Attached files
file | filename |
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8-K - FORM 8-K - HollyFrontier Corp | d72032e8vk.htm |
EX-10.1 - EX-10.1 - HollyFrontier Corp | d72032exv10w1.htm |
EX-10.2 - EX-10.2 - HollyFrontier Corp | d72032exv10w2.htm |
EX-10.4 - EX-10.4 - HollyFrontier Corp | d72032exv10w4.htm |
EX-10.3 - EX-10.3 - HollyFrontier Corp | d72032exv10w3.htm |
EX-10.5 - EX-10.5 - HollyFrontier Corp | d72032exv10w5.htm |
Exhibit 99.1
Holly Energy Partners and Holly Corporation Announce the Acquisition of Storage and Loading
Facilities from Holly Corporation
DALLAS, TX, April 1, 2010 Holly Energy Partners, L.P. (Holly Energy) (NYSE-HEP) and Holly
Corporation (Holly) (NYSE-HOC) today announced that they have completed their previously
announced transaction for the sale by Holly to Holly Energy of petroleum storage tanks with
approximately 2 million barrels of capacity and certain rail loading rack facilities at Hollys
Tulsa refinery site as well as an asphalt truck loading rack at Hollys Lovington, New Mexico
facility.
Holly Energy has paid Holly $93 million in cash for these assets. Holly and Holly Energy have
entered into 15-year agreements whereby Holly Energy will provide storage and loading services to
Holly utilizing these assets. These agreements provide for minimum annual revenues to Holly Energy
of $13.9 million.
This transaction has been approved by the Boards of Directors for both Holly Energy and Holly after
approvals by the Conflicts Committee for Holly Energy, which is comprised solely of independent
outside directors for Holly Energy, and the Holly Audit Committee, which is composed solely of
outside directors of Holly. The Boards of Directors for both companies have obtained fairness
opinions from financial advisory firms in connection with this proposed transaction.
Holly acquired the Tulsa storage and rail loading facilities as part of its refinery purchase from
Sinclair Tulsa Refinery Company (Sinclair) on December 1, 2009 as part of the same transaction in
which Holly Energy acquired approximately 1.4 million barrels of storage capacity as well as
certain loading racks and pipeline receiving and delivery facilities directly from Sinclair. With
the completion of todays announced transaction, Holly Energy, through its subsidiaries, now owns a
substantial portion of the in-service storage and logistic assets at Hollys integrated Tulsa
refinery location and will provide storage, receiving, delivery and loading requirements of the
facility to Holly in support of Hollys refining operations.
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 Holly
Corporation, which currently owns a 34% interest (which includes a 2% general partner interest) in
the Partnership. The Partnership owns and operates petroleum product and crude pipelines, tankage,
terminals and loading facilities located in Texas, New Mexico, Arizona, Oklahoma, Washington, Idaho
and Utah. In addition, the Partnership owns a 25% interest in SLC Pipeline LLC, a transporter of
crude oil in the Salt Lake City area.
About Holly Corporation:
Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer
that produces high value light products such as gasoline, diesel fuel, jet fuel and high value
specialty lubricants. Holly operates through its subsidiaries a 100,000 barrel per stream day
(BPSD) refinery located in Artesia, New Mexico, a 125,000 BPSD refinery located in Tulsa,
Oklahoma, and a 31,000 BPSD refinery in Woods Cross, Utah.
The following is a safe harbor statement under the Private Securities Litigation Reform Act of
1995: 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, including, but not
limited to, statements identified by the words, expect, anticipate, believe, plan,
intend, will, and forecast, and similar expressions and statements regarding our business
strategy, plans and objectives for future operations. These statements are based on our beliefs and
assumptions using currently available information and expectations as of the date hereof, are not
guarantees of future events or performance and involve certain risks and uncertainties. Important
factors that could cause our actual results to differ materially from the expectations reflected in
our forward-looking statements include our ability to complete and integrate announced
acquisitions, and those additional risks contained in our filings made from time to time with the
Securities and Exchange Commission. Although we believe that the expectations reflected in these
forward-looking statements are reasonable, we cannot assure you that our expectations will prove
correct. Therefore, actual outcomes and results could materially differ from what is expressed,
implied or forecast in these statements. 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.
FOR FURTHER INFORMATION, contact
Bruce R. Shaw, Senior Vice President & CFO
M. Neale Hickerson, Vice President, Investor Relations
M. Neale Hickerson, Vice President, Investor Relations
Holly Corporation / Holly Energy Partners L.P.
214/871-3555
214/871-3555