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HollyFrontier Stock Plunges More than Delek and Phillips 66

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HollyFrontier’s performance

HollyFrontier (HFC) stock has fallen 16.3% since May 3, 2019. Phillips 66 (PSX) and Delek US Holdings (DK) have fallen 7.7% and 11.1%, respectively, in the same period—less than HFC.

HollyFrontier stock has also underperformed the broader market indicator, the SPDR S&P 500 ETF (SPY), which has fallen 5.7% in the same period.

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HollyFrontier’s moving averages

HollyFrontier’s ten-day moving average stood 2.2% below its 30-day moving average on May 3, 2019. However, the steep fall in HollyFrontier stock in the month has affected its ten-day moving average. It’s fallen 14.7% since May 3, increasing the gap between it and the 30-day moving average. HollyFrontier’s ten-day moving average now stands 7.7% below its 30-day moving average.

Why has HollyFrontier stock fallen?

HollyFrontier stock has slumped in the past month likely due to falling equity markets and narrowing oil spreads. However, the decline has been partly offset by HFC’s better refining index values.

Holly Frontier’s refining margin has been affected by narrower oil spreads. The Midland spread and the Canadian differential have declined so far in the quarter. While the Midland spread has fallen 69% YoY (year-over-year) so far to $3.2 per barrel, the Canadian spread has fallen 32% YoY to $12.0 per barrel in the period.

However, Holly Frontier’s refining index values, which are the benchmark indicators for the areas in which the company operates, have risen in the current quarter, indicating better refining cracks for the company. So far, in the second quarter, HFC’s refining index values have risen across its Midcontinent, Rockies, and Southwest operating regions by 16% YoY, 13% YoY, and 9% YoY, respectively.

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