How Does Holly Energy Partners' High-Yield Partnership Hold Up to Enterprise Products Partners?
Holly Energy Partners, L.P. (NYSE: HEP) has a roughly 7.3% distribution yield. That's higher than that of many of its peers, including industry giant Enterprise Products Partners L.P. (NYSE: EPD), which has a 6.4% yield. However, these two midstream oil and gas partnerships operate on a vastly different scale, which has notable implications for the future. But they both have similarly impressive distribution histories. Here's what you need to know if you're on the hunt for a high-yield partnership.
Holly Energy Partners has a market cap of around $2.2 billion. That's a tiny fraction of Enterprise's $56 billion market cap. This is a big deal in a couple of ways. For example, Enterprise is way more diversified than Holly Energy. It's also capable of taking on growth projects and acquisitions that Holly could never consider. In fact, for conservative investors, Enterprise is one of the best income options in the midstream partnership space.
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Source: Fool.com