Holly Energy Partners (HEP) 2 Nov 212021 Q3 Earnings call transcript

Welcome to Holly Energy Partners Third Quarter 2021 Conference Call and Webcast. At this time, all participants have been placed in listen-only mode. The floor will open for your questions following the presentation. [Operator Instructions] Please note that this conference is being recorded. It is now my pleasure to turn the floor over to Trey Schonter. begin. may you Trey,

thank call. for Investor I'm Partners. Holly And quarter Relations our XXXX Energy earnings Trey you Julian. joining all third for Thanks, Schonter with

Senior Rich issued we press XX, release the and Joining XXXX. This for a Voliva, results ending today and CFO. are John us Harrison, quarter Vice announcing President morning, President; September

at If find one may press release, hollyenergy.com. you you would like a copy our today's website of on

including disclosure statement Rich regarding note provisions harbor be many Before harbor predictions November XXXX. of safe John expectations, webcast Also, future of that noted the summary, These In accurate today's call to replay as their those not longer cause proceed of no SEC management's statements. under are statements are of transcript. speaks or information made on factors or at could in today's please remarks, information outcomes. are statements in federal it and with be the judgments are filings. statements securities the any release. forward-looking presented the There Xnd, from time results covered only intended press safe differ Any says today, expectations, laws. to time-sensitive Today's provided guarantees may please reading that note our of

non-GAAP call turn I'll the release of today's GAAP Finally, may today's And include Rich. with that, call measures. press financial see Please discussion for to measures. reconciliations to over

across Frontier volumes the and for SLC this our operations third our solid you Thanks, HEP to driven in joining call quarter, on of Trey. business. pipelines record each Thanks and outstanding the results afternoon. by delivered

to entire announced on injury. of one distribution record of per year unit a X. this be quarterly November Congratulations we November as important quarter, to an without third XXth HEP on surpassed employee paid the to LP unitholders cash $X.XX milestone. recordable team our During

updates. Turning to project

of end announce We September. the are Pipeline, the at completion of went into the service Connect to Cushing excited which

for expansion, Pipeline market day be crude supported on the by barrels is with the minimum commitments XXXX. service advanced at of also which additional City Frontier beginning oil Salt in allow to refiners. per is We third-party volume Lake and construction an will XX,XXX expected the expansion into long-term of This

forward, still logistics Sinclair's to assets acquisition I Looking focused mid-XXXX call and conditions. leverage remain the over John. to target close EBITDA. strong closing of debt we expect times we operational And of X.X our will subject by on near-term to turn now to the execution

Thanks, Rich.

the compared net third quarter million $XX.X attributable of income to in of a collectively total XXXX, income which special decreased included to was Holly For third by of net $XX.X $XX.X million. the XXXX, quarter that million Energy Partners items

offset increase items, these joint income Excluding expenses. lower higher partially primarily quarter due operating The and higher by million. lower was earnings depreciation net was and $XX.X revenues third XXXX year-over-year venture to

Third was our these quarter last period million year. to in adjusted release. A reflecting found XXXX in compared same table can EBITDA be $XX.X adjustments the $XX.X reconciliation press million

year-to-date. Capital and venture a of distribution times Cushing and $X venture million the for million times During of expenditures the generated quarter distributable the were million in flow CapEx. Connect quarter, quarterly and million, cash during coverage including approximately $XX.X joint maintenance joint investments ratio X.X $XX with $XX X.X HEP

million. down we $XX XXXX, million, are For million $XX full $XX to our to year slightly from guidance $XX reducing million capital to

million processing for turnarounds. of to capital $XX expansion refinery Our investment, joint capital to maintenance $X $X capital guidance venture million to $XX includes $XX $XX unit and million million and updated million million for

on notes As our $XXX HEP million of $X.X million of facility. $XXX billion approximately consisting credit senior and due drawn September total revolving had XXth, outstanding, of debt XXXX of

XX-month adjusted third and our X.X at times. debt the $XXX approximately ratio was of liquidity trailing quarter Our the to million was end EBITDA

our on execute to on continued $XX we our by deleveraging of quarter, repaying credit strategy the borrowings facility. million During

ratio using to plan to forward, cash reduce to flow leverage our target debt down Looking retained X.X to times. X.X of we continue

Now questions. I'd like any to turn the call the operator over to for

comes go Spiro from first ahead. from Credit Dounis Thank Suisse. Please you. [Operator Your Instructions] question

Your open. line is

Hey, Rich, operator. Thanks, John.

you, How Spiro? are

good. logistics maybe good, transaction the well, Well, drop-down. for Doing want earlier just your maybe the slated some get I around week just with Sound there, think, some thinking Puget maybe closing start of of back to on just point, at this and latest the assets

proceeding. process Of course, mix in and you've Sinclair now got the that

So about maybe that just and potential timing the curious think drop structuring how we're some about how thinking at to point?

Yes.

Focus Puget burner, Sound. with coming. is I back Spiro there with, put so think obviously, the immediate now, that right Sinclair no plans we've on to respect

Got And of rest a the maintenance maybe and some you as think the outlook quarter here turnarounds thinking we're just the for that then and it. some volumes had Okay. about little I this all impacted bit. year, volumes

you're get the as there trajectory So next how we call fourth quarter, just into thinking into head we overall volumes year? just about volume curious as and anything from a to out

Yeah.

from then quarter a We Navajo will refinery affiliate Volumes in product. we will going a in the on so would from greater stages forward turnaround to in extent, see not latter both we that terms of in that quarter, impact now, there. crude of is right the HollyFrontier's - the bounce expect and first and, back fourth to

if could one, sneak in. I Last Perfect. it Okay.

Washington that mentioned some for side. opportunities had is of focused perspective? renewable renewables there you're the some else well, imagine renewable just on that them be but to potentially don't I as but of coming And you're any MLP out close up income sort and and peers point for some I would potential you're you right of from on how your the qualifying that know one is moving MLP of now watching sort something an also opening watching? to So are that on projects, at tracking

to the trillion look, Spiro, we than updates don't changes $X We - anything daily know or last-minute less does. anyone I think the more So I else bills. read on

could potentially very paying look, It - are we're interesting what's So it very but to - HEP for pay clearly We'll actively to - come. we happening is more be attention here. there. attention

Appreciate that. Understand the guys. time, Yeah.

Spiro. Thanks,

the no are questions, I over further there any If Trey Instructions] for floor remarks. to will turn [Operator closing back

All call reach for any right. to Relations again you. out you joining free questions. Investor Thank the feel have to today. if Thanks And

conference today's call. concludes This

disconnect. You joining, you Thank a may and have now for great day.