HF Sinclair Tops Q2 Earnings Estimate; Declares Cash Dividend

HF Sinclair Corp DINO reported Q2 2023 revenues of $7.83 billion, beating the consensus of $7.38 billion.

Adjusted EPS of $2.60 beat the consensus of $2.27.

Adjusted EBITDA fell 53% Y/Y to $868.2 million in the quarter.

Refining segment adjusted EBITDA stood at $729.5 million from $1.66 billion a year ago due to lower refining margins in the West and Mid-Continent regions and decreased refined product sales volumes.

Renewables segment adjusted EBITDA loss stood at $(11.3) million vs. $(28.3) million the prior year.

Marketing segment EBITDA was $24.6 million compared to $23.9 million a year ago. 

Lubricants and Specialty Products segment EBITDA stood at $71.7 million vs. $155.7 million a year ago, on lower FIFO benefit from the consumption of lower priced feedstock inventory. 

Holly Energy Partners adjusted EBITDA of $102.2 million, which came lower than $104.2 million a year ago. 

Operating cash flow stood at $490.0 million in the quarter. As of June 30, 2023, cash and equivalents stood at $1.61 billion. 

The company paid dividends of $87.3 million in the quarter. DINO declared a dividend of $0.45 per share, payable on September 6, 2023, to shareholders of record as on August 17, 2023.

Subsequent to quarter-end, the company repurchased shares from REH company of around $411.0 million.

"HF Sinclair's strong second quarter results were driven by healthy product margins in our refining segment, coupled with solid performances from our lubricants, marketing and midstream businesses. With the majority of the planned turnaround work behind us, we believe our diversified portfolio is well positioned to capture the margins available to us for the remainder of the year. We remain focused on the reliability and integration of our asset base to further strengthen the earnings profile and free cash flow generation of HF Sinclair," said Tim Go, CEO.

Price Action: DINO shares are trading higher by 3.2% at $53.27 on the last check Thursday.

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