Holly Energy to buy US crude pipeline, tank assets from HollyFrontier
Holly Energy has agreed to acquire pipeline, tankage, loading rack and crude-receiving assets from HollyFrontier at that company’s refineries in El Dorado, Kansas, and Cheyenne, Wyoming.
The purchase price is about $340 million, the companies said.
In connection with the closing of the proposed deal HollyFrontier and Holly Energy expect to enter into 15-year throughput agreements containing minimum annual revenue commitments from HollyFrontier.
Both HollyFrontier and Holly Energy expect the deal will close in November, after the anticipated record date for third quarter 2011 distributions for Holly Energy common units.
These assets being acquired consist of:
- From HollyFrontier's El Dorado refinery:
- approximately 3.7 million bbl of hydrocarbon storage tanks;
- one refined products truck loading rack and one propane truck loading rack
- related refined product pipeline connections
- From HollyFrontier's Cheyenne refinery:
- approximately 1.8 million bbl of hydrocarbon storage tanks;
- one refined products truck loading rack, two propane loading spots, and three crude oil LACTs;
- a crude receiving pipeline
Holly Energy expects that this acquisition will result in an estimated $47 million of incremental annual revenue and that the transaction will be accretive to unit holders, it said.
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