Core Insights - Three stocks are highlighted with a buy rank and strong value characteristics for investors to consider on October 6th [1][2][3] Group 1: Elanco Animal Health Incorporated (ELAN) - Elanco has a Zacks Rank 1 and a 4.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 23.42, compared to 24.73 for the S&P 500 [1] - Elanco possesses a Value Score of B [1] Group 2: HF Sinclair Corporation (DINO) - HF Sinclair also carries a Zacks Rank 1, with a 24.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 14.46, significantly lower than the S&P 500's 24.73 [2] - HF Sinclair has a Value Score of B [2] Group 3: Embecta Corp. (EMBC) - Embecta holds a Zacks Rank 1, with a 4.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 4.89, which is much lower than the S&P 500's 24.73 [3] - Embecta possesses a Value Score of A [3]

Core Insights - Three stocks with strong income characteristics and buy rank are highlighted for investors to consider on October 6th [1][2]. Group 1: Okeanis Eco Tankers Corp. (ECO) - Okeanis Eco Tankers Corp. has seen a 13.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]. - The company has a dividend yield of 9.5%, significantly higher than the industry average of 1.2% [1]. Group 2: TPG Inc. (TPG) - TPG Inc. has experienced a 15.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]. - The company offers a dividend yield of 4%, compared to the industry average of 2.9% [2]. Group 3: HF Sinclair Corporation (DINO) - HF Sinclair Corporation has seen a substantial 24.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]. - The company has a dividend yield of 3.9%, which is above the industry average of 2.8% [3].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: HF Sinclair (DINO) - HF Sinclair currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, HF Sinclair shares increased by 2.76%, while the Zacks Oil and Gas - Refining and Marketing industry rose by 2.87% [5] - In a longer timeframe, the monthly price change for DINO is 6.1%, outperforming the industry's 5.38% [5] - Over the last quarter, HF Sinclair shares have risen by 22.15%, and by 18.45% over the past year, compared to the S&P 500's increases of 9.31% and 17.01%, respectively [6] Trading Volume - The average 20-day trading volume for DINO is 2,277,526 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, four earnings estimates for DINO have been revised upwards, while none have been lowered, boosting the consensus estimate from $2.54 to $3.57 [9] - For the next fiscal year, four estimates have increased, with one downward revision noted [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, HF Sinclair is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Core Viewpoint - HF Sinclair has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - HF Sinclair's rising earnings estimates reflect an improvement in its underlying business, likely leading to an increase in stock price [5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, HF Sinclair is expected to earn $3.57 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 50.9% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - HF Sinclair's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - HF Sinclair Corporation is set to announce its financial results for the quarter ending September 30, 2025, on October 30, 2025, before the market opens [1] Group 1 - The announcement will be made prior to the opening of trading on both the NYSE and NYSE Texas [1] - A webcast conference is scheduled for October 30, 2025, at 9:30 a.m. Eastern time to discuss the financial results [1] - The webcast can be accessed online, and an audio archive will be available afterward [1]

Core Insights - HF Sinclair Corporation's stock price has increased nearly 100% since Liberation Day, driven by strong refining performance in the Central and Northwest regions of the US [1] Company Performance - The significant rise in HF Sinclair's stock price is attributed to robust refining operations, indicating a positive trend in the company's financial health and operational efficiency [1] Market Context - The performance of HF Sinclair is reflective of broader trends in the refining sector, particularly in specific geographic regions of the US, suggesting potential growth opportunities within the industry [1]

Core Viewpoint - HF Sinclair Corporation has announced the final results and expiration of its cash tender offer to purchase outstanding notes, indicating a strategic move to manage its debt obligations and optimize its capital structure [1][4]. Summary by Relevant Sections Tender Offer Details - The tender offer was made to purchase all outstanding notes, with specific details provided in the Offer to Purchase dated August 11, 2025 [1][4]. - The aggregate principal amounts of the notes tendered include $36.687 million for the 5.875% Senior Notes due 2026 and $163.843 million for the 6.375% Senior Notes due 2027 [3][2]. Financial Implications - The Corporation expects to accept for payment all validly tendered notes on August 20, 2025, which will include accrued and unpaid interest from the last interest payment date [5]. - The tender offer is contingent upon the completion of a concurrent public offering of senior notes expected to occur on August 18, 2025 [5]. Company Overview - HF Sinclair Corporation is an independent energy company based in Dallas, Texas, producing and marketing high-value light products such as gasoline, diesel fuel, and renewable diesel [9]. - The company operates refineries across several states and provides transportation, storage, and throughput services to the petroleum industry, marketing its refined products primarily in the Southwest U.S. and neighboring regions [9].

Core Viewpoint - HF Sinclair Corporation has announced the pricing terms for its cash tender offer to purchase all outstanding notes, with all other terms remaining unchanged as per the Offer to Purchase dated August 11, 2025 [1][2]. Tender Offer Details - The consideration for each series of notes accepted for purchase is determined by a fixed spread over the yield based on U.S. Treasury Securities [2]. - The tender offer will remain open until 5:00 p.m. New York City time on August 15, 2025, unless extended or terminated [6]. - Settlement for all validly tendered notes is expected on August 20, 2025 [7]. Notes Information - The tender offer includes: - 5.875% Senior Notes due 2026 with an aggregate principal amount of $153,585,000, a reference yield of 4.226%, and a tender offer consideration of $1,004.12 [3]. - 6.375% Senior Notes due 2027 with an aggregate principal amount of $249,875,000, a reference yield of 4.035%, and a tender offer consideration of $1,011.63 [3]. Company Overview - HF Sinclair Corporation is an independent energy company that produces and markets high-value light products, including gasoline, diesel fuel, and renewable diesel [10]. - The company operates refineries in multiple states and provides transportation, storage, and throughput services to the petroleum industry [10]. - HF Sinclair markets its refined products primarily in the Southwest U.S. and has a significant presence in the renewable diesel market [10].

Core Viewpoint - HF Sinclair Corporation has initiated a cash tender offer to purchase all outstanding notes, indicating a strategic move to manage its debt obligations and optimize its capital structure [1][3]. Tender Offer Details - The tender offer includes various series of senior notes, with specific amounts outstanding such as $153.585 million for the 5.875% Senior Notes due 2026 and $249.875 million for the 6.375% Senior Notes due 2027 [2]. - The tender offer will expire at 5:00 p.m. New York City time on August 15, 2025, unless extended or terminated earlier [5]. - Holders of the notes must validly tender their notes before the expiration time to receive the tender offer consideration [5][7]. Financial Considerations - The tender offer consideration will be determined based on the fixed spread over the yield of the applicable U.S. Treasury Security, with calculations made by the Lead Dealer Managers on the price determination date [6]. - In addition to the tender offer consideration, accrued and unpaid interest will be paid in cash on all validly tendered notes accepted for purchase [7]. Conditions and Management - The tender offer is subject to certain conditions, including the receipt of sufficient gross proceeds from a concurrent public offering of senior debt securities [3][11]. - The corporation may waive conditions or extend the tender offer at its discretion [4]. Company Overview - HF Sinclair Corporation is an independent energy company that produces and markets high-value light products, operating refineries across several states and providing various petroleum-related services [14]. - The company markets its refined products primarily in the Southwest U.S. and has a significant presence in the renewable diesel market [14].

PART I - FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's Q2 2025 net income rose to $208 million, while H1 2025 net income fell to $204 million, with total assets at $16.84 billion [Consolidated Financial Statements (Summary)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Summary)) Total assets grew to $16.84 billion, with Q2 2025 net income rising to $210 million while H1 2025 net income declined significantly Consolidated Balance Sheet Summary (in millions) | Balance Sheet Items | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $874 | $800 | | Total current assets | $5,173 | $5,014 | | **Total assets** | **$16,843** | **$16,643** | | Total current liabilities | $2,841 | $3,043 | | Long-term debt, net | $2,677 | $2,288 | | **Total liabilities** | **$7,495** | **$7,297** | | **Total equity** | **$9,348** | **$9,346** | Consolidated Income Statement Summary (in millions, except per share data) | Income Statement Items | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales and other revenues | $6,784 | $7,846 | $13,154 | $14,873 | | Income from operations | $275 | $197 | $356 | $609 | | **Net income attributable to HF Sinclair stockholders** | **$208** | **$152** | **$204** | **$466** | | Diluted EPS | $1.10 | $0.79 | $1.07 | $2.38 | Consolidated Cash Flow Summary (Six Months Ended June 30, in millions) | Cash Flow Items | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $498 | $541 | | Net cash used for investing activities | ($193) | ($173) | | Net cash used for financing activities | ($239) | ($851) | | **Net change in cash** | **$74** | **($488)** | [Note 3: Revenues](index=13&type=section&id=Note%203%3A%20Revenues) Q2 2025 revenues fell to $6.78 billion, driven by lower transportation fuel sales, with the U.S. Mid-Continent as the largest market Disaggregated Revenues by Type (in millions) | Revenue Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Transportation fuels | $5,344 | $6,102 | $10,305 | $11,657 | | Lubricants and specialty products | $583 | $644 | $1,180 | $1,258 | | Asphalt, fuel oil and other | $393 | $569 | $712 | $1,052 | | Excess crude oil revenues | $345 | $437 | $728 | $704 | | **Total sales and other revenues** | **$6,784** | **$7,846** | **$13,154** | **$14,873** | Refined Product Revenues by Market - Q2 2025 (in millions) | Market | Revenue | | :--- | :--- | | Mid-Continent | $2,221 | | Rocky Mountains | $1,370 | | Northwest | $1,290 | | Southwest | $919 | | Other | $520 | - The company has future performance obligations for minimum volumes under long-term contracts, including **84 million barrels** of refined product sales through 2035 and **$59 million** in minimum midstream revenues through 2033[58](index=58&type=chunk) [Note 11: Debt](index=20&type=section&id=Note%2011%3A%20Debt) The company refinanced its debt, issuing $1.4 billion in new notes and entering a new $2.0 billion credit facility in early 2025 - On April 3, 2025, the company terminated its existing credit agreements and entered into a new **$2.0 billion senior unsecured revolving credit facility** maturing in 2030[85](index=85&type=chunk) - In January 2025, the company issued **$1.4 billion of new senior notes** and used a portion of the proceeds to tender for and redeem **$647 million** and **$349 million** of existing notes, respectively[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) Total Debt Summary (in millions) | Debt Component | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Senior Notes | $2,704 | $2,300 | | Total Credit Agreements | $0 | $350 | | **Total debt at face value** | **$2,704** | **$2,650** | | Unamortized discount and costs | ($27) | ($12) | | **Total debt** | **$2,677** | **$2,638** | [Note 13: Stockholders' Equity](index=25&type=section&id=Note%2013%3A%20Stockholders%27%20Equity) A new $1.0 billion share repurchase program was initiated, with $50 million in shares repurchased in H1 2025 and a quarterly dividend declared - A new **$1.0 billion share repurchase program** was approved in May 2024, with **$749 million remaining** authorized for repurchases as of June 30, 2025[112](index=112&type=chunk)[113](index=113&type=chunk) Share Repurchases (in millions, except share data) | Period | Number of Shares Repurchased | Cash Paid | | :--- | :--- | :--- | | Three Months Ended June 30, 2025 | 1,329,725 | $50 | | Six Months Ended June 30, 2025 | 1,329,725 | $50 | | Six Months Ended June 30, 2024 | 9,279,177 | $537 | - On July 31, 2025, the Board of Directors declared a regular quarterly dividend of **$0.50 per share**[114](index=114&type=chunk) [Note 15: Commitments and Contingencies](index=27&type=section&id=Note%2015%3A%20Commitments%20and%20Contingencies) The company settled a major environmental case for its Navajo refinery and received a favorable court ruling on RFS exemption petitions - On May 5, 2025, a consent decree was entered to resolve alleged Clean Air Act violations at the Artesia refinery, requiring a **$34 million civil penalty** and an estimated **$137 million in injunctive relief**[129](index=129&type=chunk)[130](index=130&type=chunk) - On July 26, 2024, the D.C. Circuit Court vacated the EPA's denial of the company's small refinery exemption petitions for 2016, 2018, 2019, and 2020, finding the denial unlawful and remanding the petitions to the EPA[124](index=124&type=chunk) [Note 16: Segment Information](index=28&type=section&id=Note%2016%3A%20Segment%20Information) The Refining segment drove Q2 2025 profitability with $166 million in operating income, while the Renewables segment reported a loss Segment Income (Loss) from Operations (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Refining | $166 | $65 | $136 | $377 | | Renewables | ($4) | ($15) | ($43) | ($54) | | Marketing | $18 | $9 | $38 | $18 | | Lubricants & Specialties | $31 | $74 | $94 | $139 | | Midstream | $91 | $90 | $181 | $175 | | **Total Income from Operations** | **$275** | **$197** | **$356** | **$609** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved Q2 2025 results to refining margins and discusses liquidity, capital plans, and regulatory impacts [Overview](index=32&type=section&id=Overview) Q2 2025 net income rose to $208 million on better refining margins, while the company analyzes impacts of new tax credit legislation - Q2 2025 net income attributable to stockholders was **$208 million**, compared to $152 million in Q2 2024, while H1 2025 net income was **$204 million**, compared to $466 million in H1 2024[150](index=150&type=chunk) - The Marketing segment added **55 net new branded sites** during Q2 2025 and is expected to grow the number of sites by approximately 10% annually[153](index=153&type=chunk) - The "One Big Beautiful Bill Act" (OBBBA) was signed into law on July 4, 2025, extending the **Producer's Tax Credit (Section 45Z) through 2029**[158](index=158&type=chunk) - Compliance costs for the Renewable Fuel Standard (RFS) increased, with **RINs costs totaling $180 million** in Q2 2025, up from $108 million in Q2 2024[159](index=159&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q2 2025 net income rose to $208 million on higher refinery margins, but H1 2025 income fell due to inventory valuation adjustments Financial Performance vs. Prior Year | Metric | Q2 2025 vs Q2 2024 | H1 2025 vs H1 2024 | | :--- | :--- | :--- | | Net Income Attributable to Stockholders | +$56M (+37%) | -$262M (-56%) | | Sales and other revenues | -$1,062M (-14%) | -$1,719M (-12%) | | Income from operations | +$78M (+40%) | -$253M (-42%) | - The increase in Q2 2025 net income was principally driven by higher adjusted refinery gross margins, which increased to **$16.50 per produced barrel** sold from $11.33 in Q2 2024[189](index=189&type=chunk)[193](index=193&type=chunk) - Lower of cost or market inventory valuation adjustments **decreased pre-tax earnings by $148 million** in Q2 2025, compared to a $3 million increase in Q2 2024[189](index=189&type=chunk)[192](index=192&type=chunk) - The decrease in H1 2025 net income was principally driven by a **$31 million charge from inventory valuation adjustments**, compared to a $223 million benefit in H1 2024[200](index=200&type=chunk)[203](index=203&type=chunk) [Segment Operating Data](index=39&type=section&id=Segment%20Operating%20Data) The Refining segment's adjusted gross margin rose to $16.50/bbl in Q2 2025, while the Renewables segment's margin decreased Refining Segment - Adjusted Gross Margin per Barrel | Region | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Mid-Continent | $15.52 | $8.39 | $11.61 | $9.41 | | West | $17.15 | $13.50 | $13.80 | $13.93 | | **Consolidated** | **$16.50** | **$11.33** | **$12.91** | **$11.99** | Renewables Segment - Adjusted Gross Margin per Gallon | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Adjusted renewables gross margin | $0.36 | $0.44 | $0.27 | $0.30 | Marketing Segment - Key Metrics | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Number of branded sites | 1,719 | 1,564 | 1,719 | 1,564 | | Adjusted marketing gross margin/gallon | $0.10 | $0.06 | $0.11 | $0.07 | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity of $2.9 billion and plans $875 million in 2025 capital spending while returning cash to shareholders - Total liquidity was approximately **$2.9 billion** at June 30, 2025, consisting of $0.9 billion in cash and cash equivalents and $2.0 billion available under the HF Sinclair Credit Agreement[222](index=222&type=chunk) Expected 2025 Cash Spending (in millions) | Category | Expected Spending | | :--- | :--- | | Refining Capital | $240 | | Renewables Capital | $5 | | Marketing Capital | $30 | | Lubricants & Specialties Capital | $40 | | Midstream Capital | $30 | | Corporate Capital | $20 | | Turnarounds and catalyst | $410 | | **Total Sustaining** | **$775** | | Growth capital | $100 | | **Total** | **$875** | - Net cash from operating activities was **$498 million for H1 2025**, a decrease from $541 million in H1 2024, primarily due to higher turnaround expenditures ($284 million vs. $169 million)[225](index=225&type=chunk) - Financing activities in H1 2025 included **$190 million in dividend payments**, **$50 million in stock repurchases**, and net proceeds of $387 million from the issuance and redemption of senior notes[232](index=232&type=chunk) [Risk Management](index=47&type=section&id=Risk%20Management) The company uses derivative instruments to manage commodity price and foreign currency risks, with a potential $6 million loss on a 10% price shift - The company's primary market risks are commodity price risk and foreign currency risk, which are managed periodically with derivative contracts[240](index=240&type=chunk)[241](index=241&type=chunk) Outstanding Derivative Notional Volumes as of June 30, 2025 | Contract Description | Total Outstanding Notional | | :--- | :--- | | NYMEX futures (WTI) - short | 970,000 Barrels | | Forward crude oil contracts - long | 640,000 Barrels | | Forward crude oil contracts - short | 368,000 Barrels | | Foreign currency forward contracts | 522,000,000 Canadian dollar | | Forward commodity contracts (platinum) | 34,628 Troy ounces | - A hypothetical 10% increase in underlying commodity prices would result in a derivative fair value **loss of $6 million** as of June 30, 2025[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section cross-references the 'Risk Management' discussion for details on the company's market risk exposures - This section refers to the "Risk Management" section under "Management's Discussion and Analysis of Financial Condition and Results of Operations" for disclosures about market risk[258](index=258&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[259](index=259&type=chunk) - **No changes occurred** during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[260](index=260&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company finalized a consent decree for the Navajo refinery and received a favorable court ruling on small refinery exemption petitions - A settlement was reached with the EPA, DOJ, and NMED regarding the Navajo refinery, where the company will pay a **$34 million civil penalty** and implement injunctive relief measures estimated to cost **$137 million**[266](index=266&type=chunk)[267](index=267&type=chunk) - The company is engaged in discussions with regulators regarding compliance at its Puget Sound Refinery, but no penalties have been demanded, and the outcome is not yet predictable[268](index=268&type=chunk)[270](index=270&type=chunk) - On July 26, 2024, the D.C. Circuit Court issued a favorable decision, **vacating the EPA's denial** of the company's small refinery exemption petitions and remanding them to the EPA for a new determination[274](index=274&type=chunk) [Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - There have been **no material changes** in the company's risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[277](index=277&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1.3 million shares for $50 million in Q2 2025, with $749 million remaining under its repurchase authorization Common Stock Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 0 | N/A | | May 2025 | 616,015 | $36.20 | | June 2025 | 713,710 | $38.81 | | **Total** | **1,329,725** | **N/A** | - As of June 30, 2025, the company had **$749 million remaining** under its $1.0 billion May 2024 Share Repurchase Program[278](index=278&type=chunk) [Other Information](index=57&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[279](index=279&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents and required certifications