HF Sinclair(DINO) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, HF Sinclair Corporation reported sales and other revenues of $6,370 million, a decrease of 9.3$7,027 million in the same period of 2024[28]. - The net loss attributable to HF Sinclair stockholders for Q1 2025 was $4 million, compared to a net income of$315 million in Q1 2024, representing a significant decline[28]. - Revenues from external customers for the first quarter of 2025 totaled $6,370 million, a decrease from$7,027 million in the first quarter of 2024, representing a decline of approximately 9.3%[143]. - Net income for the three months ended March 31, 2025, was a loss of $2 million compared to a net income of$317 million for the same period in 2024[50]. - The company reported a net loss attributable to stockholders of $4 million, compared to a net income of$315 million for the same period last year[143]. - Operating income fell by 80% to $81 million in Q1 2025 compared to$411 million in Q1 2024[155]. - EBITDA decreased by 58% to $262 million in Q1 2025 from$617 million in Q1 2024[157]. - The company’s basic earnings per share for the three months ended March 31, 2025, was $(0.02), down from$1.57 in the same period of 2024[66]. Assets and Liabilities - Total current assets decreased to $4,987 million as of March 31, 2025, down from$5,014 million at the end of 2024[25]. - Total liabilities remained relatively stable at $7,289 million as of March 31, 2025, compared to$7,297 million at the end of 2024[25]. - HF Sinclair's total equity decreased to $9,253 million as of March 31, 2025, from$9,346 million at the end of 2024[25]. - The company’s accrued liabilities increased to $461 million as of March 31, 2025, compared to$377 million at the end of 2024[73]. - Total debt increased slightly to $2,676 million as of March 31, 2025, from$2,638 million at the end of 2024[156]. Cash Flow and Financing - Cash and cash equivalents at the end of Q1 2025 were $547 million, a decrease of 31.6$800 million at the beginning of the period[34]. - The company experienced a net cash used for operating activities of $89 million in Q1 2025, compared to a net cash provided of$317 million in Q1 2024[34]. - Net cash flows used for financing activities for the three months ended March 31, 2025, were $80 million, including$95 million paid in dividends and $350 million repaid under the HEP Credit Agreement[206]. - Liquidity as of March 31, 2025, was approximately$3.4 billion, consisting of $0.5 billion in cash and cash equivalents, an undrawn$1.65 billion credit facility, and $1.2 billion available under the HEP Credit Agreement[196]. Revenue Segments - Refined product revenues for the same period were$5,877 million, down 11.6% from $6,652 million in the prior year[50]. - Transportation fuels revenues decreased to$4,961 million from $5,555 million, reflecting a decline of 10.7$10.19 per barrel[161]. - Adjusted refinery gross margin per produced barrel sold in the Mid-Continent region decreased to $7.60 in Q1 2025 from$10.47 in Q1 2024[160]. - Adjusted refinery gross margin per produced barrel sold decreased by 28% from $12.70 in Q1 2024 to$9.12 in Q1 2025[176]. Environmental and Regulatory Matters - Environmental credit obligations increased to $71 million as of March 31, 2025, compared to$17 million at the end of 2024[73]. - The company has ongoing litigation regarding small refinery exemptions, with a favorable decision from the DC Circuit on July 26, 2024, vacating the EPA's denial of all small refinery exemption petitions[121]. - HFS Navajo reached a settlement agreement with the EPA, DOJ, and NMED, resulting in a new consent decree to resolve alleged violations of the Clean Air Act and New Mexico Air Quality Control Act[125]. - Under the 2025 Consent Decree, HFS Navajo is required to pay a total civil penalty of $34 million, with$10 million due to the United States and $10 million to the State of New Mexico within 30 days of the decree's effective date[126]. Shareholder Returns - The company declared dividends of$0.50 per common share, totaling $95 million for the current quarter, compared to$99 million in the same quarter of the previous year[50]. - A regular quarterly dividend of $0.50 per share was declared on May 1, 2025, payable on June 3, 2025[151]. - The company had remaining authorization to repurchase up to$799 million under the May 2024 Share Repurchase Program as of March 31, 2025[111]. - During the three months ended March 31, 2024, the company repurchased 2,930,742 shares for $166 million, while no shares were repurchased in the same period of 2025[111]. Risk Management - The company is exposed to commodity price risk and uses derivative contracts to mitigate price exposure related to crude oil and refined products[213]. - The company maintains various insurance coverages, including general liability and cyber insurance, but is not fully insured against certain risks due to insurability issues[219]. - A risk management oversight committee is in place to monitor the risk environment and mitigate identified risks that may affect goal achievement[221]. - Financial stability of counterparties is regularly reviewed, and no difficulties in honoring commitments under derivative contracts are expected[220].