Holly Energy Partners Meets the Street

August 1, 2019

Holly Energy Partners, L.P. reported Q2 EPS of $0.43, in-line with the analyst estimate of $0.43.

The Dallas company’s net income for the second quarter was $45.7 million ($0.43 per basic and diluted limited partner unit) — compared to $40.1 million ($0.38 per basic and diluted limited partner unit) for the second quarter of 2018

Distributable cash flow was $67.5 million for the quarter, an increase of $2.3 million, or 3.5% compared to the second quarter of last year.

Holly said the increase in net income was mainly thanks to higher crude oil pipeline volumes around the Permian Basin and our crude pipeline systems in Wyoming and Utah as well as contractual tariff escalators.

The company listed as offsets to net income a number of higher operating costs and interest expense.

And back on July 18th, Holly announced its 59th consecutive distribution increase, raising the quarterly distribution from $0.6700 to $0.6725 per unit, which represents an increase of 1.9% over the distribution for the second quarter of 2018.

Looking forward, Holly CEO George Damiris said, “we expect strong performance in the second half of 2019, driven by the increase in contractual tariff escalators and healthy demand for pipeline volumes.”