Summary
- Earlier in 2022, Holly Energy Partners placed higher distributions on the horizon.
- They have not subsequently backed down, at least not publicly, and most importantly, they continue seeing benefits from their Sinclair acquisition.
- When looking ahead, I estimate their free cash flow, and thus, distribution coverage will climb even higher in 2023 versus 2022.
- This increases the scope for higher distributions with their investments winding down, thereby maximizing free cash flow.
- It appears the scene is set for higher distributions, and thus I believe that maintaining my strong buy rating is appropriate.
For further details see:
Holly Energy Partners: The Scene Is Set For Higher Distributions