With the epic collapse in oil prices, time to take a look at the refiner. HFC has caught our attention as the stock is on the verge of a breakout.
HollyFrontier Corporation (NYSE:HFC) is a refiner that owns 457,000 barrels per day (BPD) of Mid-Continent, Rockies, and New Mexico transport fuels refining capacity and 15,600 BPD of lubricating oil refining capacity. HollyFrontier also has controlling interest in midstream partnership Holly Energy Partners (NYSE:HEP) which trades separately from the HFC stock.
Even though demand is global, it happens that most of HollyFrontier's markets are inland and less densely-populated. As the CDC map shows, these Rockies and Mid-Continent states (in yellow, yellow-orange, and orange) have experienced a lower number of Covid-19 infections; they are likely to be some of the first states to re-open.
HFC has a dividend yield of 5.27% and trades at 5x cash and 3.43x FCF.
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