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HF Sinclair Corp

HF Sinclair Corporation Reports 2024 Third Quarter Results and Announces Regular Cash Dividend

  • Reported Net loss attributable to HF Sinclair stockholders of $(75.9) million, or $(0.40) per diluted share, and adjusted net income of $96.5 million, or $0.51 per diluted share, for the third quarter
  • Reported EBITDA of $98.6 million and Adjusted EBITDA of $316.0 million for the third quarter
  • Returned $221.8 million to stockholders through dividends and share repurchases in the third quarter
  • Announced a regular quarterly dividend of $0.50 per share

DALLAS--(BUSINESS WIRE)--Oct. 31, 2024-- HF Sinclair Corporation (NYSE: DINO) (“HF Sinclair” or the “Company”) today reported third quarter Net loss attributable to HF Sinclair stockholders of $(75.9) million, or $(0.40) per diluted share, for the quarter ended September 30, 2024, compared to $790.9 million, or $4.23 per diluted share, for the quarter ended September 30, 2023. Excluding the adjustments shown in the accompanying earnings release table, adjusted net income attributable to HF Sinclair stockholders for the third quarter of 2024 was $96.5 million, or $0.51 per diluted share, compared to $760.4 million, or $4.06 per diluted share, for the third quarter of 2023.

HF Sinclair’s Chief Executive Officer, Tim Go, commented, “We are pleased with our financial and operational performance, supported by strong and consistent earnings in our Marketing, Midstream and Lubricants & Specialties business segments. We returned $222 million in cash to shareholders in the third quarter and today announced a $0.50 quarterly dividend. Looking forward, we remain committed to safe and reliable operations, and we believe the diversification of our businesses positions us to generate through-cycle cash flows and continued returns to our shareholders.”

Refining segment loss before interest and income taxes was $(212.1) million for the third quarter of 2024 compared to income of $916.1 million for the third quarter of 2023. The segment reported EBITDA of $(88.8) million for the third quarter of 2024 compared to $1,034.2 million for the third quarter of 2023. Excluding the Lower of cost or market inventory valuation adjustments, the segment reported Adjusted EBITDA in the third quarter of 2024 of $110.0 million compared to $1,007.4 million in the third quarter of 2023. This decrease was principally driven by lower adjusted refinery gross margins in both the West and Mid-Continent regions as a result of high global supply of transportation fuels across the industry, which were partially offset by higher refined product sales volumes. Adjusted refinery gross margin was $10.79 per produced barrel sold, a 59% decrease compared to $26.27 for the third quarter of 2023. Crude oil charge averaged 607,010 barrels per day (“BPD”) for the third quarter of 2024 compared to 601,930 BPD for the third quarter of 2023. This increase was primarily a result of improved reliability and decreased turnaround activities at our refineries compared to the third quarter of 2023.

Renewables segment loss before interest and income taxes was $(23.1) million for the third quarter of 2024, compared to income of $3.1 million for the third quarter of 2023. The segment reported EBITDA of $(1.7) million for the third quarter of 2024 compared to $22.0 million for the third quarter of 2023. Excluding the Lower of cost or market inventory valuation adjustments, the segment reported Adjusted EBITDA of $1.8 million in the third quarter of 2024 compared to $5.0 million in the third quarter of 2023. This decrease was primarily due to lower indicator margins despite increased sales volumes and feedstock optimization in the third quarter of 2024. Total sales volumes were 69 million gallons for the third quarter of 2024 as compared to 55 million gallons for the third quarter of 2023.

Marketing segment income before interest and income taxes was $15.6 million for the third quarter of 2024 compared to $15.1 million for the third quarter of 2023. The segment reported EBITDA of $22.1 million for the third quarter of 2024 compared to $21.1 million for the third quarter of 2023. This increase was primarily driven by higher margins in the third quarter of 2024. Total branded fuel sales volumes were 365 million gallons for the third quarter of 2024 as compared to 398 million gallons for the third quarter of 2023.

Lubricants & Specialties segment income before interest and income taxes was $54.6 million for the third quarter of 2024, compared to $95.2 million for the third quarter of 2023. The segment reported EBITDA of $76.2 million for the third quarter of 2024 compared to $117.5 million in the third quarter of 2023. This decrease was driven by a $26.7 million FIFO charge from consumption of higher priced feedstock inventory in the third quarter of 2024 compared to a $29.9 million FIFO benefit in the third quarter of 2023, partially offset by increased sales volumes, sales mix optimization and base oil integration in the third quarter of 2024.

Midstream segment income before interest and income taxes was $80.5 million for the third quarter of 2024 compared to $78.2 million for the third quarter of 2023. The segment reported EBITDA of $96.5 million for the third quarter of 2024 compared to $96.6 million for the third quarter of 2023. Excluding certain items, the segment reported Adjusted EBITDA of $111.6 million for the third quarter of 2024 compared to $100.9 million for the third quarter of 2023. This increase was primarily driven by higher revenues from increased volumes and higher tariffs in the third quarter of 2024.

For the third quarter of 2024, net cash provided by operations totaled $707.6 million. At September 30, 2024, the Company’s Cash and cash equivalents totaled $1,229.5 million, a $124.3 million decrease over Cash and cash equivalents of $1,353.7 million at December 31, 2023. During the third quarter of 2024, the Company announced and paid a regular dividend of $0.50 per share to stockholders totaling $95.3 million and spent $126.5 million on share repurchases. Additionally, at September 30, 2024, the Company’s consolidated debt was $2,636.8 million.

HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.50 per share, payable on December 4, 2024 to holders of record of common stock on November 21, 2024.

The Company has scheduled a webcast conference call for today, October 31, 2024, at 9:30 AM Eastern Time to discuss third quarter financial results. This webcast may be accessed at https://events.q4inc.com/attendee/465594914. An audio archive of this webcast will be available using the above noted link through November 14, 2024.

HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high-value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and lubricants and specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. HF Sinclair provides petroleum product and crude oil transportation, terminalling, storage and throughput services to our refineries and the petroleum industry. HF Sinclair markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states and supplies high-quality fuels to more than 1,500 branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in New Mexico. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and export products to more than 80 countries.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in the Company's filings with the Securities and Exchange Commission (the “SEC”). Forward-looking statements use words such as “anticipate,” “project,” “will,” “expect,” “plan,” “goal,” “forecast,” “strategy,” “intend,” “should,” “would,” “could,” “believe,” “may,” and similar expressions and statements regarding the Company's plans and objectives for future operations. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company cannot assure you that the Company's expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the demand for and supply of feedstocks, crude oil and refined products, including uncertainty regarding the increasing societal expectations that companies address climate change and greenhouse gas emissions; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to reductions in demand, accidents, unexpected leaks or spills, unscheduled shutdowns, infection in the workforce, weather events, global health events, civil unrest, expropriation of assets, and other economic, diplomatic, legislative, or political events or developments, terrorism, cyberattacks, vandalism or other catastrophes or disruptions affecting the Company’s operations, production facilities, machinery, pipelines and other logistics assets, equipment, or information systems, or any of the foregoing of the Company’s suppliers, customers, or third-party providers, and any potential asset impairments resulting from, or the failure to have adequate insurance coverage for or receive insurance recoveries from, such actions; the effects of current and/or future governmental and environmental regulations and policies, including compliance with existing, new and changing environmental and health and safety laws and regulations, related reporting requirements and pipeline integrity programs; the availability and cost of financing to the Company; the effectiveness of the Company’s capital investments and marketing strategies; the Company’s efficiency in carrying out and consummating construction projects, including the Company’s ability to complete announced capital projects on time and within capital guidance; the Company’s ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire complementary assets or businesses to the Company's existing assets and businesses on acceptable terms and to integrate any existing or future acquired operations and realize the expected synergies of any such transaction on the expected timeline; the possibility of vandalism or other disruptive activity, or terrorist or cyberattacks and the consequences of any such activities or attacks; uncertainty regarding the effects and duration of global hostilities, including shipping disruptions in the Red Sea, the Israel-Gaza and Hezbollah conflict, the Russia-Ukraine war, and any associated military campaigns which may disrupt crude oil supplies and markets for the Company’s refined products and create instability in the financial markets that could restrict the Company’s ability to raise capital; general economic conditions, including economic slowdowns caused by a local or national recession or other adverse economic condition, such as periods of increased or prolonged inflation; limitations on the Company’s ability to make future dividend payments or effectuate share repurchases due to market conditions and corporate, tax, regulatory and other considerations; and other business, financial, operational and legal risks. Additional information on risks and uncertainties that could affect our business prospects and performance is provided in the reports filed by us with the SEC. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

RESULTS OF OPERATIONS

 

Financial Data (all information in this release is unaudited)

 

 

Three Months Ended September 30,

 

Change from 2023

 

 

2024

 

 

 

2023

 

 

Change

 

Percent

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Sales and other revenues

$

7,207,140

 

 

$

8,905,471

 

 

$

(1,698,331

)

 

(19

)%

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of sales: (1)

 

 

 

 

 

 

 

Cost of materials and other (2)

 

6,158,294

 

 

 

6,935,650

 

 

 

(777,356

)

 

(11

)%

Lower of cost or market inventory valuation adjustments

 

202,307

 

 

 

(43,848

)

 

 

246,155

 

 

(561

)%

Operating expenses

 

629,573

 

 

 

622,532

 

 

 

7,041

 

 

1

%

 

 

6,990,174

 

 

 

7,514,334

 

 

 

(524,160

)

 

(7

)%

Selling, general and administrative expenses (1)

 

118,014

 

 

 

124,213

 

 

 

(6,199

)

 

(5

)%

Depreciation and amortization

 

209,716

 

 

 

195,562

 

 

 

14,154

 

 

7

%

Asset impairments

 

9,984

 

 

 

—

 

 

 

9,984

 

 

100

%

Total operating costs and expenses

 

7,327,888

 

 

 

7,834,109

 

 

 

(506,221

)

 

(6

)%

Income (loss) from operations

 

(120,748

)

 

 

1,071,362

 

 

 

(1,192,110

)

 

(111

)%

Other income (expense):

 

 

 

 

 

 

 

Earnings of equity method investments

 

8,151

 

 

 

3,009

 

 

 

5,142

 

 

171

%

Interest income

 

18,309

 

 

 

24,577

 

 

 

(6,268

)

 

(26

)%

Interest expense

 

(40,396

)

 

 

(48,686

)

 

 

8,290

 

 

(17

)%

Gain on foreign currency transactions

 

1,401

 

 

 

860

 

 

 

541

 

 

63

%

Gain on sale of assets and other

 

1,936

 

 

 

8,954

 

 

 

(7,018

)

 

(78

)%

 

 

(10,599

)

 

 

(11,286

)

 

 

687

 

 

(6

)%

Income (loss) before income taxes

 

(131,347

)

 

 

1,060,076

 

 

 

(1,191,423

)

 

(112

)%

Income tax expense (benefit)

 

(57,266

)

 

 

235,015

 

 

 

(292,281

)

 

(124

)%

Net income (loss)

 

(74,081

)

 

 

825,061

 

 

 

(899,142

)

 

(109

)%

Less net income attributable to noncontrolling interest

 

1,863

 

 

 

34,139

 

 

 

(32,276

)

 

(95

)%

Net income (loss) attributable to HF Sinclair stockholders

$

(75,944

)

 

$

790,922

 

 

$

(866,866

)

 

(110

)%

Earnings (loss) per share attributable to HF Sinclair stockholders:

 

 

 

 

 

 

 

Basic

$

(0.40

)

 

$

4.23

 

 

$

(4.63

)

 

(109

)%

Diluted

$

(0.40

)

 

$

4.23

 

 

$

(4.63

)

 

(109

)%

Cash dividends declared per common share

$

0.50

 

 

$

0.45

 

 

$

0.05

 

 

11

%

Average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

189,840

 

 

 

185,456

 

 

 

4,384

 

 

2

%

Diluted

 

189,840

 

 

 

185,456

 

 

 

4,384

 

 

2

%

 

 

 

 

 

 

 

 

EBITDA

$

98,593

 

 

$

1,245,608

 

 

$

(1,147,015

)

 

(92

)%

Adjusted EBITDA

$

316,004

 

 

$

1,206,491

 

 

$

(890,487

)

 

(74

)%

 

Nine Months Ended September 30,

 

Change from 2023

 

 

2024

 

 

 

2023

 

 

Change

 

Percent

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Sales and other revenues

$

22,080,116

 

 

$

24,304,259

 

 

$

(2,224,143

)

 

(9

)%

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of sales: (1)

 

 

 

 

 

 

 

Cost of materials and other (2)

 

18,835,319

 

 

 

19,313,312

 

 

 

(477,993

)

 

(2

)%

Lower of cost or market inventory valuation adjustments

 

(20,186

)

 

 

(4,114

)

 

 

(16,072

)

 

391

%

Operating expenses

 

1,828,002

 

 

 

1,808,715

 

 

 

19,287

 

 

1

%

 

 

20,643,135

 

 

 

21,117,913

 

 

 

(474,778

)

 

(2

)%

Selling, general and administrative expenses (1)

 

326,246

 

 

 

347,514

 

 

 

(21,268

)

 

(6

)%

Depreciation and amortization

 

613,765

 

 

 

558,905

 

 

 

54,860

 

 

10

%

Asset impairments

 

9,984

 

 

 

—

 

 

 

9,984

 

 

100

%

Total operating costs and expenses

 

21,593,130

 

 

 

22,024,332

 

 

 

(431,202

)

 

(2

)%

Income from operations

 

486,986

 

 

 

2,279,927

 

 

 

(1,792,941

)

 

(79

)%

Other income (expense):

 

 

 

 

 

 

 

Earnings of equity method investments

 

23,612

 

 

 

10,436

 

 

 

13,176

 

 

126

%

Interest income

 

58,983

 

 

 

62,103

 

 

 

(3,120

)

 

(5

)%

Interest expense

 

(126,536

)

 

 

(141,490

)

 

 

14,954

 

 

(11

)%

Gain on foreign currency transactions

 

1,475

 

 

 

2,478

 

 

 

(1,003

)

 

(40

)%

Gain on sale of assets and other

 

3,691

 

 

 

11,737

 

 

 

(8,046

)

 

(69

)%

 

 

(38,775

)

 

 

(54,736

)

 

 

15,961

 

 

(29

)%

Income before income taxes

 

448,211

 

 

 

2,225,191

 

 

 

(1,776,980

)

 

(80

)%

Income tax expense

 

52,190

 

 

 

480,640

 

 

 

(428,450

)

 

(89

)%

Net income

 

396,021

 

 

 

1,744,551

 

 

 

(1,348,530

)

 

(77

)%

Less net income attributable to noncontrolling interest

 

5,513

 

 

 

92,702

 

 

 

(87,189

)

 

(94

)%

Net income attributable to HF Sinclair stockholders

$

390,508

 

 

$

1,651,849

 

 

$

(1,261,341

)

 

(76

)%

Earnings per share attributable to HF Sinclair stockholders:

 

 

 

 

 

 

 

Basic

$

2.01

 

 

$

8.57

 

 

$

(6.56

)

 

(77

)%

Diluted

$

2.01

 

 

$

8.57

 

 

$

(6.56

)

 

(77

)%

Cash dividends declared per common share

$

1.50

 

 

$

1.35

 

 

$

0.15

 

 

11

%

Average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

193,341

 

 

 

191,047

 

 

 

2,294

 

 

1

%

Diluted

 

193,341

 

 

 

191,047

 

 

 

2,294

 

 

1

%

 

 

 

 

 

 

 

 

EBITDA

$

1,124,016

 

 

$

2,770,781

 

 

$

(1,646,765

)

 

(59

)%

Adjusted EBITDA

$

1,120,837

 

 

$

2,779,407

 

 

$

(1,658,570

)

 

(60

)%

(1)

Exclusive of Depreciation and amortization.

(2)

Exclusive of Lower of cost or market inventory valuation adjustments.

Balance Sheet Data

 

September 30, 2024

 

December 31, 2023

 

 

 

 

 

(In thousands)

Cash and cash equivalents

$

1,229,482

 

$

1,353,747

Working capital

$

2,393,303

 

$

3,371,905

Total assets

$

16,887,661

 

$

17,716,265

Total debt

$

2,636,805

 

$

2,739,083

Total equity

$

9,670,410

 

$

10,237,298

Segment Information

Our operations are organized into five reportable segments: Refining, Renewables, Marketing, Lubricants & Specialties and Midstream. Our operations that are not included in one of these five reportable segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.

The Refining segment represents the operations of our El Dorado, Tulsa, Navajo, Woods Cross, Puget Sound, Parco and Casper refineries and HF Sinclair Asphalt Company LLC (“Asphalt”). Refining activities involve the purchase and refining of crude oil and wholesale marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

The Renewables segment represents the operations of our Cheyenne renewable diesel unit (“RDU”), Artesia RDU, Sinclair RDU and the pre-treatment unit at our Artesia, New Mexico facility.

The Marketing segment represents branded fuel sales to Sinclair branded sites in the United States and licensing fees for the use of the Sinclair brand at additional locations throughout the country. The Marketing segment also includes branded fuel sales to non-Sinclair branded sites from legacy HollyFrontier Corporation (“HollyFrontier”) agreements and revenues from other marketing activities. Our branded sites are located in several states across the United States with the highest concentration of the sites located in our West and Mid-Continent regions.

The Lubricants & Specialties segment represents Petro-Canada Lubricants Inc.’s production operations, located in Mississauga, Ontario, which includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants Inc.’s business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States and Europe. Additionally, the Lubricants & Specialties segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil Company LLC, one of the leading suppliers of locomotive engine oil in North America. Also, the Lubricants & Specialties segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.

The Midstream segment includes all of the operations of Holly Energy Partners, L.P. (“HEP”), which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, and terminals, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The Midstream segment also includes 50% ownership interests in each of Osage Pipeline Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas, Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming, and Cushing Connect, a 25.12% ownership interest in Saddle Butte Pipeline III, LLC, the owner of a pipeline running from the Powder River Basin to Casper, Wyoming, and a 49.995% ownership interest in Pioneer Investments Corp., the owner of a pipeline running from Sinclair, Wyoming to the North Salt Lake City, Utah Terminal. Revenues and other income from the Midstream segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation, terminalling operations and tankage facilities provided for our refining operations.

Beginning in the first quarter of 2024, our Refining segment acquired from our Midstream segment the refinery processing units at our El Dorado and Woods Cross refineries. Additionally, we amended an intercompany agreement between certain of our subsidiaries within the Refining, Lubricants & Specialties and Midstream segments. As a result, we have revised our Refining, Lubricants & Specialties and Midstream segment information for the periods presented.

 

 

Refining

 

Renewables

 

Marketing

 

Lubricants & Specialties

 

Midstream

 

Corporate, Other and Eliminations

 

Consolidated

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Three Months Ended September 30, 2024

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

5,386,710

 

 

$

160,038

 

 

$

950,050

 

$

682,589

 

$

27,753

 

$

—

 

 

$

7,207,140

 

Intersegment revenues and other (1)

 

 

995,001

 

 

 

105,320

 

 

 

—

 

 

3,278

 

 

136,115

 

 

(1,239,714

)

 

 

—

 

 

 

 

6,381,711

 

 

 

265,358

 

 

 

950,050

 

 

685,867

 

 

163,868

 

 

(1,239,714

)

 

 

7,207,140

 

Cost of sales: (2)

Cost of materials and other (3)

 

 

5,731,823

 

 

 

237,321

 

 

 

918,432

 

 

509,204

 

 

—

 

 

(1,238,486

)

 

 

6,158,294

 

Lower of cost or market inventory valuation adjustments

 

 

198,759

 

 

 

3,548

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

202,307

 

Operating expenses

 

 

485,231

 

 

 

24,959

 

 

 

—

 

 

60,404

 

 

58,702

 

 

277

 

 

 

629,573

 

 

 

 

6,415,813

 

 

 

265,828

 

 

 

918,432

 

 

569,608

 

 

58,702

 

 

(1,238,209

)

 

 

6,990,174

 

Selling, general and administrative expenses (2)

 

 

54,632

 

 

 

1,281

 

 

 

9,476

 

 

38,832

 

 

3,820

 

 

9,973

 

 

 

118,014

 

Depreciation and amortization

 

 

123,348

 

 

 

21,409

 

 

 

6,588

 

 

21,661

 

 

17,824

 

 

18,886

 

 

 

209,716

 

Asset impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

9,984

 

 

—

 

 

 

9,984

 

Income (loss) from operations

 

$

(212,082

)

 

$

(23,160

)

 

$

15,554

 

$

55,766

 

$

73,538

 

$

(30,364

)

 

$

(120,748

)

Income (loss) before interest and income taxes

 

$

(212,108

)

 

$

(23,141

)

 

$

15,560

 

$

54,584

 

$

80,500

 

$

(24,655

)

 

$

(109,260

)

Net income attributable to noncontrolling interest

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

1,863

 

$

—

 

 

$

1,863

 

Earnings of equity method investments

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

7,353

 

$

798

 

 

$

8,151

 

Capital expenditures

 

$

70,655

 

 

$

1,268

 

 

$

12,874

 

$

10,580

 

$

15,996

 

$

12,231

 

 

$

123,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

6,717,926

 

 

$

213,144

 

 

$

1,259,205

 

$

686,123

 

$

29,073

 

$

—

 

 

$

8,905,471

 

Intersegment revenues and other (1)

 

 

1,333,008

 

 

 

118,033

 

 

 

—

 

 

565

 

 

123,540

 

 

(1,575,146

)

 

 

—

 

 

 

 

8,050,934

 

 

 

331,177

 

 

 

1,259,205

 

 

686,688

 

 

152,613

 

 

(1,575,146

)

 

 

8,905,471

 

Cost of sales: (2)

Cost of materials and other (3)

 

 

6,518,402

 

 

 

294,682

 

 

 

1,230,372

 

 

466,459

 

 

—

 

 

(1,574,265

)

 

 

6,935,650

 

Lower of cost or market inventory valuation adjustments

 

 

(26,842

)

 

 

(17,006

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(43,848

)

Operating expenses

 

 

478,847

 

 

 

30,198

 

 

 

—

 

 

64,965

 

 

50,489

 

 

(1,967

)

 

 

622,532

 

 

 

 

6,970,407

 

 

 

307,874

 

 

 

1,230,372

 

 

531,424

 

 

50,489

 

 

(1,576,232

)

 

 

7,514,334

 

Selling, general and administrative expenses (2)

 

 

50,345

 

 

 

1,336

 

 

 

7,731

 

 

40,051

 

 

7,947

 

 

16,803

 

 

 

124,213

 

Depreciation and amortization

 

 

118,077

 

 

 

18,904

 

 

 

6,002

 

 

22,366

 

 

20,274

 

 

9,939

 

 

 

195,562

 

Income (loss) from operations

 

$

912,105

 

 

$

3,063

 

 

$

15,100

 

$

92,847

 

$

73,903

 

$

(25,656

)

 

$

1,071,362

 

Income (loss) before interest and income taxes

 

$

916,139

 

 

$

3,087

 

 

$

15,134

 

$

95,181

 

$

78,194

 

$

(23,550

)

 

$

1,084,185

 

Net income attributable to noncontrolling interest

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

1,886

 

$

32,253

 

 

$

34,139

 

Earnings of equity method investments

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

3,581

 

$

(572

)

 

$

3,009

 

Capital expenditures

 

$

44,866

 

 

$

2,812

 

 

$

4,223

 

$

10,070

 

$

5,672

 

$

13,544

 

 

$

81,187

 

 

 

Refining

 

Renewables

 

Marketing

 

Lubricants & Specialties

 

Midstream

 

Corporate, Other and Eliminations

 

Consolidated

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

16,729,833

 

 

$

519,935

 

 

$

2,668,219

 

$

2,084,183

 

$

77,946

 

$

—

 

 

$

22,080,116

 

Intersegment revenues and other (1)

 

 

2,833,932

 

 

 

233,260

 

 

 

—

 

 

11,070

 

 

399,118

 

 

(3,477,380

)

 

 

—

 

 

 

 

19,563,765

 

 

 

753,195

 

 

 

2,668,219

 

 

2,095,253

 

 

477,064

 

 

(3,477,380

)

 

 

22,080,116

 

Cost of sales: (2)

Cost of materials and other (3)

 

 

17,497,374

 

 

 

687,650

 

 

 

2,590,573

 

 

1,533,440

 

 

—

 

 

(3,473,718

)

 

 

18,835,319

 

Lower of cost or market inventory valuation adjustments

 

 

(21,799

)

 

 

1,613

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(20,186

)

Operating expenses

 

 

1,406,414

 

 

 

76,125

 

 

 

—

 

 

188,849

 

 

155,309

 

 

1,305

 

 

 

1,828,002

 

 

 

 

18,881,989

 

 

 

765,388

 

 

 

2,590,573

 

 

1,722,289

 

 

155,309

 

 

(3,472,413

)

 

 

20,643,135

 

Selling, general and administrative expenses (2)

 

 

154,089

 

 

 

4,067

 

 

 

24,577

 

 

111,609

 

 

10,674

 

 

21,230

 

 

 

326,246

 

Depreciation and amortization

 

 

362,933

 

 

 

61,467

 

 

 

19,265

 

 

66,888

 

 

52,887

 

 

50,325

 

 

 

613,765

 

Asset impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

9,984

 

 

—

 

 

 

9,984

 

Income (loss) from operations

 

$

164,754

 

 

$

(77,727

)

 

$

33,804

 

$

194,467

 

$

248,210

 

$

(76,522

)

 

$

486,986

 

Income (loss) before interest and income taxes

 

$

164,579

 

 

$

(77,665

)

 

$

34,078

 

$

193,410

 

$

270,055

 

$

(68,693

)

 

$

515,764

 

Net income attributable to noncontrolling interest

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

5,513

 

$

—

 

 

$

5,513

 

Earnings of equity method investments

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

21,899

 

$

1,713

 

 

$

23,612

 

Capital expenditures

 

$

161,374

 

 

$

7,188

 

 

$

33,365

 

$

23,064

 

$

35,246

 

$

36,684

 

 

$

296,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

18,284,853

 

 

$

590,620

 

 

$

3,237,523

 

$

2,105,941

 

$

85,322

 

$

—

 

 

$

24,304,259

 

Intersegment revenues and other (1)

 

 

3,524,078

 

 

 

311,758

 

 

 

—

 

 

10,890

 

 

339,596

 

 

(4,186,322

)

 

 

—

 

 

 

 

21,808,931

 

 

 

902,378

 

 

 

3,237,523

 

 

2,116,831

 

 

424,918

 

 

(4,186,322

)

 

 

24,304,259

 

Cost of sales: (2)

Cost of materials and other (3)

 

 

18,002,106

 

 

 

816,226

 

 

 

3,162,727

 

 

1,515,900

 

 

—

 

 

(4,183,647

)

 

 

19,313,312

 

Lower of cost or market inventory valuation adjustments

 

 

—

 

 

 

(4,114

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(4,114

)

Operating expenses

 

 

1,391,930

 

 

 

85,942

 

 

 

—

 

 

192,592

 

 

138,021

 

 

230

 

 

 

1,808,715

 

 

 

 

19,394,036

 

 

 

898,054

 

 

 

3,162,727

 

 

1,708,492

 

 

138,021

 

 

(4,183,417

)

 

 

21,117,913

 

Selling, general and administrative expenses (2)

 

 

142,461

 

 

 

3,587

 

 

 

22,821

 

 

124,229

 

 

18,094

 

 

36,322

 

 

 

347,514

 

Depreciation and amortization

 

 

330,702

 

 

 

57,846

 

 

 

17,889

 

 

62,113

 

 

61,855

 

 

28,500

 

 

 

558,905

 

Income (loss) from operations

 

$

1,941,732

 

 

$

(57,109

)

 

$

34,086

 

$

221,997

 

$

206,948

 

$

(67,727

)

 

$

2,279,927

 

Income (loss) before interest and income taxes

 

$

1,946,071

 

 

$

(57,040

)

 

$

34,218

 

$

223,916

 

$

218,940

 

$

(61,527

)

 

$

2,304,578

 

Net income attributable to noncontrolling interest

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

5,177

 

$

87,525

 

 

$

92,702

 

Earnings of equity method investments

 

$

—

 

 

$

—

 

 

$

—

 

$

—

 

$

11,008

 

$

(572

)

 

$

10,436

 

Capital expenditures

 

$

157,827

 

 

$

11,193

 

 

$

15,678

 

$

24,453

 

$

21,936

 

$

30,350

 

 

$

261,437

 

(1)

Includes income earned by certain of our subsidiaries in the Midstream segment related to intercompany transportation agreements with certain of our subsidiaries in the Refining and Lubricants & Specialties segments that represent leases. These transactions eliminate in consolidation.

(2)

Exclusive of Depreciation and amortization.

(3)

Exclusive of Lower of cost or market inventory valuation adjustments.

Refining Segment Operating Data

The following tables set forth information, including non-GAAP (generally accepted accounting principles) performance measures, about our consolidated refinery operations. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced refined products sold. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region is comprised of the El Dorado and Tulsa refineries. The West region is comprised of the Puget Sound, Navajo, Woods Cross, Parco and Casper refineries.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Mid-Continent Region

 

 

 

 

 

 

Crude charge (BPD) (1)

 

 

263,170

 

 

 

250,280

 

 

 

262,670

 

 

 

230,130

 

Refinery throughput (BPD) (2)

 

 

279,210

 

 

 

269,270

 

 

 

278,210

 

 

 

249,170

 

Sales of produced refined products (BPD) (3)

 

 

274,870

 

 

 

257,270

 

 

 

276,830

 

 

 

234,470

 

Refinery utilization (4)

 

 

101.2

%

 

 

96.3

%

 

 

101.0

%

 

 

88.5

%

 

 

 

 

 

 

 

 

 

Average per produced barrel sold: (5)

 

 

 

 

 

 

 

 

Gross margin (6)

 

$

(3.91

)

 

$

13.78

 

 

$

1.35

 

 

$

10.80

 

 

 

 

 

 

 

 

 

 

Adjusted refinery gross margin (7)

 

$

9.38

 

 

$

21.64

 

 

$

9.40

 

 

$

20.43

 

Operating expenses (8)

 

 

6.56

 

 

 

6.69

 

 

 

6.28

 

 

 

7.34

 

Adjusted refinery gross margin, less operating expenses

 

$

2.82

 

 

$

14.95

 

 

$

3.12

 

 

$

13.09

 

 

 

 

 

 

 

 

 

 

Operating expenses per throughput barrel (9)

 

$

6.45

 

 

$

6.39

 

 

$

6.25

 

 

$

6.91

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

 

54

%

 

 

53

%

 

 

53

%

 

 

59

%

Sour crude oil

 

 

24

%

 

 

22

%

 

 

23

%

 

 

18

%

Heavy sour crude oil

 

 

16

%

 

 

18

%

 

 

18

%

 

 

15

%

Other feedstocks and blends

 

 

6

%

 

 

7

%

 

 

6

%

 

 

8

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

 

50

%

 

 

52

%

 

 

52

%

 

 

51

%

Diesel fuels

 

 

31

%

 

 

30

%

 

 

31

%

 

 

30

%

Jet fuels

 

 

7

%

 

 

6

%

 

 

6

%

 

 

6

%

Fuel oil

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Asphalt

 

 

5

%

 

 

4

%

 

 

4

%

 

 

4

%

Base oils

 

 

3

%

 

 

3

%

 

 

4

%

 

 

4

%

LPG and other

 

 

3

%

 

 

4

%

 

 

2

%

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

West Region

 

 

 

 

 

 

 

 

Crude charge (BPD) (1)

 

 

343,840

 

 

 

351,650

 

 

 

352,860

 

 

 

321,700

 

Refinery throughput (BPD) (2)

 

 

370,540

 

 

 

375,830

 

 

 

378,310

 

 

 

351,880

 

Sales of produced refined products (BPD) (3)

 

 

379,530

 

 

 

376,910

 

 

 

373,890

 

 

 

348,740

 

Refinery utilization (4)

 

 

82.3

%

 

 

84.1

%

 

 

84.4

%

 

 

77.0

%

 

 

 

 

 

 

 

 

 

Average per produced barrel sold: (5)

 

 

 

 

 

 

 

 

Gross margin (6)

 

$

(1.67

)

 

$

18.35

 

 

$

2.11

 

 

$

14.63

 

 

 

 

 

 

 

 

 

 

Adjusted refinery gross margin (7)

 

$

11.82

 

 

$

29.42

 

 

$

13.21

 

 

$

26.25

 

Operating expenses (8)

 

 

9.15

 

 

 

9.24

 

 

 

9.08

 

 

 

9.69

 

Adjusted refinery gross margin, less operating expenses

 

$

2.67

 

 

$

20.18

 

 

$

4.13

 

 

$

16.56

 

 

 

 

 

 

 

 

 

 

Operating expenses per throughput barrel (9)

 

$

9.37

 

 

$

9.27

 

 

$

8.97

 

 

$

9.60

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

 

34

%

 

 

30

%

 

 

34

%

 

 

31

%

Sour crude oil

 

 

44

%

 

 

45

%

 

 

43

%

 

 

43

%

Heavy sour crude oil

 

 

9

%

 

 

13

%

 

 

10

%

 

 

12

%

Wax crude oil

 

 

6

%

 

 

6

%

 

 

6

%

 

 

6

%

Other feedstocks and blends

 

 

7

%

 

 

6

%

 

 

7

%

 

 

8

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

 

53

%

 

 

51

%

 

 

52

%

 

 

53

%

Diesel fuels

 

 

31

%

 

 

32

%

 

 

32

%

 

 

31

%

Jet fuels

 

 

6

%

 

 

7

%

 

 

6

%

 

 

6

%

Fuel oil

 

 

1

%

 

 

2

%

 

 

2

%

 

 

2

%

Asphalt

 

 

3

%

 

 

3

%

 

 

2

%

 

 

2

%

LPG and other

 

 

6

%

 

 

5

%

 

 

6

%

 

 

6

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

Consolidated

 

 

 

 

 

 

 

 

Crude charge (BPD) (1)

 

 

607,010

 

 

 

601,930

 

 

 

615,530

 

 

 

551,830

 

Refinery throughput (BPD) (2)

 

 

649,750

 

 

 

645,100

 

 

 

656,520

 

 

 

601,050

 

Sales of produced refined products (BPD) (3)

 

 

654,400

 

 

 

634,180

 

 

 

650,720

 

 

 

583,210

 

Refinery utilization (4)

 

 

89.5

%

 

 

88.8

%

 

 

90.8

%

 

 

81.4

%

 

 

 

 

 

 

 

 

 

Average per produced barrel sold: (5)

 

 

 

 

 

 

 

 

Gross margin (6)

 

$

(2.62

)

 

$

16.50

 

 

$

1.79

 

 

$

13.09

 

 

 

 

 

 

 

 

 

 

Adjusted refinery gross margin (7)

 

$

10.79

 

 

$

26.27

 

 

$

11.59

 

 

$

23.91

 

Operating expenses (8)

 

 

8.06

 

 

 

8.21

 

 

 

7.89

 

 

 

8.74

 

Adjusted refinery gross margin, less operating expenses

 

$

2.73

 

 

$

18.06

 

 

$

3.70

 

 

$

15.17

 

 

 

 

 

 

 

 

 

 

Operating expenses per throughput barrel (9)

 

$

8.12

 

 

$

8.07

 

 

$

7.82

 

 

$

8.48

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

 

42

%

 

 

40

%

 

 

42

%

 

 

43

%

Sour crude oil

 

 

36

%

 

 

35

%

 

 

34

%

 

 

33

%

Heavy sour crude oil

 

 

12

%

 

 

15

%

 

 

14

%

 

 

13

%

Wax crude oil

 

 

3

%

 

 

3

%

 

 

4

%

 

 

3

%

Other feedstocks and blends

 

 

7

%

 

 

7

%

 

 

6

%

 

 

8

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

52

%

 

52

%

 

52

%

 

53

%

Diesel fuels

 

31

%

 

31

%

 

32

%

 

30

%

Jet fuels

 

7

%

 

7

%

 

6

%

 

6

%

Fuel oil

 

1

%

 

1

%

 

1

%

 

1

%

Asphalt

 

4

%

 

3

%

 

3

%

 

3

%

Base oils

 

1

%

 

1

%

 

2

%

 

2

%

LPG and other

 

4

%

 

5

%

 

4

%

 

5

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

(1)

Crude charge represents the barrels per day of crude oil processed at our refineries.

(2)

Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries.

(3)

Represents barrels sold of refined products produced at our refineries (including Asphalt and intersegment sales) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold.

(4)

Represents crude charge divided by total crude capacity (BPSD). Our consolidated crude capacity is 678,000 BPSD.

(5)

Represents the average amount per produced barrel sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(6)

Gross margin represents total Refining segment Sales and other revenues less Cost of materials and other, Lower of cost or market inventory valuation adjustments, Operating expenses and Depreciation and amortization, divided by sales volumes of refined products produced at our refineries.

(7)

Adjusted refinery gross margin is a non-GAAP measure and represents total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of refined products produced at our refineries. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(8)

Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by sales volumes of refined products produced at our refineries.

(9)

Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by refinery throughput.

Renewables Segment Operating Data

The following table sets forth information, including non-GAAP performance measures, about our renewables operations. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced renewables products sold. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

 

 

 

 

 

 

Sales volumes (in thousand gallons)

 

 

68,755

 

 

 

54,909

 

 

193,484

 

 

 

152,896

 

Average per produced gallon sold: (1)

 

 

 

 

 

 

 

 

Gross margin (2)

 

$

(0.32

)

 

$

0.08

 

$

(0.38

)

 

$

(0.35

)

 

 

 

 

 

 

 

 

 

Adjusted renewables gross margin (3)

 

$

0.41

 

 

$

0.66

 

$

0.34

 

 

$

0.56

 

Operating expenses (4)

 

 

0.36

 

 

 

0.55

 

 

0.39

 

 

 

0.56

 

Adjusted renewables gross margin, less operating expenses

 

$

0.05

 

 

$

0.11

 

$

(0.05

)

 

$

—

 

(1)

Represents the average amount per produced gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(2)

Gross margin represents total Renewables segment Sales and other revenues less Cost of materials and other, Lower of cost or market inventory valuation adjustments, Operating expenses and Depreciation and amortization, divided by sales volumes of renewable diesel produced at our renewable diesel units.

(3)

Adjusted renewables gross margin is a non-GAAP measure and represents total Renewables segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of renewable diesel produced at our renewable diesel units. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(4)

Represents total Renewables segment Operating expenses, exclusive of Depreciation and amortization, divided by sales volumes of renewable diesel produced at our renewable diesel units.

Marketing Segment Operating Data

The following table sets forth information, including non-GAAP performance measures, about our marketing operations and includes our Sinclair branded fuel business. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus Depreciation and amortization, divided by sales volumes of marketing products sold. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Marketing

 

 

 

 

 

 

 

 

Number of branded sites at period end (1)

 

 

1,586

 

 

1,535

 

 

1,586

 

 

1,535

Sales volumes (in thousand gallons)

 

 

365,036

 

 

398,399

 

 

1,043,183

 

 

1,091,216

Average per gallon sold: (2)

 

 

 

 

 

 

 

 

Gross margin (3)

 

$

0.07

 

$

0.06

 

$

0.06

 

$

0.05

Adjusted marketing gross margin (4)

 

$

0.09

 

$

0.07

 

$

0.07

 

$

0.07

(1)

Includes non-Sinclair branded sites from legacy HollyFrontier agreements.

(2)

Represents average amount per gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(3)

Gross margin represents total Marketing segment Sales and other revenues less Cost of materials and other and Depreciation and amortization, divided by sales volumes of marketing products sold.

(4)

Adjusted marketing gross margin is a non-GAAP measure and represents total Marketing segment gross margin plus Depreciation and amortization, divided by sales volumes of marketing products sold. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

Lubricants & Specialties Segment Operating Data

The following table sets forth information about our lubricants and specialties operations:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Lubricants & Specialties

 

 

 

 

 

 

 

 

Sales of produced refined products (BPD)

 

32,914

 

 

30,400

 

 

32,977

 

 

30,440

 

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Finished products

 

45

%

 

49

%

 

47

%

 

51

%

Base oils

 

27

%

 

27

%

 

27

%

 

27

%

Other

 

28

%

 

24

%

 

26

%

 

22

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

Midstream Segment Operating Data

The following table sets forth information about our midstream operations:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Midstream

 

 

 

 

 

 

 

 

Volumes (BPD)

 

 

 

 

 

 

 

 

Pipelines:

 

 

 

 

 

 

 

 

Affiliates—refined product pipelines

 

156,346

 

152,541

 

165,566

 

144,082

Affiliates—intermediate pipelines

 

145,236

 

107,019

 

145,068

 

108,579

Affiliates—crude pipelines

 

459,273

 

426,418

 

442,317

 

429,965

 

 

760,855

 

685,978

 

752,951

 

682,626

Third parties—refined product pipelines

 

39,190

 

33,549

 

39,170

 

38,702

Third parties—crude pipelines

 

240,496

 

204,970

 

201,256

 

196,552

 

 

1,040,541

 

924,497

 

993,377

 

917,880

Terminals and loading racks:

 

 

 

 

 

 

 

 

Affiliates (1)

 

1,019,229

 

971,678

 

1,030,624

 

902,101

Third parties

 

40,124

 

40,440

 

37,621

 

44,263

 

 

1,059,353

 

1,012,118

 

1,068,245

 

946,364

Total for pipelines and terminals assets (BPD)

 

2,099,894

 

1,936,615

 

2,061,622

 

1,864,244

(1)

Certain affiliate volumetric non-financial information has been recast to conform to current year presentation.

Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles

Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA excluding special items (“Adjusted EBITDA”) to amounts reported under generally accepted accounting principles (“GAAP”) in the financial statements.

Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as Net income (loss) attributable to HF Sinclair stockholders plus (i) Interest expense, net of Interest income, (ii) Income tax expense (benefit) and (iii) Depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i) Lower of cost or market inventory valuation adjustments, (ii) Asset impairments, (iii) reclamation costs, (iv) HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs and (v) acquisition integration and regulatory costs.

EBITDA and Adjusted EBITDA are not calculations provided for under accounting principles generally accepted in the United States; however, the amounts included in these calculations are derived from amounts included in our consolidated financial statements. EBITDA and Adjusted EBITDA should not be considered as alternatives to Net income (loss) or Income (loss) from operations as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures of other companies. These are presented here because they are widely used financial indicators used by investors and analysts to measure performance. EBITDA and Adjusted EBITDA are also used by our management for internal analysis and as a basis for financial covenants.

Set forth below is our calculation of EBITDA and Adjusted EBITDA:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Net income (loss) attributable to HF Sinclair stockholders

 

$

(75,944

)

 

$

790,922

 

 

$

390,508

 

 

$

1,651,849

 

Add interest expense

 

 

40,396

 

 

 

48,686

 

 

 

126,536

 

 

 

141,490

 

Subtract interest income

 

 

(18,309

)

 

 

(24,577

)

 

 

(58,983

)

 

 

(62,103

)

Add income tax expense

 

 

(57,266

)

 

 

235,015

 

 

 

52,190

 

 

 

480,640

 

Add depreciation and amortization

 

 

209,716

 

 

 

195,562

 

 

 

613,765

 

 

 

558,905

 

EBITDA

 

 

98,593

 

 

 

1,245,608

 

 

 

1,124,016

 

 

 

2,770,781

 

Add lower of cost or market inventory valuation adjustments

 

 

202,307

 

 

 

(43,848

)

 

 

(20,186

)

 

 

(4,114

)

Add asset impairments

 

 

9,984

 

 

 

—

 

 

 

9,984

 

 

 

—

 

Add reclamation costs

 

 

5,000

 

 

 

—

 

 

 

5,000

 

 

 

—

 

Add HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs

 

 

—

 

 

 

33

 

 

 

—

 

 

 

608

 

Add acquisition integration and regulatory costs

 

 

120

 

 

 

4,698

 

 

 

2,023

 

 

 

12,132

 

Adjusted EBITDA

 

$

316,004

 

 

$

1,206,491

 

 

$

1,120,837

 

 

$

2,779,407

 

EBITDA and Adjusted EBITDA attributable to our Refining segment is presented below:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Refining Segment

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income (loss) before interest and income taxes (1)

 

$

(212,108

)

 

$

916,139

 

 

$

164,579

 

 

$

1,946,071

Add depreciation and amortization

 

 

123,348

 

 

 

118,077

 

 

 

362,933

 

 

 

330,702

EBITDA

 

 

(88,760

)

 

 

1,034,216

 

 

 

527,512

 

 

 

2,276,773

Add lower of cost or market inventory valuation adjustments

 

 

198,759

 

 

 

(26,842

)

 

 

(21,799

)

 

 

—

Adjusted EBITDA

 

$

109,999

 

 

$

1,007,374

 

 

$

505,713

 

 

$

2,276,773

(1)

Income (loss) before interest and income taxes of our Refining segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit).

EBITDA and Adjusted EBITDA attributable to our Renewables segment is set forth below:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Renewables Segment

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income (loss) before interest and income taxes (1)

 

$

(23,141

)

 

$

3,087

 

 

$

(77,665

)

 

$

(57,040

)

Add depreciation and amortization

 

 

21,409

 

 

 

18,904

 

 

 

61,467

 

 

 

57,846

 

EBITDA

 

 

(1,732

)

 

 

21,991

 

 

 

(16,198

)

 

 

806

 

Add lower of cost or market inventory valuation adjustments

 

 

3,548

 

 

 

(17,006

)

 

 

1,613

 

 

 

(4,114

)

Adjusted EBITDA

 

$

1,816

 

 

$

4,985

 

 

$

(14,585

)

 

$

(3,308

)

(1)

Income (loss) before interest and income taxes of our Renewables segment represents income (loss) plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit).

EBITDA attributable to our Marketing segment is set forth below:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Marketing Segment

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

15,560

 

$

15,134

 

$

34,078

 

$

34,218

Add depreciation and amortization

 

 

6,588

 

 

6,002

 

 

19,265

 

 

17,889

EBITDA

 

$

22,148

 

$

21,136

 

$

53,343

 

$

52,107

(1)

Income before interest and income taxes of our Marketing segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit).

EBITDA attributable to our Lubricants & Specialties segment is set forth below:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Lubricants & Specialties Segment

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

54,584

 

$

95,181

 

$

193,410

 

$

223,916

Add depreciation and amortization

 

 

21,661

 

 

22,366

 

 

66,888

 

 

62,113

EBITDA

 

$

76,245

 

$

117,547

 

$

260,298

 

$

286,029

(1)

Income before interest and income taxes of our Lubricants & Specialties segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit).

EBITDA and Adjusted EBITDA attributable to our Midstream segment is presented below:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Midstream Segment

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

80,500

 

 

$

78,194

 

 

$

270,055

 

 

$

218,940

 

Add depreciation and amortization

 

 

17,824

 

 

 

20,274

 

 

 

52,887

 

 

 

61,855

 

Subtract net income attributable to noncontrolling interest

 

 

(1,863

)

 

 

(1,886

)

 

 

(5,513

)

 

 

(5,177

)

EBITDA

 

 

96,461

 

 

 

96,582

 

 

 

317,429

 

 

 

275,618

 

Add asset impairments

 

 

9,984

 

 

 

—

 

 

 

9,984

 

 

 

—

 

Add reclamation costs

 

 

5,000

 

 

 

—

 

 

 

5,000

 

 

 

—

 

Add share of Osage environmental remediation costs, net of insurance recoveries

 

 

—

 

 

 

69

 

 

 

—

 

 

 

1,289

 

Add acquisition integration and regulatory costs

 

 

203

 

 

 

4,285

 

 

 

308

 

 

 

5,757

 

Adjusted EBITDA

 

$

111,648

 

 

$

100,936

 

 

$

332,721

 

 

$

282,664

 

(1)

Income before interest and income taxes of our Midstream segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit).

Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Adjusted refinery gross margin is a non-GAAP performance measure that is used by our management and others to compare our refining performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our refining performance on a relative and absolute basis, including against publicly available crack spread data. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced refined products sold. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Adjusted refinery gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Refining segment gross margin. The GAAP measure most directly comparable to adjusted refinery gross margin is Refining segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of Refining segment gross margin to adjusted refinery gross margin to adjusted refinery gross margin per produced barrel sold and adjusted refinery gross margin, less operating expenses per produced barrel sold

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per barrel amounts)

Refining segment

 

 

 

 

 

 

 

 

Sales and other revenues

 

$

6,381,711

 

 

$

8,050,934

 

 

$

19,563,765

 

 

$

21,808,931

Cost of sales (1)

 

 

6,415,813

 

 

 

6,970,407

 

 

 

18,881,989

 

 

 

19,394,036

Depreciation and amortization

 

 

123,348

 

 

 

118,077

 

 

 

362,933

 

 

 

330,702

Gross margin

 

 

(157,450

)

 

 

962,450

 

 

 

318,843

 

 

 

2,084,193

Add lower of cost or market inventory adjustments

 

 

198,759

 

 

 

(26,842

)

 

 

(21,799

)

 

 

—

Add operating expenses

 

 

485,231

 

 

 

478,847

 

 

 

1,406,414

 

 

 

1,391,930

Add depreciation and amortization

 

 

123,348

 

 

 

118,077

 

 

 

362,933

 

 

 

330,702

Adjusted refinery gross margin

 

$

649,888

 

 

$

1,532,532

 

 

$

2,066,391

 

 

$

3,806,825

 

 

 

 

 

 

 

 

 

Produced barrels sold (BPD) (2)

 

 

654,400

 

 

 

634,180

 

 

 

650,720

 

 

 

583,210

 

 

 

 

 

 

 

 

 

Average per produced barrel sold:

 

 

 

 

 

 

 

 

Gross margin

 

$

(2.62

)

 

$

16.50

 

 

$

1.79

 

 

$

13.09

Add lower of cost or market inventory adjustments

 

 

3.30

 

 

 

(0.46

)

 

 

(0.12

)

 

 

—

Add operating expenses

 

 

8.06

 

 

 

8.21

 

 

 

7.89

 

 

 

8.74

Add depreciation and amortization

 

 

2.05

 

 

 

2.02

 

 

 

2.03

 

 

 

2.08

Adjusted refinery gross margin

 

$

10.79

 

 

$

26.27

 

 

$

11.59

 

 

$

23.91

Less operating expenses

 

 

8.06

 

 

 

8.21

 

 

 

7.89

 

 

 

8.74

Adjusted refinery gross margin, less operating expenses

 

$

2.73

 

 

$

18.06

 

 

$

3.70

 

 

$

15.17

(1)

Exclusive of Depreciation and amortization.

(2)

Represents the number of produced barrels sold per calendar day in the period.

Reconciliation of renewables operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Adjusted renewables gross margin is a non-GAAP performance measure that is used by our management and others to compare our renewables performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our renewables performance on a relative and absolute basis. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced renewables products sold. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Adjusted renewables gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Renewables segment gross margin. The GAAP measure most directly comparable to adjusted renewables gross margin is Renewables segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of Renewables segment gross margin to adjusted renewables gross margin to adjusted renewables gross margin per produced gallon sold and adjusted renewables gross margin, less Operating expenses per produced gallon sold

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per gallon amounts)

Renewables segment

 

 

 

 

 

 

 

 

Sales and other revenues

 

$

265,358

 

 

$

331,177

 

 

$

753,195

 

 

$

902,378

 

Cost of sales (1)

 

 

265,828

 

 

 

307,874

 

 

 

765,388

 

 

 

898,054

 

Depreciation and amortization

 

 

21,409

 

 

 

18,904

 

 

 

61,467

 

 

 

57,846

 

Gross margin

 

 

(21,879

)

 

 

4,399

 

 

 

(73,660

)

 

 

(53,522

)

Add lower of cost or market inventory adjustments

 

 

3,548

 

 

 

(17,006

)

 

 

1,613

 

 

 

(4,114

)

Add operating expenses

 

 

24,959

 

 

 

30,198

 

 

 

76,125

 

 

 

85,942

 

Add depreciation and amortization

 

 

21,409

 

 

 

18,904

 

 

 

61,467

 

 

 

57,846

 

Adjusted renewables gross margin

 

$

28,037

 

 

$

36,495

 

 

$

65,545

 

 

$

86,152

 

 

 

 

 

 

 

 

 

 

Produced gallons sold

 

 

68,755

 

 

 

54,909

 

 

 

193,484

 

 

 

152,896

 

 

 

 

 

 

 

 

 

 

Average per produced gallon sold:

 

 

 

 

 

 

 

 

Gross margin

 

$

(0.32

)

 

$

0.08

 

 

$

(0.38

)

 

$

(0.35

)

Add lower of cost or market inventory adjustments

 

 

0.05

 

 

 

(0.31

)

 

 

0.01

 

 

 

(0.03

)

Add operating expenses

 

 

0.36

 

 

 

0.55

 

 

 

0.39

 

 

 

0.56

 

Add depreciation and amortization

 

 

0.32

 

 

 

0.34

 

 

 

0.32

 

 

 

0.38

 

Adjusted renewables gross margin

 

$

0.41

 

 

$

0.66

 

 

$

0.34

 

 

$

0.56

 

Less operating expenses

 

 

0.36

 

 

 

0.55

 

 

 

0.39

 

 

 

0.56

 

Adjusted renewables gross margin, less operating expenses

 

$

0.05

 

 

$

0.11

 

 

$

(0.05

)

 

$

—

 

(1)

Exclusive of Depreciation and amortization.

Reconciliation of marketing operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Adjusted marketing gross margin is a non-GAAP performance measure that is used by our management and others to compare our marketing performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our marketing performance on a relative and absolute basis. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus Depreciation and amortization, divided by sales volumes of marketing products sold. Adjusted marketing gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Marketing segment gross margin. The GAAP measure most directly comparable to adjusted marketing gross margin is Marketing segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of Marketing segment gross margin to adjusted marketing gross margin to adjusted marketing gross margin per gallon sold

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per gallon amounts)

Marketing segment

 

 

 

 

 

 

 

 

Sales and other revenues

 

$

950,050

 

$

1,259,205

 

$

2,668,219

 

$

3,237,523

Cost of sales (1)

 

 

918,432

 

 

1,230,372

 

 

2,590,573

 

 

3,162,727

Depreciation and amortization

 

 

6,588

 

 

6,002

 

 

19,265

 

 

17,889

Gross margin

 

 

25,030

 

 

22,831

 

 

58,381

 

 

56,907

Add depreciation and amortization

 

 

6,588

 

 

6,002

 

 

19,265

 

 

17,889

Adjusted marketing gross margin

 

$

31,618

 

$

28,833

 

$

77,646

 

$

74,796

 

 

 

 

 

 

 

 

 

Sales volumes

 

 

365,036

 

 

398,399

 

 

1,043,183

 

 

1,091,216

 

 

 

 

 

 

 

 

 

Average per gallon sold:

 

 

 

 

 

 

 

 

Gross margin

 

$

0.07

 

$

0.06

 

$

0.06

 

$

0.05

Add depreciation and amortization

 

 

0.02

 

 

0.01

 

 

0.01

 

 

0.02

Adjusted marketing gross margin

 

$

0.09

 

$

0.07

 

$

0.07

 

$

0.07

(1)

Exclusive of Depreciation and amortization.

Reconciliation of Net income attributable to HF Sinclair stockholders to adjusted net income attributable to HF Sinclair stockholders

Adjusted net income attributable to HF Sinclair stockholders is a non-GAAP financial measure that excludes non-cash Lower of cost or market inventory valuation adjustments, Asset impairments, reclamation costs, HEP's share of Osage environmental remediation costs and acquisition integration and regulatory costs. We believe this measure is helpful to investors and others in evaluating our financial performance and to compare our results to that of other companies in our industry. Similarly titled performance measures of other companies may not be calculated in the same manner.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share amounts)

Consolidated

 

 

 

 

 

 

 

 

GAAP:

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(131,347

)

 

$

1,060,076

 

 

$

448,211

 

 

$

2,225,191

 

Income tax expense (benefit)

 

 

(57,266

)

 

 

235,015

 

 

 

52,190

 

 

 

480,640

 

Net income (loss)

 

 

(74,081

)

 

 

825,061

 

 

 

396,021

 

 

 

1,744,551

 

Less net income attributable to noncontrolling interest

 

 

1,863

 

 

 

34,139

 

 

 

5,513

 

 

 

92,702

 

Net income (loss) attributable to HF Sinclair stockholders

 

 

(75,944

)

 

 

790,922

 

 

 

390,508

 

 

 

1,651,849

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments to arrive at adjusted results:

 

 

 

 

 

 

 

 

Lower of cost or market inventory valuation adjustments

 

 

202,307

 

 

 

(43,848

)

 

 

(20,186

)

 

 

(4,114

)

Asset impairments

 

 

9,984

 

 

 

—

 

 

 

9,984

 

 

 

—

 

Reclamation costs

 

 

5,000

 

 

 

—

 

 

 

5,000

 

 

 

—

 

HEP's share of Osage environmental remediation costs

 

 

—

 

 

 

69

 

 

 

—

 

 

 

1,289

 

Acquisition integration and regulatory costs

 

 

120

 

 

 

6,626

 

 

 

2,023

 

 

 

14,060

 

Total adjustments to income (loss) before income taxes

 

 

217,411

 

 

 

(37,153

)

 

 

(3,179

)

 

 

11,235

 

Adjustment to income tax expense (benefit) (1)

 

 

44,964

 

 

 

(8,633

)

 

 

(752

)

 

 

2,160

 

Adjustment to net income attributable to noncontrolling interest

 

 

—

 

 

 

1,964

 

 

 

—

 

 

 

2,609

 

Total adjustments, net of tax

 

 

172,447

 

 

 

(30,484

)

 

 

(2,427

)

 

 

6,466

 

 

 

 

 

 

 

 

 

 

Adjusted results - Non-GAAP:

 

 

 

 

 

 

 

 

Adjusted income before income taxes

 

 

86,064

 

 

 

1,022,923

 

 

 

445,032

 

 

 

2,236,426

 

Adjusted income tax expense (benefit) (2)

 

 

(12,302

)

 

 

226,382

 

 

 

51,438

 

 

 

482,800

 

Adjusted net income

 

 

98,366

 

 

 

796,541

 

 

 

393,594

 

 

 

1,753,626

 

Less net income attributable to noncontrolling interest

 

 

1,863

 

 

 

36,103

 

 

 

5,513

 

 

 

95,311

 

Adjusted net income attributable to HF Sinclair stockholders

 

$

96,503

 

 

$

760,438

 

 

$

388,081

 

 

$

1,658,315

 

Adjusted earnings per share - diluted (3)

 

$

0.51

 

 

$

4.06

 

 

$

2.00

 

 

$

8.60

 

(1)

Represents adjustment to GAAP income tax expense (benefit) to arrive at adjusted income tax expense (benefit), which is computed as follows:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Non-GAAP income tax expense (benefit) (2)

 

$

(12,302

)

 

$

226,382

 

 

$

51,438

 

 

$

482,800

Add GAAP income tax expense (benefit)

 

 

(57,266

)

 

 

235,015

 

 

 

52,190

 

 

 

480,640

Non-GAAP adjustment to income tax expense (benefit)

 

$

44,964

 

 

$

(8,633

)

 

$

(752

)

 

$

2,160

(1)

Non-GAAP income tax expense (benefit) is computed by (a) adjusting HF Sinclair’s consolidated estimated Annual Effective Tax Rate (“AETR”) for GAAP purposes for the effects of the above Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and (c) adjusting for discrete tax items applicable to the period.

(2)

Adjusted earnings per share - diluted is calculated as adjusted Net income (loss) attributable to HF Sinclair stockholders divided by the average number of shares of common stock outstanding assuming dilution, which is based on weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is calculated the same way as that used in GAAP diluted earnings per share calculation.

Reconciliation of effective tax rate to adjusted effective tax rate

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP:

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(131,347

)

 

$

1,060,076

 

 

$

448,211

 

 

$

2,225,191

 

Income tax expense (benefit)

 

$

(57,266

)

 

$

235,015

 

 

$

52,190

 

 

$

480,640

 

Effective tax rate for GAAP financial statements

 

 

43.6

%

 

 

22.2

%

 

 

11.6

%

 

 

21.6

%

Adjusted - Non-GAAP:

 

 

 

 

 

 

 

 

Effect of Non-GAAP adjustments

 

 

(57.9

)%

 

 

(0.1

)%

 

 

—

%

 

 

—

%

Effective tax rate for adjusted results

 

 

(14.3

)%

 

 

22.1

%

 

 

11.6

%

 

 

21.6

%

 

Atanas H. Atanasov, Executive Vice President and Chief Financial Officer
Craig Biery, Vice President, Investor Relations
HF Sinclair Corporation
214-954-6510

Source: HF Sinclair Corporation