Slide 1: Investor Presentation
INVESTOR PRESENTATION March 2023 NYSE: DINO
Slide 2: Disclosure Statement
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,” “foreca
Slide 3: Executive Summary
Executive Summary Positioned for Value Across All Segments SPECIALTY REFINING MARKETING RENEWABLES MIDSTREAM LUBRICANTS 7 refineries in the Mid- Iconic DINO brand and 10,000 BPD1 Renewable Integrated specialty Operate crude and Continent, West and customer loyalty Diesel Unit capacity at l
Slide 4: HF Sinclair Asset Footprint
HF Sinclair Asset Footprint 4
Slide 5: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG)1 Environmental Social Governance Scope 1 and Scope 2 GHG Intensity Target “One HF Sinclair Culture” program instills Board leadership provides significant integrity, teamwork and ownership at every industry expertise, alongside diverse Established goal to
Slide 6: Refining Overview
Refining Overview Expanded Footprint centered around Mid-Continent, Southwest, Rocky Mountain and Pacific Northwest with 678,000 BPD oil processing capacity West Region Mid-Continent Region Puget Sound Refinery (Anacortes, WA) El Dorado Refinery (El Dorado, KS) 149,000 BPD capacity 135,000 BPD c
Slide 7: Crude and Product Advantage
Crude and Product Advantage Proximity to North American Crude High Value Premium Product Markets Production Laid-In Crude Advantage Regional Gasoline Pricing vs Gulf Coast1 2018 2019 2020 2021 2022 Average Refinery location and configuration enables fleet- $25 $16.06 $17.29 wide crude slate discou
Slide 8: Refining Segment Earnings Power
Refining Segment Earnings Power Illustrative Mid-Cycle Refining EBITDA1 HF Sinclair Consolidated 3-2-1 Index2 $/Barrel Gulf Coast 3-2-1 Crack $10.00 $39.57 $40 Brent/WTI Spread $4.00 Product Transportation to HF Sinclair Markets $4.00 $35 HF Sinclair Index $18.00 $30 Capture Rate 70% Realized Gross
Slide 9: Marketing Overview
Marketing Overview Diversifying with HF Sinclair’s Iconic Brand and Integrated Distribution Network Provides a consistent sales channel for produced Driving growth and fuels with stable margins as well as additional leveraging increased earnings from brand licensing and credit card distribution netw
Slide 10: Marketing Footprint
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 14, 2022.
Slide 11: Renewables Overview
Renewables Overview Creating Large Scale Leading Renewables Business A leading U.S. producer of Renewable Diesel with 3 production facilities ~380 million gallons of expected renewable diesel annual Renewable Diesel Defined production Renewable diesel is a cleaner burning fuel Pre-treatment
Slide 12: Renewable Diesel Asset Profile
Renewable Diesel Asset Profile HF Sinclair expected to produce ~380 million gallons of renewable diesel annually Renewable Diesel Units Pre-Treatment Unit Sinclair Renewable Diesel Unit Pre-treatment capacity allows our Renewable Diesel Units to process a variety of feedstocks 10,000 BPD RDU co-
Slide 13: Lubricants & Specialties
Lubricants & Specialties Integrated Model from Crude to Finished Products • Rack Back captures the value between feedstock cost and base oil market prices (elastic index pricing) • Rack Forward captures the value between base oil market prices and product sales revenues from customers (inelastic ind
Slide 14: Lubricants & Specialty Products
Lubricants & Specialty Products Diverse Suite of Products Supplied to Major Industrial and Consumer Brands Brands • Finished Lubricants & • Finished Lubricants & • Finished Products & • Specialty Products Greases Greases Greases • Waxes Product • Specialty Products • Waxes • Base Oils Type • Waxes •
Slide 15: Opportunity Across the Value Chain
Opportunity Across the Value Chain Upgrade Existing Base Oils into Finished Products Converting one barrel of Base Oil sales into Finished Product sales results in an average margin increase of ~$50/bbl1 Margin Value $/bbl 2022 Product Slate by Volume Finished Lubricants & Greases Other Petrolatums
Slide 16: Rack Forward Multiple Up-Lift
Rack Forward Multiple Up-Lift Multiple Segment(s) Margin Profile Peer Group (EV / EBITDA) Integrateds: BP, CVX, SHEL, XOM Refining & 5-7x Variable Rack Back Refiners: CLMT, CVI, DK, MPC, PBF, PSX, VLO MLP 6-9x Stable DKL, MPLX, PBFX Rack Forward 10-13x Stable FPE GY, IOSP, KWR, NEU, VVV 16 Note: Mul
Slide 17: Holly Energy Partners (HEP) Company Profile
Holly Energy Partners (HEP) Company Profile Integrated systems of petroleum product and crude pipelines, storage tanks, distribution terminals, loading racks and processing units located at or near HF COMPANY Sinclair’s refining assets in high growth markets OVERVIEW Assets strategically located
Slide 18: HEP Assets
HEP Assets Holly Energy Partners owns and operates substantially all of the refined product pipeline and terminalling assets that support HF Sinclair’s refining and marketing operations in the Mid- Continent, Southwest and Northwest regions of the United States Approximately 4,400 miles of crude o
Slide 19: HEP Ownership Structure
HEP Ownership Structure HF SINCLAIR CORPORATION Corporate Ratings: Baa3/BBB-/BBB- 99.999% interest (HF Sinclair) GENERAL PARTNER (GP) HOLLY LOGISTIC SERVICES L.L.C. PUBLIC Non-economic GP Interest 59,630,030 HEP units1 47% LP interest 66,810,171 HEP units1 $1,085mm Value2 53% LP interest $1,223mm Va
Slide 20: HEP Avenues for Growth
HEP Avenues for Growth OPPORTUNITIES WITH ORGANIC EXTERNAL TRANSACTIONS HF SINCLAIR Leverage HEP’s Pursue logistics assets in Partnering with HF existing footprint to HEP’s current geographic Sinclair to build and/or capitalize on region acquire new commercial assets/businesses Replace incum
Slide 21: HEP Acquisition of Sinclair Transportation Highlights
HEP Acquisition of Sinclair Transportation Highlights Expansive Network of Crude and Products Assets in Key Demand Centers Pipelines 1,200 miles of pipelines Regional crude gathering system for Sinclair’s refineries and 3rd parties Combined Company 70-75% of revenues tied to long-term MVCs R
Slide 22: HEP Capital Allocation Strategy
HEP Capital Allocation Strategy1 Strategy Sustainable Visible Deleveraging Increased Delivers: Free Cash Flow Pathway unitholder returns Near-term Mid to Long-term Strategy Continue to reduce leverage2 Focus on funding all capex and distributions within operating cash flow Pay sustainable quar
Slide 23: Financial Strategy
7 a FINANCIAL STRATEGY ACHE Sinclar
Slide 24: Driving Significant Uplift to Free Cash Flow
Driving Significant Uplift to Free Cash Flow Illustrative Mid-Cycle Adjusted EBITDA Uplift1: ($mm's) HFC PSR Sinclair HF Sinclair REFINING $1,000 $175 $175 $1,350 MIDSTREAM $350 $75 $425 RENEWABLES $250 $150 $400 MARKETING $50 $50 LUBRICANTS $250 $250 EXPECTED ANNUAL SYNERGIES $100 TOTAL ADJUSTED EB
Slide 25: Sinclair Acquisition Synergies
Sinclair Acquisition Synergies Transaction to Drive Cost Savings & Efficiencies Realized Annual Synergies $20 million $40 million $100 million $40 million Commercial Operating expense SG&A improvements reductions Downward integration of Renewable diesel logistics Corporate savings Branded Whol
Slide 26: Capital Allocation Strategy
Capital Allocation Strategy1 Free Cash Flow2 Drives Capital Returns & Balanced Capital Allocation Strategy Sustainable Free Cash Visible Deleveraging Increase shareholder Delivers: Flow Pathway returns Near-term Mid to Long-term 2023 and Beyond Pay $0.45 regular quarterly dividend Target 50% Payout
Slide 27: Appendix
7 a APPENDIX ACHE Sinclar
Slide 28: HF Sinclair Capital Structure
HF Sinclair Capital Structure Strengthening Credit Profile through Reduced Leverage, Increased Scale and Portfolio Diversification HF Sinclair Consolidated Capital Structure: as of 12/31/2022 ($mm's) HF Sinclair Cash and Cash Equivalents $1,665 HF SINCLAIR CORPORATION 2.625% Senior Notes due 2023 $3
Slide 29: HEP Total Tariffs and Fees Reconciliation
HEP Total Tariffs and Fees Reconciliation Holly Energy Partners Year Ended December 31, 2022 (In thousands) Revenues $ 547,480 Tariffs and fees not included in revenues 94,592 Total Tariffs and Fees $ 642,072 Total Tariffs and Fees are calculated as revenues plus tariffs and fees not included in rev
Slide 30: Business Definitions
Business Definitions BPD: the number of barrels per calendar day of crude oil or petroleum products. Blenders Tax Credit (BTC): Federal tax credit where qualified biodiesel blenders are eligible for an income tax credit of $1.00 per gallon of biodiesel or renewable diesel that is blended with petrol
Slide 31: Non-GAAP Definitions
Non-GAAP Definitions Non GAAP measurements: We report certain financial measures that are not prescribed or authorized by U. S. generally accepted accounting principles ("GAAP"). We discuss management's reasons for reporting these non-GAAP measures below. Although management evaluates and presents t
Slide 32: Non-GAAP Definitions
Non-GAAP Definitions Distribution Coverage Ratio: Distribution coverage ratio is the ratio of distributable cash flow attributable to GP and LP unitholders to total GP and LP distributions declared. Earnings Per Share (EPS): earnings per share is calculated as net income (loss) attributable to stock
Slide 33: HF Sinclair Index
HF Sinclair Index Note: Updates to this index are published on a monthly basis on the first day of each month under the “HF Sinclair Index” tab of the HF Sinclair Investor Relations website at https://investor.hfsinclair.com/investor-relations/default.aspx 33 1. West region includes Puget Sound Refi
Slide 34: HF Sinclair Disclosure
HF Sinclair Disclosure Light Product Index Appendix Product Yield by Region Feedstocks by Region Expected Turnarounds in 2023 Average Product Yield 2022 Average Crude Slate 2022 Refinery Tim ing Length Units Index MidCon West Index MidCon West Puget Sound 1Q23 40 days Crude/Vacuum, Coker, Alky Gasol
Slide 35: Contact
2828 N. Harwood, Suite 1300 Dallas, TX 75201 214-954-6510 HFSinclair.com Craig Biery | VP, Investor Relations Trey Schonter | Manager, Investor Relations investors@hfsinclair.com 214-954-6510 NYSE: DINO