HF Sinclair Earnings: Shareholder Returns Continue With Dividend Increase Even as Earnings Fall

HF Sinclair's fourth-quarter adjusted earnings decreased to $164.6 million from $597.8 million a year ago but surpassed market expectations on lower refining earnings. The firm repurchased $165.7 million in shares during the quarter, a meaningful slowdown from $585.6 million during the third quarter. However, for the full year it returned $1.3 billion to shareholders including dividends, for an impressive payout ratio of 74%, well above its long-term target of 50%. It also has $591 million remaining on its current repurchase authorization, and last week it announced an increase in the quarterly dividend of $0.05 to $0.50 per share. With management expecting another above-midcycle year in 2024, it also expects another strong payout to shareholders.