$DINO · HF Sinclair Corp
HF Sinclair filed its Q3 2026 10-Q, reporting net income attributable to stockholders of $2.015B ($11.38/share) on revenue of $10.857B, up 49.7% YoY. The surge was driven by adjusted refinery gross margins of $54.22 per produced barrel sold, up from $19.16 a year ago, aided by EPA small refinery RINs waivers and higher product sales prices. Operating income reached $2.672B versus $564M in Q3 2025.
- Net income attributable to HF Sinclair stockholders: $2,015M vs $403M in Q3 2025, a 5x increase.
- GAAP EPS: $11.38 per diluted share vs $2.15 in Q3 2025.
- Revenue: $10.857B, up 49.7% YoY from $7.251B.
- Adjusted refinery gross margin per produced barrel sold: $54.22 vs $19.16 in Q3 2025.
- LCM inventory valuation swung to a $30M benefit from a $66M charge a year ago.
DINO shares are up +0.27% since filing at $113.15, a muted reaction to blockbuster results, likely reflecting the cyclical nature of refining margins and the market's awareness that the $54.22/bbl adjusted margin is driven partly by one-time EPA small refinery RINs waivers.
A 5x YoY profit surge to $2B+ in a single quarter on nearly 3x refining margins is an extraordinary result, but the EPA waiver tailwind raises questions about repeatability.
HF Sinclair's $54.22/bbl adjusted refining margin dramatically outpaces typical mid-cycle crack spreads, reflecting the current elevated margin environment benefiting independent refiners. The RINs waiver benefit is company-specific and not replicable across peers.
The Mississauga Asset Retirement incurred $109M in additional costs and accelerated depreciation; forward-looking statements flag potential margin compression from higher crude oil and feedstock prices. The Lubricants & Specialties planned separation carries execution risk.