Holly Energy Partners Announces Public Offering of 1,400,000 Common Units

Holly Energy Partners, L.P.

announced today that it intends to offer 1,400,000 common units representing limited partner interests in the Partnership in a public offering. In connection with the offering, the Partnership expects to grant the underwriters a 30-day option to purchase up to 210,000 additional common units. The Partnership intends to use the net proceeds from the offering to pay a portion of the principal of the two promissory notes with an aggregate original principal amount of $150 million that the Partnership issued to wholly-owned subsidiaries of HollyFrontier Corporation in connection with the Partnership's acquisition of certain pipeline, tankage, loading rack and crude receiving assets located at HollyFrontier Corporation's El Dorado and Cheyenne refineries. The Partnership expects to use any remaining net proceeds to repay indebtedness incurred under its credit agreement and for general corporate purposes.