Cost and Expense Highlights

Operating costs and expenses were $29.5 million and $58.8 million for the three and the six months ended June 30, 2012, respectively, representing increases of $5.9 million and $13.4 million over the respective periods of 2011. These increases reflect incremental operating costs and expenses attributable to higher throughput levels and our recently acquired assets serving HFC’s El Dorado and Cheyenne refineries as well as year-over-year increases in depreciation expense, maintenance service and payroll costs and professional fees.

Interest expense was $11.3 million and $21.7 million for the three and the six months ended June 30, 2012, respectively, representing increases of $2.6 million and $4.5 million over the respective periods of 2011 due to higher year-over-year debt levels. Also, we recognized a loss of $0.4 million and $3.0 million for the three and six months ended June 30, 2012, respectively, on the early extinguishment of our $185 million 6.25% senior notes.

We have scheduled a webcast conference call today at 4:00 PM Eastern Time to discuss financial results. This webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1007359.

An audio archive of this webcast will be available using the above noted link through August 14, 2012.

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 owns and operates petroleum product and crude gathering pipelines, tankage and terminals in Texas, New Mexico, Arizona, Washington, Idaho, Oklahoma, Utah, Wyoming and Kansas. In addition, the Partnership owns a 25% interest in SLC Pipeline LLC, a 95-mile intrastate pipeline system serving refineries in the Salt Lake City, Utah area and a 75% interest in UNEV Pipeline L.L.C., the owner of a Holly Energy operated refined products pipeline running from Utah to Las Vegas, Nevada, and related product terminals.

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