Plains All American (PAA) Acquires Certain Pipelines From Holly Corp (HOC)
Plains All American Pipeline, L.P. (NYSE: PAA) has acquired certain pipelines, a manifold system and approximately 400,000 barrels of crude oil storage capacity from Holly Corporation (NYSE: HOC) for $40 million.
The assets purchased include 6 tanks, three receiving pipelines and related assets and contract rights located at or associated with Holly's Tulsa, Oklahoma refinery. In conjunction with the sale, Holly entered a 15-year tank lease and minimum throughput agreement (with options to extend). Plains and Holly have also agreed to work together to identify and capture contango storage opportunities.
Including only the cash flow generated by the lease and throughput agreement, the transaction is expected to be immediately accretive.
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