> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# HF Sinclair's Refining Margin Hit $54.22 A Barrel, With EPA Waivers Now Facing Court Challenges
- URL: https://www.bullished.co/hf-sinclairs-refining-margin-hit-54-22-a-barrel-with-epa-waivers-now-facing-court-6c7a6bdc/
- Published: 2026-10-28T18:25:50.000Z
- Updated: 2026-10-28T18:25:50.000Z
- Description: Small refinery waivers added $603 million to nine-month pre-tax earnings, and open fuel-credit obligations shrank to $41 million.
- Author: Matteo Parrino
- Tags: Earnings, DINO, Industry: Energy

[HF Sinclair](https://www.bullished.co/tag/dino/), an independent energy company that makes gasoline, diesel, jet fuel, renewable diesel and lubricants, posted an adjusted refining margin of [$54.22 per barrel](https://www.sec.gov/Archives/edgar/data/0001915657/000191565726000074/dino-20260930.htm?ref=bullished.co) in the third quarter, up from $19.16 a year earlier, in a 10-Q filed Wednesday. Part of that rests on EPA small refinery waivers that are now under legal attack.

## What the waivers were worth

The company said small refinery waivers granted by the EPA lifted pre-tax earnings by $603 million for the first nine months of 2026\. Of that, $582 million was booked as a reduction in third-quarter cost of materials, and $21 million as revenue tied to the fourth quarter of 2025.

Without the waivers, the company said its costs for complying with the Renewable Fuel Standard, the federal blending mandate, would have been $516 million in the quarter and $1,512 million for nine months. Open obligations to retire fuel credits, known as RINs, stood at $41 million at September 30, against [$493 million](https://www.sec.gov/Archives/edgar/data/0001915657/000191565726000057/dino-20260630.htm?ref=bullished.co) at June 30.

Third-quarter net income attributable to stockholders was [$2,015 million](https://markets.ft.com/data/announce/detail?dockey=600-202610280630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW926439-1&ref=bullished.co), or $11.38 a share, versus $403 million, or $2.15, a year earlier. Revenue rose 50% to $10,857 million. The company also said tight transportation-fuel supply and elevated crack spreads, the gap between product and crude prices, drove margins.

## Lawsuits over the exemptions

The waivers are contested. The Renewable Fuels Association and Growth Energy have sued over them. The court put those suits on hold pending its ruling on challenges to earlier EPA decisions. HF Sinclair filed a motion on October 19 to intervene and defend its grants.

The EPA also denied or only partly granted other petitions. HF Sinclair responded with lawsuits in the Tenth Circuit on October 1 and protective suits in the DC Circuit on October 2\. The company said the matters remain pending and it cannot estimate the impact. The EPA's response brief in the consolidated DC Circuit cases is due by November 16.

## Buybacks, a spin-off and a new CEO

On August 2, the company bought 2,375,000 shares from REH at $89.41 each, for $212 million. The board then approved a new $1.5 billion repurchase program, with $1.2 billion left at September 30\. Shares traded at $113.30 in Wednesday trading.

July brought two announcements: a planned separation of the Lubricants & Specialties segment, due to wrap up during 2027, and the closure of the Mississauga refinery. Retirement charges were [$109 million](https://markets.ft.com/data/announce/detail?dockey=600-202610280630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW926439-1&ref=bullished.co) in the quarter, and asset retirement obligations rose $140 million.

In August it took a 15.0% stake in the proposed Western Gateway pipeline with Phillips 66 and Kinder Morgan, with up to $750 million of planned investment. An [8-K](https://www.benzinga.com/news/26/10/62654452/hf-sinclair-q3-2026-earnings-call-transcript?ref=bullished.co) shows the board named President and COO Steve Ledbetter chief executive effective January 1, 2027, succeeding Franklin Myers, who becomes executive chairperson through the spin-off.

The company aims to decide on funding the Westline Connect expansion in the first quarter of 2027.

### Sources

- [10-Q Filing — HF Sinclair (DINO)](https://www.sec.gov/Archives/edgar/data/0001915657/000191565726000074/dino-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — HF Sinclair (DINO), Q2 FY2026 filed 2026-07-30 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001915657/000191565726000057/dino-20260630.htm?ref=bullished.co) — SEC EDGAR
- [8-K Filing — HF Sinclair, filed 2026-10-28 (Items 2.02, 5.02, 7.01, 9.01)](https://www.sec.gov/Archives/edgar/data/0001915657/000191565726000071/dino-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, dinoex99109-30x2026.htm) — HF Sinclair, filed 2026-10-28](https://www.sec.gov/Archives/edgar/data/0001915657/000191565726000071/dinoex99109-30x2026.htm?ref=bullished.co) — SEC EDGAR
- [HF Sinclair (DINO) Q3 Earnings and Revenues Surpass Estimates](https://finance.yahoo.com/markets/stocks/articles/hf-sinclair-dino-q3-earnings-105003197.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [HF Sinclair Reports 2026 Third Quarter Results and Announces Regular Cash Dividend – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610280630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW926439-1&ref=bullished.co) — Financial Times
- [HF Sinclair Non-GAAP EPS of $11.75 beats by $3.92, revenue of $10.86B beats by $1.97B](https://seekingalpha.com/news/4658724-hf-sinclair-non-gaap-eps-of-1175-beats-by-392-revenue-of-1086b-beats-by-197b?ref=bullished.co) — seekingalpha.com
- [HF Sinclair Q3 2026 Earnings Call Transcript](https://www.benzinga.com/news/26/10/62654452/hf-sinclair-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [HF Sinclair to Take Advantage of Widening Western Canadian Select Discount, COO Ledbetter Says -- OPIS](https://www.marketwatch.com/story/hf-sinclair-to-take-advantage-of-widening-western-canadian-select-discount-coo-ledbetter-says-opis-c529d148?ref=bullished.co) — MarketWatch

### More on HF Sinclair

- [HF Sinclair Pushes Back Westline Connect Decision, Won't Commit To $7.25 Refining Cost Target](https://www.bullished.co/hf-sinclair-pushes-back-westline-connect-decision-wont-commit-to-7-25-refining-cost-target-462cdaee/)
- [HF Sinclair Names Steve Ledbetter CEO As Myers Joked About 'How Long Temporary Actually Is'](https://www.bullished.co/hf-sinclair-names-steve-ledbetter-ceo-as-myers-joked-about-how-long-temporary-actually-is-36695f8e/)
- [HF Sinclair Earns $2,015 Million In Third Quarter, Up From $403 Million, And Picks Steve Ledbetter As CEO](https://www.bullished.co/hf-sinclair-earns-2-015-million-in-third-quarter-up-from-403-million-and-picks-steve-9deaf087/)

[All HF Sinclair (DINO) coverage →](https://www.bullished.co/tag/dino/)