HF Sinclair Corporation

What they do

HF Sinclair refines crude oil into gasoline, diesel, jet fuel, and other products at facilities in Kansas, Oklahoma, New Mexico, Wyoming, Washington, and Utah. It also produces renewable diesel, markets fuel under the Sinclair brand to over 1,700 stations, and manufactures base oils and lubricants. The midstream segment provides crude and product transportation, terminalling, and storage.

Revenue drivers

• Refining — Largest segment; reported income before interest and taxes of $877 million in Q2 2026, driven by strong margins and volumes; adjusted refinery gross margin was $25.95 per barrel.
• Lubricants & Specialties — Produced income of $181 million in Q2 2026, up from $33 million a year ago, helped by higher volumes, prices, and a FIFO benefit of $46 million.
• Renewables — Produced income of $30 million in Q2 2026, with adjusted EBITDA of $123 million; benefited from improved RINs prices and higher PTC benefits, selling 60 million gallons.
• Marketing — Provides a consistent sales channel for produced fuels; income of $20 million in Q2 2026, with branded fuel volumes of 387 million gallons.

Recent performance

In Q2 2026, HF Sinclair reported net income attributable to stockholders of $892 million, or $4.93 per diluted share, versus $208 million ($1.10) in Q2 2025. Adjusted net income was $960 million ($5.31 per share). Revenue for the quarter was $10.39 billion (June 30, 2026), up from $7.25 billion in the prior quarter. For full-year 2025, revenue was $26.87 billion with net income of $579 million, compared to $28.58 billion and $177 million in 2024. Operating cash flow for 2025 was $1.31 billion.

Strategy

HF Sinclair plans to grow its branded site network by approximately 10% annually and expand through joint ventures like Green Trail Fuels, which will supply fuel from its refineries. It completed a $38 million acquisition of Industrial Oils Unlimited in Q1 2026 to improve lubricants sales mix and base oil integration. The company is also optimizing operations to capture value from the Producer's Tax Credit in renewables. Capital return remains a priority, with a $1.0 billion share repurchase program and a recent 5% dividend increase to $0.525 per quarter.

Risks

• Commodity price volatility — Crude oil, feedstock, and refined product prices are volatile and beyond the company's control, directly impacting refining margins and results.
• Operational hazards — Refineries and facilities face risks of fire, explosion, spills, cyberattacks, and weather-related interruptions that may not be fully insured.
• Regulatory and credit changes — Changes in RINs, LCFS, or tax credit programs like the PTC could significantly affect renewables margins and overall earnings.
• Market competition — The refining, marketing, and lubricants industries are highly competitive, and increased competition could erode profitability.

Outlook

Management expects strong refining fundamentals in the Mid-Continent and West to persist into Q3 2026. They anticipate continued volatility in RINs and LCFS prices for renewables, but aim to capture more value from the PTC. For Q1 2026, crude runs were guided at 585,000-615,000 bpd, reflecting planned turnarounds at Puget Sound and Woods Cross.