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HEP

Holly Energy Partners NYSE:HEP Stock Report

Last Price

US$17.28

Market Cap

US$2.2b

7D

-0.9%

1Y

-5.0%

Updated

15 Aug, 2022

Data

Company Financials +
HEP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends4/6

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.

Holly Energy Partners Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Holly Energy Partners
Historical stock prices
Current Share PriceUS$17.28
52 Week HighUS$20.49
52 Week LowUS$15.12
Beta0.91
1 Month Change5.24%
3 Month Change0.76%
1 Year Change-4.95%
3 Year Change-37.12%
5 Year Change-43.01%
Change since IPO40.77%

Recent News & Updates

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.

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.

Shareholder Returns

HEPUS Oil and GasUS Market
7D-0.9%4.8%3.6%
1Y-5.0%58.5%-9.6%

Return vs Industry: HEP underperformed the US Oil and Gas industry which returned 58.4% over the past year.

Return vs Market: HEP exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is HEP's price volatile compared to industry and market?
HEP volatility
HEP Average Weekly Movement5.6%
Oil and Gas Industry Average Movement8.8%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: HEP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HEP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004n/aMike Jenningshttps://www.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 Fundamentals Summary

How do Holly Energy Partners's earnings and revenue compare to its market cap?
HEP fundamental statistics
Market CapUS$2.18b
Earnings (TTM)US$200.61m
Revenue (TTM)US$497.05m

10.9x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEP income statement (TTM)
RevenueUS$497.05m
Cost of RevenueUS$183.62m
Gross ProfitUS$313.43m
Other ExpensesUS$112.82m
EarningsUS$200.61m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.59
Gross Margin63.06%
Net Profit Margin40.36%
Debt/Equity Ratio166.6%

How did HEP perform over the long term?

See historical performance and comparison

Dividends

8.1%

Current Dividend Yield

78%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HEP?

Other financial metrics that can be useful for relative valuation.

HEP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8x
Enterprise Value/EBITDA13.4x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does HEP's PE Ratio compare to its peers?

HEP PE Ratio vs Peers
The above table shows the PE ratio for HEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.1x
RTLR Rattler Midstream
15.3x57.0%US$2.2b
EE Excelerate Energy
48.4x42.6%US$2.7b
GLNG Golar LNG
5x-51.3%US$3.0b
DKL Delek Logistics Partners
15.7x43.6%US$2.5b
HEP Holly Energy Partners
10.9x7.4%US$2.2b

Price-To-Earnings vs Peers: HEP is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does HEP's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: HEP is expensive based on its Price-To-Earnings Ratio (10.9x) compared to the US Oil and Gas industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is HEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.9x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: HEP is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).


Share Price vs Fair Value

What is the Fair Price of HEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HEP ($17.28) is trading below our estimate of fair value ($39.38)

Significantly Below Fair Value: HEP is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Holly Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEP's forecast earnings growth (7.4% per year) is above the savings rate (1.9%).

Earnings vs Market: HEP's earnings (7.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: HEP's earnings are forecast to grow, but not significantly.

Revenue vs Market: HEP's revenue (2.1% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: HEP's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HEP's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Holly Energy Partners performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HEP has high quality earnings.

Growing Profit Margin: HEP's current net profit margins (40.4%) are higher than last year (37.1%).


Past Earnings Growth Analysis

Earnings Trend: HEP's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: HEP's earnings growth over the past year (6.4%) is below its 5-year average (6.9% per year).

Earnings vs Industry: HEP earnings growth over the past year (6.4%) underperformed the Oil and Gas industry 188.3%.


Return on Equity

High ROE: Whilst HEP's Return on Equity (22.22%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Holly Energy Partners's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HEP's short term assets ($99.4M) exceed its short term liabilities ($84.1M).

Long Term Liabilities: HEP's short term assets ($99.4M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: HEP's net debt to equity ratio (165%) is considered high.

Reducing Debt: HEP's debt to equity ratio has reduced from 237.2% to 166.6% over the past 5 years.

Debt Coverage: HEP's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: HEP's interest payments on its debt are well covered by EBIT (29.9x coverage).


Balance Sheet


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Dividend

What is Holly Energy Partners's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HEP's dividend (8.1%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: HEP's dividend (8.1%) is in the top 25% of dividend payers in the US market (3.95%)


Stability and Growth of Payments

Stable Dividend: HEP's dividend payments have been volatile in the past 10 years.

Growing Dividend: HEP's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (78%), HEP's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (76.8%), HEP's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Mike Jennings (56 yo)

2.58yrs

Tenure

US$2,294,733

Compensation

Mr. Michael C. Jennings, also known as Mike, serves as Chief Executive Officer of HollyFrontier Corporation since March 14, 2022 and serves as its Director. He serves as Chief Executive Officer of HF Sincl...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.29M) is below average for companies of similar size in the US market ($USD5.40M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HEP's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: HEP's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.9%.


Top Shareholders

Company Information

Holly Energy Partners, L.P.'s employee growth, exchange listings and data sources


Key Information

  • Name: Holly Energy Partners, L.P.
  • Ticker: HEP
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$2.185b
  • Shares outstanding: 126.44m
  • Website: https://www.hollyenergy.com

Location

  • Holly Energy Partners, L.P.
  • 2828 North Harwood
  • Suite 1300
  • Dallas
  • Texas
  • 75201-1507
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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 here.