HollyFrontier Corp. said Monday it has set a new $1 billion share repurchase program, to replace the existing authorization that had $281 million remaining. Based on Friday’s stock closing price of $52.54, that would allow the petroleum refiner to buy back up to 12% of the shares outstanding. The company said it plans to build a new renewable diesel unit at its Artesia refinery, with a production capacity of 125 million gallons a year and an estimated capital cost of $350 million. The RDU will allow HollyFrontier to process soybean oil and other renewable feedstocks into renewable diesel. The RDU, which will be funded with cash on hand, is expected to be completed in the first quarter of 2022. Last week, the company said it raised its quarterly dividend by 6.1% to 35 cents a share, from 33 cents. The company expects to review the dividend annually over the next three years with a target to grow the dividend by 5% a year. The stock, which was still inactive in premarket trading, has rallied 18.5% over the past three months, while the S&P 500 has gained 8.0%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
HollyFrontier OKs new $1 billion stock buyback program, to build new renewable diesel unit
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