EX-99.1 2 hfsex99109-30x2024.htm EX-99.1 Document

新聞發佈會
2024年10月31日
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HF辛克萊公司公佈2024年第三季度業績，並宣佈常規現金股息

•報告 歸屬於HF辛克萊股東的淨虧損 達到(75.9)百萬美元，每股稀釋股份達到(0.40)美元，並調整後的淨利潤爲9650萬美元， 每股0.51美元稀釋後每股收益爲第三季度

•第三季度報告的EBITDA爲9860萬美元，調整後的EBITDA爲31600萬美元

•Returned 22180萬美元 在第三季度通過分紅和股票回購向股東分發

•宣佈每股0.50美元的常規季度股息 每股收益

2024年10月31日，德克薩斯州達拉斯 ‑ HF辛克萊公司（紐交所：DINO）（「HF辛克萊」或「公司」）今天報告了第三季度 歸屬於HF辛克萊股東的淨損失 爲負$（75.9）百萬，每股攤薄爲$(0.40)，截至2024年9月30日的季度，相比之下，2023年9月30日的季度爲$79090萬，每股攤薄爲$4.23。在附帶的收益發布表中排除調整項後，截至2024年第三季度的HF辛克萊股東應占調整後淨利潤爲$9650萬，每股攤薄爲$0.51，相比之下，2023年第三季度爲$76040萬，每股攤薄爲$4.06。

HF Sinclair的首席執行官Tim Go評論道：「我們對我們的財務和運營績效感到滿意，得益於我們在市場營銷、中游-腦機以及潤滑油和特種業務領域強勁而穩定的收益。我們在第三季度向股東返還了22200萬美元現金，並今天宣佈了0.50美元的季度股息。展望未來，我們將繼續致力於安全可靠的運營，我們相信業務多元化將使我們能夠產生整個週期的現金流，並持續向股東提供回報。」 22200萬美元 現金股息500分之一季度派息。展望未來，我們仍致力於安全和可靠的運營，並相信我們業務的多樣化使我們能夠產生貫穿整個週期的現金流和持續回報給股東。

2024年第三季度，精煉業務在利息和所得稅前虧損21.21億美元，而2023年第三季度爲91610萬美元收入。該板塊第三季度EBITDA爲虧損8.88億美元，而2023年第三季度爲103420萬美元。除此以外， 庫存評估調整按成本或市場價較低值 2024年第三季度，該板塊調整後的EBITDA爲11000萬美元，而2023年第三季度爲100740萬美元。主要是由於全球運輸燃料供應過剩導致行業毛利率下降，從而在西部和中部大陸地區的調整後精煉毛利上升量銷售。精煉毛利率爲每銷售桶10.79美元，較2023年第三季度的26.27美元下降59%。原油進口在2024年第三季度平均每天60.701萬桶，「BPD」，而2023年第三季度爲60.193萬桶，「BPD」。這一增長主要是由於相對於2023年第三季度，我們的煉油廠可靠性提高和轉換活動減少所致。

2024年第三季度再生能源部門利息和所得稅前虧損爲2300萬美元，而2023年第三季度爲310萬美元的收入。該部門報告的第三季度2024年EBITDA虧損170萬美元，而2023年第三季度爲2200萬美元。除去 庫存估價調整中的較低成本或市場價值，該部門於2024年第三季度報告的調整後EBITDA爲180萬美元，而2023年第三季度爲500萬美元。主要原因是儘管2024年第三季度銷售量增加，但指標利潤率較低和原料優化。2024年第三季度總銷售量爲6900萬加侖，而2013年第三季度爲5500萬加侖。

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2024年第三季度，在利息和所得稅前的市場細分收入爲1560萬美元，而2013年第三季度爲1510萬美元。該部分在2024年第三季度報告的EBITDA爲2210萬美元，而2013年第三季度爲2110萬美元。這一增長主要是由2024年第三季度的較高毛利率推動的。總品牌燃油銷量爲2024年第三季度的36500萬加侖，而2013年第三季度爲39800萬加侖。

2024年第三季度前利息和所得稅前的潤滑油和特種產品部門收入爲5460萬美元，而2023年第三季度爲9520萬美元。該部門報告2024年第三季度的EBITDA爲7620萬美元，而2023年第三季度爲11750萬美元。這一減少是由2024年第三季度較高價格原材料庫存消耗的2670萬美元FIFO費用引起的，而2023年第三季度爲2990萬美元的FIFO收益部分抵消了第三季度銷售量增加、銷售結構優化和基礎油一體化所帶來的影響。

中游-腦機部門在2024年第三季度的利息前利潤和所得稅前利潤爲8050萬美元，而2023年第三季度爲7820萬美元。該部門報告的EBITDA爲9650萬美元，而2023年第三季度爲9660萬美元。除去特定項目後，該部門報告的調整後EBITDA爲11160萬美元，而2013年第三季度爲1.009億美元。這一增長主要是由於2024年第三季度來自增加量和更高關稅的收入增加。

2024年第三季度，運營活動提供的淨現金總額爲70760萬美元。截至2024年9月30日，公司的 現金及現金等價物 總額爲122950萬美元，比 現金及現金等價物 的135370萬美元減少了12430萬美元。在2024年第三季度，公司宣佈並支付了每股0.50美元的普通股股息，總額爲9530萬美元，並在股票回購上花費了12650萬美元。此外，截至2024年9月30日，公司的綜合債務爲263680萬美元。

HF辛克萊爾今天宣佈，其董事會宣佈每股$0.50的常年季度股息，將於2024年12月4日支付給2024年11月21日持有普通股記錄的股東。

公司已安排了一個網絡直播電話會議，時間爲2024年10月31日上午9:30美國東部時間，討論第三季度財務業績。您可以通過https://events.q4inc.com/attendee/465594914進行訪問。本次網絡直播的音頻存檔將通過上述鏈接提供，直到2024年11月14日。

總部位於德克薩斯州達拉斯的HF辛克萊公司是一家獨立的能源公司，生產和銷售高價值輕質產品，如汽油、柴油、噴氣燃料、可再生柴油、潤滑油和特種產品。HF辛克萊擁有並經營位於堪薩斯、俄克拉荷馬、新墨西哥、懷俄明、華盛頓和猶他的煉油廠。HF辛克萊爲我們的煉油廠和石油股行業提供石油產品和wti原油運輸、終端服務、儲存和通過服務。. HF辛克萊主要在美國西南部、延伸至太平洋西北部的落磯山脈以及其他鄰近平原州銷售其精煉產品，併爲1500多個品牌加油站提供高質量燃料，同時在全國超過300個額外地點授權使用辛克萊品牌。HF辛克萊在懷俄明的兩個設施以及新墨西哥的設施生產可再生柴油。此外，HF辛克萊的子公司在美國、加拿大和荷蘭生產和銷售基礎油和其他專業潤滑油，並向80多個國家出口產品。

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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.

3

RESULTS OF OPERATIONS

Financial Data (all information in this release is unaudited)
Three Months Ended September 30,Change from 2023
20242023ChangePercent
(In thousands, except per share data)
Sales and other revenues$7,207,140 $8,905,471 $(1,698,331)(19)%
Operating costs and expenses:
Cost of sales: (1)
Cost of materials and other (2)
6,158,294 6,935,650 (777,356)(11)%
Lower of cost or market inventory valuation adjustments202,307 (43,848)246,155 (561)%
Operating expenses
629,573 622,532 7,041 1 %
6,990,174 7,514,334 (524,160)(7)%
Selling, general and administrative expenses (1)
118,014 124,213 (6,199)(5)%
Depreciation and amortization209,716 195,562 14,154 7 %
Asset impairments9,984 — 9,984 100 %
Total operating costs and expenses7,327,888 7,834,109 (506,221)(6)%
Income (loss) from operations(120,748)1,071,362 (1,192,110)(111)%
Other income (expense):
Earnings of equity method investments8,151 3,009 5,142 171 %
Interest income18,309 24,577 (6,268)(26)%
Interest expense(40,396)(48,686)8,290 (17)%
Gain on foreign currency transactions1,401 860 541 63 %
Gain on sale of assets and other1,936 8,954 (7,018)(78)%
(10,599)(11,286)687 (6)%
Income (loss) before income taxes(131,347)1,060,076 (1,191,423)(112)%
Income tax expense (benefit)(57,266)235,015 (292,281)(124)%
Net income (loss)(74,081)825,061 (899,142)(109)%
Less net income attributable to noncontrolling interest1,863 34,139 (32,276)(95)%
Net income (loss) attributable to HF Sinclair stockholders$(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:
Basic189,840 185,456 4,384 2 %
Diluted189,840 185,456 4,384 2 %
EBITDA$98,593 $1,245,608 $(1,147,015)(92)%
Adjusted EBITDA$316,004 $1,206,491 $(890,487)(74)%







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Nine Months Ended September 30,Change from 2023
20242023ChangePercent
(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 amortization613,765 558,905 54,860 10 %
Asset impairments9,984 — 9,984 100 %
Total operating costs and expenses21,593,130 22,024,332 (431,202)(2)%
Income from operations486,986 2,279,927 (1,792,941)(79)%
Other income (expense):
Earnings of equity method investments23,612 10,436 13,176 126 %
Interest income58,983 62,103 (3,120)(5)%
Interest expense(126,536)(141,490)14,954 (11)%
Gain on foreign currency transactions1,475 2,478 (1,003)(40)%
Gain on sale of assets and other3,691 11,737 (8,046)(69)%
(38,775)(54,736)15,961 (29)%
Income before income taxes448,211 2,225,191 (1,776,980)(80)%
Income tax expense52,190 480,640 (428,450)(89)%
Net income396,021 1,744,551 (1,348,530)(77)%
Less net income attributable to noncontrolling interest5,513 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:
Basic193,341 191,047 2,294 1 %
Diluted193,341 191,047 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, 2024December 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 


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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.

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Refining RenewablesMarketingLubricants & SpecialtiesMidstreamCorporate, Other and EliminationsConsolidated
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 $— $7,207,140 
Intersegment revenues and other (1)
995,001 105,320 — 3,278 136,115 (1,239,714)— 
6,381,711 265,358 950,050 685,867 163,868 (1,239,714)7,207,140 
Cost of sales: (2)
Cost of materials and other (3)
5,731,823 237,321 918,432 509,204 — (1,238,486)6,158,294 
Lower of cost or market inventory valuation adjustments198,759 3,548 — — — — 202,307 
Operating expenses
485,231 24,959 — 60,404 58,702 277 629,573 
6,415,813 265,828 918,432 569,608 58,702 (1,238,209)6,990,174 
Selling, general and administrative expenses (2)
54,632 1,281 9,476 38,832 3,820 9,973 118,014 
Depreciation and amortization123,348 21,409 6,588 21,661 17,824 18,886 209,716 
Asset impairments— — — — 9,984 — 9,984 
Income (loss) from operations$(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 amortization118,077 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 

7

RefiningRenewablesMarketingLubricants & SpecialtiesMidstreamCorporate, Other and EliminationsConsolidated
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 amortization362,933 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 amortization330,702 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.

8

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,
2024202320242023
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 oil54 %53 %53 %59 %
Sour crude oil24 %22 %23 %18 %
Heavy sour crude oil16 %18 %18 %15 %
Other feedstocks and blends6 %7 %6 %8 %
Total100 %100 %100 %100 %
Sales of produced refined products:
Gasolines50 %52 %52 %51 %
Diesel fuels31 %30 %31 %30 %
Jet fuels7 %6 %6 %6 %
Fuel oil1 %1 %1 %1 %
Asphalt5 %4 %4 %4 %
Base oils3 %3 %4 %4 %
LPG and other3 %4 %2 %4 %
Total100 %100 %100 %100 %

9

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
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 oil34 %30 %34 %31 %
Sour crude oil44 %45 %43 %43 %
Heavy sour crude oil9 %13 %10 %12 %
Wax crude oil
6 %6 %6 %6 %
Other feedstocks and blends7 %6 %7 %8 %
Total100 %100 %100 %100 %
Sales of produced refined products:
Gasolines53 %51 %52 %53 %
Diesel fuels31 %32 %32 %31 %
Jet fuels6 %7 %6 %6 %
Fuel oil1 %2 %2 %2 %
Asphalt3 %3 %2 %2 %
LPG and other6 %5 %6 %6 %
Total100 %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 oil42 %40 %42 %43 %
Sour crude oil36 %35 %34 %33 %
Heavy sour crude oil12 %15 %14 %13 %
Wax crude oil
3 %3 %4 %3 %
Other feedstocks and blends7 %7 %6 %8 %
Total100 %100 %100 %100 %
10

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Consolidated
Sales of produced refined products:
Gasolines52 %52 %52 %53 %
Diesel fuels31 %31 %32 %30 %
Jet fuels7 %7 %6 %6 %
Fuel oil1 %1 %1 %1 %
Asphalt4 %3 %3 %3 %
Base oils1 %1 %2 %2 %
LPG and other4 %5 %4 %5 %
Total100 %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.

11

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,
2024202320242023
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,
2024202320242023
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.

12

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,
2024202320242023
Lubricants & Specialties
Sales of produced refined products (BPD)32,914 30,400 32,977 30,440 
Sales of produced refined products:
Finished products45 %49 %47 %51 %
Base oils27 %27 %27 %27 %
Other28 %24 %26 %22 %
Total100 %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,
2024202320242023
Midstream
Volumes (BPD)
Pipelines:
Affiliates—refined product pipelines156,346 152,541 165,566 144,082 
Affiliates—intermediate pipelines145,236 107,019 145,068 108,579 
Affiliates—crude pipelines459,273 426,418 442,317 429,965 
760,855 685,978 752,951 682,626 
Third parties—refined product pipelines39,190 33,549 39,170 38,702 
Third parties—crude pipelines240,496 204,970 201,256 196,552 
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 parties40,124 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.

13

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,
2024202320242023
(In thousands)
Net income (loss) attributable to HF Sinclair stockholders$(75,944)$790,922 $390,508 $1,651,849 
Add interest expense40,396 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 amortization209,716 195,562 613,765 558,905 
EBITDA98,593 1,245,608 1,124,016 2,770,781 
Add lower of cost or market inventory valuation adjustments202,307 (43,848)(20,186)(4,114)
Add asset impairments9,984 — 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 costs120 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 Segment2024202320242023
(In thousands)
Income (loss) before interest and income taxes (1)
$(212,108)$916,139 $164,579 $1,946,071 
Add depreciation and amortization123,348 118,077 362,933 330,702 
EBITDA(88,760)1,034,216 527,512 2,276,773 
Add lower of cost or market inventory valuation adjustments198,759 (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).


14

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

Three Months Ended September 30,Nine Months Ended September 30,
Renewables Segment2024202320242023
(In thousands)
Income (loss) before interest and income taxes (1)
$(23,141)$3,087 $(77,665)$(57,040)
Add depreciation and amortization21,409 18,904 61,467 57,846 
EBITDA(1,732)21,991 (16,198)806 
Add lower of cost or market inventory valuation adjustments3,548 (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 Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$15,560 $15,134 $34,078 $34,218 
Add depreciation and amortization6,588 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 Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$54,584 $95,181 $193,410 $223,916 
Add depreciation and amortization21,661 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).

15

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

Three Months Ended September 30,Nine Months Ended September 30,
Midstream Segment2024202320242023
(In thousands)
Income before interest and income taxes (1)
$80,500 $78,194 $270,055 $218,940 
   Add depreciation and amortization17,824 20,274 52,887 61,855 
Subtract net income attributable to noncontrolling interest(1,863)(1,886)(5,513)(5,177)
EBITDA96,461 96,582 317,429 275,618 
Add asset impairments9,984 — 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 costs203 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).

16

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,
 2024202320242023
 (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 amortization123,348 118,077 362,933 330,702 
Gross margin(157,450)962,450 318,843 2,084,193 
Add lower of cost or market inventory adjustments198,759 (26,842)(21,799)— 
Add operating expenses485,231 478,847 1,406,414 1,391,930 
Add depreciation and amortization123,348 118,077 362,933 330,702 
Adjusted refinery gross margin$649,888 $1,532,532 $2,066,391 $3,806,825 
Produced barrels sold (BPD) (2)
654,400634,180650,720583,210
Average per produced barrel sold:
Gross margin$(2.62)$16.50 $1.79 $13.09 
Add lower of cost or market inventory adjustments3.30 (0.46)(0.12)— 
Add operating expenses8.06 8.21 7.89 8.74 
Add depreciation and amortization2.05 2.02 2.03 2.08 
Adjusted refinery gross margin$10.79 $26.27 $11.59 $23.91 
Less operating expenses8.06 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.

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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,
2024202320242023
(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 amortization21,409 18,904 61,467 57,846 
Gross margin(21,879)4,399 (73,660)(53,522)
Add lower of cost or market inventory adjustments3,548 (17,006)1,613 (4,114)
Add operating expenses24,959 30,198 76,125 85,942 
Add depreciation and amortization21,409 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 adjustments0.05 (0.31)0.01 (0.03)
Add operating expenses0.36 0.55 0.39 0.56 
Add depreciation and amortization0.32 0.34 0.32 0.38 
Adjusted renewables gross margin$0.41 $0.66 $0.34 $0.56 
Less operating expenses0.36 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.
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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,
2024202320242023
(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 amortization6,588 6,002 19,265 17,889 
Gross margin25,030 22,831 58,381 56,907 
Add depreciation and amortization6,588 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 amortization0.02 0.01 0.01 0.02 
Adjusted marketing gross margin$0.09 $0.07 $0.07 $0.07 
(1)Exclusive of Depreciation and amortization.
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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,
2024202320242023
(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 interest1,863 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 adjustments202,307 (43,848)(20,186)(4,114)
Asset impairments9,984 — 9,984 — 
Reclamation costs
5,000 — 5,000 — 
HEP's share of Osage environmental remediation costs— 69 — 1,289 
Acquisition integration and regulatory costs120 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 tax172,447 (30,484)(2,427)6,466 
Adjusted results - Non-GAAP:
Adjusted income before income taxes86,064 1,022,923 445,032 2,236,426 
Adjusted income tax expense (benefit) (2)
(12,302)226,382 51,438 482,800 
Adjusted net income98,366 796,541 393,594 1,753,626 
Less net income attributable to noncontrolling interest1,863 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,
2024202320242023
(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)$2,160 
(2)Non-GAAP income tax expense (benefit) is computed by (a) adjusting HF Sinclair’s consolidated estimated Annual Effective Tax Rate (“AETR”) for GAAP purposes for the effects of the above Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and (c) adjusting for discrete tax items applicable to the period.
(3)Adjusted earnings per share - diluted is calculated as adjusted Net income (loss) attributable to HF Sinclair stockholders divided by the average number of shares of common stock outstanding assuming dilution, which is based on weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is calculated the same way as that used in GAAP diluted earnings per share calculation.
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Reconciliation of effective tax rate to adjusted effective tax rate
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
GAAP:
Income (loss) before income taxes$(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 statements43.6 %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 %



FOR FURTHER INFORMATION, Contact:

Atanas H. Atanasov, Executive Vice President and Chief Financial Officer
Craig Biery, Vice President, Investor Relations
HF Sinclair Corporation
214-954-6510

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