HEP - Holly Energy Partners: The Great Deal Buy Their 8%+ Yield And Get Any Growth For Free

• The current unit price of Holly Energy Partners presents a great deal for investors who can buy their high 8%+ distribution yield whilst getting any growth for free.
• Their cash flow performance has not only remained resilient throughout 2020 and 2021 but has actually grown moderately, although they are currently focused on deleveraging instead of higher distributions.
• When looking ahead, their Sinclair acquisition will see their leverage edge higher but does not pose any significant risks.
• There is uncertainty over when and by how much they will grow their distributions after this acquisition but at least they will remain sustainable.
• Since their intrinsic value is at least approximately 20% higher even without any distribution growth, I believe that maintaining my bullish rating is appropriate.

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