Increases quarterly distribution to $0.6500 per unit from $0.6450 per
unit
DALLAS--(BUSINESS WIRE)--
The Board of Directors of Holly Energy Partners, L.P. (NYSE:HEP) has
declared a cash distribution of $0.6500 per unit for the fourth quarter
of 2017, compared to the $0.6075 per unit distribution declared for the
fourth quarter of 2016. Holly Energy has increased its distribution to
unitholders every quarter since becoming a publicly-traded partnership
in July 2004, with today's distribution marking the 53rd
consecutive quarterly distribution increase. The distribution will be
paid on February 14, 2018 to unitholders of record on February 5, 2018.
In 2018, Holly Energy expects to increase the quarterly distribution by
$0.0050 per unit, resulting in an annual distribution growth rate of 4%.
HEP expects distribution coverage to average 1.0x for the full year of
2018 with higher coverage ratios in the second half of the year due to
contractual tariff escalators.
Holly Energy has also agreed to a private placement with certain funds
managed by Tortoise Capital Advisors, L.L.C. for approximately $110
million of common equity. Holly Energy believes that this transaction
will satisfy the majority of Holly Energy's current equity needs.
Proceeds from the transaction will be used to repay debt associated with
Holly Energy's previously announced acquisition of the Frontier and SLC
pipelines, which closed on October 31, 2017.
Holly Energy plans to announce results for its fourth quarter of 2017 on
February 20, 2018 before the opening of trading on the NYSE. The
Partnership has scheduled a webcast conference on February 20, 2018 at
4:00 p.m. Eastern time to discuss financial results.
The webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1177984&tp_key=1318d4fcc7
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. The Partnership, through its
subsidiaries and joint ventures, owns and/or operates petroleum product
and crude gathering pipelines, tankage and terminals in Texas, New
Mexico, Arizona, 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 attacks and the consequences of any such
attacks;
-
general economic conditions;
-
other financial, operations and legal risks and uncertainties detailed
from time to time in our Securities and Exchange Commission filings;
and
-
the impact of recent changes in tax laws and regulations that affect
master limited partnerships.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180126005079/en/
Holly Energy Partners, L.P.
Craig Biery, 214-954-6511
Director,
Investor Relations
or
Jared Harding, 214-954-6511
Investor
Relations
Source: Holly Energy Partners, L.P.
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