Analyst Note| Allen Good |
HF Sinclair exceeded market expectations, reporting adjusted earnings of $982.9 million in the third quarter compared with $209.9 million a year ago largely thanks to strong refining results. During the quarter it accelerated shareholder returns from the previous quarter, repurchasing $866.2 million in shares and paying $85.3 million in dividends ($0.40/share). This brings its total shareholder returns to $1.1 billion since the closing of the Sinclair acquisition in March, well ahead of its prior end of first-quarter 2023 target. In September it authorized another $1 billion of repurchases that will go toward fulfilling its targeted long-term payout ratio of 50%.