Shell advised its marketers today that affective April 22, 2009 it will adjust its prices down on select Shell lubricants. Although the price adjustments will vary by lubricant type, marketers are told that in general, they will DECREASE by $0.40 a gallon.

Whereas the details of Shell's price decrease are expected over the next week, marketers are told the decrease does not affect Formula Shell in bulk, antiwear hydraulic fluid, metalworking fluids, grease, Rotella T synthetics, and other selected products.

This is Shell's second announced price decrease in the past five months. Early in December of 2008 the company announced a price decrease on bulk lubricants by up to 8% effective December 1, 2008, and the same for packaged lubricants on January 5, 2009. These decreases equated to roughly $0.44 a gallon.

Holly Corporation announced today that Holly Refining & Marketing - Mid-Con, L.L.C., a wholly owned subsidiary, and Sunoco Inc. (R&M) ("Sunoco") have entered into a definitive agreement under which Holly will purchase Sunoco's 85,000 barrel per day (BPD) Tulsa refinery and associated businesses.

Under the terms of the agreement, HRMM will pay Sunoco $65 million at closing for the refinery. The transaction will also include inventory which will be valued at market prices at closing. Holly will also receive as part of the acquisition an assignment of the Sunoco specialty lubricant product trademarks in North America and a license to use the same in Central and South America. The transaction, which is expected to close by June 1, 2009, is subject to approval by certain regulatory agencies as well as other usual and customary closing conditions.

Matt Clifton, Chairman of the Board and Chief Executive Officer of Holly, said, "We are extremely excited about acquiring this complex refinery and its specialty lubricant products business. In addition to a very attractive price, the Tulsa acquisition provides Holly with added asset, geographic, and product diversity. The Tulsa refinery produces an industry-recognized portfolio of specialty lube oils, process oils and waxes, as well as transportation fuels. The talented Tulsa employees and the specialty lubricant products management team who will be joining Holly have done a great job optimizing the capabilities of the facility. By leveraging the respected Sunoco specialty lubricant product trademarks and formulations, the facility has consistently realized very strong gross margins on these specialty lubricant products. This strength in specialty lubricant products, together with an approximate 40 percent yield of diesel and jet fuel and the bottoms upgrading capabilities of the plant's coker, has allowed the overall operation to deliver attractive gross margins and solid financial results. The facility's proximity to and direct pipeline connection from the Cushing, Oklahoma crude oil hub combined with its ability to deliver directly into Burlington Northern's Tulsa railroad yard and Magellan's pipeline system, allows the facility to competitively supply transportation fuels to a number of attractive mid-continent markets. We would like to thank the many public officials in the state of Oklahoma and the city of Tulsa for their efforts in supporting this transaction."

Holly posted a series of presentation slides on its website with additional detail regarding this transaction. These slides can be accessed at the link below by going to the Investors page, in the Conferences & Presentations section, which can be accessed by selecting "Investors" at the top of the home page.

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