A Atanas H. Atanasov HF Sinclair Corporation Executive Vice President and
Chief Financial Officer
Yeah. This is Atanas. As Tim indicated and I indicated earlier, were not going to comment on the specifics of
the transaction as weve just made the offer and its under obviously, under obviously on the negotiation. But we believe that over time, it will create value to our shareholders. And also well point you that, as Tim indicated
in his remarks, cash flow is a consideration for us as well.
A Timothy Go HF Sinclair Corporation President and Chief
Operating Officer
Yeah. Ryan, I would just mention, I put out three near-term priorities in my prepared remarks. We believe buying in the
HEP business addresses all three of our priorities that are consistent; simplifying, integrating and cash flow. Thats why were doing this.
[
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Operator
And our next question is from Jason Gabelman with TD Cowen. Your line is open.
Q Jason Gabelman TD Cowen Director
Hi, good morning. Thanks for taking my questions. I want to go back to shareholder returns for a second. Two kind of related questions on that. First, I know
the Sinclair family still owns a decent chunk that gives them two Board seats. Any indication if they want to hold continue to hold the two seats are on and how you think about buybacks with that with those levels of ownership that
they would need. And then somewhat related to that, you had previously guided to a 50% payout ratio of cash starting in 2Q. Does that still hold in this environment, or are you thinking about that differently? Thanks.
A Timothy Go HF Sinclair Corporation President and Chief Operating Officer
Thanks, Jason. Let me take your first question on the family. Obviously, we cant speak for the family. We dont know what their intent is, and we
wouldnt be able to speak for it. But what I can tell you is this has been published in the documents that when or if their share count drops below 15%, their two seats on the Board goes down to one seat on the board. So just so you know that
is built into the deal. And Ill turn it over to Atanas to talk about the capital return question.
A Atanas H. Atanasov
HF Sinclair Corporation Executive Vice President and Chief Financial Officer
Yeah. Jason, I guess the short answer is we
still endorse our capital return strategy with our payout ratio target of 50%. We dont guide on pace, obviously, with this transaction ongoing. And on the negotiation, there are periods were blacked out, but no change to our overall
strategy and go with 50%.
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