- Reported net income attributable to HF Sinclair stockholders of
$314.7 million, or $1.57 per diluted share, and adjusted net income
of $142.3 million, or $0.71 per diluted share, for the first
quarter
- Reported EBITDA of $617.4 million and Adjusted EBITDA of $399.1
million for the first quarter
- Returned $269.0 million to stockholders through dividends and
share repurchases in the first quarter
- Authorized a new $1.0 billion share repurchase program
- Announced a regular quarterly dividend of $0.50 per share
HF Sinclair Corporation (NYSE: DINO) (“HF Sinclair” or the
“Company”) today reported first quarter net income attributable to
HF Sinclair stockholders of $314.7 million, or $1.57 per diluted
share, for the quarter ended March 31, 2024, compared to $353.3
million, or $1.79 per diluted share, for the quarter ended March
31, 2023. Excluding the adjustments shown in the accompanying
earnings release table, adjusted net income attributable to HF
Sinclair stockholders for the first quarter of 2024 was $142.3
million, or $0.71 per diluted share, compared to $394.1 million, or
$2.00 per diluted share, for the first quarter of 2023.
HF Sinclair’s Chief Executive Officer, Tim Go, commented, “We
are pleased to report our first quarter, 2024 results. We continue
to advance our corporate strategy focused on improving reliability,
optimizing and integrating our portfolio and generating strong cash
flows to support our cash return strategy. During the quarter, our
businesses maintained safe and reliable operations, representing
another quarter of successful turnaround and maintenance execution.
We also returned $269 million in cash to shareholders during the
quarter and today announced a new $1.0 billion share repurchase
authorization demonstrating our continued commitment to shareholder
returns. Looking forward, as we head into summer driving season, we
expect a favorable market environment and believe we are well
positioned to generate strong earnings and cash flows.”
Refining segment income before interest and income taxes was
$312.0 million for the first quarter of 2024 compared to $436.9
million for the first quarter of 2023. The segment reported EBITDA
of $429.4 million for the first quarter of 2024 compared to $537.0
million for the first quarter of 2023. Excluding the lower of cost
or market inventory valuation benefit of $220.6 million, the
segment reported Adjusted EBITDA in the first quarter of 2024 was
$208.8 million. This decrease was principally driven by lower
refinery gross margins in both the West and Mid-Continent regions
as a result of seasonal demand weakness for transportation fuels in
our regions, partially offset by higher refined product sales
volumes. Consolidated refinery gross margin was $12.70 per produced
barrel, a 45% decrease compared to $23.20 for the first quarter of
2023. Crude oil charge averaged 604,930 barrels per day (“BPD”) for
the first quarter of 2024 compared to 498,500 BPD for the first
quarter of 2023. This increase was primarily a result of decreased
turnaround activities and improved reliability at our refineries
compared to the first quarter of 2023.
Renewables segment loss before interest and income taxes was
$(40.0) million for the first quarter of 2024, compared to a loss
of $(64.6) million for the first quarter of 2023. The segment
reported EBITDA of $(19.7) million for the first quarter of 2024
compared to $(44.6) million for the first quarter of 2023.
Excluding the lower of cost or market inventory valuation
adjustment, the segment reported Adjusted EBITDA of $(18.6) million
for the first quarter of 2024 compared to $3.0 million for the
first quarter of 2023. This decrease was primarily due to weakened
RINs and Low Carbon Fuel Standard prices in the first quarter of
2024. Total sales volumes were 61 million gallons for the first
quarter of 2024 as compared to 46 million gallons for the first
quarter of 2023.
Marketing segment income before interest and income taxes was
$9.4 million for the first quarter of 2024 compared to $0.5 million
for the first quarter of 2023. The segment reported EBITDA of $15.7
million for the first quarter of 2024 compared to $6.4 million for
the first quarter of 2023. This increase was primarily driven by
stronger branded wholesale margins in the first quarter of 2024.
Total branded fuel sales volumes were 321 million gallons for the
first quarter of 2024 as compared to 328 million gallons for the
first quarter of 2023.
Lubricants & Specialties segment income before interest and
income taxes was $64.5 million for the first quarter of 2024,
compared to an income of $78.2 million in the first quarter of
2023. The segment reported EBITDA of $87.0 million for the first
quarter of 2024 compared to $97.6 million in the first quarter of
2023. This decrease was largely driven by lower base oil prices in
the first quarter of 2024.
Midstream segment income before interest and income taxes was
$93.1 million for the first quarter of 2024 compared to $73.9
million for the first quarter of 2023, and segment reported
Adjusted EBITDA of $111.3 million for the first quarter of 2024
compared to $93.3 million for the first quarter of 2023. This
increase was primarily driven by higher revenues from tariff
increases in the first quarter of 2024.
For the first quarter of 2024, net cash provided by operations
totaled $316.9 million. At March 31, 2024, the Company's cash and
cash equivalents totaled $1,240.9 million, a $112.9 million
decrease over cash and cash equivalents of $1,353.7 million at
December 31, 2023. During the first quarter of 2024, the Company
announced and paid a regular dividend of $0.50 per share to
stockholders totaling $99.4 million and spent $169.6 million on
share repurchases. Additionally, at March 31, 2024, the Company’s
consolidated debt was $2,678.6 million.
HF Sinclair also announced today that its Board of Directors
declared a regular quarterly dividend in the amount of $0.50 per
share, payable on June 5, 2024 to holders of record of common stock
on May 22, 2024.
The Company has scheduled a webcast conference call for today,
May 8, 2024, at 8:30 AM Eastern Time to discuss first quarter
financial results. This webcast may be accessed at
https://events.q4inc.com/attendee/868284986. An audio archive of
this webcast will be available using the above noted link through
May 22, 2024.
HF Sinclair Corporation, headquartered in Dallas, Texas, is an
independent energy company that produces and markets high-value
light products such as gasoline, diesel fuel, jet fuel, renewable
diesel and other specialty products. HF Sinclair owns and operates
refineries located in Kansas, Oklahoma, New Mexico, Wyoming,
Washington and Utah. HF Sinclair provides petroleum product and
crude oil transportation, terminalling, storage and throughput
services to its refineries and the petroleum industry. HF Sinclair
markets its refined products principally in the Southwest U.S., the
Rocky Mountains extending into the Pacific Northwest and in other
neighboring Plains states and supplies high-quality fuels to more
than 1,500 branded stations and licenses the use of the Sinclair
brand at more than 300 additional locations throughout the country.
HF Sinclair produces renewable diesel at two of its facilities in
Wyoming and also at its facility in New Mexico. In addition,
subsidiaries of HF Sinclair produce and market base oils and other
specialized lubricants in the U.S., Canada and the Netherlands, and
export products to more than 80 countries.
The following is a “safe harbor” statement under the Private
Securities Litigation Reform Act of 1995: The statements in this
press release relating to matters that are not historical facts are
“forward-looking statements” based on management’s beliefs and
assumptions using currently available information and expectations
as of the date hereof, are not guarantees of future performance and
involve certain risks and uncertainties, including those contained
in the Company's filings with the Securities and Exchange
Commission (the “SEC”). Forward-looking statements use words such
as “anticipate,” “project,” “will,” “expect,” “plan,” “goal,”
“forecast,” “strategy,” “intend,” “should,” “would,” “could,”
“believe,” “may,” and similar expressions and statements regarding
the Company's plans and objectives for future operations. Although
the Company believes that the expectations reflected in these
forward-looking statements are reasonable, the Company cannot
assure you that the Company's expectations will prove to be
correct. Therefore, actual outcomes and results could materially
differ from what is expressed, implied or forecast in such
statements. Any differences could be caused by a number of factors,
including, but not limited to, the demand for and supply of
feedstocks, crude oil and refined products, including uncertainty
regarding the increasing societal expectations that companies
address climate change and greenhouse gas emissions; risks and
uncertainties with respect to the actions of actual or potential
competitive suppliers and transporters of refined petroleum
products or lubricant and specialty products in the Company’s
markets; the spread between market prices for refined products and
market prices for crude oil; the possibility of constraints on the
transportation of refined products or lubricant and specialty
products; the possibility of inefficiencies, curtailments or
shutdowns in refinery operations or pipelines, whether due to
reductions in demand, accidents, unexpected leaks or spills,
unscheduled shutdowns, infection in the workforce, weather events,
global health events, civil unrest, expropriation of assets, and
other economic, diplomatic, legislative, or political events or
developments, terrorism, cyberattacks, vandalism or other
catastrophes or disruptions affecting the Company’s operations,
production facilities, machinery, pipelines and other logistics
assets, equipment, or information systems, or any of the foregoing
of the Company’s suppliers, customers, or third-party providers,
and any potential asset impairments resulting from, or the failure
to have adequate insurance coverage for or receive insurance
recoveries from, such actions; the effects of current and/or future
governmental and environmental regulations and policies, including
compliance with existing, new and changing environmental and health
and safety laws and regulations, related reporting requirements and
pipeline integrity programs; the availability and cost of financing
to the Company; the effectiveness of the Company’s capital
investments and marketing strategies; the Company’s efficiency in
carrying out and consummating construction projects, including the
Company’s ability to complete announced capital projects on time
and within capital guidance; the Company’s ability to timely obtain
or maintain permits, including those necessary for operations or
capital projects; the ability of the Company to acquire
complementary assets or businesses to the Company's existing assets
and businesses on acceptable terms and to integrate any existing or
future acquired operations and realize the expected synergies of
any such transaction on the expected timeline; the possibility of
vandalism or other disruptive activity, or terrorist or
cyberattacks and the consequences of any such activities or
attacks; uncertainty regarding the effects and duration of global
hostilities, including shipping disruptions in the Red Sea, the
Israel-Gaza conflict, the Russia-Ukraine war, and any associated
military campaigns which may disrupt crude oil supplies and markets
for the Company’s refined products and create instability in the
financial markets that could restrict the Company’s ability to
raise capital; general economic conditions, including economic
slowdowns caused by a local or national recession or other adverse
economic condition, such as periods of increased or prolonged
inflation; limitations on the Company’s ability to make future
dividend payments or effectuate share repurchases due to market
conditions and corporate, tax, regulatory and other considerations;
and other business, financial, operational and legal risks.
Additional information on risks and uncertainties that could affect
our business prospects and performance is provided in the reports
filed by us with the SEC. All forward-looking statements included
in this press release are expressly qualified in their entirety by
the foregoing cautionary statements. The forward-looking statements
speak only as of the date made and, other than as required by law,
we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
RESULTS OF OPERATIONS
Financial Data (all information in this
release is unaudited)
Three Months Ended
March 31,
Change from 2023
2024
2023
Change
Percent
(In thousands, except per share
data)
Sales and other revenues
$
7,027,145
$
7,565,142
$
(537,997
)
(7
)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
5,926,500
6,104,057
(177,557
)
(3
)%
Lower of cost or market inventory
valuation adjustment
(219,370
)
47,597
(266,967
)
(561
)%
5,707,130
6,151,654
(444,524
)
(7
)%
Operating expenses (exclusive of
depreciation and amortization)
607,112
639,383
(32,271
)
(5
)%
Selling, general and administrative
expenses (exclusive of depreciation and amortization)
103,374
95,913
7,461
8
%
Depreciation and amortization
198,729
173,983
24,746
14
%
Total operating costs and
expenses
6,616,345
7,060,933
(444,588
)
(6
)%
Income from operations
410,800
504,209
(93,409
)
(19
)%
Other income (expense):
Earnings (loss) of equity method
investments
7,346
3,882
3,464
89
%
Interest income
22,179
19,935
2,244
11
%
Interest expense
(40,691
)
(45,822
)
5,131
(11
)%
Gain on foreign currency transactions
443
870
(427
)
(49
)%
Gain on sale of assets and other
2,019
1,631
388
24
%
(8,704
)
(19,504
)
10,800
(55
)%
Income before income taxes
402,096
484,705
(82,609
)
(17
)%
Income tax expense
85,474
99,700
(14,226
)
(14
)%
Net income
316,622
385,005
(68,383
)
(18
)%
Less net income attributable to
noncontrolling interest
1,958
31,739
(29,781
)
(94
)%
Net income attributable to HF Sinclair
stockholders
$
314,664
$
353,266
$
(38,602
)
(11
)%
Earnings per share attributable to HF
Sinclair stockholders:
Basic
$
1.57
$
1.79
$
(0.22
)
(12
)%
Diluted
$
1.57
$
1.79
$
(0.22
)
(12
)%
Cash dividends declared per common
share
$
0.50
$
0.45
$
0.05
11
%
Average number of common shares
outstanding:
Basic
198,710
195,445
3,265
2
%
Diluted
198,710
195,445
3,265
2
%
EBITDA
$
617,379
$
652,836
$
(35,457
)
(5
)%
Adjusted EBITDA
$
399,057
$
704,753
$
(305,696
)
(43
)%
Balance Sheet Data
March 31,
December 31,
2024
2023
(In thousands)
Cash and cash equivalents
$
1,240,860
$
1,353,747
Working capital
$
3,404,525
$
3,371,905
Total assets
$
17,915,990
$
17,716,265
Total debt
$
2,678,645
$
2,739,083
Total equity
$
10,276,089
$
10,237,298
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”), the pre-treatment unit at our
Artesia, New Mexico facility, the Artesia RDU, and the Sinclair
RDU.
The Marketing segment represents branded fuel sales to Sinclair
branded sites in the United States and licensing fees for the use
of the Sinclair brand at additional locations throughout the
country. The Marketing segment also includes branded fuel sales to
non-Sinclair branded sites from legacy HollyFrontier Corporation
(“HollyFrontier”) agreements and revenues from other marketing
activities. Our branded sites are located in several states across
the United States with the highest concentration of the sites
located in our West and Mid-Continent regions.
The Lubricants & Specialties segment represents Petro-Canada
Lubricants Inc.’s production operations, located in Mississauga,
Ontario, which includes lubricant products such as base oils, white
oils, specialty products and finished lubricants, and the
operations of our Petro-Canada Lubricants business that includes
the marketing of products to both retail and wholesale outlets
through a global sales network with locations in Canada, the United
States and Europe. Additionally, the Lubricants & Specialties
segment includes specialty lubricant products produced at our Tulsa
refineries that are marketed throughout North America and are
distributed in Central and South America and the operations of Red
Giant Oil Company LLC, one of the leading suppliers of locomotive
engine oil in North America. Also, the Lubricants & Specialties
segment includes Sonneborn, a producer of specialty hydrocarbon
chemicals such as white oils, petrolatums and waxes with
manufacturing facilities in the United States and Europe.
The Midstream segment includes all of the operations of Holly
Energy Partners, L.P. (“HEP”), which owns and operates logistics
and refinery assets consisting of petroleum product and crude oil
pipelines, and terminals, tankage and loading rack facilities in
the Mid-Continent, Southwest and Rocky Mountains geographic regions
of the United States. The Midstream segment also includes 50%
ownership interests in each of Osage Pipeline Company, LLC
(“Osage”), 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, a 25.12% ownership
interest in Saddle Butte Pipeline III, LLC, the owner of a pipeline
running from the Powder River Basin to Casper, Wyoming, and a
49.995% ownership interest in Pioneer Investments Corp., the owner
of a pipeline running from Sinclair, Wyoming to the North Salt Lake
City, Utah Terminal. Revenues from the Midstream segment are earned
through transactions with unaffiliated parties for pipeline
transportation, rental and terminalling operations as well as
revenues relating to pipeline transportation services provided for
our refining operations.
Beginning in the first quarter of 2024, our Refining segment
acquired from our Midstream segment the refinery processing units
at our El Dorado and Woods Cross refineries. Additionally, we
amended an intercompany agreement between certain of our
subsidiaries within the Refining, Lubricants & Specialties and
Midstream segments. As a result, we have revised our Refining,
Lubricants & Specialties and Midstream segment information for
the periods presented.
Refining
Renewables
Marketing
Lubricants &
Specialties
Midstream
Corporate, Other and
Eliminations
Consolidated Total
(In thousands)
Three Months Ended March 31,
2024
Sales and other revenues:
Revenues from external customers
$
5,373,025
$
179,669
$
775,807
$
675,545
$
23,099
$
—
$
7,027,145
Intersegment revenues and other (1)
831,220
59,890
—
2,442
131,916
(1,025,468
)
—
$
6,204,245
$
239,559
$
775,807
$
677,987
$
155,015
$
(1,025,468
)
$
7,027,145
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
5,474,522
$
230,273
$
752,530
$
492,846
$
—
$
(1,023,671
)
$
5,926,500
Lower of cost or market inventory
valuation adjustment
$
(220,558
)
$
1,188
$
—
$
—
$
—
$
—
$
(219,370
)
Operating expenses
$
472,086
$
26,461
$
—
$
64,000
$
45,518
$
(953
)
$
607,112
Selling, general and administrative
expenses
$
48,717
$
1,402
$
7,756
$
34,568
$
3,929
$
7,002
$
103,374
Depreciation and amortization
$
117,370
$
20,272
$
6,303
$
22,511
$
20,120
$
12,153
$
198,729
Income (loss) from operations
$
312,108
$
(40,037
)
$
9,218
$
64,062
$
85,448
$
(19,999
)
$
410,800
Income (loss) before interest and income
taxes
$
312,014
$
(40,012
)
$
9,428
$
64,487
$
93,050
$
(18,359
)
$
420,608
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
1,958
$
—
$
1,958
Earnings (loss) of equity method
investments
$
—
$
—
$
—
$
—
$
7,388
$
(42
)
$
7,346
Capital expenditures
$
55,025
$
2,650
$
7,531
$
5,311
$
8,106
$
10,485
$
89,108
Three Months Ended March 31,
2023
Sales and other revenues:
Revenues from external customers
$
5,665,214
$
202,413
$
937,385
$
733,714
$
26,416
$
—
$
7,565,142
Intersegment revenues and other (1)
1,053,401
95,603
—
5,796
109,516
(1,264,316
)
—
$
6,718,615
$
298,016
$
937,385
$
739,510
$
135,932
$
(1,264,316
)
$
7,565,142
Cost of products sold (exclusive of lower
of cost or market inventory valuation adjustment)
$
5,641,131
$
262,738
$
924,049
$
538,860
$
—
$
(1,262,721
)
$
6,104,057
Lower of cost or market inventory
valuation adjustment
$
—
$
47,597
$
—
$
—
$
—
$
—
$
47,597
Operating expenses
$
501,759
$
31,371
$
—
$
63,593
$
41,679
$
981
$
639,383
Selling, general and administrative
expenses
$
39,078
$
915
$
6,963
$
39,264
$
4,635
$
5,058
$
95,913
Depreciation and amortization
$
100,083
$
19,974
$
5,871
$
19,368
$
19,762
$
8,925
$
173,983
Income (loss) from operations
$
436,564
$
(64,579
)
$
502
$
78,425
$
69,856
$
(16,559
)
$
504,209
Income (loss) before interest and income
taxes
$
436,885
$
(64,556
)
$
502
$
78,225
$
73,912
$
(14,376
)
$
510,592
Net income attributable to noncontrolling
interest
$
—
$
—
$
—
$
—
$
1,752
$
29,987
$
31,739
Loss of equity method investments
$
—
$
—
$
—
$
—
$
3,882
$
—
$
3,882
Capital expenditures
$
67,774
$
4,844
$
5,255
$
8,649
$
7,614
$
5,933
$
100,069
(1)
Includes income earned by certain of our
subsidiaries in the Midstream segment related to intercompany
transportation agreements with certain of our subsidiaries in the
Refining and Lubricants & Specialties segments that represent
leases. These transactions eliminate in consolidation.
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.
Three Months Ended
March 31,
2024
2023
Mid-Continent Region
Crude charge (BPD) (1)
259,030
211,390
Refinery throughput (BPD) (2)
273,890
231,260
Sales of produced refined products (BPD)
(3)
272,460
205,010
Refinery utilization (4)
99.6
%
81.3
%
Average per produced barrel (5)
Refinery gross margin
$
10.47
$
20.06
Refinery operating expenses (6)
6.40
9.28
Net operating margin
$
4.07
$
10.78
Refinery operating expenses per throughput
barrel (7)
$
6.37
$
8.23
Feedstocks:
Sweet crude oil
50
%
65
%
Sour crude oil
25
%
15
%
Heavy sour crude oil
19
%
11
%
Other feedstocks and blends
6
%
9
%
Total
100
%
100
%
Sales of produced refined products:
Gasolines
52
%
49
%
Diesel fuels
32
%
29
%
Jet fuels
6
%
8
%
Fuel oil
1
%
1
%
Asphalt
3
%
4
%
Base oils
4
%
5
%
LPG and other
2
%
4
%
Total
100
%
100
%
Three Months Ended March
31,
2024
2023
West Region
Crude charge (BPD) (1)
345,900
287,110
Refinery throughput (BPD) (2)
369,410
326,870
Sales of produced refined products (BPD)
(3)
359,010
310,950
Refinery utilization (4)
82.8
%
68.7
%
Average per produced barrel (5)
Refinery gross margin
$
14.39
$
25.28
Refinery operating expenses (6)
9.59
11.81
Net operating margin
$
4.80
$
13.47
Refinery operating expenses per throughput
barrel (7)
$
9.32
$
11.23
Feedstocks:
Sweet crude oil
32
%
32
%
Sour crude oil
43
%
40
%
Heavy sour crude oil
12
%
11
%
Black wax crude oil
7
%
5
%
Other feedstocks and blends
6
%
12
%
Total
100
%
100
%
Sales of produced refined products:
Gasolines
53
%
57
%
Diesel fuels
32
%
31
%
Jet fuels
5
%
4
%
Fuel oil
2
%
2
%
Asphalt
2
%
2
%
LPG and other
6
%
4
%
Total
100
%
100
%
Consolidated
Crude charge (BPD) (1)
604,930
498,500
Refinery throughput (BPD) (2)
643,300
558,130
Sales of produced refined products (BPD)
(3)
631,470
515,960
Refinery utilization (4)
89.2
%
73.5
%
Average per produced barrel (5)
Refinery gross margin
$
12.70
$
23.20
Refinery operating expenses (6)
8.22
10.81
Net operating margin
$
4.48
$
12.39
Refinery operating expenses per throughput
barrel (7)
$
8.06
$
9.99
Feedstocks:
Sweet crude oil
39
%
46
%
Sour crude oil
36
%
30
%
Heavy sour crude oil
15
%
10
%
Black wax crude oil
4
%
3
%
Other feedstocks and blends
6
%
11
%
Total
100
%
100
%
Three Months Ended March
31,
2024
2023
Consolidated
Sales of produced refined products:
Gasolines
53
%
54
%
Diesel fuels
32
%
30
%
Jet fuels
6
%
6
%
Fuel oil
1
%
1
%
Asphalt
2
%
3
%
Base oils
2
%
2
%
LPG and other
4
%
4
%
Total
100
%
100
%
(1)
Crude charge represents the barrels per
day of crude oil processed at our refineries.
(2)
Refinery throughput represents the barrels
per day of crude and other refinery feedstocks input to the crude
units and other conversion units at our refineries.
(3)
Represents barrels sold of refined
products produced at our refineries (including Asphalt and
intersegment sales) and does not include volumes of refined
products purchased for resale or volumes of excess crude oil
sold.
(4)
Represents crude charge divided by total
crude capacity (BPSD). Our consolidated crude capacity is 678,000
BPSD.
(5)
Represents average amount per produced
barrel sold, which is a non-GAAP measure. Reconciliations to
amounts reported under GAAP are provided under “Reconciliations to
Amounts Reported Under Generally Accepted Accounting Principles”
below.
(6)
Represents total Refining segment
operating expenses, exclusive of depreciation and amortization,
divided by sales volumes of refined products produced at our
refineries.
(7)
Represents total Refining segment
operating expenses, exclusive of depreciation and amortization,
divided by refinery throughput.
Renewables Segment Operating Data
The following table sets forth information about our renewables
operations and includes our Sinclair RDU. The renewables gross and
net operating margins do not include the non-cash effects of lower
of cost or market inventory valuation adjustments and depreciation
and amortization. Reconciliations to amounts reported under GAAP
are provided under “Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles” below.
Three Months Ended March
31,
2024
2023
Renewables
Sales volumes (in thousand gallons)
61,172
46,012
Average per produced gallon (1)
Renewables gross margin
$
0.15
$
0.77
Renewables operating expense (2)
0.43
0.68
Net operating margin
$
(0.28
)
$
0.09
(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. 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 March
31,
2024
2023
Marketing
Number of branded sites at period end
(1)
1,547
1,511
Sales volumes (in thousand gallons)
321,010
328,407
Gross margin per gallon of sales (2)
$
0.07
$
0.04
(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
and specialties operations:
Three Months Ended March
31,
2024
2023
Lubricants & Specialties
Sales of produced refined products
(BPD)
31,104
31,790
Sales of produced refined products:
Finished products
49
%
50
%
Base oils
27
%
29
%
Other
24
%
21
%
Total
100
%
100
%
Midstream Segment Operating Data
The following table sets forth information about our midstream
operations:
Three Months Ended March
31,
2024
2023
Midstream
Volumes (BPD)
Pipelines:
Affiliates—refined product pipelines
164,628
143,002
Affiliates—intermediate pipelines
138,071
114,326
Affiliates—crude pipelines
441,454
473,712
744,153
731,040
Third parties—refined product
pipelines
36,723
40,431
Third parties—crude pipelines
162,493
175,984
943,369
947,455
Terminals and loading racks:
Affiliates
788,919
686,845
Third parties
33,110
42,462
822,029
729,307
Total for pipelines and terminals
(BPD)
1,765,398
1,676,762
Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles
Reconciliations of earnings before interest, taxes,
depreciation and amortization (“EBITDA”) and EBITDA excluding
special items (“Adjusted EBITDA”) to amounts reported under
generally accepted accounting principles (“GAAP”) in financial
statements.
Earnings before interest, taxes, depreciation and amortization,
referred to as EBITDA, is calculated as net income attributable to
HF Sinclair stockholders plus (i) interest expense, net of interest
income, (ii) income tax provision and (iii) depreciation and
amortization. Adjusted EBITDA is calculated as EBITDA plus or minus
(i) lower of cost or market inventory valuation adjustments, (ii)
decommissioning costs, (iii) HF Sinclair's pro-rata share of HEP's
share of Osage environmental remediation costs and (iv) acquisition
integration and regulatory costs.
EBITDA and Adjusted EBITDA are not calculations provided for
under accounting principles generally accepted in the United
States; however, the amounts included in these calculations are
derived from amounts included in our consolidated financial
statements. EBITDA and Adjusted EBITDA should not be considered as
alternatives to net income or operating income as an indication of
our operating performance or as an alternative to operating cash
flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not
necessarily comparable to similarly titled measures of other
companies. These are presented here because they are widely used
financial indicators used by investors and analysts to measure
performance. EBITDA and Adjusted EBITDA are also used by our
management for internal analysis and as a basis for financial
covenants.
Set forth below is our calculation of EBITDA and Adjusted
EBITDA:
Three Months Ended
March 31,
2024
2023
(In thousands)
Net income attributable to HF Sinclair
stockholders
$
314,664
$
353,266
Add interest expense
40,691
45,822
Subtract interest income
(22,179
)
(19,935
)
Add income tax expense
85,474
99,700
Add depreciation and amortization
198,729
173,983
EBITDA
$
617,379
$
652,836
Add (subtract) lower of cost or market
inventory valuation adjustment
(219,370
)
47,597
Add HF Sinclair's pro-rata share of HEP's
share of Osage environmental remediation costs
—
410
Add acquisition integration and regulatory
costs
1,048
3,910
Adjusted EBITDA
$
399,057
$
704,753
EBITDA attributable to our Refining segment is presented
below:
Three Months Ended
March 31,
Refining Segment
2024
2023
(In thousands)
Income before interest and income taxes
(1)
$
312,014
$
436,885
Add depreciation and amortization
117,370
100,083
EBITDA
429,384
536,968
Add lower of cost or market inventory
valuation adjustment
(220,558
)
—
Adjusted EBITDA
$
208,826
$
536,968
(1)
Income before interest and income taxes of
our Refining segment represents income plus (i) interest expense,
net of interest income and (ii) income tax provision.
EBITDA and Adjusted EBITDA attributable to our Renewables
segment is set forth below:
Three Months Ended
March 31,
Renewables Segment
2024
2023
(In thousands)
Income (loss) before interest and income
taxes (1)
$
(40,012
)
$
(64,556
)
Add depreciation and amortization
20,272
19,974
EBITDA
(19,740
)
(44,582
)
Add lower of cost or market inventory
valuation adjustment
1,188
47,597
Adjusted EBITDA
$
(18,552
)
$
3,015
(1)
Income (loss) before interest and income
taxes of our Renewables segment represents income (loss) plus (i)
interest expense, net of interest income and (ii) income tax
provision.
EBITDA attributable to our Marketing segment is set forth
below:
Three Months Ended
March 31,
Marketing Segment
2024
2023
(In thousands)
Income before interest and income taxes
(1)
$
9,428
$
502
Add: depreciation and amortization
6,303
5,871
EBITDA
$
15,731
$
6,373
(1)
Income before interest and income taxes of
our Marketing segment represents income plus (i) interest expense,
net of interest income and (ii) income tax provision.
EBITDA attributable to our Lubricants & Specialties segment
is set forth below:
Three Months Ended
March 31,
Lubricants & Specialties
Segment
2024
2023
(In thousands)
Income before interest and income taxes
(1)
$
64,487
$
78,225
Add: depreciation and amortization
22,511
19,368
EBITDA
$
86,998
$
97,593
(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
March 31,
Midstream Segment
2024
2023
(In thousands)
Income before interest and income taxes
(1)
$
93,050
$
73,912
Add depreciation and amortization
20,120
19,762
Subtract net income attributable to
noncontrolling interest
(1,958
)
(1,752
)
EBITDA
$
111,212
$
91,922
Add (subtract) share of Osage
environmental remediation costs, net of insurance recoveries
—
870
Add acquisition integration and regulatory
costs
53
518
Adjusted EBITDA
$
111,265
$
93,310
(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 income. Other companies in our industry
may not calculate these performance measures in the same
manner.
Reconciliation of average refining net
operating margin per produced barrel sold to refinery gross margin
to refining sales and other revenues
Three Months Ended
March 31,
2024
2023
(In thousands, except per barrel
amounts)
Consolidated
Refining segment sales and other
revenues
$
6,204,245
$
6,718,615
Refining segment cost of products sold
(exclusive of lower of cost or market inventory adjustment)
5,474,522
5,641,131
Lower of cost or market inventory
adjustment
(220,558
)
—
950,281
1,077,484
Add lower of cost or market inventory
adjustment
(220,558
)
—
Refinery gross margin
$
729,723
$
1,077,484
Refining segment operating expenses
$
472,086
$
501,759
Produced barrels sold (BPD)
631,470
515,960
Refinery gross margin per produced barrel
sold
$
12.70
$
23.20
Less average refinery operating expenses
per produced barrel sold
8.22
10.81
Net operating margin per produced barrel
sold
$
4.48
$
12.39
Reconciliation of renewables operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Renewables gross margin and net operating margin are non-GAAP
performance measures that are used by our management and others to
compare our renewables performance to that of other companies in
our industry. We believe these margin measures are helpful to
investors in evaluating our renewables performance on a relative
and absolute basis. Renewables gross margin per produced gallon
sold is total Renewables segment revenues less total Renewables
segment cost of products sold, exclusive of lower of cost or market
inventory valuation adjustments, divided by sales volumes of
produced renewables products sold. Net operating margin per
produced gallon sold is the difference between renewables gross
margin and renewables operating expenses per produced gallon sold.
These two margins do not include the non-cash effects of lower of
cost or market inventory valuation adjustments and depreciation and
amortization. Each of these component performance measures can be
reconciled directly to our consolidated statements of income. Other
companies in our industry may not calculate these performance
measures in the same manner.
Reconciliation of renewables gross margin
and operating expenses to gross margin per produced gallon sold and
net operating margin per produced gallon sold
Three Months Ended
March 31,
2024
2023
(In thousands, except per gallon
amounts)
Renewables segment sales and other
revenues
$
239,559
$
298,016
Renewables segment cost of products sold
(exclusive of lower of cost or market inventory adjustment)
230,273
262,738
Lower of cost or market inventory
adjustment
1,188
47,597
8,098
(12,319
)
Add (subtract) lower of cost or market
inventory adjustment
1,188
47,597
Renewables gross margin
$
9,286
$
35,278
Renewables segment operating expense
$
26,461
$
31,371
Produced gallons sold (in thousand
gallons)
61,172
46,012
Renewables gross margin per produced
gallon sold
$
0.15
$
0.77
Less average renewables operating expense
per produced gallon sold
0.43
0.68
Net operating margin per produced gallon
sold
$
(0.28
)
$
0.09
Reconciliation of marketing operating information (non-GAAP
performance measures) to amounts reported under generally accepted
accounting principles in financial statements.
Marketing gross margin is a non-GAAP performance measure that is
used by our management and others to compare our marketing
performance to that of other companies in our industry. We believe
this margin measure is helpful to investors in evaluating our
marketing performance on a relative and absolute basis. Marketing
gross margin per gallon sold is total Marketing segment revenues
less total Marketing segment cost of products sold divided by sales
volumes of marketing products sold. This margin does not include
the non-cash effects of depreciation and amortization. This
component performance measure can be reconciled directly to our
consolidated statements of income. Other companies in our industry
may not calculate these performance measures in the same
manner.
Reconciliation of marketing gross margin
to gross margin per gallon sold
Three Months Ended
March 31,
2024
2023
(In thousands, except per gallon
amounts)
Marketing segment sales and other
revenues
$
775,807
$
937,385
Marketing segment cost of products
sold
752,530
924,049
Marketing gross margin
$
23,277
$
13,336
Sales volumes (in thousand gallons)
321,010
328,407
Marketing segment gross margin per gallon
sold
$
0.07
$
0.04
Reconciliation of net income attributable
to HF Sinclair stockholders to adjusted net income attributable to
HF Sinclair stockholders
Adjusted net income attributable to HF Sinclair stockholders is
a non-GAAP financial measure that excludes non-cash lower of cost
or market inventory valuation adjustments, HEP's share of Osage
environmental remediation costs and acquisition integration and
regulatory costs. We believe this measure is helpful to investors
and others in evaluating our financial performance and to compare
our results to that of other companies in our industry. Similarly
titled performance measures of other companies may not be
calculated in the same manner.
Three Months Ended
March 31,
2024
2023
(In thousands, except per share
amounts)
Consolidated
GAAP:
Income before income taxes
$
402,096
$
484,705
Income tax expense
85,474
99,700
Net income
316,622
385,005
Less net income attributable to
noncontrolling interest
1,958
31,739
Net income attributable to HF Sinclair
stockholders
314,664
353,266
Non-GAAP adjustments to arrive at
adjusted results:
Lower of cost or market inventory
valuation adjustment
(219,370
)
47,597
HEP's share of Osage environmental
remediation costs
—
870
Acquisition integration and regulatory
costs
1,048
3,910
Total adjustments to income before income
taxes
(218,322
)
52,377
Adjustment to income tax expense (1)
(45,921
)
11,096
Adjustment to net income attributable to
noncontrolling interest
—
460
Total adjustments, net of tax
(172,401
)
40,821
Adjusted results - Non-GAAP:
Adjusted income before income taxes
183,774
537,082
Adjusted income tax expense (2)
39,553
110,796
Adjusted net income
144,221
426,286
Less net income attributable to
noncontrolling interest
1,958
32,199
Adjusted net income attributable to HF
Sinclair stockholders
$
142,263
$
394,087
Adjusted earnings per share - diluted
(3)
$
0.71
$
2.00
(1)
Represents adjustment to GAAP income tax
expense to arrive at adjusted income tax expense, which is computed
as follows:
Three Months Ended
March 31,
2024
2023
(In thousands)
Non-GAAP income tax expense (2)
$
39,553
$
110,796
Add GAAP income tax expense
85,474
99,700
Non-GAAP adjustment to income tax
expense
$
(45,921
)
$
11,096
(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
March 31,
2024
2023
(In thousands)
GAAP:
Income before income taxes
$
402,096
$
484,705
Income tax expense
$
85,474
$
99,700
Effective tax rate for GAAP financial
statements
21.3
%
20.6
%
Adjusted - Non-GAAP:
Effect of Non-GAAP adjustments
0.2
%
—
%
Effective tax rate for adjusted
results
21.5
%
20.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508372525/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
