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Posts Tagged ‘HollyFrontier Corporation’

Energy Sector Outlook – Best Energy Stocks

S&P Capital IQ equity analysts have a positive fundamental outlook on the influential Integrated Oil & Gas sub-industry, as well as most of the sector’s other smaller sub-industry groups. We believe that oil prices will decline slightly from current levels, averaging $91.96/bbl. in 2012 and $89.51 in 2013 as global economic growth slows.

The Capital IQ consensus sees Energy sector EPS rising 11.2% in 2013 versus an 11.9% gain estimated for the S&P 500. According to Capital IQ, the sector’s recent valuation of 12.3X consensus estimated 2012 EPS is below the 500’s P/E of 14.0X, as oil price volatility keeps investors from assigning the sector too high a valuation, in our view. The sector’s P/E-to-projected five-year EPS growth rate (PEG) ratio of 2.1X is above the broader market’s 1.2X. This sector’s marketweighted S&P STARS average of 4.5 (out of 5.0) is above the S&P 500’s average of 3.8.

The S&P GICS Energy Index sector has advanced right up to key trendline resistance off the April 2011 highs, and therefore, we believe there could be a pullback in the near term. In addition, prices have rallied into the beginning of a heavy layer of overhead supply that runs from 540 to 570, and we think this resistance may also keep a ceiling on prices in the short term.

Both WTI and Brent are either at or very near large areas of overhead supply so we think oil prices could pause or correct. In addition, the COT (Commitment of Traders) data is showing high levels of bullishness for crude oil from large speculators (“dumb money”) and high levels of bearishness from commercial hedgers (“smart money”). Relative strength versus the 500 has bounced nicely since June, but the RS line remains in a downtrend off the April 2011 top.

The stocks listed below are all Bullish and priced below their fair value.

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DK Delek US   Holdings Inc.
MPC Marathon Petroleum Corp
TSO Tesoro Corporation
CVX Chevron Corporation
STO Statoil ASA
HFC HollyFrontier   Corporation
VLO Valero Energy   Corporation
SXL Sunoco Logistics   Partners L.P.
LGCY Legacy Reserves Lp
CLMT Calumet Specialty   Products

HollyFrontier Declares 4th Special Dividend in 2012

HollyFrontier Corporation (NYSE:  HFC) announced  that its Board of Directors declared an additional special cash dividend in the amount of $0.50 per share, payable on October 2, 2012 to holders of record of common stock on September 25, 2012.

Mike Jennings, CEO and President of HollyFrontier, said, “Our Board of Directors’ decision to issue a 2nd special dividend for the third quarter 2012, our 4th special dividend this year, and our 6th special dividend since the completion of the merger that formed HollyFrontier in July 2011, is a reflection of our continued commitment to return capital to shareholders. The Board of Directors has declared $3.00 of special and regular dividends in the last twelve months representing a 7.5% dividend yield on today’s closing price of $40.00 per share. In total, HollyFrontier has returned $952 million of capital to shareholders since July 2011, $741 million in special and regular dividends as well as $211 million in share repurchases of its common stock as of the second quarter results announcement.”

HollyFrontier said last month that its second-quarter profit more than doubled as the refiner saw strong revenue growth, helped by the merger. The company has benefited from increased oil production in the Bakken region of North Dakota and the Permian Basin in Texasand New Mexico, as a glut of crude oil in the midcontinental region has allowed HollyFrontier to boost refining margins.

HollyFrontier is trading at $40.00, 49% below its fair value of $59.77.  HollyFrontier pays a quarterly dividend of 1.50%.  HollyFrontier has an equity summary score of 9.4 out of 10 for a VERY Bullish outlook.

Subscribers to the Get Rich Monthly Income Plan have been investing in HollyFrontier since January 2012 with a total return of 134% year to date.

HollyFrontier Corporation Announces Special and Regular Dividends

HollyFrontier Corporation (HFC) announced today that its Board of Directors declared a special cash dividend in the amount of $0.50 per share, payable on September 4, 2012 to holders of record of common stock on August 27, 2012.

The Board of Directors also approved a regular quarterly dividend of $0.15 per share. This dividend will be paid on October 2, 2012 to all holders of record of common stock on September 10, 2012.

Mike Jennings, CEO and President of HollyFrontier  said, “After last week’s outstanding second quarter results, our Board of Directors authorized another special dividend, the fifth since our July 2011 merger. Over the last twelve months we have returned$2.42 per share in cash to shareholders through regular and special dividends, which equates to a more than 6% yield on today’s closing price of $39.59 per share.”

Subscribers to the Get Rich Monthly Income Plan have an YTD return on HFC of 96% (excluding recent special dividend) from investing in a perpetual covered call position.  MIP investors also collected a $0.50 special dividend from HFC in June 2012.

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