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Can HF Sinclair's Go-West Initiative Drive Long-Term Midstream Growth?
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Key Takeaways
HF Sinclair's Go-West Phase 1 targets additional capacity of 35,000 BPD into Nevada by 2029.
HF Sinclair expects Go-West to reach capacity of about 140,000-150,000 BPD as later phases advance.
DINO aims to capture additional volumes from Rockies & Mid-Continent amid tight Western fuel markets.
HF Sinclair Corporation’s (DINO - Free Report) Go-West initiative is designed to expand its midstream operations while strengthening integration across its downstream network. The multiphase project will move additional Rockies supply into Western markets, where long-term supply-demand imbalances create opportunities for incremental infrastructure and transportation capacity. By leveraging its existing pipelines, terminals, tankage and loading facilities, DINO aims to capture greater value from its integrated asset base while increasing exposure to more stable-margin midstream activities. The initiative also complements DINO’s refining, marketing and renewables businesses by enhancing connectivity across key U.S. markets.
Phase 1 targets roughly 35,000 barrels per day (BPD) of additional capacity into Nevada and is scheduled to come online in 2029. Management views this as the starting point, with the broader project reaching about 140,000-150,000 BPD as later phases advance. DINO’s owned midstream infrastructure and strategic proximity to Rockies production position it to capture incremental volumes. Larger phases expand the opportunity to move third-party barrels from the Mid-Continent into PADD 5, adding another avenue for long-term midstream growth.
The longer-term case is supported by supply tightness in Western markets, where refinery closures and continued import dependence have increased the need for reliable fuel transportation. HF Sinclair believes its Go-West project complements other regional infrastructure developments and positions the company to participate in growing demand across Western PADD 4 and PADD 5. As the project scales, higher pipeline utilization, greater third-party activity and tighter integration with DINO’s refining network strengthen midstream growth while supporting resilient through-the-cycle cash flows.
Refiners Expand Midstream for Long-Term Growth
HF Sinclair’s Go-West strategy reflects a broader trend among refiners seeking long-term growth from more stable midstream operations.
Marathon Petroleum Corporation (MPC - Free Report) is following a similar path through its MPLX business, which plans about $2.7 billion of capital spending in 2026, with roughly 90% directed toward growth projects. MPC is expanding its Permian-to-Gulf Coast value chain, long-haul pipelines and processing capacity in the Permian and Marcellus regions, supporting higher volumes and a broader logistics footprint. These investments strengthen Marathon Petroleum’s exposure to fee-based infrastructure and add another growth engine alongside refining.
Phillips 66 (PSX - Free Report) is allocating significant capital to its midstream operation, with $700 million of its 2026 midstream budget earmarked for growth projects. Investments include the Iron Mesa gas processing plant, the Coastal Bend pipeline expansion and additional Gulf Coast fractionation capacity, all designed to expand PSX’s integrated NGL network. The strategy gives Phillips 66 greater connectivity between major production basins and downstream markets while adding infrastructure that supports long-term throughput growth.
DINO’s Price Performance, Valuation & Estimates
HF Sinclair shares have gained 102.9% over the past year compared with the industry’s 106.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, DINO trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 5.78X. This is above the broader industry average of 5.68X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DINO's 2026 earnings has remained constant over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Can HF Sinclair's Go-West Initiative Drive Long-Term Midstream Growth?
Key Takeaways
HF Sinclair Corporation’s (DINO - Free Report) Go-West initiative is designed to expand its midstream operations while strengthening integration across its downstream network. The multiphase project will move additional Rockies supply into Western markets, where long-term supply-demand imbalances create opportunities for incremental infrastructure and transportation capacity. By leveraging its existing pipelines, terminals, tankage and loading facilities, DINO aims to capture greater value from its integrated asset base while increasing exposure to more stable-margin midstream activities. The initiative also complements DINO’s refining, marketing and renewables businesses by enhancing connectivity across key U.S. markets.
Phase 1 targets roughly 35,000 barrels per day (BPD) of additional capacity into Nevada and is scheduled to come online in 2029. Management views this as the starting point, with the broader project reaching about 140,000-150,000 BPD as later phases advance. DINO’s owned midstream infrastructure and strategic proximity to Rockies production position it to capture incremental volumes. Larger phases expand the opportunity to move third-party barrels from the Mid-Continent into PADD 5, adding another avenue for long-term midstream growth.
The longer-term case is supported by supply tightness in Western markets, where refinery closures and continued import dependence have increased the need for reliable fuel transportation. HF Sinclair believes its Go-West project complements other regional infrastructure developments and positions the company to participate in growing demand across Western PADD 4 and PADD 5. As the project scales, higher pipeline utilization, greater third-party activity and tighter integration with DINO’s refining network strengthen midstream growth while supporting resilient through-the-cycle cash flows.
Refiners Expand Midstream for Long-Term Growth
HF Sinclair’s Go-West strategy reflects a broader trend among refiners seeking long-term growth from more stable midstream operations.
Marathon Petroleum Corporation (MPC - Free Report) is following a similar path through its MPLX business, which plans about $2.7 billion of capital spending in 2026, with roughly 90% directed toward growth projects. MPC is expanding its Permian-to-Gulf Coast value chain, long-haul pipelines and processing capacity in the Permian and Marcellus regions, supporting higher volumes and a broader logistics footprint. These investments strengthen Marathon Petroleum’s exposure to fee-based infrastructure and add another growth engine alongside refining.
Phillips 66 (PSX - Free Report) is allocating significant capital to its midstream operation, with $700 million of its 2026 midstream budget earmarked for growth projects. Investments include the Iron Mesa gas processing plant, the Coastal Bend pipeline expansion and additional Gulf Coast fractionation capacity, all designed to expand PSX’s integrated NGL network. The strategy gives Phillips 66 greater connectivity between major production basins and downstream markets while adding infrastructure that supports long-term throughput growth.
DINO’s Price Performance, Valuation & Estimates
HF Sinclair shares have gained 102.9% over the past year compared with the industry’s 106.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, DINO trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 5.78X. This is above the broader industry average of 5.68X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DINO's 2026 earnings has remained constant over the past seven days.
Image Source: Zacks Investment Research
DINO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.