Holly Energy Partners, L.P. (“HEP”) is a Delaware limited partnership engaged principally in the business of operating a system of petroleum product and crude oil pipelines, storage tanks, distribution terminals and loading rack facilities in west Texas, New Mexico, Utah, Arizona, Washington, Oklahoma, Kansas, Nevada, Wyoming and Idaho. HEP was formed in Delaware in 2004 and maintains corporate offices in Dallas, Texas. HollyFrontier Corporation ("HollyFrontier") currently owns a 39% interest in HEP, including the 2% general partner interest.
HEP owns and operates petroleum product and crude oil pipelines and terminal, tankage and loading rack facilities that support HollyFrontier's refining and marketing operations in west Texas, New Mexico, Utah, Arizona, Washington, Oklahoma, Kansas, Nevada, Wyoming and Idaho. HEP also owns and operates refined product pipelines and terminals, located primarily in Texas, that service Alon USA, Inc.’s (“Alon”) refinery in Big Spring, Texas. Additionally, HEP owns a 25% joint venture interest in a 95-mile intrastate crude oil pipeline system (the “SLC Pipeline”) that serves refineries in the Salt Lake City area and a 75% interest in UNEV Pipeline, LLC, the owner of an HEP operated refined products pipeline running from Utah to Las Vegas, Nevada and related products terminals.
HEP generates revenues by charging tariffs for transporting petroleum products and crude oil through pipelines, by charging fees for terminalling refined products and other hydrocarbons, and by storing and providing other services at storage tanks and terminals. HEP does not take ownership of products that it transports, terminals or stores, and therefore, is not directly exposed to changes in commodity prices.
HEP assets include the following:
- approximately 810 miles of refined product pipelines, including 340 miles of leased pipelines, that transport gasoline, diesel and jet fuel principally from HFC’s Navajo refinery in New Mexico to its customers in the metropolitan and rural areas of Texas, New Mexico, Arizona, Utah and northern Mexico;
- approximately 510 miles of refined product pipelines that transport refined products from Alon’s Big Spring refinery in Texas to its customers in Texas and Oklahoma;
- three 65-mile intermediate pipelines that transport intermediate feedstocks and crude oil from HFC’s Navajo refinery crude oil distillation and vacuum facilities in Lovington, New Mexico to its petroleum refinery facilities in Artesia, New Mexico;approximately 960 miles of crude oil trunk, gathering and connection pipelines located in west Texas, New Mexico and Oklahoma that deliver crude oil to HFC’s Navajo refinery;
- approximately 960 miles of crude oil trunk, gathering and collection pipelines located in west Texas, New Mexico, and Oklahoma that deliver crude oil to HollyFrontier's Navajo refinery;
- approximately 10 miles of refined product pipelines that support HollyFrontier’s Woods Cross refinery located near Salt Lake City, Utah;
- gasoline and diesel connecting pipelines located at HollyFrontier’s Tulsa east refinery facility;
- five intermediate product and gas pipelines between HollyFrontier’s Tulsa east and west refinery facilities;
- crude receiving assets located at HollyFrontier’s Cheyenne refinery;
- a 25% joint venture interest in the SLC pipeline, a 95-mile intrastate crude oil pipeline system that transports crude oil into the Salt Lake City, Utah area from the Utah terminus of the Frontier Pipeline, as well as crude oil flowing from Wyoming and Utah via Plains All American Pipeline, L. P.’s (“Plains”) Rocky Mountain Pipeline; and
- a 75% interest in UNEV Pipeline, LLC, the owner of a 400-mile refined products pipeline system running from Salt Lake City, Utah to Las Vegas, Nevada.
Refined Product Terminals and Refinery Tankage
- four refined product terminals located in El Paso, Texas; Moriarty and Bloomfield, New Mexico; and Tucson, Arizona, with an aggregate capacity of approximately 1,300,000 barrels, that are integrated with our refined product pipeline system that serves HollyFrontier’s Navajo refinery;
- three refined product terminals (two of which are 50% owned), located in Burley and Boise, Idaho and Spokane, Washington, with an aggregate capacity of approximately 500,000 barrels, that serve third-party common carrier pipelines;
- one refined product terminal near Mountain Home, Idaho with a capacity of 120,000 barrels, that serves a nearby United States Air Force Base;
- two refined product terminals, located in Wichita Falls and Abilene, Texas, and one tank farm in Orla, Texas with aggregate capacity of 500,000 barrels, that are integrated with our refined product pipelines that serve Alon’s Big Spring refinery;
- a refined product loading rack facility at each of v’s refineries, heavy product / asphalt loading rack facilities at HFC’s Navajo refinery Lovington facility, Tulsa refinery east facility and the Cheyenne refinery, liquefied petroleum gas (“LPG”) loading rack facilities at HollyFrontier’s Tulsa refinery west facility, Cheyenne refinery and El Dorado refinery, lube oil loading racks at HollyFrontier’s Tulsa refinery wast facility and crude oil Leased Automatic Custody Transfer (“LACT”) units located at HollyFrontier’s Cheyenne refinery;
- a leased jet fuel terminal in Roswell, New Mexico;
- on-site crude oil tankage at HollyFrontier’s Navajo, Woods Cross, Tulsa and Cheyenne refineries having an aggregate storage capacity of approximately 1,100,000 barrels; and
- on-site refined and intermediate product tankage at HollyFrontier's Tulsa, Cheyenne and El Dorado refineries having an aggregate storage capacity of approximately 8,200,000 barrels;
HEP has a long-term strategic relationship with HollyFrontier. The HEP growth plan is to continue to pursue purchases of logistic assets within the HollyFrontier asset base and to work with HollyFrontier on logistic asset acquisitions in conjunction with refinery acquisition strategies. Furthermore, HEP will continue to pursue third-party logistic asset acquisitions which are accretive to HEP unitholders and increase the diversity of HEP revenues.