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HollyFrontier Corp. (HFC)

  • Thu, Feb. 19, 9:53 AM
    • HollyFrontier (HFC -1.5%) says its board has authorized a new $500M share repurchase program, using funds that had previously been allocated to its $0.50/share special dividend; the regular dividend of $0.32/share remains unchanged.
    • Cutting the special dividend is no surprise given the compression of the Brent/WTI spread vs. when HFC initiated the special dividend in 2011, Wells Fargo writes as it reiterates its Market Perform rating on the stock; HFC likely will be in a negative net free cash flow position in 2015, so it was on an unsustainable path supporting both a regular and special dividend and a share repurchase program, the firm says.
    | Thu, Feb. 19, 9:53 AM | 11 Comments
  • Wed, Feb. 18, 4:36 PM
    • HollyFrontier (NYSE:HFC) declares $0.32/share quarterly dividend, in line with previous.
    • Forward yield 3.06%
    • Payable March 24; for shareholders of record March 10; ex-div March 6.
    | Wed, Feb. 18, 4:36 PM | Comment!
  • Tue, Jan. 20, 8:45 PM
    • Venezuela’s Citgo Petroleum reportedly has called off its sale process and instead plans a debt sale to raise $2.5B for the cash-strapped country.
    • The U.S. oil refining and marketing unit of PdVSA, which operates three oil refineries with a combined 760K bbl/day in processing capacity as well as networks of pipelines and fuel distribution terminals in the eastern U.S., was expected to fetch $8B-$11B in a sale, but plunging crude oil prices have pressured the country, which already had been facing cash flow problems, making a debt sale more attractive as a quicker source of cash.
    • The Citgo auction drew interest from U.S. refiners Marathon Petroleum (NYSE:MPC), HollyFrontier (NYSE:HFC) and Valero Energy (NYSE:VLO) as well as P-E firms.
    | Tue, Jan. 20, 8:45 PM | 4 Comments
  • Tue, Jan. 6, 6:28 PM
    • Thomson Reuters StarMine data ranks the energy sector as having the worst analyst sentiment, using a model that lists equities by aggregating metrics that include changes in sell-side estimates for company earnings and revenue.
    • Chevron (NYSE:CVX) registered the lower score, with analysts lowering estimates more than for 99% of companies; six different analysts have lowered Q4 EPS expectations by an average of 14.3% in the past month.
    • Expected Q4 earnings growth in the energy sector is at -19.8%, according to Thomson Reuters data, down from a 6.4% growth expectation on Oct. 1, with Q1 looking even worse at -32.2%.
    • Marathon Oil (NYSE:MRO), HollyFrontier (NYSE:HFC) and QEP Resources (NYSE:QEP) are among the other handful of energy companies with the lowest possible score.
    | Tue, Jan. 6, 6:28 PM | 21 Comments
  • Fri, Jan. 2, 5:11 PM
    • HollyFrontier (NYSE:HFC) -1.6% AH after saying it expects a lower of cost or market inventory adjustment to result in a FY 2014 pretax charge of $350M-$400M because of falling crude oil prices.
    • HFC also says maintenance at its El Dorado refinery in Kansas took 10 days longer than planned and required significant repairs, which caused a shift towards a lighter and sweeter crude slate post-turnaround and limited its overall crude charge in the quarter to 359K bbl/day.
    | Fri, Jan. 2, 5:11 PM | 9 Comments
  • Dec. 15, 2014, 12:33 PM
    • BofA Merrill analyst Doug Leggate stays cautious on the refining sector for 2015, although he sees a bullish opportunity in Phillips 66 (PSX +0.5%), which he upgrades to Buy from Neutral with a $90 price target.
    • The expected recognition of value risks being materially overhyped compared to what is currently being recognized by MLPs, the analyst says, adding that absence of guidance on the cost impact on the remaining business, limited guidance on tax and lack of precision on disclosure prompts skepticism that the market is not getting ahead of itself.
    • Leggate downgrades HollyFrontier (HFC -1.5%) to Neutral from Buy, and PBF Energy (PBF -1.9%) and Delek US (DK -1.9%) to Underperform from Neutral; he also lowers stock price targets for the three, as well as for Valero (VLO +0.4%), Northern Tier (NTI -2.5%) and Marathon Petroleum (MPC -1.1%).
    | Dec. 15, 2014, 12:33 PM | 25 Comments
  • Dec. 3, 2014, 3:15 PM
    • U.S. oil refiners are processing record amounts of crude for this time of year, FT reports, taking advantage of falling oil prices and a flood of supply from shale drillers.
    • Refiners’ appetite has kept the price of high-quality light U.S. crude closely in line with international prices, defying warnings that a glut would force deep discounts: “The bottom line remains that we haven’t seen an oversupply of light crude,” Marathon Petroleum (MPC +1.5%) says.
    • Whether U.S. refineries succeed in absorbing the rising oil tide is up for speculation, but the refiners' own investment plans suggest they have the capacity to handle rising volumes; Valero (VLO +1.4%), for example, plans to add crude units in Houston and Corpus Christi designed to process oil from the nearby Eagle Ford shale.
    • Refiners are by far the dominant customers for crude, so the amount purchased by U.S. refiners will be an important guide for world oil markets.
    • Also: TSO +0.1%, ALJ +0.5%, PSX +1.6%, WNR +1.2%, HFC +0.4%, CVI +0.8%, PBF +1.8%.
    | Dec. 3, 2014, 3:15 PM | 12 Comments
  • Nov. 21, 2014, 6:45 PM
    | Nov. 21, 2014, 6:45 PM | 46 Comments
  • Nov. 21, 2014, 10:28 AM
    | Nov. 21, 2014, 10:28 AM | 37 Comments
  • Nov. 12, 2014, 5:26 PM
    • HollyFrontier (NYSE:HFC) declares $0.32/share quarterly dividend, in line with prior.
    • Forward yield 2.92%.
    • Payable Dec. 30; for shareholders of record Dec. 4; ex-div Dec. 2.
    • Additionally, board also declared special dividend of $0.50/share payable on Dec. 17.
    | Nov. 12, 2014, 5:26 PM | 1 Comment
  • Nov. 5, 2014, 7:15 AM
    • HollyFrontier (NYSE:HFC): Q3 EPS of $0.88 misses by $0.06.
    • Revenue of $5.32B (-0.2% Y/Y) beats by $870M.
    • Press Release
    | Nov. 5, 2014, 7:15 AM | Comment!
  • Nov. 4, 2014, 5:30 PM
  • Oct. 27, 2014, 9:44 AM
    • Venezuela is canceling plans to sell its Citgo U.S. refining unit, the country’s finance minister says, apparently the victim of falling oil prices, declining refining margins, and unscheduled downtime among Citgo's refineries.
    • Venezuelan officials indicated earlier this year that they were looking to sell Citgo for as much as $10B, and HollyFrontier (NYSE:HFC), Valero Energy (NYSE:VLO), Western Refining (NYSE:WNR), Tesoro (NYSE:TSO) and PBF Energy (NYSE:PBF) were speculated as potential bidders for Citgo's three U.S. refineries.
    • Analysts at the risk consultancy Eurasia Group recently warned that a sale of Citgo would leave fewer assets for investors to target if Venezuela defaults.
    | Oct. 27, 2014, 9:44 AM | Comment!
  • Oct. 14, 2014, 6:57 PM
    • Refiners implore Pres. Obama to remain firm on plans to scale back renewable fuel quotas for 2014, warning that if the administration gives in to Corn Belt demands for higher mandates, it could cause gasoline prices to spike.
    • The EPA last year proposed cutting the amount of renewable fuel required for 2014 to 15.2B gallons, ~3B gallons below the amount prescribed in federal statutes, including up to 13B gallons from traditional corn-based ethanol and 2.2B gallons of advanced biofuels.
    • But administration officials have hinted they could boost the final targets, justified in part because gasoline consumption has also risen since the proposal was first unveiled last year.
    • Among signers of a letter to Obama were Valero (NYSE:VLO) CEO Joseph Gorder and Tesoro (NYSE:TSO) CEO Gregory Goff.
    | Oct. 14, 2014, 6:57 PM | 7 Comments
  • Oct. 9, 2014, 2:57 PM
    • J.P. Morgan has a favorable outlook on the refining sector heading into Q3 earnings, as the group has sold off since September on a combination of factors, including fears about the crude export ban being lifted and narrowing crude differentials, despite good product cracks.
    • Two of the biggest drops among refiners have been suffered by Valero Energy (VLO -2.7%) and HollyFrontier (HFC -2.6%), each ~13% since the group's peak; of the two, JPM likes VLO going into the quarter, particularly in the event of any favorable updates around capital allocation.
    • The firm thinks Tesoro (TSO -3.2%) is set up for another solid quarter but that investors must be expecting it, given that shares are down only ~3%.
    | Oct. 9, 2014, 2:57 PM | 1 Comment
  • Oct. 7, 2014, 3:23 PM
    • Amid today's sea of red in stocks, oil refinery names are enjoying gains thanks to a bullish note from Citi analyst Faisel Khan, who upgraded the sector along with some individual refiner stocks, including Phillips 66 (PSX +0.7%) and HollyFrontier (HFC +1%).
    • Khan says PSX is positioning itself to become the "premier hydrocarbon logistics provider on the Gulf Coast,” and he sees the refiner's midstream assets generating $2.3B in EBITDA by 2018; Khan upgrades shares to Buy from Neutral.
    • HFC also is upgraded to Buy from Neutral by Khan, who thinks HFC’s balance sheet should allow it to pursue various acquisitions and that it has the mechanisms in place to generate $700M-$800M in discretionary cash flow over the next two years.
    • Khan also upgraded CVR Refining (CVRR +0.8%) and Alon USA Partners (ALDW +5%) to Buy, raised his price target for Marathon Petroleum (MPC +0.6%) and reiterated his positive outlook for Valero Energy (VLO +1%).
    | Oct. 7, 2014, 3:23 PM | 15 Comments
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Company Description
HollyFrontier Corp is an independent petroleum refiner. It produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. It operates in two segments; Refining and HEP.