4. HollyFrontier Corp. (HFC)
Company profile: HollyFrontier, with a market value of $6 billion, is an independent petroleum refiner that owns and operates five refineries in the U.S. and also has a stake in pipelines and storage terminals.
Dividend Yield: 1.93%
Investor takeaway: Its shares are up 38% this year and have a three-year, average annual return of 48%. Analysts give its shares six "buy" ratings, four "buy/holds," six "holds," and one "weak hold," according to a survey of analysts by S&P.S&P says: "We continue to be positive on its asset location, which we believe gives the company an advantage given the increasing production coming from Canada and the shale plays" from the upper Midwest, as well as its ability to process heavy and sour crude oils into a high percentage of gasoline and diesel." But it expects margins to be pressured this year due to the U.S. crude glut. 3. Valero Energy ( VLO) Company profile: Valero, with a market value of $12 billion, is North America's largest oil refiner and one of the biggest independent U.S. refined petroleum products retailers. It operates refineries that can process various types of crudes, which is a big competitive advantage. Dividend Yield: 2.75% Investor takeaway: Its shares are up 5% this year, have a three-year, average annual return of 9% and a 10-year annualized return of 10%. Analysts give its shares seven "buy" ratings, three "buy/holds," six "holds," one "weak hold," and one "sell," according to a survey of analysts by S&P. S&P has it rated "strong buy" with a $31 price target, which is a 47% premium to its current price. It says "the company is well-positioned to benefit from the increasing oil production from shale plays and the Canadian oil sands." 2. Plains All America Pipeline LP (PAA) Company profile: Plains All America, with a market value of $13 billion, is involved in the transportation, storage, processing, and marketing of crude oil, refined products, natural gas liquids, and liquefied petroleum gas. Dividend Yield: 5.36% Investor takeaway: Its shares are up 9% this year and have a three-year, average annual return of 27%. Analysts give its shares seven "buy" ratings, nine "buy/holds," two "holds," and one "weak hold," according to a survey of analysts by S&P. S&P has it rated "buy" with a $90 price target, which is a 16% premium to its current price. 1. Enterprise Products Partners (EPD) Company profile: Enterprise, with a market value of $43 billion, is a Houston-based master limited partnership that transports and processes energy commodities, primarily natural gas, natural gas liquids and refined products. Dividend Yield: 5.1% Investor takeaway: Its shares are up 7% this year and have a three-year, average annual return of 29% and over 10 years the annual return has been 12%. Analysts give its shares 13 "buy" ratings, seven "buy/holds," and two "holds," according to a survey of analysts by S&P. S&P has it rated "strong buy," with a $59 price target, which is a 23% premium to the current price. Morningstar analysts say: "Only a handful of master limited partnerships have the asset base, liquidity position, and ability to undertake transformative projects that can generate strong cash-flow growth despite turbulent markets. Enterprise Products Partners ranks among them."
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