The following is a summary of the HF Sinclair Corporation (DINO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• HF Sinclair reported a third quarter net loss of $76 million, or negative $0.40 per diluted share, with special items decreasing net income by $172 million.

• Excluding special items, adjusted net income was $97 million, or $0.51 per diluted share, down significantly from $760 million, or $4.06 per diluted share, in the same period of 2023.

• Adjusted EBITDA dropped substantially to $316 million from $1.2 billion in the third quarter of 2023, highlighting challenges in refining margins across the industry.

Business Progress:

• HF Sinclair has successfully integrated and optimized its portfolio, focusing particularly on Renewable, Lubricants & Specialties, and marketing segments.

• In Renewables: Achieved record sales volumes of renewable diesel and lowest operating expenses per gallon.

• In Lubricants & Specialties: Reported strong results despite FIFO headwinds, and introduced new digital tools and product offerings.

• Marketing segment continued to grow, adding 22 net new branded sites in Q3, and signed contracts for 168 new conversions over the next 6-12 months.

• Midstream business set record transportation volumes and improved profitability.

Opportunities:

• HF Sinclair's diversified business strategy has enhanced resilience against weak refining margins by capitalizing on strong performance in marketing, midstream, and renewables segments.

• The company continues to focus on expanding branded site conversions and enhancing lubricant product offerings to grow and stabilize income.

Risks:

• Weak refining margins and falling oil prices presented as primary challenges impacting overall profitability and performance metrics.

• Volatility in RINs and LCFS credit prices poses risks to renewable operations.

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