HF Sinclair Corp

We are 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. We own and operate refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. We provide petroleum product and crude oil transportation, terminalling, storage and throughput services to our refineries and the petroleum industry. We market our refined products principally in the Southwest United States, the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states, and we supply high-quality fuels to more than 1,600 branded stations and license the use of the Sinclair brand at more than 300 additional locations throughout the country. We produce renewable diesel at two of our facilities in Wyoming and our facility in New Mexico. In addition, our subsidiaries produce and market base oils and other specialized lubricants in the United States, Canada and the Netherlands, and export products to more than 80 countries.

Market Developments

For the three months ended March 31, 2025, Net loss attributable to HF Sinclair stockholderswas$4 million compared to a Net income attributable to HF Sinclair stockholdersof $315 million for the same period last year.

In the Refining segment, while financial results improved from the prior quarter, we continued to see lower refining margins in the Mid-Continent and West regions for the three months ended March 31, 2025. Additionally, our results were impacted by the planned turnaround at our Tulsa refinery. For the second quarter of 2025, we expect to run between 600,000-630,000 barrels per day of crude oil, which reflects the completion of the planned turnaround at our Tulsa refinery, as well as the planned turnaround at our Parco refinery.

In the Renewables segment, while sales volumes declined, we saw improved RINs and Low Carbon Fuel Standard (“LCFS”) prices in the first quarter of 2025. Additionally, we did not recognize a benefit relating to the Producer’s Tax Credit (“PTC”) in the first quarter of 2025 due to uncertainty surrounding the implementation of the legislation. For the second quarter of 2025, we expect comparable RINs and LCFS prices to the current quarter and for our results to continue to be impacted by the uncertainty surrounding implementation of the PTC legislation.

In the Marketing segment, we continued to see strong value in the Sinclair branded sites during the three months ended March 31, 2025 as the marketing business provided a consistent sales channel with margin uplift for our produced fuels. We expect to grow the number of branded sites by approximately 10% annually. During the three months ended March 31, 2025, we added 37 net new branded sites.

In the Lubricants & Specialties segment, we saw strong performance driven by sales mix optimization and base oil integration across our portfolio, partially offset by lower sales volume during the three months ended March 31, 2025. For the second quarter of 2025, our results will be impacted by the planned turnaround at our Mississauga facility.

In the Midstream segment, our results continued to benefit from increased volumes, higher pipeline revenues and lower selling, general and administrative expenses during the three months ended March 31, 2025. Additionally, we assigned our 50% ownership interest in Cheyenne Pipeline, LLC to our joint venture partner in exchange for the cancellation of certain future commitments.

We continue to adjust our operational plans to evolving market conditions. The extent to which our future results are affected by volatile regional and global economic conditions will depend on various factors and consequences beyond our control.

On May 7, 2024, our Board of Directors authorized a $1.0 billion share repurchase program (the “May 2024 Share Repurchase Program”). The timing and amount of share repurchases under the May 2024 Share Repurchase Program, including those from REH Company, LLC (“REH Company” and together with its affiliate REH Advisors Inc., “REH”), will depend on market conditions and corporate, tax, regulatory and other relevant conditions.

On May 1, 2025, our Board of Directors announced that it declared a regular quarterly dividend in the amount of $0.50 per share, payable on June 3, 2025 to holders of record of common stock on May 15, 2025.

Renewable Fuel Standard Regulations

Pursuant to the 2007 Energy Independence and Security Act, the Environmental Protection Agency (“EPA”) promulgated the Renewable Fuel Standard (“RFS”) regulations, which increased the volume of renewable fuels mandated to be blended into the nation’s fuel supply. The regulations, in part, require refiners to add annually increasing amounts of “renewable fuels” to their petroleum products or purchase credits, known as RINs, in lieu of such blending. Compliance with RFS regulations significantly increases our Cost of materials and other, with RINs costs totaling $138 million for the three months ended March 31, 2025. At March 31, 2025, our open RINs credit obligations were $46 million.

A more detailed discussion of our financial and operating results for the three months ended March 31, 2025 and 2024 is presented in the following sections.