HF Sinclair plans to spin off lubricants unit, close Canadian refinery

HF Sinclair Corporation (NYSE: DINO) announced plans to separate its Lubricants & Specialties segment into an independent, publicly traded company and to retire its base oil refining assets in Mississauga, Ontario, according to a press release from the Dallas-based energy company.

The separation is expected to be executed over the next 12 to 18 months in a tax-efficient manner and does not require a shareholder vote. The transaction remains subject to final board approval, IRS private letter ruling, SEC registration, NYSE listing approval, and completion of financing for the new entity. Goldman Sachs & Co. LLC is serving as exclusive financial advisor, and Vinson & Elkins L.L.P. is serving as legal counsel on the transaction.

The retirement of the Mississauga refining assets is expected to be substantially completed during 2027. HF Sinclair said the Lubricants & Specialties business will maintain operations in Ontario, including its R&D laboratory, lubricant blending and packaging, and supply chain and commercial functions. Base oil supply will shift to agreements with two global base oil manufacturers, supplemented by output from HF Sinclair's Tulsa refinery.

"The separation will unlock value by creating two focused businesses with enhanced flexibility to pursue their respective strategic and capital priorities," said Franklin Myers, Chairperson and Chief Executive Officer.

Following the separation, HF Sinclair intends to focus on its refining, midstream, marketing, and renewables operations. The company operates refineries across Kansas, Oklahoma, New Mexico, Wyoming, Washington, and Utah, and supplies more than 1,800 branded Sinclair stations. HF Sinclair said it plans to target a 50% payout ratio through dividends and share repurchases while maintaining an investment-grade financial profile.

HF Sinclair also issued its second-quarter 2026 earnings results separately on the same date.

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