Q1 2024 HF Sinclair Corp Earnings Call Transcript
Key Points
- HF Sinclair Corp (DINO) reported a strong commitment to shareholder returns, announcing a new $1 billion share repurchase authorization and a regular quarterly dividend of $0.50 per share.
- The company demonstrated operational excellence with improved reliability and successful execution of planned maintenance, which contributed to solid financial performance in the Refining segment.
- HF Sinclair Corp (DINO) achieved significant progress in integrating the HEP assets into its consolidated portfolio, enhancing the Midstream segment's performance.
- The Marketing segment saw growth, driven by strong value in Sinclair branded sites and consistent sales channel with margin uplift for branded fuels.
- HF Sinclair Corp (DINO) maintained a robust balance sheet with total liquidity of approximately $3.7 billion, including a cash balance of $1.2 billion.
- The Renewables segment faced challenges with a 16% decline in the renewable diesel indicator due to weakened RINs and LCFS credit prices.
- Adjusted EBITDA for Q1 2024 was $399 million, a decrease from $705 million in Q1 2023, primarily due to lower refinery gross margins and seasonal demand weakness for transportation fuels.
- The Lubricants and Specialties segment experienced a decrease in EBITDA, largely driven by lower base oil prices in the first quarter of 2024.
- Despite operational improvements, the renewable diesel operations were not profitable, continuing to face economic headwinds and market volatility.
- HF Sinclair Corp (DINO) faced increased operating costs, which led to an update in mid-cycle guidance to reflect higher expected OpEx in the near term.
Welcome to the HF Sinclair Corporation's First Quarter 2024 Conference Call and Webcast. Hosting the call today is Tim Go, Chief Executive Officer of HF Sinclair. He is joined by Atanas Atanasov, Chief Financial Officer; Steve Ledbetter, EVP of Commercial; Valerie Pompa, EVP of Operations; and Matt Joyce, SVP of Lubricants and Specialties.
(Operator Instructions) Please note that this conference is being recorded. It is now my pleasure to turn the floor over to Craig Biery, Vice President, Investor Relations. Craig, you may begin.
Thank you, Kathleen. Good morning, everyone, and welcome to HF Sinclair Corporation's First Quarter 2024 Earnings Call. This morning, we issued a press release announcing results for the quarter ending March 31, 2024. If you would like a copy of the earnings press release, you may find one on our website at hfsinclair.com.
Before we proceed with remarks, please note the safe harbor disclosure statement in today's press release. In summary, it such statements made
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