Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2015

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 and forward sales 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, 2015
Commodity price swaps
Change in fair value	$	(3,983	)	Sales and other revenues	$	245,819		Sales and other revenues	$	(274	)
Gain reclassified to earnings due to settlements	(49,592		)	Cost of products sold	(179,700		)	Cost of products sold	4,376
Amortization of discontinued hedges reclassified to earnings	1,080			Operating expenses	(17,607		)	Operating expenses	547
Total	$	(52,495	)		$	48,512			$	4,649
Year Ended December 31, 2014
Commodity price swaps
Change in fair value	$	107,518		Sales and other revenues	$	88,326		Sales and other revenues	$	274
Gain reclassified to earnings due to settlements	(52,884		)	Cost of products sold	(37,313		)	Cost of products sold	(4,377		)
Amortization of discontinued hedges reclassified to earnings	1,080			Operating expenses	791			Operating expenses	(547		)
Total	$	55,714			$	51,804			$	(4,650	)
Year Ended December 31, 2013
Commodity price swaps
Change in fair value	$	(8,808	)	Sales and other revenues	$	(20,060	)
Gain reclassified to earnings due to settlements	(16,410		)	Cost of products sold	38,949			Sales and other revenues	$	45
Amortization of discontinued hedges reclassified to earnings	900			Operating expenses	(3,379		)	Cost of products sold	515
Total	$	(24,318	)		$	15,510			$	560

Summary Of Notional Amounts of Outstanding Derivatives Serving as Price Risk Hedges

As of December 31, 2015, we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions:

		Notional Contract Volumes by Year of Maturity
Derivative instruments	Total Outstanding Notional	2016	2017	Unit of Measure
Natural gas price swaps - long	19,200,000	9,600,000	9,600,000	MMBTU
Forward gasoline and diesel contracts - long	525,000	525,000	—	Barrels
Forward gasoline and diesel contracts - short	625,000	625,000	—	Barrels
Physical crude contracts - short	38,000	38,000	—	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	2015			2014			2013
	(In thousands)
Cost of products sold	$	48,082		$	68,509		$	20,751
Operating expenses	(12,003		)	(185		)	(5,250		)
Total	$	36,079		$	68,324		$	15,501

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of December 31, 2015, 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	2016	2017	Unit of Measure
Crude price swaps (basis spread) - long	11,712,000	11,712,000	—	Barrels
Natural gas price swaps (basis spread) - long	20,616,000	10,308,000	10,308,000	MMBTU
Natural gas price swaps - long	19,200,000	9,600,000	9,600,000	MMBTU
Natural gas price swaps - short	19,200,000	9,600,000	9,600,000	MMBTU
NYMEX futures (WTI) - short	1,840,000	1,840,000	—	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, 2015
Interest rate swaps
Change in fair value	$	(1,864	)
Loss reclassified to earnings due to settlements	2,100			Interest expense	$	(2,100	)
Total	$	236			$	(2,100	)
Year Ended December 31, 2014
Interest rate swaps
Change in fair value	$	(2,104	)
Loss reclassified to earnings due to settlements	2,202			Interest expense	$	(2,202	)
Total	$	98			$	(2,202	)
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	)

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, 2015
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	38,755	$	—		$	38,755
Interest rate swap contracts	304		—		304		114		—			114
	$	304	$	—	$	304	$	38,869	$	—		$	38,869
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	—	$	—	$	—	$	60,196	$	(37,118	)	$	23,078
NYMEX futures contracts	3,469		—		3,469		—		—			—
	$	3,469	$	—	$	3,469	$	60,196	$	(37,118	)	$	23,078
Total net balance					$	3,773						$	61,947
Balance sheet classification:	Prepayment and other				$	3,469	Accrued liabilities					$	36,976
	Intangibles and other				304		Other long-term liabilities					24,971
					$	3,773						$	61,947

	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, 2014
Derivatives designated as cash flow hedging instruments:
Commodity price swap contracts	$	173,658	$	(142,115	)	$	31,543	$	21,441	$	—		$	21,441
Interest rate swap contracts	1,019		—			1,019		1,065		—			1,065
	$	174,677	$	(142,115	)	$	32,562	$	22,506	$	—		$	22,506
Derivatives not designated as cash flow hedging instruments:
Commodity price swap contracts	$	17,630	$	(12,942	)	$	4,688	$	20,398	$	(17,007	)	$	3,391
NYMEX futures contracts	17,619		—			17,619		—		—			—
	$	35,249	$	(12,942	)	$	22,307	$	20,398	$	(17,007	)	$	3,391
Total net balance						$	54,869						$	25,897
Balance sheet classification:	Prepayment and other					$	53,850
	Intangibles and other					1,019		Other long-term liabilities					$	25,897
						$	54,869						$	25,897