HF Sinclair Earns $2,015 Million In Third Quarter, Up From $403 Million, And Picks Steve Ledbetter As CEO
The Dallas refiner posted $11.38 a share as fuel margins widened, and its president will take over from Franklin Myers on January 1, 2027.
HF Sinclair, the independent refiner that makes gasoline, diesel, jet fuel and renewable diesel, earned $2,015 million in the third quarter, or $11.38 per diluted share, against $403 million, or $2.15, a year earlier. In an 8-K filed Wednesday, the company also named President and COO Steve Ledbetter its next CEO, effective January 1, 2027.
Refining margins did the heavy lifting
Adjusted net income was $2,079 million, or $11.75 per share, versus $459 million, or $2.44, in the third quarter of 2025. Sales and other revenues were $10,857 million, against $7,251 million.
Refining income before interest and taxes was $2,435 million, compared with $476 million. The company credited tight transportation fuel supply, elevated crack spreads (the gap between crude costs and product prices) and benefits from small refinery RINs waivers granted by the EPA.
Adjusted refinery gross margin was $54.22 per produced barrel sold, a 183% increase from $19.16. Crude charge averaged 614,060 barrels per day, versus 639,050. The company said a planned turnaround at its El Dorado refinery lowered sales in the Mid-Continent region, offsetting stronger West region sales.
Other segments improved or held steady. Renewables earned $123 million against a $55 million loss, Marketing earned $31 million against $22 million, and Midstream earned $87 million against $98 million. Lubricants & Specialties earned $38 million, down from $52 million.
A new CEO, and a spinoff to run
Ledbetter, who has been president and COO since July 2026, succeeds Franklin Myers. Myers stays CEO through January 1, 2027, then becomes executive chairperson until the planned separation of the Lubricants & Specialties segment is complete, advising on that process.
Lead independent director Leldon Echols said Ledbetter's oversight of the commercial organization and operations gave him "a deep understanding" of the refining, renewables, marketing and midstream businesses. The board expects to add Ledbetter as a director at a later date.
In July, HF Sinclair said it would separate Lubricants & Specialties into a new public company, distributing at least 80.1% of its stock, with the work substantially completed over the course of 2027. The quarter also carried charges for retiring the Mississauga, Ontario base oil refining assets: a $27 million impairment, $28 million of severance and $54 million of accelerated depreciation. That transition is expected to be substantially completed in the second half of 2027.
Cash pile and payouts
The company returned $572 million to stockholders in the quarter: $93 million in dividends and $479 million in buybacks. Cash and equivalents stood at $3,333 million on September 30, up from $978 million at December 31, 2025, against consolidated debt of $2,774 million.
The board declared a regular quarterly dividend of $0.525 per share, payable December 2 to holders of record on November 12.
Ledbetter takes the job on January 1, 2027, with Myers staying on as executive chairperson through a Lubricants & Specialties separation planned across 2027.
