- After fighting to sustain their dividends throughout the severe downturn of 2020, HollyFrontier ended up completely suspending them early in 2021.
- This was to help fund their Puget Sound Refinery acquisition with the intention to have them reinstated one year later.
- Thankfully, their cash flow performance is recovering and when looking ahead, their preliminary capital expenditure guidance is lower.
- This means that they should have sufficient free cash flow and given their only moderate leverage, they can safely reinstate their dividends in 2022.
- Given their solid overall performance, I believe that upgrading to a bullish rating from a neutral rating is now appropriate.
For further details see:
HollyFrontier: The Countdown To Seeing Their Dividends Reinstated