HF Sinclair Launches a $1 Billion Share Repurchase Plan – Buyback Wednesdays

U.S. refiners, like Valero Energy (VLO), Phillips 66 (PSX) and HF Sinclair (DINO) significantly outperformed the broader market over the past couple of years with a very strong 2022. Things have slowed down a bit this year due to broader weakness in the energy sector.

Key Insights:

• HF Sinclair Corporation (DINO) is a diversified refining and transportation company that has seen an increase in refining utilization rates in recent quarters.
• The company recently consolidated its refining and midstream (transportation) segments through the acquisition of Holly Energy Partners (HEP) for $4.64 billion in a cash plus stock deal.
• DINO provides a strong dividend paired with a very low payout ratio, in addition to consistent repurchasing of its shares.

On March 14, 2022, HF Sinclair Corporation (DINO) was established when HollyFrontier Corporation merged with Sinclair Oil. At the same time, the midstream oil & gas transportation company Holly Energy Partners, L.P. (HEP) merged with Sinclair Transportation. DINO owned a 47% limited partner interest and a non-economic general partner interest in Holly Energy Partners.  HEP operates substantially all of the refined product pipelines that support HF Sinclair’s refining and marketing operations in the MidContinent, Southwest and Northwest regions of the United States.

Based in Dallas, Texas, DINO is a diversified energy company that sells products such as gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products and chemicals. The company has also engaged in the growing renewables business, with three production facilities focused on renewable diesel. It operates seven oil refineries with a total crude oil processing capacity of 678,000 barrels per day.

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