HF Sinclair to keep 2025 capex in line with 2024
HF Sinclair Corp., Dallas, plans to slightly increase its capital spending on growth projects in 2025 but keep its overall capex in line with this year’s forecast.
In a recent filing with the US Securities and Exchange Commission, HF Sinclair leaders said they expect to spend a total of $875 million on capital projects next year, which is the same as this year’s budget. Of that figure, $100 million is being allocated to growth investments, an increase from the $75 million the executives expect to spend this year.
Other planned spending includes:
- $410 million for turnarounds and catalysts, down slightly from the $415 million expected for 2024.
- $240 million for refining projects, an uptick from this year’s $235 million.
- $30 million for marketing work, which is up from $10 million this year.
- $40 million for lubricants and specialties operations, $30 million for midstream projects, and $5 million for renewables work; all level with 2024 spending.
- $20 million for corporate operations, a drop from $65 million this year.
Since acquiring Sinclair Cos. in 2022—when the company was known as HollyFrontier Corp.—the HF Sinclair team has dedicated more of its spending on turnarounds to improve utilization as well as lower operating costs.
“Every turnaround, we’re addressing reliability opportunities. We’re putting in the right capital, the right scope, and we’re getting very predictable on those,” executive vice-president of operations Valerie Pompa said on the company’s third-quarter earnings conference call Oct. 31.
“What’s also working is our technology-driven efficiency improvements. We’re doing a lot of technology improvements to drive efficiency in our operations and maintenance work at the ground floor. And that’s starting to produce dividends.”
For the current quarter, chief executive officer Tim Go and his team are expecting HF Sinclair’s total crude oil throughput to be 565,000-600,000 b/d. The midpoint of that range is down 4% from the third quarter because of planned turnaround work at the company’s El Dorado refinery in Kansas.
Geert De Lombaerde | Senior Editor
A native of Belgium, Geert De Lombaerde has more than two decades of business journalism experience and writes about markets and economic trends for Endeavor Business Media publications Healthcare Innovation, IndustryWeek, FleetOwner, Oil & Gas Journal and T&D World. With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati and later was managing editor and editor of the Nashville Business Journal. Most recently, he oversaw the online and print products of the Nashville Post and reported primarily on Middle Tennessee’s finance sector as well as many of its publicly traded companies.