Experts Are Watching This Number at Holly Energy Partners

Holly Energy Partners (NYSE: HEP) has increased its distribution every quarter for 50 consecutive quarters. It offers a yield of more than 7.3%. Those are both impressive numbers that should catch the attention of any income-focused investor. That high yield, however, is partly because the market is concerned about Holly's debt load. Only that's not the metric that expert investors are watching.

Long-term debt makes up around 70% of Holly Energy's capital structure. That's a lot of debt when you consider midstream industry heavyweight Enterprise Products Partners' (NYSE: EPD) long-term debt stands at closer to 50% of its capital structure. Now add in the fact that Holly Energy is a tiny $2.2 billion market cap company compared to Enterprise's nearly $60 billion market cap. Small and heavily in debt -- not a great combination.

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Source: Fool.com