Q3 2023 HF Sinclair Corp and Holly Energy Partners LP Earnings Call

November 2, 2023

Operator: Welcome to HF Sinclair Corporation and Holly Energy Partners Third Quarter 2023 Conference Call and Webcast. Hosting the call today is Tim Go, Chief Executive Officer of HF Sinclair. He is joined by Atanas Atanasov, Chief Financial Officer, Steve Ledbetter, EVP of Commercial, Valerie Pompa, EVP of Operations, and Matt Joyce, SVP of Lubricants and Specialties, along with John Harrison, Chief Financial Officer of Holly Energy Partners. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your touchtone phone. If at any time your questions have been answered, you may remove yourself from the queue by pressing star one again. If you should require operator assistance, please press star zero.

Speaker 1: Welcome to FHF Sinclair Corporation and Holly Energy Partners, third quarter, 2023. Conference call and web.

Welcome to S.

H F Sinclair Corporation, and Holly Holly Energy partners third quarter, 'twenty twenty-three conference call and webcast hosting the call today is Tim go Chief Executive Officer of eight F. H F. Sinclair. He is joined by autonomous I kind of Sars Chief financial.

Speaker 1: Hosting the call today is Tim Goh, Chief Executive Officer of H.F. Sinclair. He is joined by Autonomous Atenesov, Chief Financial Officer Steve Ledbetter, EVP of Commercial, Valerie Pompea, EVP of Operations, and Matt Joyce, SVP of Lubricants and Specials.

Sure, Steve Ledbetter EVP of commercial Valerie Pompeii I E V P of operation and not Joyce SVP of lubricants and specialties, along with John Harrison Chief Financial Officer of Holly Energy partners.

Speaker 1: along with John Harrison, Chief Financial Officer of Hawley Energy Partners.

Speaker 1: At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star on your star one on your touchstone phone. If in any time your questions have been answered, you may remove yourself from the queue by pressing star one again. If you should require operator assistance, please press star zero.

This time, all participants have been placed in a listen only mode and the floor will be open for your questions. Following the presentation. If you would like to ask a question at that time. Please press star on your Star one on your Touchtone phone if at any time. Your questions had been answered you may remove yourself from the queue by pressing star one.

Again, if you should require operator assistance. Please press star zero, we ask that you. Please limit yourself to one question and one follow up. Additionally, we ask that you pick up your handset to allow optimal sound quality. Please note that this conference is being recorded.

Operator: We ask that you please limit yourself to one question and one follow-up. Additionally, we ask that you pick up your handset to allow optimal sound quality. Please note that this conference is being recorded. It is now my pleasure to turn the floor over to Craig Biery, Vice President, Investor Relations. Craig, you may begin.

Speaker 1: We ask that you please limit yourself to one question and one follow-up. Additionally, we ask that you pick up your handset to allow optimal sound quality. Please note that this conference is being recorded.

Speaker 1: It is now my pleasure to turn the floor over to Craig Berry, Vice President Investor Relations. Craig, you may be...

It is now my pleasure to turn the floor over to Craig Biery.

<unk> Vice President Investor Relations, Craig you may begin.

Craig Biery: Thank you, Krista. Good morning, everyone, and welcome to HF Sinclair Corporation and Holly Energy Partners' Q3 2023 earnings call. This morning, we issued press releases announcing results for the quarter ending 30 September 2023. If you would like a copy of the earnings press releases, you may find them on our websites at hfsinclair.com and hollyenergy.com. Before we proceed with remarks, please note the Safe Harbor disclosure statement in today's press releases. In summary, it says, Statements made regarding management expectations, judgments, or predictions are forward-looking statements. These statements are intended to be covered under the Safe Harbor provisions of federal securities laws. There are many factors that could cause results to differ from expectations, including those noted in our SEC filings. The call also may include discussion of non-GAAP measures. Please see the earnings press releases for reconciliations to GAAP financial measures.

Speaker 2: Thank you, Krista. Good morning, everyone, and welcome to HSN Claire Corporation and Holly Energy Partners 3rd quarter 2023 earnings call. This morning we issued press releases announcing results for the quarter ending September 30th 2023. If you would like a copy of the earnings press releases, you may find them on our websites at hfnclair.com and hollyenergy.com.

Thank you Chris Good morning, everyone and welcome to Hff's Sinclair Corporation, and Holly Energy Partners third quarter 2023 earnings call. This morning, we issued press releases announcing results for the quarter ending September 32023, if you would like a copy of the earnings press releases you may find them on our website at Hff's Sinclair Dot com and Holly energy Dot com.

Speaker 2: Before we proceed with remarks, please note the safe harbor disclosure statement in today's press releases.

Before we proceed with remarks. Please note the safe Harbor disclosure statement in today's press releases and.

Speaker 2: In summary, it says statements made regarding management expectations, judgments, or predictions are forward-looking statements.

In summary, it says statements made regarding management expectations judgments or predictions are forward looking statements.

Speaker 2: These statements are intended to be covered under the safe harbor provisions of federal security laws. There are many factors that can cause results to differ from expectations, including those noted in our SEC filing.

These statements are intended to be covered under the safe Harbor provisions of federal security laws. There are many factors that could cause results to differ from expectations, including those noted in our SEC filings.

Speaker 2: The call also may include discussion of non- GAAP measures . Please see the earnings press releases for reconciliations to GAAP financial measures. Also please note any time sensitive information provided on today's call may no longer be accurate at the time of any webcast replay or rereading of the transcript. And with that, I'll turn the call over to Tim Goh.

Call also may include discussion of non-GAAP measures. Please see the earnings press releases for reconciliations to GAAP financial measures also please note any time sensitive information provided on today's call may no longer be accurate at the time of any webcast replay or rereading of the transcript and with that I'll turn the call over to Tim go.

Craig Biery: Also, please note, any time-sensitive information provided on today's call may no longer be accurate at the time of any webcast replay or rereading of the transcript. And with that, I'll turn the call over to Tim Go.

Tim Go: Good morning. I am pleased to report strong third quarter results, driven by solid execution of safe and reliable operations across our refining, lubricants, HEP, and marketing segments. We continue to progress our strategic initiatives of integrating and optimizing our portfolio, along with delivering strong cash return to shareholders. Today, we reported third quarter 2023 net income attributable to HF Sinclair shareholders of $791 million or $4.23 per diluted share... These results reflect special items that collectively increased net income by $31 million. Excluding these items, adjusted net income for the third quarter was $760 million, or $4.06 per diluted share, compared to adjusted net income of $983 million, or $4.58 per diluted share for the same period in 2022.

Speaker 2: Good morning. I am pleased to report strong third quarter results driven by solid execution of safe and reliable operations across our refining, lubricants, HEP and marketing segments.

Good morning.

I am pleased to report strong third quarter results, driven by solid execution of safe and reliable operations across our refining lubricants AGP and marketing segments.

Speaker 2: We continue to progress our strategic initiatives of integrating and optimizing our portfolio along with delivering strong cash return to shareholders.

We continue to progress our strategic initiatives of integrating and optimizing our portfolio along with delivering strong cash return to shareholders.

Speaker 2: Today, we reported third quarter 2023 net income attributable to HF Sinclair shareholders of $791 million, or $4.23 per diluted share.

Today, we reported third quarter 2023, net income attributable to HFF Sinclair shareholders of $791 million or $4 23 per diluted share.

Speaker 2: These results reflect special items that could collectively increase net income by $31 million.

These results reflect special items.

Luck collectively increased net income by $31 million.

Speaker 2: Excluding these items, adjusted net income for the third quarter was $760 million or $4.06 per deluded share. Compared to adjusted net income of $983 million or $4.58 per deluded share for the same period in 2022.

Excluding these items adjusted net income for the third quarter was $760 million.

Our $4.06 per diluted share compared to.

Adjusted net income of $983 million.

$4.58 per diluted share for the same period in 2022.

Tim Go: Adjusted EBITDA for Q3 was $1.2 billion, a 20% decrease compared to Q3 2022. In our refining segment, Q3 2023 adjusted EBITDA contributed $1 billion compared to $1.4 billion in the same period last year. This decrease was primarily driven by lower refining margins in both the West and MidCon regions and lower refined product sales volumes due to higher maintenance activity. Operating expenses were $496 million in Q3 2023, versus $475 million recorded in the same period last year, as lower natural gas costs were offset by higher maintenance costs.

Speaker 2: Adjusted even off of the third quarter was $1.2 billion, a 20% decrease compared to the third quarter of 2022.

Adjusted EBITDA for the third quarter was $1 2 billion.

A 20% decrease compared to the third quarter of 2022.

Speaker 2: In our refining segment, third quarter, 2023 adjusted EBITDA contributed $1 billion compared to $1.4 billion in the same period last year. This decrease was primarily driven by lower refining margins in both the West and Midcon regions and lower refined product sales volumes due to higher maintenance activity.

In our refining segment third quarter 2023, adjusted EBITDA contributed $1 billion.

Compared to $1 $4 billion in the same period last year.

This decrease was primarily driven by lower refining margins in both the west and mid con regions and lower refined product sales volumes due to higher maintenance activity.

Speaker 2: Operating expenses were $496 million in the third quarter of 2023 versus the $475 million recorded in the same period last year. As lower natural gas costs were offset by higher maintenance costs.

Operating expenses were $496 million in the third quarter of 2023.

Versus the $475 million recorded in the same period last year as lower natural gas costs were offset by higher maintenance costs.

Tim Go: Crude oil charge averaged 602,000 barrels per day in Q3 2023, compared to 646,000 barrels per day in Q3 2022. The decrease was primarily due to higher maintenance activity during the period. I'm pleased to report that the turnaround in Q3 at our Casper refinery was completed on time and on budget. At Tulsa, we are in the process of ramping up normal operations after the successful turnaround at that refinery. With all of our major turnarounds behind us for the year, we remain focused on executing our strategy to improve reliability and operating costs across our refining portfolio.

Speaker 2: Crude will charge average 602,000 barrels per day in the third quarter of 2023, compared to 646,000 barrels per day in the third quarter of 2022. The decrease was primarily due to higher maintenance activity during the period.

Crude oil charge averaged 602000 barrels per day in the third quarter of 2023 compared to 646000 barrels per day in the third quarter of 2020 to.

The decrease was primarily due to higher maintenance activity during the period.

Speaker 2: I'm pleased to report that the turnaround in the third quarter at our Casper Refinery was completed on time and on budget and at Tulsa we are in the process of ramping up normal operations after the successful turnaround at that refinery.

I am pleased to report that the turnaround in the third quarter at our Casper refinery was completed on time and on budget and in Tulsa. We are in the process of ramping up normal operations. After the successful turnaround at that refinery.

Speaker 2: With all of our major turnarounds behind us for the year, we remain focused on executing our strategy to improve reliability and operating costs across our refining portfolio.

With all of our major turnarounds behind us for the year, we remain focused on executing our strategy to improve reliability and operating costs across our refining portfolio.

Tim Go: In our renewables segment, we reported Adjusted EBITDA of $5 million for Q3 2023, compared to negative $14 million for Q3 2022. Total sales volumes were 55 million gallons for Q3 2023, as compared to 52 million gallons for Q3 2022. We continue to make progress towards our target of achieving normalized run rates by the end of 2023, through improved reliability and feedstock optimization. Our marketing segment reported EBITDA of $21 million for Q3 2023, compared to $10 million in Q3 2022, and total branded fuel sales volumes set another quarterly record of 398 million gallons. Gross margin per gallon was $0.07 in the third quarter, supported by strong demand in our regions.

Speaker 2: In our renewable segment, we reported a justly bidon of positive $5 million for the third quarter of 2023, compared to negative $14 million for the third quarter of 2022.

In our renewable segment, we reported adjusted EBITDA of positive $5 million for the third quarter of 2023 compared to negative $14 million for.

For the third quarter of 2022.

Speaker 2: Total sales volumes were 55 million gallons for the third quarter of 2023 as compared to 52 million gallons for the third quarter of 2022.

Total sales volumes were 55 million gallons for the third quarter of 2023.

Compared to 52 million gallons for the third quarter of 2022.

Speaker 2: We continue to make progress towards our target of achieving normalized run rates by the end of 2023 through improved reliability and feedstock optimization.

We continue to make progress towards our target of achieving normalized run rates by the end of 2023 through improved.

Reliability and feedstock optimization.

Speaker 2: Our marketing segment reported EBITDAV $21 million for the third quarter of 2023, compared to $10 million in the third quarter of 2022. And total branded fuel sales volumes set another quarterly record of $390 million.

Our marketing segment reported EBITDA of $21 million for the third quarter of 2023 compared to $10 million in the third quarter of 2022, and total branded fuel sales volumes set another quarterly record of 398 million gallons.

Speaker 2: Gross Margin Pergallon was 7 cents in the third quarter, supported by strong demand in our region.

Gross margin per gallon was <unk> in the third quarter supported by strong demand in our regions.

Tim Go: During the quarter, we added 15 new branded sites, and we expect to continue to grow our branded sites by 5% or more per year. Our lubricants and specialty products segment reported EBITDA of $118 million for Q3 2023, compared to EBITDA of $15 million for Q3 2022. This increase was largely driven by a $30 million FIFO benefit from consumption of lower-priced feedstock inventory for Q3 2023, compared to a $44 million charge in Q3 2022. Despite weakening base oil prices during the period, continued efforts to improve sales mix optimization across our finished products portfolio resulted in strong earnings contribution from our lubricants business.

Speaker 2: During the quarter, we added 15 new branded sites and we expect to continue to grow our branded sites by 5% or more per year.

During the quarter, we added 15, new branded sites and we expect to continue to grow our branded sites by 5% or more per year.

Speaker 2: Our lubricants and specialty product segment reported EBITDA $118 million for the third quarter of 2023 compared to EBITDA $15 million for the third quarter of 2022.

Our lubricants and specialty products segment reported EBITDA of $118 million for the third quarter of 2023 compared to EBITDA of $15 million for the third quarter of 2022.

Speaker 2: This increase was largely driven by a $30 million five-fold benefit from consumption of lower price speed stock inventory for the third quarter of 2023 compared to a $44 million charge in the third quarter of 2022.

This increase was largely driven by a $30 million FIFO benefit from consumption of lower priced feedstock inventory for the third quarter of 2023 compared to $44 million charge in the third quarter of 2022.

Speaker 2: Despite weakening basal prices during the period, continued efforts to improve sales mix optimization across our finished product portfolio resulted in strong earnings contribution from our lubricant spiss.

Despite weakening base oil prices during the period continued efforts to improve sales mix optimization across our finished products portfolio resulted in strong earnings contribution from our lubricants business.

Tim Go: HEP reported EBITDA of $94 million in Q2 2023, compared to $66 million in the same period of last year. This increase was mainly driven by tariff increases that went into effect on 1 July 2023. On 15 August 2023, we entered into a definitive merger agreement with HEP, and we expect the proposed transaction to close in Q4 this year, subject to the satisfaction of closing conditions. During the third quarter, we announced and paid a regular quarterly dividend of $0.45 per share to stockholders, totaling $84 million, and spent $586 million on share repurchases. Year to date, as of 30 September, our total cash return, including dividends and share repurchases, is over $1.09 billion, and we have reduced our share count by 8%.

Speaker 2: HEP reported EBITDA of $94 million in the second quarter of 2023, compared to $66 million in the same period of last year.

<unk> reported EBITDA of $94 million in the second quarter of 2023 compared to $66 million in the same period of last year.

Speaker 2: This increase was mainly driven by terrorist increases that went into effect on July 1, 2023.

This increase was mainly driven by tariff increases that went into effect on July one 2023.

Speaker 2: On August 15th, 2023, we entered into a definitive merger agreement with HEP, and we expected proposed transaction to close in the fourth quarter of this year, subject to the satisfaction of closing the...

On August 15th 2023, we entered into a definitive merger agreement.

And we expect the proposed transaction to close in the fourth quarter of this year subject to the satisfaction of closing conditions.

Speaker 2: During the third quarter, we announced and paid a regular quarterly dividend of 45 cents per share to stockholders totaling $84 million.

During the third quarter, we announced and paid a regular quarterly dividend of <unk> 45 per share to stockholders totaling $84 million and spent $586 million.

Speaker 2: and spend $586 million on share repurchase.

Share repurchases.

Speaker 2: Year to date, as of September 30th, our total cash return, including dividends and share repurchases, is over $1.09 billion, and we have reduced our share count by 8%.

Year to date as of September 30, our total cash return, including dividends and share repurchases is over $1.09 billion and we have reduced our share count by 8%.

Tim Go: In closing, our third quarter results highlight the diversification of our portfolio and quality of our assets. Our strong cash return during the period demonstrates our continued commitment to our long-term cash return strategy and long-term payout ratio, while maintaining an investment-grade rating. Looking forward, we remain focused on executing our strategy of safe and reliable operations as we continue to integrate and optimize our assets across our portfolio. With that, let me turn the call over to Atanas.

Speaker 2: In closing, our third quarter results highlight the diversification of our portfolio and quality of our assets. Our strong cash return during the period demonstrates our continued commitment to our long-term cash return strategy and long-term payout ratio, while maintaining an investment grade rate.

In closing our third quarter results highlight the diversification of our portfolio and quality of our assets are strong cash return during the period demonstrates our continued commitment to our long term cash return strategy and long term payout ratio, while maintaining an investment grade rating.

Speaker 2: Looking forward, we remain focused on executing our strategy of safe and reliable operations as we continue to integrate and optimize our assets across our portfolio. With that, let me-

Looking forward, we remain focused on executing our strategy of safe and reliable operations as we continue to integrate and optimize our assets across our portfolio.

With that let me turn the call over to Atlas.

Atanas H. Atanasov: Thank you, Tim, and good morning, everyone. Let's begin by reviewing HF Sinclair's financial highlights. Net cash flows provided by operations for Q3 2023 totaled $1.4 billion, which included $124 million of turnaround spend in the quarter. HF Sinclair's standalone capital expenditures totaled $75 million for Q3 2023. As of September 30, 2023, HF Sinclair's standalone liquidity stood at approximately $3.85 billion, comprised of a cash balance of $2.2 billion, along with our undrawn $1.65 billion unsecured credit facility.

Atanas Atanasov: Thank you, Tim, and good morning, everyone. Let's begin by reviewing HF Sinclair's financial highlights. Net cash flows provided by operations for Q3 2023 totaled $1.4 billion, which included $124 million of turnaround spend in the quarter. HF Sinclair's standalone capital expenditures totaled $75 million for Q3 2023. As of September 30, 2023, HF Sinclair's standalone liquidity stood at approximately $3.85 billion, comprised of a cash balance of $2.2 billion, along with our undrawn $1.65 billion unsecured credit facility.

Speaker 3: Thank you, Tim, and good morning, everyone. Let's begin by reviewing HS and Claire's financial highlights. NetGas closed provided by operations for the third quarter of 2023, total of $1.4 billion, which included a $124 million that turned around spend in the quarter. HS and Claire's standalone capital expenditures totaled $75 million for the third quarter of 2023.

Thank you Tim and good morning, everyone, let's begin by reviewing HFC clears financial highlights net cash flows provided by operations for the third quarter of 2023 totaled $1 4 billion.

Which included a $124 million of turnaround spend in the quarter.

Hff's unclear as Standalone capital expenditures totaled $75 million for the third quarter of 2023.

Speaker 3: As of September 30th, 2023, H.S. Inclair stand alone liquidity through to the approximately $3.85 billion comprised of a cash balance of $2.2 billion along with our undrawn 1.65 billion unsecured credit facility. As of September 30th, 23, we have 1.7 billion of stand-alone debt outstanding with a debt to cap ratio of 15%.

As of September 32023, Sinclair Standalone liquidity stood at approximately $3 85 billion.

Comprised of a cash balance of $2 2 billion, along with our Undrawn $1 65 billion unsecured credit facility.

Tim Go: ... As of September 30, 2023, we had $1.7 billion of standalone debt outstanding, with a debt-to-cap ratio of 15%. In October 2023, we repaid at maturity the $308 million aggregate principal amount of our 2.625% senior notes. HEP distributions received by HF Sinclair during Q3 2023 totaled $21 million. HF Sinclair owns 59.6 million HEP limited partner units, which represents 47% of HEP's outstanding LP units at a market value of approximately $1.25 billion as of last night's close. Now, let's go through some guidance items. With respect to capital spending, last quarter, we lowered our full year 2023 guidance range to $900 million to $1.06 billion on a consolidated basis.

Atanas Atanasov: ... As of September 30, 2023, we had $1.7 billion of standalone debt outstanding, with a debt-to-cap ratio of 15%. In October 2023, we repaid at maturity the $308 million aggregate principal amount of our 2.625% senior notes. HEP distributions received by HF Sinclair during Q3 2023 totaled $21 million. HF Sinclair owns 59.6 million HEP limited partner units, which represents 47% of HEP's outstanding LP units at a market value of approximately $1.25 billion as of last night's close. Now, let's go through some guidance items. With respect to capital spending, last quarter, we lowered our full year 2023 guidance range to $900 million to $1.06 billion on a consolidated basis.

As of September 32003, we had $1 7 billion of stand alone debt outstanding with a debt to cap ratio of 15%.

Speaker 3: In October 2023, we repaid as maturity the 3008 million aggregate principle amounts of our 2.625 percent senior notes.

In October 2023, we repaid at maturity $308 million aggregate principal amount of our $2, 625% senior notes.

Speaker 3: HEP distributions received by HF Sinclair during the third quarter of 23 total $21 million.

HCP distributions received by HFF Sinclair during the third quarter of 'twenty three totaled $21 million.

Speaker 3: HSN Claire owns 59.6 million HEP limited partner units, which represents 47% of HEPs outstanding LP units at a market value of approximately $1.25 billion as it last nights close. Now let's go through some guidance items.

Hff's unclear owns $59 6 million ATP limited partner units, which represents 47% of Hep's outstanding LP units at a market value of approximately $1 $5 billion as of last night's close now let's go through some guidance items.

Speaker 3: With respect to capital spending, last quarter we lowered our full year 2023 guidance range to 900 million to a billion 60 on a con-

With respect to capital spending last quarter, we lowered our full year 2023 guidance range to 900 million to a $1 60.

On a consolidated basis.

Tim Go: With the majority of our plant maintenance activity behind us, we expect to end up at the lower end of our capital spend range for 2023. For Q4 2023, we expect to run between 590,000 to 620,000 bbl/d of crude oil in our refining segment, which reflects plant maintenance at our Tulsa refinery during the period. Let me now turn the call over to John for an update on HEP. John?

Atanas Atanasov: With the majority of our plant maintenance activity behind us, we expect to end up at the lower end of our capital spend range for 2023. For Q4 2023, we expect to run between 590,000 to 620,000 bbl/d of crude oil in our refining segment, which reflects plant maintenance at our Tulsa refinery during the period. Let me now turn the call over to John for an update on HEP. John?

Speaker 3: With the majority of our plant maintenance activity behind us, we expect to end up at the lower end of our capital, spend range for 2023.

With the majority of our plant maintenance activity behind US we expect to end up at the lower end of our capital.

The range for 2023.

Speaker 3: For the fourth quarter of 2023, we expect to run between 590,000 to 620,000 barrels per day of crude oil in our refining segment, which reflects plant maintenance at our Tulsa refinery during the period.

For the fourth quarter of 2020, we expect to run between 590.

620000 barrels per day of crude oil in our refining segment, which reflects planned maintenance at our Tulsa refinery during the period.

Speaker 4: Let me now turn the call over to John for an update on the HEP. John . Thanks, Anis. ACP's third quarter of 2023 net income attributable to Holly Energy Partners was $63 million. Compared to 42 million in the third quarter of 2022. Each period reflected non-recuring expenses that decrease net income by 4 million and 20 million respect.

Let me now turn the call over to John for an update on the AGP John Thanks Adnan.

John Harrison: Thanks, Ernest. HEP's Q3 2023 net income attributable to Holly Energy Partners was $63 million, compared to $42 million in the Q3 2022. Each period reflected non-recurring expenses that decreased net income by $4 million and $20 million, respectively. Excluding these items, the year-over-year increase was primarily attributable to higher revenues associated with tariff increases that went into effect on 1 July 2023, which were partially offset by higher interest expense and higher G&A expenses during the Q3 2023. HEP's Q3 2023 Adjusted EBITDA was $119 million, compared to $110 million in the same period last year. The reconciliation table reflecting these adjustments can be found in HEP's press release.

<unk> third quarter 2023, net income attributable to Holly energy partners was $63 million.

Compared to $42 million in the third quarter of 2022.

Each period reflected nonrecurring expenses and decreased net income by $4 million and $20 million respectively.

Speaker 4: Excluding these items, the year over your increase was primarily attributable to higher revenues associated with tariff increases that went into effect on July 1, 2023, which were partially offset by higher interest expense and higher GNA expenses during the third quarter of 2023.

Excluding these items the year over year increase was primarily attributable to higher revenues associated with tariff increases that went into effect on July one 2023, which were partially offset by higher interest expense and higher G&A expenses during the third quarter of 2023.

Speaker 4: ACP's third quarter, 2023, adjusted the bidal was $119 million compared to $110 million in the same period last year. The reconciliation table reflecting these adjustments can be found in the NGP's press release.

Hep's third quarter of 2023, adjusted EBITDA was $119 million compared to $110 million in the same period last year.

Reconciliation table, reflecting these adjustments can be found in Hep's press release.

John Harrison: For Q3, HEP generated distributable cash flow of $78 million, and we announced a distribution of $0.35 per LP unit, which is payable on 10 November 2023, to unit holders of record as of 30 October 2023. Capital expenditures during Q3 were approximately $9 million, comprised of $6 million in maintenance, $2 million of reimbursable, and $1 million in expansion CapEx. During Q3, we repaid $27 million of debt and ended the quarter with available liquidity of approximately $630 million. We are now ready to turn the call over to the operator for any questions.

Speaker 4: for the third quarter, HEP generated distributed will cashflow of 78 billion dollars. And we announced a distribution of 35 cents per LP unit, which is payable on November 10, 2023, to unit holders of record as of October 30, 2023.

For the third quarter <unk> generated distributable cash flow of $78 million, and we announced a distribution of <unk> 35 per LP unit, which is payable on November 10th 2023.

Holders of record as of October 30.

Hey.

Speaker 4: Capitalist ministers during the third quarter were approximately $9 million. In rise of six million in maintenance.

Capital expenditures during the third quarter were approximately $9 million comprised of $6 million in maintenance 2 million of Reimbursable and $1 million of expansion Capex during.

Speaker 4: 2 million of Reimbursable and 1 million of Expansion Catbacks.

Speaker 1: During the third quarter, we repay $27 million of debt and ended the quarter with available liquidity of approximately $630 million. We are now ready to turn the call over to the operator for any questions. The floor is now open for questions. At this time, if you have questions or comments, please press star one on your touch-tongued phone.

During the third quarter, we repaid $27 million of debt and ended the quarter with available liquidity of approximately $630 million.

We are now ready to turn the call over to the operator for any questions.

Operator: The floor is now open for questions. At this time, if you have questions or comments, please press star one on your touchtone phone. We ask that you please limit yourselves to one question and one follow-up. If you have additional questions, we welcome you to rejoin the queue. If at any point your questions have been answered, you may remove yourself from the queue by pressing star one. Thank you. Our first question is coming from Manav Gupta from UBS. Please go ahead.

Yes.

The floor is now open for questions. At this time, if you have questions or comments. Please press star one on your Touchtone phone, we ask that you. Please limit yourself to one question and one follow up if you have additional questions. We welcome you to rejoin the queue.

Speaker 1: We ask that you please limit yourself to one question and one follow-up. If you have additional questions, we welcome you to rejoin the queue. If at any point your questions have been answered, you may remove yourself from the queue by pressing star one. Thank you. Our first question is coming from Menev Gupta from UBS. Please go ahead.

If at any point your questions have been answered you may remove yourself from the queue by pressing star one.

Our first question is coming from Manav Gupta from UBS. Please go ahead.

Manav Gupta: Oh, good, good morning, Tim. My question is more broader. In the past, you have mentioned that you have 7 refineries, but there's a hidden refinery within your system, and you can run 50 to 60,000 barrels higher. We have seen one of your competitors do it, where they shut 2 assets and the throughput is higher. Please help us understand some of the progress that you are making in that direction, so you can uncover this hidden refinery within your refining system.

Speaker 5: Good morning, Tim. My question is more broader. In the past, you have mentioned that you have seven refineries, but there's a hidden refinery within your system, and you can run 50,000 to 60,000 barrels higher. And we have seen one of your competitors do it where they shut two assets and the throughput is higher. Please help us understand some of the progress that you are making in that direction so you can uncover this hidden refinery within your refining system. Good.

Good morning, Tim My question is more broader in the past you have mentioned that you have seven refineries, but there is a hidden refinery within your system and you can run 50 to 60000 barrels higher than we have seen limited competitors do it with a shack to assets and the throughput is higher.

Please help us understand some of the progress that we're making in that direction. So you can Angola. This hidden refinery within your refining system.

Tim Go: Good morning, Manav. This is Tim. As you stated, reliability, integration, and commercial optimization are our main priorities right now, and that is to try to unlock that hidden refinery, as you mentioned. Let me ask Valerie to talk a little bit about some of the reliability efforts that we have going on.

Good morning, Manav This is Tim.

Speaker 2: as you stated, reliability.

As you stated.

Reliability and integration and commercial optimization are our main priorities right now and that is to try to unlock that hidden refinery as you mentioned, let me ask Valerie to talk a little bit about some of the reliability efforts that we have going on.

Speaker 6: and integration and commercial optimization are our main priorities right now. And that is to try to unlock that hidden refinery, as you mentioned. Let me ask a, sorry to talk a little bit about some of the reliability efforts that we have going on. Thank you. Yeah, what we're doing is assessing the reliability of all of our assets, looking at capacity and then stepping back and looking at equipment.

Valerie Pompa: Thank you. Yeah, what we're doing is assessing the reliability of all of our assets, looking at capacity, and then stepping back and looking at equipment, where we have completed a full assessment of all of our sites, and then within that, starting to work execution plans by site. Those will unlock, you know, availability within each of our individual assets, which is a process that's been around in industry for a really long time. We're coupling that with some innovation and some new tools that will help us, you know, improve our availability.

Yes, what we're doing is assessing the reliability of all of our asset so looking at capacity and then stepping back and looking at equipment.

Equipment.

Speaker 6: where we have completed a full assessment of all of our sites and then within that starting to work execution plans by site. Those will unlock availability within each of our individual assets.

Sure.

We have completed a full assessment of all of our sites and then within that starting to work execution plans by site.

Those will unlock.

Sure.

Availability within each of our individual assets.

Speaker 6: which is a process that's been around in industry for a really long time. We're coupling that with some innovation and some tools that will help us improve our availability.

Which is.

A process that's been around and industry, primarily long time.

Coupling that with some innovation and some new tools that will.

Help us improve our availability.

Tim Go: Manav, the other thing that I'll mention, in addition to what, Val just talked about, was on previous calls, we've talked about the importance of executing our turnarounds well. And with this year's heavy turnaround load, I know there was a lot of concern about whether we could execute our turnarounds well. Val and her team have really done a fantastic job this year, executing those turnarounds on schedule, on budget. And not only does that help in the actual execution of the turnaround, but it helps us get to all of the planned work that we wanted to get done during the turnarounds to help us get that reliability improvement for the full cycle that's coming post the turnaround.

Speaker 2: Manav, the other thing that I'll mention in addition to what Val just talked about was on previous calls, we've talked about the importance of executing our turn-al- rounds.

But all of the other thing that I'll mention in addition to what they will just talked about on previous calls we've talked about the importance of executing our turnarounds.

Speaker 2: And with this year's heavy turnaround load, I know there was a lot of concern about whether we could execute our turnaround as well. Val and her team have really done a fantastic job this year executing those turnaround on schedule on budget. And not only does...

<unk>.

And with this year's heavy turnaround load I know there was a lot of concern about whether we could execute our turnarounds well Val and her team have really done a fantastic job this year.

Executing those turnarounds on schedule on budget and not only does that help in the actual execution of the turnaround, but it helps us get to all of the planned work that we wanted to get done during the turnarounds to help us get.

Speaker 2: help in the actual execution of the turnaround, but it helps us get to all of the planned work that we wanted to get done during the turnaround to help us get that reliability improvement for the full cycle that's coming post the turnaround. And so that's kind of another benefit that we're getting from good clean execution of the turnaround is we hope that will allow us to again demonstrate better reliability to the cycle.

That reliability improvement for the full.

Cycle, that's coming post the turnaround and so that's kind of another benefit that we're getting from good clean execution of the turnarounds as we hope that will allow us.

Tim Go: And so that's kind of another benefit that we're getting from good, clean execution of the turnarounds, is we hope that will allow us to again demonstrate better reliability through this cycle.

Again demonstrate better reliability through this cycle.

Valerie Pompa: ... Perfect. My quick follow-up here is on the, on the lubes. Even adjusting for that inventory, it was a much stronger quarter. Your vision was to make this business more on the specialty side. Help us understand how those plans are progressing, and also help us understand some of the reasons we-- you had such a strong quarter in Q3 in the lubes business.

Manav Gupta: ... Perfect. My quick follow-up here is on the, on the lubes. Even adjusting for that inventory, it was a much stronger quarter. Your vision was to make this business more on the specialty side. Help us understand how those plans are progressing, and also help us understand some of the reasons we-- you had such a strong quarter in Q3 in the lubes business.

Speaker 5: Perfect. My quick follow up here is on the on the lube's even adjusting for that inventory. It was a much stronger quarter. Your vision was to make this business more on the specialty side. Help us understand how those plans are progressing and also help us understand some of the reasons we you had such a strong quarter in three Q in the lube's business.

Well I will take my quick follow up here is on the on the lubes, even adjusting for the inventory. It was a much stronger quarter. Your vision was to make this business more on the speciality side help us understand how those plans are progressing and also help us understand some of the reasons.

Such a strong quarter in <unk> and the lubes business.

Tim Go: Yeah, let me ask Matt to comment on the strength of our lubes business.

Speaker 3: Yeah, let me ask Matt to comment on the strength of our loop system. Thanks, Manav. Matt Joyce here. And I think where the team's done a really nice job is getting after operational excellence and a focus on regional growth.

Yes, let me ask Matt to comment on the strength of our lubes business. Thanks, Matt choice here and I think where the team has done a really nice job is getting after operational excellence and a focus on regional growth. We've been we've been working on mixing the mix of our of our business and really look.

Steve Ledbetter: Thanks, Manav. Matt Joyce here. I think where the team's done a really nice job is getting after operational excellence and a focus on regional growth. We've been working on mixing the mix of our business and really looking to see where and how we can focus on higher value products and better understanding the markets we serve, where we have stickier solutions that are enabling our customers to be successful, and therefore allowing us to be a bit more successful. You know, hats off to our Petro-Canada team in the US, in particular. They've done a nice job of expanding their footprint and getting into the US markets, which was part of our strategy. That's gained a lot of nice traction, and we're seeing some real positive signs of growth there from a regional perspective.

Matt Joyce: Thanks, Manav. Matt Joyce here. I think where the team's done a really nice job is getting after operational excellence and a focus on regional growth. We've been working on mixing the mix of our business and really looking to see where and how we can focus on higher value products and better understanding the markets we serve, where we have stickier solutions that are enabling our customers to be successful, and therefore allowing us to be a bit more successful. You know, hats off to our Petro-Canada team in the US, in particular. They've done a nice job of expanding their footprint and getting into the US markets, which was part of our strategy. That's gained a lot of nice traction, and we're seeing some real positive signs of growth there from a regional perspective.

Speaker 3: We've been working on mixing the mix of our business and really looking to see where and how we can focus on higher value products and better understand the markets we serve where we have stickier solutions that are enabling our customers to be successful and therefore allowing us to be a bit more successful.

To see where and how we can focus on higher value products and better understanding the markets. We serve where we have stickier solutions that are enabling our customers to be successful and therefore, allowing us to be a bit more successful and.

Speaker 3: And hats off to our Petro Canada team in the US in particular. They've done a nice job of expanding their footprint and getting into the US markets, which was part of our strategy. And that's gained a lot of nice traction. And we're seeing some real positive signs of growth there from a regional perspective.

It's off to our Petro Canada team in the U S. In particular, they've done a nice job of expanding their footprint and getting into the U S markets, which was part of our strategy and Thats gained a lot of nice traction and we're seeing some.

A real positive signs of growth there from a regional perspective.

Tim Go: Yeah, Manav, I would just say, Matt and his team have done a really nice job of continuing to integrate the base oil business with the finished lubes and specialties business. You can—we've talked about this on past earnings calls, but you just continue to see the intercompany sales of base oils to those finished lubes and specialties businesses continue to increase, which is giving us more resiliency, more cushion for these falling base oil cracks that you're seeing in our reported HFS index. As those base oil cracks come down, the more integrated we are, it gives us more insulation and allows us to continue to generate the strong margins that you're seeing. So that's a structural improvement that Matt and his team are doing.

Speaker 2: Yeah, Manav, I would just say Matt and his team have done a really nice job of continuing to integrate.

Yes, Manav I would just say, Matt and his team have done a really nice job of continuing to integrate the base oil business with the finished lubes and specialties business. You can we've talked about this on past earnings calls, but you just continue to see the intercompany sales of base oils to those finished lubes.

Speaker 2: the basal business with the finished lubes and specialties business.

Speaker 2: You can, we've talked about this on past earnings calls, but you just continue to see the inner company sales of base oils to those finish loops, and especially businesses continue to increase, which is giving us more.

Especially as businesses continue to increase which is giving us more.

Speaker 2: resiliency, more cushion for these falling basal cracks that you're seeing in our reported HFS index. As those basal cracks come down, the more integrated we are, it gives us more insulation and allows us to continue to generate the strong margins that you're seeing. So that's a structural improvement that Matt and his team are doing.

Resiliency more.

Cushing for these falling base oil cracks that you are seeing in our reported.

S index as those base oil cracks come down the more integrated we are gives us more installation. It allows us to continue to generate the strong margins that youre seeing so that's.

That is a structural improvement that Matt and his team are doing.

Valerie Pompa: Congrats on a great quarter, and great to see renewable diesel generate positive EBITDA. Thank you, guys.

Manav Gupta: Congrats on a great quarter, and great to see renewable diesel generate positive EBITDA. Thank you, guys.

Speaker 5: Congrats on a great quarter and great to see renewable diesel generate positively beta. Thank you, Sai.

Congrats on a great quarter and great to see the Newbuild user generated positive EBITDA. Thank you.

Tim Go: Thanks, Manav.

Thanks Manav.

Operator: Your next question comes from the line of Ryan Todd from Piper Sandler. Please go ahead.

Speaker 1: Your next question comes from the line of Ryan Todd from Piper Sandler. Please go ahead.

Your next question comes from the line of Ryan Todd from Piper Sandler. Please go ahead.

Ryan M. Todd: Good, thanks. Maybe I'll follow up on Manav's shout out there for the RD business. Congrats on the underlying margin improvement there. Throughput and sales remain, you know, relatively low utilization rates. Can you walk through where you are on the process of increasing utilization up to normalized levels, whether hydrogen sourcing is still a limiting factor? You know, how are you making progress on the process of extending time between catalyst turnarounds, improving product yield, et cetera? So maybe just a little more granularity on where you are in the process of getting that where you want it to be.

Ryan Todd: Good, thanks. Maybe I'll follow up on Manav's shout out there for the RD business. Congrats on the underlying margin improvement there. Throughput and sales remain, you know, relatively low utilization rates. Can you walk through where you are on the process of increasing utilization up to normalized levels, whether hydrogen sourcing is still a limiting factor? You know, how are you making progress on the process of extending time between catalyst turnarounds, improving product yield, et cetera? So maybe just a little more granularity on where you are in the process of getting that where you want it to be.

Speaker 7: Thanks. Maybe I'll follow up on Manav's shout out there for the R&D business. Congrats on the underlying margin improvement there.

Okay. Thanks.

Maybe ill.

I'll follow up on that.

Shout out there.

So the R&D bonus congrats on the underlying margin improvement there.

Speaker 7: through foot and sales remain, you know, relatively low utilization rates. Can you walk through where you are in the process of?

Throughput in sales remain.

Relatively low utilization rate can you walk through where you are on the cloud the process.

Speaker 7: increasing utilization of the normalized levels, whether hydrogen sourcing is still limiting factor, you know, how you're making progress on the process of extending time between catalysts, turnarounds, improving product yield, et cetera. So maybe just a little more granularity on where you are in the process of getting that where you want it to be.

Increasing utilization up to normalized levels.

Whether hydrogen sourcing is still a limiting factor.

How are you, making progress on the process of extending time between your catalyst turnaround is improving product deal et cetera. So maybe just.

A little more granularity on where you are in the process of getting that where you want it to be.

Tim Go: Yeah, Ryan, we're pleased to show the renewable diesel business profitable this quarter. We think we've turned a corner here. Let me ask Steve Ledbetter, our commercial lead, to talk about it.

Speaker 8: Yeah, Ryan, we're pleased to show that we're in a real-bodiesome business profitable this quarter. We think we've turned a corner here. Let me ask, speed led better commercially to talk about it. Hey, Ryan, thanks for the question. We're also a little encouraged as you are and by a positive quarter. There's a few things that helped us deliver the positive quarter. The first was really looking at our feedstock and optimizing the low-CII acquisition and putting that into our site.

Yes, Brian.

We're pleased to show that renewable diesel business profitable. This quarter, we think we've turned the corner here, let me ask Steve Ledbetter.

Steve Ledbetter: Hey, Ryan, thanks for the question. We're also a little encouraged, as you are, by a positive quarter. There's a few things that helped us deliver the positive quarter. The first was really looking at our feedstock and optimizing the low CI acquisition and putting that into our sites, taking advantage of our pre-treatment unit. We had improved yield performance throughout the quarter, and then, to be honest, selling out into the markets during the highest part of the margin cycle of the quarter, as well as taking some OpEx levers and pulling those. Those are all part of the path forward. We were somewhat limited by hydrogen availability, but we have just finished and coming out of a cat change at Artesia, and we took the opportunity to go improve our hydrogen availability at our large SMR there at Artesia.

Commercial lead to talk about it hey, Brian. Thanks for the question. We're also encouraged as you are and by a positive quarter Theres a few things that helped us deliver the positive quarter. The first was really looking at our feedstock and optimizing the low Ci acquisition and putting that into our sites taking advantage of our <unk> unit, we had improved yield performance throughout the quarter.

Speaker 8: taking advantage of our pre-chapement unit. We had improved yield performance throughout the quarter and then to be on a selling out into the markets during the highest part of the margin.

And then to be honest selling out into the market during the highest part of the margin cycle over the quarter as well as taking some some opex leavers and pulling those those are all part of the path forward, we were somewhat limited by hydrogen availability.

Speaker 8: cycle of the quarter, as well as taking some OPEX levers and pulling those. Those are all part of the path forward. We were somewhat limited by hydrogen availability.

Speaker 6: But we have just finished and coming out of a cat change that Artija and we took the opportunity to go improve our hydrogen availability at our large SMR there at Artija. Let me hand it to Val on hydrogen availability and operational improvements. Yeah, as we've stayed before, we continue to invest in our hydrogen systems that all of our plants, particularly in Artija. We've just completed the SMR. We made upgrades in our turnaround in the CCR and we're starting to see the benefits from those in our renewable business as well as refining.

But we have just finished and coming out of a cat change at Artesia, and we took the opportunity to improve our hydrogen availability at our large <unk> artesian, let me, let me hand, it to bow on hydrogen availability and operational improvements.

Steve Ledbetter: Let me hand it to Val on hydrogen availability and operational improvements.

Valerie Pompa: Yeah, as we've said before, we continue to invest in our hydrogen systems at all of our plants, particularly in Artesia. We've just completed the SMR. We made upgrades in our turnaround in the CCR, and we're starting to see the benefits from those in our renewables business as well as refining.

As we stated before we continue to invest in our hydrogen systems at all of our plants, particularly in artesia.

<unk> completed the SMIC, we made upgrades in our turnaround and CCR and we're starting to see the benefits from those.

In our renewables business as well as refining.

Ryan M. Todd: Good, thanks. And maybe, just, you know, shifting gears on the refining side to the West Coast, you know, real strong margins and strong capture and profitability there in the quarter. Can you talk about what you're seeing out there in terms of market dynamics? And as you look forward to the startup of TMX next year, you know, how will that, if at all, impact your ability to source advantaged crudes at the Puget Sound Refinery?

Ryan Todd: Good, thanks. And maybe, just, you know, shifting gears on the refining side to the West Coast, you know, real strong margins and strong capture and profitability there in the quarter. Can you talk about what you're seeing out there in terms of market dynamics? And as you look forward to the startup of TMX next year, you know, how will that, if at all, impact your ability to source advantaged crudes at the Puget Sound Refinery?

Speaker 7: Thanks and maybe just, you know, should think it on the refining side to...

Great Thanks, and maybe.

Just shifting gears on the refining side too.

Speaker 7: to the West Coast, you know, strong margins and strong capture and profitability there in the quarter. Can you talk about what you're seeing out there in terms of market dynamics? And as you look forward to the start of the GMX next year, how will that, if at all, impact your ability to source advantage crews at the Puget Sound Refine?

To the West coast.

Strong margins and strong capture on profitability during the quarter can you talk about what youre seeing out there in terms of the market dynamics.

And as you look forward to the startup of <unk> next year, how will that if at all impact your ability to source advantaged crudes at the Puget Sound refinery.

Steve Ledbetter: Yeah, this is, again, Steve. I think, you know, we enjoyed the cracks in the margin environment in Q3 on the West Coast. We see some softness coming in, particularly in gas, but it's normal and seasonal through this next quarter and the first quarter. But overall, we think that there is going to be a length in diesel, particularly with RD coming into the West Coast, but we think there will be a bit of short structure on both gas and jet, and we look to take advantage of that. As far as TMX coming on, you know, when that happens, we think it will compress some of the differentials, particularly when they call for line fill temporarily.

Okay.

Speaker 8: Yeah, this is, again, Steve, I think, you know, we enjoyed the cracks in the margin environment in Q3 on the West Coast.

Yes. This is Steve I think.

We enjoyed the cracks in the margin environment in in Q3 on the West Coast we.

Speaker 8: We see some softness, softness coming in particularly in gas, but it's normal and seasonal through this next quarter and the first quarter. But overall, we think that there is going to be linked in diesel, particularly with RD coming into the West Coast, but we think there will be a bit of short structure on both gas and jet. And we look to take advantage of that as far as DMX coming on.

We see some softness softness coming in particularly in.

In gas, but it's normal and seasonal.

Through this next quarter in the first quarter, but overall, we think that there is going to be a link and diesel, particularly with R&D coming into the west coast that we think there will be a bit of short structure on both gas and jet and we look to take advantage of that as far as <unk> coming on.

Speaker 8: You know, when that happens, we think it will compress some of the differentials, particularly when they call for line seal temporarily. But as that line gets up and running reliably, we believe that it will put more barrels out on the water and actually give us a bit of an advantage for our refinery in the Pacific Northwest.

When that happens we think it will compress some of the differentials, particularly when they call for line fill temporarily but as that line gets up and running reliably we believe that it will put more barrels out on the water and actually give us a bit of an advantage for our for our refinery in the Pacific Northwest.

Steve Ledbetter: But as that line gets up and running reliably, we believe that it'll put more barrels out on the water and actually give us a bit of an advantage for our refinery in the Pacific Northwest.

Tim Go: Yeah. And, Ryan, let me just follow up and say, you know, we believe our refining portfolio continues to be a strategic advantage and competitive advantage for us, just in terms of the markets we serve and the demographics that we serve in our markets. The West Coast in particular, I would say, is a beneficiary of this integration effort that we've been focused on here over the last 6 to 12 months. We have, with the Sinclair and the legacy HollyFrontier assets in the West, with the addition of Puget Sound, we really believe that that is an underappreciated portfolio that we're continuing to unlock the potential of, and you're gonna continue to see good results come out of the West.

Speaker 2: Yeah, and Ryan, let me just follow up and say, we believe our refining portfolio continues to be a strategic advantage, a competitive advantage for us, just in terms of the markets we serve and the demographics that we serve in our markets.

Yes right.

Ian Let me just follow up and say, we believe our refining portfolio continues to be.

Strategic advantage and competitive advantage for us just in terms of the markets, we serve and the demographics that we're that we.

That we serve in our markets.

Speaker 2: The West Coast in particular, I would say, is a beneficiary of this integration effort that we've been focused on here over the last 6 to 12 months.

West Coast in particular, I would say is a beneficiary of this integration effort that we've been focused on here over the last.

Six to 12 months.

Speaker 2: We have a, with the Sinclair and the Legacy Holly Frontier assets in the West.

Have a.

With the Sinclair and the legacy Holly frontier assets in the West with the addition of Puget Sound, We really believe that that is a under.

Speaker 2: with the addition of putrid sound. We really believe that that is a underappreciated portfolio that we're continuing to unlock the potential of and you're going to continue to see good results come out of the West.

Under appreciated portfolio that we're continuing to unlock the potential of and Youre going to continue to see good results come out of the west.

Paul Cheng: Great. Thanks, Tim.

Ryan Todd: Great. Thanks, Tim.

Great. Thanks, Tim.

Operator: Your next question comes from the line of Doug Leggate from Bank of America. Please go ahead.

Speaker 1: Your next question comes from the line of Doug Legat from Bank of America. Please go ahead.

Your next question comes from the line of Doug Leggate from Bank of America. Please go ahead.

[Analyst] (Bank of America): Hey, good morning, guys. This is Kaleon for Doug, so thanks very much for taking the question. My first question is on the Sinclair synergies. $100 million was expected at the time of the deal, but now that you've got a few quarters under your belt, I'm wondering how that opportunity set has evolved?

Speaker 2: Good morning guys, this is Kaleon for Doug, so thanks very much for taking the question. My first question is on the Sinclair synergies $100 million was expected at the time of the field, but now that you've got a few quarters under your belt, I'm wondering how that opportunity that has evolved.

Hey, Good morning, guys. This is clay on for Doug Thanks, very much for taking the question.

My first question is on the Sinclair synergies.

<unk> hundred million dollars was expected at the time the deal, but now that you've got a few quarters under your belt I'm wondering how that opportunity set has evolved.

Tim Go: Yeah, Kale, this is Tim. We were very pleased to be able to just capture that $100 million pretty quickly. In fact, it exceeded our timing expectations in terms of the ability for us to capture that. We see, as we've talked about on previous calls, much, much more opportunity to continue to improve and optimize that, those assets. But we've broadened it now to really look across the entire portfolio, to look at Puget Sound in the mix, to look at our legacy assets in the mix. That's really- when I say our priorities are reliability across our portfolio and then integration and optimization across our portfolio, that's really code for, we're looking for more synergies, we're looking for more optimization across the entire asset.

Speaker 2: Yeah, Kalayevus is Tim. We were very pleased to be able to just capture that 100 million pretty quickly. In fact, it exceeded our timing expectations in terms of the ability for us to capture that. We see, as we've talked about on previous calls, much, much more opportunity to continue to...

Yeah <unk>. This is Tim we were very pleased to be able to just capture that $100 million pretty quickly in fact, it exceeded our timing expectations in terms of the.

The ability for us to capture that we see as we've talked about on previous calls much much more opportunity to continue to.

Speaker 2: improve and optimize that.

Improve and optimize that.

Speaker 2: Those assets, but we've broadened it now to really look across the entire portfolio. To look at Puget Sound in the mix, to look at our legacy assets in the mix. That's really when I say our priorities are reliability across our portfolio, and then integration and optimization across our portfolio, that's really code for, we're looking for more synergies, we're looking for more optimization across the entire asset. We haven't gone out in.

Those assets, but we've broadened it now to really look across the entire portfolio to look at Puget sound in the mix to look at our legacy assets in the mix, that's really when I say, our priorities are and reliability across our portfolio and then integration and optimization across our portfolio.

Thats really code for we're looking for more synergies, we're looking for more optimization across the entire asset.

Tim Go: We haven't gone out and said anything specific, you know, like we did with the $100 million of synergies, but know that we're working that hard. Steve and his group have already talked a little bit about that, and what we're hoping, you guys will be able to see is the results of that come out, and not just our, throughput, but also our capture, for all the, for both the West and the MidCon regions.

We haven't gone out and said anything specific like we did with the $100 million of synergies.

Speaker 2: said anything specific, you know, like we did with 100 million of synergies, but know that we're working that hard. Steven and his group have already talked a little bit about that. And what we're hoping you guys will be able to see is the results of that come out and not just our throughput, but also our capture for both the West and the Mid-Con region.

But know that we're working that hard Stephen and his group have already talked a little bit about that and what we're hoping you guys will be able to see as the results of that come out and not just our throughput, but also our capture for all the for both the western and mid Con regions.

[Analyst] (Bank of America): Thanks, Tim. I guess we'll keep watching with interest. My next question is more housekeeping. So on the quarter itself, CapEx looked a touch low. Wondering if there was anything to highlight there. And working capital seems to be a touch high, while some of your other peers are reporting some tailwinds. So just wondering if you could address those two things.

Speaker 2: Thanks, then, I guess we'll keep watching with interest. My next question is more housekeeping. So on the quarter itself, cat-ex looked at a touch-low wondering if there was anything to highlight there. And working capital seems to be a touch high. Well, some of your other peers are porting some tailwinds. So just wondering to be good to address those two things.

Thanks, Tim I guess, we will keep watching with interest. My next question is more housekeeping. So on the quarter itself Capex looked a touch low wondering if there is anything to highlight there.

Working capital seems to be a touch high well some of your other peers are reporting some tailwind. So just wondering if you could address those two things.

Atanas H. Atanasov: Sure. This is Atanas. With respect to our capital spending, we're very pleased with how our CapEx program has gone, and this is just a function of completing our turnarounds on time and on budget. There's always some contingency built into our budget plans, and this is, we're just demonstrating our capital discipline that manifests in our positive variance. With respect to working capital, we saw some working capital tailwinds this quarter as we're coming out of these turnarounds and working out inventory. Rising prices also had a beneficial impact on our working capital. So with that in mind, you could see the tailwinds to our cash flow from operations.

Atanas Atanasov: Sure. This is Atanas. With respect to our capital spending, we're very pleased with how our CapEx program has gone, and this is just a function of completing our turnarounds on time and on budget. There's always some contingency built into our budget plans, and this is, we're just demonstrating our capital discipline that manifests in our positive variance. With respect to working capital, we saw some working capital tailwinds this quarter as we're coming out of these turnarounds and working out inventory. Rising prices also had a beneficial impact on our working capital. So with that in mind, you could see the tailwinds to our cash flow from operations.

Speaker 3: Sure. This is Atmus. With respect to our capital spending, we're very pleased with how our CapEx program has gone, and this is just a function of completing our turnarounds on time and on budget. There's always some contingency built into our budget plans, and this is we're just demonstrating our capital discipline that manifests in a positive variance. With respect to...

Sure. This is atmos with respect to our capital spending we're very pleased with.

Now our Capex program is gone and this is just a function of.

Completing our turnarounds on time and on budget. There is always some contingency built into our budget plans and.

And this is.

We're just demonstrating our capital discipline.

Manifests in a positive variance with respect to.

Speaker 3: Working capital, we saw some working capital. Tailwinds, this quarter as we're coming out of these turnarounds and working out inventory, rising prices also had a beneficial impact on our working capital. So that in mind, you could see that tailwinds to our cash flow from operation.

Working capital, we saw some working capital tailwind.

This quarter as we're coming out of these turnarounds.

And working out inventory.

Rising prices also had a beneficial impact on our working capital so with that in mind, you can see the tailwind to our cash flow from operations.

Tim Go: Yeah, Atanas mentioned in his prepared remarks, call, that we anticipate coming in on the low end of the CapEx range now. And so, that is a result of, again, better execution and solid performance on our turnarounds.

Speaker 2: Yeah, Annis mentioned in his prepare remarks, Kalei, that we anticipate coming in on the low end of the capex range now. And so that is a result of, again, better execution and solid performance on our turn rounds.

And as mentioned in his prepared remarks clay that we anticipate coming in on the low end of our Capex range now.

And so that is a result of again better execution and solid performance on our turnarounds.

[Analyst] (Bank of America): Great. Thanks, guys.

Great. Thanks, guys.

Operator: Your next question comes from the line of Paul Cheng from Scotiabank. Please go ahead.

Speaker 9: Your next question comes from the line of Paul Chang from Scotia Bank. Please go ahead. Thank you. Good morning.

Your next question comes from the line of Paul Cheng from Scotiabank. Please go ahead.

Paul Cheng: Thank you. Good morning.

Alright, Thank you good morning.

Tim Go: Good morning, Paul.

Good morning, Bob.

Paul Cheng: Trying to see that if you can help me to bridge the gap. I think, the company is expecting that on the longer-term basis, that you will be able to improve your reliability so that a reasonable, true unit one on an annual basis may get to about 640. And at that, time that you can see the unit cost, go down to about $6 to $6.50. And if we look at in Q3, your unit cost in the MidCon is around $6.50, and your West is about $9.70, and you're running at 576,000 barrels per day. Just by improving it to 640, that better reliability, that by itself doesn't seem like it will get you down to your target unit cost.

Speaker 10: I'm trying to see that if you can help me to purchase the gap. I think the company is expecting that on the longer-term basis that you would be able to improve your reliability so that a reasonable, cool unit one on an annual basis may get to about 640. And at that time that you can see the unique cost, go down to about 6 to 615.

Turning to <unk>.

Yes.

Rich the gap I think.

<unk> is.

I think that on the.

Longer term basis that you will be able to improve.

Liabilities, so that a reasonable.

Two unit one on the annual basis may get to about 60 40.

Han.

Upon that you can see the unit cost.

Go down to about six two to $6 15.

Speaker 10: And if we look at in the third quarter, your unit course in the mid-con is around 650 and the west is about 970.

If we look at in the third quarter.

Your unit cost in the mid Con is around 650 and west is about 917.

Speaker 10: and you're running at 576,000 per day, just by improving it to 640.

And one thing at 576000 barrels a day just.

Just by improving yet to 60 40.

Speaker 10: that that will vibrate it. That by yourself, doesn't seem to get you down to the target unit course. So what are the initiatives or the course signs that we should expect in order for us to maybe bridge the gap to go down to that matter? That's the first question.

That's what we thought that by itself doesn't seem like what would get you down to deal with Tomcat unit cost so.

Paul Cheng: So, what are the initiatives on the cost side that we should expect in order for us to maybe bridge the gap to go down to that level? That's the first question.

You initiate it all at the end of the cost side that we should expect in order for us to.

Can you maybe bridge the gap to go down to that level. That's the first question.

Tim Go: Paul, Paul, good question. You know, we believe reliability has two benefits at least, as we continue to prioritize that. Not only does it get the denominator down, as you just kind of mentioned, the math of higher throughput will get your OpEx per barrel down, but it also reduces your maintenance costs, which will be in the numerator, which will also get your OpEx down. Again, there's a lot of good effort going on in that area of reducing OpEx and improving reliability. Val, do you have any color you want to provide on that?

Speaker 2: Pog, Pog, Pog good question, you know, we've, we believe reliability has

Good question.

We believe reliability has.

Speaker 2: two benefits at least as we continue to prioritize that. Not only does it get the denominator down as you just kind of mentioned the math of higher throughput will get your op-ex per barrel down, but it also reduces your maintenance cost.

Two benefits at least as we continue to prioritize that not only does it get the denominator down as you just kind of mentioned the math of higher throughput will get your opex per barrel down but it also reduces your maintenance costs, which will be on the numerator, which will also get your opex down that there is a lot of good effort going on.

Speaker 2: which will be on the new monitor, which will also get your outback staff.

Speaker 6: There's a lot of good effort going on in that area of reducing outbreaks and improving reliability and value-eventing color, you want to prevent on that. Yeah, as you said earlier, we are very focused on each asset, putting forward reliability improvement plans. We're focused both on competitive spend, right dollars.

In that area of reducing opex and improving reliability and Dale do you have any color you want to provide on that yes. As we said earlier, we are very focused on each asset putting forward reliability and training that plans.

Valerie Pompa: Yeah, as we said earlier, you know, we are very focused on each asset, putting forward reliability improvement plans. We're focused both on competitive spend, right dollars to buy down operating risks, to improve reliability, and making sure our money is going in the right places, and improving reliability, which will ultimately get our utilization up, up. We are more challenged in the West, and those facilities are a primary focus for our efforts, particularly our Sinclair assets, along with Woods Cross and PSR, are all working improved structure on cost. But again, our biggest opportunity is reliable assets produce more barrels, they're safer, and we get a better outcome in performance and execution.

We're focused both on competitive spend right dollars to buy down operating risks to improve reliability and making sure. Our money is going in the right places.

Speaker 6: to buy down operating risk to improve reliability and making sure our money is going in the right places.

Speaker 6: and improving reliability, which will ultimately get our utilization up. We are more challenged in the West, and those facilities are primary focus for our efforts, particularly our Sinclair assets.

<unk> and printing reliability, which will ultimately get our utilization up we are more challenged in the west and dose.

Those facilities are a primary focus for our efforts, particularly our Sinclair assets, allowing us with <unk> and <unk> are all working.

Speaker 6: Along with Whitzcross and PSR are all working, improved structure on cost. But again, our biggest opportunity is reliable assets.

Improved structure on.

On costs.

But again, our biggest opportunity is reliable assets produce more barrels they are safer.

Speaker 6: produce more barrels, they're safer, and we get a better outcome in performance and execution.

And we get.

Better outcome and performance and execution.

Paul Cheng: ... one really that, do you guys have a number that you can share with that the West unit cost on the longer-term basis that you are targeting at?

Speaker 10: I'm wondering that do you guys have a number that you can share with that the web really calls on the longer term basis that you are targeting there?

Allow me that you guys have a number that you can share with that the west unit costs on the longer term basis that you are targeting yet.

Tim Go: Paul, no, we're not, we're not ready to give out any specific numbers or guidance in that area. But we do believe there's plenty of opportunities in the West that we're going after.

Speaker 2: Paul, we're not ready to give out any specific numbers or guidance in that area, but we do believe there's plenty of opportunities in the West that we're going after.

Bob we're not we're not ready to give out any specific numbers or guidance in that area, but we do believe there is.

Plenty of opportunities in the west that we're going after.

Paul Cheng: Okay. Second question is that, as you about to close, HEP and roll it back up, once that you have done that, is it just business as usual, and then you simplify your corporate structure, or that that's going to see real actual operating benefit? Just want to see that whether we should expect some improvement or that is just, say, reducing the corporate structure complexity. Thank you.

Speaker 10: Second question is that as you about to close HEP and roll it back up

Okay.

Second question, just asked you about to close.

And we'll get back up.

Speaker 10: One thing you have done that is that just business as usual and that you simplify your copy structure or that that's going to see real actual operating benefit. Just want to see whether we should expect some improvement or that is just say reducing the copy structure capacity. Thank you.

Once that you have done is that is it just business as usual and seem to follow your capex structure all of that thats going to see.

Actual operating benefits.

Just wanted to think about whether we should expect some improvement or that is just reducing the.

The opex structure.

Capacity. Thank you.

Atanas H. Atanasov: Yeah, Paul, this is Atanas. Thank you for your question. Your observation is correct. Your instinct is correct. We're seeing opportunities for simplification and optimizing our portfolio. To give you just an example, what used to be at times complicated negotiation on contracts, intercompany contracts, now is gonna be a more simplified process, which would really help us to focus on efficiencies and commercial opportunities. So the simplification part of that benefit is gonna be meaningful to us. And with respect to the corporate structure, you will get your run-of-the-mill savings of, you know, essentially running one public company as opposed to having two public companies.

Atanas Atanasov: Yeah, Paul, this is Atanas. Thank you for your question. Your observation is correct. Your instinct is correct. We're seeing opportunities for simplification and optimizing our portfolio. To give you just an example, what used to be at times complicated negotiation on contracts, intercompany contracts, now is gonna be a more simplified process, which would really help us to focus on efficiencies and commercial opportunities. So the simplification part of that benefit is gonna be meaningful to us. And with respect to the corporate structure, you will get your run-of-the-mill savings of, you know, essentially running one public company as opposed to having two public companies.

Speaker 3: Paul, this is Atlas. Thank you for your question. Your observation is, is, is this correct? We're seeing opportunities for simplification and optimizing our portfolio. To give you just an example, what used to be, at times, complicated negotiation on contracts, inner company contracts now is going to be a more simplified process, which would really help us to focus on efficiencies and commercial opportunities. So the simplification part of that benefit is going to be meaningful to us.

Yeah. Paul This is Aetna is thank you for your question.

Your observation is correct.

As.

That's correct.

We're seeing opportunities with simplification and optimizing our portfolio to give you just an example, what used to be at times.

Complicated negotiation on contracts intercompany contracts now is going to be.

More simplified processes, which would really help us to focus on efficiencies and commercial opportunities. So the simplification.

Part of.

That benefit is going to be.

Meaningful to us.

Speaker 3: And with respect to the corporate structure, you will get your run of the mills savings, you know, essentially running one public company as opposed to having two public companies. And on top of that, we also see some synergies with respect to the debt as the goal gets rolled up but the dyno level. So all good outcomes for us.

And with respect to the corporate structure, you will get your run of the mills.

Savings have essentially running one public company as opposed to having two public companies.

Atanas H. Atanasov: And you, on top of that, we also see some synergies with respect to the debt, as a whole, it gets rolled up at the DINO level. So, all good, good outcomes for us.

Atanas Atanasov: And you, on top of that, we also see some synergies with respect to the debt, as a whole, it gets rolled up at the DINO level. So, all good, good outcomes for us.

On top of that we also see some synergies.

With respect to the to the debt.

It gets rolled out but.

Dino level, so all good good outcomes for us.

Paul Cheng: Atanas, is there a number you can share in terms of the operating synergies? Excluding, I mean, the debt, we can understand, but outside the financial, lower interest, I mean, the real operating benefit, is there a number you can share?

Speaker 10: Hello, that is a number you can share in terms of the operating energy. Excluding, I mean, the data we can understand, but also in the financial lower interest, I mean, the real operating bandwidth is that a number you can share.

Hello, Dan.

Number you can share in terms of the operating synergies.

Excluding I mean, but that we can understand but I also like the funding so.

Lower your interest I mean, we.

Operating benefit is that a number you can share.

Atanas H. Atanasov: We will be in better position to shed more light on that after the close of the transaction that we-

Atanas Atanasov: We will be in better position to shed more light on that after the close of the transaction that we-

Speaker 3: We will be in better position to shed more light on that after the close of the transaction. Much more.

Okay.

We will be even better positioned to to shed more light on that after the close.

The transaction.

Paul Cheng: Okay. All right, good. Thank you.

Alright, thank you.

Atanas H. Atanasov: Thank you.

Atanas Atanasov: Thank you.

Thank you.

Operator: Your next question comes from the line of Matthew Blair from TPH. Please go ahead.

Speaker 1: Your next question comes from the line of Matthew Blair from TPH. Please go ahead.

Your next question comes from the line of Matthew Blair from TBH. Please go ahead.

Matthew Blair: Hey, good morning. Thanks for taking my questions. Do you have any early thoughts on refining capture in the fourth quarter? I think Q3 was around 60%. Seems like the fourth quarter would include some pretty considerable tailwinds from things like wider WCS discounts, butane blending, lower RINs, and lower refinery maintenance.

Speaker 7: Hey, good morning. Thanks for taking my questions. Do you have any early thoughts on refining capture in the fourth quarter? I think Q3 was around 60%. Things like the fourth quarter would include some pretty considerable tailwinds from things like wider WCS discounts, butane blending, lower ramps, and then it looks like lower refinery mace.

Hey, good morning, Thanks for taking my questions do you have any early thoughts on refining capture in the fourth quarter. I think Q3 was around 60%. It seems like the fourth quarter would include some pretty considerable tailwind from things like wider WCS discounts butane blending.

Lower rim can then and then it looks like lower refinery maintenance.

Steve Ledbetter: Yeah, Matt, this is Steve. And I always appreciate the questions that always have the thesis included in terms of the answer, and that was one of those. So we do see also a cleaner quarter ahead in Q4. We do think that the diffs, WCS in particular, TI diff will blow out and has already in the forward strip. And we have minimal, minimal planned maintenance. We're finishing up the Tulsa turnaround. So, you know, supportive structure and margin in terms of distillate, diesel, and jet, we'll be moving gas around, and we're in max diesel and jet mode for Q4. So we think we have some opportunities to have a cleaner quarter ahead, but we're not giving explicit guidance on what that number is, but we do see a good path ahead.

Speaker 8: Yeah Matt, this is Steve. And I always appreciate the questions that always have the thesis included in terms of the answer and that was one of those. So we do see also a cleaner quarter head in Q4. We do think that the death.

Yes, Matt This is Steve and I always appreciate the questions that always have the thesis included.

In terms of the answer and that was one of those so we do see also a cleaner quarter ahead in Q4, we do think that the deaths.

Speaker 8: WCS in particular TI death will blow out and has already in the forward strip and we have minimal minimal plan maintenance We're finishing up the Tulsa turn around

WCS in particular, <unk> will blow out and has already and the forward strip and we have minimal minimal planned maintenance, we're finishing up the Tulsa.

Turnaround.

Speaker 2: So, you know, supportive structure and margin in terms of this, the let diesel and jet will be moving gas around and we're in max diesel and jet mode for Q4. So we think we have some opportunities to have a cleaner quarter ahead, but we're not giving explicit guidance on what that number is, but we do see a good path ahead. Yeah, we've got some good tailwinds as you pension.

Supportive structure and margin in terms of.

Distillate diesel and jet will be moving gas around and were in Max.

Diesel and jet mode for Q4, so we think we have some opportunities to have a.

Cleaner quarter ahead, we're not giving explicit guidance on what that number is but we do see a.

Tim Go: Yeah, we've got some good tailwinds, as you mentioned, Matt. But seasonally, the Q4 always tends to be a little lower on capture, too, just because margins compress. So that'll be the offset to some of the tailwinds that we're seeing.

Good path ahead.

We've got some good tailwind is as you've mentioned.

Speaker 2: uh... map but seasonally the fourth quarter early tends to be a little lower on capture to just because uh... martin's compress so that'll be the off offset to some of the tailwinds that were seen

But seasonally the fourth quarter always tends to be a little lower on capture too just because margins compressed so that'll be the ops offset to some of the tailwind that we're seeing.

Matthew Blair: Sounds good. And then I'm not sure if this has been addressed yet, but any thoughts on the potential for large-scale refinery M&A from HF Sinclair here?

Speaker 11: Sounds good. And then I'm not sure if this is going to address yet, but any thoughts on the potential for large scale refinery M&A from HSTN Clarenary?

It sounds good.

And then I'm not sure. If this has been addressed yet, but any thoughts on the potential for for large scale refinery M&A from.

HFC Sinclair here.

Tim Go: No, that question hasn't been asked yet, Matt. What I would tell you is, you know, we're focused first on closing HEP. It's been a transaction that we've started earlier in the year and that we're laser focused on completing. As Atanas mentioned earlier, we believe that we will be able to close here before the end of the year. Our priorities are internally focused. We've talked about that before. We're really looking to improve our internal reliability, as well as our integration and optimization across our assets. So that's really where our main focus is. We don't think that the time right now is right to be looking at large M&A, as you kind of described it, both from a market standpoint, you know, we like to look countercyclically.

Speaker 2: Another question has been asked yet, Matt. What I would tell you is, you know, we're focused first on closing HEP. It's been a transaction that we've started earlier in the year and that we're laser focused on completing. As that Miss mentioned earlier, we believe that we will be able to close here before the end of the year.

Another question has been asked yet Matt.

What I would tell you is we're focused first on closing AGP thats been a transaction that we've started earlier in the year in that.

We're laser focused on on completing as Adena mentioned earlier, we believe that we will be able to close here before the end of the year.

Speaker 2: Our priorities are internally focused. We've talked about that before. We're really looking to improve our internal reliability as well as our integration and optimization across our assets. So that's really where our main focus is. We don't think that the time right now is...

Our priorities are internally focused we've talked about that before.

We're really looking to improve our internal reliability as well as our integration and optimization across our assets. So that's really where our main focus is we don't think that the time right now is.

Speaker 2: is right to be looking at large M&A as you kind of described it. Both from a market standpoint, you know, we like to look counter-stiquically right now. I think we're finding the value of cheaply high. But more importantly, on my internal perspective, we're really focused internally more than externally. Now, I know there's some assets on the table that are starting to be marketed. We'll take a look just like everyone else is, but it's not a priority for us right now. So

Is right to be looking at large M&A.

You've kind of described it both from a market standpoint.

Tim Go: Right now, I think refining valuations are pretty high. But more importantly, from an internal perspective, we're really focused internally more than externally. Now, I know there's some assets on the table that are starting to be marketed. We'll take a look just like everyone else is, but it's not a priority for us right now, Matt.

He'd like to look counter cyclically right now.

I think we're finding valuations are pretty high.

But more importantly into.

Internal perspective, we're really focused internally more than externally now I know theres some assets on the table that are starting to be marketed we will we'll take a look just like everyone else is but it's not a priority for us right now.

Matthew Blair: Great. Thank you.

Great. Thank you.

Operator: Your next question comes from the line of Roger Read from Wells Fargo Securities. Please go ahead.

Speaker 1: Your next question comes from the line of Roger Reed from Wells Fargo Securities. Please go ahead.

Your next question comes from the line of Roger read from Wells Fargo Securities. Please go ahead.

Paul Cheng: Thanks. Good morning. Just a couple things to catch up on. One, your comments about refining reliability, getting that up. I'm just curious if you were to say-

Roger Read: Thanks. Good morning. Just a couple things to catch up on. One, your comments about refining reliability, getting that up. I'm just curious if you were to say-

Speaker 12: Thanks, good morning. Just a couple things to catch up on. One, your comments about refining reliability, getting that up, I'm just curious if you were to say, you know, over the last 12 to 24 months, what your available uptime has been, and then maybe what the target is for available uptime, you know, ex-turnarounds and all that, as we think about, you know, a marker for where you've been in a marker for where you're...

Thanks, Good morning.

Just a couple of things to catch up on your comments about refining reliability and getting that up I'm. Just curious if you were to say over.

Roger Read: ... you know, over the last 12 to 24 months, what your available uptime has been, and then maybe what the target is for available uptime, you know, ex turnarounds and all that, as we think about, you know, a marker for where you've been and a marker for where you're trying to go.

Over the last 12 months to 24 months, what Youre available uptime has been and maybe what the target is for available uptime ex turnarounds in all of that as we think about.

Barker for where <unk> been in a marker for what Youre trying to go.

Steve Ledbetter: Yeah. Hi, Roger. We don't provide a lot of the internal measures that we use. We have a lot of internal measures that we're tracking, both at the refinery level as well as at the regional levels. But we don't disclose that. We are making progress. We're feeling good about the progress that we're making. Val's talked about that. We are seeing progress. I think one of the biggest ways that we're seeing progress is in just the improved safety and environmental performance of our assets, which we always believe is a leading indicator of how our reliability is doing as well, and the rest of our business is doing. And I can tell you, we're on pace to set another record safety year, both on a process safety standpoint and a personnel safety standpoint.

Speaker 13: Yeah, hi Roger. We don't provide a lot of

Yeah, Hi, Roger.

We don't provide a lot of the.

Speaker 2: internal measures that we use. We have a lot of internal measures that we're tracking both at the refinery level as well as at the regional levels.

Internal measures that we use we have a lot of internal measures that we're tracking both at the refinery level as well as at the regional levels.

Speaker 2: But we don't disclose that. We are making progress. We're feeling good about the progress that we're making. Bells talked about that. We are seeing progress. I think one of the biggest ways.

But we don't we don't disclose that.

We are making progress we're feeling good about the progress that we're making balanced talked about that we.

<unk> seen progress so I think one of the biggest ways.

Speaker 2: that we're seeing progress is in just the improved safety and environmental performance of our assets, which we always believe is a leading indicator of how our

That we're seeing progress as in just the improved safety.

And environmental performance of our assets, which we always believe is a leading indicator of how our.

Speaker 2: Our reliability is doing as well in the rest of our businesses doing. And I can tell you we're on pace to set another record safety year, both on process safety standpoint and a personnel safety standpoint. So we feel good about the internal indicators. We're just not prepared to sharing in those are others.

Our reliability is doing as well in the rest of our business is doing and I can tell you. We're on pace to set another record safety year, both on process safety standpoint, and a personnel safety standpoint, so we feel good about the internal indicators, we're just not prepared to share any of those Roger.

Steve Ledbetter: So we feel good about the internal indicators. We're just not prepared to share any of those, Roger.

Roger Read: Okay. Well, if not absolute numbers, I mean, maybe a basis point improvement. I mean, are we looking at, you know, 200, 300, 500, something along those lines, if I can dig a little deeper?

Speaker 12: Okay, well, if not absolute numbers, I mean, maybe a basis point improvement, I mean, we're looking at.

Okay, well, if not absolute numbers I mean, maybe.

Basis point improvement I mean, we're looking at.

Speaker 12: 200, 300, 500, something along those lines, if I can dig a little deeper.

200, 300, 500, something along those lines, if I can dig a little deeper.

Okay.

Atanas H. Atanasov: Yeah, Roger, this is Atanas. I would just encourage you to stay tuned, and you will see a graduated process, progress along those lines. And we're focused on improving the reliability.

Atanas Atanasov: Yeah, Roger, this is Atanas. I would just encourage you to stay tuned, and you will see a graduated process, progress along those lines. And we're focused on improving the reliability.

Speaker 3: Yeah, Roger, this is Athens. I would just encourage you to stay tuned and you will see graduated process progress along those lines. And we're focused on improving reliability.

Yeah. Roger This is atmos I would just encourage you to stay tuned and you will see.

Graduated process Prague.

Progress along those lines.

Okay.

Focused on improving reliability.

Roger Read: Okay. Switching gears slightly back to the renewable diesel business. I know you went through, with one of the earlier questions, you know, all the things that helped. But I was just curious if you thought year-over-year or quarter-over-quarter, maybe how that broke down, you know, market factors relative to, you know, things you were able to do about changing the mix, keeping control of cost, stuff like that. So just what might have helped out on the lubes front?

Speaker 12: Okay. Switching gears slightly back to the renewable diesel business. So you went through with one of the earlier questions, you know, all the things that help. But it was just curious to be thought year over year, quarter to quarter, maybe how that broke down, you know, market factors relative to, you know, things you were able to do about changing the mix, keeping control of costs, stuff like that. So just what might might have.

Okay.

Switching gears slightly back to the renewable diesel business you went through with one of the earlier questions.

Does that help but just curious if you thought year over year quarter to quarter, maybe how that broke down market factors growler to two.

Jamie you were able to do about changing the mix keeping control costs stuff like that.

Just what Mike.

Might've helped out on the lubes.

Atanas H. Atanasov: On the renewables? The question is on renewables? Yes. Roger, this is Atanas. One of the first things that comes to mind is early on, as we were getting this business up and running, was working off high-priced feedstock in a backward market. So the team has done a lot of good progress with respect to managing inventory and ensuring that we're focusing on using low CI feedstock. So that's number one. Number two would be improvements around catalyst performance and optimization. Number three, as a result of our turnarounds and the technical focus on the team is improving hydrogen availability. And so those are the kind of the three things that come to mind.

Atanas Atanasov: On the renewables? The question is on renewables? Yes. Roger, this is Atanas. One of the first things that comes to mind is early on, as we were getting this business up and running, was working off high-priced feedstock in a backward market. So the team has done a lot of good progress with respect to managing inventory and ensuring that we're focusing on using low CI feedstock. So that's number one. Number two would be improvements around catalyst performance and optimization. Number three, as a result of our turnarounds and the technical focus on the team is improving hydrogen availability. And so those are the kind of the three things that come to mind.

Speaker 3: on the questions on renewables. Yes. Roger, this is Atmus. One of the first things that comes to mind is early on, as we were getting this business up and running, was working off high-priced feedstock in a backward-aid market. So the team has done a lot of good progress with respect to feedstock.

On the questions of them renewed.

Renewables, yes, Roger this is Atlas.

One of the first thing that comes to mind is early on as we were getting this business up and running was working.

Working off.

High priced feedstock in a backward dated market. So the team has done a lot of good progress with respect to.

Speaker 3: managing inventory and ensuring that we are focusing on using low-ci feedstock. So that's number one.

Managing inventory and ensuring that we're focusing on using mostly yet.

The feedstock so that's number one.

Speaker 3: Number two would be improvements around catalyst performance and optimization.

Number two would be.

Improvements around catalyst.

Catalyst performance and optimization.

Number three.

Speaker 3: as a result of our turn-around and the technical focus on the team is improving hydrogen availability.

As a result of our turnarounds and the technical focus and the team is.

Improving hydrogen availability.

Speaker 8: And so those would be kind of the three things that come to mind. And I could ask Steve or Val to add additional color. No, I think you're right. I mean, we're peeling this apart to make sure that we can make it the most profitable business it can be in our current configuration. We like to remind people that two of our facilities are co-located, and so hydrogen availability is a keen focus. But beyond that, we've started to pull levers, as Atnas mentioned, in terms of advantaged low CI feedstock. As part of that, you know, driving pathways are very important to get that full value, and we've got to hyper-focus on that.

And so those are the kind of the three things that come to mind.

Atanas H. Atanasov: I could ask Steve or Val to add additional color.

Atanas Atanasov: I could ask Steve or Val to add additional color.

Good asked Steve but more value.

Steve Ledbetter: No, I think you're right. I mean, we're peeling this apart to make sure that we can make the most profitable business it can be in our current configuration. We like to remind people that two of our facilities are co-located, and so, hydrogen availability is a keen focus. But beyond that, we've started to pull levers, as Atanas mentioned, in terms of advantaged low CI feedstock. As part of that, you know, driving pathways are very important to get that full value, and we've got a hyper focus on that. Catalyst optimization, OpEx levers in terms of waste, and then really getting our molecules integrated across our value chain is another aspect that we see a lot of value coming forward.

Add additional color I think you're right. We're feeling this apart to make sure that we can make the most profitable business that can be in our current configuration, we would like to remind people that two of our facilities are co located and so hydrogen availability is a keen focus but beyond that we've started to pull levers as adena mentioned in terms.

We have advantaged low Ci feedstocks.

As part of that driving pathways are very important to get that full value and was that a hyper focus on that.

Speaker 8: Catalyst optimization, op-X levers in terms of waste.

Catalyst optimization opex levers in terms of waste.

Speaker 8: And then really getting our molecules integrated across our value chain is another aspect that we see a lot of value coming forward. So, you know, we've demonstrated that in Q3 we can be profitable with not hitting our normalized run rate. We still see the path to getting there by the end of the year. And all of those focus areas we believe and expect to have a profitable renewables business next year.

And really getting our molecules integrated across our value chain is another aspect that we see a lot of value coming forward. So.

Steve Ledbetter: So, you know, we've demonstrated that in Q3, we can be profitable with not hitting our normalized run rate. We still see the path to getting there by the end of the year. And all of those focus areas, we believe and expect to have a profitable, renewables business next year.

We've demonstrated that in Q3, we can be profitable with not hitting our normalized run rate, we still see the path to getting there by the end of the year and all of those focus areas, we believe and expect to have a profitable renewables business next year.

Tim Go: Yeah, and Roger, I would just draw an analogy to the lubes business. You know, we spent a lot of resources and a lot of effort to turn that business around. I think over the last 2.5 years, we've been at well above mid-cycle, you know, performance for our lubes business. That same type of effort, that same type of focus, is what we've got pouring into our renewable diesel business right now. And we believe that we will be successful in getting that business turned around and performing the way we want, just like we have our lubes business performing the way we want right now.

Speaker 2: And Roger, I would just draw an analogy to the looms.

And Roger I would just.

I would just draw an analogy to the lubes business we spent.

Speaker 2: You know, we spent a lot of resources and a lot of effort to turn that business around, I think, over the last

Lot of resources and a lot of effort to turn that business around I think over the last.

Speaker 2: Two and a half years, we've been at well above and it's cycle performance for our Loops business. That same type of effort, that same type of focus is what we've got pouring into our renewable diesel business right now. And we believe that we will be successful in getting that business turned around and performing the way we want, just like we have our Loops business performing the way we want right now.

Two and a half years, we've been at well above mid cycle.

Performance for for our Lubes business that same type of FERC that same type of focus is what we've got pouring into our renewable diesel business right now and we believe that we will be successful in getting that business turned around and performing the way. We want just like we have our lubes business performing the way it was.

One right now.

Roger Read: Great. Thank you.

Great. Thank you.

Operator: Your next question comes from the line of Jason Gabelman from TD Cowen. Please go ahead.

Yes.

Speaker 1: Your next question comes from the line of Jason Gabelman from TD Cowan. Please go ahead.

Your next question comes from the line of Jason <unk> from TD Cowen. Please go ahead.

Jason Gabelman: Hey, morning. Thanks for taking my questions. I wanted to first hit on the cap, the financial framework, as you get close to the closing of the HEP transaction. It looks like on a consolidated basis, you're holding about $1 billion of net debt. Is that the right number for the company to hold on a consolidated basis? And then how do you think about buybacks as you're able to get back into the market, following the HEP deal close?

Speaker 2: Hey, morning. Thanks for taking my questions. I want to first hit on the CAP, the financial framework, as you get close to the closing of the HEP transaction. It looks like on a consolidated basis.

Okay.

Hey, good morning, Thanks for taking my questions.

I wanted to first hit on the cap.

Financial framework as you get close to the closing of the <unk> transaction.

It looks like on a consolidated basis Youre holding about $1 billion of net debt.

Speaker 2: you're holding about a billion dollars of net debt. Is that the right number for the company to hold on a consolidated basis? And then how do you think about five acts as you're able to get back into the market following the HUP?

Is that the right number for the company to hold on a consolidated basis and then how do you think about buybacks as youre able to get back into the market.

Following the deal close.

Atanas H. Atanasov: Yeah, thank you for your question. This is Atanas. The way we think with respect to our capital structure and debt, in particular, is in terms of net leverage. The net leverage target that we have publicly stated has been one time net leverage. As you can see, we're far below that right now, and we're very pleased. Given where capital structure is today, our-

Atanas Atanasov: Yeah, thank you for your question. This is Atanas. The way we think with respect to our capital structure and debt, in particular, is in terms of net leverage. The net leverage target that we have publicly stated has been one time net leverage. As you can see, we're far below that right now, and we're very pleased. Given where capital structure is today, our-

Speaker 3: Thank you for your question. This is Atlas. The way we think with respect to our capital structure and get in particular is in terms of net leverage. And the net leverage target that we have publicly stated has been one time a net leverage. As you can see, we're far below that right now and we're very pleased.

Yes. Thank you for your question. This is Aetna is the way we were.

Pink with respect to our capital structure and debt in particular is in terms of net leverage.

The net leverage target that we have publicly stated has been onetime net leverage as you can see we're far below that right now and we're very pleased.

Speaker 3: given where capital structures today are.

Given where capital structures today are first and foremost priority is shareholder return both in terms of buybacks and dividends.

Tim Go: ... first and foremost priority is shareholder return, both in terms of buybacks and dividends. And we'll continue with that mindset. With respect to anything around the debt, I think we're very pleased with where our debt is, and shareholder return is our priority.

Atanas Atanasov: ... first and foremost priority is shareholder return, both in terms of buybacks and dividends. And we'll continue with that mindset. With respect to anything around the debt, I think we're very pleased with where our debt is, and shareholder return is our priority.

Speaker 3: First and foremost priority is shareholder return, both in terms of buybacks and dividends.

Speaker 3: And we'll continue with that mindset. With respect to anything around the debt, I think we're very much, we're very pleased with where our debt is and shareholder return is our priority.

And we will continue with that mindset with respect to anything around the debt I think we're very much.

We're very pleased with where that is.

Shareholder return is our priority.

Jason Gabelman: Got it. Great. And then my other question is just looking at the indicators that you've posted for October. It seems like the premiums in the West relative to MidCon have come in after a pretty good run of pricing premiums. How much of that is seasonally driven? And is there any structural components as maybe there were a couple of assets, I guess, in the Rockies, in particular, offlined for the better part of the past couple of years, and now they're back. If you could answer that, that'd be great. And just one more clarification. I don't actually think you provided the working capital number in terms of cash inflow. If you could provide that, that'd be great. Thanks.

Speaker 2: Uh, got it. Great. Um, and then my other question is just looking at the indicators that you've posted for October . Um, it seems like the premiums in the West relative to MidCon, um, have come in.

Got it great.

And then my other question is just looking at the indicators that you've posted for October.

Seems like the premiums and the west relative to mid Con.

Have come in.

Speaker 14: After a pretty good run of pricing premiums, how much of that is seasonally driven and is there any structural components as maybe there were a couple of assets, I guess, in the Rockies, in particular offline, for the better part of the past couple of years and now they're back?

After a pretty good run of pricing premiums how much of that is seasonally driven.

And is there any structural components as maybe there were a.

Couple of assets I guess in the Rockies in particular offline for the better part of the past couple of years and now they're back.

Speaker 14: If you could answer that, that'd be great. It just won more clarification. I don't actually think you provided the working capital.

If you could answer that that'd be great and just one more.

Clarification I don't actually think you provided the working capital.

Speaker 14: number in terms of cash inflow, if you could provide that, that'd be great. Thank you.

Number in terms of cash and flow if you could provide that that'd be great. Thanks.

Tim Go: Yeah, let's start with the last part, since it's fresher. This is Atanas. In terms of working capital, we saw a tailwind to the tune of $500 million for Q3.

Atanas Atanasov: Yeah, let's start with the last part, since it's fresher. This is Atanas. In terms of working capital, we saw a tailwind to the tune of $500 million for Q3.

Speaker 3: Yeah, let's start with the last part, Susan DeFresher. This is Atmus. In terms of working capital, we saw a tailwind to the tune of $500 million for the third quarter.

Yes.

With the last part is the pressure. This is atmos in terms of working capital we saw a tailwind to the tune of 500 million for the third for the third quarter.

Steve Ledbetter: Yeah, and then just to answer the structural margin environment on the West Coast, we don't see anything necessarily structurally other than a good portion of diesel, you know, particularly RD, coming to those markets, and therefore, we think there'll be length of diesel and, to be honest, an opportunity in gas as well as jet. But we don't think there's anything materially structural, and we think that what you're seeing right now is seasonal, normal patterns.

Speaker 8: Yeah, and just to answer the structure margin environment on the West Coast, we don't see anything necessarily structurally other than a good portion of diesel, you know, particularly RD coming to those markets and therefore we think there'll be a link of diesel and...

Yes.

To answer the the structure margin environment on the West Coast, we don't see anything necessarily structurally other than a good portion of diesel, particularly R&D coming to those markets and therefore, we think there'll be linked.

Diesel and to be honest and opportunity in gas as well as jet, but we don't think theres anything materially structure. When we think that what youre seeing right now is seasonal normal normal patterns.

Speaker 8: to be honest with opportunity and gas as well as jet.

Speaker 8: But we don't think there's anything materially structural. We think that what you're seeing right now is seasonal normal, normal patterns.

Tim Go: Yeah, I would just jump in, Jason. We typically see seasonal weakness as the tourism and the driving season kind of comes to a close. We're not seeing anything unusual at this point. What we are seeing is pretty strong jet premiums right now. And I would tell you, for the third quarter, we had record jet production and record jet sales that helped boost capture in both the MidCon and in the West regions, and we're seeing that continue here in the fourth quarter. So we'll continue to look for those types of opportunities to continue to just optimize our portfolio.

Speaker 2: Yeah, I would just jump in Jason we we typically see seasonal

I would just jump in Jason we typically see seasonal weakness as.

Speaker 2: weakness as tourism in the driving season uh... kind of comes to a close we're not seeing anything unusual uh... at this point uh... what we are seeing is pretty strong jet premiums right now

Tourism and the driving season kind of comes to a close we're not seeing anything unusual at this point, while we are seeing pretty strong jet premiums right now and I would tell you for the third quarter, we had record jet production and record jet sales that helped boost capture in both the mid con and in the west regions and where.

Speaker 2: And I would tell you for the third quarter, we had record jet production and record jet sales that helped boost capture in both the mid-con and in the West regions. And we're seeing that continue here in the fourth quarter. So we will continue to look for those types of opportunities to continue to just optimize our portfolio.

Seeing that continue here in the fourth quarter. So we will continue to look for those types of opportunities.

To continue to just.

Optimize our portfolio.

Jason Gabelman: Great. Thanks.

Yes.

Great. Thanks.

Operator: Your next question comes from the line of Joe Laetsch from Morgan Stanley. Please go ahead.

Speaker 1: Your next question comes from the line of Joe Leish from Morgan Stanley . Please go ahead.

Your next question comes from the line of Joe <unk> from Morgan Stanley. Please go ahead.

Joseph Gregory Laetsch: Hi, Tim. Good morning, and thanks for taking my questions. So I just had a follow-up on RD. I was just hoping to get your outlook for RD margins here. Just given the industry capacity coming online next year, we've seen RINs fall, but we've also seen some of the feedstock costs decline as, you know, as well as an offset. So just hoping to get your thoughts on the credit side as well as the feedstock side here, please.

Joe Laetsch: Hi, Tim. Good morning, and thanks for taking my questions. So I just had a follow-up on RD. I was just hoping to get your outlook for RD margins here. Just given the industry capacity coming online next year, we've seen RINs fall, but we've also seen some of the feedstock costs decline as, you know, as well as an offset. So just hoping to get your thoughts on the credit side as well as the feedstock side here, please.

Thank you and good morning, and thanks for taking my questions.

Speaker 15: So I just had a follow up on RD. I was just hoping to get your outlook for RD.

So I just had a follow up on on R&D I was just hoping to get your.

Your outlook for R&D margins here, just given the industry capacity coming online next year and we've seen rins follow up we've also seen some of the feedstock cost decline as well as an offset so just hoping to get your thoughts on the credit side as well as the feedstock side here. Please.

Speaker 15: Just giving the industry capacity coming on online next year. We've seen rents fall.

Steve Ledbetter: Yeah, I think, I think you hit it right. You know, with the RVO release and the view of additional capacity coming on, there's been weakness in both RIN value and LCFS. We think that that will adjust sometime. There's been some announcements of some of the larger production coming on, some delays there, and so you've seen some of that change the overall margin and pricing structure, but we think that's temporary. That has created a bit of reduction in terms of the feedstock pricing near term, and we'll take advantage of that, but we think that will normal out. And ultimately, we think that the RVO will adjust. We don't know when, but we do think that when it does adjust, it will create additional support in terms of the RIN value.

Speaker 8: Yeah, I think I think you hit it right, you know, with the RVO release and the view of additional capacity coming on.

Yes, I think I think you hit it right with the RVO relief and the view of additional capacity coming on.

Speaker 8: there's been weakness in both RIN value and LCFS. We think that.

There has been weakness in both RIN value Enel CFS, we think that that.

Speaker 8: that will adjust sometime. There's been some announcements of some of the larger production coming on, some delays there. And so you've seen some of that change the overall margin and pricing structure, but we think that's temporary. That has created a bit of a reduction in terms of the feedstock pricing near term, and we'll take advantage of that. But we think that will normal out. And ultimately, we think that the RBO

We will adjust some time, there's been some announcements of some of the larger production coming on some delays there and so you've seen some of that change the overall margin and pricing structure, but we think thats temporary.

That has created a bit of reduction in terms of the feedstock.

Pricing near term and we will take advantage of that but we think that will normal out and ultimately we think that the RVO.

Speaker 8: will adjust. We don't know when, but we do think that when it does adjust it will create additional support in terms of the rent value. And we continue to try to find other markets to take our products too. And we think that there are opportunities not only in terms of the markets that have LCFS, but we're also finding some opportunities where we can match proximity.

We'll adjust.

We don't know when but we do think that when it does adjust it will create additional.

Support in terms of the RIN value and we continue to try to find other markets to take our products to and we think that there are opportunities not only in terms of.

Steve Ledbetter: And we continue to try to find other markets to take our products to, and we think that there are opportunities, not only in terms of the markets that have LCFS, but we're also finding some opportunities where we can match proximity to our barrels and put them into those things and into those channels profitable. So longer term outlook, we're pretty comfortable with what we're doing and unlocking and untapping the complete value chain in our RD business.

The margins have CFS, but we're also finding some opportunities where we can match proximity to to our barrels and put them into those things into those.

Speaker 8: to our barrels and put them into those things and into those channels profitable. So longer term outlook, we're pretty comfortable with what we're doing and unlocking and untapping the complete value chain in our arty business. And you solve...

Channels profitable so longer term outlook, we're pretty comfortable with what we're doing in our marking and on tapping.

<unk> value chain and our Rd business.

Tim Go: And you saw, Joe, that RD margins tightened here in Q3, and yet our gross margin and net margins actually increased. And that's a testament to what the team is doing to try to improve our just our base business.

And you saw.

Joe that Rd.

Speaker 2: RD margins tightened here in the third quarter, and yet our gross margin and net margins actually increased. That's a testament to what the team is doing to try to improve our just our base business.

Rd margins tightened here in the third quarter and yet our gross margins and net margins actually increased.

That's a testament to what the team is doing to try to improve our.

Our base business.

Joseph Gregory Laetsch: Great. Thanks, Tim. I appreciate it. I'll, I'll leave it there. Thanks.

Joe Laetsch: Great. Thanks, Tim. I appreciate it. I'll, I'll leave it there. Thanks.

Great. Thanks, Tim I appreciate it I'll leave it there thanks.

Operator: We have no further questions in the queue at this time. I will turn the call back over to Tim for closing remarks.

Speaker 1: We have no further questions in the queue at this time. I will turn the call back over to Tim for closing remarks.

We have no further questions in the queue at this time I will turn the call back over to Tim for closing remarks.

Tim Go: Thank you, Krista. Let me recap by saying that in Q3, we executed our turnarounds on time and on budget. We delivered above mid-cycle profits in our refining segment, lubricants and specialty segment, and marketing segment. We returned $669 million to our shareholders, for a total of $1.2 billion of shareholder returns so far this year. These strong results are a testament to the competitive advantages of our business portfolio and the hard work of our employees to execute our strategies and deliver on these results. Our priorities remain the same: to improve our reliability, 1, to integrate and optimize our new portfolio of assets, 2, and to return excess cash to our shareholders, 3. Thank you for joining our call. Have a great day, and go Rangers!

Speaker 2: Thank You Krista, let me recap by saying that in the third quarter we executed our turnarounds on time and on budget We delivered above mid-cycle profits in our refining segment lubricants and specialty segments and marketing segment and we've returned 669 million dollars to our shareholders for a total of 1.2 billion of shareholder returns so far this year

Thank you Christa, let me recap by saying that in the third quarter, we executed our turnarounds on time and on budget, we delivered above mid cycle profits in our refining segment lubricants and specialty segment and marketing segment.

And we returned $669 million to our shareholders for a total of $1 2 billion of shareholder returns so far this year.

Speaker 2: These strong results are a testament to the competitive advantages of our business portfolio and the hard work of our employees to execute our strategies and deliver on these results.

These strong results are a testament to the competitive advantages of our business portfolio and the hard work of our employees to execute our strategies and deliver on these results are.

Speaker 2: Our priorities remain the same to improve our reliability number one, to integrate and optimize our new portfolio of assets number two, and to return next death cash to our shareholders number three.

Our priorities remain the same to improve our reliability number one to integrate and optimize our new portfolio of assets number two and to return excess cash to our shareholders number three.

Speaker 2: Thank you for joining our call. Have a great day, and go Rangers.

Thank you for joining our call have a great day and go Rangers.

Operator: Thank you. This does conclude today's teleconference. Please disconnect your lines at this time, and have a wonderful day.

Speaker 1: Thank you. This does conclude today's teleconference. Please disconnect your lines at this time and have a wonderful day.

Thank you. This does conclude today's teleconference. Please disconnect your lines at this time and have a wonderful day.

Okay.

Yeah.

Yes.

Q3 2023 HF Sinclair Corp and Holly Energy Partners LP Earnings Call

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