01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
HF Sinclair Corporation (NYSE: DINO) reported a sharp earnings decline for 2024.
Net income attributable to HF Sinclair stockholders was $177 milliona, or $0.91 per diluted share, compared with $1,590 million ($8.29 per share) in 2023 and $2,923 million ($14.28 per share) in 2022. The decrease was principally driven by lower adjusted refinery gross margins, which fell to $10.43 per produced barrel sold from $21.06 in 2023, partially offset by higher refined product sales volumes. Sales and other revenues declined to $28.58 billion from $31.96 billion, and income from operations fell to $261 million from $2.20 billion.
Cash flow from operations was $1.11 billionb, down from $2.30 billion, and EBITDA was $1.13 billion versus $2.90 billion a year earlier. The company ended 2024 with cash and cash equivalents of $800 million and total liquidity of approximately $3.3 billion. It repurchased $664 million of common stock during 2024 and paid $386 million in dividends, and the Board declared a regular quarterly dividend of $0.50 per share on February 20, 2025.
Subsequent to year-end, HF Sinclair issued $1.4 billionc of senior notes in January 2025 and used the proceeds to repay $350 million of HEP credit facility borrowings, complete a $646 million tender offer, and redeem HollyFrontier's 5.875% notes due 2026. Management's 2025 capital guidance totals $875 million, including $410 million for turnarounds and catalyst.
The filing also discloses a $34 milliond civil penalty and $137 million of injunctive relief and mitigation measures under a 2025 Consent Decree with the EPA, DOJ and New Mexico Environment Department related to the Navajo Refinery's Artesia facility. Management also reports that the DC Circuit vacated the EPA's denial of the company's small refinery exemption petitions in July 2024, though the final financial impact is not yet determinable.
02—Key points
Key Highlights
- Net income attributable to HF Sinclair stockholders fell to $177 million ($0.91 per diluted share) in 2024 from $1,590 million ($8.29) in 2023.
- Adjusted refinery gross margin per produced barrel sold decreased to $10.43 in 2024 from $21.06 in 2023, reflecting lower average sales prices.
- Sales and other revenues declined to $28.58 billion in 2024 from $31.96 billion in 2023; income from operations was $261 million versus $2.20 billion.
- Net cash provided by operating activities was $1.11 billion in 2024, compared with $2.30 billion in 2023; EBITDA was $1.13 billion versus $2.90 billion.
- Liquidity was approximately $3.3 billion at December 31, 2024, including $800 million of cash and undrawn credit facility capacity; the company repurchased $664 million of shares and paid $386 million in dividends during 2024.
- The 2025 Consent Decree requires a $34 million civil penalty and approximately $137 million of injunctive relief and mitigation measures at the Artesia refinery.
- 2025 planned total capital spending is $875 million, including $410 million for turnarounds and catalyst; the company issued $1.4 billion of senior notes in January 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $28.58B$31.96B | −10.6% |
| SG&A Expenses | $447.00M$497.00M | −10.1% |
| Operating Income | $261.00M$2.20B | −88.2% |
| Net Income | $177.00M$1.59B | −88.9% |
| EPS (Basic) | $0.91$8.29 | −89.0% |
| EPS (Diluted) | $0.91$8.29 | −89.0% |
| Shares Outstanding (Basic) | 192.07M190.03M | +1.1% |
| Shares Outstanding (Diluted) | 192.07M190.03M | +1.1% |
05—Questions
Frequently Asked Questions
Why did HF Sinclair's earnings decline so sharply in 2024?
The filing attributes the decrease in net income principally to lower adjusted refinery gross margins, which fell to $10.43 per produced barrel sold from $21.06 in 2023. Management cites lower average per-barrel sales prices, partially offset by lower crude oil and feedstock prices, and notes that high global supply of transportation fuels weighed on product margins in the Mid-Continent and West regions.
How much did HF Sinclair return to shareholders in 2024?
During 2024 the company repurchased $664 million of common stock under its share repurchase programs, including $456 million from REH Company in privately negotiated transactions, and paid $386 million in dividends, or $2.00 per share declared. At December 31, 2024, $799 million remained available under the May 2024 Share Repurchase Program.
What debt actions did HF Sinclair take after year-end 2024?
In January 2025 the company issued $1.4 billion of senior notes, comprising $650 million of 5.750% notes due 2031 and $750 million of 6.250% notes due 2035. It used the proceeds to repay $350 million of HEP Credit Agreement borrowings, complete a $646 million cash tender offer, and redeem HollyFrontier's 5.875% senior notes due 2026 for $156 million, with a further $195 million redemption of HF Sinclair 5.875% notes expected to close on February 21, 2025.
What are the material legal and environmental matters disclosed?
The company reached a settlement on January 17, 2025 with the EPA, DOJ and New Mexico Environment Department related to its Artesia refinery. Under the 2025 Consent Decree, HFS Navajo must pay a $34 million civil penalty and implement injunctive relief at an estimated cost of $137 million, with completion by 2031. The Puget Sound Refinery is also under discussion with government agencies, with no penalties demanded yet. Separately, the DC Circuit vacated the EPA's denial of the company's small refinery exemption petitions in July 2024, but the final impact is not yet determinable.
06—Continue