Holly Energy Partners (HEP) 22 Feb 222021 Q4 Earnings call transcript

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

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

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

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

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

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

offset slightly due a an pipeline. completed of of achieving another full volumes without contribution employee of we this HEP with partially were for afternoon. the planned and thanks at year from quarter's quarter refinery, injury, HollyFrontier's proud quarter-over-quarter, Thanks, Overall, transportation turnaround team call incredibly Connect a accomplishment. maintenance unplanned Cushing and our each by primarily We finished results. Navajo to significant down to you for recordable Trey, the joining are and consistent XXXX the

annualized by the commitments. the announce in minimum approximately underpinned EBITDA, online January Frontier pipeline expansion in to and are expect volume provide long-term to million expansion We happy came $X

unit be We record on LP XX per also announced February a cash unitholders $X.XX February to paid of distribution as X. quarterly of to

the For or unit quarterly we reduce on financial continue LP constant to $X.XX per hold basis, at an expect XXXX, distribution $X.XX leverage. while we annualized to

Looking forward into and on with assets strong of logistics our John. operational XXXX, completion performance. commitment to we to pending turn now remain the focused I'll call Sinclair's over the acquisition

Thanks, Rich.

by quarter in Holly found to income from million XXXX expenses, $XX compared revenues expense increase these lower an venture offset press refinery production XXXX A and to Partners operating For earnings. higher $XX.X the to to in partially was adjustments joint The systems, pipeline year-over-year lower in million the attributable renewable decrease and mainly table was reflecting year. same EBITDA of quarter conversion reconciliation in period Fourth was million the the our of fourth of of fourth Energy last $XX assets quarter can as ongoing to Cheyenne a HollyFrontier be on result net release. lower diesel interest XXXX. million compared adjusted $XX.X Cheyenne our volumes our due

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

to $XX expansion $XX maintenance million between For processing capital. in $XX and million turnarounds, million and expect to for spend $XX unit capital refinery for million to $XX we XXXX, million $X million

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

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

debt. to million we target year leverage $XX we range X.X And the times reduce expect over to to continue times. of using flow repaid X.X down During our in to retained further cash

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

Thank floor Instructions] first Dounis questions. is go And Credit to we you. will The for Spiro now open at Suisse. [Operator

Thanks, expect would maybe think to speak get roughly should of how I've the year with to XXXX. operator. just impact And few that kind in maybe the turnaround should there? afternoon, guys. HEP CapEx, of turnarounds? seems those some a that. when Good Can we you with a If It point Starting we start we could about then, ultimate guidance. heavier got on

It's John. Spiro. Sure,

associated So and of that's that can with Cross XX for units essentially March, scheduled in have processing or this be we the is scheduled Woods impact not so. year down refinery about downtime. you loss will the the the revenue turnaround think begin but days the the and also And about CapEx to for only

is when asset for won't down MVC the that So apply service.

the And Okay, got close it. only one that or is just that up? one coming a is

the only one. That's

sticking bit XXXX. switching But I go if avenues Perfect. that here CapEx, come back to lighter have pointed out it. several seeing for December, to growth. in slides guys in Got CapEx, expansion then you your with And from a little

that you a of was give tangible color us grow? of near-term that You is wondering generic look in on more for maybe attention And gave focus what I could to bit sort if what little a on areas our front. you see more you guys maybe the few could like. examples

Rich. Hey it's Spiro,

typically projects of So yes, generally a seeing think that this the right, what we're smaller the speaking I lot year. we in find is year

nine $XX multiple type year are million to of in times million, spending. These projects $X to we'll the $X.X $XX million find seven type range. million So normal

out perspective. this year, the none So, Connect scheduled are Cushing line. the from at at don't all Frontier of worth spiking anything them have larger least We as currently here expansion

when we able get Sinclair about do Looking going to really excited forward, portfolio. to the right, we're we closed we're think in what be

area focus get a attention we there So I in this to be going once think deal completed. lot of our the is and

Yeah. Sinclair look original guess to some to $XXX I the then around that could of EBITDA you you're And to in the go million think for if use on the I And range. Curious, benchmark timing makes That going talked $XXX for million forma that while sort guys that's you forward? milestones on point, a share pro sense. about terms anything you have to now? slides, of back good if in still

Yeah.

the are with us. we regards cooperating diligently to the all is closing, closing satisfy or with is with the with process. And conditions. working primary So the the we're factor Sinclair to Sinclair FTC FTC. gating the Currently, working

soon the to as right now, a the million We assets kind $XX-plus to of still in yeah, the think as that's would possible. Broadly your our to EBITDA a expect right, power transaction add of year the Sinclair sometime guidance To existing And our base. good of number. earnings I deal, on close XXXX. we question best expect be speaking

Perfect. Thanks for the color luck. guys. Good

you. Thank

[Operator have we I'll back additional Instructions] conference for And further the time, over any management no at this remarks. to turn questions.

All any right. if today. Well, you call out thanks Investor all reach for joining have to to Feel questions. the Relations, free

today's concludes call. And this conference

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