Attached files
file | filename |
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8-K - FORM 8-K - HollyFrontier Corp | d85629e8vk.htm |
EX-10.2 - EX-10.2 - HollyFrontier Corp | d85629exv10w2.htm |
EX-10.3 - EX-10.3 - HollyFrontier Corp | d85629exv10w3.htm |
EX-10.6 - EX-10.6 - HollyFrontier Corp | d85629exv10w6.htm |
EX-10.1 - EX-10.1 - HollyFrontier Corp | d85629exv10w1.htm |
EX-10.4 - EX-10.4 - HollyFrontier Corp | d85629exv10w4.htm |
EX-10.5 - EX-10.5 - HollyFrontier Corp | d85629exv10w5.htm |
Exhibit 99.1
Holly Energy Partners and HollyFrontier Corporation Announce the Completion of Acquisition of
Pipeline and Tankage Assets
DALLAS, TX, November 9, 2011 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 HollyFrontiers 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 todays
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
HollyFrontier 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 other
specialty products. HollyFrontier Corporation operates through its subsidiaries a 135,000 barrels
per stream day (bpsd) refinery located in El Dorado, Kansas, a 125,000 bpsd refinery in Tulsa,
Oklahoma, a 100,000 bpsd refinery located in Artesia, New Mexico, a 52,000 bpsd refinery located in
Cheyenne, Wyoming and a 31,000 bpsd refinery in Woods Cross, Utah. HollyFrontier markets
its refined products principally in the Southwest U.S., the Rocky Mountains extending into the
Pacific Northwest and in other neighboring Plains states. With the closing of the transaction
described in this release, subsidiaries of HollyFrontier own a 44% interest (including a 2% general
partner interest) in Holly Energy.
Information about HollyFrontier Corporation may be found on its website at
http://www.hollyfrontier.com.
The transactions described in this press release were all completed by subsidiaries of
HollyFrontier and Holly Energy.
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. Forward looking
statements use words such as anticipate, project, expect, plan, goal, forecast, will,
intend, could, believe, may, and similar expressions and statements regarding our plans and
objectives for future operations. These statements are based on our beliefs and assumptions and
those of Holly Energys 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 Holly Energys general partner believe that such expectations
reflected in such forward-looking statements are reasonable, neither we nor Holly Energys general
partner can give assurance that our expectations will prove to be correct. Such statements are
subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may
vary materially from those anticipated, estimated, projected or expected. Certain factors could
cause actual results to differ materially from results anticipated in the forward-looking
statements. These factors include, but are not limited to:
| risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on Holly Energys pipelines and/or terminalled in Holly Energys terminals; | |
| the economic viability of HollyFrontier Corporation, Alon USA, Inc. and Holly Energys other customers; | |
| the demand for refined petroleum products in markets HollyFrontier and Holly Energy serve; | |
| HollyFrontiers and Holly Energys ability to successfully purchase and integrate additional operations in the future; | |
| HollyFrontiers and Holly Energys 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 HollyFrontier refineries, including refineries utilizing Holly Energys pipeline and terminal facilities; |
| the effects of current and future government regulations and policies; | |
| HollyFrontiers and Holly Energys 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 HollyFrontiers and Holly Energys 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.
FOR FURTHER INFORMATION, Contact:
M. Neale Hickerson,
Vice President-Investor Relations,
HollyFrontier Corporation / Holly Energy Partners
214-871-3555
Vice President-Investor Relations,
HollyFrontier Corporation / Holly Energy Partners
214-871-3555