Pipeline operator Holly Energy Partners, L.P. reported increased net income in the fourth quarter of 2020, reaching $51.3 million and 49 cents per basic and diluted limited partner unit.
The income compared to the $45.7 million and 43 cents a unit for the fourth quarter of 2019.
The Texas-based firm whose subsidiary is HollyFrontier has system that consists of crude oil trunk, gathering and connection pipelines located in West Texas, New Mexico, Kansas, Oklahoma, Utah and Wyoming that deliver crude oil to HollyFrontier’s Navajo, El Dorado and Woods Cross refineries as well as other unaffiliated refineries.
Distributable cash flow was $70.0 million for the quarter, an increase of $5.5 million, or 8.5%, compared to the fourth quarter of 2019. HEP declared a quarterly cash distribution of $0.35 on January 22, 2021.
The increase in net income attributable to HEP was mainly due to lower interest expense and higher equity in earnings of equity method investments, partially offset by lower volumes on our crude and product pipeline systems.
Revenues for the quarter were $127.5 million, a decrease of $4.2 million compared to the fourth quarter of 2019. The decrease was mainly attributable to lower volumes on our product pipelines servicing Delek US Holdings, Inc. and the firm’s crude pipelines systems in New Mexico and Texas, partially offset by higher revenues on our refinery units. Compared to the fourth quarter of 2019, its overall pipeline volumes decreased for the quarter by 11%.
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