Holly Frontier Merger
by: Andrew Schneider, February 23, 2011 2:02:00 am
In a conference call announcing the merger with Holly, Frontier chairman and CEO Mike Jennings said the move will cost Houston some jobs.
“There will be headcount reductions, as with any transaction of this size. We want to build the most capable organization that we can out of two very good management teams. We’re going to centralize most of that in Dallas. And for the people that aren’t going to continue with us, we’re going to treat them fairly.”
Jennings will become president and CEO of the new company.
The merger will create one of the nation’s largest independent refiners, with a refining capacity of more than 440,000 barrels of crude oil per day.
Economist Karr Ingham of the Texas Energy Alliance says the merger may trigger further consolidation.
“I’m a little surprised that it’s taken so long for a sizable major merger to have occurred. The domestic refining industry’s been under a tremendous amount of economic pressure in recent years, and particularly since the recession has set in, just lowering the demand for the products that they produce.”