HF Sinclair Corp. has submitted a non-binding proposal to acquire midstream MLP Holly Energy Partners LP in an all-equity transaction, the company said in a May 4 news release.

Under the terms of the transaction, HF Sinclair would exchange a ratio of 0.3714 newly issued shares of common stock per each publicly held common unit of Holly Frontier. The midstream company has a market capitalization of roughly $2 billion.

HF Sinclair said the proposal has been made to the board of directors of Holly Frontier’s general partner. The Transaction is subject to the negotiation and execution of a definitive agreement.

In a separate press release, Holly acknowledged receiving the non-binding proposal letter.

Ryan M. Todd, an analyst at Piper Sandler, noted that the proposal for the longest-running affiliated MLP in the sector “marks the end of an era, but should simplify the corporate structure somewhat.”

“With elevated maintenance activity rolling off and the renewables business likely to find its footing in 2H23, we continue to view DINO [HF Sinclair] as relatively inexpensive and an attractive opportunity in refining,” Todd said in a May 4 note.