Document
false0001283140 0001283140 2019-10-17 2019-10-17

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 17, 2019 (October 17, 2019)
___________________

HOLLY ENERGY PARTNERS, LP
(Exact name of Registrant as specified in its charter)
Delaware
001-32225
20-0833098
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer
Identification Number)
2828 N. Harwood, Suite 1300
Dallas
Texas
75201
(Address of principal executive offices)
 
(Zip code)
       
Registrant’s telephone number, including area code: (214) 871-3555
 
Not applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to 12(b) of the Securities Exchange Act of 1934:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Limited Partner Units
HEP
New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company        
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐
  



Item 7.01. Regulation FD Disclosure.

On October 17, 2019, Holly Energy Partners, L.P. (the “Partnership”) issued a press release announcing the declaration of its quarterly distribution of $0.6725 per unit for the third quarter of 2019, updating previously issued coverage guidance for 2019 and initiating 2020 distribution and coverage guidance. A copy of the Partnership’s press release is attached hereto as Exhibit 99.1 and incorporated herein in its entirety.

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 No.    Description    
    
99.1     Press release of the Partnership issued October 17, 2019.*

104    Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

________________________
* Furnished herewith.






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HOLLY ENERGY PARTNERS, L.P.

By:     HEP Logistics Holdings, L.P.
    its General Partner

By:    Holly Logistic Services, L.L.C.
its General Partner

By:     /s/ Richard L.Voliva III        
Richard L. Voliva III
Executive Vice President and
Chief Financial Officer

Date: October 17, 2019


Exhibit

October 17, 2019

Holly Energy Partners Announces Quarterly Distribution, Updates 2019 Guidance and Initiates 2020 Distribution and Coverage Guidance

DALLAS--(BUSINESS WIRE) -- The Board of Directors of Holly Energy Partners, L.P. (NYSE:HEP) has declared a cash distribution of $0.6725 per unit for the third quarter of 2019. The quarterly distribution amount remains the same as the $0.6725 per unit paid in the second quarter of 2019. The distribution will be paid on November 12, 2019 to unitholders of record on October 28, 2019.

For 2019 and through 2020, HEP expects to hold the quarterly distribution constant at $0.6725 per unit, or $2.69 on an annualized basis, while maintaining a distribution coverage ratio of 1.0x. HEP’s 2020 distribution guidance reflects growth from contractual tariff escalators and the recently announced Cushing Connect joint venture offset by lower revenues from Delek and elevated maintenance capital expenditures due to one-time events.

George Damiris, Chief Executive Officer, commented “HEP’s fee based business model is underpinned by long-term contracts featuring substantial minimum volume commitments with downstream customers, de minimis direct commodity exposure and a supportive parent, HollyFrontier.

With our largest re-contracting risk behind us, we remain committed to both maintaining a healthy balance sheet and distributing cash flow to our unit holders with a distribution coverage ratio at or above 1.0x. As the recently announced Cushing Connect joint venture shows, we continue to generate new revenue opportunities for HEP and we are optimistic about new alternatives for our assets not contractually renewed by Delek.”

Holly Energy plans to announce results for its third quarter of 2019 on October 30, 2019 before the opening of trading on the NYSE. The Partnership has scheduled a webcast conference on October 30, 2019 at 4:00 p.m. Eastern time to discuss financial results.

The webcast may be accessed at:
https://event.on24.com/wcc/r/2080138/CAE357C8554E8B7B173607A94575B76B

About Holly Energy Partners, L.P.:

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries. Holly Energy, through its subsidiaries and joint ventures, owns and/or operates petroleum product and crude gathering pipelines, tankage and terminals in Texas, New Mexico, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming and Kansas as well as refinery processing units in Kansas and Utah.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Please note that one hundred percent (100.0%) of Holly Energy Partner's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, Holly Energy Partner's distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.




Forward-looking Statement:

The statements in this press release relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. These statements are based on our beliefs and assumptions and those of our general partner using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give assurance that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. Any differences could be caused by a number of factors including, but not limited to:
risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on our pipelines and/or terminalled, stored and throughput in our terminals;
the economic viability of HollyFrontier Corporation, Delek US Holdings, Inc. and our other customers;
the demand for refined petroleum products in markets we serve;
our ability to purchase and integrate future acquired operations;
our ability to complete previously announced or contemplated acquisitions;
the availability and cost of additional debt and equity financing;
the possibility of reductions in production or shutdowns at refineries utilizing our pipeline and terminal facilities;
the effects of current and future government regulations and policies;
our operational efficiency in carrying out routine operations and capital construction projects;
the possibility of terrorist or cyber attacks and the consequences of any such attacks;
general economic conditions; and
other financial, operations and legal risks and uncertainties detailed from time to time in our Securities and Exchange Commission filings.
The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Holly Energy Partners, L.P.
Craig Biery, 214-954-6511
Director, Investor Relations
or
Trey Schonter, 214-954-6511
Investor Relations