Timothy Smith
9 years ago
HollyFrontier stock has posted the biggest gain in this space of nearly 24% this year.
However, as school begins and the busy summer driving season comes to an end, the gasoline demand will witness a seasonal drop through fall and winter.
Refineries will also begin to temporarily shut down for maintenance which could lead to a drop of 1.3 million barrels per day of volumes.
Volumes usually drop to their lowest level in early October right in the middle of the autumn maintenance, or turnaround, season, gradually recovering by the end of the year. This could lead to a sequential drop in earnings in the fourth quarter.
Timothy Smith
9 years ago
@Timothy Smith: HollyFrontier (NYSE:HFC) said a month ago that it ran its refineries in Tulsa, Okla., and El Dorado, Kan., at rates above 100% in Q2; in the entire Midwest region, refiners ran at 100.3% of capacity in the week to July 31, according to EIA data.
Timothy Smith
9 years ago
With the company set to aggressively repurchase its undervalued shares, strong throughput volumes, and solid demand fundamentals, I think HollyFrontier is poised to deliver strong returns for shareholders.
While broader market dynamics, i.e. the price of oil, dictating much of trading, shares can swoon for a while.
However, I would bet on Jennings and his talented management team to wisely allocate capital and move the share price higher in the next year.