HF Sinclair Corporation Reports 2024 First Quarter Results and Announces Regular Cash Dividend
HF Sinclair (NYSE: DINO) reported net income of $314.7 million for Q1 2024, with adjusted net income at $142.3 million. The company returned $269 million to shareholders and authorized a $1.0 billion share repurchase program. A regular quarterly dividend of $0.50 per share was announced. The refining segment income decreased, while the renewables segment reported a loss. Marketing segment income increased, and the midstream segment saw higher revenues. Cash provided by operations was $316.9 million, with cash and cash equivalents at $1,240.9 million. The company's consolidated debt stood at $2,678.6 million.
Reported net income of $314.7 million for Q1 2024.
Returned $269 million to shareholders and announced a $1.0 billion share repurchase program.
Regular quarterly dividend of $0.50 per share declared.
Increased revenues in the marketing and midstream segments.
Cash provided by operations totaled $316.9 million.
Cash and cash equivalents at $1,240.9 million.
Adjusted net income at $142.3 million for Q1 2024.
Refining segment income decreased.
Renewables segment reported a loss.
Lower base oil prices impacted the Lubricants & Specialties segment.
Consolidated debt stood at $2,678.6 million.
-
Reported net income attributable to HF Sinclair stockholders of
$314.7 million $1.57 $142.3 million $0.71 -
Reported EBITDA of
$617.4 million $399.1 million -
Returned
$269.0 million -
Authorized a new
$1.0 billion -
Announced a regular quarterly dividend of
$0.50
HF Sinclair’s Chief Executive Officer, Tim Go, commented, “We are pleased to report our first quarter, 2024 results. We continue to advance our corporate strategy focused on improving reliability, optimizing and integrating our portfolio and generating strong cash flows to support our cash return strategy. During the quarter, our businesses maintained safe and reliable operations, representing another quarter of successful turnaround and maintenance execution. We also returned
Refining segment income before interest and income taxes was
Renewables segment loss before interest and income taxes was
Marketing segment income before interest and income taxes was
Lubricants & Specialties segment income before interest and income taxes was
Midstream segment income before interest and income taxes was
For the first quarter of 2024, net cash provided by operations totaled
HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of
The Company has scheduled a webcast conference call for today, May 8, 2024, at 8:30 AM Eastern Time to discuss first quarter financial results. This webcast may be accessed at https://events.q4inc.com/attendee/868284986. An audio archive of this webcast will be available using the above noted link through May 22, 2024.
HF Sinclair Corporation, headquartered in
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
RESULTS OF OPERATIONS |
||||||||||||||
|
||||||||||||||
Financial Data (all information in this release is unaudited) |
||||||||||||||
|
Three Months Ended
|
|
Change from 2023 |
|||||||||||
|
2024 |
|
2023 |
|
Change |
|
Percent |
|||||||
|
(In thousands, except per share data) |
|||||||||||||
Sales and other revenues |
$ |
7,027,145 |
|
|
$ |
7,565,142 |
|
|
$ |
(537,997 |
) |
|
(7 |
)% |
Operating costs and expenses: |
|
|
|
|
|
|
|
|||||||
Cost of products sold: |
|
|
|
|
|
|
|
|||||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
|
5,926,500 |
|
|
|
6,104,057 |
|
|
|
(177,557 |
) |
|
(3 |
)% |
Lower of cost or market inventory valuation adjustment |
|
(219,370 |
) |
|
|
47,597 |
|
|
|
(266,967 |
) |
|
(561 |
)% |
|
|
5,707,130 |
|
|
|
6,151,654 |
|
|
|
(444,524 |
) |
|
(7 |
)% |
Operating expenses (exclusive of depreciation and amortization) |
|
607,112 |
|
|
|
639,383 |
|
|
|
(32,271 |
) |
|
(5 |
)% |
Selling, general and administrative expenses (exclusive of depreciation and amortization) |
|
103,374 |
|
|
|
95,913 |
|
|
|
7,461 |
|
|
8 |
% |
Depreciation and amortization |
|
198,729 |
|
|
|
173,983 |
|
|
|
24,746 |
|
|
14 |
% |
Total operating costs and expenses |
|
6,616,345 |
|
|
|
7,060,933 |
|
|
|
(444,588 |
) |
|
(6 |
)% |
Income from operations |
|
410,800 |
|
|
|
504,209 |
|
|
|
(93,409 |
) |
|
(19 |
)% |
|
|
|
|
|
|
|
|
|||||||
Other income (expense): |
|
|
|
|
|
|
|
|||||||
Earnings (loss) of equity method investments |
|
7,346 |
|
|
|
3,882 |
|
|
|
3,464 |
|
|
89 |
% |
Interest income |
|
22,179 |
|
|
|
19,935 |
|
|
|
2,244 |
|
|
11 |
% |
Interest expense |
|
(40,691 |
) |
|
|
(45,822 |
) |
|
|
5,131 |
|
|
(11 |
)% |
Gain on foreign currency transactions |
|
443 |
|
|
|
870 |
|
|
|
(427 |
) |
|
(49 |
)% |
Gain on sale of assets and other |
|
2,019 |
|
|
|
1,631 |
|
|
|
388 |
|
|
24 |
% |
|
|
(8,704 |
) |
|
|
(19,504 |
) |
|
|
10,800 |
|
|
(55 |
)% |
Income before income taxes |
|
402,096 |
|
|
|
484,705 |
|
|
|
(82,609 |
) |
|
(17 |
)% |
Income tax expense |
|
85,474 |
|
|
|
99,700 |
|
|
|
(14,226 |
) |
|
(14 |
)% |
Net income |
|
316,622 |
|
|
|
385,005 |
|
|
|
(68,383 |
) |
|
(18 |
)% |
Less net income attributable to noncontrolling interest |
|
1,958 |
|
|
|
31,739 |
|
|
|
(29,781 |
) |
|
(94 |
)% |
Net income attributable to HF Sinclair stockholders |
$ |
314,664 |
|
|
$ |
353,266 |
|
|
$ |
(38,602 |
) |
|
(11 |
)% |
|
|
|
|
|
|
|
|
|||||||
Earnings per share attributable to HF Sinclair stockholders: |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.57 |
|
|
$ |
1.79 |
|
|
$ |
(0.22 |
) |
|
(12 |
)% |
Diluted |
$ |
1.57 |
|
|
$ |
1.79 |
|
|
$ |
(0.22 |
) |
|
(12 |
)% |
Cash dividends declared per common share |
$ |
0.50 |
|
|
$ |
0.45 |
|
|
$ |
0.05 |
|
|
11 |
% |
Average number of common shares outstanding: |
|
|
|
|
|
|
|
|||||||
Basic |
|
198,710 |
|
|
|
195,445 |
|
|
|
3,265 |
|
|
2 |
% |
Diluted |
|
198,710 |
|
|
|
195,445 |
|
|
|
3,265 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|||||||
EBITDA |
$ |
617,379 |
|
|
$ |
652,836 |
|
|
$ |
(35,457 |
) |
|
(5 |
)% |
Adjusted EBITDA |
$ |
399,057 |
|
|
$ |
704,753 |
|
|
$ |
(305,696 |
) |
|
(43 |
)% |
Balance Sheet Data |
|||||
|
March 31, |
|
December 31, |
||
|
2024 |
|
2023 |
||
|
(In thousands) |
||||
Cash and cash equivalents |
$ |
1,240,860 |
|
$ |
1,353,747 |
Working capital |
$ |
3,404,525 |
|
$ |
3,371,905 |
Total assets |
$ |
17,915,990 |
|
$ |
17,716,265 |
Total debt |
$ |
2,678,645 |
|
$ |
2,739,083 |
Total equity |
$ |
10,276,089 |
|
$ |
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
The Renewables segment represents the operations of our
The Marketing segment represents branded fuel sales to
The Lubricants & Specialties segment represents Petro-Canada Lubricants Inc.’s production operations, located in
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
Beginning in the first quarter of 2024, our Refining segment acquired from our Midstream segment the refinery processing units at our
|
|
Refining |
|
Renewables |
|
Marketing |
|
Lubricants &
|
|
Midstream |
|
Corporate,
|
|
Consolidated
|
|||||||||||
|
|
(In thousands) |
|||||||||||||||||||||||
Three Months Ended March 31, 2024 |
|||||||||||||||||||||||||
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues from external customers |
|
$ |
5,373,025 |
|
|
$ |
179,669 |
|
|
$ |
775,807 |
|
$ |
675,545 |
|
$ |
23,099 |
|
$ |
— |
|
|
$ |
7,027,145 |
|
Intersegment revenues and other (1) |
|
|
831,220 |
|
|
|
59,890 |
|
|
|
— |
|
|
2,442 |
|
|
131,916 |
|
|
(1,025,468 |
) |
|
|
— |
|
|
|
$ |
6,204,245 |
|
|
$ |
239,559 |
|
|
$ |
775,807 |
|
$ |
677,987 |
|
$ |
155,015 |
|
$ |
(1,025,468 |
) |
|
$ |
7,027,145 |
|
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
|
$ |
5,474,522 |
|
|
$ |
230,273 |
|
|
$ |
752,530 |
|
$ |
492,846 |
|
$ |
— |
|
$ |
(1,023,671 |
) |
|
$ |
5,926,500 |
|
Lower of cost or market inventory valuation adjustment |
|
$ |
(220,558 |
) |
|
$ |
1,188 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
(219,370 |
) |
Operating expenses |
|
$ |
472,086 |
|
|
$ |
26,461 |
|
|
$ |
— |
|
$ |
64,000 |
|
$ |
45,518 |
|
$ |
(953 |
) |
|
$ |
607,112 |
|
Selling, general and administrative expenses |
|
$ |
48,717 |
|
|
$ |
1,402 |
|
|
$ |
7,756 |
|
$ |
34,568 |
|
$ |
3,929 |
|
$ |
7,002 |
|
|
$ |
103,374 |
|
Depreciation and amortization |
|
$ |
117,370 |
|
|
$ |
20,272 |
|
|
$ |
6,303 |
|
$ |
22,511 |
|
$ |
20,120 |
|
$ |
12,153 |
|
|
$ |
198,729 |
|
Income (loss) from operations |
|
$ |
312,108 |
|
|
$ |
(40,037 |
) |
|
$ |
9,218 |
|
$ |
64,062 |
|
$ |
85,448 |
|
$ |
(19,999 |
) |
|
$ |
410,800 |
|
Income (loss) before interest and income taxes |
|
$ |
312,014 |
|
|
$ |
(40,012 |
) |
|
$ |
9,428 |
|
$ |
64,487 |
|
$ |
93,050 |
|
$ |
(18,359 |
) |
|
$ |
420,608 |
|
Net income attributable to noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
1,958 |
|
$ |
— |
|
|
$ |
1,958 |
|
Earnings (loss) of equity method investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
7,388 |
|
$ |
(42 |
) |
|
$ |
7,346 |
|
Capital expenditures |
|
$ |
55,025 |
|
|
$ |
2,650 |
|
|
$ |
7,531 |
|
$ |
5,311 |
|
$ |
8,106 |
|
$ |
10,485 |
|
|
$ |
89,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three Months Ended March 31, 2023 |
|||||||||||||||||||||||||
Sales and other revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues from external customers |
|
$ |
5,665,214 |
|
|
$ |
202,413 |
|
|
$ |
937,385 |
|
$ |
733,714 |
|
$ |
26,416 |
|
$ |
— |
|
|
$ |
7,565,142 |
|
Intersegment revenues and other (1) |
|
|
1,053,401 |
|
|
|
95,603 |
|
|
|
— |
|
|
5,796 |
|
|
109,516 |
|
|
(1,264,316 |
) |
|
|
— |
|
|
|
$ |
6,718,615 |
|
|
$ |
298,016 |
|
|
$ |
937,385 |
|
$ |
739,510 |
|
$ |
135,932 |
|
$ |
(1,264,316 |
) |
|
$ |
7,565,142 |
|
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |
|
$ |
5,641,131 |
|
|
$ |
262,738 |
|
|
$ |
924,049 |
|
$ |
538,860 |
|
$ |
— |
|
$ |
(1,262,721 |
) |
|
$ |
6,104,057 |
|
Lower of cost or market inventory valuation adjustment |
|
$ |
— |
|
|
$ |
47,597 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
47,597 |
|
Operating expenses |
|
$ |
501,759 |
|
|
$ |
31,371 |
|
|
$ |
— |
|
$ |
63,593 |
|
$ |
41,679 |
|
$ |
981 |
|
|
$ |
639,383 |
|
Selling, general and administrative expenses |
|
$ |
39,078 |
|
|
$ |
915 |
|
|
$ |
6,963 |
|
$ |
39,264 |
|
$ |
4,635 |
|
$ |
5,058 |
|
|
$ |
95,913 |
|
Depreciation and amortization |
|
$ |
100,083 |
|
|
$ |
19,974 |
|
|
$ |
5,871 |
|
$ |
19,368 |
|
$ |
19,762 |
|
$ |
8,925 |
|
|
$ |
173,983 |
|
Income (loss) from operations |
|
$ |
436,564 |
|
|
$ |
(64,579 |
) |
|
$ |
502 |
|
$ |
78,425 |
|
$ |
69,856 |
|
$ |
(16,559 |
) |
|
$ |
504,209 |
|
Income (loss) before interest and income taxes |
|
$ |
436,885 |
|
|
$ |
(64,556 |
) |
|
$ |
502 |
|
$ |
78,225 |
|
$ |
73,912 |
|
$ |
(14,376 |
) |
|
$ |
510,592 |
|
Net income attributable to noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
1,752 |
|
$ |
29,987 |
|
|
$ |
31,739 |
|
Loss of equity method investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
3,882 |
|
$ |
— |
|
|
$ |
3,882 |
|
Capital expenditures |
|
$ |
67,774 |
|
|
$ |
4,844 |
|
|
$ |
5,255 |
|
$ |
8,649 |
|
$ |
7,614 |
|
$ |
5,933 |
|
|
$ |
100,069 |
|
(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. |
Refining Segment Operating Data
The following tables set forth information, including non-GAAP (generally accepted accounting principles) performance measures about our refinery operations. Refinery gross and net operating margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments and depreciation and amortization. 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
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
Mid-Continent Region |
|
|
||||||
Crude charge (BPD) (1) |
|
|
259,030 |
|
|
|
211,390 |
|
Refinery throughput (BPD) (2) |
|
|
273,890 |
|
|
|
231,260 |
|
Sales of produced refined products (BPD) (3) |
|
|
272,460 |
|
|
|
205,010 |
|
Refinery utilization (4) |
|
|
99.6 |
% |
|
|
81.3 |
% |
|
|
|
|
|
||||
Average per produced barrel (5) |
|
|
|
|
||||
Refinery gross margin |
|
$ |
10.47 |
|
|
$ |
20.06 |
|
Refinery operating expenses (6) |
|
|
6.40 |
|
|
|
9.28 |
|
Net operating margin |
|
$ |
4.07 |
|
|
$ |
10.78 |
|
|
|
|
|
|
||||
Refinery operating expenses per throughput barrel (7) |
|
$ |
6.37 |
|
|
$ |
8.23 |
|
|
|
|
|
|
||||
Feedstocks: |
|
|
|
|
||||
Sweet crude oil |
|
|
50 |
% |
|
|
65 |
% |
Sour crude oil |
|
|
25 |
% |
|
|
15 |
% |
Heavy sour crude oil |
|
|
19 |
% |
|
|
11 |
% |
Other feedstocks and blends |
|
|
6 |
% |
|
|
9 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
||||
Sales of produced refined products: |
|
|
|
|
||||
Gasolines |
|
|
52 |
% |
|
|
49 |
% |
Diesel fuels |
|
|
32 |
% |
|
|
29 |
% |
Jet fuels |
|
|
6 |
% |
|
|
8 |
% |
Fuel oil |
|
|
1 |
% |
|
|
1 |
% |
Asphalt |
|
|
3 |
% |
|
|
4 |
% |
Base oils |
|
|
4 |
% |
|
|
5 |
% |
LPG and other |
|
|
2 |
% |
|
|
4 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
2023 |
||||
West Region |
|
|
|
|
||||
Crude charge (BPD) (1) |
|
|
345,900 |
|
|
|
287,110 |
|
Refinery throughput (BPD) (2) |
|
|
369,410 |
|
|
|
326,870 |
|
Sales of produced refined products (BPD) (3) |
|
|
359,010 |
|
|
|
310,950 |
|
Refinery utilization (4) |
|
|
82.8 |
% |
|
|
68.7 |
% |
|
|
|
|
|
||||
Average per produced barrel (5) |
|
|
|
|
||||
Refinery gross margin |
|
$ |
14.39 |
|
|
$ |
25.28 |
|
Refinery operating expenses (6) |
|
|
9.59 |
|
|
|
11.81 |
|
Net operating margin |
|
$ |
4.80 |
|
|
$ |
13.47 |
|
|
|
|
|
|
||||
Refinery operating expenses per throughput barrel (7) |
|
$ |
9.32 |
|
|
$ |
11.23 |
|
|
|
|
|
|
||||
Feedstocks: |
|
|
|
|
||||
Sweet crude oil |
|
|
32 |
% |
|
|
32 |
% |
Sour crude oil |
|
|
43 |
% |
|
|
40 |
% |
Heavy sour crude oil |
|
|
12 |
% |
|
|
11 |
% |
Black wax crude oil |
|
|
7 |
% |
|
|
5 |
% |
Other feedstocks and blends |
|
|
6 |
% |
|
|
12 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
||||
Sales of produced refined products: |
|
|
|
|
||||
Gasolines |
|
|
53 |
% |
|
|
57 |
% |
Diesel fuels |
|
|
32 |
% |
|
|
31 |
% |
Jet fuels |
|
|
5 |
% |
|
|
4 |
% |
Fuel oil |
|
|
2 |
% |
|
|
2 |
% |
Asphalt |
|
|
2 |
% |
|
|
2 |
% |
LPG and other |
|
|
6 |
% |
|
|
4 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
Consolidated |
|
|
|
|
||||
Crude charge (BPD) (1) |
|
|
604,930 |
|
|
|
498,500 |
|
Refinery throughput (BPD) (2) |
|
|
643,300 |
|
|
|
558,130 |
|
Sales of produced refined products (BPD) (3) |
|
|
631,470 |
|
|
|
515,960 |
|
Refinery utilization (4) |
|
|
89.2 |
% |
|
|
73.5 |
% |
|
|
|
|
|
||||
Average per produced barrel (5) |
|
|
|
|
||||
Refinery gross margin |
|
$ |
12.70 |
|
|
$ |
23.20 |
|
Refinery operating expenses (6) |
|
|
8.22 |
|
|
|
10.81 |
|
Net operating margin |
|
$ |
4.48 |
|
|
$ |
12.39 |
|
|
|
|
|
|
||||
Refinery operating expenses per throughput barrel (7) |
|
$ |
8.06 |
|
|
$ |
9.99 |
|
|
|
|
|
|
||||
Feedstocks: |
|
|
|
|
||||
Sweet crude oil |
|
|
39 |
% |
|
|
46 |
% |
Sour crude oil |
|
|
36 |
% |
|
|
30 |
% |
Heavy sour crude oil |
|
|
15 |
% |
|
|
10 |
% |
Black wax crude oil |
|
|
4 |
% |
|
|
3 |
% |
Other feedstocks and blends |
|
|
6 |
% |
|
|
11 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
Three Months Ended March 31, |
||||
|
|
2024 |
|
2023 |
||
Consolidated |
|
|
|
|
||
Sales of produced refined products: |
|
|
|
|
||
Gasolines |
|
53 |
% |
|
54 |
% |
Diesel fuels |
|
32 |
% |
|
30 |
% |
Jet fuels |
|
6 |
% |
|
6 |
% |
Fuel oil |
|
1 |
% |
|
1 |
% |
Asphalt |
|
2 |
% |
|
3 |
% |
Base oils |
|
2 |
% |
|
2 |
% |
LPG and other |
|
4 |
% |
|
4 |
% |
Total |
|
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 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) |
Represents total Refining segment operating expenses, exclusive of depreciation and amortization, divided by sales volumes of refined products produced at our refineries. |
(7) |
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 about our renewables operations and includes our Sinclair RDU. The renewables gross and net operating margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments and depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.
|
|
Three Months Ended March 31, |
|||||
|
|
2024 |
|
2023 |
|||
Renewables |
|
|
|
|
|||
Sales volumes (in thousand gallons) |
|
|
61,172 |
|
|
|
46,012 |
Average per produced gallon (1) |
|
|
|
|
|||
Renewables gross margin |
|
$ |
0.15 |
|
|
$ |
0.77 |
Renewables operating expense (2) |
|
|
0.43 |
|
|
|
0.68 |
Net operating margin |
|
$ |
(0.28 |
) |
|
$ |
0.09 |
(1) |
Represents average amount per produced gallons 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) |
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 about our marketing operations. The marketing gross margin does not include the non-cash effects of depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.
|
|
Three Months Ended March 31, |
||||
|
|
2024 |
|
2023 |
||
Marketing |
|
|
|
|
||
Number of branded sites at period end (1) |
|
|
1,547 |
|
|
1,511 |
Sales volumes (in thousand gallons) |
|
|
321,010 |
|
|
328,407 |
Gross margin per gallon of sales (2) |
|
$ |
0.07 |
|
$ |
0.04 |
(1) |
Includes non- |
(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. |
Lubricants & Specialties Segment Operating Data
The following table sets forth information about our lubricants and specialties operations:
|
|
Three Months Ended March 31, |
||||
|
|
2024 |
|
2023 |
||
Lubricants & Specialties |
|
|
|
|
||
Sales of produced refined products (BPD) |
|
31,104 |
|
|
31,790 |
|
|
|
|
|
|
||
Sales of produced refined products: |
|
|
|
|
||
Finished products |
|
49 |
% |
|
50 |
% |
Base oils |
|
27 |
% |
|
29 |
% |
Other |
|
24 |
% |
|
21 |
% |
Total |
|
100 |
% |
|
100 |
% |
Midstream Segment Operating Data
The following table sets forth information about our midstream operations:
|
|
Three Months Ended March 31, |
||
|
|
2024 |
|
2023 |
Midstream |
|
|
|
|
Volumes (BPD) |
|
|
|
|
Pipelines: |
|
|
|
|
Affiliates—refined product pipelines |
|
164,628 |
|
143,002 |
Affiliates—intermediate pipelines |
|
138,071 |
|
114,326 |
Affiliates—crude pipelines |
|
441,454 |
|
473,712 |
|
|
744,153 |
|
731,040 |
Third parties—refined product pipelines |
|
36,723 |
|
40,431 |
Third parties—crude pipelines |
|
162,493 |
|
175,984 |
|
|
943,369 |
|
947,455 |
Terminals and loading racks: |
|
|
|
|
Affiliates |
|
788,919 |
|
686,845 |
Third parties |
|
33,110 |
|
42,462 |
|
|
822,029 |
|
729,307 |
Total for pipelines and terminals (BPD) |
|
1,765,398 |
|
1,676,762 |
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 financial statements.
Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as net income attributable to HF Sinclair stockholders plus (i) interest expense, net of interest income, (ii) income tax provision and (iii) depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i) lower of cost or market inventory valuation adjustments, (ii) decommissioning costs, (iii) HF Sinclair's pro-rata share of HEP's share of
EBITDA and Adjusted EBITDA are not calculations provided for under accounting principles generally accepted in
Set forth below is our calculation of EBITDA and Adjusted EBITDA:
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
|
|
(In thousands) |
||||||
Net income attributable to HF Sinclair stockholders |
|
$ |
314,664 |
|
|
$ |
353,266 |
|
Add interest expense |
|
|
40,691 |
|
|
|
45,822 |
|
Subtract interest income |
|
|
(22,179 |
) |
|
|
(19,935 |
) |
Add income tax expense |
|
|
85,474 |
|
|
|
99,700 |
|
Add depreciation and amortization |
|
|
198,729 |
|
|
|
173,983 |
|
EBITDA |
|
$ |
617,379 |
|
|
$ |
652,836 |
|
Add (subtract) lower of cost or market inventory valuation adjustment |
|
|
(219,370 |
) |
|
|
47,597 |
|
Add HF Sinclair's pro-rata share of HEP's share of |
|
|
— |
|
|
|
410 |
|
Add acquisition integration and regulatory costs |
|
|
1,048 |
|
|
|
3,910 |
|
Adjusted EBITDA |
|
$ |
399,057 |
|
|
$ |
704,753 |
|
EBITDA attributable to our Refining segment is presented below:
|
|
Three Months Ended
|
|||||
Refining Segment |
|
2024 |
|
2023 |
|||
|
|
(In thousands) |
|||||
Income before interest and income taxes (1) |
|
$ |
312,014 |
|
|
$ |
436,885 |
Add depreciation and amortization |
|
|
117,370 |
|
|
|
100,083 |
EBITDA |
|
|
429,384 |
|
|
|
536,968 |
Add lower of cost or market inventory valuation adjustment |
|
|
(220,558 |
) |
|
|
— |
Adjusted EBITDA |
|
$ |
208,826 |
|
|
$ |
536,968 |
(1) |
Income before interest and income taxes of our Refining segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision. |
EBITDA and Adjusted EBITDA attributable to our Renewables segment is set forth below:
|
|
Three Months Ended
|
||||||
Renewables Segment |
|
2024 |
|
2023 |
||||
|
|
(In thousands) |
||||||
Income (loss) before interest and income taxes (1) |
|
$ |
(40,012 |
) |
|
$ |
(64,556 |
) |
Add depreciation and amortization |
|
|
20,272 |
|
|
|
19,974 |
|
EBITDA |
|
|
(19,740 |
) |
|
|
(44,582 |
) |
Add lower of cost or market inventory valuation adjustment |
|
|
1,188 |
|
|
|
47,597 |
|
Adjusted EBITDA |
|
$ |
(18,552 |
) |
|
$ |
3,015 |
|
(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 provision. |
EBITDA attributable to our Marketing segment is set forth below:
|
|
Three Months Ended
|
||||
Marketing Segment |
|
2024 |
|
2023 |
||
|
|
(In thousands) |
||||
Income before interest and income taxes (1) |
|
$ |
9,428 |
|
$ |
502 |
Add: depreciation and amortization |
|
|
6,303 |
|
|
5,871 |
EBITDA |
|
$ |
15,731 |
|
$ |
6,373 |
(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 provision. |
EBITDA attributable to our Lubricants & Specialties segment is set forth below:
|
|
Three Months Ended
|
||||
Lubricants & Specialties Segment |
|
2024 |
|
2023 |
||
|
|
(In thousands) |
||||
Income before interest and income taxes (1) |
|
$ |
64,487 |
|
$ |
78,225 |
Add: depreciation and amortization |
|
|
22,511 |
|
|
19,368 |
EBITDA |
|
$ |
86,998 |
|
$ |
97,593 |
(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 provision. |
EBITDA and Adjusted EBITDA attributable to our Midstream segment is presented below:
|
|
Three Months Ended
|
||||||
Midstream Segment |
|
2024 |
|
2023 |
||||
|
|
(In thousands) |
||||||
Income before interest and income taxes (1) |
|
$ |
93,050 |
|
|
$ |
73,912 |
|
Add depreciation and amortization |
|
|
20,120 |
|
|
|
19,762 |
|
Subtract net income attributable to noncontrolling interest |
|
|
(1,958 |
) |
|
|
(1,752 |
) |
EBITDA |
|
$ |
111,212 |
|
|
$ |
91,922 |
|
Add (subtract) share of |
|
|
— |
|
|
|
870 |
|
Add acquisition integration and regulatory costs |
|
|
53 |
|
|
|
518 |
|
Adjusted EBITDA |
|
$ |
111,265 |
|
|
$ |
93,310 |
|
(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 provision. |
Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP performance measures that are used by our management and others to compare our refining performance to that of other companies in our industry. We believe these margin measures are helpful to investors in evaluating our refining performance on a relative and absolute basis. Refinery gross margin per produced barrel sold is total Refining segment revenues less total Refining segment cost of products sold, exclusive of lower of cost or market inventory valuation adjustments, divided by sales volumes of produced refined products sold. Net operating margin per barrel sold is the difference between refinery gross margin and refinery operating expenses per produced barrel sold. These two margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments or depreciation and amortization. Each of these component performance measures can be reconciled directly to our consolidated statements of income. Other companies in our industry may not calculate these performance measures in the same manner.
Reconciliation of average refining net operating margin per produced barrel sold to refinery gross margin to refining sales and other revenues
|
|
Three Months Ended
|
|||||
|
|
2024 |
|
2023 |
|||
|
|
(In thousands, except per barrel amounts) |
|||||
Consolidated |
|
|
|
|
|||
Refining segment sales and other revenues |
|
$ |
6,204,245 |
|
|
$ |
6,718,615 |
Refining segment cost of products sold (exclusive of lower of cost or market inventory adjustment) |
|
|
5,474,522 |
|
|
|
5,641,131 |
Lower of cost or market inventory adjustment |
|
|
(220,558 |
) |
|
|
— |
|
|
|
950,281 |
|
|
|
1,077,484 |
Add lower of cost or market inventory adjustment |
|
|
(220,558 |
) |
|
|
— |
Refinery gross margin |
|
$ |
729,723 |
|
|
$ |
1,077,484 |
|
|
|
|
|
|||
Refining segment operating expenses |
|
$ |
472,086 |
|
|
$ |
501,759 |
|
|
|
|
|
|||
Produced barrels sold (BPD) |
|
|
631,470 |
|
|
|
515,960 |
|
|
|
|
|
|||
Refinery gross margin per produced barrel sold |
|
$ |
12.70 |
|
|
$ |
23.20 |
Less average refinery operating expenses per produced barrel sold |
|
|
8.22 |
|
|
|
10.81 |
Net operating margin per produced barrel sold |
|
$ |
4.48 |
|
|
$ |
12.39 |
Reconciliation of renewables operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.
Renewables gross margin and net operating margin are non-GAAP performance measures that are used by our management and others to compare our renewables performance to that of other companies in our industry. We believe these margin measures are helpful to investors in evaluating our renewables performance on a relative and absolute basis. Renewables gross margin per produced gallon sold is total Renewables segment revenues less total Renewables segment cost of products sold, exclusive of lower of cost or market inventory valuation adjustments, divided by sales volumes of produced renewables products sold. Net operating margin per produced gallon sold is the difference between renewables gross margin and renewables operating expenses per produced gallon sold. These two margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments and depreciation and amortization. Each of these component performance measures can be reconciled directly to our consolidated statements of income. Other companies in our industry may not calculate these performance measures in the same manner.
Reconciliation of renewables gross margin and operating expenses to gross margin per produced gallon sold and net operating margin per produced gallon sold
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
|
|
(In thousands, except per gallon amounts) |
||||||
Renewables segment sales and other revenues |
|
$ |
239,559 |
|
|
$ |
298,016 |
|
Renewables segment cost of products sold (exclusive of lower of cost or market inventory adjustment) |
|
|
230,273 |
|
|
|
262,738 |
|
Lower of cost or market inventory adjustment |
|
|
1,188 |
|
|
|
47,597 |
|
|
|
|
8,098 |
|
|
|
(12,319 |
) |
Add (subtract) lower of cost or market inventory adjustment |
|
|
1,188 |
|
|
|
47,597 |
|
Renewables gross margin |
|
$ |
9,286 |
|
|
$ |
35,278 |
|
|
|
|
|
|
||||
Renewables segment operating expense |
|
$ |
26,461 |
|
|
$ |
31,371 |
|
|
|
|
|
|
||||
Produced gallons sold (in thousand gallons) |
|
|
61,172 |
|
|
|
46,012 |
|
|
|
|
|
|
||||
Renewables gross margin per produced gallon sold |
|
$ |
0.15 |
|
|
$ |
0.77 |
|
Less average renewables operating expense per produced gallon sold |
|
|
0.43 |
|
|
|
0.68 |
|
Net operating margin per produced gallon sold |
|
$ |
(0.28 |
) |
|
$ |
0.09 |
|
Reconciliation of marketing operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.
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. Marketing gross margin per gallon sold is total Marketing segment revenues less total Marketing segment cost of products sold divided by sales volumes of marketing products sold. This margin does not include the non-cash effects of depreciation and amortization. This component performance measure can be reconciled directly to our consolidated statements of income. Other companies in our industry may not calculate these performance measures in the same manner.
Reconciliation of marketing gross margin to gross margin per gallon sold
|
|
Three Months Ended
|
||||
|
|
2024 |
|
2023 |
||
|
|
(In thousands, except per gallon amounts) |
||||
Marketing segment sales and other revenues |
|
$ |
775,807 |
|
$ |
937,385 |
Marketing segment cost of products sold |
|
|
752,530 |
|
|
924,049 |
Marketing gross margin |
|
$ |
23,277 |
|
$ |
13,336 |
|
|
|
|
|
||
Sales volumes (in thousand gallons) |
|
|
321,010 |
|
|
328,407 |
|
|
|
|
|
||
Marketing segment gross margin per gallon sold |
|
$ |
0.07 |
|
$ |
0.04 |
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, HEP's share of
|
|
Three Months Ended March 31, |
|||||
|
|
2024 |
|
2023 |
|||
|
|
(In thousands, except per share amounts) |
|||||
Consolidated |
|
|
|
|
|||
GAAP: |
|
|
|
|
|||
Income before income taxes |
|
$ |
402,096 |
|
|
$ |
484,705 |
Income tax expense |
|
|
85,474 |
|
|
|
99,700 |
Net income |
|
|
316,622 |
|
|
|
385,005 |
Less net income attributable to noncontrolling interest |
|
|
1,958 |
|
|
|
31,739 |
Net income attributable to HF Sinclair stockholders |
|
|
314,664 |
|
|
|
353,266 |
|
|
|
|
|
|||
Non-GAAP adjustments to arrive at adjusted results: |
|
|
|
|
|||
Lower of cost or market inventory valuation adjustment |
|
|
(219,370 |
) |
|
|
47,597 |
HEP's share of |
|
|
— |
|
|
|
870 |
Acquisition integration and regulatory costs |
|
|
1,048 |
|
|
|
3,910 |
Total adjustments to income before income taxes |
|
|
(218,322 |
) |
|
|
52,377 |
Adjustment to income tax expense (1) |
|
|
(45,921 |
) |
|
|
11,096 |
Adjustment to net income attributable to noncontrolling interest |
|
|
— |
|
|
|
460 |
Total adjustments, net of tax |
|
|
(172,401 |
) |
|
|
40,821 |
|
|
|
|
|
|||
Adjusted results - Non-GAAP: |
|
|
|
|
|||
Adjusted income before income taxes |
|
|
183,774 |
|
|
|
537,082 |
Adjusted income tax expense (2) |
|
|
39,553 |
|
|
|
110,796 |
Adjusted net income |
|
|
144,221 |
|
|
|
426,286 |
Less net income attributable to noncontrolling interest |
|
|
1,958 |
|
|
|
32,199 |
Adjusted net income attributable to HF Sinclair stockholders |
|
$ |
142,263 |
|
|
$ |
394,087 |
Adjusted earnings per share - diluted (3) |
|
$ |
0.71 |
|
|
$ |
2.00 |
(1) |
Represents adjustment to GAAP income tax expense to arrive at adjusted income tax expense, which is computed as follows: |
|
|
Three Months Ended
|
|||||
|
|
2024 |
|
2023 |
|||
|
|
(In thousands) |
|||||
Non-GAAP income tax expense (2) |
|
$ |
39,553 |
|
|
$ |
110,796 |
Add GAAP income tax expense |
|
|
85,474 |
|
|
|
99,700 |
Non-GAAP adjustment to income tax expense |
|
$ |
(45,921 |
) |
|
$ |
11,096 |
(2) |
Non-GAAP income tax expense 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. |
|
|
(3) |
Adjusted earnings per share - diluted is calculated as adjusted net income 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
|
||||||
|
|
2024 |
|
2023 |
||||
|
|
(In thousands) |
||||||
GAAP: |
|
|
|
|
||||
Income before income taxes |
|
$ |
402,096 |
|
|
$ |
484,705 |
|
Income tax expense |
|
$ |
85,474 |
|
|
$ |
99,700 |
|
Effective tax rate for GAAP financial statements |
|
|
21.3 |
% |
|
|
20.6 |
% |
Adjusted - Non-GAAP: |
|
|
|
|
||||
Effect of Non-GAAP adjustments |
|
|
0.2 |
% |
|
|
— |
% |
Effective tax rate for adjusted results |
|
|
21.5 |
% |
|
|
20.6 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508372525/en/
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
FAQ
What was HF Sinclair's net income for Q1 2024?
What was the adjusted net income for HF Sinclair in Q1 2024?
What dividend amount was declared by HF Sinclair for Q1 2024?
What segments saw increased revenues according to the PR?
