Holly Energy Partners Proceeding with Expansion of Crude System in Southeastern New Mexico
March 07 2013 - 4:28PM
Business Wire
Holly Energy Partners, L.P. (NYSE: HEP) announced today that it
is proceeding with the expansion of its crude oil transportation
system in southeastern New Mexico in response to increased crude
oil production in the area. The project has been approved by HEP’s
Board of Directors and has already received the necessary shipper
support. The expansion will provide shippers with additional
pipeline takeaway capacity to either common carrier pipeline
stations for transportation to major crude oil markets or to
HollyFrontier’s New Mexico refining facilities.
To complete the project, HEP will convert an existing refined
products pipeline to crude oil service, construct several new
pipeline segments, expand an existing pipeline, and build new truck
unloading stations and crude storage capacity. Excluding the value
of the existing pipeline to be converted, total capital
expenditures are expected to be $35-40 million. HEP estimates the
project will provide increased capacity of up to 100,000 barrels
per day across its system and anticipates it will be in service no
later than early 2014.
About Holly Energy Partners, L.P.:
Holly Energy Partners, L.P., headquartered in Dallas, Texas,
provides petroleum product and crude oil transportation, tankage
and terminal services to the petroleum industry, including
HollyFrontier Corporation, which currently owns a 44% interest
(including a 2% general partner interest) in Holly Energy. Holly
Energy owns and operates petroleum product and crude pipelines,
tankage, terminals and loading facilities located in Texas, New
Mexico, Arizona, Oklahoma, Washington, Idaho, Utah, Kansas and
Wyoming. In addition, Holly Energy owns a 75% interest in UNEV
Pipeline, LLC, the owner of a Holly Energy operated refined
products pipeline running from Salt Lake City, Utah to Las Vegas,
Nevada, and related product terminals and a 25% interest in SLC
Pipeline LLC, a 95-mile intrastate pipeline system serving
refineries in the Salt Lake City, Utah area.
Information about Holly Energy Partners, L.P. may be found on
its website at http://www.hollyenergy.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” within the meaning of the federal
securities laws. Forward-looking statements use words such as
“anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,”
“intend,” “should,” “would,” “could,” “believe,” “may,” and similar
expressions and statements regarding our plans and objectives for
future operations. These statements are based on our beliefs and
assumptions and those of Holly Energy’s general partner using
currently available information and expectations as of the date
hereof, are not guarantees of future performance and involve
certain risks and uncertainties. Although we and Holly Energy’s
general partner believe that such expectations reflected in such
forward-looking statements are reasonable, neither we nor Holly
Energy’s general partner can give assurance that our expectations
will prove to be correct. Such statements are subject to a variety
of risks, uncertainties and assumptions. If one or more of these
risks or uncertainties materialize, or if underlying assumptions
prove incorrect, our actual results may vary materially from those
anticipated, estimated, projected or expected. Certain factors
could cause actual results to differ materially from results
anticipated in the forward-looking statements. These factors
include, but are not limited to:
- risks and uncertainties with respect to
the actual quantities of petroleum products and crude oil shipped
on our pipelines and/or terminalled, stored or throughput in our
terminals;
- the economic viability of HollyFrontier
Corporation, Alon USA, Inc. and our other customers;
- the demand for refined petroleum
products in markets we serve;
- our ability to successfully purchase
and integrate additional operations in the future;
- our ability to complete previously
announced or contemplated acquisitions;
- the availability and cost of additional
debt and equity financing;
- the possibility of reductions in
production or shutdowns at refineries utilizing our pipeline and
terminal facilities;
- the effects of current and future
government regulations and policies;
- our operational efficiency in carrying
out routine operations and capital construction projects;
- the possibility of terrorist attacks
and the consequences of any such attacks;
- general economic conditions; and
- other financial, operational and legal
risks and uncertainties detailed from time to time in our
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.
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