NYSE:HEP

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Holly Energy Partners

Executive Summary

Holly Energy Partners, L.P. owns and operates petroleum product and crude pipelines, storage tanks, distribution terminals, loading rack facilities, and refinery processing units that support the refining and marketing operations of HollyFrontier Corporation in West Texas, New Mexico, Utah, Nevada, Oklahoma, Wyoming, Kansas, Arizona, Idaho, and Washington.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Holly Energy Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HEP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

HEP

-0.7%

US Oil and Gas

1.6%

US Market


1 Year Return

-49.7%

HEP

-39.8%

US Oil and Gas

4.8%

US Market

Return vs Industry: HEP underperformed the US Oil and Gas industry which returned -39.8% over the past year.

Return vs Market: HEP underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

HEPIndustryMarket
7 Day-1.0%-0.7%1.6%
30 Day-15.8%-6.8%2.3%
90 Day13.6%24.6%29.5%
1 Year-44.1%-49.7%-37.0%-39.8%7.1%4.8%
3 Year-44.4%-57.7%-31.0%-38.3%37.1%28.1%
5 Year-36.3%-57.9%-36.1%-46.4%67.2%48.6%

Price Volatility Vs. Market

How volatile is Holly Energy Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Holly Energy Partners undervalued compared to its fair value and its price relative to the market?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEP ($14.11) is trading below our estimate of fair value ($22.55)

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


Price To Earnings Ratio

PE vs Industry: HEP is good value based on its PE Ratio (7.5x) compared to the Oil and Gas industry average (8.3x).

PE vs Market: HEP is good value based on its PE Ratio (7.5x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: HEP is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HEP is overvalued based on its PB Ratio (4.4x) compared to the US Oil and Gas industry average (0.7x).

Future Growth

How is Holly Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEP's forecast earnings growth (7.7% per year) is above the savings rate (2.2%).

Earnings vs Market: HEP's earnings (7.7% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: HEP's revenue (2.8% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: HEP's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HEP's Return on Equity is forecast to be very high in 3 years time (46.7%).

Past Performance

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

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEP has high quality earnings.

Growing Profit Margin: HEP's current net profit margins (37.7%) are higher than last year (35.9%).


Past Earnings Growth Analysis

Earnings Trend: HEP's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: HEP's earnings growth over the past year (8%) is below its 5-year average (22.8% per year).

Earnings vs Industry: HEP earnings growth over the past year (8%) exceeded the Oil and Gas industry -21.6%.


Return on Equity

High ROE: Whilst HEP's Return on Equity (41.2%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Holly Energy Partners's financial position?


Financial Position Analysis

Short Term Liabilities: HEP's short term assets ($80.9M) exceed its short term liabilities ($54.7M).

Long Term Liabilities: HEP's short term assets ($80.9M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: HEP's debt to equity ratio (300.1%) is considered high.

Reducing Debt: HEP's debt to equity ratio has increased from 204.7% to 300.1% over the past 5 years.

Debt Coverage: HEP's debt is well covered by operating cash flow (20.2%).

Interest Coverage: HEP's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Dividend

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

9.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEP's dividend (9.92%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: HEP's dividend (9.92%) is in the top 25% of dividend payers in the US market (4.51%)


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (125.7%), HEP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEP's dividends in 3 years are forecast to be covered by earnings (73.5% payout ratio).

Management

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

0.7yrs

Average management tenure


CEO

Mike Jennings (54yo)

0.50

Tenure

US$280,017

Compensation

Mr. Michael C. Jennings, also known as Mike, serves as Chief Executive Officer and President of HollyFrontier Corporation since January 1, 2020. Mr. Jennings serves as Chief Executive Officer at Holly Logi ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD280.02K) is below average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Jennings
Chairman & CEO of Holly Logistic Services LLC0.50yrUS$280.02k0.018% $266.3k
Richard Voliva
President of Holly Logistic Services LLC0.50yrUS$620.99k0.0065% $96.1k
Mark Cunningham
Senior Vice President of Operations & Engineering - Holly Logistic Services2.5yrsUS$872.80k0.054% $805.8k
Vaishali Bhatia
Senior VP0.92yrUS$229.99kno data
John Harrison
Senior VP0.50yrno datano data
Craig Biery
Director of Investor Relationsno datano datano data
Kenneth Norwood
Vice President and Controller of Holly Logistic Services LLC6.33yrsno data0.031% $468.0k
Trey Schonter
Executive of Investor Relationsno datano datano data
Jared Harding
Investor Relations Officerno datano datano data

0.7yrs

Average Tenure

48yo

Average Age

Experienced Management: HEP's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Jennings
Chairman & CEO of Holly Logistic Services LLC0.50yrUS$280.02k0.018% $266.3k
James Lee
Independent Director of Holly Logistic Services LLC2.67yrsUS$205.02k0.014% $203.2k
Eric Mattson
Independent Director of Holly Logistic Services LLC2.33yrsUS$230.02k0.0073% $108.2k
Christine LaFollette
Independent Director of Holly Logistic Services LLC2.33yrsUS$205.02k0.0092% $136.3k
Larry Baldwin
Independent Presiding Director of Holly Logistic Services LLC0.42yrUS$230.02k0.013% $195.8k

2.3yrs

Average Tenure

67yo

Average Age

Experienced Board: HEP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Holly Energy Partners, L.P.'s company bio, 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
  • Market Cap: US$1.488b
  • Shares outstanding: 105.44m
  • Website: https://www.hollyenergy.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEPNYSE (New York Stock Exchange)YesCommon UnitsUSUSDJul 2004
HHNDB (Deutsche Boerse AG)YesCommon UnitsDEEURJul 2004

Biography

Holly Energy Partners, L.P. owns and operates petroleum product and crude pipelines, storage tanks, distribution terminals, loading rack facilities, and refinery processing units that support the refining and marketing operations of HollyFrontier Corporation in West Texas, New Mexico, Utah, Nevada, Oklahoma, Wyoming, Kansas, Arizona, Idaho, and Washington. It operates through two segments, Pipelines and Terminals, and Refinery Processing Units. The company operates refined product pipelines that transport conventional gasolines, reformulated gasolines, and low-octane gasolines for oxygenate blending, as well as distillates, such as high- and low-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. It operates 26 main pipelines; crude gathering networks; 10 refined product terminals; 1 crude terminal; 31,800 track feet of rail storage; 7 locations with truck and/or rail racks; and tankages at 6 refining facility locations, as well as 5 refinery processing units. HEP Logistics Holdings, L.P. serves as the general partner of the company. Holly Energy Partners, L.P. was founded in 2004 and is based in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 00:06
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.