not limited to: --
risks and uncertainties with respect to the actual quantities of
petroleum products and crude oil shipped on our pipelines and/or
terminalled in our terminals; -- the economic viability of Holly
Corporation, Alon USA, Inc. and our other customers; -- the demand
for refined petroleum products and crude oil in markets we serve;
-- our ability to successfully purchase and integrate additional
operations in the future; -- our ability to complete previously
announced or contemplated acquisitions; -- the availability and
cost of additional debt and equity financing; -- the possibility of
reductions in production or shutdowns at refineries utilizing our
pipeline and terminal facilities; -- the effects of current and
future government regulations and policies; -- our operational
efficiency in carrying out routine operations and capital
construction projects; -- the possibility of terrorist attacks and
the consequences of any such attacks; -- general economic
conditions; and -- other financial, operations and legal risks and
uncertainties detailed from time to time in our Securities and
Exchange Commission filings. The forward-looking statements speak
only as of the date made and, other than as required by law, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. RESULTS OF OPERATIONS (Unaudited)
Income, Distributable Cash Flow and Volumes The following tables
present income, distributable cash flow and volume information for
the three months and years ended December 31, 2009 and 2008. Three
Months Ended December 31, Change ------------- from 2009 2008 2008
---- ---- ---- (In thousands, except per unit data) Revenues
Pipelines: Affiliates - refined product pipelines $12,020 $11,452
$568 Affiliates - intermediate pipelines 4,924 2,915 2,009
Affiliates - crude pipelines 8,051 6,856 1,195 ------- -------
------- 24,995 21,223 3,772 Third parties - refined product
pipelines 6,805 6,609 196 ------- ------- ------- 31,800 27,832
3,968 Terminals, refinery tankage and loading racks: Affiliates
4,654 2,607 2,047 Third parties 1,971 1,405 566 ------- -------
------- 6,625 4,012 2,613 ------- ------- ------- Total revenues
38,425 31,844 6,581 Operating costs and expenses: Operations 11,927
9,994 1,933 Depreciation and amortization 7,505 6,367 1,138 General
and administrative 2,607 2,136 471 ------- ------- ------- 22,039
18,497 3,542 ------- ------- ------- Operating income 16,386 13,347
3,039 Other income (expense): Equity in earnings of SLC Pipeline
610 - 610 Interest income 1 12 (11) Interest expense, including
amortization (5,276) (7,562) 2,286 Other 2 (17) 19 ------- -------
------- Income from continuing operations before income taxes
11,723 5,780 5,943 State income tax 246 (79) 325 ------- -------
------- Income from continuing operations 11,969 5,701 6,268
Discontinued operations(1) Income from discontinued operations, net
of noncontrolling interest 1,196 1,432 (236) Gain on sale of
interest in Rio Grande 14,479 - 14,479 ------- ------- -------
Income from discontinued operations 15,675 1,432 14,243 -------
------- ------- Net income 27,644 7,133 20,511 Less general partner
interest in net income, including incentive distributions(2) 2,784
1,172 1,612 ------- ------- ------- Limited partners' interest in
net income $24,860 $5,961 $18,899 ======= ======= ======= Limited
partners' earnings per unit - basic and diluted:(2)(3) Continuing
operations $0.47 $0.28 $0.19 Discontinued operations 0.06 0.09
(0.03) Gain from discontinued operations 0.69 - 0.69 -------
------- ------- Net income $1.22 $0.37 $0.85 ======= =======
======= Weighted average limited partners' units outstanding 20,434
16,328 4,106 ======= ======= ======= EBITDA(4) $25,876 $21,410
$4,466 ======= ======= ======= Distributable cash flow(5) $20,537
$16,913 $3,624 ======= ======= ======= Volumes from continuing
operations - barrels per day ("bpd")(1) Pipelines: Affiliates -
refined product pipelines 95,455 93,181 2,274 Affiliates -
intermediate pipelines 85,519 61,359 24,160 Affiliates - crude
pipelines 140,000 135,138 4,862 ------- ------- ------- 320,974
289,678 31,296 Third parties - refined product pipelines 37,958
41,317 (3,359) ------- ------- ------- 358,932 330,995 27,937
Terminals and loading racks: Affiliates 136,576 115,285 21,291
Third parties 40,228 34,715 5,513 ------- ------ ------- 176,804
150,000 26,804 ------- ------- ------- Total for pipelines and
terminal assets (bpd) 535,736 480,995 54,741 ======= =======
======= Years Ended December 31, Change ------------- from 2009
2008 2008 ---- ---- ---- (In thousands, except per unit data)
Revenues Pipelines: Affiliates - refined product pipelines $43,206
$40,446 $2,760 Affiliates - intermediate pipelines 16,362 11,917
4,445 Affiliates - crude pipelines 29,266 22,380 6,886 ------
------ ----- 88,834 74,743 14,091 Third parties - refined product
pipelines 37,930 19,314 18,616 ------ ------ ------ 126,764 94,057
32,707 Terminals, refinery tankage and loading racks: Affiliates
12,561 10,297 2,264 Third parties 7,236 4,468 2,768 ----- -----
----- 19,797 14,765 5,032 ------ ------ ----- Total revenues
146,561 108,822 37,739 Operating costs and expenses: Operations
44,003 38,920 5,083 Depreciation and amortization 26,714 21,937
4,777 General and administrative 7,586 6,380 1,206 ----- -----
----- 78,303 67,237 11,066 ------ ------ ------ Operating income
68,258 41,585 26,673 Other income (expense): Equity in earnings of
SLC Pipeline 1,919 - 1,919 SLC Pipeline acquisition costs (2,500) -
(2,500) Interest income 11 118 (107) Interest expense, including
amortization (21,501) (21,763) 262 Gain on sale of assets - 36 (36)
Other 67 990 (923) --- --- ---- Income from continuing operations
before income taxes 46,254 20,966 25,288 State income tax (20)
(270) 250 --- ---- --- Income from continuing operations 46,234
20,696 25,538 Discontinued operations(1) Income from discontinued
operations, net of noncontrolling interest 5,301 4,671 630 Gain on
sale of interest in Rio Grande 14,479 - 14,479 ------ --- ------
Income from discontinued operations 19,780 4,671 15,109 ------
----- ------ Net income 66,014 25,367 40,647 Less general partner
interest in net income, including incentive distributions(2) 7,947
3,913 4,034 ----- ----- ----- Limited partners' interest in net
income $58,067 $21,454 $36,613 ======= ======= ======= Limited
partners' earnings per unit - basic and diluted:(2)(3) Continuing
operations $2.12 $1.04 $1.08 Discontinued operations 0.28 0.28 -
Gain from discontinued operations 0.78 - 0.78 ---- --- ---- Net
income $3.18 $1.32 $1.86 ===== ===== ===== Weighted average limited
partners' units outstanding 18,268 16,291 1,977 ====== ====== =====
EBITDA(4) $100,707 $70,195 $30,512 ======== ======= =======
Distributable cash flow(5) $72,213 $60,365 $11,848 ======= =======
======= Volumes from continuing operations - bpd(1) Pipelines:
Affiliates - refined product pipelines 88,001 83,203 4,798
Affiliates - intermediate pipelines 69,794 58,855 10,939 Affiliates
- crude pipelines 137,244 111,426 25,818 ------- ------- ------
295,039 253,484 41,555 Third parties - refined product pipelines
43,709 22,756 20,953 ------ ------ ------ 338,748 276,240 62,508
Terminals and loading racks: Affiliates 114,431 109,539 4,892 Third
parties 42,206 32,737 9,469 ------ ------ ----- 156,637 142,276
14,361 ------- ------- ----- Total for pipelines and terminal
assets (bpd) 495,385 418,516 76,869 ======= ======= ====== (1) On
December 1, 2009, we sold our 70% interest in Rio Grande.
Accordingly, results of operations of Rio Grande are presented in
discontinued operations. Additionally, pipeline volume information
excludes volumes attributable to Rio Grande. (2) Net income is
allocated between limited partners and the general partner interest
in accordance with the provisions of the partnership agreement. Net
income allocated to the general partner includes incentive
distributions declared subsequent to quarter end. General partner
incentive distributions for the three months and year ended
December 31, 2009 were $2.3 million and $6.7 million, respectively,
and for the three months and year ended December 31, 2008, were
$1.2 million and $3.9 million, respectively. Net income
attributable to the limited partners is divided by the weighted
average limited partner units outstanding in computing the limited
partners' per unit interest in net income. (3) New accounting
standards became effective January 1, 2009 that prescribe the
application of the two-class method in computing earnings per unit
to reflect a master limited partnership's contractual obligation to
make distributions to the general partner, limited partners and
incentive distribution rights holders. As a result, our quarterly
earnings allocations to the general partner now include incentive
distributions that were declared subsequent to quarter end. Prior
to our adoption of these standards, our general partner earnings
allocations included incentive distributions that were declared
during each quarter. We have applied these standards on a
retrospective basis. The application of these standards resulted in
a decrease in our limited partners' per unit interest in net income
of $0.02 for the year ended December 31, 2008. (4) Earnings before
interest, taxes, depreciation and amortization ("EBITDA") is
calculated as net income plus (i) interest expense, net of interest
income, (ii) state income tax and (iii) depreciation and
amortization. EBITDA is not a calculation based upon U.S. generally
accepted accounting principles ("GAAP"). However, the amounts
included in the EBITDA calculation are derived from amounts
included in our consolidated financial statements, with the
exception of EBITDA from discontinued operations. EBITDA should not
be considered as an alternative to net income or operating income,
as an indication of our operating performance or as an alternative
to operating cash flow as a measure of liquidity. EBITDA is not
necessarily comparable to similarly titled measures of other
companies. EBITDA is presented here because it is a widely used
financial indicator used by investors and analysts to measure
performance. EBITDA is also used by our management for internal
analysis and as a basis for compliance with financial covenants.
Set forth below is our calculation of EBITDA. Three Months Ended
Years Ended December 31, December 31, ------------ ------------
2009 2008 2009 2008 ---- ---- ---- ---- (In thousands) Income from
continuing operations $11,969 $5,701 $46,234 $20,696 Add
(Subtract): Interest expense 5,224 5,017 20,620 18,479 Amortization
of discount and deferred debt issuance costs 177 263 706 1,002
Increase (decrease) in interest expense - change in fair value of
interest rate swaps (125) 2,282 175 2,282 Interest income (1) (12)
(11) (118) State income tax (246) 79 20 270 Depreciation and
amortization 7,505 6,367 26,714 21,937 EBITDA from discontinued
operations (excludes gain on sale of Rio Grande) 1,373 1,713 6,249
5,647 ----- ----- ----- ----- EBITDA $25,876 $21,410 $100,707
$70,195 ======= ======= ======== ======= (5) Distributable cash
flow is not a calculation based upon GAAP. However, the amounts
included in the calculation are derived from amounts separately
presented in our consolidated financial statements, with the
exception of equity in excess cash flows over earnings of SLC
Pipeline, maintenance capital expenditures and distributable cash
flow from discontinued operations. Distributable cash flow should
not be considered in isolation or as an alternative to net income
or operating income, as an indication of our operating performance,
or as an alternative to operating cash flow as a measure of
liquidity. Distributable cash flow is not necessarily comparable to
similarly titled measures of other companies. Distributable cash
flow is presented here because it is a widely accepted financial
indicator used by investors to compare partnership performance. We
believe that this measure provides investors an enhanced
perspective of the operating performance of our assets and the cash
our business is generating. Set forth below is our calculation of
distributable cash flow. Three Months Ended Years Ended December
31, December 31, ------------- -------------- 2009 2008 2009 2008
---- ---- ---- ---- (In thousands) Income from continuing
operations $11,969 $5,701 $46,234 $20,696 Add (Subtract):
Depreciation and amortization 7,505 6,367 26,714 21,937
Amortization of discount and deferred debt issuance costs 177 263
706 1,002 Increase (decrease) in interest expense - change in fair
value of interest rate swaps (125) 2,282 175 2,282 Equity in excess
cash flows over earnings of SLC Pipeline 165 - 552 - Increase
(decrease) in deferred revenue 820 1,320 (7,256) 11,958 SLC
Pipeline acquisition costs* - - 2,500 - Maintenance capital
expenditures** (1,333) (715) (3,595) (3,133) Distributable cash
flow from discontinued operations (excludes gain on sale of Rio
Grande) 1,359 1,695 6,183 5,623 ----- ----- ----- -----
Distributable cash flow $20,537 $16,913 $72,213 $60,365 =======
======= ======= ======= * Under accounting standards, effective
January 1, 2009, we were required to expense rather than capitalize
certain acquisition costs of $2.5 million associated with our joint
venture agreement with Plains that closed in March 2009. As these
costs directly relate to our interest in the new joint venture
pipeline and are similar to expansion capital expenditures, we have
added back these costs to arrive at distributable cash flow. **
Maintenance capital expenditures are capital expenditures made to
replace partially or fully depreciated assets in order to maintain
the existing operating capacity of our assets and to extend their
useful lives. Maintenance capital expenditures include expenditures
required to maintain equipment reliability, tankage and pipeline
integrity, and safety and to address environmental regulations.
December 31, December 31, 2009 2008 ---- ---- Balance Sheet Data
(In thousands) Cash and cash equivalents $2,508 $3,708 Working
capital(6) $4,404 $(37,832) Total assets $616,845 $439,688
Long-term debt(7) $390,827 $355,793 Total equity(8) $193,864 $8,120
(6) Working capital at December 31, 2008 reflects $29 million of
credit agreement advances that were classified as short-term
borrowings. (7) Includes $206 million and $171 million of credit
agreement advances that were classified as long-term debt at
December 31, 2009 and 2008, respectively. (8) As a master limited
partnership, we distribute our available cash, which historically
has exceeded our net income because depreciation and amortization
expense represents a non-cash charge against income The result is a
decline in equity since our regular quarterly distributions have
exceeded our quarterly net income. Additionally, if the assets
transferred to us upon our initial public offering in 2004, the
intermediate pipelines purchased from Holly in 2005 and the assets
purchased from Holly in 2009 had been acquired from third parties,
our acquisition cost in excess of Holly's basis in the transferred
assets of $160.4 million would have been recorded as increases to
our properties and equipment and intangible assets instead of
reductions to equity. DATASOURCE: Holly Energy Partners, L.P.
CONTACT: Bruce R. Shaw, Senior Vice President and Chief Financial
Officer, or M. Neale Hickerson, Vice President, Investor Relations,
both of Holly Energy Partners, L.P., +1-214-871-3555 Web Site:
http://www.hollyenergy.com/
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