Holly Energy Partners, L.P. (“HEP” or the “Partnership”) (NYSE:HEP) today reported financial results for the second quarter of 2013. For the quarter, distributable cash flow was $36.1 million, up $1.5 million, or 4% compared to the second quarter of 2012. HEP announced its 35th consecutive distribution increase on July 26, 2013, raising the quarterly distribution from $0.4775 to $0.4850 per unit, representing a 7% increase over the distribution for the second quarter of 2012.
Net income for the second quarter was $21.3 million compared to $19.1 million for the second quarter of 2012. The increase in net income is due principally to increased pipeline shipments and annual tariff increases, partially offset by increased operating costs and expenses. Net income attributable to Holly Energy Partners for the second quarter was $20.2 million ($0.23 per basic and diluted limited partner unit) compared to $22.0 million ($0.29 per basic and diluted limited partner unit) for the second quarter of 2012. The decrease in net income attributable to Holly Energy Partners is due principally to allocations of income to noncontrolling interests.
Commenting on the second quarter of 2013, Matt Clifton, Chairman of the Board and Chief Executive Officer stated, “We are pleased with the improvement in distributable cash flow and EBITDA compared to the second quarter of 2012 and the first quarter of 2013. As expected, pipeline shipments improved this quarter following the major maintenance turnarounds at both HollyFrontier's Navajo refinery and Alon's Big Spring refinery in the first quarter of 2013. Looking forward, positive industry fundamentals combined with HEP's strong asset base and our planned capital projects should drive continued growth in our distributable cash flow.”
Second Quarter 2013 Revenue HighlightsRevenues for the quarter were $75.3 million, a $6.6 million increase compared to the second quarter of 2012. The revenue increase was due to increased pipeline shipments and the effect of annual tariff increases. Overall pipeline volumes were up 11% compared to the three months ended June 30, 2012.
- Revenues from our refined product pipelines were $26.8 million, an increase of $2.4 million primarily due to increased refined product shipments and the effect of annual tariff increases. Shipments averaged 186.6 thousand barrels per day (“mbpd”) compared to 158.2 mbpd for the second quarter of 2012 .
- Revenues from our intermediate pipelines were $7.3 million, an increase of $0.6 million, on shipments averaging 142.4 mbpd compared to 137.1 mbpd for the second quarter of 2012.
- Revenues from our crude pipelines were $12.2 million, an increase of $1.2 million, on shipments averaging 184.3 mbpd compared to 168.0 mbpd for the second quarter of 2012.
- Revenues from terminal, tankage and loading rack fees were $29.0 million, an increase of $2.5 million compared to the second quarter of 2012. Refined products terminalled in our facilities averaged 333.9 mbpd compared to 316.8 mbpd for the second quarter of 2012.
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