Core Insights - HF Sinclair reported $7.25 billion in revenue for Q3 2025, a year-over-year increase of 0.6%, with an EPS of $2.44 compared to $0.51 a year ago, exceeding Zacks Consensus Estimates for revenue and EPS [1] - The company demonstrated strong performance metrics, with a stock return of +3.8% over the past month, outperforming the S&P 500 composite's +3.6% change, and holds a Zacks Rank 1 (Strong Buy) [3] Financial Performance - Revenue of $7.25 billion surpassed the Zacks Consensus Estimate of $7.02 billion, resulting in a surprise of +3.33% [1] - EPS of $2.44 exceeded the consensus estimate of $1.94, leading to an EPS surprise of +25.77% [1] - Consolidated average per produced barrel adjusted refinery gross margin was $19.16, above the $16.42 average estimate [4] - Sales of produced refined products totaled 661.14 million barrels, slightly below the estimated 667.52 million barrels [4] Regional Performance - In the West Region, the average per produced barrel adjusted refinery gross margin was $20.38, exceeding the estimated $18.05 [4] - Mid-Continent Region sales of produced refined products reached 281.04 million barrels, surpassing the estimate of 275.08 million barrels [4] - Average per produced barrel adjusted refinery gross margin in the Mid-Continent Region was $17.5, compared to the $14.12 estimate [4] Revenue Breakdown - Sales and other revenues from lubricants and specialties were $655 million, below the estimate of $704.88 million, reflecting a year-over-year decline of -4.5% [4] - Midstream revenues were $160 million, slightly below the estimated $165.38 million, representing a -2.4% change year-over-year [4] - Marketing revenues were $898 million, slightly above the estimate of $893.54 million, with a year-over-year change of -5.5% [4] - Refining revenues were reported at $6.44 billion, exceeding the estimate of $4.4 billion, with a +1% change year-over-year [4] - Renewables revenues reached $277 million, significantly above the estimate of $170.97 million, marking a +4.4% change year-over-year [4] - Corporate, Other and Eliminations reported revenues of -$1.18 billion, slightly below the estimate of -$1.15 billion, reflecting a -4.7% change year-over-year [4]

Financial Data and Key Metrics Changes - HF Sinclair reported a third quarter net income attributable to shareholders of $403 million, or $2.15 per diluted share, with adjusted net income of $459 million, or $2.44 per diluted share, compared to $96 million, or $0.51 per diluted share, for the same period in 2024 [13][14] - Adjusted EBITDA for the third quarter was $870 million, up from $316 million in the third quarter of 2024 [13] - The company returned $254 million in cash to shareholders, consisting of $160 million in share repurchases and $94 million in dividends [9][12] Business Line Data and Key Metrics Changes - In the refining segment, adjusted EBITDA was $661 million, significantly up from $110 million in the same quarter of 2024, driven by higher gross margins [14] - The marketing segment reported record EBITDA of $29 million, an increase from $22 million in the third quarter of 2024, attributed to high margins and improved store mix [16] - The lubricants and specialty segments reported EBITDA of $78 million, slightly up from $76 million in the same quarter of 2024, driven by improved mix and FIFO benefits [16] Market Data and Key Metrics Changes - Total sales volumes were 57 million gallons for the third quarter of 2025, down from 69 million gallons in the same quarter of 2024 [16] - Crude oil charge averaged 639,000 barrels per day for the third quarter, marking the second highest quarter on record [15] Company Strategy and Development Direction - HF Sinclair is focusing on expanding its midstream refined products footprint across PADD 4 and PADD 5 to address supply and demand imbalances in key Western U.S. markets [10][11] - The company is evaluating a multi-phased expansion projected to enable incremental supply of up to 150,000 barrels per day into various West Coast markets [11] - Strategic projects include the CARB project at the PSR refinery and a jet project to enhance flexibility in product output [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the refining market, citing a global shortfall of approximately 800,000 barrels per day and supportive demand for distillate fuels [26][29] - The company anticipates continued strong performance in refining margins due to ongoing supply constraints and increasing demand [27][29] - Management remains committed to returning excess cash to shareholders while maintaining an investment-grade balance sheet [9][12] Other Important Information - HF Sinclair issued $500 million of senior notes at 5.5% due 2032 to redeem higher interest notes, allowing for a reduction in the weighted average cost of debt [17] - The company has approximately $1.5 billion in cash and a debt-to-cap ratio of 23% as of September 30, 2025 [17] Q&A Session Summary Question: Can you elaborate on the multi-phased expansion targeting PADD 4 and PADD 5? - Management believes they are strategically positioned due to existing infrastructure and the ability to quickly deliver refined products to markets facing shortages [21][24] Question: What is the outlook for refining margins in the near term? - Management is bullish on refining margins, expecting continued support from demand for distillate fuels and low product inventories [25][27] Question: Can you clarify the impact of small refinery exemptions (SREs) on your financials? - The $115 million benefit from SREs is reflected in cost of sales, while the $56 million is from trading benefits associated with RINs [35][46] Question: How do you plan to finance the pipeline expansion projects? - Management indicated multiple financing options, including liquidity on the balance sheet and potential joint ventures [60][61] Question: What is the current state of the lubricants market and M&A opportunities? - The lubricants market is performing well, and the company continues to explore bolt-on acquisitions to enhance its portfolio [73][76]

Financial Data and Key Metrics Changes - HF Sinclair reported third quarter net income attributable to shareholders of $403 million, or $2.15 per diluted share, with adjusted net income of $459 million, or $2.44 per diluted share, compared to $96 million, or $0.51 per diluted share, for the same period in 2024 [13][14] - Adjusted EBITDA for the third quarter was $870 million, up from $316 million in the third quarter of 2024 [14] - Net cash provided by operations totaled $809 million, including $31 million of turnaround spend, with capital expenditures of $121 million for the quarter [17] Business Line Data and Key Metrics Changes - In the refining segment, adjusted EBITDA was $661 million, compared to $110 million in the third quarter of 2024, driven by higher gross margins [14] - The marketing segment reported record EBITDA of $29 million, up from $22 million in the third quarter of 2024, primarily due to high margins [16] - The lubricants and specialty segments reported EBITDA of $78 million, slightly up from $76 million in the same period last year, driven by improved mix and FIFO benefits [16] Market Data and Key Metrics Changes - Total sales volumes were 57 million gallons for the third quarter of 2025, down from 69 million gallons for the same period in 2024 [16] - Crude oil charge averaged 639,000 barrels per day for the third quarter, the second highest quarter on record [15] Company Strategy and Development Direction - HF Sinclair is focused on expanding its midstream refined products footprint across PADD 4 and PADD 5 to address supply and demand imbalances in key Western U.S. markets [10][11] - The company is evaluating a multi-phased expansion projected to enable incremental supply of up to 150,000 barrels a day into various West Coast markets [11] - Strategic projects include the CARB project at the Puget Sound Refinery and a new jet project to enhance flexibility in product output [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about refining margins, citing a global shortfall of approximately 800,000 barrels a day and supportive demand for distillate products [26][29] - The company anticipates continued strong performance in refining and marketing segments, with a focus on reliability and integration [12][100] Other Important Information - HF Sinclair returned $254 million in cash to shareholders in the quarter, consisting of $160 million in share repurchases and $94 million in dividends [9] - The company has returned over $4.5 billion in cash to shareholders since the Sinclair acquisition in March 2022 [9] Q&A Session Summary Question: Can you elaborate on the multi-phased expansion targeting PADD 4 and PADD 5? - Management believes they are strategically positioned due to existing infrastructure and the ability to debottleneck or expand to meet market demands, especially with refinery closures in California [21][24] Question: What is the outlook for refining margins in the near term? - Management is bullish on refining margins, expecting demand for distillate products to remain strong, supported by low product inventories and geopolitical factors [26][29] Question: Can you clarify the impact of small refinery exemptions (SREs) on your financials? - The $115 million benefit from SREs is reflected in cost of sales, while the $56 million is from trading benefits associated with RINs [35][46] Question: How do you plan to finance the pipeline expansion projects? - Management indicated multiple financing options, including liquidity on the balance sheet and potential joint ventures, but specifics will be determined closer to final investment decisions [59][60] Question: What is the current state of the lubricants market and M&A opportunities? - The lubricants market is performing well, and the company continues to explore bolt-on acquisitions to enhance its portfolio [75][78]

Financial Data and Key Metrics Changes - HF Sinclair reported third quarter net income attributable to shareholders of $403 million, or $2.15 per diluted share, with adjusted net income of $459 million, or $2.44 per diluted share, compared to $96 million, or $0.51 per diluted share, for the same period in 2024 [12][13] - Adjusted EBITDA for the third quarter was $870 million, up from $316 million in the third quarter of 2024 [12][13] - The company returned $254 million in cash to shareholders, consisting of $160 million in share repurchases and $94 million in dividends [5][8] Business Line Data and Key Metrics Changes - In the refining segment, adjusted EBITDA was $661 million, compared to $110 million in the third quarter of 2024, driven by higher gross margins and small refinery RINs waivers [12][13] - The marketing segment achieved record EBITDA of $29 million, up from $22 million in the third quarter of 2024, attributed to high margins and improved store mix [14] - The lubricants and specialty segments reported EBITDA of $78 million, slightly up from $76 million in the same period last year, driven by improved mix and FIFO benefits [15] Market Data and Key Metrics Changes - Total sales volumes were 57 million gallons for the third quarter of 2025, down from 69 million gallons in the third quarter of 2024 [14] - Crude oil charge averaged 639,000 barrels per day for the third quarter, marking the second highest quarter on record [13] Company Strategy and Development Direction - HF Sinclair is focusing on expanding its midstream refined products footprint across PADD 4 and PADD 5 to address supply and demand imbalances in key Western U.S. markets [9][10] - The company is evaluating a multi-phased expansion projected to enable incremental supply of up to 150,000 barrels per day into various West Coast markets [10] - Strategic projects include enhancing the Puget Sound Refinery's capabilities to produce CARB gasoline and jet fuel, providing flexibility to meet market demands [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the refining market, citing a global shortfall of approximately 800,000 barrels per day and supportive demand for distillate fuels [24][26] - The company anticipates continued strong refining margins into 2026, driven by demand growth outpacing supply growth [26][27] - Management emphasized the importance of reliability, integration, and optimization in driving future growth across all business segments [11][120] Other Important Information - HF Sinclair's cash balance was approximately $1.5 billion as of September 30, 2025, with a debt-to-cap ratio of 23% and net debt-to-cap ratio of 11% [16] - The company plans to spend approximately $775 million in sustaining capital and $100 million in growth capital investments for the full year 2025 [17] Q&A Session Summary Question: Can you elaborate on the multi-phased expansion targeting PADD 4 and PADD 5? - Management believes they are strategically positioned due to existing infrastructure and the ability to deliver products competitively in light of refinery closures in California [21][22] Question: What is the outlook for refining margins in the near term? - Management is bullish on refining margins, citing strong demand for distillate fuels and low product inventories as supportive factors [24][26] Question: Can you clarify the impact of small refinery exemptions (SREs) on your financials? - The $115 million benefit from SREs was a direct result of waivers granted by the EPA, while the $56 million was related to trading benefits from RINs [30][32] Question: How do you plan to finance the pipeline expansion projects? - Management indicated multiple financing options, including liquidity on the balance sheet and potential joint venture partnerships [61][63] Question: What is the expected capital spending for the business? - Management confirmed that capital spending is on track with guidance, expecting lower costs and fewer turnarounds in 2026 [105][106]

Financial Performance - Net income attributable to HF Sinclair stockholders for Q3 2025 was $403 million, or $2.15 per diluted share, compared to a net loss of $76 million, or $(0.40) per diluted share, in Q3 2024[2]. - Adjusted net income for Q3 2025 was $459 million, or $2.44 per diluted share, compared to $96 million, or $0.51 per diluted share, in Q3 2024[2]. - Net income attributable to HF Sinclair stockholders increased by 55% to $607 million, up from $391 million in 2024[16]. - Basic earnings per share increased by 60% to $3.21 from $2.01[16]. - EBITDA rose by 40% to $1,574 million compared to $1,124 million in 2024[16]. - Adjusted EBITDA increased by 55% to $1,736 million from $1,121 million[16]. - For the three months ended September 30, 2025, net income attributable to HF Sinclair stockholders was $403 million, compared to a loss of $76 million in the same period of 2024[53]. - EBITDA for the three months ended September 30, 2025, was $796 million, significantly up from $99 million in the same period of 2024[53]. Revenue and Sales - Total sales and other revenues for Q3 2025 were $7,251 million, a 1% increase from $7,207 million in Q3 2024[15]. - Revenues from external customers for Q3 2025 reached $7,251 million, an increase from $7,207 million in Q3 2024, representing a growth of 0.6%[25]. - Sales and other revenues decreased by 8% to $20,405 million compared to $22,080 million in 2024[16]. - Refining segment sales and other revenues for Q3 2025 were $6,443 million, a slight increase from $6,382 million in Q3 2024[61]. - Renewables segment sales and other revenues for Q3 2025 were $277 million, up from $265 million in Q3 2024[64]. - Marketing segment sales and other revenues for Q3 2025 were $898 million, a decrease from $950 million in Q3 2024[67]. Segment Performance - Refining segment income before interest and income taxes was $476 million for Q3 2025, a significant recovery from a loss of $212 million in Q3 2024[3]. - The Renewables segment reported a loss before interest and income taxes of $55 million in Q3 2025, compared to a loss of $23 million in Q3 2024[4]. - The Midstream segment income before interest and income taxes increased to $98 million in Q3 2025, up from $80 million in Q3 2024[8]. - The refining segment reported an EBITDA of $615 million for the three months ended September 30, 2025, compared to a negative EBITDA of $89 million in 2024[54]. - The Marketing segment's EBITDA for the three months ended September 30, 2025, was $29 million, up from $22 million in the same period of 2024[57]. - The Lubricants & Specialties segment reported an EBITDA of $78 million for the three months ended September 30, 2025, compared to $76 million in 2024[58]. Cost and Expenses - Cost of materials and other decreased by 12% to $16,608 million from $18,835 million[16]. - Cost of sales for Q3 2025 was $6,348 million, compared to $6,990 million in Q3 2024, indicating a decrease of 9.2%[25]. - Selling, general and administrative expenses for Q3 2025 were $105 million, compared to $118 million in Q3 2024, a reduction of 11.0%[25]. - Operating expenses per throughput barrel in the Mid-Continent region for the three months ended September 30, 2025, were $5.88, a decrease from $6.45 in 2024, indicating improved cost efficiency[31]. - Operating expenses per throughput barrel decreased to $7.12 in Q3 2025 from $8.12 in Q3 2024, a reduction of 12.3%[44]. Cash Flow and Capital Expenditures - Net cash provided by operations totaled $809 million for Q3 2025, with cash and cash equivalents increasing to $1,451 million[9]. - Capital expenditures in Q3 2025 totaled $121 million, slightly down from $124 million in Q3 2024[25]. - Capital expenditures for the nine months ended September 30, 2025, amounted to $318 million, up from $297 million in the same period of 2024, reflecting an increase of approximately 7.1%[26]. Shareholder Returns - The company returned $254 million to shareholders through dividends and share repurchases in Q3 2025[6]. - The regular quarterly dividend announced was $0.50 per share, payable on December 5, 2025[10]. Taxation - The income tax expense for the nine months ended September 30, 2025, was $160 million, up from $52 million in 2024[73]. - The effective income tax rate for GAAP financial statements for the three months ended September 30, 2025, was 23.3%, compared to 43.6% in 2024[73]. - The adjusted effective tax rate for the three months ended September 30, 2025, was 23.4%, while it was (14.3)% in 2024[73]. Operational Metrics - The average gross margin per produced barrel sold in the Mid-Continent region for the three months ended September 30, 2025, was $8.08, a significant improvement from $(3.91) in the same period of 2024[31]. - The refinery utilization rate for the Mid-Continent region was 107.8% for the three months ended September 30, 2025, compared to 101.2% in 2024, demonstrating enhanced operational performance[31]. - Consolidated refinery throughput for Q3 2025 was 681,080 BPD, compared to 649,750 BPD in Q3 2024, reflecting a 4.8% increase[33]. - Crude charge in the West Region for Q3 2025 was 358,810 BPD, up from 343,840 BPD in Q3 2024, representing a 4.3% increase[32]. Future Outlook - The company plans to continue focusing on refining performance and market expansion strategies to enhance overall profitability[60].

Core Insights - HF Sinclair Corporation reported a net income of $403 million, or $2.15 per diluted share, for Q3 2025, a significant recovery from a net loss of $76 million, or $(0.40) per diluted share, in Q3 2024 [1] Financial Performance - The company achieved a net income of $403 million for the quarter ended September 30, 2025 [1] - This represents a turnaround from the previous year's net loss of $76 million for the same quarter [1] - Earnings per diluted share improved from $(0.40) in Q3 2024 to $2.15 in Q3 2025 [1]

Core Viewpoint - HF Sinclair is considering a strategic expansion of its midstream refined products footprint across the Rocky Mountain and West Coast regions [1] Company Summary - HF Sinclair is a U.S. refiner exploring opportunities for growth in the midstream sector [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: HF Sinclair (DINO) - HF Sinclair currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Price Performance - Over the past week, DINO shares increased by 5.17%, while the Zacks Oil and Gas - Refining and Marketing industry rose by 6.12% [5] - In the last quarter, DINO shares have risen by 25.03%, and over the past year, they are up 27.66%, significantly outperforming the S&P 500, which increased by 7.9% and 19.67% respectively [6] Trading Volume - DINO's average 20-day trading volume is 1,688,161 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 5 earnings estimates for DINO have been revised upwards, increasing the consensus estimate from $2.80 to $4.41 [9] - For the next fiscal year, 5 estimates have moved higher, while 1 has been revised downwards [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, DINO is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Group 1: Cenovus Energy Inc. (CVE) - Cenovus Energy Inc. is an explorer and producer of crude oil, natural gas, and natural gas liquids [1] - The company has a Zacks Rank of 1 and a Value Score of A [1] - The Zacks Consensus Estimate for its current year earnings has increased by 16.9% over the last 60 days [1] - Cenovus has a price-to-earnings ratio (P/E) of 11.63, compared to 11.70 for the industry [1] Group 2: HF Sinclair Corporation (DINO) - HF Sinclair Corporation is an independent energy company [2] - The company holds a Zacks Rank of 1 and has a Value Score of B [2] - The Zacks Consensus Estimate for its current year earnings has increased by 53.6% over the last 60 days [2] - HF Sinclair has a price-to-earnings ratio (P/E) of 12.07, compared to 24.48 for the S&P 500 [2] Group 3: Kinross Gold Corporation (KGC) - Kinross Gold Corporation is a gold-mining company [3] - The company has a Zacks Rank of 1 and a Value Score of B [3] - The Zacks Consensus Estimate for its current year earnings has increased by 9.9% over the last 60 days [3] - Kinross has a price-to-earnings ratio (P/E) of 17.43, compared to 24.48 for the S&P 500 [3]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with value investing being a popular strategy for finding great stocks in various market conditions [1] - HF Sinclair (DINO) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and an A grade for Value [2] Valuation Metrics - DINO has a Price-to-Book (P/B) ratio of 1.05, which is attractive compared to the industry average of 1.92. Over the past year, DINO's P/B has fluctuated between a high of 1.06 and a low of 0.53, with a median of 0.76 [3] - The Price-to-Sales (P/S) ratio for DINO is 0.35, which is also favorable when compared to the industry's average P/S of 0.39. This metric is preferred by some investors as it is less susceptible to manipulation [4] Investment Outlook - The combination of the above valuation metrics suggests that HF Sinclair is likely undervalued at present. Considering its strong earnings outlook, DINO stands out as one of the strongest value stocks in the market [5]