HF Sinclair Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. HF Sinclair Corporation is an independent energy company operating refineries in Kansas, Oklahoma, New Mexico, Wyoming, Washington, and Utah. The company produces and markets gasoline, diesel, jet fuel, renewable diesel, and lubricants. In January 2026, the company acquired Industrial Oils Unlimited for $38 million to expand its specialty lubricant portfolio.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $7,123 million | $6,370 million |
| Net Income (Attributable to Stockholders) | $648 million | ($4 million) Loss |
| Earnings Per Share (Diluted) | $3.56 | ($0.02) |
| Operating Cash Flow | $457 million | ($89 million) Used |
| Adjusted Refinery Gross Margin (per barrel) | $9.95 | $9.12 |
| Total Debt (Long-term) | $2,771 million | $2,769 million |
| Cash and Cash Equivalents | $1,148 million | $978 million |
| EBITDA | $1,097 million | $262 million |
Material Changes vs. Prior Period
- Profitability Surge: Net income swung from a $4 million loss in Q1 2025 to a $648 million profit in Q1 2026. This was primarily driven by a $672 million non-cash benefit from "Lower of cost or market" inventory valuation adjustments (compared to $117 million in Q1 2025) and improved refining margins.
- Revenue Growth: Sales increased 12% year-over-year due to higher average refined product prices and increased sales volumes.
- Refining Margins: Adjusted refinery gross margin per barrel sold increased 9% to $9.95, driven by stronger margins in the West region, partially offset by weaker Mid-Continent margins and planned turnarounds at Puget Sound and Woods Cross refineries.
- Renewables Performance: The Renewables segment saw higher margins due to narrowing BOHO spreads, higher RINs prices, and $49 million in recognized Producer's Tax Credit (PTC) benefits from prior years.
- Other Income: Other income improved significantly to $15 million (from a $53 million expense in Q1 2025), aided by a $14 million gain on the settlement of precious metals and the absence of a $40 million loss on the sale of an equity method investment recorded in the prior year.
Guidance, Outlook, and Risks
- Operational Outlook: For Q2 2026, the company expects to run 600,000–630,000 barrels per day of crude oil, reflecting the completion of turnarounds at Puget Sound and Woods Cross, alongside planned maintenance at Parco and Navajo and unplanned maintenance at El Dorado.
- Capital Allocation: The company declared a quarterly dividend of $0.50 per share. It repurchased $76 million of common stock in Q1 2026, with $383 million remaining under its $1.0 billion 2024 Share Repurchase Program. Total expected capital spending for 2026 is $775 million ($650 million sustaining, $125 million growth).
- Regulatory Risks: The company is involved in ongoing litigation regarding EPA Renewable Fuel Standard (RFS) small refinery exemptions. While the DC Circuit ruled in the company's favor regarding the Parco refinery in April 2026, other exemption cases remain pending with opening briefs due in July 2026.
- Operational Risks: Results were marginally impacted by a fuel-contamination incident at a Colorado terminal in Q1 2026. The company also notes risks related to global hostilities, trade policies, and commodity price volatility.
Investor Verification Checklist
- Inventory Valuation Impact: Verify the sustainability of earnings given the $672 million non-cash inventory valuation adjustment benefit, which significantly inflated Q1 2026 net income.
- Refining Utilization: Monitor the impact of unplanned maintenance at the El Dorado refinery and the execution of planned turnarounds on Q2 throughput and margins.
- RFS Litigation Outcome: Track the resolution of the "Consolidated Cases" regarding small refinery exemptions, as a negative outcome could increase RINs costs (which were $358 million in Q1 2026).
- Renewables Margins: Assess the durability of the Producer's Tax Credit (PTC) benefits and RINs pricing that drove the Renewables segment's performance.
- Debt Structure: Review the $2.8 billion in senior notes and the $2.0 billion credit facility (currently unutilized) to confirm liquidity flexibility remains intact.