Mission Statement, Vision, & Core Values (2024) of Holly Energy Partners, L.P. (HEP)

An Overview of Holly Energy Partners, L.P. (HEP)

General Summary of Holly Energy Partners, L.P.

Holly Energy Partners, L.P. (HEP) was formed in 2004 and is headquartered in Dallas, Texas. The company primarily focuses on the transportation, terminaling, and storage of petroleum products and crude oil. HEP operates a network of pipelines and terminals across major U.S. markets. Its operations comprise over 1,300 miles of crude oil and refined products pipelines and significant terminal and storage facilities.

As of 2024, HEP's diverse portfolio includes:

• 316 miles of crude oil pipelines
• Over 5 million barrels of storage capacity
• Refined product terminals serving key refineries

The company reported total sales of approximately $1.1 billion in 2023, indicating a steady demand for its services in the evolving energy landscape.

Company's Financial Performance in the Latest Financial Reports

In its latest financial reports, Holly Energy Partners has demonstrated robust financial health, showcasing record-breaking revenue. For the fiscal year ending December 31, 2023, HEP achieved revenues of $1.2 billion, a significant increase of 15% from the previous year, driven primarily by the transportation and storage of crude oil and refined products.

The increase in revenue is attributed to HEP's strategic initiatives, including expanding its pipeline capacity and enhancing operational efficiencies.

Introduction to Company as a Leading Company in the Industry

Holly Energy Partners stands out as one of the leading companies in the midstream energy sector. As of 2024, the company ranks among the top operators in the U.S. due to its extensive infrastructure and solid operational capabilities. HEP's commitment to safety, sustainability, and efficiency has positioned it favorably in a competitive market.

HEP is recognized for maintaining a strong balance sheet, with a debt-to-EBITDA ratio of 3.1, reflecting prudent financial management. The company's partnerships with major refineries and its strategic location in key markets further enhance its competitive edge.

To better understand why Holly Energy Partners is successful, readers are encouraged to explore additional resources below.

Mission Statement of Holly Energy Partners, L.P. (HEP)

Mission Statement Overview

Holly Energy Partners, L.P. (HEP) has crafted its mission statement to articulate its purpose and strategic direction, which serves as a foundational guide for its operations and long-term objectives. The mission statement emphasizes the company’s commitment to providing high-quality services within the midstream energy sector.

Core Component 1: Commitment to Safety

The first core component of HEP's mission statement is its unwavering commitment to safety. HEP prioritizes the health and safety of its employees, partners, and the communities in which it operates.

In 2022, HEP reported a Total Recordable Incident Rate (TRIR) of 0.36, significantly lower than the industry average of 1.8, exemplifying its dedication to maintaining a safe working environment.

Core Component 2: Environmental Responsibility

The second core component focuses on HEP's commitment to environmental responsibility. The company aims to minimize its ecological footprint while ensuring compliance with environmental regulations.

In 2023, HEP invested approximately $12 million in upgrading infrastructure to enhance energy efficiency and reduce greenhouse gas emissions, thereby reinforcing its dedication to sustainable practices.

Core Component 3: Customer Service Excellence

The third core component emphasizes customer service excellence. HEP is committed to delivering exceptional service while maintaining reliable and efficient operations.

In 2023, HEP achieved a customer satisfaction score of 92%, reflecting its focus on meeting and exceeding client expectations through consistent performance.

Vision Statement of Holly Energy Partners, L.P. (HEP)

Vision Statement Overview

The vision statement of Holly Energy Partners, L.P. (HEP) as of 2024 reflects its ambition to be a leader in the energy sector, emphasizing sustainable practices, operational excellence, and stakeholder value. Their commitment is to enhance the delivery of reliable energy solutions while maintaining environmental stewardship and community engagement.

Commitment to Sustainability

Holly Energy Partners focuses on integrating sustainable practices into its operations. In 2024, the company aims to reduce greenhouse gas emissions by 25% compared to 2020 levels. This aligns with industry trends where companies are increasingly integrating sustainability into their core strategies.

Operational Excellence

HEP is committed to achieving operational excellence by optimizing its pipeline and terminal operations. The company projects a 15% increase in transportation capacity by 2024, supported by investments totaling approximately $75 million in infrastructure upgrades.

Stakeholder Value Creation

Creating value for stakeholders remains a core focus for HEP. In 2024, the company aims to increase dividends by 5%, maintaining a strong return for investors, which reflects its commitment to financial health and sustainability.

Community Engagement

Holly Energy Partners recognizes the importance of community engagement and has set a goal to invest $10 million in local community development and educational programs by 2024. This initiative underlines their commitment to being a responsible corporate citizen.

Technological Advancements

To further its vision, HEP is focusing on adopting new technologies to improve operational efficiency. The company is investing approximately $20 million in digital transformation initiatives aimed at enhancing data analytics and system integration capabilities.

Core Values of Holly Energy Partners, L.P. (HEP)

Integrity

Integrity is a cornerstone value for Holly Energy Partners, L.P. (HEP), emphasizing honesty, transparency, and ethical conduct in all aspects of business operations.

HEP has demonstrated its commitment to integrity through various compliance programs, including:

• Regular compliance training for all employees, with a completion rate of 95% in 2023.
• Strict adherence to the Sarbanes-Oxley Act, ensuring full financial transparency.
• Whistleblower policy implemented with a dedicated hotline receiving 100% of reports handled appropriately.

In 2023, the company achieved zero violations related to environmental regulations, reflecting its commitment to ethical operational practices.

Safety

Safety is paramount at HEP, ensuring that both employees and the environment are protected from potential hazards.

Demonstrating its dedication to safety, HEP has initiated several key programs:

• Implementation of a Safety Management System (SMS), which resulted in a 40% decrease in incident rates from 2022 to 2023.
• Annual investment of over $2 million in safety training and equipment upgrades.
• Achieving a Total Recordable Incident Rate (TRIR) of 0.68, significantly below the national average of 3.1 for the oil and gas industry.

The commitment to safety extends to emergency response drills, with 12 drills conducted in 2023, ensuring preparedness for potential incidents.

Environmental Stewardship

HEP is dedicated to minimizing its environmental footprint and promoting sustainable practices.

In 2023, HEP took significant steps to enhance its environmental stewardship:

• Reduced greenhouse gas emissions by 25% compared to 2022 levels, following a comprehensive emissions reduction strategy.
• Invested $1 million in renewable energy projects, including solar power initiatives at refineries.
• Engaged in habitat restoration projects impacting 500 acres of wildlife habitat.

The company's environmental initiatives also include the establishment of a sustainability task force, focusing on continuous improvement in eco-friendly practices.

Teamwork

Teamwork at HEP fosters a collaborative environment where every employee's contribution is valued.

Key initiatives that illustrate this value include:

• Launch of the HEP Employee Engagement Program in 2023, resulting in 90% employee satisfaction rate.
• Quarterly team-building activities that saw participation from over 70% of employees.
• Cross-departmental projects that facilitated collaboration, leading to a 15% increase in overall operational efficiency.

HEP emphasizes a culture of respect and inclusiveness, which is reflected in its diverse workforce comprising 40% women and 30% minorities as of 2023.

Excellence

Excellence drives HEP's pursuit of superior performance in all operations.

Examples of its commitment to excellence include:

• Achieving an above-industry average return on equity (ROE) of 12.5% in 2023.
• A rigorous performance review system that rewards high achievers and identified a 20% increase in productivity metrics.
• Continuous improvement initiatives that have led to a 15% reduction in operational costs since 2022.

HEP was also recognized with the “Excellence in Operations” award from the American Petroleum Institute in 2023, underscoring the company's leadership in the energy sector.