NYSE:HEP

Stock Analysis Report

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.

Snowflake


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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


Market Performance


7 Day Return

7.5%

HEP

1.0%

US Oil and Gas

0.07%

US Market


1 Year Return

-23.8%

HEP

-16.7%

US Oil and Gas

8.9%

US Market

Return vs Industry: HEP underperformed the US Oil and Gas industry which returned -16.7% over the past year.

Return vs Market: HEP underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HEPIndustryMarket
7 Day7.5%1.0%0.07%
30 Day-5.6%-4.3%-0.3%
90 Day-21.5%-7.3%-1.6%
1 Year-16.5%-23.8%-13.5%-16.7%11.3%8.9%
3 Year-9.8%-29.3%-5.8%-14.4%46.3%36.8%
5 Year2.4%-30.1%-23.1%-34.1%62.1%44.3%

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?

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEP ($23.6) is trading below our estimate of fair value ($26.67)

Significantly Below Fair Value: HEP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HEP is poor value based on its PE Ratio (13.1x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: HEP is good value based on its PE Ratio (13.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HEP is poor value based on its PEG Ratio (11x)


Price to Book Ratio

PB vs Industry: HEP is overvalued based on its PB Ratio (6.4x) compared to the US Oil and Gas industry average (0.9x).

Future Growth

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

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEP's forecast earnings growth (1.2% per year) is below the savings rate (2.7%).

Earnings vs Market: HEP's earnings (1.2% 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 is expected to decline over the next 3 years (-0.03% per year).

High Growth Revenue: HEP's revenue is forecast to decline over the next 3 years (-0.03% 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 (40.6%).

Past Performance

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

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HEP's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: HEP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HEP had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (20.6%).


Return on Equity

High ROE: Whilst HEP's Return on Equity (37.7%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: HEP has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: HEP has not improved its Return on Capital Employed over the past 3 years.

Financial Health

How is Holly Energy Partners's financial position?


Financial Position Analysis

Short Term Liabilities: HEP's short term assets ($72.0M) exceeds its short term liabilities ($53.8M)

Long Term Liabilities: HEP's short term assets (72.0M) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: HEP's debt to equity ratio (274.8%) is considered high

Reducing Debt: HEP's debt to equity ratio has increased from 181.9% to 274.8% over the past 5 years.

Debt Coverage: HEP's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: HEP's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: HEP has a high level of physical assets or inventory.

Debt Coverage by Assets: HEP's debt is not covered by short term assets (assets are 0.1x debt).

Dividend

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

11.40%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Holly Energy Partners before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company11.4%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years10.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HEP's dividend (11.4%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HEP's dividend (11.4%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: HEP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (148.9%), HEP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEP's dividends in 3 years are not forecast to be well covered by earnings (123.6% payout ratio).

Management

What is the CEO of Holly Energy Partners's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

George Damiris (59yo)

2.9yrs

Tenure

US$1,981,430

Compensation

Mr. George J. Damiris has been the Chief Executive Officer and President of HollyFrontier Corporation since January 1, 2016. Mr. Damiris has been Chief Executive Officer of Holly Logistic Services, LLC, th ...


CEO Compensation Analysis

Compensation vs. Market: George's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

56yo

Average Age

Experienced Management: HEP's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

66yo

Average Age

Experienced Board: HEP's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: HEP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$55,10006 Aug 19
Eric Mattson
EntityIndividual
Role
Member of the Board of Directors
Director of Holly Logistic Services LLC
Shares2,000
Max PriceUS$27.65
SellUS$144,10029 Nov 18
Michael Jennings
EntityIndividual
Role
Chairman of the Board
Chairman of Holly Logistic Services LLC
Shares5,000
Max PriceUS$28.82

Ownership Breakdown


Management Team

  • George Damiris (59yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$1.98m
  • Rich Voliva (41yo)

    Executive VP & CFO of Holly Logistic Services LLC

    • Tenure: 4yrs
    • Compensation: US$654.22k
  • Mark Cunningham (59yo)

    Senior Vice President of Operations & Engineering - Holly Logistic Services

    • Tenure: 1.8yrs
    • Compensation: US$794.58k
  • Kenneth Norwood (53yo)

    Vice President and Controller of Holly Logistic Services LLC

    • Tenure: 5.6yrs
  • Craig Biery

    Director of Investor Relations

    • Tenure: 0yrs
  • Jared Harding

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Mike Jennings (53yo)

    Chairman of Holly Logistic Services LLC

    • Tenure: 1.9yrs
    • Compensation: US$210.66k
  • James Lee (70yo)

    Independent Director of Holly Logistic Services LLC

    • Tenure: 1.9yrs
    • Compensation: US$103.01k
  • Eric Mattson (67yo)

    Director of Holly Logistic Services LLC

    • Tenure: 1.6yrs
  • George Damiris (59yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$1.98m
  • Christine LaFollette (66yo)

    Director of Holly Logistic Services LLC

    • Tenure: 1.6yrs
  • Larry Baldwin (66yo)

    Director of Holly Logistic Services LLC

    • Tenure: 3.4yrs
    • Compensation: US$228.03k

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$2.488b
  • Shares outstanding: 105.44m
  • Website: https://www.hollyenergy.com

Location

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:57
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.