HF Sinclair Corporation

Valerie Pompa, EVP of Operations, and Matt Joyce, SVP of Lubricants and Specialties. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question during the time, please press star one on your touchtone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing the star one again. If you should require operator assistance, please press star zero. We ask that you please limit yourself to one question and one follow-up. Additionally, we ask that you pick up your handset to allow optimal sound quality. Please note that this conference is being recorded. It is now my pleasure to turn the floor over to Craig Berry, Vice President, Investor Relations. Craig, you may begin.

Thank you, Kathleen. Good morning, everyone, and welcome to HF Sinclair Corporation's first quarter 2024 earnings call. This morning, we issued a press release announcing results for the quarter ending March 31st, 2024. If you would like a copy of the earnings press release, you may find one on our website at hfsinclair.com. Before we proceed with remarks, please note the safe harbor disclosure statement in today's press release. In summary, it says statements made regarding management expectations, judgments, or predictions are forward-looking statements. These statements are intended to be covered under the safe harbor provisions of federal security laws. There are many factors that could cause results to differ from expectations, including those noted in our SEC filings. The call also may include discussion of non-GAAP measures. Please see the earnings press release for reconciliations to GAAP financial measures. Also, please note any time-sensitive information provided on today's call may no longer be accurate at the time of any webcast replay or rereading of the transcript. And with that, I'll turn the call over to Tim.

Good morning, everyone. We are pleased to report our first quarter 2024 results with you today. 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 business 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 billion share repurchase authorization, demonstrating our commitment to shareholder returns. Now let me cover our segment highlights before turning over to Agnes. In refining for the first quarter of 2024, we generated solid financials despite experiencing seasonal, seasonal, demand weakness for transportation fuels. We continue to focus on the operations excellence of our assets, resulting in improved reliability during the winter months and successful execution of our planned maintenance. The scheduled turnaround at our Puget Sound refinery in the first quarter that continued into April was completed on time and on budget. On the commercial side, we optimized our crude slate in order to capture the favorable differentials for heavy Canadian and thin crude crude oil. The year-over-year improvements in our throughput rates, increased heavy sour crude oil runs, and lower OPEX per barrel illustrate the progress we've made towards our reliability and optimization priorities. In renewables, for the first quarter of 2024, weakened RINs and LCFS credit prices resulted in a 16% decline in our renewable diesel indicator compared with the fourth quarter of 2023. Despite the economic headwinds of the quarter, we continue to focus on feedstock optimization by increasing low CI feedstocks and reducing our high cost feedstock inventory. In addition, we continue to improve our renewable diesel operations by improving reliability and decreasing operating costs. In the marketing segment in the first quarter of 2024, we saw strong value in our Sinclair branded sites as the marketing business continued to provide a consistent sales channel with margin uplift for our branded fuels. We continue to target 5% or more annual growth in the number of branded sites and are encouraged by what we are seeing in our store growth pipeline for 2024. In lubricants and specialties, our focus on sales mix optimization across our finished products portfolio resulted in another strong quarter, despite weakened base oil prices in the period. Our integrated business model continues to deliver stable margins in a volatile market, resulting in a consistently strong EBITDA run rate over the past three years. In midstream, we are pleased with the progress of integrating the HEP asset into our consolidated portfolio, and we'll continue to look for opportunities to optimize our logistics business. In the first quarter, we returned $269 million to shareholders through share repurchases and dividends. As of April 30th, 2024, we have repurchased an additional 296 million from REH Co. in the second quarter, reducing our share count by over 7.9 million shares year to date. Since March 2022, we have repurchased over 53 million shares, or roughly 89% of the shares issued for our Sinclair transaction. This morning, we announced a new $1 billion share repurchase authorization, replacing our previous $1 billion authorization, of which approximately $214 million remained, demonstrating our commitment to our long-term cash return strategy and long-term payout ratio. while maintaining a strong balance sheet and investment grade rating. Today, we also announced that our board of directors declared a regular quarterly dividend of 50 cents per share payable on June 5th, 2024 to holders of record on May 22nd, 2024. Looking forward, as we head into the summer driving season, we expect a favorable market environment and combined with further progress against our corporate priorities We believe we are well positioned to generate strong earnings and cash flow. With that, let me turn the call over to Adam.