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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
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
Utah and with today's closing, owns similar assets in
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
About HollyFrontier Corporation