HF Sinclair Corp (DINO) 2024 Q2 法說會逐字稿

Welcome to HF Sinclair Corporation's second quarter 2024 conference call and webcast. Hosting the call today is Tim Go, Chief Executive Officer of HF Sinclair. He's 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. (Operator Instructions) Please note that this conference is being recorded.

歡迎參加 HF Sinclair Corporation 的 2024 年第二季電話會議和網路廣播。今天主持電話會議的是 HF Sinclair 執行長 Tim Go。財務長 Atanas Atanasov 也加入了他的行列； Steve Ledbetter，商業執行副總裁； Valerie Pompa，營運執行副總裁；以及潤滑劑和特種產品高級副總裁 Matt Joyce。（操作員說明）請注意，本次會議正在錄製中。

It is now my pleasure to turn the floor over to Craig Biery, Vice President, Investor Relations. Craig, you may begin.

現在我很高興將發言權交給投資人關係副總裁 Craig Biery。克雷格，你可以開始了。

Thank you, Mark. Good morning, everyone, and welcome to HF Sinclair Corporation's second quarter earnings call. This morning, we issued a press release announcing results for the quarter ending June 30, 2024. If you would like a copy of the earnings press release, you may find them on our website at hfsinclair.com.

謝謝你，馬克。大家早安，歡迎參加 HF Sinclair Corporation 第二季財報電話會議。今天早上，我們發布了新聞稿，宣布截至 2024 年 6 月 30 日的季度業績。如果您想要收益新聞稿的副本，您可以在我們的網站 hfsinclair.com 上找到它們。

Before we proceed with remarks, please note the Safe Harbor disclosure statement in today's press release. And summary, it says statements made regarding management expectations, judgments or predictions are forward-looking statements.

在我們繼續發表評論之前，請注意今天新聞稿中的安全港披露聲明。總之，它表示有關管理階層期望、判斷或預測的陳述屬於前瞻性陳述。

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.

這些聲明旨在涵蓋聯邦安全法的安全港條款。有許多因素可能導致結果與預期不同，包括我們在 SEC 文件中指出的因素。

The call also may include discussion of non-GAAP measures. Please see the earnings press release 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.

此次電話會議也可能包括對非公認會計準則措施的討論。請參閱收益新聞稿，以了解與 GAAP 財務指標的對帳資訊。另請注意，今天電話會議中提供的任何時間敏感資訊在任何網路廣播重播或重讀文字記錄時可能不再準確。

And with that, I'll turn the call over to Tim.

然後，我會將電話轉給提姆。

Good morning, everyone. Our second quarter 2024 performance reflects continued progress on our commitment to deliver safe and reliable operations, resulting in higher utilization and lower operating cost per barrel in our refining business. In fact, we are seeing the benefits of our strategic initiatives across all of our businesses including strong contributions from our lubricants and midstream business segments again this quarter.

大家早安。我們 2024 年第二季的表現反映了我們在提供安全可靠營運的承諾方面的持續進展，從而提高了煉油業務的利用率並降低了每桶營運成本。事實上，我們在所有業務中都看到了戰略舉措的好處，包括本季我們的潤滑油和中游業務部門的強勁貢獻。

During the second quarter, we also returned $467 million in cash to shareholders and today announced a $0.50 quarterly dividend, demonstrating our continued commitment to shareholder returns.

在第二季度，我們還向股東返還了 4.67 億美元現金，並於今天宣布派發 0.50 美元的季度股息，這表明了我們對股東回報的持續承諾。

Now let me cover our segment highlights before turning over to Atanas. In refining for the second quarter of 2024, improved reliability efforts resulted in increased utilization rates and sales volumes versus the first quarter.

現在，在轉向阿塔納斯之前，讓我先介紹一下我們的部分要點。在 2024 年第二季的煉油過程中，可靠性工作的改進導致利用率和銷量較第一季有所提高。

The scheduled turnaround at our Puget refinery was completed on time and on budget, marking another successful example of improved execution. Our operating expenses were $7.29 per throughput barrel for the second quarter, which represents significant progress towards our near-term target of $7.25.

我們的普吉特煉油廠按計畫按時、按預算完成了檢修，這是改進執行力的另一個成功範例。第二季我們的營運費用為每桶吞吐量 7.29 美元，這表明我們在實現 7.25 美元的近期目標方面取得了重大進展。

We continue to focus on improving safe and reliable operations and lowering operating expenses across the refinery fleet. In renewables for the second quarter of 2024, I am pleased to report we achieved positive EBITDA through our team's optimization efforts, despite continued weakness and RINs and LCFS credit prices and the planned maintenance at our Puget renewable diesel facility.

我們繼續專注於改善煉油廠的安全可靠營運並降低營運費用。在2024 年第二季度的可再生能源領域，我很高興地報告，儘管持續疲軟、RIN 和LCFS 信貸價格以及我們的普吉特可再生柴油設施的計劃維護，我們透過團隊的優化努力實現了正EBITDA。

We are continuing to one, reduce the level of high-cost inventories, two, increase our low CI feedstock mix and pretreatment unit utilization rates and three, lower operating expenses through improved reliability. In marketing in the second quarter of 2024, we continued to benefit from the margin uplift for our branded fuels, and we grew our branded site count by 17 locations.

我們將繼續採取以下措施：一是降低高成本庫存水平，二是提高低 CI 原料組合和預處理裝置利用率，三是透過提高可靠性來降低營運費用。在 2024 年第二季的行銷中，我們繼續受益於品牌燃料的利潤成長，我們的品牌站點數量增加了 17 個。

Looking forward, we have signed new contracts to convert 150 stores to our branded wholesale sites, which translates into expected growth of approximately 10% over the next 6 to 12 months. In lubricants and specialties our strong second quarter was largely driven by continued optimization in our sales mix, operational efficiency initiatives and furthering our base oil and integration efforts.

展望未來，我們已簽署新合同，將 150 家商店轉變為我們的品牌批發網站，這意味著未來 6 至 12 個月內預計將增長約 10%。在潤滑油和特殊產品方面，我們第二季度的強勁表現主要是由銷售組合的持續優化、營運效率舉措以及基礎油和整合工作的進一步推進所推動的。

We continue to see opportunities to organically grow the business by high grading our finished products portfolio, accelerating growth with strategic channel partnerships and introducing new offerings that provide solutions to meet current and emerging market needs.

我們繼續看到透過高品質的成品組合、透過策略管道合作夥伴關係加速成長以及推出新產品來提供滿足當前和新興市場需求的解決方案來有機增長業務的機會。

In our midstream business for the second quarter of 2024, we are realizing the value of our fully integrated assets post-acquisition. We achieved record volumes for the period, and we believe we will continue to grow this business as we continue to optimize it with our refining and marketing segments.

在 2024 年第二季的中游業務中，我們正在實現收購後完全整合的資產的價值。我們在此期間實現了創紀錄的銷量，我們相信，隨著我們繼續優化煉油和行銷部門，我們將繼續發展這項業務。

In the second quarter, we returned over $467 million to shareholders through share repurchases and dividends. Since March 2022, we have repurchased approximately 55 million shares, which represents two-thirds of the shares we issued for the Sinclair and HEP transactions.

第二季度，我們透過股票回購和股利向股東返還超過 4.67 億美元。自 2022 年 3 月以來，我們已回購約 5,500 萬股股票，占我們為 Sinclair 和 HEP 交易發行的股票的三分之二。

As of June 30, 2024, we have approximately $925 million outstanding on our share repurchase authorization, and we remain committed to our long-term cash return strategy and long-term payout ratio while maintaining a strong balance sheet and investment grade rating.

截至 2024 年 6 月 30 日，我們的股票回購授權尚未償還約 9.25 億美元，我們仍然致力於長期現金回報策略和長期派息率，同時保持強勁的資產負債表和投資評級。

Today, we also announced that our Board of Directors declared a regular quarterly dividend of $0.50 per share payable on September 5, 2024 to holders of record on August 21, 2024.

今天，我們也宣布，董事會宣佈於 2024 年 9 月 5 日向 2024 年 8 月 21 日登記在冊的股東派發每股 0.50 美元的定期季度股息。

Looking forward, we remain focused on executing our corporate strategy as we strive to continue to one, improve reliability, two optimize and integrate our expanded portfolio and three, generate strong cash flows to support our cash return strategy.

展望未來，我們仍然專注於執行我們的企業策略，我們努力繼續一是提高可靠性，二是優化和整合我們擴大的投資組合，三是產生強勁的現金流以支持我們的現金回報策略。

With that, let me turn the call over to Atanas.

接下來，讓我將電話轉給阿塔納斯。

Thank you, Tim, and good morning, everyone. Let's begin by reviewing HS Sinclair's financial highlights. Today, we reported second quarter net income attributable to HF Sinclair shareholders of $152 million, or $0.79 per diluted share.

謝謝蒂姆，大家早安。讓我們先回顧一下 HS Sinclair 的財務亮點。今天，我們公佈了第二季歸屬於 HF Sinclair 股東的淨利潤為 1.52 億美元，即稀釋後每股收益 0.79 美元。

These results reflect special items that collectively increased net income by $2.5 million. Excluding these items, adjusted net income for the second quarter was $149 million or $0.78 per diluted share compared to adjusted net income of $504 million or $2.60 per diluted share for the same period in 2023.

這些結果反映了特殊項目使淨收入總共增加了 250 萬美元。不包括這些項目，第二季調整後淨利為 1.49 億美元，即稀釋每股 0.78 美元，而 2023 年同期調整後淨利為 5.04 億美元，即稀釋每股 2.60 美元。

Adjusted EBITDA for the second quarter was $406 million compared to $868 million in the second quarter of 2023. In our refining segment second quarter EBITDA was $187 million compared to $732 million of refining segment adjusted EBITDA for the second quarter of 2023.

第二季調整後 EBITDA 為 4.06 億美元，而 2023 年第二季為 8.68 億美元。我們的煉油部門第二季 EBITDA 為 1.87 億美元，而 2023 年第二季煉油部門調整後 EBITDA 為 7.32 億美元。

This decrease was primarily driven by lower adjusted refinery gross margins in both the West and Mid-Con regions as a result of higher product supply in our regions from higher refining utilization rates across the industry, which was partially offset by higher refined product sales volumes.

這一下降主要是由於西部和中部地區調整後的煉油廠毛利率較低，這是由於整個行業煉油利用率較高而導致我們地區的產品供應增加，而成品油銷量的增加部分抵消了這一影響。

Crude oil charge averaged 635,000 barrels per day for the second quarter compared to 554,000 barrels per day for the second quarter of 2023. This increase was primarily a result of decreased turnaround activities and improved reliability at our refineries compared to the same period last year.

第二季原油平均進口量為 63.5 萬桶/日，而 2023 年第二季為 55.4 萬桶/日。與去年同期相比，這一成長主要是由於我們煉油廠的周轉活動減少和可靠性提高。

In our renewables segment, we reported adjusted EBITDA of $2 million for the second quarter compared to negative $11 million for the second quarter of 2023, principally due to increased sales volumes and feedstock optimization, despite lower indicator margins in the second quarter of '24.

在我們的再生能源領域，我們報告第二季調整後EBITDA 為200 萬美元，而2023 年第二季為負1,100 萬美元，這主要是由於銷售增加和原料優化，儘管2024 年第二季指標利潤率較低。

Total sales volumes were 64 million gallons for the second quarter as compared to 50 million gallons for the second quarter of 2023. Our marketing segment reported $15 million of EBITDA for the second quarter compared to $25 million for the second quarter of '23, driven primarily by lower margins.

第二季的總銷量為 6,400 萬加侖，而 2023 年第二季的總銷量為 5,000 萬加侖。我們的行銷部門報告第二季的 EBITDA 為 1500 萬美元，而 2023 年第二季的 EBITDA 為 2500 萬美元，這主要是由於利潤率下降。

Our lubricants and specialties segment reported EBITDA of $97 million for the second quarter compared to EBITDA of $71 million for the second quarter of 2023. This decrease was largely driven by increased sales volumes, sales mix optimization, operational efficiencies and furthering our base oil integration efforts.

我們的潤滑油和特種產品部門第二季的 EBITDA 為 9,700 萬美元，而 2023 年第二季的 EBITDA 為 7,100 萬美元。這一下降主要是由於銷售增加、銷售組合優化、營運效率以及進一步加強我們的基礎油整合工作所致。

Despite the $14.4 million FIFO charge from consumption of higher price feedstock inventory in the second quarter of 2024 compared to $0.5 million FIFO benefit in the second quarter of 2023.

儘管 2024 年第二季因消耗價格較高的原料庫存而產生了 1,440 萬美元的 FIFO 費用，而 2023 年第二季的 FIFO 收益為 50 萬美元。

Our midstream segment reported adjusted EBITDA of $110 million in the second quarter compared to $88 million in the same period of last year, primarily due to higher revenues from increased sales volumes as a result of improved refining reliability and increased tariffs that went into effect in the second half of 2023.

我們的中游部門第二季調整後 EBITDA 為 1.1 億美元，而去年同期為 8,800 萬美元，這主要是由於煉油可靠性的提高和 2017 年生效的關稅提高導致銷售增加，收入增加。 。

Net cash provided by operations totaled $226 million, which included $99 million of turnaround spend in the quarter. HF Sinclair's capital expenditures totaled $84 million for the second quarter.

營運提供的淨現金總計 2.26 億美元，其中包括本季 9,900 萬美元的周轉支出。HF Sinclair 第二季的資本支出總計 8,400 萬美元。

As of June 30, 2024, HF Sinclair's total liquidity stood at approximately $3.4 billion, which included a cash balance of $866 million, our undrawn $1.65 billion unsecured credit facility and $850 million availability of the HEP credit facility. As of June 30, we have $2.7 billion of debt outstanding with a debt-to-cap ratio of 21%, a net debt-to-cap ratio of 14%.

截至 2024 年 6 月 30 日，HF Sinclair 的總流動性約為 34 億美元，其中包括 8.66 億美元的現金餘額、未提取的 16.5 億美元的無擔保信貸額度以及 8.5 億美元的 HEP 信貸額度。截至 6 月 30 日，我們的未償債務為 27 億美元，債務上限比率為 21%，淨負債上限比率為 14%。

Let's go through some guidance items. With respect to capital spending for full year 2024, we still expect to spend approximately $800 million of sustaining capital, including turnarounds and catalysts. In addition, we expect to spend $75 million in growth capital investments across our business segments.

讓我們來看看一些指導項目。關於 2024 年全年的資本支出，我們仍預計將花費約 8 億美元的維持資本，包括轉虧為盈和催化劑。此外，我們預計將花費 7,500 萬美元用於各業務部門的成長資本投資。

For the third quarter of 2024, we expect to run between 570,000 and 600,000 barrels per day of crude oil in our refining segment, which reflects the planned turnaround at our Parkland refinery, as well as the turnaround at our El Dorado refinery that was scheduled for 4Q, but will now begin in September.

2024 年第三季度，我們預計煉油廠的原油產量將達到 570,000 至 600,000 桶/日，這反映了我們 Parkland 煉油廠的計劃週轉以及 El Dorado 煉油廠計劃的周轉。月開始。

We're now ready to take some questions from the audience, and I'll turn it over to Mark.

我們現在準備好回答觀眾的一些問題，我將把它交給馬克。

(Operator Instructions)

（操作員說明）

Manav Gupta, UBS Financial.

馬納夫古普塔，瑞銀金融集團。

Just congrats on a strong buyback, guys. My first question relates to the lubes business it exceeded our expectations. Clearly, a lot of integration work that you have been doing, is helping you out. So help us understand the outlook for this business and should we expect the strong performance to continue?

夥計們，恭喜你的強勁回購。我的第一個問題與潤滑油業務有關，它超出了我們的預期。顯然，您所做的大量整合工作正在幫助您。那麼請幫助我們了解這項業務的前景，我們是否應該期望強勁的業績能夠持續下去？

Yeah, Manav, thanks. This is Tim. Our lubes business is performing very well and is a good example of our improved capability to execute and deliver value to shareholders. We believe our current run rate right now is $350 million of EBITDA per year and has been for the last 3.5 years.

是的，馬納夫，謝謝。這是蒂姆。我們的潤滑油業務表現非常出色，是我們提高執行能力並為股東創造價值的一個很好的例子。我們相信，我們目前的 EBITDA 運作率為每年 3.5 億美元，過去 3.5 年一直是如此。

So we are transforming this segment from what I call a cyclical base oil business that was back in 2019, to a specialty growth business that's capturing 12% to 13% EBITDA margins today. And so let me ask Matt to maybe give some color on what we're doing to continue to improve this business?

因此，我們正在將這一細分市場從 2019 年我所說的周期性基礎油業務轉變為如今 EBITDA 利潤率為 12% 至 13% 的特種增長業務。那麼，讓我請馬特談談我們正在採取哪些措施來繼續改善這項業務？

Yeah, thanks. Thanks, Tim, and thanks for the question, Manav. The team continues to focus on executing on our strategic priorities. And really that boils down to being more operationally excellent to figuring out ways that we continue to embed our base rules and use those as a meaningful way of delivering core growth and to getting the right people into the right places to help us continue on that growth trajectory.

是的，謝謝。謝謝提姆，也謝謝馬納夫的提問。該團隊繼續專注於執行我們的策略重點。實際上，這歸結為在營運上更加出色，找出我們繼續嵌入基本規則的方法，並將這些規則用作實現核心成長的有意義的方式，並將合適的人放在合適的位置來幫助我們繼續增長彈道。

When we look forward and look out at what's to come, we're really optimistic, but it's really the operational excellence that we've been focused on integrating our base oils and getting those into finished and specialties applications.

當我們展望未來並展望未來時，我們非常樂觀，但我們一直專注於整合我們的基礎油並將其納入成品和特種應用，這實際上是卓越的營運。

Just an example, we continue to build on our supply chain strength this past quarter. We successfully and seamlessly transitioned to our new Edmonton facility, which is a state-of-the-art terminal operation with bulk storage and rail siding.

舉個例子，我們在上個季度繼續增強我們的供應鏈實力。我們成功、無縫地過渡到我們的新埃德蒙頓設施，這是一個擁有大容量存儲和鐵路側線的最先進的碼頭運營設施。

And that allows us to be more logistically savvy it allows us to be more efficient with our costs and also enables our customers to be better served and to step up into that business and continue to grow in those very strategic parts of the country.

這使我們能夠更加精通物流，使我們能夠更有效地控製成本，也使我們的客戶能夠得到更好的服務，並進入該業務並繼續在該國那些非常具有戰略意義的地區發展。

Additionally, we announced a this past quarter we announced a strategic distributor partnership to service our specialties business for our Solar branded business in Europe, Middle East and Africa.

此外，我們在上個季度宣佈建立策略性經銷商合作夥伴關係，為我們在歐洲、中東和非洲的太陽能品牌業務提供專業服務。

And we've chosen to work with an industry leader in the specialty chemicals and ingredients distribution that allows us to further streamline our business as well as accelerate growth in high-value end uses and get reach into broader geographic coverage where we simply did not have that before. So we're excited about these types of pieces of business that are enabling us to grow and grow profitably.

我們選擇與特種化學品和配料分銷領域的行業領導者合作，這使我們能夠進一步簡化我們的業務，加速高價值最終用途的增長，並覆蓋我們根本沒有的更廣泛的地理覆蓋範圍。因此，我們對這些類型的業務感到興奮，它們使我們能夠成長並實現盈利。

Perfect, another area I noticed which you are aiming for was to get green in the renewable diesel side, looks like you've been there. So have you gotten to operating rate where you seem confident that barring certain market exceptions going ahead or the renewable diesel business has finally turned the corner and you should be at least able to make breakeven EBITDA, if not higher, going ahead.

完美，我注意到您的目標是在再生柴油方面實現綠色環保，看起來您已經去過那裡了。那麼，您是否已經達到了這樣的開工率，您似乎有信心，除非未來出現某些市場例外情況，或者可再生柴油業務最終已經轉危為安，您至少應該能夠實現盈虧平衡的EBITDA（如果不是更高的話）。

Yeah, Manav, on renewables, we're very pleased with the results that we delivered this quarter. I think I said on the last call that our goal was to be breakeven to slightly positive at these bottom of cycle conditions and that's exactly what you saw us deliver here in the second quarter.

是的，馬納夫，在再生能源方面，我們對本季交付的結果非常滿意。我想我在上次電話會議上說過，我們的目標是在週期底部的情況下實現盈虧平衡，略為正值，這正是您在第二季度看到的我們所實現的目標。

We're focused on the things we can control utilization, advantaged feedstocks, product netbacks, lower our costs. And our second quarter performance demonstrates that the strategy is working and that we can be and we are now profitable at these bottom of cycle conditions.

我們專注於我們可以控制利用率、優勢原料、產品淨收益、降低成本的事情。我們第二季的業績表明該策略正在發揮作用，我們可以做到這一點，而且我們現在在周期底部的條件下實現了盈利。

So let me ask Steve, if he wants to provide any color on what we're doing with renewables.

因此，讓我問史蒂夫，他是否願意提供有關我們在再生能源方面所做的工作的任何資訊。

Thanks, Tim. I think Tim covered it well. I mean, we're pretty pleased with our second quarter performance. When you look at the indicators, they continued to decline across the quarter. And we've said in a low margin environment as mentioned, if we can get to breakeven deposit we consider that successful as we improve our competitiveness around key elements.

謝謝，蒂姆。我認為蒂姆很好地涵蓋了這一點。我的意思是，我們對第二季的表現非常滿意。當你查看這些指標時，你會發現它們在整個季度持續下降。我們已經說過，在如上所述的低利潤環境下，如果我們能夠實現盈虧平衡存款，我們認為我們在提高關鍵要素的競爭力時就成功了。

So the feedstock approach, product optimization and operational reliability of what we said were the factors to do that and I think Q2 is a proof point. Those will continue to be the cornerstones of what we focus on as we move forward in a market position and market set of conditions that have some volatility that we're looking at.

因此，我們所說的原料方法、產品優化和操作可靠性是實現這一目標的因素，我認為第二季就是一個證明點。當我們在市場地位和我們正在考慮的具有一定波動性的市場條件中前進時，這些將繼續成為我們關注的基石。

But we'll control the things we can control. And we think that's the best thing that we can go do to make this business profitable and accretive to HF Sinclair.

但我們會控制我們能控制的事。我們認為，這是我們可以做的最好的事情，讓這項業務獲利並為 HF Sinclair 帶來增值。

Thank you so much for your detailed responses.

非常感謝您的詳細回覆。

Ryan Todd, Piper Sandler.

瑞恩·托德，派珀·桑德勒。

Great, thanks. Maybe first off, I mean, can you talk about what impact you've seen across your system today from the startup of a, now you're a few months in the TMX pipeline? Maybe both in terms of Canadian crude availability and pricing, any impact on crude availability at Puget sound? And WCS test has started to widen out back out a bit here with maybe any thoughts on your outlook for Canadian differentials going forward?

太好了，謝謝。也許首先，我的意思是，您能否談談從啟動以來您今天在系統中看到的影響，現在您已經進入 TMX 管道幾個月了？或許就加拿大原油供應量和定價而言，對普吉特灣原油供應量有何影響？WCS 測試已經開始擴大一點，也許您對加拿大未來的差異化前景有何想法？

Hi Ryan, it's Steve. I'll take that one as well. We anticipated as TMX came on that would compress the differentials. And of course, we saw that considerably quarter over quarter, which impacts all of our differential or heavy runs throughout our kit, specifically on the West Coast that impacts Puget.

嗨，瑞安，我是史蒂夫。我也拿那個。我們預計 TMX 出現後會壓縮差異。當然，我們看到季度與季度之間的差距相當大，這影響了我們整個裝備中的所有差異或重型跑步，特別是在影響普吉特的西海岸。

We have the capability we're connected to pipe and we have ample dock capacity to take crude. And we think longer term as the market settles out, that will be an advantage for us as there will be more barrels looking for a home and our proximity will be advantaged there.

我們有能力連接到管道，我們有充足的碼頭能力來接收原油。我們認為，從長遠來看，隨著市場穩定下來，這對我們來說將是一個優勢，因為將會有更多的桶子尋找安置點，而我們的地理位置將在那裡佔據優勢。

Again, we're already seeing a lot of production come on. And so some of the new increased capacity is beginning to be filled. And so we think the run of about one to two years will widen those differentials back out.

同樣，我們已經看到大量生產正在進行中。因此，一些新增加的產能開始被填滿。因此，我們認為大約一到兩年的運行將擴大這些差異。

As you mentioned, we begin to see some differentials widening coming on the back part of this quarter and into Q4. Some of that is associated with, again, there's a quite a bit of supply and some run in the second quarter.

正如您所提到的，我們開始看到本季末和第四季出現一些差異擴大。其中一些與第二季度的大量供應有關。

And we've seen some announced unplanned and planned maintenance elements in the third quarter. That will impact and take some of that product, or that feedstock off the market. So that's a bit supportive in terms of the differentials.

我們在第三季看到了一些已宣布的非計劃性和計劃內維護內容。這將影響並導致部分產品或原料退出市場。所以這對差異有一點支持。

And we'll continue to focus on the things that matter most we're connected to multiple trading hubs. We sit on many important pre-production sites that feed our facilities, and we think we'll be able to compete and navigate our way through this effectively.

我們將繼續關注與多個交易中心相連的最重要的事情。我們擁有許多重要的預生產場地，為我們的設施提供服務，我們認為我們將能夠有效地競爭和引導我們的道路。

Yeah and Ryan, I'll just throw in a couple of more comments. We've always said that Canadian production is going to continue to increase. We see that a big 200,000, 250,000 barrels a day increase coming online this year, which is going to continue to fill up that line.

是的，瑞安，我再補充幾句評論。我們一直說加拿大的產量將繼續增加。我們看到今年每天的產量將大幅增加 20 萬至 25 萬桶，這將繼續填滿這條線。

We think some barrels will move from what's going down in the Gulf Coast right now and being exported onto the TMX line going west. And so we don't think it's going to be long before the TMX line gets filled up. And we still think that in the next year or two that is still going to happen.

我們認為一些桶子將從墨西哥灣沿岸目前正在發生的事情中轉移出來並出口到向西行駛的 TMX 線路上。因此，我們認為 TMX 線路很快就會被填滿。我們仍然認為在未來一兩年內這種情況仍然會發生。

In the meantime, Enbridge is still apportioned, at least as we've seen it so far. And we still think there's a plenty of opportunities for people to get the heavy barrels that they want. And so we continue to think that the WCS dip will be maybe more favorable than what some of the forecasts have been put out there for.

同時，安橋公司仍在分配中，至少到目前為止我們看到的是這樣。我們仍然認為人們有很多機會獲得他們想要的重型桶。因此，我們仍然認為 WCS 的下降可能比一些預測更有利。

Great. Thanks for all the color. And then maybe shifting gears, your operating expense cost control, I think it came in a little bit lower than we were expecting. I think continuing the trend of improved cost performance, you're pretty close to your target there. Can you talk maybe about what is working across the system, the progress you've made and maybe the outlook, what you have to do still in terms of continuing to drive costs down?

偉大的。感謝所有的顏色。然後也許會改變方向，你的營運費用成本控制，我認為它比我們預期的要低一些。我認為繼續提高性價比的趨勢，您已經非常接近您的目標了。您能否談談整個系統的運作情況、您所取得的進展以及前景，以及在持續降低成本方面還需要做什麼？

Yeah, Ryan, our teams are working very hard on operating costs and reliability in general. So Valerie, let me ask her to come and provide some color.

是的，Ryan，我們的團隊在營運成本和整體可靠性方面正在努力工作。瓦萊麗，讓我請她來提供一些顏色。

Sure. I'll just kind of go back to what we said before. So our priorities around OpEx are reliability. First, that starts to bring down gain control, bring down our cost. Second is workflow efficiency and then turnaround excellence. So while we've demonstrated our turnaround, scoping and predictability. We're starting to see that in renewables, we see the impacts of our turnarounds and all of our reliability metrics.

當然。我會回到我們之前說過的。因此，我們圍繞營運支出的首要任務是可靠性。首先，這開始降低增益控制，降低我們的成本。其次是工作流程效率，然後是卓越的周轉。因此，儘管我們已經展示了我們的轉變、範圍和可預測性。我們開始看到，在再生能源領域，我們看到了我們的周轉和所有可靠性指標的影響。

And then second, the second part of that priority is workflow efficiency and really engaging our folks. So we one example is supplier strategies. So we have worked with our procurement organizations to adjust supplier strategies in such a way that we operate in a regional model, and that's producing significant benefits across the fleet.

其次，優先事項的第二部分是工作流程效率和真正吸引我們的員工。我們的一個例子是供應商策略。因此，我們與採購組織合作，調整供應商策略，使我們能夠以區域模式運營，這為整個機隊帶來了顯著的效益。

And those are sustainable gains and then simplify and integrating those processes across different work streams to eliminate waste and maximize value that gets us better base case optimization without spending, really without spending capital.

這些都是可持續的收益，然後簡化和整合不同工作流程中的這些流程，以消除浪費並最大化價值，從而使我們能夠在不花錢、真正不花錢的情況下更好地優化基礎案例。

Other examples, specifically removing rentals have generated lower cost to operate. So the things that we're doing are all bolstered with technology to enhance and speed up and make that those changes sustainable.

其他例子，特別是取消租金，降低了營運成本。因此，我們正在做的事情都得到了技術的支持，以增強和加速並使這些變化可持續。

Okay. Thank you.

好的。謝謝。

Theresa Chen.

陳德麗莎.

Good morning. I wanted to go back to the LSP discussion and your comments about high-grading finished products in your portfolio. Can you just help us understand what inning are you in completing that and how much more of an uplift can that serve going forward?

早安.我想回到 LSP 討論以及您對您的產品組合中的高品質成品的評論。您能否幫助我們了解您在哪一局完成了這項任務，以及這對未來能帶來多大的提升？

Yeah. Thanks for the question. This is Matt Joyce. We believe we're still in the early innings on this particular business. We're encouraged by the results, and we've now demonstrated those results for multiple years that are continuing to build on the momentum and the confidence that we have.

是的。謝謝你的提問。這是馬特喬伊斯。我們相信我們在這項特定業務上仍處於早期階段。我們對這些結果感到鼓舞，我們現在已經展示了多年來的這些成果，這些成果正在繼續增強我們所擁有的動力和信心。

But if we're talking baseball analogies, I'd say we're in the third inning, and we have plenty of room to roam here. And the opportunities what we continue to find is we look for a new ways to grow and innovate. And when we've been known to look for nickels and dimes, we actually find millions of dollars of opportunity, and we're executing very well to drop that to the bottom line.

但如果我們談論棒球類比，我會說我們處於第三局，我們有足夠的空間在這裡漫遊。我們繼續尋找的機會是尋找新的成長和創新方式。當我們知道尋找五分錢和一毛錢時，我們實際上發現了數百萬美元的機會，並且我們執行得非常好，將其降至底線。

Thank you. And on the Pad 4 refining economics side, now with multiple large midstream operators having announced sizable pipe expansions, one coming online this quarter and pipe Gulf Coast product to Pad 4 and another just announced a couple of weeks ago and coming online in mid-2026 bring incremental product to the market. Can you just give us your latest thoughts on the path for supply and demand for products going forward?

謝謝。在Pad 4 煉油經濟方面，現在多家大型中游業者宣布了大規模的管道擴建，其中一個將於本季度上線，將墨西哥灣沿岸產品輸送到Pad 4，另一家剛剛在幾週前宣布，將於2026 年中期上線將增量產品推向市場。您能否向我們介紹一下您對未來產品供需路徑的最新想法？

Yeah. Theresa, this is Steve. We watch those things very closely, and there will be continued announcements and how they come to fruition when they come to fruition, we'll monitor that. Our belief is that we have strategic advantages of where the product, the feedstock is secured, where the product is made and where it is placed.

是的。特蕾莎，這是史蒂夫。我們非常密切地關注這些事情，並將不斷發佈公告，以及它們如何實現，當它們實現時，我們將對此進行監控。我們相信，我們在產品、原料的安全保障、產品的製造和放置地點方面擁有戰略優勢。

And we have a sizable footprint in terms of midstream as well as our refining kit that can access the Rockies and access the Salt Lake Valley and then all the way connect down to Vegas. And we're very focused on making sure that we have the best offering to our customers and people who are really looking to get supplied with ratable basis.

我們在中游方面擁有相當大的足跡，我們的煉油套件可以進入落基山脈和鹽湖谷，然後一直連接到維加斯。我們非常注重確保為我們的客戶和真正希望獲得可評級基礎供應的人提供最好的產品。

We see that as something that we welcome competition. But we think that we have some strategic advantages there. We won't shy away from that. We're looking to optimize across the value chain every day.

我們認為這是我們歡迎競爭的事情。但我們認為我們在那裡有一些戰略優勢。我們不會迴避這一點。我們每天都在尋求優化整個價值鏈。

And, Theresa, I'll just chime in and say, we've said all along that we believe our refineries are in competitively advantaged regions where the demographics provide us structural support above our peers. We buy crude at export parity. We place our products at import parity.

而且，特蕾莎，我只想插話說，我們一直以來都說過，我們相信我們的煉油廠位於具有競爭優勢的地區，那裡的人口結構為我們提供了高於同行的結構性支持。我們以出口平價購買原油。我們將我們的產品置於進口平價。

And I think these pipelines that are coming into the platform area that you're referencing, that just continues to support the fact that we'll place our products at import parity. And we think as the market continues to weaken or go back to mid-cycle conditions, those competitive advantages that we have geographically just continue to support the earnings power of our business.

我認為這些管道正在進入您所引用的平台區域，這將繼續支持我們將我們的產品置於進口平價的事實。我們認為，隨著市場繼續走弱或回到週期中期，我們在地理位置上擁有的競爭優勢將繼續支持我們業務的獲利能力。

And we talked about this, but we raised our refining mid-cycle EBITDA up $250 million at the start of the year. And that was to reflect what we believe are the increased synergies and the higher earnings power of these competitively advantaged assets. So I think you see that play out. We think that's going to continue to play out despite the weakening margins and despite these additional pipelines that are coming in.

我們討論過這一點，但我們在年初將煉油中期 EBITDA 提高了 2.5 億美元。這是為了反映我們認為這些具有競爭優勢的資產的綜效增強和獲利能力增強。所以我想你已經看到了這一點。我們認為，儘管利潤率下降，儘管有這些額外的管道投入使用，但這種情況仍將繼續發揮作用。

Thank you.

謝謝。

Adam Wijaya, Goldman Sachs.

亞當‧維賈亞，高盛。

Good morning, team and thank you for taking my questions. I wanted to start on getting your latest thoughts on the refining macro given more recent crack weakness, maybe specifically on the distillate side, so maybe talk about what you guys are seeing in terms of demand within your own system, maybe highlight some pockets of strength or weakness?

早安，團隊，感謝您回答我的問題。鑑於最近的裂解疲軟，我想開始了解你們對煉油宏觀的最新想法，也許特別是在餾分油方面，所以也許可以談談你們在自己的系統內的需求方面看到的情況，也許會強調一些優勢還是弱點？

Hi, Adam, Steve, I'll take that one. So as we look at it, I think people were really concerned in the second quarter about a demand issue. I'll talk specifically distillate because I think that was your first question. I think there was a bit softness in terms of demand on diesel and was relatively flat on gas and increasing in jet.

嗨，亞當，史蒂夫，我選那個。因此，當我們審視它時，我認為人們在第二季度確實擔心需求問題。我將具體談論蒸餾，因為我認為這是你的第一個問題。我認為對柴油的需求有些疲軟，天然氣的需求相對持平，而噴射機的需求則有所增加。

I think part of that was contributed to some of the weather impacts that we had in the mid-con specifically and maybe missed a bit of the planting season. We are starting to see demand really come back strong in Pad 4 right now in the back part of this.

我認為部分原因是我們在中期受到的一些天氣影響，而且可能錯過了一些播種季節。我們開始看到 Pad 4 的需求確實在後面部分恢復強勁。

And then I think as far as the cracks go overall from a macro perspective, you saw more distillate coming online with some of the larger refiners in the Middle East, pushing barrels up into Europe and suppressing some of the margin environment for Europe and into the US.

然後我認為，就整體而言，從宏觀角度來看，你會看到中東一些較大的煉油廠開始生產更多的餾分油，將石油推向歐洲，並抑制了歐洲和歐洲的一些利潤環境。

But structurally, we see that as a settling out. And right now, diesel is operating slightly below mid-cycle, but we see that coming back into balance, we're seeing some strength come into play and we're seeing the actual inventory levels draw and on both distillate and gas.

但從結構上來說，我們認為這是一種解決辦法。目前，柴油的運作略低於週期中期，但我們看到恢復平衡，我們看到一些力量發揮作用，我們看到餾分油和天然氣的實際庫存水準下降。

Now as far as pockets of opportunity, we are really looking at our areas being balanced. But also some incremental demand associated with jet that continues to grow, and we're going to look to take advantage of optimizing that extending our debt value chain to take advantage of the strategic logistical advantages that we have. We're connected to many of the major hubs, and we look to focus on that as we move forward.

現在就機會而言，我們確實正在考慮平衡我們的領域。但與噴射機相關的一些增量需求也在持續成長，我們將尋求利用最佳化來擴展我們的債務價值鏈，以利用我們擁有的策略物流優勢。我們與許多主要樞紐都有聯繫，我們希望在前進的過程中專注於這一點。

Yeah, and what I would just say, this is Tim. What I would just say as you saw EIA come back just yesterday and report in May was, I think, their strongest gasoline demand. But since August of 2019, Steve will often say this in our internal meetings, but we're not having a demand issue.

是的，我只想說，這是提姆。當你昨天看到 EIA 回來並發布 5 月報告時，我想說的是，我認為他們最強大的汽油需求。但自 2019 年 8 月以來，史蒂夫經常在我們的內部會議上這麼說，但我們沒有遇到需求問題。

The demand is there, and it continue to support the fundamentals, really the biggest phenomenon in the second quarter was a supply issue. Utilization was very high as you guys saw in the reported numbers. And if you compare that to the average utilization that we typically see in the industry, something closer to the 88%, 89%.

需求是存在的，並且繼續支撐基本面，第二季最大的現象實際上是供應問題。正如你們在報告的數字中看到的那樣，利用率非常高。如果將其與我們通常在行業中看到的平均利用率進行比較，則接近 88%、89%。

We're running way hotter than what the our average utilization has been and that additional supply that was in the market in the second quarter is what really what was squeezing the margins. We don't think that's sustainable.

我們的運行速度比我們的平均利用率高得多，第二季度市場上的額外供應才是真正擠壓利潤的原因。我們認為這是不可持續的。

We've said that on over the last several years, and you're even starting to see that just over the last couple of weeks, just the industry is not able to sustain that level of high utilization. And as a result, you're starting to see cracks starting to improve, and we think that's going to continue here in the third quarter.

我們在過去幾年中已經說過了，您甚至開始看到，就在過去幾週內，該行業無法維持這種高利用率水平。結果，你開始看到裂縫開始改善，我們認為這種情況將在第三季繼續下去。

Got it. That's super helpful. And then maybe just switching gears on lubricants. You've demonstrated a couple of years of really strong profitability here. So wanted to get your updated thoughts on maybe timing of a potential strategic decision on how to further unlock value from this business? Anything you could share would be super helpful? Thank you.

知道了。這非常有幫助。然後也許只是更換潤滑油。你們已經在這裡展示了幾年來非常強勁的獲利能力。那麼想了解您對如何進一步釋放該業務價值的潛在策略決策的時機的最新想法嗎？您可以分享的任何內容都會非常有幫助嗎？謝謝。

Yeah. As we've stated before, optimizing our asset portfolio and continued simplification of the lubes business, is our strategic priority. We believe in significant value of this lubes business, and we review and evaluate all of our assets on an ongoing basis with an eye for maximizing shareholder value. However, we don't have any announcements or updates to make at this time on lubes business.

是的。正如我們之前所說，優化我們的資產組合併持續簡化潤滑油業務是我們的策略重點。我們相信潤滑油業務的巨大價值，並且我們不斷審查和評估我們的所有資產，並著眼於股東價值最大化。然而，我們目前沒有關於潤滑油業務的任何公告或更新。

Got it. Thank you.

知道了。謝謝。

Doug Leggate, Wolfe Research.

道格‧萊蓋特，沃爾夫研究中心。

Hey, guys. This is actually Carlos filling in for Doug. Thank you for taking our question. I guess we wanted to build on a question that was asked previously on utilization. How do you guys see utilization shifting across your markets, especially when you see Cenovus and the return of whiting having a direct impact to your to your mid-continent markets? What's your perceived utilization trend in that specific market? Thank you.

嘿，夥計們。這實際上是卡洛斯代替道格。感謝您提出我們的問題。我想我們想以之前提出的關於利用率的問題為基礎。你們如何看待整個市場的使用率變化，特別是當你們看到 Cenovus 和鱈魚的回歸對您的中部大陸市場產生直接影響時？您認為該特定市場的使用趨勢是什麼？謝謝。

Yeah, thanks for the question. We have seen increased utilization numbers being reported in, say, Pad 2, right. That's one of the phenomena we saw in the second quarter, as I mentioned earlier. And today, you're seeing that utilization come down.

是的，謝謝你的提問。我們已經看到 Pad 2（右側）中報告的使用率增加。正如我之前提到的，這是我們在第二季度看到的現象之一。今天，您會發現利用率下降了。

Hence, again, we don't think that level of high utilization can be sustained. However, our overall strategy, and we've talked about this a little bit in the past. Our overall strategy is we have the capability to move barrels West.

因此，我們再次認為高利用率水準無法持續。然而，我們的整體策略，我們過去已經討論過這一點。我們的整體策略是我們有能力向西轉移石油。

And so we have, as you know, positioned ourselves where we can move some of our Pad 2 barrels from the mid-con into the Rockies, which we think will continue to upgrade those barrels as utilization stays higher and then we'll get higher in the mid-con.

因此，如您所知，我們已經將自己定​​位在可以將一些Pad 2 桶從中型設備移至落基山脈的位置，我們認為隨著利用率保持較高，我們將繼續升級這些桶，然後我們會變得更高在中期。

And then we have capability to move from the Rockies over into the West Coast, even though our unit pipeline into Vegas. And our strategy is as the California refineries and the West Coast refineries continue to reduce the amount of production that they have. But there will be a general need for the barrels to move west. And we think our facilities, midstream in particular gives us the ability to do so and capture that.

然後我們有能力從落基山脈搬到西海岸，儘管我們的單位正在管道進入維加斯。我們的策略是加州煉油廠和西海岸煉油廠持續減少產量。但普遍需要將石油桶向西移動。我們認為我們的設施，特別是中游設施，使我們有能力做到這一點並抓住這一點。

Thank you. That's very helpful. And then a quick follow up on some of the previous questions as well. On lubricants, obviously, you've had an improving quarter and our results are showing up. But given what it looks like an apparent diesel recession. How sustainable do you ha said the segment in and of itself will be point forward?

謝謝。這非常有幫助。然後快速跟進之前的一些問題。顯然，在潤滑油方面，您的季度業績有所改善，我們的業績也正在顯現。但考慮到柴油經濟明顯衰退。您說該細分市場本身的可持續性如何？

Yeah, it's great question. It's Matt Joyce here. I think we've mentioned in the past, and we'll say again, I think the entire strategy here is to continue to drive our business to be more resilient business that can sustain through cycles and I think this is a great -- another great quarter that exemplifies just that we've seen cracks.

是的，這是一個很好的問題。我是馬特喬伊斯。我想我們過去已經提到過，我們會再說一遍，我認為這裡的整個戰略是繼續推動我們的業務成為更具彈性的業務，可以在整個週期中維持下去，我認為這是一個偉大的- 另一個偉大的季度證明我們已經看到了裂縫。

The crack spread was certainly compressed and margins compressed, but we were able to maintain our optimized portfolio, we were able to play to our strengths of both the finished and the specialties businesses, and we saw those deliver very nice results. So looking forward, this is a sustainable business. This is our new norm and we're tracking well, and we look to continue to improve it.

裂解價差肯定被壓縮，利潤率也被壓縮，但我們能夠維持我們優化的產品組合，我們能夠發揮我們在成品和特種業務方面的優勢，我們看到這些帶來了非常好的結果。因此，展望未來，這是一項可持續發展的業務。這是我們的新規範，我們進展順利，我們希望繼續改進它。

Yeah and I'll just make another comment on top of Matt's. We are disconnecting this business from the base oil cracks and the margins that are associated with the base oils. And that's through all the optimization efforts that Matt talked about. It's also through organically growing our finished lubes businesses.

是的，我將在馬特的基礎上再發表評論。我們正在將該業務與基礎油裂縫和與基礎油相關的利潤分開。這就是馬特談到的所有優化工作的結果。這也是透過我們的成品潤滑油業務的有機發展實現的。

And remember, our finished lubes business is really more industrial and focused on growing with GDP, then it is associated with passenger cars. And so we really believe the outlook continues to be strong for our lubes business.

請記住，我們的成品潤滑油業務實際上更加工業化，並且專注於隨 GDP 成長，然後與乘用車相關。因此，我們確實相信我們的潤滑油業務前景依然強勁。

And if you talk about, you talked about the weakness in the base of grants earlier and they're not going to get much weaker than what we saw in the early parts of the second quarter. And yet the results, as I mentioned, are disconnected from that now.

如果你談到，你早些時候談到了撥款基礎的疲軟，而且它們不會比我們在第二季度初期看到的情況弱很多。然而，正如我所提到的，結果與現在脫節了。

Thank you all. Appreciate the time.

謝謝大家。珍惜時間。

Matthew Blair, TPH.

馬修·布萊爾，TPH。

Thank you and good morning. In refining, we noticed that your asphalt yield crept up a little bit in the second quarter. Could you talk about asphalt dynamics in Q2 and what you've seen so far in the third quarter?

謝謝你，早安。在煉油方面，我們注意到你們的瀝青產量在第二季度略有上升。您能談談第二季度的瀝青動態以及第三季迄今為止您所看到的情況嗎？

Sure, Matt. I think our asphalt business is something that is a nice little extension of the value chain. So the extent that we can run heavier crudes, we have the facilities to go upgrade the product and get it into the retail paving grade markets.

當然，馬特。我認為我們的瀝青業務是價值鏈的一個很好的延伸。因此，只要我們能夠生產較重的原油，我們就有能力升級產品並將其打入零售鋪路級市場。

And the locations of those assets are really beneficial for us. We like to say we can take the components and we can pay it all year in the Southwest. We have a few elements where we've optimized rail. So our cost structure has come down a bit. We also have had some price improvement.

這些資產的位置對我們來說確實有利。我們想說我們可以拿走這些零件，並且我們可以在西南地區全年支付費用。我們優化了鐵路的一些元素。所以我們的成本結構有所下降。我們的價格也有所改善。

And so we continue to look at this business as a true extension of our heavy value -- heavy oil value chain. And it's something that we're going to continue to grow. I think the market gave us a little bit of help this quarter.

因此，我們繼續將這項業務視為我們重價值——重油價值鏈的真正延伸。我們將繼續發展這一點。我認為本季市場給了我們一點幫助。

But overall, we think we're operating right kind of in the mid of where the market will perform long term. Our approach is to continue to focus on optimization, logistics costs and growing our relationships with a lot of our customers there.

但總體而言，我們認為我們在市場長期表現的中期營運是正確的。我們的方法是繼續專注於優化、物流成本以及發展與那裡的許多客戶的關係。

Yeah. Thanks for that question. We don't get a lot of asphalt questions. But as you know, asphalt was one of our -- one of the big areas where we had synergy opportunities that we've been capturing associated with the Sinclair combination.

是的。謝謝你提出這個問題。我們沒有收到很多關於瀝青的問題。但如您所知，瀝青是我們的重要領域之一，我們一直在抓住與辛克萊組合相關的協同機會。

So we have a finished asphalt business that's legacy HollyFrontier. And with Sinclair's wholesale asphalt that they've been producing. We've really been able to combine those two businesses. Most of our feedstock is now internally produced as opposed to third party purchases. And that's really been allowing us to take full advantage of our asphalt business.

因此，我們擁有完整的瀝青業務，這是 HollyFrontier 的遺產。還有他們一直在生產的辛克萊批發瀝青。我們確實能夠將這兩項業務結合起來。我們的大部分原料現在都是內部生產的，而不是第三方購買。這確實讓我們能夠充分利用我們的瀝青業務。

Great. Thank you. And then on the El Dorado turnaround, I believe you said it was moved up from fourth quarter. Was that just due to market conditions or was there maintenance that you need to accelerate at the plant?

偉大的。謝謝。然後，關於埃爾多拉多的轉變，我相信你說它比第四季提前了。這僅僅是由於市場狀況還是您需要加快工廠的維護？

We just think the opportunity to pull it in a couple of weeks, really for optimization around workforce and scheduling. The market was favorable and just made a lot of sense from an efficiency perspective.

我們只是認為有機會在幾週內完成，這確實是為了優化勞動力和日程安排。市場是有利的，從效率的角度來看也很有意義。

Sounds good. Thank you.

聽起來不錯。謝謝。

Jason Gabelman, TD Cowen.

賈森·加貝爾曼，TD·考恩。

Morning. Thanks for taking my questions. I wanted to ask on the maintenance budget moving forward. It seems like there's been some benefit from the higher maintenance spend and kind of mid-cycle guidance for this year.

早晨。感謝您回答我的問題。我想詢問未來的維護預算。今年較高的維護支出和中期指導似乎帶來了一些好處。

Given that, do you expect that number will track lower in the future as your operations improve or do you need to spend at a higher level over the next couple of years to continue to get your operations in line with target?

有鑑於此，隨著您的營運改善，您是否預計該數字在未來會下降，或者您是否需要在未來幾年內增加支出以繼續使您的營運符合目標？

Yeah, so great question. As reliability improves, our costs will come down our maintenance. I think short term, what we're seeing is -- we're seeing some improvements, but I would say we're going to be flat in the near term as we continue to invest in our programs.

是的，很好的問題。隨著可靠性的提高，我們的維護成本將會下降。我認為短期來看，我們看到的是——我們看到了一些改進，但我想說，隨著我們繼續投資我們的項目，我們在短期內將持平。

So that money is coming out of the reactive side of the business and going into proactive programs and so as we shift those dollars to build our reliability, that's really going to keep us relatively flat on our maintenance spend.

因此，這些資金來自業務的被動部分，並進入主動計劃，因此當我們將這些資金用於建立可靠性時，這確實將使我們的維護支出保持相對穩定。

Jason, we updated our mid-cycle assumptions to show $7.25 as our near term target for OpEx per barrel. We've talked about long term we still believe we can get to [$6.50. And that's going to be through the additional work process flow improvements that Valerie mentioned earlier. But near term $7.25], we still think is the right number to be thinking about.

Jason，我們更新了中期假設，將 7.25 美元作為每桶營運支出的近期目標。我們已經討論了長期目標，但我們仍然相信我們可以達到 [6.50 美元。這將透過瓦萊麗之前提到的額外工作流程改進來實現。但從近期來看，我們仍然認為 7.25 美元是值得考慮的正確數字。

Got it. And then in terms of cash returns to investors, it seems like Sinclair is quickly approaching their target shareholding level. Once they get there, are you going to provide a more fulsome update on your distribution framework? Or should we just kind of assume when that ends you're going to the 50% payout ratio that you've previously provided?

知道了。然後就投資者的現金回報而言，辛克萊似乎正在迅速接近其目標持股水準。一旦他們到達那裡，您會提供有關您的分發框架的更豐富的更新嗎？或者我們應該假設當這一切結束時，您將獲得之前提供的 50% 的支付率？

Yeah. Thank you for your question. This is Atanas. Our commitment to shareholder returns remains unchanged, and we continue to be on pace to exceed our 50% payout ratio. To the extent that we continue to generate strong cash flows as we're seeing this -- some of these favorable margins returning, we'll be returning all of that cash back to our shareholders. So our commitment remains unchanged to meet and exceed our 50%.

是的。謝謝你的提問。這是阿塔納斯。我們對股東回報的承諾保持不變，我們繼續努力實現超過 50% 的派息率。如果我們繼續產生強勁的現金流，正如我們所看到的那樣——其中一些有利的利潤率正在回歸，我們將把所有現金返還給我們的股東。因此，我們的承諾保持不變，即達到並超過 50%。

This year, just for reference, we're on year to date basis, we're at 250% payout ratio. Last year we did 74%. So I think our history demonstrates that commitment.

今年，僅供參考，我們以年初至今計算，股利發放率為 250%。去年我們做到了 74%。所以我認為我們的歷史證明了這個承諾。

Thanks.

謝謝。

Joe Laetsch, Morgan Stanley.

喬‧萊奇，摩根士丹利。

Hi, good morning and thanks for taking my questions. So I wanted to start on the marketing side. I think the 10% store growth you spoke about in the prepared comments is above the 5% or greater growth target rate that you all have talked about in the past. Would you mind just talking to your outlook for that segment, please?

你好，早安，感謝您回答我的問題。所以我想從行銷方面開始。我認為您在準備好的評論中談到的 10% 商店增長高於您過去談到的 5% 或更高的增長目標。您介意談談您對該細分市場的展望嗎？

Yes, sure, Joe. Thanks for the question about marketing, we like to get those questions. This is something that we are pretty excited about the 150 sites coming online in the next 6 to 12 months is 10% growth year over year, which is above what we had previously guided against.

是的，當然，喬。感謝您提出有關行銷的問題，我們希望收到這些問題。令我們非常興奮的是，未來 6 到 12 個月內上線的 150 個網站將年增 10%，這超出了我們先前的預期。

But that, I think, reflects what we see is still yet an untapped opportunity for us. There's a lot of demand for DINO and a lot of hunting ground still in front of us. We think that putting branded locations in the brain to put in and around the regions where we have logistic advantages is a key focus area for us and some of the growth that you will see is fulfilling that permit.

但我認為，這反映了我們所看到的對我們來說仍然是一個尚未開發的機會。恐龍的需求很大，我們面前還有很多狩獵場。我們認為，將品牌地點放在我們擁有物流優勢的地區及其周邊地區是我們的一個重點關注領域，您將看到的一些成長正在滿足這項許可。

And we think this is just the beginning. We think that there is value in accretive to HF Sinclair by continuing to focus on this and grow this, and we're looking to do that in multiple ways. We're allocating resources to go to go make this a reality over the next several years.

我們認為這只是一個開始。我們認為，透過繼續關注這一點並發展它，對 HF Sinclair 的增值是有價值的，我們正在尋求以多種方式做到這一點。我們正在分配資源，以便在未來幾年內實現這一目標。

Thanks, it's helpful. And then now that the HEP transaction has been closed for a few months now, can you just talk to any opportunities you're seeing in terms of operational synergies on the commercial side?

謝謝，很有幫助。現在 HEP 交易已經結束幾個月了，您能談談您在商業方面的營運綜效方面看到的任何機會嗎？

Yeah. So I have midstream as well. Thank you for asking about that. It's another segment we're pretty strong and happy about. And we're pleased with the performance there. We've already seen some synergies that are obvious with a cost simplification around public company costs and retaining all the value for the segment as a rule for the buyer, and it's still early days yet.

是的。所以我也有中游。感謝您詢問此事。這是我們非常強大和高興的另一個部分。我們對那裡的表現感到滿意。我們已經看到了一些明顯的協同效應，即上市公司成本的成本簡化以及通常為買方保留該細分市場的所有價值，但現在還處於早期階段。

But we are seeing some opportunities across the value chain that previously have been more difficult to either identify and or execute effectively. And I'll just give one example, we have a very strong concentration in our Southwest, what we call the Southwest area in the Permian.

但我們在整個價值鏈中看到了一些以前更難以有效識別和/或執行的機會。我只舉一個例子，我們的西南部非常集中，我們稱之為二疊紀西南地區。

And we're already finding ways where we can go fully leveraged that and put more of the crude feedstock that we want on our logistics assets and move more of those molecules to the markets that we choose. And so we see that as just one of the examples. But there are other areas that we'll begin to peel back as we look to come up with common solutions to common problems against all of our operating platforms.

我們已經在尋找可以充分利用這一點的方法，將更多我們想要的原油原料放在我們的物流資產上，並將更多的這些分子轉移到我們選擇的市場。所以我們認為這只是例子之一。但是，當我們尋求針對所有操作平台的常見問題提出通用解決方案時，我們將開始剝離其他領域。

Joe, I'll just chime in too and say we had record volumes in the second quarter in our midstream business. And that is all playing out as we continue to optimize really our marketing, which you asked about earlier, our midstream business along with our refining business.

喬，我也插話說，我們的中游業務第二季的銷售量創下了紀錄。隨著我們繼續優化我們的行銷（您之前問過我們的中游業務和煉油業務），這一切都在發揮作用。

So we really consider that those three businesses, our core business that really have to work well together and integrate together. And then when we say we are focused on integration and optimization, that's really what we're trying to do is continue to grow the marketing and midstream businesses along with our refining business. So again, thanks for the question. It plays right into our strategy around our core businesses.

因此，我們確實認為這三項業務，即我們的核心業務，必須很好地協同工作並整合在一起。當我們說我們專注於整合和優化時，我們真正想做的是繼續發展行銷和中游業務以及煉油業務。再次感謝您的提問。它正好融入我們圍繞核心業務的策略。

Thank you.

謝謝。

There are no further questions at this time. I will now turn the conference back to Tim for closing remarks.

目前沒有其他問題。現在我將把會議轉回提姆致閉幕詞。

Thank you, Mark. So before we close, I wanted to welcome our new General Counsel, Eric Nitcher, to our leadership team. Eric brings us more than 35 years of legal experience in the oil and gas industry, including the last seven years serving as General Counsel for BP. I'm confident that Eric could be a strong contributor to our business going forward.

謝謝你，馬克。因此，在結束之前，我想歡迎我們的新總法律顧問 Eric Nitcher 加入我們的領導團隊。Eric 為我們帶來了超過 35 年的石油和天然氣行業法律經驗，其中包括過去七年擔任 BP 總法律顧問的經驗。我相信埃里克可以為我們的業務發展做出強有力的貢獻。

We are focused on executing our strategic initiatives and the improvements are evident in our second quarter results, higher utilization and throughputs, lower of cost per barrel, positive EBITDA on renewable diesel, strong earnings in lubricants and midstream. All of these are indicative of the hard work and commitment of our employees executing our plan.

我們專注於執行我們的策略舉措，第二季業績的改善顯而易見，利用率和吞吐量更高，每桶成本更低，可再生柴油的 EBITDA 為正，潤滑油和中游業務的強勁盈利。所有這些都表明了我們的員工為執行我們的計劃所做的辛勤工作和承諾。

Looking ahead, our priorities remain the same. One, improve our reliability, two, integrate and optimize our new portfolio of assets and three, return excess cash to our shareholders. Thank you for joining our call and have a great day.

展望未來，我們的優先事項保持不變。一是提高我們的可靠性，二是整合和優化我們的新資產組合，三是向股東返還多餘的現金。感謝您加入我們的通話，祝您有美好的一天。

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

今天的電話會議到此結束。請此時斷開線路，祝您有美好的一天。