Holly Energy Partners A system of petroleum product and crude Consistent Distribution Despite Crude Price pipelines, storage tanks, distribution Volatility terminals, loading racks and processing Distribution /LP Unit WTI Price units…
Minimum Volume Commitments MVCs as % of Total Revenue1 MVC Contract Renewal Schedule 100 90 Non-MVC 80 Revenue (in millions) 30% 70 60 HFC 65% 50 40 30 3rd Party 5% 20 10 0 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30…
HollyFrontier and Holly Energy Partners Footprint Holly Energy Partners (NYSE: HEP) 5
HollyFrontier Business Segment Highlights REFINING MIDSTREAM SPECIALTY LUBRICANTS Inland merchant refiner Operate crude and product pipelines, Integrated specialty lubricants loading racks, terminals and tanks in and producer…
HEP Ownership Structure Eliminated IDRs in 2017 to simplify structure HOLLYFRONTIER CORPORATION (HFC) 100% Interest GENERAL PARTNER (GP) HOLLY LOGISTIC PUBLIC SERVICES, L.L.C. Non-economic GP Interest 59.6mm HEP units1 57%…
Distributable Cash Flow / LP Unit Since Inception DCF/LP Unit Distributable Cash Flow per LP Unit1 4.00 3.65 3.46 3.50 3.36 2.94 3.00 2.75 2.52 2.57 2.52 2.50 2.20 2.06 1.98 2.00 1.85 1.47 1.58 1.35 1.50…
Historical Leverage and Coverage Ratios Leverage Ratio 6.0x 5.1 5.0x 4.0 4.0 4.5 4.2 4.1 4.3 4.5 4.1 4.3 4.1 Conservative annual capital need 3.6 3.9 4.0x 3.3 allows for modest leverage 2.7 3.0x 2.0x Averaged 4.0x leverage…
HEP Historical Growth Committed to Continuing Successful Track Record of Growth Holly Corporation 50% JV with Acquired remaining and Frontier Oil Plains for interests in SLC / Crude gathering Corporation Frontier Frontier pipelines…
HEP Avenues for Growth ORGANIC EXTERNAL TRANSACTIONS DROPDOWNS FROM HFC Leverage HEPs existing Pursue logistics assets in HEPs Partnering with HFC to build footprint to capitalize on current geographic region and/or acquire new…
Cushing Connect Joint Venture Asset Description Strategic Rationale HEP formed a 50/50 JV with Plains All American Pipeline, L.P. (PAA) Generates HEP growth while providing long term control of a consisting of: strategic asset New…
Organic Growth Crude system expansion benefits both HEP and HFC HEP owns and operates over 800 miles of crude gathering pipelines in the Permian Basin Crude Gathering Volume Growth 150 125 Thousand Barrels Per Day (KBPD)…
HEP Capital Budget 2020 Capex Budget 58-69mm Turnarounds 5-7mm Maintenance 8-12mm Expansion/JV Investment 45-50 Holly Energy Partners (NYSE: HEP) 14
HEP Financial Strength HEP Capital Structure ( millions) 12/31/2019 Credit Ratings HEP Corporate Revolver Capacity (matures 7/2022) 1,400 S&P BB+ Revolver Borrowings (966) Moodys Ba2 Revolver Availability 435 HFC Corporate Investment…
HFC Environmental, Social, and Governance (ESG) Environmental Social 33% reduction in NOX, SO2, CO, PM2.5 and 20% reduction in Tier 1 & 2 process safety Board leadership provides significant VOC emissions since 2011 incidents vs 2017…
Appendix Holly Energy Partners (NYSE: HEP) 17
HEP Assets Holly Energy Partners owns and operates substantially all of the refined product pipeline and terminaling assets that support HollyFrontiers refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain…
Contract Renewal Schedule 2020 MVC (revenue in millions) MVC as % of 2019 2 Renewal Year HFC MVC 3rd Party MVC Total MVC Tariff Total Revenue 1 2020 0 4 4 PPI (84%), FERC (9%) 1% 2021 4 0 4 FERC 1% 2022 22 12 34 PPI (5%), FERC…
Definitions KBPD: Thousand barrels per day CAGR: The compound annual growth rate is calculated by dividing the ending value by NON GAAP MEASUREMENTS: We report certain financial measures that are not the beginning value, raise the…
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