-HollyFrontier Corporation (NYSE: HFC) (“HollyFrontier”) today announced the completion of the previously announced acquisition of the Puget Sound Refinery, the on-site cogeneration facility and related logistics assets, from Equilon Enterprises LLC d/b/a Shell Oil Products US (“Shell”) for aggregate cash consideration of $613.6 million, which consists of a base cash purchase price of $350.0 million, hydrocarbon inventory with an estimated closing value of approximately $266.2 million and other closing adjustments and accrued liabilities of $2.6 million. HollyFrontier expects the transaction to be immediately accretive to HollyFrontier’s earnings per share and free cash flow.
Mike Jennings, President and CEO of HollyFrontier commented, “The Puget Sound Refinery has a strong record of financial and operational performance that we believe will complement our existing refining business. The refinery supplies transportation fuels into the premium Pacific Northwest region and sources advantaged Canadian crude, further enhancing our refining asset base. We are committed to the continued safe and environmentally responsible operations of the facility and welcome Puget Sound’s highly skilled workforce to the HollyFrontier family.”
The Puget Sound Refinery is strategically located on approximately 850 acres in Anacortes, Washington, approximately 80 miles north of Seattle and 90 miles south of Vancouver. The 149,000 barrel per day facility is a large, high quality and complex refinery with catalytic cracking and delayed coking units and is well positioned geographically and logistically to source advantaged Canadian and Alaskan North Slope (“ANS”) crudes.