Monday, December 7, 2009

Holly Partners announces acquisition of Roadrunner & Beeson Pipelines

DALLAS, Texas - Holly Energy Partners, L.P. and Holly Corp. on Dec. 1 announced the acquisition by Holly Partners from Holly Corp. of the Roadrunner Pipeline, a newly constructed 65-mile, 16-inch pipeline connecting Holly's refining facilities in Lovington, N.M., to the terminus of a Centurion pipeline extending between West Texas and Cushing, Okla. This connection provides Holly's refining facilities in New Mexico with direct access to a wide variety of crude oils available at Cushing.
Also included in the acquisition is a newly constructed 35-mile, eight-inch pipeline that connects Holly Energy's New Mexico crude oil gathering system to Holly's Lovington, N.M. refining facility. This pipeline provides added flexibility for Holly Corp. to move crude oil from Holly Partners' gathering system to its Lovington, N.M., facilities as well as its Artesia, N.M., facility for processing.
The purchase price for these newly constructed pipelines was $46.5 million, which was paid in cash.
Holly Partners expects the pipeline acquisitions to result in approximately $9.2 million of incremental annual revenue.

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