HF Sinclair(DINO) - 2023 Q2 - Quarterly Report

Financial Performance - Net income attributable to HF Sinclair stockholders for Q2 2023 was $507.661 million, compared to $1.221 billion in Q2 2022[293]. - EBITDA for Q2 2023 was $872.337 million, down from $1.805 billion in Q2 2022[293]. - Total revenues for the first half of 2023 were $13.758 billion, compared to $16.795 billion in the first half of 2022[295]. Refining Segment - Refining segment sales for Q2 2023 were $7.039 billion, a decrease from $10.289 billion in Q2 2022[295]. - Refinery gross margin per produced barrel sold was $22.22 in Q2 2023, down from $36.36 in Q2 2022[295]. - Produced barrels sold (BPD) in Q2 2023 were 598,180, compared to 655,570 in Q2 2022[295]. - The company reported a net operating margin per produced barrel sold of $14.38 in Q2 2023, down from $28.49 in Q2 2022[295]. Renewables Segment - Renewables segment sales for Q2 2023 reached $273.185 million, up from $194.578 million in Q2 2022, representing a 40.4% increase[297]. - Renewables gross margin for Q2 2023 was $14.379 million, compared to $1.916 million in Q2 2022, showing a significant improvement[297]. - Produced gallons sold in the renewables segment increased to 50,159 thousand gallons in Q2 2023 from 25,688 thousand gallons in Q2 2022, a growth of 95.1%[297]. - The average renewables operating expense per produced gallon sold decreased to $0.49 in Q2 2023 from $1.14 in Q2 2022, indicating improved cost efficiency[297]. - Net operating margin per produced gallon sold in the renewables segment improved to $(0.20) in Q2 2023 from $(1.07) in Q2 2022, showing a positive trend[297]. Marketing Segment - Marketing segment sales for Q2 2023 were $1.041 billion, down from $1.336 billion in Q2 2022, a decrease of 22.1%[299]. - Marketing gross margin for Q2 2023 was $32.627 million, compared to $24.969 million in Q2 2022, reflecting a 30.7% increase[299]. - Marketing segment gross margin per gallon sold remained stable at $0.09 in Q2 2023, compared to $0.07 in Q2 2022[299]. - Total marketing segment cost of products sold for Q2 2023 was $1.008 billion, down from $1.311 billion in Q2 2022, a reduction of 23.1%[299]. - The company reported a total of 692,816 thousand gallons sold in the marketing segment for the first half of 2023, compared to 420,019 thousand gallons in the same period of 2022, an increase of 64.7%[299]. Strategic Initiatives - The company is pursuing a non-binding proposal to acquire all outstanding common units of HEP not owned by HF Sinclair or its affiliates[11]. - Management is focused on integrating the Acquired Sinclair Businesses with existing operations to realize expected synergies[11]. Risks and Challenges - The company faces risks related to market conditions, regulatory approvals, and potential disruptions from geopolitical events[12].