HF Sinclair (DINO) Moves to Expand with Deal for Industrial Oils Unlimited

Core Insights - HF Sinclair Corporation (NYSE:DINO) is expanding its operations through the acquisition of Industrial Oils Unlimited (IOU) for $38 million, which includes approximately $15 million in working capital, with an expected 2027 EBITDA multiple of about 3.5x after synergies are considered [2][3] - The acquisition of IOU is anticipated to enhance HF Sinclair's position as an innovator in the lubricants and specialty fluids market [3] - HF Sinclair has outlined a capital spending plan of $775 million for the upcoming year, which is about 11% lower than the current year's expected spending, primarily due to reduced maintenance needs [4] - For 2026, HF Sinclair plans to allocate around $225 million to its refining segment, slightly below the projected $240 million for the current year [5] Financial Overview - The acquisition price for IOU is set at $38 million, with a significant portion allocated to working capital [2] - The expected EBITDA multiple for the acquisition is approximately 3.5x for 2027, indicating a potentially favorable valuation [2] - The reduction in capital spending reflects a shift in maintenance needs, with turnaround and catalyst costs projected to decrease from $410 million in 2025 to $325 million in 2026 [4]