Holly Energy Partners, L.P.

Welcome to the Holley Energy Partners first quarter 2021 conference call and webcast. At this time, all participants have been placed in a listen-only mode. The floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star then the number one on your touch-tone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. If you should require operator assistance, please press star zero. We ask that you please pick up your handset to allow optimal sound quality. Please note that this conference is being recorded. It is now my pleasure to turn the floor over to Trey Schantzer. Trey, you may begin.

Thanks, Shalon, and thank you all for joining our first quarter 2021 earnings call. I'm Trey Schantzer with Investor Relations for Holley Energy Partners. Joining us today are Rich Volova, President, and John Harrison, Senior Vice President and CFO. This morning, we issued a pressure release announcing results for the quarter ending March 31st, 2021. If you would like a copy of today's pressure release, you may find one on our website at hollyenergy.com. Before Rich and John proceed with their remarks, please note the safe harbor disclosure statement in today's pressure release. In summary, it says statements made regarding management expectations, judgments, or predictions are forward-looking statements. These statements are intended to be covered under the safe harbor provisions of federal securities laws. There are many factors that could cause results to differ from expectations, including those noted in our SEC filings. Today's statements are not guarantees of future outcomes. Also, please note that information presented on today's call speaks only as of today, May 4th, 2021. Any time-sensitive information provided may no longer be accurate at the time of any webcast replay or reading of the transcripts. Finally, today's call may include discussion of non-GAAP measures. Please see today's press release for reconciliations to GAAP financial measures. And with that, I'll turn the call over to Rich.

Thanks, Trey. Thanks to each of you for joining the call this afternoon. HEP generated solid results in the first quarter. Revenue remained stable as compared to the first quarter of 2020. Despite the decrease in overall volumes due largely to the impact of winter storm Yuri on Holly Frontier's Tulsa refinery, and the end of petroleum refinery operations at Holly Frontier's Cheyenne Refinery. ATP itself experienced no damage from URI thanks to the great work of our personnel in the field. On the refined product side, we continue to see demand improvement for transportation fuels across our regions, and we anticipate incremental demand as we head into the summer driving season. During the quarter, we announced a $0.35 per LP unit quarterly cash distribution to be paid on May 13th to union holders on record as of May 3rd. We intend to hold the distribution flat during the year and plan to use excess cash flow after capital investments and distributions for further deleveraging. Turning to project updates. Due to the year-to-date accumulation of weather-related delays, our Cushion Connect pipeline is now expected to be in service in early July. The Navajo Tank Project is currently on schedule and budget with an expected startup later this month. We continue to make progress on the Frontier Pipeline expansion, which is currently on schedule and expected to be in service in the fourth quarter of 2021. Looking forward, our focus remains on consistent operational execution as we continue to see improvement across our markets.