HF Sinclair(US:DINO)2025-05-01 17:08Financial Performance - For the three months ended March 31, 2025, HF Sinclair Corporation reported sales and other revenues of $6,370 million, a decrease of 9.3% compared to $7,027 million in the same period of 2024[28]. - The net loss attributable to HF Sinclair stockholders for Q1 2025 was $4 million, compared to a net income of $315 million in Q1 2024, representing a significant decline[28]. - Revenues from external customers for the first quarter of 2025 totaled $6,370 million, a decrease from $7,027 million in the first quarter of 2024, representing a decline of approximately 9.3%[143]. - Net income for the three months ended March 31, 2025, was a loss of $2 million compared to a net income of $317 million for the same period in 2024[50]. - The company reported a net loss attributable to stockholders of $4 million, compared to a net income of $315 million for the same period last year[143]. - Operating income fell by 80% to $81 million in Q1 2025 compared to $411 million in Q1 2024[155]. - EBITDA decreased by 58% to $262 million in Q1 2025 from $617 million in Q1 2024[157]. - The company’s basic earnings per share for the three months ended March 31, 2025, was $(0.02), down from $1.57 in the same period of 2024[66]. Assets and Liabilities - Total current assets decreased to $4,987 million as of March 31, 2025, down from $5,014 million at the end of 2024[25]. - Total liabilities remained relatively stable at $7,289 million as of March 31, 2025, compared to $7,297 million at the end of 2024[25]. - HF Sinclair's total equity decreased to $9,253 million as of March 31, 2025, from $9,346 million at the end of 2024[25]. - The company’s accrued liabilities increased to $461 million as of March 31, 2025, compared to $377 million at the end of 2024[73]. - Total debt increased slightly to $2,676 million as of March 31, 2025, from $2,638 million at the end of 2024[156]. Cash Flow and Financing - Cash and cash equivalents at the end of Q1 2025 were $547 million, a decrease of 31.6% from $800 million at the beginning of the period[34]. - The company experienced a net cash used for operating activities of $89 million in Q1 2025, compared to a net cash provided of $317 million in Q1 2024[34]. - Net cash flows used for financing activities for the three months ended March 31, 2025, were $80 million, including $95 million paid in dividends and $350 million repaid under the HEP Credit Agreement[206]. - Liquidity as of March 31, 2025, was approximately $3.4 billion, consisting of $0.5 billion in cash and cash equivalents, an undrawn $1.65 billion credit facility, and $1.2 billion available under the HEP Credit Agreement[196]. Revenue Segments - Refined product revenues for the same period were $5,877 million, down 11.6% from $6,652 million in the prior year[50]. - Transportation fuels revenues decreased to $4,961 million from $5,555 million, reflecting a decline of 10.7%[50]. - The Refining segment includes operations from multiple refineries, with a focus on purchasing and refining crude oil and marketing refined products such as gasoline and diesel fuel[129]. - The Renewables segment encompasses operations from several renewable diesel units, contributing to the company's sustainability efforts[130]. - The Marketing segment includes branded fuel sales and licensing fees, with a significant presence in the West and Mid-Continent regions of the United States[131]. - The Lubricants & Specialties segment includes production operations in Ontario and specialty lubricant products marketed throughout North America[132]. - The Midstream segment operates logistics and refinery assets, including pipelines and terminals, primarily in the Mid-Continent, Southwest, and Rocky Mountains regions[133]. Operational Metrics - The company reported a consolidated refinery utilization rate of 89.4% in Q1 2025, slightly up from 89.2% in Q1 2024[161]. - Refinery throughput in the Mid-Continent region increased to 276,490 BPD in Q1 2025 from 273,890 BPD in Q1 2024, reflecting a utilization rate of 100.2%[160]. - In the West region, refinery throughput increased to 370,090 BPD in Q1 2025 from 369,410 BPD in Q1 2024, with an adjusted gross margin of $10.19 per barrel[161]. - Adjusted refinery gross margin per produced barrel sold in the Mid-Continent region decreased to $7.60 in Q1 2025 from $10.47 in Q1 2024[160]. - Adjusted refinery gross margin per produced barrel sold decreased by 28% from $12.70 in Q1 2024 to $9.12 in Q1 2025[176]. Environmental and Regulatory Matters - Environmental credit obligations increased to $71 million as of March 31, 2025, compared to $17 million at the end of 2024[73]. - The company has ongoing litigation regarding small refinery exemptions, with a favorable decision from the DC Circuit on July 26, 2024, vacating the EPA's denial of all small refinery exemption petitions[121]. - HFS Navajo reached a settlement agreement with the EPA, DOJ, and NMED, resulting in a new consent decree to resolve alleged violations of the Clean Air Act and New Mexico Air Quality Control Act[125]. - Under the 2025 Consent Decree, HFS Navajo is required to pay a total civil penalty of $34 million, with $10 million due to the United States and $10 million to the State of New Mexico within 30 days of the decree's effective date[126]. Shareholder Returns - The company declared dividends of $0.50 per common share, totaling $95 million for the current quarter, compared to $99 million in the same quarter of the previous year[50]. - A regular quarterly dividend of $0.50 per share was declared on May 1, 2025, payable on June 3, 2025[151]. - The company had remaining authorization to repurchase up to $799 million under the May 2024 Share Repurchase Program as of March 31, 2025[111]. - During the three months ended March 31, 2024, the company repurchased 2,930,742 shares for $166 million, while no shares were repurchased in the same period of 2025[111]. Risk Management - The company is exposed to commodity price risk and uses derivative contracts to mitigate price exposure related to crude oil and refined products[213]. - The company maintains various insurance coverages, including general liability and cyber insurance, but is not fully insured against certain risks due to insurability issues[219]. - A risk management oversight committee is in place to monitor the risk environment and mitigate identified risks that may affect goal achievement[221]. - Financial stability of counterparties is regularly reviewed, and no difficulties in honoring commitments under derivative contracts are expected[220].