Holly Energy Partners, L.P. (NYSE: HEP) bounced up about 40% to $11.34 from its low of $6.60. HEP is very appealing for many investors that are looking for income because of the recent climb, and it pays over a 20% dividend.
Reportedly, many oil and gas Master Limited Partnerships (MLP), including Holly Energy Partners L.P., are down. HEP stock prices of this company have fallen more than 50% in the last year. This is a setback for those who invested in such MLPs after these instruments recorded a strong performance in 2017.
MLP is a publicly-traded limited partnership that offers dual benefits – tax benefits of a limited partnership and the liquidity of publicly-traded security. MLPs must receive 90% of their cash flow from qualifying sources that include real estate and commodities.
What is Holly Energy Partners (HEP)?
Holly Energy Partners owns and operates crude oil pipelines and pipelines, storage tanks, distribution terminals, cargo rack facilities, and refinery processing units that support the refining and marketing operations of HollyFrontier Corporation in West Texas, New Mexico, Utah, Nevada, Oklahoma, Wyoming, Kansas, Arizona, Idaho, and Washington.
HEP operates through two segments, pipelines and terminals, and refinery processing units. The company operates refined product pipelines that transport conventional gasoline, reformulated gasoline, and low-octane gasoline to mix oxygenates, as well as distillates, such as diesel and high and low sulfur fuels, and liquefied petroleum gases; intermediate product pipelines carrying intermediate raw materials and crude oils; and pipelines, collection and connecting pipelines that deliver crude oil.
The company operates 26 main pipelines; crude oil collection networks; 10 terminals of refined products; 1 crude terminal; 31,800 feet of rail storage track; 7 locations with racks for trucks and/or railways; and tanks at six refining facility locations, as well as five refinery processing units. HEP Logistics Holdings, L.P. serves as the company’s general partner. Holly Energy Partners, L.P. was founded in 2004 and is based in Dallas, Texas.
Is HEP Stock A Buy?
We are getting many requests from readers asking if HEP stock is a buy. The short answer is NO, and HEP stock is not a buy. HEP shares are down and likely to go down further because of the oil price war. Also, the company has a massive amount of debt. Investors would be better off looking at consumer staple stocks that pay a dividend.
HEP Stock Lawsuits and Investigations
Securities attorneys at Haselkorn & Thibaut are investigating allegations of securities frauds against broker-dealers who allegedly recommended these complex and risky security instruments without revealing all the necessary information to investors.
Investors who have suffered losses by investing in Holly Energy Partners L.P. may be able to recoup the amounts through FINRA arbitration against broker-dealers that were involved in getting their clients to invest there.
Holly Energy Partners operates petroleum pipelines and distribution channels in New Mexico and Utah. It is also involved in crude gathering and refinery tankage.
FINRA arbitration claims can be filed against brokers that neglect or fail to exercise essential due diligence before making recommendations that might turn out to be unsuitable for investors who end up with losses.
As mentioned above, Haskorn and Thibaut is in the process of investigating likely securities frauds that broker-dealers may have perpetrated by recommending MLPs to investors who were not a good fit for these. During its investigations, the firm has unearthed a trend of brokers pushing MLPs on clients without adequately educating the investors about the risks involved.
Haselkorn & Thibaut is providing free consultation to anyone who has faced a financial loss resulting from investing in Holly Energy Partners L.P. or any other MLP. They can be reached by calling at 1 888-628-5590.
Tom, aka T Rex, is seasoned financial pro that cut his teeth on the Chicago trading oil futures in 1995. He has bachelor’s degree in finance and management. In less than 3 years he bought his own seat and set up shop on the exchange. For the next 10 years Rex traded his own account and some institutional accounts. In 2017, he decided to move to Florida and focus on educating traders and writing for financial websites.