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HollyFrontier (HFC) Incurs Narrower-Than-Expected Loss in Q3
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U.S. refiner HollyFrontier Corporation reported third-quarter 2020 net loss per share (excluding special items) of 41 cents, narrower than the Zacks Consensus Estimate of a loss of 54 cents. The outperformance reflects stronger-than-expected refining throughput and robust results from the Lubricants and Specialty Products division.
However, the bottom line compared unfavorably with the year-ago adjusted profit of $1.68. The underperformance mainly stemmed weak refining margins.
Revenues of $2.8 billion beat the Zacks Consensus Estimate of $2.4 billion but slumped 36.3% from the third-quarter 2019 sales of $4.4 billion.
HollyFrontier Corporation Price, Consensus and EPS Surprise
Refining: Adjusted loss from the Refining segment, which is the main contributor to HollyFrontier’s earnings, was $53.6 million. This reflected a massive plunge from the year-ago quarter’s income of $424.6 million, primarily due to sharply narrower gross margins, which was down 71% to $4.93 per barrel as steps to limit the spread of coronavirus significantly disrupted product demand. Moreover, margins came below the Zacks Consensus Estimate of $6.63 per barrel.
Total refined product sales volumes averaged 407,280 barrels per day (bpd), down 16.1% from 485,500 bpd in the year-ago quarter. Moreover, throughput decreased from 506,800 bpd in the year-ago quarter to 421,100 bpd but outpaced the Zacks Consensus Estimate of 395,000 bpd. Meanwhile, capacity utilization was 85.5%, down from 104.2% in third-quarter 2019.
Lubricants and Specialty Products: The segment EBITDA totaled $60.6 million, 59.5% higher than $38 million reported in the year-ago quarter on rebounding consumption of finished lubricants and base oils. Product sales averaged 33,560 bpd, decreasing from the prior-year level of 36,160 bpd. Further, throughput fell 18% year over year to 19,020 bpd in the reported quarter.
HEP: This unit includes HollyFrontier’s majority 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 EBITDA was $55.3 million, down from $123.1 million in third-quarter 2019. Earnings were dragged down by a goodwill impairment charge.
Balance Sheet
As of Sep 30, HollyFrontier had approximately $1.5 billion in cash and cash equivalents, and $3.2 billion in long-term debt, representing a debt-to-capitalization of 35.1%.
During the quarter, the company paid $57.2 million in dividends.
Zacks Rank & Stock Picks
HollyFrontier holds a Zacks Rank #4 (Sell).
Some better-ranked players in the energy space are Antero Midstream Corporation (AM - Free Report) and CrossAmerica Partners LP (CAPL - Free Report) that sport a Zacks Rank #2 (Buy).
Antero Midstream has an excellent earnings surprise history, having surpassed estimates in each of the last four quarters by 21.47%, on average
The 2020 Zacks Consensus Estimate for CrossAmerica Partners indicates 376.5% earnings per unit growth over 2019.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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HollyFrontier (HFC) Incurs Narrower-Than-Expected Loss in Q3
U.S. refiner HollyFrontier Corporation reported third-quarter 2020 net loss per share (excluding special items) of 41 cents, narrower than the Zacks Consensus Estimate of a loss of 54 cents. The outperformance reflects stronger-than-expected refining throughput and robust results from the Lubricants and Specialty Products division.
However, the bottom line compared unfavorably with the year-ago adjusted profit of $1.68. The underperformance mainly stemmed weak refining margins.
Revenues of $2.8 billion beat the Zacks Consensus Estimate of $2.4 billion but slumped 36.3% from the third-quarter 2019 sales of $4.4 billion.
HollyFrontier Corporation Price, Consensus and EPS Surprise
HollyFrontier Corporation price-consensus-eps-surprise-chart | HollyFrontier Corporation Quote
Segmental Information
Refining: Adjusted loss from the Refining segment, which is the main contributor to HollyFrontier’s earnings, was $53.6 million. This reflected a massive plunge from the year-ago quarter’s income of $424.6 million, primarily due to sharply narrower gross margins, which was down 71% to $4.93 per barrel as steps to limit the spread of coronavirus significantly disrupted product demand. Moreover, margins came below the Zacks Consensus Estimate of $6.63 per barrel.
Total refined product sales volumes averaged 407,280 barrels per day (bpd), down 16.1% from 485,500 bpd in the year-ago quarter. Moreover, throughput decreased from 506,800 bpd in the year-ago quarter to 421,100 bpd but outpaced the Zacks Consensus Estimate of 395,000 bpd. Meanwhile, capacity utilization was 85.5%, down from 104.2% in third-quarter 2019.
Lubricants and Specialty Products: The segment EBITDA totaled $60.6 million, 59.5% higher than $38 million reported in the year-ago quarter on rebounding consumption of finished lubricants and base oils. Product sales averaged 33,560 bpd, decreasing from the prior-year level of 36,160 bpd. Further, throughput fell 18% year over year to 19,020 bpd in the reported quarter.
HEP: This unit includes HollyFrontier’s majority 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 EBITDA was $55.3 million, down from $123.1 million in third-quarter 2019. Earnings were dragged down by a goodwill impairment charge.
Balance Sheet
As of Sep 30, HollyFrontier had approximately $1.5 billion in cash and cash equivalents, and $3.2 billion in long-term debt, representing a debt-to-capitalization of 35.1%.
During the quarter, the company paid $57.2 million in dividends.
Zacks Rank & Stock Picks
HollyFrontier holds a Zacks Rank #4 (Sell).
Some better-ranked players in the energy space are Antero Midstream Corporation (AM - Free Report) and CrossAmerica Partners LP (CAPL - Free Report) that sport a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Midstream has an excellent earnings surprise history, having surpassed estimates in each of the last four quarters by 21.47%, on average
The 2020 Zacks Consensus Estimate for CrossAmerica Partners indicates 376.5% earnings per unit growth over 2019.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>