How did HF Sinclair perform in the first quarter of 2024 compared with the first quarter of 2023?

Net income attributable to HF Sinclair stockholders was $314.7 million, or $1.57 per diluted share, versus $353.3 million, or $1.79 per diluted share, a year earlier. Adjusted net income was $142.3 million, or $0.71 per diluted share, versus $394.1 million, or $2.00. Sales and other revenues declined to $7.03 billion from $7.57 billion.

What drove the decline in refining profitability?

The filing attributes the decrease principally to lower refinery gross margins in the West and Mid-Continent regions due to seasonal demand weakness for transportation fuels, partially offset by higher refined product sales volumes. Consolidated refinery gross margin was $12.70 per produced barrel versus $23.20 in the prior-year quarter.

What shareholder return actions did the company announce?

The Board declared a regular quarterly dividend of $0.50 per share, payable June 5, 2024 to holders of record on May 22, 2024. On May 7, 2024, the Board authorized a new $1 billion share repurchase program, effective that date, which replaces all existing repurchase authorizations and may be discontinued at any time.

Are repurchases from REH Company included in the new program?

Yes. The filing states that privately negotiated repurchases from REH Company (formerly The Sinclair Companies) are authorized under the New Share Repurchase Program, subject to REH Company's interest and other limitations. The timing and amount of repurchases will depend on market conditions and corporate, tax, regulatory and other considerations.

How did the company's cash position and debt change during the quarter?

Cash and cash equivalents were $1,240.9 million at March 31, 2024, a decrease of $112.9 million from $1,353.7 million at December 31, 2023. Total debt was $2,678.6 million at March 31, 2024, down from $2,739.1 million at year-end 2023. Net cash provided by operations was $316.9 million for the quarter.

DINO 8-K: Earnings & Results

01—Abstract

Summary

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

HF Sinclair Corporation (NYSE: DINO) reported first quarter 2024 results on May 8, 2024, with net income attributable to HF Sinclair stockholders of $314.7 million^a, or $1.57 per diluted share, compared to $353.3 million, or $1.79 per diluted share, in the first quarter of 2023.

Adjusted net income attributable to stockholders was $142.3 million^b, or $0.71 per diluted share, versus $394.1 million, or $2.00 per diluted share, a year earlier. Reported EBITDA was $617.4 million and Adjusted EBITDA was $399.1 million, compared to $704.8 million in the prior-year quarter. Total sales and other revenues fell to $7.03 billion from $7.57 billion, and income from operations declined to $410.8 million from $504.2 million.

Consolidated refinery gross margin was $12.70^c per produced barrel, versus $23.20 a year earlier, principally reflecting seasonal demand weakness, though crude charge rose to 604,930 barrels per day from 498,500 barrels per day on reduced turnaround activity and improved reliability. The Board declared a regular quarterly dividend of $0.50 per share, payable June 5, 2024 to holders of record on May 22, 2024, and on May 7, 2024 authorized a new $1 billion share repurchase program that replaces all existing authorizations. The filing states that approximately $214.2 million remained under the prior $1 billion program authorized in August 2023.

The new program may be used for open-market or privately negotiated repurchases, including from REH Company (formerly The Sinclair Companies), subject to REH Company's interest and other limitations. The company returned $269.0 million^d to stockholders through dividends and share repurchases in the quarter and ended the period with cash and cash equivalents of $1.24 billion and total debt of $2.68 billion. Segment results were mixed.

Refining income before interest and income taxes was $312.0 million versus $436.9 million, with Adjusted EBITDA of $208.8 million after excluding a $220.6 million lower of cost or market inventory valuation benefit. Renewables posted a loss before interest and income taxes of $(40.0) million, while Midstream income rose to $93.1 million from $73.9 million on higher tariff-driven revenues. Marketing income improved to $9.4 million from $0.5 million, and Lubricants & Specialties income declined to $64.5 million from $78.2 million.

02—Key points

Key Highlights

Net income attributable to HF Sinclair stockholders was $314.7 million, or $1.57 per diluted share, versus $1.79 per diluted share in Q1 2023; adjusted net income was $142.3 million, or $0.71 per diluted share, versus $2.00.
Adjusted EBITDA was $399.1 million versus $704.8 million in the prior-year quarter, while reported EBITDA was $617.4 million versus $652.8 million.
Consolidated refinery gross margin fell to $12.70 per produced barrel from $23.20, though crude charge increased to 604,930 barrels per day from 498,500.
Board declared a regular quarterly dividend of $0.50 per share, payable June 5, 2024 to holders of record on May 22, 2024.
A new $1 billion share repurchase program replaces all existing authorizations, compared with approximately $214.2 million remaining under the prior August 2023 program.
The company returned $269.0 million to stockholders in the quarter through dividends and share repurchases, and ended the period with $1.24 billion in cash and $2.68 billion of total debt.
Midstream income rose to $93.1 million from $73.9 million on higher tariff revenues, while Renewables posted a loss of $(40.0) million before interest and income taxes.

03—Questions

Frequently Asked Questions

How did HF Sinclair perform in the first quarter of 2024 compared with the first quarter of 2023?
Net income attributable to HF Sinclair stockholders was $314.7 million, or $1.57 per diluted share, versus $353.3 million, or $1.79 per diluted share, a year earlier. Adjusted net income was $142.3 million, or $0.71 per diluted share, versus $394.1 million, or $2.00. Sales and other revenues declined to $7.03 billion from $7.57 billion.
What drove the decline in refining profitability?
The filing attributes the decrease principally to lower refinery gross margins in the West and Mid-Continent regions due to seasonal demand weakness for transportation fuels, partially offset by higher refined product sales volumes. Consolidated refinery gross margin was $12.70 per produced barrel versus $23.20 in the prior-year quarter.
What shareholder return actions did the company announce?
The Board declared a regular quarterly dividend of $0.50 per share, payable June 5, 2024 to holders of record on May 22, 2024. On May 7, 2024, the Board authorized a new $1 billion share repurchase program, effective that date, which replaces all existing repurchase authorizations and may be discontinued at any time.
Are repurchases from REH Company included in the new program?
Yes. The filing states that privately negotiated repurchases from REH Company (formerly The Sinclair Companies) are authorized under the New Share Repurchase Program, subject to REH Company's interest and other limitations. The timing and amount of repurchases will depend on market conditions and corporate, tax, regulatory and other considerations.
How did the company's cash position and debt change during the quarter?
Cash and cash equivalents were $1,240.9 million at March 31, 2024, a decrease of $112.9 million from $1,353.7 million at December 31, 2023. Total debt was $2,678.6 million at March 31, 2024, down from $2,739.1 million at year-end 2023. Net cash provided by operations was $316.9 million for the quarter.

04—Continue

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