As an owner in a limited partnership, you will have your share of the partnership's income (or loss) allocated on an annual basis. Each year, Holly Energy Partners furnishes each partner with a customized Schedule K-1 to reflect their respective share of HEP's net income, gains, losses and deductions for the year. Unitholders can typically expect to receive their Schedule K-1 by early March and may also access electronic copies of their Schedule K-1 by visiting the Tax Information page of this website. Additionally, Unitholders may sign up for electronic delivery of their K-1s via the link below.
In general, we pay cash distributions in the following manner:
If cash distributions exceed $0.275 per unit in a quarter, our general partner will receive increasing percentages, up to 50%, of the cash we distribute in excess of that amount. We refer to these as "incentive distributions."
We must distribute all of our cash on hand at the end of each quarter, less reserves established by our general partner in its discretion. We refer to this as "available cash." The amount of available cash may be greater than or less than the minimum quarterly distribution.
Unlike the holders of common stock in a corporation, unitholders have only limited voting rights on matters affecting our business and, therefore, limited ability to influence management's decisions regarding our business. Unitholders did not elect our general partner or the board of directors of our general partner's general partner and have no right to elect our general partner or the board of directors of our general partner's general partner on an annual or other continuing basis. The vote of the holders of at least 66 2/3% of all outstanding units voting together as a single class is required to remove the general partner. Unitholders will be unable to remove the general partner without its consent because the general partner and its affiliates own sufficient units to prevent its removal.
If at any time our general partner and its affiliates own more than 80% of the outstanding common units, our general partner has the right, but not the obligation, to purchase all, but not less than all, of the remaining common units held by unaffiliated persons at a price not less than the then-current market price of the common units.
Our common units are listed on the New York Stock Exchange under the symbol "HEP."
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