Latest news with #HFSinclairCorporation
Business Insider
02-05-2025
- Business
- Business Insider
Analysts Have Conflicting Sentiments on These Energy Companies: Paladin Energy Ltd (OtherPALAF), Whitehaven Coal Limited (OtherWHITF) and HF Sinclair Corporation (DINO)
Analysts have been eager to weigh in on the Energy sector with new ratings on Paladin Energy Ltd (PALAF – Research Report), Whitehaven Coal Limited (WHITF – Research Report) and HF Sinclair Corporation (DINO – Research Report). Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Paladin Energy Ltd (PALAF) In a report released yesterday, Andrew Hines from Shaw and Partners maintained a Buy rating on Paladin Energy Ltd, with a price target of A$10.10. The company's shares closed last Thursday at $3.78, close to its 52-week low of $3.22. According to Hines is ranked #9068 out of 9437 analysts. Currently, the analyst consensus on Paladin Energy Ltd is a Strong Buy with an average price target of $5.31, implying a 43.1% upside from current levels. In a report issued on April 16, Citi also maintained a Buy rating on the stock with a A$10.20 price target. Whitehaven Coal Limited (WHITF) Goldman Sachs analyst Paul Young maintained a Hold rating on Whitehaven Coal Limited on April 29 and set a price target of A$5.70. The company's shares closed last Thursday at $3.14. According to Young is a 4-star analyst with an average return of 6.7% and a 54.7% success rate. Young covers the Basic Materials sector, focusing on stocks such as Sandfire Resources Limited, Fortescue Metals Group Ltd, and Mineral Resources Limited. Whitehaven Coal Limited has an analyst consensus of Moderate Buy, with a price target consensus of $4.20, which is a 35.5% upside from current levels. In a report issued on April 15, UBS also downgraded the stock to Hold with a A$5.15 price target. HF Sinclair Corporation (DINO) In a report released yesterday, Jason Gabelman from TD Cowen maintained a Hold rating on HF Sinclair Corporation, with a price target of $29.00. The company's shares closed last Thursday at $31.27, close to its 52-week low of $29.85. According to Gabelman is a 4-star analyst with an average return of 4.9% and a 50.0% success rate. Gabelman covers the NA sector, focusing on stocks such as Calumet Specialty Products, Par Pacific Holdings, and Marathon Petroleum. Currently, the analyst consensus on HF Sinclair Corporation is a Moderate Buy with an average price target of $41.22, implying a 32.5% upside from current levels. In a report issued on April 16, Barclays also maintained a Hold rating on the stock with a $29.00 price target.
Business Wire
01-05-2025
- Business
- Business Wire
HF Sinclair Reports 2025 First Quarter Results and Announces Regular Cash Dividend
DALLAS--(BUSINESS WIRE)--HF Sinclair Corporation (NYSE:DINO) ('HF Sinclair' or the 'Company') today reported first quarter Net loss attributable to HF Sinclair stockholders of $4 million, or $(0.02) per diluted share, for the quarter ended March 31, 2025, compared to Net income attributable to HF Sinclair stockholders of $315 million, or $1.57 per diluted share, for the quarter ended March 31, 2024. Excluding the adjustments shown in the accompanying earnings release table, adjusted net loss attributable to HF Sinclair stockholders for the first quarter of 2025 was $50 million, or $(0.27) per diluted share, compared to adjusted net income of $142 million, or $0.71 per diluted share, for the first quarter of 2024. HF Sinclair's Chief Executive Officer, Tim Go, commented, 'For the first quarter, we delivered strong results in our Marketing, Midstream and Lubricants & Specialties businesses, and saw sequential improvement in Refining, despite the market headwinds and uncertainty caused by tariffs. Looking forward, we are encouraged by the recent improvement in refining margins and continue to focus on the execution of our strategic priorities to capture value across all of our business segments.' Refining segment loss before interest and income taxes was $30 million for the first quarter of 2025 compared to income of $312 million for the first quarter of 2024. Excluding the Lower of cost or market inventory valuation adjustments and certain items, the segment reported Adjusted EBITDA of $(8) million for the first quarter of 2025 compared to $209 million for the first quarter of 2024. This decrease was principally driven by lower adjusted refinery gross margins in both the West and Mid-Continent regions and lower refined product sales volumes. Adjusted refinery gross margin was $9.12 per produced barrel sold, a 28% decrease compared to $12.70 for the first quarter of 2024. Crude oil charge averaged 606,140 barrels per day ('BPD') for the first quarter of 2025 compared to 604,930 BPD for the first quarter of 2024. Renewables segment loss before interest and income taxes was $39 million for the first quarter of 2025 compared to a loss of $39 million for the first quarter of 2024. Excluding the Lower of cost or market inventory valuation adjustments, the segment reported Adjusted EBITDA of $(17) million in the first quarter of 2025 compared to $(18) million in the first quarter of 2024. Our first quarter 2025 results were impacted by lower sales volumes and our inability to recognize benefits associated with the Producer's Tax Credit due to the uncertainty surrounding the implementation of the legislation. Total sales volumes were 44 million gallons for the first quarter of 2025 compared to 61 million gallons for the first quarter of 2024. Marketing segment income before interest and income taxes was $20 million for the first quarter of 2025 compared to $9 million for the first quarter of 2024. The segment reported EBITDA of $27 million for the first quarter of 2025 compared to $15 million for the first quarter of 2024. This increase was primarily driven by higher margins in the first quarter of 2025. Total branded fuel sales volumes were 294 million gallons for the first quarter 2025 as compared to 321 million gallons for the first quarter of 2024. Lubricants & Specialties segment income before interest and income taxes was $63 million for the first quarter of 2025 compared to $65 million in the first quarter of 2024. The segment reported EBITDA of $85 million for the first quarter of 2025 compared to $87 million in the first quarter of 2024. During the first quarter of 2025, we recognized a FIFO benefit of $8 million compared to a FIFO charge of $1 million during the first quarter of 2024. Midstream segment income before interest and income taxes was $63 million for the first quarter of 2025 compared to $92 million for the first quarter of 2024. Excluding certain items, the segment reported Adjusted EBITDA of $119 million for the first quarter of 2025 compared to $110 million for the first quarter of 2024. This increase was primarily driven by higher pipeline revenues in the first quarter of 2025 as compared to the first quarter of 2024. For the first quarter of 2025, net cash used for operations totaled $89 million. At March 31, 2025, the Company's Cash and cash equivalents totaled $547 million, a $253 million decrease compared to Cash and cash equivalents of $800 million at December 31, 2024. During the first quarter of 2025, the Company announced and paid a regular dividend of $0.50 per share to stockholders totaling $95 million. Additionally, at March 31, 2025, the Company's consolidated debt was $2,676 million. HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.50 per share. The dividend is payable on June 3, 2025 to holders of record of common stock on May 15, 2025. The Company has scheduled a webcast conference call for today, May 1, 2025, at 8:30 AM Eastern Time to discuss first quarter financial results. This webcast may be accessed at: An audio archive of this webcast will be available using the above noted link through May 15, 2025. HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high-value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and lubricants and specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. HF Sinclair provides petroleum product and crude oil transportation, terminalling, storage and throughput services to our refineries and the petroleum industry. HF Sinclair markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states and supplies high-quality fuels to more than 1,600 branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in New Mexico. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and export products to more than 80 countries. The following is a 'safe harbor' statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are 'forward-looking statements' based on management's beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in the Company's filings with the Securities and Exchange Commission (the 'SEC'). All statements concerning our expectations for future results of operations are based on forecasts for our existing operations and do not include the potential impact of any future acquisitions. Forward-looking statements use words such as 'anticipate,' 'project,' 'will,' 'expect,' 'plan,' 'goal,' 'forecast,' 'strategy,' 'intend,' 'should,' 'would,' 'could,' 'believe,' 'may,' and similar expressions and statements regarding the Company's plans and objectives for future operations. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company cannot assure you that the Company's expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the demand for and supply of feedstocks, crude oil and refined products, including uncertainty regarding the increasing societal expectations that companies address climate change and greenhouse gas emissions; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company's markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of crude oil, refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to reductions in demand, accidents, unexpected leaks or spills, unscheduled shutdowns, infection in the workforce, weather events, global health events, civil unrest, expropriation of assets, and other economic, diplomatic, legislative, or political events or developments, terrorism, cyberattacks, vandalism or other catastrophes or disruptions affecting the Company's operations, production facilities, machinery, pipelines and other logistics assets, equipment, or information systems, or any of the foregoing at the Company's suppliers, customers, or third-party providers, and any potential asset impairments resulting from, or the failure to have adequate insurance coverage for or receive insurance recoveries from, such actions; the effects of current and/or future governmental and environmental regulations and policies, including compliance with existing, new and changing environmental and health and safety laws and regulations, related reporting requirements and pipeline integrity programs; the availability and cost of financing to the Company; the effectiveness of the Company's capital investments and marketing strategies; the Company's efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects on time and within capital guidance; the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire complementary assets or businesses to the Company's existing assets and businesses on acceptable terms and to integrate any existing or future acquired operations and realize the expected synergies of any such transaction on the expected timeline; the possibility of vandalism or other disruptive activity, or terrorist or cyberattacks and the consequences of any such activities or attacks; uncertainty regarding the effects and duration of global hostilities, including shipping disruptions in the Red Sea, the Israel-Gaza and Hezbollah conflict, the Russia-Ukraine war, and any associated military campaigns which may disrupt crude oil supplies and markets for the Company's refined products and create instability in the financial markets that could restrict the Company's ability to raise capital; general economic conditions, including uncertainties regarding trade policies, such as the imposition of tariffs, or economic slowdowns caused by a local or national recession or other adverse economic conditions, such as periods of increased or prolonged inflation; limitations on the Company's ability to make future dividend payments or effectuate share repurchases due to market conditions and corporate, tax, regulatory and other considerations; and other business, financial, operational and legal risks. Additional information on risks and uncertainties that could affect our business prospects and performance is provided in the reports filed by us with the SEC. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. (1) Exclusive of Depreciation and amortization. (2) Exclusive of Lower of cost or market inventory valuation adjustments. Expand Balance Sheet Data Segment Information Our operations are organized into five reportable segments: Refining, Renewables, Marketing, Lubricants & Specialties and Midstream. Our operations that are not included in one of these five reportable segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column. The Refining segment represents the operations of our El Dorado, Tulsa, Navajo, Woods Cross, Puget Sound, Parco and Casper refineries and HF Sinclair Asphalt Company LLC ('Asphalt'). Refining activities involve the purchase and refining of crude oil and wholesale marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Renewables segment represents the operations of our Cheyenne renewable diesel unit ('RDU'), Artesia RDU, Sinclair RDU and the pre-treatment unit at our Artesia, New Mexico facility. The Marketing segment represents branded fuel sales to Sinclair branded sites in the United States and licensing fees for the use of the Sinclair brand at additional locations throughout the country. The Marketing segment also includes branded fuel sales to non-Sinclair branded sites and revenues from other marketing activities. Our branded sites are located in several states across the United States with the highest concentration of the sites located in our West and Mid-Continent regions. The Lubricants & Specialties segment represents Petro-Canada Lubricants Inc.'s production operations, located in Mississauga, Ontario, which includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants Inc.'s business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States and Europe. Additionally, the Lubricants & Specialties segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil Company LLC, one of the leading suppliers of locomotive engine oil in North America. Also, the Lubricants & Specialties segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. The Midstream segment includes all of the operations of our wholly-owned subsidiary Holly Energy Partners, L.P., which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, and terminals, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The Midstream segment also includes 50% ownership interests in each of Osage Pipeline Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas, and Cushing Connect Pipeline & Terminal LLC, the owner of a pipeline running from Cushing, Oklahoma to Tulsa, Oklahoma, a 26.08% ownership interest in Saddle Butte Pipeline III, LLC, the owner of a pipeline running from the Powder River Basin to Casper, Wyoming, and a 49.995% ownership interest in Pioneer Investments Corp., the owner of a pipeline running from Sinclair, Wyoming to the North Salt Lake City, Utah Terminal. Revenues and other income from the Midstream segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation, terminalling operations and tankage facilities provided for our refining operations. (1) Refining segment intersegment revenues relate to transportation fuels sold to the Marketing segment. Midstream segment revenues relate to pipeline and terminalling services provided primarily to the Refining segment, including leases. These transactions eliminate in consolidation. (2) Exclusive of Depreciation and amortization. (3) Exclusive of Lower of cost or market inventory valuation adjustments. Expand Refining Segment Operating Data The following tables set forth information, including non-GAAP (generally accepted accounting principles) performance measures, about our consolidated refinery operations. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced refined products. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relates to inventory held at the end of the period. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region is comprised of the El Dorado and Tulsa refineries. The West region is comprised of the Puget Sound, Navajo, Woods Cross, Parco and Casper refineries. Three Months Ended March 31, 2025 2024 Mid-Continent Region Crude charge (BPD) (1) 260,610 259,030 Refinery throughput (BPD) (2) 276,490 273,890 Sales of produced refined products (BPD) (3) 255,360 272,460 Refinery utilization (4) 100.2 % 99.6 % Average per produced barrel sold (5) Gross margin (6) $ 1.21 $ 7.44 Adjusted refinery gross margin (7) $ 7.60 $ 10.47 Less: operating expenses (8) 7.12 6.40 Adjusted refinery gross margin, less operating expenses $ 0.48 $ 4.07 Operating expenses per throughput barrel (9) $ 6.57 $ 6.37 Feedstocks: Sweet crude oil 51 % 50 % Sour crude oil 25 % 25 % Heavy sour crude oil 18 % 19 % Other feedstocks and blends 6 % 6 % Total 100 % 100 % Sales of produced refined products: Gasolines 53 % 52 % Diesel fuels 29 % 32 % Jet fuels 8 % 6 % Fuel oil 1 % 1 % Asphalt 3 % 3 % Base oils 4 % 4 % LPG and other 2 % 2 % Total 100 % 100 % Expand Three Months Ended March 31, 2025 2024 West Region Crude charge (BPD) (1) 345,530 345,900 Refinery throughput (BPD) (2) 370,090 369,410 Sales of produced refined products (BPD) (3) 366,430 359,010 Refinery utilization (4) 82.7 % 82.8 % Average per produced barrel sold (5) Gross margin (6) $ (0.01 ) $ 5.40 Adjusted refinery gross margin (7) $ 10.19 $ 14.39 Less: operating expenses (8) 9.06 9.59 Adjusted refinery gross margin, less operating expenses $ 1.13 $ 4.80 Operating expenses per throughput barrel (9) $ 8.97 $ 9.32 Feedstocks: Sweet crude oil 31 % 32 % Sour crude oil 44 % 43 % Heavy sour crude oil 12 % 12 % Wax crude oil 6 % 7 % Other feedstocks and blends 7 % 6 % Total 100 % 100 % Sales of produced refined products: Gasolines 54 % 53 % Diesel fuels 33 % 32 % Jet fuels 6 % 5 % Fuel oil 2 % 2 % Asphalt 1 % 2 % LPG and other 4 % 6 % Total 100 % 100 % Expand Three Months Ended March 31, 2025 2024 Consolidated Crude charge (BPD) (1) 606,140 604,930 Refinery throughput (BPD) (2) 646,580 643,300 Sales of produced refined products (BPD) (3) 621,790 631,470 Refinery utilization (4) 89.4 % 89.2 % Average per produced barrel sold (5) Gross margin (6) $ 0.49 $ 6.28 Adjusted refinery gross margin (7) $ 9.12 $ 12.70 Less: operating expenses (8) 8.26 8.22 Adjusted refinery gross margin, less operating expenses $ 0.86 $ 4.48 Operating expenses per throughput barrel (9) $ 7.95 $ 8.06 Feedstocks: Sweet crude oil 39 % 39 % Sour crude oil 36 % 36 % Heavy sour crude oil 15 % 15 % Wax crude oil 3 % 4 % Other feedstocks and blends 7 % 6 % Total 100 % 100 % Expand Sales of produced refined products: Gasolines 53 % 53 % Diesel fuels 31 % 32 % Jet fuels 7 % 6 % Fuel oil 2 % 1 % Asphalt 2 % 2 % Base oils 2 % 2 % LPG and other 3 % 4 % Total 100 % 100 % Expand (1) Crude charge represents the barrels per day of crude oil processed at our refineries. (2) Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries. (3) Represents barrels sold of refined products produced at our refineries (including Asphalt and intersegment sales) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold. (4) Represents crude charge divided by total crude capacity (BPSD). Our consolidated crude capacity is 678,000 BPSD. (5) Represents the average amount per produced barrel sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (6) Gross margin represents total Refining segment Sales and other revenues less Cost of materials and other, Lower of cost or market inventory valuation adjustments, Operating expenses and Depreciation and amortization, divided by sales volumes of produced refined products. (7) Adjusted refinery gross margin is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (8) Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by sales volumes of produced refined products. (9) Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by Refinery throughput. Expand Renewables Segment Operating Data The following table sets forth information, including non-GAAP performance measures, about our renewables operations. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced renewables products. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relates to inventory held at the end of the period. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (1) Represents the average amount per produced gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (2) Gross margin represents total Renewables segment Sales and other revenues less Cost of materials and other, Lower of cost or market inventory valuation adjustments, Operating expenses and Depreciation and amortization, divided by sales volumes of produced renewables products. (3) Adjusted renewables gross margin is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (4) Represents total Renewables segment Operating expenses, exclusive of Depreciation and amortization, divided by sales volumes of produced renewables products. Expand Marketing Segment Operating Data The following table sets forth information, including non-GAAP performance measures, about our marketing operations and includes our Sinclair branded fuel business. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus Depreciation and amortization, divided by sales volumes of marketing products. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (1) Includes certain non-Sinclair branded sites. (2) Represents the average amount per gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. (3) Gross margin represents total Marketing segment Sales and other revenues less Cost of materials and other and Depreciation and amortization, divided by sales volumes of marketing products. (4) Adjusted marketing gross margin is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under 'Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles' below. Expand Lubricants & Specialties Segment Operating Data The following table sets forth information about our lubricants and specialties operations. Midstream Segment Operating Data The following table sets forth information about our midstream operations. (1) Certain volumetric non-financial information has been recast to conform to current year presentation. Expand Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles Reconciliations of earnings before interest, taxes, depreciation and amortization ('EBITDA') and EBITDA excluding special items ('Adjusted EBITDA') to amounts reported under generally accepted accounting principles ('GAAP') in the financial statements. Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as Net income (loss) attributable to HF Sinclair stockholders plus (i) Interest expense, net of Interest income, (ii) Income tax expense (benefit) and (iii) Depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i) Lower of cost or market inventory valuation adjustments, (ii) asset impairments, (iii) loss on sale of equity method investment, (iv) loss on early extinguishment of debt, and (v) acquisition integration costs. EBITDA and Adjusted EBITDA are not calculations provided for under accounting principles generally accepted in the United States; however, the amounts included in these calculations are derived from amounts included in our consolidated financial statements. EBITDA and Adjusted EBITDA should not be considered as alternatives to Net income (loss) or Income (loss) from operations as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures of other companies. These are presented here because they are financial indicators widely used by investors and analysts to measure our operating performance. EBITDA and Adjusted EBITDA are also used by our management for internal analysis and as a basis for financial covenants. Set forth below is our calculation of EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA attributable to our Refining segment are presented below: (1) Income (loss) before interest and income taxes of our Refining segment represents income (loss) plus (i) Interest expense, net of Interest income and (ii) Income tax expense. Expand EBITDA and Adjusted EBITDA attributable to our Renewables segment are set forth below: (1) Loss before interest and income taxes of our Renewables segment represents loss plus (i) Interest expense, net of Interest income and (ii) Income tax expense. Expand EBITDA attributable to our Marketing segment is set forth below: (1) Income before interest and income taxes of our Marketing segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense. Expand EBITDA attributable to our Lubricants & Specialties segment is set forth below: (1) Income before interest and income taxes of our Lubricants & Specialties segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense. Expand EBITDA and Adjusted EBITDA attributable to our Midstream segment are presented below: (1) Income before interest and income taxes of our Midstream segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense. Expand Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements. Adjusted refinery gross margin is a non-GAAP performance measure that is used by our management and others to compare our refining performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our refining performance on a relative and absolute basis, including against publicly available crack spread data. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced refined products. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to inventory held at the end of the period. Adjusted refinery gross margin is a non-GAAP performance measure and should not be considered in isolation or as a substitute for Refining segment gross margin. The GAAP measure most directly comparable to adjusted refinery gross margin is Refining segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly. Reconciliation of Refining segment gross margin to adjusted refinery gross margin to adjusted refinery gross margin per produced barrel sold and adjusted refinery gross margin less operating expenses per produced barrel sold (1) Exclusive of Depreciation and amortization. (2) Represents barrels sold of refined products produced at our refineries (including Asphalt and intersegment sales) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold. Expand Reconciliation of renewables operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements. Adjusted renewables gross margin is a non-GAAP performance measure that is used by our management and others to compare our renewables performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our renewables performance on a relative and absolute basis. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced renewables products. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Adjusted renewables gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Renewables segment gross margin. The GAAP measure most directly comparable to adjusted renewables gross margin is Renewables segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly. Reconciliation of Renewables segment gross margin to adjusted renewables gross margin to adjusted renewables gross margin per produced gallon sold and adjusted renewables gross margin, less operating expenses per produced gallon sold (1) Exclusive of Depreciation and amortization. Expand Reconciliation of marketing operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements. Adjusted marketing gross margin is a non-GAAP performance measure that is used by our management and others to compare our marketing performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our marketing performance on a relative and absolute basis. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus Depreciation and amortization, divided by sales volumes of marketing products. Adjusted marketing gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Marketing segment gross margin. The GAAP measure most directly comparable to adjusted marketing gross margin is Marketing segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly. Reconciliation of Marketing segment gross margin to adjusted marketing gross margin to adjusted marketing gross margin per gallon sold (1) Exclusive of Depreciation and amortization. Expand Reconciliation of Net income (loss) attributable to HF Sinclair stockholders to adjusted net income (loss) attributable to HF Sinclair stockholders Adjusted net income attributable to HF Sinclair stockholders is a non-GAAP financial measure that excludes non-cash Lower of cost or market inventory valuation adjustment s, asset impairments, loss on sale of equity method investment, loss on early extinguishment of debt and acquisition integration costs. We believe this measure is helpful to investors and others in evaluating our financial performance and to compare our results to that of other companies in our industry. Similarly titled performance measures of other companies may not be calculated in the same manner. (1) Represents adjustment to GAAP income tax expense (benefit) to arrive at adjusted income tax expense, which is computed as follows: Expand Three Months Ended March 31, 2025 2024 (In millions) Non-GAAP income tax expense (benefit) (2) $ (14 ) $ 40 GAAP income tax expense 1 85 Non-GAAP adjustment to income tax expense $ (15 ) $ (45 ) Expand (2) Non-GAAP income tax expense (benefit) is computed by (a) adjusting HF Sinclair's consolidated estimated Annual Effective Tax Rate ('AETR') for GAAP purposes for the effects of the above Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and (c) adjusting for discrete tax items applicable to the period. (3) Adjusted earnings (loss) per share - diluted is calculated as adjusted net income attributable to HF Sinclair stockholders divided by the average number of shares of common stock outstanding assuming dilution, which is based on weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is calculated the same way as that used in GAAP diluted earnings per share calculation. Expand Reconciliation of effective tax rate to adjusted effective tax rate Three Months Ended March 31, 2025 2024 (In millions) GAAP: Income (loss) before income taxes $ (1 ) $ 402 Income tax expense $ 1 $ 85 Effective tax rate for GAAP financial statements (1) (205.2 )% 21.3 % Adjusted - non-GAAP: Effect of non-GAAP adjustments 227.8 % 0.2 % Effective tax rate for adjusted results 22.6 % 21.5 % Expand (1) Due to rounding of reported numbers, some amounts may not calculate exactly. Expand
Yahoo
29-04-2025
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HF Sinclair Corporation (DINO): Among Billionaire Mason Hawkins' Small-Cap Stocks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where HF Sinclair Corporation (NYSE:DINO) stands against other billionaire Mason Hawkins' small-cap stocks with huge upside potential. Mason Hawkins is a prominent American investor, known for being the founder and chairman of Southeastern Asset Management. Hawkins holds a Bachelor of Arts in Finance from the University of Florida and later did his MBA in Finance from the University of Georgia. Before founding Southeastern Asset Management, the billionaire gained experience as a Director of Research at Atlantic National Bank and First Tennessee Investment Management. There he developed his value investment strategy and has since been known for his discipline in value investing. His fund Southeastern Asset Management also holds the same reputation, which can be witnessed through his concentrated portfolio of around 40 to 50 stocks. Southeastern Asset Management services 47 clients at the moment, with $5,271,901,660 as assets under management as of March 2024. Value investment is an investment strategy that employs buying stocks of well-managed and quality companies at prices significantly below their intrinsic value. The core of Hawkins' strategy is to purchase equities when their market price is no more than 60% of the firm's appraisal of their intrinsic value. Value investors believe that the market overreacts to economic news, which leads to movement in stock prices, however, this news does not affect the long-term fundamentals of a company. Therefore, investors like Mason Hawkins do not follow the herd and use financial research and analysis to find quality companies. Value investors are also known for holding companies for a long term, but also actively ferret out stock that the market is underestimating. Hawkins' disciplined and research-based investment strategy has earned him widespread recognition. He achieved Investor's Lifetime Achievement Award in 2005 and was also named Domestic Equity Fund Manager of the Year by Morningstar in 2006. Under the current market condition, Hawkins' value investment strategy has led Southeastern Asset Management's attention towards small-cap stocks. While the small-cap stocks have largely underperformed the market when compared to their large-cap counterparts. However, according to Francis Gannon, Co-Chief Investment Officer at Royce Investment Partners, small-caps are attractively priced for long-term investment opportunities. Gannon's investment advice aligns with Hawkins's strategy, as he suggests investing in quality small-cap companies with strong fundamentals, low debt, established long-term earnings, and significant upside potential. To compile the list of billionaire Mason Hawkins' 10 small-cap stocks with huge upside potential, we sifted through 13F filings of Southeastern Asset Management, from Insider Monkey. From these filings, we checked each stock's upside potential from CNN and ranked the stocks in ascending order of the upside potential. We have also added the stake Southeastern Asset Management holds in each company and the hedge fund sentiment around each stock. Please note that the data was recorded on April 28, 2025. Also note that for this article we have defined small-cap companies as those with a market capitalization between $1 billion to $10 billion. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Mason Hawkins of Southeastern Asset Management HF Sinclair Corporation (NYSE:DINO) is an independent energy company based in Texas. The company deals in a wide range of petroleum-based and renewable products. It operates through five key business segments including Refining, Renewables, Marketing, Lubricants & Specialities, and Midstream. On April 7, Analyst Joe Laetsch from Morgan Stanley maintained a Buy rating on the stock, while keeping the price target at $50. Laetsch highlighted a series of challenges and opportunities for HF Sinclair Corporation (NYSE:DINO). He noted that while the company is expected to face some moderation due to maintenance activities and less favorable crude differentials, however, the refining segment is anticipated to benefit from higher crude throughput. The analyst acknowledged that the Lubricants & Specialties of the company face lower sales volumes, however, he believes that the issue is manageable. Lastly, the Midstream segment is anticipated to post a stable performance thereby helping the company achieve its annual run-rate. During fiscal 2024, HF Sinclair Corporation (NYSE:DINO) achieved record EBITDA for its Marketing and Midstream segments. The Marketing segment EBITDA grew 23% year-over-year to reach $75 million, whereas the Midstream segment grew 14% to reach $447 million. This enabled the company to return over $1 billion to shareholders through dividends during the year. HF Sinclair Corporation (NYSE:DINO) is one of the billionaire Mason Hawkins' 10 small-cap stocks with huge upside potential. Longleaf Partners Fund stated the following regarding HF Sinclair Corporation (NYSE:DINO) in its Q4 2024 investor letter: 'HF Sinclair Corporation (NYSE:DINO) – Energy infrastructure company HF Sinclair, which owns refining, midstream, specialty chemicals, marketing and renewable fuels assets, detracted in the quarter and for the year. The company owns unique assets that are protected from competition and has a great culture focused on value per share growth and realization. We had the opportunity to purchase this strong company in the quarter due to the recent refining downcycle and oil price volatility. We know HF Sinclair well having owned it before in 2015 in the Small-Cap Fund and having followed it since we first visited the company in 2009. As is typical in this industry, quarterly volatility in spread pricing can weigh on the share price in the short term, which is what happened this quarter. We were encouraged to see significant insider buying throughout the quarter as we were buying alongside them.' Overall, DINO ranks 9th on our list of billionaire Mason Hawkins' small-cap stocks with huge upside potential. While we acknowledge the potential of DINO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DINO but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Is HF Sinclair Corporation (DINO) a Dividend Trap to Avoid in 2025?
We recently put together a list of . Here, we take a detailed look at HF Sinclair Corporation (NYSE:DINO) and its ranking among the top 10 dividend trap stocks investors should avoid in 2025. During uncertain times, dividend stocks are often seen as a safe bet for investors to cushion the impact. In 2025, however, the cushion may be carrying more risk than reward. Shifting market conditions are revealing signs of trouble underneath the stocks, which were initially appreciated as reliable dividend payers. No, we are not talking just about volatility or short-term noise; we are talking about companies that would seem irresistible with their attractive yield but carry risks capable of eroding your capital. READ ALSO: . A thick fog of uncertainty rests over the investing climate in 2025. Earnings expectations for the large caps have been slashed at an alarming rate in the past few weeks alone. CNBC noted that some of the analysts, who initially predicted a 5% earnings growth for the market indices, have revised their estimation to a flat or even negative outcome by next month. Various companies have pulled their guidance together, reflecting not just caution but an absence of visibility to make the forecast. And by extension, the dividend-paying stocks have become trickier than before. What's the cause? The U.S. tariffs. President Trump, though, announced a 90-day tariff-pause on dozens of countries, slapped a whopping 145% tariff on Chinese goods into the U.S. China retaliated with a 125% tariff on U.S. imports, effectively sealing off a $650 billion trading corridor, which was considered a lifeline of multiple industries both in the U.S. and China. According to Reuters, this trade war between two of the largest economies in the world has sent ripples across the already shaken global asset markets. Companies, including the consistent dividend payers, are now facing cost shocks and a sharp decline in their profit margin, which are bound to affect the income of the investors. Shifts in investor sentiment are also becoming part of these challenges. Along with institutional investors, retail investors are also adopting a wait-and-see approach. Mergers and acquisitions processes are slowing down, capital expenditures are being slashed, and supply chains are being restructured to handle the current market issues rather than the long-term challenges. Recent earnings calls are showing the CFOs prioritizing liquidity and short-term cost optimization. These actions are highly likely to affect the dividends, as it is one of the easiest budget line items to slash. The situation underscores the importance of not blindly chasing after yields. High dividend yields could potentially be masking a weakness, including earnings fall, escalating debt, or unsustainable payout ratios. In this regard, attractive yields are becoming a trap that can lure investors, only to collapse under pressure when market conditions worsen. With uncertainty outweighing opportunity in 2025, it is immensely necessary to separate solid dividend plays from ticking time bombs. When putting together our list of top 10 dividend trap stocks to avoid, we have followed a few criteria. Primarily, we have set the minimum market cap at $2 billion since investors are less likely to fall for stocks with a smaller cap. The stocks that are on a declining trend have been considered for this article. Such low performance reflects issues within the business operations that have made an impact on the value of the stocks. Also, we have included only those stocks with a dividend yield of 5% or more to ensure that these stocks are attractive enough to lure investors. All our picks have a payout ratio of 100% or more, suggesting an earnings issue within the company, which the investors need to be aware of. All the data used in the article were taken from financial databases and analyst reports, with all information updated as of April 11, 2025. Our picks are ranked based on their dividend yield. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a gasoline pump nozzle at a service station, revealing the company's consumer-facing branding.A Texas-based company, HF Sinclair Corporation (NYSE:DINO) is a diversified energy company focused on refining, marketing, and producing lubricants and renewable fuels. The company has complex refineries and distribution networks across the U.S. and uses them to supply gasoline, diesel, and specialty products. HF Sinclair Corporation (NYSE:DINO) distinguishes itself from its competitors through strategic acquisitions and renewable fuel capacity. Their focus on sustainability initiatives helps with their long-term competitiveness in the sector. HF Sinclair Corporation (NYSE:DINO)'s staggering 54.44% price drop over the past year suggests poor performance. Particularly, in the fourth quarter, the company reported a net loss of $214 million, attributable to shareholders. A significant contributor to the loss was the notable decline in the EBITDA of the refining segment. The fall in sales volume, in addition to the reduced refinery gross margins, caused the decline. Another segment that faced a fall during the period was the renewables segment. High-priced inventory drawdown heavily impacted the profitability of the segment. Uncertainty in the R&D environment alongside the new tariff rates is expected to drive the stocks further down in 2025. HF Sinclair Corporation (NYSE:DINO) offers a generous dividend yield of 7.28%. A 219.78% payout ratio reveals unsustainable distributions. The company is paying double what it earns to shareholders, which brings it to our list of handpicked worst dividend stocks. Overall, DINO ranks 5th on our list of top dividend trap stocks investors should avoid in 2025. While we acknowledge the potential of DINO, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DINO but trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-01-2025
- Business
- Yahoo
Shareholders in HF Sinclair (NYSE:DINO) are in the red if they invested a year ago
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in HF Sinclair Corporation (NYSE:DINO) have tasted that bitter downside in the last year, as the share price dropped 35%. That's well below the market return of 27%. However, the longer term returns haven't been so bad, with the stock down 1.1% in the last three years. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. Check out our latest analysis for HF Sinclair There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Unfortunately HF Sinclair reported an EPS drop of 85% for the last year. This fall in the EPS is significantly worse than the 35% the share price fall. It may have been that the weak EPS was not as bad as some had feared. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of HF Sinclair's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for HF Sinclair the TSR over the last 1 year was -33%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! While the broader market gained around 27% in the last year, HF Sinclair shareholders lost 33% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.7% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that HF Sinclair is showing 2 warning signs in our investment analysis , you should know about... HF Sinclair is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
