HF Sinclair and Holly Energy Partners announce merger
In a significant move within the energy sector, Dallas, Texas-based HF Sinclair Corporation and Holly Energy Partners, L.P. (HEP) have unveiled their merger agreement. This strategic decision will see HF Sinclair acquiring all outstanding common units of HEP in a combination of its own common stock and cash.
HF Sinclair is a diversified, innovative energy company that manufactures and sells products such as gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, and specialty and modified asphalt, among others.
Holly Energy Partners is a Delaware limited partnership formed in early 2004 by HollyFrontier. HEP provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including subsidiaries of HF Sinclair Corporation.
The merger, announced on August 16, 2023, is not just a business transaction but a testament to both companies’ commitment to optimising their portfolio, simplifying their corporate structure, and reducing operational costs. The deal is expected to close by the end of the fourth quarter in 2023.
The location of both companies in Dallas, a hub for energy enterprises, has facilitated their collaboration over the years. The merger’s announcement has been anticipated by industry experts, given the strategic importance of such a move in the current energy landscape.
The transaction’s details reveal that upon closing, HEP unit holders will receive both HF Sinclair common stock and cash, a decision that underscores the merger’s significance. This move is expected to bolster the companies’ position in the energy market, especially in the unpredictable global petroleum scenario.
Despite facing challenges, including the global Covid-19 pandemic and several severe weather-related events, the companies have remained resilient. Their combined efforts and shared vision for the future have ensured that they stay on track with their goals.
