Holly Energy Partners L.P. (HEP, Financial) filed Annual Report for the period ended 2009-12-31.
Holly Energy Partners L.p. has a market cap of $819.02 million; its shares were traded at around $42.04 with a P/E ratio of 18.12 and P/S ratio of 5.59. The dividend yield of Holly Energy Partners L.p. stocks is 7.66%.
On March 1, 2009, we acquired a 25% joint venture interest in the SLC Pipeline, a new 95-mile intrastate pipeline system that we jointly own with Plains All American Pipeline, L.P. (Plains). The SLC Pipeline commenced operations effective March 2009 and allows various refiners in the Salt Lake City area, including Hollys Woods Cross Refinery, to ship crude oil into the Salt Lake City area from the Utah terminus of the Frontier Pipeline as well as crude oil flowing from Wyoming and Utah via Plains Rocky Mountain Pipeline. The total cost of our investment in the SLC Pipeline was $28 million, consisting of the capitalized $25.5 million joint venture contribution and the $2.5 million finders fee paid to Holly that was expensed as acquisition costs.
On December 1, 2009, we sold our 70% interest in Rio Grande Pipeline Company (Rio Grande) to a subsidiary of Enterprise Products Partners LP for $35 million. Accordingly, the results of operations of Rio Grande and the $14.5 million gain on the sale are presented in discontinued operations.
On February 29, 2008, we acquired from Holly certain crude pipelines and tankage assets (the Crude Pipelines and Tankage Assets) for $180 million that consist of crude oil trunk lines that deliver crude oil to Hollys Navajo Refinery in southeast New Mexico, gathering and connection pipelines located in west Texas and New Mexico, on-site crude tankage located within the Navajo and Woods Cross Refinery complexes, a jet fuel products pipeline between Artesia and Roswell, New Mexico, a leased jet fuel terminal in Roswell, New Mexico and crude oil and refined product pipelines that support Hollys Woods Cross Refinery. The consideration paid consisted of $171 million in cash and 217,497 of our common units having a fair value of $9 million.
We also have a pipelines and terminals agreement with Alon expiring in 2020 under which Alon has agreed to transport on our pipelines and throughput through our terminals volumes of refined products that results in a minimum level of annual revenue. The agreed upon tariff rates are increased or decreased annually at a rate equal to the percentage change in PPI, but will not decrease below the initial $20.2 million annual amount. Following the March 1, 2009 PPI adjustment, Alons total minimum commitment for the twelve months ending February 28, 2010 is $21.7 million. Furthermore, for the twelve months ending February 28, 2011, Alons minimum commitment will increase to $22.7 million as a result of the upcoming March 1, 2010 PPI adjustment.
Read the The complete Report
Holly Energy Partners L.p. has a market cap of $819.02 million; its shares were traded at around $42.04 with a P/E ratio of 18.12 and P/S ratio of 5.59. The dividend yield of Holly Energy Partners L.p. stocks is 7.66%.
Highlight of Business Operations:
On December 1, 2009, we acquired certain logistics and storage assets from an affiliate of Sinclair for $79.2 million consisting of storage tanks having approximately 1.4 million barrels of storage capacity and loading racks at Sinclairs refinery located in Tulsa, Oklahoma. The purchase price consisted of $25.7 million in cash, including $4.2 million in taxes and 1,373,609 of our common units having a fair value of $53.5 million. Separately, Holly, also a party to the transaction, acquired Sinclairs Tulsa refinery.On March 1, 2009, we acquired a 25% joint venture interest in the SLC Pipeline, a new 95-mile intrastate pipeline system that we jointly own with Plains All American Pipeline, L.P. (Plains). The SLC Pipeline commenced operations effective March 2009 and allows various refiners in the Salt Lake City area, including Hollys Woods Cross Refinery, to ship crude oil into the Salt Lake City area from the Utah terminus of the Frontier Pipeline as well as crude oil flowing from Wyoming and Utah via Plains Rocky Mountain Pipeline. The total cost of our investment in the SLC Pipeline was $28 million, consisting of the capitalized $25.5 million joint venture contribution and the $2.5 million finders fee paid to Holly that was expensed as acquisition costs.
On December 1, 2009, we sold our 70% interest in Rio Grande Pipeline Company (Rio Grande) to a subsidiary of Enterprise Products Partners LP for $35 million. Accordingly, the results of operations of Rio Grande and the $14.5 million gain on the sale are presented in discontinued operations.
On February 29, 2008, we acquired from Holly certain crude pipelines and tankage assets (the Crude Pipelines and Tankage Assets) for $180 million that consist of crude oil trunk lines that deliver crude oil to Hollys Navajo Refinery in southeast New Mexico, gathering and connection pipelines located in west Texas and New Mexico, on-site crude tankage located within the Navajo and Woods Cross Refinery complexes, a jet fuel products pipeline between Artesia and Roswell, New Mexico, a leased jet fuel terminal in Roswell, New Mexico and crude oil and refined product pipelines that support Hollys Woods Cross Refinery. The consideration paid consisted of $171 million in cash and 217,497 of our common units having a fair value of $9 million.
We also have a pipelines and terminals agreement with Alon expiring in 2020 under which Alon has agreed to transport on our pipelines and throughput through our terminals volumes of refined products that results in a minimum level of annual revenue. The agreed upon tariff rates are increased or decreased annually at a rate equal to the percentage change in PPI, but will not decrease below the initial $20.2 million annual amount. Following the March 1, 2009 PPI adjustment, Alons total minimum commitment for the twelve months ending February 28, 2010 is $21.7 million. Furthermore, for the twelve months ending February 28, 2011, Alons minimum commitment will increase to $22.7 million as a result of the upcoming March 1, 2010 PPI adjustment.
Read the The complete Report
