Holly Energy Partners LP
) and its parent company, oil refiner and marketer
) will jointly build a rail facility near HollyFrontier's
Lovington, N.M. refining facility. The to-be-constructed rail
facility will aid in the loading and unloading of crude oil.
HOLLY EGY PTNRS (HEP): Free Stock Analysis
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This rail project will have an initial capacity of up to 70,000
barrels per day and be linked to Holly Energy's crude oil
pipeline transportation system in southeastern N.M. The project
is anticipated to complete by early 2014.
The rail facility will also allow access to a variety of crude
oil types including West Texas Intermediate, West Texas Sour and
Western Canadian Select. Additionally, the project will provide
extra crude oil takeaway options for producers as well as an
extended set of crude oil sourcing options for HollyFrontier.
Holly Energy Partners is a master limited partnership (MLP) that
operates petroleum product and crude oil pipelines, storage
tanks, distribution terminals and loading rack facilities.
HollyFrontier Corporation which was formerly known as Holly
Corporation is engaged in refining petroleum. The company is
involved in the production and marketing of gasoline, diesel, jet
fuel, asphalt, heavy products and specialty lubricant products.
Dallas, Texas-based HollyFrontier and Holly Energy currently
retain a Zacks Rank #3 (Hold), implying that both are expected to
perform in line with the broader U.S. equity market over the next
one to three months.
Meanwhile, there are other oil refining and marketing firms in
the energy sector that are performing better and are worth
considering at the current level. These include
Marathon Petroleum Corporation
Lehigh Gas Partners LP
). Both these stocks sport a Zacks Rank #2 (Buy).