HF Sinclair to buy remaining stake in Holly Energy (updated)

Holly Energy Partners LP

16/08/2023 11:54

(Adds deal details, background in paragraph 2-6)
       Aug 16 (Reuters) - HF Sinclair  DINO.N  will acquire all
the outstanding shares of smaller oil pipeline operator Holly
Energy Partners  HEP.N  that it does not already own in a cash
and stock deal, the companies said on Wednesday.
    Holly Energy shareholders will receive 0.315 shares and $4
for every share held, which represents a premium of 2% to
Holly's last closing price. HF Sinclair holds 47.16% of Holly
Energy, as per Refinitiv data.
    The oil and gas industry has financed billions of dollars in
pipeline and storage products under Master Limited Partnerships
(MLPs) since former President Ronald Reagan signed legislation
in 1986, allowing them as a way to spur energy investment.
    The U.S. refining and midstream industries have consolidated
in recent years, a process which accelerated after the
coronavirus pandemic drastically reduced demand for
transportation fuels.
    Separately, HF Sinclair's board of directors has authorized
$1 billion in share buybacks.

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))