HollyFrontier Corporation reported third-quarter 2017 net income per share (excluding special items) of $1.14 beating the Zacks Consensus Estimate of 89 cents. Further the income was also significantly ahead of the year-ago period profit of 42 cents. Strong results were driven by refining margins, higher sales volume and contribution from the PCLI unit.
Revenues of $3,719.2 million surpassed the Zacks Consensus Estimate of $3,541 million and climbed 30.6% from third-quarter 2016 sales of $2,847.3 million.
Segmental Information
Refining: Net income from the Refining segment — which is the main contributor to HollyFrontier earnings — was $408.7 million, surging a whopping 238% from the year-ago income of $121 million. The improvement reflects wider gross margins, which jumped 48% to $14.55 per barrel.
Total refined product sales volumes averaged 455,960 barrels per day (bpd), up 4.2% from the 437,700 bpd in the year-ago quarter. Moreover, throughput increased from 473,830 bpd in the year-ago quarter to 485,780 bpd. Capacity utilization, at 99.5%, was up from 97.1% in third-quarter 2016.
PCLI: Income from Petro-Canada Lubricants Inc. (or PCLI) business — bought from Canadian oil and gas giant Suncor Energy Inc. (SU - Free Report) earlier this year — totaled $22.6 million. Product sales averaged 20,600 bpd, while production and throughput came in at 21,670 bpd and 22,360 bpd, respectively.
HEP: This unit includes HollyFrontier’s 36% interest in Holly Energy Partners L.P. , a publicly-traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment profitability was $43.5 million, up from $28.8 million in third-quarter 2016. Earnings were buoyed by higher segment sales.
Balance Sheet
As of Sep 30, 2017, HollyFrontier had approximately $630.7 million in cash and cash equivalents and $2,236.5 million in net long-term debt, representing a debt-to-capitalization ratio of 29%.
Share Performance
Shares of HollyFrontier have rallied 22.5% year to date, compared to the industry's gain of 7.1%.
Zacks Rank & Other Stocks to Consider
Headquartered in Texas, HollyFrontier carrries a Zacks Rank #2 (Buy).
Par Pacific Holdings, Inc. (PARR - Free Report) is another top-ranked player in the same industry which presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific Holdings, Inc., based in Houston, TX, is a diversified energy player that operates in four segments: Refining and Distribution, Retail, Commodity Marketing and Logistics, and Natural Gas and Oil. The company delivered average positive earnings surprise of 195.26% in the trailing four quarters.
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HollyFrontier Corporation reported third-quarter 2017 net income per share (excluding special items) of $1.14 beating the Zacks Consensus Estimate of 89 cents. Further the income was also significantly ahead of the year-ago period profit of 42 cents. Strong results were driven by refining margins, higher sales volume and contribution from the PCLI unit.
Revenues of $3,719.2 million surpassed the Zacks Consensus Estimate of $3,541 million and climbed 30.6% from third-quarter 2016 sales of $2,847.3 million.
Segmental Information
Refining: Net income from the Refining segment — which is the main contributor to HollyFrontier earnings — was $408.7 million, surging a whopping 238% from the year-ago income of $121 million. The improvement reflects wider gross margins, which jumped 48% to $14.55 per barrel.
Total refined product sales volumes averaged 455,960 barrels per day (bpd), up 4.2% from the 437,700 bpd in the year-ago quarter. Moreover, throughput increased from 473,830 bpd in the year-ago quarter to 485,780 bpd. Capacity utilization, at 99.5%, was up from 97.1% in third-quarter 2016.
PCLI: Income from Petro-Canada Lubricants Inc. (or PCLI) business — bought from Canadian oil and gas giant Suncor Energy Inc. (SU - Free Report) earlier this year — totaled $22.6 million. Product sales averaged 20,600 bpd, while production and throughput came in at 21,670 bpd and 22,360 bpd, respectively.
HEP: This unit includes HollyFrontier’s 36% interest in Holly Energy Partners L.P. , a publicly-traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
Segment profitability was $43.5 million, up from $28.8 million in third-quarter 2016. Earnings were buoyed by higher segment sales.
Balance Sheet
As of Sep 30, 2017, HollyFrontier had approximately $630.7 million in cash and cash equivalents and $2,236.5 million in net long-term debt, representing a debt-to-capitalization ratio of 29%.
Share Performance
Shares of HollyFrontier have rallied 22.5% year to date, compared to the industry's gain of 7.1%.
Zacks Rank & Other Stocks to Consider
Headquartered in Texas, HollyFrontier carrries a Zacks Rank #2 (Buy).
Par Pacific Holdings, Inc. (PARR - Free Report) is another top-ranked player in the same industry which presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific Holdings, Inc., based in Houston, TX, is a diversified energy player that operates in four segments: Refining and Distribution, Retail, Commodity Marketing and Logistics, and Natural Gas and Oil. The company delivered average positive earnings surprise of 195.26% in the trailing four quarters.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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