HF Sinclair to Separate Lubricants and Specialties Segment

By Robb M. Stewart

HF Sinclair plans to spin off its lubricants and specialties business segment in an effort to boost financial flexibility and line the energy company up for stronger and more consistent free cash flow.

The Dallas-based company said Tuesday it will separate the operations through the capital markets, creating a new independent, publicly traded company. The transaction is expected to be completed over the next 12 to 18 months.

As part of the restructuring, HF Sinclair said it will retire its base oil refining assets in Mississauga, Ontario. The lubricants and specialties business will maintain a presence in the Ontario region, including continued operation of its research and development laboratory, lubricant blending and packaging, as well as supply chain, logistics, and commercial operations.

The shift will leave HF Sinclair focused on a downstream portfolio that includes refining, pipeline and terminal assets, renewable diesel production, and a marketing base of more than 1,600 independent Sinclair-branded stations across more than 30 states.

The company said the separation won't require a shareholder vote.

News of the restructuring effort came as HF Sinclair said it will lift its regular quarterly dividend by 5% alongside its second-quarter financial results. The payout will rise to 52.5 cents a share from 50 cents, payable Sept. 2 to shareholders of record on Aug. 11.

HF Sinclair's net income jumped to $892 million, or $4.93 a share, in the three months through June, from $208 million, or $1.10, a year earlier. On an adjusted basis, per-share earnings increased to $5.31.

Sales and other revenue increased 53% to $10.39 billion for the period.

Chief Executive Franklin Myers said the fundamentals that drove strong second-quarter results across each of the company's business segments will persist in the third quarter, providing a positive backdrop for the remainder of the year.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

July 28, 2026 07:10 ET (11:10 GMT)