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HF Sinclair sinks on plans for heavy maintenance spending next year

HF Sinclair (NYSE:DINO) -5.3% in Friday's trading after the refining company disclosed plans for FY 2023 capital spending of $910M-$1.1B, or $940M-$1.15B including Holly Energy Partners (HEP).

Analyzing the plans, J.P. Morgan analysts questioned whether higher spending on maintenance projects in 2023, estimated in a range of $530M-$630M, will affect refining utilization rates.

"Turnaround spend was guided materially higher than we had forecast," and while "lower capital spend in 2023 ex-turnarounds is a positive, higher turnarounds could have a meaningful impact on overall utilizations, and potentially capture rates in 2023," JPM analyst John Royall wrote.

"The easy money is made" in HF Sinclair (DINO), and investors should consider exiting the stock, Daniel Thurecht writes in an analysis published on Seeking Alpha.