Q2 margins shrank 28% Y/Y to $14.54/bbl produced, but were roughly in line with analyst expectations and offset by higher than expected throughput volumes, Raymond James analysts say, adding that this had been "a common theme this refining earnings season."
HFC processed 472,590 bbl/day in the quarter, 13% more than a year earlier, but expects to process 405K bbl/day in Q3 due to work at its refineries in El Dorado, Kan., and Artesia, N.M.
CEO Mike Jennings said in this morning's earnings call that the assets of Venezuela's Citgo would be "a good fit" if they are for sale, adding that the company always looks at M&A possibilities.
HollyFrontier (HFC) Q2 earnings fell 48% as refinery margins narrowed amid lower production, but says the proximity of its refineries to U.S. crude-producing regions would keep refining margins healthy.
Refinery gross margin dropped 28% to $20.28/bbl from $27.43 a year ago.
Planned and unplanned maintenance at its Tulsa, El Dorado and Cheyenne refineries contributed to lower production.
Declares a special dividend of $0.50/share in addition to the regular $0.30 quarterly dividend.
More on HollyFrontier's (HFC) Q1 results: Earnings rose 38% as refinery margins improved and revenue declined at a slower-than-expected rate. Refinery gross margins were $23.32/bbl, up 34% vs. $17.46/bbl in the year-ago quarter. Production averaged ~407K bbl/day. But operating expenses were $265.1M ($6.68/bbl) vs. $241.6M ($5.51/bbl). Shares -2.3% premarket.
: The ban won't be lifted anytime soon. Great buying opportunity for those with dry powder.
Jun 25, 2:36 PM
HFC vs. ETF Alternatives
HollyFrontier Corp is an independent petroleum refiner. It produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. It operates in two segments; Refining and HEP.