Holly Energy Partners, L.P. NAPTP Investor Conference May 2014
Holly Energy Partners, L.P. (HEP) Investment Highlights Well positioned assets serve high growth markets Revenues are 100% fee based with no commodity ownership risk Long-term contracts support cash flow stability HEP benefits…
Well Positioned Assets 4
Fee-based Revenues with No Commodity Risk Fee-based revenues Tariffs from pipeline movements Storage and transfer fees for terminal activity Loading fees for loading rack activity Capacity lease commitments With no commodity…
Long Term Contracts Support Cashflow Stability Major refiner customers have entered into 15-year long term contracts Percent of Revenues from Minimum Volume Commitments Contracts require minimum payment obligations for volume…
HollyFrontier Business Highlights Pure play competitive refiner 5 refineries with 443,000 bbls per day of refining capacity High refining complexity combined Nelson complexity of over 12.0. Multiple sources of crude oil all crude…
Strategic Relationship with HollyFrontier HEPs assets are integral to HollyFrontiers five refineries Currently, subsidiaries of HFC own 37% of the MLP through limited partner interests and 2% through a general partner interest As…
Successful Execution of Growth Plan Over Time Organic growth: Increase cash flow via logical additions to existing assets, volume growth and annual contractual PPI- related growth HFC growth: Partner with HFC to grow current asset…
HEP Growth Chronology: IPO to Present Holly Tulsa Sale of 70% Holly Corporation loading rack interest in Rio Purchase of and Frontier Oil Holly intermediate additional feedstock pipeline dropdown Grande to Corporation Begin Crude…
HEP Growth Since Inception Growing Financial Returns: 17%+ CAGR in Revenue, EBITDA, DCF (data in millions) Revenue, 18% CAGR EBITDA, 18% CAGR DCF, 17% CAGR 192 305 147 80 50 41 2005 2013 2005 2013 2005 2013…
HEP Growth: Limited Partner Distributions Distribution has been increased every quarter since IPO38 consecutive quarters 2.00 1.93 Annual Distribution (/unit) 1 1.81 1.72 1.75 1.64 1.56 1.48 1.50 1.39 1.29 1.25 1.11…
Focus on Crude Transportation 13
Southeastern New Mexico Crude Gathering System Expansion System Overview - 800 miles of pipeline in SE New Mexico Provides connections to major clearing points Centurion to Cushing and Bisti to Midland/Crane Expands gathering…
UNEV Pipeline Volume Growth Though shipments have exceeded minimums for short periods of time, UNEV volumes are running at or below minimums on average UNEV to continue contributing to DCF at planned levels until SLC area…
HEP Expected Visible Growth Expected Annual Expected Incremental Revenue Timing (1) SE NM Crude Gathering 10 mm 2H 2014 UNEV Volume Increase (2) 15 mm 2015 - 2016 via SLC Refinery Expansions (3) Contractual Tariff Increases 3…
Holly Energy Partners, L.P. Investment Highlights Well positioned assets serve high growth markets Revenues are 100% fee based with no commodity ownership risk Long-term contracts support cash flow stability HEP benefits from…
Contact Information: Holly Energy Partners, L.P. (NYSE: HEP) For investor relations questions please contact: Julia Heidenreich, VP, Investor Relations Blake Barfield, Investor Relations 2828 N. Harwood, Suite 1300 Dallas,…
Appendix 19
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…
Definitions BPD: Barrels per day DISTRIBUTABLE CASH FLOW: Distributable cash flow (DCF) is not a calculation based upon GAAP. However, the amounts included in the calculation are derived from amounts separately presented in our…
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