0001915657false00019156572024-08-012024-08-01

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2024
___________________

HF SINCLAIR CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware001-4132587-2092143
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer
Identification Number)
2828 N. Harwood, Suite 1300
Dallas, TX
75201
(Address of principal executive offices)(Zip code)
Registrant’s telephone number, including area code: (214) 871-3555
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock $0.01 par valueDINONew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company        ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐  


Item 2.02. Results of Operations and Financial Condition.

On August 1, 2024, HF Sinclair Corporation (the “Company”) issued a press release announcing the Company’s second quarter 2024 results. The press release also announced a regular quarterly dividend of $0.50 per share. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and incorporated herein in its entirety.

    The information contained in, or incorporated into, this Item 2.02 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits

Exhibit NumberDescription
99.1
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).

* Furnished herewith pursuant to Item 2.02.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
                        HF SINCLAIR CORPORATION

By:    /s/ Atanas H. Atanasov        
Atanas H. Atanasov
Executive Vice President and Chief Financial Officer

Date: August 1, 2024



Press Release
August 1, 2024
hf_sinclairxlogoxcmyk1a.jpg

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

•Reported net income attributable to HF Sinclair stockholders of $151.8 million, or $0.79 per diluted share, and adjusted net income of $149.3 million, or $0.78 per diluted share, for the second quarter

•Reported EBITDA of $408.0 million and Adjusted EBITDA of $405.8 million for the second quarter

•Returned $467.1 million to stockholders through dividends and share repurchases in the second quarter

•Announced a regular quarterly dividend of $0.50 per share

Dallas, Texas, August 1, 2024 ‑ HF Sinclair Corporation (NYSE: DINO) (“HF Sinclair” or the “Company”) today reported second quarter net income attributable to HF Sinclair stockholders of $151.8 million, or $0.79 per diluted share, for the quarter ended June 30, 2024, compared to $507.7 million, or $2.62 per diluted share, for the quarter ended June 30, 2023. Excluding the adjustments shown in the accompanying earnings release table, adjusted net income attributable to HF Sinclair stockholders for the second quarter of 2024 was $149.3 million, or $0.78 per diluted share, compared to $503.8 million, or $2.60 per diluted share, for the second quarter of 2023.

HF Sinclair’s Chief Executive Officer, Tim Go, commented, “Our second quarter, 2024 performance reflects continued progress on our commitment to deliver safe and reliable operations, resulting in higher utilization and lower operating costs per barrel in our refining business. We are seeing the benefits of our strategic initiatives across all of our businesses, including strong contributions from our Lubricants & Specialties and Midstream business segments again this quarter. We returned $467 million in cash to shareholders in the second quarter and today announced a $0.50 quarterly dividend. Looking forward, we remain focused on executing our strategy as we continue to improve reliability, optimize and integrate across our portfolio, all while generating strong cash flows to deliver returns to our shareholders.”

Refining segment income before interest and income taxes was $64.7 million for the second quarter of 2024 compared to $593.0 million for the second quarter of 2023. The segment reported EBITDA of $186.9 million for the second quarter of 2024 compared to $705.6 million for the second quarter of 2023. Excluding the lower of cost or market inventory valuation benefit of $26.8 million, the segment reported Adjusted EBITDA in the second quarter of 2023 of $732.4 million. This decrease was principally driven by lower adjusted refinery gross margins in both the West and Mid-Continent regions as a result of high refining utilization rates across the industry, which were partially offset by higher refined product sales volumes. Adjusted refinery gross margin was $11.33 per produced barrel sold, a 48% decrease compared to $21.99 for the second quarter of 2023. Crude oil charge averaged 634,730 barrels per day (“BPD”) for the second quarter of 2024 compared to 553,940 BPD for the second quarter of 2023. This increase was primarily a result of decreased turnaround activities and improved reliability at our refineries compared to the second quarter of 2023.

1

Renewables segment loss before interest and income taxes was $(14.5) million for the second quarter of 2024, compared to income of $4.4 million for the second quarter of 2023. The segment reported EBITDA of $5.3 million for the second quarter of 2024 compared to $23.4 million for the second quarter of 2023. Excluding the lower of cost or market inventory valuation adjustment, the segment reported Adjusted EBITDA of $2.2 million for the second quarter of 2024 compared to $(11.3) million for the second quarter of 2023. This increase was primarily due to increased sales volumes and feedstock optimization, despite lower indicator margins in the second quarter of 2024. Total sales volumes were 64 million gallons for the second quarter of 2024 as compared to 50 million gallons for the second quarter of 2023.

Marketing segment income before interest and income taxes was $9.1 million for the second quarter of 2024 compared to $18.6 million for the second quarter of 2023. The segment reported EBITDA of $15.5 million for the second quarter of 2024 compared to $24.6 million for the second quarter of 2023. This decrease was primarily driven by lower margins in the second quarter of 2024. Total branded fuel sales volumes were 357 million gallons for the second quarter of 2024 as compared to 364 million gallons for the second quarter of 2023.

Lubricants & Specialties segment income before interest and income taxes was $74.3 million for the second quarter of 2024, compared to $50.5 million for the second quarter of 2023. The segment reported EBITDA of $97.1 million for the second quarter of 2024 compared to $70.9 million in the second quarter of 2023. This increase was largely driven by increased sales volumes, sales mix optimization and base oil integration in the second quarter of 2024, partially offset by a $14.4 million FIFO charge from consumption of higher priced feedstock inventory in the second quarter of 2024 compared to a $0.5 million FIFO benefit in the second quarter of 2023.

Midstream segment income before interest and income taxes was $96.5 million for the second quarter of 2024 compared to $66.8 million for the second quarter of 2023. The segment reported Adjusted EBITDA of $109.8 million for the second quarter of 2024 compared to $88.4 million for the second quarter of 2023. This increase was primarily driven by higher revenues from increased sales volumes and higher tariffs in the second quarter of 2024.

For the second quarter of 2024, net cash provided by operations totaled $225.9 million. At June 30, 2024, the Company’s cash and cash equivalents totaled $866.3 million, a $487.5 million decrease over cash and cash equivalents of $1,353.7 million at December 31, 2023. During the second quarter of 2024, the Company announced and paid a regular dividend of $0.50 per share to stockholders totaling $95.9 million and spent $371.2 million on share repurchases. Additionally, at June 30, 2024, the Company’s consolidated debt was $2,635.7 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 September 5, 2024 to holders of record of common stock on August 21, 2024.

The Company has scheduled a webcast conference call for today, August 1, 2024, at 9:30 AM Eastern Time to discuss second quarter financial results. This webcast may be accessed at https://events.q4inc.com/attendee/224769575. An audio archive of this webcast will be available using the above noted link through August 15, 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 other 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 its 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.

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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 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.

3

RESULTS OF OPERATIONS

Financial Data (all information in this release is unaudited)
Three Months Ended June 30,Change from 2023
20242023ChangePercent
(In thousands, except per share data)
Sales and other revenues$7,845,831 $7,833,646 $12,185 — %
Operating costs and expenses:
Cost of sales (exclusive of depreciation and amortization):
Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)6,750,525 6,273,605 476,920 8 %
Lower of cost or market inventory valuation adjustment(3,123)(7,863)4,740 (60)%
Operating expenses (exclusive of depreciation and amortization)591,317 546,800 44,517 8 %
7,338,719 6,812,542 526,177 8 %
Selling, general and administrative expenses (exclusive of depreciation and amortization)104,858 127,388 (22,530)(18)%
Depreciation and amortization205,320 189,360 15,960 8 %
Total operating costs and expenses7,648,897 7,129,290 519,607 7 %
Income from operations196,934 704,356 (507,422)(72)%
Other income (expense):
Earnings of equity method investments8,115 3,545 4,570 129 %
Interest income18,495 17,591 904 5 %
Interest expense(45,449)(46,982)1,533 (3)%
Gain (loss) on foreign currency transactions(369)748 (1,117)(149)%
Gain (loss) on sale of assets and other(264)1,152 (1,416)(123)%
(19,472)(23,946)4,474 (19)%
Income before income taxes177,462 680,410 (502,948)(74)%
Income tax expense23,982 145,925 (121,943)(84)%
Net income153,480 534,485 (381,005)(71)%
Less net income attributable to noncontrolling interest1,692 26,824 (25,132)(94)%
Net income attributable to HF Sinclair stockholders$151,788 $507,661 $(355,873)(70)%
Earnings per share attributable to HF Sinclair stockholders:
Basic$0.79 $2.62 $(1.83)(70)%
Diluted$0.79 $2.62 $(1.83)(70)%
Cash dividends declared per common share$0.50 $0.45 $0.05 11 %
Average number of common shares outstanding:
Basic191,510 192,348 (838)— %
Diluted191,510 192,348 (838)— %
EBITDA$408,044 $872,337 $(464,293)(53)%
Adjusted EBITDA$405,776 $868,163 $(462,387)(53)%






4


Six Months Ended June 30, 2024Change from 2023
20242023ChangePercent
(In thousands, except per share data)
Sales and other revenues$14,872,976 $15,398,788 $(525,812)(3)%
Operating costs and expenses:
Cost of sales (exclusive of depreciation and amortization):
Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)12,677,025 12,377,662 299,363 2 %
Lower of cost or market inventory valuation adjustment(222,493)39,734 (262,227)(660)%
Operating expenses (exclusive of depreciation and amortization)1,198,429 1,186,183 12,246 1 %
13,652,961 13,603,579 49,382 — %
Selling, general and administrative expenses (exclusive of depreciation and amortization)208,232 223,301 (15,069)(7)%
Depreciation and amortization404,049 363,343 40,706 11 %
Total operating costs and expenses14,265,242 14,190,223 75,019 1 %
Income from operations607,734 1,208,565 (600,831)(50)%
Other income (expense):
Earnings of equity method investments15,461 7,427 8,034 108 %
Interest income40,674 37,526 3,148 8 %
Interest expense(86,140)(92,804)6,664 (7)%
Gain on foreign currency transactions74 1,618 (1,544)(95)%
Gain on sale of assets and other1,755 2,783 (1,028)(37)%
(28,176)(43,450)15,274 (35)%
Income before income taxes579,558 1,165,115 (585,557)(50)%
Income tax expense109,456 245,625 (136,169)(55)%
Net income470,102 919,490 (449,388)(49)%
Less net income attributable to noncontrolling interest3,650 58,563 (54,913)(94)%
Net income attributable to HF Sinclair stockholders$466,452 $860,927 $(394,475)(46)%
Earnings per share attributable to HF Sinclair stockholders:
Basic$2.38 $4.40 $(2.02)(46)%
Diluted$2.38 $4.40 $(2.02)(46)%
Cash dividends declared per common share$1.00 $0.90 $0.10 11 %
Average number of common shares outstanding:
Basic195,110 193,888 1,222 1 %
Diluted195,110 193,888 1,222 1 %
EBITDA$1,025,423 $1,525,173 $(499,750)(33)%
Adjusted EBITDA$804,833 $1,572,916 $(768,083)(49)%



Balance Sheet Data
June 30, 2024December 31, 2023
(In thousands)
Cash and cash equivalents$866,274 $1,353,747 
Working capital$3,083,583 $3,371,905 
Total assets$17,381,762 $17,716,265 
Total debt$2,635,719 $2,739,083 
Total equity$9,957,114 $10,237,298 


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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, the 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 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 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 services 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.

6

Refining RenewablesMarketingLubricants & SpecialtiesMidstreamCorporate, Other and EliminationsConsolidated
Total
(In thousands)
Three Months Ended June 30, 2024
Sales and other revenues:
Revenues from external customers$5,970,098 $180,228 $942,362 $726,049 $27,094 $— $7,845,831 
Intersegment revenues and other (1)
1,007,711 68,050 — 5,350 131,087 (1,212,198)— 
$6,977,809 $248,278 $942,362 $731,399 $158,181 $(1,212,198)$7,845,831 
Cost of sales (exclusive of depreciation and amortization):
Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)6,291,029 220,056 919,611 531,390 — (1,211,561)6,750,525 
Lower of cost or market inventory valuation adjustment— (3,123)— — — — (3,123)
Operating expenses449,097 24,705 — 64,445 51,089 1,981 591,317 
6,740,126 241,638 919,611 595,835 51,089 (1,209,580)7,338,719 
Selling, general and administrative expenses50,740 1,384 7,345 38,209 2,925 4,255 104,858 
Depreciation and amortization122,215 19,786 6,374 22,716 14,943 19,286 205,320 
Income (loss) from operations$64,728 $(14,530)$9,032 $74,639 $89,224 $(26,159)$196,934 
Income (loss) before interest and income taxes$64,673 $(14,512)$9,090 $74,339 $96,505 $(25,679)$204,416 
Net income attributable to noncontrolling interest$— $— $— $— $1,692 $— $1,692 
Earnings of equity method investments$— $— $— $— $7,158 $957 $8,115 
Capital expenditures$35,694 $3,271 $12,960 $7,173 $11,144 $13,967 $84,209 
Three Months Ended June 30, 2023
Sales and other revenues:
Revenues from external customers$5,901,713 $175,063 $1,040,933 $686,104 $29,833 $— $7,833,646 
Intersegment revenues and other (1)
1,137,669 98,122 — 4,529 106,540 (1,346,860)— 
$7,039,382 $273,185 $1,040,933 $690,633 $136,373 $(1,346,860)$7,833,646 
Cost of sales (exclusive of depreciation and amortization):
Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)5,842,573 258,806 1,008,306 510,581 — (1,346,661)6,273,605 
Lower of cost or market inventory valuation adjustment26,842 (34,705)— — — — (7,863)
Operating expenses411,324 24,373 — 64,034 45,853 1,216 546,800 
6,280,739 248,474 1,008,306 574,615 45,853 (1,345,445)6,812,542 
Selling, general and administrative expenses53,038 1,336 8,127 44,914 5,512 14,461 127,388 
Depreciation and amortization112,542 18,968 6,016 20,379 21,819 9,636 189,360 
Income (loss) from operations$593,063 $4,407 $18,484 $50,725 $63,189 $(25,512)$704,356 
Income (loss) before interest and income taxes$593,047 $4,429 $18,582 $50,510 $66,834 $(23,601)$709,801 
Net income attributable to noncontrolling interest$— $— $— $— $1,539 $25,285 $26,824 
Earnings of equity method investments$— $— $— $— $3,545 $— $3,545 
Capital expenditures$45,187 $3,537 $6,200 $5,734 $8,650 $10,873 $80,181 

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RefiningRenewablesMarketingLubricants & SpecialtiesMidstreamCorporate, Other and EliminationsConsolidated
Total
(In thousands)
Six Months Ended June 30, 2024
Sales and other revenues:
Revenues from external customers$11,343,123 $359,897 $1,718,169 $1,401,594 $50,193 $— $14,872,976 
Intersegment revenues and other (1)
1,838,931 127,940 — 7,792 263,003 (2,237,666)— 
$13,182,054 $487,837 $1,718,169 $1,409,386 $313,196 $(2,237,666)$14,872,976 
Cost of sales (exclusive of depreciation and amortization):
Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)11,765,551 450,329 1,672,141 1,024,236 — (2,235,232)12,677,025 
Lower of cost or market inventory valuation adjustment(220,558)(1,935)— — — — (222,493)
Operating expenses921,183 51,166 — 128,445 96,607 1,028 1,198,429 
12,466,176 499,560 1,672,141 1,152,681 96,607 (2,234,204)13,652,961 
Selling, general and administrative expenses99,457 2,786 15,101 72,777 6,854 11,257 208,232 
Depreciation and amortization239,585 40,058 12,677 45,227 35,063 31,439 404,049 
Income (loss) from operations$376,836 $(54,567)$18,250 $138,701 $174,672 $(46,158)$607,734 
Income (loss) before interest and income taxes$376,687 $(54,524)$18,518 $138,826 $189,555 $(44,038)$625,024 
Net income attributable to noncontrolling interest$— $— $— $— $3,650 $— $3,650 
Earnings of equity method investments$— $— $— $— $14,546 $915 $15,461 
Capital expenditures$90,718 $5,921 $20,491 $12,484 $19,249 $24,454 $173,317 
Six Months Ended June 30, 2023
Sales and other revenues:
Revenues from external customers$11,566,927 $377,476 $1,978,318 $1,419,818 $56,249 $— $15,398,788 
Intersegment revenues and other (1)
2,191,070 193,725 — 10,325 216,056 (2,611,176)— 
$13,757,997 $571,201 $1,978,318 $1,430,143 $272,305 $(2,611,176)$15,398,788 
Cost of sales (exclusive of depreciation and amortization):
Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)11,483,704 521,544 1,932,355 1,049,441 — (2,609,382)12,377,662 
Lower of cost or market inventory valuation adjustment26,842 12,892 — — — — 39,734 
Operating expenses913,083 55,744 — 127,627 87,532 2,197 1,186,183 
12,423,629 590,180 1,932,355 1,177,068 87,532 (2,607,185)13,603,579 
Selling, general and administrative expenses92,116 2,251 15,090 84,178 10,147 19,519 223,301 
Depreciation and amortization212,625 38,942 11,887 39,747 41,581 18,561 363,343 
Income (loss) from operations$1,029,627 $(60,172)$18,986 $129,150 $133,045 $(42,071)$1,208,565 
Income (loss) before interest and income taxes$1,029,932 $(60,127)$19,084 $128,735 $140,746 $(37,977)$1,220,393 
Net income attributable to noncontrolling interest$— $— $— $— $3,291 $55,272 $58,563 
Earnings of equity method investments$— $— $— $— $7,427 $— $7,427 
Capital expenditures$112,961 $8,381 $11,455 $14,383 $16,264 $16,806 $180,250 
(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.
8


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 June 30,Six Months Ended June 30,
2024202320242023
Mid-Continent Region
Crude charge (BPD) (1)
265,810 228,300 262,420 219,890 
Refinery throughput (BPD) (2)
281,540 246,570 277,710 238,960 
Sales of produced refined products (BPD) (3)
283,190 240,550 277,830 222,880 
Refinery utilization (4)
102.2 %87.8 %100.9 %84.6 %
Average per produced barrel sold: (5)
Gross margin (6)
$0.66 $9.68 $3.98 $9.05 
Adjusted refinery gross margin (7)
$8.39 $19.42 $9.41 $19.71 
Operating expenses (8)
5.90 6.40 6.15 7.72 
Adjusted refinery gross margin, less operating expenses$2.49 $13.02 $3.26 $11.99 
Operating expenses per throughput barrel (9)
$5.93 $6.24 $6.15 $7.20 
Feedstocks:
Sweet crude oil56 %59 %53 %62 %
Sour crude oil20 %17 %23 %16 %
Heavy sour crude oil19 %16 %19 %14 %
Other feedstocks and blends5 %8 %5 %8 %
Total100 %100 %100 %100 %
Sales of produced refined products:
Gasolines54 %49 %53 %49 %
Diesel fuels30 %31 %31 %30 %
Jet fuels5 %6 %5 %7 %
Fuel oil1 %1 %1 %1 %
Asphalt4 %5 %4 %4 %
Base oils4 %4 %4 %5 %
LPG and other2 %4 %2 %4 %
Total100 %100 %100 %100 %

9

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
West Region
Crude charge (BPD) (1)
368,920 325,640 357,410 306,480 
Refinery throughput (BPD) (2)
395,070 352,400 382,240 339,710 
Sales of produced refined products (BPD) (3)
383,060 357,630 371,030 334,420 
Refinery utilization (4)
88.3 %77.9 %85.5 %73.3 %
Average per produced barrel sold: (5)
Gross margin (6)
$2.83 $13.34 $4.07 $12.50 
Adjusted refinery gross margin (7)
$13.50 $23.71 $13.93 $24.44 
Operating expenses (8)
8.52 8.33 9.04 9.94 
Adjusted refinery gross margin, less operating expenses$4.98 $15.38 $4.89 $14.50 
Operating expenses per throughput barrel (9)
$8.26 $8.46 $8.77 $9.79 
Feedstocks:
Sweet crude oil37 %30 %35 %31 %
Sour crude oil41 %44 %42 %42 %
Heavy sour crude oil10 %13 %11 %11 %
Black wax crude oil6 %6 %6 %6 %
Other feedstocks and blends6 %7 %6 %10 %
Total100 %100 %100 %100 %
Sales of produced refined products:
Gasolines51 %54 %52 %55 %
Diesel fuels32 %28 %32 %30 %
Jet fuels6 %6 %6 %5 %
Fuel oil2 %1 %2 %2 %
Asphalt3 %3 %2 %2 %
LPG and other6 %8 %6 %6 %
Total100 %100 %100 %100 %

Consolidated
Crude charge (BPD) (1)
634,730 553,940 619,830 526,370 
Refinery throughput (BPD) (2)
676,610 598,970 659,950 578,670 
Sales of produced refined products (BPD) (3)
666,250 598,180 648,860 557,300 
Refinery utilization (4)
93.6 %81.7 %91.4 %77.6 %
Average per produced barrel sold: (5)
Gross margin (6)
$1.90 $11.87 $4.03 $11.12 
Adjusted refinery gross margin (7)
$11.33 $21.99 $11.99 $22.55 
Operating expenses (8)
7.41 7.56 7.80 9.05 
Adjusted refinery gross margin, less operating expenses$3.92 $14.43 $4.19 $13.50 
Operating expenses per throughput barrel (9)
$7.29 $7.55 $7.67 $8.72 
Feedstocks:
Sweet crude oil46 %42 %42 %44 %
Sour crude oil32 %33 %34 %32 %
Heavy sour crude oil13 %14 %14 %12 %
Black wax crude oil3 %3 %4 %3 %
Other feedstocks and blends6 %8 %6 %9 %
Total100 %100 %100 %100 %
10

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Consolidated
Sales of produced refined products:
Gasolines52 %52 %52 %53 %
Diesel fuels32 %29 %32 %30 %
Jet fuels6 %6 %6 %6 %
Fuel oil1 %1 %1 %1 %
Asphalt3 %4 %3 %3 %
Base oils2 %2 %2 %2 %
LPG and other4 %6 %4 %5 %
Total100 %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 and includes our Sinclair RDU. 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 June 30,Six Months Ended June 30,
2024202320242023
Renewables
Sales volumes (in thousand gallons)63,557 50,159 124,729 97,987 
Average per produced gallon sold: (1)
Gross margin (2)
$(0.21)$0.11 $(0.42)$(0.59)
Adjusted renewables gross margin (3)
$0.44 $0.29 $0.30 $0.51 
Operating expenses (4)
0.39 0.49 0.41 0.57 
Adjusted renewables gross margin, less operating expenses$0.05 $(0.20)$(0.11)$(0.06)
(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.
11

(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 June 30,Six Months Ended June 30,
2024202320242023
Marketing
Number of branded sites at period end (1)
1,564 1,520 1,564 1,520 
Sales volumes (in thousand gallons)
357,137 364,409678,147 692,816
Average per gallon sold: (2)
Gross margin (3)
$0.05 $0.07 $0.05 $0.05 
Adjusted marketing gross margin (4)
$0.06 $0.09 $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 June 30,Six Months Ended June 30,
2024202320242023
Lubricants & Specialties
Sales of produced refined products (BPD)34,915 29,14033,00930,460
Sales of produced refined products:
Finished products48 %53 %48 %52 %
Base oils26 %26 %26 %27 %
Other26 %21 %26 %21 %
Total100 %100 %100 %100 %


12

Midstream Segment Operating Data

The following table sets forth information about our midstream operations:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Midstream
Volumes (BPD)
Pipelines:
Affiliates—refined product pipelines175,824 136,598 170,226 139,782 
Affiliates—intermediate pipelines151,894 104,472 144,982 109,372 
Affiliates—crude pipelines426,036 390,285 433,745 431,768 
753,754 631,355 748,953 680,922 
Third parties—refined product pipelines41,596 42,202 39,159 41,321 
Third parties—crude pipelines200,348 208,384 181,420 192,273 
995,698 881,941 969,532 914,516 
Terminals and loading racks:
Affiliates862,459 683,089 825,689 684,956 
Third parties39,602 49,909 36,356 46,206 
902,061 732,998 862,045 731,162 
Total for pipelines and terminals assets (BPD)1,897,759 1,614,939 1,831,577 1,645,678 

13

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 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 June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Net income attributable to HF Sinclair stockholders$151,788 $507,661 $466,452 $860,927 
Add interest expense45,449 46,982 86,140 92,804 
Subtract interest income(18,495)(17,591)(40,674)(37,526)
Add income tax expense23,982 145,925 109,456 245,625 
Add depreciation and amortization205,320 189,360 404,049 363,343 
EBITDA$408,044 $872,337 1,025,423 1,525,173 
Add (subtract) lower of cost or market inventory valuation adjustment(3,123)(7,863)(222,493)39,734 
Add HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs— 165 — 575 
Add acquisition integration and regulatory costs855 3,524 1,903 7,434 
Adjusted EBITDA$405,776 $868,163 $804,833 $1,572,916 


EBITDA and Adjusted EBITDA attributable to our Refining segment is presented below:

Three Months Ended June 30,Six Months Ended June 30,
Refining Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$64,673 $593,047 $376,687 $1,029,932 
Add depreciation and amortization122,215 112,542 239,585 212,625 
EBITDA186,888 705,589 616,272 1,242,557 
Add (subtract) lower of cost or market inventory valuation adjustment— 26,842 (220,558)26,842 
Adjusted EBITDA$186,888 $732,431 $395,714 $1,269,399 
(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.


14

EBITDA and Adjusted EBITDA attributable to our Renewables segment is set forth below:

Three Months Ended June 30,Six Months Ended June 30,
Renewables Segment2024202320242023
(In thousands)
Income (loss) before interest and income taxes (1)
$(14,512)$4,429 $(54,524)$(60,127)
Add depreciation and amortization19,786 18,968 40,058 38,942 
EBITDA5,274 23,397 (14,466)(21,185)
Add (subtract) lower of cost or market inventory valuation adjustment(3,123)(34,705)(1,935)12,892 
Adjusted EBITDA$2,151 $(11,308)$(16,401)$(8,293)
(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 June 30,Six Months Ended June 30,
Marketing Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$9,090 $18,582 18,518 19,084 
Add depreciation and amortization6,374 6,016 12,677 11,887 
EBITDA$15,464 $24,598 $31,195 $30,971 
(1)Income before interest and income taxes of our Marketing segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

EBITDA attributable to our Lubricants & Specialties segment is set forth below:

Three Months Ended June 30,Six Months Ended June 30,
Lubricants & Specialties Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$74,339 $50,510 138,826 128,735 
Add depreciation and amortization22,716 20,379 45,227 39,747 
EBITDA$97,055 $70,889 $184,053 $168,482 
(1)Income before interest and income taxes of our Lubricants & Specialties segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

EBITDA and Adjusted EBITDA attributable to our Midstream segment is presented below:

Three Months Ended June 30,Six Months Ended June 30,
Midstream Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$96,505 $66,834 $189,555 $140,746 
   Add depreciation and amortization14,943 21,819 35,063 41,581 
Subtract net income attributable to noncontrolling interest(1,692)(1,539)(3,650)(3,291)
EBITDA$109,756 $87,114 $220,968 $179,036 
Add (subtract) share of Osage environmental remediation costs, net of insurance recoveries— 350 — 1,220 
Add acquisition integration and regulatory costs52 954 105 1,472 
Adjusted EBITDA$109,808 $88,418 $221,073 $181,728 
(1)Income before interest and income taxes of our Midstream segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

15

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 June 30,Six Months Ended June 30,
 2024202320242023
 (In thousands, except per barrel amounts)
Refining segment
Sales and other revenues$6,977,809 $7,039,382 $13,182,054 $13,757,997 
Cost of sales (exclusive of depreciation and amortization)6,740,126 6,280,739 12,466,176 12,423,629 
Depreciation and amortization122,215 112,542 239,585 212,625 
Gross margin115,468 646,101 476,293 1,121,743 
Add (subtract) lower of cost or market inventory adjustment— 26,842 (220,558)26,842 
Add operating expenses449,097 411,324 921,183 913,083 
Add depreciation and amortization122,215 112,542 239,585 212,625 
Adjusted refinery gross margin$686,780 $1,196,809 $1,416,503 $2,274,293 
Produced barrels sold (BPD) (1)
666,250598,180648,860557,300
Average per produced barrel sold:
Gross margin$1.90 $11.87 $4.03 $11.12 
Add (subtract) lower of cost or market inventory adjustment— 0.49 (1.87)0.27 
Add operating expenses7.41 7.56 7.80 9.05 
Add depreciation and amortization2.02 2.07 2.03 2.11 
Adjusted refinery gross margin$11.33 $21.99 $11.99 $22.55 
Less operating expenses7.41 7.56 7.80 9.05 
Adjusted refinery gross margin, less operating expenses$3.92 $14.43 $4.19 $13.50 
(1)Represents the number of produced barrels sold per calendar day in the period.

16

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 June 30,Six Months Ended June 30,
2024202320242023
(In thousands, except per gallon amounts)
Renewables segment
Sales and other revenues$248,278 $273,185 $487,837 $571,201 
Cost of sales (exclusive of depreciation and amortization)241,638 248,474 499,560 590,180 
Depreciation and amortization19,786 18,968 40,058 38,942 
Gross margin(13,146)5,743 (51,781)(57,921)
Add (subtract) lower of cost or market inventory adjustment(3,123)(34,705)(1,935)12,892 
Add operating expenses24,705 24,373 51,166 55,744 
Add depreciation and amortization19,786 18,968 40,058 38,942 
Adjusted renewables gross margin$28,222 $14,379 $37,508 $49,657 
Produced gallons sold (in thousand gallons)63,557 50,159 124,729 97,987 
Average per produced gallon sold:
Gross margin$(0.21)$0.11 $(0.42)$(0.59)
Add (subtract) lower of cost or market inventory adjustment(0.05)(0.69)(0.02)0.13 
Add operating expenses0.39 0.49 0.41 0.57 
Add depreciation and amortization0.31 0.38 0.33 0.40 
Adjusted renewables gross margin$0.44 $0.29 $0.30 $0.51 
Less operating expenses0.39 0.49 0.41 0.57 
Adjusted renewables gross margin, less operating expenses$0.05 $(0.20)$(0.11)$(0.06)

17

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 June 30,Six Months Ended June 30,
2024202320242023
(In thousands, except per gallon amounts)
Marketing segment
Sales and other revenues$942,362 $1,040,933 $1,718,169 $1,978,318 
Cost of sales (exclusive of depreciation and amortization)919,611 1,008,306 1,672,141 1,932,355 
Depreciation and amortization6,374 6,016 12,677 11,887 
Gross margin16,377 26,611 33,351 34,076 
Add depreciation and amortization6,374 6,016 12,677 11,887 
Adjusted marketing gross margin$22,751 $32,627 $46,028 $45,963 
Sales volumes (in thousand gallons)357,137 364,409 678,147 692,816 
Average per gallon sold:
Gross margin$0.05 $0.07 $0.05 $0.05 
Add depreciation and amortization0.01 0.02 0.02 0.02 
Adjusted marketing gross margin$0.06 $0.09 $0.07 $0.07 
18

Reconciliation of net income attributable to HF Sinclair stockholders to adjusted net income attributable to HF Sinclair stockholders

Adjusted net income attributable to HF Sinclair stockholders is a non-GAAP financial measure that excludes non-cash lower of cost or market inventory valuation adjustments, HEP's share of 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 June 30,Six Months Ended June 30,
2024202320242023
(In thousands, except per share amounts)
Consolidated
GAAP:
Income before income taxes$177,462 $680,410 $579,558 $1,165,115 
Income tax expense23,982 145,925 109,456 245,625 
Net income 153,480 534,485 470,102 919,490 
Less net income attributable to noncontrolling interest1,692 26,824 3,650 58,563 
Net income attributable to HF Sinclair stockholders151,788 507,661 466,452 860,927 
Non-GAAP adjustments to arrive at adjusted results:
Lower of cost or market inventory valuation adjustment(3,123)(7,863)(222,493)39,734 
HEP's share of Osage environmental remediation costs— 350 — 1,220 
Acquisition integration and regulatory costs855 3,524 1,903 7,434 
Total adjustments to income before income taxes(2,268)(3,989)(220,590)48,388 
Adjustment to income tax expense (1)
206 (302)(45,715)10,794 
Adjustment to net income attributable to noncontrolling interest— 185 — 645 
Total adjustments, net of tax(2,474)(3,872)(174,875)36,949 
Adjusted results - Non-GAAP:
Adjusted income before income taxes175,194 676,421 358,968 1,213,503 
Adjusted income tax expense (2)
24,188 145,623 63,741 256,419 
Adjusted net income151,006 530,798 295,227 957,084 
Less net income attributable to noncontrolling interest1,692 27,009 3,650 59,208 
Adjusted net income attributable to HF Sinclair stockholders$149,314 $503,789 $291,577 $897,876 
Adjusted earnings per share - diluted (3)
$0.78 $2.60 $1.49 $4.59 
(1)    Represents adjustment to GAAP income tax expense to arrive at adjusted income tax expense, which is computed as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Non-GAAP income tax expense (2)
$24,188 $145,623 $63,741 $256,419 
Add GAAP income tax expense23,982 145,925 109,456 245,625 
Non-GAAP adjustment to income tax expense$206 $(302)$(45,715)$10,794 
(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.
19

Reconciliation of effective tax rate to adjusted effective tax rate
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
GAAP:
Income before income taxes$177,462 $680,410 $579,558 $1,165,115 
Income tax expense$23,982 $145,925 $109,456 $245,625 
Effective tax rate for GAAP financial statements13.5 %21.4 %18.9 %21.1 %
Adjusted - Non-GAAP:
Effect of Non-GAAP adjustments0.3 %0.1 %(1.1)%— %
Effective tax rate for adjusted results13.8 %21.5 %17.8 %21.1 %



FOR FURTHER INFORMATION, Contact:

Atanas H. Atanasov, Executive Vice President and Chief Financial Officer
Craig Biery, Vice President, Investor Relations
HF Sinclair Corporation
214-954-6510




















20
v3.24.2.u1
Document and Entity Information Document
Aug. 01, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity Registrant Name HF SINCLAIR CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-41325
Entity Tax Identification Number 87-2092143
Entity Address, Address Line One 2828 N. Harwood
Entity Address, Address Line Two Suite 1300
Entity Address, City or Town Dallas
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75201
City Area Code 214
Local Phone Number 871-3555
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock $0.01 par value
Trading Symbol DINO
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001915657
Amendment Flag false
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