HF Sinclair Corporation reported an adjusted net income of $960 million, or $5.31 per diluted share, for the second quarter of 2026. This represents an increase from the prior-year quarter's adjusted net income of $322 million, or $1.70 per diluted share. The company's net income attributable to shareholders for the period totaled $892 million, or $4.93 per diluted share.
HF Sinclair's adjusted EBITDA in Q2 2026, up from $665 million in the prior-year quarter.
The company's adjusting EBITDA rose to $1.5 billion, driven by contributions from refining, renewables, and lubricants, according to Acting Chief Financial Officer Vivek Garg. Refining adjusted EBITDA reached $1 billion in Q2 2026, compared to $476 million in Q2 2025. In the Renewables segment, adjusted EBITDA was $123 million, compared to a $2 million loss a year earlier, aided by higher Renewable Identification Number prices, increased volumes, and greater Producer's Tax Credit benefits. Midstream adjusted EBITDA remained unchanged at $112 million.
HF Sinclair intends to separate its Lubricants and Specialties business into an independent public company over the next 12 to 18 months. Matt Joyce, senior vice president of Lubricants and Specialties, stated the future business is intended to operate under a capital-light model. The segment's adjusted EBITDA rose to $207 million in Q2 2026 from $55 million a year earlier. Joyce noted that leaving base-oil production is expected to materially reduce capital intensity and net working-capital needs.
As part of the separation plan, HF Sinclair will retire its base-oil refining assets in Mississauga, Ontario, Canada. CEO Franklin Myers stated the location, size, and scope of the Mississauga assets no longer supported their long-term economics. Joyce said the company has not yet quantified the financial impact of retiring the Mississauga site or the total separation costs. Under new arrangements, Tulsa will continue to supply Group I and specialty products, while Group II and Group III products will be provided through other means.
Market conditions and refining operations
CEO Franklin Myers estimated that roughly 5 million to 7 million barrels per day of refining capacity has been offline compared with five months earlier, noting that these disruptions have tightened markets. Myers expects tighter refining markets into 2027 and identified China's crude purchasing and refined-product export behavior as a potential market variable.
HF Sinclair's crude oil charge averaged approximately 640,000 barrels per day in Q2 2026, up from 616,000 barrels per day the previous year. President and COO Steven Ledbetter said realized crude costs were a drag during the quarter due to geopolitical volatility and changes in market backwardation. For Q3 2026, the company expects refining crude oil runs of 590,000 to 620,000 barrels per day.
Marketing EBITDA increased to $28 million in Q2 2026 from $25 million a year earlier, while total branded fuel sales volumes reached 387 million gallons, up from 337 million gallons in the prior-year period. The company added 63 branded sites in Q2 2026 and maintains more than 100 sites in its branding pipeline, targeting annual branded-site growth of approximately 10%.
Capital allocation and expansion
The company returned $265 million to shareholders in Q2 2026 through $89 million in dividends and $179 million in share repurchases. The board declared a quarterly dividend of $0.525 per share, a 5% increase from the previous $0.50 per-share dividend. As of June 30, 2026, HF Sinclair held approximately $4.26 billion in total liquidity, consisting of $2.26 billion in cash and a $2 billion undrawn credit facility, with $2.8 billion in debt outstanding.
Regarding future capacity, the first phase of the Go-West initiative aims to add approximately 35,000 barrels per day in Nevada by 2029, with a final investment decision expected in 2026. Ledbetter stated later phases of the initiative could potentially reach 140,000 to 150,000 barrels per day. Additionally, the El Dorado vacuum furnace project is expected to allow the facility to process up to an extra 10,000 barrels per day of heavy crude.
Approximately 20% of global base-oil supply for lubricants was offline.
President and COO Steven Ledbetter noted that distillate production improved by 11,000 barrels per day year over year, attributing operational results to reliability, improved optimization, and product movement among facilities.
