US oil refiners Holly Corp and Frontier Oil in $7 billion merger

Two US-based oil refiners, Holly Corp and Frontier Oil Corp, today announced plans to merge into a $7 billion oil refining company that will serve the mid-continent, Rocky Mountain and southwest refining markets and Canadian crude oil market.

Dallas-based Holly is an independent petroleum refiner and marketer producing gasoline, diesel and jet fuel as well as specialty lubricants, oil and waxes.

Holly operates through its subsidiaries a 100,000 barrel per stream day refinery located in New Mexico, a 125,000 bpsd refinery located in Tulsa, Oklahoma and a 31,000 bpsd refinery in Utah.

Holly also owns an interest in Holly Energy Partners which, through subsidiaries, owns or leases approximately 2,500 miles of petroleum product pipelines, approximately 3.5 million barrels of refined product storage, 1 million barrels of crude oil storage, 11 refined product terminals and 4 loading rack facilities in several Southwest, Mid Continent and Rocky Mountain states.

Houston-based Frontier is an independent oil refining and marketing company with complex refineries located in Wyoming and Kansas. Frontier's primary products of gasoline and diesel are marketed in the Rocky Mountain region and Plains States.

The company has a 52,000 bpd refinery in Cheyenne, Wyoming and a 135,000 bpd refinery in El Dorado, Kansas. Its subsidiary company Frontier Refining & Marketing is located in Denver, Colorado.