Holly Energy Partners LP is set to acquire the remaining interest in Plains All American Pipeline LP affiliates Frontier Aspen LLC and SLC Pipeline LLC that it does not yet own in two deals worth a total of $250 million.
The Frontier Aspen pipeline is a 289-mile crude pipeline from Casper, Wyo., to Frontier Station, Utah. It supplies Canadian and Rocky Mountain oil to Salt Lake City-area refiners through a connection to the Salt Lake City pipeline owned by SLC Pipeline, according to an Aug. 10 news release. The Salt Lake City pipeline is a 95-mile crude pipeline that moves crude oil into the Salt Lake City area from the Utah terminal of the Frontier Pipeline and from Wahsatch station.
Holly Energy would acquire the remaining 50% interest in Frontier Aspen and the remaining 75% interest in SLC.
Holly Energy expects to finance the transaction with a combination of debt and equity, subject to market conditions and other factors, the release said. The closing of each transaction is conditioned on the closing of the other transaction, as well as customary closing conditions, including the expiration of the Hart-Scott-Rodino antitrust waiting period for the acquisition of the interest in SLC.
The acquired interest in both pipelines is expected to generate approximately $23 million in annual EBITDA.