HollyFrontier to Buy Sinclair Oil
Boyett Acquires Danielson Fuel Services

HOLLYFRONTIER TO BUY SINCLAIR OIL

SALT LAKE CITY, UT. — HollyFrontier has announced that they will acquire Sinclair Oil Corporation and Sinclair Transportation Company from The Sinclair Companies for approximately $1.8 billion in stock.

Included in the deal are Sinclair's branded marketing business "and all commercial activities." HollyFrontier will add a footprint of over 300 distributors and 1,500 branded locations across 30 states, with over 2 billion gallons of annual branded fuel sales. The combined company will have an opportunity to expand the Sinclair brand across all of the Western territory covered by Sinclair — and beyond.

The sale also covers Sinclair's renewable diesel business, which processes soybean oil and tallow into approximately 10,000 barrels per day of renewable diesel that is sold into California, and its traditional oil refineries in Sinclair, WY., and Casper, WY.

Also included are Sinclair Oil's logistics and storage assets, including approximately 1,200 miles of pipelines, two crude oil terminals and eight light product terminals with approximately 4.5 million barrels of operated storage in the Rocky Mountain territory.

HollyFrontier's existing senior management team will operate the combined company.

Sinclair officials say "It is expected that the vast majority of Sinclair Oil employees will be invited to continue in their positions" following the merger.

HollyFrontier will also acquire Sinclair's interests in the Power Flats Pipeline, the Pioneer Pipeline, and the UNEV Pipeline.

The new, combined company will be called HF Sinclair Corporation and it will replace HollyFrontier as the public company trading on the NYSE. It will be headquartered in Dallas, TX., and maintain Sinclair's current offices in Salt Lake City, UT.

"As the oil and gas industry has evolved in recent years, we have carefully considered how best to position Sinclair Oil's refinery and logistics assets and their related operations for the future," said Ross Matthews, Sinclair Oil chairman and CEO, announcing the deal. "We're confident these businesses—and the dedicated employees who operate them—will continue to thrive under this new ownership structure.

"Sinclair Oil's employees bring a wealth of talent and capability, including in the production of renewable diesel, which will be an important and growing line of business for HF Sinclair. Sinclair Oil also adds to HF Sinclair an outstanding and extremely successful brand marketing team. The transaction will help accelerate the ongoing rapid expansion of our Sinclair Oil-branded retail sites and the iconic Dino brand."

Matthews added, "We anticipate a seamless transition for our employees, distributors and other stakeholders following the closing of the transaction."

"HollyFrontier was formed through a transformational merger," stated Mike Jennings, Chief Executive Officer of HollyFrontier and HEP. With this transaction, "we are adding an integrated marketing business with an iconic brand while building on the strength of our expanded refining network, increasing our scale and accelerating the growth of our renewables business. Together, with Sinclair and the dedicated employees who make it successful, we will be positioned to further build this business."

Carol Holding, chairman of The Sinclair Companies, added, "My husband, Earl, and I have always known that employees are the key to our company's success. I am grateful for the efforts of each of the people who have worked alongside of us. Together, we have dreamed impossible dreams and many came true. Combining our strong and healthy oil business with this great team at HollyFrontier and HEP is our way of providing continued growth and new opportunities for our employees. I am proud of the reputation we have for hard work, honesty and integrity. I know these will be important values at HF Sinclair, where our people will continue to serve with pride."

The acquisition is expected to be completed by mid-2022, following regulatory approvals.

BOYETT ACQUIRES DANIELSON FUEL SERVICES

MODESTO, CA. — Boyett Petroleum has acquired the retail and wholesale fuels distribution business of Danielson Fuel Services (DFS) of Norman, OK. The purchase price was not disclosed.

The sale closed August 3.

Danielson Fuel Services supplied fuel under the Conoco, Phillips 66, Valero, Shamrock, Cenex, and Sinclair brands as well as unbranded fuel and management services in Texas, Oklahoma, Kansas, Missouri, and Arkansas.

"We are very excited about acquiring Danielson Fuel Services as it further expands our existing operations and provides a growth platform for new, opportunistic geographies of our wholesale business," said Dale Boyett, president of Boyett Petroleum, Modesto, CA. He noted that "[DFS leadership] and their employees have served their customers with dedication and enthusiasm. We are eager to remain on the same path of service with passion and commitment. Bringing the DFS employees to the Boyett team was very important to our leadership team."

"Our core focus with this sale was to find a strategic buyer that would carry on the same high standards and values towards our customers and employees," said DFS President Mike Lawson, announcing the deal. "It has been a privilege to serve and support our loyal customers and local communities and we'd like to thank our team of employees in representing our company with honor."

Boyett officials say they will use the purchase of DFS "as a platform acquisition" to continue to grow Boyett Petroleum "in the mid-continent region."

Originally published in the October 2021 issue of O&A Marketing News.
Copyright 2021 by KAL Publications Inc.