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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy company HF Sinclair Corporation (NYSE:DINO) (Dallas, Texas) said Wednesday it has entered a definitive agreement to acquire all outstanding shares of pipeline operator Holly Energy Partners LP (NYSE:HEP) it does not already own in a cash-and-stock acquisition worth $1.44 billion, according to a calculation from Reuters. Industrial Info is tracking nearly $600 million worth of projects from HF Sinclair, more than half of which is attributed to maintenance and upgrades, as well as operational assets from Holly Energy.
According to a related press release, the transaction's closing is expected in the fourth quarter, subject to shareholder approval and "customary closing conditions," after which Holly Energy will no longer be a publicly traded company.
Industrial Info is tracking 18 operational assets from Holly Energy. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for a full list.
"We are pleased to announce this strategic transaction which we believe simplifies our corporate structure, reduces costs and further supports the integration and optimization of our portfolio. We expect the transaction to be accretive to earnings per share and available free cash flow within the first twelve months," HF Sinclair's Chief Executive Officer Tim Go said.
On the most recent earnings conference call, Chief Financial Officer Atanas Atanasov said he expects between $900 million and $1.06 billion in capital expenditures for fiscal-year 2023, down from a previous forecast of $940 million to $1.15 billion. He noted $500 million to $585 million is for maintenance turnaround projects. Industrial Info is tracking seven turnarounds that already wrapped up this year, and in the earnings-related press release, Go noted "the majority of the planned turnaround work" was in the rearview mirror.
HF Sinclair plans to perform fourth-quarter maintenance on the 85,000-barrel-per-day (BBL/d) crude unit and 32,000-BBL/d vacuum unit at the West portion of its 125,000-BBL/d refinery in Tulsa, Oklahoma. Tulsa East has a capacity of 40,000 BBL/d. Subscribers to the GMI Refining Project Database can click here for a detailed project report.
In terms of non-maintenance projects, HF Sinclair expects its upgrade of the crude and vacuum units at Tulsa West will kick off in October and wrap up a month later. HF Sinclair also is exploring a proposed $150 million upgrade of the fluid catalytic cracking unit (FCCU) at Tulsa East, which would replace aging equipment on the 29,000-BBL/d unit. Subscribers can read more information on the Tulsa West and East projects.
The energy company reported second-quarter adjusted net income of $504 million, compared with $1.3 billion for the same period in 2022. The Refining segment accounted for earnings before interest, taxes, depreciation and amortization (EBITDA) of $703 million compared to $1.7 billion in second-quarter 2022, with the decrease "primarily driven by lower refining margins in both the West and Mid-Continent regions and lower refined product sales volumes due to higher maintenance activity," Go said on the earnings conference call.
Refining throughput in the second quarter reached 598,970 BBL/d, down from 663,310 in the same period in 2022. Atanasov said the company expects to run between 585,000 and 615,000 BBL/d in the third quarter.
Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.
Click here for a full list of active projects attributed to HF Sinclair.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
According to a related press release, the transaction's closing is expected in the fourth quarter, subject to shareholder approval and "customary closing conditions," after which Holly Energy will no longer be a publicly traded company.
Industrial Info is tracking 18 operational assets from Holly Energy. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for a full list.
"We are pleased to announce this strategic transaction which we believe simplifies our corporate structure, reduces costs and further supports the integration and optimization of our portfolio. We expect the transaction to be accretive to earnings per share and available free cash flow within the first twelve months," HF Sinclair's Chief Executive Officer Tim Go said.
On the most recent earnings conference call, Chief Financial Officer Atanas Atanasov said he expects between $900 million and $1.06 billion in capital expenditures for fiscal-year 2023, down from a previous forecast of $940 million to $1.15 billion. He noted $500 million to $585 million is for maintenance turnaround projects. Industrial Info is tracking seven turnarounds that already wrapped up this year, and in the earnings-related press release, Go noted "the majority of the planned turnaround work" was in the rearview mirror.
HF Sinclair plans to perform fourth-quarter maintenance on the 85,000-barrel-per-day (BBL/d) crude unit and 32,000-BBL/d vacuum unit at the West portion of its 125,000-BBL/d refinery in Tulsa, Oklahoma. Tulsa East has a capacity of 40,000 BBL/d. Subscribers to the GMI Refining Project Database can click here for a detailed project report.
In terms of non-maintenance projects, HF Sinclair expects its upgrade of the crude and vacuum units at Tulsa West will kick off in October and wrap up a month later. HF Sinclair also is exploring a proposed $150 million upgrade of the fluid catalytic cracking unit (FCCU) at Tulsa East, which would replace aging equipment on the 29,000-BBL/d unit. Subscribers can read more information on the Tulsa West and East projects.
The energy company reported second-quarter adjusted net income of $504 million, compared with $1.3 billion for the same period in 2022. The Refining segment accounted for earnings before interest, taxes, depreciation and amortization (EBITDA) of $703 million compared to $1.7 billion in second-quarter 2022, with the decrease "primarily driven by lower refining margins in both the West and Mid-Continent regions and lower refined product sales volumes due to higher maintenance activity," Go said on the earnings conference call.
Refining throughput in the second quarter reached 598,970 BBL/d, down from 663,310 in the same period in 2022. Atanasov said the company expects to run between 585,000 and 615,000 BBL/d in the third quarter.
Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article and here for a full list of related plant profiles.
Click here for a full list of active projects attributed to HF Sinclair.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
