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An independent petroleum refiner which produces high value light products such as gasoline, diesel fuel and jet fuel.
best positioned refiner to reap benefits of shale boom.
Lowest P/E out of all refinery.
- HFC's main economic moat is derived from its geographic locations allowing for feedstock advantages. And,- as the S&P's Equity Analyst - Tanjila Shafi points out: "HFC sells its products throughout the Rocky Mountains, Plains states and Southwestern regions, enabling them to procure higher product prices relative to other regions."- Management style appears to be "owner oriented."___________________________________________________________________________________________________Here's what Argus Research writes about HFC:"The Holly-Frontier combination has resulted in one of the industry's most complex refiners, based on the company's ability to process lower-quality crudes. We view this as an advantage in the current environment. HFC also has substantial location benefits - its refineries are well situated to take advantage of the significant discount at which WTI, WCS and other crudes trade relative to Brent. It also has access to cheaper black wax and Canadian crudes and can benefit from product shortfalls in PADD 2. Due to their location, HFC's facilities are also more insulated from declining U.S. gasoline demand. Like other refiners, Holly is benefiting from exports of refined product, particularly diesel and distillate. We caution, however, that refinery shares as a group are among the most volatile in our Energy sector coverage universe."In short, Holly is the type of company we favor. It has a strong management team with a record of good capital allocation, competitive advantages compared to peers (via the location of its refineries), and strong shareholder distributions, particularly dividends."___________________________________________________________________________________________________Here's what S&P writes about HFC's competitive advantages:"HFC's refineries are located in the Mid-Continent, Southwestern and Rocky Mountains regions, enabling the company to access discounted crude sources, including domestic, Canadian and other foreign crudes, allowing it to lower its feedstock costs. We believe that the company is poised to benefit from discounted WTI. We see its Cheyenne and El Dorado refineries benefiting from their access to heavy Canadian crude. Each of HFC's complex refineries has the ability to process discounted, heavy and sour crude oils into a high percentage of gasoline, diesel and other high-value refined products. In addition, HFC sells its products throughout the Rocky Mountains, Plains states and Southwestern regions, enabling them to procure higher product prices relative to other regions."and:"Our buy recommendation is based on our positive view of HFC's niche markets, its ability to source discounted crudes, and its higher than peer average implied dividend yield. We are encouraged by HFC's asset location, which we believe provides the company with an advantage given the increasing production coming from Canada and the shale plays. We are also positive on the high complexity ratings for each of HFC's refineries, enabling them to process discounted heavy and sour crude oils into a high percentage of gasoline and diesel. However, we believe that the acceleration of projects intended to alleviate the crude bottleneck at Cushing, OK, will narrow the spread between WTI and water-borne crudes, resulting in lower refining margins in 2013."S&P on HFC's margins:"For most of 2011 and 2012, HFC benefited from higher margins, as it has the ability to run on WTI-linked crude, which traded at a discount to water-borne crudes. However, given the acceleration in projects such as the reversal of the Seaway pipeline, intended to alleviate the crude bottleneck at Cushing, OK, we believe that the spread between WTI and water-borne crudes will narrow and lead to lower margins in 2013 and 2014 compared to 2012."S&P Star Ranking = [4****](1=lowest, 5=highest)S&P Fair Value Rank = [5+](1=most overvalued, 5=most undervalued)___________________________________________________________________________________________________Latest dividend news (by the Fool) :"The financial well seems to be gushing at HollyFrontier. The company has declared a special dividend, in addition to its regular quarterly distribution, for holders of its common stock. The special payout is $0.50 per share, to be distributed on June 10 to shareholders of record as of May 29. The regular dividend is $0.30 per share, and the dates are July 3 and June 12, respectively.""The regular distribution matches the company's previous one, which was handed out in early April. It annualizes to $1.20 per share, yielding 2.5% at HollyFrontier's current stock price of $47.28."(SOURCE: fool.com/investing/general/2013/05/16/hollyfrontier-declares-special-and-regular-dividen.aspx )Mike Jennings, CEO and President of HollyFrontier, commented: "Our Board of Directors continues their commitment to deliver shareholder value through both regular and special dividends. Today's announcement represents our ninth special dividend paid since our merger. Including today's announced dividends, our last twelve month cash dividend yield stands at 7.1% relative to yesterday's closing price of $48.43."( SOURCE: 4-traders.com/HOLLYFRONTIER-CORP-8307259/news/HollyFrontier-Corp-HollyFrontier-Corporation-Announces-Special-and-Regular-Cash-Dividends-16866540/ )
Dividend vault (Gue)
Heavy crude refiner, an advantage with heavy crude suppliesNice margins and exemplary stewardship rating from Morningstar they were buying in shares before the mergerhttp://financials.morningstar.com/ratios/r.html?t=HFC®ion=USA&culture=en-US
HFC and PSX. How can you go wrong with these two refiners? Especially now with all the cheap domestic oil around.
Enjoys meaningful cost savings primarily derived from the refineries' locations. The benefit is not permanent as other pipelines can be built. (not likely in the near term)
Insiders are all selling exuberant amounts of this stock at $45.
Everything looks good with no debt.
Positive: - Despite runup still has a reasonable valuation - Unique position to profit from new domestic oil sources - Good earnings and cashflow growth - Obviously the have a good management which should be an important positive for future developments Negative: - Small margins which could come under pressure with oil or gas price fluctuations Category: YEOTm
The bet here is that the WTI spreads will hold. I think the changes in US production are structural and will stay for several years. WNR and HFC have locations that leverage that spread.
Wish I had bought a month ago when the price was around $37. The price increase may slow, but I see no reason to think it will stop climbing.
Magic Formula 11-29-12
Location, getting ready to open west tx ahead of all others,dividends,management ,partners, buy on a pullback after first Q 2013 feed the machine watch it make fuel which equals $. Has two possible buyers one domestic and guess the foreigner the fight is on under the table and the foreigner has plenty to spend, but tx does not like a foreigner they are a country all by there self but this foreigner has previous relations, money talks usually.
Top 30 companies with a minimum market cap. of 5000 million
5 Star Greenblatt
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