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INVESTOR PRESENTATION
AUGUST 2017
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 our failure to successfully close our transaction with affiliates of Plains All American Pipeline, L.P., or,
once closed, integrate the operation of the assets with our existing operations, failure to receive required governmental approvals to
close the transaction with Plains, 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,
including to finance the transaction with Plains, 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)
51 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.
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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
Footprint of HollyFrontier and Holly Energy Partners
About the HollyFrontier
Companies
457,000 BPD Refining Capacity
Specialty Lubricants Business
Approximately 3,400 Pipeline miles
75% UNEV ownership
50% Cheyenne Pipeline ownership
50% Frontier Pipeline ownership
50% Osage Pipeline ownership
25% SLC Pipeline ownership
14 million barrels of crude & product storage
7 Loading Racks and 8 Terminals
Holly Energy Partners (NYSE: HEP) 5
HollyFrontier Business Highlights
* Q4 2015 through Q3 2016 quarterly LP and GP distributions announced and paid in 2016
• 36% HEP ownership, including 2% GP interest and 34% of LP Units
• Full Year 2016 HEP cash distributions to HFC of more than $105 million*
SPECIALTY LUBRICANTS
• Maintain investment grade rating
• Target conservative balance sheet and strong liquidity
CAPITAL STRUCTURE
• Strong track record of returning excess cash to shareholders
• Competitive dividend and total cash yield
CAPITAL ALLOCATION
• Petro-Canada Lubricants Inc. acquisition
• HFC is the fourth largest North American lubricants producer with ˜28,000
barrels per day of high margin lubricants
• Only North American Group III Base Oil producer
MIDSTREAM
• Flexible refining system and fleet wide crude discount to WTI
• Premium niche product markets versus Gulf Coast
• Internal investment to drive growth and enhance returns
REFINING
Holly Energy Partners (NYSE: HEP)
1) Data as of 6/30/17
IDR: incentive distribution rights.
HOLLY ENERGY PARTNERS, L.P. (HEP)
PUBLIC
GENERAL PARTNER (GP)
HOLLY LOGISTIC SERVICES, L.L.C
HOLLYFRONTIER CORPORATION (HFC)
100% Interest
2% GP Interest + IDRs 41.9mm HEP units, 64% LP Interest
22.4mm HEP units,
34% LP Interest
6
Strategic Relationship with HollyFrontier
Holly Energy Partners (NYSE: HEP) 7
Limited Partner Distributions Since Inception
Distribution has been increased every quarter since IPO – 49 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
$-
$0.50
$1.00
$1.50
$2.00
$2.50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
LP Distribution ($/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 16 for definitions
Holly Energy Partners (NYSE: HEP) 9
HEP Positioned For Growth: Target 8% Distribution
Growth Rate
Organic
• Permian Basin
• Internal cost saving
initiatives
• Contractual PPI/FERC
increases
Dropdowns
• 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
Acquisitions
• Leverage HFC refining and
commercial commitments
to bring 3rd party logistics
spend over to HEP
• Evaluate external growth
opportunities
• Asset level
• Corporate level
• Primary focus on assets in
existing geographic
footprint
Holly Energy Partners (NYSE: HEP) 10
Asset Description
Announced pending acquisition of
remaining 50% interest in Frontier
pipeline, and remaining 75% interest in
SLC pipeline in August 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
Canadian and Rocky Mountain Crudes
to SLC refineries
Evaluating expansion opportunities to
increase capacity
Deal Highlights
Interests to be acquired from Plains All
American (PAA)
Upon closing of the acquisition, HEP will
operate both pipelines
Acquired interests expected to generate
$23 mm in annual EBITDA
Acquisition of Interests in Frontier and SLC Pipelines
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
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2011 2012 2013 2014 2015 2016
B
ar
re
ls Pe
r
D
ay
(
B
P
D
)
Crude Gathering Volume Trend (BPD)*
Holly Energy Partners (NYSE: HEP) 12
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
13
2017 Estimated Capex
$30-40mm
Reimbursable
$5-6mm
Maintenance
$8-10mm
Expansion
$20-30mm
Highlighted Expansion
Projects
Artesia-El Paso Product
Pipeline
Tulsa Rail Storage
Spokane Tanks
Holly Energy Partners (NYSE: HEP)
HEP Financial Strength
14
Reimbursable
$15-20mm
Maintenance
$10-15mm
Expansion
$40-50mm
Capital Markets Activity in 2017
Redeemed $300 million of 6.5% Senior
Notes due 2020
Raised $52.4 million in net proceeds
through At-The-Market (“ATM”) equity
issuance program
Upsized Revolver from $1.2 billion to $1.4
billion in July 2017
HEP Capital Structure ($ millions) 6/30/2017
Revolver Capacity $ 1,200
Revolver Borrowings $ (843)
Revolver Availability $ 357
Cash & Marketable Securities $ 16
Total Liquidity $ 373
6.00% Senior Notes due 2024 $ 400
Revolver Borrowings $ 843
Total HEP Debt $ 1,243
TTM EBITDA $ 287
Debt/TTM EBITDA 4.33x
Holly Energy Partners (NYSE: HEP) 15
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 Frontier Aspen LLC– the owner of a 289-mile crude
oil pipeline running from Casper, Wyoming to Frontier Station, Utah
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
25% joint venture interest in SLC Pipeline LLC – the owner of a 95-mile crude oil
pipeline system serving refineries in the Salt Lake City area
Holly Energy Partners (NYSE: HEP) 16
Definitions
BPD: Barrels per day
KBPD: Thousand 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.