HF Sinclair Corporation

Welcome to H.S. Sinclair Corporation's third quarter 2025 conference call and webcast. Hosting the call today is Tim Goh, Chief Executive Officer of H.S. Sinclair. He is joined by Edna Atensov, Chief Financial Officer, Steve Ledbetter, EVP of Commercial, 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 at that time, please press star, followed by one on your touch-tone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. If you should require operator assistance, please press star zero. We ask that you keep or 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 Beery, Vice President, Investor Relations. Craig, you may now begin.

Thank you, Ellie. Good morning, everyone, and welcome to HF Sinclair Corporation's third quarter 2025 earnings call. This morning, we issued a press release announcing results for the quarter ending September 30, 2025. If you would like a copy of the earnings press release, you may find it 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. call also may include discussion of non-gap measures please see the earnings press release for reconciliations to gap 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 re-reading of the transcript and with that i'll turn the call over to tim go good morning everyone and thank you for joining our call i am pleased to report that hf sinclair's strong third quarter results

are underpinned by the measurable improvement in our operating and commercial performance, including the sequential increases in refining throughput and capture and continued reductions in operating costs. During the quarter, we returned $254 million in cash to shareholders and today announced a 50-cent quarterly dividend. We are pleased with the progress we have made on our key priorities and believe our year-to-date performance reflects the value of this strategic focus. Now, let me cover our business highlights. In refining, we delivered another quarter of sequential improvements in throughput, capture, and operating expenses per barrel. Gross margin per barrel benefited from strong cracks in our regions, along with small refinery exemptions granted by the EPA. The SRE benefit in the third quarter was comprised of $115 million in lower cost of goods and $56 million in higher revenue from the commercial optimization of our RINs position. We achieved a record low operating expense of $7.12 per throughput barrel, crossing over our near-term goal of $7.25 per barrel. Throughput was our second highest quarter on record, and we are on pace to establish many new annual records for the full year. Our marketing segment delivered record EBITDA in the quarter of $29 million, and realized an adjusted gross margin of 11 cents per gallon. We are very pleased with the growth we have achieved in our marketing segment, and we continue to unlock the value of the Sinclair branded stores, providing a consistent sales channel with margin uplift for our produced fuels. We have added 146 branded sites through third quarter 25, with more than 130 sites with contracts signed and expected to come online over the next six to 12 months. During the quarter, we returned $254 million in cash to shareholders consisting of 160 million in share repurchases and $94 million in regular dividends. Since the Sinclair acquisition in March of 2022, we have returned over $4.5 billion in cash to shareholders and have reduced our share count by over 61 million shares. As of September 30th, 2025, we still have approximately $589 million remaining on our share repurchase authorization, and we remain committed to returning excess cash to shareholders while maintaining our investment grade balance sheet. Also today, we announced that our board of directors declared a regular quarterly dividend of 50 cents per share payable on December 5th, 2025 to holders of record on November 19th, 2025. Now I will cover some strategic updates. We believe we are well positioned to supply the growing needs on the West Coast. As I mentioned earlier, we recently completed the CARB project at our PSR refinery, which gave us the capability to produce more CARB gasoline or CARB components that we can ship to the California market. In addition to that, we are announcing a JET project at our PSR refinery this quarter. that will give us the flexibility to produce more jet from diesel to supply the West Coast, depending on what the market is calling for. This project will be complete and in service following the turnaround this quarter. Finally, yesterday we announced we are evaluating a multi-phased expansion of our midstream refined products footprint across Pad 4 and Pad 5. This initiative is designed to address the increasing supply and demand imbalances in key Western markets, particularly Nevada and multiple markets in California, resulting from announced refinery closures on the West Coast. HF Sinclair believes its geographic footprint and current infrastructure provide an advantage position to quickly and efficiently deliver refined products where the market needs are strongest. Subject to board and regulatory approvals, The proposed multi-phase expansion projects under review are projected to enable incremental supply of up to 150,000 barrels a day of product into various West Coast markets. The first phase would increase capacity by a projected 35,000 barrels per day to move supply from our Rockies production into Nevada and is targeted to be online in 2028. This initial phase would include expanding the Pioneer pipeline a jointly owned pipeline with Phillips 66 from Sinclair, Wyoming, to Salt Lake City, Utah, and de-bottlenecking our wholly owned UNEV pipeline from Salt Lake City, Utah, to Las Vegas, Nevada. These projects reflect HF Sinclair's strategic focus on asset integration and value chain optimization of our refining, midstream, and marketing businesses. and are examples of how we can leverage our competitive advantages and geographic footprint to support our efforts to deliver accretive long-term growth well into the future. In closing, we remain committed to advancing our strategic priorities and believe our focus on reliability, integration, and optimization will drive future growth across our businesses. Looking ahead, we are constructive on the fundamentals of each of our businesses and, in particular, believe the support of refining backdrop positions us well as we head into 2026. With that, let me turn the call over to Agnes.