Why Energy Company HF Sinclair Shares Are Surging Wednesday
Portfolio Pulse from Lekha Gupta
HF Sinclair Corporation (NYSE:DINO) shares surged after reporting Q1 FY24 results, with adjusted EPS of $0.71 beating consensus despite a 7% revenue decline and a 43% drop in adjusted EBITDA. The company also announced a $0.50 per share dividend and a new $1 billion share repurchase authorization. Investors can also gain exposure through VanEck Oil Refiners ETF (NYSE:CRAK) and First Trust Energy AlphaDEX Fund (NYSE:FXN).
May 08, 2024 | 2:36 pm
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POSITIVE IMPACT
VanEck Oil Refiners ETF (CRAK) offers exposure to HF Sinclair, which announced positive Q1 FY24 results and shareholder return actions.
As CRAK offers exposure to HF Sinclair, the positive news from DINO could lead to increased investor interest in CRAK, potentially impacting its performance positively in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
HF Sinclair reported a mixed Q1 FY24 with a beat on EPS but a decline in revenue and EBITDA. Announced a dividend and a new share buyback program.
Despite the revenue and EBITDA decline, the EPS beat and positive shareholder return actions (dividend and buyback) are likely to be viewed positively by the market, contributing to the stock's surge.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
First Trust Energy AlphaDEX Fund (FXN) provides exposure to HF Sinclair, which reported encouraging Q1 FY24 results and shareholder return actions.
Given FXN's exposure to HF Sinclair, the company's Q1 performance and announcement of a dividend and buyback program could attract more interest to FXN, potentially benefiting its short-term performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50