Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments, Gain (Loss) [Line Items]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps under hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Gain (Loss) Recognized in Earnings Due to Settlements				Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings
				Location	Amount			Location	Amount
				(In thousands)
Three Months Ended September 30, 2012
Commodity price swaps
Change in fair value	$	(144,635	)	Sales and other revenues	$	(44,936	)	Sales and other revenues	$	(3,531	)
Loss reclassified to earnings due to settlements	33,409			Cost of products sold	11,527			Cost of products sold	6,208
Total	$	(111,226	)		$	(33,409	)		$	2,677
Three Months Ended September 30, 2011
Commodity price swaps
Change in fair value	$	22,181		Cost of products sold	$	—		Cost of products sold	$	362
Nine Months Ended September 30, 2012
Commodity price swaps
Change in fair value	$	(257,711	)	Sales and other revenues	$	(99,228	)	Sales and other revenues	$	(1,876	)
Loss reclassified to earnings due to settlements	20,986			Cost of products sold	78,242			Cost of products sold	(109		)
Total	$	(236,725	)		$	(20,986	)		$	(1,985	)
Nine Months Ended September 30, 2011
Commodity price swaps
Change in fair value	$	22,053
Loss reclassified to earnings due to settlements	166			Operating expenses	$	(166	)	Cost of products sold	$	362
Total	$	22,219			$	(166	)		$	362

Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments

As of September 30, 2012, we have the following notional contract volumes (stated in barrels) related to outstanding swap contracts serving as cash flow hedges against price risk on forecasted purchases of crude oil and sales of refined products:

		Notional Contract Volumes by Year of Maturity
Commodity Price Swaps	Total Outstanding Notional	2012	2013
WTI crude oil - long	13,351,000	5,336,000	8,015,000
Ultra-low sulfur diesel - short	10,143,000	2,668,000	7,475,000
Conventional unleaded gasoline - short	3,208,000	2,668,000	540,000

Schedule of Realized Gain (Loss)

The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges:

	Three Months Ended September 30,				Nine Months Ended September 30,
Location of Gain Recognized in Income	2012		2011		2012		2011
	(In thousands)
Cost of products sold	$	19,869	$	10,034	$	55,738	$	9,382
Operating expenses	604		—		446		—
Total	$	20,473	$	10,034	$	56,184	$	9,382

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2012, we have the following notional contract volumes related to our outstanding swap contracts serving as economic hedges:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2012	2013	Unit of Measure
Commodity price swap (natural gas) - long	3,312,000	3,312,000	—	MMBTU
Commodity price swap (WCS spread) - long	6,117,500	460,000	5,657,500	Barrels
Commodity price swap (WTI) - short	150,000	—	150,000	Barrels
Commodity price swap (gasoline) - short	630,000	150,000	480,000	Barrels
NYMEX futures (WTI) - long	234,000	—	234,000	Barrels
NYMEX futures (WTI)- short	2,206,000	1,856,000	350,000	Barrels

Schedule of Interest Rate Derivatives

The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP's interest rate swaps under cash flow hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Loss Recognized in Earnings Due to Settlements
				Location	Amount
				(In thousands)
Three Months Ended September 30, 2012
Interest rate swaps
Change in fair value	$	(1,802	)
Loss reclassified to earnings due to settlements	1,695			Interest expense	$	(1,695	)
Total	$	(107	)		$	(1,695	)
Three Months Ended September 30, 2011
Interest rate swaps
Change in fair value	$	(310	)
Loss reclassified to earnings due to settlements	1,403			Interest expense	$	(1,403	)
Total	$	1,093			$	(1,403	)
Nine Months Ended September 30, 2012
Interest rate swaps
Change in fair value	$	(4,240	)
Loss reclassified to earnings due to settlements	4,818			Interest expense	$	(4,818	)
Total	$	578			$	(4,818	)
Nine Months Ended September 30, 2011
Interest rate swaps
Change in fair value	$	(1,485	)
Loss reclassified to earnings due to settlements	4,132			Interest expense	$	(4,132	)
Total	$	2,647			$	(4,132	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents balance sheet locations and related fair values of outstanding derivative instruments. These amounts are presented on a gross basis in accordance with GAAP disclosure requirements and do not reflect the netting of asset or liability positions permitted under the terms of master netting arrangements. Therefore, they are not equal to amounts presented in our consolidated balance sheets.

	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
September 30, 2012
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	Accrued liabilities	$	22,018	Accrued liabilities	$	86,945
Variable-to-fixed interest rate swap contracts				Other long-term liabilities	3,764
Total		$	22,018		$	90,709
Derivatives not designated as hedging instruments:
Commodity price swap contracts	Prepayments and other current assets	$	4,126
	Accrued liabilities	20,986		Accrued liabilities	$	13,516
Total		$	25,112		$	13,516
December 31, 2011
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	Prepayments and other current assets	$	173,784
Variable-to-fixed interest rate swap contracts				Other long-term liabilities	$	520
Total		$	173,784		$	520
Derivatives not designated as hedging instruments:
Commodity price swap contracts	Prepayments and other current assets	$	1,870	Accrued liabilities	$	1,252