On Wednesday, July 25, we announced the 31st consecutive increase in our quarterly distribution to $0.91 per unit, which is a 5% increase over the $0.865 per unit we declared for 2011 second quarter. Our distributable cash flow for the quarter ended June 30 was $34.5 million, up $13.1 million from the same period the previous year. Net income for the second quarter was $23.2 million versus $19 million for the same period in 2011. And the drivers of increased distributable cash flow and net income compared to the year-ago period are basically the same, the financial contribution of the assets that HEP acquired from HollyFrontier in November 2011, increased pipeline volumes and annual tariff increases.As a reminder, the majority of HEP's revenues and, therefore, income and DCF are supported by minimum commitments from our major customers. These commitments as of June 30, 2012, totaled approximately $220 million per year or about $55 million per quarter and amount to 85% to 90% of our total revenue.
Holly Energy Partners L.P Management Discusses Q2 2012 Results - Earnings Call Transcript
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