April 4, 2016 [OPIS] - Holly Energy Partners said it has completed its acquisition of crude oil tankage at HollyFrontier Corp.'s Tulsa, Okla., refinery from an affiliate of Plains All American Pipeline for $39.5 million in cash.
The transaction was effective as of March 31.
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 the acquisition will generate minimum annual revenue of $6.1 million in the first year and will be immediately accretive.
Holly Energy Partners LP, headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, terminaling, storage and throughput services to the petroleum industry, including HollyFrontier Corp. 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, the owner of a Holly Energy operated refined products pipeline running from Salt Lake City, Utah to Las Vegas, Nev., and related product terminals; a 50% interest in Osage Pipe Line Co. LLC, which owns a 135-mile crude oil pipeline from Cushing, Okla., to El Dorado, Kan.; a 50% interest in Frontier Pipeline Co., which owns a 289-mile crude oil pipeline from Casper, Wyo., 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 area.
