HF Sinclair — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income attributable to stockholders of $2,015 million ($11.38 per diluted share) for the quarter ended September 30, 2026, compared to $403 million ($2.15 per diluted share) in the same period in 2025.
• Adjusted net income attributable to stockholders was $2,079 million ($11.75 per diluted share) for the quarter, compared to $459 million ($2.44 per diluted share) in 2025.
• Consolidated sales and other revenues were $10,857 million for the quarter, a 50% increase from $7,251 million in 2025.
• Reported EBITDA was $2,954 million and Adjusted EBITDA was $2,984 million for the quarter, compared to $796 million and $870 million, respectively, in 2025.
• Net cash provided by operations totaled $1,784 million for the quarter.
• Cash and cash equivalents increased to $3,333 million at September 30, 2026, from $978 million at December 31, 2025.
• Consolidated debt was $2,774 million at September 30, 2026, compared to $2,769 million at December 31, 2025.
• Total operating costs and expenses were $8,185 million for the quarter, up 22% from $6,687 million in 2025.
• Income from operations was $2,672 million for the quarter, compared to $564 million in 2025.

Guidance and Future Outlook:

• Management stated a continued focus on safe and reliable operations, advancing strategic priorities, and positioning the company to create long-term value.
• The Planned Separation of the Lubricants & Specialties segment is expected to be executed in a tax-efficient manner, substantially completed over the course of 2027.
• The separation is expected to take the form of a distribution of at least 80.1% of the Lubricants & Specialties company's stock.
• The Mississauga Asset Retirement is expected to be substantially completed in the second half of 2027.

Business Segments and Product Lines:

• Refining: Income before interest and income taxes was $2,435 million for the quarter, compared to $476 million in 2025. Adjusted EBITDA was $2,582 million, up from $661 million in 2025. Adjusted refinery gross margin was $54.22 per produced barrel sold, a 183% increase from $19.16 in 2025. Crude charge averaged 614,060 BPD, down from 639,050 BPD in 2025. Stronger sales in the West region were offset by lower sales in the Mid-Continent region due to a planned turnaround at the El Dorado refinery.
• Renewables: Income before interest and income taxes was $123 million for the quarter, compared to a loss of $55 million in 2025. Adjusted EBITDA was $109 million, compared to a loss of $13 million in 2025. Total sales volumes were 63 million gallons, up from 57 million gallons in 2025. Adjusted gross margins increased due to improved RINs prices, higher Producer's Tax Credit benefits, and increased sales volumes.
• Marketing: Income before interest and income taxes was $31 million for the quarter, compared to $22 million in 2025. EBITDA was $39 million, up from $29 million in 2025. Total branded fuel sales volumes were 420 million gallons, up from 360 million gallons in 2025.
• Lubricants & Specialties: Income before interest and income taxes was $38 million for the quarter, compared to $52 million in 2025. Adjusted EBITDA was $174 million, up from $78 million in 2025. Results included special items related to the Mississauga Refinery retirement: a $27 million impairment charge, $28 million in severance costs, and $54 million in incremental accelerated depreciation and amortization. A FIFO benefit of $22 million was recognized, compared to $2 million in 2025.
• Midstream: Income before interest and income taxes was $87 million for the quarter, compared to $98 million in 2025. Adjusted EBITDA was $101 million, compared to $114 million in 2025.

Market and Competitive Landscape:

• Refining segment performance was driven principally by tight supply of transportation fuels, elevated crack spreads, and benefits from small refinery RINs waivers granted by the EPA.
• The company markets refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest, and neighboring Plains states.
• HF Sinclair supplies high-quality fuels to more than 1,850 branded stations and licenses the Sinclair brand to more than 350 additional locations.
• In August 2026, the company entered into a joint venture with affiliates of Phillips 66 and Kinder Morgan to form the proposed Western Gateway Pipeline system.
• In February 2026, the company formed the joint venture Green Trail Fuels, LLC, holding a 50% non-operating economic interest in various retail sites across Colorado, New Mexico, and Oklahoma.

Risks and Challenges:

• The press release includes a standard "safe harbor" statement noting that forward-looking statements involve risks and uncertainties, including those detailed in SEC filings.
• Specific risks mentioned include demand and supply fluctuations for feedstocks and products, regulatory and environmental compliance, potential asset impairments, and the possibility that the Planned Separation may not be completed on the contemplated terms or timeline.
• Risks also include operational disruptions due to weather, accidents, cyberattacks, or global hostilities, as well as the potential for asset retirements to incur significant costs beyond expectations.

Management Commentary and Tone:

• CEO Franklin Myers commented that the third quarter performance reflects the strength and continued focus on safe, reliable execution of all businesses.
• Management highlighted the return of $572 million to stockholders through dividends and share repurchases as reinforcing their commitment to disciplined capital allocation.
• The tone was confident regarding operational execution and the strategic positioning for long-term value creation.

Other Key Points:

• The company returned $572 million to stockholders in the third quarter, consisting of $93 million in dividends and $479 million in share repurchases.
• The Board declared a regular quarterly dividend of $0.525 per share, payable on December 2, 2026, to holders of record on November 12, 2026.
• Capital expenditures for the quarter totaled $137 million.
• The company announced plans in July 2026 to pursue the separation of the Lubricants & Specialties segment.
• The company reported a FIFO benefit of $22 million in the Lubricants & Specialties segment for the quarter.
• The Renewables segment recognized a Lower of cost or market inventory valuation adjustment benefit of $30 million.