Holly Energy Partners Announces Acquisition of New Mexico Pipeline

-Acquires Holly Corporation's New Lovington to Artesia, NM Pipeline

DALLAS, June 1 /PRNewswire-FirstCall/ -- Holly Energy Partners, L.P. (NYSE:
HEP) and Holly Corporation ("Holly")(NYSE: HOC) today announced the
acquisition by Holly Energy from Holly of a newly constructed 16" pipeline
connecting Holly's refining facilities in Lovington, New Mexico to Holly's
refining facilities in Artesia, New Mexico.

The purchase price for this pipeline was $34.2 million which was paid in cash.
The acquisition was financed through HEP's revolving credit facility. In
addition to the above purchase price, Holly Energy has invested $7.9 million
for additional pipeline infrastructure improvements on the intermediate
pipelines between Holly's Lovington and Artesia, New Mexico refining
facilities.

Holly Energy expects this pipeline acquisition will result in approximately
$6.6 million of incremental annual revenue.

In connection with this transaction, Holly and Holly Energy are restructuring
the Holly Intermediate Pipelines Agreement ("Holly IPA") to incorporate this
new pipeline and improvements under the Holly IPA, to increase the minimum
revenue commitment on the part of Holly, and to extend the term of the
agreement by four years to June 1, 2024.

This transaction has been approved by the Boards of Directors for both Holly
and Holly Energy after approvals by the Holly Audit Committee, which is
comprised solely of outside directors of Holly, and the Conflicts Committee
for Holly Energy, which is comprised solely of independent outside directors
for Holly Energy.

"We are pleased that Holly Energy was able to acquire another key logistic
asset from Holly. This pipeline will support expanded volumes from the recent
Navajo Refinery expansion and contribute additional revenues for Holly
Energy," said Matt Clifton, Chairman and CEO of Holly and Holly Energy.

About Holly Energy Partners, L.P.
Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides
petroleum product and crude oil transportation, tankage and terminal services
to the petroleum industry, including Holly Corporation, which currently owns a
41% interest in the Partnership. The Partnership owns and operates petroleum
product and crude pipelines, tankage and terminals located in Texas, New
Mexico, Arizona, Washington, Idaho and Utah. In addition, the Partnership owns
a 70% interest in Rio Grande Pipeline Company, a transporter of LPGs from West
Texas to Northern Mexico, and a 25% interest in SLC Pipeline LLC, a
transporter of crude oil in the Salt Lake City area.

About Holly Corporation
Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum
refiner and marketer that produces high value light products such as gasoline,
diesel fuel, jet fuel and other high value specialty products. Holly operates
through its subsidiaries a 100,000 barrels per stream day ("bpsd") refinery
located in Artesia, New Mexico, a 85,000 bpsd refinery in Tulsa, Oklahoma and
a 31,000 bpsd refinery in Woods Cross, Utah. A subsidiary of Holly also owns a
41% interest (including the general partner interest) in Holly Energy
Partners, L.P.

The following is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: The statements in this press release 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 our beliefs and assumptions using currently available information and
expectations as of the date hereof, are not guarantees of future events or
performance and involve certain risks and uncertainties, including those
contained in our filings made from time to time with the Securities and
Exchange Commission. Although we believe that the expectations reflected in
these forward-looking statements are reasonable, we cannot assure you that our
expectations will prove correct. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecast in these
statements. 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.

SOURCE Holly Energy Partners, L.P.; Holly Corporation

Bruce R. Shaw, Senior Vice President & Chief Financial Officer, or M. Neale
Hickerson, Vice President, Investor Relations, both of Holly Corporation/Holly
Energy Partners, +1-214-871-3555