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 Data and Key Metrics Changes - For the first quarter of 2025, the company reported a consolidated net loss of $105 million and a loss per share of $1.22, with EBITDA also reflecting a loss of $61 million [5][13] - Adjusted EBITDA for the quarter was $24 million, while adjusted loss per share was $0.58 [13] - The negative mark to market impact on outstanding RFS obligations was $112 million, with a favorable inventory valuation impact of $24 million [13] Business Line Data and Key Metrics Changes - In the Petroleum segment, total throughput for Q1 2025 was approximately 125,000 barrels per day, with a light product yield of 95% [5][6] - Adjusted EBITDA for the Petroleum segment was a loss of $30 million, driven by reduced throughput volumes due to planned and unplanned downtime [13] - The Renewables segment achieved an adjusted EBITDA of $3 million, an improvement from a negative $5 million in the prior year, primarily due to higher throughput volumes and increased RIN prices [11][14] - The Fertilizer segment reported an adjusted EBITDA of $53 million, supported by higher UAN sales volumes and ammonia sales prices [14] Market Data and Key Metrics Changes - Group 3 2-1-1 benchmark cracks averaged $17.65 per barrel in Q1 2025, down from $19.55 per barrel in the same period last year [6] - Average RIN prices were approximately $0.84, an increase of over 25% from the previous year [6] - Days of gasoline supply were reported to be 12% below the five-year average, while diesel supply was 17% below [19] Company Strategy and Development Direction - The company plans to ramp up refinery operations to full rates over the second quarter of 2025, with no additional turnarounds planned until 2027 [6][17] - The company is focusing on reducing debt and restoring balance sheet leverage ratios while looking for ways to improve capture and reduce costs [25] - The company is optimistic about the potential for increased jet fuel production, which is not subject to RVO, thereby reducing annual RIN obligations [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that refining market conditions began to improve in Q1 2025, driven by a heavy spring maintenance season and refinery closures [18] - The company expressed confidence in recovering strong margins post-turnaround, despite challenges faced during the Coffeyville turnaround [46][47] - Management highlighted the importance of government support for renewable businesses, indicating a cautious approach to further investments in renewables without assurance of stable credits [56] Other Important Information - The company ended Q1 2025 with a consolidated cash balance of $695 million and total liquidity of approximately $894 million [16] - Significant cash uses included $94 million for capital and turnaround spending, and $113 million for working capital, primarily associated with inventory buildup during the turnaround [16] Q&A Session Summary Question: Understanding refining macro and demand resilience - Management indicated that days of supply have shrunk, suggesting a correcting supply-demand balance, with expectations for summer demand to influence gasoline and diesel markets [28] Question: RVO and SRE implications - Management believes decoupling D4 from D6 is important and criticized the government's handling of RFS, emphasizing the need for lower RIN prices to benefit consumers [31][32][33] Question: Renewable diesel EBITDA expectations - Management noted that RIN prices and feedstock costs are favorable, but emphasized the need for clarity on PTC rules before making further investments [36][37] Question: Jet expansion at Coffeyville - Management expressed confidence in securing contracts with major airlines as existing contracts expire, indicating a positive outlook for jet fuel demand [52] Question: Insider activity at the company - Management refrained from commenting on insider activity, suggesting inquiries should be directed to the individuals involved [80]