HF Sinclair (DINO) Q2 2024 earnings summary

Executive summary

• Net income attributable to stockholders was $151.8M ($0.79 per diluted share) for Q2 2024, down from $507.7M ($2.62 per share) in Q2 2023; adjusted net income was $149.3M ($0.78 per share) vs. $503.8M ($2.60 per share) year-over-year.

• Achieved higher utilization and lower operating costs per barrel in refining, with strong contributions from Lubricants & Specialties and Midstream segments.

• Results were impacted by lower refining margins in both West and Mid-Continent regions due to high industry utilization rates.

• Renewables segment saw improved performance from higher sales volumes and feedstock optimization, despite weak RINs and LCFS prices.

• Returned $467M to shareholders via buybacks and dividends; declared a $0.50/share quarterly dividend.

Financial highlights

• Q2 2024 sales and other revenues were $7.85B, nearly flat year-over-year.

• Q2 2024 adjusted EBITDA was $405.8M, down from $868M in Q2 2023.

• Refining segment EBITDA was $187M, down from $732M in Q2 2023, due to lower gross margins despite higher sales volumes.

• Renewables segment achieved $2M adjusted EBITDA, up from -$11M in Q2 2023, driven by higher sales and feedstock optimization.

• Lubricants & Specialties EBITDA rose to $97M from $71M, despite a $14.4M FIFO charge.

• Midstream segment adjusted EBITDA increased to $110M from $88M, due to higher volumes and tariffs.

• Net cash from operations was $226M; capital expenditures totaled $84M for Q2 2024.

Outlook and guidance

• Q3 2024 crude oil runs expected between 570,000–600,000 BPD, reflecting planned maintenance at Parco and El Dorado refineries.

• Full-year 2024 capital spending guidance: $800M sustaining capital (including turnarounds/catalysts) and $75M growth capital.

• Near-term OpEx per barrel target is $7.25, with a long-term goal of $6.50 through process improvements.

• Marketing segment expects 10% branded site growth over the next 6–12 months, above previous targets.

• Renewables segment anticipates continued margin pressure from weak RINs and LCFS prices.