HOLLY ENERGY PARTNERS, L.P. Item 2.02. Results of Operations and Financial Condition
The information contained in the section entitled "Preliminary Estimate of Selected Fourth Quarter 2019 Financial Results" included in Item 7.01 herein is incorporated in full into this Item 2.02. Such information is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference to such filing.
Item 7.01. Regulation FD Disclosure
On
The Partnership intends to use the net proceeds from the offering of the Notes, together with its borrowings under its revolving credit agreement, to redeem all of the Issuers' currently outstanding 6.0% senior notes due 2024. A copy of that press release is attached hereto as Exhibit 99.1 and incorporated herein by reference in its entirety.
In connection with the commencement of the offering, the Partnership is
disclosing the following preliminary financial information for the three months
ended
Preliminary Estimate of Selected Fourth Quarter 2019 Financial Results
The following preliminary financial information reflects management's estimates
based solely upon information available to it as of the date hereof. The
preliminary financial results presented below are not a comprehensive statement
of the Partnership's financial results for the three months ended
Although the Partnership's results of operations as of and for the three months
ended
EBITDA and Adjusted EBITDA Reconciliations. The following table presents
preliminary financial reconciliations of EBITDA and Adjusted EBITDA to the GAAP
financial measure of net income attributable to HEP for the three months ended
Three Months Ended December
31, 2019
Low High
(in millions)
Reconciliation of EBITDA to Net Income Attributable to HEP Net income attributable to HEP
$ 44.0 $ 47.0 Add (subtract): Interest expense 19.8 19.8 Interest income (2.2 ) (2.2 ) Depreciation and amortization 24.5 24.5 EBITDA$ 86.1 $ 89.1 Pipeline tariffs and lease payments not included in EBITDA (0.8 ) (0.8 ) Adjusted EBITDA$ 85.3 $ 88.3
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Distributable Cash Flow Reconciliation. The following table presents a
preliminary financial reconciliation of distributable cash flow to the GAAP
financial measure of net income attributable to HEP for the three months ended
Three Months Ended
December 31, 2019
Low High
(in millions)
Net income attributable to HEP $ 44.0 $ 47.0
Add (subtract):
Depreciation and amortization 24.5 24.5
Amortization of discount and deferred debt issuance costs 0.8 0.8
Revenue recognized (greater) less than customer billings 0.4 0.4
Maintenance capital expenditures (3.0 ) (3.0 )
Decrease in environmental liability (0.4 ) (0.4 )
Decrease in reimbursable deferred revenue (2.4 ) (2.4 )
Other (1.3 ) (1.3 )
Distributable cash flow $ 62.6 $ 65.6 The information contained in, or incorporated into, this Item 7.01 is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference to such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit Description
99.1* Press Release announcing the Proposed Offering of Senior Notes,
dated January 21, 2020
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
* Furnished herewith.
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