HF Sinclair beats Q2 adjusted EPS estimates, dividend rises 5%

Overview

• US energy producer's Q2 adjusted EPS and adjusted EBITDA beat analyst expectations

• Company announced 5% increase in regular quarterly dividend to $0.525 per share

• Plans to separate Lubricants Specialties segment into new public company

Outlook

• HF Sinclair expects strong market fundamentals to persist into Q3 and the rest of 2026

• Company plans to separate Lubricants Specialties segment within 12-18 months

• Company to retire Mississauga base oil refining assets, transition expected to complete in 2027

Result Drivers

• REFINING MARGINS AND VOLUMES - Co said refining segment earnings rose due to strong margins and volumes in Mid-Continent and West regions, driven by steady demand, tight supply and favorable crack spreads

• RENEWABLES PROFITABILITY - Renewables segment returned to profit on improved RINs prices, higher Producer’s Tax Credit benefits and increased volumes

• LUBRICANTS SPECIALTIES GAINS - Higher sales volumes, product prices and a FIFO inventory benefit lifted Lubricants Specialties segment earnings

Company press release: ID:nBw3JK1Rya

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", 9 "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 $81.00, about 10.8% below its July 27 closing price of $90.78

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 28 - Australia plans first domestic oil refinery in 60 years to boost fuel security

• July 27 - Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates

• July 27 - Alliance Resource Partners Q2 revenue beats on higher oil gas royalties

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)