HF Sinclair Q1 revenue, adjusted EPS beat on higher refining margins

Overview

• US energy producer's Q1 revenue rose 12%, beating analyst expectations

• Adjusted EPS for Q1 turned positive and beat analyst expectations

• Company attributed results to higher refinery margins, increased product sales, and PTC benefits

Outlook

• Company says each business segment is well positioned amid current favorable macroeconomic backdrop

Result Drivers

• REFINING MARGINS AND VOLUMES - Higher adjusted refinery gross margins in the West region and increased refined product sales volumes drove refining segment results, partly offset by lower margins in the Mid-Continent region

• RENEWABLES MARGINS AND TAX CREDITS - Renewables segment benefited from higher gross margins, increased sales volumes, narrowing BOHO spread, higher RINs prices, and recognition of prior year Producer’s Tax Credit benefits

• LUBRICANTS FIFO BENEFIT - Lubricants & Specialties segment increase was primarily due to a larger FIFO benefit, partly offset by higher feedstock costs

Company press release: ID:nBw9NjDxja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "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 $66.00, about 1.8% above its April 30 closing price of $67.21

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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