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

  • Reported net income attributable to HF Sinclair stockholders of $151.8 million, or $0.79 per diluted share, and adjusted net income of $149.3 million, or $0.78 per diluted share, for the second quarter
  • Reported EBITDA of $408.0 million and Adjusted EBITDA of $405.8 million for the second quarter
  • Returned $467.1 million to stockholders through dividends and share repurchases in the second quarter
  • Announced a regular quarterly dividend of $0.50 per share

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

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

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

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

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

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

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

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

HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.50 per share, payable on September 5, 2024 to holders of record of common stock on August 21, 2024.

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

HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high-value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and other specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. HF Sinclair provides petroleum product and crude oil transportation, terminalling, storage and throughput services to its refineries and the petroleum industry. HF Sinclair markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states and supplies high-quality fuels to more than 1,500 branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in New Mexico. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and export products to more than 80 countries.

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 June 30,

 

Change from 2023

 

 

2024

 

 

 

2023

 

 

Change

 

Percent

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Sales and other revenues

$

7,845,831

 

 

$

7,833,646

 

 

$

12,185

 

 

%

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of sales (exclusive of depreciation and amortization):

 

 

 

 

 

 

 

Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)

 

6,750,525

 

 

 

6,273,605

 

 

 

476,920

 

 

8

%

Lower of cost or market inventory valuation adjustment

 

(3,123

)

 

 

(7,863

)

 

 

4,740

 

 

(60

)%

Operating expenses (exclusive of depreciation and amortization)

 

591,317

 

 

 

546,800

 

 

 

44,517

 

 

8

%

 

 

7,338,719

 

 

 

6,812,542

 

 

 

526,177

 

 

8

%

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

104,858

 

 

 

127,388

 

 

 

(22,530

)

 

(18

)%

Depreciation and amortization

 

205,320

 

 

 

189,360

 

 

 

15,960

 

 

8

%

Total operating costs and expenses

 

7,648,897

 

 

 

7,129,290

 

 

 

519,607

 

 

7

%

Income from operations

 

196,934

 

 

 

704,356

 

 

 

(507,422

)

 

(72

)%

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Earnings of equity method investments

 

8,115

 

 

 

3,545

 

 

 

4,570

 

 

129

%

Interest income

 

18,495

 

 

 

17,591

 

 

 

904

 

 

5

%

Interest expense

 

(45,449

)

 

 

(46,982

)

 

 

1,533

 

 

(3

)%

Gain (loss) on foreign currency transactions

 

(369

)

 

 

748

 

 

 

(1,117

)

 

(149

)%

Gain (loss) on sale of assets and other

 

(264

)

 

 

1,152

 

 

 

(1,416

)

 

(123

)%

 

 

(19,472

)

 

 

(23,946

)

 

 

4,474

 

 

(19

)%

Income before income taxes

 

177,462

 

 

 

680,410

 

 

 

(502,948

)

 

(74

)%

Income tax expense

 

23,982

 

 

 

145,925

 

 

 

(121,943

)

 

(84

)%

Net income

 

153,480

 

 

 

534,485

 

 

 

(381,005

)

 

(71

)%

Less net income attributable to noncontrolling interest

 

1,692

 

 

 

26,824

 

 

 

(25,132

)

 

(94

)%

Net income attributable to HF Sinclair stockholders

$

151,788

 

 

$

507,661

 

 

$

(355,873

)

 

(70

)%

Earnings per share attributable to HF Sinclair stockholders:

 

 

 

 

 

 

 

Basic

$

0.79

 

 

$

2.62

 

 

$

(1.83

)

 

(70

)%

Diluted

$

0.79

 

 

$

2.62

 

 

$

(1.83

)

 

(70

)%

Cash dividends declared per common share

$

0.50

 

 

$

0.45

 

 

$

0.05

 

 

11

%

Average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

191,510

 

 

 

192,348

 

 

 

(838

)

 

%

Diluted

 

191,510

 

 

 

192,348

 

 

 

(838

)

 

%

 

 

 

 

 

 

 

 

EBITDA

$

408,044

 

 

$

872,337

 

 

$

(464,293

)

 

(53

)%

Adjusted EBITDA

$

405,776

 

 

$

868,163

 

 

$

(462,387

)

 

(53

)%

 

Six Months Ended June 30, 2024

 

Change from 2023

 

 

2024

 

 

 

2023

 

 

Change

 

Percent

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Sales and other revenues

$

14,872,976

 

 

$

15,398,788

 

 

$

(525,812

)

 

(3

)%

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of sales (exclusive of depreciation and amortization):

 

 

 

 

 

 

 

Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)

 

12,677,025

 

 

 

12,377,662

 

 

 

299,363

 

 

2

%

Lower of cost or market inventory valuation adjustment

 

(222,493

)

 

 

39,734

 

 

 

(262,227

)

 

(660

)%

Operating expenses (exclusive of depreciation and amortization)

 

1,198,429

 

 

 

1,186,183

 

 

 

12,246

 

 

1

%

 

 

13,652,961

 

 

 

13,603,579

 

 

 

49,382

 

 

%

Selling, general and administrative expenses (exclusive of depreciation and amortization)

 

208,232

 

 

 

223,301

 

 

 

(15,069

)

 

(7

)%

Depreciation and amortization

 

404,049

 

 

 

363,343

 

 

 

40,706

 

 

11

%

Total operating costs and expenses

 

14,265,242

 

 

 

14,190,223

 

 

 

75,019

 

 

1

%

Income from operations

 

607,734

 

 

 

1,208,565

 

 

 

(600,831

)

 

(50

)%

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Earnings of equity method investments

 

15,461

 

 

 

7,427

 

 

 

8,034

 

 

108

%

Interest income

 

40,674

 

 

 

37,526

 

 

 

3,148

 

 

8

%

Interest expense

 

(86,140

)

 

 

(92,804

)

 

 

6,664

 

 

(7

)%

Gain on foreign currency transactions

 

74

 

 

 

1,618

 

 

 

(1,544

)

 

(95

)%

Gain on sale of assets and other

 

1,755

 

 

 

2,783

 

 

 

(1,028

)

 

(37

)%

 

 

(28,176

)

 

 

(43,450

)

 

 

15,274

 

 

(35

)%

Income before income taxes

 

579,558

 

 

 

1,165,115

 

 

 

(585,557

)

 

(50

)%

Income tax expense

 

109,456

 

 

 

245,625

 

 

 

(136,169

)

 

(55

)%

Net income

 

470,102

 

 

 

919,490

 

 

 

(449,388

)

 

(49

)%

Less net income attributable to noncontrolling interest

 

3,650

 

 

 

58,563

 

 

 

(54,913

)

 

(94

)%

Net income attributable to HF Sinclair stockholders

$

466,452

 

 

$

860,927

 

 

$

(394,475

)

 

(46

)%

 

 

 

 

 

 

 

 

Earnings per share attributable to HF Sinclair stockholders:

 

 

 

 

 

 

 

Basic

$

2.38

 

 

$

4.40

 

 

$

(2.02

)

 

(46

)%

Diluted

$

2.38

 

 

$

4.40

 

 

$

(2.02

)

 

(46

)%

Cash dividends declared per common share

$

1.00

 

 

$

0.90

 

 

$

0.10

 

 

11

%

Average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

195,110

 

 

 

193,888

 

 

 

1,222

 

 

1

%

Diluted

 

195,110

 

 

 

193,888

 

 

 

1,222

 

 

1

%

 

 

 

 

 

 

 

 

EBITDA

$

1,025,423

 

 

$

1,525,173

 

 

$

(499,750

)

 

(33

)%

Adjusted EBITDA

$

804,833

 

 

$

1,572,916

 

 

$

(768,083

)

 

(49

)%

Balance Sheet Data

 

June 30, 2024

 

December 31, 2023

 

 

 

 

 

(In thousands)

Cash and cash equivalents

$

866,274

 

$

1,353,747

Working capital

$

3,083,583

 

$

3,371,905

Total assets

$

17,381,762

 

$

17,716,265

Total debt

$

2,635,719

 

$

2,739,083

Total equity

$

9,957,114

 

$

10,237,298

Segment Information

Our operations are organized into five reportable segments: Refining, Renewables, Marketing, Lubricants & Specialties and Midstream. Our operations that are not included in one of these five reportable segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.

The Refining segment represents the operations of our El Dorado, Tulsa, Navajo, Woods Cross, Puget Sound, Parco and Casper refineries and HF Sinclair Asphalt Company LLC (“Asphalt”). Refining activities involve the purchase and refining of crude oil and wholesale marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

The Renewables segment represents the operations of our Cheyenne renewable diesel unit (“RDU”), Artesia RDU, the Sinclair RDU and the pre-treatment unit at our Artesia, New Mexico facility.

The Marketing segment represents branded fuel sales to Sinclair branded sites in the United States and licensing fees for the use of the Sinclair brand at additional locations throughout the country. The Marketing segment also includes branded fuel sales to non-Sinclair branded sites from legacy HollyFrontier Corporation (“HollyFrontier”) agreements and revenues from other marketing activities. Our branded sites are located in several states across the United States with the highest concentration of the sites located in our West and Mid-Continent regions.

The Lubricants & Specialties segment represents Petro-Canada Lubricants Inc.’s production operations, located in Mississauga, Ontario, which includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States and Europe. Additionally, the Lubricants & Specialties segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil Company LLC, one of the leading suppliers of locomotive engine oil in North America. Also, the Lubricants & Specialties segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.

The Midstream segment includes all of the operations of Holly Energy Partners, L.P. (“HEP”), which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, and terminals, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The Midstream segment also includes 50% ownership interests in each of Osage Pipeline Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas, Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming, and Cushing Connect, a 25.12% ownership interest in Saddle Butte Pipeline III, LLC, the owner of a pipeline running from the Powder River Basin to Casper, Wyoming, and a 49.995% ownership interest in Pioneer Investments Corp., the owner of a pipeline running from Sinclair, Wyoming to the North Salt Lake City, Utah Terminal. Revenues from the Midstream segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations.

Beginning in the first quarter of 2024, our Refining segment acquired from our Midstream segment the refinery processing units at our El Dorado and Woods Cross refineries. Additionally, we amended an intercompany agreement between certain of our subsidiaries within the Refining, Lubricants & Specialties and Midstream segments. As a result, we have revised our Refining, Lubricants & Specialties and Midstream segment information for the periods presented.

 

 

Refining

 

Renewables

 

Marketing

 

Lubricants

&

Specialties

 

Midstream

 

Corporate,

Other and

Eliminations

 

Consolidated

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Three Months Ended June 30, 2024

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

5,970,098

 

$

180,228

 

 

$

942,362

 

$

726,049

 

$

27,094

 

$

 

 

$

7,845,831

 

Intersegment revenues and other (1)

 

 

1,007,711

 

 

68,050

 

 

 

 

 

5,350

 

 

131,087

 

 

(1,212,198

)

 

 

 

 

 

$

6,977,809

 

$

248,278

 

 

$

942,362

 

$

731,399

 

$

158,181

 

$

(1,212,198

)

 

$

7,845,831

 

Cost of sales (exclusive of depreciation and amortization):

Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)

 

 

6,291,029

 

 

220,056

 

 

 

919,611

 

 

531,390

 

 

 

 

(1,211,561

)

 

 

6,750,525

 

Lower of cost or market inventory valuation adjustment

 

 

 

 

(3,123

)

 

 

 

 

 

 

 

 

 

 

 

(3,123

)

Operating expenses

 

 

449,097

 

 

24,705

 

 

 

 

 

64,445

 

 

51,089

 

 

1,981

 

 

 

591,317

 

 

 

 

6,740,126

 

 

241,638

 

 

 

919,611

 

 

595,835

 

 

51,089

 

 

(1,209,580

)

 

 

7,338,719

 

Selling, general and administrative expenses

 

 

50,740

 

 

1,384

 

 

 

7,345

 

 

38,209

 

 

2,925

 

 

4,255

 

 

 

104,858

 

Depreciation and amortization

 

 

122,215

 

 

19,786

 

 

 

6,374

 

 

22,716

 

 

14,943

 

 

19,286

 

 

 

205,320

 

Income (loss) from operations

 

$

64,728

 

$

(14,530

)

 

$

9,032

 

$

74,639

 

$

89,224

 

$

(26,159

)

 

$

196,934

 

Income (loss) before interest and income taxes

 

$

64,673

 

$

(14,512

)

 

$

9,090

 

$

74,339

 

$

96,505

 

$

(25,679

)

 

$

204,416

 

Net income attributable to noncontrolling interest

 

$

 

$

 

 

$

 

$

 

$

1,692

 

$

 

 

$

1,692

 

Earnings of equity method investments

 

$

 

$

 

 

$

 

$

 

$

7,158

 

$

957

 

 

$

8,115

 

Capital expenditures

 

$

35,694

 

$

3,271

 

 

$

12,960

 

$

7,173

 

$

11,144

 

$

13,967

 

 

$

84,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2023

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

5,901,713

 

$

175,063

 

 

$

1,040,933

 

$

686,104

 

$

29,833

 

$

 

 

$

7,833,646

 

Intersegment revenues and other (1)

 

 

1,137,669

 

 

98,122

 

 

 

 

 

4,529

 

 

106,540

 

 

(1,346,860

)

 

 

 

 

$

7,039,382

 

$

273,185

 

 

$

1,040,933

 

$

690,633

 

$

136,373

 

$

(1,346,860

)

 

$

7,833,646

 

Cost of sales (exclusive of depreciation and amortization):

Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)

 

 

5,842,573

 

 

258,806

 

 

 

1,008,306

 

 

510,581

 

 

 

 

(1,346,661

)

 

 

6,273,605

 

Lower of cost or market inventory valuation adjustment

 

 

26,842

 

 

(34,705

)

 

 

 

 

 

 

 

 

 

 

 

(7,863

)

Operating expenses

 

 

411,324

 

 

24,373

 

 

 

 

 

64,034

 

 

45,853

 

 

1,216

 

 

 

546,800

 

 

 

 

6,280,739

 

 

248,474

 

 

 

1,008,306

 

 

574,615

 

 

45,853

 

 

(1,345,445

)

 

 

6,812,542

 

Selling, general and administrative expenses

 

 

53,038

 

 

1,336

 

 

 

8,127

 

 

44,914

 

 

5,512

 

 

14,461

 

 

 

127,388

 

Depreciation and amortization

 

 

112,542

 

 

18,968

 

 

 

6,016

 

 

20,379

 

 

21,819

 

 

9,636

 

 

 

189,360

 

Income (loss) from operations

 

$

593,063

 

$

4,407

 

 

$

18,484

 

$

50,725

 

$

63,189

 

$

(25,512

)

 

$

704,356

 

Income (loss) before interest and income taxes

 

$

593,047

 

$

4,429

 

 

$

18,582

 

$

50,510

 

$

66,834

 

$

(23,601

)

 

$

709,801

 

Net income attributable to noncontrolling interest

 

$

 

$

 

 

$

 

$

 

$

1,539

 

$

25,285

 

 

$

26,824

 

Earnings of equity method investments

 

$

 

$

 

 

$

 

$

 

$

3,545

 

$

 

 

$

3,545

 

Capital expenditures

 

$

45,187

 

$

3,537

 

 

$

6,200

 

$

5,734

 

$

8,650

 

$

10,873

 

 

$

80,181

 

 

 

Refining

 

Renewables

 

Marketing

 

Lubricants

&

Specialties

 

Midstream

 

Corporate,

Other and

Eliminations

 

Consolidated

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

11,343,123

 

 

$

359,897

 

 

$

1,718,169

 

$

1,401,594

 

$

50,193

 

$

 

 

$

14,872,976

 

Intersegment revenues and other (1)

 

 

1,838,931

 

 

 

127,940

 

 

 

 

 

7,792

 

 

263,003

 

 

(2,237,666

)

 

 

 

 

 

$

13,182,054

 

 

$

487,837

 

 

$

1,718,169

 

$

1,409,386

 

$

313,196

 

$

(2,237,666

)

 

$

14,872,976

 

Cost of sales (exclusive of depreciation and amortization):

Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)

 

 

11,765,551

 

 

 

450,329

 

 

 

1,672,141

 

 

1,024,236

 

 

 

 

(2,235,232

)

 

 

12,677,025

 

Lower of cost or market inventory valuation adjustment

 

 

(220,558

)

 

 

(1,935

)

 

 

 

 

 

 

 

 

 

 

 

(222,493

)

Operating expenses

 

 

921,183

 

 

 

51,166

 

 

 

 

 

128,445

 

 

96,607

 

 

1,028

 

 

 

1,198,429

 

 

 

 

12,466,176

 

 

 

499,560

 

 

 

1,672,141

 

 

1,152,681

 

 

96,607

 

 

(2,234,204

)

 

 

13,652,961

 

Selling, general and administrative expenses

 

 

99,457

 

 

 

2,786

 

 

 

15,101

 

 

72,777

 

 

6,854

 

 

11,257

 

 

 

208,232

 

Depreciation and amortization

 

 

239,585

 

 

 

40,058

 

 

 

12,677

 

 

45,227

 

 

35,063

 

 

31,439

 

 

 

404,049

 

Income (loss) from operations

 

$

376,836

 

 

$

(54,567

)

 

$

18,250

 

$

138,701

 

$

174,672

 

$

(46,158

)

 

$

607,734

 

Income (loss) before interest and income taxes

 

$

376,687

 

 

$

(54,524

)

 

$

18,518

 

$

138,826

 

$

189,555

 

$

(44,038

)

 

$

625,024

 

Net income attributable to noncontrolling interest

 

$

 

 

$

 

 

$

 

$

 

$

3,650

 

$

 

 

$

3,650

 

Earnings of equity method investments

 

$

 

 

$

 

 

$

 

$

 

$

14,546

 

$

915

 

 

$

15,461

 

Capital expenditures

 

$

90,718

 

 

$

5,921

 

 

$

20,491

 

$

12,484

 

$

19,249

 

$

24,454

 

 

$

173,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

11,566,927

 

 

$

377,476

 

 

$

1,978,318

 

$

1,419,818

 

$

56,249

 

$

 

 

$

15,398,788

 

Intersegment revenues and other (1)

 

 

2,191,070

 

 

 

193,725

 

 

 

 

 

10,325

 

 

216,056

 

 

(2,611,176

)

 

 

 

 

 

$

13,757,997

 

 

$

571,201

 

 

$

1,978,318

 

$

1,430,143

 

$

272,305

 

$

(2,611,176

)

 

$

15,398,788

 

Cost of sales (exclusive of depreciation and amortization):

Cost of materials and other (exclusive of lower of cost or market inventory valuation adjustment)

 

 

11,483,704

 

 

 

521,544

 

 

 

1,932,355

 

 

1,049,441

 

 

 

 

(2,609,382

)

 

 

12,377,662

 

Lower of cost or market inventory valuation adjustment

 

 

26,842

 

 

 

12,892

 

 

 

 

 

 

 

 

 

 

 

 

39,734

 

Operating expenses

 

 

913,083

 

 

 

55,744

 

 

 

 

 

127,627

 

 

87,532

 

 

2,197

 

 

 

1,186,183

 

 

 

 

12,423,629

 

 

 

590,180

 

 

 

1,932,355

 

 

1,177,068

 

 

87,532

 

 

(2,607,185

)

 

 

13,603,579

 

Selling, general and administrative expenses

 

 

92,116

 

 

 

2,251

 

 

 

15,090

 

 

84,178

 

 

10,147

 

 

19,519

 

 

 

223,301

 

Depreciation and amortization

 

 

212,625

 

 

 

38,942

 

 

 

11,887

 

 

39,747

 

 

41,581

 

 

18,561

 

 

 

363,343

 

Income (loss) from operations

 

$

1,029,627

 

 

$

(60,172

)

 

$

18,986

 

$

129,150

 

$

133,045

 

$

(42,071

)

 

$

1,208,565

 

Income (loss) before interest and income taxes

 

$

1,029,932

 

 

$

(60,127

)

 

$

19,084

 

$

128,735

 

$

140,746

 

$

(37,977

)

 

$

1,220,393

 

Net income attributable to noncontrolling interest

 

$

 

 

$

 

 

$

 

$

 

$

3,291

 

$

55,272

 

 

$

58,563

 

Earnings of equity method investments

 

$

 

 

$

 

 

$

 

$

 

$

7,427

 

$

 

 

$

7,427

 

Capital expenditures

 

$

112,961

 

 

$

8,381

 

 

$

11,455

 

$

14,383

 

$

16,264

 

$

16,806

 

 

$

180,250

 

(1)

Includes income earned by certain of our subsidiaries in the Midstream segment related to intercompany transportation agreements with certain of our subsidiaries in the Refining and Lubricants & Specialties segments that represent leases. These transactions eliminate in consolidation.

Refining Segment Operating Data

The following tables set forth information, including non-GAAP (generally accepted accounting principles) performance measures, about our consolidated refinery operations. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus lower of cost or market inventory valuation adjustments, depreciation and amortization and operating expenses, divided by sales volumes of produced refined products sold. This margin measure does not include the non-cash effects of lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region is comprised of the El Dorado and Tulsa refineries. The West region is comprised of the Puget Sound, Navajo, Woods Cross, Parco and Casper refineries.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Mid-Continent Region

 

 

 

 

 

 

Crude charge (BPD) (1)

 

 

265,810

 

 

 

228,300

 

 

 

262,420

 

 

 

219,890

 

Refinery throughput (BPD) (2)

 

 

281,540

 

 

 

246,570

 

 

 

277,710

 

 

 

238,960

 

Sales of produced refined products (BPD) (3)

 

 

283,190

 

 

 

240,550

 

 

 

277,830

 

 

 

222,880

 

Refinery utilization (4)

 

 

102.2

%

 

 

87.8

%

 

 

100.9

%

 

 

84.6

%

 

 

 

 

 

 

 

 

 

Average per produced barrel sold: (5)

 

 

 

 

 

 

 

 

Gross margin (6)

 

$

0.66

 

 

$

9.68

 

 

$

3.98

 

 

$

9.05

 

 

 

 

 

 

 

 

 

 

Adjusted refinery gross margin (7)

 

$

8.39

 

 

$

19.42

 

 

$

9.41

 

 

$

19.71

 

Operating expenses (8)

 

 

5.90

 

 

 

6.40

 

 

 

6.15

 

 

 

7.72

 

Adjusted refinery gross margin, less operating expenses

 

$

2.49

 

 

$

13.02

 

 

$

3.26

 

 

$

11.99

 

 

 

 

 

 

 

 

 

 

Operating expenses per throughput barrel (9)

 

$

5.93

 

 

$

6.24

 

 

$

6.15

 

 

$

7.20

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

 

56

%

 

 

59

%

 

 

53

%

 

 

62

%

Sour crude oil

 

 

20

%

 

 

17

%

 

 

23

%

 

 

16

%

Heavy sour crude oil

 

 

19

%

 

 

16

%

 

 

19

%

 

 

14

%

Other feedstocks and blends

 

 

5

%

 

 

8

%

 

 

5

%

 

 

8

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

 

54

%

 

 

49

%

 

 

53

%

 

 

49

%

Diesel fuels

 

 

30

%

 

 

31

%

 

 

31

%

 

 

30

%

Jet fuels

 

 

5

%

 

 

6

%

 

 

5

%

 

 

7

%

Fuel oil

 

 

1

%

 

 

1

%

 

 

1

%

 

 

1

%

Asphalt

 

 

4

%

 

 

5

%

 

 

4

%

 

 

4

%

Base oils

 

 

4

%

 

 

4

%

 

 

4

%

 

 

5

%

LPG and other

 

 

2

%

 

 

4

%

 

 

2

%

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

West Region

 

 

 

 

 

 

 

 

Crude charge (BPD) (1)

 

 

368,920

 

 

 

325,640

 

 

 

357,410

 

 

 

306,480

 

Refinery throughput (BPD) (2)

 

 

395,070

 

 

 

352,400

 

 

 

382,240

 

 

 

339,710

 

Sales of produced refined products (BPD) (3)

 

 

383,060

 

 

 

357,630

 

 

 

371,030

 

 

 

334,420

 

Refinery utilization (4)

 

 

88.3

%

 

 

77.9

%

 

 

85.5

%

 

 

73.3

%

 

 

 

 

 

 

 

 

 

Average per produced barrel sold: (5)

 

 

 

 

 

 

 

 

Gross margin (6)

 

$

2.83

 

 

$

13.34

 

 

$

4.07

 

 

$

12.50

 

 

 

 

 

 

 

 

 

 

Adjusted refinery gross margin (7)

 

$

13.50

 

 

$

23.71

 

 

$

13.93

 

 

$

24.44

 

Operating expenses (8)

 

 

8.52

 

 

 

8.33

 

 

 

9.04

 

 

 

9.94

 

Adjusted refinery gross margin, less operating expenses

 

$

4.98

 

 

$

15.38

 

 

$

4.89

 

 

$

14.50

 

 

 

 

 

 

 

 

 

 

Operating expenses per throughput barrel (9)

 

$

8.26

 

 

$

8.46

 

 

$

8.77

 

 

$

9.79

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

 

37

%

 

 

30

%

 

 

35

%

 

 

31

%

Sour crude oil

 

 

41

%

 

 

44

%

 

 

42

%

 

 

42

%

Heavy sour crude oil

 

 

10

%

 

 

13

%

 

 

11

%

 

 

11

%

Black wax crude oil

 

 

6

%

 

 

6

%

 

 

6

%

 

 

6

%

Other feedstocks and blends

 

 

6

%

 

 

7

%

 

 

6

%

 

 

10

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

 

51

%

 

 

54

%

 

 

52

%

 

 

55

%

Diesel fuels

 

 

32

%

 

 

28

%

 

 

32

%

 

 

30

%

Jet fuels

 

 

6

%

 

 

6

%

 

 

6

%

 

 

5

%

Fuel oil

 

 

2

%

 

 

1

%

 

 

2

%

 

 

2

%

Asphalt

 

 

3

%

 

 

3

%

 

 

2

%

 

 

2

%

LPG and other

 

 

6

%

 

 

8

%

 

 

6

%

 

 

6

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

Consolidated

 

 

 

 

 

 

 

 

Crude charge (BPD) (1)

 

 

634,730

 

 

 

553,940

 

 

 

619,830

 

 

 

526,370

 

Refinery throughput (BPD) (2)

 

 

676,610

 

 

 

598,970

 

 

 

659,950

 

 

 

578,670

 

Sales of produced refined products (BPD) (3)

 

 

666,250

 

 

 

598,180

 

 

 

648,860

 

 

 

557,300

 

Refinery utilization (4)

 

 

93.6

%

 

 

81.7

%

 

 

91.4

%

 

 

77.6

%

 

 

 

 

 

 

 

 

 

Average per produced barrel sold: (5)

 

 

 

 

 

 

 

 

Gross margin (6)

 

$

1.90

 

 

$

11.87

 

 

$

4.03

 

 

$

11.12

 

 

 

 

 

 

 

 

 

 

Adjusted refinery gross margin (7)

 

$

11.33

 

 

$

21.99

 

 

$

11.99

 

 

$

22.55

 

Operating expenses (8)

 

 

7.41

 

 

 

7.56

 

 

 

7.80

 

 

 

9.05

 

Adjusted refinery gross margin, less operating expenses

 

$

3.92

 

 

$

14.43

 

 

$

4.19

 

 

$

13.50

 

 

 

 

 

 

 

 

 

 

Operating expenses per throughput barrel (9)

 

$

7.29

 

 

$

7.55

 

 

$

7.67

 

 

$

8.72

 

 

 

 

 

 

 

 

 

 

Feedstocks:

 

 

 

 

 

 

 

 

Sweet crude oil

 

 

46

%

 

 

42

%

 

 

42

%

 

 

44

%

Sour crude oil

 

 

32

%

 

 

33

%

 

 

34

%

 

 

32

%

Heavy sour crude oil

 

 

13

%

 

 

14

%

 

 

14

%

 

 

12

%

Black wax crude oil

 

 

3

%

 

 

3

%

 

 

4

%

 

 

3

%

Other feedstocks and blends

 

 

6

%

 

 

8

%

 

 

6

%

 

 

9

%

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Gasolines

 

52

%

 

52

%

 

52

%

 

53

%

Diesel fuels

 

32

%

 

29

%

 

32

%

 

30

%

Jet fuels

 

6

%

 

6

%

 

6

%

 

6

%

Fuel oil

 

1

%

 

1

%

 

1

%

 

1

%

Asphalt

 

3

%

 

4

%

 

3

%

 

3

%

Base oils

 

2

%

 

2

%

 

2

%

 

2

%

LPG and other

 

4

%

 

6

%

 

4

%

 

5

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

(1)

Crude charge represents the barrels per day of crude oil processed at our refineries.

(2)

Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries.

(3)

Represents barrels sold of refined products produced at our refineries (including Asphalt and intersegment sales) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold.

(4)

Represents crude charge divided by total crude capacity (BPSD). Our consolidated crude capacity is 678,000 BPSD.

(5)

Represents the average amount per produced barrel sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(6)

Gross margin represents total Refining segment sales and other revenues less cost of materials and other, lower of cost or market inventory valuation adjustments, operating expenses and depreciation and amortization, divided by sales volumes of refined products produced at our refineries.

(7)

Adjusted refinery gross margin is a non-GAAP measure and represents total Refining segment gross margin plus lower of cost or market inventory valuation adjustments, depreciation and amortization and operating expenses, divided by sales volumes of refined products produced at our refineries. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(8)

Represents total Refining segment operating expenses, exclusive of depreciation and amortization, divided by sales volumes of refined products produced at our refineries.

(9)

Represents total Refining segment operating expenses, exclusive of depreciation and amortization, divided by refinery throughput.

Renewables Segment Operating Data

The following table sets forth information, including non-GAAP performance measures, about our renewables operations and includes our Sinclair RDU. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus lower of cost or market inventory valuation adjustments, depreciation and amortization and operating expenses, divided by sales volumes of produced renewables products sold. This margin measure does not include the non-cash effects of lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

 

 

 

 

 

 

Sales volumes (in thousand gallons)

 

 

63,557

 

 

 

50,159

 

 

 

124,729

 

 

 

97,987

 

Average per produced gallon sold: (1)

 

 

 

 

 

 

 

 

Gross margin (2)

 

$

(0.21

)

 

$

0.11

 

 

$

(0.42

)

 

$

(0.59

)

 

 

 

 

 

 

 

 

 

Adjusted renewables gross margin (3)

 

$

0.44

 

 

$

0.29

 

 

$

0.30

 

 

$

0.51

 

Operating expenses (4)

 

 

0.39

 

 

 

0.49

 

 

 

0.41

 

 

 

0.57

 

Adjusted renewables gross margin, less operating expenses

 

$

0.05

 

 

$

(0.20

)

 

$

(0.11

)

 

$

(0.06

)

(1)

Represents the average amount per produced gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(2)

Gross margin represents total Renewables segment sales and other revenues less cost of materials and other, lower of cost or market inventory valuation adjustments, operating expenses and depreciation and amortization, divided by sales volumes of renewable diesel produced at our renewable diesel units.

(3)

Adjusted renewables gross margin is a non-GAAP measure and represents total Renewables segment gross margin plus lower of cost or market inventory valuation adjustments, depreciation and amortization and operating expenses, divided by sales volumes of renewable diesel produced at our renewable diesel units. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(4)

Represents total Renewables segment operating expenses, exclusive of depreciation and amortization, divided by sales volumes of renewable diesel produced at our renewable diesel units.

Marketing Segment Operating Data

The following table sets forth information, including non-GAAP performance measures, about our marketing operations and includes our Sinclair branded fuel business. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus depreciation and amortization, divided by sales volumes of marketing products sold. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Marketing

 

 

 

 

 

 

 

 

Number of branded sites at period end (1)

 

 

1,564

 

 

1,520

 

 

1,564

 

 

1,520

Sales volumes (in thousand gallons)

 

 

357,137

 

 

364,409

 

 

678,147

 

 

692,816

Average per gallon sold: (2)

 

 

 

 

 

 

 

 

Gross margin (3)

 

$

0.05

 

$

0.07

 

$

0.05

 

$

0.05

Adjusted marketing gross margin (4)

 

$

0.06

 

$

0.09

 

$

0.07

 

$

0.07

(1)

Includes non-Sinclair branded sites from legacy HollyFrontier agreements.

(2)

Represents average amount per gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

(3)

Gross margin represents total Marketing segment sales and other revenues less cost of materials and other and depreciation and amortization, divided by sales volumes of marketing products sold.

(4)

Adjusted marketing gross margin is a non-GAAP measure and represents total Marketing segment gross margin plus depreciation and amortization, divided by sales volumes of marketing products sold. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below.

Lubricants & Specialties Segment Operating Data

The following table sets forth information about our lubricants and specialties operations:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Lubricants & Specialties

 

 

 

 

 

 

 

 

Sales of produced refined products (BPD)

 

34,915

 

 

29,140

 

 

33,009

 

 

30,460

 

 

 

 

 

 

 

 

 

 

Sales of produced refined products:

 

 

 

 

 

 

 

 

Finished products

 

48

%

 

53

%

 

48

%

 

52

%

Base oils

 

26

%

 

26

%

 

26

%

 

27

%

Other

 

26

%

 

21

%

 

26

%

 

21

%

Total

 

100

%

 

100

%

 

100

%

 

100

%

Midstream Segment Operating Data

The following table sets forth information about our midstream operations:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Midstream

 

 

 

 

 

 

 

 

Volumes (BPD)

 

 

 

 

 

 

 

 

Pipelines:

 

 

 

 

 

 

 

 

Affiliates—refined product pipelines

 

175,824

 

136,598

 

170,226

 

139,782

Affiliates—intermediate pipelines

 

151,894

 

104,472

 

144,982

 

109,372

Affiliates—crude pipelines

 

426,036

 

390,285

 

433,745

 

431,768

 

 

753,754

 

631,355

 

748,953

 

680,922

Third parties—refined product pipelines

 

41,596

 

42,202

 

39,159

 

41,321

Third parties—crude pipelines

 

200,348

 

208,384

 

181,420

 

192,273

 

 

995,698

 

881,941

 

969,532

 

914,516

Terminals and loading racks:

 

 

 

 

 

 

 

 

Affiliates

 

862,459

 

683,089

 

825,689

 

684,956

Third parties

 

39,602

 

49,909

 

36,356

 

46,206

 

 

902,061

 

732,998

 

862,045

 

731,162

Total for pipelines and terminals assets (BPD)

 

1,897,759

 

1,614,939

 

1,831,577

 

1,645,678

Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles

Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA excluding special items (“Adjusted EBITDA”) to amounts reported under generally accepted accounting principles (“GAAP”) in the financial statements.

Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as net income attributable to HF Sinclair stockholders plus (i) interest expense, net of interest income, (ii) income tax provision and (iii) depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i) lower of cost or market inventory valuation adjustments, (ii) decommissioning costs, (iii) HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs and (iv) acquisition integration and regulatory costs.

EBITDA and Adjusted EBITDA are not calculations provided for under accounting principles generally accepted in the United States; however, the amounts included in these calculations are derived from amounts included in our consolidated financial statements. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures of other companies. These are presented here because they are widely used financial indicators used by investors and analysts to measure performance. EBITDA and Adjusted EBITDA are also used by our management for internal analysis and as a basis for financial covenants.

Set forth below is our calculation of EBITDA and Adjusted EBITDA:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Net income attributable to HF Sinclair stockholders

 

$

151,788

 

 

$

507,661

 

 

$

466,452

 

 

$

860,927

 

Add interest expense

 

 

45,449

 

 

 

46,982

 

 

 

86,140

 

 

 

92,804

 

Subtract interest income

 

 

(18,495

)

 

 

(17,591

)

 

 

(40,674

)

 

 

(37,526

)

Add income tax expense

 

 

23,982

 

 

 

145,925

 

 

 

109,456

 

 

 

245,625

 

Add depreciation and amortization

 

 

205,320

 

 

 

189,360

 

 

 

404,049

 

 

 

363,343

 

EBITDA

 

$

408,044

 

 

$

872,337

 

 

 

1,025,423

 

 

 

1,525,173

 

Add (subtract) lower of cost or market inventory valuation adjustment

 

 

(3,123

)

 

 

(7,863

)

 

 

(222,493

)

 

 

39,734

 

Add HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs

 

 

 

 

 

165

 

 

 

 

 

 

575

 

Add acquisition integration and regulatory costs

 

 

855

 

 

 

3,524

 

 

 

1,903

 

 

 

7,434

 

Adjusted EBITDA

 

$

405,776

 

 

$

868,163

 

 

$

804,833

 

 

$

1,572,916

 

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Refining Segment

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

64,673

 

$

593,047

 

$

376,687

 

 

$

1,029,932

Add depreciation and amortization

 

 

122,215

 

 

112,542

 

 

239,585

 

 

 

212,625

EBITDA

 

 

186,888

 

 

705,589

 

 

616,272

 

 

 

1,242,557

Add (subtract) lower of cost or market inventory valuation adjustment

 

 

 

 

26,842

 

 

(220,558

)

 

 

26,842

Adjusted EBITDA

 

$

186,888

 

$

732,431

 

$

395,714

 

 

$

1,269,399

(1)

Income before interest and income taxes of our Refining segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Renewables Segment

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income (loss) before interest and income taxes (1)

 

$

(14,512

)

 

$

4,429

 

 

$

(54,524

)

 

$

(60,127

)

Add depreciation and amortization

 

 

19,786

 

 

 

18,968

 

 

 

40,058

 

 

 

38,942

 

EBITDA

 

 

5,274

 

 

 

23,397

 

 

 

(14,466

)

 

 

(21,185

)

Add (subtract) lower of cost or market inventory valuation adjustment

 

 

(3,123

)

 

 

(34,705

)

 

 

(1,935

)

 

 

12,892

 

Adjusted EBITDA

 

$

2,151

 

 

$

(11,308

)

 

$

(16,401

)

 

$

(8,293

)

(1)

Income (loss) before interest and income taxes of our Renewables segment represents income (loss) plus (i) interest expense, net of interest income and (ii) income tax provision.

EBITDA attributable to our Marketing segment is set forth below:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Marketing Segment

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

9,090

 

$

18,582

 

 

18,518

 

 

19,084

Add depreciation and amortization

 

 

6,374

 

 

6,016

 

 

12,677

 

 

11,887

EBITDA

 

$

15,464

 

$

24,598

 

$

31,195

 

$

30,971

(1)

Income before interest and income taxes of our Marketing segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Lubricants & Specialties Segment

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

74,339

 

$

50,510

 

 

138,826

 

 

128,735

Add depreciation and amortization

 

 

22,716

 

 

20,379

 

 

45,227

 

 

39,747

EBITDA

 

$

97,055

 

$

70,889

 

$

184,053

 

$

168,482

(1)

Income before interest and income taxes of our Lubricants & Specialties segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Midstream Segment

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Income before interest and income taxes (1)

 

$

96,505

 

 

$

66,834

 

 

$

189,555

 

 

$

140,746

 

Add depreciation and amortization

 

 

14,943

 

 

 

21,819

 

 

 

35,063

 

 

 

41,581

 

Subtract net income attributable to noncontrolling interest

 

 

(1,692

)

 

 

(1,539

)

 

 

(3,650

)

 

 

(3,291

)

EBITDA

 

$

109,756

 

 

$

87,114

 

 

$

220,968

 

 

$

179,036

 

Add (subtract) share of Osage environmental remediation costs, net of insurance recoveries

 

 

 

 

 

350

 

 

 

 

 

 

1,220

 

Add acquisition integration and regulatory costs

 

 

52

 

 

 

954

 

 

 

105

 

 

 

1,472

 

Adjusted EBITDA

 

$

109,808

 

 

$

88,418

 

 

$

221,073

 

 

$

181,728

 

(1)

Income before interest and income taxes of our Midstream segment represents income plus (i) interest expense, net of interest income and (ii) income tax provision.

Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Adjusted refinery gross margin is a non-GAAP performance measure that is used by our management and others to compare our refining performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our refining performance on a relative and absolute basis, including against publicly available crack spread data. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus lower of cost or market inventory valuation adjustments, depreciation and amortization and operating expenses, divided by sales volumes of produced refined products sold. This margin measure does not include the non-cash effects of lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Adjusted refinery gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Refining segment gross margin. The GAAP measure most directly comparable to adjusted refinery gross margin is Refining segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of Refining segment gross margin to adjusted refinery gross margin to adjusted refinery gross margin per produced barrel sold and adjusted refinery gross margin, less operating expenses per produced barrel sold

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per barrel amounts)

Refining segment

 

 

 

 

 

 

 

 

Sales and other revenues

 

$

6,977,809

 

$

7,039,382

 

$

13,182,054

 

 

$

13,757,997

Cost of sales (exclusive of depreciation and amortization)

 

 

6,740,126

 

 

6,280,739

 

 

12,466,176

 

 

 

12,423,629

Depreciation and amortization

 

 

122,215

 

 

112,542

 

 

239,585

 

 

 

212,625

Gross margin

 

 

115,468

 

 

646,101

 

 

476,293

 

 

 

1,121,743

Add (subtract) lower of cost or market inventory adjustment

 

 

 

 

26,842

 

 

(220,558

)

 

 

26,842

Add operating expenses

 

 

449,097

 

 

411,324

 

 

921,183

 

 

 

913,083

Add depreciation and amortization

 

 

122,215

 

 

112,542

 

 

239,585

 

 

 

212,625

Adjusted refinery gross margin

 

$

686,780

 

$

1,196,809

 

$

1,416,503

 

 

$

2,274,293

 

 

 

 

 

 

 

 

 

Produced barrels sold (BPD) (1)

 

 

666,250

 

 

598,180

 

 

648,860

 

 

 

557,300

 

 

 

 

 

 

 

 

 

Average per produced barrel sold:

 

 

 

 

 

 

 

 

Gross margin

 

$

1.90

 

$

11.87

 

$

4.03

 

 

$

11.12

Add (subtract) lower of cost or market inventory adjustment

 

 

 

 

0.49

 

 

(1.87

)

 

 

0.27

Add operating expenses

 

 

7.41

 

 

7.56

 

 

7.80

 

 

 

9.05

Add depreciation and amortization

 

 

2.02

 

 

2.07

 

 

2.03

 

 

 

2.11

Adjusted refinery gross margin

 

$

11.33

 

$

21.99

 

$

11.99

 

 

$

22.55

Less operating expenses

 

 

7.41

 

 

7.56

 

 

7.80

 

 

 

9.05

Adjusted refinery gross margin, less operating expenses

 

$

3.92

 

$

14.43

 

$

4.19

 

 

$

13.50

(1)

Represents the number of produced barrels sold per calendar day in the period.

Reconciliation of renewables operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Adjusted renewables gross margin is a non-GAAP performance measure that is used by our management and others to compare our renewables performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our renewables performance on a relative and absolute basis. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus lower of cost or market inventory valuation adjustments, depreciation and amortization and operating expenses, divided by sales volumes of produced renewables products sold. This margin measure does not include the non-cash effects of lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Adjusted renewables gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Renewables segment gross margin. The GAAP measure most directly comparable to adjusted renewables gross margin is Renewables segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of Renewables segment gross margin to adjusted renewables gross margin to adjusted renewables gross margin per produced gallon sold and adjusted renewables gross margin, less operating expenses per produced gallon sold

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per gallon amounts)

Renewables segment

 

 

 

 

 

 

 

 

Sales and other revenues

 

$

248,278

 

 

$

273,185

 

 

$

487,837

 

 

$

571,201

 

Cost of sales (exclusive of depreciation and amortization)

 

 

241,638

 

 

 

248,474

 

 

 

499,560

 

 

 

590,180

 

Depreciation and amortization

 

 

19,786

 

 

 

18,968

 

 

 

40,058

 

 

 

38,942

 

Gross margin

 

 

(13,146

)

 

 

5,743

 

 

 

(51,781

)

 

 

(57,921

)

Add (subtract) lower of cost or market inventory adjustment

 

 

(3,123

)

 

 

(34,705

)

 

 

(1,935

)

 

 

12,892

 

Add operating expenses

 

 

24,705

 

 

 

24,373

 

 

 

51,166

 

 

 

55,744

 

Add depreciation and amortization

 

 

19,786

 

 

 

18,968

 

 

 

40,058

 

 

 

38,942

 

Adjusted renewables gross margin

 

$

28,222

 

 

$

14,379

 

 

$

37,508

 

 

$

49,657

 

 

 

 

 

 

 

 

 

 

Produced gallons sold (in thousand gallons)

 

 

63,557

 

 

 

50,159

 

 

 

124,729

 

 

 

97,987

 

 

 

 

 

 

 

 

 

 

Average per produced gallon sold:

 

 

 

 

 

 

 

 

Gross margin

 

$

(0.21

)

 

$

0.11

 

 

$

(0.42

)

 

$

(0.59

)

Add (subtract) lower of cost or market inventory adjustment

 

 

(0.05

)

 

 

(0.69

)

 

 

(0.02

)

 

 

0.13

 

Add operating expenses

 

 

0.39

 

 

 

0.49

 

 

 

0.41

 

 

 

0.57

 

Add depreciation and amortization

 

 

0.31

 

 

 

0.38

 

 

 

0.33

 

 

 

0.40

 

Adjusted renewables gross margin

 

$

0.44

 

 

$

0.29

 

 

$

0.30

 

 

$

0.51

 

Less operating expenses

 

 

0.39

 

 

 

0.49

 

 

 

0.41

 

 

 

0.57

 

Adjusted renewables gross margin, less operating expenses

 

$

0.05

 

 

$

(0.20

)

 

$

(0.11

)

 

$

(0.06

)

Reconciliation of marketing operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements.

Adjusted marketing gross margin is a non-GAAP performance measure that is used by our management and others to compare our marketing performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our marketing performance on a relative and absolute basis. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus depreciation and amortization, divided by sales volumes of marketing products sold. Adjusted marketing gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Marketing segment gross margin. The GAAP measure most directly comparable to adjusted marketing gross margin is Marketing segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly.

Reconciliation of Marketing segment gross margin to adjusted marketing gross margin to adjusted marketing gross margin per gallon sold

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per gallon amounts)

Marketing segment

 

 

 

 

 

 

 

 

Sales and other revenues

 

$

942,362

 

$

1,040,933

 

$

1,718,169

 

$

1,978,318

Cost of sales (exclusive of depreciation and amortization)

 

 

919,611

 

 

1,008,306

 

 

1,672,141

 

 

1,932,355

Depreciation and amortization

 

 

6,374

 

 

6,016

 

 

12,677

 

 

11,887

Gross margin

 

 

16,377

 

 

26,611

 

 

33,351

 

 

34,076

Add depreciation and amortization

 

 

6,374

 

 

6,016

 

 

12,677

 

 

11,887

Adjusted marketing gross margin

 

$

22,751

 

$

32,627

 

$

46,028

 

$

45,963

 

 

 

 

 

 

 

 

 

Sales volumes (in thousand gallons)

 

 

357,137

 

 

364,409

 

 

678,147

 

 

692,816

 

 

 

 

 

 

 

 

 

Average per gallon sold:

 

 

 

 

 

 

 

 

Gross margin

 

$

0.05

 

$

0.07

 

$

0.05

 

$

0.05

Add depreciation and amortization

 

 

0.01

 

 

0.02

 

 

0.02

 

 

0.02

Adjusted marketing gross margin

 

$

0.06

 

$

0.09

 

$

0.07

 

$

0.07

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

Adjusted net income attributable to HF Sinclair stockholders is a non-GAAP financial measure that excludes non-cash lower of cost or market inventory valuation adjustments, HEP's share of Osage environmental remediation costs and acquisition integration and regulatory costs. We believe this measure is helpful to investors and others in evaluating our financial performance and to compare our results to that of other companies in our industry. Similarly titled performance measures of other companies may not be calculated in the same manner.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share amounts)

Consolidated

 

 

 

 

 

 

 

 

GAAP:

 

 

 

 

 

 

 

 

Income before income taxes

 

$

177,462

 

 

$

680,410

 

 

$

579,558

 

 

$

1,165,115

Income tax expense

 

 

23,982

 

 

 

145,925

 

 

 

109,456

 

 

 

245,625

Net income

 

 

153,480

 

 

 

534,485

 

 

 

470,102

 

 

 

919,490

Less net income attributable to noncontrolling interest

 

 

1,692

 

 

 

26,824

 

 

 

3,650

 

 

 

58,563

Net income attributable to HF Sinclair stockholders

 

 

151,788

 

 

 

507,661

 

 

 

466,452

 

 

 

860,927

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments to arrive at adjusted results:

 

 

 

 

 

 

 

 

Lower of cost or market inventory valuation adjustment

 

 

(3,123

)

 

 

(7,863

)

 

 

(222,493

)

 

 

39,734

HEP's share of Osage environmental remediation costs

 

 

 

 

 

350

 

 

 

 

 

 

1,220

Acquisition integration and regulatory costs

 

 

855

 

 

 

3,524

 

 

 

1,903

 

 

 

7,434

Total adjustments to income before income taxes

 

 

(2,268

)

 

 

(3,989

)

 

 

(220,590

)

 

 

48,388

Adjustment to income tax expense (1)

 

 

206

 

 

 

(302

)

 

 

(45,715

)

 

 

10,794

Adjustment to net income attributable to noncontrolling interest

 

 

 

 

 

185

 

 

 

 

 

 

645

Total adjustments, net of tax

 

 

(2,474

)

 

 

(3,872

)

 

 

(174,875

)

 

 

36,949

 

 

 

 

 

 

 

 

 

Adjusted results - Non-GAAP:

 

 

 

 

 

 

 

 

Adjusted income before income taxes

 

 

175,194

 

 

 

676,421

 

 

 

358,968

 

 

 

1,213,503

Adjusted income tax expense (2)

 

 

24,188

 

 

 

145,623

 

 

 

63,741

 

 

 

256,419

Adjusted net income

 

 

151,006

 

 

 

530,798

 

 

 

295,227

 

 

 

957,084

Less net income attributable to noncontrolling interest

 

 

1,692

 

 

 

27,009

 

 

 

3,650

 

 

 

59,208

Adjusted net income attributable to HF Sinclair stockholders

 

$

149,314

 

 

$

503,789

 

 

$

291,577

 

 

$

897,876

Adjusted earnings per share - diluted (3)

 

$

0.78

 

 

$

2.60

 

 

$

1.49

 

 

$

4.59

(1)

Represents adjustment to GAAP income tax expense to arrive at adjusted income tax expense, which is computed as follows:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Non-GAAP income tax expense (2)

 

$

24,188

 

$

145,623

 

 

$

63,741

 

 

$

256,419

Add GAAP income tax expense

 

 

23,982

 

 

145,925

 

 

 

109,456

 

 

 

245,625

Non-GAAP adjustment to income tax expense

 

$

206

 

$

(302

)

 

$

(45,715

)

 

$

10,794

(2)

Non-GAAP income tax expense is computed by (a) adjusting HF Sinclair’s consolidated estimated Annual Effective Tax Rate (“AETR”) for GAAP purposes for the effects of the above Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and (c) adjusting for discrete tax items applicable to the period.

 

(3)

Adjusted earnings per share - diluted is calculated as adjusted net income attributable to HF Sinclair stockholders divided by the average number of shares of common stock outstanding assuming dilution, which is based on weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is calculated the same way as that used in GAAP diluted earnings per share calculation.

Reconciliation of effective tax rate to adjusted effective tax rate

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP:

 

 

 

 

 

 

 

 

Income before income taxes

 

$

177,462

 

 

$

680,410

 

 

$

579,558

 

 

$

1,165,115

 

Income tax expense

 

$

23,982

 

 

$

145,925

 

 

$

109,456

 

 

$

245,625

 

Effective tax rate for GAAP financial statements

 

 

13.5

%

 

 

21.4

%

 

 

18.9

%

 

 

21.1

%

Adjusted - Non-GAAP:

 

 

 

 

 

 

 

 

Effect of Non-GAAP adjustments

 

 

0.3

%

 

 

0.1

%

 

 

(1.1

)%

 

 

%

Effective tax rate for adjusted results

 

 

13.8

%

 

 

21.5

%

 

 

17.8

%

 

 

21.1

%

 

Contacts

Atanas H. Atanasov, Executive Vice President and Chief Financial Officer

Craig Biery, Vice President, Investor Relations

HF Sinclair Corporation

214-954-6510

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