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What´s your take on HEP? Is the market missing that they have consistently been raising their distribution for almost 10 years (currently North of 7%)?
Robert Rapier
Hi Peter,
While we have turned a bit bearish on refining-related companies, HEP looks like it could be an exception. I need to do a deeper dive on it to see how the coverage ratio has held up during the refiners’ recent struggles.
Here’s an update from the last edition of MLP Profits:
Holly Energy Partners (NYSE: HEP) posted a 22% gain in second-quarter EBITDA as a result of recent acquisitions from its refiner sponsor HollyFrontier (NYSE: HFC). The distribution coverage of 1.17x supported a payout increased 7% year-over-year. The annualized yield is up to 7.3% after the unit price pulled back 10% over the last month. The price is still up 4% year-to-date and 43% from February’s low. Growth pick HEP is a Hold.
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Igor Greenwald
If you’ve had trouble getting on for our monthly chat at the top of the hour, the link has been fixed and we’re chatting here: http://www.investingdaily.com/energy-strategist/chats/28451/8916-energy-live-chat/ Apologies for any incovenience.
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Peter
What´s your take on HEP? Is the market missing that they have consistently been raising their distribution for almost 10 years (currently North of 7%)?
Robert Rapier
Hi Peter,
While we have turned a bit bearish on refining-related companies, HEP looks like it could be an exception. I need to do a deeper dive on it to see how the coverage ratio has held up during the refiners’ recent struggles.
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Igor Greenwald
Here’s an update from the last edition of MLP Profits:
Holly Energy Partners (NYSE: HEP) posted a 22% gain in second-quarter EBITDA as a result of recent acquisitions from its refiner sponsor HollyFrontier (NYSE: HFC). The distribution coverage of 1.17x supported a payout increased 7% year-over-year. The annualized yield is up to 7.3% after the unit price pulled back 10% over the last month. The price is still up 4% year-to-date and 43% from February’s low. Growth pick HEP is a Hold.
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