- Reported net income attributable to HF Sinclair stockholders of
$790.9 million, or $4.23 per diluted share, and adjusted net income
of $760.4 million, or $4.06 per diluted share, for the third
quarter
- Reported EBITDA of $1,245.6 million and Adjusted EBITDA of
$1,206.5 million for the third quarter
- Returned $669.2 million to stockholders through dividends and
share repurchases in the third quarter
- Announced a regular quarterly dividend of $0.45 per share
HF Sinclair Corporation (NYSE: DINO) (“HF Sinclair” or the
“Company”) today reported third quarter net income attributable to
HF Sinclair stockholders of $790.9 million, or $4.23 per diluted
share, for the quarter ended September 30, 2023, compared to $954.4
million, or $4.45 per diluted share, for the quarter ended
September 30, 2022. Excluding the adjustments shown in the
accompanying earnings release table, adjusted net income
attributable to HF Sinclair stockholders for the third quarter of
2023 was $760.4 million, or $4.06 per diluted share, compared to
$982.9 million, or $4.58 per diluted share, for the third quarter
of 2022, which excludes certain items that collectively decreased
net income by $28.5 million.
HF Sinclair’s CEO, Tim Go, commented, “HF Sinclair generated
strong third quarter results driven by solid performance across our
refining, lubricants, HEP and marketing businesses which highlights
the diversification of our portfolio. During the quarter, we also
returned $669 million in cash to shareholders through share
repurchases and dividends demonstrating our continued commitment to
our cash return strategy and long-term payout ratio. Looking
forward, we remain focused on executing our strategy of safe and
reliable operations as we continue to integrate and optimize our
assets across our portfolio.”
Refining segment income before interest and income taxes was
$915.9 million for the third quarter of 2023, compared to $1,344.1
million for the third quarter of 2022. The segment reported EBITDA
of $1,035.8 million for the third quarter of 2023 compared to
$1,446.7 million for the third quarter of 2022. Excluding the lower
of cost or market inventory valuation benefit of $26.8 million,
Adjusted EBITDA in the third quarter of 2023 was $1,009.0 million.
This decrease was principally driven by lower refinery gross
margins in both the West and Mid-Continent regions and lower
refined product sales volumes, which resulted in lower refining
segment earnings in the quarter. Consolidated refinery gross margin
was $26.59 per produced barrel, a 16% decrease compared to $31.47
for the third quarter of 2022. Crude oil charge averaged 601,930
barrels per day (“BPD”) for the third quarter of 2023 compared to
645,780 BPD for the third quarter of 2022. This decrease was
primarily a result of turnarounds at our Tulsa and Casper
refineries in the third quarter of 2023.
Renewables segment income before interest and income taxes was
$3.1 million for the third quarter of 2023, compared to a loss of
$(49.3) million for the third quarter of 2022. The segment reported
EBITDA of $22.0 million for the third quarter of 2023 compared to
$(31.1) million for the third quarter of 2022. Excluding the lower
of cost or market inventory valuation adjustment, the segment
reported Adjusted EBITDA of $5.0 million for the third quarter of
2023 compared to $(14.2) million for the third quarter of 2022.
Total sales volumes were 55 million gallons for the third quarter
of 2023 as compared to 52 million gallons for the third quarter of
2022.
Marketing segment income before interest and income taxes was
$15.1 million for the third quarter of 2023 compared to $3.9
million for the third quarter of 2022. The segment reported EBITDA
of $21.1 million for the third quarter of 2023 compared to $10.2
million for the third quarter of 2022. Total branded fuel sales
volumes were 398 million gallons for the third quarter of 2023 as
compared to 362 million gallons for the third quarter of 2022.
Lubricants and Specialty Products segment income before interest
and income taxes was $95.7 million for the third quarter of 2023,
compared to a loss of $(5.0) million in the third quarter of 2022.
The segment reported EBITDA of $118.4 million for the third quarter
of 2023 compared to $15.2 million in the third quarter of 2022.
This increase was largely driven by a FIFO benefit from consumption
of lower priced feedstock inventory for the third quarter of 2023
of $29.9 million as compared to a charge of $44.4 million for the
third quarter of 2022.
Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $94.4
million for the third quarter of 2023 compared to $66.0 million for
the third quarter of 2022, and Adjusted EBITDA of $118.5 million
for the third quarter of 2023 compared to $110.1 million for the
third quarter of 2022.
For the third quarter of 2023, net cash provided by operations
totaled $1,398.9 million. At September 30, 2023, the Company's cash
and cash equivalents totaled $2,214.8 million, a $600.1 million
increase over cash and cash equivalents of $1,614.6 million at June
30, 2023. During the third quarter of 2023, the Company announced
and paid a regular dividend of $0.45 per share to stockholders
totaling $83.6 million and spent $585.6 million on share
repurchases. Additionally, the Company's consolidated debt was
$3,169.8 million. The Company’s debt, exclusive of HEP debt, which
is nonrecourse to HF Sinclair, was $1,701.3 million at September
30, 2023.
HF Sinclair also announced today that its Board of Directors
declared a regular quarterly dividend in the amount of $0.45 per
share, payable on December 5, 2023 to holders of record of common
stock on November 16, 2023.
The Company has scheduled a webcast conference call for today,
November 2, 2023, at 9:30 AM Eastern Time to discuss third quarter
financial results. This webcast may be accessed at
https://events.q4inc.com/attendee/172908001. An audio archive of
this webcast will be available using the above noted link through
November 16, 2023.
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 other specialty products. HF Sinclair owns and operates
refineries located in Kansas, Oklahoma, New Mexico, Wyoming,
Washington and Utah and markets its refined products principally in
the Southwest U.S., the Rocky Mountains extending into the Pacific
Northwest and in other neighboring Plains states. HF Sinclair
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. 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. Through its subsidiaries, HF
Sinclair produces renewable diesel at two of its facilities in
Wyoming and also at its facility in Artesia, New Mexico. HF
Sinclair also owns a 47% limited partner interest and a
non-economic general partner interest in Holly Energy Partners,
L.P., a master limited partnership that provides petroleum product
and crude oil transportation, terminalling, storage and throughput
services to the petroleum industry, including HF Sinclair
subsidiaries.
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 our 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 our plans and
objectives for future operations. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable, we cannot assure you that our expectations will prove
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 risk that the transactions
contemplated by the Agreement and Plan of Merger, dated August 15,
2023 (the “Merger Agreement”), which provides for the merger of a
subsidiary of the Company with and into HEP, with HEP surviving as
an indirect wholly-owned subsidiary of the Company (such merger,
together with the other transactions contemplated by the Merger
Agreement, being referred to herein as the “HEP Merger
Transaction”), are not consummated during the expected timeframe;
failure to obtain the required approvals for the HEP Merger
Transaction, including the ability to obtain the requisite
approvals from HF Sinclair stockholders or HEP unitholders; the
substantial transaction-related costs that may be incurred by the
Company and HEP in connection with the HEP Merger Transaction; the
risk that the market value of HF Sinclair common stock will
decline; potential dilution on HF Sinclair's earnings per share of
HF Sinclair common stock; the possibility that financial
projections by the Company and HEP may not prove to be reflective
of actual future results; the focus of management time and
attention on the HEP Merger Transaction and other disruptions
arising from the HEP Merger Transaction, which may make it more
difficult to maintain relationships with customers, employees or
suppliers; legal proceedings that may be instituted against HF
Sinclair or HEP in connection with the HEP Merger Transaction;
limitations on the Company's ability to effectuate share
repurchases due to market conditions and corporate, tax, regulatory
and other considerations; the Company’s and HEP’s ability to
successfully integrate the Sinclair Oil Corporation (now known as
Sinclair Oil LLC) and Sinclair Transportation Company LLC
businesses acquired from The Sinclair Companies (now known as REH
Company) (collectively, the “Sinclair Transactions”) with their
existing operations and fully realize the expected synergies of the
Sinclair Transactions or on the expected timeline; the Company's
ability to successfully integrate the operation of the Puget Sound
refinery with its existing operations; the demand for and supply of
crude oil and refined products, including uncertainty regarding the
increasing societal expectations that companies address climate
change; 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, or other
catastrophes or disruptions affecting our 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
increases in interest rates; the availability and cost of financing
to the Company; the effectiveness of the Company’s capital
investments and marketing strategies; the Company’s and HEP’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 and
HEP’s ability to timely obtain or maintain permits, including those
necessary for operations or capital projects; the ability of the
Company to acquire refined or lubricant product operations or
pipeline and terminal operations on acceptable terms and to
integrate any existing or future acquired operations; the
possibility of terrorist or cyberattacks and the consequences of
any such attacks; uncertainty regarding the effects and duration of
global hostilities, including the Israel-Gaza 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; and other business,
financial, operational and legal risks and uncertainties detailed
from time to time in the Company’s and HEP’s SEC filings. 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 2022
2023
2022
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
8,905,471
$
10,599,002
$
(1,693,531
)
(16
)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
6,935,650
8,375,253
(1,439,603
)
(17
)
Lower of cost or market inventory
valuation adjustment
(43,848
)
16,847
(60,695
)
(360
)
6,891,802
8,392,100
(1,500,298
)
(18
)
Operating expenses (exclusive of
depreciation and amortization)
622,532
604,591
17,941
3
Selling, general and administrative
expenses (exclusive of depreciation and amortization)
124,213
102,677
21,536
21
Depreciation and amortization
195,562
171,973
23,589
14
Total operating costs and
expenses
7,834,109
9,271,341
(1,437,232
)
(16
)
Income from operations
1,071,362
1,327,661
(256,299
)
(19
)
Other income (expense):
Earnings (loss) of equity method
investments
3,009
(16,334
)
19,343
(118
)
Interest income
24,577
9,821
14,756
150
Interest expense
(48,686
)
(44,830
)
(3,856
)
9
Gain on foreign currency transactions
860
1,544
(684
)
(44
)
Gain on sale of assets and other
8,954
2,130
6,824
320
(11,286
)
(47,669
)
36,383
(76
)
Income before income taxes
1,060,076
1,279,992
(219,916
)
(17
)
Income tax expense
235,015
301,853
(66,838
)
(22
)
Net income
825,061
978,139
(153,078
)
(16
)
Less net income attributable to
noncontrolling interest
34,139
23,734
10,405
44
Net income attributable to HF Sinclair
stockholders
$
790,922
$
954,405
$
(163,483
)
(17
)%
Earnings per share attributable to HF
Sinclair stockholders:
Basic
$
4.23
$
4.45
$
(0.22
)
(5
)%
Diluted
$
4.23
$
4.45
$
(0.22
)
(5
)%
Cash dividends declared per common
share
$
0.45
$
0.40
$
0.05
13
%
Average number of common shares
outstanding:
Basic
185,456
212,388
(26,932
)
(13
)%
Diluted
185,456
212,388
(26,932
)
(13
)%
EBITDA
$
1,245,608
$
1,463,240
$
(217,632
)
(15
)%
Adjusted EBITDA
$
1,206,491
$
1,500,321
$
(293,830
)
(20
)%
Nine Months Ended
September 30,
Change from 2022
2023
2022
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
24,304,259
$
29,219,912
$
(4,915,653
)
(17
)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
19,313,312
23,457,180
(4,143,868
)
(18
)
Lower of cost or market inventory
valuation adjustment
(4,114
)
42,839
(46,953
)
(110
)
19,309,198
23,500,019
(4,190,821
)
(18
)
Operating expenses (exclusive of
depreciation and amortization)
1,808,715
1,688,152
120,563
7
Selling, general and administrative
expenses (exclusive of depreciation and amortization)
347,514
323,974
23,540
7
Depreciation and amortization
558,905
480,618
78,287
16
Total operating costs and
expenses
22,024,332
25,992,763
(3,968,431
)
(15
)
Income from operations
2,279,927
3,227,149
(947,222
)
(29
)
Other income (expense):
Earnings (loss) of equity method
investments
10,436
(7,261
)
17,697
(244
)
Interest income
62,103
12,662
49,441
390
Interest expense
(141,490
)
(118,650
)
(22,840
)
19
Gain on foreign currency transactions
2,478
778
1,700
219
Gain on sale of assets and other
11,737
8,345
3,392
41
(54,736
)
(104,126
)
49,390
(47
)
Income before income taxes
2,225,191
3,123,023
(897,832
)
(29
)
Income tax expense
480,640
706,675
(226,035
)
(32
)
Net income
1,744,551
2,416,348
(671,797
)
(28
)
Less net income attributable to
noncontrolling interest
92,702
80,707
11,995
15
Net income attributable to HF Sinclair
stockholders
$
1,651,849
$
2,335,641
$
(683,792
)
(29
)%
Earnings per share attributable to HF
Sinclair stockholders:
Basic
$
8.57
$
11.35
$
(2.78
)
(24
)%
Diluted
$
8.57
$
11.35
$
(2.78
)
(24
)%
Cash dividends declared per common
share
$
1.35
$
0.80
$
0.55
69
%
Average number of common shares
outstanding:
Basic
191,047
203,610
(12,563
)
(6
)%
Diluted
191,047
203,610
(12,563
)
(6
)%
EBITDA
$
2,770,781
$
3,628,922
$
(858,141
)
(24
)%
Adjusted EBITDA
$
2,779,407
$
3,730,036
$
(950,629
)
(25
)%
Balance Sheet Data
September 30,
December 31,
2023
2022
(In thousands)
Cash and cash equivalents
$
2,214,751
$
1,665,066
Working capital
$
3,925,173
$
3,502,790
Total assets
$
18,901,812
$
18,125,483
Total debt
$
3,169,781
$
3,255,472
Total equity
$
10,615,267
$
10,017,572
Segment Information
Our operations are organized into five reportable segments,
Refining, Renewables, Marketing, Lubricants and Specialty Products
and HEP. 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 and Puget Sound refineries and HF
Sinclair Asphalt Company LLC (“Asphalt”). Effective with the
Sinclair Transactions that closed on March 14, 2022, the Refining
segment includes our Parco and Casper refineries. 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”), which was mechanically complete in
the fourth quarter of 2021 and operational in the first quarter of
2022, the pre-treatment unit at our Artesia, New Mexico facility,
which was completed and operational in the first quarter of 2022
and the Artesia RDU, which was completed and operational in the
second quarter of 2022. Also, effective with the Sinclair
Transactions that closed on March 14, 2022, the Renewables segment
includes the Sinclair RDU.
Effective with that Sinclair Transactions that closed on March
14, 2022, 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 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 and Specialty Products segment represents
Petro-Canada Lubricants Inc.’s production operations, located in
Mississauga, Ontario, that includes lubricant products such as base
oils, white oils, specialty products and finished lubricants, and
the operations of our Petro-Canada Lubricants 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 and
Specialty Products 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 largest
suppliers of locomotive engine oil in North America. Also, the
Lubricants and Specialty Products 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 HEP segment includes all of the operations of HEP, which
owns and operates logistics and refinery assets consisting of
petroleum product and crude oil pipelines, terminals, tankage,
loading rack facilities and refinery processing units in the
Mid-Continent, Southwest and Rocky Mountains geographic regions of
the United States. The HEP segment also includes 50% ownership
interests in each of the Osage Pipeline (“Osage”), the Cheyenne
Pipeline and Cushing Connect, and effective with the Sinclair
Transactions that closed on March 14, 2022, a 25.06% ownership
interest in the Saddle Butte Pipeline and a 49.995% ownership
interest in the Pioneer Pipeline. Revenues from the HEP segment are
earned through transactions with unaffiliated parties for pipeline
transportation, rental and terminalling operations as well as
revenues relating to pipeline transportation services provided for
our refining operations. Due to certain basis differences, our
reported amounts for the HEP segment may not agree to amounts
reported in HEP’s periodic public filings.
Refining
Renewables
Marketing
Lubricants and Specialty
Products
HEP
Corporate, Other and
Eliminations
Consolidated Total
(In thousands)
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
1,333,008
118,033
—
565
129,287
(1,580,893
)
—
$
8,050,934
$
331,177
$
1,259,205
$
686,688
$
158,360
$
(1,580,893
)
$
8,905,471
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
6,499,721
$
294,682
$
1,230,372
$
465,602
$
—
$
(1,554,727
)
$
6,935,650
Lower of cost or market inventory
valuation adjustment
$
(26,842
)
$
(17,006
)
$
—
$
—
$
—
$
—
$
(43,848
)
Operating expenses
$
495,908
$
30,198
$
—
$
64,965
$
58,422
$
(26,961
)
$
622,532
Selling, general and administrative
expenses
$
50,345
$
1,336
$
7,731
$
40,051
$
7,947
$
16,803
$
124,213
Depreciation and amortization
$
119,909
$
18,904
$
6,002
$
22,719
$
24,997
$
3,031
$
195,562
Income (loss) from operations
$
911,893
$
3,063
$
15,100
$
93,351
$
66,994
$
(19,039
)
$
1,071,362
Income (loss) before interest and income
taxes
$
915,927
$
3,087
$
15,134
$
95,685
$
71,285
$
(16,933
)
$
1,084,185
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
1,886
$
32,253
$
34,139
Earnings (loss) of equity method
investments
$
—
$
—
$
—
$
—
$
3,581
$
(572
)
$
3,009
Capital expenditures
$
44,824
$
2,812
$
4,223
$
10,070
$
5,714
$
13,544
$
81,187
Three Months Ended September 30,
2022
Sales and other revenues:
Revenues from external customers
$
8,230,606
$
254,952
$
1,266,681
$
820,630
$
26,133
$
—
$
10,599,002
Intersegment revenues
1,405,180
100,708
—
2,809
122,869
(1,631,566
)
—
$
9,635,786
$
355,660
$
1,266,681
$
823,439
$
149,002
$
(1,631,566
)
$
10,599,002
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
7,680,153
$
345,588
$
1,255,119
$
696,864
$
—
$
(1,602,471
)
$
8,375,253
Lower of cost or market inventory
valuation adjustment
$
—
$
16,847
$
—
$
—
$
—
$
—
$
16,847
Operating expenses
$
474,631
$
23,427
$
—
$
69,506
$
60,471
$
(23,444
)
$
604,591
Selling, general and administrative
expenses
$
34,353
$
873
$
1,351
$
41,833
$
3,750
$
20,517
$
102,677
Depreciation and amortization
$
102,599
$
18,228
$
6,355
$
20,227
$
25,846
$
(1,282
)
$
171,973
Income (loss) from operations
$
1,344,050
$
(49,303
)
$
3,856
$
(4,991
)
$
58,935
$
(24,886
)
$
1,327,661
Income (loss) before interest and income
taxes
$
1,344,103
$
(49,285
)
$
3,856
$
(4,978
)
$
43,096
$
(21,791
)
$
1,315,001
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
1,962
$
21,772
$
23,734
Loss of equity method investments
$
—
$
—
$
—
$
—
$
(16,334
)
$
—
$
(16,334
)
Capital expenditures
$
37,653
$
24,499
$
1,487
$
10,158
$
7,948
$
17,958
$
99,703
Refining
Renewables
Marketing
Lubricants and Specialty
Products
HEP
Corporate, Other and
Eliminations
Consolidated
Total
(In thousands)
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
3,524,078
311,758
—
10,890
356,087
(4,202,813
)
—
$
21,808,931
$
902,378
$
3,237,523
$
2,116,831
$
441,409
$
(4,202,813
)
$
24,304,259
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
17,947,530
$
816,226
$
3,162,727
$
1,513,329
$
—
$
(4,126,500
)
$
19,313,312
Lower of cost or market inventory
valuation adjustment
$
—
$
(4,114
)
$
—
$
—
$
—
$
—
$
(4,114
)
Operating expenses
$
1,440,670
$
85,942
$
—
$
192,592
$
163,706
$
(74,195
)
$
1,808,715
Selling, general and administrative
expenses
$
142,461
$
3,587
$
22,821
$
124,229
$
18,094
$
36,322
$
347,514
Depreciation and amortization
$
335,909
$
57,846
$
17,889
$
63,173
$
76,002
$
8,086
$
558,905
Income (loss) from operations
$
1,942,361
$
(57,109
)
$
34,086
$
223,508
$
183,607
$
(46,526
)
$
2,279,927
Income (loss) before interest and income
taxes
$
1,946,700
$
(57,040
)
$
34,218
$
225,427
$
195,599
$
(40,326
)
$
2,304,578
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
5,177
$
87,525
$
92,702
Earnings (loss) of equity method
investments
$
—
$
—
$
—
$
—
$
11,008
$
(572
)
$
10,436
Capital expenditures
$
157,785
$
11,193
$
15,678
$
24,453
$
21,978
$
30,350
$
261,437
Nine Months Ended September 30,
2022
Sales and other revenues:
Revenues from external customers
$
23,442,162
$
399,204
$
2,880,024
$
2,419,212
$
79,310
$
—
$
29,219,912
Intersegment revenues
2,988,372
198,401
—
9,177
325,660
(3,521,610
)
—
$
26,430,534
$
597,605
$
2,880,024
$
2,428,389
$
404,970
$
(3,521,610
)
$
29,219,912
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
21,709,048
$
582,521
$
2,837,583
$
1,777,869
$
—
$
(3,449,841
)
$
23,457,180
Lower of cost or market inventory
valuation adjustment
$
—
$
42,839
$
—
$
—
$
—
$
—
$
42,839
Operating expenses
$
1,298,907
$
79,796
$
—
$
209,977
$
156,994
$
(57,522
)
$
1,688,152
Selling, general and administrative
expenses
$
107,358
$
2,746
$
2,540
$
127,137
$
12,745
$
71,448
$
323,974
Depreciation and amortization
$
300,060
$
34,399
$
11,274
$
61,426
$
73,803
$
(344
)
$
480,618
Income (loss) from operations
$
3,015,161
$
(144,696
)
$
28,627
$
251,980
$
161,428
$
(85,351
)
$
3,227,149
Income (loss) before interest and income
taxes
$
3,015,274
$
(144,589
)
$
28,627
$
254,839
$
154,808
$
(79,948
)
$
3,229,011
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
7,154
$
73,553
$
80,707
Loss of equity method investments
$
—
$
—
$
—
$
—
$
(7,261
)
$
—
$
(7,261
)
Capital expenditures
$
104,284
$
210,793
$
6,796
$
24,553
$
31,194
$
39,823
$
417,443
Refining Segment Operating Data
The following tables set forth information, including non-GAAP
(generally accepted accounting principles) performance measures
about our refinery operations. Refinery gross and net operating
margins do not include the non-cash effects of lower of cost or
market inventory valuation adjustments and depreciation and
amortization. Reconciliations to amounts reported under GAAP are
provided under “Reconciliations to Amounts Reported Under Generally
Accepted Accounting Principles” below.
The disaggregation of our refining geographic operating data is
presented in two regions, Mid-Continent and West, to best reflect
the economic drivers of our refining operations. The Mid-Continent
region is comprised of the El Dorado and Tulsa refineries. The West
region is comprised of the Puget Sound, Navajo, Woods Cross, Parco
and Casper refineries. The refinery operations of the Parco and
Casper refineries are included for the period March 14, 2022 (date
of acquisition) through September 30, 2023.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022 (8)
Mid-Continent Region
Crude charge (BPD) (1)
250,280
278,410
230,130
282,130
Refinery throughput (BPD) (2)
269,270
293,890
249,170
297,240
Sales of produced refined products (BPD)
(3)
257,270
280,390
234,470
279,940
Refinery utilization (4)
96.3
%
107.1
%
88.5
%
108.5
%
Average per produced barrel (5)
Refinery gross margin
$
21.81
$
25.72
$
20.61
$
22.62
Refinery operating expenses (6)
6.80
6.12
7.44
6.12
Net operating margin
$
15.01
$
19.60
$
13.17
$
16.50
Refinery operating expenses per throughput
barrel (7)
$
6.50
$
5.84
$
7.00
$
5.76
Feedstocks:
Sweet crude oil
53
%
59
%
59
%
58
%
Sour crude oil
22
%
26
%
18
%
21
%
Heavy sour crude oil
18
%
10
%
15
%
16
%
Other feedstocks and blends
7
%
5
%
8
%
5
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
52
%
50
%
51
%
50
%
Diesel fuels
30
%
34
%
30
%
34
%
Jet fuels
6
%
6
%
6
%
6
%
Fuel oil
1
%
1
%
1
%
1
%
Asphalt
4
%
4
%
4
%
3
%
Base oils
3
%
3
%
4
%
4
%
LPG and other
4
%
2
%
4
%
2
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022 (8)
West Region
Crude charge (BPD) (1)
351,650
367,370
321,700
317,700
Refinery throughput (BPD) (2)
375,830
391,230
351,880
340,920
Sales of produced refined products (BPD)
(3)
376,910
394,980
348,740
338,330
Refinery utilization (4)
84.1
%
87.9
%
77.0
%
81.2
%
Average per produced barrel (5)
Refinery gross margin
$
29.85
$
35.56
$
26.70
$
32.40
Refinery operating expenses (6)
9.66
8.72
10.13
9.00
Net operating margin
$
20.19
$
26.84
$
16.57
$
23.40
Refinery operating expenses per throughput
barrel (7)
$
9.69
$
8.80
$
10.04
$
8.93
Feedstocks:
Sweet crude oil
30
%
25
%
31
%
27
%
Sour crude oil
45
%
50
%
43
%
50
%
Heavy sour crude oil
13
%
14
%
12
%
11
%
Black wax crude oil
6
%
5
%
6
%
5
%
Other feedstocks and blends
6
%
6
%
8
%
7
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
51
%
53
%
53
%
52
%
Diesel fuels
32
%
34
%
31
%
32
%
Jet fuels
7
%
5
%
6
%
5
%
Fuel oil
2
%
1
%
2
%
4
%
Asphalt
3
%
3
%
2
%
3
%
LPG and other
5
%
4
%
6
%
4
%
Total
100
%
100
%
100
%
100
%
Consolidated
Crude charge (BPD) (1)
601,930
645,780
551,830
599,830
Refinery throughput (BPD) (2)
645,100
685,120
601,050
638,160
Sales of produced refined products (BPD)
(3)
634,180
675,370
583,210
618,270
Refinery utilization (4)
88.8
%
95.2
%
81.4
%
92.2
%
Average per produced barrel (5)
Refinery gross margin
$
26.59
$
31.47
$
24.25
$
27.97
Refinery operating expenses (6)
8.50
7.64
9.05
7.70
Net operating margin
$
18.09
$
23.83
$
15.20
$
20.27
Refinery operating expenses per throughput
barrel (7)
$
8.36
$
7.53
$
8.78
$
8.51
Feedstocks:
Sweet crude oil
40
%
39
%
43
%
42
%
Sour crude oil
35
%
39
%
33
%
36
%
Heavy sour crude oil
15
%
13
%
13
%
13
%
Black wax crude oil
3
%
3
%
3
%
3
%
Other feedstocks and blends
7
%
6
%
8
%
6
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022 (8)
Consolidated
Sales of produced refined products:
Gasolines
52
%
52
%
53
%
51
%
Diesel fuels
31
%
34
%
30
%
33
%
Jet fuels
7
%
6
%
6
%
6
%
Fuel oil
1
%
1
%
1
%
2
%
Asphalt
3
%
3
%
3
%
3
%
Base oils
1
%
1
%
2
%
2
%
LPG and other
5
%
3
%
5
%
3
%
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 average amount per produced
barrel sold, which is a non-GAAP measure. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
(6)
Represents total Refining segment
operating expenses, exclusive of depreciation and amortization,
divided by sales volumes of refined products produced at our
refineries.
(7)
Represents total Refining segment
operating expenses, exclusive of depreciation and amortization,
divided by refinery throughput.
(8)
We acquired the Parco and Casper
refineries on March 14, 2022. Refining operating data for the nine
months ended September 30, 2022 includes crude oil and feedstocks
processed and refined products sold at our Parco and Casper
refineries for the period March 14, 2022 through September 30, 2022
only, averaged over the 273 days in the nine months ended September
30, 2022.
Renewables Segment Operating Data
The following table sets forth information about our renewables
operations and includes our Sinclair RDU for the period March 14,
2022 (date of acquisition) through September 30, 2023. The
renewables gross and net operating margins do not include the
non-cash effects of lower of cost or market inventory valuation
adjustments and depreciation and amortization. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Renewables
Sales volumes (in thousand gallons)
54,909
51,840
152,896
82,471
Average per produced gallon (1)
Renewables gross margin
$
0.66
$
0.19
$
0.56
$
0.18
Renewables operating expense (2)
0.55
0.45
0.56
0.97
Net operating margin
$
0.11
$
(0.26
)
$
—
$
(0.79
)
(1)
Represents average amount per produced
gallons sold, which is a non-GAAP measure. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
(2)
Represents total Renewables segment
operating expenses, exclusive of depreciation and amortization,
divided by sales volumes of renewable diesel produced at our
renewable diesel units.
Marketing Segment Operating Data
The following table sets forth information about our marketing
operations and includes our Sinclair branded fuel business for the
period March 14, 2022 (date of acquisition) through September 30,
2023. The marketing gross margin does not include the non-cash
effects of depreciation and amortization. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
Three Months Ended September
30,
Nine Months Ended September
30,
2023 (1)
2022
2023 (1)
2022
Marketing
Number of branded sites at period end
1,535
1,358
1,535
1,358
Sales volumes (in thousand gallons)
398,399
362,499
1,091,216
782,518
Margin per gallon of sales (2)
$
0.07
$
0.03
$
0.07
$
0.05
(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.
Lubricants and Specialty Products Segment Operating
Data
The following table sets forth information about our lubricants
and specialty products operations.
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Lubricants and Specialty
Products
Sales of produced products (BPD)
30,400
32,610
30,440
33,870
Sales of produced products:
Finished products
49
%
49
%
51
%
51
%
Base oils
27
%
26
%
27
%
28
%
Other
24
%
25
%
22
%
21
%
Total
100
%
100
%
100
%
100
%
Effective the first quarter of 2023, management views the
Lubricants and Specialty Products segment as an integrated business
of processing feedstocks into base oils and processing base oils
into finished lubricant products along with the packaging,
distribution and sales to customers.
Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles
Reconciliations of earnings before interest, taxes,
depreciation and amortization (“EBITDA”) and EBITDA excluding
special items (“Adjusted EBITDA”) to amounts reported under
generally accepted accounting principles (“GAAP”) in financial
statements.
Earnings before interest, taxes, depreciation and amortization,
referred to as EBITDA, is calculated as net income attributable to
HF Sinclair stockholders plus (i) interest expense, net of interest
income, (ii) income tax provision and (iii) depreciation and
amortization. Adjusted EBITDA is calculated as EBITDA plus or minus
(i) lower of cost or market inventory valuation adjustments, (ii)
decommissioning costs, (iii) HF Sinclair's pro-rata share of HEP's
share of Osage environmental remediation costs and (iv) 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 or operating income 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,
2023
2022
2023
2022
(In thousands)
Net income attributable to HF Sinclair
stockholders
$
790,922
$
954,405
$
1,651,849
$
2,335,641
Add interest expense
48,686
44,830
141,490
118,650
Subtract interest income
(24,577
)
(9,821
)
(62,103
)
(12,662
)
Add income tax expense
235,015
301,853
480,640
706,675
Add depreciation and amortization
195,562
171,973
558,905
480,618
EBITDA
$
1,245,608
$
1,463,240
2,770,781
3,628,922
Add (subtract) lower of cost or market
inventory valuation adjustment
(43,848
)
16,847
(4,114
)
42,839
Add decommissioning costs
—
—
—
1,469
Add HF Sinclair's pro-rata share of HEP's
share of Osage environmental remediation costs
33
9,572
608
9,572
Add acquisition integration and regulatory
costs
4,698
10,662
12,132
47,234
Adjusted EBITDA
$
1,206,491
$
1,500,321
$
2,779,407
$
3,730,036
EBITDA attributable to our Refining segment is presented
below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
Refining Segment
2023
2022
2023
2022
(In thousands)
Income before interest and income taxes
(1)
$
915,927
$
1,344,103
$
1,946,700
$
3,015,274
Add depreciation and amortization
119,909
102,599
335,909
300,060
EBITDA
1,035,836
1,446,702
2,282,609
3,315,334
Add lower of cost or market inventory
valuation adjustment
(26,842
)
—
—
—
Adjusted EBITDA
$
1,008,994
$
1,446,702
$
2,282,609
$
3,315,334
(1)
Income before interest and income taxes of
our Refining segment represents income plus (i) interest expense,
net of interest income and (ii) income tax provision.
EBITDA and Adjusted EBITDA attributable to our Renewables
segment is set forth below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
Renewables Segment
2023
2022
2023
2022
(In thousands)
Income (loss) before interest and income
taxes (1)
$
3,087
$
(49,285
)
$
(57,040
)
$
(144,589
)
Add depreciation and amortization
18,904
18,228
57,846
34,399
EBITDA
21,991
(31,057
)
806
(110,190
)
Add (subtract) lower of cost or market
inventory valuation adjustment
(17,006
)
16,847
(4,114
)
42,839
Adjusted EBITDA
$
4,985
$
(14,210
)
$
(3,308
)
$
(67,351
)
(1)
Income (loss) before interest and income
taxes of our Renewables segment represents income (loss) plus (i)
interest expense, net of interest income and (ii) income tax
provision.
EBITDA attributable to our Marketing segment is set forth
below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
Marketing Segment
2023
2022
2023
2022
(In thousands)
Income before interest and income taxes
(1)
$
15,134
$
3,856
34,218
28,627
Add depreciation and amortization
6,002
6,355
17,889
11,274
EBITDA
$
21,136
$
10,211
$
52,107
$
39,901
(1)
Income before interest and income taxes of
our Marketing segment represents income plus (i) interest expense,
net of interest income and (ii) income tax provision.
EBITDA attributable to our Lubricants and Specialty Products
segment is set forth below.
Three Months Ended
September 30,
Nine Months Ended
September 30,
Lubricants and Specialty Products
Segment
2023
2022
2023
2022
(In thousands)
Income before interest and income taxes
(1)
$
95,685
$
(4,978
)
225,427
254,839
Add depreciation and amortization
22,719
20,227
63,173
61,426
EBITDA
$
118,404
$
15,249
$
288,600
$
316,265
(1)
Income before interest and income taxes of
our Lubricants and Specialty Products segment represents income
plus (i) interest expense, net of interest income and (ii) income
tax provision.
Reconciliations of refinery operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP
performance measures that are used by our management and others to
compare our refining performance to that of other companies in our
industry. We believe these margin measures are helpful to investors
in evaluating our refining performance on a relative and absolute
basis. Refinery gross margin per produced barrel sold is total
Refining segment revenues less total Refining segment cost of
products sold, exclusive of lower of cost or market inventory
valuation adjustments, divided by sales volumes of produced refined
products sold. Net operating margin per barrel sold is the
difference between refinery gross margin and refinery operating
expenses per produced barrel sold. These two margins do not include
the non-cash effects of lower of cost or market inventory valuation
adjustments or depreciation and amortization. Each of these
component performance measures can be reconciled directly to our
consolidated statements of income. Other companies in our industry
may not calculate these performance measures in the same
manner.
Reconciliation of average refining net
operating margin per produced barrel sold to refinery gross margin
to refining sales and other
revenues
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(Dollars in thousands, except per
barrel amounts)
Consolidated
Refining segment sales and other
revenues
$
8,050,934
$
9,635,786
$
21,808,931
$
26,430,534
Refining segment cost of products sold
(exclusive of lower of cost or market inventory adjustment)
6,499,721
7,680,153
17,947,530
21,709,048
Lower of cost or market inventory
adjustment
(26,842
)
—
—
—
1,578,055
1,955,633
3,861,401
4,721,486
Add lower of cost or market inventory
adjustment
(26,842
)
—
—
—
Refinery gross margin
$
1,551,213
$
1,955,633
$
3,861,401
$
4,721,486
Refining segment operating expenses
$
495,908
$
474,631
$
1,440,670
$
1,298,907
Produced barrels sold (BPD)
634,180
675,370
583,210
618,270
Refinery gross margin per produced barrel
sold
$
26.59
$
31.47
$
24.25
$
27.97
Less average refinery operating expenses
per produced barrel sold
8.50
7.64
9.05
7.70
Net operating margin per produced barrel
sold
$
18.09
$
23.83
$
15.20
$
20.27
Reconciliation of renewables operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Renewables gross margin and net operating margin are non-GAAP
performance measures that are used by our management and others to
compare our renewables performance to that of other companies in
our industry. We believe these margin measures are helpful to
investors in evaluating our renewables performance on a relative
and absolute basis. Renewables gross margin per produced gallon
sold is total Renewables segment revenues less total Renewables
segment cost of products sold, exclusive of lower of cost or market
inventory valuation adjustments, divided by sales volumes of
produced renewables products sold. Net operating margin per
produced gallon sold is the difference between renewables gross
margin and renewables operating expenses per produced gallon sold.
These two margins do not include the non-cash effects of lower of
cost or market inventory valuation adjustments and depreciation and
amortization. Each of these component performance measures can be
reconciled directly to our consolidated statements of income. Other
companies in our industry may not calculate these performance
measures in the same manner.
Reconciliation of renewables gross margin
and operating expenses to gross margin per produced gallon sold and
net operating margin per produced gallon sold
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(In thousands, except for per
gallon amounts)
Renewables segment sales and other
revenues
$
331,177
$
355,660
$
902,378
$
597,605
Renewables segment cost of products sold
(exclusive of lower of cost or market inventory adjustment)
294,682
345,588
816,226
582,521
Lower of cost or market inventory
adjustment
(17,006
)
16,847
(4,114
)
42,839
53,501
(6,775
)
90,266
(27,755
)
Add (subtract) lower of cost or market
inventory adjustment
(17,006
)
16,847
(4,114
)
42,839
Renewables gross margin
$
36,495
$
10,072
$
86,152
$
15,084
Renewables segment operating expense
$
30,198
$
23,427
$
85,942
$
79,796
Produced gallons sold (in thousand
gallons)
54,909
51,840
152,896
82,471
Renewables gross margin per produced
gallon sold
$
0.66
$
0.19
$
0.56
$
0.18
Less average renewables operating expense
per produced gallon sold
0.55
0.45
0.56
0.97
Net operating margin per produced gallon
sold
$
0.11
$
(0.26
)
$
—
$
(0.79
)
Reconciliation of marketing operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Marketing gross margin is a non-GAAP performance measure that is
used by our management and others to compare our marketing
performance to that of other companies in our industry. We believe
this margin measure is helpful to investors in evaluating our
marketing performance on a relative and absolute basis. Marketing
gross margin per gallon sold is total Marketing segment revenues
less total Marketing segment cost of products sold divided by sales
volumes of marketing products sold. This margin does not include
the non-cash effects of depreciation and amortization. This
component performance measure can be reconciled directly to our
consolidated statements of income. Other companies in our industry
may not calculate these performance measures in the same
manner.
Reconciliation of marketing gross margin
to gross margin per gallon sold
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(In thousands, except for per
gallon amounts)
Marketing segment sales and other
revenues
$
1,259,205
$
1,266,681
$
3,237,523
$
2,880,024
Marketing segment cost of products
sold
1,230,372
1,255,119
3,162,727
2,837,583
Marketing gross margin
$
28,833
$
11,562
$
74,796
$
42,441
Sales volumes (in thousand gallons)
398,399
362,499
1,091,216
782,518
Marketing segment gross margin per gallon
sold
$
0.07
$
0.03
$
0.07
$
0.05
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, decommissioning 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,
2023
2022
2023
2022
(In thousands, except per share
amounts)
Consolidated
GAAP:
Income before income taxes
$
1,060,076
$
1,279,992
$
2,225,191
$
3,123,023
Income tax expense
235,015
301,853
480,640
706,675
Net income
825,061
978,139
1,744,551
2,416,348
Less net income attributable to
noncontrolling interest
34,139
23,734
92,702
80,707
Net income attributable to HF Sinclair
stockholders
790,922
954,405
1,651,849
2,335,641
Non-GAAP adjustments to arrive at
adjusted results:
Lower of cost or market inventory
valuation adjustment
(43,848
)
16,847
(4,114
)
42,839
Decommissioning costs
—
—
—
1,469
HEP's share of Osage environmental
remediation costs
69
20,297
1,289
20,297
Acquisition integration and regulatory
costs
6,626
10,662
14,060
48,144
Total adjustments to income before income
taxes
(37,153
)
47,806
11,235
112,749
Adjustment to income tax expense (1)
(8,633
)
8,547
2,160
19,653
Adjustment to net income attributable to
noncontrolling interest
1,964
10,725
2,609
11,635
Total adjustments, net of tax
(30,484
)
28,534
6,466
81,461
Adjusted results - Non-GAAP:
Adjusted income before income taxes
1,022,923
1,327,798
2,236,426
3,235,772
Adjusted income tax expense (2)
226,382
310,400
482,800
726,328
Adjusted net income
796,541
1,017,398
1,753,626
2,509,444
Less net income attributable to
noncontrolling interest
36,103
34,459
95,311
92,342
Adjusted net income attributable to HF
Sinclair stockholders
$
760,438
$
982,939
$
1,658,315
$
2,417,102
Adjusted earnings per share - diluted
(3)
$
4.06
$
4.58
$
8.60
$
11.75
(1)
Represents adjustment to GAAP income tax
expense to arrive at adjusted income tax expense, which is computed
as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(In thousands)
Non-GAAP income tax expense (2)
$
226,382
$
310,400
$
482,800
$
726,328
Add GAAP income tax expense
235,015
301,853
480,640
706,675
Non-GAAP adjustment to income tax
expense
$
(8,633
)
$
8,547
$
2,160
$
19,653
(2)
Non-GAAP income tax expense is computed by
(a) adjusting HF Sinclair’s consolidated estimated Annual Effective
Tax Rate (“AETR”) for GAAP purposes for the effects of the above
Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP
AETR to Non-GAAP adjusted income before income taxes and (c)
adjusting for discrete tax items applicable to the period.
(3)
Adjusted earnings per share - diluted is
calculated as adjusted net income attributable to HF Sinclair
stockholders divided by the average number of shares of common
stock outstanding assuming dilution, which is based on
weighted-average diluted shares outstanding as that used in the
GAAP diluted earnings per share calculation. Income allocated to
participating securities, if applicable, in the adjusted earnings
per share calculation is calculated the same way as that used in
GAAP diluted earnings per share calculation.
Reconciliation of effective tax rate to
adjusted effective tax rate
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(Dollars in thousands)
GAAP:
Income before income taxes
$
1,060,076
$
1,279,992
$
2,225,191
$
3,123,023
Income tax expense
$
235,015
$
301,853
$
480,640
$
706,675
Effective tax rate for GAAP financial
statements
22.2
%
23.6
%
21.6
%
22.6
%
Adjusted - Non-GAAP:
Effect of Non-GAAP adjustments
(0.1
)%
(0.2
)%
—
%
(0.2
)%
Effective tax rate for adjusted
results
22.1
%
23.4
%
21.6
%
22.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102043117/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)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
HF Sinclair (NYSE:DINO)
Historical Stock Chart
Von Mai 2023 bis Mai 2024