DINO - HF Sinclair offers to buy rest of Holly Energy Partners

2023-05-04 07:05:47 ET

HF Sinclair ( NYSE: DINO ) +2.6% pre-market Thursday after easily beating expectations for Q1 adjusted earnings and revenues , and submitting a non-binding proposal to acquire all Holly Energy Partners' ( HEP ) outstanding common units it does not already own.

Under the proposal, HF Sinclair ( DINO ) proposed to effect the transaction at a fixed exchange ratio of 0.3714 newly issued common shares per each publicly held Holly Partners ( HEP ) common unit.

HF Sinclair ( DINO ) currently owns a 47% limited partner interest and a non-economic general partner interest in Holly Partners ( HEP ).

HF Sinclair's ( DINO ) Q1 net income more than doubled to $353.3M, or $1.79/share, from $160M, or $0.90/share, in the year-earlier quarter.

Q1 refining segment EBITDA surged to $544.1M from $207.7M a year ago, primarily driven by higher refining margins in both the West and Mid-Continent regions; consolidated refinery gross margin was $23.70/bbl produced, up 87% from $12.69/bbl for Q1 2022.

More on HF Sinclair:

• See financial and valuation comparisons to sector peers
• SA analysis: Earnings Set To Taper, Shares Holding Key Support For Now
• Stock price return: 15.5% loss YTD, 3% gain in the past 12 months

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