INVESTOR PRESENTATION
JANUARY 2018
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Holly Energy Partners (NYSE: HEP) 2
Safe Harbor Disclosure Statement
Statements made during the course of this presentation that are not historical facts are “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and
necessarily involve risks that may affect the business prospects and performance of HollyFrontier Corporation and/or Holly Energy
Partners, L.P., and actual results may differ materially from those discussed during the presentation. Such risks and uncertainties
include but are not limited to risks and uncertainties with respect to the actions of actual or potential competitive suppliers and
transporters of refined petroleum products in HollyFrontier’s and Holly Energy Partners’ markets, the demand for and supply of crude
oil and refined products, the spread between market prices for refined products and market prices for crude oil, the possibility of
constraints on the transportation of refined products, the possibility of inefficiencies or shutdowns in refinery operations or pipelines,
effects of governmental regulations and policies, the availability and cost of financing to HollyFrontier and Holly Energy Partners, the
effectiveness of HollyFrontier’s and Holly Energy Partners’ capital investments and marketing strategies, HollyFrontier's and Holly
Energy Partners’ efficiency in carrying out construction projects, HollyFrontier's ability to acquire refined product operations or
pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations, the possibility of
terrorist attacks and the consequences of any such attacks, and general economic conditions. Additional information on risks and
uncertainties that could affect the business prospects and performance of HollyFrontier and Holly Energy Partners is provided in the
most recent reports of HollyFrontier and Holly Energy Partners filed with the Securities and Exchange Commission. All forward-
looking statements included in this presentation are expressly qualified in their entirety by the foregoing cautionary statements. The
forward-looking statements speak only as of the date hereof and, other than as required by law, HollyFrontier and Holly Energy
Partners undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Holly Energy Partners (NYSE: HEP) 3
Holly Energy Partners
A system of petroleum product and crude
pipelines, storage tanks, distribution
terminals, loading racks and processing
units located at or near HFC’s refining
assets in high growth markets
• Revenues are nearly 100% fee-based with
limited commodity risk
• Major refiner customers have entered into
long-term contracts
• Contracts require minimum payment
obligations for volume and/or revenue
commitments
• Over 80% of revenues tied to long term
contracts and minimum commitments
• Earliest contract up for renewal in 2019
(approx. 17% of total commitments)
• 52 consecutive quarterly distribution
increases since IPO in 2004
• Target 1.0-1.2x distribution coverage
1Distributions are split adjusted reflecting HEP’s January 2013 two-for-one unit split.
$0
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W
T
I Pri
ce
Di
s
trib
u
ti
o
n
Consistent Distribution Growth Despite Crude Price
Volatility
DPU*
WTI
Holly Energy Partners (NYSE: HEP) 4
HollyFrontier and Holly Energy Partners Footprint
Holly Energy Partners (NYSE: HEP) 5
HollyFrontier Business Segment Highlights
REFINING MIDSTREAM SPECIALTY LUBRICANTS
Inland merchant refiner
5 refineries in the Mid Continent,
Southwest and Rockies regions
Flexible refining system with fleet wide
discount to WTI
Premium niche product markets versus
Gulf Coast
Organic initiatives to drive growth and
enhance returns
Disciplined capital structure &
allocation
Operate Crude and Product Pipelines,
loading racks, terminals and tanks in and
around HFC’s refining assets
HFC owns 59% of the LP Interest in HEP
and the non-economic GP interest
IDR simplification transaction lowers
HEP’s cost of capital
Over 80% of revenues tied to long term
contracts and minimum volume
commitments
Integrated specialty lubricants
producer
Sells finished lubricants & specialty
products in over 80 countries under
the Petro-Canada & HF LSP brands
Lubricant production facilities in
Mississauga, Ontario & Tulsa,
Oklahoma
Combined, fourth largest North
American base oil producer with
28,000 barrels per day of lubricants
production
HollyFrontier Lubricants & Specialty
Products is the largest North American
group III base oil producer
Holly Energy Partners (NYSE: HEP)
1. Unit Count as of 12/1/17
2. Based on HEP unit closing price on December 29, 2017
100%
Interest
41.9mm HEP units1
41% LP Interest
$1.4B Value2
59.6mm HEP units1
59% LP Interest
$1.9B Value2
HOLLYFRONTIER
CORPORATION (HFC)
GENERAL PARTNER (GP)
HOLLY LOGISTIC
SERVICES, L.L.C
HOLLY ENERGY
PARTNERS, L.P. (HEP)
PUBLIC
Non-economic
GP Interest
HEP Ownership Structure
IDR Simplification Provides Lower Cost of Capital for HEP
6
Holly Energy Partners (NYSE: HEP) 7
Limited Partner Distributions Since Inception
Distribution has been increased every quarter since IPO – 52 consecutive quarters
$1.11
$1.29
$1.42
$1.50
$1.58
$1.66
$1.74
$1.84
$1.96
$2.08
$2.20
$2.36
$2.58
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E
LP Distribution ($/Unit)1
1Distributions are split adjusted reflecting HEP’s January 2013 two-for-one unit split. Amounts based on
distributions earned during the period.
Holly Energy Partners (NYSE: HEP) 8
HEP Growth Since Inception
$80
2005 2016
Revenue, 16% CAGR*
$50
2005 2016
EBITDA, 17% CAGR*
$41
$219
2005 2016
DCF, 16% CAGR*
*See page 17 for definitions
Holly Energy Partners (NYSE: HEP) 9
HEP Historical Growth
2004 2005 2006 2007 2008 2009
MLP IPO
(July 2004)
Holly intermediate
feedstock pipeline
dropdown
(July 2005)
25% JV with
Plains for
SLC pipeline
(Mar 2009)
Holly Tulsa
dropdown of
loading rack
(Tulsa West)
(Aug 2009)
Holly crude oil
and tankage
assets
dropdown
(Feb 2008)
Alon pipeline
and terminal
asset
acquisition
(Feb 2005)
Holly 16”
intermediate
pipeline
facilities
acquisition
(June 2009)
Tulsa East
acquisition &
Roadrunner /
Beeson
dropdown
(Dec 2009)
Sale of 70%
interest in Rio
Grande to
Enterprise
(Dec 2009)
2010
Purchase of
additional
Tulsa tanks
& racks and
Lovington rack
(Mar 2010)
2011
HFC
dropdown of
El Dorado &
Cheyenne
assets
(Nov 2011)
Holly South
Line expansion
project
(2007-2008)
Holly Corporation
and Frontier Oil
Corporation
complete merger
(July 2011)
2012
HEP purchases
75% interest in
UNEV from HFC
(July 2012)
Tulsa
interconnect
pipelines
(Aug 2011)
2013
Crude gathering
system expansion
(2014)
2014 2015 2016 2017
Acquired remaining
interests in SLC /
Frontier pipelines
(Oct 2017)
IDR
Simplification
(Oct 2017)
Purchase of
Tulsa West
Tanks
(March 2016)
HFC dropdown
of El Dorado
processing
units
(Nov 2015)
50% JV with
Plains for
Frontier
pipeline
(Aug 2015)
50% JV with
Plains for
Cheyenne
pipeline
(June 2016)
HFC
dropdown of
Woods Cross
processing
units
(Oct 2016)
Acquisition of
El Dorado
tank farm
(Mar 2015)
HEP purchases
50% interest in
Osage from HFC
(Feb 2016)
Committed to Continuing Successful Track Record of Growth
Holly Energy Partners (NYSE: HEP) 10
HEP Avenues for Growth
ORGANIC ACQUISITIONS DROPDOWNS FROM HFC
Leverage HEP’s existing
footprint, specifically in
Permian Basin
Contractual PPI/FERC
Escalators
SLC / Frontier Expansion
Pursue logistics assets in HEP’s current
geographic region
Replace incumbent HFC service
providers with HEP
Leverage HFC refining and commercial
footprint
Participate in expected MLP sector
consolidation
Partnering with HFC to build
and/or acquire new assets /
businesses
Target high tax basis assets with
durable cash flow characteristics
that also add to HFC EBITDA
Holly Energy Partners (NYSE: HEP) 11
Organic Growth
* Includes volumes from 2014 Southeastern New Mexico Malaga Expansion
2015: Navajo refinery record of 101% utilization
Crude system expansion benefits both HEP and HFC
• HEP owns and operates over 800 miles of crude
gathering pipelines in the Permian Basin
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
2011 2012 2013 2014 2015 2016 2017E
B
ar
re
ls Pe
r
D
ay
(
B
P
D
)
Crude Gathering Volume Trend (BPD)*
Holly Energy Partners (NYSE: HEP) 12
Asset Description
• Acquired remaining 50% interest in Frontier
pipeline, and remaining 75% interest in SLC
pipeline in October 2017
• Frontier: 289-mile, 72,000 BPD capacity crude
pipeline from Casper, WY to Frontier Station, UT
• SLC: 95-mile, 90,000 BPD capacity crude pipeline
from Frontier Station, UT into Salt Lake City
• Both pipelines deliver Canadian and Rocky
Mountain Crudes to SLC refineries
• Evaluating expansion opportunities to increase
capacity by ~10%
Deal Highlights
• Interests acquired from Plains All American (PAA)
• HEP now operates both pipelines
• Acquired interests expected to generate $23
million in annual EBITDA
Acquisition of Interests in Frontier and SLC Pipelines
Holly Energy Partners (NYSE: HEP) 13
Dropdowns From HFC
Newly constructed crude, catalytic cracking, and
polymerization units at HFC’s Woods Cross refinery
for a total cash consideration of $278.0 MM,
effective October 1, 2016
• HEP and HFC entered into 15-year tolling
agreements featuring minimum volume
commitments for each respective unit
• 2017 EBITDA from these tolling agreements
expected to be at least $32.7 MM*
• HFC owns all commodity inputs and outputs; HEP
takes no commodity risk
El Dorado Dropdown Woods Cross Dropdown
Newly constructed naphtha fractionation and
hydrogen generation units at HFC’s El Dorado
refinery for total cash consideration of
approximately $62.0 MM, effective November 1,
2015
• HEP and HFC entered into 15-year tolling
agreements featuring minimum volume
commitments for each respective unit
• 2017 EBITDA from these tolling agreements
expected to be at least $8.2 MM*
• HFC owns all commodity inputs and outputs; HEP
takes no commodity risk
Dropdown Approach
• HEP positioned to benefit through HFC partnership:
• Growth capital projects
• Potential HFC M&A
• Target new HFC growth capital projects:
• High tax basis
• Durable cash flow streams
* For historical reconciliation of EBITDA, please see the Holly Energy Partners 2016 10-K
Holly Energy Partners (NYSE: HEP)
HEP Capital Budget
2018 Estimated Capex
$40-50mm
Reimbursable
$5-6mm
Maintenance
$7-10mm
Expansion
$30-40mm
Highlighted Expansion
Projects
• SLC & Frontier Pipelines
• Malaga Gathering System
14
Holly Energy Partners (NYSE: HEP)
HEP Financial Strength
Reimbursable
$15-20mm
Maintenance
$10-15mm
Expansion
$40-50mm
Capital Markets Activity in 2017
• Upsized Revolver from $1.2 billion to $1.4
billion
• Redeemed $300 million of 6.5% Senior Notes
due 2020
• Completed $100 million tack-on offering of 6%
Senior Notes due 2024
• Raised $53.6 million in net proceeds through At-
The-Market (“ATM”) equity issuance program
HEP Capital Structure ($ millions) 9/30/2017
Revolver Capacity $ 1,400
Revolver Borrowings $ (750)
Revolver Availability $ 650
Cash & Marketable Securities $ 7
Total Liquidity $ 657
6.00% Senior Notes due 2024 $ 500
Revolver Borrowings $ 750
Total HEP Debt $ 1,250
TTM EBITDA $ 297
Debt/TTM EBITDA 4.2x
15
Holly Energy Partners (NYSE: HEP) 16
Appendix-HEP Assets
Holly Energy Partners owns and operates substantially all of the refined product pipeline and
terminaling assets that support HollyFrontier’s refining and marketing operations in the Mid-Continent,
Southwest and Rocky Mountain regions of the United States.
• Approximately 3,400 miles of crude oil and petroleum product pipelines
• 14 million barrels of refined product and crude oil storage
• 8 terminals and 7 loading rack facilities in 10 western and mid-
continent states
• Refinery processing units in Woods Cross, Utah and El Dorado, Kansas
• 75% joint venture interest in UNEV Pipeline, LLC – the owner of a 400-
mile refined products pipeline system connecting Salt Lake area refiners
to the Las Vegas product market
• 50% joint venture interest in Cheyenne Pipeline LLC – the owner of an
87-mile crude oil pipeline from Fort Laramie, Wyoming to Cheyenne,
Wyoming.
• 50% joint venture interest in Osage Pipe Line Company, LLC – the owner
of a 135-mile crude oil pipeline from Cushing, Oklahoma to El Dorado,
Kansas
Holly Energy Partners (NYSE: HEP) 17
Definitions
BPD: Barrels per day
CAGR: The compound annual growth rate is calculated by dividing the ending value by
the beginning value, raise the result to the power of one divided by the period length,
and subtract one from the subsequent result. CAGR is the mean annual growth rate of
an investment over a specified period of time longer than one year.
DISTRIBUTABLE CASH FLOW: Distributable cash flow (DCF) is not a calculation based
upon GAAP. However, the amounts included in the calculation are derived from
amounts separately presented in our consolidated financial statements, with the
exception of excess cash flows over earnings of SLC Pipeline, maintenance capital
expenditures and distributable cash flow from discontinued operations. Distributable
cash flow should not be considered in isolation or as an alternative to net income or
operating income as an indication of our operating performance or as an alternative to
operating cash flow as a measure of liquidity. Distributable cash flow is not necessarily
comparable to similarly titled measures of other companies. Distributable cash flow is
presented here because it is a widely accepted financial indicator used by investors to
compare partnership performance. We believe that this measure provides investors an
enhanced perspective of the operating performance of our assets and the cash our
business is generating. Our historical distributable cash flow for the past five years is
reconciled to net income in footnote 4 to the table in "Item 6. Selected Financial Data"
of HEP's 2016 10-K.
DPU: Cash distribution per unit.
EBITDA: Earnings before interest, taxes, depreciation and amortization which is
calculated as net income plus (i) interest expense net of interest income and (ii)
depreciation and amortization. EBITDA is not a calculation based upon U.S. generally
accepted accounting principles (“U.S. GAAP”). However, the amounts included in the
EBITDA calculation are derived from amounts included in our consolidated financial
statements. EBITDA should not be considered as an alternative to net income or
operating income, as an indication of our operating performance or as an alternative to
operating cash flow as a measure of liquidity. EBITDA is not necessarily comparable to
similarly titled measures of other companies. EBITDA is presented here because it is a
widely used financial indicator used by investors and analysts to measure performance.
EBITDA is also used by our management for internal analysis and as a basis for
compliance with financial covenants. Our historical EBITDA for the past five years is
reconciled to net income in footnote 3 to the table in “Item 6. Selected Financial Data”
of HEP’s 2016 10-K.
Forecasted EBITDA for SLC and Frontier: Forecasted EBITDA is based on Holly
Energy's projections for the acquired interests in SLC and Frontier. Forecasted
EBITDA is included to help facilitate comparisons of operating performance
of Holly Energy with other companies in its industry, as well as help facilitate an
assessment of the projected ability of the acquired interests in SLC and Frontier to
generate sufficient cash flow to make distributions to Holly Energy's partners.
Forecasted EBITDA is not presented as an alternative to the nearest GAAP
financial measure, net income, and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP. Holly
Energy is unable to present a reconciliation of forecasted EBITDA to net income
because certain elements of net income for future periods, including interest,
depreciation and taxes, are not available without unreasonable efforts. Together,
these items generally would result in EBITDA being significantly greater than net
income.
KBPD: Thousand barrels per day
Non GAAP measurements: We report certain financial measures that are not
prescribed or authorized by U. S. generally accepted accounting principles
("GAAP"). We discuss management's reasons for reporting these non-GAAP
measures below. Although management evaluates and presents these non-GAAP
measures for the reasons described below, please be aware that these non-GAAP
measures are not alternatives to revenue, operating income, income from
continuing operations, net income, or any other comparable operating measure
prescribed by GAAP. In addition, these non-GAAP financial measures may be
calculated and/or presented differently than measures with the same or similar
names that are reported by other companies, and as a result, the non-GAAP
measures we report may not be comparable to those reported by others.
Rack Backward: business segment of HF LSP that captures the value between
feedstock