Slide 1: Investor Presentation September 2022
NYSE: DINO INVESTOR PRESENTATION September 2022
Slide 2: Disclosure Statement
2 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,” “fore
Slide 3: Executive Summary: Positioned for Value Across All Segments
3 Executive Summary Positioned for Value Across All Segments 1. BPD: Barrels per day 2. As of June 30, 2022 YTD. See definition and reconciliation in Appendix. REFINING MARKETING RENEWABLES SPECIALTY LUBRICANTS MIDSTREAM 7 refineries in the Mid- Continent, West and Pacific Northwest regions 678,
Slide 4: HF Sinclair Asset Footprint
4 HF Sinclair Asset Footprint Note: Cheyenne Renewable Diesel facility mechanically complete in Q4 2021 and fully operational in Q1 2022. Artesia Renewable Diesel facility completed and fully operational in Q2 2022.
Slide 5: Environmental, Social and Governance (ESG)
5 Environmental, Social and Governance (ESG)1 1. Please see HF Sinclair 2021 Sustainability Report for additional ESG related information. https://www.hfsinclair.com/sustainability/sustainability-report/default.aspx GHG Intensity Target Established goal to reduce net emissions intensity by 25% by
Slide 6: Refining Overview
6 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) 149,000 BPD capacity Crude slate: Canadian mixed sweet and sour and Alaskan North Slope
Slide 7: Crude and Product Advantage
7 Crude and Product Advantage Proximity to North American Crude Production High Value Premium Product Markets Laid-In Crude Advantage Refinery location and configuration enables fleet- wide crude slate discounts to WTI Approximately 140,000 – 160,000 barrels per day Canadian, primarily heavy swe
Slide 8: Refining Segment Earnings Power
8 Refining Segment Earnings Power Mid-Cycle Refining EBITDA1 Gulf Coast 3-2-1 Crack $10.00 Brent/WTI Spread $4.00 Product Transportation to HFC Markets $4.00 HFC Index $18.00 Capture Rate 70% Realized Gross Margin Per Barrel $12.60 Operating Expense Per Barrel $6.00 Target Throughput 640,000 Refinin
Slide 9: Marketing Overview
9 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 Footprint: Iconic DINO brand 300+ distribu
Slide 10: Marketing Footprint
10 Marketing Footprint Broad Reach of Branded Retail Sites with Opportunity for Expansion within Current Asset Footprint1 1. Reflective of independent branded and licensed sites that are not owned or operated by HF Sinclair Corporation. As of March 14, 2022.
Slide 11: Renewables Overview
11 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 production Pre-treatment unit providing significant feedstock flexibility1 Size and scale
Slide 12: Renewable Diesel Asset Profile
12 Renewable Diesel Asset Profile HF Sinclair expected to produce ~380 million gallons of renewable diesel annually Renewable Diesel Units Sinclair Renewable Diesel Unit 10,000 BPD RDU co-located at Sinclair, WY refinery Operational since 2018 LCFS program pathways in California and British Co
Slide 13: Lubricants & Specialties: Integrated Model from Crude to Finished Products
13 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
Slide 14: Lubricants & Specialty Products
14 Lubricants & Specialty Products Diverse Suite of Products Supplied to Major Industrial and Consumer Brands Brands Product Type • Finished Lubricants & Greases • Specialty Products • Waxes • White Oils • Base Oils • Finished Lubricants & Greases • Waxes • White Oils • Petrolatums • Specialty Produ
Slide 15: Opportunity Across the Value Chain
15 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 uplift of ~$50/bbl 2021 Product Slate by Volume Finished Lubricants & Greases Petrolatums Waxes White Oils Specialt
Slide 16: Rack Forward Multiple Up-Lift
16 Rack Forward Multiple Up-Lift Note: Multiple represents range of EV/EBITDA multiples for referenced peer group. Segment(s) Multiple Margin Profile Peer Group Refining & Rack Back 5-7x Variable Integrateds: BP, CVX, SHEL, XOM Refiners: CLMT, CVI, DK, MPC, PBF, PSX, VLO MLP 6-9x Stable DKL, MPLX, P
Slide 17: Lubricants & Specialties Mid-Cycle Rack Forward Adjusted EBITDA
17 Lubricants & Specialties Mid-Cycle Rack Forward Adjusted EBITDA ($ in millions) $265 Target Multiple 11x Enterprise Value ($ in millions) $2,915 Mid-Cycle Rack Forward EBITDA RF Adjusted EBITDA Margin 11-16% Annual SG&A $190 - $200MM Annual DD&A $80 - $90MM Upside with Organic Growth and
Slide 18: Holly Energy Partners (HEP) Company Profile
18 Holly Energy Partners (HEP) Company Profile STABLE EARNINGS FINANCIAL TARGETS & GUIDANCE BALANCE SHEET HIGHLIGHTS Revenues are nearly 100% fee-based with de minimis commodity risk Customer base consisting of refining companies (contracts not with E&Ps) Minimum Volume Commitments (MVCs) comp
Slide 19: HEP Assets
19 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 crud
Slide 20: HEP Ownership Structure
20 HEP Ownership Structure 99.999% interest 66,810,171 HEP units1 53% LP interest $1,171mm Value2 59,630,030 HEP units1 47% LP interest $1,039mm Value2 HF SINCLAIR CORPORATION (HF Sinclair) GENERAL PARTNER (GP) HOLLY LOGISTIC SERVICES L.L.C. HOLLY ENERGY PARTNERS, L.P. (HEP) PUBLIC Non-economic GP I
Slide 21: HEP Avenues for Growth
21 HEP Avenues for Growth ORGANIC EXTERNAL TRANSACTIONS OPPORTUNITIES WITH HF SINCLAIR Leverage HEP’s existing footprint to capitalize on commercial opportunities Contractual PPI/FERC escalators Example: Frontier Pipeline Expansion Pursue logistics assets in HEP’s current geographic region R
Slide 22: HEP Acquisition of Sinclair Transportation
22 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 Refined product outlets for Sinclair’s refineries Terminals
Slide 23: HEP Pro Forma Earnings Profile
23 HEP Pro Forma Earnings Profile1 Expected $70-80 million of Adjusted EBITDA uplift from Sinclair’s logistics assets Amount differs from historical results, reflecting new minimum volume commitments between HEP and HF Sinclair, expected growth in JV earnings, and the exclusion of transaction-re
Slide 24: HEP Capital Allocation Strategy
24 Visible Deleveraging Pathway Increased unitholder returns Sustainable Free Cash Flow Transaction Delivers: HEP Capital Allocation Strategy1 Near-term Continue to reduce leverage Pay sustainable quarterly distribution of $0.35/unit Mid to Long-term Strategy Focus on funding all capex and dis
Slide 25: Financial Strategy
A FINANCIAL STRATEGY AHF Sinclair
Slide 26: Driving Significant Uplift to Free Cash Flow
Driving Significant Uplift to Free Cash Flow Mid-Cycle Adjusted EBITDA Uplift1: 26 ($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 EBITDA2 $1,8
Slide 27: Sinclair Acquisition Synergies
Sinclair Acquisition Synergies Transaction to Drive Cost Savings & Efficiencies 27 $100 million Annual Synergies Expected within two years SG&AOperating expense reductions Commercial improvements Downward integration of Branded Wholesale business Improved cost profile from Renewable Diesel offta
Slide 28: Capital Allocation Strategy
Capital Allocation Strategy1 Free Cash Flow Drives Capital Returns & Balanced Capital Allocation 28 2023 and Beyond 50% Payout Ratio (dividends + repurchases) of Adjusted Net Income2 2022 Pay $0.40 regular quarterly dividend (reinstated Q2 2022) Resumed repurchases in Q2 2022 by Q1 2023 $1 Billion o
Slide 29: Appendix
yd APPENDIX AHF Sinclair
Slide 30: HF Sinclair Capital Structure
HF Sinclair Capital Structure Strengthening Credit Profile through Reduced Leverage, Increased Scale and Portfolio Diversification 30 ($mm's) HF Sinclair Cash and Cash Equivalents $1,702 HF SINCLAIR CORPORATION1 2.625% Senior Notes due 2023 $350 5.875% Senior Notes due 2026 $1,000 4.500% Senior Note
Slide 31: Sinclair Transaction Overview
Sinclair Transaction Overview Creating a More Diverse, Downward Integrated Business with Scale 31 HollyFrontier Transaction Structure & Purchase Price All-stock transaction, with a transaction value of ~$2.1 billion based on HFC closing stock price on March 11, 2022 Created a new public holding
Slide 32: HEP Adjusted EBITDA Reconciliation
HEP Adjusted EBITDA Reconciliation 32 Holly Energy Partners HEP HEP PF Sinclair 12/31/2021 12/31/2021 Net income attributable to the partners 214,946$ 218,727$ + Interest expense 53,818 76,055 - Interest income (29,925) (29,925) + State income tax expense 32 32 + Depreciation and amortization 93,800
Slide 33: HEP Total Tariffs and Fees Reconciliation
HEP Total Tariffs and Fees Reconciliation 33 Total Tariffs and Fees are calculated as revenues plus tariffs and fees not included in revenues due to impacts from lease accounting for certain tariffs and fees. Portions of our minimum guaranteed pipeline and terminal tariffs and fees for assets subjec
Slide 34: Definitions
Definitions 34 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 petroleum di
Slide 35: HF Sinclair Index
HF Sinclair Index 35 1. HF Sinclair Index includes Sinclair Refinery or Casper Refinery contribution as of April 2022.
Slide 36: HF Sinclair Disclosure Light Product Index
HF Sinclair Disclosure 36 Light Product Index Appendix HF Sinclair's actual pricing and margins may differ from benchmark indicators due to many factors. For example: - Crude Slate differences – HF Sinclair runs a wide variety of crude oils across its refining system and crude slate may vary quarter
Slide 37: 2828 N. Harwood, Suite 1300 Dallas, TX 75201 214-954-6510 HFSinclair.com Craig Biery | VP,
NYSE: DINO 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