HFC - Holly Energy Partners: The 10% Yield Still Looking Healthy In 2021
- After reducing their distributions in early 2020, Holly Energy Partners has sustained its almost 10% yield and is well-positioned heading into 2021.
- Their operating cash flow has remained very resilient amidst this downturn, thereby supporting their strong distribution coverage.
- This should continue into 2021 with their capital expenditure guidance remaining modest, plus their capital investments should help support their operating cash flow.
- Whilst their leverage is still high, it does not pose any material risks thanks to their stable earnings and strong liquidity.
- Given this situation, I believe that maintaining my bullish rating is appropriate.
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Holly Energy Partners: The 10% Yield Still Looking Healthy In 2021