HF Sinclair Corporation has lowered its 2026 capital‑expenditure target to $775 million, an 11% reduction from the $875 million planned for 2025. The cut reflects a sharper decline in maintenance‑related spending, particularly for turnarounds and catalysts, and a strategic shift toward a more efficient, low‑cost operating model.
The company’s 2026 maintenance budget is projected at $325 million, down from $410 million in 2025, while refining‑segment spending is expected to fall to $225 million from $240 million. These reductions bring the total 2026 capex below the $910–$1,105 million range seen in 2023, underscoring a deliberate move to scale back discretionary investment while preserving core operational capacity.
HF Sinclair will still allocate $125 million to growth capital in 2026, a targeted investment that the company has described as focused on high‑return opportunities. The overall capex reduction signals a prioritization of cost discipline and operational efficiency over aggressive expansion, aligning with management’s emphasis on reliability, optimization and integration across the business.
CEO Timothy Go highlighted the company’s progress on reliability and operational efficiency, while CFO Atanas H. Atanasov confirmed the sustaining capital target for 2025 and the continued focus on growth capital. The announcement coincides with a doubling of the quarterly dividend to $0.50 per share and a projected free‑cash‑flow range of $4.5 billion to $5.0 billion for the next year, up from $3.5 billion to $4.0 billion in 2025.
Beyond capex, HF Sinclair is pursuing strategic initiatives such as a pipeline expansion across the Rocky Mountain region, the acquisition of Industrial Oils Unlimited for $38 million, and an increase in renewable diesel capacity to 380 million gallons. These moves position the company to capture opportunities arising from refinery closures on the West Coast and to strengthen its portfolio in high‑margin specialty products.
The capex cut, coupled with the dividend increase and robust free‑cash‑flow outlook, signals a disciplined capital allocation strategy that balances investment in growth opportunities with a commitment to returning value to shareholders. The company’s focus on operational efficiency and targeted growth investments suggests a cautious yet opportunistic approach to capital deployment in a capital‑intensive industry.
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