HollyFrontier Corporation (NYSE:HFC) (HFC - $68.43 - NYSE) is a leading independent refining company with operations in Oklahoma, Kansas, Wyoming, Utah, and New Mexico. Refining profit rises and falls with changes in crack spreads (the difference between the prices of products such as gasoline and diesel fuel and the prices of oil) and differentials (the difference between different types of crude, for example Brent and West Texas Intermediate). With crack spreads strong, due to lower inventories, and differentials wide, due to strong oil production in the United States, inland refiners such as HollyFrontier appear well positioned to benefit. This helped the stock in the second quarter.
From Keeley Management's Mid Cap Dividend Value Fund second quarter 2018 shareholder letter.
