HOLLY ENERGY PARTNERS LP, 10-K filed on 2/28/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Feb. 15, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-32225    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-0833098    
Entity Address, Address Line One 2828 N. Harwood, Suite 1300    
Entity Address, City or Town Dallas    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 75201-1507    
City Area Code 214    
Local Phone Number 871-3555    
Title of 12(b) Security Common Limited Partner Units    
Trading Symbol HEP    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Smaller Reporting Company false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1.1
Entity Common Stock, Shares Outstanding (in shares)   126,440,201  
Entity Registrant Name HOLLY ENERGY PARTNERS LP    
Entity Central Index Key 0001283140    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Auditor Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location Dallas, Texas
v3.22.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents (Cushing Connect VIEs: $2,147 and $8,881, respectively) $ 10,917 $ 14,381
Accounts receivable:    
Trade 16,344 12,745
Affiliates 63,459 56,154
Total accounts receivable 79,803 68,899
Prepaid and other current assets 12,397 11,033
Total current assets 103,117 94,313
Properties and equipment, net 1,388,888 1,329,028
Operating lease right-of-use assets 2,317 2,275
Net investment in leases (Cushing Connect VIEs: $101,871 and $100,042, respectively) 539,705 309,303
Intangible assets, net 59,300 73,307
Goodwill 342,762 223,650
Equity method investments 270,604 116,378
Deferred turnaround costs 24,154 2,632
Other assets 16,655 14,981
Total assets 2,747,502 2,165,867
Accounts payable:    
Trade (Cushing Connect VIEs: $431 and $8,285, respectively) 26,753 28,577
Affiliates 15,756 11,703
Total accounts payable 42,509 40,280
Accrued interest 17,992 11,258
Deferred revenue 12,087 14,585
Accrued property taxes 5,449 4,542
Current operating lease liabilities 968 620
Current finance lease liabilities 4,389 3,786
Other current liabilities 2,430 1,781
Total current liabilities 85,824 76,852
Long-term debt 1,556,334 1,333,049
Noncurrent operating lease liabilities 1,720 2,030
Noncurrent finance lease liabilities 62,513 64,649
Other long-term liabilities 29,111 12,527
Deferred revenue 24,613 29,662
Class B unit 60,507 56,549
Partners’ equity:    
Common unitholders (126,440,201 and 105,440,201 units issued and outstanding at December 31, 2022 and 2021, respectively) 857,126 443,017
Total partners’ equity 857,126 443,017
Noncontrolling interests 69,754 147,532
Total equity 926,880 590,549
Total liabilities and equity $ 2,747,502 $ 2,165,867
v3.22.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]    
Cash and cash equivalents $ 10,917 $ 14,381
Net investment in leases 539,705 309,303
Equity method investments 270,604 116,378
Trade payable $ 26,753 $ 28,577
Common units issued (in shares) 105,440,201 126,440,201
Common units outstanding (in shares) 105,440,201 126,440,201
VIEs    
Condensed Balance Sheet Statements, Captions [Line Items]    
Cash and cash equivalents $ 2,147 $ 8,881
Net investment in leases 101,871 100,042
Equity method investments 34,746 37,505
Trade payable $ 431 $ 8,285
v3.22.4
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues:        
Revenues:   $ 547,480 $ 494,495 $ 497,848
Operating costs and expenses:        
Operations (exclusive of depreciation and amortization)   210,623 170,524 147,692
Depreciation and amortization   99,092 93,800 99,578
General and administrative   17,003 12,637 9,989
Goodwill impairment $ 35,700 0 11,034 35,653
Total operating costs and expenses   326,718 287,995 292,912
Operating income   220,762 206,500 204,936
Other income (expense):        
Equity in earnings (losses) of equity method investments   (260) 12,432 6,647
Interest expense   (82,560) (53,818) (59,424)
Interest income   91,406 29,925 10,621
Gain on sales-type lease   0 24,677 33,834
Loss on early extinguishment of debt   0 0 (25,915)
Gain on sale of assets and other   668 6,179 8,691
Total other income (expense)   9,254 19,395 (25,546)
Income before income taxes   230,016 225,895 179,390
State income tax expense   (111) (32) (167)
Net income   229,905 225,863 179,223
Allocation of net income attributable to noncontrolling interests   (13,122) (10,917) (8,740)
Net income attributable to the partners   $ 216,783 $ 214,946 $ 170,483
Limited partners’ per unit interest in earnings— basic (in USD per share)   $ 1.77 $ 2.03 $ 1.61
Limited partners’ per unit interest in earnings— diluted (in USD per share)   $ 1.77 $ 2.03 $ 1.61
Weighted average limited partners’ units outstanding, basic (in shares)   122,298 105,440 105,440
Weighted average limited partners’ units outstanding, diluted (in shares)   122,298 105,440 105,440
Affiliates        
Revenues:        
Revenues:   $ 438,280 $ 390,849 $ 399,809
Third parties        
Revenues:        
Revenues:   $ 109,200 $ 103,646 $ 98,039
v3.22.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities      
Net income $ 229,905 $ 225,863 $ 179,223
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 99,092 93,800 99,578
Gain on sale of assets (209) (5,567) (1,015)
Gain on sales-type lease 0 (24,677) (33,834)
Goodwill impairment 0 11,034 35,653
Amortization of deferred charges 3,929 3,757 3,319
Equity-based compensation expense 1,845 2,557 2,193
Equity in losses of equity method investments 19,769 0 1,084
Loss on early extinguishment of debt 0 0 25,915
(Increase) decrease in operating assets:      
Accounts receivable—trade (594) 1,798 4,188
Accounts receivable—affiliates (7,305) (8,182) 1,744
Prepaid and other current assets (254) (255) (1,272)
Increase (decrease) in operating liabilities:      
Accounts payable—trade 847 912 2,208
Accounts payable—affiliates 4,054 (6,417) 1,383
Accrued interest 6,734 366 (2,314)
Deferred revenue (7,546) (1,144) (4,122)
Accrued property taxes (66) 550 193
Other current liabilities (141) (724) 200
Turnaround expenditures (24,953) (2,500) (132)
Other, net 5,942 2,924 1,435
Net cash provided by operating activities 331,049 294,095 315,627
Cash flows from investing activities      
Additions to properties and equipment (38,964) (89,995) (59,283)
Acquisition of Sinclair Transportation (328,955) 0 0
Purchase of interest in Cushing Connect Pipeline & Terminal 0 0 (2,438)
Investment in Osage Pipe Line Company, LLC (13,000) 0 0
Proceeds from sales of assets 279 7,365 1,089
Distributions in excess of equity in earnings of equity investments 10,623 4,165 882
Net cash used for investing activities (370,017) (78,465) (59,750)
Cash flows from financing activities      
Borrowings under credit agreement 510,000 480,500 258,500
Repayments of credit agreement borrowings (682,000) (554,000) (310,500)
Redemption of senior notes 0 0 (522,500)
Proceeds from issuance of senior notes 400,000 0 500,000
Contributions from general partner 0   988
Contribution from noncontrolling interests 0 23,194 23,899
Distributions to HEP unitholders (169,998) (149,432) (174,443)
Distributions to noncontrolling interests (9,676) (10,743) (9,770)
Payments on finance leases (3,743) (3,549) (3,602)
Purchase of units for incentive grants (1,727) (1,958) (698)
Units withheld for tax withholding obligations (636) (590) (334)
Deferred financing costs (6,546) (6,661) (8,714)
Other (170) 0 0
Net cash provided by (used for) financing activities 35,504 (223,239) (247,174)
Cash and cash equivalents      
Increase (decrease) for the year (3,464) (7,609) 8,703
Beginning of year 14,381 21,990 13,287
End of year 10,917 14,381 21,990
Supplemental disclosure of cash flow information:      
Cash paid during the period for interest $ 72,316 $ 49,990 $ 58,138
v3.22.4
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Thousands
Total
UNEV
Common Units
Common Units
UNEV
Noncontrolling Interests
Noncontrolling Interests
UNEV
Balance at beginning of period at Dec. 31, 2019 $ 487,758   $ 381,103   $ 106,655  
Increase (Decrease) in Partners' Equity [Roll Forward]            
Capital contribution - Cushing Connect 23,899       23,899  
Capital contribution - Cheyenne 988   988      
Distributions to HEP unitholders (174,443)   (174,443)      
Distributions to noncontrolling interests (9,770)       (9,770)  
Purchase of units for incentive grants (698)   (698)      
Amortization of restricted and performance units 2,193   2,193      
Class B unit accretion (3,458)   (3,458)      
Other (334)   (334)      
Net income 179,223   173,941   5,282  
Balance at end of period at Dec. 31, 2020 505,358   379,292   126,066  
Increase (Decrease) in Partners' Equity [Roll Forward]            
Capital contribution - Cushing Connect 23,194       23,194  
Distributions to HEP unitholders (149,432)   (149,432)      
Distributions to noncontrolling interests (10,743)       (10,743)  
Purchase of units for incentive grants (1,958)   (1,958)      
Amortization of restricted and performance units 2,557   2,557      
Class B unit accretion (3,699)   (3,699)      
Other (591)   (2,388)   1,797  
Net income 225,863   218,645   7,218  
Balance at end of period at Dec. 31, 2021 590,549   443,017   147,532  
Increase (Decrease) in Partners' Equity [Roll Forward]            
Issuance of common units 349,020   349,020      
Distributions to HEP unitholders (169,998)   (169,998)      
Distributions to noncontrolling interests (9,676)       (9,676)  
Purchase of units for incentive grants (1,727)   (1,727)      
Amortization of restricted and performance units 1,845   1,845      
Class B unit accretion (3,958) $ (58,275) (3,958) $ 19,735   $ (78,010)
Other (805)   (1,549)   744  
Net income 229,905   220,741   9,164  
Balance at end of period at Dec. 31, 2022 $ 926,880   $ 857,126   $ 69,754  
v3.22.4
Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Description of Business and Summary of Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies
Holly Energy Partners, L.P. (“HEP”), together with its consolidated subsidiaries, is a publicly held master limited partnership. We commenced operations on July 13, 2004, upon the completion of our initial public offering. On March 14, 2022 (the “Closing Date”), HollyFrontier Corporation (“HFC”) and HEP announced the establishment of HF Sinclair Corporation, a Delaware corporation (“HF Sinclair”), as the new parent holding company of HFC and HEP and their subsidiaries, and the completion of their respective acquisitions of Sinclair Oil Corporation (now known as Sinclair Oil LLC (“Sinclair Oil”)) and Sinclair Transportation Company LLC (“Sinclair Transportation”) from REH Company (formerly known as The Sinclair Companies, and referred to herein as “REH Company”). On the Closing Date, pursuant to that certain Business Combination Agreement, dated as of August 2, 2021 (as amended on March 14, 2022, the “Business Combination Agreement”), by and among HFC, HF Sinclair, Hippo Merger Sub, Inc., a wholly owned subsidiary of HF Sinclair (“Parent Merger Sub”), REH Company, and Hippo Holding LLC (now known as Sinclair Holding LLC), a wholly owned subsidiary of REH Company (the “Target Company”), HF Sinclair completed its acquisition of the Target Company by effecting (a) a holding company merger in accordance with Section 251(g) of the Delaware General Corporation Law whereby HFC merged with and into Parent Merger Sub, with HFC surviving such merger as a direct wholly owned subsidiary of HF Sinclair (the “HFC Merger”), and (b) immediately following the HFC Merger, a contribution whereby REH Company contributed all of the equity interests of the Target Company to HF Sinclair in exchange for shares of HF Sinclair, resulting in the Target Company becoming a direct wholly owned subsidiary of HF Sinclair (together with the HFC Merger, the “HFC Transactions”).

As of December 31, 2022, HF Sinclair and its subsidiaries owned a 47% limited partner interest and the non-economic general partner interest in HEP.

In connection with the closing of the HFC Transactions, HF Sinclair issued 60,230,036 shares of HF Sinclair common stock to REH Company, representing 27% of the pro forma equity of HF Sinclair with a value of approximately $2,149 million based on HFC’s fully diluted shares of common stock outstanding and closing stock price on March 11, 2022. References herein to HF Sinclair with respect to time periods prior to March 14, 2022 refer to HFC and its consolidated subsidiaries and do not include the Target Company, Sinclair Transportation or their respective consolidated subsidiaries. References herein to HF Sinclair with respect to time periods from and after March 14, 2022 refer to HF Sinclair and its consolidated subsidiaries, which includes the combined business operations of HFC, the Target Company, Sinclair Transportation and their respective consolidated subsidiaries.

Additionally, on the Closing Date, pursuant to that certain Contribution Agreement, dated August 2, 2021 (as amended on March 14, 2022, the “Contribution Agreement”) by and among REH Company, Sinclair Transportation and HEP, HEP acquired all of the outstanding equity interests of Sinclair Transportation from REH Company in exchange for 21 million newly issued common limited partner units of HEP (the “HEP Units”), representing 16.6% of the pro forma outstanding HEP Units with a value of approximately $349 million based on HEP’s fully diluted common limited partner units outstanding and closing unit price on March 11, 2022, and cash consideration equal to $329.0 million, inclusive of final working capital adjustments pursuant to the Contribution Agreement for an aggregate transaction value of $678.0 million (the “HEP Transaction” and together with the HFC Transactions, the “Sinclair Transactions”). Of the 21 million HEP Units, 5.29 million units are currently held in escrow to secure REH Company’s renewable identification numbers (“RINs”) credit obligations to HF Sinclair under Section 6.22 of the Business Combination Agreement. HF Sinclair, and not HEP, would be entitled to the HEP common units held in escrow in the event of REH Company’s breach of its RINs credit obligations under the Business Combination Agreement. The cash consideration was funded through a draw under HEP’s senior secured revolving credit facility. The HEP Transaction was conditioned on the closing of the HFC Transactions, which occurred immediately following the HEP Transaction.

References herein to HEP with respect to time periods prior to March 14, 2022, include HEP and its consolidated subsidiaries and do not include Sinclair Transportation and its consolidated subsidiaries (collectively, the “Acquired Sinclair Businesses”). References herein to HEP with respect to time periods from and after March 14, 2022 include the operations of the Acquired Sinclair Businesses.

In these consolidated financial statements, the words “we”, “our”, “ours” and “us” refer to HEP unless the context indicates otherwise.
Through our subsidiaries and joint ventures, we own and/or operate petroleum product and crude oil pipelines, terminal, tankage and loading rack facilities and refinery processing units that support the refining and marketing operations of HF Sinclair and other refineries in the Mid-Continent, Southwest and Northwest regions of the United States. Additionally, we own (a) a 50% interest in Osage Pipe Line Company, LLC (“Osage”), (b) a 50% interest in Cheyenne Pipeline LLC, (c) a 50% interest in Cushing Connect Pipeline & Terminal LLC, (d) a 25.06% interest in Saddle Butte Pipeline III, LLC and (e) a 49.995% interest in Pioneer Investments Corp. Following the HEP Transaction (see Note 2), we now own the remaining 25% interest in UNEV Pipeline, LLC and as a result, UNEV Pipeline, LLC is our wholly owned subsidiary.

On June 1, 2020, HFC announced plans to permanently cease petroleum refining operations at its Cheyenne refinery (the “Cheyenne Refinery”) and to convert certain assets at that refinery to renewable diesel production. HFC subsequently began winding down petroleum refining operations at the Cheyenne Refinery on August 3, 2020.

On February 8, 2021, HEP and HFC finalized and executed new agreements for HEP’s Cheyenne assets with the following terms, in each case effective January 1, 2021: (1) a ten-year lease with two five-year renewal option periods for HFC’s (and now HF Sinclair's) use of certain HEP tank and rack assets in the Cheyenne Refinery to facilitate renewable diesel production with an annual lease payment of approximately $5 million, (2) a five-year contango service fee arrangement that will utilize HEP tank assets inside the Cheyenne Refinery where HFC (and now HF Sinclair) will pay a base tariff to HEP for available crude oil storage and HFC (and now HF Sinclair) and HEP will split any profits generated on crude oil contango opportunities and (3) HFC paid a $10 million one-time cash payment from HFC to HEP for the termination of the existing minimum volume commitment.

On April 1, 2021, we sold our 156-mile, 6-inch refined product pipeline that connected HF Sinclair’s Navajo refinery to terminals in El Paso for gross proceeds of $7.0 million and recognized a gain on sale of $5.3 million.

We operate in two reportable segments, a Pipelines and Terminals segment and a Refinery Processing Unit segment. Disclosures around these segments are discussed in Note 16.

We generate revenues by charging tariffs for transporting petroleum products and crude oil through our pipelines, by charging fees for terminalling and storing refined products and other hydrocarbons, providing other services at our storage tanks and terminals and by charging fees for processing hydrocarbon feedstocks through our refinery processing units. We do not take ownership of products that we transport, terminal, store or process, and therefore, we are not exposed directly to changes in commodity prices.

Principles of Consolidation
The consolidated financial statements include our accounts and those of subsidiaries and joint ventures that we control through an ownership interest greater than 50% or through a controlling financial interest with respect to variable interest entities. All significant intercompany transactions and balances have been eliminated. Certain prior period balances have been reclassified for consistency with current year presentation.

Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents
For purposes of the statements of cash flows, we consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The carrying amounts reported on the balance sheets approximate fair value due to the short-term maturity of these instruments.
Accounts Receivable
The majority of the accounts receivable are due from affiliates of HF Sinclair or independent companies in the petroleum industry. Credit is extended based on evaluation of the customer's financial condition, and in certain circumstances, collateral such as letters of credit or guarantees, may be required. We reserve for doubtful accounts based on our historical loss experience as well as expected credit losses from current economic conditions and management’s expectations of future economic conditions. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible and historically have been minimal.

Properties and Equipment
Properties and equipment are stated at cost. Properties and equipment acquired from HFC while under common control of HFC are stated at HFC's historical basis. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 25 years for terminal facilities and tankage, 25 to 30 years for pipelines, 25 years for refinery processing units and 3 to 10 years for corporate and other assets. We depreciate assets acquired under capital leases over the lesser of the lease term or the economic life of the assets. Maintenance, repairs and minor replacements are expensed as incurred. Costs of replacements constituting improvements are capitalized.

Intangible Assets
Intangible assets include transportation agreements and acquired customer relationship intangible assets. Intangible assets are stated at acquisition date fair value and are being amortized over their useful lives using the straight-line method.

Goodwill and Long-Lived Assets
Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the carrying amount of the reporting unit is greater than its fair value, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the related fair value.

Indicators of Goodwill and Long-Lived Asset Impairment
Our annual goodwill impairment testing for 2022 and 2021 was performed on a qualitative basis during the third quarters of 2022 and 2021. We assessed qualitative factors such as macroeconomic conditions, industry considerations, cost factors and reporting unit financial performance and determined it was not more likely than not that the fair value of our reporting units were less than the respective carrying value. Therefore, in accordance with GAAP, further testing was not required.

During the first quarter of 2021, changes in our agreements with HFC related to our Cheyenne assets resulted in an increase in the carrying amount of our Cheyenne reporting unit due to sales-type lease accounting, which led us to determine indicators of potential goodwill impairment for our Cheyenne reporting unit were present.

The estimated fair value of our Cheyenne reporting unit was derived using a combination of income and market approaches. The income approach reflects expected future cash flows based on anticipated gross margins, operating costs, and capital expenditures. The market approaches include both the guideline public company and guideline transaction methods. Both methods utilize pricing multiples derived from historical market transactions of other like-kind assets. These fair value measurements involve significant unobservable inputs (Level 3 inputs). See Note 6 for further discussion of Level 3 inputs.

Our interim impairment testing of our Cheyenne reporting unit goodwill identified an impairment charge of $11.0 million, which was recorded in the three months ended March 31, 2021.

Our annual impairment testing for 2020 was performed on a quantitative basis during the third quarter of 2020. The estimated fair value of our reporting units were derived using a combination of both income and market approaches as described above. Our annual testing of goodwill in 2020 identified an impairment charge of $35.7 million, which was recorded in the third quarter of 2020, related to our Cheyenne reporting unit.
The following is a summary of our goodwill balances:

December 31,
2022		December 31,
2021
 (In thousands)
Goodwill$389,448 $270,336 
Accumulated impairment losses(46,686)(46,686)
$342,762 $223,650 

We evaluate long-lived assets, including finite-lived intangible assets, for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset’s carrying value exceeds its fair value.

Investment in Equity Method Investments
We account for our interests in noncontrolling joint venture interests using the equity method of accounting, whereby we record our pro-rata share of earnings of these companies, and contributions to and distributions from the joint ventures as adjustments to our investment balances. The difference between the cost of an investment and our proportionate share of the underlying equity in net assets recorded on the investee's books is allocated to the various assets and liabilities of the equity method investment.

The following table summarizes our recorded investments compared to our share of underlying equity for each investee. We are amortizing the differences as adjustments to our pro-rata share of earnings over the useful lives of the underlying assets of these joint ventures.

Balance at December 31, 2022
Underlying EquityRecorded Investment BalanceDifference
(In thousands)
Equity Method Investments
Osage Pipe Line Company, LLC$2,901 $29,773 $(26,872)
Cheyenne Pipeline LLC27,655 40,019 (12,364)
Cushing Connect Terminal Holdings LLC49,915 34,746 15,169 
Pioneer Investments Corp.23,835 133,182 (109,347)
Saddle Butte Pipeline III, LLC67,349 32,884 34,465 
Total$171,655 $270,604 $(98,949)

Balance at December 31, 2021
Underlying EquityRecorded Investment BalanceDifference
(In thousands)
Equity Method Investments
Osage Pipe Line Company, LLC$9,996 $37,782 $(27,786)
Cheyenne Pipeline LLC28,557 41,091 (12,534)
Cushing Connect Terminal Holdings LLC52,203 37,505 14,698 
Total$90,756 $116,378 $(25,622)
Asset Retirement Obligations
We record legal obligations associated with the retirement of certain of our long-lived assets that result from the acquisition, construction, development and/or the normal operation of our long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded in the period in which the liability is incurred and when a reasonable estimate of the fair value of the liability can be made. For our pipeline assets, the right-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon cessation of the pipeline service. Additionally, management is unable to predict when, or if, our pipelines and related facilities would become obsolete and require decommissioning. Accordingly, we have recorded no liability or corresponding asset related to an asset retirement obligation for the majority of our pipelines as both the amounts and timing of such potential future costs are indeterminable. For our remaining assets, at December 31, 2022 and 2021, we have asset retirement obligations of $10.5 million and $8.7 million, respectively, that are recorded under “Other long-term liabilities” in our consolidated balance sheets.

Class B Unit
Under the terms of the transaction to acquire HFC's 75% interest in UNEV, we issued to a subsidiary of HFC (now HF Sinclair) a Class B unit comprising a noncontrolling equity interest in a wholly owned subsidiary subject to redemption to the extent that HFC (now HF Sinclair) is entitled to a 50% interest in 75% of annual UNEV earnings before interest, income taxes, depreciation, and amortization above $40 million beginning July 1, 2015, and ending in June 2032, subject to certain limitations. However, to the extent earnings thresholds are not achieved, no redemption payments are required. No redemption payments have been required to date.

Pursuant to the terms of the transaction agreements, the Class B unit increases by the amount of each foregone incentive distribution and by a 7% factor compounded annually on the outstanding unredeemed balance through its expiration date. At our option, we may redeem, in whole or in part, the Class B unit at the current unredeemed value based on the calculation described. The Class B unit had a carrying value of $60.5 million at December 31, 2022, and $56.5 million at December 31, 2021.

Revenue Recognition
Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. Prior to the adoption of the new lease standard (see below), we bifurcated the consideration received between lease and service revenue. The new lease standard allows the election of a practical expedient whereby a lessor does not have to separate non-lease (service) components from lease components under certain conditions. The majority of our contracts meet these conditions, and we have made this election for those contracts. Under this practical expedient, we treat the combined components as a single performance obligation in accordance with Accounting Standards Codification (“ASC”) 606, which largely codified ASU 2014-09, if the non-lease (service) component is the dominant component. If the lease component is the dominant component, we treat the combined components as a lease in accordance with ASC 842, which largely codified ASU 2016-02.
Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter.
The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue.
In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights projected to be exercised by the customer. During the years ended December 31, 2022, 2021 and 2020, we recognized $21.1 million, $17.5 million and $20.8 million, respectively, of these deficiency payments in revenue, of which $4.2 million, $0.5 million and $0.7 million, respectively,
related to deficiency payments billed in prior periods. There was no deferred revenue reflected in our consolidated balance sheet related to shortfalls as of December 31, 2022.
We have other cost reimbursement provisions in our throughput/storage agreements providing that customers (including HF Sinclair) reimburse us for certain costs. Such reimbursements are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement.

Taxes billed and collected from our pipeline and terminal customers are recorded on a net basis with no effect on net income.

Leases
We adopted ASC 842 effective January 1, 2019, and elected to adopt using the modified retrospective transition method and practical expedients, both of which are provided as options by the standard and further defined below.

Lessee Accounting - At inception, we determine if an arrangement is or contains a lease. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our payment obligation under the leasing arrangement. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable.

Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties and equipment, current finance lease liabilities and noncurrent finance lease liabilities on our consolidated balance sheet.

When renewal options are defined in a lease, our lease term includes an option to extend the lease when it is reasonably certain we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet, and lease expense is accounted for on a straight-line basis. In addition, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations.

Lessor Accounting - Customer contracts that contain leases are generally classified as either operating leases, direct finance leases or sales-type leases. We consider inputs such as the lease term, fair value of the underlying asset and residual value of the underlying assets when assessing the classification.

Environmental Costs
Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information.

Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HF Sinclair, HF Sinclair, has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HF Sinclair, occurring or existing prior to the date of such transfers. We have an environmental agreement with Delek with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Delek in 2005, under which Delek will indemnify us subject to certain monetary and time limitations. Environmental costs recoverable through insurance, indemnification agreements or other sources are included in other assets to the extent such recoveries are considered probable.

Income Tax
We are subject to the Texas margin tax that is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax.
We are organized as a pass-through entity for U.S. federal income tax purposes. As a result, our partners are responsible for U.S. federal income taxes based on their respective share of taxable income.
Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the partnership agreement.

Accounting Pronouncement Adopted During the Periods Presented

Credit Losses Measurement
In June 2016, ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” was issued requiring measurement of all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This standard was effective January 1, 2020. Adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.

Accounting Pronouncements - Not Yet Adopted

In October 2021, Accounting Standards Update 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” was issued requiring that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers. This standard is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. We will evaluate the impact of this standard, if applicable.
v3.22.4
Sinclair Acquisition
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Sinclair Acquisition Sinclair Acquisition
HEP Transaction

On March 14, 2022, pursuant to the Contribution Agreement, HEP acquired all of the outstanding equity interests of Sinclair Transportation in exchange for 21 million newly issued HEP Units, representing 16.6% of the pro forma outstanding HEP Units with a value of approximately $349 million based on HEP’s fully diluted common limited partner units outstanding and closing unit price on March 11, 2022, and cash consideration equal to $329 million, inclusive of final working capital adjustments pursuant to the Contribution Agreement for an aggregate transaction value of $678 million. On the same date and immediately following the consummation of the HEP Transaction, pursuant to the Business Combination Agreement, REH Company contributed all of the equity interests of the Target Company to HF Sinclair in exchange for 60,230,036 shares of common stock in HF Sinclair, representing 27% of the pro forma equity of HF Sinclair with a value of approximately $2,149 million based on HF Sinclair’s fully diluted shares of common stock outstanding and closing stock price on March 11, 2022.

On August 2, 2021, in connection with the Contribution Agreement, HEP, Holly Logistics Services, L.L.C., the ultimate general partner of HEP (“HLS”) and Navajo Pipeline Co., L.P., the sole member of HLS (the “Sole Member”), entered into a unitholders agreement (the “Unitholders Agreement”) by and among HEP, HLS, the Sole Member, REH Company and the stockholders of REH Company (each a “Unitholder” and collectively, the “Unitholders,” and along with REH Company and each of their permitted transferees, the “REH Parties”), which became effective on the Closing Date.

Pursuant to the Unitholders Agreement, the REH Parties have the right to nominate, and have nominated, one person to the board of directors of HLS until such time that (x) the REH Parties beneficially own less than 10.5 million HEP Units or (y) the HEP Units beneficially owned by the REH Parties constitute less than 5% of all outstanding HEP Units. The Unitholders Agreement also subjects 15.75 million of the HEP Units issued to the REH Parties (the “Restricted Units”) to a “lock-up” period commencing on the Closing Date, during which the REH Parties are prohibited from selling the Restricted Units, except for certain permitted transfers. One-third of such Restricted Units were released from such restrictions on the date that was six months after the closing, one-third of the Restricted Units will be released from such restrictions on the first anniversary of the Closing Date, and the remainder will be released from such restrictions on the date that is 15 months from the Closing Date.

Under the terms of the Contribution Agreement, HEP acquired Sinclair Transportation, which together with its subsidiaries, owned REH Company’s integrated crude and refined products pipelines and terminal assets, including approximately 1,200 miles of integrated crude and refined product pipelines supporting the REH Company refineries and other third-party refineries, eight product terminals and two crude terminals with approximately 4.5 million barrels of operated storage. In addition, HEP acquired Sinclair Transportation’s interests in three pipeline joint ventures for crude gathering and product offtake including: Saddle Butte Pipeline III, LLC (25.06% non-operated interest); Pioneer Pipeline (49.995% non-operated interest); and UNEV Pipeline (the 25% non-operated interest not already owned by HEP, resulting in UNEV Pipeline, LLC becoming a wholly owned subsidiary of HEP).

The HEP Transaction was accounted for as a business combination using the acquisition method of accounting, with the assets acquired and liabilities assumed at their respective acquisition date fair values at the Closing Date, with the excess consideration recorded as goodwill. The preliminary purchase price allocation resulted in the recognition of $119.1 million in goodwill.

The following tables present the purchase consideration and preliminary purchase price allocation to the assets acquired and liabilities assumed on March 14, 2022:

Purchase Consideration (in thousands except for per share amounts)
HEP common units issued 21,000 
Closing price per unit of HEP common units(1)
$16.62 
Purchase consideration paid in HEP common units349,020 
Cash consideration paid by HEP325,000 
Working capital adjustment payment by HEP(2)
3,955 
Total cash consideration328,955 
Total purchase consideration$677,975 
(1) Based on the HEP closing unit price on March 11, 2022.
(2) Net of cash acquired
(In thousands)
Assets Acquired
Accounts receivable3,005 
Prepaid and other current assets59 
Properties and equipment340,682 
Operating lease right-of-use assets105 
Other assets3,500 
Goodwill119,112 
Equity method investments229,891 
Total assets acquired696,354 
Liabilities Assumed
Accounts payable1,528 
Accrued property taxes973 
Other current liabilities789 
Operating lease liabilities33 
Noncurrent operating lease liabilities72 
Other long-term liabilities14,984 
Total liabilities assumed18,379 
Net assets acquired677,975 

The fair value of properties, plants and equipment was based on the combination of the cost and market approaches. Key assumptions in the cost approach include determining the replacement cost by evaluating recently published data and adjusting replacement cost for physical deterioration, functional and economic obsolescence. We used the market approach to measure the value of certain assets through an analysis of recent sales or offerings of comparable properties.

The fair value of the equity method investments were based on a combination of valuation methods including discounted cash flows and the guideline public company method.

The fair values discussed above were based on significant inputs that are not observable in the market and, therefore, represent Level 3 measurements. See Note 6.

The fair values of all other current receivable and payables were equivalent to their carrying values due to their short-term nature.

These fair value estimates are preliminary and, therefore, the final fair values of assets acquired and liabilities assumed and the resulting effect on our financial position may change once all needed information has become available, and we finalize our valuations.

Our consolidated financial and operating results for the year ended December 31, 2022 reflected the Sinclair Transportation operations beginning March 14, 2022. Our results of operations included revenue, interest income from sales-type leases and net income of $28.3 million, $52.0 million and $58.1 million, respectively, for the period from March 14, 2022 through December 31, 2022, related to these operations.

For the year ended December 31, 2022, we incurred $2.4 million in incremental direct acquisition and integration costs that principally relate to legal, advisory and other professional fees and are presented as general and administrative expenses in our statements of operations.

The following unaudited pro forma combined condensed financial data for the years ended December 31, 2022 and 2021 was derived from our historical financial statements giving effect to the HEP Transaction as if it had occurred on January 1, 2021. The below information reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including the depreciation of Sinclair Transportation’s fair-valued properties, plants and equipment.
Additionally, pro forma earnings include certain non-recurring charges, the substantial majority of which consist of transaction costs related to financial advisors, legal advisors, financial advisory and professional accounting services.

The pro forma results of operations do not include any contract adjustments to tariffs made after closing, cost savings or other synergies that may result from the HEP Transaction. The pro forma combined condensed financial data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the HEP Transaction taken place on January 1, 2021 and is not intended to be a projection of future results.

Years Ended December 31,
20222021
Sales and other revenues562,242 565,115 
Net income attributable to the partners218,006 240,509 

Contemporaneous with the closing of the Sinclair Transactions, HEP and HFC amended certain intercompany agreements, including the master throughput agreement, to include within the scope of such agreements certain of the assets acquired by HEP pursuant to the Contribution Agreement.
v3.22.4
Investment in Joint Venture
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Joint Venture Investment in Joint Venture
On October 2, 2019, HEP Cushing LLC (“HEP Cushing”), a wholly owned subsidiary of HEP, and Plains Marketing, L.P. (“PMLP”), a wholly owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC (the “Cushing Connect Joint Venture”), for (i) the development and construction of a new 160,000 barrel per day common carrier crude oil pipeline (the “Cushing Connect Pipeline”) that connected the Cushing, Oklahoma crude oil hub to the Tulsa, Oklahoma refining complex owned by a subsidiary of HF Sinclair, and (ii) the ownership and operation of 1.5 million barrels of crude oil storage in Cushing, Oklahoma (the “Cushing Connect JV Terminal”). The Cushing Connect JV Terminal went in service during the second quarter of 2020, and the Cushing Connect Pipeline was placed into service during the third quarter of 2021. Long-term commercial agreements were entered into to support the Cushing Connect Joint Venture assets.

The Cushing Connect Joint Venture contracted with an affiliate of HEP to manage the construction and operation of the Cushing Connect Pipeline and with an affiliate of Plains to manage the operation of the Cushing Connect JV Terminal. The total Cushing Connect Joint Venture investment was generally shared equally among the partners. However, we were solely responsible for any Cushing Connect Pipeline construction costs that exceeded the budget by more than 10%. HEP's share of the cost of the Cushing Connect JV Terminal contributed by Plains and Cushing Connect Pipeline construction costs was approximately $74 million, including approximately $5 million of Cushing Connect Pipeline construction costs that exceeded the budget by more than 10% borne solely by HEP.

The Cushing Connect Joint Venture legal entities are variable interest entities (“VIEs”) as defined under GAAP. A VIE is a legal entity if it has any one of the following characteristics: (i) the entity does not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support; (ii) the at risk equity holders, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive voting rights. The Cushing Connect Joint Venture legal entities did not have sufficient equity at risk to finance their activities without additional financial support. Since HEP constructed and is operating the Cushing Connect Pipeline, HEP has more ability to direct the activities that most significantly impact the financial performance of the Cushing Connect Joint Venture and Cushing Connect Pipeline legal entities. Therefore, HEP consolidates those legal entities. We do not have the ability to direct the activities that most significantly impact the Cushing Connect JV Terminal legal entity, and therefore, we account for our interest in the Cushing Connect JV Terminal legal entity using the equity method of accounting. HEP's maximum exposure to loss as a result of its involvement with the Cushing Connect JV Terminal legal entity is not expected to be material due to the long-term terminalling agreements in place to support its operations.

With the exception of the assets of HEP Cushing, creditors of the Cushing Connect Joint Venture legal entities have no recourse to our assets. Any recourse to HEP Cushing would be limited to the extent of HEP Cushing's assets, which other than its investment in Cushing Connect Joint Venture, are not significant. Furthermore, our creditors have no recourse to the assets of the Cushing Connect Joint Venture legal entities.
v3.22.4
Revenues
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. See Note 1 for further discussion of revenue recognition.
Disaggregated revenues are as follows:
Years Ended December 31,
202220212020
(In thousands)
Pipelines$285,451 $263,110 $265,834 
Terminals, tanks and loading racks167,812 142,267 151,692 
Refinery processing units94,217 89,118 80,322 
$547,480 $494,495 $497,848 
Affiliates and third parties revenues on our consolidated statements of income were composed of the following lease and service revenues:
Years Ended December 31,
202220212020
(In thousands)
Lease revenues$333,627 $336,062 $360,598 
Service revenues213,853 158,433 137,250 
$547,480 $494,495 $497,848 
A contract liability exists when an entity is obligated to perform future services to a customer for which the entity has received consideration. Since HEP may be required to perform future services for deficiency payments received, the deferred revenues on our balance sheets were considered contract liabilities. A contract asset exists when an entity has a right to consideration in exchange for goods or services transferred to a customer. Our consolidated balance sheets included the contract assets and liabilities in the table below.
December 31,
2022		December 31,
2021
 (In thousands)
Contract assets$6,672 $6,637 
Contract liabilities$— $(4,185)

The contract assets and liabilities include both lease and service components. During the years ended December 31, 2022 and 2021, we recognized $4.2 million and $0.5 million, respectively, of revenue that was previously included in contract liability as of December 31, 2021 and 2020, respectively. During the twelve months ended December 31, 2022 and 2021, we also recognized $0.2 million and $0.3 million, respectively, of revenue included in contract assets at December 31, 2022 and 2021, respectively.
As of December 31, 2022, we expect to recognize $1.5 billion in revenue related to our unfulfilled performance obligations under the terms of our long-term throughput agreements and operating leases expiring in 2023 through 2037. These agreements provide for changes in the minimum revenue guarantees annually for increases or decreases in the Producer Price Index (“PPI”) or Federal Energy Regulatory Commission (“FERC”) index, with certain contracts having provisions that limit the level of the rate increases or decreases. We expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues):
Years Ending December 31,(In millions)
2023301 
2024265 
2025184 
2026169 
2027136 
Thereafter401 
Total$1,456 
Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 10 to 30 days of the date of invoice.
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
Lessee Accounting
As a lessee, we lease land, buildings, pipelines, transportation and other equipment to support our operations. These leases can be categorized into operating and finance leases.
Our leases have remaining terms of less than 1 year to 22 years, some of which include options to extend the leases for up to 10 years.

Finance Lease Obligations
We have finance lease obligations related to vehicle leases with initial terms of 33 to 48 months. The total cost of assets under finance leases was $7.6 million and $6.0 million as of December 31, 2022 and December 31, 2021, respectively, with accumulated depreciation of $4.0 million and $3.6 million as of December 31, 2022 and December 31, 2021, respectively. We include depreciation of finance leases in depreciation and amortization in our consolidated statements of income.

In addition, we have a finance lease obligation related to a pipeline lease with an initial term of 10 years with one remaining subsequent renewal option for an additional 10 years.
Supplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate):
December 31, 2022December 31, 2021
Operating leases:
   Operating lease right-of-use assets, net$2,317 $2,275 
   Current operating lease liabilities 968 620 
   Noncurrent operating lease liabilities1,720 2,030 
      Total operating lease liabilities$2,688 $2,650 
Finance leases:
   Properties and equipment$7,649 $6,031 
   Accumulated amortization(3,979)(3,632)
      Properties and equipment, net$3,670 $2,399 
   Current finance lease liabilities 4,389 3,786 
   Noncurrent finance lease liabilities62,513 64,649 
      Total finance lease liabilities$66,902 $68,435 
Weighted average remaining lease term (in years)
   Operating leases4.65.8
   Finance leases13.915.0
Weighted average discount rate
   Operating leases4.6%4.8%
   Finance leases5.7%5.6%

Supplemental cash flow and other information related to leases were as follows:
Year Ended
December 31, 2022		Year Ended December 31, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows on operating leases$1,062 $1,142 
Operating cash flows on finance leases$4,255 $4,104 
Financing cash flows on finance leases$3,743 $3,549 
Maturities of lease liabilities were as follows:
December 31, 2022
OperatingFinance
(In thousands)
2023$1,028 $7,925 
2024608 7,504 
2025491 7,044 
2026326 7,165 
2027205 6,448 
2027 and thereafter318 61,038 
   Total lease payments2,976 97,124 
Less: Imputed interest(288)(30,222)
   Total lease obligations2,688 66,902 
Less: Current lease liabilities(968)(4,389)
   Long-term lease liabilities$1,720 $62,513 

The components of lease expense were as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease costs$1,048 $1,077 
Finance lease costs
 Amortization of assets877 803 
 Interest on lease liabilities 3,797 3,953 
Variable lease cost471 215 
Total net lease cost$6,193 $6,048 

Lessor Accounting
As discussed in Note 1, the majority of our contracts with customers meet the definition of a lease. See Note 1 for further discussion of the impact of adoption of this standard on our activities as a lessor.

Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and we believe these assets will continue to have value when the current agreements expire due to our risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. HF Sinclair, generally has the option to purchase assets located within HF Sinclair, refinery boundaries, including refinery tankage, truck racks and refinery processing units, at fair market value when the related agreements expire.

During the year ended December 31, 2022, we entered into new agreements, and amended other agreements, with HF Sinclair, related to our newly acquired Sinclair Transportation assets. Certain of these agreements met the criteria of sales-type leases. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Because we recorded these assets at fair values under purchase price accounting, there was no gain or loss on these sales-type leases during the year ended December 31, 2022. The balance sheet impacts were composed of the following:
(In thousands)
Net investment in leases$234,736 
Properties and equipment, net(234,736)
Gain on sales-type leases$— 
During the year ended December 31, 2021, we entered into new agreements, and amended other agreements, with HF Sinclair, related to our Cheyenne assets, Tulsa West lube racks, various crude tanks and new Navajo tanks, and the agreements we previously entered into relating to the Cushing Connect Pipeline became effective. These agreements met the criteria of sales-type leases. We recognized a gain on sales-type leases during the year ended December 31, 2021 composed of the following:
(In thousands)
Net investment in leases148,419 
Properties and equipment, net(130,301)
Deferred Revenue6,559 
Gain on sales-type leases$24,677 

These sales-type lease transactions, including the related gains, were non-cash transactions.

Lease income recognized was as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease revenues$310,968 $326,902 
Direct financing lease interest income2,115 2,089 
Gain on sales-type leases— 24,677 
Sales-type lease interest income89,285 27,836 
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 22,659 9,160 
For our sales-type leases, we included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of our minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. We recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues.

Annual minimum undiscounted lease payment receipts under our leases were as follows as of December 31, 2022:
OperatingFinanceSales-type
Years Ending December 31,(In thousands)
2023$271,439 $2,243 $103,876 
2024241,746 2,226 100,580 
2025165,560 2,244 97,153 
2026151,015 2,262 97,153 
2027118,472 2,280 97,153 
Thereafter346,975 34,940 820,234 
Total lease payment receipts$1,295,207 46,195 1,316,149 
Less: Imputed interest(29,931)(1,189,628)
16,264 126,521 
Unguaranteed residual assets at end of leases— 402,934 
Net investment in leases$16,264 $529,455 
Net investments in leases recorded on our balance sheet were composed of the following:
December 31, 2022December 31, 2021
Sales-type LeasesDirect Financing LeasesSales-type LeasesDirect Financing Leases
(In thousands)(In thousands)
Lease receivables (1)
$418,989 $16,264 $207,768 $16,371 
Unguaranteed residual assets110,466 — 90,097 — 
Net investment in leases$529,455 $16,264 $297,865 $16,371 

(1)    Current portion of lease receivables included in prepaid and other current assets on the balance sheet.
Leases Leases
Lessee Accounting
As a lessee, we lease land, buildings, pipelines, transportation and other equipment to support our operations. These leases can be categorized into operating and finance leases.
Our leases have remaining terms of less than 1 year to 22 years, some of which include options to extend the leases for up to 10 years.

Finance Lease Obligations
We have finance lease obligations related to vehicle leases with initial terms of 33 to 48 months. The total cost of assets under finance leases was $7.6 million and $6.0 million as of December 31, 2022 and December 31, 2021, respectively, with accumulated depreciation of $4.0 million and $3.6 million as of December 31, 2022 and December 31, 2021, respectively. We include depreciation of finance leases in depreciation and amortization in our consolidated statements of income.

In addition, we have a finance lease obligation related to a pipeline lease with an initial term of 10 years with one remaining subsequent renewal option for an additional 10 years.
Supplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate):
December 31, 2022December 31, 2021
Operating leases:
   Operating lease right-of-use assets, net$2,317 $2,275 
   Current operating lease liabilities 968 620 
   Noncurrent operating lease liabilities1,720 2,030 
      Total operating lease liabilities$2,688 $2,650 
Finance leases:
   Properties and equipment$7,649 $6,031 
   Accumulated amortization(3,979)(3,632)
      Properties and equipment, net$3,670 $2,399 
   Current finance lease liabilities 4,389 3,786 
   Noncurrent finance lease liabilities62,513 64,649 
      Total finance lease liabilities$66,902 $68,435 
Weighted average remaining lease term (in years)
   Operating leases4.65.8
   Finance leases13.915.0
Weighted average discount rate
   Operating leases4.6%4.8%
   Finance leases5.7%5.6%

Supplemental cash flow and other information related to leases were as follows:
Year Ended
December 31, 2022		Year Ended December 31, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows on operating leases$1,062 $1,142 
Operating cash flows on finance leases$4,255 $4,104 
Financing cash flows on finance leases$3,743 $3,549 
Maturities of lease liabilities were as follows:
December 31, 2022
OperatingFinance
(In thousands)
2023$1,028 $7,925 
2024608 7,504 
2025491 7,044 
2026326 7,165 
2027205 6,448 
2027 and thereafter318 61,038 
   Total lease payments2,976 97,124 
Less: Imputed interest(288)(30,222)
   Total lease obligations2,688 66,902 
Less: Current lease liabilities(968)(4,389)
   Long-term lease liabilities$1,720 $62,513 

The components of lease expense were as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease costs$1,048 $1,077 
Finance lease costs
 Amortization of assets877 803 
 Interest on lease liabilities 3,797 3,953 
Variable lease cost471 215 
Total net lease cost$6,193 $6,048 

Lessor Accounting
As discussed in Note 1, the majority of our contracts with customers meet the definition of a lease. See Note 1 for further discussion of the impact of adoption of this standard on our activities as a lessor.

Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and we believe these assets will continue to have value when the current agreements expire due to our risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. HF Sinclair, generally has the option to purchase assets located within HF Sinclair, refinery boundaries, including refinery tankage, truck racks and refinery processing units, at fair market value when the related agreements expire.

During the year ended December 31, 2022, we entered into new agreements, and amended other agreements, with HF Sinclair, related to our newly acquired Sinclair Transportation assets. Certain of these agreements met the criteria of sales-type leases. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Because we recorded these assets at fair values under purchase price accounting, there was no gain or loss on these sales-type leases during the year ended December 31, 2022. The balance sheet impacts were composed of the following:
(In thousands)
Net investment in leases$234,736 
Properties and equipment, net(234,736)
Gain on sales-type leases$— 
During the year ended December 31, 2021, we entered into new agreements, and amended other agreements, with HF Sinclair, related to our Cheyenne assets, Tulsa West lube racks, various crude tanks and new Navajo tanks, and the agreements we previously entered into relating to the Cushing Connect Pipeline became effective. These agreements met the criteria of sales-type leases. We recognized a gain on sales-type leases during the year ended December 31, 2021 composed of the following:
(In thousands)
Net investment in leases148,419 
Properties and equipment, net(130,301)
Deferred Revenue6,559 
Gain on sales-type leases$24,677 

These sales-type lease transactions, including the related gains, were non-cash transactions.

Lease income recognized was as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease revenues$310,968 $326,902 
Direct financing lease interest income2,115 2,089 
Gain on sales-type leases— 24,677 
Sales-type lease interest income89,285 27,836 
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 22,659 9,160 
For our sales-type leases, we included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of our minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. We recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues.

Annual minimum undiscounted lease payment receipts under our leases were as follows as of December 31, 2022:
OperatingFinanceSales-type
Years Ending December 31,(In thousands)
2023$271,439 $2,243 $103,876 
2024241,746 2,226 100,580 
2025165,560 2,244 97,153 
2026151,015 2,262 97,153 
2027118,472 2,280 97,153 
Thereafter346,975 34,940 820,234 
Total lease payment receipts$1,295,207 46,195 1,316,149 
Less: Imputed interest(29,931)(1,189,628)
16,264 126,521 
Unguaranteed residual assets at end of leases— 402,934 
Net investment in leases$16,264 $529,455 
Net investments in leases recorded on our balance sheet were composed of the following:
December 31, 2022December 31, 2021
Sales-type LeasesDirect Financing LeasesSales-type LeasesDirect Financing Leases
(In thousands)(In thousands)
Lease receivables (1)
$418,989 $16,264 $207,768 $16,371 
Unguaranteed residual assets110,466 — 90,097 — 
Net investment in leases$529,455 $16,264 $297,865 $16,371 

(1)    Current portion of lease receivables included in prepaid and other current assets on the balance sheet.
Leases Leases
Lessee Accounting
As a lessee, we lease land, buildings, pipelines, transportation and other equipment to support our operations. These leases can be categorized into operating and finance leases.
Our leases have remaining terms of less than 1 year to 22 years, some of which include options to extend the leases for up to 10 years.

Finance Lease Obligations
We have finance lease obligations related to vehicle leases with initial terms of 33 to 48 months. The total cost of assets under finance leases was $7.6 million and $6.0 million as of December 31, 2022 and December 31, 2021, respectively, with accumulated depreciation of $4.0 million and $3.6 million as of December 31, 2022 and December 31, 2021, respectively. We include depreciation of finance leases in depreciation and amortization in our consolidated statements of income.

In addition, we have a finance lease obligation related to a pipeline lease with an initial term of 10 years with one remaining subsequent renewal option for an additional 10 years.
Supplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate):
December 31, 2022December 31, 2021
Operating leases:
   Operating lease right-of-use assets, net$2,317 $2,275 
   Current operating lease liabilities 968 620 
   Noncurrent operating lease liabilities1,720 2,030 
      Total operating lease liabilities$2,688 $2,650 
Finance leases:
   Properties and equipment$7,649 $6,031 
   Accumulated amortization(3,979)(3,632)
      Properties and equipment, net$3,670 $2,399 
   Current finance lease liabilities 4,389 3,786 
   Noncurrent finance lease liabilities62,513 64,649 
      Total finance lease liabilities$66,902 $68,435 
Weighted average remaining lease term (in years)
   Operating leases4.65.8
   Finance leases13.915.0
Weighted average discount rate
   Operating leases4.6%4.8%
   Finance leases5.7%5.6%

Supplemental cash flow and other information related to leases were as follows:
Year Ended
December 31, 2022		Year Ended December 31, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows on operating leases$1,062 $1,142 
Operating cash flows on finance leases$4,255 $4,104 
Financing cash flows on finance leases$3,743 $3,549 
Maturities of lease liabilities were as follows:
December 31, 2022
OperatingFinance
(In thousands)
2023$1,028 $7,925 
2024608 7,504 
2025491 7,044 
2026326 7,165 
2027205 6,448 
2027 and thereafter318 61,038 
   Total lease payments2,976 97,124 
Less: Imputed interest(288)(30,222)
   Total lease obligations2,688 66,902 
Less: Current lease liabilities(968)(4,389)
   Long-term lease liabilities$1,720 $62,513 

The components of lease expense were as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease costs$1,048 $1,077 
Finance lease costs
 Amortization of assets877 803 
 Interest on lease liabilities 3,797 3,953 
Variable lease cost471 215 
Total net lease cost$6,193 $6,048 

Lessor Accounting
As discussed in Note 1, the majority of our contracts with customers meet the definition of a lease. See Note 1 for further discussion of the impact of adoption of this standard on our activities as a lessor.

Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and we believe these assets will continue to have value when the current agreements expire due to our risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. HF Sinclair, generally has the option to purchase assets located within HF Sinclair, refinery boundaries, including refinery tankage, truck racks and refinery processing units, at fair market value when the related agreements expire.

During the year ended December 31, 2022, we entered into new agreements, and amended other agreements, with HF Sinclair, related to our newly acquired Sinclair Transportation assets. Certain of these agreements met the criteria of sales-type leases. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Because we recorded these assets at fair values under purchase price accounting, there was no gain or loss on these sales-type leases during the year ended December 31, 2022. The balance sheet impacts were composed of the following:
(In thousands)
Net investment in leases$234,736 
Properties and equipment, net(234,736)
Gain on sales-type leases$— 
During the year ended December 31, 2021, we entered into new agreements, and amended other agreements, with HF Sinclair, related to our Cheyenne assets, Tulsa West lube racks, various crude tanks and new Navajo tanks, and the agreements we previously entered into relating to the Cushing Connect Pipeline became effective. These agreements met the criteria of sales-type leases. We recognized a gain on sales-type leases during the year ended December 31, 2021 composed of the following:
(In thousands)
Net investment in leases148,419 
Properties and equipment, net(130,301)
Deferred Revenue6,559 
Gain on sales-type leases$24,677 

These sales-type lease transactions, including the related gains, were non-cash transactions.

Lease income recognized was as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease revenues$310,968 $326,902 
Direct financing lease interest income2,115 2,089 
Gain on sales-type leases— 24,677 
Sales-type lease interest income89,285 27,836 
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 22,659 9,160 
For our sales-type leases, we included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of our minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. We recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues.

Annual minimum undiscounted lease payment receipts under our leases were as follows as of December 31, 2022:
OperatingFinanceSales-type
Years Ending December 31,(In thousands)
2023$271,439 $2,243 $103,876 
2024241,746 2,226 100,580 
2025165,560 2,244 97,153 
2026151,015 2,262 97,153 
2027118,472 2,280 97,153 
Thereafter346,975 34,940 820,234 
Total lease payment receipts$1,295,207 46,195 1,316,149 
Less: Imputed interest(29,931)(1,189,628)
16,264 126,521 
Unguaranteed residual assets at end of leases— 402,934 
Net investment in leases$16,264 $529,455 
Net investments in leases recorded on our balance sheet were composed of the following:
December 31, 2022December 31, 2021
Sales-type LeasesDirect Financing LeasesSales-type LeasesDirect Financing Leases
(In thousands)(In thousands)
Lease receivables (1)
$418,989 $16,264 $207,768 $16,371 
Unguaranteed residual assets110,466 — 90,097 — 
Net investment in leases$529,455 $16,264 $297,865 $16,371 

(1)    Current portion of lease receivables included in prepaid and other current assets on the balance sheet.
v3.22.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability) including assumptions about risk. GAAP categorizes inputs used in fair value measurements into three broad levels as follows:
•(Level 1) Quoted prices in active markets for identical assets or liabilities.
•(Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.
•(Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.

Financial Instruments
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Debt consists of outstanding principal under our revolving credit agreement (which approximates fair value as interest rates are reset frequently at current interest rates) and our fixed interest rate senior notes.

The carrying amounts and estimated fair values of our senior notes were as follows:
 December 31, 2022December 31, 2021
Financial InstrumentFair Value Input LevelCarrying
Value		Fair ValueCarrying
Value		Fair Value
(In thousands)
Liabilities:
5% Senior Notes
Level 2$494,047 $458,090 $493,049 $502,705 
6.375% Senior Notes
Level 2394,287 394,568 — — 
Total Liabilities$888,334 $852,658 $493,049 $502,705 

Level 2 Financial Instruments
Our senior notes are measured at fair value using Level 2 inputs. The fair value of the senior notes is based on market values provided by a third-party bank, which were derived using market quotes for similar type debt instruments. See Note 10 for additional information.

Non-Recurring Fair Value Measurements
The HEP Transaction was accounted for as a business combination using the acquisition method of accounting, with the assets acquired and the liabilities assumed at their respective acquisition date fair values at the Closing Date. The fair value
measurements were based on a combination of valuation methods including discounted cash flows, the guideline public company method, the market approach and obsolescence adjusted replacement costs, all of which are Level 3 inputs.

For the net investments in sales-type leases recognized during the years ended December 31, 2022 and 2021, the estimated fair value of the underlying leased assets at contract inception and the present value of the estimated unguaranteed residual asset at the end of the lease term are used in determining the net investment in leases and related gain on sales-type leases recorded. The asset valuation estimates include Level 3 inputs based on a replacement cost valuation method.

During the years ended December 31, 2021 and 2020, we recognized goodwill impairment based on fair value measurements utilized during our goodwill testing (see Note 1). The fair value measurements were based on a combination of valuation methods including discounted cash flows and the guideline public company and guideline transaction methods; all of which are Level 3 inputs.
v3.22.4
Properties and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Properties and Equipment Properties and Equipment 
The carrying amounts of our properties and equipment are as follows:
December 31,
2022		December 31,
2021
 (In thousands)
Pipelines, terminals and tankage$1,567,359 $1,527,697 
Refinery assets353,998 348,882 
Land and right of way171,327 98,837 
Construction in progress23,027 26,446 
Other69,098 48,203 
2,184,809 2,050,065 
Less accumulated depreciation(795,921)(721,037)
$1,388,888 $1,329,028 
Depreciation expense was $80.9 million, $79.2 million, and $85.0 million for the years ended December 31, 2022, 2021 and 2020, respectively, and includes depreciation of assets acquired under capital leases. Asset abandonment charges of $0.1 million, $1.1 million and $1.0 million for assets permanently removed from service were included in depreciation expense for the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Intangible Assets
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Intangible assets include transportation agreements and customer relationships that represent a portion of the total purchase price of certain assets acquired from Delek in 2005, from HFC in 2008 prior to HEP becoming a consolidated VIE of HFC, from Plains in 2017, and from other minor acquisitions in 2018.

The carrying amounts of our intangible assets are as follows:
Useful LifeDecember 31,
2022		December 31,
2021
 (In thousands)
Delek transportation agreement30 years$59,933 $59,933 
HF Sinclair transportation agreements
10-15 years
75,131 75,131 
Customer relationships10 years69,683 69,683 
Other20 years50 50 
204,797 204,797 
Less accumulated amortization(145,497)(131,490)
Intangible assets, net$59,300 $73,307 

Amortization expense was $14.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. We estimate amortization expense to be $9.9 million for 2023, and $9.1 million for 2024, 2025, 2026 and 2027.

We have additional transportation agreements with HF Sinclair resulting from historical transactions consisting of pipeline, terminal and tankage assets contributed to us or acquired from HF Sinclair. These transactions occurred while we were a consolidated variable interest entity of HF Sinclair; therefore, our basis in these agreements is zero and does not reflect a step-up in basis to fair value.
v3.22.4
Employees, Retirement and Incentive Plans
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Employees, Retirement and Incentive Plans Employees, Retirement and Incentive Plans
Direct support for our operations is provided by Holly Logistic Services, L.L.C., (“HLS”), an HF Sinclair subsidiary, which utilizes personnel employed by HF Sinclair who are dedicated to performing services for us. Their costs, including salaries, bonuses, payroll taxes, benefits and other direct costs, are charged to us monthly in accordance with an omnibus agreement that we have with HF Sinclair. These employees participate in the retirement and benefit plans of HF Sinclair. Our share of retirement and benefit plan costs was $11.2 million, $8.7 million and $7.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. These costs include retirement costs of $4.9 million, $3.7 million and $3.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Under HLS’s secondment agreement with HF Sinclair (the “Secondment Agreement”), certain employees of HF Sinclair are seconded to HLS to provide operational and maintenance services for certain of our processing, refining, pipeline and tankage assets, and HLS reimburses HF Sinclair for its prorated portion of the wages, benefits, and other costs related to these employees.
We have a Long-Term Incentive Plan for employees and non-employee directors who perform services for us. The Long-Term Incentive Plan consists of five components: restricted or phantom units, performance units, unit options, unit appreciation rights and cash awards. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting (a significant proportion of our awards) is to expense the costs ratably over the vesting periods.

As of December 31, 2022, we have two types of unit-based awards outstanding, which are described below. The compensation cost charged against income was $1.9 million, $2.6 million and $2.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. We currently purchase units in the open market instead of issuing new units for settlement of all unit awards under our Long-Term Incentive Plan. As of December 31, 2022, 2,500,000 units were authorized to be granted under our Long-Term Incentive Plan, of which 773,014 have not yet been granted, assuming no forfeitures of the unvested units and full achievement of goals for the unvested performance units.

Phantom Units
Under our Long-Term Incentive Plan, we grant phantom units to non-employee directors and selected employees who perform services for us, with most awards vesting over a period of one to three years. Although full ownership of the units does not transfer to the recipients until the units vest, the recipients have distribution rights on these units from the date of grant.

The fair value of each phantom unit award is measured at the market price as of the date of grant and is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award.
A summary of phantom unit activity and changes during the year ended December 31, 2022, is presented below: 
Phantom UnitsUnitsWeighted-
Average
Grant-Date
Fair Value
Outstanding at January 1, 2022 (nonvested)203,263 $14.85 
Granted84,705 18.57 
Vesting and transfer of common units to recipients(105,031)16.88 
Forfeited(67,128)13.26 
Outstanding at December 31, 2022 (nonvested)115,809 16.66 

The grant date fair values of restricted or phantom units that were vested and transferred to recipients during the years ended December 31, 2022, 2021 and 2020 were $1.8 million, $2.1 million and $2.0 million, respectively. As of December 31, 2022, there was $1.3 million of total unrecognized compensation expense related to unvested phantom unit grants, which is expected to be recognized over a weighted-average period of 1.3 years. For the years ended December 31, 2021 and 2020, the grant date price applied to the number of restricted or phantom units awarded was $18.93 and $11.92, respectively.

Performance Units
Under our Long-Term Incentive Plan, we grant performance units to selected executives who perform services for us. Performance units granted are payable in common units at the end of a three-year performance period based upon meeting certain criteria over the performance period. Under the terms of our performance unit grants, some awards are subject to the growth in our distributable cash flow per common unit over the performance period while other awards are subject to “financial performance” and “market performance.” Financial performance is based on meeting certain earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets, while market performance is based on the relative standing of total unitholder return achieved by HEP compared to peer group companies. The number of units ultimately issued under these awards can range from 0% to 200%.

Although common units are not transferred to the recipients until the performance units vest, the recipients have distribution rights with respect to the target number of performance units subject to the award from the date of grant at the same rate as distributions paid on our common units.

A summary of performance unit activity and changes for the year ended December 31, 2022, is presented below:
Performance UnitsUnits
Outstanding at January 1, 2022 (nonvested)76,719 
Granted10,698 
Vesting and transfer of common units to recipients(35,441)
Forfeited(9,124)
Outstanding at December 31, 2022 (nonvested)42,852 

The grant date fair values of performance units vested and transferred to recipients were $0.8 million, $0.4 million and $0.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Based on the weighted average fair value of performance units outstanding at December 31, 2022, of $0.7 million, there was $0.5 million of total unrecognized compensation expense related to nonvested performance units, which is expected to be recognized over a weighted-average period of 1.7 years.

During the year ended December 31, 2022, we paid $1.7 million for the purchase of our common units in the open market for the issuance and settlement of unit awards under our Long-Term Incentive Plan.
v3.22.4
Debt
 12 Months Ended
Dec. 31, 2022
Debt Instruments [Abstract]  
Debt Debt
Credit Agreement
In April 2021, we amended our senior secured revolving credit facility (the “Credit Agreement”) decreasing the size of the facility from $1.4 billion to $1.2 billion and extending the maturity date to July 27, 2025. In August 2022, the Credit Agreement was amended to, among other things, provide an alternative reference rate for LIBOR. The Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. The Credit Agreement is also available to fund letters of credit up to a $50 million sub-limit and continues to provide for an accordion feature that allows us to increase commitments under the Credit Agreement up to a maximum amount of $1.7 billion.

Our obligations under the Credit Agreement are collateralized by substantially all of our assets, and indebtedness under the Credit Agreement is guaranteed by our material, wholly owned subsidiaries. The Credit Agreement requires us to maintain compliance with certain financial covenants consisting of total leverage, senior secured leverage, and interest coverage. It also limits or restricts our ability to engage in certain activities. If, at any time prior to the expiration of the Credit Agreement, HEP obtains two investment grade credit ratings, the Credit Agreement will become unsecured and many of the covenants, limitations, and restrictions will be eliminated.

We may prepay all loans at any time without penalty, except for tranche breakage costs. If an event of default exists under the Credit Agreement, the lenders will be able to accelerate the maturity of all loans outstanding and exercise other rights and remedies. We were in compliance with the covenants as of December 31, 2022.

Senior Notes
On April 8, 2022, we closed a private placement of $400 million in aggregate principal amount of 6.375% senior unsecured notes due in 2027 (the “6.375% Senior Notes”). The 6.375% Senior Notes were issued at par for net proceeds of approximately $393 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. The total net proceeds from the offering of the 6.375% Senior Notes were used to partially repay outstanding borrowings under the Credit Agreement, increasing our available liquidity.

As of December 31, 2022, we had $500 million aggregate principal amount of 5% senior unsecured notes due in 2028 (the “5% Senior Notes,” and together with the 6.375% Senior Notes, the “Senior Notes”).

The Senior Notes are unsecured and impose certain restrictive covenants, including limitations on our ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. At any time when the Senior Notes are rated investment grade by either Moody’s or Standard & Poor’s and no default or event of default exists, we will not be subject to many of the foregoing covenants. Additionally, we have certain redemption rights at varying premiums over face value under the Senior Notes.

Indebtedness under the Senior Notes is guaranteed by all of our existing wholly owned subsidiaries (other than Holly Energy Finance Corp. and certain immaterial subsidiaries).
Long-term Debt
The carrying amounts of our long-term debt are as follows:
December 31,
2022		December 31,
2021
(In thousands)
Credit Agreement
Amount outstanding$668,000 $840,000 
 5% Senior Notes
Principal500,000 500,000 
Unamortized premium and debt issuance costs(5,953)(6,951)
494,047 493,049 
 6.375% Senior Notes
Principal400,000 — 
Unamortized premium and debt issuance costs(5,713)— 
394,287 — 
Total long-term debt$1,556,334 $1,333,049 

Maturities of our long-term debt are as follows as of December 31, 2022:
Years Ending December 31,(In thousands)
2023$— 
2024— 
2025668,000 
2026— 
2027400,000 
Thereafter500,000 
Total$1,568,000 
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We lease certain facilities and pipelines under operating leases and finance leases, most of which contain renewal options. These operating leases have various termination dates through 2041. See Note 5 for a schedule of annual minimum undiscounted lease payments under our leases as of December 31, 2022. As of December 31, 2022, we expect to receive aggregate payments totaling $0.8 million over the life of our noncancelable sublease of office space, expiring in 2026.
We also have other long-term contractual obligations consisting of long-term site service agreements with HF Sinclair, expiring in 2058 through 2066, for the provision of certain facility services and utility costs that relate to our assets located at HF Sinclair’s refinery and renewable diesel facilities. We are presenting obligations for the full term of these agreements; however, the agreements can be terminated with 180 day notice if we cease to operate the applicable assets.
In addition, we have long-term contractual obligations associated with rights-of-way agreements, which have various termination dates through 2099. The related payments below include only obligations under the remaining non-cancelable terms of these agreements at December 31, 2022.
At December 31, 2022, these minimum future contractual obligations and other miscellaneous obligations having terms in excess of one year are as follows:
        
Years Ending December 31,(In thousands)
2023$8,856 
20248,803 
20257,030 
20265,944 
20275,943 
Thereafter214,367 
Total$250,943 
We are a party to various legal and regulatory proceedings, none of which we believe will have a material adverse impact on our financial condition, results of operations or cash flows.
v3.22.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
We serve many of HF Sinclair’s refinery and renewable diesel facilities under long-term pipeline, terminal and tankage throughput agreements, and refinery processing unit tolling agreements expiring from 2023 to 2037, and revenues from these agreements accounted for approximately 80% of our total revenues for the year ended December 31, 2022. Under these agreements, HF Sinclair agrees to transport, store, and process throughput volumes of refined product, crude oil and feedstocks on our pipelines, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to us. These minimum annual payments or revenues are generally subject to annual rate adjustments on July 1st each year based on increases or decreases in the Producer Price Index (“PPI”) or FERC index. As of December 31, 2022, these agreements with HF Sinclair require minimum annualized payments to us of $452.6 million.

If HF Sinclair fails to meet its minimum volume commitments under the agreements in any quarter, it will be required to pay us the amount of any shortfall in cash by the last day of the month following the end of the quarter. Under certain of these agreements, a shortfall payment may be applied as a credit in the following four quarters after its minimum obligations are met.

Under certain provisions of the Omnibus Agreement, we pay HF Sinclair an annual administrative fee (currently $5.0 million) for the provision by HF Sinclair or its affiliates of various general and administrative services to us. In connection with the HEP Transaction, we paid HF Sinclair a temporary monthly fee of $62,500 from the Closing Date through November 30, 2022, relating to transition services provided to HEP by HF Sinclair. Neither the annual administrative fee nor the temporary monthly fee includes the salaries of personnel employed by HF Sinclair who perform services for us on behalf of HLS or the cost of their employee benefits, which are charged to us separately by HF Sinclair. Also, we reimburse HF Sinclair and its affiliates for direct expenses they incur on our behalf.

Related party transactions with HF Sinclair are as follows:
•Revenues received from HF Sinclair were $438.3 million, $390.8 million and $399.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.
•HF Sinclair charged us general and administrative services under the Omnibus Agreement of $4.5 million for the year ended December 31, 2022 and $2.6 million for each of the years ended December 31, 2021 and 2020.
•We reimbursed HF Sinclair for costs of employees supporting our operations of $78.2 million, $61.2 million and $55.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.
•HF Sinclair reimbursed us $14.7 million, $7.9 million and $10.0 million for the years ended December 31, 2022, 2021 and 2020, respectively, for expense and capital projects.
•We distributed $83.5 million in each of the years ended December 31, 2022 and 2021 and $95.2 million in the year ended December 31, 2020 to HF Sinclair as regular distributions on its common units.
•Accounts receivable from HF Sinclair were $63.5 million and $56.2 million at December 31, 2022 and 2021, respectively.
•Accounts payable to HF Sinclair were $15.8 million and $11.7 million at December 31, 2022 and 2021, respectively.
•Revenues for the years ended December 31, 2022, 2021 and 2020 include $0.4 million, $0.4 million and $0.5 million, respectively, of shortfall payments billed to HF Sinclair in 2021, 2020 and 2019, respectively. Deferred revenue in the consolidated balance sheets at December 31, 2021, includes $4.1 million, relating to certain shortfall billings to HF Sinclair.
•We received direct financing lease payments from HF Sinclair for use of our Artesia and Tulsa railyards of $2.2 million for the year ended December 31, 2022 and $2.1 million for each of the years ended December 31, 2021 and 2020.
•We recorded a gain on sales-type leases with HF Sinclair of $24.7 million during the year ended December 31, 2021, and we received sales-type lease payments of $91.6 million, $28.9 million and $9.5 million from HF Sinclair that were not included in revenues for the years ended December 31, 2022, 2021 and 2020, respectively.
•HEP and HFC reached an agreement to terminate the existing minimum volume commitments for HEP's Cheyenne assets and enter into new agreements, which were finalized and executed on February 8, 2021, with the following terms, in each case effective January 1, 2021: (1) a ten-year lease with two five-year renewal option periods for HFC’s (and now HF Sinclair's) use of certain HEP tank and rack assets in the Cheyenne Refinery to facilitate renewable diesel production with an annual lease payment of approximately $5 million, (2) a five-year contango service fee arrangement that will utilize HEP tank assets inside the Cheyenne Refinery where HFC (and now HF Sinclair) will pay a base tariff to HEP for available crude oil storage and HFC (and now HF Sinclair) and HEP will split any profits generated on crude oil contango opportunities and (3) HFC paid a $10 million one-time cash payment to HEP for the termination of the existing minimum volume commitment.
Contemporaneous with the closing of the Sinclair Transactions, HEP and HFC amended certain intercompany agreements, including the master throughput agreement, to include within the scope of such agreements certain of the assets acquired by HEP pursuant to the Contribution Agreement.
v3.22.4
Partners' Equity, Income Allocations and Cash Distributions
 12 Months Ended
Dec. 31, 2022
Partners' Capital [Abstract]  
Partners' Equity, Income Allocations and Cash Distributions Partners’ Equity, Income Allocations and Cash Distributions
At December 31, 2022, HF Sinclair held 59,630,030 of our common units, constituting a 47% limited partner interest in us and held the non-economic general partner interest.

Continuous Offering Program
We have a continuous offering program under which we may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million. As of December 31, 2022, HEP had issued 2,413,153 units under this program, providing $82.3 million in gross proceeds. No units were issued under the program during the year ended December 31, 2022.

Allocations of Net Income
Net income attributable to the partners is allocated to the partners based on their weighted-average ownership percentage during the period.

Cash Distributions
We consider regular cash distributions to unitholders on a quarterly basis, although there is no assurance as to the future cash distributions since they are dependent upon future earnings, cash flows, capital requirements, financial condition and other factors.
Within 45 days after the end of each quarter, we distribute all of our available cash (as defined in our partnership agreement) to unitholders of record on the applicable record date. The amount of available cash generally is all cash on hand at the end of the quarter; less the amount of cash reserves established by our general partner to provide for the proper conduct of our business, comply with applicable laws, any of our debt instruments, or other agreements; or provide funds for distributions to our unitholders and to our general partner for any one or more of the next four quarters; plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter.
On January 20, 2023, we announced our cash distribution for the fourth quarter of 2022 of $0.35 per unit. The distribution was payable on all common units and was paid February 13, 2023, to all unitholders of record on January 30, 2023.

We paid cash distributions totaling $170.0 million, $149.4 million and $174.4 million during the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Net Income Per Limited Partner Unit
 12 Months Ended
Dec. 31, 2022
Net Income per Limited Partner Unit [Abstract]  
Net Income per Limited Partner Unit Net Income Per Limited Partner Unit
Basic net income per unit applicable to the limited partners is calculated as net income attributable to the partners, adjusted for participating securities’ share in earnings, divided by the weighted average limited partners’ units outstanding. Diluted net income per unit assumes, when dilutive, the issuance of the net incremental units from phantom units and performance units. To the extent net income attributable to the partners exceeds or is less than cash distributions, this difference is allocated to the partners based on their weighted-average ownership percentage during the period. Our dilutive securities are immaterial for all periods presented.
Net income per limited partner unit is computed as follows:
Years Ended December 31,
202220212020
(In thousands, except per unit data)
Net income attributable to the partners$216,783 $214,946 $170,483 
Less: Participating securities’ share in earnings(408)(736)(387)
Net income attributable to common units216,375 214,210 170,096 
Weighted average limited partners' units outstanding122,298 105,440 105,440 
Limited partners' per unit interest in earnings - basic and diluted$1.77 $2.03 $1.61 
v3.22.4
Environmental
 12 Months Ended
Dec. 31, 2022
Environmental Remediation Obligations [Abstract]  
Environmental Environmental
We expensed $2.0 million, $1.9 million and $1.6 million for the years ended December 31, 2022, 2021 and 2020, respectively, for environmental remediation obligations. The accrued environmental liability related to environmental clean-up projects for which we have assumed liability or for which indemnity provided by HF Sinclair has expired reflected in our consolidated balance sheets was $19.5 million and $3.9 million as of December 31, 2022 and 2021, respectively, of which $17.5 million and $2.4 million, respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time.

Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HF Sinclair and or its subsidiaries, HF Sinclair has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HF Sinclair and its subsidiaries and occurring or existing prior to the date of such transfers.
v3.22.4
Operating Segments
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Operating Segments Operating Segments
Although financial information is reviewed by our chief operating decision makers from a variety of perspectives, they view the business in two reportable operating segments: (1) pipelines and terminals and (2) refinery processing units. These segments adhere to the accounting polices used for our consolidated financial statements. For a discussion of these accounting policies and a summary of our derivation of revenue, see Note 1.

Our pipelines and terminals segment includes our petroleum product and crude pipelines and terminal, tankage and loading rack facilities that support refining and marketing operations of HF Sinclair and other refineries in the Mid-Continent, Southwest and Northwest regions of the United States.
Our Refinery Processing Unit segment consists of five refinery processing units at two of HF Sinclair's refining facility locations.

Pipelines and terminals have been aggregated as one reportable segment as both pipelines and terminals (1) have similar economic characteristics, (2) similarly provide logistics services of transportation and storage of petroleum products, (3) similarly support the petroleum refining business, including distribution of its products, (4) have principally the same customers and (5) are subject to similar regulatory requirements.

We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific reportable segment. Identifiable assets are those used by the segment, whereas other assets are principally equity method investments, cash, deposits and other assets that are not associated with a specific reportable segment.
Years Ended December 31,
202220212020
(In thousands)
Revenues:
Pipelines and terminals - affiliate$344,063 $301,731 $319,487 
Pipelines and terminals - third-party109,200 103,646 98,039 
Refinery processing units - affiliate94,217 89,118 80,322 
Total segment revenues$547,480 $494,495 $497,848 
Segment operating income:
Pipelines and terminals(1)
$202,908 $180,965 $176,611 
Refinery processing units34,857 38,172 38,314 
Total segment operating income237,765 219,137 214,925 
Unallocated general and administrative expenses(17,003)(12,637)(9,989)
Interest expense(82,560)(53,818)(59,424)
Interest income91,406 29,925 10,621 
Loss on early extinguishment of debt— — (25,915)
Equity in earnings (losses) of unconsolidated affiliates(260)12,432 6,647 
Gain on sales-type leases— 24,677 33,834 
Gain on sale of assets and other668 6,179 8,691 
Income before income taxes$230,016 $225,895 $179,390 
Capital Expenditures:
Pipelines and terminals$33,071 $87,756 $59,108 
Refinery processing units5,893 2,239 175 
Total capital expenditures$38,964 $89,995 $59,283 
December 31, 2022December 31, 2021
(In thousands)
Identifiable assets:
Pipelines and terminals(2)
$2,152,159 $1,737,388 
Refinery processing units304,332 294,452 
Other291,011 134,027 
Total identifiable assets$2,747,502 $2,165,867 
(1)Pipelines and terminals segment operating income included goodwill impairment charges of $11.0 million and $35.7 million for the years ended December 31, 2021 and December 31, 2020, respectively.
(2)Includes goodwill of $342.8 million and $223.7 million as of December 31, 2022 and 2021, respectively.
v3.22.4
Supplemental Guarantor / Non-Guarantor Financial Information
 12 Months Ended
Dec. 31, 2022
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]  
Supplemental Guarantor / Non-Guarantor Financial Information Supplemental Guarantor/Non-Guarantor Financial Information
Obligations of HEP (“Parent”) under the Senior Notes have been jointly and severally guaranteed by each of its direct and indirect 100% owned subsidiaries (“Guarantor Subsidiaries”). These guarantees are full and unconditional, subject to certain customary release provisions. These circumstances include (i) when a Guarantor Subsidiary is sold or sells all or substantially all of its assets, (ii) when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, (iii) when a Guarantor Subsidiary's guarantee of other indebtedness is terminated or released and (iv) when the requirements for legal defeasance or covenant defeasance or to discharge the senior notes have been satisfied.

The following financial information presents condensed consolidating balance sheets and statements of income of the Parent, the Guarantor Subsidiaries and the Non-Guarantor subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting.

As a result of the HEP Transaction, UNEV Pipeline, LLC became a 100% owned subsidiary, and it was subsequently added as a guarantor of the obligations of HEP under the Senior Notes during the second quarter of 2022. UNEV Pipeline, LLC financial information has been included in the Guarantor Subsidiaries financial information for all periods presented.
Condensed Consolidating Balance Sheet
December 31, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$4,316 $4,454 $2,147 $— $10,917 
Accounts receivable— 79,689 1,453 (1,339)79,803 
Prepaid and other current assets256 12,141 356 (356)12,397 
Total current assets4,572 96,284 3,956 (1,695)103,117 
Properties and equipment, net— 1,388,888 — — 1,388,888 
Operating lease right-of-use assets— 2,317 — — 2,317 
Net investment in leases— 539,705 101,871 (101,871)539,705 
Investment in subsidiaries2,432,767 69,754 — (2,502,521)— 
Intangible assets, net— 59,300 — — 59,300 
Goodwill— 342,762 — — 342,762 
Equity method investments— 235,858 34,746 — 270,604 
Deferred turnaround costs24,154 — — 24,154 
Other assets5,865 10,790 — — 16,655 
Total assets$2,443,204 $2,769,812 $140,573 $(2,606,087)$2,747,502 
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable$— $43,303 $545 $(1,339)$42,509 
Accrued interest17,992 — — — 17,992 
Deferred revenue— 12,087 — — 12,087 
Accrued property taxes— 5,449 — — 5,449 
Current operating lease liabilities— 968 — — 968 
Current finance lease liabilities— 6,560 — (2,171)4,389 
Other current liabilities117 1,793 520 — 2,430 
Total current liabilities18,109 70,160 1,065 (3,510)85,824 
Long-term debt1,556,334 — — — 1,556,334 
Noncurrent operating lease liabilities— 1,720 — — 1,720 
Noncurrent finance lease liabilities— 150,935 — (88,422)62,513 
Other long-term liabilities— 29,111 — — 29,111 
Deferred revenue— 24,613 — — 24,613 
Class B unit— 60,507 — — 60,507 
Equity - partners868,760 2,432,767 69,754 (2,514,155)857,126 
Equity - noncontrolling interests— 69,754 — 69,754 
Total liabilities and partners’ equity$2,443,203 $2,769,813 $140,573 $(2,606,087)$2,747,502 
Condensed Consolidating Balance Sheet
December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$1,273 $4,227 $8,881 $— $14,381 
Accounts receivable— 68,768 2,833 (2,702)68,899 
Prepaid and other current assets353 10,680 304 (304)11,033 
Total current assets1,626 83,675 12,018 (3,006)94,313 
Properties and equipment, net— 1,329,028 — — 1,329,028 
Operating lease right-of-use assets— 2,275 — — 2,275 
Net investment in leases— 309,301 100,032 (100,030)309,303 
Investment in subsidiaries1,785,024 70,437 — (1,855,461)— 
Intangible assets, net— 73,307 — — 73,307 
Goodwill— 223,650 — — 223,650 
Equity method investments— 78,873 37,505 — 116,378 
Deferred turnaround costs— 2,632 — — 2,632 
Other assets8,118 6,863 — — 14,981 
Total assets$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable$— $34,566 $8,416 $(2,702)$40,280 
Accrued interest11,258 — — — 11,258 
Deferred revenue— 14,585 — — 14,585 
Accrued property taxes— 4,542 — — 4,542 
Current operating lease liabilities— 620 — — 620 
Current finance lease liabilities— 5,566 — (1,780)3,786 
Other current liabilities3 1,513 265 — 1,781 
Total current liabilities11,261 61,392 8,681 (4,482)76,852 
Long-term debt1,333,049 — — — 1,333,049 
Noncurrent operating lease liabilities— 2,030 — — 2,030 
Noncurrent finance lease liabilities— 156,102 — (91,453)64,649 
Other long-term liabilities340 12,187 — — 12,527 
Deferred revenue— 29,662 — — 29,662 
Class B unit— 56,549 — — 56,549 
Equity - partners450,118 1,785,024 70,437 (1,862,562)443,017 
Equity - noncontrolling interests— 77,095 70,437 — 147,532 
Total liabilities and partners’ equity$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
Condensed Consolidating Statement of Income
Year Ended December 31, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $438,280 $— $— $438,280 
Third parties— 109,200 — — 109,200 
— 547,480 — — 547,480 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 206,945 3,678 — 210,623 
Depreciation and amortization— 99,092 — — 99,092 
General and administrative3,777 13,226 — — 17,003 
3,777 319,263 3,678 — 326,718 
Operating income (loss)(3,777)228,217 (3,678)— 220,762 
Equity in earnings of subsidiaries299,319 8,071 — (307,390)— 
Equity in earnings of equity method investments— (3,585)3,325 — (260)
Interest expense(78,759)(20,296)— 16,495 (82,560)
Interest income— 91,406 16,495 (16,495)91,406 
Gain on sale of assets and other— 668 — — 668 
220,560 76,264 19,820 (307,390)9,254 
Income (loss) before income taxes216,783 304,481 16,142 (307,390)230,016 
State income tax expense— (111)— — (111)
Net income (loss)216,783 304,370 16,142 (307,390)229,905 
Allocation of net income attributable to noncontrolling interests
— (5,051)(8,071)— (13,122)
Net income (loss) attributable to the Partnership
216,783 299,319 8,071 (307,390)216,783 
Condensed Consolidating Statement of Income
Year Ended December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $390,849 $— $— $390,849 
Third parties— 103,646 — — 103,646 
— 494,495 — — 494,495 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 167,832 2,692 — 170,524 
Depreciation and amortization— 93,800 — — 93,800 
General and administrative3,647 8,990 — — 12,637 
Goodwill Impairment— 11,034 — — 11,034 
3,647 281,656 2,692 — 287,995 
Operating income (loss)(3,647)212,839 (2,692)— 206,500 
Equity in earnings of subsidiaries275,558 2,532 — (278,090)— 
Equity in earnings of equity method investments— 8,897 3,535 — 12,432 
Interest income— 29,925 4,220 (4,220)29,925 
Interest expense(49,864)(8,174)— 4,220 (53,818)
Gain on sales-type lease— 31,778 — (7,101)24,677 
Gain on sale of assets and other— 6,179 — — 6,179 
225,694 71,137 7,755 (285,191)19,395 
Income (loss) before income taxes222,047 283,976 5,063 (285,191)225,895 
State income tax expense— (32)— — (32)
Net income (loss)222,047 283,944 5,063 (285,191)225,863 
Allocation of net income attributable to noncontrolling interests
— (8,386)(2,531)— (10,917)
Net income (loss) attributable to the Partnership
222,047 275,558 2,532 (285,191)214,946 
Condensed Consolidating Statement of Income
Year Ended December 31, 2020ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $399,809 $— $— $399,809 
Third parties— 98,039 — — 98,039 
— 497,848 — — 497,848 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 146,585 1,107 — 147,692 
Depreciation and amortization— 99,578 — — 99,578 
General and administrative3,227 6,762 — — 9,989 
Goodwill Impairment— 35,653 — — 35,653 
3,227 288,578 1,107 — 292,912 
Operating income (loss)(3,227)209,270 (1,107)— 204,936 
Equity in earnings (loss) of subsidiaries254,608 219 — (254,827)— 
Equity in earnings of equity method investments— 5,105 1,542 — 6,647 
Interest income26 10,592 3 — 10,621 
Interest expense(55,298)(4,126)— — (59,424)
Gain on sales-type lease— 33,834 — — 33,834 
Loss on extinguishment of debt(25,915)— — — (25,915)
Gain on sale of assets and other289 8,402 — — 8,691 
173,710 54,026 1,545 (254,827)(25,546)
Income (loss) before income taxes170,483 263,296 438 (254,827)179,390 
State income tax expense— (167)— — (167)
Net income (loss)170,483 263,129 438 (254,827)179,223 
Allocation of net income attributable to noncontrolling interests
— (8,521)(219)— (8,740)
Net income (loss) attributable to the Partnership
170,483 254,608 219 (254,827)170,483 
v3.22.4
Osage Pipeline
 12 Months Ended
Dec. 31, 2022
Unusual or Infrequent Items, or Both [Abstract]  
Osage Pipeline Osage PipelineOn July 8, 2022, the Osage pipeline, which is owned by Osage (see Note 1) and carries crude oil from Cushing, Oklahoma to El Dorado, Kansas, suffered a release of crude oil. Our equity in earnings of equity method investments was reduced in the year ended December 31, 2022 by $17.6 million for our 50% share of incurred and estimated environmental remediation and recovery expenses associated with the release, net of our share of insurance proceeds received to date of $3.0 million. Any additional insurance recoveries will be recorded as they are received. If our insurance policy pays out in full, our share of the remaining insurance coverage is expected to be $9.5 million. As Osage is an equity method investment, its financial position and results are not consolidated into HEP financial statement line items. The financial impact of the Osage crude oil release is reflected on the consolidated balance sheets as a reduction in equity method investments and is reflected on the consolidated statement of income as a reduction in equity in earnings (loss) of equity method investments.The pipeline resumed operations in the third quarter of 2022 and remediation efforts are underway. It may be necessary for Osage to accrue additional amounts for environmental remediation or other release-related expenses in future periods, but we cannot estimate those amounts at this time. Future costs and accruals could have a material impact on our results of operations and cash flows in the period recorded; however, we do not expect them to have a material impact on our financial position.
v3.22.4
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Principles of Consolidation Principles of Consolidation The consolidated financial statements include our accounts and those of subsidiaries and joint ventures that we control through an ownership interest greater than 50% or through a controlling financial interest with respect to variable interest entities. All significant intercompany transactions and balances have been eliminated. Certain prior period balances have been reclassified for consistency with current year presentation.
Use of Estimates
Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents
For purposes of the statements of cash flows, we consider all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. The carrying amounts reported on the balance sheets approximate fair value due to the short-term maturity of these instruments.
Accounts Receivable
Accounts Receivable
The majority of the accounts receivable are due from affiliates of HF Sinclair or independent companies in the petroleum industry. Credit is extended based on evaluation of the customer's financial condition, and in certain circumstances, collateral such as letters of credit or guarantees, may be required. We reserve for doubtful accounts based on our historical loss experience as well as expected credit losses from current economic conditions and management’s expectations of future economic conditions. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible and historically have been minimal.
Properties and Equipment
Properties and Equipment
Properties and equipment are stated at cost. Properties and equipment acquired from HFC while under common control of HFC are stated at HFC's historical basis. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 25 years for terminal facilities and tankage, 25 to 30 years for pipelines, 25 years for refinery processing units and 3 to 10 years for corporate and other assets. We depreciate assets acquired under capital leases over the lesser of the lease term or the economic life of the assets. Maintenance, repairs and minor replacements are expensed as incurred. Costs of replacements constituting improvements are capitalized.
Intangible Assets
Intangible Assets
Intangible assets include transportation agreements and acquired customer relationship intangible assets. Intangible assets are stated at acquisition date fair value and are being amortized over their useful lives using the straight-line method.
Goodwill and Long-Lived Assets
Goodwill and Long-Lived Assets
Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the carrying amount of the reporting unit is greater than its fair value, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the related fair value.

Indicators of Goodwill and Long-Lived Asset Impairment
Our annual goodwill impairment testing for 2022 and 2021 was performed on a qualitative basis during the third quarters of 2022 and 2021. We assessed qualitative factors such as macroeconomic conditions, industry considerations, cost factors and reporting unit financial performance and determined it was not more likely than not that the fair value of our reporting units were less than the respective carrying value. Therefore, in accordance with GAAP, further testing was not required.

During the first quarter of 2021, changes in our agreements with HFC related to our Cheyenne assets resulted in an increase in the carrying amount of our Cheyenne reporting unit due to sales-type lease accounting, which led us to determine indicators of potential goodwill impairment for our Cheyenne reporting unit were present.

The estimated fair value of our Cheyenne reporting unit was derived using a combination of income and market approaches. The income approach reflects expected future cash flows based on anticipated gross margins, operating costs, and capital expenditures. The market approaches include both the guideline public company and guideline transaction methods. Both methods utilize pricing multiples derived from historical market transactions of other like-kind assets. These fair value measurements involve significant unobservable inputs (Level 3 inputs). See Note 6 for further discussion of Level 3 inputs.

Our interim impairment testing of our Cheyenne reporting unit goodwill identified an impairment charge of $11.0 million, which was recorded in the three months ended March 31, 2021.

Our annual impairment testing for 2020 was performed on a quantitative basis during the third quarter of 2020. The estimated fair value of our reporting units were derived using a combination of both income and market approaches as described above. Our annual testing of goodwill in 2020 identified an impairment charge of $35.7 million, which was recorded in the third quarter of 2020, related to our Cheyenne reporting unit.
The following is a summary of our goodwill balances:

December 31,
2022		December 31,
2021
 (In thousands)
Goodwill$389,448 $270,336 
Accumulated impairment losses(46,686)(46,686)
$342,762 $223,650 

We evaluate long-lived assets, including finite-lived intangible assets, for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset’s carrying value exceeds its fair value.
Investment in Equity Method Investments
Investment in Equity Method Investments
We account for our interests in noncontrolling joint venture interests using the equity method of accounting, whereby we record our pro-rata share of earnings of these companies, and contributions to and distributions from the joint ventures as adjustments to our investment balances. The difference between the cost of an investment and our proportionate share of the underlying equity in net assets recorded on the investee's books is allocated to the various assets and liabilities of the equity method investment.
Asset Retirement Obligations Asset Retirement Obligations We record legal obligations associated with the retirement of certain of our long-lived assets that result from the acquisition, construction, development and/or the normal operation of our long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded in the period in which the liability is incurred and when a reasonable estimate of the fair value of the liability can be made. For our pipeline assets, the right-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon cessation of the pipeline service. Additionally, management is unable to predict when, or if, our pipelines and related facilities would become obsolete and require decommissioning. Accordingly, we have recorded no liability or corresponding asset related to an asset retirement obligation for the majority of our pipelines as both the amounts and timing of such potential future costs are indeterminable. For our remaining assets, at December 31, 2022 and 2021, we have asset retirement obligations of $10.5 million and $8.7 million, respectively, that are recorded under “Other long-term liabilities” in our consolidated balance sheets.
Class B Unit
Class B Unit
Under the terms of the transaction to acquire HFC's 75% interest in UNEV, we issued to a subsidiary of HFC (now HF Sinclair) a Class B unit comprising a noncontrolling equity interest in a wholly owned subsidiary subject to redemption to the extent that HFC (now HF Sinclair) is entitled to a 50% interest in 75% of annual UNEV earnings before interest, income taxes, depreciation, and amortization above $40 million beginning July 1, 2015, and ending in June 2032, subject to certain limitations. However, to the extent earnings thresholds are not achieved, no redemption payments are required. No redemption payments have been required to date.

Pursuant to the terms of the transaction agreements, the Class B unit increases by the amount of each foregone incentive distribution and by a 7% factor compounded annually on the outstanding unredeemed balance through its expiration date. At our option, we may redeem, in whole or in part, the Class B unit at the current unredeemed value based on the calculation described. The Class B unit had a carrying value of $60.5 million at December 31, 2022, and $56.5 million at December 31, 2021.
Revenue Recognition
Revenue Recognition
Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is remote that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. Prior to the adoption of the new lease standard (see below), we bifurcated the consideration received between lease and service revenue. The new lease standard allows the election of a practical expedient whereby a lessor does not have to separate non-lease (service) components from lease components under certain conditions. The majority of our contracts meet these conditions, and we have made this election for those contracts. Under this practical expedient, we treat the combined components as a single performance obligation in accordance with Accounting Standards Codification (“ASC”) 606, which largely codified ASU 2014-09, if the non-lease (service) component is the dominant component. If the lease component is the dominant component, we treat the combined components as a lease in accordance with ASC 842, which largely codified ASU 2016-02.
Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter.
The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue.
In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights projected to be exercised by the customer. During the years ended December 31, 2022, 2021 and 2020, we recognized $21.1 million, $17.5 million and $20.8 million, respectively, of these deficiency payments in revenue, of which $4.2 million, $0.5 million and $0.7 million, respectively,
related to deficiency payments billed in prior periods. There was no deferred revenue reflected in our consolidated balance sheet related to shortfalls as of December 31, 2022.
We have other cost reimbursement provisions in our throughput/storage agreements providing that customers (including HF Sinclair) reimburse us for certain costs. Such reimbursements are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement.

Taxes billed and collected from our pipeline and terminal customers are recorded on a net basis with no effect on net income.
Lessee Accounting
Leases
We adopted ASC 842 effective January 1, 2019, and elected to adopt using the modified retrospective transition method and practical expedients, both of which are provided as options by the standard and further defined below.

Lessee Accounting - At inception, we determine if an arrangement is or contains a lease. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our payment obligation under the leasing arrangement. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable.

Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties and equipment, current finance lease liabilities and noncurrent finance lease liabilities on our consolidated balance sheet.

When renewal options are defined in a lease, our lease term includes an option to extend the lease when it is reasonably certain we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet, and lease expense is accounted for on a straight-line basis. In addition, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations.
Lessor Accounting
Leases
We adopted ASC 842 effective January 1, 2019, and elected to adopt using the modified retrospective transition method and practical expedients, both of which are provided as options by the standard and further defined below.
Lessor Accounting - Customer contracts that contain leases are generally classified as either operating leases, direct finance leases or sales-type leases. We consider inputs such as the lease term, fair value of the underlying asset and residual value of the underlying assets when assessing the classification.
Environmental Costs
Environmental Costs
Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information.

Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HF Sinclair, HF Sinclair, has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HF Sinclair, occurring or existing prior to the date of such transfers. We have an environmental agreement with Delek with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Delek in 2005, under which Delek will indemnify us subject to certain monetary and time limitations. Environmental costs recoverable through insurance, indemnification agreements or other sources are included in other assets to the extent such recoveries are considered probable.
Income Tax
Income Tax
We are subject to the Texas margin tax that is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax.
We are organized as a pass-through entity for U.S. federal income tax purposes. As a result, our partners are responsible for U.S. federal income taxes based on their respective share of taxable income.
Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the partnership agreement.
Accounting Pronouncement Adopted During the Periods Presented and Not Yet Adopted
Accounting Pronouncement Adopted During the Periods Presented

Credit Losses Measurement
In June 2016, ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” was issued requiring measurement of all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This standard was effective January 1, 2020. Adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.

Accounting Pronouncements - Not Yet Adopted

In October 2021, Accounting Standards Update 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” was issued requiring that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customers. This standard is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. We will evaluate the impact of this standard, if applicable.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability) including assumptions about risk. GAAP categorizes inputs used in fair value measurements into three broad levels as follows:
•(Level 1) Quoted prices in active markets for identical assets or liabilities.
•(Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.
•(Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.
v3.22.4
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Goodwill
The following is a summary of our goodwill balances:

December 31,
2022		December 31,
2021
 (In thousands)
Goodwill$389,448 $270,336 
Accumulated impairment losses(46,686)(46,686)
$342,762 $223,650 
Schedule of Equity Method Investments
The following table summarizes our recorded investments compared to our share of underlying equity for each investee. We are amortizing the differences as adjustments to our pro-rata share of earnings over the useful lives of the underlying assets of these joint ventures.

Balance at December 31, 2022
Underlying EquityRecorded Investment BalanceDifference
(In thousands)
Equity Method Investments
Osage Pipe Line Company, LLC$2,901 $29,773 $(26,872)
Cheyenne Pipeline LLC27,655 40,019 (12,364)
Cushing Connect Terminal Holdings LLC49,915 34,746 15,169 
Pioneer Investments Corp.23,835 133,182 (109,347)
Saddle Butte Pipeline III, LLC67,349 32,884 34,465 
Total$171,655 $270,604 $(98,949)

Balance at December 31, 2021
Underlying EquityRecorded Investment BalanceDifference
(In thousands)
Equity Method Investments
Osage Pipe Line Company, LLC$9,996 $37,782 $(27,786)
Cheyenne Pipeline LLC28,557 41,091 (12,534)
Cushing Connect Terminal Holdings LLC52,203 37,505 14,698 
Total$90,756 $116,378 $(25,622)
v3.22.4
Sinclair Acquisition (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Purchase Price Consideration and Allocation
The following tables present the purchase consideration and preliminary purchase price allocation to the assets acquired and liabilities assumed on March 14, 2022:

Purchase Consideration (in thousands except for per share amounts)
HEP common units issued 21,000 
Closing price per unit of HEP common units(1)
$16.62 
Purchase consideration paid in HEP common units349,020 
Cash consideration paid by HEP325,000 
Working capital adjustment payment by HEP(2)
3,955 
Total cash consideration328,955 
Total purchase consideration$677,975 
(1) Based on the HEP closing unit price on March 11, 2022.
(2) Net of cash acquired
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
(In thousands)
Assets Acquired
Accounts receivable3,005 
Prepaid and other current assets59 
Properties and equipment340,682 
Operating lease right-of-use assets105 
Other assets3,500 
Goodwill119,112 
Equity method investments229,891 
Total assets acquired696,354 
Liabilities Assumed
Accounts payable1,528 
Accrued property taxes973 
Other current liabilities789 
Operating lease liabilities33 
Noncurrent operating lease liabilities72 
Other long-term liabilities14,984 
Total liabilities assumed18,379 
Net assets acquired677,975 
Schedule of Pro Forma Information The pro forma combined condensed financial data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the HEP Transaction taken place on January 1, 2021 and is not intended to be a projection of future results.
Years Ended December 31,
20222021
Sales and other revenues562,242 565,115 
Net income attributable to the partners218,006 240,509 
v3.22.4
Revenues (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregated Revenue
Disaggregated revenues are as follows:
Years Ended December 31,
202220212020
(In thousands)
Pipelines$285,451 $263,110 $265,834 
Terminals, tanks and loading racks167,812 142,267 151,692 
Refinery processing units94,217 89,118 80,322 
$547,480 $494,495 $497,848 
Schedule of Revenues
Affiliates and third parties revenues on our consolidated statements of income were composed of the following lease and service revenues:
Years Ended December 31,
202220212020
(In thousands)
Lease revenues$333,627 $336,062 $360,598 
Service revenues213,853 158,433 137,250 
$547,480 $494,495 $497,848 
Schedule of Contract Asset and Contract Liability Balances Our consolidated balance sheets included the contract assets and liabilities in the table below.
December 31,
2022		December 31,
2021
 (In thousands)
Contract assets$6,672 $6,637 
Contract liabilities$— $(4,185)
Schedule of Future Performance Obligations We expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues):
Years Ending December 31,(In millions)
2023301 
2024265 
2025184 
2026169 
2027136 
Thereafter401 
Total$1,456 
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Supplemental Balance Sheet Information
Supplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate):
December 31, 2022December 31, 2021
Operating leases:
   Operating lease right-of-use assets, net$2,317 $2,275 
   Current operating lease liabilities 968 620 
   Noncurrent operating lease liabilities1,720 2,030 
      Total operating lease liabilities$2,688 $2,650 
Finance leases:
   Properties and equipment$7,649 $6,031 
   Accumulated amortization(3,979)(3,632)
      Properties and equipment, net$3,670 $2,399 
   Current finance lease liabilities 4,389 3,786 
   Noncurrent finance lease liabilities62,513 64,649 
      Total finance lease liabilities$66,902 $68,435 
Weighted average remaining lease term (in years)
   Operating leases4.65.8
   Finance leases13.915.0
Weighted average discount rate
   Operating leases4.6%4.8%
   Finance leases5.7%5.6%
Schedule of Supplemental Cash Flow Information and Components of Lease Expense
Supplemental cash flow and other information related to leases were as follows:
Year Ended
December 31, 2022		Year Ended December 31, 2021
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows on operating leases$1,062 $1,142 
Operating cash flows on finance leases$4,255 $4,104 
Financing cash flows on finance leases$3,743 $3,549 
The components of lease expense were as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease costs$1,048 $1,077 
Finance lease costs
 Amortization of assets877 803 
 Interest on lease liabilities 3,797 3,953 
Variable lease cost471 215 
Total net lease cost$6,193 $6,048 
Schedule of Operating and Finance Lease Maturities
Maturities of lease liabilities were as follows:
December 31, 2022
OperatingFinance
(In thousands)
2023$1,028 $7,925 
2024608 7,504 
2025491 7,044 
2026326 7,165 
2027205 6,448 
2027 and thereafter318 61,038 
   Total lease payments2,976 97,124 
Less: Imputed interest(288)(30,222)
   Total lease obligations2,688 66,902 
Less: Current lease liabilities(968)(4,389)
   Long-term lease liabilities$1,720 $62,513 
Sales-Type Lease, Gain Recognized The balance sheet impacts were composed of the following:
(In thousands)
Net investment in leases$234,736 
Properties and equipment, net(234,736)
Gain on sales-type leases$— 
We recognized a gain on sales-type leases during the year ended December 31, 2021 composed of the following:
(In thousands)
Net investment in leases148,419 
Properties and equipment, net(130,301)
Deferred Revenue6,559 
Gain on sales-type leases$24,677 
Schedule of Lease Income
Lease income recognized was as follows:
Years Ended December 31,
20222021
(In thousands)
Operating lease revenues$310,968 $326,902 
Direct financing lease interest income2,115 2,089 
Gain on sales-type leases— 24,677 
Sales-type lease interest income89,285 27,836 
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 22,659 9,160 
Schedule of Minimum Undiscounted Lease Payments
Annual minimum undiscounted lease payment receipts under our leases were as follows as of December 31, 2022:
OperatingFinanceSales-type
Years Ending December 31,(In thousands)
2023$271,439 $2,243 $103,876 
2024241,746 2,226 100,580 
2025165,560 2,244 97,153 
2026151,015 2,262 97,153 
2027118,472 2,280 97,153 
Thereafter346,975 34,940 820,234 
Total lease payment receipts$1,295,207 46,195 1,316,149 
Less: Imputed interest(29,931)(1,189,628)
16,264 126,521 
Unguaranteed residual assets at end of leases— 402,934 
Net investment in leases$16,264 $529,455 
Schedule of Net Investment in Leases
Net investments in leases recorded on our balance sheet were composed of the following:
December 31, 2022December 31, 2021
Sales-type LeasesDirect Financing LeasesSales-type LeasesDirect Financing Leases
(In thousands)(In thousands)
Lease receivables (1)
$418,989 $16,264 $207,768 $16,371 
Unguaranteed residual assets110,466 — 90,097 — 
Net investment in leases$529,455 $16,264 $297,865 $16,371 

(1)    Current portion of lease receivables included in prepaid and other current assets on the balance sheet.
v3.22.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amounts of Estimated Fair Values of Senior Notes
The carrying amounts and estimated fair values of our senior notes were as follows:
 December 31, 2022December 31, 2021
Financial InstrumentFair Value Input LevelCarrying
Value		Fair ValueCarrying
Value		Fair Value
(In thousands)
Liabilities:
5% Senior Notes
Level 2$494,047 $458,090 $493,049 $502,705 
6.375% Senior Notes
Level 2394,287 394,568 — — 
Total Liabilities$888,334 $852,658 $493,049 $502,705 
v3.22.4
Properties and Equipment (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Properties and Equipment
The carrying amounts of our properties and equipment are as follows:
December 31,
2022		December 31,
2021
 (In thousands)
Pipelines, terminals and tankage$1,567,359 $1,527,697 
Refinery assets353,998 348,882 
Land and right of way171,327 98,837 
Construction in progress23,027 26,446 
Other69,098 48,203 
2,184,809 2,050,065 
Less accumulated depreciation(795,921)(721,037)
$1,388,888 $1,329,028 
v3.22.4
Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets The carrying amounts of our intangible assets are as follows:
Useful LifeDecember 31,
2022		December 31,
2021
 (In thousands)
Delek transportation agreement30 years$59,933 $59,933 
HF Sinclair transportation agreements
10-15 years
75,131 75,131 
Customer relationships10 years69,683 69,683 
Other20 years50 50 
204,797 204,797 
Less accumulated amortization(145,497)(131,490)
Intangible assets, net$59,300 $73,307 
v3.22.4
Employees, Retirement and Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Phantom Units
A summary of phantom unit activity and changes during the year ended December 31, 2022, is presented below: 
Phantom UnitsUnitsWeighted-
Average
Grant-Date
Fair Value
Outstanding at January 1, 2022 (nonvested)203,263 $14.85 
Granted84,705 18.57 
Vesting and transfer of common units to recipients(105,031)16.88 
Forfeited(67,128)13.26 
Outstanding at December 31, 2022 (nonvested)115,809 16.66 
Schedule of Performance Units A summary of performance unit activity and changes for the year ended December 31, 2022, is presented below:
Performance UnitsUnits
Outstanding at January 1, 2022 (nonvested)76,719 
Granted10,698 
Vesting and transfer of common units to recipients(35,441)
Forfeited(9,124)
Outstanding at December 31, 2022 (nonvested)42,852 
v3.22.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Instruments [Abstract]  
Schedule of Long-term Debt Instruments
The carrying amounts of our long-term debt are as follows:
December 31,
2022		December 31,
2021
(In thousands)
Credit Agreement
Amount outstanding$668,000 $840,000 
 5% Senior Notes
Principal500,000 500,000 
Unamortized premium and debt issuance costs(5,953)(6,951)
494,047 493,049 
 6.375% Senior Notes
Principal400,000 — 
Unamortized premium and debt issuance costs(5,713)— 
394,287 — 
Total long-term debt$1,556,334 $1,333,049 
Schedule of Maturities of Long-term Debt
Maturities of our long-term debt are as follows as of December 31, 2022:
Years Ending December 31,(In thousands)
2023$— 
2024— 
2025668,000 
2026— 
2027400,000 
Thereafter500,000 
Total$1,568,000 
v3.22.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Future Contractual Obligations
At December 31, 2022, these minimum future contractual obligations and other miscellaneous obligations having terms in excess of one year are as follows:
        
Years Ending December 31,(In thousands)
2023$8,856 
20248,803 
20257,030 
20265,944 
20275,943 
Thereafter214,367 
Total$250,943 
v3.22.4
Net Income Per Limited Partner Unit (Tables)
 12 Months Ended
Dec. 31, 2022
Net Income per Limited Partner Unit [Abstract]  
Schedule of Net Income per Limited Partner Unit
Net income per limited partner unit is computed as follows:
Years Ended December 31,
202220212020
(In thousands, except per unit data)
Net income attributable to the partners$216,783 $214,946 $170,483 
Less: Participating securities’ share in earnings(408)(736)(387)
Net income attributable to common units216,375 214,210 170,096 
Weighted average limited partners' units outstanding122,298 105,440 105,440 
Limited partners' per unit interest in earnings - basic and diluted$1.77 $2.03 $1.61 
v3.22.4
Operating Segments (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information
Years Ended December 31,
202220212020
(In thousands)
Revenues:
Pipelines and terminals - affiliate$344,063 $301,731 $319,487 
Pipelines and terminals - third-party109,200 103,646 98,039 
Refinery processing units - affiliate94,217 89,118 80,322 
Total segment revenues$547,480 $494,495 $497,848 
Segment operating income:
Pipelines and terminals(1)
$202,908 $180,965 $176,611 
Refinery processing units34,857 38,172 38,314 
Total segment operating income237,765 219,137 214,925 
Unallocated general and administrative expenses(17,003)(12,637)(9,989)
Interest expense(82,560)(53,818)(59,424)
Interest income91,406 29,925 10,621 
Loss on early extinguishment of debt— — (25,915)
Equity in earnings (losses) of unconsolidated affiliates(260)12,432 6,647 
Gain on sales-type leases— 24,677 33,834 
Gain on sale of assets and other668 6,179 8,691 
Income before income taxes$230,016 $225,895 $179,390 
Capital Expenditures:
Pipelines and terminals$33,071 $87,756 $59,108 
Refinery processing units5,893 2,239 175 
Total capital expenditures$38,964 $89,995 $59,283 
December 31, 2022December 31, 2021
(In thousands)
Identifiable assets:
Pipelines and terminals(2)
$2,152,159 $1,737,388 
Refinery processing units304,332 294,452 
Other291,011 134,027 
Total identifiable assets$2,747,502 $2,165,867 
(1)Pipelines and terminals segment operating income included goodwill impairment charges of $11.0 million and $35.7 million for the years ended December 31, 2021 and December 31, 2020, respectively.
(2)Includes goodwill of $342.8 million and $223.7 million as of December 31, 2022 and 2021, respectively.
v3.22.4
Supplemental Guarantor / Non-Guarantor Financial Information (Tables)
 12 Months Ended
Dec. 31, 2022
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]  
Schedule of Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet
December 31, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$4,316 $4,454 $2,147 $— $10,917 
Accounts receivable— 79,689 1,453 (1,339)79,803 
Prepaid and other current assets256 12,141 356 (356)12,397 
Total current assets4,572 96,284 3,956 (1,695)103,117 
Properties and equipment, net— 1,388,888 — — 1,388,888 
Operating lease right-of-use assets— 2,317 — — 2,317 
Net investment in leases— 539,705 101,871 (101,871)539,705 
Investment in subsidiaries2,432,767 69,754 — (2,502,521)— 
Intangible assets, net— 59,300 — — 59,300 
Goodwill— 342,762 — — 342,762 
Equity method investments— 235,858 34,746 — 270,604 
Deferred turnaround costs24,154 — — 24,154 
Other assets5,865 10,790 — — 16,655 
Total assets$2,443,204 $2,769,812 $140,573 $(2,606,087)$2,747,502 
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable$— $43,303 $545 $(1,339)$42,509 
Accrued interest17,992 — — — 17,992 
Deferred revenue— 12,087 — — 12,087 
Accrued property taxes— 5,449 — — 5,449 
Current operating lease liabilities— 968 — — 968 
Current finance lease liabilities— 6,560 — (2,171)4,389 
Other current liabilities117 1,793 520 — 2,430 
Total current liabilities18,109 70,160 1,065 (3,510)85,824 
Long-term debt1,556,334 — — — 1,556,334 
Noncurrent operating lease liabilities— 1,720 — — 1,720 
Noncurrent finance lease liabilities— 150,935 — (88,422)62,513 
Other long-term liabilities— 29,111 — — 29,111 
Deferred revenue— 24,613 — — 24,613 
Class B unit— 60,507 — — 60,507 
Equity - partners868,760 2,432,767 69,754 (2,514,155)857,126 
Equity - noncontrolling interests— 69,754 — 69,754 
Total liabilities and partners’ equity$2,443,203 $2,769,813 $140,573 $(2,606,087)$2,747,502 
Condensed Consolidating Balance Sheet
December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
ASSETS
Current assets:
Cash and cash equivalents$1,273 $4,227 $8,881 $— $14,381 
Accounts receivable— 68,768 2,833 (2,702)68,899 
Prepaid and other current assets353 10,680 304 (304)11,033 
Total current assets1,626 83,675 12,018 (3,006)94,313 
Properties and equipment, net— 1,329,028 — — 1,329,028 
Operating lease right-of-use assets— 2,275 — — 2,275 
Net investment in leases— 309,301 100,032 (100,030)309,303 
Investment in subsidiaries1,785,024 70,437 — (1,855,461)— 
Intangible assets, net— 73,307 — — 73,307 
Goodwill— 223,650 — — 223,650 
Equity method investments— 78,873 37,505 — 116,378 
Deferred turnaround costs— 2,632 — — 2,632 
Other assets8,118 6,863 — — 14,981 
Total assets$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities:
Accounts payable$— $34,566 $8,416 $(2,702)$40,280 
Accrued interest11,258 — — — 11,258 
Deferred revenue— 14,585 — — 14,585 
Accrued property taxes— 4,542 — — 4,542 
Current operating lease liabilities— 620 — — 620 
Current finance lease liabilities— 5,566 — (1,780)3,786 
Other current liabilities3 1,513 265 — 1,781 
Total current liabilities11,261 61,392 8,681 (4,482)76,852 
Long-term debt1,333,049 — — — 1,333,049 
Noncurrent operating lease liabilities— 2,030 — — 2,030 
Noncurrent finance lease liabilities— 156,102 — (91,453)64,649 
Other long-term liabilities340 12,187 — — 12,527 
Deferred revenue— 29,662 — — 29,662 
Class B unit— 56,549 — — 56,549 
Equity - partners450,118 1,785,024 70,437 (1,862,562)443,017 
Equity - noncontrolling interests— 77,095 70,437 — 147,532 
Total liabilities and partners’ equity$1,794,768 $2,180,041 $149,555 $(1,958,497)$2,165,867 
Schedule of Condensed Consolidating Statement of Income Condensed Consolidating Statement of Income
Year Ended December 31, 2022ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $438,280 $— $— $438,280 
Third parties— 109,200 — — 109,200 
— 547,480 — — 547,480 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 206,945 3,678 — 210,623 
Depreciation and amortization— 99,092 — — 99,092 
General and administrative3,777 13,226 — — 17,003 
3,777 319,263 3,678 — 326,718 
Operating income (loss)(3,777)228,217 (3,678)— 220,762 
Equity in earnings of subsidiaries299,319 8,071 — (307,390)— 
Equity in earnings of equity method investments— (3,585)3,325 — (260)
Interest expense(78,759)(20,296)— 16,495 (82,560)
Interest income— 91,406 16,495 (16,495)91,406 
Gain on sale of assets and other— 668 — — 668 
220,560 76,264 19,820 (307,390)9,254 
Income (loss) before income taxes216,783 304,481 16,142 (307,390)230,016 
State income tax expense— (111)— — (111)
Net income (loss)216,783 304,370 16,142 (307,390)229,905 
Allocation of net income attributable to noncontrolling interests
— (5,051)(8,071)— (13,122)
Net income (loss) attributable to the Partnership
216,783 299,319 8,071 (307,390)216,783 
Condensed Consolidating Statement of Income
Year Ended December 31, 2021ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $390,849 $— $— $390,849 
Third parties— 103,646 — — 103,646 
— 494,495 — — 494,495 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 167,832 2,692 — 170,524 
Depreciation and amortization— 93,800 — — 93,800 
General and administrative3,647 8,990 — — 12,637 
Goodwill Impairment— 11,034 — — 11,034 
3,647 281,656 2,692 — 287,995 
Operating income (loss)(3,647)212,839 (2,692)— 206,500 
Equity in earnings of subsidiaries275,558 2,532 — (278,090)— 
Equity in earnings of equity method investments— 8,897 3,535 — 12,432 
Interest income— 29,925 4,220 (4,220)29,925 
Interest expense(49,864)(8,174)— 4,220 (53,818)
Gain on sales-type lease— 31,778 — (7,101)24,677 
Gain on sale of assets and other— 6,179 — — 6,179 
225,694 71,137 7,755 (285,191)19,395 
Income (loss) before income taxes222,047 283,976 5,063 (285,191)225,895 
State income tax expense— (32)— — (32)
Net income (loss)222,047 283,944 5,063 (285,191)225,863 
Allocation of net income attributable to noncontrolling interests
— (8,386)(2,531)— (10,917)
Net income (loss) attributable to the Partnership
222,047 275,558 2,532 (285,191)214,946 
Condensed Consolidating Statement of Income
Year Ended December 31, 2020ParentGuarantor
Restricted Subsidiaries		Non-Guarantor Non-Restricted SubsidiariesEliminationsConsolidated
 (In thousands)
Revenues:
Affiliates$— $399,809 $— $— $399,809 
Third parties— 98,039 — — 98,039 
— 497,848 — — 497,848 
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)
— 146,585 1,107 — 147,692 
Depreciation and amortization— 99,578 — — 99,578 
General and administrative3,227 6,762 — — 9,989 
Goodwill Impairment— 35,653 — — 35,653 
3,227 288,578 1,107 — 292,912 
Operating income (loss)(3,227)209,270 (1,107)— 204,936 
Equity in earnings (loss) of subsidiaries254,608 219 — (254,827)— 
Equity in earnings of equity method investments— 5,105 1,542 — 6,647 
Interest income26 10,592 3 — 10,621 
Interest expense(55,298)(4,126)— — (59,424)
Gain on sales-type lease— 33,834 — — 33,834 
Loss on extinguishment of debt(25,915)— — — (25,915)
Gain on sale of assets and other289 8,402 — — 8,691 
173,710 54,026 1,545 (254,827)(25,546)
Income (loss) before income taxes170,483 263,296 438 (254,827)179,390 
State income tax expense— (167)— — (167)
Net income (loss)170,483 263,129 438 (254,827)179,223 
Allocation of net income attributable to noncontrolling interests
— (8,521)(219)— (8,740)
Net income (loss) attributable to the Partnership
170,483 254,608 219 (254,827)170,483 
v3.22.4
Description of Business and Summary of Significant Accounting Policies - Narrative (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 14, 2022
USD ($)
shares
Apr. 01, 2021
USD ($)
Jan. 01, 2021
USD ($)
renewalOption
Mar. 31, 2021
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2022
USD ($)
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Lease term     10 years          
Lease renewal period options | renewalOption     2          
Lease renewal option period     5 years          
Annual lease payment due     $ 5,000          
Service fee arrangement period     5 years          
Payment due for termination of commitment     $ 10,000          
Gross proceeds from sale of assets           $ 279 $ 7,365 $ 1,089
Gain on sale of assets           $ 209 5,567 1,015
Number of reportable segments | segment           2    
Goodwill impairment         $ 35,700 $ 0 11,034 35,653
Asset retirement obligation           $ 10,500 8,700  
Factor compound rate           7.00%    
Carrying value of Class B units           $ 60,507 56,549  
Deficiency payments billed in prior periods           4,200 500 700
Shortfall Billing                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Recognition of deficiency payments in revenue           $ 21,100 $ 17,500 $ 20,800
UNEV Pipeline, LLC                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Interest percentage owned in UNEV earnings           50.00%    
Cheyenne Pipeline LLC                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Goodwill impairment       $ 11,000        
156-mile, 6-inch Refined Product Pipeline                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Gross proceeds from sale of assets   $ 7,000            
Gain on sale of assets   $ 5,300            
Terminal Facilities and Tankage | Minimum                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           15 years    
Terminal Facilities and Tankage | Maximum                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           25 years    
Pipelines | Minimum                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           25 years    
Pipelines | Maximum                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           30 years    
Refinery Processing Units                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           25 years    
Corporate and Other Assets | Minimum                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           3 years    
Corporate and Other Assets | Maximum                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Estimated useful lives of assets           10 years    
Osage                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Equity method investment, ownership percentage           50.00%    
Cheyenne Pipeline LLC                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Equity method investment, ownership percentage           50.00%    
Cushing Connect Pipeline & Terminal LLC                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Equity method investment, ownership percentage           50.00%    
Saddle Butte Pipeline III, LLC                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Equity method investment, ownership percentage 25.06%         25.06%    
Pioneer Investments Corp.                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Equity method investment, ownership percentage 49.995%         49.995%    
UNEV Pipeline, LLC                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Equity method investment, ownership percentage           75.00%    
Remaining ownership interest acquired 0.25              
UNEV acquisition, contingent consideration           $ 40,000    
Sinclair Merger                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Units issued in transaction (in shares) | shares 21,000,000              
Value of shares issued in transaction $ 349,020              
Transaction cash considerations transferred $ 328,955              
Sinclair Merger | REH Company                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Units issued in transaction (in shares) | shares 21,000,000              
Percentage of pro forma equity representing shares issued in transaction 0.166              
Value of shares issued in transaction $ 349,000              
Transaction cash considerations transferred 329,000              
Aggregate consideration paid in transaction $ 677,975              
Shares held in escrow (in shares) | shares 5,290,000              
HF Sinclair                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Percentage of ownership in variable interest entity           47.00%    
HF Sinclair | Sinclair Merger | REH Company                
Description of Business and Summary of Significant Accounting Policies [Line Items]                
Units issued in transaction (in shares) | shares 60,230,036              
Percentage of pro forma equity representing shares issued in transaction 0.27              
Value of shares issued in transaction $ 2,149,000              
v3.22.4
Description of Business and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Goodwill $ 389,448 $ 270,336
Accumulated impairment losses (46,686) (46,686)
Total goodwill $ 342,762 $ 223,650
v3.22.4
Description of Business and Summary of Significant Accounting Policies - Schedule of Equity Method Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]    
Underlying Equity $ 171,655 $ 90,756
Recorded Investment Balance 270,604 116,378
Difference (98,949) (25,622)
Osage Pipe Line Company, LLC    
Schedule of Equity Method Investments [Line Items]    
Underlying Equity 2,901 9,996
Recorded Investment Balance 29,773 37,782
Difference (26,872) (27,786)
Cheyenne Pipeline LLC    
Schedule of Equity Method Investments [Line Items]    
Underlying Equity 27,655 28,557
Recorded Investment Balance 40,019 41,091
Difference (12,364) (12,534)
Cushing Connect Terminal Holdings LLC    
Schedule of Equity Method Investments [Line Items]    
Underlying Equity 49,915 52,203
Recorded Investment Balance 34,746 37,505
Difference 15,169 $ 14,698
Pioneer Investments Corp.    
Schedule of Equity Method Investments [Line Items]    
Underlying Equity 23,835  
Recorded Investment Balance 133,182  
Difference (109,347)  
Saddle Butte Pipeline III, LLC    
Schedule of Equity Method Investments [Line Items]    
Underlying Equity 67,349  
Recorded Investment Balance 32,884  
Difference $ 34,465  
v3.22.4
Sinclair Acquisition - Narrative (Details)
$ in Thousands, bbl in Millions
 10 Months Ended 12 Months Ended
Mar. 14, 2022
USD ($)
terminal
nomination
mi
shares
bbl
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Business Acquisition [Line Items]        
Goodwill   $ 342,762 $ 342,762 $ 223,650
Saddle Butte Pipeline III, LLC        
Business Acquisition [Line Items]        
Equity method investment, ownership percentage 25.06% 25.06% 25.06%  
Pioneer Investments Corp.        
Business Acquisition [Line Items]        
Equity method investment, ownership percentage 49.995% 49.995% 49.995%  
UNEV Pipeline, LLC        
Business Acquisition [Line Items]        
Equity method investment, ownership percentage   75.00% 75.00%  
Remaining ownership interest acquired 0.25      
REH Company        
Business Acquisition [Line Items]        
Number of nominations to the Board of Directors | nomination 1      
Sinclair Merger        
Business Acquisition [Line Items]        
Units issued in transaction (in shares) | shares 21,000,000      
Value of shares issued in transaction $ 349,020      
Transaction cash considerations transferred $ 328,955      
Size of pipeline | mi 1,200      
Number of product terminals | terminal 8      
Number of crude terminals | terminal 2      
Barrels of crude oil, value | bbl 4.5      
Goodwill $ 119,112      
Revenue from acquiree   $ 28,300    
Interest income from sales-type leases from acquiree   52,000    
Income from operations from acquiree   $ 58,100    
Incremental acquisition and integration costs     $ 2,400  
Sinclair Merger | REH Company        
Business Acquisition [Line Items]        
Ownership threshold of units under agreement (in shares) | shares 10,500,000      
Ownership percentage threshold under agreement (in shares) 0.05      
Sinclair Merger | REH Company        
Business Acquisition [Line Items]        
Units issued in transaction (in shares) | shares 21,000,000      
Percentage of pro forma equity representing shares issued in transaction 0.166      
Value of shares issued in transaction $ 349,000      
Transaction cash considerations transferred 329,000      
Aggregate consideration paid in transaction $ 677,975      
Units issued in transaction, restricted to lock-up period (in shares) | shares 15,750,000      
Sinclair Merger | REH Company | HF Sinclair        
Business Acquisition [Line Items]        
Units issued in transaction (in shares) | shares 60,230,036      
Percentage of pro forma equity representing shares issued in transaction 0.27      
Value of shares issued in transaction $ 2,149,000      
v3.22.4
Sinclair Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Sinclair Merger
$ / shares in Units, $ in Thousands
Mar. 14, 2022
USD ($)
$ / shares
shares
Business Acquisition [Line Items]  
HEP Common units issued (in shares) | shares 21,000,000
Closing price per unit of HEP common units (in USD per share) | $ / shares $ 16.62
Purchase consideration paid in HEP common units $ 349,020
Cash consideration paid by HEP 325,000
Working capital adjustment payment by HEP 3,955
Total cash consideration $ 328,955
v3.22.4
Sinclair Acquisition - Schedule of Purchase Consideration (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Mar. 14, 2022
Dec. 31, 2021
Assets Acquired      
Goodwill $ 342,762   $ 223,650
Sinclair Merger      
Assets Acquired      
Accounts receivable   $ 3,005  
Prepaid and other current assets   59  
Properties and equipment   340,682  
Operating lease right-of-use assets   105  
Other assets   3,500  
Goodwill   119,112  
Equity method investments   229,891  
Total assets acquired   696,354  
Liabilities Assumed      
Accounts payable   1,528  
Accrued property taxes   973  
Other current liabilities   789  
Operating lease liabilities   33  
Noncurrent operating lease liabilities   72  
Other long-term liabilities   14,984  
Total liabilities assumed   18,379  
Net assets acquired   $ 677,975  
v3.22.4
Sinclair Acquisition - Schedule of Pro Forma Information (Details) - Sinclair Merger - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Sales and other revenues $ 562,242 $ 565,115
Net income attributable to the partners $ 218,006 $ 240,509
v3.22.4
Investment in Joint Venture (Details) - Cushing Connect Joint Venture
bbl in Thousands, $ in Millions
Oct. 02, 2019
bbl
Dec. 31, 2022
USD ($)
Schedule of Equity Method Investments [Line Items]    
Pipeline volume (in barrels per day) | bbl 160  
Terminal storage (in barrels) | bbl 1,500  
Percent of budget which construction costs are payable by HEP   10.00%
Payment to acquire joint venture | $   $ 74
Maximum    
Schedule of Equity Method Investments [Line Items]    
Expected construction costs, exceeding budget by more than 10% | $   $ 5
v3.22.4
Revenues - Schedule of Disaggregated Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Disaggregated revenue $ 547,480 $ 494,495 $ 497,848
Pipelines      
Disaggregation of Revenue [Line Items]      
Disaggregated revenue 285,451 263,110 265,834
Terminals, tanks and loading racks      
Disaggregation of Revenue [Line Items]      
Disaggregated revenue 167,812 142,267 151,692
Refinery processing units      
Disaggregation of Revenue [Line Items]      
Disaggregated revenue $ 94,217 $ 89,118 $ 80,322
v3.22.4
Revenues - Schedule of Lease and Service Revenues (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue from External Customer [Line Items]      
Lease revenues $ 333,627 $ 336,062 $ 360,598
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Lease and service revenues Lease and service revenues Lease and service revenues
Lease and service revenues $ 547,480 $ 494,495 $ 497,848
Service revenues      
Revenue from External Customer [Line Items]      
Service revenues $ 213,853 $ 158,433 $ 137,250
v3.22.4
Revenues - Schedule of Contract Asset and Liability Balances (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Contract assets $ 6,672 $ 6,637
Contract liabilities $ 0 $ (4,185)
v3.22.4
Revenues - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue from External Customer [Line Items]      
Revenue previously included in contract liability $ 4.2 $ 0.5 $ 0.7
Revenue included in contract assets 0.2 $ 0.3  
Performance obligation revenue $ 1,456.0    
Minimum      
Revenue from External Customer [Line Items]      
Payment terms under contracts with customers 10 days    
Maximum      
Revenue from External Customer [Line Items]      
Payment terms under contracts with customers 30 days    
v3.22.4
Revenues - Schedule of Future Performance Obligations (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 1,456
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 301
Satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 265
Satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 184
Satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 169
Satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 136
Satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unfulfilled performance obligation revenue $ 401
Satisfaction period
v3.22.4
Leases - Narrative (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
renewalOption
Dec. 31, 2021
USD ($)
Lessee, Lease, Description [Line Items]    
Finance lease term 10 years  
Cost of assets under finance leases $ 7,649 $ 6,031
Accumulated depreciation of assets under finance leases $ 3,979 $ 3,632
Number of renewal options | renewalOption 1  
Finance lease extension option term 10 years  
Minimum    
Lessee, Lease, Description [Line Items]    
Operating lease term 1 year  
Minimum | Vehicles    
Lessee, Lease, Description [Line Items]    
Finance lease term 33 months  
Maximum    
Lessee, Lease, Description [Line Items]    
Operating lease term 22 years  
Operating lease renewal term 10 years  
Maximum | Vehicles    
Lessee, Lease, Description [Line Items]    
Finance lease term 48 months  
v3.22.4
Leases - Supplemental Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Operating leases:    
Operating lease right-of-use assets, net $ 2,317 $ 2,275
Current operating lease liabilities 968 620
Noncurrent operating lease liabilities 1,720 2,030
Total operating lease liabilities 2,688 2,650
Finance leases:    
Properties and equipment 7,649 6,031
Accumulated amortization (3,979) (3,632)
Properties and equipment, net $ 3,670 $ 2,399
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Properties and equipment, net Properties and equipment, net
Current finance lease liabilities $ 4,389 $ 3,786
Noncurrent finance lease liabilities 62,513 64,649
Total finance lease liabilities $ 66,902 $ 68,435
Weighted average remaining lease term (in years)    
Operating leases 4 years 7 months 6 days 5 years 9 months 18 days
Finance leases 13 years 10 months 24 days 15 years
Weighted average discount rate    
Operating leases 4.60% 4.80%
Finance leases 5.70% 5.60%
v3.22.4
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows on operating leases $ 1,062 $ 1,142  
Operating cash flows on finance leases 4,255 4,104  
Financing cash flows on finance leases $ 3,743 $ 3,549 $ 3,602
v3.22.4
Leases - Operating and Finance Lease Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Operating    
2023 $ 1,028  
2024 608  
2025 491  
2026 326  
2027 205  
2027 and thereafter 318  
Total lease payments 2,976  
Less: Imputed interest (288)  
Total lease obligations 2,688 $ 2,650
Less: Current lease liabilities (968) (620)
Long-term lease liabilities 1,720 2,030
Finance    
2023 7,925  
2024 7,504  
2025 7,044  
2026 7,165  
2027 6,448  
2027 and thereafter 61,038  
Total lease payments 97,124  
Less: Imputed interest (30,222)  
Total lease obligations 66,902 68,435
Less: Current lease liabilities (4,389) (3,786)
Long-term lease liabilities $ 62,513 $ 64,649
v3.22.4
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating lease costs $ 1,048 $ 1,077
Amortization of assets 877 803
Interest on lease liabilities 3,797 3,953
Variable lease cost 471 215
Total net lease cost $ 6,193 $ 6,048
v3.22.4
Leases - Gain on Sales-Type Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Net investment in leases $ 234,736 $ 148,419  
Properties and equipment, net (234,736) (130,301)  
Deferred Revenue   6,559  
Gain on sales-type leases $ 0 $ 24,677 $ 33,834
v3.22.4
Leases - Schedule of Lease Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease revenues $ 310,968 $ 326,902  
Direct financing lease interest income 2,115 2,089  
Gain on sales-type leases 0 24,677 $ 33,834
Sales-type lease interest income 89,285 27,836  
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 22,659 $ 9,160  
v3.22.4
Leases - Schedule of Minimum Undiscounted Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Operating    
2023 $ 271,439  
2024 241,746  
2025 165,560  
2026 151,015  
2027 118,472  
Thereafter 346,975  
Total lease payment receipts 1,295,207  
Sales-type    
Net investment in leases 234,736 $ 148,419
Finance    
Finance and Sales-type    
2023 2,243  
2024 2,226  
2025 2,244  
2026 2,262  
2027 2,280  
Thereafter 34,940  
Total lease payment receipts 46,195  
Finance    
Less: Imputed interest (29,931)  
Finance lease receivables 16,264  
Unguaranteed residual assets at end of leases 0  
Net investment in leases 16,264  
Sales-type    
Finance and Sales-type    
2023 103,876  
2024 100,580  
2025 97,153  
2026 97,153  
2027 97,153  
Thereafter 820,234  
Total lease payment receipts 1,316,149  
Sales-type    
Less: Imputed interest (1,189,628)  
Sales-type lease receivables 126,521  
Unguaranteed residual assets at end of leases 402,934  
Net investment in leases $ 529,455  
v3.22.4
Leases - Net Investments in Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Sales-type Leases    
Lease receivables $ 418,989 $ 207,768
Unguaranteed residual assets 110,466 90,097
Net investment in leases 529,455 297,865
Direct Financing Leases    
Lease receivables 16,264 16,371
Unguaranteed residual assets 0 0
Net investment in leases $ 16,264 $ 16,371
v3.22.4
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Apr. 08, 2022
Dec. 31, 2021
5% Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Stated interest rate, senior notes 5.00%    
6.375% Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Stated interest rate, senior notes 6.375% 6.375%  
Carrying Value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities: $ 888,334   $ 493,049
Carrying Value | 6.375% Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities: 394,287   0
Carrying Value | Level 2 | 5% Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities: 494,047   493,049
Fair Value | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities: 852,658   502,705
Fair Value | Level 2 | 5% Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities: 458,090   502,705
Fair Value | Level 2 | 6.375% Senior Notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities: $ 394,568   $ 0
v3.22.4
Properties and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Properties and equipment, gross $ 2,184,809 $ 2,050,065  
Less accumulated depreciation (795,921) (721,037)  
Properties and equipment, net 1,388,888 1,329,028  
Depreciation expense 80,900 79,200 $ 85,000
Asset abandonment charges 100 1,100 $ 1,000
Pipelines, terminals and tankage      
Property, Plant and Equipment [Line Items]      
Properties and equipment, gross 1,567,359 1,527,697  
Refinery assets      
Property, Plant and Equipment [Line Items]      
Properties and equipment, gross 353,998 348,882  
Land and right of way      
Property, Plant and Equipment [Line Items]      
Properties and equipment, gross 171,327 98,837  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Properties and equipment, gross 23,027 26,446  
Other      
Property, Plant and Equipment [Line Items]      
Properties and equipment, gross $ 69,098 $ 48,203  
v3.22.4
Intangible Assets (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Intangible assets, gross $ 204,797,000 $ 204,797,000  
Less accumulated amortization (145,497,000) (131,490,000)  
Intangible assets, net 59,300,000 73,307,000  
Amortization expense 14,000,000 14,000,000 $ 14,000,000
Estimated amortization expense for 2023 9,900,000    
Estimated amortization expense for 2024 9,100,000    
Estimated amortization expense for 2025 9,100,000    
Estimated amortization expense for 2026 9,100,000    
Estimated amortization expense for 2027 9,100,000    
Basis in transportation agreements $ 0    
Delek transportation agreement      
Finite-Lived Intangible Assets [Line Items]      
Useful Life 30 years    
Intangible assets, gross $ 59,933,000 59,933,000  
HF Sinclair transportation agreements      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets, gross $ 75,131,000 75,131,000  
HF Sinclair transportation agreements | Minimum      
Finite-Lived Intangible Assets [Line Items]      
Useful Life 10 years    
HF Sinclair transportation agreements | Maximum      
Finite-Lived Intangible Assets [Line Items]      
Useful Life 15 years    
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Useful Life 10 years    
Intangible assets, gross $ 69,683,000 69,683,000  
Other      
Finite-Lived Intangible Assets [Line Items]      
Useful Life 20 years    
Intangible assets, gross $ 50,000 $ 50,000  
v3.22.4
Employees, Retirement and Incentive Plans - Retirement and Benefit Plan Costs (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
plan
component
shares
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Retirement and benefit costs $ 11.2 $ 8.7 $ 7.9
Retirement costs $ 4.9 3.7 3.4
Number of long-term incentive plan components | component 5    
Number of incentive-based award plans | plan 2    
Compensation costs $ 1.9 $ 2.6 $ 2.2
Long-term Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Units authorized to be granted (in shares) | shares 2,500,000    
Units not yet granted (in shares) | shares 773,014    
v3.22.4
Employees, Retirement and Incentive Plans - Phantom Units (Details) - Phantom Share Units (PSUs) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Units outstanding at beginning of period (in shares) 203,263    
Granted (in shares) 84,705    
Vesting and transfer of full ownership to recipients (in shares) (105,031)    
Forfeited (in shares) (67,128)    
Units outstanding at end of period (in shares) 115,809 203,263  
Weighted- Average Grant-Date Fair Value      
Units outstanding at beginning of period (in USD per share) $ 14.85    
Granted (in USD per share) 18.57    
Vesting and transfer of full ownership to recipients (in USD per share) 16.88 $ 18.93 $ 11.92
Forfeited (in USD per share) 13.26    
Units outstanding at end of period (in USD per share) $ 16.66 $ 14.85  
Grant date fair value of units vested and transferred $ 1.8 $ 2.1 $ 2.0
Unrecognized compensation related to nonvested units $ 1.3    
Weighted average recognition period 1 year 3 months 18 days    
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 1 year    
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 3 years    
v3.22.4
Employees, Retirement and Incentive Plans - Performance Units (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement, Nonvested [Roll Forward]      
Payments for repurchase of common units $ 1,727 $ 1,958 $ 698
Performance Shares      
Share-based Compensation Arrangement, Nonvested [Roll Forward]      
Units outstanding at beginning of period (in shares) 76,719    
Granted (in shares) 10,698    
Vesting and transfer of common units to recipients (in shares) (35,441)    
Forfeited (in shares) (9,124)    
Units outstanding at end of period (in shares) 42,852 76,719  
Grant date fair value of units vested and transferred $ 800 $ 400 $ 400
Value of performance units vested and expected to vest 700    
Unrecognized compensation related to nonvested units $ 500    
Weighted average recognition period 1 year 8 months 12 days    
Long-term Incentive Plan | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance period 3 years    
Range of performance units earned, minimum 0.00%    
Range of performance units earned, maximum 200.00%    
Share-based Compensation Arrangement, Nonvested [Roll Forward]      
Payments for repurchase of common units $ 1,700    
v3.22.4
Debt - Credit Agreement (Details) - USD ($)
Apr. 30, 2021
Mar. 31, 2021
Debt Instrument [Line Items]    
Maximum borrowing capacity under revolving credit agreement $ 1,200,000,000 $ 1,400,000,000
Line of credit maximum accordion feature 1,700,000,000  
Letter of Credit    
Debt Instrument [Line Items]    
Maximum borrowing capacity under revolving credit agreement $ 50,000,000  
v3.22.4
Debt - Senior Notes (Details) - USD ($)
 12 Months Ended
Apr. 08, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]        
Proceeds from issuance of senior notes   $ 400,000,000 $ 0 $ 500,000,000
6.375% Senior Notes        
Debt Instrument [Line Items]        
Aggregate principal amount of senior note $ 400,000,000      
Stated interest rate, senior notes 6.375% 6.375%    
Proceeds from issuance of senior notes $ 393,000,000      
5% Senior Notes        
Debt Instrument [Line Items]        
Aggregate principal amount of senior note   $ 500,000,000    
Stated interest rate, senior notes   5.00%    
v3.22.4
Debt - Long-Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Apr. 08, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Amount outstanding $ 668,000   $ 840,000
Total long-term debt 1,556,334   1,333,049
5% Senior Notes      
Debt Instrument [Line Items]      
Principal 500,000   500,000
Unamortized premium and debt issuance costs (5,953)   (6,951)
Senior notes $ 494,047   493,049
Stated interest rate, senior notes 5.00%    
6.375% Senior Notes      
Debt Instrument [Line Items]      
Principal $ 400,000   0
Unamortized premium and debt issuance costs (5,713)   0
Senior notes $ 394,287   $ 0
Stated interest rate, senior notes 6.375% 6.375%  
v3.22.4
Debt - Maturities by Year (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Long-Term Debt, Fiscal Year Maturity [Abstract]  
2023 $ 0
2024 0
2025 668,000
2026 0
2027 400,000
Thereafter 500,000
Total $ 1,568,000
v3.22.4
Commitments and Contingencies (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Long-term Purchase Commitment [Line Items]  
Lease payment receivable $ 1,295,207
Site Service Commitments  
Contractual Obligation, Fiscal Year Maturity [Abstract]  
2023 8,856
2024 8,803
2025 7,030
2026 5,944
2027 5,943
Thereafter 214,367
Total 250,943
Sublease Of Office Space  
Long-term Purchase Commitment [Line Items]  
Lease payment receivable $ 800
v3.22.4
Related Party Transactions (Details)
 12 Months Ended
Jan. 01, 2021
USD ($)
renewalOption
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Related Party Transaction [Line Items]        
Revenues:   $ 547,480,000 $ 494,495,000 $ 497,848,000
Accounts receivables due   63,459,000 56,154,000  
Accounts payable due   15,756,000 11,703,000  
Lease income   2,200,000 2,100,000 2,100,000
Gain on sales-type leases   0 24,677,000 33,834,000
Sales-type lease payments received   $ 91,600,000 $ 28,900,000 $ 9,500,000
Sales-Type Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]   Gain on sales-type leases Gain on sales-type leases Gain on sales-type leases
Lease term 10 years      
Lease renewal period options | renewalOption 2      
Lease renewal option period 5 years      
Annual lease payment due $ 5,000,000      
Service fee arrangement period 5 years      
Payment due for termination of commitment $ 10,000,000      
HF Sinclair        
Related Party Transaction [Line Items]        
Minimum annualized payments received   $ 452,600,000    
Administrative fee   4,500,000 $ 2,600,000 $ 2,600,000
Revenues:   438,300,000 390,800,000 399,800,000
Reimbursements for expense and capital projects   14,700,000 7,900,000 10,000,000
Distributions on common units   83,500,000 83,500,000 95,200,000
Accounts receivables due   63,500,000 56,200,000  
Accounts payable due   15,800,000 11,700,000  
Revenues including shortfall payments   400,000 400,000 500,000
Deferred revenue     4,100,000  
HF Sinclair | Annual Administrative Fee        
Related Party Transaction [Line Items]        
Administrative fee   5,000,000    
HF Sinclair | Monthly Transition Services Fee        
Related Party Transaction [Line Items]        
Administrative fee   62,500    
HF Sinclair | Reimbursements Paid        
Related Party Transaction [Line Items]        
Expense of employees supporting operations   $ 78,200,000 $ 61,200,000 $ 55,800,000
HF Sinclair | Revenue Benchmark | Revenue from Rights Concentration Risk        
Related Party Transaction [Line Items]        
Percentage of total revenue   80.00%    
v3.22.4
Partners' Equity Income Allocations and Cash Distributions (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jan. 20, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Limited Partners' Capital Account [Line Items]        
Partners' capital units held by controlling interest (in shares)   59,630,030    
Ownership percentage, controlling interest   47.00%    
Value of common units available to issue and sell under offering program   $ 200.0    
Total units issued under offering program (in shares)   2,413,153    
Proceeds from common unit issuance program   $ 82.3    
Units issued under offering program during the year (in shares)   0    
Number of days post quarter end cash is distributed   45 days    
Cash distributions   $ 170.0 $ 149.4 $ 174.4
Subsequent Event        
Limited Partners' Capital Account [Line Items]        
Cash distribution declared (in USD per share) $ 0.35      
v3.22.4
Net Income Per Limited Partner Unit (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net Income per Limited Partner Unit [Abstract]      
Net income attributable to the partners $ 216,783 $ 214,946 $ 170,483
Less: Participating securities’ share in earnings (408) (736) (387)
Net income attributable to common units $ 216,375 $ 214,210 $ 170,096
Weighted average limited partners’ units outstanding, basic (in shares) 122,298 105,440 105,440
Weighted average limited partners’ units outstanding, diluted (in shares) 122,298 105,440 105,440
Limited partners’ per unit interest in earnings— basic (in USD per share) $ 1.77 $ 2.03 $ 1.61
Limited partners’ per unit interest in earnings— diluted (in USD per share) $ 1.77 $ 2.03 $ 1.61
v3.22.4
Environmental (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Environmental Exit Cost [Line Items]      
Environmental remediation expense $ 2.0 $ 1.9 $ 1.6
Environmental Remediation Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] Operations (exclusive of depreciation and amortization) Operations (exclusive of depreciation and amortization) Operations (exclusive of depreciation and amortization)
Accrued environmental liabilities $ 19.5 $ 3.9  
Other Noncurrent Liabilities      
Environmental Exit Cost [Line Items]      
Accrued environmental liabilities $ 17.5 $ 2.4  
v3.22.4
Operating Segments (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
Dec. 31, 2022
USD ($)
segment
processingUnit
facility
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Segment Reporting Information [Line Items]        
Number of reportable segments | segment   2    
Revenues:   $ 547,480 $ 494,495 $ 497,848
Segment operating income:   220,762 206,500 204,936
Unallocated general and administrative expenses   (17,003) (12,637) (9,989)
Interest expense   (82,560) (53,818) (59,424)
Interest income   91,406 29,925 10,621
Loss on early extinguishment of debt   0 0 (25,915)
Equity in earnings (losses) of unconsolidated affiliates   (260) 12,432 6,647
Gain on sales-type lease   0 24,677 33,834
Gain on sale of assets and other   668 6,179 8,691
Income before income taxes   230,016 225,895 179,390
Capital Expenditures:   38,964 89,995 59,283
Identifiable assets:   2,747,502 2,165,867  
Goodwill impairment $ 35,700 0 11,034 35,653
Goodwill   342,762 223,650  
Affiliates        
Segment Reporting Information [Line Items]        
Revenues:   438,280 390,849 399,809
Third parties        
Segment Reporting Information [Line Items]        
Revenues:   109,200 103,646 98,039
Operating Segments        
Segment Reporting Information [Line Items]        
Revenues:   547,480 494,495 497,848
Segment operating income:   237,765 219,137 214,925
Other        
Segment Reporting Information [Line Items]        
Identifiable assets:   $ 291,011 134,027  
Refinery processing units        
Segment Reporting Information [Line Items]        
Number of refinery processing units | processingUnit   5    
Number of HF Sinclair refining facility locations | facility   2    
Revenues:   $ 94,217 89,118 80,322
Capital Expenditures:   5,893 2,239 175
Refinery processing units | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues:   94,217 89,118 80,322
Segment operating income:   34,857 38,172 38,314
Identifiable assets:   304,332 294,452  
Pipelines and terminals        
Segment Reporting Information [Line Items]        
Capital Expenditures:   33,071 87,756 59,108
Pipelines and terminals | Operating Segments        
Segment Reporting Information [Line Items]        
Segment operating income:   202,908 180,965 176,611
Identifiable assets:   2,152,159 1,737,388  
Pipelines and terminals | Operating Segments | Affiliates        
Segment Reporting Information [Line Items]        
Revenues:   344,063 301,731 319,487
Pipelines and terminals | Operating Segments | Third parties        
Segment Reporting Information [Line Items]        
Revenues:   $ 109,200 $ 103,646 $ 98,039
v3.22.4
Supplemental Guarantor / Non-Guarantor Financial Information - Narrative (Details)
Mar. 14, 2022
UNEV  
Other Ownership Interests [Line Items]  
Ownership interest percentage 1
v3.22.4
Supplemental Guarantor / Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 10,917 $ 14,381
Accounts receivable 79,803 68,899
Prepaid and other current assets 12,397 11,033
Total current assets 103,117 94,313
Properties and equipment, net 1,388,888 1,329,028
Operating lease right-of-use assets 2,317 2,275
Net investment in leases 539,705 309,303
Investment in subsidiaries 0 0
Intangible assets, net 59,300 73,307
Goodwill 342,762 223,650
Equity method investments 270,604 116,378
Deferred turnaround costs 24,154 2,632
Other assets 16,655 14,981
Total assets 2,747,502 2,165,867
Current liabilities:    
Accounts payable 42,509 40,280
Accrued interest 17,992 11,258
Deferred revenue 12,087 14,585
Accrued property taxes 5,449 4,542
Current operating lease liabilities 968 620
Current finance lease liabilities 4,389 3,786
Other current liabilities 2,430 1,781
Total current liabilities 85,824 76,852
Long-term debt 1,556,334 1,333,049
Noncurrent operating lease liabilities 1,720 2,030
Noncurrent finance lease liabilities 62,513 64,649
Other long-term liabilities 29,111 12,527
Deferred revenue 24,613 29,662
Class B unit 60,507 56,549
Equity - partners 857,126 443,017
Equity - noncontrolling interests 69,754 147,532
Total liabilities and equity 2,747,502 2,165,867
Reportable Legal Entities | Parent    
Current assets:    
Cash and cash equivalents 4,316 1,273
Accounts receivable 0 0
Prepaid and other current assets 256 353
Total current assets 4,572 1,626
Properties and equipment, net 0 0
Operating lease right-of-use assets 0 0
Net investment in leases 0 0
Investment in subsidiaries 2,432,767 1,785,024
Intangible assets, net 0 0
Goodwill 0 0
Equity method investments 0 0
Deferred turnaround costs 0
Other assets 5,865 8,118
Total assets 2,443,204 1,794,768
Current liabilities:    
Accounts payable 0 0
Accrued interest 17,992 11,258
Deferred revenue 0 0
Accrued property taxes 0 0
Current operating lease liabilities 0 0
Current finance lease liabilities 0 0
Other current liabilities 117 3
Total current liabilities 18,109 11,261
Long-term debt 1,556,334 1,333,049
Noncurrent operating lease liabilities 0 0
Noncurrent finance lease liabilities 0 0
Other long-term liabilities 0 340
Deferred revenue 0 0
Class B unit 0 0
Equity - partners 868,760 450,118
Equity - noncontrolling interests 0 0
Total liabilities and equity 2,443,203 1,794,768
Reportable Legal Entities | Guarantor Restricted Subsidiaries    
Current assets:    
Cash and cash equivalents 4,454 4,227
Accounts receivable 79,689 68,768
Prepaid and other current assets 12,141 10,680
Total current assets 96,284 83,675
Properties and equipment, net 1,388,888 1,329,028
Operating lease right-of-use assets 2,317 2,275
Net investment in leases 539,705 309,301
Investment in subsidiaries 69,754 70,437
Intangible assets, net 59,300 73,307
Goodwill 342,762 223,650
Equity method investments 235,858 78,873
Deferred turnaround costs 24,154 2,632
Other assets 10,790 6,863
Total assets 2,769,812 2,180,041
Current liabilities:    
Accounts payable 43,303 34,566
Accrued interest 0 0
Deferred revenue 12,087 14,585
Accrued property taxes 5,449 4,542
Current operating lease liabilities 968 620
Current finance lease liabilities 6,560 5,566
Other current liabilities 1,793 1,513
Total current liabilities 70,160 61,392
Long-term debt 0 0
Noncurrent operating lease liabilities 1,720 2,030
Noncurrent finance lease liabilities 150,935 156,102
Other long-term liabilities 29,111 12,187
Deferred revenue 24,613 29,662
Class B unit 60,507 56,549
Equity - partners 2,432,767 1,785,024
Equity - noncontrolling interests 77,095
Total liabilities and equity 2,769,813 2,180,041
Reportable Legal Entities | Non-Guarantor Non-Restricted Subsidiaries    
Current assets:    
Cash and cash equivalents 2,147 8,881
Accounts receivable 1,453 2,833
Prepaid and other current assets 356 304
Total current assets 3,956 12,018
Properties and equipment, net 0 0
Operating lease right-of-use assets 0 0
Net investment in leases 101,871 100,032
Investment in subsidiaries 0 0
Intangible assets, net 0 0
Goodwill 0 0
Equity method investments 34,746 37,505
Deferred turnaround costs 0 0
Other assets 0 0
Total assets 140,573 149,555
Current liabilities:    
Accounts payable 545 8,416
Accrued interest 0 0
Deferred revenue 0 0
Accrued property taxes 0 0
Current operating lease liabilities 0 0
Current finance lease liabilities 0 0
Other current liabilities 520 265
Total current liabilities 1,065 8,681
Long-term debt 0 0
Noncurrent operating lease liabilities 0 0
Noncurrent finance lease liabilities 0 0
Other long-term liabilities 0 0
Deferred revenue 0 0
Class B unit 0 0
Equity - partners 69,754 70,437
Equity - noncontrolling interests 69,754 70,437
Total liabilities and equity 140,573 149,555
Eliminations    
Current assets:    
Cash and cash equivalents 0 0
Accounts receivable (1,339) (2,702)
Prepaid and other current assets (356) (304)
Total current assets (1,695) (3,006)
Properties and equipment, net 0 0
Operating lease right-of-use assets 0 0
Net investment in leases (101,871) (100,030)
Investment in subsidiaries (2,502,521) (1,855,461)
Intangible assets, net 0 0
Goodwill 0 0
Equity method investments 0 0
Deferred turnaround costs 0 0
Other assets 0 0
Total assets (2,606,087) (1,958,497)
Current liabilities:    
Accounts payable (1,339) (2,702)
Accrued interest 0 0
Deferred revenue 0 0
Accrued property taxes 0 0
Current operating lease liabilities 0 0
Current finance lease liabilities (2,171) (1,780)
Other current liabilities 0 0
Total current liabilities (3,510) (4,482)
Long-term debt 0 0
Noncurrent operating lease liabilities 0 0
Noncurrent finance lease liabilities (88,422) (91,453)
Other long-term liabilities 0 0
Deferred revenue 0 0
Class B unit 0 0
Equity - partners (2,514,155) (1,862,562)
Equity - noncontrolling interests 0 0
Total liabilities and equity $ (2,606,087) $ (1,958,497)
v3.22.4
Supplemental Guarantor / Non-Guarantor Financial Information - Statement of Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues:        
Revenues:   $ 547,480 $ 494,495 $ 497,848
Operating costs and expenses:        
Operations (exclusive of depreciation and amortization)   210,623 170,524 147,692
Depreciation and amortization   99,092 93,800 99,578
General and administrative   17,003 12,637 9,989
Goodwill impairment $ 35,700 0 11,034 35,653
Total operating costs and expenses   326,718 287,995 292,912
Operating income   220,762 206,500 204,936
Equity in earnings of subsidiaries   0 0 0
Equity in earnings (losses) of equity method investments   (260) 12,432 6,647
Interest expense   (82,560) (53,818) (59,424)
Interest income   91,406 29,925 10,621
Gain on sales-type lease   0 24,677 33,834
Loss on early extinguishment of debt   0 0 (25,915)
Gain on sale of assets and other   668 6,179 8,691
Total other income (expense)   9,254 19,395 (25,546)
Income before income taxes   230,016 225,895 179,390
State income tax expense   (111) (32) (167)
Net income   229,905 225,863 179,223
Allocation of net income attributable to noncontrolling interests   (13,122) (10,917) (8,740)
Net income attributable to the partners   216,783 214,946 170,483
Affiliates        
Revenues:        
Revenues:   438,280 390,849 399,809
Third parties        
Revenues:        
Revenues:   109,200 103,646 98,039
Parent        
Operating costs and expenses:        
Loss on early extinguishment of debt       (25,915)
Guarantor Restricted Subsidiaries        
Operating costs and expenses:        
Loss on early extinguishment of debt       0
Non-Guarantor Non-Restricted Subsidiaries        
Operating costs and expenses:        
Loss on early extinguishment of debt       0
Reportable Legal Entities | Parent        
Revenues:        
Revenues:   0 0 0
Operating costs and expenses:        
Operations (exclusive of depreciation and amortization)   0 0 0
Depreciation and amortization   0 0 0
General and administrative   3,777 3,647 3,227
Goodwill impairment     0 0
Total operating costs and expenses   3,777 3,647 3,227
Operating income   (3,777) (3,647) (3,227)
Equity in earnings of subsidiaries   299,319 275,558 254,608
Equity in earnings (losses) of equity method investments   0 0 0
Interest expense   (78,759) (49,864) (55,298)
Interest income   0 0 26
Gain on sales-type lease     0 0
Gain on sale of assets and other   0 0 289
Total other income (expense)   220,560 225,694 173,710
Income before income taxes   216,783 222,047 170,483
State income tax expense   0 0 0
Net income   216,783 222,047 170,483
Allocation of net income attributable to noncontrolling interests   0 0 0
Net income attributable to the partners   216,783 222,047 170,483
Reportable Legal Entities | Parent | Affiliates        
Revenues:        
Revenues:   0 0 0
Reportable Legal Entities | Parent | Third parties        
Revenues:        
Revenues:   0 0 0
Reportable Legal Entities | Guarantor Restricted Subsidiaries        
Revenues:        
Revenues:   547,480 494,495 497,848
Operating costs and expenses:        
Operations (exclusive of depreciation and amortization)   206,945 167,832 146,585
Depreciation and amortization   99,092 93,800 99,578
General and administrative   13,226 8,990 6,762
Goodwill impairment     11,034 35,653
Total operating costs and expenses   319,263 281,656 288,578
Operating income   228,217 212,839 209,270
Equity in earnings of subsidiaries   8,071 2,532 219
Equity in earnings (losses) of equity method investments   (3,585) 8,897 5,105
Interest expense   (20,296) (8,174) (4,126)
Interest income   91,406 29,925 10,592
Gain on sales-type lease     31,778 33,834
Gain on sale of assets and other   668 6,179 8,402
Total other income (expense)   76,264 71,137 54,026
Income before income taxes   304,481 283,976 263,296
State income tax expense   (111) (32) (167)
Net income   304,370 283,944 263,129
Allocation of net income attributable to noncontrolling interests   (5,051) (8,386) (8,521)
Net income attributable to the partners   299,319 275,558 254,608
Reportable Legal Entities | Guarantor Restricted Subsidiaries | Affiliates        
Revenues:        
Revenues:   438,280 390,849 399,809
Reportable Legal Entities | Guarantor Restricted Subsidiaries | Third parties        
Revenues:        
Revenues:   109,200 103,646 98,039
Reportable Legal Entities | Non-Guarantor Non-Restricted Subsidiaries        
Revenues:        
Revenues:   0 0 0
Operating costs and expenses:        
Operations (exclusive of depreciation and amortization)   3,678 2,692 1,107
Depreciation and amortization   0 0 0
General and administrative   0 0 0
Goodwill impairment     0 0
Total operating costs and expenses   3,678 2,692 1,107
Operating income   (3,678) (2,692) (1,107)
Equity in earnings of subsidiaries   0 0 0
Equity in earnings (losses) of equity method investments   3,325 3,535 1,542
Interest expense   0 0 0
Interest income   16,495 4,220 3
Gain on sales-type lease     0 0
Gain on sale of assets and other   0 0  
Total other income (expense)   19,820 7,755 1,545
Income before income taxes   16,142 5,063 438
State income tax expense   0 0 0
Net income   16,142 5,063 438
Allocation of net income attributable to noncontrolling interests   (8,071) (2,531) (219)
Net income attributable to the partners   8,071 2,532 219
Reportable Legal Entities | Non-Guarantor Non-Restricted Subsidiaries | Affiliates        
Revenues:        
Revenues:   0 0 0
Reportable Legal Entities | Non-Guarantor Non-Restricted Subsidiaries | Third parties        
Revenues:        
Revenues:   0 0 0
Eliminations        
Revenues:        
Revenues:   0 0 0
Operating costs and expenses:        
Operations (exclusive of depreciation and amortization)   0 0 0
Depreciation and amortization   0 0 0
General and administrative   0 0 0
Goodwill impairment     0 0
Total operating costs and expenses   0 0 0
Operating income   0 0 0
Equity in earnings of subsidiaries   (307,390) (278,090) (254,827)
Equity in earnings (losses) of equity method investments   0 0 0
Interest expense   16,495 4,220 0
Interest income   (16,495) (4,220) 0
Gain on sales-type lease     (7,101) 0
Loss on early extinguishment of debt       0
Gain on sale of assets and other   0 0 0
Total other income (expense)   (307,390) (285,191) (254,827)
Income before income taxes   (307,390) (285,191) (254,827)
State income tax expense   0 0 0
Net income   (307,390) (285,191) (254,827)
Allocation of net income attributable to noncontrolling interests   0 0 0
Net income attributable to the partners   (307,390) (285,191) (254,827)
Eliminations | Affiliates        
Revenues:        
Revenues:   0 0 0
Eliminations | Third parties        
Revenues:        
Revenues:   $ 0 $ 0 $ 0
v3.22.4
Osage Pipeline (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Unusual or Infrequent Item, or Both [Line Items]        
Reduction of equity in earnings of equity method investments   $ 260 $ (12,432) $ (6,647)
Osage        
Unusual or Infrequent Item, or Both [Line Items]        
Equity method investment, ownership percentage 50.00% 50.00%    
Osage | Crude Oil Release Environmental Remediation And Recovery        
Unusual or Infrequent Item, or Both [Line Items]        
Reduction of equity in earnings of equity method investments   $ 17,600    
Insurance proceeds received $ 3,000      
Remaining insurance coverage $ 9,500