HF Sinclair sinks after forecasting higher capital spend for 2023
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%.
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