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HF Sinclair Corporation Reports 2024 First Quarter Results and Announces Regular Cash Dividend
HF Sinclair's Chief Executive Officer, Tim Go, commented, "We are pleased to report our first quarter, 2024 results. We continue to advance our corporate strategy focused on improving reliability, optimizing and integrating our portfolio and generating strong cash flows to support our cash return strategy. During the quarter, our businesses maintained safe and reliable operations, representing another quarter of successful turnaround and maintenance execution. We also returned $269 million in cash to shareholders during the quarter and today announced a new $1.0 billion share repurchase authorization demonstrating our continued commitment to shareholder returns. Looking forward, as we head into summer driving season, we expect a favorable market environment and believe we are well positioned to generate strong earnings and cash flows."
Refining segment income before interest and income taxes was $312.0 million for the first quarter of 2024 compared to $436.9 million for the first quarter of 2023. The segment reported EBITDA of $429.4 million for the first quarter of 2024 compared to $537.0 million for the first quarter of 2023. Excluding the lower of cost or market inventory valuation benefit of $220.6 million, the segment reported Adjusted EBITDA in the first quarter of 2024 was $208.8 million. This decrease was principally driven by lower refinery gross margins in both the West and Mid-Continent regions as a result of seasonal demand weakness for transportation fuels in our regions, partially offset by higher refined product sales volumes. Consolidated refinery gross margin was $12.70 per produced barrel, a 45% decrease compared to $23.20 for the first quarter of 2023. Crude oil charge averaged 604,930 barrels per day ("BPD") for the first quarter of 2024 compared to 498,500 BPD for the first quarter of 2023. This increase was primarily a result of decreased turnaround activities and improved reliability at our refineries compared to the first quarter of 2023.
Renewables segment loss before interest and income taxes was $(40.0) million for the first quarter of 2024, compared to a loss of $(64.6) million for the first quarter of 2023. The segment reported EBITDA of $(19.7) million for the first quarter of 2024 compared to $(44.6) million for the first quarter of 2023. Excluding the lower of cost or market inventory valuation adjustment, the segment reported Adjusted EBITDA of $(18.6) million for the first quarter of 2024 compared to $3.0 million for the first quarter of 2023. This decrease was primarily due to weakened RINs and Low Carbon Fuel Standard prices in the first quarter of 2024. Total sales volumes were 61 million gallons for the first quarter of 2024 as compared to 46 million gallons for the first quarter of 2023.
Marketing segment income before interest and income taxes was $9.4 million for the first quarter of 2024 compared to $0.5 million for the first quarter of 2023. The segment reported EBITDA of $15.7 million for the first quarter of 2024 compared to $6.4 million for the first quarter of 2023. This increase was primarily driven by stronger branded wholesale margins in the first quarter of 2024. Total branded fuel sales volumes were 321 million gallons for the first quarter of 2024 as compared to 328 million gallons for the first quarter of 2023.
Lubricants & Specialties segment income before interest and income taxes was $64.5 million for the first quarter of 2024, compared to an income of $78.2 million in the first quarter of 2023. The segment reported EBITDA of $87.0 million for the first quarter of 2024 compared to $97.6 million in the first quarter of 2023. This decrease was largely driven by lower base oil prices in the first quarter of 2024.
Midstream segment income before interest and income taxes was $93.1 million for the first quarter of 2024 compared to $73.9 million for the first quarter of 2023, and segment reported Adjusted EBITDA of $111.3 million for the first quarter of 2024 compared to $93.3 million for the first quarter of 2023. This increase was primarily driven by higher revenues from tariff increases in the first quarter of 2024.
For the first quarter of 2024, net cash provided by operations totaled $316.9 million. At March 31, 2024, the Company's cash and cash equivalents totaled $1,240.9 million, a $112.9 million decrease over cash and cash equivalents of $1,353.7 million at December 31, 2023. During the first quarter of 2024, the Company announced and paid a regular dividend of $0.50 per share to stockholders totaling $99.4 million and spent $169.6 million on share repurchases. Additionally, at March 31, 2024, the Company's consolidated debt was $2,678.6 million.
HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.50 per share, payable on June 5, 2024 to holders of record of common stock on May 22, 2024.
The Company has scheduled a webcast conference call for today, May 8, 2024, at 8:30 AM Eastern Time to discuss first quarter financial results. This webcast may be accessed at https://events.q4inc.com/attendee/868284986. An audio archive of this webcast will be available using the above noted link through May 22, 2024.
HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high-value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and other specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. HF Sinclair provides petroleum product and crude oil transportation, terminalling, storage and throughput services to its refineries and the petroleum industry. HF Sinclair markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states and supplies high-quality fuels to more than 1,500 branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in New Mexico. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and export products to more than 80 countries.
The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are "forward-looking statements" based on management's beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in the Company's filings with the Securities and Exchange Commission (the "SEC"). Forward-looking statements use words such as "anticipate," "project," "will," "expect," "plan," "goal," "forecast," "strategy," "intend," "should," "would," "could," "believe," "may," and similar expressions and statements regarding the Company's plans and objectives for future operations. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company cannot assure you that the Company's expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the demand for and supply of feedstocks, crude oil and refined products, including uncertainty regarding the increasing societal expectations that companies address climate change and greenhouse gas emissions; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company's markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to reductions in demand, accidents, unexpected leaks or spills, unscheduled shutdowns, infection in the workforce, weather events, global health events, civil unrest, expropriation of assets, and other economic, diplomatic, legislative, or political events or developments, terrorism, cyberattacks, vandalism or other catastrophes or disruptions affecting the Company's operations, production facilities, machinery, pipelines and other logistics assets, equipment, or information systems, or any of the foregoing of the Company's suppliers, customers, or third-party providers, and any potential asset impairments resulting from, or the failure to have adequate insurance coverage for or receive insurance recoveries from, such actions; the effects of current and/or future governmental and environmental regulations and policies, including compliance with existing, new and changing environmental and health and safety laws and regulations, related reporting requirements and pipeline integrity programs; the availability and cost of financing to the Company; the effectiveness of the Company's capital investments and marketing strategies; the Company's efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects on time and within capital guidance; the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire complementary assets or businesses to the Company's existing assets and businesses on acceptable terms and to integrate any existing or future acquired operations and realize the expected synergies of any such transaction on the expected timeline; the possibility of vandalism or other disruptive activity, or terrorist or cyberattacks and the consequences of any such activities or attacks; uncertainty regarding the effects and duration of global hostilities, including shipping disruptions in the Red Sea, the Israel-Gaza conflict, the Russia-Ukraine war, and any associated military campaigns which may disrupt crude oil supplies and markets for the Company's refined products and create instability in the financial markets that could restrict the Company's ability to raise capital; general economic conditions, including economic slowdowns caused by a local or national recession or other adverse economic condition, such as periods of increased or prolonged inflation; limitations on the Company's ability to make future dividend payments or effectuate share repurchases due to market conditions and corporate, tax, regulatory and other considerations; and other business, financial, operational and legal risks. Additional information on risks and uncertainties that could affect our business prospects and performance is provided in the reports filed by us with the SEC. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
RESULTS OF OPERATIONS
Financial Data (all information in this release is unaudited)
Three Months Ended Change from 2023
March 31,
---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------
2024 2023 Change Percent
------------------------------------------------- ------------------------------------------------- ------------------------------------------------ -------------------
(In thousands, except per share data)
Sales and other revenues $ 7,027,145 $ 7,565,142 $ (537,997 ) (7 )%
Operating costs and expenses:
Cost of products sold:
5,926,500 6,104,057 (177,557 ) (3 )%
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)
(219,370 ) 47,597 (266,967 ) (561 )%
Lower of cost or market inventory valuation adjustment
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
5,707,130 6,151,654 (444,524 ) (7 )%
607,112 639,383 (32,271 ) (5 )%
Operating expenses (exclusive of depreciation and amortization)
103,374 95,913 7,461 8 %
Selling, general and administrative expenses (exclusive of depreciation and amortization)
198,729 173,983 24,746 14 %
Depreciation and amortization
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
6,616,345 7,060,933 (444,588 ) (6 )%
Total operating costs and expenses
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
Income from operations 410,800 504,209 (93,409 ) (19 )%
Other income (expense):
7,346 3,882 3,464 89 %
Earnings (loss) of equity method investments
22,179 19,935 2,244 11 %
Interest income
(40,691 ) (45,822 ) 5,131 (11 )%
Interest expense
443 870 (427 ) (49 )%
Gain on foreign currency transactions
2,019 1,631 388 24 %
Gain on sale of assets and other
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
(8,704 ) (19,504 ) 10,800 (55 )%
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
Income before income taxes 402,096 484,705 (82,609 ) (17 )%
Income tax expense 85,474 99,700 (14,226 ) (14 )%
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
Net income 316,622 385,005 (68,383 ) (18 )%
Less net income attributable to noncontrolling interest 1,958 31,739 (29,781 ) (94 )%
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------- -------------------- ---------- ---------
Net income attributable to HF Sinclair stockholders $ 314,664 $ 353,266 $ (38,602 ) (11 )%
==================== ========= ==================== ==================== ========= ==================== ==================== ======== ==================== ========== =========
Earnings per share attributable to HF Sinclair stockholders:
$ 1.57 $ 1.79 $ (0.22 ) (12 )%
Basic
==================== ========= ==================== ==================== ========= ==================== ==================== ======== ==================== ========== =========
$ 1.57 $ 1.79 $ (0.22 ) (12 )%
Diluted
==================== ========= ==================== ==================== ========= ==================== ==================== ======== ==================== ========== =========
Cash dividends declared per common share $ 0.50 $ 0.45 $ 0.05 11 %
==================== ========= ==================== ==================== ========= ==================== ==================== ======== ==================== ========== =========
Average number of common shares outstanding:
198,710 195,445 3,265 2 %
Basic
198,710 195,445 3,265 2 %
Diluted
EBITDA $ 617,379 $ 652,836 $ (35,457 ) (5 )%
Balance Sheet Data
March 31, December 31,
2024 2023
-------------------- --------------------
(In thousands)
Cash and cash equivalents $ 1,240,860 $ 1,353,747
Working capital $ 3,404,525 $ 3,371,905
Total assets $ 17,915,990 $ 17,716,265
Total debt $ 2,678,645 $ 2,739,083
Segment Information
Our operations are organized into five reportable segments: Refining, Renewables, Marketing, Lubricants & Specialties and Midstream. Our operations that are not included in one of these five reportable segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.
The Refining segment represents the operations of our El Dorado, Tulsa, Navajo, Woods Cross, Puget Sound, Parco and Casper refineries and HF Sinclair Asphalt Company LLC ("Asphalt"). Refining activities involve the purchase and refining of crude oil and wholesale marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.
The Renewables segment represents the operations of our Cheyenne renewable diesel unit ("RDU"), the pre-treatment unit at our Artesia, New Mexico facility, the Artesia RDU, and the Sinclair RDU.
The Marketing segment represents branded fuel sales to Sinclair branded sites in the United States and licensing fees for the use of the Sinclair brand at additional locations throughout the country. The Marketing segment also includes branded fuel sales to non-Sinclair branded sites from legacy HollyFrontier Corporation ("HollyFrontier") agreements and revenues from other marketing activities. Our branded sites are located in several states across the United States with the highest concentration of the sites located in our West and Mid-Continent regions.
The Lubricants & Specialties segment represents Petro-Canada Lubricants Inc.'s production operations, located in Mississauga, Ontario, which includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States and Europe. Additionally, the Lubricants & Specialties segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil Company LLC, one of the leading suppliers of locomotive engine oil in North America. Also, the Lubricants & Specialties segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.
The Midstream segment includes all of the operations of Holly Energy Partners, L.P. ("HEP"), which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, and terminals, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The Midstream segment also includes 50% ownership interests in each of Osage Pipeline Company, LLC ("Osage"), the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas, Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming, and Cushing Connect Pipeline & Terminal LLC, a 25.12% ownership interest in Saddle Butte Pipeline III, LLC, the owner of a pipeline running from the Powder River Basin to Casper, Wyoming, and a 49.995% ownership interest in Pioneer Investments Corp., the owner of a pipeline running from Sinclair, Wyoming to the North Salt Lake City, Utah Terminal. Revenues from the Midstream segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations.
Beginning in the first quarter of 2024, our Refining segment acquired from our Midstream segment the refinery processing units at our El Dorado and Woods Cross refineries. Additionally, we amended an intercompany agreement between certain of our subsidiaries within the Refining, Lubricants & Specialties and Midstream segments. As a result, we have revised our Refining, Lubricants & Specialties and Midstream segment information for the periods presented.
Refining Renewables Marketing Lubricants & Midstream Corporate, Consolidated
Specialties Other and Total
Eliminations
------------------------------------------------------ ------------------------------------------------------ ---------------------------------- ---------------------------------- ---------------------------------- ------------------------------------------------------ ------------------------------------------------------
(In thousands)
Three Months Ended March 31, 2024
Sales and other revenues:
$ 5,373,025 $ 179,669 $ 775,807 $ 675,545 $ 23,099 $ -- $ 7,027,145
Revenues from external customers
831,220 59,890 -- 2,442 131,916 (1,025,468 ) --
Intersegment revenues and other (1)
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 6,204,245 $ 239,559 $ 775,807 $ 677,987 $ 155,015 $ (1,025,468 ) $ 7,027,145
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 5,474,522 $ 230,273 $ 752,530 $ 492,846 $ -- $ (1,023,671 ) $ 5,926,500
Lower of cost or market inventory valuation adjustment $ (220,558 ) $ 1,188 $ -- $ -- $ -- $ -- $ (219,370 )
Operating expenses $ 472,086 $ 26,461 $ -- $ 64,000 $ 45,518 $ (953 ) $ 607,112
Selling, general and administrative expenses $ 48,717 $ 1,402 $ 7,756 $ 34,568 $ 3,929 $ 7,002 $ 103,374
Depreciation and amortization $ 117,370 $ 20,272 $ 6,303 $ 22,511 $ 20,120 $ 12,153 $ 198,729
Income (loss) from operations $ 312,108 $ (40,037 ) $ 9,218 $ 64,062 $ 85,448 $ (19,999 ) $ 410,800
Income (loss) before interest and income taxes $ 312,014 $ (40,012 ) $ 9,428 $ 64,487 $ 93,050 $ (18,359 ) $ 420,608
Net income attributable to noncontrolling interest $ -- $ -- $ -- $ -- $ 1,958 $ -- $ 1,958
Earnings (loss) of equity method investments $ -- $ -- $ -- $ -- $ 7,388 $ (42 ) $ 7,346
Capital expenditures $ 55,025 $ 2,650 $ 7,531 $ 5,311 $ 8,106 $ 10,485 $ 89,108
Three Months Ended March 31, 2023
Sales and other revenues:
$ 5,665,214 $ 202,413 $ 937,385 $ 733,714 $ 26,416 $ -- $ 7,565,142
Revenues from external customers
1,053,401 95,603 -- 5,796 109,516 (1,264,316 ) --
Intersegment revenues and other (1)
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
$ 6,718,615 $ 298,016 $ 937,385 $ 739,510 $ 135,932 $ (1,264,316 ) $ 7,565,142
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) $ 5,641,131 $ 262,738 $ 924,049 $ 538,860 $ -- $ (1,262,721 ) $ 6,104,057
Lower of cost or market inventory valuation adjustment $ -- $ 47,597 $ -- $ -- $ -- $ -- $ 47,597
Operating expenses $ 501,759 $ 31,371 $ -- $ 63,593 $ 41,679 $ 981 $ 639,383
Selling, general and administrative expenses $ 39,078 $ 915 $ 6,963 $ 39,264 $ 4,635 $ 5,058 $ 95,913
Depreciation and amortization $ 100,083 $ 19,974 $ 5,871 $ 19,368 $ 19,762 $ 8,925 $ 173,983
Income (loss) from operations $ 436,564 $ (64,579 ) $ 502 $ 78,425 $ 69,856 $ (16,559 ) $ 504,209
Income (loss) before interest and income taxes $ 436,885 $ (64,556 ) $ 502 $ 78,225 $ 73,912 $ (14,376 ) $ 510,592
Net income attributable to noncontrolling interest $ -- $ -- $ -- $ -- $ 1,752 $ 29,987 $ 31,739
Loss of equity method investments $ -- $ -- $ -- $ -- $ 3,882 $ -- $ 3,882
(1) Includes income earned by certain of our subsidiaries in the Midstream segment related to intercompany transportation agreements with certain of our subsidiaries in the Refining and Lubricants & Specialties segments that represent leases. These transactions eliminate in consolidation.
Refining Segment Operating Data
The following tables set forth information, including non-GAAP (generally accepted accounting principles) performance measures about our refinery operations. Refinery gross and net operating margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments and depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.
The disaggregation of our refining geographic operating data is presented in two regions, Mid-Continent and West, to best reflect the economic drivers of our refining operations. The Mid-Continent region is comprised of the El Dorado and Tulsa refineries. The West region is comprised of the Puget Sound, Navajo, Woods Cross, Parco and Casper refineries.
Three Months Ended
March 31,
------------------------------------------------------------------------------------------------------------------
2024 2023
----------------------------------------------- -----------------------------------------------
Mid-Continent Region
Crude charge (BPD) (1) 259,030 211,390
Refinery throughput (BPD) (2) 273,890 231,260
Sales of produced refined products (BPD) (3) 272,460 205,010
Refinery utilization (4) 99.6 % 81.3 %
Average per produced barrel (5)
$ 10.47 $ 20.06
Refinery gross margin
6.40 9.28
Refinery operating expenses (6)
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 4.07 $ 10.78
Net operating margin
==================== ======= ==================== ==================== ======= ====================
$ 6.37 $ 8.23
Refinery operating expenses per throughput barrel (7)
Feedstocks:
50 % 65 %
Sweet crude oil
25 % 15 %
Sour crude oil
19 % 11 %
Heavy sour crude oil
6 % 9 %
Other feedstocks and blends
-------------------- ------- -------------------- -------------------- ------- --------------------
100 % 100 %
Total
==================== ======= ==================== ==================== ======= ====================
Sales of produced refined products:
52 % 49 %
Gasolines
32 % 29 %
Diesel fuels
6 % 8 %
Jet fuels
1 % 1 %
Fuel oil
3 % 4 %
Asphalt
4 % 5 %
Base oils
2 % 4 %
LPG and other
-------------------- ------- -------------------- -------------------- ------- --------------------
Three Months Ended March 31,
2024 2023
----------------------------------------------- -----------------------------------------------
West Region
Crude charge (BPD) (1) 345,900 287,110
Refinery throughput (BPD) (2) 369,410 326,870
Sales of produced refined products (BPD) (3) 359,010 310,950
Refinery utilization (4) 82.8 % 68.7 %
Average per produced barrel (5)
$ 14.39 $ 25.28
Refinery gross margin
9.59 11.81
Refinery operating expenses (6)
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 4.80 $ 13.47
Net operating margin
==================== ======= ==================== ==================== ======= ====================
$ 9.32 $ 11.23
Refinery operating expenses per throughput barrel (7)
Feedstocks:
32 % 32 %
Sweet crude oil
43 % 40 %
Sour crude oil
12 % 11 %
Heavy sour crude oil
7 % 5 %
Black wax crude oil
6 % 12 %
Other feedstocks and blends
-------------------- ------- -------------------- -------------------- ------- --------------------
100 % 100 %
Total
==================== ======= ==================== ==================== ======= ====================
Sales of produced refined products:
53 % 57 %
Gasolines
32 % 31 %
Diesel fuels
5 % 4 %
Jet fuels
2 % 2 %
Fuel oil
2 % 2 %
Asphalt
6 % 4 %
LPG and other
-------------------- ------- -------------------- -------------------- ------- --------------------
Consolidated
Crude charge (BPD) (1) 604,930 498,500
Refinery throughput (BPD) (2) 643,300 558,130
Sales of produced refined products (BPD) (3) 631,470 515,960
Refinery utilization (4) 89.2 % 73.5 %
Average per produced barrel (5)
$ 12.70 $ 23.20
Refinery gross margin
8.22 10.81
Refinery operating expenses (6)
-------------------- ------- -------------------- -------------------- ------- --------------------
$ 4.48 $ 12.39
Net operating margin
==================== ======= ==================== ==================== ======= ====================
$ 8.06 $ 9.99
Refinery operating expenses per throughput barrel (7)
Feedstocks:
39 % 46 %
Sweet crude oil
36 % 30 %
Sour crude oil
15 % 10 %
Heavy sour crude oil
4 % 3 %
Black wax crude oil
6 % 11 %
Other feedstocks and blends
-------------------- ------- -------------------- -------------------- ------- --------------------
Three Months Ended March 31,
2024 2023
------------------- -------------------
Consolidated
Sales of produced refined products:
53 % 54 %
Gasolines
32 % 30 %
Diesel fuels
6 % 6 %
Jet fuels
1 % 1 %
Fuel oil
2 % 3 %
Asphalt
2 % 2 %
Base oils
4 % 4 %
LPG and other
---------- --------- ---------- ---------
(1) Crude charge represents the barrels per day of crude oil processed at our refineries. (2) Refinery throughput represents the barrels per day of crude and other refinery feedstocks input to the crude units and other conversion units at our refineries. (3) Represents barrels sold of refined products produced at our refineries (including Asphalt and intersegment sales) and does not include volumes of refined products purchased for resale or volumes of excess crude oil sold. (4) Represents crude charge divided by total crude capacity (BPSD). Our consolidated crude capacity is 678,000 BPSD. (5) Represents average amount per produced barrel sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below. (6) Represents total Refining segment operating expenses, exclusive of depreciation and amortization, divided by sales volumes of refined products produced at our refineries.
Renewables Segment Operating Data
The following table sets forth information about our renewables operations and includes our Sinclair RDU. The renewables gross and net operating margins do not include the non-cash effects of lower of cost or market inventory valuation adjustments and depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.
Three Months Ended March 31,
------------------------------------------------------------------------------------------------
2024 2023
---------------------------------------------- ------------------------------
Renewables
Sales volumes (in thousand gallons) 61,172 46,012
Average per produced gallon (1)
$ 0.15 $ 0.77
Renewables gross margin
0.43 0.68
Renewables operating expense (2)
-------------------- ------ -------------------- -------------------- ----------
(1) Represents average amount per produced gallons sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.
Marketing Segment Operating Data
The following table sets forth information about our marketing operations. The marketing gross margin does not include the non-cash effects of depreciation and amortization. Reconciliations to amounts reported under GAAP are provided under "Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles" below.
Three Months Ended March 31,
--------------------------------------------------------------------------------
2024 2023
------------------------------ ------------------------------
Marketing
Number of branded sites at period end (1) 1,547 1,511
Sales volumes (in thousand gallons) 321,010 328,407
(1) Includes non-Sinclair branded sites from legacy HollyFrontier agreements.
Lubricants & Specialties Segment Operating Data
The following table sets forth information about our lubricants and specialties operations:
Three Months Ended March 31,
--------------------------------------------------------------------------------
2024 2023
------------------------------ ------------------------------
Lubricants & Specialties
Sales of produced refined products (BPD) 31,104 31,790
Sales of produced refined products:
49 % 50 %
Finished products
27 % 29 %
Base oils
24 % 21 %
Other
---------- -------------------- ---------- --------------------
Midstream Segment Operating Data
The following table sets forth information about our midstream operations:
Three Months Ended March 31,
------------------------------------------------------------
2024 2023
-------------------- --------------------
Midstream
Volumes (BPD)
Pipelines:
164,628 143,002
Affiliates--refined product pipelines
138,071 114,326
Affiliates--intermediate pipelines
441,454 473,712
Affiliates--crude pipelines
-------------------- --------------------
744,153 731,040
36,723 40,431
Third parties--refined product pipelines
162,493 175,984
Third parties--crude pipelines
-------------------