- After seeing a recovery during 2021, disappointingly HollyFrontier saw a rough end to the year.
- Their operating cash flow was negative during the fourth quarter of 2021 due to higher maintenance and weather-related downtime, which was amplified by a large working capital build.
- Management is still sticking to their plan of returning $1b to shareholders starting soon, which is tantamount to seeing a massive 20%+ of your capital returned.
- This may prove a struggle to fund without the use of debt, and given their already high leverage, this will need to be closely monitored but at least their liquidity remains strong.
- I am maintaining my buy rating but I hope that management walks back these massive shareholder returns if the operating conditions of 2022 deteriorate.
For further details see:
HollyFrontier: Get A Massive 20%+ Of Your Capital Returned Despite The Rough End To 2021