Item 1.01 Entry into a Material Definitive Agreement.

On May 4, 2021, HollyFrontier Puget Sound Refining LLC (the "Purchaser"), a wholly-owned subsidiary of HollyFrontier Corporation ("HollyFrontier"), entered into a sale and purchase agreement (the "Purchase Agreement") with Equilon Enterprises LLC d/b/a Shell Oil Products US (the "Seller") to acquire Seller's refinery and related assets located in Anacortes, Washington (the "Refinery"), for a base cash purchase price of $350 million plus hydrocarbon inventory to be valued at the closing of the acquisition with an estimated current value in the range of $150-$180 million (the "Acquisition"). In connection with the closing of the Acquisition, Purchaser and other affiliates of HollyFrontier will enter into various commercial and license agreements with the Seller.

The purchase price for the Acquisition is subject to customary adjustments at closing for the Refinery's hydrocarbon inventory, as provided in the Purchase Agreement. The Acquisition is expected to close in the fourth quarter of 2021, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR") and other customary conditions. The Purchase Agreement provides for customary representations, warranties and covenants, and provides for the payment of fees by the Purchaser or by the Seller upon the termination of the Purchase Agreement under certain circumstances.

HollyFrontier has guaranteed all payment and performance obligations of the Purchaser that relate to or arise under the Purchase Agreement.

The disclosure contained in this Item 1.01 does not purport to be a complete description of the Purchase Agreement and is qualified in its entirety by reference to the Purchase Agreement, which is filed as Exhibit 2.1 hereto and is incorporated by reference into this Item 1.01.

The Purchase Agreement has been attached as an exhibit to this report to provide investors and security holders with information regarding its terms. It is not intended to provide any other factual information about the parties thereto or to modify or supplement any factual disclosures about HollyFrontier, in its public reports filed with the U.S. Securities and Exchange Commission (the "SEC"). The Purchase Agreement includes representations, warranties and covenants of the parties thereto made solely for purposes of the Purchase Agreement and solely for the benefit of the parties to the Purchase Agreement, and which may be subject to important qualifications and limitations agreed to by the parties in connection with the negotiated terms of the Purchase Agreement. Investors should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the parties to the Purchase Agreement or any of their respective subsidiaries or affiliates. Moreover, some of those representations and warranties may not be accurate or complete as of any specified date, may be subject to a contractual standard of materiality different from those generally applicable to the SEC filings of the parties or may have been used for purposes of allocating risk among the parties to the Purchase Agreement rather than establishing matters as facts.

Item 7.01 Regulation FD Disclosure.

On May 4, 2021, HollyFrontier issued a press release announcing the Acquisition and an investor presentation related to the Acquisition, copies of which are being furnished herewith as Exhibit 99.1 and Exhibit 99.2, respectively.

In addition, in connection with the Acquisition, the HollyFrontier Board of Directors approved a one-year suspension of the regular quarterly dividend effective with the dividend to be declared for the first quarter of 2021 and expects to resume the dividend after such time.

The information provided in this Item 7.01 (including Exhibit 99.1 and Exhibit 99.2) shall not deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference in any filing made by HollyFrontier pursuant to the Securities Act of 1933, as amended, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.

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Item 9.01 Financial Statements and Exhibits.




(d)  Exhibits



Exhibit
  No.                                    Description

 2.1          Sale and Purchase Agreement, dated as of May 4, 2021, by and between
            Equilon Enterprises LLC d/b/a Shell Oil Products US and HollyFrontier
            Puget Sound Refining LLC.*

99.1          Press release of HollyFrontier issued May 4, 2021.

99.2          HollyFrontier Presentation to Investors regarding Puget Sound
            Refinery Acquisition.

104         Cover Page Interactive Data File (embedded within the Inline XBRL
            document).

* Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of

Regulation S-K. The registrant agrees to furnish supplementally a copy of the

omitted schedules and exhibits to the SEC upon request.

Forward-Looking Statements.

The statements contained herein relating to matters that are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. These statements are based on HollyFrontier's beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the SEC. 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 are intended to identify forward-looking statements. Although HollyFrontier believes that such expectations reflected in such forward-looking statements are reasonable, HollyFrontier cannot give assurance that such expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. Any differences could be caused by a number of factors including, but not limited to:





  •   HollyFrontier's failure to successfully close the transactions with the
      Seller, or, once closed, integrate the operation of the Refinery with its
      existing operations;




  •   the extraordinary market environment and effects of the COVID-19 pandemic,
      including a significant decline in demand for refined petroleum products in
      markets HollyFrontier serves;




  •   risks and uncertainties with respect to the actions of actual or potential
      competitive suppliers and transporters of refined petroleum products or
      lubricant and specialty products in HollyFrontier's markets;




  •   the spread between market prices for refined products and market prices for
      crude oil;




  •   the possibility of constraints on the transportation of refined products or
      lubricant and specialty products;




  •   the possibility of inefficiencies, curtailments or shutdowns in refinery
      operations or pipelines, whether due to infection in the workforce or in
      response to reductions in demand;




  •   the effects of current and future governmental and environmental regulations
      and policies, including the effects of current and future restrictions on
      various commercial and economic activities in response to the COVID-19
      pandemic;




  •   the availability and cost of financing to HollyFrontier;




  •   the effectiveness of HollyFrontier's capital investments and marketing
      strategies;




  •   HollyFrontier's efficiency in carrying out and consummating construction
      projects, including HollyFrontier's ability to complete announced capital
      projects, such as the conversion of the Cheyenne Refinery to a renewable
      diesel facility and the construction of the Artesia renewable diesel unit and
      pretreatment unit, on time and within budget;

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  •   HollyFrontier's ability to timely obtain or maintain permits, including those
      necessary for operations or capital projects;




  •   the ability of HollyFrontier to acquire refined or lubricant product
      operations or pipeline and terminal operations on acceptable terms and to
      integrate any existing or future acquired operations;




  •   the possibility of terrorist or cyberattacks and the consequences of any such
      attacks;




  •   general economic conditions, including uncertainty regarding the timing, pace
      and extent of an economic recovery in the United States;




  •   continued deterioration in gross margins or a prolonged economic slowdown due
      to COVID-19 could result in an impairment of goodwill and / or additional
      long-lived asset impairments; and




  •   other financial, operational and legal risks and uncertainties detailed from
      time to time in HollyFrontier's 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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