Holly Energy Partners, L.P. (HEP) Misses Q2 EPS by 10c, Miss on Revenues

Holly Energy Partners, L.P. (NYSE: HEP) reported Q2 EPS of $0.36, $0.10 worse than the analyst estimate of $0.46. Revenue for the quarter came in at $109.14 million versus the consensus estimate of $113.22 million.

Second Quarter 2017 Revenue Highlights

• Revenues for the quarter were $109.1 million, an increase of $14.2 million compared to the second quarter of 2016. The increase is primarily attributable to the $12.9 million of revenue recorded for the Woods Cross processing units acquired in the fourth quarter of 2016. Overall pipeline volumes were up 2% compared to the three months ended June 30, 2016, largely due to an increase in intermediate pipeline shipments.
• Revenues from our refined product pipelines were $31.1 million, an increase of $0.3 million compared to the second quarter of 2016 and shipments averaged 206.0 mbpd compared to 199.9 mbpd for the second quarter of 2016. Revenues and volumes both increased primarily due to higher spot sales on our UNEV pipeline, offset by lower throughput on the Alon system.
• Revenues from our intermediate pipelines were $7.3 million, an increase of $0.5 million, on shipments averaging 151.7 mbpd compared to 135.2 mbpd for the second quarter of 2016. These volume increases were principally due to (a) 10.8 mbpd increase on HollyFrontier Corporation\'s (\"HFC\") Tulsa refinery interconnect lines and (b) 5.7 mbpd increase in HFC\'s Navajo refinery intermediate lines due to increased refinery crude rate after their first quarter 2017 turnaround. These volume increases did not all translate to increased revenue as there are minimum volume commitments on both sets of intermediate pipelines.
• Revenues from our crude pipelines were $16.9 million, a decrease of $1.7 million, on shipments averaging 269.4 mbpd compared to 278.4 mbpd for the second quarter of 2016. Revenues decreased mainly due to a decrease in deferred revenue recognized.
• Revenues from terminal, tankage and loading rack fees were $36.4 million, an increase of $1.8 million compared to the second quarter of 2016. Refined products terminalled in the facilities averaged 529.0 mbpd compared to 489.6 mbpd for the second quarter of 2016. The volume and revenue increases are mainly due to increased throughput at our Tulsa tankage and loading racks, Cheyenne loading racks, and UNEV Pipeline, LLC terminals.
• Revenues from refinery processing units were $17.5 million, an increase of $13.4 million on throughputs averaging 67.3 mbpd compared to 50.4 mbpd for the second quarter of 2016. This increase in revenue and volume is primarily due to the Woods Cross refinery processing units acquired in the fourth quarter of 2016.

For earnings history and earnings-related data on Holly Energy Partners, L.P. (HEP) click here.

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