Fourth Quarter
- Reported net loss attributable to HF Sinclair stockholders of
$(62.2) million, or $(0.34) per diluted share, and adjusted net
income of $164.6 million, or $0.87 per diluted share
- Reported EBITDA of $128.4 million and adjusted EBITDA of $427.7
million
- Returned $247.5 million to stockholders through dividends and
share repurchases
- Announced $0.05 increase in regular quarterly dividend to $0.50
per share
Full Year 2023
- Reported net income attributable to HF Sinclair stockholders of
$1,589.7 million, or $8.29 per diluted share, and adjusted net
income of $1,822.9 million, or $9.51 per diluted share
- Reported EBITDA of $2,899.2 million and adjusted EBITDA of
$3,207.1 million
- Returned $1,340.0 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 $(62.2) million, or $(0.34) per diluted
share, for the quarter ended December 31, 2023, compared to net
income attributable to HF Sinclair stockholders of $587.0 million,
or $2.92 per diluted share, for the quarter ended December 31,
2022. Excluding the adjustments shown in the accompanying earnings
release table, adjusted net income attributable to HF Sinclair
stockholders for the fourth quarter of 2023 was $164.6 million, or
$0.87 per diluted share, compared to $597.8 million, or $2.97 per
diluted share, for the fourth quarter of 2022.
HF Sinclair’s Chief Executive Officer, Tim Go, commented, “HF
Sinclair’s strong fourth quarter and full year results reflect our
continued commitment to executing our corporate strategy. In 2023,
we completed maintenance turnarounds at all of our refineries
during the year on schedule and on budget as we took another step
towards improving reliability across our portfolio. In addition, in
the fourth quarter we closed the transaction to buy-in our HEP
business and furthered our efforts to integrate and optimize our
asset base. During the year, we also returned over $1.3 billion in
cash to shareholders through share repurchases and dividends,
delivering on our cash return commitment to shareholders. Going
forward, we remain focused on further executing our corporate
strategy to maximize shareholder value. We believe the strength and
diversification of our asset base, coupled with our disciplined
approach to capital allocation, will position us for success.”
Refining segment loss before interest and income taxes was
$(74.6) million for the fourth quarter of 2023 compared to income
before interest and income taxes of $758.8 million in the fourth
quarter of 2022. The segment reported EBITDA of $57.5 million for
the fourth quarter of 2023 compared to $863.8 million for the
fourth quarter of 2022. Excluding the lower of cost or market
inventory valuation adjustment, the segment reported Adjusted
EBITDA of $278.0 million for the fourth quarter of 2023. This
decrease was primarily driven by lower refinery gross margins in
both the West and Mid-Continent regions which resulted in lower
Refining segment earnings in the quarter. Consolidated refinery
gross margin was $13.88 per produced barrel, a 41% decrease
compared to $23.47 for the fourth quarter of 2022. Crude oil charge
averaged 614,160 barrels per day (“BPD”) for the fourth quarter of
2023 compared to 628,160 BPD for the fourth quarter of 2022.
Renewables segment loss before interest and income taxes was
$(75.9) million for the fourth quarter of 2023 compared to $(34.7)
million for the fourth quarter of 2022. The segment reported EBITDA
of $(56.7) million for the fourth quarter of 2023 compared to
$(16.4) million for the fourth quarter of 2022. Excluding the lower
of cost or market inventory valuation adjustment, the segment
reported Adjusted EBITDA of $(2.7) million for the fourth quarter
of 2023 compared to $(6.9) million for the fourth quarter of 2022.
Total sales volumes were 63 million gallons for the fourth quarter
of 2023 as compared to 54 million gallons for the fourth quarter of
2022.
Marketing segment income before interest and income taxes was
$2.5 million for the fourth quarter of 2023 compared to $16.9
million for the fourth quarter of 2022. The segment reported EBITDA
of $9.3 million for the fourth quarter of 2023 compared to $23.4
million for the fourth quarter of 2022. Total branded fuel sales
volumes were 350 million gallons for the fourth quarter 2023 as
compared to 336 million gallons for the fourth quarter of 2022.
Lubricants & Specialties segment income before interest and
income taxes was $34.6 million for the fourth quarter of 2023
compared to $44.6 million in the fourth quarter of 2022. The
segment reported EBITDA of $57.7 million for the fourth quarter of
2023 compared to $66.6 million in the fourth quarter of 2022. This
decrease was largely driven by a $29.9 million FIFO charge from
consumption of higher priced feedstock inventory in the fourth
quarter of 2023 compared to a $7.3 million FIFO charge for the
fourth quarter of 2022.
Midstream segment income before interest and income taxes was
$81.6 million for the fourth quarter of 2023 compared to $68.8
million for the fourth quarter of 2022. The segment reported EBITDA
of $104.6 million for the fourth quarter of 2023 compared to $89.6
million in the fourth quarter of 2022 and Adjusted EBITDA of $109.5
million for the fourth quarter of 2023 compared to $87.3 million
for the fourth quarter of 2022.
For the fourth quarter of 2023, net cash provided by operations
totaled $230.7 million. At December 31, 2023, the Company's cash
and cash equivalents totaled $1,353.7 million, an $861.0 million
decrease compared to cash and cash equivalents of $2,214.8 million
at September 30, 2023. During the fourth quarter of 2023, the
Company announced and paid a regular dividend of $0.45 per share to
stockholders totaling $81.9 million and spent $165.7 million on
share repurchases. Additionally, the Company's consolidated debt
was $2,739.1 million.
HF Sinclair announced on February 14, 2024 that its Board of
Directors declared a regular quarterly dividend in the amount of
$0.50 per share, an increase of $0.05 over its previous dividend of
$0.45 per share. The dividend is payable on March 5, 2024 to
holders of record of common stock on February 26, 2024.
The Company has scheduled a webcast conference call for today,
February 21, 2024, at 8:30 AM Eastern Time to discuss fourth
quarter financial results. This webcast may be accessed at:
https://events.q4inc.com/attendee/326631081. An audio archive of
this webcast will be available using the above noted link through
March 6, 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 Artesia, New Mexico. In
addition, subsidiaries of HF Sinclair produce and market base oils
and other specialized lubricants in the U.S., Canada and the
Netherlands, and export products to more than 80 countries.
The following is a “safe harbor” statement under the Private
Securities Litigation Reform Act of 1995: The statements in this
press release relating to matters that are not historical facts are
“forward-looking statements” based on management’s beliefs and
assumptions using currently available information and expectations
as of the date hereof, are not guarantees of future performance and
involve certain risks and uncertainties, including those contained
in the Company's filings with the Securities and Exchange
Commission (the “SEC”). Forward-looking statements use words such
as “anticipate,” “project,” “will,” “expect,” “plan,” “goal,”
“forecast,” “strategy,” “intend,” “should,” “would,” “could,”
“believe,” “may,” and similar expressions and statements regarding
the Company's plans and objectives for future operations. Although
the Company believes that the expectations reflected in these
forward-looking statements are reasonable, the Company cannot
assure you that the Company's expectations will prove to be
correct. Therefore, actual outcomes and results could materially
differ from what is expressed, implied or forecast in such
statements. Any differences could be caused by a number of factors,
including, but not limited to, the demand for and supply of
feedstocks, crude oil and refined products, including uncertainty
regarding the increasing societal expectations that companies
address climate change and greenhouse gas emissions; risks and
uncertainties with respect to the actions of actual or potential
competitive suppliers and transporters of refined petroleum
products or lubricant and specialty products in the Company’s
markets; the spread between market prices for refined products and
market prices for crude oil; the possibility of constraints on the
transportation of refined products or lubricant and specialty
products; the possibility of inefficiencies, curtailments or
shutdowns in refinery operations or pipelines, whether due to
reductions in demand, accidents, unexpected leaks or spills,
unscheduled shutdowns, infection in the workforce, weather events,
global health events, civil unrest, expropriation of assets, and
other economic, diplomatic, legislative, or political events or
developments, terrorism, cyberattacks, vandalism or other
catastrophes or disruptions affecting the Company’s operations,
production facilities, machinery, pipelines and other logistics
assets, equipment, or information systems, or any of the foregoing
of the Company’s suppliers, customers, or third-party providers,
and any potential asset impairments resulting from, or the failure
to have adequate insurance coverage for or receive insurance
recoveries from, such actions; the effects of current and/or future
governmental and environmental regulations and policies, including
compliance with existing, new and changing environmental and health
and safety laws and regulations, related reporting requirements and
pipeline integrity programs; the availability and cost of financing
to the Company; the effectiveness of the Company’s capital
investments and marketing strategies; the Company’s efficiency in
carrying out and consummating construction projects, including the
Company’s ability to complete announced capital projects on time
and within capital guidance; the Company’s ability to timely obtain
or maintain permits, including those necessary for operations or
capital projects; the ability of the Company to acquire
complementary assets or businesses to the Company's existing assets
and business 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.
RESULTS OF OPERATIONS
Financial Data (all information in this release is
unaudited)
Three Months Ended
December 31,
Change from 2022
2023
2022
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
7,660,136
$
8,984,927
$
(1,324,791
)
(15
)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
6,471,137
7,222,833
(751,696
)
(10
)
Lower of cost or market inventory
valuation adjustment
274,533
9,573
264,960
2,768
6,745,670
7,232,406
(486,736
)
(7
)
Operating expenses
629,433
646,741
(17,308
)
(3
)
Selling, general and administrative
expenses
150,726
102,511
48,215
47
Depreciation and amortization
211,668
176,169
35,499
20
Total operating costs and
expenses
7,737,497
8,157,827
(420,330
)
(5
)
Income (loss) from operations
(77,361
)
827,100
(904,461
)
(109
)
Other income (expense):
Earnings of equity method investments
6,933
7,001
(68
)
(1
)
Interest income
31,365
17,517
13,848
79
Interest expense
(49,306
)
(56,978
)
7,672
(13
)
Gain on business interruption insurance
settlement
—
15,202
(15,202
)
(100
)
Gain on early extinguishment of debt
—
604
(604
)
(100
)
Gain (loss) on foreign currency
transactions
52
(2,415
)
2,467
(102
)
Gain on sale of assets and other
15,633
4,992
10,641
213
4,677
(14,077
)
18,754
(133
)
Income (loss) before income
taxes
(72,684
)
813,023
(885,707
)
(109
)
Income tax expense (benefit)
(39,028
)
188,197
(227,225
)
(121
)
Net income (loss)
(33,656
)
624,826
(658,482
)
(105
)
Less net income attributable to
noncontrolling interest
28,527
37,799
(9,272
)
(25
)
Net income (loss) attributable to HF
Sinclair stockholders
$
(62,183
)
$
587,027
$
(649,210
)
(111
)%
Income (loss) per share:
Basic
$
(0.34
)
$
2.92
$
(3.26
)
(112
)%
Diluted
$
(0.34
)
$
2.92
$
(3.26
)
(112
)%
Cash dividends declared per common
share
$
0.45
$
0.40
$
0.05
13
%
Average number of common shares
outstanding:
Basic
187,035
199,459
(12,424
)
(6
)%
Diluted
187,035
199,459
(12,424
)
(6
)%
EBITDA
$
128,398
$
990,854
$
(862,456
)
(87
)%
Adjusted EBITDA
$
427,667
$
1,004,124
$
(576,457
)
(57
)%
Years Ended December
31,
Change from 2022
2023
2022
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
31,964,395
$
38,204,839
$
(6,240,444
)
(16
)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
25,784,449
30,680,013
(4,895,564
)
(16
)
Lower of cost or market inventory
valuation adjustment
270,419
52,412
218,007
416
26,054,868
30,732,425
(4,677,557
)
(15
)
Operating expenses
2,438,148
2,334,893
103,255
4
Selling, general and administrative
expenses
498,240
426,485
71,755
17
Depreciation and amortization
770,573
656,787
113,786
17
Total operating costs and
expenses
29,761,829
34,150,590
(4,388,761
)
(13
)
Income from operations
2,202,566
4,054,249
(1,851,683
)
(46
)
Other income (expense):
Earnings (loss) of equity method
investments
17,369
(260
)
17,629
(6,780
)
Interest income
93,468
30,179
63,289
210
Interest expense
(190,796
)
(175,628
)
(15,168
)
9
Gain on business interruption insurance
settlement
—
15,202
(15,202
)
(100
)
Gain on early extinguishment of debt
—
604
(604
)
(100
)
Gain (loss) on foreign currency
transactions
2,530
(1,637
)
4,167
(255
)
Gain on sale of assets and other
27,370
13,337
14,033
105
(50,059
)
(118,203
)
68,144
(58
)
Income before income taxes
2,152,507
3,936,046
(1,783,539
)
(45
)
Income tax expense
441,612
894,872
(453,260
)
(51
)
Net income
1,710,895
3,041,174
(1,330,279
)
(44
)
Less net income attributable to
noncontrolling interest
121,229
118,506
2,723
2
Net income attributable to HF Sinclair
stockholders
$
1,589,666
$
2,922,668
$
(1,333,002
)
(46
)%
Earnings per share:
Basic
$
8.29
$
14.28
$
(5.99
)
(42
)%
Diluted
$
8.29
$
14.28
$
(5.99
)
(42
)%
Cash dividends declared per common
share
$
1.80
$
1.20
$
0.60
50
%
Average number of common shares
outstanding:
Basic
190,035
202,566
(12,531
)
(6
)%
Diluted
190,035
202,566
(12,531
)
(6
)%
EBITDA
$
2,899,179
$
4,619,776
$
(1,720,597
)
(37
)%
Adjusted EBITDA
$
3,207,074
$
4,734,160
$
(1,527,086
)
(32
)%
Balance Sheet Data
Years Ended December
31,
2023
2022
(In thousands)
Cash and cash equivalents
$
1,353,747
$
1,665,066
Working capital
$
3,371,905
$
3,502,790
Total assets
$
17,716,265
$
18,125,483
Total debt
$
2,739,083
$
3,255,472
Total equity
$
10,237,298
$
10,017,572
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 and Puget Sound refineries and HF
Sinclair Asphalt Company LLC (“Asphalt”). Effective with the
Sinclair Transactions that closed on March 14, 2022, the Refining
segment includes our Parco and Casper refineries. Refining
activities involve the purchase and refining of crude oil and
wholesale marketing of refined products, such as gasoline, diesel
fuel and jet fuel. These petroleum products are primarily marketed
in the Mid-Continent, Southwest and Rocky Mountains extending into
the Pacific Northwest geographic regions of the United States.
Asphalt operates various asphalt terminals in Arizona, New Mexico
and Oklahoma.
The Renewables segment represents the operations of our Cheyenne
renewable diesel unit (“RDU”), which was mechanically complete in
the fourth quarter of 2021 and operational in the first quarter of
2022, the pre-treatment unit at our Artesia, New Mexico facility,
which was completed and operational in the first quarter of 2022
and the Artesia RDU, which was completed and operational in the
second quarter of 2022. Also, effective with the Sinclair
Transactions that closed on March 14, 2022, the Renewables segment
includes the Sinclair RDU.
Effective with the Sinclair Transactions that closed on March
14, 2022, the Marketing segment represents branded fuel sales to
Sinclair branded sites in the United States and licensing fees for
the use of the Sinclair brand at additional locations throughout
the country. The Marketing segment also includes branded fuel sales
to non-Sinclair branded sites from legacy HollyFrontier agreements
and revenues from other marketing activities. Our branded sites are
located in several states across the United States with the highest
concentration of the sites located in our West and Mid-Continent
regions.
The Lubricants & Specialties segment represents Petro-Canada
Lubricants Inc.’s production operations, located in Mississauga,
Ontario, that includes lubricant products such as base oils, white
oils, specialty products and finished lubricants, and the
operations of our Petro-Canada Lubricants business that includes
the marketing of products to both retail and wholesale outlets
through a global sales network with locations in Canada, the United
States and Europe. Additionally, the Lubricants & 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 largest 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, terminals, tankage, loading rack facilities and, during
the year ended December 31, 2023 refinery processing units, 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 the Osage Pipeline (“Osage”), the
Cheyenne Pipeline and Cushing Connect, a 25.12% ownership interest
in the Saddle Butte Pipeline and a 49.995% ownership interest in
the Pioneer Pipeline. 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.
Refining
Renewables
Marketing
Lubricants &
Specialties
Midstream
Corporate, Other and
Eliminations
Consolidated Total
(In thousands)
Three Months Ended December 31,
2023
Sales and other revenues:
Revenues from external customers
$
5,871,425
$
190,689
$
908,769
$
656,826
$
32,427
$
—
$
7,660,136
Intersegment revenues
992,248
95,923
—
1,676
134,479
(1,224,326
)
—
$
6,863,673
$
286,612
$
908,769
$
658,502
$
166,906
$
(1,224,326
)
$
7,660,136
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
6,022,027
$
264,693
$
888,032
$
492,524
$
—
$
(1,196,139
)
$
6,471,137
Lower of cost or market inventory
valuation adjustment
$
220,558
$
53,975
$
—
$
—
$
—
$
—
$
274,533
Operating expenses
$
506,288
$
23,114
$
—
$
65,986
$
58,925
$
(24,880
)
$
629,433
Selling, general and administrative
expenses
$
57,086
$
1,530
$
11,592
$
40,082
$
8,359
$
32,077
$
150,726
Depreciation and amortization
$
132,092
$
19,254
$
6,710
$
23,168
$
25,026
$
5,418
$
211,668
Income (loss) from operations
$
(74,378
)
$
(75,954
)
$
2,435
$
36,742
$
74,596
$
(40,802
)
$
(77,361
)
Income (loss) before interest and income
taxes
$
(74,626
)
$
(75,909
)
$
2,540
$
34,575
$
81,601
$
(22,924
)
$
(54,743
)
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
2,023
$
26,504
$
28,527
Earnings of equity method investments
$
—
$
—
$
—
$
—
$
6,523
$
410
$
6,933
Capital expenditures
$
65,440
$
6,961
$
11,952
$
12,979
$
9,984
$
16,660
$
123,976
Three Months Ended December 31,
2022
Sales and other revenues:
Revenues from external customers
$
6,937,534
$
255,689
$
1,031,898
$
729,916
$
29,890
$
—
$
8,984,927
Intersegment revenues
1,044,841
162,205
—
295
112,620
(1,319,961
)
—
$
7,982,375
$
417,894
$
1,031,898
$
730,211
$
142,510
$
(1,319,961
)
$
8,984,927
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
6,561,147
$
391,646
$
1,008,042
$
555,287
$
—
$
(1,293,289
)
$
7,222,833
Lower of cost or market inventory
valuation adjustment
$
—
$
9,573
$
—
$
—
$
—
$
—
$
9,573
Operating expenses
$
517,024
$
32,178
$
—
$
67,545
$
53,629
$
(23,635
)
$
646,741
Selling, general and administrative
expenses
$
39,302
$
1,023
$
414
$
41,070
$
4,258
$
16,444
$
102,511
Depreciation and amortization
$
105,005
$
18,222
$
6,545
$
22,021
$
22,880
$
1,496
$
176,169
Income (loss) from operations
$
759,897
$
(34,748
)
$
16,897
$
44,288
$
61,743
$
(20,977
)
$
827,100
Income (loss) before interest and income
taxes
$
758,844
$
(34,663
)
$
16,897
$
44,550
$
68,771
$
(1,915
)
$
852,484
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
2,010
$
35,789
$
37,799
Earnings of equity method investments
$
—
$
—
$
—
$
—
$
7,001
$
—
$
7,001
Capital expenditures
$
57,996
$
14,481
$
2,479
$
10,334
$
7,770
$
13,504
$
106,564
Refining
Renewables
Marketing
Lubricants &
Specialties
Midstream
Corporate, Other and
Eliminations
Consolidated Total
(In thousands)
Year Ended December 31, 2023
Sales and other revenues:
Revenues from external customers
$
24,156,278
$
781,309
$
4,146,292
$
2,762,767
$
117,749
$
—
$
31,964,395
Intersegment revenues
4,516,326
407,681
—
12,566
490,566
(5,427,139
)
—
$
28,672,604
$
1,188,990
$
4,146,292
$
2,775,333
$
608,315
$
(5,427,139
)
$
31,964,395
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
23,969,557
$
1,080,919
$
4,050,759
$
2,005,853
$
—
$
(5,322,639
)
$
25,784,449
Lower of cost or market inventory
valuation adjustment
$
220,558
$
49,861
$
—
$
—
$
—
$
—
$
270,419
Operating expenses
$
1,946,958
$
109,056
$
—
$
258,578
$
222,631
$
(99,075
)
$
2,438,148
Selling, general and administrative
expenses
$
199,547
$
5,117
$
34,413
$
164,311
$
26,453
$
68,399
$
498,240
Depreciation and amortization
$
468,001
$
77,100
$
24,599
$
86,341
$
101,028
$
13,504
$
770,573
Income (loss) from operations
$
1,867,983
$
(133,063
)
$
36,521
$
260,250
$
258,203
$
(87,328
)
$
2,202,566
Income (loss) before interest and income
taxes
$
1,872,074
$
(132,949
)
$
36,758
$
260,002
$
277,200
$
(63,250
)
$
2,249,835
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
7,200
$
114,029
$
121,229
Earnings (loss) of equity method
investments
$
—
$
—
$
—
$
—
$
17,531
$
(162
)
$
17,369
Capital expenditures
$
223,225
$
18,154
$
27,630
$
37,431
$
31,962
$
47,011
$
385,413
Year Ended December 31, 2022
Sales and other revenues:
Revenues from external customers
$
30,379,696
$
654,893
3,911,922
$
3,149,128
$
109,200
$
—
$
38,204,839
Intersegment revenues
4,033,213
360,606
—
9,472
438,280
(4,841,571
)
—
$
34,412,909
$
1,015,499
$
3,911,922
$
3,158,600
$
547,480
$
(4,841,571
)
$
38,204,839
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
28,270,195
$
974,167
3,845,625
$
2,333,156
$
—
$
(4,743,130
)
$
30,680,013
Lower of cost or market inventory
valuation adjustment
$
—
$
52,412
—
$
—
$
—
$
—
$
52,412
Operating expenses
$
1,815,931
$
111,974
—
$
277,522
$
210,623
$
(81,157
)
$
2,334,893
Selling, general and administrative
expenses
$
146,660
$
3,769
2,954
$
168,207
$
17,003
$
87,892
$
426,485
Depreciation and amortization
$
405,065
$
52,621
17,819
$
83,447
$
96,683
$
1,152
$
656,787
Income (loss) from operations
$
3,775,058
$
(179,444
)
$
45,524
$
296,268
$
223,171
$
(106,328
)
$
4,054,249
Income (loss) before interest and income
taxes
$
3,774,118
$
(179,252
)
$
45,524
$
299,389
$
223,579
$
(81,863
)
$
4,081,495
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
9,164
$
109,342
$
118,506
Loss of equity method investments
$
—
—
$
—
$
—
$
(260
)
$
—
$
(260
)
Capital expenditures
$
162,280
$
225,274
$
9,275
$
34,887
$
38,964
$
53,327
$
524,007
Refining Segment Operating Data
The following tables set forth information, including non-GAAP
(generally accepted accounting principles) performance measures
about our refinery operations. Refinery gross and net operating
margins do not include the non-cash effects of lower of cost or
market inventory valuation adjustments and depreciation and
amortization. Reconciliations to amounts reported under GAAP are
provided under “Reconciliations to Amounts Reported Under Generally
Accepted Accounting Principles” below.
The disaggregation of our refining geographic operating data is
presented in two regions, Mid-Continent and West, to best reflect
the economic drivers of our refining operations. The Mid-Continent
region is comprised of the El Dorado and Tulsa refineries. The West
region is comprised of the Puget Sound, Navajo, Woods Cross, Parco
and Casper refineries. The refinery operations of the Parco and
Casper refineries are included for the period March 14, 2022 (the
date of acquisition) through December 31, 2023.
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
Mid-Continent Region
Crude charge (BPD) (1)
259,410
286,190
237,510
283,160
Refinery throughput (BPD) (2)
279,480
305,750
256,810
299,380
Sales of produced refined products (BPD)
(3)
289,470
283,360
248,330
280,800
Refinery utilization (4)
99.8
%
110.1
%
91.4
%
108.9
%
Average per produced barrel (5)
Refinery gross margin
$
9.97
$
20.23
$
17.49
$
22.01
Refinery operating expenses (6)
6.00
6.41
7.02
6.19
Net operating margin
$
3.97
$
13.82
$
10.47
$
15.82
Refinery operating expenses per throughput
barrel (7)
$
6.22
$
5.94
$
6.79
$
5.81
Feedstocks:
Sweet crude oil
48
%
58
%
56
%
58
%
Sour crude oil
26
%
20
%
20
%
20
%
Heavy sour crude oil
19
%
16
%
16
%
16
%
Other feedstocks and blends
7
%
6
%
8
%
6
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
54
%
52
%
51
%
51
%
Diesel fuels
30
%
31
%
30
%
33
%
Jet fuels
5
%
6
%
6
%
6
%
Fuel oil
1
%
1
%
1
%
1
%
Asphalt
4
%
3
%
4
%
3
%
Base oils
2
%
3
%
4
%
4
%
LPG and other
4
%
4
%
4
%
2
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022 (8)
West Region
Crude charge (BPD) (1)
354,750
341,970
330,030
323,820
Refinery throughput (BPD) (2)
384,910
367,360
360,200
347,590
Sales of produced refined products (BPD)
(3)
369,430
374,900
353,950
347,540
Refinery utilization (4)
84.9
%
81.8
%
79.0
%
81.4
%
Average per produced barrel (5)
Refinery gross margin
$
16.95
$
25.92
$
24.13
$
30.64
Refinery operating expenses (6)
10.19
10.14
10.14
9.31
Net operating margin
$
6.76
$
15.78
$
13.99
$
21.33
Refinery operating expenses per throughput
barrel (7)
$
9.78
$
10.35
$
9.97
$
9.31
Feedstocks:
Sweet crude oil
28
%
32
%
30
%
28
%
Sour crude oil
48
%
50
%
45
%
50
%
Heavy sour crude oil
10
%
6
%
11
%
10
%
Black wax crude oil
6
%
5
%
6
%
5
%
Other feedstocks and blends
8
%
7
%
8
%
7
%
Total
100
%
100
%
100
%
100
%
Sales of produced refined products:
Gasolines
55
%
55
%
54
%
53
%
Diesel fuels
32
%
30
%
31
%
32
%
Jet fuels
5
%
5
%
6
%
5
%
Fuel oil
2
%
3
%
2
%
3
%
Asphalt
2
%
3
%
2
%
3
%
LPG and other
4
%
4
%
5
%
4
%
Total
100
%
100
%
100
%
100
%
Consolidated
Crude charge (BPD) (1)
614,160
628,160
567,540
606,980
Refinery throughput (BPD) (2)
664,390
673,110
617,010
646,970
Sales of produced refined products (BPD)
(3)
658,900
658,260
602,280
628,340
Refinery utilization (4)
90.6
%
92.7
%
83.7
%
92.3
%
Average per produced barrel (5)
Refinery gross margin
$
13.88
$
23.47
$
21.39
$
26.78
Refinery operating expenses (6)
8.35
8.54
8.86
7.92
Net operating margin
$
5.53
$
14.93
$
12.53
$
18.86
Refinery operating expenses per throughput
barrel (7)
$
8.28
$
8.35
$
8.65
$
7.69
Feedstocks:
Sweet crude oil
36
%
43
%
42
%
42
%
Sour crude oil
39
%
36
%
34
%
36
%
Heavy sour crude oil
14
%
11
%
13
%
13
%
Black wax crude oil
3
%
3
%
3
%
3
%
Other feedstocks and blends
8
%
7
%
8
%
6
%
Total
100
%
100
%
100
%
100
%
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
Consolidated
Sales of produced refined products:
Gasolines
55
%
54
%
53
%
52
%
Diesel fuels
31
%
30
%
30
%
32
%
Jet fuels
5
%
6
%
6
%
6
%
Fuel oil
1
%
2
%
1
%
2
%
Asphalt
3
%
3
%
3
%
3
%
Base oils
1
%
1
%
2
%
2
%
LPG and other
4
%
4
%
5
%
3
%
Total
100
%
100
%
100
%
100
%
(1)
Crude charge represents the
barrels per day of crude oil processed at our refineries.
(2)
Refinery throughput represents
the barrels per day of crude and other refinery feedstocks input to
the crude units and other conversion units at our refineries.
(3)
Represents barrels sold of
refined products produced at our refineries (including Asphalt and
intersegment sales) and does not include volumes of refined
products purchased for resale or volumes of excess crude oil
sold.
(4)
Represents crude charge divided
by total crude capacity (BPSD). Our consolidated crude capacity is
678,000 BPSD.
(5)
Represents average amount per
produced barrel sold, which is a non-GAAP measure. Reconciliations
to amounts reported under GAAP are provided under “Reconciliations
to Amounts Reported Under Generally Accepted Accounting Principles”
below.
(6)
Represents total Mid-Continent
and West regions operating expenses, exclusive of depreciation and
amortization, divided by sales volumes of refined products produced
at our refineries.
(7)
Represents total Mid-Continent
and West regions operating expenses, exclusive of depreciation and
amortization, divided by refinery throughput.
(8)
We acquired the Parco and Casper
refineries on March 14, 2022. Refining operating data for the year
ended December 31, 2022 includes crude oil and feedstocks processed
and refined products sold at our Parco and Casper refineries for
the period March 14, 2022 through December 31, 2022 only, averaged
over the 365 days in the year ended December 31, 2022.
Renewables Segment Operating Data
The following table sets forth information about our Renewables
operations and includes our Sinclair businesses for the period
March 14, 2022 (the date of acquisition) through December 31,
2023.
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
Renewables
Sales volumes (in thousand gallons)
62,614
53,733
215,510
136,204
Average per produced gallon (1)
Renewables gross margin
$
0.35
$
0.49
$
0.50
$
0.30
Renewables operating expense (2)
0.37
0.60
0.51
0.82
Net operating margin
$
(0.02
)
$
(0.11
)
$
(0.01
)
$
(0.52
)
(1)
Represents average amount per
produced gallons sold, which is a non-GAAP measure. Reconciliations
to amounts reported under GAAP are provided under “Reconciliations
to Amounts Reported Under Generally Accepted Accounting Principles”
below.
(2)
Represents total Renewables
segment operating expenses, exclusive of depreciation and
amortization, divided by sales volumes of renewable diesel produced
at our renewable diesel units.
Marketing Segment Operating Data
The following table sets forth information about our Marketing
operations and includes our Sinclair business for the period March
14, 2022 (the date of acquisition) through December 31, 2023. The
marketing gross margin does not include the non-cash effects of
depreciation and amortization. Reconciliations to amounts reported
under GAAP are provided under “Reconciliations to Amounts Reported
Under Generally Accepted Accounting Principles” below.
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
Marketing
Number of branded sites at period end
(1)
1,540
1,513
1,540
1,513
Sales volumes (in thousand gallons)
350,391
335,926
1,441,607
1,118,444
Margin per gallon of sales (2)
$
0.06
$
0.07
$
0.07
$
0.06
(1)
Includes non-Sinclair branded
sites from legacy HollyFrontier agreements.
(2)
Represents average amount per
gallon sold, which is a non-GAAP measure. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
Lubricants & Specialties Segment Operating Data
The following table sets forth information about our Lubricants
& Specialties operations.
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
Lubricants & Specialties
Sales of produced products (BPD)
29,530
28,570
30,210
32,530
Sales of produced products:
Finished products
48
%
53
%
50
%
51
%
Base oils
25
%
28
%
27
%
28
%
Other
27
%
19
%
23
%
21
%
Total
100
%
100
%
100
%
100
%
Effective the first quarter of 2023, management views the
Lubricants & Specialties segment as an integrated business of
processing feedstocks into base oils and processing base oils into
finished lubricant products along with the packaging, distribution
and sales to customers.
Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles
Reconciliations of earnings before interest, taxes,
depreciation and amortization (“EBITDA”) and EBITDA excluding
special items (“Adjusted EBITDA”) to amounts reported under
generally accepted accounting principles (“GAAP”) in financial
statements.
Earnings before interest, taxes, depreciation and amortization,
referred to as EBITDA, is calculated as net (loss) 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 Osage environmental remediation costs,
net of insurance recoveries 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
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(In thousands)
Net income (loss) attributable to HF
Sinclair stockholders
$
(62,183
)
$
587,027
$
1,589,666
$
2,922,668
Add interest expense
49,306
56,978
190,796
175,628
Subtract interest income
(31,365
)
(17,517
)
(93,468
)
(30,179
)
Add income tax expense (benefit)
(39,028
)
188,197
441,612
894,872
Add depreciation and amortization
211,668
176,169
770,573
656,787
EBITDA
$
128,398
$
990,854
$
2,899,179
$
4,619,776
Add lower of cost or market inventory
valuation adjustment
274,533
9,573
270,419
52,412
Add decommissioning costs
—
220
—
1,689
Add (subtract) HF Sinclair's pro-rata
share of Osage environmental remediation costs, net of insurance
recoveries
313
(1,275
)
921
8,297
Add acquisition integration and regulatory
costs
24,423
4,752
36,555
51,986
Adjusted EBITDA
$
427,667
$
1,004,124
$
3,207,074
$
4,734,160
EBITDA and Adjusted EBITDA attributable to our Refining segment
is presented below:
Three Months Ended
December 31,
Years Ended
December 31,
Refining Segment
2023
2022
2023
2022
(In thousands)
Income (loss) before interest and income
taxes (1)
$
(74,626
)
$
758,844
$
1,872,074
$
3,774,118
Add depreciation and amortization
132,092
105,005
468,001
405,065
EBITDA
$
57,466
$
863,849
$
2,340,075
$
4,179,183
Add lower of cost or market inventory
valuation adjustment
220,558
—
220,558
—
Adjusted EBITDA
$
278,024
$
863,849
$
2,560,633
$
4,179,183
(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
provision.
EBITDA and Adjusted EBITDA attributable to our Renewables
segment is set forth below:
Three Months Ended
December 31,
Years Ended
December 31,
Renewables Segment
2023
2022
2023
2022
(In thousands)
Loss before interest and income taxes
(1)
$
(75,909
)
$
(34,663
)
$
(132,949
)
$
(179,252
)
Add depreciation and amortization
19,254
18,222
77,100
52,621
EBITDA
(56,655
)
(16,441
)
(55,849
)
(126,631
)
Add lower of cost or market inventory
valuation adjustment
53,975
9,573
49,861
52,412
Adjusted EBITDA
$
(2,680
)
$
(6,868
)
$
(5,988
)
$
(74,219
)
(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 provision.
EBITDA attributable to our Marketing segment is set forth
below:
Three Months Ended
December 31,
Years Ended
December 31,
Marketing Segment
2023
2022
2023
2022
(In thousands)
Income before interest and income taxes
(1)
$
2,540
16,897
$
36,758
45,524
Add depreciation and amortization
6,710
6,545
24,599
17,819
EBITDA
$
9,250
$
23,442
$
61,357
$
63,343
(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.
Lubricants & Specialties
Segment
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(In thousands)
Income before interest and income taxes
(1)
34,575
44,550
260,002
299,389
Add depreciation and amortization
23,168
22,021
86,341
83,447
EBITDA
57,743
66,571
346,343
382,836
(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
December 31,
Years Ended
December 31,
Midstream Segment
2023
2022
2023
2022
(In thousands)
Income before interest and income taxes
(1)
81,601
68,771
277,200
223,579
Add depreciation and amortization
25,026
22,880
101,028
96,683
Subtract net income attributable to
noncontrolling interest
(2,023
)
(2,010
)
(7,200
)
(9,164
)
EBITDA
$
104,604
$
89,641
$
371,028
$
311,098
Add (subtract) share of Osage
environmental remediation costs, net of insurance recoveries
554
(2,703
)
1,843
17,594
Add acquisition integration and regulatory
costs
4,322
336
10,079
2,431
Adjusted EBITDA
$
109,480
$
87,274
$
382,950
$
331,123
(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.
Reconciliations of refinery operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP
performance measures that are used by our management and others to
compare our refining performance to that of other companies in our
industry. We believe these margin measures are helpful to investors
in evaluating our refining performance on a relative and absolute
basis. Refinery gross margin per produced barrel sold is total
Refining segment revenues less total Refining segment cost of
products sold, exclusive of lower of cost or market inventory
valuation adjustments, divided by sales volumes of produced refined
products sold. Net operating margin per barrel sold is the
difference between refinery gross margin and refinery operating
expenses per produced barrel sold. These two margins do not include
the non-cash effects of lower of cost or market inventory valuation
adjustments or depreciation and amortization. Each of these
component performance measures can be reconciled directly to our
consolidated statements of operations. Other companies in our
industry may not calculate these performance measures in the same
manner.
Reconciliation of average refining net
operating margin per produced barrel sold to refinery gross margin
to refining sales and other revenues
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Dollars in thousands, except per
barrel amounts)
Refining segment sales and other
revenues
$
6,863,673
$
7,982,375
$
28,672,604
$
34,412,909
Refining segment cost of products sold
(exclusive of lower of cost or market inventory valuation
adjustment)
6,022,027
6,561,147
23,969,557
28,270,195
Lower of cost or market inventory
valuation adjustment
220,558
—
220,558
—
621,088
1,421,228
4,482,489
6,142,714
Add lower of cost or market inventory
valuation adjustment
220,558
—
220,558
—
Refining gross margin
$
841,646
$
1,421,228
$
4,703,047
$
6,142,714
Refining segment operating expenses
$
506,288
$
517,024
$
1,946,958
$
1,815,931
Produced barrels sold (BPD)
658,900
658,260
602,280
628,340
Refinery gross margin per produced barrel
sold
$
13.88
$
23.47
$
21.39
$
26.78
Less average refinery operating expenses
per produced barrel sold
8.35
8.54
8.86
7.92
Net operating margin per produced barrel
sold
$
5.53
$
14.93
$
12.53
$
18.86
Reconciliation of renewables operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Renewables gross margin and net operating margin are non-GAAP
performance measures that are used by our management and others to
compare our renewables performance to that of other companies in
our industry. We believe these margin measures are helpful to
investors in evaluating our renewables performance on a relative
and absolute basis. Renewables gross margin per produced gallon
sold is total Renewables segment revenues less total Renewables
segment cost of products sold, exclusive of lower of cost or market
inventory valuation adjustments, divided by sales volumes of
produced renewables products sold. Net operating margin per
produced gallon sold is the difference between renewables gross
margin and renewables operating expenses per produced gallon sold.
These two margins do not include the non-cash effects of lower of
cost or market inventory valuation adjustments and depreciation and
amortization. Each of these component performance measures can be
reconciled directly to our consolidated statements of operations.
Other companies in our industry may not calculate these performance
measures in the same manner.
Reconciliation of renewables gross margin
and operating expenses to gross margin per produced gallon sold and
net operating margin per produced gallon sold
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(In thousands, except for per
gallon amounts)
Renewables segment sales and other
revenues
$
286,612
$
417,893
$
1,188,990
$
1,015,499
Renewables segment cost of products
sold
264,693
391,647
1,080,919
974,167
Lower of cost or market inventory
valuation adjustment
53,975
9,573
49,861
52,412
(32,056
)
16,673
58,210
(11,080
)
Add lower of cost or market inventory
valuation adjustment
53,975
9,573
49,861
52,412
Renewables gross margin
$
21,919
$
26,246
$
108,071
$
41,332
Renewables segment operating expenses
$
23,114
$
32,176
$
109,056
$
111,974
Produced gallons sold (in thousand
gallons)
62,614
53,733
215,510
136,204
Renewables gross margin per produced
gallon sold
$
0.35
$
0.49
$
0.50
$
0.30
Less operating expense per produced gallon
sold
0.37
0.60
0.51
0.82
Net operating margin per produced gallon
sold
$
(0.02
)
$
(0.11
)
$
(0.01
)
$
(0.52
)
Reconciliation of marketing operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Marketing gross margin is a non-GAAP performance measure that is
used by our management and others to compare our marketing
performance to that of other companies in our industry. We believe
this margin measure is helpful to investors in evaluating our
marketing performance on a relative and absolute basis. Marketing
gross margin per gallon sold is total Marketing segment revenues
less total Marketing segment cost of products sold divided by sales
volumes of marketing products sold. This margin does not include
the non-cash effects of depreciation and amortization. This
component performance measure can be reconciled directly to our
consolidated statements of operations. Other companies in our
industry may not calculate these performance measures in the same
manner.
Reconciliation of marketing gross margin
to gross margin per gallon sold
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(In thousands, except for per
gallon amounts)
Marketing segment sales and other
revenues
$
908,769
$
1,031,898
$
4,146,292
$
3,911,922
Marketing segment cost of products
sold
888,032
1,008,042
4,050,759
3,845,625
Marketing gross margin
$
20,737
$
23,856
$
95,533
$
66,297
Sales volumes (in thousand gallons)
350,391
335,926
1,441,607
1,118,444
Marketing gross margin per gallon sold
$
0.06
$
0.07
$
0.07
$
0.06
Reconciliation of net income attributable
to HF Sinclair stockholders to adjusted net income attributable to
HF Sinclair stockholders
Adjusted net income attributable to HF Sinclair stockholders is
a non-GAAP financial measure that excludes non-cash lower of cost
or market inventory valuation adjustments, decommissioning costs,
HEP's share of Osage environmental remediation costs, net of
insurance recoveries 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
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Dollars in thousands, except per
share amounts)
Consolidated
GAAP:
Income (loss) before income taxes
$
(72,684
)
$
813,023
$
2,152,507
$
3,936,046
Income tax expense (benefit)
(39,028
)
188,197
441,612
894,872
Net income (loss)
(33,656
)
624,826
1,710,895
3,041,174
Less net income attributable to
noncontrolling interest
28,527
37,799
121,229
118,506
Net income (loss) attributable to HF
Sinclair stockholders
(62,183
)
587,027
1,589,666
2,922,668
Non-GAAP adjustments to arrive at
adjusted results:
Lower of cost or market inventory
valuation adjustment
274,533
9,573
270,419
52,412
Decommissioning costs
—
220
—
1,689
HEP's share of Osage environmental
remediation costs, net of insurance recoveries
554
(2,703
)
1,843
17,594
Acquisition integration and regulatory
costs
25,307
4,752
39,367
52,896
Total adjustments to income (loss) before
income taxes
300,394
11,842
311,629
124,591
Adjustment to income tax expense (benefit)
(1)
72,474
2,487
74,634
22,142
Adjustment to net income attributable to
noncontrolling interest
1,124
(1,428
)
3,733
10,206
Total adjustments, net of tax
226,796
10,783
233,262
92,243
Adjusted results - Non-GAAP:
Adjusted income before income taxes
227,710
824,865
2,464,136
4,060,637
Adjusted income tax expense (2)
33,446
190,684
516,246
917,014
Adjusted net income
194,264
634,181
1,947,890
3,143,623
Less net income attributable to
noncontrolling interest
29,651
36,371
124,962
128,712
Adjusted net income attributable to HF
Sinclair stockholders
$
164,613
$
597,810
$
1,822,928
$
3,014,911
Adjusted earnings per share - diluted
(3)
$
0.87
$
2.97
$
9.51
$
14.73
(1)
Represents adjustment to GAAP
income tax expense to arrive at adjusted income tax expense, which
is computed as follows:
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Dollars in thousands)
Non-GAAP income tax expense (2)
$
33,446
$
190,684
$
516,246
$
917,014
Subtract GAAP income tax expense
(benefit)
(39,028
)
188,197
441,612
894,872
Non-GAAP adjustment to income tax
expense
$
72,474
$
2,487
$
74,634
$
22,142
(2)
Non-GAAP income tax expense is
computed by (a) adjusting HF Sinclair’s consolidated estimated
Annual Effective Tax Rate (“AETR”) for GAAP purposes for the
effects of the above Non-GAAP adjustments, (b) applying the
resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before
income taxes and (c) adjusting for discrete tax items applicable to
the period.
(3)
Adjusted earnings per share -
diluted is calculated as adjusted net income attributable to HF
Sinclair stockholders divided by the average number of shares of
common stock outstanding assuming dilution, which is based on
weighted-average diluted shares outstanding as that used in the
GAAP diluted earnings per share calculation. Income allocated to
participating securities, if applicable, in the adjusted earnings
per share calculation is calculated the same way as that used in
GAAP diluted earnings per share calculation.
Reconciliation of effective tax rate to
adjusted effective tax rate
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Dollars in thousands)
GAAP:
Income (loss) before income taxes
$
(72,684
)
$
813,023
$
2,152,507
$
3,936,046
Income tax expense (benefit)
$
(39,028
)
$
188,197
$
441,612
$
894,872
Effective tax rate for GAAP financial
statements
53.7
%
23.1
%
20.5
%
22.7
%
Adjusted - Non-GAAP:
Effect of Non-GAAP adjustments
(39.0
)%
—
%
0.4
%
(0.1
)%
Effective tax rate for adjusted
results
14.7
%
23.1
%
20.9
%
22.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221326055/en/
Atanas H. Atanasov, Executive Vice President and Chief Financial
Officer Craig Biery, Vice President, Investor Relations HF Sinclair
Corporation 214-954-6510
Grafico Azioni HF Sinclair (NYSE:DINO)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni HF Sinclair (NYSE:DINO)
Storico
Da Gen 2024 a Gen 2025
