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Holly Energy Partners, L.P. Reports Third Quarter Results

October 28, 2010

DALLAS, Oct. 28 /PRNewswire-FirstCall/ — Holly Energy Partners, L.P. (“HEP” or the “Partnership”) (NYSE: HEP) today reported financial results for the third quarter of 2010. For the quarter, distributable cash flow was $24 million, up $3.3 million, or 16% compared to third quarter of 2009. For the nine months ended September 30, 2010, distributable cash flow was $66.8 million, up $15.1 million or 29% compared to the same period of 2009. Based on these results, HEP announced a distribution increase on October 26, 2010, raising the quarterly distribution from $0.825 to $0.835 per unit, representing a 5% increase over the distribution for the third quarter of 2009.

For the quarter, income from continuing operations was $16.3 million ($0.59 per basic and diluted limited partner unit) compared to $15.5 million ($0.73 per basic and diluted limited partner unit) for the third quarter of 2009. Net income was $16.3 million ($0.59 per basic and diluted limited partner unit) versus $16.5 million ($0.78 per basic and diluted limited partner unit) for the third quarter of 2009, which included Rio Grande discontinued operations. Excluding discontinued operations, the slight increase in overall earnings is due principally to contributions from our December 2009 and March 2010 asset acquisitions, partially offset by a decrease in realized deferred revenue, lower shipment volumes and increased interest costs.

For the current nine month period, income from continuing operations was $40.4 million ($1.43 per basic and diluted limited partner unit) compared to $34.3 million ($1.66 per basic and diluted limited partner unit) for the same nine month period of 2009. Net income was $40.4 million ($1.43 per basic and diluted limited partner unit) versus $38.4 million ($1.89 per basic and diluted limited partner unit) for the first nine months of 2009.

Commenting on the third quarter of 2010, Matt Clifton, Chairman of the Board and Chief Executive Officer stated, “The third quarter generated solid financial results as distributable cash flow and EBITDA again reached new quarterly highs. For the quarter, increased distributable cash flow over the same period of 2009 allowed us to declare our 24th consecutive distribution increase. EBITDA was $32 million, an increase of $2.1 million or 7% over last year’s third quarter, and for the current nine month period, EBITDA was $88.2 million, an increase of $13.3 million or 18% over last year’s respective period, reflecting earnings contributions from our 2009 and March 2010 asset acquisitions. Although shipments on our pipelines did not meet targeted levels, we are pleased with these operating results.”

“Looking forward, we will continue to explore opportunities that should provide further growth in our distributable cash flow, asset base and geographic footprint,” Clifton said.

Third Quarter 2010 Revenue Highlights

Total revenues from continuing operations for the quarter were $46.5 million, a $5.7 million increase compared to the third quarter of 2009. This was due to revenues attributable to our December 2009 and March 2010 asset acquisitions, partially offset by a $3.4 million decrease in previously deferred revenue realized and a decrease in pipeline shipments. The small decrease in affiliate pipeline shipments reflects slightly lower run rates at Holly’s Navajo refinery during the third quarter due to the impact of unscheduled downtime of certain operating units.

  • Revenues from our refined product pipelines were $19.6 million, a decrease of $3.2 million. This decrease is primarily due to a $3.2 million decrease in previously deferred revenue realized. Volumes shipped on our refined product pipelines averaged 135.2 thousand barrels per day (“mbpd”) compared to 142.8 mbpd for the third quarter of 2009.
  • Revenues from our intermediate pipelines were $4.9 million, a decrease of $0.5 million, on shipments averaging 83.2 mbpd compared to 88.1 mbpd for the third quarter of 2009. This includes a $0.2 million decrease in previously deferred revenue realized.
  • Revenues from our crude pipelines were $9.8 million, an increase of $2.2 million. This increase is primarily due to $2.3 million in revenues attributable to our Roadrunner Pipeline agreement entered into in December 2009. Volumes shipped on our crude pipelines averaged 143.6 mbpd compared to 143.9 mbpd for the third quarter of 2009.
  • Revenues from terminal, tankage and loading rack fees were $12.2 million, an increase of $7.2 million compared to the third quarter of 2009. This increase includes $7.1 million in revenues attributable to volumes transferred and stored at our Tulsa storage and rack facilities.

Revenues from continuing operations for the three months ended September 30, 2010 include the recognition of $1.6 million of prior shortfalls billed to shippers in 2009, as they did not meet their minimum volume commitments in any of the subsequent four quarters. As of September 30, 2010, deferred revenue in our consolidated balance sheet was $11.7 million. Such deferred revenue will be recognized in earnings either as payment for shipments in excess of guaranteed levels or when shipping rights expire unused over the next four quarters.

Nine Months Ended September 30, 2010 Revenue Highlights

Total revenues from continuing operations for the nine months were $132.7 million, a $24.6 million increase compared to the same period of 2009. This was due to our recent asset acquisitions and higher tariffs on affiliate shipments, partially offset by an $8.1 million decrease in previously deferred revenue realized. On a year-to-date basis, overall pipeline shipments were up 7%, reflecting increased affiliate volumes attributable to Holly Corporation’s (“Holly”) first quarter of 2009 Navajo refinery expansion, including volumes shipped on our new 16″ intermediate and Beeson pipelines, partially offset by a decrease in third-party shipments. Additionally, prior year affiliate shipments reflect lower first quarter volumes as a result of production downtime during a major maintenance turnaround of the Navajo refinery during the first quarter of 2009.

  • Revenues from our refined product pipelines were $55 million, a decrease of $7.3 million. This decrease is primarily due to a $9.1 million decrease in previously deferred revenue realized. Volumes shipped on our refined product pipelines averaged 130.9 mbpd compared to 131.1 mbpd for the first nine months of 2009, reflecting a decline in third-party shipments, offset by an increase in affiliate shipments.
  • Revenues from our intermediate pipelines were $15.7 million, an increase of $4.2 million, on shipments averaging 82.8 mbpd compared to 64.5 mbpd for the nine months ended September 30, 2009. This increase is primarily due to volumes shipped on our 16-inch intermediate pipeline combined with a $1 million increase in previously deferred revenue realized.
  • Revenues from our crude pipelines were $28.9 million, an increase of $7.7 million, on shipments averaging 140 mbpd compared to 136.3 mbpd for the nine months ended September 30, 2009. This increase is primarily due to $6.9 million in revenues attributable to our Roadrunner Pipeline agreement.
  • Revenues from terminal, tankage and loading rack fees were $33.1 million, an increase of $20 million compared to the nine months ended September 30, 2009. This increase includes $19 million in revenues attributable to volumes transferred and stored at our Tulsa storage and rack facilities.

Our revenues from continuing operations for the nine months ended September 30, 2010 include the recognition of $5.7 million of prior shortfalls billed to shippers in 2009, as they did not meet their minimum volume commitments in any of the subsequent four quarters.

Cost and Expense Highlights

Operating costs and expenses were $22.4 million and $68.2 million for the three and nine months ended September 30, 2010, respectively, representing increases of $2.8 million and $11.9 million compared to the same periods of 2009. These increases were due to costs attributable to our recent asset acquisitions, higher year-to-date throughput volumes on our heritage pipelines, early 2010 transaction related expenses, and higher depreciation, maintenance and payroll expense.

Additionally, interest expense was $8.4 million and $25.5 million for the three and nine months ended September 30, 2010, respectively, representing increases of $2 million and $9.3 million compared to the same periods of 2009. These increases reflect interest on our 8.25% senior notes issued in March 2010 and costs of $1.1 million from a partial settlement of an interest rate swap in the second quarter of 2010.

We have scheduled a webcast conference call today at 4:00 PM Eastern Time to discuss financial results. This webcast may be accessed at: http://www.videonewswire.com/event.asp?id=73286.

An audio archive of this webcast will be available using the above noted link through November 11, 2010.

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 Holly Corporation subsidiaries. The Partnership owns and operates petroleum product and crude gathering pipelines, tankage and terminals in Texas, New Mexico, Arizona, Washington, Idaho, Oklahoma and Utah. 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.

Holly Corporation operates through its subsidiaries a 100,000 barrels-per-stream-day (“bpsd”) refinery located in Artesia, New Mexico, a 31,000 bpsd refinery in Woods Cross, Utah and a 125,000 bpsd refinery in Tulsa, Oklahoma. A Holly Corporation subsidiary owns a 34% interest (including the general partner interest) in the Partnership.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward looking statements use words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,” “believe,” “may,” and similar expressions and statements regarding our plans and objectives for future operations. These statements are based on our beliefs and assumptions and those of our general partner using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give assurance that our expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected. Certain factors could cause actual results to differ materially from results anticipated in the forward-looking statements. These factors include, but are not limited to:

  • risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on our pipelines and/or terminalled in our terminals;
  • the economic viability of Holly Corporation, Alon USA, Inc. and our other customers;
  • the demand for refined petroleum products in markets we serve;
  • our ability to successfully purchase and integrate additional operations in the future;
  • our ability to complete previously announced or contemplated acquisitions;
  • the availability and cost of additional debt and equity financing;
  • the possibility of reductions in production or shutdowns at refineries utilizing our pipeline and terminal facilities;
  • the effects of current and future government regulations and policies;
  • our operational efficiency in carrying out routine operations and capital construction projects;
  • the possibility of terrorist attacks and the consequences of any such attacks;
  • general economic conditions; and
  • other financial, operations and legal risks and uncertainties detailed from time to time in our Securities and Exchange Commission filings.

The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    RESULTS OF OPERATIONS (Unaudited)
    Income, Distributable Cash Flow and Volumes
    The following tables present income, distributable cash flow and
    volume information for the three and the nine months ended September
    30, 2010 and 2009.
                                  Three Months Ended
                                                              Change
                                  ------------------                   from
                                    September 30,
                                    -------------
                                 2010             2009           2009
                                 ----             ----           ----
                                    (In thousands, except per unit
                                                data)
    Revenues
    Pipelines:
       Affiliates - refined
        product pipelines     $12,340          $12,267            $73
       Affiliates -
        intermediate
        pipelines               4,917            5,370           (453)
       Affiliates - crude
        pipelines               9,774            7,563          2,211
                                -----            -----          -----
                               27,031           25,200          1,831
       Third parties -
        refined product
        pipelines               7,277           10,552         (3,275)
                                -----           ------         ------
                               34,308           35,752         (1,444)

    Terminals and loading
     racks:
       Affiliates              10,282            3,159          7,123
       Third parties            1,959            1,894             65
                                -----            -----            ---
                               12,241            5,053          7,188
                               ------            -----          -----
    Total revenues             46,549           40,805          5,744

    Operating costs and
     expenses:
       Operations              13,632           11,103          2,529
       Depreciation and
        amortization            7,237            6,580            657
       General and
        administrative          1,508            1,848           (340)
                                -----            -----           ----
                               22,377           19,531          2,846
                               ------           ------          -----

    Operating income           24,172           21,274          2,898

    Equity in earnings of
     SLC Pipeline                 570              711           (141)
    Interest income                 1                2             (1)
    Interest expense,
     including
     amortization              (8,417)          (6,418)        (1,999)
    Other income                    9                -              9
                                  ---              ---            ---
                               (7,837)          (5,705)        (2,132)
                               ------           ------         ------

    Income from continuing
     operations before
     income taxes              16,335           15,569            766

    State income tax              (76)            (100)            24
                                  ---             ----            ---

    Income from continuing
     operations                16,259           15,469            790

    Income from
     discontinued
     operations, net of
     noncontrolling                 -            1,070         (1,070)
         interest of $269 (1)     ---            -----         ------

    Net income                 16,259           16,539           (280)

    Less general partner
     interest in net
     income, including
     incentive
     distributions (2)          3,172        2,022        1,150
                                -----            -----          -----

    Limited partners'
     interest in net
     income                   $13,087          $14,517        $(1,430)
                              =======          =======        =======
    Limited partners'
     earnings per unit -
     basic and diluted:
     (2)
       Income from continuing
        operations              $0.59            $0.73         $(0.14)
       Income from
        discontinued
        operations                  -             0.05          (0.05)
                                  ---             ====          -----
       Net income               $0.59            $0.78         $(0.19)
                                =====            =====         ======
    Weighted average
     limited partners'
     units outstanding         22,079           18,520          3,559
                               ======           ======          =====
    EBITDA (3)                $31,988          $29,888         $2,100
                              =======          =======         ======
    Distributable cash
     flow (4)                 $23,969          $20,678         $3,291
                              =======          =======         ======
    Volumes  from
     continuing operations
     (bpd) (1)
    Pipelines:
       Affiliates - refined
        product pipelines      93,194           98,987         (5,793)
         Affiliates -
          intermediate
          pipelines            83,227           88,053         (4,826)
       Affiliates - crude
        pipelines             143,617          143,902           (285)
                              -------          -------           ----
                              320,038          330,942        (10,904)
       Third parties -
        refined product
        pipelines              41,967           43,858         (1,891)
                               ------           ------         ------
                              362,005          374,800        (12,795)
    Terminals and loading
     racks:
       Affiliates             183,312          122,413         60,899
       Third parties           43,633           44,459           (826)
                               ------           ------           ----
                              226,945          166,872         60,073
                              -------          -------         ------
    Total for pipelines
     and terminal assets
     (bpd)                    588,950          541,672         47,278
                              =======          =======         ======


                                Nine Months Ended
                                                            Change
                                -----------------                    from
                                  September 30,
                                  -------------
                                 2010           2009           2009
                                 ----           ----           ----
                                  (In thousands, except per unit
                                              data)
    Revenues
    Pipelines:
       Affiliates - refined
        product pipelines     $35,887        $31,186         $4,701
       Affiliates -
        intermediate
        pipelines              15,673         11,438          4,235
       Affiliates - crude
        pipelines              28,907         21,215          7,692
                               ------         ------          -----
                               80,467         63,839         16,628
       Third parties -
        refined product
        pipelines              19,136         31,125        (11,989)
                               ------         ------        -------
                               99,603         94,964          4,639

    Terminals and loading
     racks:
       Affiliates              27,522          7,907         19,615
       Third parties            5,603          5,265            338
                                -----          -----            ---
                               33,125         13,172         19,953
                               ------         ------         ------
    Total revenues            132,728        108,136         24,592

    Operating costs and
     expenses:
       Operations              40,187         32,076          8,111
       Depreciation and
        amortization           22,038         19,209          2,829
       General and
        administrative          5,984          4,979          1,005
                                -----          -----          -----
                               68,209         56,264         11,945
                               ------         ------         ------

    Operating income           64,519         51,872         12,647

    Equity in earnings of
     SLC Pipeline               1,595          1,309            286
    Interest income                 6             10             (4)
    Interest expense,
     including
     amortization             (25,510)       (16,225)        (9,285)
    Other income                    2             65            (63)
    SLC Pipeline
     acquisition costs              -         (2,500)         2,500
                                  ---         ------          -----
                              (23,907)       (17,341)        (6,566)
                              -------        -------         ------

    Income from continuing
     operations before
     income taxes              40,612         34,531          6,081

    State income tax             (216)          (266)            50
                                 ----           ----            ---

    Income from continuing
     operations                40,396         34,265          6,131

    Income from
     discontinued
     operations, net of
     noncontrolling
     interest of 1,191 (1)          -        4,105       (4,105)
                                  ---          -----         ------

    Net income                 40,396         38,370          2,026

    Less general partner
     interest in net
     income, including
     incentive
     distributions (2)          8,727        5,163        3,564
                                -----          -----          -----
                                                                  -

    Limited partners'
     interest in net
     income                   $31,669        $33,207        $(1,538)
                              =======        =======        =======
    Limited partners'
     earnings per unit -
     basic and diluted:
     (2)
       Income from continuing
        operations              $1.43          $1.66         $(0.23)
       Income from
        discontinued
        operations                  -           0.23          (0.23)
                                  ---           ====          -----
       Net income               $1.43          $1.89         $(0.46)
                                =====          =====         ======
    Weighted average
     limited partners'
     units outstanding         22,079         17,546          4,533
                               ======         ======          =====
    EBITDA (3)                $88,154        $74,831        $13,323
                              =======        =======        =======
    Distributable cash
     flow (4)                 $66,800        $51,677        $15,123
                              =======        =======        =======
    Volumes  from
     continuing operations
     (bpd) (1)
    Pipelines:
       Affiliates - refined
        product pipelines      95,013         85,489          9,524
        Affiliates -
         intermediate
         pipelines             82,844         64,494         18,350
       Affiliates - crude
        pipelines             139,955        136,315          3,640
                              -------        -------          -----
                              317,812        286,298         31,514
       Third parties -
        refined product
        pipelines              35,923         45,647         (9,724)
                               ------         ------         ------
                              353,735        331,945         21,790
    Terminals and loading
     racks:
       Affiliates             177,946        106,969         70,977
       Third parties           38,825         42,873         (4,048)
                               ------         ------         ------
                              216,771        149,842         66,929
                              -------        -------         ------
    Total for pipelines
     and terminal assets
     (bpd)                    570,506        481,787         88,719
                              =======        =======         ======


           On December 1, 2009, we sold our 70% interest in Rio Grande.
           Results of operations of Rio Grande are presented in
           discontinued operations.  Pipeline volume information excludes
    (1)    volumes attributable to Rio Grande.

           Net income is allocated between limited partners and the
           general partner interest in accordance with the provisions of
           the partnership agreement.  Net income allocated to the
           general partner includes incentive distributions declared
           subsequent to quarter end.  General partner incentive
           distributions for the three and the nine months ended
           September 30, 2010 were $2.9 million and $8.1 million. For the
           three and the nine months ended September 30, 2009 the
           distributions were $1.7 million and $4.5 million,
           respectively.  Net income attributable to the limited partners
           is divided by the weighted average limited partner units
           outstanding in computing the limited partners' per unit
    (2)    interest in net income.

           Earnings before interest, taxes, depreciation and amortization
           ("EBITDA") is calculated as net income plus (i) interest
           expense, net of interest income, (ii) state income tax and
           (iii) depreciation and amortization.  EBITDA is not a
           calculation based upon U.S. generally accepted accounting
           principles ("GAAP").  However, the amounts included in the
           EBITDA calculation are derived from amounts included in our
           consolidated financial statements, with the exception of
           EBITDA from discontinued operations.  EBITDA should not be
           considered as an alternative to net income or operating
           income, as an indication of our operating performance or as an
           alternative to operating cash flow as a measure of liquidity.
           EBITDA is not necessarily comparable to similarly titled
           measures of other companies.  EBITDA is presented here because
           it is a widely used financial indicator used by investors and
           analysts to measure performance.  EBITDA also is used by our
           management for internal analysis and as a basis for compliance
    (3)    with financial covenants.

      Set forth below is our calculation of EBITDA.


                        Three Months Ended            Nine Months Ended
                        ------------------            -----------------
                           September 30,                September 30,
                           -------------                -------------
                           2010        2009           2010        2009
                           ----        ----           ----        ----
                                        (In thousands)

    Income from
     continuing
     operations         $16,259     $15,469        $40,396     $34,265

    Add (subtract):
      Interest expense    8,135       5,314         22,230      15,396
      Amortization of
       discount and
       deferred
       debt issuance
        costs               282         176            740         529
      Increase in
       interest expense
       - change in            -         928          2,540         300
       fair value of
        interest rate
        swaps and
       swap settlement
        costs
      Interest income        (1)         (2)            (6)        (10)
      State income tax       76         100            216         266
      Depreciation and
       amortization       7,237       6,580         22,038      19,209
      EBITDA from
       discontinued
       operations             -       1,323              -       4,876
                            ---       -----            ---       -----

    EBITDA              $31,988     $29,888        $88,154     $74,831
                        =======     =======        =======     =======


          Distributable cash flow is not a calculation based upon GAAP.
          However, the amounts included in the calculation are derived
          from amounts separately presented in our consolidated financial
          statements, with the exception of equity in excess cash flows
          over earnings of SLC Pipeline, maintenance capital expenditures
          and distributable cash flow from discontinued operations.
          Distributable cash flow should not be considered in isolation
          or as an alternative to net income or operating income, as an
          indication of our operating performance, or as an alternative
          to operating cash flow as a measure of liquidity.
          Distributable cash flow is not necessarily comparable to
          similarly titled measures of other companies.  Distributable
          cash flow is presented here because it is a widely accepted
          financial indicator used by investors to compare partnership
          performance.  It also is used by management for internal
          analysis and our performance units.  We believe that this
          measure provides investors an enhanced perspective of the
          operating performance of our assets and the cash our business
    (4)   is generating.

      Set forth below is our calculation of distributable cash flow.


                           Three Months Ended            Nine Months Ended
                           ------------------            -----------------
                              September 30,                September 30,
                              -------------                -------------
                              2010        2009           2010        2009
                              ----        ----           ----        ----
                                           (In thousands)

    Income from
     continuing
     operations            $16,259     $15,469        $40,396     $34,265

    Add (subtract):
      Depreciation and
       amortization          7,237       6,580         22,038      19,209
      Amortization of
       discount and
       deferred                            176
       debt issuance costs     282                        740         529
      Increase in
       interest expense -
        change                   -                      2,540
       in fair value of
        interest rate
        swaps and                          928                        300
       swap settlement
        costs
      Equity in excess
       cash flows over                     167
       earnings of SLC
        Pipeline               173                        525         387
       Increase (decrease)
        in deferred
        revenue                758      (3,407)         3,279      (8,076)
      SLC Pipeline
       acquisition costs*        -           -              -       2,500
      Maintenance capital
       expenditures**         (740)       (545)        (2,718)     (2,262)
      Distributable cash
       flow from                 -       1,310              -       4,825
       discontinued
        operations             ---       -----            ---       -----

    Distributable cash
     flow                  $23,969     $20,678        $66,800     $51,677
                           =======     =======        =======     =======


          We expensed the $2.5 million finder's fee associated with our joint
          venture agreement with Plains that closed in March 2009.   These
          costs directly relate to our interest in the new joint venture
          pipeline and are similar to expansion capital expenditures;
          accordingly, we have added back these costs to arrive at
    *     distributable cash flow.

          Maintenance capital expenditures are capital expenditures made to
          replace partially or fully depreciated assets in order to maintain
          the existing operating capacity of our assets and to extend their
          useful lives.  Maintenance capital expenditures include
          expenditures required to maintain equipment reliability, tankage
          and pipeline integrity, and safety and to address environmental
    **    regulations.


                                     September
                                        30,          December 31,
                                           2010                 2009
                                           ----                 ----
    Balance Sheet  Data                       (In thousands)

    Cash and cash equivalents              $706               $2,508
    Working capital (5)               $(155,392)              $4,404
    Total assets                       $634,584             $616,845
    Long-term debt (6)                 $332,564             $390,827
    Total equity (7)                   $110,948             $193,864


           Our credit agreement expires in August 2011; therefore, working
           capital at September 30, 2010 reflects $157 million of credit
           agreement borrowings that are classified as current
           liabilities.  We intend to renew the credit agreement prior to
           expiration and to continue to finance the outstanding credit
           agreement balance, which we will then reclassify as long-term
           debt.  Excluding the $157 million credit agreement borrowings,
    (5)    working capital was $1.6 million at September 30, 2010.

           Includes $206 million of credit agreement advances at December
    (6)    31, 2009.

           As a master limited partnership, we distribute our available
           cash, which historically has exceeded our net income because
           depreciation and amortization expense represents a non-cash
           charge against income.  The result is a decline in partners'
           equity since our regular quarterly distributions have exceeded
           our quarterly net income.  Additionally, if the assets
           transferred to us upon our initial public offering in 2004,
           the intermediate pipelines purchased from Holly in 2005 and
           the assets purchased from Holly in 2009 and March 2010 had
           been acquired from third parties, our acquisition cost in
           excess of Holly's basis in the transferred assets of $217.9
           million would have been recorded as increases to our
           properties and equipment and intangible assets instead of
    (7)    decreases to partners' equity.

SOURCE Holly Energy Partners, L.P.


Source: newswire



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