Holly Energy Partners Declares Quarterly Distribution

Increases quarterly distribution to $0.47 per unit from $0.4625, or $0.925 on a pre-split basis

DALLAS--(BUSINESS WIRE)--The Board of Directors of Holly Energy Partners, L.P. (NYSE:HEP) has declared a cash distribution of $0.47 per unit for the fourth quarter of 2012. Holly Energy Partners completed a two-for-one common unit split on January 16, 2013. For the prior quarter, $0.925 was distributed to unitholders, which would be the equivalent of $0.4625 on a post-split basis. Holly Energy has increased its distribution to unitholders every quarter since becoming a public partnership in July 2004. This increase marks the thirty-third consecutive quarterly increase. The distribution will be paid February 14, 2013, to unitholders of record February 4, 2013.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Please note that one hundred (100.0%) percent of Holly Energy Partner’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, Holly Energy Partner’s distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.

About Holly Energy Partners, L.P.:

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, tankage and terminal services to the petroleum industry, including HollyFrontier Corporation, which currently owns a 44% interest (including a 2% general partner interest) in Holly Energy. Holly Energy owns and operates petroleum product and crude pipelines, tankage, terminals and loading facilities located in Texas, New Mexico, Arizona, Oklahoma, Washington, Idaho, Utah, Kansas and Wyoming. In addition, Holly Energy owns a 25% interest in SLC Pipeline LLC, a transporter of crude oil in the Salt Lake City area, and a 75% interest in UNEV Pipeline, LLC, the owner of a Holly Energy operated refined products pipeline running from Utah to Las Vegas, Nevada and related product terminals.

Information about Holly Energy Partners, L.P. may be found on its website at http://www.hollyenergy.com.