HF Sinclair Q4 profit beats on refinery margins

Overview

• Independent energy firm's Q4 adjusted EPS of $1.20 beat analyst expectations

• Q4 adjusted EBITDA of $564 mln beat analyst expectations

• Company announced $0.50 regular quarterly dividend and temporary CEO change

Outlook

• Company remains focused on growth in Midstream, Lubricants, and Marketing segments

• Company emphasizes returning excess cash to shareholders

Result Drivers

• REFINERY MARGINS - Higher adjusted refinery gross margins drove Q4 results, despite seasonal weakness and operational issues at Puget Sound and Artesia refineries

• RINS WAIVERS - Small refinery RINs waivers improved adjusted refinery gross margins by $313 mln in Q4

• MARKETING SEGMENT - Higher margins and store optimization led to increased income in Marketing segment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for HF Sinclair Corp is $62.00, about 7.2% above its February 17 closing price of $57.85

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw2Fxw9Ta

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