DALLAS, July 1, 2011 /PRNewswire/ -- HollyFrontier
Corporation (NYSE: HFC) today announced the completion of the
merger of Holly Corporation (NYSE: HOC) ("Holly") and Frontier Oil
Corporation (NYSE: FTO) ("Frontier"). HollyFrontier Corporation
combines two leading independent refiners to create the most
profitable (on a per barrel basis) independent refiner in the
U.S.
HollyFrontier Corporation, which has a refining capacity in
excess of 440,000 barrels-per-day (bpd) across five refineries,
serves the niche mid-continent, Rocky Mountain and southwestern
refining markets and has access to growing regional domestic and
Canadian crude oil supplies.
In a joint statement, Matt
Clifton, Executive Chairman, and Mike Jennings, President and Chief Executive
Officer, said: "HollyFrontier has significant refining capacity in
fast growing, traditionally high demand areas and will take
advantage of diversified revenue sources, expanded infrastructure
and increased scale of assets. HollyFrontier is committed to safe,
reliable and environmentally responsible operations, and to
outstanding corporate citizenship. The completion of this merger is
a significant event for our shareholders, who will benefit from the
synergies of this combination and from the significant growth
potential that we anticipate as one of the largest independent
refiners in the U.S. We are excited to move forward and to deliver
on the promise of this transaction to create value for
shareholders."
In accordance with the terms of the merger, Frontier
shareholders received 0.4811 Holly shares for each share of
Frontier common stock they owned at closing. The combined entity
will begin trading today under the symbol HFC.
Deutsche Bank Securities Inc. and Morgan Stanley & Co.
Incorporated acted as financial advisors to Holly and Vinson &
Elkins LLP was its legal advisor. Citi and Credit Suisse Securities
(USA) LLC acted as financial
advisors to Frontier and Andrews Kurth LLP was its legal
advisor.
About HollyFrontier Corporation
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum
refiner and marketer that produces high value light products such
as gasoline, diesel fuel, jet fuel and other specialty products.
HollyFrontier operates through its subsidiaries a 100,000 barrels
per stream day ("bpsd") refinery located in Artesia, New Mexico, a 125,000 bpsd refinery
in Tulsa, Oklahoma, a 31,000 bpsd
refinery in Woods Cross, Utah, a
135,000 bpsd refinery located in El
Dorado, Kansas, and a 52,000 bpd refinery located in
Cheyenne, Wyoming. HollyFrontier
markets its refined products principally in the Southwest U.S., the
Rocky Mountains extending into the Pacific Northwest and in other
neighboring Plains states. A subsidiary of HollyFrontier also owns
a 34% interest (including the general partner interest) in Holly
Energy Partners, L.P.
Information about the Company may be found on its website at
http://www.hollyfrontier.com
The following is a "safe harbor" statement under the Private
Securities Litigation Reform Act of 1995: The statements in this
press release relating to matters that are not historical facts are
"forward-looking statements" based on management's beliefs and
assumptions using currently available information and expectations
as of the date hereof, are not guarantees of future performance and
involve certain risks and uncertainties, including those contained
in our filings with the Securities and Exchange Commission.
Although we believe that the expectations reflected in these
forward-looking statements are reasonable, we cannot assure you
that our expectations will prove correct. Therefore, actual
outcomes and results could materially differ from what is
expressed, implied or forecasted in such statements. Any
differences could be caused by a number of factors, including, but
not limited to, risks and uncertainties with respect to the actions
of actual or potential competitive suppliers of refined petroleum
products in the Company's markets, the demand for and supply of
crude oil and refined products, the spread between market prices
for refined products and market prices for crude oil, the
possibility of constraints on the transportation of refined
products, the possibility of inefficiencies, curtailments or
shutdowns in refinery operations or pipelines, effects of
governmental and environmental regulations and policies, the
availability and cost of financing to the Company, the
effectiveness of the Company's capital investments and marketing
strategies, the Company's efficiency in carrying out construction
projects, the ability of the Company to acquire refined product
operations or pipeline and terminal operations on acceptable terms
and to integrate any future acquired operations, the possibility of
terrorist attacks and the consequences of any such attacks, general
economic conditions, risks and uncertainties with respect to our
ability to realize fully or at all the anticipated benefits of the
merger between Holly and Frontier and other financial, operational
and legal risks and uncertainties detailed from time to time in the
Company's Securities and Exchange Commission filings. The
forward-looking statements speak only as of the date made and,
other than as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
SOURCE HollyFrontier Corporation