HF Sinclair: A Good Quarter, But Smaller Scale Makes Chasing Crack Spreads Risky
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Ronald Ferrie3.58K FollowersFollow5ShareSavePlay(11min)Comment(1)SummaryHF Sinclair delivered robust Q3 results with $2.15/share earnings, driven by strong crack spreads and operational improvements.I maintain a HOLD rating on DINO, emphasizing patience as crack spreads have weakened in December and seasonal headwinds loom.Small-scale refiners like DINO face higher per-barrel operating costs, leading to volatile cash generation, especially during weaker markets.Operational cost reductions and high utilization rates are positives, but better entry points may emerge as margins compress seasonally.I conservatively rate DINO as a HOLD. PM Images/DigitalVision via Getty Images Thesis HF Sinclair (DINO) reported very strong results in Q3. The company reported earnings of $2.15/share, driven by strong crack spreads and solid operational performance. The strong earnings allowed DINO to grow its cash reservesThis article was written byRonald Ferrie3.58K FollowersFollowI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PSX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You