HollyFrontier, Holly Energy okay logistics deal

By OGJ editors

Holly Energy Partners LP has agreed to acquire pipelines and other logistical properties at HollyFrontier Corp.’s El Dorado, Kan., and Cheyenne, Wyo., refineries for $340 million.

At closing, the companies will enter into 15-year throughput agreements with minimum annual revenue commitments by HollyFrontier, from which Holly Energy expects additional revenue of $47 million/year.

Holly Energy will pay in promissory notes with an aggregate original principal amount of $150 million and about 3.8 million common units valued at $190 million.

At HollyFrontier’s 150,000-b/d El Dorado refinery, the transaction covers storage tanks with 3.7 million bbl of total capacity, a truck-loading rack for oil products and another rack for propane, and related product pipeline connections.

Properties covered by the deal at the 52,000-b/d Cheyenne refinery include 1.8 million bbl of storage tanks, a products-loading rack, two propane-loading spots, three crude oil lease automatic custody transfer units, and a crude oil receiving pipeline.

A subsidiary of HollyFrontier holds a 34% interest in Holly Energy, including a 2% general partner interest. Both companies are based in Dallas.

Related Articles

Total, InterOil close Papua New Guinea deal

03/26/2014 InterOil and Total SA have finalized a revised sales and purchase agreement for the Elk-Antelope gas-condensate field in petroleum retention licenc...

LNG exports’ immediate geopolitical impacts limited, senators told

03/26/2014 Direct geopolitical impacts from the US authorizing LNG exports more quickly would be limited, witnesses told a US Senate committee. But global mar...

WoodMac: US tight-oil market ‘too robust to bust’

03/25/2014 A drop in global oil price levels or a significant widening of the differential between global oil prices and inland realizations are just two of t...

Gorder named Valero chief executive officer

03/25/2014

Joe Gorder, Valero Energy Corp. president and chief operating officer, has been named chief executive officer, succeeding Bill Klesse.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected