Holly Energy Partners Increases Quarterly Distribution; 54th Consecutive Quarterly Distribution Increase

Increases quarterly distribution to $0.6550 per unit from $0.6500 per
unit

DALLAS–(BUSINESS WIRE)–The Board of Directors of Holly Energy Partners, L.P. (NYSE:HEP) has
declared a cash distribution of $0.6550 per unit for the first quarter
of 2018, a 5.6% increase compared to the $0.6200 per unit distribution
declared for the first quarter of 2017. Today’s distribution is
reflective of the company’s strong and stable cash generation. Holly
Energy has increased its distribution to unitholders every quarter since
becoming a publicly-traded partnership in July 2004, with today’s
distribution marking the 54th consecutive quarterly
distribution increase. The distribution will be paid on May 10, 2018 to
unitholders of record on April 30, 2018.

Holly Energy plans to announce results for its first quarter of 2018 on
May 1, 2018 before the opening of trading on the NYSE. Holly Energy has
scheduled a webcast at 4 p.m. Eastern time that day to discuss financial
results.

The webcast may be accessed at: https://event.webcasts.com/starthere.jsp?ei=1188769&tp_key=88f117643e

About Holly Energy Partners, L.P.:

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides
petroleum product and crude oil transportation, terminalling, storage
and throughput services to the petroleum industry, including
HollyFrontier Corporation subsidiaries. Holly Energy, through its
subsidiaries and joint ventures, owns and/or operates petroleum product
and crude gathering pipelines, tankage and terminals in Texas, New
Mexico, Arizona, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming and
Kansas as well as refinery processing units in Kansas and Utah.

This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Please note that one hundred percent
(100.0%) 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.

Forward-looking Statement:

The statements in this press release relating to matters that are not
historical facts are “forward-looking statements” within the meaning of
the federal securities laws. These statements are based on our beliefs
and assumptions and those of our general partner using currently
available information and expectations as of the date hereof, are not
guarantees of future performance and involve certain risks and
uncertainties. Although we and our general partner believe that such
expectations reflected in such forward-looking statements are
reasonable, neither we nor our general partner can give assurance that
our expectations will prove to be correct. Therefore, actual outcomes
and results could materially differ from what is expressed, implied or
forecast in these statements. Any differences could be caused by a
number of factors including, but not limited to:

• risks and uncertainties with respect to the actual quantities of
  petroleum products and crude oil shipped on our pipelines and/or
  terminalled, stored and throughput in our terminals;
• the economic viability of HollyFrontier Corporation, Delek US
  Holdings, Inc. and our other customers;
• the demand for refined petroleum products in markets we serve;
• our ability to purchase and integrate future acquired operations;
• our ability to complete previously announced or contemplated
  acquisitions;
• the availability and cost of additional debt and equity financing;
• the possibility of reductions in production or shutdowns at refineries
  utilizing our pipeline and terminal facilities;
• the effects of current and future government regulations and policies;
• our operational efficiency in carrying out routine operations and
  capital construction projects;
• the possibility of terrorist attacks and the consequences of any such
  attacks;
• general economic conditions; and
• other financial, operations and legal risks and uncertainties detailed
  from time to time in our Securities and Exchange Commission filings.

The forward-looking statements speak only as of the date made and, other
than as required by law, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

Contacts

Holly Energy Partners, L.P.
Craig Biery, 214-954-6511
Director,
Investor Relations
or
Jared Harding, 214-954-6511
Investor
Relations