v3.22.2.2
Supplemental Guarantor / Non-Guarantor Financial Information
 9 Months Ended
Sep. 30, 2022
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]  
Supplemental Guarantor / Non-Guarantor Financial Information Supplemental Guarantor/Non-Guarantor Financial Information
Obligations of HEP (“Parent”) under the Senior Notes have been jointly and severally guaranteed by each of its direct and indirect 100% owned subsidiaries, other than Holly Energy Finance Corp., and certain immaterial subsidiaries (“Guarantor Subsidiaries”). These guarantees are full and unconditional, subject to certain customary release provisions. These circumstances include (i) when a Guarantor Subsidiary is sold or sells all or substantially all of its assets, (ii) when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, (iii) when a Guarantor Subsidiary’s guarantee of other indebtedness is terminated or released and (iv) when the requirements for legal defeasance or covenant defeasance or to discharge the senior notes have been satisfied.

The following financial information presents condensed consolidating balance sheets, statements of income, and statements of cash flows of the Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting.

As a result of the HEP Transaction, UNEV Pipeline, LLC became a 100% owned subsidiary, and it was subsequently added as a guarantor of the obligations of HEP under the Senior Notes during the second quarter of 2022. UNEV Pipeline, LLC financial information has been included in the Guarantor Subsidiaries financial information for all periods presented.
Condensed Consolidating Balance Sheet
September 30, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$7,345 $5,535 $2,671 $— $15,551 
Accounts receivable87,579 1,356 (1,311)87,624 
Prepaid and other current assets155 9,663 342 (342)9,818 
Total current assets7,500 102,777 4,369 (1,653)112,993 
Properties and equipment, net— 1,417,198 — — 1,417,198 
Operating lease right-of-use assets— 2,457 — — 2,457 
Net investment in leases— 539,394 101,508 (101,508)539,394 
Investment in subsidiaries
2,443,931 69,368 — (2,513,299)— 
Intangible assets, net— 62,802 — — 62,802 
Goodwill— 322,007 — — 322,007 
Equity method investments— 230,448 35,738 — 266,186 
Deferred turnaround costs— 25,092 — — 25,092 
Other assets6,304 10,538 — — 16,842 
Total assets$2,457,735 $2,782,081 $141,615 $(2,616,460)$2,764,971 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$— $43,624 $1,968 $(1,311)$44,281 
Accrued interest17,922 — — — 17,922 
Deferred revenue— 11,923 — — 11,923 
Accrued property taxes— 10,603 — — 10,603 
Current operating lease liabilities— 966 — — 966 
Current finance lease liabilities— 6,264 — (2,087)4,177 
Other current liabilities87 1,553 911 — 2,551 
Total current liabilities18,009 74,933 2,879 (3,398)92,423 
Long-term debt1,593,797 — — — 1,593,797 
Noncurrent operating lease liabilities— 1,949 — — 1,949 
Noncurrent finance lease liabilities— 152,147 — (89,357)62,790 
Other long-term liabilities345 22,885 — — 23,230 
Deferred revenue— 26,752 — — 26,752 
Class B unit— 59,484 — — 59,484 
Equity - partners845,584 2,443,931 69,368 (2,523,705)835,178 
Equity - noncontrolling interests— — 69,368 — 69,368 
Total liabilities and equity$2,457,735 $2,782,081 $141,615 $(2,616,460)$2,764,971 
Condensed Consolidating Balance Sheet
December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$1,273 $4,227 $8,881 $— $14,381 
Accounts receivable— 68,768 2,833 (2,702)68,899 
Prepaid and other current assets353 10,680 304 (304)11,033 
Total current assets1,626 83,675 12,018 (3,006)94,313 
Properties and equipment, net— 1,329,028 — — 1,329,028 
Operating lease right-of-use assets— 2,275 — — 2,275 
Net investment in leases— 309,301 100,032 (100,030)309,303 
Investment in subsidiaries1,785,024 70,437 — (1,855,461)— 
Intangible assets, net— 73,307 — — 73,307 
Goodwill— 223,650 — — 223,650 
Equity method investments— 78,873 37,505 — 116,378 
Deferred turnaround costs— 2,632 — — 2,632 
Other assets8,118 6,863 — — 14,981 
Total assets$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$— $34,566 $8,416 $(2,702)$40,280 
Accrued interest11,258 — — — 11,258 
Deferred revenue— 14,585 — — 14,585 
Accrued property taxes— 4,542 — — 4,542 
Current operating lease liabilities— 620 — — 620 
Current finance lease liabilities— 5,566 — (1,780)3,786 
Other current liabilities3 1,513 265 — 1,781 
Total current liabilities11,261 61,392 8,681 (4,482)76,852 
Long-term debt1,333,049 — — — 1,333,049 
Noncurrent operating lease liabilities— 2,030 — — 2,030 
Noncurrent finance lease liabilities— 156,102 — (91,453)64,649 
Other long-term liabilities340 12,187 — — 12,527 
Deferred revenue— 29,662 — — 29,662 
Class B unit— 56,549 — — 56,549 
Equity - partners450,118 1,785,024 70,437 (1,862,562)443,017 
Equity - noncontrolling interests— 77,095 70,437 — 147,532 
Total liabilities and equity$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
Condensed Consolidating Statement of Income
Three Months Ended September 30, 2022ParentGuarantor Restricted
Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $122,868 $— $— $122,868 
Third parties— 26,134 — — 26,134 
— 149,002 — — 149,002 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 59,493 977 — 60,470 
Depreciation and amortization— 25,236 — — 25,236 
General and administrative703 3,048 — — 3,751 
703 87,777 977 — 89,457 
Operating income (loss)(703)61,225 (977)— 59,545 
Other income (expense):
Equity in earnings of subsidiaries64,681 1,964 — (66,645)— 
Equity in earnings of equity method investments— (17,117)783 — (16,334)
Interest expense(22,027)(5,060)— 4,122 (22,965)
Interest income— 24,234 4,122 (4,122)24,234 
Gain on sale of assets and other— 494 — — 494 
42,654 4,515 4,905 (66,645)(14,571)
Income before income taxes41,951 65,740 3,928 (66,645)44,974 
State income tax (expense)— (38)— — (38)
Net income 41,951 65,702 3,928 (66,645)44,936 
Allocation of net income attributable to noncontrolling interests
— (1,021)(1,964)— (2,985)
Net income attributable to the partners
$41,951 $64,681 $1,964 $(66,645)$41,951 
Condensed Consolidating Statement of Income
Three Months Ended September 30, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $97,124 $— $— $97,124 
Third parties— 25,460 — — 25,460 
— 122,584 — — 122,584 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 42,276 517 — 42,793 
Depreciation and amortization— 21,826 — — 21,826 
General and administrative739 3,110 — — 3,849 
739 67,212 517 — 68,468 
Operating income (loss)(739)55,372 (517)— 54,116 
Other income (expense):
Equity in earnings of subsidiaries69,553 260 — (69,813)— 
Equity in earnings of equity method investments— 2,743 946 — 3,689 
Interest expense(12,431)(1,077)— 91 (13,417)
Interest income— 6,835 91 (91)6,835 
Gain on sales-type lease— 7,223 — (7,223)— 
Gain on sale of assets and other— 77 — — 77 
57,122 16,061 1,037 (77,036)(2,816)
Income before income taxes56,383 71,433 520 (77,036)51,300 
State income tax benefit— 4 — — 4 
Net income 56,383 71,437 520 (77,036)51,304 
Allocation of net income attributable to noncontrolling interests
— (1,884)(260)— (2,144)
Net income attributable to the partners
$56,383 $69,553 $260 $(77,036)$49,160 
Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2022ParentGuarantor Restricted
Subsidiaries		Non-Guarantor Non-restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $325,659 $— $— $325,659 
Third parties— 79,311 — — 79,311 
— 404,970 — — 404,970 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 154,250 2,744 — 156,994 
Depreciation and amortization— 74,397 — — 74,397 
General and administrative2,703 10,042 — — 12,745 
2,703 238,689 2,744 — 244,136 
Operating income (loss)(2,703)166,281 (2,744)— 160,834 
Other income (expense):
Equity in earnings of subsidiaries205,112 6,062 — (211,174)— 
Equity in earnings of equity method investments— (9,756)2,495 — (7,261)
Interest expense(54,107)(15,217)— 12,373 (56,951)
Interest income— 61,212 12,373 (12,373)61,212 
Gain on sale of assets and other— 640 — — 640 
151,005 42,941 14,868 (211,174)(2,360)
Income before income taxes148,302 209,222 12,124 (211,174)158,474 
State income tax (expense)— (83)— — (83)
Net income 148,302 209,139 12,124 (211,174)158,391 
Allocation of net income attributable to noncontrolling interests
— (4,027)(6,062)— (10,089)
Net income attributable to the partners
$148,302 $205,112 $6,062 $(211,174)$148,302 
Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2021ParentGuarantor Restricted
Subsidiaries		Non-Guarantor Non-restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $298,192 $— $— $298,192 
Third parties— 77,810 — — 77,810 
— 376,002 — — 376,002 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 124,710 1,516 — 126,226 
Depreciation and amortization— 71,894 — — 71,894 
General and administrative2,824 6,840 — — 9,664 
Goodwill impairment— 11,034 — — 11,034 
2,824 214,478 1,516 — 218,818 
Operating income (loss)(2,824)161,524 (1,516)— 157,184 
Other income (expense):
Equity in earnings of subsidiaries216,958 648 — (217,606)— 
Equity in earnings of equity method investments— 6,154 2,721 — 8,875 
Interest expense(37,609)(3,077)— 91 (40,595)
Interest income— 19,997 91 (91)19,997 
Gain on sales-type lease— 31,900 — (7,223)24,677 
Gain on sale of assets and other— 5,994 — — 5,994 
179,349 61,616 2,812 (224,829)18,948 
Income before income taxes176,525 223,140 1,296 (224,829)176,132 
State income tax (expense)— (60)— — (60)
Net income 176,525 223,080 1,296 (224,829)176,072 
Allocation of net income attributable to noncontrolling interests
— (6,122)(648)— (6,770)
Net income attributable to the partners
176,525 216,958 648 (224,829)169,302