HollyFrontier Expands Midstream, Squeezes Money From Pipeline, Dropdown Deals

HollyFrontier Corp.’s (HFC) aim is simple: get higher values at the bottom of the barrel.

A pair of deals is the latest step in incrementally upping the company’s take home pay.

Affiliate Holly Energy Partners LP (HEP) said Sept. 3 it has acquired a 50% interest in Frontier Pipeline Co., owner of the Frontier Pipeline of Wyoming, from an affiliate of Enbridge Inc. (ENB).

HollyFrontier also executed a dropdown to Holly Energy that gives it a stake in a refinery locked in with Cushing, Okla.

The Frontier Pipeline Co. will continue to be operated by an affiliate of MLP Plains All American Pipeline LP (PAA), which owns the remaining 50% interest.

The 296-mile crude oil line runs from Casper, Wyo., to Frontier Station, Utah. It has a 72,000 barrel per day (bbl/d) capacity. The line supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection 

Darren Barbee
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