HF Sinclair Corp.

Strong Q2 financial/operating performance across segments (major upside vs 2025) - Net income: $892M ($4.93/share); adjusted net income $960M ($5.31/share) vs $322M ($1.70/share) in Q2 2025. - Adjusted EBITDA: $1.5B vs $665M in Q2 2025 (big drivers: Refining $1.0B vs $476M, and Lubricants & Specialties $207M vs $55M). - Refining volumes/costs: crude oil charge averaged ~640 kbpd, above guidance; reflects operational improvements and favorable market conditions. - Shareholder returns: returned $265M in the quarter ($89M dividends + $179M buybacks); board also raised the quarterly dividend to $0.525/share (+5%).

Guidance/outlook: supportive refining environment into fall; capex steady; turnarounds planned - Q3 crude run-rate guidance: 590–620 kbpd, reflecting the planned El Dorado turnaround in September. - Full-year 2026 capex: no change to guidance (but “subject to change” as projects are evaluated). - Management expects refining fundamentals to remain supportive through the fall; confidence driven by tight supply / low inventories vs 5-year averages and geopolitical-driven market structure. - Marketing: branding momentum continues—63 branded sites added in Q2 with 100+ in the pipeline expected online in 6–12 months; still targeting ~10% branded site growth annually.

Big strategic move (surprising/big headline): spin/separation of Lubricants & Specialties - Announced plans to separate the Lube segment via capital markets into an independent public company (executed over 12–18 months). - Rationale: create enhanced strategic focus and capital allocation, distinct investor profiles, and improve operational agility/cash generation. - Key actions inside the separation: - Mississauga base oil refinery assets will be retired (economic long-term contribution not sufficient given location/size/scope). - Finished products business continues via new commercial agreements with two global base-oil manufacturers + continued access to supply from Tulsa refinery. - Capital-light model goal: independent lube business designed for stronger/more consistent free cash flow. - Expected lube EBITDA mid-cycle: guidance-style commentary referenced ~$300M–$350M trailing-12-month EBITDA as a rough framework; early planning means cost/“synergy” estimates not fully quantified yet (additional public-company costs expected but likely offset by “spotlight”/multiple effects).