01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
HF Sinclair Corporation reported a net loss attributable to HF Sinclair stockholders of $4 milliona, or $(0.02) per basic and diluted share, for the three months ended March 31, 2025, compared with net income of $315 million, or $1.57 per share, in the same period of 2024.
Sales and other revenues fell 9.3% to $6,370 millionb from $7,027 million, principally on lower refined product prices and volumes. Income from operations dropped to $81 million from $411 million. The filing attributes the decline mainly to lower adjusted refinery gross margins in the West and Mid-Continent regions, which fell to $9.12 per produced barrel sold from $12.70, and to lower refined product sales volumes.
Lower of cost or market inventory valuation adjustments added $117 millionc to pre-tax earnings, versus $219 million a year earlier. Other expense, net of $53 million included a $40 million loss on the assignment of the Cheyenne Pipeline, LLC interest and a $15 million debt extinguishment loss. Cash flow weakened sharply.
Operating cash flow was negative $89 milliond, compared with $317 million a year earlier, driven by working capital changes, lower net income and higher turnaround spending of $105 million. The company issued $1.4 billion of senior notes in January 2025 and used the proceeds to tender for and redeem debt. Cash and cash equivalents ended the quarter at $547 million, and total debt was $2,676 million.
Liquidity was approximately $3.4 billion at quarter end, including undrawn credit facilities. On April 3, 2025, the company replaced its existing revolving credit facilities with a new $2.0 billion senior unsecured facility maturing in April 2030. The Board declared a regular quarterly dividend of $0.50 per share on May 1, 2025, and the company made no share repurchases in the first quarter under its $1.0 billion May 2024 program, which had $799 million remaining.
The company guided to 600,000–630,000 barrels per day of crude runs for the second quarter, reflecting completion of the Tulsa turnaround and a Parco turnaround. The filing also describes a 2025 Consent Decree with the EPA, DOJ and New Mexico for the Navajo Artesia refinery, requiring a $34 million civil penalty and about $137 million of injunctive relief measures.
02—Key points
Key Highlights
- Net loss attributable to HF Sinclair stockholders of $4 million, or $(0.02) per share, versus net income of $315 million, or $1.57 per share, a year earlier.
- Sales and other revenues decreased 9.3% to $6,370 million, principally due to lower refined product sales prices and volumes.
- Adjusted refinery gross margin per produced barrel sold fell to $9.12 from $12.70, with lower margins in both the West and Mid-Continent regions.
- Operating cash flow was negative $89 million, versus $317 million in the prior-year period, reflecting working capital changes, lower net income and $105 million of turnaround expenditures.
- Issued $1.4 billion of senior notes in January 2025 and used the proceeds to tender for and redeem $997 million of debt, recognizing a $15 million early extinguishment loss.
- Entered a new $2.0 billion senior unsecured revolving credit facility maturing in April 2030 on April 3, 2025, after the quarter end.
- Declared a $0.50 per share quarterly dividend on May 1, 2025; no shares were repurchased in the quarter under the $1.0 billion May 2024 program, which had $799 million remaining.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 1, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $6.37B$7.03B | −9.3% |
| SG&A Expenses | $104.00M$103.00M | +1.0% |
| Operating Income | $81.00M$411.00M | −80.3% |
| Net Income | -$4.00M$315.00M | −101.3% |
| EPS (Basic) | $-0.02$1.57 | −101.3% |
| EPS (Diluted) | $-0.02$1.57 | −101.3% |
| Shares Outstanding (Basic) | 188.49M198.71M | −5.1% |
| Shares Outstanding (Diluted) | 188.49M198.71M | −5.1% |
05—Questions
Frequently Asked Questions
Why did HF Sinclair swing from a profit to a loss in the first quarter of 2025?
The filing attributes the decrease principally to lower adjusted refinery gross margins in the West and Mid-Continent regions and lower refined product sales volumes. Income from operations fell to $81 million from $411 million. Non-operating items also weighed on results, including a $40 million loss on assigning the Cheyenne Pipeline, LLC interest and a $15 million loss on early extinguishment of debt.
What drove the negative operating cash flow?
Operating cash flow was negative $89 million compared with $317 million a year earlier. The filing cites changes in working capital, lower net income and higher turnaround spending, with turnaround expenditures of $105 million versus $70 million in the prior-year period.
How is the company's debt and liquidity position?
Total debt was $2,676 million at March 31, 2025, and cash and cash equivalents were $547 million. Liquidity was about $3.4 billion, including undrawn credit facilities. The company said its liquidity was sufficient to fund planned capital projects and liquidity needs for the foreseeable future.
What did the company say about refinery operations and outlook for the second quarter?
The company expects to run between 600,000 and 630,000 barrels per day of crude oil in the second quarter of 2025, reflecting completion of the planned Tulsa turnaround as well as the planned Parco turnaround. It also expects comparable RINs and LCFS prices in the second quarter to those in the first quarter, and continued impact from uncertainty over PTC legislation on Renewables results.
What environmental liability did the company disclose?
HFS Navajo reached a settlement with the EPA, DOJ and New Mexico Environment Department, lodged as a 2025 Consent Decree for the Artesia refinery. Under it, HFS Navajo must pay a $34 million civil penalty, paid in installments through January 31, 2026, and implement injunctive relief estimated at $137 million, with deadlines ending in 2031. The decree becomes effective after court approval.
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