Fourth Quarter
- Reported Net loss attributable to HF Sinclair stockholders of
$214 million, or $(1.14) per diluted share, and adjusted net loss
of $191 million, or $(1.02) per diluted share
- Reported EBITDA of $9 million and Adjusted EBITDA of $28
million
- Paid $95 million in regular quarterly dividends
- Announced regular quarterly dividend of $0.50 per share
Full Year 2024
- Reported Net income attributable to HF Sinclair stockholders of
$177 million, or $0.91 per diluted share, and adjusted net income
of $197 million, or $1.01 per diluted share
- Reported EBITDA of $1,133 million and Adjusted EBITDA of $1,149
million
- Returned $1,058 million to stockholders through dividends and
share repurchases
HF Sinclair Corporation (NYSE:DINO) (“HF Sinclair” or the
“Company”) today reported fourth quarter Net loss attributable to
HF Sinclair stockholders of $214 million, or $(1.14) per diluted
share, for the quarter ended December 31, 2024, compared to Net
loss attributable to HF Sinclair stockholders of $62 million, or
$(0.34) per diluted share, for the quarter ended December 31, 2023.
Excluding the adjustments shown in the accompanying earnings
release table, adjusted net loss attributable to HF Sinclair
stockholders for the fourth quarter of 2024 was $191 million, or
$(1.02) per diluted share, compared to adjusted net income of $165
million, or $0.87 per diluted share, for the fourth quarter of
2023.
HF Sinclair’s Chief Executive Officer, Tim Go, commented, “The
strong contributions from our Midstream segment, Lubricants &
Specialties segment and Marketing segment were a highlight in the
fourth quarter, partially offsetting the cyclical downturn in the
refining business. In fact, for full year 2024, we achieved record
earnings in both our Midstream and Marketing businesses, and
delivered another strong year of earnings in our Lubricants &
Specialties business, each demonstrating the success of our
integration and optimization efforts across our diversified
portfolio. During the year, we also returned over $1 billion in
cash to shareholders through share repurchases and dividends and
today, we announced a $0.50 regular quarterly dividend. Looking
forward, we remain focused on delivering safe and reliable
operations, the continued execution of our strategic priorities and
our commitment to return excess cash to shareholders.”
Refining segment loss before interest and income taxes was $332
million for the fourth quarter of 2024 compared to a loss of $75
million for the fourth quarter of 2023. The segment reported EBITDA
of $(200) million for the fourth quarter of 2024 compared to $55
million for the fourth quarter of 2023. Excluding the Lower of cost
or market inventory valuation adjustments and certain items, the
segment reported Adjusted EBITDA of $(169) million for the fourth
quarter of 2024 compared to $276 million for the fourth quarter of
2023. This decrease was principally driven by lower adjusted
refinery gross margins in both the West and Mid-Continent regions
as a result of high global supply of transportation fuels across
the industry and lower refined product sales volumes. Adjusted
refinery gross margin was $6.68 per produced barrel sold, a 51%
decrease compared to $13.58 for the fourth quarter of 2023. Crude
oil charge averaged 562,020 barrels per day (“BPD”) for the fourth
quarter of 2024 compared to 614,160 BPD for the fourth quarter of
2023. Crude charge declined in the fourth quarter of 2024 primarily
as a result of the turnaround at our El Dorado refinery and weaker
market conditions.
Renewables segment loss before interest and income taxes was $13
million for the fourth quarter of 2024 compared to a loss of $76
million for the fourth quarter of 2023. The segment reported EBITDA
of $4 million for the fourth quarter of 2024 compared to $(57)
million for the fourth quarter of 2023. Excluding the Lower of cost
or market inventory valuation adjustments, the segment reported
Adjusted EBITDA of $(9) million in the fourth quarter of 2024
compared to $(3) million in the fourth quarter of 2023. Our fourth
quarter 2024 results were impacted by the drawdown of higher priced
inventory resulting in a $20 million increase to cost of sales.
Total sales volumes were 62 million gallons for the fourth quarter
of 2024 as compared to 63 million gallons for the fourth quarter of
2023.
Marketing segment income before interest and income taxes was
$13 million for the fourth quarter of 2024 compared to $2 million
for the fourth quarter of 2023. The segment reported EBITDA of $21
million for the fourth quarter of 2024 compared to $9 million for
the fourth quarter of 2023. This increase was primarily driven by
higher margins in the fourth quarter of 2024. Total branded fuel
sales volumes were 333 million gallons for the fourth quarter 2024
as compared to 350 million gallons for the fourth quarter of
2023.
Lubricants & Specialties segment income before interest and
income taxes was $46 million for the fourth quarter of 2024
compared to $34 million in the fourth quarter of 2023. The segment
reported EBITDA of $69 million for the fourth quarter of 2024
compared to $57 million in the fourth quarter of 2023. Excluding
certain items, the segment reported Adjusted EBITDA of $70 million
for the fourth quarter of 2024 compared to $57 million for the
fourth quarter of 2023. This increase was primarily driven by a
decrease in FIFO charge from $30 million in the fourth quarter of
2023 to $2 million in the fourth quarter of 2024. The FIFO charge
in both periods was driven by the consumption of higher priced
feedstock inventory.
Midstream segment income before interest and income taxes was
$97 million for the fourth quarter of 2024 compared to $87 million
for the fourth quarter of 2023. The segment reported EBITDA of $114
million for the fourth quarter of 2024 compared to $105 million in
the fourth quarter of 2023. Excluding certain items, the segment
reported Adjusted EBITDA of $114 million for the fourth quarter of
2024 compared to $110 million for the fourth quarter of 2023. This
increase was primarily driven by higher revenues from higher
tariffs in the fourth quarter of 2024 as compared to the fourth
quarter of 2023.
For the fourth quarter of 2024, net cash used in operations
totaled $141 million. At December 31, 2024, the Company’s Cash and
cash equivalents totaled $800 million, a $554 million decrease
compared to Cash and cash equivalents of $1,354 million at December
31, 2023. During the fourth quarter of 2024, the Company announced
and paid a regular dividend of $0.50 per share to stockholders
totaling $95 million. Additionally, at December 31, 2024, the
Company’s consolidated debt was $2,638 million.
HF Sinclair also announced today that its Board of Directors
declared a regular quarterly dividend in the amount of $0.50 per
share. The dividend is payable on March 20, 2025 to holders of
record of common stock on March 6, 2025.
The Company has scheduled a webcast conference call for today,
February 20, 2025, at 8:30 AM Eastern Time to discuss fourth
quarter financial results. This webcast may be accessed at:
https://events.q4inc.com/attendee/802238415. An audio archive of
this webcast will be available using the above noted link through
March 6, 2025.
HF Sinclair Corporation, headquartered in Dallas, Texas, is an
independent energy company that produces and markets high-value
light products such as gasoline, diesel fuel, jet fuel, renewable
diesel and lubricants and specialty products. HF Sinclair owns and
operates refineries located in Kansas, Oklahoma, New Mexico,
Wyoming, Washington and Utah. HF Sinclair provides petroleum
product and crude oil transportation, terminalling, storage and
throughput services to our refineries and the petroleum industry.
HF Sinclair markets its refined products principally in the
Southwest U.S., the Rocky Mountains extending into the Pacific
Northwest and in other neighboring Plains states and supplies
high-quality fuels to more than 1,600 branded stations and licenses
the use of the Sinclair brand at more than 300 additional locations
throughout the country. HF Sinclair produces renewable diesel at
two of its facilities in Wyoming and also at its facility in New
Mexico. In addition, subsidiaries of HF Sinclair produce and market
base oils and other specialized lubricants in the U.S., Canada and
the Netherlands, and export products to more than 80 countries.
The following is a “safe harbor” statement under the Private
Securities Litigation Reform Act of 1995: The statements in this
press release relating to matters that are not historical facts are
“forward-looking statements” based on management’s beliefs and
assumptions using currently available information and expectations
as of the date hereof, are not guarantees of future performance and
involve certain risks and uncertainties, including those contained
in the Company’s filings with the Securities and Exchange
Commission (the “SEC”). Forward-looking statements use words such
as “anticipate,” “project,” “will,” “expect,” “plan,” “goal,”
“forecast,” “strategy,” “intend,” “should,” “would,” “could,”
“believe,” “may,” and similar expressions and statements regarding
the Company’s plans and objectives for future operations. Although
the Company believes that the expectations reflected in these
forward-looking statements are reasonable, the Company cannot
assure you that the Company’s expectations will prove to be
correct. Therefore, actual outcomes and results could materially
differ from what is expressed, implied or forecast in such
statements. Any differences could be caused by a number of factors,
including, but not limited to, the demand for and supply of
feedstocks, crude oil and refined products, including uncertainty
regarding the increasing societal expectations that companies
address climate change and greenhouse gas emissions; risks and
uncertainties with respect to the actions of actual or potential
competitive suppliers and transporters of refined petroleum
products or lubricant and specialty products in the Company’s
markets; the spread between market prices for refined products and
market prices for crude oil; the possibility of constraints on the
transportation of crude oil, refined products or lubricant and
specialty products; the possibility of inefficiencies, curtailments
or shutdowns in refinery operations or pipelines, whether due to
reductions in demand, accidents, unexpected leaks or spills,
unscheduled shutdowns, infection in the workforce, weather events,
global health events, civil unrest, expropriation of assets, and
other economic, diplomatic, legislative, or political events or
developments, terrorism, cyberattacks, vandalism or other
catastrophes or disruptions affecting the Company’s operations,
production facilities, machinery, pipelines and other logistics
assets, equipment, or information systems, or any of the foregoing
of the Company’s suppliers, customers, or third-party providers,
and any potential asset impairments resulting from, or the failure
to have adequate insurance coverage for or receive insurance
recoveries from, such actions; the effects of current and/or future
governmental and environmental regulations and policies, including
compliance with existing, new and changing environmental and health
and safety laws and regulations, related reporting requirements and
pipeline integrity programs; the availability and cost of financing
to the Company; the effectiveness of the Company’s capital
investments and marketing strategies; the Company’s efficiency in
carrying out and consummating construction projects, including the
Company’s ability to complete announced capital projects on time
and within capital guidance; the Company’s ability to timely obtain
or maintain permits, including those necessary for operations or
capital projects; the ability of the Company to acquire
complementary assets or businesses to the Company’s existing assets
and businesses on acceptable terms and to integrate any existing or
future acquired operations and realize the expected synergies of
any such transaction on the expected timeline; the possibility of
vandalism or other disruptive activity, or terrorist or
cyberattacks and the consequences of any such activities or
attacks; uncertainty regarding the effects and duration of global
hostilities, including shipping disruptions in the Red Sea, the
Israel-Gaza and Hezbollah conflict, the Russia-Ukraine war, and any
associated military campaigns which may disrupt crude oil supplies
and markets for the Company’s refined products and create
instability in the financial markets that could restrict the
Company’s ability to raise capital; general economic conditions,
including uncertainties regarding trade policies, such as the
imposition of tariffs, or economic slowdowns caused by a local or
national recession or other adverse economic conditions, such as
periods of increased or prolonged inflation; limitations on the
Company’s ability to make future dividend payments or effectuate
share repurchases due to market conditions and corporate, tax,
regulatory and other considerations; and other business, financial,
operational and legal risks. Additional information on risks and
uncertainties that could affect our business prospects and
performance is provided in the reports filed by us with the SEC.
All forward-looking statements included in this press release are
expressly qualified in their entirety by the foregoing cautionary
statements. The forward-looking statements speak only as of the
date made and, other than as required by law, we undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
RESULTS OF OPERATIONS
Financial Data (all information in this release is
unaudited)
Three Months Ended
December 31,
Change from 2023
2024
2023
Change
Percent
(In millions, except share and
per share data)
Sales and other revenues
$
6,500
$
7,660
$
(1,160
)
(15
)%
Operating costs and expenses:
Cost of sales: (1)
Cost of materials and other (2)
5,747
6,471
(724
)
(11
)%
Lower of cost or market inventory
valuation adjustments
(23
)
275
(298
)
(108
)%
Operating expenses
656
629
27
4
%
6,380
7,375
(995
)
(13
)%
Selling, general and administrative
expenses (1)
119
151
(32
)
(21
)%
Depreciation and amortization
219
212
7
3
%
Asset impairments
7
—
7
100
%
Total operating costs and
expenses
6,725
7,738
(1,013
)
(13
)%
Loss from operations
(225
)
(78
)
(147
)
188
%
Other income (expense):
Earnings of equity method investments
8
7
1
14
%
Interest income
16
31
(15
)
(48
)%
Interest expense
(38
)
(49
)
11
(22
)%
Other income, net
9
16
(7
)
(44
)%
(5
)
5
(10
)
(200
)%
Loss before income taxes
(230
)
(73
)
(157
)
215
%
Income tax benefit
(18
)
(39
)
21
(54
)%
Net loss
(212
)
(34
)
(178
)
524
%
Less: net income attributable to
noncontrolling interest
2
28
(26
)
(93
)%
Net loss attributable to HF Sinclair
stockholders
$
(214
)
$
(62
)
$
(152
)
245
%
Loss per share attributable to HF
Sinclair stockholders:
Basic
$
(1.14
)
$
(0.34
)
$
(0.80
)
235
%
Diluted
$
(1.14
)
$
(0.34
)
$
(0.80
)
235
%
Cash dividends declared per common
share
$
0.50
$
0.45
$
0.05
11
%
Average number of common shares
outstanding (in thousands):
Basic
188,307
187,035
1,272
1
%
Diluted
188,307
187,035
1,272
1
%
EBITDA
$
9
$
129
$
(120
)
(93
)%
Adjusted EBITDA
$
28
$
428
$
(400
)
(93
)%
Years Ended December
31,
Change from 2023
2024
2023
Change
Percent
(In millions, except share and
per share data)
Sales and other revenues
$
28,580
$
31,964
$
(3,384
)
(11
)%
Operating costs and expenses:
Cost of sales: (1)
Cost of materials and other (2)
24,582
25,784
(1,202
)
(5
)%
Lower of cost or market inventory
valuation adjustments
(43
)
271
(314
)
(116
)%
Operating expenses
2,484
2,438
46
2
%
27,023
28,493
(1,470
)
(5
)%
Selling, general and administrative
expenses (1)
447
497
(50
)
(10
)%
Depreciation and amortization
832
771
61
8
%
Asset impairments
17
—
17
100
%
Total operating costs and
expenses
28,319
29,761
(1,442
)
(5
)%
Income from operations
261
2,203
(1,942
)
(88
)%
Other income (expense):
Earnings of equity method investments
32
17
15
88
%
Interest income
75
94
(19
)
(20
)%
Interest expense
(165
)
(191
)
26
(14
)%
Other income, net
15
30
(15
)
(50
)%
(43
)
(50
)
7
(14
)%
Income before income taxes
218
2,153
(1,935
)
(90
)%
Income tax expense
34
442
(408
)
(92
)%
Net income
184
1,711
(1,527
)
(89
)%
Less: net income attributable to
noncontrolling interest
7
121
(114
)
(94
)%
Net income attributable to HF Sinclair
stockholders
$
177
$
1,590
$
(1,413
)
(89
)%
Earnings per share attributable to HF
Sinclair stockholders:
Basic
$
0.91
$
8.29
$
(7.38
)
(89
)%
Diluted
$
0.91
$
8.29
$
(7.38
)
(89
)%
Cash dividends declared per common
share
$
2.00
$
1.80
$
0.20
11
%
Average number of common shares
outstanding (in thousands):
Basic
192,073
190,035
2,038
1
%
Diluted
192,073
190,035
2,038
1
%
EBITDA
$
1,133
$
2,900
$
(1,767
)
(61
)%
Adjusted EBITDA
$
1,149
$
3,208
$
(2,059
)
(64
)%
(1)
Exclusive of Depreciation and
amortization.
(2)
Exclusive of Lower of cost or
market inventory valuation adjustments.
Balance Sheet Data
Years Ended December
31,
2024
2023
(In millions)
Cash and cash equivalents
$
800
$
1,354
Working capital
$
1,971
$
3,371
Total assets
$
16,643
$
17,716
Total debt
$
2,638
$
2,739
Total equity
$
9,346
$
10,237
Segment Information
Our operations are organized into five reportable segments:
Refining, Renewables, Marketing, Lubricants & Specialties and
Midstream. Our operations that are not included in one of these
five reportable segments are included in Corporate and Other.
Intersegment transactions are eliminated in our consolidated
financial statements and are included in Eliminations. Corporate
and Other and Eliminations are aggregated and presented under the
Corporate, Other and Eliminations column.
The Refining segment represents the operations of our El Dorado,
Tulsa, Navajo, Woods Cross, Puget Sound, Parco and Casper
refineries and HF Sinclair Asphalt Company LLC (“Asphalt”).
Refining activities involve the purchase and refining of crude oil
and wholesale marketing of refined products, such as gasoline,
diesel fuel and jet fuel. These petroleum products are primarily
marketed in the Mid-Continent, Southwest and Rocky Mountains
extending into the Pacific Northwest geographic regions of the
United States. Asphalt operates various asphalt terminals in
Arizona, New Mexico and Oklahoma.
The Renewables segment represents the operations of our Cheyenne
renewable diesel unit (“RDU”), Artesia RDU, Sinclair RDU and the
pre-treatment unit at our Artesia, New Mexico facility.
The Marketing segment represents branded fuel sales to Sinclair
branded sites in the United States and licensing fees for the use
of the Sinclair brand at additional locations throughout the
country. The Marketing segment also includes branded fuel sales to
non-Sinclair branded sites and revenues from other marketing
activities. Our branded sites are located in several states across
the United States with the highest concentration of the sites
located in our West and Mid-Continent regions.
The Lubricants & Specialties segment represents Petro-Canada
Lubricants Inc.’s production operations, located in Mississauga,
Ontario, which includes lubricant products such as base oils, white
oils, specialty products and finished lubricants, and the
operations of our Petro-Canada Lubricants Inc.’s business that
includes the marketing of products to both retail and wholesale
outlets through a global sales network with locations in Canada,
the United States and Europe. Additionally, the Lubricants &
Specialties segment includes specialty lubricant products produced
at our Tulsa refineries that are marketed throughout North America
and are distributed in Central and South America and the operations
of Red Giant Oil Company LLC, one of the leading suppliers of
locomotive engine oil in North America. Also, the Lubricants &
Specialties segment includes Sonneborn, a producer of specialty
hydrocarbon chemicals such as white oils, petrolatums and waxes
with manufacturing facilities in the United States and Europe.
The Midstream segment includes all of the operations of Holly
Energy Partners, L.P. (“HEP”), which owns and operates logistics
and refinery assets consisting of petroleum product and crude oil
pipelines, and terminals, tankage and loading rack facilities in
the Mid-Continent, Southwest and Rocky Mountains geographic regions
of the United States. The Midstream segment also includes 50%
ownership interests in each of Osage Pipeline Company, LLC, the
owner of a pipeline running from Cushing, Oklahoma to El Dorado,
Kansas, Cheyenne Pipeline, LLC, the owner of a pipeline running
from Fort Laramie, Wyoming to Cheyenne, Wyoming, and Cushing
Connect Pipeline & Terminal LLC, the owner of a pipeline
running from Cushing, Oklahoma to Tulsa, Oklahoma, a 26.08%
ownership interest in Saddle Butte Pipeline III, LLC, the owner of
a pipeline running from the Powder River Basin to Casper, Wyoming,
and a 49.995% ownership interest in Pioneer Investments Corp., the
owner of a pipeline running from Sinclair, Wyoming to the North
Salt Lake City, Utah Terminal. Revenues and other income from the
Midstream segment are earned through transactions with unaffiliated
parties for pipeline transportation, rental and terminalling
operations as well as revenues relating to pipeline transportation,
terminalling operations and tankage facilities provided for our
refining operations.
Refining
Renewables
Marketing
Lubricants &
Specialties
Midstream
Corporate, Other and
Eliminations
Consolidated Total
(In millions)
Three Months Ended December 31,
2024
Sales and other revenues:
Revenues from external customers
$
4,971
$
124
$
760
$
616
$
29
$
—
$
6,500
Intersegment revenues and other (1)
805
114
—
1
139
(1,059
)
—
5,776
238
760
617
168
(1,059
)
6,500
Cost of sales: (2)
Cost of materials and other (3)
5,410
222
729
444
—
(1,058
)
5,747
Lower of cost or market inventory
valuation adjustments
(10
)
(13
)
—
—
—
—
(23
)
Operating expenses
506
24
—
66
58
2
656
5,906
233
729
510
58
(1,056
)
6,380
Selling, general and administrative
expenses (2)
64
1
10
37
1
6
119
Depreciation and amortization
132
17
8
23
19
20
219
Asset impairments
6
—
—
1
—
—
7
Income (loss) from operations
$
(332
)
$
(13
)
$
13
$
46
$
90
$
(29
)
$
(225
)
Income (loss) before interest and income
taxes
$
(332
)
$
(13
)
$
13
$
46
$
97
$
(19
)
$
(208
)
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
2
$
—
$
2
Earnings of equity method investments
$
—
$
—
$
—
$
—
$
7
$
1
$
8
Capital expenditures
$
107
$
2
$
18
$
19
$
12
$
15
$
173
Three Months Ended December 31,
2023
Sales and other revenues:
Revenues from external customers
$
5,871
$
191
$
909
$
657
$
32
$
—
$
7,660
Intersegment revenues and other (1)
992
96
—
2
127
(1,217
)
—
6,863
287
909
659
159
(1,217
)
7,660
Cost of sales: (2)
Cost of materials and other (3)
6,041
265
888
493
—
(1,216
)
6,471
Lower of cost or market inventory
valuation adjustments
221
54
—
—
—
—
275
Operating expenses
489
23
—
66
51
—
629
6,751
342
888
559
51
(1,216
)
7,375
Selling, general and administrative
expenses (2)
57
2
12
41
8
31
151
Depreciation and amortization
130
19
7
23
20
13
212
Income (loss) from operations
$
(75
)
$
(76
)
$
2
$
36
$
80
$
(45
)
$
(78
)
Income (loss) before interest and income
taxes
$
(75
)
$
(76
)
$
2
$
34
$
87
$
(27
)
$
(55
)
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
2
$
26
$
28
Earnings of equity method investments
$
—
$
—
$
—
$
—
$
7
$
—
$
7
Capital expenditures
$
65
$
7
$
12
$
13
$
10
$
17
$
124
Refining
Renewables
Marketing
Lubricants &
Specialties
Midstream
Corporate, Other and
Eliminations
Consolidated Total
(In millions)
Year Ended December 31, 2024
Sales and other revenues:
Revenues from external customers
$
21,701
$
644
$
3,428
$
2,700
$
107
$
—
$
28,580
Intersegment revenues and other (1)
3,639
347
—
12
537
(4,535
)
—
25,340
991
3,428
2,712
644
(4,535
)
28,580
Cost of sales: (2)
Cost of materials and other (3)
22,907
910
3,319
1,977
—
(4,531
)
24,582
Lower of cost or market inventory
valuation adjustments
(32
)
(11
)
—
—
—
—
(43
)
Operating expenses
1,912
100
—
254
214
4
2,484
24,787
999
3,319
2,231
214
(4,527
)
27,023
Selling, general and administrative
expenses (2)
219
5
34
150
11
28
447
Depreciation and amortization
495
78
27
90
72
70
832
Asset impairments
6
—
—
1
10
—
17
Income (loss) from operations
$
(167
)
$
(91
)
$
48
$
240
$
337
$
(106
)
$
261
Income (loss) before interest and income
taxes
$
(167
)
$
(91
)
$
48
$
239
$
366
$
(87
)
$
308
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
7
$
—
$
7
Earnings of equity method investments
$
—
$
—
$
—
$
—
$
29
$
3
$
32
Capital expenditures
$
268
$
9
$
52
$
42
$
48
$
51
$
470
Year Ended December 31, 2023
Sales and other revenues:
Revenues from external customers
$
24,157
$
781
4,146
$
2,762
$
118
$
—
$
31,964
Intersegment revenues and other (1)
4,516
408
—
13
466
(5,403
)
—
28,673
1,189
4,146
2,775
584
(5,403
)
31,964
Cost of sales: (2)
Cost of materials and other (3)
24,042
1,081
4,051
2,009
—
(5,399
)
25,784
Lower of cost or market inventory
valuation adjustments
221
50
—
—
—
—
271
Operating expenses
1,879
109
—
259
189
2
2,438
26,142
1,240
4,051
2,268
189
(5,397
)
28,493
Selling, general and administrative
expenses (2)
200
5
34
164
27
67
497
Depreciation and amortization
461
77
24
85
82
42
771
Income (loss) from operations
$
1,870
$
(133
)
$
37
$
258
$
286
$
(115
)
$
2,203
Income (loss) before interest and income
taxes
$
1,874
$
(133
)
$
37
$
258
$
306
$
(92
)
$
2,250
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
7
$
114
$
121
Earnings of equity method investments
$
—
$
—
$
—
$
—
$
17
$
—
$
17
Capital expenditures
$
223
$
18
$
28
$
37
$
32
$
47
$
385
(1)
Refining segment intersegment
revenues relate to transportation fuels sold to the Marketing
segment. Midstream segment revenues relate to pipeline and
terminalling services provided primarily to the Refining segment,
including leases. These transactions eliminate in
consolidation.
(2)
Exclusive of Depreciation and
amortization.
(3)
Exclusive of Lower of cost or
market inventory valuation adjustments.
Refining Segment Operating Data
The following tables set forth information, including non-GAAP
(generally accepted accounting principles) performance measures,
about our consolidated refinery operations. Adjusted refinery gross
margin per produced barrel sold is total Refining segment gross
margin plus Lower of cost or market inventory valuation
adjustments, Depreciation and amortization and Operating expenses,
divided by sales volumes of produced refined products. This margin
measure does not include the non-cash effects of Lower of cost or
market inventory valuation adjustments, which relates to inventory
held 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
December 31,
Years Ended December
31,
2024
2023
2024
2023
Mid-Continent Region
Crude charge (BPD) (1)
218,820
259,410
251,650
237,510
Refinery throughput (BPD) (2)
234,390
279,480
267,200
256,810
Sales of produced refined products (BPD)
(3)
238,230
289,470
267,130
248,330
Refinery utilization (4)
84.2
%
99.8
%
96.8
%
91.4
%
Average per produced barrel sold (5)
Gross margin (6)
$
(5.86
)
$
(3.31
)
$
(0.27
)
$
6.65
Operating expenses (7)
7.93
5.91
6.65
6.92
Adjusted refinery gross margin (8)
$
4.09
$
9.82
$
8.21
$
17.31
Less: adjusted refinery operating expenses
(9)
7.93
5.91
6.65
6.92
Adjusted refinery gross margin, less
adjusted refinery operating expenses
$
(3.84
)
$
3.91
$
1.56
$
10.39
Operating expenses per throughput barrel
(10)
$
8.06
$
6.12
$
6.65
$
6.69
Adjusted refinery operating expenses per
throughput barrel (9) (11)
$
8.06
$
6.12
$
6.65
$
6.69
Feedstocks:
Sweet crude oil
56
%
48
%
54
%
56
%
Sour crude oil
24
%
26
%
23
%
20
%
Heavy sour crude oil
13
%
19
%
17
%
16
%
Other feedstocks and blends
7
%
7
%
6
%
8
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
50
%
54
%
52
%
51
%
Diesel fuels
30
%
30
%
31
%
30
%
Jet fuels
8
%
5
%
6
%
6
%
Fuel oil
1
%
1
%
1
%
1
%
Asphalt
4
%
4
%
4
%
4
%
Base oils
4
%
2
%
4
%
4
%
LPG and other
3
%
4
%
2
%
4
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
December 31,
Years Ended December
31,
2024
2023
2024
2023
West Region
Crude charge (BPD) (1)
343,200
354,750
350,430
330,030
Refinery throughput (BPD) (2)
369,310
384,910
376,050
360,200
Sales of produced refined products (BPD)
(3)
358,570
369,430
370,040
353,950
Refinery utilization (4)
82.1
%
84.9
%
83.8
%
79.0
%
Average per produced barrel sold (5)
Gross margin (6)
$
(4.04
)
$
2.14
$
0.61
$
11.34
Operating expenses (7)
10.08
9.72
9.32
9.69
Adjusted refinery gross margin (8)
$
8.40
$
16.52
$
12.04
$
23.69
Less: adjusted refinery operating expenses
(9)
9.02
9.72
9.06
9.69
Adjusted refinery gross margin, less
adjusted refinery operating expenses
$
(0.62
)
$
6.80
$
2.98
$
14.00
Operating expenses per throughput barrel
(10)
$
9.79
$
9.33
$
9.17
$
9.53
Adjusted refinery operating expenses per
throughput barrel (9) (11)
$
8.76
$
9.33
$
8.92
$
9.53
Feedstocks:
Sweet crude oil
33
%
28
%
34
%
30
%
Sour crude oil
45
%
48
%
43
%
45
%
Heavy sour crude oil
9
%
10
%
10
%
11
%
Wax crude oil
6
%
6
%
6
%
6
%
Other feedstocks and blends
7
%
8
%
7
%
8
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
56
%
55
%
52
%
54
%
Diesel fuels
32
%
32
%
32
%
31
%
Jet fuels
4
%
5
%
6
%
6
%
Fuel oil
2
%
2
%
2
%
2
%
Asphalt
2
%
2
%
2
%
2
%
LPG and other
4
%
4
%
6
%
5
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
December 31,
Years Ended December
31,
2024
2023
2024
2023
Consolidated
Crude charge (BPD) (1)
562,020
614,160
602,080
567,540
Refinery throughput (BPD) (2)
603,700
664,390
643,250
617,010
Sales of produced refined products (BPD)
(3)
596,800
658,900
637,170
602,280
Refinery utilization (4)
82.9
%
90.6
%
88.8
%
83.7
%
Average per produced barrel (5)
Gross margin (6)
$
(4.77
)
$
(0.26
)
$
0.24
$
9.41
Operating expenses (7)
9.22
8.05
8.20
8.55
Adjusted refinery gross margin (8)
$
6.68
$
13.58
$
10.43
$
21.06
Less: adjusted refinery operating expenses
(9)
8.58
8.05
8.05
8.55
Adjusted refinery gross margin, less
adjusted refinery operating expenses
$
(1.90
)
$
5.53
$
2.38
$
12.51
Operating expenses per throughput barrel
(10)
$
9.12
$
7.98
$
8.12
$
8.35
Adjusted refinery operating expenses per
throughput barrel (9) (11)
$
8.49
$
7.98
$
7.98
$
8.35
Feedstocks:
Sweet crude oil
42
%
36
%
42
%
42
%
Sour crude oil
37
%
39
%
35
%
34
%
Heavy sour crude oil
11
%
14
%
13
%
13
%
Wax crude oil
3
%
3
%
4
%
3
%
Other feedstocks and blends
7
%
8
%
6
%
8
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
53
%
55
%
53
%
53
%
Diesel fuels
31
%
31
%
31
%
30
%
Jet fuels
6
%
5
%
6
%
6
%
Fuel oil
1
%
1
%
1
%
1
%
Asphalt
3
%
3
%
3
%
3
%
Base oils
2
%
1
%
2
%
2
%
LPG and other
4
%
4
%
4
%
5
%
Total
100
%
100
%
100
%
100
%
(1)
Crude charge represents the
barrels per day of crude oil processed at our refineries.
(2)
Refinery throughput represents
the barrels per day of crude and other refinery feedstocks input to
the crude units and other conversion units at our refineries.
(3)
Represents barrels sold of
refined products produced at our refineries (including Asphalt and
intersegment sales) and does not include volumes of refined
products purchased for resale or volumes of excess crude oil
sold.
(4)
Represents crude charge divided
by total crude capacity (BPSD). Our consolidated crude capacity is
678,000 BPSD.
(5)
Represents the average amount per
produced barrel sold, which is a non-GAAP measure. Reconciliations
to amounts reported under GAAP are provided under “Reconciliations
to Amounts Reported Under Generally Accepted Accounting Principles”
below.
(6)
Gross margin represents total
Refining segment Sales and other revenues less Cost of materials
and other, Lower of cost or market inventory valuation adjustments,
Operating expenses and Depreciation and amortization, divided by
sales volumes of produced refined products.
(7)
Represents total Refining segment
Operating expenses, exclusive of Depreciation and amortization,
divided by sales volumes of produced refined products.
(8)
Adjusted refinery gross margin is
a non-GAAP measure. Reconciliations to amounts reported under GAAP
are provided under “Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles” below.
(9)
Adjusted refinery operating
expenses is a non-GAAP measure. Reconciliations to amounts reported
under GAAP are provided under “Reconciliations to Amounts Reported
Under Generally Accepted Accounting Principles” below.
(10)
Represents total Refining segment
operating expenses, exclusive of Depreciation and amortization,
divided by Refinery throughput.
(11)
Represents total Refining segment
adjusted refinery operating expenses, exclusive of Depreciation and
amortization, divided by Refinery throughput.
Renewables Segment Operating Data
The following table sets forth information, including non-GAAP
performance measures, about our renewables operations. Adjusted
renewables gross margin per produced gallon sold is total
Renewables segment gross margin plus Lower of cost or market
inventory valuation adjustments, Depreciation and amortization and
Operating expenses, divided by sales volumes of produced renewables
products. 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
December 31,
Years Ended December
31,
2024
2023
2024
2023
Renewables
Sales of produced renewables products (in
thousand gallons)
62,155
62,614
255,639
215,510
Average per produced gallon sold: (1)
Gross margin (2)
$
(0.19
)
$
(1.19
)
$
(0.33
)
$
(0.59
)
Adjusted renewables gross margin (3)
$
0.25
$
0.35
$
0.33
$
0.50
Less: operating expenses (4)
0.38
0.37
0.39
0.51
Adjusted renewables gross margin, less
operating expenses
$
(0.13
)
$
(0.02
)
$
(0.06
)
$
(0.01
)
(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 produced renewables products.
(3)
Adjusted renewables gross margin
is a non-GAAP measure. 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 produced renewables
products.
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. Reconciliations to amounts reported under GAAP
are provided under “Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles” below.
Three Months Ended
December 31,
Years Ended December
31,
2024
2023
2024
2023
Marketing
Number of branded sites at period end
(1)
1,627
1,540
1,627
1,540
Sales of refined products (in thousand
gallons)
333,108
350,391
1,376,291
1,441,607
Average per gallon sold: (2)
Gross margin (3)
$
0.07
$
0.04
$
0.06
$
0.05
Adjusted marketing gross margin (4)
$
0.09
$
0.06
$
0.08
$
0.07
(1)
Includes certain non-Sinclair
branded sites.
(2)
Represents the 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.
(4)
Adjusted marketing gross margin
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 & Specialties Segment Operating Data
The following table sets forth information about our lubricants
and specialties operations.
Three Months Ended
December 31,
Years Ended December
31,
2024
2023
2024
2023
Lubricants & Specialties
Sales of produced refined products
(BPD)
29,492
29,530
32,100
30,210
Sales of produced refined products:
Finished products
49
%
48
%
48
%
50
%
Base oils
26
%
25
%
26
%
27
%
Other
25
%
27
%
26
%
23
%
Total
100
%
100
%
100
%
100
%
Midstream Segment Operating Data
The following table sets forth information about our midstream
operations.
Three Months Ended
December 31,
Years Ended December
31,
2024
2023
2024
2023
Midstream
Volumes (BPD)
Pipelines:
Affiliates—refined product pipelines
168,568
177,331
166,722
152,462
Affiliates—intermediate pipelines
151,336
117,075
146,643
110,720
Affiliates—crude pipelines
487,227
460,201
453,606
437,586
807,131
754,607
766,971
700,768
Third parties—refined product
pipelines
41,364
39,223
39,721
38,834
Third parties—crude pipelines
212,976
200,943
204,202
197,659
1,061,471
994,773
1,010,894
937,261
Terminals and loading racks: (1)
Affiliates
916,686
1,013,833
988,566
930,264
Third parties
38,047
37,535
37,728
42,567
954,733
1,051,368
1,026,294
972,831
Total for pipelines and terminal assets
(BPD)
2,016,204
2,046,141
2,037,188
1,910,092
(1)
Certain volumetric non-financial
information has been recast to conform to current year
presentation.
Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles
Reconciliations of earnings before interest, taxes,
depreciation and amortization (“EBITDA”) and EBITDA excluding
special items (“Adjusted EBITDA”) to amounts reported under
generally accepted accounting principles (“GAAP”) in the financial
statements.
Earnings before interest, taxes, depreciation and amortization,
referred to as EBITDA, is calculated as Net income (loss)
attributable to HF Sinclair stockholders plus (i) Interest expense,
net of Interest income, (ii) Income tax expense (benefit) and (iii)
Depreciation and amortization. Adjusted EBITDA is calculated as
EBITDA plus or minus (i) Lower of cost or market inventory
valuation adjustments, (ii) Asset impairments, (iii) reclamation
costs, (iv) our pro-rata share of HEP’s share of Osage
environmental remediation costs, (v) acquisition integration and
(vi) regulatory charges.
EBITDA and Adjusted EBITDA are not calculations provided for
under accounting principles generally accepted in the United
States; however, the amounts included in these calculations are
derived from amounts included in our consolidated financial
statements. EBITDA and Adjusted EBITDA should not be considered as
alternatives to Net income (loss) or Income (loss) from operations
as an indication of our operating performance or as an alternative
to operating cash flow as a measure of liquidity. EBITDA and
Adjusted EBITDA are not necessarily comparable to similarly titled
measures of other companies. These are presented here because they
are widely used financial indicators used by investors and analysts
to measure our operating performance in the same manner as our
management and Board of Directors. 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
December 31,
Years Ended December
31,
2024
2023
2024
2023
(In millions)
Net income (loss) attributable to HF
Sinclair stockholders
$
(214
)
$
(62
)
$
177
$
1,590
Add: interest expense
38
49
165
191
Less: interest income
(16
)
(31
)
(75
)
(94
)
Income tax expense (benefit)
(18
)
(39
)
34
442
Add: depreciation and amortization
219
212
832
771
EBITDA
$
9
$
129
$
1,133
$
2,900
Add: lower of cost or market inventory
valuation adjustments
(23
)
275
(43
)
271
Add: asset impairments
7
—
17
—
Add reclamation costs
—
—
5
—
Add: HEP’s share of Osage environmental
remediation costs
—
—
—
1
Add: regulatory charge (1)
35
—
35
—
Add: acquisition integration costs
—
24
2
36
Adjusted EBITDA
$
28
$
428
$
1,149
$
3,208
(1)
Regulatory charges represent a
one-time penalty of $35 million related to the 2025 consent decree
at the Artesia, New Mexico refinery (the “2025 Consent
Decree”).
EBITDA and Adjusted EBITDA attributable to our Refining segment
are presented below:
Three Months Ended
December 31,
Years Ended December
31,
Refining Segment
2024
2023
2024
2023
(In millions)
Income (loss) before interest and income
taxes (1)
$
(332
)
$
(75
)
$
(167
)
$
1,874
Add: depreciation and amortization
132
130
495
461
EBITDA
$
(200
)
$
55
$
328
$
2,335
Add: lower of cost or market inventory
valuation adjustments
(10
)
221
(32
)
221
Add: asset impairments
6
—
6
—
Add: regulatory charge (2)
35
—
35
—
Adjusted EBITDA
$
(169
)
$
276
$
337
$
2,556
(1)
Income (loss) before interest and
income taxes of our Refining segment represents income (loss) plus
(i) Interest expense, net of Interest income and (ii) Income tax
expense (benefit).
(2)
Regulatory charges represent a
one-time penalty of $35 million related to the 2025 Consent
Decree.
EBITDA and Adjusted EBITDA attributable to our Renewables
segment are set forth below:
Three Months Ended
December 31,
Years Ended December
31,
Renewables Segment
2024
2023
2024
2023
(In millions)
Loss before interest and income taxes
(1)
$
(13
)
$
(76
)
$
(91
)
$
(133
)
Add: depreciation and amortization
17
19
78
77
EBITDA
$
4
$
(57
)
$
(13
)
$
(56
)
Add: lower of cost or market inventory
valuation adjustments
(13
)
54
(11
)
50
Adjusted EBITDA
$
(9
)
$
(3
)
$
(24
)
$
(6
)
(1)
Loss before interest and income
taxes of our Renewables segment represents loss plus (i) Interest
expense, net of Interest income and (ii) Income tax expense
(benefit).
EBITDA attributable to our Marketing segment is set forth
below:
Three Months Ended
December 31,
Years Ended December
31,
Marketing Segment
2024
2023
2024
2023
(In millions)
Income before interest and income taxes
(1)
$
13
$
2
$
48
$
37
Add: depreciation and amortization
8
7
27
24
EBITDA
$
21
$
9
$
75
$
61
(1)
Income before interest and income taxes of
our Marketing segment represents income plus (i) Interest expense,
net of Interest income and (ii) Income tax expense (benefit).
EBITDA attributable to our Lubricants & Specialties segment
is set forth below:
Three Months Ended
December 31,
Years Ended December
31,
Lubricants & Specialties
Segment
2024
2023
2024
2023
(In millions)
Income before interest and income taxes
(1)
$
46
$
34
$
239
$
258
Add: depreciation and amortization
23
23
90
85
EBITDA
$
69
$
57
$
329
$
343
Add: asset impairments
1
—
1
—
Adjusted EBITDA
$
70
$
57
$
330
$
343
(1)
Income before interest and income taxes of
our Lubricants & Specialties segment represents income plus (i)
Interest expense, net of Interest income and (ii) Income tax
expense (benefit).
EBITDA and Adjusted EBITDA attributable to our Midstream segment
are presented below:
Three Months Ended
December 31,
Years Ended December
31,
Midstream Segment
2024
2023
2024
2023
(In millions)
Income before interest and income taxes
(1)
$
97
$
87
$
366
$
306
Add: depreciation and amortization
19
20
72
82
Less: net income attributable to
noncontrolling interest
(2
)
(2
)
(7
)
(7
)
EBITDA
$
114
$
105
$
431
$
381
Add: asset impairments
—
—
10
—
Add: reclamation costs
—
—
5
—
Add: share of Osage environmental
remediation costs, net of insurance recoveries
—
1
—
2
Add: acquisition integration costs
—
4
1
10
Adjusted EBITDA
$
114
$
110
$
447
$
393
(1)
Income before interest and income taxes of
our Midstream segment represents income plus (i) Interest expense,
net of Interest income and (ii) Income tax expense (benefit).
Reconciliations of refinery operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Adjusted refinery gross margin is a non-GAAP performance measure
that is used by our management and others to compare our refining
performance to that of other companies in our industry. We believe
this margin measure is helpful to investors in evaluating our
refining performance on a relative and absolute basis, including
against publicly available crack spread data. Adjusted refinery
gross margin per produced barrel sold is total Refining segment
gross margin plus Lower of cost or market inventory valuation
adjustments, Depreciation and amortization and Operating expenses,
divided by sales volumes of produced refined products. 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
December 31,
Years Ended December
31,
2024
2023
2024
2023
(In millions, except barrel and
per barrel amounts)
Refining segment
Sales and other revenues
$
5,776
$
6,863
$
25,340
$
28,673
Costs of sales (1)
5,906
6,751
24,787
26,142
Depreciation and amortization
132
130
495
461
Gross margin
$
(262
)
$
(18
)
$
58
$
2,070
Add: lower of cost or market inventory
valuation adjustments
(10
)
221
(32
)
221
Add: operating expenses
506
489
1,912
1,879
Add: depreciation and amortization
132
130
495
461
Adjusted refinery gross margin
$
366
$
822
$
2,433
$
4,631
Operating expenses
$
506
$
489
$
1,912
$
1,879
Less: regulatory charge (2)
35
—
35
—
Adjusted refinery operating expenses
$
471
$
489
$
1,877
$
1,879
Sales of produced refined products (BPD)
(3)
596,800
658,900
637,170
602,280
Average per produced barrel sold:
Gross margin
$
(4.77
)
$
(0.26
)
$
0.24
$
9.41
Add: lower of cost or market inventory
valuation adjustments
(0.18
)
3.64
(0.14
)
1.00
Add: operating expenses
9.22
8.05
8.20
8.55
Add: depreciation and amortization
2.41
2.15
2.13
2.10
Adjusted refinery gross margin
$
6.68
$
13.58
$
10.43
$
21.06
Operating expenses
9.22
8.05
8.20
8.55
Less: regulatory charge (2)
0.64
—
0.15
—
Adjusted refinery operating expenses
$
8.58
$
8.05
$
8.05
$
8.55
Adjusted refinery gross margin, less
adjusted refinery operating expenses
$
(1.90
)
$
5.53
$
2.38
$
12.51
(1)
Exclusive of Depreciation and
amortization.
(2)
Regulatory charges represent a
one-time penalty of $35 million related to the 2025 Consent
Decree.
(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.
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. 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
December 31,
Years Ended
December 31,
2024
2023
2024
2023
(In millions, except gallon and
per gallon amounts)
Renewables segment
Sales and other revenues
$
238
$
287
$
991
$
1,189
Costs of sales (1)
233
342
999
1,240
Depreciation and amortization
17
19
78
77
Gross margin
$
(12
)
$
(74
)
$
(86
)
$
(128
)
Add: lower of cost or market inventory
valuation adjustments
(13
)
54
(11
)
50
Add: operating expenses
24
23
100
109
Add: depreciation and amortization
17
19
78
77
Adjusted renewables gross margin
$
16
$
22
$
81
$
108
Sales of produced renewables products (in
thousand gallons)
62,155
62,614
255,639
215,510
Average per produced gallon sold:
Gross margin
$
(0.19
)
$
(1.19
)
$
(0.33
)
$
(0.59
)
Add: lower of cost or market inventory
valuation adjustments
(0.21
)
0.86
(0.04
)
0.22
Add: operating expenses
0.38
0.37
0.39
0.51
Add: depreciation and amortization
0.27
0.31
0.31
0.36
Adjusted renewables gross margin
$
0.25
$
0.35
$
0.33
$
0.50
Less: operating expenses
0.38
0.37
0.39
0.51
Adjusted renewables gross margin, less
operating expenses
$
(0.13
)
$
(0.02
)
$
(0.06
)
$
(0.01
)
(1)
Exclusive of Depreciation and
amortization.
Reconciliation of marketing operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Adjusted marketing gross margin is a non-GAAP performance
measure that is used by our management and others to compare our
marketing performance to that of other companies in our industry.
We believe this margin measure is helpful to investors in
evaluating our marketing performance on a relative and absolute
basis. Adjusted marketing gross margin per gallon sold is total
Marketing segment gross margin plus Depreciation and amortization,
divided by sales volumes of marketing products. 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
December 31,
Years Ended December
31,
2024
2023
2024
2023
(In millions, except gallon and
per gallon amounts)
Marketing segment
Sales and other revenues
$
760
$
909
$
3,428
$
4,146
Costs of sales (1)
729
888
3,319
4,051
Depreciation and amortization
8
7
27
24
Gross margin
$
23
$
14
$
82
$
71
Add: depreciation and amortization
8
7
27
24
Adjusted marketing gross margin
$
31
$
21
$
109
$
95
Sales of refined products (in thousand
gallons)
333,108
350,391
1,376,291
1,441,607
Average per gallon sold:
Gross margin
$
0.07
$
0.04
$
0.06
$
0.05
Add: depreciation and amortization
0.02
0.02
0.02
0.02
Adjusted marketing gross margin
$
0.09
$
0.06
$
0.08
$
0.07
(1)
Exclusive of Depreciation and
amortization.
Reconciliation of Net income attributable to HF Sinclair stockholders to
adjusted net income attributable to HF Sinclair
stockholders
Adjusted net income attributable to HF Sinclair stockholders is
a non-GAAP financial measure that excludes non-cash Lower of cost
or market inventory valuation adjustments, Asset impairments,
reclamation costs, our pro-rata share of HEP’s share of Osage
environmental remediation costs and acquisition integration and
regulatory charges. 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
December 31,
Years Ended December
31,
2024
2023
2024
2023
(In millions, except per share
amounts)
Consolidated
GAAP:
Income (loss) before income taxes
$
(230
)
$
(73
)
$
218
$
2,153
Income tax expense (benefit)
(18
)
(39
)
34
442
Net income (loss)
$
(212
)
$
(34
)
$
184
$
1,711
Less: net income attributable to
noncontrolling interest
2
28
7
121
Net income (loss) attributable to HF
Sinclair stockholders
$
(214
)
$
(62
)
$
177
$
1,590
Non-GAAP adjustments to arrive at
adjusted results:
Lower of cost or market inventory
valuation adjustments
$
(23
)
$
275
$
(43
)
$
271
Asset impairments
7
—
17
—
Reclamation costs
—
—
5
—
HEP’s share of Osage environmental
remediation costs
—
1
—
2
Regulatory charge (1)
35
—
35
—
Acquisition integration costs
—
25
2
39
Total adjustments to income (loss) before
income taxes
$
19
$
301
$
16
$
312
Adjustment to income tax expense (benefit)
(2)
(4
)
72
(4
)
75
Adjustments to net income attributable to
noncontrolling interest
—
1
—
4
Total adjustments, net of tax
$
23
$
228
$
20
$
233
Adjusted results - non-GAAP:
Adjusted income (loss) before income
taxes
$
(211
)
$
228
$
234
$
2,465
Adjusted income tax expense (benefit)
(3)
(22
)
33
30
517
Adjusted net income (loss)
$
(189
)
$
195
$
204
$
1,948
Less: net income attributable to
noncontrolling interest
2
30
7
125
Adjusted net income (loss) attributable to
HF Sinclair stockholders
$
(191
)
$
165
$
197
$
1,823
Adjusted earnings (loss) per share -
diluted (4)
$
(1.02
)
$
0.87
$
1.01
$
9.51
(1)
Regulatory charges represent a one-time
penalty of $35 million related to the 2025 Consent Decree.
(2)
Represents adjustment to GAAP income tax
expense (benefit) to arrive at adjusted income tax expense, which
is computed as follows:
Three Months Ended
December 31,
Years Ended December
31,
2024
2023
2024
2023
(In millions)
Non-GAAP income tax expense (benefit)
(2)
$
(22
)
$
33
$
30
$
517
GAAP income tax expense (benefit)
(18
)
(39
)
34
442
Non-GAAP adjustment to income tax expense
(benefit)
$
(4
)
$
72
$
(4
)
$
75
(3)
Non-GAAP income tax expense
(benefit) is computed by (a) adjusting HF Sinclair’s consolidated
estimated Annual Effective Tax Rate (“AETR”) for GAAP purposes for
the effects of the above Non-GAAP adjustments, (b) applying the
resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before
income taxes and (c) adjusting for discrete tax items applicable to
the period.
(4)
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
December 31,
Years Ended December
31,
2024
2023
2024
2023
(In millions)
GAAP:
Income (loss) before income taxes
$
(230
)
$
(73
)
$
218
$
2,153
Income tax expense (benefit)
$
(18
)
$
(39
)
$
34
$
442
Effective tax rate for GAAP financial
statements
7.9
%
53.7
%
15.6
%
20.5
%
Adjusted - non-GAAP:
Effect of non-GAAP adjustments
2.5
%
(39.0
)%
(3.0
)%
0.4
%
Effective tax rate for adjusted
results
10.4
%
14.7
%
12.6
%
20.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220145706/en/
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
HF Sinclair (NYSE:DINO)
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