HF Sinclair Q3 profit rises as refining margins climb

HF Sinclair Corporation (DINO) said on Oct. 28 that net income attributable to its stockholders for the third quarter of 2026 was $2,015 million, or $11.38 per diluted share, compared with $403 million, or $2.15 per diluted share, a year earlier. The company said in a press release that refining results drove the increase.

HF Sinclair Corporation, based in Dallas, Texas, is an independent energy company that produces and markets gasoline, diesel fuel, jet fuel, renewable diesel and lubricants.

Here's how the company did:

• Net income attributable to stockholders: $2,015 million, or $11.38 per diluted share, vs. $403 million, or $2.15 per diluted share, a year earlier
• Adjusted net income attributable to stockholders: $2,079 million, or $11.75 per diluted share, vs. $459 million, or $2.44 per diluted share, a year earlier
• Revenue: $10,857 million vs. $7,251 million a year earlier
• Adjusted EBITDA, or EBITDA excluding special items: $2,984 million vs. $870 million a year earlier

Chief Executive Officer Franklin Myers said, "Our third quarter performance reflects the strength and continued focus on safe, reliable execution of all our businesses. Importantly, we returned $572 million to stockholders through dividends and share repurchases, reinforcing our commitment to disciplined capital allocation and stockholder returns."

Refining and renewables

Refining segment income before interest and income taxes was $2,435 million, compared with $476 million a year earlier. The company said tight supply of transportation fuels, elevated crack spreads and benefits from small refinery RINs waivers granted by the EPA lifted the segment.

Adjusted refinery gross margin was $54.22 per produced barrel sold, against $19.16 a year earlier. Crude charge averaged 614,060 barrels per day, down from 639,050.

Renewables segment income before interest and income taxes was $123 million, compared with a loss of $55 million. Excluding a $30 million benefit from lower of cost or market inventory valuation, the segment's Adjusted EBITDA was $109 million, compared with a loss of $13 million. Sales volumes were 63 million gallons, up from 57 million.

Marketing segment income before interest and income taxes was $31 million, compared with $22 million a year earlier.

Lubricants and Mississauga

The company said it decided to retire its Mississauga, Ontario base oil refining assets, with the transition expected to be substantially completed in the second half of 2027.

The third-quarter results include an impairment charge of $27 million, severance costs of $28 million and $54 million of incremental accelerated depreciation and amortization. Excluding those items, the Lubricants & Specialties segment reported Adjusted EBITDA of $174 million, compared with EBITDA of $78 million a year earlier.

Cash and capital returns

Cash and cash equivalents totaled $3,333 million at Sept. 30, up from $978 million at Dec. 31, 2025. Consolidated debt was $2,774 million. During the quarter the company paid dividends totaling $93 million and spent $479 million on share repurchases.

The board declared a regular quarterly dividend of 52.5 cents per share, up from 50 cents a year earlier. It is payable Dec. 2 to holders of record on Nov. 12.

Planned separation

In July the company announced plans to separate its Lubricants & Specialties segment through the capital markets, creating a new independent, publicly traded company. The company said the separation will take the form of a distribution of at least 80.1% of that company's stock and will be substantially completed over 2027.

Chief executive succession

The board appointed Steve Ledbetter, currently president and chief operating officer, as chief executive officer and president, effective Jan. 1, 2027. Franklin Myers will serve as CEO until that date and then as executive chairperson until the planned separation is complete.

The board expects to increase its size and appoint Ledbetter as a director at a future date. The company said the board has not approved any changes to his compensation.