HollyFrontier Closes Sinclair Oil Acquisition & Establishes New Parent Company

DALLAS — HollyFrontier Corp. and Holly Energy Partners L.P. (HEP) announced the establishment of HF Sinclair Corp. as the new parent holding company of HollyFrontier and HEP. This also marks the completion of their respective acquisitions of Sinclair Oil Corp. and Sinclair Transportation Co. from The Sinclair Cos.

HF Sinclair will be the parent company of a marketing business featuring the Sinclair brand, comprising more than 1,300 independent wholesale branded sites located across 30 states. Sinclair is also known for its mascot, a green dinosaur named Dino, and HF Sinclair’s stock now trades on the New York Stock Exchange under the symbol "DINO."

Convenience Store News announced the acquisition in August 2021, after first reporting its possibility in 2020. The transaction is valued at $1.8 billion.

"The completion of our transactions and the launch of HF Sinclair marks the start of the next phase of our company's history," said Mike Jennings, CEO of HF Sinclair and HEP. "We are moving forward as a more diverse, downward-integrated business with scale that is positioned to drive growth and capital returns to our shareholders. We are also optimistic about the significantly expanded scale of HEP, which will benefit from long-term commitments from HF Sinclair. I am honored to welcome the talented Sinclair team to our organizations, and I look forward to working closely with them to capture the significant growth and value-creation opportunities ahead at both HF Sinclair and HEP."

In addition to its convenience store locations, HF Sinclair is also an integrated downstream petroleum and renewable fuels company featuring:

• An expanded refining business that includes seven complex refineries across the Mid Continent Southwest, Rocky Mountain and Pacific Northwest that convert discounted, heavy and sour crudes into a high percentage of gasoline, diesel and other high-value refined products.
• A renewables business with three production facilities that are expected to produce approximately 380 million gallons of renewable diesel annually.
• A multinational lubricants business that produces specialty products and base oils, marketed under the Petro-Canada Lubricants, Sonneborn, Red Giant Oil and HollyFrontier Specialty Products brands.
• A logistics business under HEP with an integrated logistics network connecting key crude and product regions and interests in strategic joint ventures that provide access to finished product pipelines and storage.

Across its businesses, HF Sinclair will build on its legacy companies' ongoing environmental, social and governance efforts with increased renewables scale, a shared commitment to health and safety practices that best serve employees and communities, and a focus on risk management, the company stated in a news release.

With the addition of Sinclair's integrated crude and refined products midstream business, HEP significantly extends the reach of its network of pipelines and storage facilities, enhancing its earning power to capture new organic growth opportunities and expects to increase cash returns to unitholders, added the company.

HollyFrontier's senior management team will continue to operate HF Sinclair, which is headquartered in Dallas, with combined business offices in Salt Lake City. HEP's senior management team will continue to operate HEP under the name Holly Energy Partners L.P.