HollyFrontier price target raised to $68 from $48 at Argus Argus increased its price target on HollyFrontier as the firm believes that Holly may benefit from high refiner margins longer than many anticipate due to strong U.S. onshore production growth. The firm thinks the company's management is very shareholder friendly and it maintains a Buy rating on the shares.
HollyFrontier, Holly Energy agree in principle El Dorado unit acquisition HollyFrontier Corporation (HFC) and Holly Energy Partners, L.P. (HEP) announced an agreement in principle for the acquisition by Holly Energy of the newly constructed naphtha fractionation and hydrogen generation units at HollyFrontier's El Dorado refinery. Holly Energy is expected to pay HollyFrontier cash consideration of approximately $62M, subject to the execution of definitive agreements and other customary closing conditions. Both HollyFrontier and Holly Energy expect the proposed transaction will close during the fourth quarter of 2015. In connection with the closing of the proposed transaction, HollyFrontier and Holly Energy expect to enter into 15-year tolling agreements containing minimum quarterly throughput commitments from HollyFrontier. Holly Energy expects that the transaction will be immediately accretive to unitholders.