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Holly Energy Partners, L.P.NYSE:HEP Stock Report

Market Cap US$2.6b
Share Price
n/a
US$21
n/aintrinsic discount
1Y5.1%
7D-2.7%
1D
Portfolio Value
​
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Holly Energy Partners, L.P.

NYSE:HEP Stock Report

Market Cap: US$2.6b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Holly Energy Partners (HEP) Stock Overview

Holly Energy Partners, L.P. provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry in the United States. More details

HEP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends4/6

Rewards

Trading at 50.1% below our estimate of its fair value

Earnings are forecast to grow 10.15% per year

Earnings grew by 23.5% over the past year

Risk Analysis

Unstable dividend track record

Has a high level of debt


HEP Community Fair Values

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Holly Energy Partners, L.P. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Holly Energy Partners
Historical stock prices
Current Share PriceUS$20.45
52 Week HighUS$23.62
52 Week LowUS$15.51
Beta0.84
1 Month Change-6.92%
3 Month Change-6.58%
1 Year Change5.14%
3 Year Change37.53%
5 Year Change-28.12%
Change since IPO66.60%

Recent News & Updates

Seeking Alpha • Oct 04

Holly Energy Partners: Operational Excellence As Investment Thesis Strengthens

Summary Holly Energy Partners has seen its share appreciate by over 40% in the last 12 months, with a forward yield of over 6%. HEP operates a network of pipelines and storage tanks strategically located near refineries, providing stable and predictable revenue. The company is well-positioned in regions with promising growth prospects, such as the Mid-Continent, Southwest, and Northwest areas of the United States. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Oct 04

Holly Energy Partners: Operational Excellence As Investment Thesis Strengthens

Summary Holly Energy Partners has seen its share appreciate by over 40% in the last 12 months, with a forward yield of over 6%. HEP operates a network of pipelines and storage tanks strategically located near refineries, providing stable and predictable revenue. The company is well-positioned in regions with promising growth prospects, such as the Mid-Continent, Southwest, and Northwest areas of the United States. Read the full article on Seeking Alpha
Seeking Alpha • Sep 22

Holly Energy Partners: Excellent Prospects Driven By High Economic Leverage On Capital Deployed

Summary Holly Energy Partners enjoys consumer advantages and cost differentiation benefits given its industry positioning. HEP's latest financial results continued its high post-tax margins and confirmed its ability to compound capital. Investors should be aware of the risks associated with HEP, including its exposure to macroeconomic and commodity cycles, the inflation/rates axis, and relative valuation compared to peers. Net-net, rate buy. Read the full article on Seeking Alpha
Seeking Alpha • Jun 21

Holly Energy Partners: High Yield But Sustainable

Summary Holly Energy Partners L.P. offers a high-yielding dividend aristocrat, with a solid position in the oil and gas industry. HEP's financials are strong, with manageable debt and a debt/adjusted EBITDA of 3.75, supported by contracts with HF Sinclair. The company's valuation remains in line with the sector, making it an appealing buy for investors seeking exposure to the energy sector and a solid dividend yield. Read the full article on Seeking Alpha
Seeking Alpha • Feb 23

Holly Energy Partners Q4 2022 Earnings Preview

Holly Energy Partners (NYSE:HEP) is scheduled to announce Q4 earnings results on Friday, February 24, before market open. The consensus EPS estimate is $0.51. Over the last 2 years, HEP has beaten EPS estimates 75% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. SA contributor DT Analysis expects Holly Energy's (HEP) distribution coverage to climb even higher in 2023 vs. 2022.
Seeking Alpha • Jan 20

Holly Energy Partners declares $0.35 dividend

Holly Energy Partners (NYSE:HEP) declares $0.35/share quarterly dividend, in line with previous. Forward yield 7.18% Payable Feb. 13; for shareholders of record Jan. 30; ex-div Jan. 27. See HEP Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Jan 05

Holly Energy Partners: The Scene Is Set For Higher Distributions

Summary Earlier in 2022, Holly Energy Partners placed higher distributions on the horizon. They have not subsequently backed down, at least not publicly, and most importantly, they continue seeing benefits from their Sinclair acquisition. When looking ahead, I estimate their free cash flow, and thus, distribution coverage will climb even higher in 2023 versus 2022. This increases the scope for higher distributions with their investments winding down, thereby maximizing free cash flow. It appears the scene is set for higher distributions, and thus I believe that maintaining my strong buy rating is appropriate.
Seeking Alpha • Nov 04

Holly Energy Partners Q3 2022 Earnings Preview

Holly Energy Partners (NYSE:HEP) is scheduled to announce Q3 earnings results on Monday, November 7th, before market open. The consensus EPS Estimate is $0.52 (+13.0% Y/Y) and the consensus Revenue Estimate is $139.69M (+14.0% Y/Y). Over the last 2 years, HEP has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. Revenue estimates have seen 1 upward revision and 0 downward.
Seeking Alpha • Oct 20

Holly Energy Partners declares $0.35 dividend

Holly Energy Partners (NYSE:HEP) declares $0.35/share quarterly dividend, in line with previous. Forward yield 7.64% Payable Nov. 11; for shareholders of record Oct. 31; ex-div Oct. 28. See HEP Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Aug 05

Holly Energy Partners Q2 2022 Earnings Preview

Holly Energy Partners (NYSE:HEP) is scheduled to announce Q2 earnings results on Monday, August 8th, before market open. The consensus EPS Estimate is $0.52 (+8.3% Y/Y) and the consensus Revenue Estimate is $124.17M (-1.6% Y/Y). Over the last 2 years, HEP has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. Revenue estimates have seen 1 upward revision and 0 downward.
Seeking Alpha • Jul 21

Holly Energy Partners declares $0.35 dividend

Holly Energy Partners (NYSE:HEP) declared $0.35/share quarterly dividend, in line with previous. Forward yield 8.3% Payable Aug. 12; for shareholders of record Aug. 1; ex-div July 29. See HEP Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • May 11

Holly Energy Partners: Higher Yield Coming After Sinclair Acquisition, 10%+ Possible

Holly Energy Partners recently completed their acquisition of new assets from Sinclair as their parent company merged with the latter. Whilst this pushed their outstanding unit count higher, it should also boost their free cash flow and thus see their strong distribution coverage remain. It also saw their net debt increase slightly over 20%, but given the circa 20% forecast earnings increase, this should cancel out. When these two variables are combined, it sees scope for distribution growth in the coming years once they finish integrating their new assets. Since their high 8%+ distribution yield stands to potentially grow into a very high 10%+ yield on current cost, I believe that maintaining my buy rating is appropriate.
Seeking Alpha • Feb 24

The 8.2% Distribution Yield Of Holly Energy Partners Is Ideal Amid High Inflation

HEP is offering an 8.2% distribution yield. The distribution of HEP has a wide margin of safety thanks to the defensive business model of the MLP, its strong coverage ratio and its solid balance sheet. HEP is an ideal holding for the investors who are trying to protect the value of their portfolio from the surge of inflation to a multi-decade high.
Seeking Alpha • Dec 07

Holly Energy Partners: The Great Deal, Buy Their 8%+ Yield And Get Any Growth For Free

The current unit price of Holly Energy Partners presents a great deal for investors who can buy their high 8%+ distribution yield whilst getting any growth for free. Their cash flow performance has not only remained resilient throughout 2020 and 2021 but has actually grown moderately, although they are currently focused on deleveraging instead of higher distributions. When looking ahead, their Sinclair acquisition will see their leverage edge higher but does not pose any significant risks. There is uncertainty over when and by how much they will grow their distributions after this acquisition but at least they will remain sustainable. Since their intrinsic value is at least approximately 20% higher even without any distribution growth, I believe that maintaining my bullish rating is appropriate.
Seeking Alpha • Sep 20

All MLP Investors Should Have This Name In Their Portfolio: Holly Energy Partners

HEP units are currently undervalued with a safe 7.7% yield. Distributions are likely to increase over the coming years and are protected from inflation. The company generates some of the highest returns on capital in midstream. The units should be bought for long-term holding below $19.00.
Seeking Alpha • Jul 21

The 6.5% Distribution Yield Of Holly Energy Partners Is Safe

HEP is offering an attractive 6.5% distribution yield. HEP has proved resilient to the pandemic. While most energy companies saw their cash flows collapse last year, HEP grew its distributable cash flow 4% last year. HEP has a strong distribution coverage ratio of 2.0.

Shareholder Returns

HEPUS Oil and GasUS Market
7D-2.7%-1.9%1.1%
1Y5.1%37.4%28.7%

Return vs Industry: HEP exceeded the US Oil and Gas industry which returned -3.2% over the past year.

Return vs Market: HEP underperformed the US Market which returned 14.1% over the past year.

Price Volatility

Is HEP's price volatile compared to industry and market?
HEP volatility
HEP Average Weekly Movement3.5%
Oil and Gas Industry Average Movement6.2%
Market Average Movement7.2%
10% most volatile stocks in US Market16.4%
10% least volatile stocks in US Market3.1%

Stable Share Price: HEP has not had significant price volatility in the past 3 months.

Volatility Over Time: HEP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004n/aMike Jenningswww.hollyenergy.com

Holly Energy Partners, L.P. provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry in the United States. It operates through two segments, Pipelines and Terminals; and Refinery Processing Unit. The company operates refined product pipelines that transport conventional gasolines, reformulated gasolines, and low-octane gasolines for oxygenate blending, as well as sulfur diesel and jet fuels, and liquefied petroleum gases; intermediate product pipelines that transport intermediate feedstocks and crude oils; and oil trunk, gathering, and connection pipelines that delivers crude oil.

Holly Energy Partners, L.P. Fundamentals Summary

How do Holly Energy Partners's earnings and revenue compare to its market cap?
HEP fundamental statistics
Market capUS$2.59b
Earnings (TTM)US$238.92m
Revenue (TTM)US$583.92m
10.8x
P/E Ratio
4.4x
P/S Ratio

Is HEP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
HEP income statement (TTM)
RevenueUS$583.92m
Cost of RevenueUS$217.34m
Gross ProfitUS$366.58m
Other ExpensesUS$127.66m
EarningsUS$238.92m

Last Reported Earnings

Sep 30, 2023

Next Earnings Date

n/a

Earnings per share (EPS)1.89
Gross Margin62.78%
Net Profit Margin40.92%
Debt/Equity Ratio143.2%

How did HEP perform over the long term?

See historical performance and comparison

Dividends

6.8%
Current Dividend Yield
74%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/12/02 14:48
End of Day Share Price 2023/11/30 00:00
Earnings2023/09/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Holly Energy Partners, L.P. is covered by 11 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yim ChengBarclays
Douglas IrwinCitigroup Inc
Steven SherowskiGoldman Sachs