• 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.

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 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.