XML 37 R14.htm IDEA: XBRL DOCUMENT
v3.22.4

Revenues | 12 Months Ended
--- | ---
Dec. 31, 2022
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues Substantially all revenue-generating activities relate to sales of refined product, branded fuel sales, renewable diesel and excess crude oil inventories sold at market prices (variable consideration) under contracts with customers. Additionally, we have revenues attributable to HEP logistics services provided under petroleum product and crude oil pipeline transportation, processing, storage and terminalling agreements with third parties. Disaggregated revenues were as follows:
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | (In thousands)
Revenues by type |  |  |  |  |  |
Refined product revenues |  |  |  |  |  |
Transportation fuels (1) |  | $ | 25,895,867 |  |  | $ | 13,414,543 |  |  | $ | 7,825,625 |
Specialty lubricant products (2) |  | 2,826,206 |  |  | 2,322,242 |  |  | 1,657,344 |
Asphalt, fuel oil and other products (3) |  | 2,147,710 |  |  | 948,581 |  |  | 672,371 |
Total refined product revenues |  | 30,869,783 |  |  | 16,685,366 |  |  | 10,155,340 |
Excess crude oil revenues (4) |  | 2,342,288 |  |  | 1,547,696 |  |  | 884,248 |
Renewable diesel revenues (5) |  | 654,893 |  |  | — |  |  | — |
Transportation and logistic services |  | 109,200 |  |  | 103,646 |  |  | 98,039 |
Marketing revenues (6) |  | 3,911,922 |  |  | — |  |  | — |
Other revenues (7) |  | 316,753 |  |  | 52,434 |  |  | 46,016 |
Total sales and other revenues |  | $ | 38,204,839 |  |  | $ | 18,389,142 |  |  | $ | 11,183,643 |
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | (In thousands)
Refined product revenues by market |  |  |  |  |  |
United States |  |  |  |  |  |
Mid-Continent |  | $ | 13,924,566 |  |  | $ | 9,094,885 |  |  | $ | 5,096,268 |
Southwest |  | 4,965,298 |  |  | 3,477,562 |  |  | 2,310,432 |
Rocky Mountains |  | 9,533,476 |  |  | 2,118,619 |  |  | 1,311,416 |
Northeast |  | 1,037,771 |  |  | 824,900 |  |  | 552,069 |
Canada |  | 1,063,961 |  |  | 836,317 |  |  | 616,683 |
Europe, Asia and Latin America |  | 344,711 |  |  | 333,083 |  |  | 268,472 |
Total refined product revenues |  | $ | 30,869,783 |  |  | $ | 16,685,366 |  |  | $ | 10,155,340 |
(1)Transportation fuels revenues are attributable to our Refining segment wholesale marketing of gasoline, diesel and jet fuel. For the year ended December 31, 2020, $1.6 million is reported in our Corporate and Other segment. (2)Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3)Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $1,827.3 million and $314.8 million, respectively, for the year ended December 31, 2022. For the year ended December 31, 2021 such revenues attributable to our Refining and Lubricants and Specialty Products were $724.3 million and $224.3 million, respectively. For the year ended December 31, 2020 such revenue attributable to our Refining and Lubricants and Specialty Products segments were $533.5 million and $135.4 million, respectively. (4)Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5)Renewable diesel revenues are attributable to our Renewables segment. (6)Marketing revenues consist primarily of branded gasoline and diesel fuel. (7)Other revenues are principally attributable to our Refining segment. Our consolidated balance sheets reflect contract liabilities related to unearned revenues attributable to future service obligations under HEP’s third-party transportation agreements and production agreements from our Sonneborn operations. The following table presents changes to contract liabilities:
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | (In thousands)
Balance at January 1 |  | $ | 9,278 |  |  | $ | 6,738 |  |  | $ | 4,652 |
Increase |  | 32,040 |  |  | 32,301 |  |  | 28,746 |
Recognized as revenue |  | (30,596) |  |  | (29,761) |  |  | (26,660) |
Balance at December 31 |  | $ | 10,722 |  |  | $ | 9,278 |  |  | $ | 6,738 |
As of December 31, 2022, we have long-term contracts with customers that specify minimum volumes of gasoline, diesel, lubricants and specialty products to be sold ratably at market prices through 2032. Future prices are subject to market fluctuations and therefore, we have elected the exemption to exclude variable consideration under these contracts under Accounting Standards Codification 606-10-50-14A. Aggregate minimum volumes expected to be sold (future performance obligations) under our long-term product sales contracts with customers are as follows, which include branded sales volumes assumed upon our acquisition of the Acquired Sinclair Businesses:
|  |  |  | 2023 |  | 2024 |  | 2025 |  | Thereafter |  | Total
|  |  | (In thousands)
Refined product sales volumes (barrels) |  |  |  | 35,181 |  |  | 28,848 |  |  | 19,729 |  |  | 29,571 |  |  | 113,329 |
Additionally, HEP has long-term contracts with third-party customers that specify minimum volumes of product to be transported through its pipelines and terminals that result in fixed-minimum annual reven ues throu gh 2025. Annua l minimum revenues attributable to HEP’s third-party contracts as of December 31, 2022 are presented below:
|  |  |  | 2023 |  | 2024 |  | 2025 |  |  |  | Total
|  |  | (In thousands)
HEP contractual minimum revenues |  |  |  | $ | 11,017 |  |  | $ | 11,017 |  |  | $ | 3,017 |  |  |  |  | $ | 25,051 |
For the years ended December 31, 2022 and 2021, we had one customer, Shell, together with certain of its affiliates, that accounted for 10% or more of our total annual revenues at approximately 15% and 13%, respectively. We had no cu stomers which had accounted for over 10% of our annual revenues for the year ended December 31, 2020.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration