DALLAS, Nov. 9, 2011 /PRNewswire/ -- Holly Energy Partners, L.P. ("Holly Energy") (NYSE: HEP) and HollyFrontier Corporation ("HollyFrontier") (NYSE: HFC) today announced that they have completed the sale by HollyFrontier to Holly Energy of certain pipeline, tankage, loading rack and crude receiving assets located at HollyFrontier's El Dorado, Kansas and Cheyenne, Wyoming refineries for $340 million. This transaction was completed today and is effective as of November 1, 2011.
Consideration for the purchase price consisted of promissory notes with an aggregate principal amount of $150 million and approximately 3.8 million Holly Energy common units valued at $190 million.
In connection with the closing of the acquisition, HollyFrontier and Holly Energy have entered into 15-year throughput agreements containing minimum annual revenue commitments from HollyFrontier. Holly Energy expects this acquisition will result in an estimated $47 million of incremental annual revenue and will be accretive to distributable cash flow.
About Holly Energy Partners L.P.:Holly Energy, headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, tankage and terminal services to the petroleum industry, including HollyFrontier, a subsidiary of which, with the closing of the transaction described in this release, currently owns a 44% interest (which includes 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 and Utah and with today's closing, owns similar assets in 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. Information about Holly Energy Partners L.P. may be found on its website at http://www.hollyenergy.com. About HollyFrontier Corporation