While Deutsche Bank (NYSE:DB) believes the refining industry needs to be shrunk in the U.S., there is good news for companies like Marathon (NYSE:MRI) and Holly (NYSE:HOC) serving in that capacity, as margins are up and earnings will follow as a result.
Both companies were upgraded to "Buy" on enhanced margins.
Deutsche Bank said, "Demand is weak and expected to never attain its previous peaks; but more refining capacity has been added. The need is to retire refineries, a slow and painful aging process for a twilight industry. However in this note we list the many positive factors that have driven US refining margins, particularly in the MidCon, towards the upper end of the 2000-2010 range. Long MidCon: Raise Marathon to BUY, Holly to BUY, re-iterate ConocoPhillips (NYSE:COP) BUY, Frontier (NYSE:FTO) BUY, CVR Energy (NYSE:CVI) BUY."
It seems Deutsche is wrong concerning oil refinery capacity, which has caused problems in the past in the U.S. when a number of them were shut down.
Showing posts with label Holly Energy. Show all posts
Showing posts with label Holly Energy. Show all posts
Tuesday, October 26, 2010
Friday, October 15, 2010
Wells Fargo (NYSE:WFC) on Genesis (NYSE:GEL), TC Pipeline (Nasdaq:TCLP) and Holly Energy (NYSE:HEP)
Commenting on the small cap pipeline MLPs, Wells Fargo (NYSE:WFC) gave their input on Holly Energy Partners, L.P. (NYSE:HEP) and TC Pipeline Partners, L.P. (Nasdaq:TCLP) and Genesis Energy, L.P. (NYSE:GEL)."
"We are increasing valuation ranges for GEL to $25 to $27 from $24 to $26 and for TLP to $33 to $35 from $32 to $34. We are also adjusting our DCF estimates for GEL, HEP and TCLP. Our revised valuation ranges suggest median total return potential of 13% for the subsector. We are downgrading Holly Energy Partners, L.P. and TC Pipeline Partners, L.P. to Underperform from Market Perform based on valuation. Our top Outperform pick in this subsector is Genesis Energy, L.P."
Holly Energy closed down $50.89 Thursday, falling $1.36, or 2.60 percent. TC Pipelines finished the trading day at $47.66, dropping $1.23, or 2.52 percent. Genesis also finished down, ending at $25.01, losing $0.19, or 0.75 percent.
"We are increasing valuation ranges for GEL to $25 to $27 from $24 to $26 and for TLP to $33 to $35 from $32 to $34. We are also adjusting our DCF estimates for GEL, HEP and TCLP. Our revised valuation ranges suggest median total return potential of 13% for the subsector. We are downgrading Holly Energy Partners, L.P. and TC Pipeline Partners, L.P. to Underperform from Market Perform based on valuation. Our top Outperform pick in this subsector is Genesis Energy, L.P."
Holly Energy closed down $50.89 Thursday, falling $1.36, or 2.60 percent. TC Pipelines finished the trading day at $47.66, dropping $1.23, or 2.52 percent. Genesis also finished down, ending at $25.01, losing $0.19, or 0.75 percent.
Tuesday, September 7, 2010
Holly Energy (NYSE:HEP), NuStar Energy (NYSE:NS) Downgraded by Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS)
Energy companies have been receiving a lot of attention lately, and there have been a number of downgrades and upgrades. On the downgrade side, Bank of America (NYSE:BAC) downgraded Holly Energy (NYSE:HEP) while Morgan Stanley (NYSE:MS) downgraded NuStar Energy (NYSE:NS).
Holly was downgraded from "Buy" to "Neutral," and NuStar from "Overweight" to "Equalweight."
NuStar fell to $57.65, dropping $1.46, or 2.47 percent, as of 3:20 PM EDT. Holly Energy was up slightly to $50.72, gaining $0.10, or 0.20 percent at 3:21 PM EDT.
Holly Energy Partners, L.P. runs a system of petroleum product and crude oil pipelines, storage tanks, distribution terminals, and loading rack facilities.
NuStar Energy L.P. operates in the terminalling, storage, and transportation of petroleum products in a number of countries and parts of the world.
Holly was downgraded from "Buy" to "Neutral," and NuStar from "Overweight" to "Equalweight."
NuStar fell to $57.65, dropping $1.46, or 2.47 percent, as of 3:20 PM EDT. Holly Energy was up slightly to $50.72, gaining $0.10, or 0.20 percent at 3:21 PM EDT.
Holly Energy Partners, L.P. runs a system of petroleum product and crude oil pipelines, storage tanks, distribution terminals, and loading rack facilities.
NuStar Energy L.P. operates in the terminalling, storage, and transportation of petroleum products in a number of countries and parts of the world.
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