HFC - Holly Energy Partners: The 6%+ Yield Remains Safe Despite The Tough Times At HollyFrontier

• Whilst 2021 has seen many improvements versus 2020, sadly, the tough times have continued for HollyFrontier.
• This may cause some investors to ponder the counterparty risk for their high-yielding subsidiary, Holly Energy Partners.
• Thankfully, the latter faces few realistic risks both as a separate entity and also as a subsidiary, HollyFrontier would gain little from hurting their majority-owned partnership.
• Thankfully, Holly Energy Partners saw a solid start to 2021 and remain on track themselves with net debt decreasing thanks to their distribution coverage remaining strong despite higher capital expenditure.
• Since their high 6.50% distribution yield remains safe despite the tough times at their parent company, I continue believing that my bullish rating is appropriate.

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