01—Abstract
Summary
Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.
HF Sinclair Corporation (NYSE: DINO) furnished an investor presentation dated February 2024 under Item 7.01 (Regulation FD Disclosure) of this Form 8-K, filed February 29, 2024.
The filing itself is a short notice; the presentation, attached as Exhibit 99.1, is furnished for meetings with current and potential investors and is not deemed filed for Section 18 purposes. The presentation describes a refiner with 678,000 BPD of refining capacity across seven refineries in the Mid-Continent, West and Pacific Northwest regions. It also covers the Marketing segment with over 1,500 branded wholesale sites, a Lubricants & Specialties business with 34,000 BPD of production capacity, a Renewables business with approximately 380 million gallons of annual renewable diesel capacity, and a Midstream segment operating approximately 4,400 miles of pipelines.
It notes that on December 1, 2023 HF Sinclair completed its acquisition of the Holly Energy Partners units it did not already own, in exchange for HF Sinclair common stock and cash. On capital returns, the presentation targets a 50% payout ratio (dividends plus repurchases) of Adjusted Net Income, states a $0.50a regular quarterly dividend (raised from $0.45 in Q1 2024), and reports over $1.3 billion returned through dividends and repurchases in 2023. It shows $1,354 million of cash and cash equivalents, total long-term debt of $2,756 million, and 2024 total capital guidance of $875.0 million as of December 31, 2023.
02—Key points
Key Highlights
- Refining capacity of 678,000 BPD across seven refineries in the Mid-Continent, West and Pacific Northwest regions
- Quarterly dividend of $0.50, increased from $0.45 in Q1 2024; target payout ratio of 50% of Adjusted Net Income
- Returned over $1.3 billion through dividends and share repurchases in 2023; approximately $591 million remaining under the $1.0 billion repurchase program as of February 15, 2024
- Consolidated Debt / Capitalization of 21% and Net Debt / Capitalization of 11% as of 12/31/2023; total liquidity of $3,748 million
- Renewables segment with approximately 380 million gallons of annual renewable diesel capacity across three facilities
- Marketing segment with over 1,500 branded wholesale sites and over 2 billion gallons per year of branded fuel sales
- 2024 total capital guidance of $875.0 million, with $415.0 million for turnarounds and catalysts
03—Questions
Frequently Asked Questions
What did HF Sinclair file on February 29, 2024?
The company furnished an investor presentation under Item 7.01 (Regulation FD Disclosure) as Exhibit 99.1, for use in meetings with current and potential investors. The information is furnished and not deemed filed under Section 18 of the Exchange Act.
How much is HF Sinclair returning to shareholders?
The presentation states a $0.50 regular quarterly dividend, increased from $0.45 in Q1 2024, and a target payout ratio of 50% of Adjusted Net Income. It reports over $1.3 billion returned through dividends and share repurchases in 2023, with approximately $591 million remaining under the $1.0 billion repurchase program authorized August 15, 2023.
What is HF Sinclair's balance sheet position?
As of 12/31/2023, the company reported cash and cash equivalents of $1,354 million, total long-term debt of $2,756 million, stockholders' equity including noncontrolling interest of $10,231 million, consolidated debt to capitalization of 21%, and total liquidity of $3,748 million. Its credit ratings are S&P BBB-, Moody's Baa3 and Fitch BBB-.
What did the December 1, 2023 Holly Energy Partners transaction involve?
HF Sinclair acquired all outstanding common units of Holly Energy Partners, L.P. that it did not already own, paying a combination of HF Sinclair common stock and cash. The presentation lists this as a completed transaction that expanded its midstream operations.
What are the company's key growth initiatives?
The presentation highlights expansion of its Renewables segment to become a meaningful part of cash flow, with three renewable diesel units totaling roughly 380 million gallons of annual capacity. It also cites growth in Lubricants & Specialties through converting base oils into finished products, and brand growth in Marketing. Its 2024 capital guidance includes $75.0 million of growth capital.
04—Continue