HF Sinclair sinks after forecasting higher capital spend for 2023

Holly Energy Partners LP

02/12/2022 18:39

Dec 2 (Reuters) - Shares of HF Sinclair Corp  DINO.N 
fell over 6% on Friday after the U.S. refiner forecast capital
expenditure of $940 million to $1.15 billion for fiscal 2023,
including its transportation business Holly Energy Partners
 HEP.N . 
    The Dallas, Texas-based firm had forecast $740 million to
$885 million for 2022.
    "We think the 2023 budget will have a negative impact on the
shares' near-term performance," Scotiabank analyst Paul Cheng
wrote in a note.
    Shares fell to $57.38 in afternoon trading, their lowest
level in six weeks and worst day in ten.
    Turnarounds made up a bulk of HF Sinclair's expected costs
for next year, at $530 million to $630 million.
    "The higher turnaround expenses likely also imply
lower-than-expected 2023 throughput volumes," Cheng wrote.
    HF Sinclair was formed as a parent company after
HollyFrontier Corp bought almost all of Sinclair Oil Corp's
assets for $2.6 billion. The deal closed earlier this year.
    Other refiners Phillips 66  PSX.N , Marathon Petroleum Corp
 MPC.N , Valero Energy Corp  VLO.N  and PBF Energy Inc  PBF.N 
were down 2%-6%.
 (Reporting by Ruhi Soni in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))