HollyFrontier Corp. (NYSE: HFC) and Holly Energy Partners LP (NYSE: HEP) have an agreement in principle for the acquisition by Holly Energy of the newly constructed naphtha fractionation and hydrogen generation units at HollyFrontier’s El Dorado refinery.
Holly Energy is expected to pay HollyFrontier cash consideration of approximately $62 million. Both HollyFrontier and Holly Energy expect that the proposed transaction will close during the fourth quarter of 2015.
In connection with the closing of the proposed transaction, HollyFrontier and Holly Energy plan to enter into 15-year tolling agreements containing minimum quarterly throughput commitments from HollyFrontier. Holly Energy expects that the transaction will be immediately accretive to unitholders.