HF Sinclair NYSE: DINO reported first-quarter 2026 net income attributable to shareholders of $648 million, or $3.56 per diluted share, as leadership emphasized safe operations, commercial optimization, and continued execution of the company’s strategy amid geopolitical-driven market volatility.
Leadership update and market backdrop
Chief Executive Officer Franklin Myers opened the call by noting that first quarters can be challenging for the company due to weather, economic softness in certain markets, and typical turnaround activity. Myers said the quarter’s performance reflected “continuing improvement in our operations,” adding that operations “ran safely in compliance and reliably.”
Myers also addressed a previously disclosed leadership situation, stating that the company’s CEO and CFO took leaves of absence during the quarter and that the board is evaluating the company’s future leadership. He said he will continue serving as CEO and president in the interim, but the company would not address the board process on the call.
Management repeatedly referenced the impact of military conflict in the Middle East on energy markets. Myers said the conflict has created “substantial and material disruption” to crude oil and other products, driving market volatility. EVP of Commercial Steven Ledbetter later described the global disruption as centered in “heavy distillate producers,” adding that diesel and jet supplies “were low… and they’re getting lower.”
First-quarter financial results and segment performance
Acting CFO Vivek Garg said the quarter’s GAAP results included special items that “collectively increased net income by $521 million.” Excluding special items, Garg reported adjusted net income of $127 million, or $0.69 per diluted share, compared with an adjusted net loss of $50 million (-$0.27 per diluted share) in the first quarter of 2025. Adjusted EBITDA was $426 million versus $201 million a year earlier.
Garg highlighted performance by segment:
- Refining: Excluding a lower-of-cost-or-market (LCM) inventory valuation adjustment benefit of $604 million, adjusted EBITDA was $55 million versus -$8 million in the prior-year quarter. Garg said the increase was driven principally by higher adjusted refinery gross margins in the West region and increased refined product sales volume, partially offset by lower adjusted refinery gross margins in the MidCon. Garg also said small refinery RINs waiver activity granted by the EPA in the fourth quarter of 2025 increased adjusted refinery gross margin by $21 million in the first quarter of 2026.
- Renewables: Excluding an LCM benefit of $68 million, adjusted EBITDA was $133 million versus negative $17 million a year ago. Garg attributed the improvement to increased sales volume and higher adjusted renewable gross margins tied to a narrowing BOHO spread, higher RIN prices, and recognition of “significantly more producers tax credit benefits.” He said results included $49 million of prior-year production tax credit benefits recognized following a February 2026 proposed ruling by the U.S. Treasury and IRS. Total sales volumes were 52 million gallons versus 44 million gallons in the first quarter of 2025.
- Marketing: EBITDA was $28 million versus $27 million. Branded fuel sales volumes were 325 million gallons versus 294 million gallons.
- Lubricants & Specialties: Adjusted EBITDA was $103 million versus $85 million. Garg said the increase was primarily driven by a FIFO benefit of $53 million compared with $8 million a year ago, partially offset by dislocation between rising feedstock costs and product sales price increases.
- Midstream: Adjusted EBITDA was $111 million versus $119 million. Garg said the decline was primarily driven by marginally higher operating costs tied to a “fuel contamination incident at one of our product terminals in Colorado.”
Operationally, Ledbetter said HF Sinclair completed turnarounds at Puget Sound and Woods Cross and still ran crude charge “at the upper end of our guided runs,” averaging 613,000 barrels per day. Garg reported crude oil charge averaged 613,000 barrels per day versus 606,000 barrels per day in the prior-year period.
Operational and commercial highlights
Ledbetter said the company posted “an excellent safety quarter with no tier 1 process safety events,” despite a heavy turnaround load and harsh winter weather. He added that no planned turnaround is scheduled until the El Dorado turnaround “towards the back end of the third quarter.”
On refining markets, Ledbetter said management was encouraged by “refining margin strength in our regions” heading into summer driving season. He also discussed tightness in PADD 5, noting reduced imports as Asian producers curtailed runs. To capture West Coast conditions, he said the company has pursued flexibility projects at Puget Sound, including the ability to “produce and swell the gasoline pool to either make CARB or sell high-valued unfinished components,” and moving alkylate into California’s gasoline pool.
Ledbetter also described a project enabling Puget Sound to swing about 7,000 barrels per day between diesel and jet, “depending on the market environment,” and said it is “paying off given the current market conditions.”
On renewables, Ledbetter told analysts the business benefited from more than market tailwinds. He cited changes to feedstock strategy—moving “much closer direct to sources near our facilities,” staying prompt, and “hedging without anything out into the future”—along with a broader market placement strategy beyond California, leveraging the integrated value chain in the Pacific Northwest and into Canada, and “OpEx discipline” including structural cost reductions and catalyst optimization. For the second quarter, he said the company was not guiding to specific utilization but expected optimization “north of 70% utilization net of all the planned events.”
In lubricants, SVP Matt Joyce said the business experienced “rapid and sharp cost increase” late in the quarter that he expects to persist into the second and third quarters. Joyce said the company has secured needed raw material supply for the balance of the year and has implemented “multiple pricing actions” to offset higher raw material costs.
Capital returns, balance sheet, and 2026 guidance
HF Sinclair returned $167 million to shareholders during the quarter, consisting of $91 million in regular dividends and $76 million in share repurchases, Ledbetter said. He added that since the Sinclair acquisition in March 2022, the company has returned more than $4.9 billion to shareholders and reduced its share count by over 66 million shares.
The company also declared a regular quarterly dividend of $0.50 per share, payable June 2, 2026, to shareholders of record as of May 11, 2026.
Garg reported net cash provided by operations of $457 million, which included $119 million of turnaround spending. Capital expenditures were $102 million in the quarter. As of March 31, 2026, liquidity was approximately $3.15 billion, including about $1.15 billion of cash and an undrawn $2 billion unsecured credit facility. Debt outstanding was $2.8 billion, with a debt-to-cap ratio of 22% and net debt-to-cap ratio of 13%.
For the second quarter of 2026, Garg guided to refinery crude runs of 600,000 to 630,000 barrels per day, reflecting planned maintenance at Parco and Navajo and unplanned maintenance at El Dorado. Garg also said full-year 2026 capital spending guidance was unchanged.
Asked about capital returns amid leadership transition, Garg said the company would “continue to execute on our capital allocation strategy” and repurchase shares opportunistically under its 2024 program, without guiding to the pace or amount of buybacks.
Strategy and outlook: integration, product flexibility, and RINs policy
Management emphasized that strategy remains intact. Ledbetter said the executive team “is still here and is executing diligently,” focusing on safety, reliability, and leveraging the integrated value chain while growing marketing, midstream, and lubricants.
Myers said he is serving as CEO in part to provide the executive team confidence to continue executing the plan and added, “There is no letup on the focus of what we’re trying to do here.”
On crude supply, Ledbetter said HF Sinclair does not face the availability constraints that some global refiners have cited, pointing to U.S. connectivity and the company’s ability to run various grades, including Canadian crude, North Slope barrels, and domestic light sweet crudes. On pricing, he said Brent/WTI volatility has widened the spread and that the curve remains “steeply backwardated,” which the company is monitoring due to impacts on laid-in crude costs.
On policy, Ledbetter addressed small refinery exemptions (SREs) and Renewable Volume Obligations (RVOs), saying RINs and RVO have “run to unprecedented records” and calling the RVO burden “extreme.” He said HF Sinclair has petitions out for five refineries it believes qualify for relief, but the company would not quantify the value or speculate on outcomes or duration.
In response to questions about system capacity, Myers said the company has had “recent and active conversations” about reinvestment to increase throughput over time, though not immediately, and noted the board plans to consider it as part of long-term planning. Ledbetter added that projects like the Puget Sound flexibility work and the El Dorado vacuum tower project are expected to improve yields, capture, and reliability.
On potential portfolio moves, Myers said the company will continue evaluating capital allocation across assets and remain opportunistic, but added HF Sinclair is “not gonna be… knee-jerk” following a strong quarter in renewables, arguing the company has endured weaker conditions and intends to “go harvest these good times.”
About HF Sinclair NYSE: DINO
HF Sinclair Corporation is a diversified energy manufacturing company engaged in the refining, marketing, and transportation of petroleum products across the United States. The company operates a network of refineries and processing facilities that convert crude oil and other feedstocks into fuels and specialty products. Its integrated model encompasses upstream supply agreements, midstream logistics, and downstream marketing channels, positioning HF Sinclair as a key supplier of refined products to wholesale and retail markets.
The company’s core product slate includes gasoline, diesel, jet fuel, and renewable fuels such as renewable diesel and biodiesel.
Read More
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider HF Sinclair, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and HF Sinclair wasn't on the list.
While HF Sinclair currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.
Get This Free Report
