--Holly Corp. Sells Roadrunner Pipeline to Holly Energy

Holly Corp. said in a news release that it has completed the previously announced acquisition of Sinclair Oil Corp.’s 75,000 bpd refinery in Tulsa, Oklahoma, tankage and loading racks.

When the deal was announced on Oct. 20, Holly reported the purchase price for the refinery and storage would be $128.5 million.

In a separate announcement, Holly Energy announced the acquisition of the Roadrunner pipeline, a newly constructed 16-inch, 65 mile pipeline, from Holly Corp. The pipeline connects Holly’s refining facilities in Lovington, New Mexico, to the terminus of a Centurion pipeline extending between West Texas and Cushing, Oklahoma.

Also included in this acquisition is a newly constructed 8-inch, 35 mile pipeline that connects Holly Energy’s crude oil gathering system in N.M. to Holly’s Lovington facility. The partnership said the pipeline will provide added flexibility for Holly in moving crude oil from Holly Energy’s gathering systems to its Lovington facilities as well as its facility in Artesia, N.M., for processing.

The purchase price for these pipelines was $46.5 million, which was paid in cash. Holly Energy expects these acquisitions will result in approximately $9.2 million of incremental annual revenue.

“This is the last step needed to complete a pipeline connection between Cushing, Oklahoma and the Holly refinery complex in New Mexico,” said Matt Clifton, chairman and CEO of Holly and Holly Energy.

In connection with the pipelines transaction, Holly and Holly Energy entered into a long-term 15-year contract, which provides a minimum revenue commitment on the part of Holly to Holly Energy, similar to other long-term contracts already in place between the two entities.

“We are pleased that Holly Energy was able to acquire these key logistic assets with an associated additional stable revenue stream from Holly,” continued Clifton. “Holly will benefit from having the additional crude flexibility this pipeline connection provides.”

Holly Corp., headquartered in Dallas, Texas, is an independent petroleum refiner and marketer. A subsidiary of Holly also owns a 34 percent interest including the general partner interest in Holly Energy Partners, L.P. Holly Energy Partners provides petroleum product and crude oil transportation, tankage and terminal services