8 Best Oil Refinery Stocks To Invest In

05. HF Sinclair Corporation (NYSE:DINO)

Number of Hedge Fund Holders: 30

HF Sinclair Corporation (NYSE:DINO) is a leading independent energy company involved in oil refining, making it a strong candidate for inclusion in any list of top oil refinery stocks to invest in. With a diverse portfolio that includes gasoline, diesel, jet fuel, renewable diesel, and specialty chemicals, HF Sinclair Corporation (NYSE:DINO) operates refineries across the U.S., primarily in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming. The company’s strategic geographic presence enables it to serve key markets in the Southwest United States, the Rocky Mountains, the Pacific Northwest, and neighboring Plains states. Additionally, HF Sinclair is involved in supplying fuel to over 1,500 Sinclair-branded stations, further highlighting its expansive market reach and brand strength.

In its Q2 2024 earnings report, HF Sinclair Corporation (NYSE:DINO) beat expectations with earnings per share (EPS) of $0.78, surpassing the expected $0.72. This reflects the company’s robust performance and ability to navigate a challenging economic environment. The company’s refining segment, which is its core business, delivered strong results with a notable increase in utilization rates and improved reliability, driven by reduced operating costs and completion of maintenance activities on time and within budget. HF Sinclair Corporation (NYSE:DINO) operating expenses were reported at $7.29 per throughput barrel, a significant improvement towards its near-term target of $7.25.

In terms of financial health, HF Sinclair Corporation (NYSE:DINO) reported a net income of $152 million for the second quarter and a total adjusted EBITDA of $406 million, underlining its profitability. The company returned $467 million to shareholders through dividends and share repurchases, reaffirming its commitment to generating value for investors. As of June 30, 2024, HF Sinclair Corporation (NYSE:DINO) had a strong liquidity position of $3.4 billion, including a cash balance of $866 million. This financial strength positions the company well to execute its growth strategies and manage its debt effectively, which stood at $2.7 billion with a low net debt-to-cap ratio of 14%.

With its focus on improving refinery utilization, expanding its renewable segment, and optimizing its existing assets, HF Sinclair Corporation (NYSE:DINO) is well-positioned to maintain its momentum and continue delivering value, making it a compelling stock choice within the oil refinery sector.