Investor Presentaiton
HEP Capital Allocation Strategy¹
H
HOLLY ENERGY PAR
Strategy
Delivers:
Sustainable
Free Cash Flow
Visible Deleveraging
Pathway
Increased
unitholder returns
Near-term
■
Continue to reduce leverage²
■ Pay sustainable quarterly distribution of
$0.35/unit
Mid to Long-term Strategy
■ Focus on funding all capex and distributions within operating cash
flow
■ Reduce leverage2 to 3.0x-3.5x
■ Maintain distributable cash flow coverage² of at least 1.3x
22
22
1.
Based on management's current estimates and expectations.
2.
3.
Distribution coverage ratio and leverage ratio are not financial measures prepared in accordance with GAAP. Please see definitions and reconciliations in the Appendix.
Distributable cash flow coverage is the ratio of distributable cash flow attributable to GP and LP unitholders to total GP and LP distributions declared. See definition in Appendix.
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