Holly Corporation and Frontier Oil Corporation merge


July 1, 2011

Valued Customers and Suppliers:


We are pleased to report the merger of Frontier Oil Corporation and Holly Corporation

closed on July 1, as scheduled.


We are very excited about our combined company, HollyFrontier Corporation. To highlight some of the many reasons for this excitement:

Increased scale: 2nd largest publicly traded independent refining company with $6+ billion market capitalization; 440,000+ bpd of crude capacity

Increased diversity: five (5) high complexity refineries

Differentiated product markets: Mid-Continent, Rocky Mountains, and Southwest

Crude flexibility: Ability to process variety of sweet, sour, and heavy crude oils

Crude access: Cushing, Canadian, Permian, Bakken, Black Wax, Niobrara

Strong cash flow: Advantaged assets/locations generate industry leading margins

Strong balance sheet: $1+ billion of cash

Strong liquidity: new $1 billion credit facility

Strong credit: BB+ Standard & Poor’s rating with many investment grade metrics