HollyFrontier sells pipeline, tank, other crude oil assets in El Dorado, Kansas, and Cheyenne, Wyoming, to Holly Energy Partners for US$340M
November 9, 2011
– HollyFrontier Corp. said on Wednesday that it has closed its sale of pipeline, tank, and other crude oil assets to Holly Energy Partners LP for $340 million.
The assets were at HollyFrontier's refineries in El Dorado, Kan., and Cheyenne, Wyo.
The price included $150 million in promissory notes and $190 million in Holly Energy common units. The deal also includes revenue commitments that run for 15 years.
Holly Energy expects the acquisition to add $47 million in annual revenue and will add to its cash flow.
HollyFrontier was formed by the July 1 combination of refinery operators Frontier Oil and Holly. The company owns 44 percent of Holly Energy Partners. Both are based in Dallas.
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