- 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
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
HF Sinclair (NYSE:DINO)
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De Oct 2024 a Nov 2024
HF Sinclair (NYSE:DINO)
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De Nov 2023 a Nov 2024
