HF Sinclair Corp

On July 24, 2026, our Board of Directors approved the Mississauga Asset Retirement plan. The Lubricants & Specialties segment will maintain the continued operations of its R&D laboratory, lubricant blending and packaging, as well as supply chain, logistics, and commercial operations, in the Ontario region. HF Sinclair will also continue to deliver base oil solutions through strategic third-party commercial arrangements, complemented by continued access to Group I and specialty products from HF Sinclair’s Tulsa refinery. The Mississauga Asset Retirement is expected to be substantially completed over the course of 2027.

On July 28, 2026, the Corporation notified its employees at the Mississauga Base Oil Plant of the Mississauga Asset Retirement plan. The Mississauga Asset Retirement is expected to result in a workforce reduction of approximately 250 employees. HF Sinclair expects to incur total pre-tax costs of approximately $405 million to $505 million related to the Mississauga Asset Retirement. The pre-tax costs primarily consist of accelerated depreciation, amortization, and asset write-off charges of approximately $360 million to $445 million. Included in accelerated depreciation is approximately $95 million to $175 million of estimated asset retirement obligations that we expect to incur after the closure of the Mississauga Base Oil Plant. Additionally, we expect to incur employee retention, severance and separation costs of approximately $40 million to $50 million and contract termination charges of approximately $5 million to $10 million. HF Sinclair does not expect to recognize these charges or incur the related cash outflows all at once, but over time through the completion of the Mississauga Asset Retirement.

Given that HF Sinclair is in the early stages of the process, the amount and timing of some of these expected costs are uncertain, subject to a number of assumptions and may differ materially from the estimates provided above. HF Sinclair will disclose in another periodic filing with the SEC, if appropriate, the amount of any other related charges or costs, or material updates to any stated charges or costs, once they are determinable.