Hollyfrontier says to convert cheyenne refinery to renewable diesel production

Hollyfrontier corp - board approved a plan to convert cheyenne refinery to renewable diesel production.hollyfrontier corp - board approved plan to construct a pre-treatment unit located at artesia refinery.hollyfrontier corp - co expected to have capacity to produce over 200 million gallons per year of renewable diesel.hollyfrontier corp - expects to invest $650-$750 million in renewables business; expected irr of 20-30%.hollyfrontier corp - will cease petroleum refining, reducing workforce at cheyenne refinery.hollyfrontier - over q2, q3, co expects to record non-cash charges of $225-$275 million for impairment.hollyfrontier - over next 12 months, anticipates pre-tax costs of $25-$45 million for decommissioning assets.hollyfrontier - over next 12 months, anticipates $5-$7 million for severance obligations.hollyfrontier corp - expects to maintain 2020 total capex guidance of $525-$625 million.hollyfrontier - conversion decision primarily based on expectation that future fcf generation in cheyenne would be challenged.
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