HEP - Holly Energy Partners: Talk Of Distribution Growth Returning For This 8% Yield

• After early 2020 saw their distributions almost halved, 2021 has started off much brighter for Holly Energy Partners with talk now returning of distribution growth.
• They performed very well and resiliently during 2020 and based upon their continued growth investments, this should continue into the future.
• Management has indicated that they wish to reach their deleveraging target before increasing cash returns to unitholders.
• Based upon my calculations, this could eventuate during 2022 or possibly even late 2021 if their earnings growth continues.
• The prospects of collecting a high distribution yield of 8% whilst awaiting future growth is quite attractive and thus I believe that maintaining my bullish rating is appropriate.

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