HF Sinclair : Investor Presentation August 2024

Published: 2024-08-30 17:10:04 ET DINO

INVESTOR PRESENTATION

August 2024

NYSE: DINO

Disclosure Statement

Statements made during the course of this presentation that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "project," "will," "expect," "plan," "goal," "forecast," "strategy," "intend," "should," "would," "could," "believe," "may," and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements. Forward- looking statements are inherently uncertain and necessarily involve risks that may affect the business prospects and performance of HF Sinclair Corporation ("HF Sinclair"), and actual results may differ materially from those discussed during the presentation. These statements are based on management's beliefs and assumptions using currently available information and expectations as of the date thereof, are not guarantees of future performance and involve certain risks and uncertainties. All statements concerning HF Sinclair's expectations for future results of operations are based on forecasts for our existing operations and do not include the potential impact of any future acquisitions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the demand for and supply of feedstocks, crude oil and refined products, including uncertainty regarding the increasing societal expectations that companies address climate change and greenhouse gas emissions; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in HF Sinclair's markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products; the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to reductions in demand, accidents, unexpected leaks or spills, unscheduled shutdowns, infection in the workforce, weather events, global health events, civil unrest, expropriation of assets, and other economic, diplomatic, legislative, or political events or developments, terrorism, cyberattacks, vandalism or other catastrophes or disruptions affecting HF Sinclair's operations, production facilities, machinery, pipelines and other logistics assets, equipment, or information systems, or any of the foregoing of HF Sinclair's suppliers, customers, or third-party providers, and any potential asset impairments resulting from, or the failure to have adequate insurance coverage for or receive insurance recoveries from, such actions; the effects of current and/or future governmental and environmental regulations and policies, including compliance with existing, new and changing environmental, health and safety laws and regulations, related reporting requirements and pipeline integrity programs; the availability and cost of financing to HF Sinclair; the effectiveness of HF Sinclair's capital investments and marketing strategies; HF Sinclair's efficiency in carrying out and consummating construction projects, including HF Sinclair's ability to complete announced capital projects on time and within capital guidance; HF Sinclair's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of HF Sinclair to acquire complementary assets or businesses to HF Sinclair's existing assets and businesses on acceptable terms and to integrate any existing or future acquired operations and realize the expected synergies of any such transaction on the expected timeline; the possibility of vandalism or other disruptive activity, or terrorist or cyberattacks and the consequences of any such activities or attacks; uncertainty regarding the effects and duration of global hostilities, including shipping disruptions in the Red Sea, the Israel-Gaza conflict, the Russia-Ukraine war, and any associated military campaigns which may disrupt crude oil supplies and markets for HF Sinclair's refined products and create instability in the financial markets that could restrict HF Sinclair's ability to raise capital; general economic conditions, including economic slowdowns caused by a local or national recession or other adverse economic condition, such as periods of increased or prolonged inflation; limitations on HF Sinclair's ability to make future dividend payments or effectuate share repurchases due to market conditions and corporate, tax, regulatory and other considerations; and other business, financial, operational and legal risks. Additional information on risks and uncertainties that could affect the business prospects and performance of HF Sinclair is provided in the reports filed by HF Sinclair with the Securities and Exchange Commission. All forward-looking statements included in this presentation are expressly qualified in their entirety by the foregoing cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, HF Sinclair undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

2

Executive Summary

Positioned for Value Across All Segments

REFINING

MARKETING

RENEWABLES

▪

7 refineries in the Mid-

▪

Iconic DINO brand and

▪

10,000 BPD1 Renewable

Continent, West and

customer loyalty

Diesel Unit capacity at

Pacific Northwest

Sinclair, WY Refinery

regions

▪

Over 1,5002 branded

▪

6,000 BPD1 Renewable

▪

retail sites

678,000 BPD1 of refining

Diesel Unit capacity at

capacity

▪

Over 300 branded sites

Cheyenne, WY Refinery

▪

under license program

▪

9,000 BPD1 Renewable

Flexible refining system

outside of supply

with fleet wide discounts

footprint

Diesel Unit capacity at

to WTI

Artesia, NM Refinery

▪

▪

Sinclair branded

▪

Premium product

wholesale business

Pre-Treatment Unit at

distribution areas versus

generates an uplift

Artesia, NM Refinery

Gulf Coast

versus unbranded

sales

▪

Organic initiatives to

drive growth and

enhance returns

3

LUBRICANTS &

SPECIALTIES

MIDSTREAM3

1.

BPD: Barrels per day

3.

On December 1, 2023, HF Sinclair announced the completion of the transactions contemplated by the previously announced Agreement and Plan of

2.

Includes non-Sinclair branded sites

Merger, pursuant to which HF Sinclair acquired all of the outstanding common units representing limited partner interests in Holly Energy Partners, L.P.

from legacy HollyFrontier agreements.

not already owned by HF Sinclair and its subsidiaries for a combination of HF Sinclair common stock and cash.

HF Sinclair Asset Footprint

HF SINCLAIR REFINERIES

RENEWABLE DIESEL

FACILITY

HF SINCLAIR REFINERY +

LUBRICANTS PRODUCTION

LUBRICANTS &

SPECIALTIES FACILITY

HF SINCLAIR TERMINALS

HF SINCLAIR

DISTRIBUTION AREAS

MIDSTREAM

PRODUCT PIPELINES

MIDSTREAM

CRUDE PIPELINES

CRUDE HUB

CRUDE GATHERING

4

Note: On December 1, 2023, HF Sinclair announced the completion of the transactions contemplated by the previously announced Agreement and Plan of Merger, pursuant to which HF Sinclair acquired all of the outstanding common units representing limited partner interests in Holly Energy Partners, L.P. not already owned by HF Sinclair and its subsidiaries for a combination of HF Sinclair common stock and cash.

Environmental, Social and Governance (ESG)1

Environmental Social

Governance

Scope 1 and Scope 2 GHG Intensity Target

Renewable Fuels Investments

Recycling and Water Conservation

Product Innovation

"One HF Sinclair Culture" program instills integrity, teamwork and ownership at every level, as well as a focus and commitment to safety, human capital management and community relations, teamwork, ownership and inclusion

Safety "Goal Zero"

Inclusion

Human Capital Management

Community Relations

Board leadership provides significant industry expertise, alongside diverse business, financial and environmental, health and safety experience

Executive compensation strongly aligned with shareholders and long-term performance

5

Refining Overview

Expanded Footprint centered around Mid-Continent, Southwest, Rocky Mountain and Pacific Northwest with 678,000 BPD oil processing capacity

West Region

Puget Sound Refinery (Anacortes, WA)

6 western SD

Mid-Continent Region

El Dorado Refinery (El Dorado, KS)

Tulsa Refinery (Tulsa, OK)

Crude and Product Advantage

Proximity to North American Crude Production

Laid-In Crude Advantage

High Value Premium Product Distribution Areas

Regional Gasoline Pricing vs Gulf Coast1

2019

2020

2021

2022

2023

Average

$37

$32

$27

$22

$22.10

$16.91

$14.71

$17

$7.50

$12

$11.06

$1.46

$7

$1.87

$2

$(3)

Group 3 vs GC

PNW vs GC

Chicago vs GC Denver vs GC Phoenix vs GC

Salt Lake vs

Las Vegas vs

GC

GC

2023 Average Crude Slate

Regional ULSD Pricing vs Gulf Coast2

3%

8%

13%

Sweet

42%

Sour

Heavy

Wax Crude

34%

Other

$25

2019

2020

2021

2022

2023

Average

$20

$15.80

$11.71

$15

$8.17

$10.99

$10

$1.52

$6.15

$5

$(0.41)

$-

$(5)

Group 3 vs GC

PNW vs GC

Chicago vs GC Denver vs GC Phoenix vs GC

Salt Lake vs

Las Vegas vs

GC

GC

7

1. Gulf Coast: CBOB Unleaded 84 Octane Spot Price, Group 3: Unleaded 84 Octane Spot Price, PNW: Sub-octane Spot Price, Chicago: Unleaded CBOB 84 Octane Spot Price, Denver: CBOB 81.5 Octane Rack Price, Phoenix: CBG 84 Octane Rack Price, SLC: CBOB 81.5 Octane Rack Price, Las Vegas: CBOB 84 Octane Rack Price. Source: MarketView

2. Source: MarketView

Refining Segment Earnings Power

Illustrative Mid-Cycle Refining EBITDA1

HF Sinclair Index

$21.50

HF Sinclair Consolidated 3-2-1 Index3

$/barrel

$40

$39.57

HF Sinclair Index

Capture Rate

70%

Adjusted Refinery Gross Margin Per Barrel2

$15.00

Operating Expenses Per Barrel2

$7.25

Avg since 2019

$35

$30

$25

$36.04

Target Throughput

640,000

Refining SG&A (millions)

$225

Mid-Cycle Refining EBITDA

~$1.6 B

$21.26$21.03

$20

$15

$12.19

$10

2019

2020

2021

2022

2023

8

Marketing Overview

Diversifying with HF Sinclair's Iconic Brand and Integrated Distribution Network

Provides a consistent sales channel for produced fuels with stable margins as well as additional earnings from brand licensing and credit card programs

Footprint1:

Financial Highlights:

Driving growth and leveraging increased distribution network

9

Marketing Footprint

Broad Reach of Branded Retail Sites with Opportunity for Expansion within Current Asset Footprint1

10

1. Reflective of independent branded and licensed sites, which are not owned or operated by HF Sinclair Corporation. As of March 31, 2024.

Disclaimer

HF Sinclair Corporation published this content on 30 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on August 30, 2024 at 21:09:00 UTC.