Dallas-based Holly Energy Partners, L.P., the firm which owns part of a 135-mile crude oil pipeline from Cushing, Oklahoma to El Dorado, Kansas as well as a refinery in Tulsa announced its fourth quarter and yearly earnings showing growth in both.
Cash flow for the fourth quarter was $53.6 million, an increase of $11.7 million or 28 percent compared to the fourth quarter of 2014. The quarterly distribution also increased by 6.6 percent from $0.555 to $0.565 per unit. Net income for the quarter was $40.5 million compared to $28.7 million in the fourth quarter of 2014. The company said its revenue increase was due to higher volumes and annual tariff increases in addition to its newly-acquired refinery processing units, the El Dorado crude tanks acquired in the first quarter of 2015 and its New Mexico gathering system expansion.
Revenues for all of 2015 were $358.9 million or $26.3 million more than 2014. Overall pipeline volumes were up 21 percent compared to 2014 largely because of increased volumes from the New Mexico gathering system expansion. Holly’s biggest revenue came from its refined product pipelines and totaled $132.3 million, an increase of $11.1 million. The company also reported $127.6 million in revenues from terminal, tankage and loading rack fees, or $2.9 million more than for all of 2014.
Holly Energy owns and operates refineries in Tulsa; El Dorado, Kansas; Artesia, New Mexico; Cheyenne, Wyoming and Woods Cross, Utah. It also has a 50 percent interest in Osage Pipe Line Company, LLC which owns the pipeline from Cushing to El Dorado. Holly also owns 50 percent interest in Frontier Pipeline Company which owns a 289-mile crude oil pipeline from Casper, Wyoming to Frontier Station, Utah.
