Investment thesis:
HollyFrontier Corp (HFC) share price halved since September 2018, following declining revenue and challenging base-oil and refining backdrop. In spite of that, HFC’s refining margins surged in the 1Q2019, thanks to robust cost management. Going forward, declining gasoline cracks, mounting crude market uncertainty and expected global economic slowdown may continue to weigh on the company.
Source: TradingView
Difficult refining and base-oil market conditions deteriorated HFC’s earnings, whilst logistics organic growth partly offset it
Since my last article, the company posted mixed 1Q2019 results, following weakening refining sales, profitless lubricants activity