HollyFrontier Closes Acquisition of Puget Sound Refinery
HollyFrontier Corporation (NYSE: HFC) has completed the acquisition of the Puget Sound Refinery from Shell, totaling $613.6 million. This includes a base purchase price of $350 million and hydrocarbon inventory valued at approximately $266.2 million. The transaction is expected to enhance HFC’s earnings per share and free cash flow immediately. The refinery, located in Anacortes, Washington, has a capacity of 149,000 barrels per day and is strategically positioned to supply the Pacific Northwest with transportation fuels.
- Acquisition increases HFC's scale and geographic footprint in refining operations.
- Transaction expected to be immediately accretive to earnings per share and free cash flow.
- Strategically located facility enhances supply chain efficiency with advantaged Canadian crude sourcing.
- None.
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Positions HFC in
West Coast product markets with strong demand - Increases scale and geographic footprint of HFC’s refining operations
- Transaction to be immediately accretive to earnings and free cash flow
In addition to refining assets and an on-site cogeneration facility, the transaction includes a deep-water marine dock, a light product loading rack, a rail terminal, and storage tanks with approximately 5.8 million barrels of crude, product and other hydrocarbon storage capacity.
About
HFC Forward Looking Statement:
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the
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our ability to successfully integrate the operation of the
Puget Sound refinery with our existing operations; -
(i) our ability to successfully close the
Sinclair acquisition, which requires receipt of approval from our stockholders and certain regulatory approvals (including clearance by antitrust authorities necessary to complete theSinclair acquisition on the terms and timeline desired); (ii) disruption theSinclair acquisition may cause to customers, vendors, business partners and our ongoing business; (iii) once closed, our ability to integrate the operations ofSinclair with our existing operations and fully realize the expected synergies of theSinclair acquisition on the expected timeline; and (iv) the cost and potential for a delay in closing as a result of litigation challenging theSinclair acquisition; - the demand for and supply of crude oil and refined products, including uncertainty regarding the effects of the continuing COVID-19 pandemic on future demand;
- risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets;
- the spread between market prices for refined products and market prices for crude oil;
- the possibility of constraints on the transportation of refined products or lubricant and specialty products;
- the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand;
- the effects of current and future governmental and environmental regulations and policies, including the effects of current and future restrictions on various commercial and economic activities in response to the COVID-19 pandemic;
- the availability and cost of financing to the Company;
- the effectiveness of the Company’s capital investments and marketing strategies;
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the Company’s efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects, such as the conversion of the
Cheyenne Refinery to a renewable diesel facility and the construction of theArtesia renewable diesel unit and pretreatment unit, on time and within budget; - the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects;
- the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations;
- the possibility of terrorist or cyberattacks and the consequences of any such attacks;
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general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in
the United States ; - continued deterioration in gross margins or a prolonged economic slowdown due to COVID-19 could result in an impairment of goodwill and / or additional long-lived asset impairments; and
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other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s
Securities and Exchange Commission filings.
The forward-looking statements speak only as of the date made and, other than as required by law,
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or
Investor Relations
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