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

Rhea-AI Summary

HF Sinclair (NYSE: DINO) reported a Q3 2024 net loss of $(75.9) million, or $(0.40) per diluted share, compared to net income of $790.9 million in Q3 2023. Adjusted net income was $96.5 million, or $0.51 per diluted share. The company returned $221.8 million to stockholders through dividends and share repurchases. The refining segment saw decreased performance with adjusted EBITDA of $110.0 million, down from $1,007.4 million year-over-year, mainly due to lower refinery gross margins. The company maintained strong liquidity with $1,229.5 million in cash and announced a regular quarterly dividend of $0.50 per share.

Positive

• Returned $221.8 million to stockholders through dividends and share repurchases
• Maintained strong cash position of $1,229.5 million
• Increased crude oil charge to 607,010 BPD from 601,930 BPD YoY
• Improved Midstream segment Adjusted EBITDA to $111.6 million from $100.9 million YoY

Negative

• Net loss of $(75.9) million compared to $790.9 million profit YoY
• Refining segment Adjusted EBITDA declined to $110.0 million from $1,007.4 million YoY
• Adjusted refinery gross margin decreased 59% to $10.79 per barrel
• Renewables segment reported loss of $(23.1) million compared to $3.1 million profit YoY

Insights

Financial Analyst

The Q3 2024 results reveal significant challenges for HF Sinclair, with a notable shift from a $790.9 million profit in Q3 2023 to a $75.9 million loss. The refining segment was particularly impacted, with Adjusted EBITDA dropping 89% to $110.0 million due to compressed margins and high global fuel supply. Despite operational headwinds, the company maintained shareholder returns, distributing $221.8 million through dividends and buybacks.

Key metrics show concerning trends:

• Adjusted refinery gross margin fell 59% to $10.79 per barrel
• Renewables segment shifted to a loss of $23.1 million
• Cash position decreased by $124.3 million since December 2023

The maintained $0.50 quarterly dividend signals management's confidence in liquidity despite challenging market conditions.

Market Research Analyst

The current market dynamics present significant headwinds for HF Sinclair's core business. High global transportation fuel supply is compressing margins across the industry, particularly impacting the refining segment. The company's diversification strategy through Marketing, Midstream and Lubricants segments provides some stability, but isn't sufficient to offset the major decline in refining performance.

The slight increase in crude oil processing capacity to 607,010 BPD and improved operational reliability demonstrate operational efficiency, but market conditions are overwhelming these improvements. The renewable segment's struggles, despite higher volumes, indicate broader challenges in the alternative fuels market.

• 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)-- 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	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241031040055/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 (DINO) earnings per share in Q3 2024?

HF Sinclair reported a loss of $(0.40) per diluted share, with adjusted earnings of $0.51 per diluted share in Q3 2024.

How much did HF Sinclair (DINO) return to shareholders in Q3 2024?

HF Sinclair returned $221.8 million to stockholders through $95.3 million in dividends and $126.5 million in share repurchases.

What is HF Sinclair's (DINO) quarterly dividend for Q4 2024?

HF Sinclair declared a regular quarterly dividend of $0.50 per share, payable on December 4, 2024.

How did HF Sinclair's (DINO) refining segment perform in Q3 2024?

The refining segment reported an Adjusted EBITDA of $110.0 million, down from $1,007.4 million in Q3 2023, due to lower refinery gross margins.