{"id":33966,"date":"2023-05-04T16:06:08","date_gmt":"2023-05-04T16:06:08","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/hf-sinclair-beats-q1\/"},"modified":"2023-05-04T16:37:13","modified_gmt":"2023-05-04T16:37:13","slug":"hf-sinclairs-bid-for","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/hf-sinclairs-bid-for\/","title":{"rendered":"HF Sinclair&#8217;s bid for Holly Energy overshadows profit beat, shares down"},"content":{"rendered":"<p>By Sourasis  Bose<\/p>\n<p>(Reuters) -U.S. refiner HF Sinclair Corp beat estimates for first-quarter profit on Thursday and said it had offered to buy all outstanding shares that it does not already own in Holly Energy Partners LP.<\/p>\n<p>Shares of HF Sinclair fell 7% to $38.98, with Wall Street analysts suggesting that the quarterly beat could be outweighed by the non-binding buyout proposal.<\/p>\n<p>The deal could be taken negatively if the company management discusses the need to de-leverage at a time when the market is unsure of refining outlook, TD Cowen analyst Jason Gabelman wrote in a note to investors.<\/p>\n<p>Global energy markets have been volatile as risks of a potential recession have raised worries about fuel demand outlook, and concerns have grown about the health of the U.S. banking sector.<\/p>\n<p>HF Sinclair, however, said the deal would simplify its corporate structure and reduce cost.<\/p>\n<p>According to Refinitiv data, HF Sinclair already owns 47.16% of Holly Energy, which had a market value of $2.01 billion as of Wednesday&#8217;s close.<\/p>\n<p>HIGHER MARGINS DRIVE Q1 BEAT<\/p>\n<p>HF Sinclair, formerly known as HollyFrontier, said its gross margin jumped 87% to $23.70 per produced barrel in the first quarter, helping offset a decline in refinery throughput.<\/p>\n<p>Refinery throughput, or the amount of crude processed, slipped about 1.2% to 558,130 barrels per day due to maintenance activities after last year&#8217;s high utilization rates to meet a rise in demand. Refinery utilization stood at 73.5%, compared with 88.6% a year earlier.<\/p>\n<p>On an adjusted basis, the Dallas-based energy firm posted a quarterly profit of $2 per share, compared with analysts&#8217; average estimate of $1.52 per share, according to Refinitiv data.<\/p>\n<p>&#8220;1Q EPS comfortably above Street, largely driven by high refining margins as well as strong performance across segments,&#8221; said RBC Capital Markets Analyst TJ Schultz.<\/p>\n<p> (Reporting by Sourasis Bose in Bengaluru; Editing by Subhranshu Sahu)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/hf-sinclair-beats-q1\/file-photo-illustration-shows-hf-sinclair-corp-logo\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430DF-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ430DF-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Sourasis Bose (Reuters) -U.S. refiner HF Sinclair Corp beat estimates for first-quarter profit on Thursday and said it had offered to buy all outstanding shares that it does not already own in Holly Energy Partners LP. Shares of HF Sinclair fell 7% to $38.98, with Wall Street analysts suggesting that the quarterly beat could [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":33967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-33966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430DF-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=33966"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33966\/revisions"}],"predecessor-version":[{"id":34500,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33966\/revisions\/34500"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/33967"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=33966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=33966"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=33966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}