Suncor Energy announced it has reached an agreement to sell its Petro-Canada Lubricants Inc. (PCLI) business to a subsidiary of HollyFrontier Corporation (HollyFrontier) for gross proceeds of $1.125 billion, subject to customary closing adjustments.

The sale includes PCLI's production and manufacturing centre in Mississauga, Ontario and the global marketing and distribution assets held by PCLI including its global offices. Under the terms of the agreement, HollyFrontier will continue to operate the lubricants business under the Petro-Canada trademark.

"Today's announcement is another example of how Suncor is focusing on its core assets through strategic acquisitions and divestitures that reinforce our commitment to long-term profitable growth," said Steve Williams, president and chief executive officer. "Petro-Canada Lubricants is a valuable, high-performing business that has been recognized by customers around the globe for its innovative products. When we announced we were considering divesting of the Lubricants business, we had significant interest and as such we were able to transact with a company that fully recognizes the value of the business."

The transaction is subject to customary closing conditions, including satisfaction of all regulatory requirements in Canada and the U.S., and is expected to close in the first quarter of 2017.

About Suncor Energy

Suncor Energy is Canada's leading integrated energy company. Suncor's operations include oil sands development and upgrading, onshore and offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is working to responsibly develop petroleum resources while also growing a renewable energy portfolio. Suncor is listed on the UN Global Compact 100 stock index and the Corporate Knights' Global 100. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

About Petro-Canada Lubricants

Petro-Canada Lubricants, a Suncor business, blends and packages more than 350 different lubricants, specialty fluids and greases that are exported to more than 80 countries on six continents. Petro-Canada Lubricants specializes in offering customers products and services proven to maximize equipment performance, productivity and overall savings. From heavy duty engine oils to hydraulic fluids, automatic transmission fluids and gear oils and greases - Petro-Canada Lubricants is a one-stop solution to a world of needs.

About HollyFrontier Corporation:

HollyFrontier 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 specialty products. HollyFrontier operates through its subsidiaries a 135,000 barrels per stream day ("bpsd") refinery located in El Dorado, Kansas, a 125,000 bpsd refinery in Tulsa, Oklahoma, a 100,000 bpsd refinery located in Artesia, New Mexico, a 52,000 bpsd refinery located in Cheyenne, Wyoming and a 45,000 bpsd refinery in Woods Cross, Utah. HollyFrontier markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. HollyFrontier and certain of its subsidiaries also currently own a 37% interest (including a 2% general partner interest) in Holly Energy Partners, L.P.