HF Sinclair Corp
For the period ended Dec 31, 2025. Filed Feb 27, 2026.
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FY2025 · Filed Feb 27, 2026
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Item 7. Results of Operations
Financial Data
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In millions, except share and per share data) | |||
| Sales and other revenues | $26,869 | $28,580 | $31,964 |
| Operating costs and expenses: | |||
| Cost of sales: (1) | |||
| Cost of materials and other (2) | 21,760 | 24,582 | 25,784 |
| Lower of cost or market inventory valuation adjustments | 417 | (43) | 271 |
| Operating expenses | 2,391 | 2,484 | 2,438 |
| 24,568 | 27,023 | 28,493 | |
| Selling, general and administrative expenses (1) | 456 | 447 | 497 |
| Depreciation and amortization | 909 | 832 | 771 |
| Other operating expenses, net | 9 | 17 | — |
| Total operating costs and expenses | 25,942 | 28,319 | 29,761 |
| Income from operations | 927 | 261 | 2,203 |
| Other income (expense): | |||
| Earnings of equity method investments | 33 | 32 | 17 |
| Interest income | 42 | 75 | 94 |
| Interest expense | (217) | (165) | (191) |
| Other income (expense), net | (53) | 15 | 30 |
| (195) | (43) | (50) | |
| Income before income taxes | 732 | 218 | 2,153 |
| Income tax expense (benefit): | |||
| Current | 139 | 83 | 249 |
| Deferred | 7 | (49) | 193 |
| 146 | 34 | 442 | |
| Net income | 586 | 184 | 1,711 |
| Less: net income attributable to noncontrolling interest | 7 | 7 | 121 |
| Net income attributable to HF Sinclair stockholders | $579 | $177 | $1,590 |
| Earnings per share attributable to HF Sinclair stockholders: | |||
| Basic | $3.08 | $0.91 | $8.29 |
| Diluted | $3.08 | $0.91 | $8.29 |
| Average number of common shares outstanding (in thousands): | |||
| Basic | 186,465 | 192,073 | 190,035 |
| Diluted | 186,465 | 192,073 | 190,035 |
(2)Exclusive of Lower of cost or market inventory valuation adjustments.
Other Financial Data
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In millions) | |||
| Net cash provided by operating activities | $1,315 | $1,110 | $2,297 |
| Net cash used for investing activities | $(516) | $(468) | $(371) |
| Net cash used for financing activities | $(631) | $(1,182) | $(2,244) |
| Capital expenditures | $449 | $470 | $385 |
| EBITDA (1) | $1,809 | $1,133 | $2,900 |
(1)Earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA,” is calculated as Net income attributable to HF Sinclair stockholders plus (i)Income tax expense (benefit), (ii)Interest expense, net of Interest income and (iii)Depreciation and amortization. EBITDA is not a calculation provided for under GAAP; however, the amounts included in the EBITDA calculation are derived from amounts included in our consolidated financial statements. EBITDA should not be considered as an alternative to Net income or Income from operationsas an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity. EBITDA is not necessarily comparable to similarly titled measures of other companies. EBITDA is presented here because it is a financial indicator widely used by investors and analysts to measure performance. EBITDA is also used by our management for internal analysis and as a basis for financial covenants. EBITDA presented above is reconciled to Net income under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” in Item 7 of Part II of this Annual Report on Form 10-K.
Supplemental Segment Operating Data
Our operations are organized into five reportable segments, Refining, Renewables, Marketing, Lubricants & Specialties and Midstream. See Note 19 “Segment Information” in the Notes to Consolidated Financial Statements for additional information on our reportable segments.
Refining Segment Operating Data
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. The following tables set forth information, including non-GAAP 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 amortizationand 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 relate 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” in Item 7 of Part II of this Annual Report on Form 10-K.
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Mid-Continent Region | |||
| Crude charge (BPD) (1) | 267,030 | 251,650 | 237,510 |
| Refinery throughput (BPD) (2) | 284,620 | 267,200 | 256,810 |
| Sales of produced refined products (BPD) (3) | 270,920 | 267,130 | 248,330 |
| Refinery utilization (4) | 102.7% | 96.8% | 91.4% |
| Average per produced barrel sold: (5) | |||
| Gross margin (6) | $3.45 | $(0.27) | $6.65 |
| Operating expenses (7) | 6.48 | 6.65 | 6.92 |
| Adjusted refinery gross margin (8) | $14.38 | $8.21 | $17.31 |
| Less: adjusted refinery operating expenses (9) | 6.48 | 6.65 | 6.92 |
| Adjusted refinery gross margin, less adjusted refinery operating expenses | $7.90 | $1.56 | $10.39 |
| Operating expenses per throughput barrel (10) | $6.16 | $6.65 | $6.69 |
| Adjusted refinery operating expenses per throughput barrel (9) (11) | $6.16 | $6.65 | $6.69 |
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Mid-Continent Region | |||
| Feedstocks: | |||
| Sweet crude oil | 51% | 54% | 56% |
| Sour crude oil | 26% | 23% | 20% |
| Heavy sour crude oil | 17% | 17% | 16% |
| Other feedstocks and blends | 6% | 6% | 8% |
| Total | 100% | 100% | 100% |
| Sales of produced refined products: | |||
| Gasolines | 52% | 52% | 51% |
| Diesel fuels | 31% | 31% | 30% |
| Jet fuels | 7% | 6% | 6% |
| Fuel oil | 1% | 1% | 1% |
| Asphalt | 3% | 4% | 4% |
| Base oils | 4% | 4% | 4% |
| LPG and other | 2% | 2% | 4% |
| Total | 100% | 100% | 100% |
| West Region | |||
|---|---|---|---|
| Crude charge (BPD) (1) | 337,320 | 350,430 | 330,030 |
| Refinery throughput (BPD) (2) | 367,460 | 376,050 | 360,200 |
| Sales of produced refined products (BPD) (3) | 367,160 | 370,040 | 353,950 |
| Refinery utilization (4) | 80.7% | 83.8% | 79.0% |
| Average per produced barrel sold: (5) | |||
| Gross margin (6) | $3.35 | $0.61 | $11.34 |
| Operating expenses (7) | 8.84 | 9.32 | 9.69 |
| Adjusted refinery gross margin (8) | $16.10 | $12.04 | $23.69 |
| Less: adjusted refinery operating expenses (9) | 8.84 | 9.06 | 9.69 |
| Adjusted refinery gross margin, less adjusted refinery operating expenses | $7.26 | $2.98 | $14.00 |
| Operating expenses per throughput barrel (10) | $8.83 | $9.17 | $9.53 |
| Adjusted refinery operating expenses per throughput barrel (9) (11) | $8.83 | $8.92 | $9.53 |
| Feedstocks: | |||
| Sweet crude oil | 32% | 34% | 30% |
| Sour crude oil | 44% | 43% | 45% |
| Heavy sour crude oil | 11% | 10% | 11% |
| Wax crude oil | 5% | 6% | 6% |
| Other feedstocks and blends | 8% | 7% | 8% |
| Total | 100% | 100% | 100% |
| Sales of produced refined products: | |||
| Gasolines | 54% | 52% | 54% |
| Diesel fuels | 32% | 32% | 31% |
| Jet fuels | 5% | 6% | 6% |
| Fuel oil | 2% | 2% | 2% |
| Asphalt | 2% | 2% | 2% |
| LPG and other | 5% | 6% | 5% |
| Total | 100% | 100% | 100% |
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Consolidated | |||
| Crude charge (BPD) (1) | 604,350 | 602,080 | 567,540 |
| Refinery throughput (BPD) (2) | 652,080 | 643,250 | 617,010 |
| Sales of produced refined products (BPD) (3) | 638,080 | 637,170 | 602,280 |
| Refinery utilization (4) | 89.1% | 88.8% | 83.7% |
| Average per produced barrel sold: (5) | |||
| Gross margin (6) | $3.39 | $0.24 | $9.41 |
| Operating expenses (7) | 7.84 | 8.20 | 8.55 |
| Adjusted refinery gross margin (8) | $15.37 | $10.43 | $21.06 |
| Less: adjusted refinery operating expenses (9) | 7.84 | 8.05 | 8.55 |
| Adjusted refinery gross margin, less adjusted refinery operating expenses | $7.53 | $2.38 | $12.51 |
| Operating expenses per throughput barrel (10) | $7.67 | $8.12 | $8.35 |
| Adjusted refinery operating expenses per throughput barrel (9) (11) | $7.67 | $7.98 | $8.35 |
| Feedstocks: | |||
| Sweet crude oil | 40% | 42% | 42% |
| Sour crude oil | 36% | 35% | 34% |
| Heavy sour crude oil | 14% | 13% | 13% |
| Wax crude oil | 3% | 4% | 3% |
| Other feedstocks and blends | 7% | 6% | 8% |
| Total | 100% | 100% | 100% |
| Sales of produced refined products: | |||
| Gasolines | 53% | 53% | 53% |
| Diesel fuels | 31% | 31% | 30% |
| Jet fuels | 6% | 6% | 6% |
| Fuel oil | 2% | 1% | 1% |
| Asphalt | 2% | 3% | 3% |
| Base oils | 2% | 2% | 2% |
| LPG and other | 4% | 4% | 5% |
| Total | 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” in Item 7 of Part II of this Annual Report on Form 10-K.
(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)Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by sales volumes of produced refined products.
(8)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” in Item 7 of Part II of this Annual Report on Form 10-K.
(9)Adjusted refinery operating expenses is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” in Item 7 of Part II of this Annual Report on Form 10-K.
(10)Represents total Refining segment Operating expenses, exclusive of Depreciation and amortization, divided by refinery throughput.
(11)Represents total Refining segment adjusted refinery operating expenses, exclusive of Depreciation and amortization, divided by refinery throughput.
Renewables Segment Operating Data
The following table sets forth information, including non-GAAP performance measures, about our renewables operations. Adjusted renewables gross margin per produced gallon sold is total Renewables segment gross margin plus Lower of cost or market inventory valuation adjustments, Depreciation and amortization and Operating expenses, divided by sales volumes of produced renewables products. 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” in Item 7 of Part II of this Annual Report on Form 10-K.
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Renewables | |||
| Sales of produced renewables products (in thousand gallons) | 213,713 | 255,639 | 215,510 |
| Average per produced gallon sold: (1) | |||
| Gross margin (2) | $(0.60) | $(0.33) | $(0.59) |
| Adjusted renewables gross margin (3) | $0.26 | $0.33 | $0.50 |
| Less: operating expenses (4) | 0.42 | 0.39 | 0.51 |
| Adjusted renewables gross margin, less operating expenses | $(0.16) | $(0.06) | $(0.01) |
(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” in Item 7 of Part II of this Annual Report on Form 10-K.
(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” in Item 7 of Part II of this Annual Report on Form 10-K.
(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” in Item 7 of Part II of this Annual Report on Form 10-K.
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Marketing | |||
| Number of branded sites at period end (1) | 1,744 | 1,627 | 1,540 |
| Sales of refined products (in thousand gallons) | 1,328,006 | 1,376,291 | 1,441,607 |
| Average per gallon sold: (2) | |||
| Gross margin (3) | $0.08 | $0.06 | $0.05 |
| Adjusted marketing gross margin (4) | $0.11 | $0.08 | $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” in Item 7 of Part II of this Annual Report on Form 10-K.
(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” in Item 7 of Part II of this Annual Report on Form 10-K.
Lubricants & Specialties Segment Operating Data
The following table sets forth information about our lubricants and specialties operations.
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Lubricants & Specialties | |||
| Sales of produced refined products (BPD) | 30,733 | 32,100 | 30,210 |
| Sales of produced refined products: | |||
| Finished products | 50% | 48% | 50% |
| Base oils | 26% | 26% | 27% |
| Other | 24% | 26% | 23% |
| Total | 100% | 100% | 100% |
Midstream Segment Operating Data
The following table sets forth information about our midstream operations.
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Midstream | |||
| Volumes (BPD) | |||
| Pipelines: | |||
| Affiliates—refined product pipelines | 151,879 | 166,722 | 152,462 |
| Affiliates—intermediate pipelines | 139,563 | 146,643 | 110,720 |
| Affiliates—crude pipelines | 437,281 | 453,606 | 437,586 |
| 728,723 | 766,971 | 700,768 | |
| Third parties—refined product pipelines | 38,995 | 39,721 | 38,834 |
| Third parties—crude pipelines | 188,347 | 204,202 | 197,659 |
| 956,065 | 1,010,894 | 937,261 | |
| Terminals and loading racks: | |||
| Affiliates | 1,014,900 | 988,566 | 930,264 |
| Third parties | 37,524 | 37,728 | 42,567 |
| 1,052,424 | 1,026,294 | 972,831 | |
| Total for pipelines and terminal assets (BPD) | 2,008,489 | 2,037,188 | 1,910,092 |
Summary
Net income attributable to HF Sinclair stockholders for the year ended December 31, 2025 was $579 million ($3.08 per basic and diluted share), a $402 million increase compared to net income of $177 million ($0.91 per basic and diluted share) for the year ended December 31, 2024. The increase in Net income attributable to HF Sinclair stockholders was principally driven by higher adjusted refinery gross margins. Adjusted refinery gross margin for the year ended December 31, 2025 increased to $15.37 per produced barrel sold from $10.43 for the year ended December 31, 2024, primarily due to lower crude oil and feedstock prices and the grant of small refinery RINs waivers, partially offset by lower average sales prices per barrel. Small refinery RINs waivers increased adjusted refinery gross margins by $485 million, of which $203 million was recognized in Cost of materials and other and $282 million was recognized in Sales and other revenues. Lower of cost or market inventory valuation adjustments decreased pre-tax earnings by $417 million for the year ended December 31, 2025 and increased pre-tax earnings by $43 million for the year ended December 31, 2024.
Sales and Other Revenues
Sales and other revenues decreased 6% from $28,580 million for the year ended December 31, 2024 to $26,869 million for the year ended December 31, 2025, principally due to decreased refined product sales prices. Sales and other revenues included $551 million, $3,142 million, $2,519 million and $121 million in unaffiliated revenues related to our Renewables, Marketing, Lubricants & Specialties and Midstream segments, respectively, for the year ended December 31, 2025. Sales and other revenues included $644 million, $3,428 million, $2,700 million and $107 million in unaffiliated revenues related to our Renewables, Marketing, Lubricants & Specialties and Midstream segments, respectively, for the year ended December 31, 2024.
Cost of Materials and Other
Cost of materials and other, exclusive of Lower of cost or market inventory valuation adjustments, decreased 11% from $24,582 million for the year ended December 31, 2024 to $21,760 million for the year ended December 31, 2025, principally due tolower crude oil and feedstock prices. Within our Lubricants & Specialties segment, FIFO impact was a charge of $8 million and $45 million for the years ended December 31, 2025 and 2024, respectively.
During the year ended December 31, 2025, we recognized a lower of cost or market inventory valuation adjustment charge of $417 million compared to a benefit of $43 million for the year ended December 31, 2024.
Adjusted Refinery Gross Margins
Adjusted refinery gross margin per barrel sold increased 47% from $10.43 for the year ended December 31, 2024 to $15.37 for the year ended December 31, 2025. Theincrease was primarilydue to lower crude oil and feedstock prices and the grant of small refinery RINs waivers, partially offset by lower average sales prices per barrel. Adjusted refinery gross margin per barrel excludes the non-cash effects of Lower of cost or market inventory valuation adjustments and Depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” in Item 7 of Part II of this Annual Report on Form 10-K.
Operating Expenses
Operating expenses decreased 4% from $2,484 million for the year ended December 31, 2024 to $2,391 million for the year ended December 31, 2025, primarily due to lower maintenance, regulatory and other miscellaneous costs, partially offset by higher natural gas costs.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 2% from $447 million for the year ended December 31, 2024 to $456 million for the year ended December 31, 2025, primarily due to higher compensation and benefit costs and foreign currency transaction losses, partially offset by lower professional service costs.
Depreciation and Amortization Expenses
Depreciation and amortization increased 9% from $832 million for the year ended December 31, 2024 to $909 million for the year ended December 31, 2025. This increase was principally due to additional capitalized refinery turnaround costs and capitalized improvement projects as compared to the prior period.
Other Operating Expenses, Net
During the year ended December 31, 2025, we incurred decommissioning and closure costs of $8 million, other miscellaneous costs of $9 million and asset impairments of $3 million. These costs were partially offset by a gain of $11 million from a legal settlement related to winter storm Uri, which occurred in the first quarter of 2021. During the year ended December 31, 2024, we incurred asset impairment charges totaling$17 million, primarily related to certain logistics assets in our Midstream segment and other assets in our Refining segment.
Earnings of Equity Method Investments
For the year ended December 31, 2025, we recorded net earnings of $33 million compared to net earnings of$32 million for the year ended December 31, 2024. This increase is primarily due to improved performance in our Pioneer Pipeline and Osage Pipeline investments, partially offset by the assignment of our ownership interest in certain of our joint venture investments.
Interest Income
Interest income was$42 million for the year ended December 31, 2025 compared to $75 million for the year ended December 31, 2024. The decrease in interest income was primarily due to the decrease in average cash balance.
Interest Expense
Interest expense was $217 million for the year ended December 31, 2025 compared to $165 million for the year ended December 31, 2024. This increase was primarily due to unrealized losses on precious metals financing arrangements during the period.
Other Income (Expense), Net
Other income (expense), net was $(53) million for the year ended December 31, 2025 compared to $15 million for the year ended December 31, 2024. During the year ended December 31, 2025, we assigned certain of our equity ownership interests to other parties, resulting in a loss on sale of equity method investments of $47 million. Additionally, during the year ended December 31, 2025, we recognized a $24 million loss on early extinguishment of debt, inclusive of unamortized discount and debt issuance costs, as a result of the tender and redemption of certain debt, and the termination of certain credit agreements (see Note 13 “Debt” in the Notes to the Consolidated Financial Statements for additional information).
Income Taxes
For the year ended December 31, 2025, we recorded income tax expense of $146 million compared to $34 million for the year ended December 31, 2024. This increase was principally due to higher pre-tax earnings during the year ended December 31, 2025 compared to the year ended December 31, 2024. Our effective tax rates were 19.9% and 15.6% for the years ended December 31, 2025 and 2024, respectively. The difference between the U.S federal statutory rate and the effective tax rate for the year ended December 31, 2025 was primarily due to the relationship between pre-tax earnings and the benefits of nontaxable renewable fuel incentives and foreign tax effects, partially offset by state taxes and other nondeductible items. The difference between the U.S. federal statutory rate and the effective tax rate for the year ended December 31, 2024 was primarily due to the relationship between pre-tax earnings and benefits attributable to nontaxable renewable fuel incentives offset by an increase in state income taxes and unrecognized tax benefits.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.