HollyFrontier Corporation and Holly Energy Partners (HEP) have entered into a definitive agreement with The Sinclair Companies to acquire Sinclair Oil Corporation and Sinclair Transportation Company in the United States for a combined value of US$1.8bn. HollyFrontier will form a new entity named HF Sinclair Corporation, which will feature seven refineries in the Rocky Mountains, Mid-Continent, Southwest and Pacific Northwest regions and will have a combined crude oil processing capacity of 678,000 bbl/d. In addition, the combined renewable business is expected to produce around 25,000 bbl/d of renewable diesel. HollyFrontier will also add a footprint of over 300 distributors and 1,500 branded locations across 30 states, with over 132,000 bbl/d of branded fuel sales loations.
Finally, HEP will acquire Sinclair’s integrated crude and refined products pipelines and terminal assets, including approximately 1,920 km of pipelines, eight product terminals and two crude terminals with approximately 4.5 mbl of operated storage, as well as Sinclair’s interests in three pipeline joint ventures including: Powder Flats Pipeline (32.5% non-operated interest), Pioneer Pipeline (49.9% non-operated interest) and UNEV Pipeline (25% non-operated interest; HEP operates the pipeline and owns the remaining 75% interest).
The transactions are expected to be completed in mid-2022, subject to customary closing conditions and regulatory clearance.
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