HFC stock continues to climb after 44% year-over-year increase

HollyFrontier (HFC) shares rose 4.9% on August 1, when earnings were released, despite falling oil prices, the stock market and peers. A 44% increase in adjusted earnings from the prior year supported HFC equities, and these better than expected EPSs boosted HFC equities.

West Texas Intermediate (WTI) lost 7.9% on August 1st. The SPDR S & P 500 ETF (SPY) fell by 0.9% that day.

HollyFrontier's Valero Energy (VLO), Marathon Petroleum (MPC) and Phillips 66 (PSX) companies fell 1.1%, 1.8% and 0.6% respectively on August 1st. In the second quarter, Valero's EPS was $ 1.5, exceeding BPA badysts estimated at $ 1.4. Marathon Petroleum's adjusted EPS of $ 1.73 was above badysts' estimate of $ 1.32. In addition, adjusted EPS of $ 3.02 from Phillips 66 exceeded the badysts' average estimate of $ 2.74.

In addition, the Delek US Holdings (DK) share fell 10.1% on August 1st. Analysts estimate that Delek's earnings will fall by 38% year-over-year in the next quarter.

HFC stock registers strong second quarter

HollyFrontier had a strong quarter with higher earnings from Refining and Holly Energy Partners (HEP). HollyFrontier continued to grow in the second quarter, with investments of $ 57 million. HollyFrontier also returned shareholder wealth in the form of dividends ($ 57 million) and share repurchases ($ 189 million).

During the second quarter earnings conference call, George Damiris, President and CEO of HollyFrontier, said, "We will continue to focus on improving the reliability of our refining system and successful integration. Sonneborn to further strengthen our earnings profile. With no major downtime expected before September, our refineries are well positioned for strong operational and financial performance in the third quarter. "

HFC stock forecasts are promising

The estimates of the HFC share price range for the period ending August 9, 2019 are presented below.

Given the implied volatility of HollyFrontier of 31.0% and baduming a normal price distribution and a standard deviation of prices, the HFC share price could close between $ 54.6 and $ 49.8 per share in the eight days ending August 9th.

Higher incomes support HFC stock

Adjusted EBITDA increase of 33% year-over-year boosted HFC.

HollyFrontier's Adjusted EBITDA for refining increased 44% to $ 556 million in the second quarter. The increase in refining margins was partially offset by lower rates. HollyFrontier's gross refining margin increased by $ 3.1 per barrel in the second quarter of 2018 to $ 19.6 per barrel in the second quarter of 2019. But the company's throughput decreased by 2 per cent compared to the previous year. ;last year.

However, in the second quarter, HollyFrontier's adjusted lubricant business EBITDA decreased 27% year-over-year to $ 29 million. The decrease was mainly due to an EBITDA of $ 35 million, which was affected by weak base oil markets. Despite this, Rack Forward's EBITDA increased from $ 52 million in Q2 2018 to $ 64 million in Q2 2019.