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HF Sinclair 8-K Report, Regulation FD Disclosure (Jun 24, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed June 24, 2024
Period End
June 24, 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 · Feb ’23Feb ’23
  2. Leadership change8-K · Feb ’24Feb ’24
  3. Material agreement8-K · Jan ’25Jan ’25
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed June 24, 2024. Cited figures are marked; the original filing is the authoritative source.

HF Sinclair Corporation (NYSE: DINO) furnished an investor presentation dated June 2024 under Item 7.01 (Regulation FD Disclosure) in this Form 8-K filed June 24, 2024.

The presentation is furnished as Exhibit 99.1 for meetings with current and potential investors and is not deemed filed for Section 18 purposes. It describes the company's four segments: Refining (7 refineries with 678,000 BPD of capacity), Marketing (over 1,500 branded retail sites), Renewables (about 380 million gallons per year of renewable diesel capacity across three facilities), and Lubricants & Specialties (34,000 BPD of production capacity), supported by a Midstream business of approximately 4,400 miles of pipelines. The presentation highlights a financial strategy of returning cash to shareholders.

The company pays a $0.50a regular quarterly dividend, increased from $0.45 in Q1 2024, and authorized a new $1 billion share repurchase program on May 7, 2024, with approximately $925 million remaining as of May 16, 2024. It states about $732 million was returned through dividends and buybacks in 2024 as of June 5, 2024, versus over $1.3 billion in 2023. The target is a 50% payout ratio of dividends plus repurchases to Adjusted Net Income.

Balance sheet figures as of March 31, 2024 show total long-term debt of $2,694 millionb, cash and cash equivalents of $1,241 million, consolidated debt to capitalization of 21%, net debt to capitalization of 11%, and total liquidity of $3,697 million. The presentation also gives 2024 total capital expenditure guidance of $875 million, of which $800 million is sustaining and $75 million is growth. Credit ratings are cited as BBB- (S&P), Baa3 (Moody's) and BBB- (Fitch).

02—Key points

Key Highlights

  1. Quarterly dividend of $0.50 per share, up from $0.45 earlier in 2024; new $1.0 billion share repurchase program authorized May 7, 2024, with about $925 million remaining as of May 16, 2024.
  2. Approximately $732 million returned to shareholders through dividends and buybacks in 2024 as of June 5, 2024, compared with over $1.3 billion in 2023.
  3. Illustrative Mid-Cycle Refining EBITDA of approximately $1.6 billion, based on management's current expectations, with a 70% capture rate and a $21.50 HF Sinclair Index assumption.
  4. Balance sheet as of March 31, 2024: $1,241 million cash, $2,694 million total long-term debt, $3,697 million consolidated total liquidity, and 21% consolidated debt to capitalization.
  5. 2024 capital expenditure guidance of $875 million, including $800 million sustaining and $75 million growth, with turnarounds and catalysts the largest allocation at $415 million.
  6. Renewables expansion to about 380 million gallons per year of renewable diesel capacity across Sinclair, Cheyenne and Artesia facilities, with a stated goal of making renewables a meaningful part of cash flow.
  7. Stated 2030 goal to reduce Scope 1 and Scope 2 net GHG emissions intensity by 25% versus 2020 levels, with renewable diesel cited as having 50% to 80% lower lifecycle GHG emissions than conventional diesel.

03—Questions

Frequently Asked Questions

  1. What is HF Sinclair's capital return policy?

    The company targets a 50% payout ratio of dividends plus share repurchases to Adjusted Net Income. It pays a $0.50 regular quarterly dividend and has a new $1.0 billion repurchase program authorized May 7, 2024, with about $925 million remaining as of May 16, 2024. The presentation notes these plans are based on management's current estimates and subject to market conditions and other considerations.

  2. How much capital has HF Sinclair returned to shareholders recently?

    The presentation states approximately $732 million was returned through dividends and share repurchases in 2024 as of June 5, 2024. It also states over $1.3 billion was returned through dividends and share repurchases in 2023.

  3. What is the company's balance sheet position?

    As of March 31, 2024, the company reported $1,241 million in cash and cash equivalents and $2,694 million in total long-term debt. Consolidated debt to capitalization was 21%, net debt to capitalization was 11%, and consolidated total liquidity was $3,697 million. Credit ratings were cited as BBB- (S&P), Baa3 (Moody's) and BBB- (Fitch).

  4. What does HF Sinclair's refining footprint look like?

    The company operates seven refineries in the Mid-Continent, West and Pacific Northwest regions with 678,000 BPD of total refining capacity. The largest are El Dorado, Kansas (135,000 BPD) and Tulsa, Oklahoma (125,000 BPD), with Puget Sound (149,000 BPD) and Navajo (100,000 BPD) also significant.

  5. What are the company's 2024 capital spending plans?

    The presentation shows 2024 total capital expenditure guidance of $875 million. This includes $800 million of sustaining capital, with $415 million for turnarounds and catalysts and $235 million for refining, plus $75 million of growth capital.

04—Continue

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