Press "Enter" to skip to content

Dallas HollyFrontier Corp Buys Sinclair Oil Assets to Diversify Fuel Renewability

Dallas HollyFrontier Corp plans to pay $2.6 billion for almost all of Sinclair Oil’s assets, adding new refining, pipeline, and storage facilities in the U.S. Rocky Mountain region. The deal comes as U.S. fuel demand recovers from last year’s COVID 19-led record lows, with states reopened and road travel trending near pre-pandemic levels.

HollyFrontier Chief Executive Mike Jennings said that this is exceptionally transformative for us and differentiates us from other downstream businesses. The Sinclair deal follows Dallas Corpannounced that it has plans to buy Anacortes, Washington refinery from Royal Dutch Shell Plc by the end of 2021 for about $500 million.

Dallas HollyFrontier Corp Buys Sinclair Oil Assets to Diversify Fuel RenewabilityA new company, HF Sinclair Corp, will replace HollyFrontier as the public company trading on the New York Stock Exchange. Dallas based said that at the closing of the deal, expected in mid-2022,shares would convert into shares of HF Sinclair on a one-for-one basis. HF Sinclair will then issue about 60.2 million shares to stockholders of The Sinclair Companies, Sinclair Oil’s parent, giving them 26.75% of proforma ownership in the new company.

As part of the deal, HollyFrontier will buy Sinclair’s branded marketing unit, renewable diesel unit, and two Rocky Mountain-based refineries. Holly Energy Partners HollyFrontier transportation business will buy Sinclair’s 1,200 miles of pipeline assets and storage terminals with around 4.5 million barrels of capacity.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *