Reported net income attributable to HF Sinclair stockholders of $954.4 million, or $4.45 per diluted share, and adjusted net income of $982.9 million, or $4.58 per diluted share, for the third quarter
Reported EBITDA of $1,463.2 million and Adjusted EBITDA of $1,500.3 million for the third quarter
Returned $951.5 million to shareholders through dividends and share repurchases in the third quarter
Announced a regular quarterly dividend of $0.40 per share

HF Sinclair Corporation (NYSE:DINO) ("HF Sinclair" or the "Company") today reported third quarter net income attributable to HF Sinclair stockholders of $954.4 million, or $4.45 per diluted share, for the quarter ended September 30, 2022, compared to $280.8 million, or $1.71 per diluted share, for the quarter ended September 30, 2021.

The third quarter results reflect special items that collectively decreased net income by a total of $28.5 million. On a pre-tax basis, these items include a lower of cost or market inventory valuation adjustment of $16.8 million, HF Sinclair's pro-rata share of HEP's share of Osage environmental remediation costs of $9.6 million and acquisition integration costs of $10.7 million. Excluding these items, adjusted net income for the third quarter of 2022 was $982.9 million ($4.58 per diluted share) compared to $209.9 million ($1.28 per diluted share) for the third quarter of 2021, which excludes certain items that collectively increased net income by $70.8 million.

HF Sinclair's CEO, Michael Jennings, commented, "HF Sinclair's solid third quarter results were driven by robust product margins and record throughputs in our refining segment. We returned over $951 million in cash to shareholders through share repurchases and dividends during the quarter, and another $152 million in the month of October. Since the closing of the Sinclair acquisition on March 14, 2022, we have returned over $1.1 billion, which is well ahead of our initial target of returning $1 billion to our shareholders by the end of the first quarter of 2023. With the announcement of our new $1 billion share repurchase authorization in September, we remain fully committed to our cash return strategy and long-term payout ratio."

Refining segment income before interest and income taxes was $1,344.1 million for the third quarter of 2022 compared to $217.4 million for the third quarter of 2021. The segment reported EBITDA of $1,446.7 million for the third quarter of 2022 compared to $295.3 million for the third quarter of 2021. This increase was primarily driven by higher refining margins in both the West and Mid-Continent regions, which resulted in higher refining segment earnings in the quarter. Consolidated refinery gross margin was $31.47 per produced barrel, a 112% increase compared to $14.87 for the third quarter of 2021, and crude oil charge averaged 645,780 barrels per day ("BPD") for the third quarter of 2022 compared to 416,430 BPD for the third quarter of 2021.

Renewables segment loss before interest and income taxes was $(49.3) million for the third quarter of 2022 compared to $(13.4) million for the third quarter of 2021. The segment reported EBITDA of $(31.1) million for the third quarter of 2022 compared to $(13.1) million for the third quarter of 2021. Excluding the lower of cost or market inventory valuation charge of $16.8 million, Adjusted EBITDA in the third quarter of 2022 was $(14.2) million. Total sales volumes were 52 million gallons for the third quarter of 2022. The Cheyenne renewable diesel unit ("RDU") was mechanically complete in the fourth quarter of 2021 and fully operational in the first quarter of 2022, the pre-treatment unit ("PTU") at our Artesia, New Mexico facility was completed and fully operational in the first quarter of 2022 and the Artesia RDU was completed and fully operational in the second quarter of 2022. Also, effective with the Sinclair acquisition that closed on March 14, 2022, the Renewables segment includes the Sinclair RDU.

Marketing segment income before interest and income taxes was $3.9 million and reported EBITDA was $10.2 million for the third quarter of 2022. Total branded fuel sales volumes were 362 million gallons for the third quarter of 2022.

Lubricants and Specialty Products segment loss before interest and income taxes was $(5.0) million for the third quarter of 2022 compared to income of $148.5 million in the third quarter of 2021. The segment reported EBITDA of $15.2 million for the third quarter of 2022 compared to $167.7 million in the third quarter of 2021. Excluding a gain on sale of real property of $86.0 million, Adjusted EBITDA in the third quarter of 2021 was $81.7 million. This decrease was largely driven by FIFO impact from consumption of higher priced feedstock inventory, resulting in lower margins.

Holly Energy Partners, L.P. ("HEP") reported EBITDA of $66.0 million for the third quarter of 2022 compared to $77.6 million for the third quarter of 2021 and Adjusted EBITDA of $110.1 million for the third quarter of 2022 compared to $83.3 million for the third quarter of 2021.

For the third quarter of 2022, net cash provided by operations totaled $872.8 million. At September 30, 2022, the Company's cash and cash equivalents totaled $1,447.4 million, a $254.9 million decrease over cash and cash equivalents of $1,702.3 million at June 30, 2022. During the third quarter of 2022, the Company announced and paid a regular dividend of $0.40 per share to shareholders totaling $85.3 million and spent $866.2 million on share repurchases. Additionally, the Company's consolidated debt was $3,334.2 million. The Company's debt, exclusive of HEP debt, which is nonrecourse to HF Sinclair, was $1,740.4 million at September 30, 2022.

HF Sinclair also announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.40 per share, payable on December 5, 2022 to holders of record of common stock on November 21, 2022.

Through September 30, 2022, HF Sinclair has achieved annualized run rate targeted synergies of over $100 million related to the Sinclair acquisition and over $100 million of working capital synergies. The Company achieved annual run rate synergies through a combination of commercial improvements, operating expense reductions and optimization of selling, general and administrative expenses.

The Company has scheduled a webcast conference call for today, November 7, 2022, at 8:30 AM Eastern Time to discuss third quarter financial results. This webcast may be accessed at https://events.q4inc.com/attendee/908108663. An audio archive of this webcast will be available using the above noted link through November 21, 2022.

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 and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. HF Sinclair supplies high-quality fuels to more than 1,300 Sinclair branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. 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. Through its subsidiaries, HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in Artesia, New Mexico. HF Sinclair also owns a 47% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HF Sinclair subsidiaries.

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 our 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 our plans and objectives for future operations. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove 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 Company's and HEP's ability to successfully integrate the Sinclair Oil Corporation (now known as Sinclair Oil LLC) and Sinclair Transportation Company LLC businesses acquired from The Sinclair Companies (now known as REH Company) (collectively, the "Sinclair Transactions") with their existing operations and fully realize the expected synergies of the Sinclair Transactions or on the expected timeline; the Company's ability to successfully integrate the operation of the Puget Sound refinery with its existing operations; the demand for and supply of crude oil and refined products, including uncertainty regarding the effects of the continuing coronavirus ("COVID-19") pandemic on future demand and increasing societal expectations that companies address climate change; 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 infection in the workforce or in response to reductions in demand, accidents, unexpected leaks or spills, unscheduled shutdowns, weather events, civil unrest, expropriation of assets, and other economic, diplomatic, legislative, or political events or developments, terrorism, cyberattacks, or other catastrophes or disruptions affecting our operations, production facilities, machinery, pipelines and other logistics assets, equipment, or information systems, or any of the foregoing of our 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 the effects of current and/or future restrictions on various commercial and economic activities in response to the COVID-19 pandemic and increases in interest rates; the availability and cost of financing to the Company; the effectiveness of the Company's capital investments and marketing strategies; the Company's and HEP'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 and HEP's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; uncertainty regarding the effects and duration of global hostilities, including 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 uncertainty regarding the timing, pace and extent of an economic recovery in the United States; a prolonged economic slowdown due to the COVID-19 pandemic, inflation and labor costs which could result in an impairment of goodwill and/or long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's and HEP's SEC filings. 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 September 30,						Change from 2021
	2022			2021			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	10,599,002		$	4,685,059		$	5,913,943		126	%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)		8,375,253			3,822,858			4,552,395		119
Lower of cost or market inventory valuation adjustment		16,847			—			16,847		—
		8,392,100			3,822,858			4,569,242		120
Operating expenses (exclusive of depreciation and amortization)		604,591			352,520			252,071		72
Selling, general and administrative expenses (exclusive of depreciation and amortization)		102,677			91,056			11,621		13
Depreciation and amortization		171,973			121,220			50,753		42
Total operating costs and expenses		9,271,341			4,387,654			4,883,687		111
Income from operations		1,327,661			297,405			1,030,256		346

Other income (expense):
Earnings (loss) of equity method investments		(16,334	)		3,689			(20,023	)	(543	)
Interest income		9,821			1,018			8,803		865
Interest expense		(44,830	)		(26,892	)		(17,938	)	67
Gain (loss) on foreign currency transactions		1,544			(3,492	)		5,036		(144	)
Gain on sale of assets and other		2,130			85,779			(83,649	)	(98	)
		(47,669	)		60,102			(107,771	)	(179	)
Income before income taxes		1,279,992			357,507			922,485		258
Income tax expense		301,853			54,766			247,087		451
Net income		978,139			302,741			675,398		223
Less net income attributable to noncontrolling interest		23,734			21,954			1,780		8
Net income attributable to HF Sinclair stockholders	$	954,405		$	280,787		$	673,618		240	%

Earnings per share attributable to HF Sinclair stockholders:
Basic	$	4.45		$	1.71		$	2.74		160	%
Diluted	$	4.45		$	1.71		$	2.74		160	%
Cash dividends declared per common share	$	0.40		$	—		$	0.40		100	%
Average number of common shares outstanding:
Basic		212,388			162,551			49,837		31	%
Diluted		212,388			162,551			49,837		31	%

EBITDA	$	1,463,240		$	482,647		$	980,593		203	%
Adjusted EBITDA	$	1,500,321		$	407,830		$	1,092,491		268	%

	Nine Months Ended September 30,						Change from 2021
	2022			2021			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	29,219,912		$	12,766,475		$	16,453,437		129	%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)		23,457,180			10,608,892			12,848,288		121
Lower of cost or market inventory valuation adjustment		42,839			(318,862	)		361,701		(113	)
		23,500,019			10,290,030			13,209,989		128
Operating expenses (exclusive of depreciation and amortization)		1,688,152			1,086,620			601,532		55
Selling, general and administrative expenses (exclusive of depreciation and amortization)		323,974			250,785			73,189		29
Depreciation and amortization		480,618			369,341			111,277		30
Total operating costs and expenses		25,992,763			11,996,776			13,995,987		117
Income from operations		3,227,149			769,699			2,457,450		319

Other income (expense):
Earnings (loss) of equity method investments		(7,261	)		8,875			(16,136	)	(182	)
Interest income		12,662			3,078			9,584		311
Interest expense		(118,650	)		(94,220	)		(24,430	)	26
Gain on tariff settlement		—			51,500			(51,500	)	(100	)
Gain (loss) on foreign currency transactions		778			(4,226	)		5,004		(118	)
Gain on sale of assets and other		8,345			95,596			(87,251	)	(91	)
		(104,126	)		60,603			(164,729	)	(272	)
Income before income taxes		3,123,023			830,302			2,292,721		276
Income tax expense		706,675			149,944			556,731		371
Net income		2,416,348			680,358			1,735,990		255
Less net income attributable to noncontrolling interest		80,707			82,504			(1,797	)	(2	)
Net income attributable to HollyFrontier stockholders	$	2,335,641		$	597,854		$	1,737,787		291	%

Earnings per share attributable to HollyFrontier stockholders:
Basic	$	11.35		$	3.63		$	7.72		213	%
Diluted	$	11.35		$	3.63		$	7.72		213	%
Cash dividends declared per common share	$	0.80		$	0.35		$	0.45		129	%
Average number of common shares outstanding:
Basic		203,610			162,518			41,092		25	%
Diluted		203,610			162,518			41,092		25	%

EBITDA	$	3,628,922		$	1,208,281		$	2,420,641		200	%
Adjusted EBITDA	$	3,730,036		$	789,639		$	2,940,397		372	%

Balance Sheet Data
	September 30,		December 31,
	2022		2021
	(In thousands)
Cash and cash equivalents	$	1,447,359	$	234,444
Working capital	$	3,585,175	$	1,696,990
Total assets	$	18,226,285	$	12,916,613
Long-term debt	$	3,334,200	$	3,072,737
Total equity	$	9,778,525	$	6,294,465

Segment Information

Effective the first quarter of 2022, we revised our reportable segments to align with certain changes in how our chief operating decision maker manages and allocates resources to our businesses. Accordingly, we created two new reportable segments, Renewables and Marketing. Our operations are now organized into five reportable segments, Refining, Renewables, Marketing, Lubricants and Specialty Products and HEP. 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.

As a result of the Sinclair Transactions that closed on March 14, 2022, the operations of the acquired Sinclair businesses are reported in the Refining, Renewables, Marketing and HEP segments.

The Refining segment represents the operations of our El Dorado, Tulsa, Navajo and Woods Cross refineries and HF Sinclair Asphalt Company LLC ("Asphalt"). Also, effective with our acquisition that closed on November 1, 2021, the Refining segment includes our Puget Sound refinery, and effective with our acquisition that closed on March 14, 2022, includes our Sinclair (also referred to as Parco) and Casper refineries. 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 the Cheyenne RDU, which was mechanically complete in the fourth quarter of 2021 and fully operational in the first quarter of 2022, the PTU at our Artesia, New Mexico facility, which was completed and fully operational in the first quarter of 2022 and the Artesia RDU, which was completed and fully operational in the second quarter of 2022. Also, effective with our acquisition that closed on March 14, 2022, the Renewables segment includes the Sinclair RDU. During the construction phase of our RDUs and PTU, operating expense and capital expenditures were reported in the Corporate and Other segment, and this financial information has been retrospectively adjusted to reflect our current segment presentation.

Effective with our acquisition that closed on March 14, 2022, the Marketing segment includes branded fuel sales through more than 300 distributors to more than 1,300 branded sites in the United States and licensing fees for the use of the Sinclair brand at more than 300 additional locations throughout the country.

The Lubricants and Specialty Products segment represents Petro-Canada Lubricants Inc.'s ("PCLI") production operations, located in Mississauga, Ontario, that 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, Europe and China. Additionally, the Lubricants and Specialty Products 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 largest suppliers of locomotive engine oil in North America. Also, the Lubricants and Specialty Products 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 HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The HEP segment also includes 50% ownership interests in each of the Osage Pipeline, the Cheyenne Pipeline and Cushing Connect, a 25.06% ownership interest in the Saddle Butte Pipeline and a 49.995% ownership interest in the Pioneer Pipeline. Revenues from the HEP 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. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP's periodic public filings.

	Refining		Renewables			Marketing		Lubricants and Specialty Products			HEP			Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended September 30, 2022
Sales and other revenues:
Revenues from external customers	$	8,230,606	$	254,952		$	1,266,681	$	820,630		$	26,133		$	—		$	10,599,002
Intersegment revenues		1,405,180		100,708			—		2,809			122,869			(1,631,566	)		—
	$	9,635,786	$	355,660		$	1,266,681	$	823,439		$	149,002		$	(1,631,566	)	$	10,599,002
Cost of products sold (exclusive of lower of cost or market inventory)	$	7,680,153	$	345,588		$	1,255,119	$	696,864		$	—		$	(1,602,471	)	$	8,375,253
Lower of cost or market inventory valuation adjustment	$	—	$	16,847		$	—	$	—		$	—		$	—		$	16,847
Operating expenses	$	474,631	$	23,427		$	—	$	69,506		$	60,471		$	(23,444	)	$	604,591
Selling, general and administrative expenses	$	34,353	$	873		$	1,351	$	41,833		$	3,750		$	20,517		$	102,677
Depreciation and amortization	$	102,599	$	18,228		$	6,355	$	20,227		$	25,846		$	(1,282	)	$	171,973
Income (loss) from operations	$	1,344,050	$	(49,303	)	$	3,856	$	(4,991	)	$	58,935		$	(24,886	)	$	1,327,661
Income (loss) before interest and income taxes	$	1,344,103	$	(49,285	)	$	3,856	$	(4,978	)	$	43,096		$	(21,791	)	$	1,315,001
Net income attributable to noncontrolling interest	$	—	$	—		$	—	$	—		$	1,962		$	21,772		$	23,734
Loss of equity method investments	$	—	$	—		$	—	$	—		$	(16,334	)	$	—		$	(16,334	)
Capital expenditures	$	37,653	$	24,499		$	1,487	$	10,158		$	7,948		$	17,958		$	99,703

	Refining		Renewables			Lubricants and Specialty Products		HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended September 30, 2021
Sales and other revenues:
Revenues from external customers	$	3,993,570	$	—		$	666,033	$	25,459	$	(3	)	$	4,685,059
Intersegment revenues		189,441		—			501		97,125		(287,067	)		—
	$	4,183,011	$	—		$	666,534	$	122,584	$	(287,070	)	$	4,685,059
Cost of products sold (exclusive of lower of cost or market inventory)	$	3,605,600	$	—		$	482,533	$	—	$	(265,275	)	$	3,822,858
Operating expenses	$	248,316	$	13,117		$	60,940	$	42,793	$	(12,646	)	$	352,520
Selling, general and administrative expenses	$	32,345	$	—		$	41,476	$	3,849	$	13,386		$	91,056
Depreciation and amortization	$	77,890	$	328		$	19,226	$	21,627	$	2,149		$	121,220
Income (loss) from operations	$	218,860	$	(13,445	)	$	62,359	$	54,315	$	(24,684	)	$	297,405
Income (loss) before interest and income taxes	$	217,438	$	(13,445	)	$	148,460	$	58,081	$	(27,153	)	$	383,381
Net income attributable to noncontrolling interest	$	—	$	—		$	—	$	1,188	$	20,766		$	21,954
Earnings of equity method investments	$	—	$	—		$	—	$	3,689	$	—		$	3,689
Capital expenditures	$	40,814	$	141,302		$	7,833	$	19,217	$	6,338		$	215,504

	Refining		Renewables			Marketing		Lubricants and Specialty Products		HEP			Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Nine Months Ended September 30, 2022
Sales and other revenues:
Revenues from external customers	$	23,442,162		399,204			2,880,024	$	2,419,212	$	79,310		$	—		$	29,219,912
Intersegment revenues		2,988,372		198,401			—		9,177		325,660			(3,521,610	)		—
	$	26,430,534		597,605			2,880,024	$	2,428,389	$	404,970		$	(3,521,610	)	$	29,219,912
Cost of products sold (exclusive of lower of cost or market inventory)	$	21,709,048	$	582,521		$	2,837,583	$	1,777,869	$	—		$	(3,449,841	)	$	23,457,180
Lower of cost or market inventory valuation adjustment	$	—	$	42,839		$	—	$	—	$	—		$	—		$	42,839
Operating expenses	$	1,298,907	$	79,796		$	—	$	209,977	$	156,994		$	(57,522	)	$	1,688,152
Selling, general and administrative expenses	$	107,358	$	2,746		$	2,540	$	127,137	$	12,745		$	71,448		$	323,974
Depreciation and amortization	$	300,060	$	34,399		$	11,274	$	61,426	$	73,803		$	(344	)	$	480,618
Income (loss) from operations	$	3,015,161	$	(144,696	)	$	28,627	$	251,980	$	161,428		$	(85,351	)	$	3,227,149
Income (loss) before interest and income taxes	$	3,015,274	$	(144,589	)	$	28,627	$	254,839	$	154,808		$	(79,948	)	$	3,229,011
Net income attributable to noncontrolling interest	$	—	$	—		$	—	$	—	$	7,154		$	73,553		$	80,707
Loss of equity method investments	$	—	$	—		$	—	$	—	$	(7,261	)	$	—		$	(7,261	)
Capital expenditures	$	104,284	$	210,793		$	6,796	$	24,553	$	31,194		$	39,823		$	417,443

	Refining			Renewables			Lubricants and Specialty Products		HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Nine Months Ended September 30, 2021
Sales and other revenues:
Revenues from external customers	$	10,837,876		$	—		$	1,850,786	$	77,809	$	4		$	12,766,475
Intersegment revenues	$	455,089		$	—		$	9,500	$	298,193	$	(762,782	)	$	—
	$	11,292,965		$	—		$	1,860,286	$	376,002	$	(762,778	)	$	12,766,475
Cost of products sold (exclusive of lower of cost or market inventory)	$	9,986,862		$	—		$	1,305,274	$	—	$	(683,244	)	$	10,608,892
Lower of cost or market inventory valuation adjustment	$	(318,353	)	$	—		$	—	$	—	$	(509	)	$	(318,862	)
Operating expenses	$	772,593		$	37,169		$	183,003	$	126,226	$	(32,371	)	$	1,086,620
Selling, general and administrative expenses	$	90,977		$	—		$	124,612	$	9,664	$	25,532		$	250,785
Depreciation and amortization	$	245,910		$	986		$	58,499	$	66,908	$	(2,962	)	$	369,341
Income (loss) from operations	$	514,976		$	(38,155	)	$	188,898	$	173,204	$	(69,224	)	$	769,699
Income (loss) before interest and income taxes	$	513,226		$	(38,155	)	$	275,538	$	212,750	$	(41,915	)	$	921,444
Net income attributable to noncontrolling interest	$	—		$	—		$	—	$	4,027	$	78,477		$	82,504
Earnings of equity method investments	$	—			—		$	—	$	8,875	$	—		$	8,875
Capital expenditures	$	114,325		$	325,271		$	17,534	$	76,933	$	14,282		$	548,345

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, Sinclair and Casper refineries. The Puget Sound refinery was acquired November 1, 2021, and thus is included for the period January 1, 2022 to September 30, 2022. In addition, the refinery operations of the Sinclair and Casper refineries are included for the period March 14, 2022 (the date of acquisition) through September 30, 2022.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022 ⁽⁸⁾			2021
*Mid-Continent Region*
Crude charge (BPD) ⁽¹⁾		278,410			280,220			282,130			258,530
Refinery throughput (BPD)⁽²⁾		293,890			294,970			297,240			272,770
Sales of produced refined products (BPD) ⁽³⁾		280,390			277,310			279,940			258,800
Refinery utilization ⁽⁴⁾		107.1	%		107.8	%		108.5	%		99.4	%

Average per produced barrel ⁽⁵⁾
Refinery gross margin	$	25.72		$	13.59		$	22.62		$	10.65
Refinery operating expenses ⁽⁶⁾		6.12			5.72			6.12			6.68
Net operating margin	$	19.60		$	7.87		$	16.50		$	3.97

Refinery operating expenses per throughput barrel ⁽⁷⁾	$	5.84		$	5.37		$	5.76		$	6.33

Feedstocks:
Sweet crude oil		59	%		66	%		58	%		63	%
Sour crude oil		26	%		13	%		21	%		14	%
Heavy sour crude oil		10	%		16	%		16	%		18	%
Other feedstocks and blends		5	%		5	%		5	%		5	%
Total		100	%		100	%		100	%		100	%

Sales of produced refined products:
Gasolines		50	%		52	%		50	%		51	%
Diesel fuels		34	%		32	%		34	%		33	%
Jet fuels		6	%		5	%		6	%		5	%
Fuel oil		1	%		1	%		1	%		1	%
Asphalt		4	%		4	%		3	%		3	%
Base oils		3	%		4	%		4	%		4	%
LPG and other		2	%		2	%		2	%		3	%
Total		100	%		100	%		100	%		100	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022 ⁽⁸⁾			2021
*West Region*
Crude charge (BPD) ⁽¹⁾		367,370			136,210			317,700			135,370
Refinery throughput (BPD)⁽²⁾		391,230			149,760			340,920			148,700
Sales of produced refined products (BPD) ⁽³⁾		394,980			144,710			338,330			148,410
Refinery utilization ⁽⁴⁾		87.9	%		93.9	%		81.2	%		93.4	%

Average per produced barrel ⁽⁵⁾
Refinery gross margin	$	35.56		$	17.33		$	32.40		$	13.67
Refinery operating expenses ⁽⁶⁾		8.72			7.70			9.00			7.43
Net operating margin	$	26.84		$	9.63		$	23.40		$	6.24

Refinery operating expenses per throughput barrel ⁽⁷⁾	$	8.80		$	7.44		$	8.93		$	7.41

Feedstocks:
Sweet crude oil		25	%		22	%		27	%		22	%
Sour crude oil		50	%		58	%		50	%		59	%
Heavy sour crude oil		14	%		—	%		11	%		—	%
Black wax crude oil		5	%		11	%		5	%		10	%
Other feedstocks and blends		6	%		9	%		7	%		9	%
Total		100	%		100	%		100	%		100	%

Sales of produced refined products:
Gasolines		53	%		51	%		52	%		52	%
Diesel fuels		34	%		39	%		32	%		38	%
Jet fuels		5	%		—	%		5	%		—	%
Fuel oil		1	%		3	%		4	%		3	%
Asphalt		3	%		5	%		3	%		4	%
LPG and other		4	%		2	%		4	%		3	%
Total		100	%		100	%		100	%		100	%

*Consolidated*
Crude charge (BPD) ⁽¹⁾		645,780			416,430			599,830			393,900
Refinery throughput (BPD)⁽²⁾		685,120			444,730			638,160			421,470
Sales of produced refined products (BPD) ⁽³⁾		675,370			422,020			618,270			407,210
Refinery utilization ⁽⁴⁾		95.2	%		102.8	%		92.2	%		97.3	%

Average per produced barrel ⁽⁵⁾
Refinery gross margin	$	31.47		$	14.87		$	27.97		$	11.75
Refinery operating expenses ⁽⁶⁾		7.64			6.40			7.70			6.95
Net operating margin	$	23.83		$	8.47		$	20.27		$	4.80

Refinery operating expenses per throughput barrel ⁽⁷⁾	$	7.53		$	6.07		$	8.51		$	6.71

Feedstocks:

HF Sinclair Corporation Reports Quarterly Results and Announces Regular Cash Dividend