Earnings release
Page 1
Press Release July 31, 2025 HF Sinclair Reports 2025 Second Quarter Results and Announces Regular Cash Dividend • Reported Net income attributable to HF Sinclair stockholders of $208 million, or $1.10 per diluted share, and adjusted net income attributable to HF Sinclair stockholders of $322 million, or $1.70 per diluted share • Reported EBITDA of $516 million and Adjusted EBITDA of $665 million • Returned $145 million to stockholders through dividends and share repurchases in the second quarter • Announced regular quarterly dividend of $0.50 per share Dallas, Texas, July 31, 2025 ‑ HF Sinclair Corporation (NYSE and NYSE Texas, Inc.: DINO) (“HF Sinclair” or the “Company”) today reported Net income attributable to HF Sinclair stockholders of $208 million, or $1.10 per diluted share, for the quarter ended June 30, 2025, compared to Net income attributable to HF Sinclair stockholders of $152 million, or $0.79 per diluted share, for the quarter ended June 30, 2024. Excluding the adjustments shown in the accompanying earnings release table, adjusted net income attributable to HF Sinclair stockholders for the second quarter of 2025 was $322 million, or $1.70 per diluted share, compared to adjusted net income attributable to HF Sinclair stockholders of $150 million, or $0.78 per diluted share, for the second quarter of 2024. HF Sinclair’s Chief Executive Officer, Tim Go, commented, “During the second quarter of 2025, we made strong progress on our key priorities to improve reliability, optimization and integration, and I’m pleased to report we delivered sequential improvements over the last three quarters in refining throughput, capture and lower operating costs – allowing us to return $145 million to stockholders through dividend and share repurchases in the current period. Looking forward, we remain focused on advancing these priorities further, and with the majority of our turnarounds behind us in 2025, we believe we are well positioned to continue to execute our strategy and return excess cash to our shareholders.” Refining segment income before interest and income taxes was $166 million for the second quarter of 2025 compared to income of $65 million for the second quarter of 2024. Excluding the Lower of cost or market inventory valuation adjustment charge of $172 million and certain items, the segment reported Adjusted EBITDA of $476 million for the second quarter of 2025 compared to $187 million for the second quarter of 2024. This increase was principally driven by higher adjusted refinery gross margins in both the West and Mid-Continent regions partially offset by lower refined product sales volumes. Adjusted refinery gross margin was $16.50 per produced barrel sold, a 46% increase compared to $11.33 for the second quarter of 2024. Crude oil charge averaged 615,930 barrels per day (“BPD”) for the second quarter of 2025 compared to 634,730 BPD for the second quarter of 2024. This decrease was primarily a result of turnaround activities at our Tulsa and Parco refineries during the second quarter of 2025. Renewables segment loss before interest and income taxes was $4 million for the second quarter of 2025 compared to a loss of $15 million for the second quarter of 2024. Excluding the Lower of cost or market inventory valuation adjustment benefit of $24 million, the segment reported Adjusted EBITDA of $(2) million in the second quarter of 2025 compared to $2 million in the second quarter of 2024. In the second quarter of 2025 we began partially recognizing the benefits from the Producer’s Tax Credit, and we expect to capture additional incremental value in the third quarter of 2025. Total sales volumes were 55 million gallons for the second quarter of 2025 compared to 64 million gallons for the second quarter of 2024. Marketing segment income before interest and income taxes was $18 million for the second quarter of 2025 compared to $9 million for the second quarter of 2024. The segment reported EBITDA of $25 million for the second quarter of 2025 compared to $15 million for the second quarter of 2024. This increase was primarily driven by higher margins and high-grading our mix of stores in the second quarter of 2025. Total branded fuel sales volumes were 337 million gallons for the second quarter 2025 as compared to 357 million gallons for the second quarter of 2024. 1
Page 2
Lubricants & Specialties segment income before interest and income taxes was $33 million for the second quarter of 2025 compared to $74 million in the second quarter of 2024. The segment reported EBITDA of $55 million for the second quarter of 2025 compared to $97 million in the second quarter of 2024. The decrease was primarily driven by lower margins in addition to lower sales volumes as a result of turnaround activities at our Mississauga facility. During the second quarter of 2025, we recognized a FIFO charge of $20 million compared to a FIFO charge of $14 million during the second quarter of 2024. Midstream segment income before interest and income taxes was $98 million for the second quarter of 2025 compared to $97 million for the second quarter of 2024. Excluding certain items, the segment reported Adjusted EBITDA of $112 million for the second quarter of 2025 compared to $110 million for the second quarter of 2024. This increase was primarily driven by higher pipeline revenues and lower operating expenses, partially offset by lower throughput volumes in the second quarter of 2025 as compared to the second quarter of 2024. For the second quarter of 2025, net cash provided by operations totaled $587 million. At June 30, 2025, the Company’s Cash and cash equivalents totaled $874 million, a $74 million increase compared to Cash and cash equivalents of $800 million at December 31, 2024. During the second quarter of 2025, the Company announced and paid a regular dividend of $0.50 per share to stockholders totaling $95 million and spent $50 million on share repurchases. Additionally, at June 30, 2025, the Company’s consolidated debt was $2,677 million. HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.50 per share. The dividend is payable on September 4, 2025 to holders of record of common stock on August 21, 2025. The Company has scheduled a webcast conference call for today, July 31, 2025, at 9:30 AM Eastern Time to discuss first quarter financial results. This webcast may be accessed at: https://events.q4inc.com/attendee/918922726. An audio archive of this webcast will be available using the above noted link through August 14, 2025. 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 1,700 branded stations and licenses the use of the Sinclair brand to 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. 2
Page 3
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”). All statements concerning our expectations for future results of operations are based on forecasts for our existing operations and do not include the potential impact of any future acquisitions. 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 crude oil, 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 at 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, ongoing conflicts in the Middle East, 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 uncertainties regarding trade policies, such as the imposition or implementation of tariffs, or economic slowdowns caused by a local or national recession or other adverse economic conditions, 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
Page 4
RESULTS OF OPERATIONS Financial Data (all information in this release is unaudited) Three Months Ended June 30, Change from 2024 2025 2024 Change Percent (In millions, except share and per share data) Sales and other revenues $ 6,784 $ 7,846 $ (1,062) (14)% Operating costs and expenses: Cost of sales: Cost of materials and other 5,440 6,751 (1,311) (19)% Lower of cost or market inventory valuation adjustments 148 (3) 151 (5,033)% Operating expenses 572 591 (19) (3)% 6,160 7,339 (1,179) (16)% Selling, general and administrative expenses 114 104 10 10 % Depreciation and amortization 226 206 20 10 % Other operating expenses, net 9 — 9 100% Total operating costs and expenses 6,509 7,649 (1,140) (15)% Income from operations 275 197 78 40 % Other income (expense): Earnings of equity method investments 10 8 2 25 % Interest income 7 19 (12) (63)% Interest expense (53) (45) (8) 18 % Other income (expense), net 7 (1) 8 (800)% (29) (19) (10) 53 % Income before income taxes 246 178 68 38 % Income tax expense 36 24 12 50 % Net income 210 154 56 36 % Less: net income attributable to noncontrolling interest 2 2 — — % Net income attributable to HF Sinclair stockholders $ 208 $ 152 $ 56 37 % Earnings per share attributable to HF Sinclair stockholders: Basic $ 1.10 $ 0.79 $ 0.31 39 % Diluted $ 1.10 $ 0.79 $ 0.31 39 % Cash dividends declared per common share $ 0.50 $ 0.50 $ — — % Average number of common shares outstanding (in thousands): Basic 188,110 191,510 (3,400) (2)% Diluted 188,110 191,510 (3,400) (2)% EBITDA $ 516 $ 408 $ 108 26 % Adjusted EBITDA $ 665 $ 406 $ 259 64 % (1) (2) (1) 4
Page 5
Six Months Ended June 30, Change from 2024 2025 2024 Change Percent (In millions, except share and per share data) Sales and other revenues $ 13,154 $ 14,873 $ (1,719) (12)% Operating costs and expenses: Cost of sales: Cost of materials and other 10,916 12,677 (1,761) (14)% Lower of cost or market inventory valuation adjustments 31 (223) 254 (114)% Operating expenses 1,168 1,199 (31) (3)% 12,115 13,653 (1,538) (11)% Selling, general and administrative expenses 218 208 10 5 % Depreciation and amortization 451 403 48 12 % Other operating expenses, net 14 — 14 100% Total operating costs and expenses 12,798 14,264 (1,466) (10)% Income from operations 356 609 (253) (42)% Other income (expense): Earnings of equity method investments 21 15 6 40 % Interest income 16 41 (25) (61)% Interest expense (102) (87) (15) 17 % Other income (expense), net (46) 2 (48) (2,400)% (111) (29) (82) 283 % Income before income taxes 245 580 (335) (58)% Income tax expense 37 110 (73) (66)% Net income 208 470 (262) (56)% Less: net income attributable to noncontrolling interest 4 4 — — % Net income attributable to HF Sinclair stockholders $ 204 $ 466 $ (262) (56)% Earnings per share attributable to HF Sinclair stockholders: Basic $ 1.07 $ 2.38 $ (1.31) (55)% Diluted $ 1.07 $ 2.38 $ (1.31) (55)% Cash dividends declared per common share $ 1.00 $ 1.00 $ — — % Average number of common shares outstanding (in thousands): Basic 188,298 195,110 (6,812) (3)% Diluted 188,298 195,110 (6,812) (3)% EBITDA $ 778 $ 1,025 $ (247) (24)% Adjusted EBITDA $ 866 $ 805 $ 61 8 % (1) Exclusive of Depreciation and amortization. (2) Exclusive of Lower of cost or market inventory valuation adjustments. Balance Sheet Data June 30, 2025 December 31, 2024 (In millions) Cash and cash equivalents $ 874 $ 800 Working capital $ 2,332 $ 1,971 Total assets $ 16,843 $ 16,643 Total debt $ 2,677 $ 2,638 Total equity $ 9,348 $ 9,346 (1) (2) (1) 5
Page 6
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 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’ production operations, located in Mississauga, Ontario, which includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants’ business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States and Europe. Additionally, the Lubricants & Specialties segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil, 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 our wholly-owned subsidiary Holly Energy Partners, L.P., 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, and Cushing Connect Pipeline & Terminal LLC, the owner of a pipeline running from Cushing, Oklahoma to Tulsa, Oklahoma, a 26.08% 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. 6
Page 7
Refining Renewables Marketing Lubricants &Specialties Midstream Corporate,Other andEliminations ConsolidatedTotal (In millions) Three Months Ended June 30, 2025 Sales and other revenues: Revenues from external customers$ 5,158 $ 131 $ 826 $ 641 $ 28 $ — $ 6,784 Intersegment revenues and other 861 127 — 4 129 (1,121) — 6,019 258 826 645 157 (1,121) 6,784 Cost of sales: Cost of materials and other 5,045 238 792 486 — (1,121) 5,440 Lower of cost or market inventoryvaluation adjustments 172 (24) — — — — 148 Operating expenses 441 22 — 63 45 1 572 5,658 236 792 549 45 (1,120) 6,160 Selling, general and administrativeexpenses 52 — 9 43 2 8 114 Depreciation and amortization 134 26 7 22 19 18 226 Other operating expenses, net 9 — — — — — 9 Income (loss) from operations 166 (4) 18 31 91 (27) 275 Earnings of equity method investments — — — — 9 1 10 Other income (expense), net — — — 2 (2) 7 7 Income (loss) before interest and incometaxes 166 (4) 18 33 98 (19) 292 Interest income — 1 — — 2 4 7 Interest expense — (2) — — (1) (50) (53) Income (loss) before income taxes$ 166 $ (5) $ 18 $ 33 $ 99 $ (65) $ 246 Net income attributable to noncontrollinginterest $ — $ — $ — $ — $ 2 $ — $ 2 Capital expenditures $ 71 $ — $ 11 $ 11 $ 12 $ 6 $ 111 Three Months Ended June 30, 2024 Sales and other revenues: Revenues from external customers$ 5,970 $ 180 $ 943 $ 726 $ 27 $ — $ 7,846 Intersegment revenues and other 1,008 68 — 5 131 (1,212) — 6,978 248 943 731 158 (1,212) 7,846 Cost of sales: Cost of materials and other 6,291 220 920 531 — (1,211) 6,751 Lower of cost or market inventoryvaluation adjustments — (3) — — — — (3) Operating expenses 449 25 — 64 51 2 591 6,740 242 920 595 51 (1,209) 7,339 Selling, general and administrativeexpenses 51 1 8 39 2 3 104 Depreciation and amortization 122 20 6 23 15 20 206 Income (loss) from operations 65 (15) 9 74 90 (26) 197 Earnings of equity method investments — — — — 7 1 8 Other income (expense), net — — — — — (1) (1) Income (loss) before interest and incometaxes 65 (15) 9 74 97 (26) 204 Interest income — — — 2 3 14 19 Interest expense — (2) — (1) (9) (33) (45) Income (loss) before income taxes$ 65 $ (17) $ 9 $ 75 $ 91 $ (45) $ 178 Net income attributable to noncontrollinginterest $ — $ — $ — $ — $ 2 $ — $ 2 Capital expenditures $ 36 $ 3 $ 13 $ 7 $ 11 $ 14 $ 84 (1) (2) (3) (2) (1) (2) (3) (2) 7
Page 8
Refining Renewables Marketing Lubricants& Specialties Midstream Corporate,Other, andEliminations ConsolidatedTotal (In millions) Six Months Ended June 30, 2025 Sales and other revenues: Revenues from external customers$ 10,081 $ 225 $ 1,512 $ 1,278 $ 58 $ — $ 13,154 Intersegment revenues and other 1,589 223 — 5 255 (2,072) — 11,670 448 1,512 1,283 313 (2,072) 13,154 Cost of sales: Cost of materials and other 10,185 421 1,444 939 — (2,073) 10,916 Lower of cost or market inventoryvaluation adjustments 56 (25) — — — — 31 Operating expenses 902 45 — 127 91 3 1,168 11,143 441 1,444 1,066 91 (2,070) 12,115 Selling, general and administrativeexpenses 106 1 16 79 4 12 218 Depreciation and amortization 271 49 14 44 37 36 451 Other operating expenses, net 14 — — — — — 14 Income (loss) from operations 136 (43) 38 94 181 (50) 356 Earnings of equity method investments — — — — 21 — 21 Other income (expense), net — — — 2 (41) (7) (46) Income (loss) before interest and incometaxes 136 (43) 38 96 161 (57) 331 Interest income — 1 — 2 5 8 16 Interest expense — (4) — — (4) (94) (102) Income (loss) before income taxes $ 136 $ (46) $ 38 $ 98 $ 162 $ (143)$ 245 Net income attributable to noncontrollinginterest $ — $ — $ — $ — $ 4 $ — $ 4 Capital expenditures $ 130 $ 1 $ 16 $ 20 $ 21 $ 9 $ 197 Six Months Ended June 30, 2024 Sales and other revenues: Revenues from external customers$ 11,343 $ 360 $ 1,718 $ 1,402 $ 50 $ — $ 14,873 Intersegment revenues and other 1,839 128 — 8 263 (2,238) — 13,182 488 1,718 1,410 313 (2,238) 14,873 Cost of sales: Cost of materials and other 11,766 450 1,672 1,024 — (2,235) 12,677 Lower of cost or market inventoryvaluation adjustments (221) (2) — — — — (223) Operating expenses 921 51 — 128 97 2 1,199 12,466 499 1,672 1,152 97 (2,233) 13,653 Selling, general and administrativeexpenses 99 3 15 74 6 11 208 Depreciation and amortization 240 40 13 45 35 30 403 Income (loss) from operations 377 (54) 18 139 175 (46) 609 Earnings of equity method investments — — — — 15 — 15 Other income, net — — — — — 2 2 Income (loss) before interest and incometaxes 377 (54) 18 139 190 (44) 626 Interest income — 1 — 4 5 31 41 Interest expense — (3) — (1) (18) (65) (87) Income (loss) before income taxes $ 377 $ (56) $ 18 $ 142 $ 177 $ (78) $ 580 Net income attributable to noncontrollinginterest $ — $ — $ — $ — $ 4 $ — $ 4 Capital expenditures $ 92 $ 6 $ 20 $ 12 $ 19 $ 24 $ 173 (1) Refining segment intersegment revenues relate to transportation fuels sold to the Marketing segment. Midstream segment revenues relate to pipeline and terminalling services provided primarily to the Refining segment, including leases. These transactions eliminate in consolidation. (2) Exclusive of Depreciation and amortization. (3) Exclusive of Lower of cost or market inventory valuation adjustments. (1) (2) (3) (2) (1) (2) (3) (2) 8
Page 9
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. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relates to inventory held at the end of the period. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region is comprised of the El Dorado and Tulsa refineries. The West region is comprised of the Puget Sound, Navajo, Woods Cross, Parco and Casper refineries. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Mid-Continent Region Crude charge (BPD) 252,690 265,810 256,630 262,420 Refinery throughput (BPD) 269,850 281,540 273,150 277,710 Sales of produced refined products (BPD) 259,220 283,190 257,300 277,830 Refinery utilization 97.2 % 102.2 % 98.7 % 100.9 % Average per produced barrel sold Gross margin $ 2.29 $ 0.66 $ 1.76 $ 3.98 Adjusted refinery gross margin $ 15.52 $ 8.39 $ 11.61 $ 9.41 Less: operating expenses 6.28 5.90 6.69 6.15 Adjusted refinery gross margin, less operating expenses $ 9.24 $ 2.49 $ 4.92 $ 3.26 Operating expenses per throughput barrel $ 6.03 $ 5.93 $ 6.31 $ 6.15 Feedstocks: Sweet crude oil 50 % 56 % 50 % 53 % Sour crude oil 25 % 20 % 25 % 23 % Heavy sour crude oil 19 % 19 % 19 % 19 % Other feedstocks and blends 6 % 5 % 6 % 5 % Total 100 % 100 % 100 % 100 % Sales of produced refined products: Gasolines 51 % 54 % 52 % 53 % Diesel fuels 32 % 30 % 31 % 31 % Jet fuels 7 % 5 % 7 % 5 % Fuel oil 1 % 1 % 1 % 1 % Asphalt 3 % 4 % 3 % 4 % Base oils 4 % 4 % 4 % 4 % LPG and other 2 % 2 % 2 % 2 % Total 100 % 100 % 100 % 100 % (1) (2) (3) (4) (5) (6) (7) (8) (9) 9
Page 10
Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 West Region Crude charge (BPD) 363,240 368,920 354,430 357,410 Refinery throughput (BPD) 390,790 395,070 380,500 382,240 Sales of produced refined products (BPD) 389,990 383,060 378,280 371,030 Refinery utilization 86.9 % 88.3 % 84.8 % 85.5 % Average per produced barrel sold Gross margin $ 4.89 $ 2.83 $ 2.53 $ 4.07 Adjusted refinery gross margin $ 17.15 $ 13.50 $ 13.80 $ 13.93 Less: operating expenses 8.23 8.52 8.63 9.04 Adjusted refinery gross margin, less operating expenses $ 8.92 $ 4.98 $ 5.17 $ 4.89 Operating expenses per throughput barrel $ 8.21 $ 8.26 $ 8.58 $ 8.77 Feedstocks: Sweet crude oil 30 % 37 % 31 % 35 % Sour crude oil 47 % 41 % 45 % 42 % Heavy sour crude oil 11 % 10 % 11 % 11 % Wax crude oil 5 % 6 % 6 % 6 % Other feedstocks and blends 7 % 6 % 7 % 6 % Total 100 % 100 % 100 % 100 % Sales of produced refined products: Gasolines 52 % 51 % 53 % 52 % Diesel fuels 31 % 32 % 32 % 32 % Jet fuels 6 % 6 % 6 % 6 % Fuel oil 2 % 2 % 2 % 2 % Asphalt 3 % 3 % 2 % 2 % LPG and other 6 % 6 % 5 % 6 % Total 100 % 100 % 100 % 100 % Consolidated Crude charge (BPD) 615,930 634,730 611,060 619,830 Refinery throughput (BPD) 660,640 676,610 653,650 659,950 Sales of produced refined products (BPD) 649,210 666,250 635,580 648,860 Refinery utilization 90.8 % 93.6 % 90.1 % 91.4 % Average per produced barrel sold Gross margin $ 3.85 $ 1.90 $ 2.22 $ 4.03 Adjusted refinery gross margin $ 16.50 $ 11.33 $ 12.91 $ 11.99 Less: operating expenses 7.45 7.41 7.85 7.80 Adjusted refinery gross margin, less operating expenses $ 9.05 $ 3.92 $ 5.06 $ 4.19 Operating expenses per throughput barrel $ 7.32 $ 7.29 $ 7.63 $ 7.67 (1) (2) (3) (4) (5) (6) (7) (8) (9) (1) (2) (3) (4) (5) (6) (7) (8) (9) 10
Page 11
Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Consolidated Feedstocks: Sweet crude oil 38 % 46 % 39 % 42 % Sour crude oil 38 % 32 % 37 % 34 % Heavy sour crude oil 14 % 13 % 14 % 14 % Wax crude oil 3 % 3 % 3 % 4 % Other feedstocks and blends 7 % 6 % 7 % 6 % Total 100 % 100 % 100 % 100 % Sales of produced refined products: Gasolines 52 % 52 % 52 % 52 % Diesel fuels 31 % 32 % 31 % 32 % Jet fuels 6 % 6 % 7 % 6 % Fuel oil 2 % 1 % 2 % 1 % Asphalt 2 % 3 % 2 % 3 % Base oils 2 % 2 % 2 % 2 % LPG and other 5 % 4 % 4 % 4 % 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 produced refined products. (7) Adjusted refinery gross margin is a non-GAAP measure. 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 produced refined products. (9) Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by refinery throughput. 11
Page 12
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. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Renewables Sales of produced renewables products (in thousand gallons) 54,786 63,557 99,250 124,729 Average per produced gallon sold: Gross margin $ (0.05)$ (0.21)$ (0.42)$ (0.42) Adjusted renewables gross margin $ 0.36 $ 0.44 $ 0.27 $ 0.30 Less: operating expenses 0.39 0.39 0.45 0.41 Adjusted renewables gross margin, less operating expenses$ (0.03)$ 0.05 $ (0.18)$ (0.11) (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 produced renewables products. (3) Adjusted renewables gross margin is a non-GAAP measure. 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 produced renewables products. 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. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Marketing Number of branded sites at period end 1,719 1,564 1,719 1,564 Sales of refined products (in thousand gallons) 337,147 357,137 631,012 678,147 Average per gallon sold: Gross margin $ 0.08 $ 0.05 $ 0.09 $ 0.05 Adjusted marketing gross margin $ 0.10 $ 0.06 $ 0.11 $ 0.07 (1) Includes certain non-Sinclair branded sites. (2) Represents the 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. (4) Adjusted marketing gross margin is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” below. (1) (2) (3) (4) (1) (2) (3) (4) 12
Page 13
Lubricants & Specialties Segment Operating Data The following table sets forth information about our lubricants and specialties operations. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Lubricants & Specialties Sales of produced refined products (BPD) 31,963 34,915 30,460 33,009 Sales of produced refined products: Finished products 51 % 48 % 52 % 48 % Base oils 24 % 26 % 25 % 26 % Other 25 % 26 % 23 % 26 % Total 100 % 100 % 100 % 100 % Midstream Segment Operating Data The following table sets forth information about our midstream operations. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Midstream Volumes (BPD) Pipelines: Affiliates—refined product pipelines 145,940 175,824 154,916 170,226 Affiliates—intermediate pipelines 133,296 151,894 135,835 144,982 Affiliates—crude pipelines 383,374 426,036 404,018 433,745 662,610 753,754 694,769 748,953 Third parties—refined product pipelines 42,458 41,596 41,113 39,159 Third parties—crude pipelines 189,918 200,348 194,445 181,420 894,986 995,698 930,327 969,532 Terminals and loading racks: Affiliates 969,791 1,031,238 980,271 800,448 Third parties 41,258 39,602 38,104 36,356 1,011,049 1,070,840 1,018,375 836,804 Total for pipelines and terminal assets (BPD) 1,906,035 2,066,538 1,948,702 1,806,336 (1) Certain volumetric non-financial information has been recast to conform to current year presentation. (1) 13
Page 14
Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles Reconciliations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA excluding special items (“Adjusted EBITDA”) to amounts reported under generally accepted accounting principles (“GAAP”) in the financial statements. Earnings before interest, taxes, depreciation and amortization, referred to as EBITDA, is calculated as Net income attributable to HF Sinclair stockholders plus (i) Interest expense, net of Interest income, (ii) Income tax expense and (iii) Depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus (i) Lower of cost or market inventory valuation adjustments, (ii) loss on sale of equity method investment (iii) loss on early extinguishment of debt, (iv) decommissioning and closure costs, (v) asset impairments and (vi) acquisition integration costs. EBITDA and Adjusted EBITDA are not calculations provided for under accounting principles generally accepted in the United States; however, the amounts included in these calculations are derived from amounts included in our consolidated financial statements. EBITDA and Adjusted EBITDA should not be considered as alternatives to Net income or Income 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 financial indicators widely used by investors and analysts to measure our operating performance. EBITDA and Adjusted EBITDA are also used by our management for internal analysis and as a basis for financial covenants. Set forth below is our calculation of EBITDA and Adjusted EBITDA: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions) Net income attributable to HF Sinclair stockholders $ 208 $ 152 $ 204 $ 466 Add: interest expense 53 45 102 87 Less: interest income (7) (19) (16) (41) Add: income tax expense 36 24 37 110 Add: depreciation and amortization 226 206 451 403 EBITDA $ 516 $ 408 $ 778 $ 1,025 Add: lower of cost or market inventory valuation adjustments 148 (3) 31 (223) Add: loss on sale of equity method investment — — 40 — Add: loss on early extinguishment of debt 1 — 16 — Add: decommissioning and closure costs — — — — Add: asset impairments — — 1 — Add: acquisition integration costs — 1 — 3 Adjusted EBITDA $ 665 $ 406 $ 866 $ 805 (1) Net of certain unrelated costs and benefits in our Refining segment and Midstream segment, respectively. EBITDA and Adjusted EBITDA attributable to our Refining segment are presented below: Three Months Ended June 30, Six Months Ended June 30, Refining Segment 2025 2024 2025 2024 (In millions) Income before interest and income taxes $ 166 $ 65 $ 136 $ 377 Add: depreciation and amortization 134 122 271 240 EBITDA $ 300 $ 187 $ 407 $ 617 Add: lower of cost or market inventory valuation adjustments 172 — 56 (221) Add: decommissioning and closure costs 4 — 4 — Add: asset impairments — — 1 — Adjusted EBITDA $ 476 $ 187 $ 468 $ 396 (1) Income before interest and income taxes of our Refining segment represents income plus (i) Interest expense, net of Interest income and (ii) Income tax expense. (1) (1) 14
Page 15
EBITDA and Adjusted EBITDA attributable to our Renewables segment are set forth below: Three Months Ended June 30, Six Months Ended June 30, Renewables Segment 2025 2024 2025 2024 (In millions) Loss before interest and income taxes $ (4) $ (15) $ (43) $ (54) Add: depreciation and amortization 26 20 49 40 EBITDA $ 22 $ 5 $ 6 $ (14) Add: lower of cost or market inventory valuation adjustments (24) (3) (25) (2) Adjusted EBITDA $ (2) $ 2 $ (19) $ (16) (1) Loss before interest and income taxes of our Renewables segment represents loss plus (i) Interest expense, net of Interest income and (ii) Income tax expense. EBITDA attributable to our Marketing segment is set forth below: Three Months Ended June 30, Six Months Ended June 30, Marketing Segment 2025 2024 2025 2024 (In millions) Income before interest and income taxes $ 18 $ 9 $ 38 $ 18 Add: depreciation and amortization 7 6 14 13 EBITDA $ 25 $ 15 $ 52 $ 31 (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. EBITDA attributable to our Lubricants & Specialties segment is set forth below: Three Months Ended June 30, Six Months Ended June 30, Lubricants & Specialties Segment 2025 2024 2025 2024 (In millions) Income before interest and income taxes $ 33 $ 74 $ 96 $ 139 Add: depreciation and amortization 22 23 44 45 EBITDA $ 55 $ 97 $ 140 $ 184 (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. EBITDA and Adjusted EBITDA attributable to our Midstream segment are presented below: Three Months Ended June 30, Six Months Ended June 30, Midstream Segment 2025 2024 2025 2024 (In millions) Income before interest and income taxes $ 98 $ 97 $ 161 $ 190 Add: depreciation and amortization 19 15 37 35 Less: net income attributable to noncontrolling interest 2 2 4 4 EBITDA $ 115 $ 110 $ 194 $ 221 Add: loss on sale of equity method investment — — 40 — Add: loss on extinguishment of debt 1 — 1 — Add: decommissioning and closure costs (4) — (4) — Adjusted EBITDA $ 112 $ 110 $ 231 $ 221 (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. (1) (1) (1) (1) 15
Page 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, Operating expenses and Depreciation and amortization, divided by sales volumes of produced refined products. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to inventory held at the end of the period. Adjusted refinery gross margin is a non-GAAP performance measure and should not be considered in isolation or as a substitute for Refining segment gross margin. The GAAP measure most directly comparable to adjusted refinery gross margin is Refining segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly. Reconciliation of Refining segment gross margin to adjusted refinery gross margin to adjusted refinery gross margin per produced barrel sold and adjusted refinery gross margin, less operating expenses per produced barrel sold Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions, except barrel and per barrel amounts) Refining segment Sales and other revenues $ 6,019 $ 6,978 $ 11,670 $ 13,182 Cost of sales 5,658 6,740 11,143 12,466 Depreciation and amortization 134 122 271 240 Gross margin $ 227 $ 116 $ 256 $ 476 Add: lower of cost or market inventory valuation adjustments 172 — 56 (221) Add: operating expenses 441 449 902 921 Add: depreciation and amortization 134 122 271 240 Adjusted refinery gross margin $ 974 $ 687 $ 1,485 $ 1,416 Sales of produced refined products (BPD) 649,210 666,250 635,580 648,860 Average per produced barrel sold: Gross margin $ 3.85 $ 1.90 $ 2.22 $ 4.03 Add: lower of cost or market inventory valuation adjustments 2.93 — 0.49 (1.87) Add: operating expenses 7.45 7.41 7.85 7.80 Add: depreciation and amortization 2.27 2.02 2.35 2.03 Adjusted refinery gross margin $ 16.50 $ 11.33 $ 12.91 $ 11.99 Less: operating expenses 7.45 7.41 7.85 7.80 Adjusted refinery operating expenses, less operating expenses$ 9.05 $ 3.92 $ 5.06 $ 4.19 (1) Exclusive of Depreciation and amortization. (2) 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. (1) (2) 16
Page 17
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, Operating expenses and Depreciation and amortization, divided by sales volumes of produced renewables products. This margin measure does not include the non-cash effects of Lower of cost or market inventory valuation adjustments, which relate to volumes in inventory at the end of the period. Adjusted renewables gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Renewables segment gross margin. The GAAP measure most directly comparable to adjusted renewables gross margin is Renewables segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly. Reconciliation of Renewables segment gross margin to adjusted renewables gross margin to adjusted renewables gross margin per produced gallon sold and adjusted renewables gross margin, less operating expenses per produced gallon sold Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions, except gallon and per gallon amounts) Renewables segment Sales and other revenues $ 258 $ 248 $ 448 $ 488 Costs of sales 236 242 441 499 Depreciation and amortization 26 20 49 40 Gross margin $ (4) $ (14) $ (42) $ (51) Add: lower of cost or market inventory valuation adjustments (24) (3) (25) (2) Add: operating expenses 22 25 45 51 Add: depreciation and amortization 26 20 49 40 Adjusted renewables gross margin $ 20 $ 28 $ 27 $ 38 Sales of produced renewables products (in thousand gallons) 54,786 63,557 99,250 124,729 Average per produced gallon sold: Gross margin $ (0.05)$ (0.21)$ (0.42)$ (0.42) Add: lower of cost or market inventory valuation adjustments (0.45) (0.05) (0.26) (0.02) Add: operating expenses 0.39 0.39 0.45 0.41 Add: depreciation and amortization 0.47 0.31 0.50 0.33 Adjusted renewables gross margin $ 0.36 $ 0.44 $ 0.27 $ 0.30 Less: operating expenses 0.39 0.39 0.45 0.41 Adjusted renewables gross margin, less operating expenses $ (0.03)$ 0.05 $ (0.18)$ (0.11) (1) Exclusive of Depreciation and amortization. (1) 17
Page 18
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. Adjusted marketing gross margin is not a calculation provided for under GAAP and should not be considered in isolation or as a substitute for Marketing segment gross margin. The GAAP measure most directly comparable to adjusted marketing gross margin is Marketing segment gross margin. Other companies in our industry may not calculate these performance measures in the same manner. Due to rounding of reported numbers, some amounts may not calculate exactly. Reconciliation of Marketing segment gross margin to adjusted marketing gross margin to adjusted marketing gross margin per gallon sold Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions, except gallon and per gallon amounts) Marketing segment Sales and other revenues $ 826 $ 943 $ 1,512 $ 1,718 Costs of sales 792 920 1,444 1,672 Depreciation and amortization 7 6 14 13 Gross margin $ 27 $ 17 $ 54 $ 33 Add: depreciation and amortization 7 6 14 13 Adjusted marketing gross margin $ 34 $ 23 $ 68 $ 46 Sales of refined products (in thousand gallons) 337,147 357,137 631,012 678,147 Average per gallon sold: Gross margin $ 0.08 $ 0.05 $ 0.09 $ 0.05 Add: depreciation and amortization 0.02 0.01 0.02 0.02 Adjusted marketing gross margin $ 0.10 $ 0.06 $ 0.11 $ 0.07 (1) Exclusive of Depreciation and amortization. (1) 18
Page 19
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, loss on sale of equity method investment, loss on early extinguishment of debt, decommissioning and closure costs, asset impairments and acquisition integration costs. We believe this measure is helpful to investors and others in evaluating our financial performance and to compare our results to that of other companies in our industry. Similarly titled performance measures of other companies may not be calculated in the same manner. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions, except per share amounts) Consolidated GAAP: Income before income taxes $ 246 $ 178 $ 245 $ 580 Income tax expense 36 24 37 110 Net income $ 210 $ 154 $ 208 $ 470 Less: net income attributable to noncontrolling interest 2 2 4 4 Net income attributable to HF Sinclair stockholders $ 208 $ 152 $ 204 $ 466 Non-GAAP adjustments to arrive at adjusted results: Lower of cost or market inventory valuation adjustments$ 148 $ (3) $ 31 $ (223) Loss on sale of equity method investment — — 40 — Loss on early extinguishment of debt 1 — 16 — Decommissioning and closure costs — — — — Asset impairments — — 1 — Acquisition integration costs — 1 — 3 Total adjustments to income before income taxes $ 149 $ (2) $ 88 $ (220) Adjustment to income tax expense 35 — 21 (46) Adjustments to net income attributable to noncontrolling interest — — — — Total adjustments, net of tax $ 114 $ (2) $ 67 $ (174) Adjusted results - non-GAAP: Adjusted income before income taxes $ 395 $ 176 $ 333 $ 360 Adjusted income tax expense 71 24 58 64 Adjusted net income $ 324 $ 152 $ 275 $ 296 Less: net income attributable to noncontrolling interest 2 2 4 4 Adjusted net income attributable to HF Sinclair stockholders$ 322 $ 150 $ 271 $ 292 Adjusted earnings per share - diluted $ 1.70 $ 0.78 $ 1.43 $ 1.49 (1) Net of certain unrelated costs and benefits in our Refining segment and Midstream segment, respectively. (2) Represents adjustment to GAAP income tax expense to arrive at adjusted income tax expense, which is computed as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions) Non-GAAP income tax expense $ 71 $ 24 $ 58 $ 64 GAAP income tax expense 36 24 37 110 Non-GAAP adjustment to income tax expense $ 35 $ — $ 21 $ (46) (3) Non-GAAP income tax expense is computed by (a) adjusting HF Sinclair’s consolidated estimated Annual Effective Tax Rate (“AETR”) for GAAP purposes for the effects of the above Non-GAAP adjustments, (b) applying the resulting Adjusted Non-GAAP AETR to Non-GAAP adjusted income before income taxes and (c) adjusting for discrete tax items applicable to the period. (4) Adjusted earnings per share - diluted is calculated as adjusted net income attributable to HF Sinclair stockholders divided by the average number of shares of common stock outstanding assuming dilution, which is based on weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is calculated the same way as that used in GAAP diluted earnings per share calculation. (1) (2) (3) (4) (2) 19
Page 20
Reconciliation of effective tax rate to adjusted effective tax rate Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions) GAAP: Income before income taxes $ 246 $ 178 $ 245 $ 580 Income tax expense $ 36 $ 24 $ 37 $ 110 Effective tax rate for GAAP financial statements 14.5 % 13.5 % 15.1 % 18.9 % Adjusted - non-GAAP: Effect of non-GAAP adjustments 3.6 % 0.3 % 2.4 % (1.1)% Effective tax rate for adjusted results 18.1 % 13.8 % 17.5 % 17.8 % (1) Due to rounding of reported numbers, some amounts may not calculate exactly. 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 (1) 20