Inland US refiners Holly Corp. and Frontier Oil Corp. have agreed to merge in what the companies described as “an all-stock merger of equals transaction.”
Holly operates the 100,000 b/d Navajo refinery at Artesia, NM; a 125,000 b/d refinery in Tulsa; and a 31,000 b/d refinery at Woods Cross, Utah. It also produces and markets asphalt and has pipeline and logistics assets.
Frontier owns a 135,000 b/d refinery at El Dorado, Kan., and a 52,000 b/d refinery in Cheyenne, Wyo. It also markets products along the eastern slope of the Rocky Mountains and in neighbouring plains states.
The new company, HollyFrontier Corp., will be based in Dallas, Holly’s headquarters. It will have an enterprise value estimated at $7 billion.
Mike Jennings, chairman, president, and chief executive officer of Frontier, will be president and CEO of the combined company. Matt Clifton, Holly chairman and CEO, will be executive chairman.
The new board will have seven directors each from the predecessor boards.
