HFC - HollyFrontier May Be Overextending On Refinery Acquisition

• Inland refiner HollyFrontier has a $5.7 billion market cap; however, it is suspending its dividend to buy a Washington refinery at a total cost, including inventory, of over $500 million.
• Washington refineries are supplied by Canadian and Alaskan crude, among others. While the USWC, including California, is historically a large, competitive market, regulators there appear interested in reducing hydrocarbon use.
• The company is also entering the new, competitive renewable diesel market by retooling its Wyoming refinery.

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