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How many common units were offered to the public? 6,100,000 common units. A 900,000 over-allotment option was also exercised, bringing the total to 7,000,000 common units. How and when is cash distributed? In general, we pay cash distributions in the following manner:
We must distribute all of our cash on hand at the end of each quarter, less reserves established by our general partner in its discretion. We refer to this as "available cash." The amount of available cash may be greater than or less than the minimum quarterly distribution. How long is the subordination period, and what happens during and afterward? During the subordination period, the subordinated units are not entitled to receive any distributions until the common units have received the minimum quarterly distribution plus any arrearages from prior quarters. The subordination period will end on June 30, 2009. When the subordination period ends, all subordinated units will convert into common units on a one-for-one basis, and the common units will no longer be entitled to arrearages. How and when can additional units be issued? In general, during the subordination period we can issue up to 3,500,000 additional common units, or 50% of the common units outstanding, immediately after this offering, without obtaining unit holder approval. We can also issue an unlimited number of common units in connection with acquisitions and capital improvements that increase cash flow from operations per unit on a pro forma or estimated pro forma basis. We can also issue additional common units if the proceeds are used to repay certain of our indebtedness. Back to Top Do unit holders have voting rights? Our general partner will manage and operate us. Unlike the holders of common stock in a corporation, you will have only limited voting rights on matters affecting our business. You will have no right to elect our general partner or the directors of its general partner on an annual or other continuing basis. Our general partner may not be removed except by a vote of the holders of at least 66 2/3% of the outstanding units, including any units owned by our general partner and its affiliates, voting together as a single class. Upon consummation of this offering, our general partner and its affiliates will own an aggregate of 57.1% of our common and subordinated units. This will give our general partner the practical ability to prevent its involuntary removal. When and to whom does the right of limited call apply? If at any time our general partner and its affiliates own more than 80% of the outstanding common units, our general partner has the right, but not the obligation, to purchase all of the remaining common units at a price not less than the then-current market price of the common units. What is the estimated ratio of taxable income to distributions? We estimate that if you hold the common units you purchase in this offering through December 31, 2007, you will be allocated, on a cumulative basis, an amount of federal taxable income for that period that will be 20 % or less of the cash distributed to you with respect to that period. For example, if you receive an annual distribution of $2.00 per unit, we estimate that your allocable federal income tax per year will be no more than $0.40 per unit. Back to Top On which exchange are your units listed? Our common units are listed on the New York Stock Exchange under the symbol "HEP." Page Last Updated on : 7/12/2005 |
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Current Stock Price HEP $44.45 ( 0.54) 3/10/2010 4:00pm Did You Know? Along with setting fires, saboteurs pulled the joints apart, virtually destroying Henry Harley's pipelines. Harley moved ahead, relaying the lines and finishing by March 1866. Each 2-inch pipeline could deliver up to 2000 barrels/day to the storage tanks. More... |
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