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

Reported Net loss attributable to HF Sinclair stockholders of $(75.9) million, or $(0.40) per diluted share, and adjusted net income of $96.5 million, or $0.51 per diluted share, for the third quarter Reported EBITDA of $98.6 million and Adjusted EBITDA of $316.0 million for the third quarter Returned $221.8 million to stockholders through dividends and share repurchases in the third quarter Announced a regular quarterly dividend of $0.50 per share HF Sinclair Corporation DINO ("HF Sinclair" or the "Company") today reported third quarter Net loss attributable to HF Sinclair stockholders of $(75.9) million, or $(0.40) per diluted share, for the quarter ended September 30, 2024, compared to $790.9 million, or $4.23 per diluted share, for the quarter ended September 30, 2023. Excluding the adjustments shown in the accompanying earnings release table, adjusted net income attributable to HF Sinclair stockholders for the third quarter of 2024 was $96.5 million, or $0.51 per diluted share, compared to $760.4 million, or $4.06 per diluted share, for the third quarter of 2023. HF Sinclair's Chief Executive Officer, Tim Go, commented, "We are pleased with our financial and operational performance, supported by strong and consistent earnings in our Marketing, Midstream and Lubricants & Specialties business segments. We returned $222 million in cash to shareholders in the third quarter and today announced a $0.50 quarterly dividend. Looking forward, we remain committed to safe and reliable operations, and we believe the diversification of our businesses positions us to generate through-cycle cash flows and continued returns to our shareholders." Refining segment loss before interest and income taxes was $(212.1) million for the third quarter of 2024 compared to income of $916.1 million for the third quarter of 2023. The segment reported EBITDA of $(88.8) million for the third quarter of 2024 compared to $1,034.2 million for the third quarter of 2023. Excluding the Lower of cost or market inventory valuation adjustments, the segment reported Adjusted EBITDA in the third quarter of 2024 of $110.0 million compared to $1,007.4 million in the third quarter of 2023. This decrease was principally driven by lower adjusted refinery gross margins in both the West and Mid-Continent regions as a result of high global supply of transportation fuels across the industry, which were partially offset by higher refined product sales volumes. Adjusted refinery gross margin was $10.79 per produced barrel sold, a 59% decrease compared to $26.27 for the third quarter of 2023. Crude oil charge averaged 607,010 barrels per day ("BPD") for the third quarter of 2024 compared to 601,930 BPD for the third quarter of 2023. This increase was primarily a result of improved reliability and decreased turnaround activities at our refineries compared to the third quarter of 2023. Renewables segment loss before interest and income taxes was $(23.1) million for the third quarter of 2024, compared to income of $3.1 million for the third quarter of 2023. The segment reported EBITDA of $(1.7) million for the third quarter of 2024 compared to $22.0 million for the third quarter of 2023. Excluding the Lower of cost or market inventory valuation adjustments, the segment reported Adjusted EBITDA of $1.8 million in the third quarter of 2024 compared to $5.0 million in the third quarter of 2023. This decrease was primarily due to lower indicator margins despite increased sales volumes and feedstock optimization in the third quarter of 2024. Total sales volumes were 69 million gallons for the third quarter of 2024 as compared to 55 million gallons for the third quarter of 2023. Marketing segment income before interest and income taxes was $15.6 million for the third quarter of 2024 compared to $15.1 million for the third quarter of 2023. The segment reported EBITDA of $22.1 million for the third quarter of 2024 compared to $21.1 million for the third quarter of 2023. This increase was primarily driven by higher margins in the third quarter of 2024. Total branded fuel sales volumes were 365 million gallons for the third quarter of 2024 as compared to 398 million gallons for the third quarter of 2023. Lubricants & Specialties segment income before interest and income taxes was $54.6 million for the third quarter of 2024, compared to $95.2 million for the third quarter of 2023. The segment reported EBITDA of $76.2 million for the third quarter of 2024 compared to $117.5 million in the third quarter of 2023. This decrease was driven by a $26.7 million FIFO charge from consumption of higher priced feedstock inventory in the third quarter of 2024 compared to a $29.9 million FIFO benefit in the third quarter of 2023, partially offset by increased sales volumes, sales mix optimization and base oil integration in the third quarter of 2024. Midstream segment income before interest and income taxes was $80.5 million for the third quarter of 2024 compared to $78.2 million for the third quarter of 2023. The segment reported EBITDA of $96.5 million for the third quarter of 2024 compared to $96.6 million for the third quarter of 2023. Excluding certain items, the segment reported Adjusted EBITDA of $111.6 million for the third quarter of 2024 compared to $100.9 million for the third quarter of 2023. This increase was primarily driven by higher revenues from increased volumes and higher tariffs in the third quarter of 2024. For the third quarter of 2024, net cash provided by operations totaled $707.6 million. At September 30, 2024, the Company's Cash and cash equivalents totaled $1,229.5 million, a $124.3 million decrease over Cash and cash equivalents of $1,353.7 million at December 31, 2023. During the third quarter of 2024, the Company announced and paid a regular dividend of $0.50 per share to stockholders totaling $95.3 million and spent $126.5 million on share repurchases. Additionally, at September 30, 2024, the Company's consolidated debt was $2,636.8 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 December 4, 2024 to holders of record of common stock on November 21, 2024. The Company has scheduled a webcast conference call for today, October 31, 2024, at 9:30 AM Eastern Time to discuss third quarter financial results. This webcast may be accessed at https://events.q4inc.com/attendee/465594914. An audio archive of this webcast will be available using the above noted link through November 14, 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 lubricants and specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. HF Sinclair provides petroleum product and crude oil transportation, terminalling, storage and throughput services to our refineries and the petroleum industry. HF Sinclair markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states and supplies high-quality fuels to more than 1,500 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 and Hezbollah conflict, the Russia-Ukraine war, and any associated military campaigns which may disrupt crude oil supplies and markets for the Company's refined products and create instability in the financial markets that could restrict the Company's ability to raise capital; general economic conditions, including 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 September 30, Change from 2023 2024 2023 Change Percent (In thousands, except per share data) Sales and other revenues $ 7,207,140 $ 8,905,471 $ (1,698,331 ) (19 )% Operating costs and expenses: Cost of sales: (1) Cost of materials and other (2) 6,158,294 6,935,650 (777,356 ) (11 )% Lower of cost or market inventory valuation adjustments 202,307 (43,848 ) 246,155 (561 )% Operating expenses 629,573 622,532 7,041 1 % 6,990,174 7,514,334 (524,160 ) (7 )% Selling, general and administrative expenses (1) 118,014 124,213 (6,199 ) (5 )% Depreciation and amortization 209,716 195,562 14,154 7 % Asset impairments 9,984 — 9,984 100 % Total operating costs and expenses 7,327,888 7,834,109 (506,221 ) (6 )% Income (loss) from operations (120,748 ) 1,071,362 (1,192,110 ) (111 )% Other income (expense): Earnings of equity method investments 8,151 3,009 5,142 171 % Interest income 18,309 24,577 (6,268 ) (26 )% Interest expense (40,396 ) (48,686 ) 8,290 (17 )% Gain on foreign currency transactions 1,401 860 541 63 % Gain on sale of assets and other 1,936 8,954 (7,018 ) (78 )% (10,599 ) (11,286 ) 687 (6 )% Income (loss) before income taxes (131,347 ) 1,060,076 (1,191,423 ) (112 )% Income tax expense (benefit) (57,266 ) 235,015 (292,281 ) (124 )% Net income (loss) (74,081 ) 825,061 (899,142 ) (109 )% Less net income attributable to noncontrolling interest 1,863 34,139 (32,276 ) (95 )% Net income (loss) attributable to HF Sinclair stockholders $ (75,944 ) $ 790,922 $ (866,866 ) (110 )% Earnings (loss) per share attributable to HF Sinclair stockholders: Basic $ (0.40 ) $ 4.23 $ (4.63 ) (109 )% Diluted $ (0.40 ) $ 4.23 $ (4.63 ) (109 )% Cash dividends declared per common share $ 0.50 $ 0.45 $ 0.05 11 % Average number of common shares outstanding: Basic 189,840 185,456 4,384 2 % Diluted 189,840 185,456 4,384 2 % EBITDA $ 98,593 $ 1,245,608 $ (1,147,015 ) (92 )% Adjusted EBITDA $ 316,004 $ 1,206,491 $ (890,487 ) (74 )% Nine Months Ended September 30, Change from 2023 2024 2023 Change Percent (In thousands, except per share data) Sales and other revenues $ 22,080,116 $ 24,304,259 $ (2,224,143 ) (9 )% Operating costs and expenses: Cost of sales: (1) Cost of materials and other (2) 18,835,319 19,313,312 (477,993 ) (2 )% Lower of cost or market inventory valuation adjustments (20,186 ) (4,114 ) (16,072 ) 391 % Operating expenses 1,828,002 1,808,715 19,287 1 % 20,643,135 21,117,913 (474,778 ) (2 )% Selling, general and administrative expenses (1) 326,246 347,514 (21,268 ) (6 )% Depreciation and amortization 613,765 558,905 54,860 10 % Asset impairments 9,984 — 9,984 100 % Total operating costs and expenses 21,593,130 22,024,332 (431,202 ) (2 )% Income from operations 486,986 2,279,927 (1,792,941 ) (79 )% Other income (expense): Earnings of equity method investments 23,612 10,436 13,176 126 % Interest income 58,983 62,103 (3,120 ) (5 )% Interest expense (126,536 ) (141,490 ) 14,954 (11 )% Gain on foreign currency transactions 1,475 2,478 (1,003 ) (40 )% Gain on sale of assets and other 3,691 11,737 (8,046 ) (69 )% (38,775 ) (54,736 ) 15,961 (29 )% Income before income taxes 448,211 2,225,191 (1,776,980 ) (80 )% Income tax expense 52,190 480,640 (428,450 ) (89 )% Net income 396,021 1,744,551 (1,348,530 ) (77 )% Less net income attributable to noncontrolling interest 5,513 92,702 (87,189 ) (94 )% Net income attributable to HF Sinclair stockholders $ 390,508 $ 1,651,849 $ (1,261,341 ) (76 )% Earnings per share attributable to HF Sinclair stockholders: Basic $ 2.01 $ 8.57 $ (6.56 ) (77 )% Diluted $ 2.01 $ 8.57 $ (6.56 ) (77 )% Cash dividends declared per common share $ 1.50 $ 1.35 $ 0.15 11 % Average number of common shares outstanding: Basic 193,341 191,047 2,294 1 % Diluted 193,341 191,047 2,294 1 % EBITDA $ 1,124,016 $ 2,770,781 $ (1,646,765 ) (59 )% Adjusted EBITDA $ 1,120,837 $ 2,779,407 $ (1,658,570 ) (60 )% (1) Exclusive of Depreciation and amortization. (2) Exclusive of Lower of cost or market inventory valuation adjustments. Balance Sheet Data September 30, 2024 December 31, 2023 (In thousands) Cash and cash equivalents $ 1,229,482 $ 1,353,747 Working capital $ 2,393,303 $ 3,371,905 Total assets $ 16,887,661 $ 17,716,265 Total debt $ 2,636,805 $ 2,739,083 Total equity $ 9,670,410 $ 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, 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 Inc.'s business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States and Europe. Additionally, the Lubricants & Specialties segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil Company LLC, one of the leading suppliers of locomotive engine oil in North America. Also, the Lubricants & Specialties segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. The Midstream segment includes all of the operations of Holly Energy Partners, L.P. ("HEP"), which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, and terminals, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The Midstream segment also includes 50% ownership interests in each of Osage Pipeline Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas, Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming, and Cushing Connect, 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 and other income from the Midstream segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation, terminalling operations and tankage facilities provided for our refining operations. 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 September 30, 2024 Sales and other revenues: Revenues from external customers $ 5,386,710 $ 160,038 $ 950,050 $ 682,589 $ 27,753 $ — $ 7,207,140 Intersegment revenues and other (1) 995,001 105,320 — 3,278 136,115 (1,239,714 ) — 6,381,711 265,358 950,050 685,867 163,868 (1,239,714 ) 7,207,140 Cost of sales: (2) Cost of materials and other (3) 5,731,823 237,321 918,432 509,204 — (1,238,486 ) 6,158,294 Lower of cost or market inventory valuation adjustments 198,759 3,548 — — — — 202,307 Operating expenses 485,231 24,959 — 60,404 58,702 277 629,573 6,415,813 265,828 918,432 569,608 58,702 (1,238,209 ) 6,990,174 Selling, general and administrative expenses (2) 54,632 1,281 9,476 38,832 3,820 9,973 118,014 Depreciation and amortization 123,348 21,409 6,588 21,661 17,824 18,886 209,716 Asset impairments — — — — 9,984 — 9,984 Income (loss) from operations $ (212,082 ) $ (23,160 ) $ 15,554 $ 55,766 $ 73,538 $ (30,364 ) $ (120,748 ) Income (loss) before interest and income taxes $ (212,108 ) $ (23,141 ) $ 15,560 $ 54,584 $ 80,500 $ (24,655 ) $ (109,260 ) Net income attributable to noncontrolling interest $ — $ — $ — $ — $ 1,863 $ — $ 1,863 Earnings of equity method investments $ — $ — $ — $ — $ 7,353 $ 798 $ 8,151 Capital expenditures $ 70,655 $ 1,268 $ 12,874 $ 10,580 $ 15,996 $ 12,231 $ 123,604 Three Months Ended September 30, 2023 Sales and other revenues: Revenues from external customers $ 6,717,926 $ 213,144 $ 1,259,205 $ 686,123 $ 29,073 $ — $ 8,905,471 Intersegment revenues and other (1) 1,333,008 118,033 — 565 123,540 (1,575,146 ) — 8,050,934 331,177 1,259,205 686,688 152,613 (1,575,146 ) 8,905,471 Cost of sales: (2) Cost of materials and other (3) 6,518,402 294,682 1,230,372 466,459 — (1,574,265 ) 6,935,650 Lower of cost or market inventory valuation adjustments (26,842 ) (17,006 ) — — — — (43,848 ) Operating expenses 478,847 30,198 — 64,965 50,489 (1,967 ) 622,532 6,970,407 307,874 1,230,372 531,424 50,489 (1,576,232 ) 7,514,334 Selling, general and administrative expenses (2) 50,345 1,336 7,731 40,051 7,947 16,803 124,213 Depreciation and amortization 118,077 18,904 6,002 22,366 20,274 9,939 195,562 Income (loss) from operations $ 912,105 $ 3,063 $ 15,100 $ 92,847 $ 73,903 $ (25,656 ) $ 1,071,362 Income (loss) before interest and income taxes $ 916,139 $ 3,087 $ 15,134 $ 95,181 $ 78,194 $ (23,550 ) $ 1,084,185 Net income attributable to noncontrolling interest $ — $ — $ — $ — $ 1,886 $ 32,253 $ 34,139 Earnings of equity method investments $ — $ — $ — $ — $ 3,581 $ (572 ) $ 3,009 Capital expenditures $ 44,866 $ 2,812 $ 4,223 $ 10,070 $ 5,672 $ 13,544 $ 81,187 Refining Renewables Marketing Lubricants & Specialties Midstream Corporate, Other and Eliminations Consolidated Total (In thousands) Nine Months Ended September 30, 2024 Sales and other revenues: Revenues from external customers $ 16,729,833 $ 519,935 $ 2,668,219 $ 2,084,183 $ 77,946 $ — $ 22,080,116 Intersegment revenues and other (1) 2,833,932 233,260 — 11,070 399,118 (3,477,380 ) — 19,563,765 753,195 2,668,219 2,095,253 477,064 (3,477,380 ) 22,080,116 Cost of sales: (2) Cost of materials and other (3) 17,497,374 687,650 2,590,573 1,533,440 — (3,473,718 ) 18,835,319 Lower of cost or market inventory valuation adjustments (21,799 ) 1,613 — — — — (20,186 ) Operating expenses 1,406,414 76,125 — 188,849 155,309 1,305 1,828,002 18,881,989 765,388 2,590,573 1,722,289 155,309 (3,472,413 ) 20,643,135 Selling, general and administrative expenses (2) 154,089 4,067 24,577 111,609 10,674 21,230 326,246 Depreciation and amortization 362,933 61,467 19,265 66,888 52,887 50,325 613,765 Asset impairments — — — — 9,984 — 9,984 Income (loss) from operations $ 164,754 $ (77,727 ) $ 33,804 $ 194,467 $ 248,210 $ (76,522 ) $ 486,986 Income (loss) before interest and income taxes $ 164,579 $ (77,665 ) $ 34,078 $ 193,410 $ 270,055 $ (68,693 ) $ 515,764 Net income attributable to noncontrolling interest $ — $ — $ — $ — $ 5,513 $ — $ 5,513 Earnings of equity method investments $ — $ — $ — $ — $ 21,899 $ 1,713 $ 23,612 Capital expenditures $ 161,374 $ 7,188 $ 33,365 $ 23,064 $ 35,246 $ 36,684 $ 296,921 Nine Months Ended September 30, 2023 Sales and other revenues: Revenues from external customers $ 18,284,853 $ 590,620 $ 3,237,523 $ 2,105,941 $ 85,322 $ — $ 24,304,259 Intersegment revenues and other (1) 3,524,078 311,758 — 10,890 339,596 (4,186,322 ) — 21,808,931 902,378 3,237,523 2,116,831 424,918 (4,186,322 ) 24,304,259 Cost of sales: (2) Cost of materials and other (3) 18,002,106 816,226 3,162,727 1,515,900 — (4,183,647 ) 19,313,312 Lower of cost or market inventory valuation adjustments — (4,114 ) — — — — (4,114 ) Operating expenses 1,391,930 85,942 — 192,592 138,021 230 1,808,715 19,394,036 898,054 3,162,727 1,708,492 138,021 (4,183,417 ) 21,117,913 Selling, general and administrative expenses (2) 142,461 3,587 22,821 124,229 18,094 36,322 347,514 Depreciation and amortization 330,702 57,846 17,889 62,113 61,855 28,500 558,905 Income (loss) from operations $ 1,941,732 $ (57,109 ) $ 34,086 $ 221,997 $ 206,948 $ (67,727 ) $ 2,279,927 Income (loss) before interest and income taxes $ 1,946,071 $ (57,040 ) $ 34,218 $ 223,916 $ 218,940 $ (61,527 ) $ 2,304,578 Net income attributable to noncontrolling interest $ — $ — $ — $ — $ 5,177 $ 87,525 $ 92,702 Earnings of equity method investments $ — $ — $ — $ — $ 11,008 $ (572 ) $ 10,436 Capital expenditures $ 157,827 $ 11,193 $ 15,678 $ 24,453 $ 21,936 $ 30,350 $ 261,437 (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. (2) Exclusive of Depreciation and amortization. (3) Exclusive of Lower of cost or market inventory valuation adjustments. Refining Segment Operating Data The following tables set forth information, including non-GAAP (generally accepted accounting principles) performance measures, about our consolidated refinery operations. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced refined products 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Mid-Continent Region Crude charge (BPD) (1) 263,170 250,280 262,670 230,130 Refinery throughput (BPD) (2) 279,210 269,270 278,210 249,170 Sales of produced refined products (BPD) (3) 274,870 257,270 276,830 234,470 Refinery utilization (4) 101.2 % 96.3 % 101.0 % 88.5 % Average per produced barrel sold: (5) Gross margin (6) $ (3.91 ) $ 13.78 $ 1.35 $ 10.80 Adjusted refinery gross margin (7) $ 9.38 $ 21.64 $ 9.40 $ 20.43 Operating expenses (8) 6.56 6.69 6.28 7.34 Adjusted refinery gross margin, less operating expenses $ 2.82 $ 14.95 $ 3.12 $ 13.09 Operating expenses per throughput barrel (9) $ 6.45 $ 6.39 $ 6.25 $ 6.91 Feedstocks: Sweet crude oil 54 % 53 % 53 % 59 % Sour crude oil 24 % 22 % 23 % 18 % Heavy sour crude oil 16 % 18 % 18 % 15 % Other feedstocks and blends 6 % 7 % 6 % 8 % Total 100 % 100 % 100 % 100 % Sales of produced refined products: Gasolines 50 % 52 % 52 % 51 % Diesel fuels 31 % 30 % 31 % 30 % Jet fuels 7 % 6 % 6 % 6 % Fuel oil 1 % 1 % 1 % 1 % Asphalt 5 % 4 % 4 % 4 % Base oils 3 % 3 % 4 % 4 % LPG and other 3 % 4 % 2 % 4 % Total 100 % 100 % 100 % 100 % Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 West Region Crude charge (BPD) (1) 343,840 351,650 352,860 321,700 Refinery throughput (BPD) (2) 370,540 375,830 378,310 351,880 Sales of produced refined products (BPD) (3) 379,530 376,910 373,890 348,740 Refinery utilization (4) 82.3 % 84.1 % 84.4 % 77.0 % Average per produced barrel sold: (5) Gross margin (6) $ (1.67 ) $ 18.35 $ 2.11 $ 14.63 Adjusted refinery gross margin (7) $ 11.82 $ 29.42 $ 13.21 $ 26.25 Operating expenses (8) 9.15 9.24 9.08 9.69 Adjusted refinery gross margin, less operating expenses $ 2.67 $ 20.18 $ 4.13 $ 16.56 Operating expenses per throughput barrel (9) $ 9.37 $ 9.27 $ 8.97 $ 9.60 Feedstocks: Sweet crude oil 34 % 30 % 34 % 31 % Sour crude oil 44 % 45 % 43 % 43 % Heavy sour crude oil 9 % 13 % 10 % 12 % Wax crude oil 6 % 6 % 6 % 6 % Other feedstocks and blends 7 % 6 % 7 % 8 % Total 100 % 100 % 100 % 100 % Sales of produced refined products: Gasolines 53 % 51 % 52 % 53 % Diesel fuels 31 % 32 % 32 % 31 % Jet fuels 6 % 7 % 6 % 6 % Fuel oil 1 % 2 % 2 % 2 % Asphalt 3 % 3 % 2 % 2 % LPG and other 6 % 5 % 6 % 6 % Total 100 % 100 % 100 % 100 % Consolidated Crude charge (BPD) (1) 607,010 601,930 615,530 551,830 Refinery throughput (BPD) (2) 649,750 645,100 656,520 601,050 Sales of produced refined products (BPD) (3) 654,400 634,180 650,720 583,210 Refinery utilization (4) 89.5 % 88.8 % 90.8 % 81.4 % Average per produced barrel sold: (5) Gross margin (6) $ (2.62 ) $ 16.50 $ 1.79 $ 13.09 Adjusted refinery gross margin (7) $ 10.79 $ 26.27 $ 11.59 $ 23.91 Operating expenses (8) 8.06 8.21 7.89 8.74 Adjusted refinery gross margin, less operating expenses $ 2.73 $ 18.06 $ 3.70 $ 15.17 Operating expenses per throughput barrel (9) $ 8.12 $ 8.07 $ 7.82 $ 8.48 Feedstocks: Sweet crude oil 42 % 40 % 42 % 43 % Sour crude oil 36 % 35 % 34 % 33 % Heavy sour crude oil 12 % 15 % 14 % 13 % Wax crude oil 3 % 3 % 4 % 3 % Other feedstocks and blends 7 % 7 % 6 % 8 % Total 100 % 100 % 100 % 100 % Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Consolidated Sales of produced refined products: Gasolines 52 % 52 % 52 % 53 % Diesel fuels 31 % 31 % 32 % 30 % Jet fuels 7 % 7 % 6 % 6 % Fuel oil 1 % 1 % 1 % 1 % Asphalt 4 % 3 % 3 % 3 % Base oils 1 % 1 % 2 % 2 % LPG and other 4 % 5 % 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. 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Renewables Sales volumes (in thousand gallons) 68,755 54,909 193,484 152,896 Average per produced gallon sold: (1) Gross margin (2) $ (0.32 ) $ 0.08 $ (0.38 ) $ (0.35 ) Adjusted renewables gross margin (3) $ 0.41 $ 0.66 $ 0.34 $ 0.56 Operating expenses (4) 0.36 0.55 0.39 0.56 Adjusted renewables gross margin, less operating expenses $ 0.05 $ 0.11 $ (0.05 ) $ — (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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Marketing Number of branded sites at period end (1) 1,586 1,535 1,586 1,535 Sales volumes (in thousand gallons) 365,036 398,399 1,043,183 1,091,216 Average per gallon sold: (2) Gross margin (3) $ 0.07 $ 0.06 $ 0.06 $ 0.05 Adjusted marketing gross margin (4) $ 0.09 $ 0.07 $ 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Lubricants & Specialties Sales of produced refined products (BPD) 32,914 30,400 32,977 30,440 Sales of produced refined products: Finished products 45 % 49 % 47 % 51 % Base oils 27 % 27 % 27 % 27 % Other 28 % 24 % 26 % 22 % Total 100 % 100 % 100 % 100 % Midstream Segment Operating Data The following table sets forth information about our midstream operations: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Midstream Volumes (BPD) Pipelines: Affiliates—refined product pipelines 156,346 152,541 165,566 144,082 Affiliates—intermediate pipelines 145,236 107,019 145,068 108,579 Affiliates—crude pipelines 459,273 426,418 442,317 429,965 760,855 685,978 752,951 682,626 Third parties—refined product pipelines 39,190 33,549 39,170 38,702 Third parties—crude pipelines 240,496 204,970 201,256 196,552 1,040,541 924,497 993,377 917,880 Terminals and loading racks: Affiliates (1) 1,019,229 971,678 1,030,624 902,101 Third parties 40,124 40,440 37,621 44,263 1,059,353 1,012,118 1,068,245 946,364 Total for pipelines and terminals assets (BPD) 2,099,894 1,936,615 2,061,622 1,864,244 (1) Certain affiliate volumetric non-financial information has been recast to conform to current year presentation. Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles Reconciliations of earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA excluding special items ("Adjusted EBITDA") to amounts reported under generally accepted accounting principles ("GAAP") in the financial statements. Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as Net income (loss) attributable to HF Sinclair stockholders plus (i) Interest expense, net of Interest income, (ii) Income tax expense (benefit) and (iii) Depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i) Lower of cost or market inventory valuation adjustments, (ii) Asset impairments, (iii) reclamation costs, (iv) HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs and (v) 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 (loss) or Income (loss) from operations as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures of other companies. These are presented here because they are widely used financial indicators used by investors and analysts to measure 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Net income (loss) attributable to HF Sinclair stockholders $ (75,944 ) $ 790,922 $ 390,508 $ 1,651,849 Add interest expense 40,396 48,686 126,536 141,490 Subtract interest income (18,309 ) (24,577 ) (58,983 ) (62,103 ) Add income tax expense (57,266 ) 235,015 52,190 480,640 Add depreciation and amortization 209,716 195,562 613,765 558,905 EBITDA 98,593 1,245,608 1,124,016 2,770,781 Add lower of cost or market inventory valuation adjustments 202,307 (43,848 ) (20,186 ) (4,114 ) Add asset impairments 9,984 — 9,984 — Add reclamation costs 5,000 — 5,000 — Add HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs — 33 — 608 Add acquisition integration and regulatory costs 120 4,698 2,023 12,132 Adjusted EBITDA $ 316,004 $ 1,206,491 $ 1,120,837 $ 2,779,407 EBITDA and Adjusted EBITDA attributable to our Refining segment is presented below: Three Months Ended September 30, Nine Months Ended September 30, Refining Segment 2024 2023 2024 2023 (In thousands) Income (loss) before interest and income taxes (1) $ (212,108 ) $ 916,139 $ 164,579 $ 1,946,071 Add depreciation and amortization 123,348 118,077 362,933 330,702 EBITDA (88,760 ) 1,034,216 527,512 2,276,773 Add lower of cost or market inventory valuation adjustments 198,759 (26,842 ) (21,799 ) — Adjusted EBITDA $ 109,999 $ 1,007,374 $ 505,713 $ 2,276,773 (1) Income (loss) before interest and income taxes of our Refining segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit). EBITDA and Adjusted EBITDA attributable to our Renewables segment is set forth below: Three Months Ended September 30, Nine Months Ended September 30, Renewables Segment 2024 2023 2024 2023 (In thousands) Income (loss) before interest and income taxes (1) $ (23,141 ) $ 3,087 $ (77,665 ) $ (57,040 ) Add depreciation and amortization 21,409 18,904 61,467 57,846 EBITDA (1,732 ) 21,991 (16,198 ) 806 Add lower of cost or market inventory valuation adjustments 3,548 (17,006 ) 1,613 (4,114 ) Adjusted EBITDA $ 1,816 $ 4,985 $ (14,585 ) $ (3,308 ) (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 expense (benefit). EBITDA attributable to our Marketing segment is set forth below: Three Months Ended September 30, Nine Months Ended September 30, Marketing Segment 2024 2023 2024 2023 (In thousands) Income before interest and income taxes (1) $ 15,560 $ 15,134 $ 34,078 $ 34,218 Add depreciation and amortization 6,588 6,002 19,265 17,889 EBITDA $ 22,148 $ 21,136 $ 53,343 $ 52,107 (1) Income before interest and income taxes of our Marketing segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit). EBITDA attributable to our Lubricants & Specialties segment is set forth below: Three Months Ended September 30, Nine Months Ended September 30, Lubricants & Specialties Segment 2024 2023 2024 2023 (In thousands) Income before interest and income taxes (1) $ 54,584 $ 95,181 $ 193,410 $ 223,916 Add depreciation and amortization 21,661 22,366 66,888 62,113 EBITDA $ 76,245 $ 117,547 $ 260,298 $ 286,029 (1) Income before interest and income taxes of our Lubricants & Specialties segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit). EBITDA and Adjusted EBITDA attributable to our Midstream segment is presented below: Three Months Ended September 30, Nine Months Ended September 30, Midstream Segment 2024 2023 2024 2023 (In thousands) Income before interest and income taxes (1) $ 80,500 $ 78,194 $ 270,055 $ 218,940 Add depreciation and amortization 17,824 20,274 52,887 61,855 Subtract net income attributable to noncontrolling interest (1,863 ) (1,886 ) (5,513 ) (5,177 ) EBITDA 96,461 96,582 317,429 275,618 Add asset impairments 9,984 — 9,984 — Add reclamation costs 5,000 — 5,000 — Add share of Osage environmental remediation costs, net of insurance recoveries — 69 — 1,289 Add acquisition integration and regulatory costs 203 4,285 308 5,757 Adjusted EBITDA $ 111,648 $ 100,936 $ 332,721 $ 282,664 (1) Income before interest and income taxes of our Midstream segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense (benefit). Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements. Adjusted refinery gross margin is a non-GAAP performance measure that is used by our management and others to compare our refining performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our refining performance on a relative and absolute basis, including against publicly available crack spread data. Adjusted refinery gross margin per produced barrel sold is total Refining segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced refined products 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per barrel amounts) Refining segment Sales and other revenues $ 6,381,711 $ 8,050,934 $ 19,563,765 $ 21,808,931 Cost of sales (1) 6,415,813 6,970,407 18,881,989 19,394,036 Depreciation and amortization 123,348 118,077 362,933 330,702 Gross margin (157,450 ) 962,450 318,843 2,084,193 Add lower of cost or market inventory adjustments 198,759 (26,842 ) (21,799 ) — Add operating expenses 485,231 478,847 1,406,414 1,391,930 Add depreciation and amortization 123,348 118,077 362,933 330,702 Adjusted refinery gross margin $ 649,888 $ 1,532,532 $ 2,066,391 $ 3,806,825 Produced barrels sold (BPD) (2) 654,400 634,180 650,720 583,210 Average per produced barrel sold: Gross margin $ (2.62 ) $ 16.50 $ 1.79 $ 13.09 Add lower of cost or market inventory adjustments 3.30 (0.46 ) (0.12 ) — Add operating expenses 8.06 8.21 7.89 8.74 Add depreciation and amortization 2.05 2.02 2.03 2.08 Adjusted refinery gross margin $ 10.79 $ 26.27 $ 11.59 $ 23.91 Less operating expenses 8.06 8.21 7.89 8.74 Adjusted refinery gross margin, less operating expenses $ 2.73 $ 18.06 $ 3.70 $ 15.17 (1) Exclusive of Depreciation and amortization. (2) 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per gallon amounts) Renewables segment Sales and other revenues $ 265,358 $ 331,177 $ 753,195 $ 902,378 Cost of sales (1) 265,828 307,874 765,388 898,054 Depreciation and amortization 21,409 18,904 61,467 57,846 Gross margin (21,879 ) 4,399 (73,660 ) (53,522 ) Add lower of cost or market inventory adjustments 3,548 (17,006 ) 1,613 (4,114 ) Add operating expenses 24,959 30,198 76,125 85,942 Add depreciation and amortization 21,409 18,904 61,467 57,846 Adjusted renewables gross margin $ 28,037 $ 36,495 $ 65,545 $ 86,152 Produced gallons sold 68,755 54,909 193,484 152,896 Average per produced gallon sold: Gross margin $ (0.32 ) $ 0.08 $ (0.38 ) $ (0.35 ) Add lower of cost or market inventory adjustments 0.05 (0.31 ) 0.01 (0.03 ) Add operating expenses 0.36 0.55 0.39 0.56 Add depreciation and amortization 0.32 0.34 0.32 0.38 Adjusted renewables gross margin $ 0.41 $ 0.66 $ 0.34 $ 0.56 Less operating expenses 0.36 0.55 0.39 0.56 Adjusted renewables gross margin, less operating expenses $ 0.05 $ 0.11 $ (0.05 ) $ — (1) Exclusive of Depreciation and amortization. Reconciliation of marketing operating information (non-GAAP performance measures) to amounts reported under generally accepted accounting principles in financial statements. Adjusted marketing gross margin is a non-GAAP performance measure that is used by our management and others to compare our marketing performance to that of other companies in our industry. We believe this margin measure is helpful to investors in evaluating our marketing performance on a relative and absolute basis. Adjusted marketing gross margin per gallon sold is total Marketing segment gross margin plus Depreciation and amortization, divided by sales volumes of marketing products 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per gallon amounts) Marketing segment Sales and other revenues $ 950,050 $ 1,259,205 $ 2,668,219 $ 3,237,523 Cost of sales (1) 918,432 1,230,372 2,590,573 3,162,727 Depreciation and amortization 6,588 6,002 19,265 17,889 Gross margin 25,030 22,831 58,381 56,907 Add depreciation and amortization 6,588 6,002 19,265 17,889 Adjusted marketing gross margin $ 31,618 $ 28,833 $ 77,646 $ 74,796 Sales volumes 365,036 398,399 1,043,183 1,091,216 Average per gallon sold: Gross margin $ 0.07 $ 0.06 $ 0.06 $ 0.05 Add depreciation and amortization 0.02 0.01 0.01 0.02 Adjusted marketing gross margin $ 0.09 $ 0.07 $ 0.07 $ 0.07 (1) Exclusive of Depreciation and amortization. Reconciliation of Net income attributable to HF Sinclair stockholders to adjusted net income attributable to HF Sinclair stockholders Adjusted net income attributable to HF Sinclair stockholders is a non-GAAP financial measure that excludes non-cash Lower of cost or market inventory valuation adjustments, Asset impairments, reclamation costs, 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Consolidated GAAP: Income (loss) before income taxes $ (131,347 ) $ 1,060,076 $ 448,211 $ 2,225,191 Income tax expense (benefit) (57,266 ) 235,015 52,190 480,640 Net income (loss) (74,081 ) 825,061 396,021 1,744,551 Less net income attributable to noncontrolling interest 1,863 34,139 5,513 92,702 Net income (loss) attributable to HF Sinclair stockholders (75,944 ) 790,922 390,508 1,651,849 Non-GAAP adjustments to arrive at adjusted results: Lower of cost or market inventory valuation adjustments 202,307 (43,848 ) (20,186 ) (4,114 ) Asset impairments 9,984 — 9,984 — Reclamation costs 5,000 — 5,000 — HEP's share of Osage environmental remediation costs — 69 — 1,289 Acquisition integration and regulatory costs 120 6,626 2,023 14,060 Total adjustments to income (loss) before income taxes 217,411 (37,153 ) (3,179 ) 11,235 Adjustment to income tax expense (benefit) (1) 44,964 (8,633 ) (752 ) 2,160 Adjustment to net income attributable to noncontrolling interest — 1,964 — 2,609 Total adjustments, net of tax 172,447 (30,484 ) (2,427 ) 6,466 Adjusted results - Non-GAAP: Adjusted income before income taxes 86,064 1,022,923 445,032 2,236,426 Adjusted income tax expense (benefit) (2) (12,302 ) 226,382 51,438 482,800 Adjusted net income 98,366 796,541 393,594 1,753,626 Less net income attributable to noncontrolling interest 1,863 36,103 5,513 95,311 Adjusted net income attributable to HF Sinclair stockholders $ 96,503 $ 760,438 $ 388,081 $ 1,658,315 Adjusted earnings per share - diluted (3) $ 0.51 $ 4.06 $ 2.00 $ 8.60 (1) Represents adjustment to GAAP income tax expense (benefit) to arrive at adjusted income tax expense (benefit), which is computed as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Non-GAAP income tax expense (benefit) (2) $ (12,302 ) $ 226,382 $ 51,438 $ 482,800 Add GAAP income tax expense (benefit) (57,266 ) 235,015 52,190 480,640 Non-GAAP adjustment to income tax expense (benefit) $ 44,964 $ (8,633 ) $ (752 ) $ 2,160 (1) Non-GAAP income tax expense (benefit) is computed by (a) adjusting HF Sinclair's consolidated estimated Annual Effective Tax Rate ("AETR") for GAAP purposes for the effects of the above Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and (c) adjusting for discrete tax items applicable to the period. (2) Adjusted earnings per share - diluted is calculated as adjusted Net income (loss) 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) GAAP: Income (loss) before income taxes $ (131,347 ) $ 1,060,076 $ 448,211 $ 2,225,191 Income tax expense (benefit) $ (57,266 ) $ 235,015 $ 52,190 $ 480,640 Effective tax rate for GAAP financial statements 43.6 % 22.2 % 11.6 % 21.6 % Adjusted - Non-GAAP: Effect of Non-GAAP adjustments (57.9 )% (0.1 )% — % — % Effective tax rate for adjusted results (14.3 )% 22.1 % 11.6 % 21.6 % View source version on businesswire.com: https://www.businesswire.com/news/home/20241031040055/en/

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