HollyFrontier seals deal for Sinclair Oil Corporation
HollyFrontier and Holly Energy Partners (HEP) has acquired Sinclair Oil Corporation and Sinclair Transportation Company in the US.
Under the terms of the HEP transaction, Holly will acquire Sinclair’s integrated crude and refined products pipelines and terminal assets, including approximately 1,200 miles of pipelines, eight product terminals and two crude terminals with 4.5 MMbbl of operated storage.
In addition, HEP will acquire Sinclair’s interests in three pipeline joint ventures including the Powder Flats Pipeline, Pioneer Pipeline and the UNEV Pipeline in the US.
“HollyFrontier was formed through a transformational merger that facilitated a decade of significant stockholder returns along with growth and diversification into lubricants and renewables. We believe these transactions with Sinclair represent a similar inflection point, marking the beginning of our next chapter as HF Sinclair,” said Mike Jennings, CEO of HollyFrontier and HEP.
“With this accretive transaction, we are adding an integrated marketing business with an iconic brand while building on the strength of our expanded refining network, increasing our scale and accelerating the growth of our renewables business.
“Together, with Sinclair and the dedicated employees who make it successful, we will be positioned to further build this business, capture synergies, and generate cash that will facilitate both capital return to stockholders and further investment in the business.”
Ross Matthews, Chairman and CEO of Sinclair, added: “As the oil and gas industry has evolved in recent years, we have carefully considered how best to position Sinclair’s refinery and logistics assets and their related operations for the future.
“We’re confident these businesses—and the dedicated employees who operate them—will continue to thrive under this new ownership structure.
“We expect these businesses will benefit significantly from HollyFrontier’s and HEP’s operational expertise, their network of refineries and midstream assets in the Western US and the flexibilities that come with being part of a larger organisation.”
Under the terms of the HEP transaction, Holly will acquire Sinclair’s integrated crude and refined products pipelines and terminal assets, including approximately 1,200 miles of pipelines, eight product terminals and two crude terminals with 4.5 MMbbl of operated storage.
In addition, HEP will acquire Sinclair’s interests in three pipeline joint ventures including the Powder Flats Pipeline, Pioneer Pipeline and the UNEV Pipeline in the US.
“HollyFrontier was formed through a transformational merger that facilitated a decade of significant stockholder returns along with growth and diversification into lubricants and renewables. We believe these transactions with Sinclair represent a similar inflection point, marking the beginning of our next chapter as HF Sinclair,” said Mike Jennings, CEO of HollyFrontier and HEP.
“With this accretive transaction, we are adding an integrated marketing business with an iconic brand while building on the strength of our expanded refining network, increasing our scale and accelerating the growth of our renewables business.
“Together, with Sinclair and the dedicated employees who make it successful, we will be positioned to further build this business, capture synergies, and generate cash that will facilitate both capital return to stockholders and further investment in the business.”
Ross Matthews, Chairman and CEO of Sinclair, added: “As the oil and gas industry has evolved in recent years, we have carefully considered how best to position Sinclair’s refinery and logistics assets and their related operations for the future.
“We’re confident these businesses—and the dedicated employees who operate them—will continue to thrive under this new ownership structure.
“We expect these businesses will benefit significantly from HollyFrontier’s and HEP’s operational expertise, their network of refineries and midstream assets in the Western US and the flexibilities that come with being part of a larger organisation.”
