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HF Sinclair 8-K Report, Financial Results (Feb 21, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 21, 2024
Period End
February 21, 2024
Security
DINO
In the record · 2022–202610-K410-Q158-K125

DINO filed 4 annual reports (10-K), 15 quarterly reports (10-Q) and 125 current reports (8-K) between 2022 and 2026.

  1. Leadership change8-K · Mar ’22Mar ’22
  2. Leadership change8-K · Feb ’23Feb ’23
  3. Material agreement8-K · Jan ’25Jan ’25
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 21, 2024. Cited figures are marked; the original filing is the authoritative source.

HF Sinclair Corporation (NYSE: DINO) reported a fourth-quarter 2023 net loss attributable to HF Sinclair stockholders of $(62.2) million, or $(0.34) per diluted share, compared with net income of $587.0 milliona, or $2.92 per diluted share, in the fourth quarter of 2022.

Excluding non-GAAP adjustments, adjusted net income for the quarter was $164.6 millionb, or $0.87 per diluted share, versus $597.8 million, or $2.97 per diluted share, a year earlier. Sales and other revenues fell 15% to $7.66 billion, and the Refining segment posted a loss before interest and income taxes of $(74.6) million as refinery gross margin declined to $13.88 per produced barrel from $23.47. The filing states that the company's Board declared a quarterly dividend of $0.50 per share, up $0.05 from the prior $0.45.

For the full year 2023, HF Sinclair reported net income attributable to stockholders of $1.59 billionc, or $8.29 per diluted share, and adjusted net income of $1.82 billion, or $9.51 per diluted share, compared with $2.92 billion ($14.28 per diluted share) in 2022. Full-year sales and other revenues were $31.96 billion, down 16%. The company stated it returned $1.34 billion to stockholders through dividends and share repurchases during 2023, completed turnarounds at all of its refineries on schedule and on budget, and closed the transaction to buy in its HEP business in the fourth quarter.

At December 31, 2023, cash and cash equivalents totaled $1.35 billiond, down $861.0 million from September 30, 2023, and total debt was $2.74 billion, down from $3.26 billion a year earlier. Fourth-quarter net cash provided by operations was $230.7 million. The Renewables segment's adjusted EBITDA was $(2.7) million in the quarter, and the Midstream segment's adjusted EBITDA rose to $109.5 million from $87.3 million.

02—Key points

Key Highlights

  1. Q4 2023 net loss attributable to HF Sinclair stockholders of $(62.2) million, or $(0.34) per diluted share, versus net income of $587.0 million, or $2.92 per diluted share, in Q4 2022
  2. Q4 2023 adjusted net income of $164.6 million, or $0.87 per diluted share, versus $597.8 million, or $2.97 per diluted share, in Q4 2022
  3. Full-year 2023 net income attributable to stockholders of $1,589.7 million, or $8.29 per diluted share, and adjusted net income of $1,822.9 million, or $9.51 per diluted share
  4. Q4 2023 Refining segment loss before interest and income taxes of $(74.6) million; consolidated refinery gross margin of $13.88 per produced barrel versus $23.47 in Q4 2022
  5. Quarterly regular dividend increased by $0.05 to $0.50 per share, payable March 5, 2024
  6. Returned $1,340.0 million to stockholders through dividends and share repurchases in 2023; cash and cash equivalents of $1,353.7 million at December 31, 2023
  7. Total debt declined to $2,739.1 million at December 31, 2023 from $3,255.5 million at December 31, 2022

03—Questions

Frequently Asked Questions

  1. Why did HF Sinclair report a net loss in the fourth quarter of 2023?

    The filing attributes the weaker results primarily to lower refinery gross margins in both the West and Mid-Continent regions, which reduced Refining segment earnings. Consolidated refinery gross margin was $13.88 per produced barrel, down from $23.47 a year earlier, and the company recorded a $274.5 million lower of cost or market inventory valuation adjustment in the quarter.

  2. How did the full-year 2023 results compare with 2022?

    Net income attributable to HF Sinclair stockholders was $1,589.7 million, or $8.29 per diluted share, compared with $2,922.7 million, or $14.28 per diluted share, in 2022. Sales and other revenues decreased 16% to $31.96 billion, and income from operations fell 46% to $2.20 billion.

  3. What is the company's dividend policy after this announcement?

    The Board declared a regular quarterly dividend of $0.50 per share, an increase of $0.05 over the prior $0.45 per share. The dividend is payable March 5, 2024 to holders of record on February 26, 2024. Cash dividends declared per common share for full-year 2023 were $1.80, compared with $1.20 in 2022.

  4. How did the company's liquidity and debt change?

    Cash and cash equivalents were $1,353.7 million at December 31, 2023, a decrease of $861.0 million from September 30, 2023. Total debt was $2,739.1 million, down from $3,255.5 million at December 31, 2022. Fourth-quarter net cash provided by operations was $230.7 million.

  5. How did the segments perform in the fourth quarter?

    Refining posted a loss before interest and income taxes of $(74.6) million, and Renewables posted a loss of $(75.9) million. Marketing income was $2.5 million, Lubricants & Specialties income was $34.6 million, and Midstream income was $81.6 million. Midstream adjusted EBITDA rose to $109.5 million from $87.3 million a year earlier.

04—Continue

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