HollyFrontier Forced to Reduce Woods Cross Refinery's Output

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HollyFrontier Corporation HFC recently reported that its Woods Cross refinery is continuing operations at reduced rates. The refinery is run by a subsidiary of HollyFrontier and located in West Bountiful, north of Salt Lake City, UT. On Mar 12, 2018, a crude unit of the facility caught fire, which forced the reduced rates. No injuries were reported following the fire.

The incident hit the facility's crude receiving pipeline that is run by Plains All American Pipeline, L.P. PAA . It reduced the facility's production rate to 30,000-31,000 barrels per day (BPD) from its original capacity of 45,000 BPD. The refined products from the facility are sold primarily in Idaho, Nevada, Utah, Wyoming, and eastern Washington. The Woods Cross refinery is one of the five refineries the company owns.

The company is assessing the scenario to determine the necessary steps to be taken to revive the facility. Per the company, available information from the refinery so far is not enough to affect its first-quarter guidance.

About HollyFrontier

Dallas, TX-based HollyFrontier is an independent refiner and marketer 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 into three reportable segments: Refining, Petro-Canada Lubricants Inc. and Holly Energy Partners.

Price Performance

HollyFrontier has gained 82.8% in the last year compared with 22.9% growth of its industry .

Zacks Rank and Stocks to Consider

HollyFrontier has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the oil and energy sector are Pioneer Natural Resources Company PXD and Continental Resources, Inc. CLR , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Irving, TX-based Pioneer Natural is an independent oil and gas exploration and production company. Its revenues for first-quarter 2018 are anticipated to improve 23.7% from the prior-year quarter. The company witnessed an average positive earnings surprise of 66.9% in the trailing four quarters.

Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are estimated to soar 54.9% from the year-ago quarter's figure. For 2018, the bottom line is likely to be up 364.7%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: PAA , HFC , PXD , CLR

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