HF Sinclair forecasts lower CAPEX in 2026 on reduced maintenance costs
HF Sinclair on Tuesday forecast capital expenditure for 2026 at $775 MM, a drop of 11% from its estimated spending for this year, as it expects reduced maintenance costs.
U.S. refiners have been focusing on maintenance activities after operating at breakneck capacity in 2022 following supply shortages stemming from Russia's invasion of Ukraine.
Lower turnarounds and catalysts costs, pegged at $325 MM, below the $410 MM it forecast for 2025, would lead the company's spending trim.
In October, the Dallas, Texas (U.S.)-based independent refiner said it was considering expanding its pipeline systems across the Rocky Mountain and West Coast to bolster fuel supplies in markets including California and Nevada.
Increasing West Coast fuel supply would help ease strain on the region as two refineries accounting for about 20% of California's refining capacity close down. Phillips 66 is winding down its Los Angeles refinery by the end of this year and Valero Energy plans to shut the Benicia refinery next year.
HF Sinclair expects spending at its refining segment for 2026 to be at $225 MM, compared to $240 MM estimated for this year.
The company has seven refineries in the United States with a total oil processing capacity of 678,000 bpd. It has invested increasingly on expanding its renewable diesel capacity and has an annual production capacity of 380 MMgal for the biofuel.
The company had estimated expected capex spending of $875 MM in the current year.
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