DALLAS--(BUSINESS WIRE)--
Holly Energy Partners, L.P. (NYSE:HEP) ("Holly Energy") announced its
acquisition of crude oil tankage located at HollyFrontier Corporation's
(NYSE:HFC) ("HollyFrontier") Tulsa refinery from an affiliate of Plains
All American Pipeline, L.P. (NYSE:PAA) ("Plains") for $39.5 million in
cash. This transaction was effective as of March 31, 2016.
In connection with the closing of the acquisition, HollyFrontier and
Holly Energy expect to enter into a 10-year throughput agreement
containing minimum quarterly volume commitments from HollyFrontier.
Holly Energy expects this acquisition will generate minimum annual
revenue of $6.1 million in the first year and will be immediately
accretive.
About Holly Energy Partners, L.P.:
Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides
petroleum product and crude oil transportation, terminalling, storage
and throughput services to the petroleum industry, including
HollyFrontier Corporation subsidiaries. The Partnership owns and
operates petroleum product and crude gathering pipelines, tankage and
terminals in Texas, New Mexico, Arizona, Washington, Idaho, Oklahoma,
Utah, Wyoming and Kansas as well as refinery processing units in Kansas.
In addition, the Partnership owns a 75% interest in UNEV Pipeline, LLC,
the owner of a Holly Energy operated refined products pipeline running
from Salt Lake City, Utah to Las Vegas, Nevada, and related product
terminals, a 50% interest in Osage Pipe Line Company, LLC, which owns a
135-mile crude oil pipeline from Cushing, Oklahoma to El Dorado, Kansas,
a 50% interest in Frontier Pipeline Company, which owns a 289-mile crude
oil pipeline from Casper, Wyoming to Frontier Station, Utah and a 25%
interest in SLC Pipeline LLC which owns a 95-mile intrastate pipeline
system serving refineries in the Salt Lake City, Utah area.
The statements in this press release relating to matters that are not
historical facts are "forward-looking statements" within the meaning of
the federal securities laws. Forward-looking statements use words such
as "anticipate," "project," "expect," "plan," "goal," "forecast,"
"intend," "should," "would," "could," "believe," "may," and similar
expressions and statements regarding our plans and objectives for future
operations. These statements are based on our beliefs and assumptions
and those of our general partner using currently available information
and expectations as of the date hereof, are not guarantees of future
performance and involve certain risks and uncertainties. Although we and
our general partner believe that such expectations reflected in such
forward-looking statements are reasonable, neither we nor our general
partner can give assurance that our expectations will prove to be
correct. All statements concerning our expectations for future results
of operations are based on forecasts for our existing operations and do
not include the potential impact of any future acquisitions. Our
forward-looking statements are subject to a variety of risks,
uncertainties and assumptions. If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect,
our actual results may vary materially from those anticipated,
estimated, projected or expected. Certain factors could cause actual
results to differ materially from results anticipated in the
forward-looking statements. These factors include, but are not limited
to:
-
risks and uncertainties with respect to the actual quantities of
petroleum products and crude oil shipped on our pipelines and/or
terminalled, stored and throughput in our terminals; the economic
viability of HollyFrontier Corporation, Alon USA, Inc. and our other
customers;
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the demand for refined petroleum products in markets we serve;
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our ability to purchase and integrate future acquired operations;
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our ability to complete previously announced or contemplated
acquisitions;
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the availability and cost of additional debt and equity financing;
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the possibility of reductions in production or shutdowns at refineries
utilizing our pipeline and terminal facilities;
-
the effects of current and future government regulations and policies;
-
our operational efficiency in carrying out routine operations and
capital construction projects;
-
the possibility of terrorist attacks and the consequences of any such
attacks;
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general economic conditions; and
-
other financial, operations and legal risks and uncertainties detailed
from time to time in our Securities and Exchange Commission filings.
The forward-looking statements speak only as of the date made and, other
than as required by law, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160401005053/en/
Holly Energy Partners, L.P.
Julia Heidenreich, 214-954-6511
Vice
President, Investor Relations
or
Craig Biery, 214-954-6511
Investor
Relations
Source: Holly Energy Partners, L.P.
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