With terminals and pipeline operations in Oklahoma and several other states, Dallas-based Holly Energy Partners, L.P. has announced a $250 million purchase of pipeline operations in Wyoming and Utah.
The company’s making the deal with affiliates of Plains All American Pipeline, L.P.
Holly Energy already owns 50% of Frontier Aspen LLC, owner of the Frontier Aspen Pipeline, but this new agreement will give it 100% ownership. The 298-mile crude pipeline carries oil from Casper, Wyoming to Frontier Station, Utah.
The $250 million deal includes Holly acquiring 75% interest in the SLC Pipeline LLC, the owner of the Salt Lake City Pipeline. The SLC line is 95 miles long and carries crude oil into the Salt Lake City area from the Utah terminal of the Frontier Pipeline.
Holly estimates the new interest in both pipelines will generate an estimated $23 million a year. The government still has to sign off on the purchases as well as the closing conditions such as expiration of the Hart-Scott Rodino antitrust waiting period.
Holly’s financing the transaction with a combination of debt and equity.