Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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)
Year Ended December 31, 2013
Commodity price swaps
Change in fair value	$	(8,808	)	Sales and other revenues	$	(20,060	)	Sales and other revenues	$	45
Gain reclassified to earnings due to settlements	(16,410		)	Cost of products sold	38,949			Cost of products sold	515
Amortization of discontinued hedges reclassified to earnings	900			Operating expenses	(3,379		)
Total	$	(24,318	)		$	15,510			$	560
Year Ended December 31, 2012
Commodity price swaps
Change in fair value	$	(248,399	)	Sales and other revenues	$	(98,750	)	Sales and other revenues	$	(491	)
Loss reclassified to earnings due to settlements	55,175			Cost of products sold	43,575			Cost of products sold	(515		)
Total	$	(193,224	)		$	(55,175	)		$	(1,006	)
Year Ended December 31, 2011
Commodity price swaps
Change in fair value	$	173,208
Loss reclassified to earnings due to settlements	166			Operating expenses	$	(166	)	Cost of products sold	$	446
Total	$	173,374			$	(166	)		$	446

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

As of December 31, 2013, we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted purchases of natural gas and crude oil and sales of refined products:

		Notional Contract Volumes by Year of Maturity
Derivative instruments	Total Outstanding Notional	2014	2015	2016	2017	Unit of Measure
Natural gas - long	38,400,000	9,600,000	9,600,000	9,600,000	9,600,000	MMBTU
WTI crude oil - long	18,797,500	16,242,500	2,555,000	—	—	Barrels
Ultra-low sulfur diesel - short	15,512,500	12,957,500	2,555,000	—	—	Barrels
Sub octane gasoline - short	3,285,000	3,285,000	—	—	—	Barrels

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:

	Years Ended December 31,
Location of Gain (Loss) Recognized in Income	2013			2012		2011
	(In thousands)
Cost of products sold	$	20,751		$	12,295	$	3,219
Operating expenses	(5,250		)	573		—
Total	$	15,501		$	12,868	$	3,219

Schedule of Notional Amounts of Outstanding Derivative Positions

As of December 31, 2013, we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges:

		Notional Contract Volumes by Year of Maturity
Derivative Instrument	Total Outstanding Notional	2014	2015	2016	2017	Unit of Measure
Commodity price swap (WCS spread) - long	6,387,500	6,387,500	—	—	—	Barrels
Commodity price swap (natural gas) - long	38,400,000	9,600,000	9,600,000	9,600,000	9,600,000	MMBTU
Commodity price swap (natural gas) - short	38,400,000	9,600,000	9,600,000	9,600,000	9,600,000	MMBTU
NYMEX futures (WTI) - short	1,946,000	1,946,000	—	—	—	Barrels
Physical contracts - long	300,000	300,000	—	—	—	Barrels
Physical contracts - short	300,000	300,000	—	—	—	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 hedge accounting:

	Unrealized Gain (Loss) Recognized in OCI			Loss Recognized in Earnings Due to Settlements
				Location	Amount
				(In thousands)
Year Ended December 31, 2013
Interest rate swaps
Change in fair value	$	1,194
Loss reclassified to earnings due to settlements	2,092
Amortization of discontinued hedge reclassified to earnings	849			Interest expense	$	(2,941	)
Total	$	4,135			$	(2,941	)
Year Ended December 31, 2012
Interest rate swaps
Change in fair value	$	(4,418	)
Loss reclassified to earnings due to settlements	1,508
Amortization of discontinued hedge reclassified to earnings	5,095			Interest expense	$	(6,603	)
Total	$	2,185			$	(6,603	)
Year Ended December 31, 2011
Interest rate swaps
Change in fair value	$	(1,956	)
Loss reclassified to earnings due to settlements	5,477
Amortization of discontinued hedge reclassified to earnings	41			Interest expense	$	(5,518	)
Total	$	3,562			$	(5,518	)

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

The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2013
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	63,561	$	(23,679	)	$	39,882
Interest rate swap contracts	1,670		—		1,670		1,814		—			1,814
	$	1,670	$	—	$	1,670	$	65,375	$	(23,679	)	$	41,696
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	6,972	$	—	$	6,972	$	19,766	$	(12,611	)	$	7,155
NYMEX futures contracts	—		—		—		3,569		—			3,569
	$	6,972	$	—	$	6,972	$	23,335	$	(12,611	)	$	10,724
Total net balance					$	8,642						$	52,420
Balance sheet classification:	Prepayment and other				$	6,972	Accrued liabilities					$	26,843
	Intangibles and other				1,670		Other long-term liabilities					25,577
					$	8,642						$	52,420

	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet			Net Liabilities Recognized in Balance Sheet
			(In thousands)
December 31, 2012
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	37,828	$	(17,383	)	$	20,445
Interest rate swap contracts	—		—		—		3,430		—			3,430
	$	—	$	—	$	—	$	41,258	$	(17,383	)	$	23,875
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	46,154	$	—		$	46,154
NYMEX futures contracts	—		—		—		5,563		—			5,563
	$	—	$	—	$	—	$	51,717	$	—		$	51,717
Total net balance					$	—						$	75,592
Balance sheet classification:							Accrued liabilities					$	62,388
							Other long-term liabilities					13,204
												$	75,592