HollyFrontier Corporation ( HFC Quick Quote HFC - Free Report) recently announced that it willincrease its capital expenditure next year by almost twice the previous budget. It also aims to expand its renewables investment as it presumes commodity prices and demand to improve from the pandemic lows. For 2021, this Dallas, TX-based refining player’s total capex is envisioned in the range of $1.05-$1.15 billion, higher than 2020's guided range of $475-$550 million. By taking into account its unit Holly Energy Partners L.P. ( HEP Quick Quote HEP - Free Report) wherein it holds 59% interest (including the general partner interest), HollyFrontier plans to spend $1.09-$1.21 billion next year. Further, the company estimates to disburse in the range of $500-530 million for its renewables business in 2021, higher than $130-$145 million projected for 2020. Earlier in 2020, HollyFrontier converted its crude oil refinery with production capacity of 52,000 barrels per day in Cheyenne, WY, into a renewable diesel facility to benefit from growing demand for alternative fuel. As the coronavirus pandemic dwindled demand for traditional fuels like gasoline and diesel, the energy industry is shifting its dynamics amid the current market volatility. This is evident from the present transition pattern witnessed across the western United States. Conversion of several crude oil refineries into renewable fuel plants is in the cards. This might add an impetus to the companies that are presently struggling in the coronavirus-affected market. Apart from HollyFrontier, management at Houston, TX-based Phillips 66 ( PSX Quick Quote PSX - Free Report) stated that it intends to convert a refinery in California into a biofuel facility. The Rodeo Renewed project of Phillips 66 is expected to become one of the world’s largest biodiesel facilities that will utilize used cooking oil, fats, soybean oils and greases as inputs. Brief on HollyFrontier HollyFrontier is one of the largest independent refiners and marketers of petroleum products in the United States. The company reached its current form following the 2011 merger between Holly Corp. and Frontier Oil. HollyFrontier's operations are organized under three reportable segments: Refining (accounts for the major portion of its earnings), Lubricants and Specialty Products, and Holly Energy Partners. Zacks Rank & Key Pick HollyFrontier currently carries a Zacks Rank #4 (Sell). A better-ranked player in the space is energy CNOOC Limited ( CEO Quick Quote CEO - Free Report) , presently holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . 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. You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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