HF Sinclair Corporation (DINO) 2026 Q2 法說會逐字稿

Welcome to HF Sinclair Corporation's second-quarter 2026 conference call and webcast. Hosting the call today is Franklin Myers, who is serving as Chief Executive Officer of HF Sinclair. He is joined by Steve Ledbetter, President and COO; David Garg, Acting Chief Financial Officer; Valerie Pompa, President, Growth, Technology and Transformation; and Matt Joyce, SVP of Lubricants and Specialties.

歡迎收聽 HF Sinclair Corporation 2026 年第二季電話法說會與網路直播。今日由 HF Sinclair 代理執行長 Franklin Myers 主持本次會議。與會者包括總裁兼營運長 Steve Ledbetter；代理財務長 David Garg；成長、科技與轉型事業總裁 Valerie Pompa；以及潤滑油與特種產品資深副總裁 Matt Joyce。

(Operator Instructions) 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.

(接線員指示) 請注意，本次會議將被錄音。現在我很榮幸將會議交給投資人關係副總裁 Craig Biery。Craig，請開始。

Thank you, Kelsey. Good morning, everyone, and welcome to HF Sinclair Corporation's second-quarter 2026 earnings call. This morning, we issued a press release announcing results for the quarter ending June 30, 2026. If you would like a copy of the earnings press release, you may find it on our website at hfsinclair.com. Before we proceed with remarks, please note the safe harbor disclosure statement in today's press release.

謝謝你，Kelsey。各位早安，歡迎參加 HF Sinclair Corporation 2026 年第二季財報電話會議。今天早上，我們已發布新聞稿，公布截至 2026 年 6 月 30 日止季度的業績。若您需要一份財報新聞稿，可至我們網站 hfsinclair.com 取得。在開始發言前，請留意今日新聞稿中的安全港聲明。

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 security 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 release for reconciliations to GAAP financial measures.

簡而言之，聲明中指出，凡涉及管理層之預期、判斷或預測的陳述均屬前瞻性陳述。此等陳述旨在受聯邦證券法之安全港條款保護。有許多因素可能導致實際結果與預期不同，包括我們向 SEC 提交文件中所述者。本次電話會議亦可能討論非 GAAP 指標。請參閱財報新聞稿，以取得與 GAAP 財務指標之調節表。

For any forward-looking non-GAAP measures, the company is unable to provide a reconciliation without unreasonable effort due to the unpredictability and uncertainty of certain items. 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.

就任何前瞻性的非 GAAP 指標而言，由於某些項目的不可預測性與不確定性，公司在不付出不合理努力的情況下無法提供調節。此外，請注意，今日電話會議中提供的任何具時效性的資訊，在網路重播或再次閱讀逐字稿時可能已不再準確。

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

接下來，我把電話交給 Franklin。

Okay. Thank you, Craig. Let me start by thanking the 5,000-plus employees at HF Sinclair for delivering a really good quarter. The teams at the plants and across our businesses did an excellent job of being safe, compliant and reliable throughout the quarter. As we know, our markets expect us to keep them supplied with the fuels and lubricants necessary to complete their own vital task of life and business and the DINO team performed well.

好的。謝謝你，Craig。首先我要感謝 HF Sinclair 超過 5,000 名員工，讓我們交出非常出色的一季。各廠區與各事業團隊在本季全程展現了優異的安全、合規與可靠表現。我們知道，市場期待我們持續供應其完成生活與商業各項關鍵任務所需的燃料與潤滑油，而 DINO 團隊表現得非常好。

We'll get to the numbers in a moment or two, but let me discuss a few other matters first. You're aware of the announcement earlier this month in which we provided information about adjustments to our senior leadership responsibilities. They were made in order to align certain responsibilities toward the direct long-term goals of the company. Steve Ledbetter was appointed our President and Chief Operating Officer. With this change, Steve will be responsible for overseeing the company's operations and commercial organizations while improving safety and reliability, enhancing cost efficiency and unlocking value across our integrated platform.

我們稍後一兩分鐘會談到數字，但先談幾件其他事項。各位應該已注意到本月稍早的公告，我們在其中說明了高階領導職責的調整。此調整旨在使部分職責更貼近公司直接的長期目標。Steve Ledbetter 已被任命為本公司總裁兼營運長。在此變更下，Steve 將負責監督公司營運與商業組織，同時提升安全與可靠度、強化成本效率，並在我們的整合平台上釋放價值。

We have made several internal promotions in both the commercial and operating teams to work with Steve as he leads these efforts to continue the excellent performance we've been experiencing. Val Pompa, who's done an excellent job leading and improving our operations for the last few years, will take on the responsibility of working on the growth and organic improvement of our operating assets.

我們已在商業與營運團隊內進行多項內部晉升，以協助 Steve 領導這些工作，延續我們近期的優異表現。Val Pompa 過去幾年在領導並改善我們營運方面表現卓越，接下來將負責推動營運資產的成長與內生成長（organic）改善。

She will have both information and operating technology as part of her mandate as well as applying new technologies to our existing operations in order to improve performance. We believe that there are technological improvements that can be brought to our assets that can advance the effectiveness of our performance in our plants and within our financial framework and commercial operations. Val is uniquely qualified -- is uniquely qualified seasoned technical executive.

她的職責範圍也將涵蓋資訊與營運科技，並把新技術應用於既有營運，以提升績效。我們相信，可將技術改善導入資產，進一步提升廠區表現、財務架構與商業營運的效能。Val 具備獨特資格——是一位資深且經驗豐富的技術主管。

She has both vast experiences and thorough understanding of refining processes as well as will be key in leading this effort. She will also have executive oversight of both the retirement of the Mississauga refining assets and the build-out of our Go-West initiative, both very important to the future of the company.

她不僅擁有豐富經驗，亦對煉油流程有深入理解，將在領導此項工作上扮演關鍵角色。她也將在高階層面監督密西沙加（Mississauga）煉製資產的退役，以及我們 Go-West 計畫的擴建，兩者對公司未來都非常重要。

We certainly know that we're first out among the refiners, so we'd be remiss in not making a comment on the macro environment for the refining complex. There's been much written probably by even some of those on this call -- of you on this call analyzing the changes in our market as a result of both the war in Ukraine and the Middle East. I'll not repeat what's been said. What we know is there's about 5 million to 7 million barrels of refining capacity offline from where we started five months ago. The conflicts continue with no clear resolution seemingly near on either.

我們也清楚自己是煉油商中最早公布的，因此若不評論煉油產業的總體環境就說不過去。關於烏克蘭戰爭與中東局勢對市場造成的變化，已有許多文章分析——可能也包括今天在電話上的一些各位。我就不重複。我們所知道的是，相較於五個月前的起點，目前約有 500 萬到 700 萬桶的煉油產能處於停擺狀態。兩地衝突仍在持續，且看來短期內都沒有明確的解決跡象。

And now we see witnessed the damage of other infrastructure assets, which would be necessary for the repairs to the damaged refining assets in order to restore their operability. We certainly have no crystal ball as to when the kinetic events and either conflict end, with certainty. Therefore, we expect to have tighter refining markets as well into 2027. There is a bit of a wildcard in the mix, however, China withdrew from buying crude and typical size at the beginning of the Mideast conflict. The reduced consumption has led to stabilized prices in crude and China has also suspended exporting products.

此外，我們也看到其他基礎設施資產受損；而這些資產對於修復受損的煉製資產、以恢復其可運作性而言是必要的。我們當然無法確定這些動態事件以及任一衝突何時結束。因此，我們預期煉油市場的緊俏狀態將延續至 2027 年。不過其中仍有一個變數：在中東衝突初期，中國退出了原油採購與常規規模的購買。需求下降使原油價格趨於穩定，而中國也暫停了成品出口。

If they reverse these decisions, products exported from China will certainly impact the products market. The canary in the coal mine to watch will be the Singapore crack spreads, they tend to react first with China increasing exports, otherwise, we see markets being constructive for the next several quarters, potentially into 2028. These events have some, if not more dire effects on the lube-based oil markets as much as 20% of the world's based oil supply for lubes being off-line, which brings me to our lubes business. It has been an important and meaningful contributor to the success of Sinclair. But today, we announced plans to pursue a separation of the segment through the capital markets, creating a new independent public company.

若他們逆轉這些決策，中國出口的產品勢必會影響成品市場。可觀察的「煤礦中的金絲雀」將是新加坡裂解價差（crack spreads）；當中國增加出口時，該指標往往最先反應。否則，我們認為未來幾季市場仍將偏向正面，可能延續至 2028 年。這些事件對潤滑油基礎油市場的影響同樣、甚至更為嚴重——全球潤滑油用基礎油供給多達 20% 處於停擺，這也帶到我們的潤滑油業務。該業務一直是 Sinclair 成功的重要且具意義的貢獻者。但今天，我們宣布計畫透過資本市場推動該事業部門的分拆，成立一家新的獨立上市公司。

We believe these two companies will benefit from enhanced strategic focus and operational agility, greater alignment of capital deployment within each specific growth priorities, increase ability to pursue strategic transactions independently without competing for resources within a broader portfolio, distinct and compelling investment profiles aligned with different investor bases and dedicated leadership teams and government structures with continued focus on driving performance.

我們相信，這兩家公司將因更聚焦的策略與更敏捷的營運而受益；在各自特定的成長優先事項下，資本配置將更一致；也能在不必於更廣泛的投資組合內競爭資源的情況下，獨立追求策略性交易；同時形成各自清晰且具吸引力、與不同投資人基礎相匹配的投資輪廓，並由專責的領導團隊與治理架構持續專注於推動績效。

We intend that the separation will be a tax efficient for HF Sinclair and our stockholders and will be executed over the next 12 to 18 months. Our announcement provides three important messages. First, that the base oil refining assets in Mississauga will be retired. The team there has done an excellent and outstanding job operating the assets throughout the years but a combination of location, size and scope of the assets have reached a point that their long-term economic contributions to the business causes us to make this very difficult decision to retire the assets.

我們的目標是使本次分拆對 HF Sinclair 及股東具備稅務效率，並將在未來 12 至 18 個月內完成。本次公告傳達三項重要訊息。第一，密西沙加的基礎油煉製資產將退役。該團隊多年來在資產營運上表現優異且卓越，但由於資產的地點、規模與範疇等因素綜合作用，其對業務的長期經濟貢獻已達到使我們必須做出這項極其艱難決定、將資產退役的程度。

Second, with the retirement, our finished product business will mean base oils to continue the successful efforts in their market. The business will continue to deliver base oil solutions through new strategic commercial agreements with two premier global base oil manufacturers, complemented by continued access to products from our Tulsa refinery.

第二，隨著退役，我們的成品業務將改以採購基礎油，持續在其市場中推進既有的成功成果。該業務將透過與兩家頂尖全球基礎油製造商簽訂新的策略性商業協議，持續提供基礎油解決方案，並搭配持續取得我們塔爾薩（Tulsa）煉油廠的產品。

Finally, as a potential separate organization under Matt Joyce's leadership, an independent business -- an independent lubes business will operate in a capital-light business model for greater financial flexibility and stronger, more consistent free cash flow while leveraging its core strength in technology globally recognized brands and extensive channels to market. We are early in the separation process, and we'll provide additional information as appropriate. Finally, it would be natural to ask about our company's plans for use of excess cash.

最後，作為在 Matt Joyce 領導下可能獨立運作的單位，一項獨立業務——獨立的潤滑油業務——將以輕資本（capital-light）的商業模式運作，以提升財務彈性並帶來更強且更穩定的自由現金流，同時運用其在技術、全球知名品牌以及廣泛市場通路方面的核心優勢。我們仍處於分拆流程的早期階段，並將在適當時機提供更多資訊。最後，外界自然會問到本公司對於運用多餘現金的規劃。

We are mindful of our past indications for delivering a portion of free cash back to our stockholders, and we'll endeavor to continue to do so. We also have efforts going on where we see opportunities to enhance our existing assets. In other words, we already have things in progress. We will be discussing this with our Board in our upcoming Board meeting. As the Board reaches decisions and the actions become actionable, we'll continue to share that information with our ownership community.

我們謹記過去曾表示會將部分自由現金回饋給股東，並將努力持續如此。我們也正在推動一些工作，並看到可提升既有資產價值的機會。換言之，我們已有事項在進行中。我們將在即將召開的董事會會議中與董事會討論此事。待董事會作出決定且相關行動具備可執行性後，我們將持續與股東社群分享資訊。

Let me -- I'm going to go off script here, let's face it. Last fall, when all the refining complex were putting their plans together, we had no clue that a war was going to go on the Middle East. We've got excess capital now and we've got to be prudent and diligent in looking at how we spend this excess capital. Nobody had a plan for what we're looking at right now, and we've got to make sure that we look at it. Our organizational changes and putting Val over the growth initiatives is exactly that.

我——我這裡要先不照稿講了，坦白說。去年秋天，當所有煉油綜合體都在制定計畫時，我們完全不知道中東會爆發戰爭。我們現在有多餘資本，必須在如何運用這些多餘資本上保持審慎與勤勉。沒有人曾為我們目前所面對的情況做過規劃，而我們必須確保我們確實審視它。我們的組織調整，以及讓 Val 負責成長計畫，正是基於這個原因。

We're going to look at the specifics within our organization and see where we can add value to the future, and she's got that skill set and knowledge to be able to lead the team to do that while Steve runs the day-to-day operations. That's the fundamental drivers behind our changes there.

我們將檢視組織內的具體事項，看看在哪些方面能為未來創造價值；她具備相應的技能與知識，能在 Steve 負責日常營運的同時，帶領團隊完成這些工作。這就是我們在此所做變動背後的根本驅動因素。

I'll now turn it over to Steve for additional comments.

接下來我把時間交給 Steve 補充說明。

Thank you, Franklin. Thank you all for joining our call. I'll now cover our business highlights. During the second quarter, we delivered strong financial results across each of our business segments, underpinned by solid operational and commercial execution. In Refining, our crude oil charge averaged approximately 640,000 barrels per day which exceeded our guidance range and reflects our progress towards improving operational excellence and optimization across our business.

謝謝你，Franklin。也謝謝各位加入我們的電話會議。接下來我將說明我們的業務重點。第二季，我們在各業務部門均交出強勁的財務成果，這主要得益於穩健的營運與商業執行。在煉油業務方面，我們的原油加工量平均約為每日 64 萬桶，超出我們的指引區間，並反映出我們在提升營運卓越與全業務最佳化方面的進展。

This enabled us to take advantage of the favorable market conditions as we operated well. We have a planned turnaround scheduled at El Dorado, which commences in September. In our Marketing segment, we added 63 branded sites in the second quarter with more than 100 sites in the branding pipeline that are expected to come online over the next 6 to 12 months. We are pleased with our progress here as we continue to see year-over-year volume increases in our branded channel. We still expect to grow the number of branded sites by approximately 10% annually.

這使我們在營運表現良好的情況下，得以把握有利的市場環境。我們已規劃 El Dorado 的歲修（turnaround），將於 9 月開始。在行銷（Marketing）部門，我們於第二季新增 63 個品牌站點，且品牌化管線中仍有超過 100 個站點，預計在未來 6 至 12 個月內陸續上線。我們對此進展感到滿意，因為我們持續看到品牌通路的銷量年增。我們仍預期品牌站點數量每年約成長 10%。

In our Renewables segment, we reported another quarter of strong financial performance with $123 million in adjusted EBITDA, supported by favorable market conditions and disciplined execution of our business strategy. We believe the macroeconomic backdrop will remain favorable throughout the year and are encouraged with the recent performance of this business. We have a planned turnaround schedule to begin in the third quarter at our Cheyenne facility.

在再生能源（Renewables）部門，我們再度繳出一季強勁的財務表現，調整後 EBITDA 為 1.23 億美元，受惠於有利的市場環境以及對業務策略的紀律性執行。我們認為整體宏觀環境在全年將維持有利，並對該業務近期表現感到鼓舞。我們已規劃在第三季於 Cheyenne 設施開始歲修。

From a strategic perspective, we continue to progress the evaluation and development of our multiphase initiative designed to leverage our strong logistics network and production advantage in the Rockies region to support increasing demand across Western markets. We expect that the first phase would increase capacity by approximately 35,000 barrels per day to move supply from Rockies production into Nevada and is targeted to be online in 2029.

從策略角度來看，我們持續推進對多階段（multiphase）計畫的評估與開發，該計畫旨在運用我們在落磯山脈地區強大的物流網路與生產優勢，以支援西部市場日益增加的需求。我們預期第一階段將把產能提高約每日 3.5 萬桶，用於將落磯山脈的產量供應移往內華達州，目標於 2029 年上線。

We are also moving forward with the El Dorado vacuum furnace project, which is expected to enhance operational reliability and improve product yields while enabling processing of up to an additional 10,000 barrels per day of heavy crude within our feedstock slate. The project remains on track for completion during the fall turnaround. We are also encouraged by the integration and early performance of our Green Trail Fuels JV in Marketing, and we continue to believe this will be an accretive addition and accelerate of our brand position.

我們也正推進 El Dorado 真空爐（vacuum furnace）專案，預期可提升營運可靠性並改善產品收率，同時使我們在原料組合中可額外處理最多每日 1 萬桶的重質原油。該專案仍按計畫在秋季歲修期間完成。我們也對行銷部門的 Green Trail Fuels 合資企業（JV）整合與早期表現感到鼓舞，並持續相信這將帶來增益（accretive）的貢獻，並加速我們的品牌地位。

Further, we are evaluating several technology investments to advance the competitiveness of our business. We continue to see opportunities for future investment across our portfolio. And as we evaluate these opportunities, we're okay with carrying excess cash on our balance sheet while final investment decisions are made.

此外，我們正在評估數項技術投資，以提升本公司業務的競爭力。我們持續在整體投資組合中看到未來投資機會。在評估這些機會的同時，在最終投資決策作出之前，我們也可以接受在資產負債表上持有較多現金。

During the quarter, we returned $265 million in cash to shareholders, consisting of $89 million in regular dividends and $179 million in share repurchases. Since the Sinclair acquisition in March 2022, we returned approximately $5.2 billion in cash to shareholders and have recorded -- reduced our share count by over 68 million shares. Today, we also announced that our Board of Directors declared a regular quarterly dividend of $0.525 per share, an increase of 5% over our previous dividend of $0.50 per share.

本季我們向股東返還 2.65 億美元現金，其中包括 8,900 萬美元的例行股利以及 1.79 億美元的庫藏股回購。自 2022 年 3 月完成 Sinclair 收購以來，我們已向股東返還約 52 億美元現金，並已——將流通股數減少超過 6,800 萬股。今天我們也宣布，董事會宣告每股 0.525 美元的例行季度股利，較先前每股 0.50 美元的股利提高 5%。

As we look ahead, our strategy remains focused on enhancing safety, reliability and efficiency across all of our business segments, while unlocking more from our integrated value chain, including growing our Marketing and Midstream segments. With Refining fundamentals expected to remain supportive through the fall, we are confident that our diversified asset base will continue to generate strong cash flows.

展望未來，我們的策略仍聚焦於在所有業務部門提升安全、可靠性與效率，同時從我們整合的價值鏈中釋放更多價值，包括擴大行銷與中游（Midstream）部門。在煉油基本面預期於秋季前仍具支撐的情況下，我們有信心多元化的資產基礎將持續產生強勁現金流。

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

接下來，我把電話會議交給 Vivek。

Thank you, Steve, and good morning, everyone. Let's begin by reviewing HF Sinclair's financial highlights. Today, we reported second quarter net income attributable to HF Sinclair shareholders of $892 million or $4.93 per diluted share. These results reflect special items that collectively decreased net income by $68 million. Excluding these items, adjusted net income for the second quarter was $960 million or $5.31 per diluted share, compared to the adjusted net income of $322 million or $1.70 per diluted share for the same period in 2025. Adjusted EBITDA for the second quarter was $1.5 billion compared to $665 million in the second quarter of 2025.

謝謝你，Steve，各位早安。我們先回顧 HF Sinclair 的財務重點。今天我們公布，第二季歸屬於 HF Sinclair 股東的淨利為 8.92 億美元，或稀釋後每股 4.93 美元。這些結果反映了特殊項目（special items），合計使淨利減少 6,800 萬美元。排除這些項目後，第二季調整後淨利為 9.60 億美元，或稀釋後每股 5.31 美元；相較之下，2025 年同期調整後淨利為 3.22 億美元，或稀釋後每股 1.70 美元。第二季調整後 EBITDA 為 15 億美元，較 2025 年第二季的 6.65 億美元增加。

In our Refining segment, second quarter adjusted EBITDA was $1 billion compared to $476 million in the second quarter of 2025. This increase was principally driven by strong Refining margins and volumes in the Mid-Con and West regions as a result of steady demand, tight supply and favorable crack spreads. Crude oil charge averaged 640,000 barrels per day for the second quarter compared to 616,000 barrels per day for the second quarter of 2025. Our Marketing segment reported EBITDA of $28 million for the second quarter compared to $25 million for the second quarter of 2025.

在煉油部門，第二季調整後 EBITDA 為 10 億美元，較 2025 年第二季的 4.76 億美元增加。此增幅主要由 Mid-Con 與西部地區強勁的煉油利差與銷量所帶動，原因在於需求穩健、供給吃緊以及有利的裂解價差（crack spreads）。第二季原油加工量平均為每日 64 萬桶，較 2025 年第二季的每日 61.6 萬桶增加。行銷部門第二季 EBITDA 為 2,800 萬美元，較 2025 年第二季的 2,500 萬美元增加。

Total branded fuel sales volumes were 387 million gallons for the second quarter of 2026 compared to 337 million gallons for the second quarter of 2025. Our Midstream segment reported adjusted EBITDA of $112 million, both in the second quarter of 2026 and the same period of last year.

第二季品牌燃料總銷售量為 3.87 億加侖，較 2025 年第二季的 3.37 億加侖增加。中游部門第二季調整後 EBITDA 為 1.12 億美元，與 2026 年第二季及去年同期相同。

In our Renewables segment, excluding the lower of cost or market inventory valuation adjustment charge of $30 million and asset impairment of $47 million we reported adjusted EBITDA of $123 million for the second quarter compared to a loss of $2 million for the second quarter of 2025. This increase was principally driven by increased RINs price, higher producers tax credit benefits, and increased volumes compared to the second quarter of 2025. Total sales volumes were 60 million gallons for the second quarter of 2026, as compared to 55 million gallons for the second quarter of 2025.

在我們的再生能源事業部門中，扣除我們認列的3,000萬美元「成本與市價孰低」存貨評價調整費用以及4,700萬美元資產減損後，第二季調整後EBITDA為1.23億美元，相較於2025年第二季虧損200萬美元。此一增加主要係受RINs價格上升、生產者稅額抵減利益提高，以及相較於2025年第二季出貨量增加所帶動。2026年第二季總銷售量為6,000萬加侖，較2025年第二季的5,500萬加侖增加。

Our Lubricants and Specialties segment reported adjusted EBITDA of $207 million for the second quarter compared to $55 million for the second quarter of 2025. The increase was primarily driven by higher sales volumes and product prices in the second quarter of 2026 compared to the second quarter of 2025. During the second quarter of 2026, we recognized a FIFO benefit of $46 million compared to a FIFO charge of $20 million in the second quarter of 2025.

我們的潤滑油與特用產品事業部門第二季調整後EBITDA為2.07億美元，相較於2025年第二季為5,500萬美元。增加主要係2026年第二季相較於2025年第二季銷售量與產品價格較高所致。2026年第二季，我們認列4,600萬美元的FIFO利益，相較於2025年第二季認列2,000萬美元的FIFO費用。

Net cash provided by operations totaled $1.5 billion in the second quarter, which includes $56 million of turnaround spend. HF Sinclair's capital expenditures totaled $118 million for the second quarter. As of June 30, 2026, HF Sinclair's total liquidity stood at approximately $4.26 billion, which includes a cash balance of approximately $2.26 billion and our undrawn $2 billion unsecured credit facility. As of June 30, 2026, we had $2.8 billion debt outstanding with a debt-to-cap ratio of 21% and net debt to cap ratio of 4%. Let's go through some guidance items.

第二季營運活動提供之淨現金合計15億美元，其中包含5,600萬美元的歲修支出。HF Sinclair第二季資本支出合計1.18億美元。截至2026年6月30日，HF Sinclair的總流動性約為42.6億美元，其中包含約22.6億美元的現金餘額以及我們尚未動用的20億美元無擔保循環信用額度。截至2026年6月30日，我們未償還債務為28億美元，負債／資本比率為21%，淨負債／資本比率為4%。我們來看幾項指引。

With respect to capital spending for full year 2026, there is no change to our capital guidance at this time, but it is subject to change as we continue to progress certain projects under evaluation. For the third quarter of 2026, we expect to run between 590,000 to 620,000 barrels of crude oil in our Refining segment, which reflects the planned turnaround at El Dorado in the period.

就2026年全年資本支出而言，目前我們的資本支出指引沒有變動，但隨著我們持續推進若干評估中的專案，仍可能有所調整。就2026年第三季而言，我們預期在煉油事業部門的原油加工量介於每日59萬至62萬桶之間，反映該期間El Dorado廠的計畫性歲修。

We are now ready to take questions from the audience. Operator?

我們現在準備回答聽眾的提問。接線員？

(Operator Instructions)

(接線員指示)

Manav Gupta, UBS.

UBS的Manav Gupta。

Good morning. Congrats on a very strong beat. My first question is a little bit on the Refining macro. Even the last time in Russia-Ukraine conflict started, diesel was moving up, but gasoline wasn't really participating to these levels. This time, we are seeing a very strong gasoline rack out there. And I'm just trying to understand from the perspective of HF Sinclair, how this benefits the company? And if you could specifically talk about the two -- your two regions, Mid-Con and West, what you are seeing in terms of gasoline margins as well as diesel.

早安。恭喜你們大幅優於預期。我的第一個問題是關於煉油的總體環境。即使上次俄烏衝突剛開始時，柴油在上漲，但汽油並沒有以這樣的幅度參與上行。這一次，我們看到汽油現貨價差（rack）非常強。我想從HF Sinclair的角度了解，這對公司有何助益？並且若可以的話，請特別談談你們兩個區域——中部大陸（Mid-Con）與西部——在汽油與柴油利差方面的觀察。

Thanks, Manav. This is Steve. Yeah, it's mainly been a distillate story from a global geopolitical scenario, both in the Middle East, heavy distillate producers and now Russia that used to export quite a bit in distillate and now is even importing some, but yes, the overall flows in terms of gasoline have been tight, and there's some export capability that's happening out of both regions in the Gulf and the West Coast -- or to the West Coast from the Gulf.

謝謝你，Manav。我是Steve。是的，從全球地緣政治情勢來看，主要仍是餾分油的故事：中東（屬於重餾分油生產地）以及現在的俄羅斯——過去俄羅斯出口相當多的餾分油，現在甚至還進口一些。不過沒錯，就汽油而言，整體流向一直偏緊，而墨西哥灣沿岸與西岸兩個區域都具備一定的出口能力——或是從墨西哥灣沿岸運往西岸。

In the overall market environment on cracks, we're seeing tighter cracks, particularly in the Mid-Con and gas as you see more things move south. And so less barrels are getting up into the Mid-Con, and so that structure is tightening up. But we've seen in the quarter, the demand picture look relatively healthy for not only the US but our regions. And I think our regions have felt -- fared a little bit better both in gas and diesel, in both regions.

就整體市場的裂解價差（cracks）環境而言，我們看到價差更為收斂、偏緊，尤其是在中部大陸地區；隨著更多產品往南移動，汽油也呈現同樣情況。因此，進入中部大陸的桶數減少，使得該區結構更為吃緊。但在本季，我們看到需求面相對健康，不僅是美國整體，我們所在的區域亦然。我認為我們的區域在汽油與柴油兩方面、在兩個區域的表現都稍微更好一些。

Now in the West, we have a little bit of softness in diesel, but we think that, that is factored into more of the bio and RD coming online with the incentive structure that has been generated there. But overall, our markets look pretty strong, and we think that the tightness is furthering -- is further because our inventories on a US and a regional basis have been below the five-year average.

至於西部，我們看到柴油略有疲弱，但我們認為這更多反映了生質燃料與再生柴油（RD）在當地激勵機制帶動下陸續投產上線。但整體而言，我們的市場看起來相當強勁；我們也認為緊俏程度之所以加劇，是因為無論以全美或區域來看，我們的庫存都低於五年平均。

So as Franklin mentioned earlier, we see that global -- it starts from a global perspective, and stocks are very low and it's going to take a while to replenish those. And that just comes back into the US market with the overall market structure and the export values are attributing to lower supply that is in the market. And naturally, that creates a tighter structure with supportive crack environment.

因此，如Franklin先前提到的，我們從全球角度來看——庫存水位非常低，補回這些庫存需要一段時間。而這也會回到美國市場：整體市場結構與出口價值使得市場可供量下降。自然地，這會形成更緊的結構，並支撐裂解價差環境。

Perfect. My second question is more for Frank. So I'm just trying to understand, A, the timing on the lubes, why now, some of the key benefits, if you could reiterate. And one of the questions we are understanding is when something like this happens, you need the buy-in of the senior management. Is there a buy-in from the senior management in terms of are you still looking for an external CEO. And if you could help us understand how those dynamics are playing out because something as big as this would definitely the buy-in of the incoming CEO and CFO.

了解。我的第二個問題主要是問Frank。我想了解：第一，為什麼是現在進行潤滑油業務？時點如何？以及若可以的話，請再重申幾項主要效益。另外我們也在理解的是，當這類事情發生時，需要高階管理層的支持。高階管理層是否支持？例如你們是否仍在尋找外部CEO？也請協助我們理解這些動態如何發展，因為像這麼重大的事項，肯定需要即將上任的CEO與CFO的支持。

We've never indicated we were looking for an external CEO. So I dissuaded you of thinking about that. Secondly, senior management on both sides are very bought into this. And remember, I guess if you think about it, the Board owns the business and all we're doing is separating it so that they can both flourish. We have a good senior team at the lubes business that under Matt's leadership, and that will develop and build out as we get closer to the time of whatever transaction we decide to go with because there's a lot of work to be done in signing what's best for our stockholders.

我們從未表示我們在尋找外部CEO。所以我先打消你這個想法。第二，雙方的高階管理層都非常支持這件事。而且請記得，若你這樣想：董事會擁有這項業務，而我們所做的只是把它分拆，讓兩邊都能各自茁壯。在Matt的領導下，我們在潤滑油業務有一個很好的高階團隊；隨著我們更接近決定採取何種交易的時間點，團隊也會持續發展與擴充，因為要完成大量工作，才能簽定對股東最有利的方案。

But we're not losing something. We're just splitting it among the stockholders to where value is being created and let them run independently. But the team has aligned in this. The Board is aligned in this, and we see this as the best direction for the lubes business.

但我們並不是失去什麼。我們只是把它分拆給股東，讓價值被創造，並讓它們能夠獨立運作。但團隊在這件事上已經一致。董事會也一致。

Thank you and congrats, Steve again on being promoted to the CEO, Congratulations.

謝謝，也再次恭喜Steve升任CEO，恭喜。

COO.

營運長（COO）。

Matthew Blair, TPH.

TPH的Matthew Blair。

Great. Thank you and good morning and congrats on the lubricant spin. Do you have an estimate of what mid-cycle EBITDA for lubricants would look like going forward? And what kind of leverage could a stand-alone lubricants business support? And then also, is there any estimate yet on potential dyssynergies from spinning out lubes?

很好。謝謝，早安，也恭喜你們分拆潤滑油業務。你們是否能估計未來潤滑油業務在中期景氣循環下的EBITDA大概會是什麼水準？以及一家獨立的潤滑油公司可以支撐多高的槓桿？另外，對於分拆潤滑油可能帶來的「負協同效應」（dyssynergies），目前是否已有任何估計？

I'll turn over some of the synergy to Vivek in a second. Yes, there's always -- whenever you stand up a public company, there's always some public cost that we will be identified a separate company audits, some additional fees that adjusted with that, but they're usually more than offset by having kind of the spotlight on the business. Let's take a step back. The Refining business dominates our franchise as it currently exists. And because of the volatility of the franchise that we have, that all refining assets have, all our franchises have, you tend to have a discounted value on multiples of EBITDA.

我先把部分協同效應的問題稍後交給Vivek。是的，只要成立一家上市公司，總會有一些上市公司成本；我們將被識別為一家獨立公司，需要審計、一些額外費用等，調整後會反映這些，但通常會因為業務獲得更聚焦的關注而被大幅抵銷。我們先退一步看。就目前而言，煉油業務主導了我們的事業版圖。而由於我們所擁有的事業組合具有波動性——所有煉油資產、所有事業組合皆然——因此在以EBITDA倍數評價時，往往會出現折價。

The lubes is a more stabilized business and it's in different markets than the Refining assets. And typically, they would run the lubricants business with a higher multiple. And so we would expect a step up in value as we take it out the door.

潤滑油業務是較為穩定的業務，而且所處市場與煉油資產不同。而且通常市場會以較高的倍數來評價潤滑油業務。因此，隨著我們將其分拆出去，我們預期其價值會有所提升。

In terms of gearing, we haven't reached that point. We're not going to overlever this thing going out. We want to make sure it has the flexibility and look at our own balance sheet, we're not what I would call an overlevered company. And so we were not going to treat them any different than we would be treating ourselves. In terms of estimates of Vivek, I don't know what guidance we have in there, if any?

就槓桿水準而言，我們還沒到那個階段。我們不會在分拆時把這件事做得過度舉債。我們要確保它具備彈性，同時也會看我們自己的資產負債表；我們不是我所稱的高槓桿公司。因此，我們不會用不同於對待自己的方式來對待他們。至於 Vivek 的估計數字，我不確定我們在裡面是否有任何指引？

I think that's right, Franklin. There will be additional costs associated with separating lubricants and specialties as an independent public company. We're kind of early in the separation planning process and will provide estimated costs as time progresses.

我想你說得對，Franklin。將潤滑油與特種產品分拆為一家獨立上市公司，會產生額外成本。我們目前仍處於分拆規劃的早期階段，會隨著時間推進提供成本估計。

And if I can just jump in, Matt, one of the things that -- this is Matt Joyce. We've typically looked at trailing 12 months as our rough guesstimate and guidance for $300 million to $350 million on an EBITDA basis. We're looking to execute that business in a way that we can continue to deliver various types of performance results on a go-forward basis, but with a capital-light structure in mind.

如果我可以補充一下，Matt——我是 Matt Joyce。我們通常以過去 12 個月的數據作為粗略估算，並以 EBITDA 口徑給出 3 億到 3.5 億美元的指引。我們希望以一種能在未來持續交付各類績效成果的方式來經營該業務，同時以輕資本結構為前提。

Okay. And my follow-up was on this capitalized structure. So I guess, could you talk a little bit about the impacts of shutting the Mississauga base oil refinery, in the slides that mentions that would reduce volatility, also reduce your working capital needs. Maybe you could expand on that a little bit. What kind of EBITDA impact would you expect in shutting these assets? And does this take you on vertical integration, does this take you to essentially 100%, because I believe previously, it was roughly closer to two-thirds or so. Thank you.

好的。我追問的是這個資本結構。所以我想，你們能否談談關閉密西沙加（Mississauga）基礎油煉廠的影響？投影片提到這會降低波動性，也會降低你們的營運資金需求。也許你們可以再多展開說明一下。關閉這些資產，你們預期對 EBITDA 會有什麼影響？另外，這對垂直整合的程度有何影響？是否會讓你們基本上達到 100%？因為我記得先前大約接近三分之二左右。謝謝。

Sure. So this is Matt Joyce. The way that we're looking at it is we've gone out and sourced a competitive offer from these global premier base oil manufacturers for both our own internal supply, but as well as distribution agreements, where we are going to represent their oils in the market so that we will have and continue to have that full suite of products with our continued production out of Tulsa for our Group 1s and our specialties. And then we'll also have Group 2 and Group 3 to offer to the marketplace on a third-party basis, but -- as a distribution partner -- partnership. We'll then use those same sources for our own internal consumption.

當然。我是 Matt Joyce。我們的看法是：我們已向全球一流的基礎油製造商取得具競爭力的報價，既用於我們自身的內部供應，也包含經銷協議——我們將在市場上代理他們的油品，這樣一來，配合我們在塔爾薩（Tulsa）持續生產的第一類（Group 1）基礎油與特種產品，我們就能擁有並持續提供完整的產品組合。此外，我們也將以第三方方式向市場提供第二類（Group 2）與第三類（Group 3）基礎油——但會以經銷夥伴的合作模式來進行。然後，我們也會使用同樣的來源來滿足我們自身的內部消耗。

So as such, we expect that the L&S business on a go-forward basis is really going to lean into a free cash flow improvement on the financial profile. And what I can say today is that exiting the base oil production is also expected to materially lower our capital intensity as well as net working capital. So we can continue to provide you updates as and when the process progresses. But suffice it to say, we're pretty comfortable with where the financial position of the business on a go-forward basis is going to be.

因此，我們預期潤滑油與特種產品（L&S）業務在未來將更著重於改善財務輪廓中的自由現金流。我今天可以說的是，退出基礎油生產也預期將大幅降低我們的資本密集度以及淨營運資金。隨著流程推進，我們會在適當時點持續向各位更新。但總之，我們對該業務未來的財務狀況相當有信心。

Thank you.

謝謝。

Neil Mehta, Goldman Sachs.

Neil Mehta，高盛。

Yeah. Congrats a strong quarter. All the updates and, of course, some of the promotions here. Two more day-to-day questions here, the Go-West pipeline initiative that you guys were talking about, is an important part of building out the Midstream effort, but I think you've also alluded to important part of cleaning up PADD 4 and potentially even into PADD 5 balances. So can you just talk about where you stand on that initiative? And what do you think the economic implications are not just for the Midstream business, but also for your Refining segment?

是的。恭喜本季表現強勁。所有更新，當然還有這裡的一些升遷消息。我有兩個更偏日常營運的問題：你們提到的 Go-West 管線計畫，是打造中游（Midstream）布局的重要一環，但我想你們也暗示它對於改善 PADD 4，甚至可能延伸到 PADD 5 的供需平衡也很重要。所以能否談談這個計畫目前進展到哪裡？以及你認為其經濟影響不僅對中游業務，對你們的煉油（Refining）部門又是如何？

Neil , this is Steve. Let me talk a little bit on Go-West. It is a very strategic project for us that we announced several quarters ago. The project continues to advance in terms of determining the right economic balance and the execution capability. We're still advancing towards taking FID on Phase 1 this year.

Neil，我是 Steve。我先談一下 Go-West。這是我們在幾個季度前宣布的一個非常具策略性的專案。該專案在確定合適的經濟平衡與執行能力方面持續推進。我們仍在推進，目標是在今年就第一期做出最終投資決策（FID）。

But ultimately, we do see that -- the reason we're doing this is the tightness in PADD 5 that's continuing to get short, and we have advantages logistically in terms of production in the Rockies and our integrated Midstream assets where we can unlock more of that and supply the needed fuels that are growing in terms of an imbalance out of PADD 5.

但最終，我們確實看到——我們之所以要做這件事，是因為 PADD 5 的供應緊張狀況持續加劇、缺口擴大；而我們在落磯山脈地區的產量以及整合式中游資產在物流上具備優勢，能夠釋放更多供應，去滿足 PADD 5 供需失衡下不斷成長的燃料需求。

We think that this is just Phase 1, as we talked about, it's a multiphase approach that we'll continue to evaluate as we get past this initial phase, which brings up to approximately 35,000 less than in Nevada. Longer term, we think we can hit larger markets out in the West, including California. But we're not guiding on economics at this point. When we get into the phase of taking FID that the Board will opine on will come to the market with guidance and estimates at that point.

我們認為這只是第一期；如同我們所說，這是一個多期的做法，我們會在完成這個初始階段後，持續評估後續階段；第一期將把供應帶到內華達州約 35,000（桶/日）。長期來看，我們認為可以觸及西部更大的市場，包括加州。但目前我們不提供經濟性方面的指引。當我們進入要做出 FID 的階段、董事會也將提出意見時，我們會在那個時點向市場提供指引與估算。

All right. Thanks, Steven. And then just the return of capital can be enormous at current margin environment even in the forward curve. And so of course, can you comment on just the capacity for share buybacks the willingness to lean into repurchases even though the stock has done exceptionally well in the last year. And then on slide 5, you talk about opportunistic M&A. So maybe, Franklin, you could talk about how that fits into your thinking here because -- what gaps, if any, are you trying to solve for? And what segments should we think about M&A being appropriate to look at?

好的。謝謝，Steven。接著，在目前的利差環境下，即使看遠期曲線，資本回饋的規模也可能非常可觀。所以當然，你能否評論一下股份回購的能力，以及即便股價在過去一年表現非常出色，你們是否仍願意加大回購力度？另外在投影片 5，你們提到機會型併購（opportunistic M&A）。所以也許 Franklin，你可以談談這在你們的思考中如何定位，因為——你們想補足哪些缺口（如果有的話）？以及我們應該把哪些事業部門視為適合評估併購的方向？

Yeah. Let's take them in order. Number one, we have implied and indicated and actually acted on about a 50% distribution of capital back to our stockholders, since spring of '22. Steve mentioned, that's $5.2 billion in a franchise that's currently valued at about $15 billion or $16 billion. So we've been dedicated to that. We will continue that emphasis as we go forward.

是的。我們按順序來回答。第一，自 2022 年春季以來，我們已經暗示、表明，並且實際行動上，將大約 50% 的資本回饋給股東。Steve 提到，這相當於 52 億美元，而我們這個平台目前估值約 150 億或 160 億美元。因此我們一直致力於此。未來我們也會持續強調這一點。

Secondly, all my comments with respect to management and how the leadership shifting around, a lot of refining assets across the country, not just ours, but across the country, to some degree, have been a little underinvested in technology, and we're going to look at that real hard to make sure we have some of the technological advances to make sure we stay if you've heard our mantra site compliant reliable, make sure we are standing up when others might have problems that we're the ones that folks can count on.

第二，關於我對管理層以及領導團隊調整的所有評論：全國各地的許多煉油資產——不只是我們的，而是全國範圍——在某種程度上在技術投資上有些不足；我們會非常認真地檢視這點，確保我們具備一些技術上的進步，以確保我們能維持——如果你們聽過我們的口號：安全、合規、可靠——確保當其他人可能出問題時，我們能站得住腳，成為大家可以依靠的那一家。

In terms of M&A, I wouldn't go broad with this. We're not going to go on a shopping spree or anything. I don't read anything to that. But Marketing has a lot of opportunities where they can do some things. Midstream has what I'll call tuck-in opportunities within fields to where pipes can be laid as opposed to putting them in trucks. We're going to look at a lot of that because even crawfish sometimes be up just as much as even a big stake.

至於併購（M&A），我不會把它講得很廣。我們不會去大採購、到處掃貨之類的。我不會那樣解讀。但行銷（Marketing）端有很多機會可以做一些事情。中游（Midstream）方面也有所謂的補強型（tuck-in）機會，在油田內部可以鋪設管線，而不是用卡車運輸。我們會看很多這類機會，因為有時候小龍蝦的價值也可能跟一大塊牛排一樣高。

And so it's going to be smaller things where we're going to put money to work, and I think you'll see the benefits because of the paybacks on those things, the returns are in that mid-20%s, and you can't do that on big deals. You got to do it. It's work, but it's -- but you can get it done.

因此，將會是一些較小的項目，我們會把資金投入其中，我想你們會看到其效益，因為這些項目的回收期所帶來的報酬率大約在20%中段，而大型交易做不到這樣。你必須去做。這需要投入，但——但你可以把它完成。

Joe Laetsch, Morgan Stanley.

Joe Laetsch，摩根士丹利。

Great. Good morning, team and thanks for taking my questions and congrats to Steve and Val on your new roles. So I wanted to follow up on the lubricant separation. Could you just talk about the thought process between a capital market separation and an outright sale?

很好。各位早安，感謝讓我提問，也恭喜Steve和Val擔任新職務。我想追問一下潤滑油業務的分拆。能否談談在資本市場分拆與直接出售之間，你們的思考過程是什麼？

Sure. That's easy. You're doing the same thing, but you're giving up value if you go to a sale process. Somebody is trying to either over-lever or maximize something for their own benefit, and we're taking that benefit to our own stockholders. And so -- and then you add on the effect that it's doing a sale with -- means that United States government probably ends up with, I don't know, $200 million to $400 million of tax payments that gets no value to any of our stockholders.

當然。這很簡單。你做的是同一件事，但如果走出售流程，你會放棄價值。有人會試圖為了自身利益去過度加槓桿或把某些東西的價值最大化，而我們要把那份利益留給我們自己的股東。因此——而且再加上，如果是出售——就意味著美國政府很可能最後會拿到，我不知道，大約2億到4億美元的稅款，但這對我們任何股東都沒有價值。

So we save that by doing a tax-efficient transaction, and we basically capture the gains that a third party may want to have. Now could a strategic come in and look at some synergies and all like that? Possibly, but that's trying to mind-read what's in the heads of some strategics. And a lot of times, it's a waste of effort to do that.

所以我們透過一筆具稅務效率的交易把這部分省下來，基本上也把第三方可能想取得的收益由我們自己掌握。那麼，是否可能有策略買家進來看到一些協同效益之類的？有可能，但那是在猜測某些策略方腦子裡在想什麼。而很多時候，那樣做是浪費力氣。

We think this is -- obviously, we're commercial if somebody wanted to pay a big number for lube, but I can't say that, that would be out of the question, but that's not our intent. That is not what we're looking at. I mean it is looking at having a business that can be valued properly in the public markets and capture that value for our stockholders through one of these distributions.

我們認為這——顯然，如果有人願意為潤滑油業務出一個很高的價格，我們也會以商業角度看待；我不能說那完全不可能，但那不是我們的意圖。那不是我們正在看的方向。我的意思是，我們是希望有一個能在公開市場被正確估值的業務，並透過這類分配方式把那個價值回饋給股東。

Yeah, that makes a lot of sense. And then shifting over to refining. So just from a throughput standpoint, it looked like the system ran well. Overall, crude oil charge came in above the top of the guidance range in 2Q, can you just talk about what went well during the quarter? And then maybe more broadly, can you talk about where we are in the refining improvement process and that target of 640,000 barrels a day on average? Thank you.

是的，這很合理。接著談到煉油。就處理量來看，系統似乎運行得很好。整體而言，第二季的原油加工量高於指引區間上緣，能否談談本季有哪些做得好的地方？另外更廣泛地說，能否談談煉油改善流程目前進展到哪裡，以及平均每日64萬桶這個目標的狀況？謝謝。

Sure, yeah. So what went well, I think what we've begun to do is really work in terms of leveraging our underlying reliability and operational improvements and then optimizing our kit. So to the extent that we have limitations, whether it be finishing in the premium products or we have excess intermediates. We've been able to optimize moving those molecules to different locations. And to be honest, it's looking more at our kit like an integrated kit.

當然，可以。我認為做得好的地方在於，我們開始真正著力於運用底層的可靠度與營運改善，並進一步優化我們的設備組合。因此，在我們存在限制的地方——不論是高端產品的收尾處理，或是中間產品過剩——我們都能夠透過把這些分子（產品）移往不同地點來加以優化。坦白說，這更像是把我們的設備當作一套整合式系統來看。

We're instead of stand-alone fence line balance, we're finding ways to move products and take advantage of markets or fill gaps while some of our fleet gets healthy on certain areas, running 640,000 in this quarter, as you mentioned, that is something that we aspire to do, where the market is there and certainly, the market was there.

我們不再只是各廠區圍籬內的獨立平衡，而是找方法移動產品，利用市場機會或在我們部分資產在某些區域恢復健康時補足缺口；如你提到的，本季跑到64萬桶，這是我們努力達成的目標，在市場需求存在時——而且當時市場確實存在。

And doing that while we had already talked about last quarter having a few unplanned maintenance elements at El Dorado, I think we were able to demonstrate our flexibility and capability to do that. We still have ways to go. And part of what we've talked about in terms of the organizational structure change is really to look at not only growth but optimizing inside of the integrated value chain, so we think there's more to gain there.

而且在我們上季已提到El Dorado有一些非計畫性維修項目的情況下仍能做到這點，我想我們展現了相當的彈性與能力。我們仍有進步空間。我們談到的組織架構調整，其中一部分就是不只看成長，也要在整合價值鏈內部做最佳化，因此我們認為那裡還有更多可取得的效益。

Great. Thank you.

很好。謝謝。

Theresa Chen, Barclays.

Theresa Chen，巴克萊。

Thank you. First of all, I'd like to offer my congratulations to Steve and Val for your new roles as well. And turning to some of the Midstream commentary. Stepping back, when we look at the compelling long-term supply and demand economics across PADD 4 and PADD 5 that underpins your Go-West opportunity even beyond the initial phase, can you remind us how much of incremental phases do you think you will need the support of third-party shippers versus volumes from your own facilities?

謝謝。首先也要恭喜Steve和Val擔任新職務。接著談一些中游（Midstream）的評論。拉遠一點看，當我們看到PADD 4與PADD 5之間具吸引力的長期供需經濟性，這也支撐了你們「向西（Go-West）」機會、甚至超越初始階段；能否提醒我們，在後續增量階段中，你們認為需要多少第三方託運人（shippers）的支持，相較於來自你們自有設施的運量？

And as you evaluate and commercialize incremental phases, how are you thinking about potential competition from other refined products -- projects taking Mid-Con and Gulf Coast products targeting Western markets including Phillips and Kinder's Western Gateway delivering to PADD 5 as well as existing expansions plus expandable assets from ONEOK, an enterprise targeting PADD 4 markets, including Denver, Colorado Junction, Salt Lake and so on.

另外，在你們評估並商業化後續增量階段時，對於其他成品油專案可能帶來的競爭，你們怎麼看——例如把Mid-Con與墨西哥灣沿岸產品導向西部市場的專案，包括Phillips與Kinder的Western Gateway輸送至PADD 5，以及ONEOK既有擴建與可擴充資產、以及Enterprise鎖定PADD 4市場（包括丹佛、科羅拉多Junction、鹽湖城等）的布局？

All right, Theresa, thanks. This is Steve. I'll try to break that down little bit. So -- the first part was on PADD 4 -- PADD 5 multiple phases. We've said the first phase is right at 35,000 in terms of unlocking Rockies production move West. The full phase and whether we go to a mid-phase or the final phase, it gets upwards to up to 140,000 to 150,000 barrels per day. We think that given our proximity, both our integrated -- our owned midstream position as well as our logistics proximity in the Rockies production, we will be able to fill a large portion of that.

好的，Theresa，謝謝。我是Steve。我試著把問題拆開回答一下。所以——第一部分是關於PADD 4——PADD 5的多階段。我們說過第一階段大約是35,000（桶/日），主要是釋放落磯山（Rockies）產量向西輸送。完整階段，不論是走到中期階段或最終階段，規模會上升到每日約14萬到15萬桶。我們認為，憑藉我們的地理接近性——包括我們整合式的、我們自有的中游布局，以及在落磯山產區的物流接近性——我們能夠填補其中很大一部分。

On larger phases, we will have the ability to connect some of our own production, but we think we would offer a compelling value proposition to move barrels out of the Mid-Con right into PADD 5. So I'm not going to comment on exactly how much is owned equity production versus third party, we'll commercialize that in due course, but we think we'll have the ability to go do that. And then as you asked about competing projects, we've said that the Western Gateway project is not a competitive project.

在更大規模的階段，我們有能力接入部分自有產量，但我們也認為，將桶數從Mid-Con直接運到PADD 5，我們能提供很有吸引力的價值主張。因此，我不會評論到底有多少是自有權益產量、多少是第三方；我們會在適當時機把商業化方案推出，但我們認為我們有能力去做。至於你問到競爭專案，我們之前說過，Western Gateway專案並不是競爭性專案。

When you look at the total balance structure in PADD 5 and you think about it from an imports -- PADD 5 in California import quite a bit of product. You've had two major refineries that have shuttered. We think the regulatory environment in California continues to be difficult to operate in. And therefore, you're going to need more supply. So we don't think these projects were necessarily competitive.

當你看PADD 5的整體供需平衡結構，並從進口角度思考——PADD 5、尤其加州，進口相當多的產品。你也看到有兩座大型煉油廠已經關閉。我們認為加州的監管環境仍然很難營運。因此，你將需要更多供給。所以我們不認為這些專案必然彼此競爭。

We think they are complementary to each other, but we clearly wanted to advance our project given our footprint and make sure that whatever the opportunities are to go into PADD -- Western PADD 4 and PADD 5 that we are the ones who take advantage of that, which is why we announced and why we're advancing the project to move to FID by -- into this year. I don't know if I got all questions, I might have miss one there.

我們認為它們彼此是互補的，但我們也清楚希望基於我們的版圖推進自己的專案，並確保無論是進入PADD——西部PADD 4與PADD 5的任何機會，都由我們來把握；這也是我們為何宣布並推進該專案，目標是在今年內推進到FID（最終投資決策）。我不確定是否把所有問題都回答到了，可能有一個我漏掉了。

We're good. Maybe turning to Refining. Can you just give us an update about the status of your SRE applications? Would you expect continued RIN relief for the applications that you filed?

我們這邊沒問題。也許轉到煉油業務。你能否就你們 SRE 申請的進度狀態給我們更新一下？對於你們已提交的申請，你是否預期 RIN 減免會持續？

Well, you guys probably know as well as we do. We are daily on the phone with Washington and various constituents, we have put in our 2025 petitions for Tulsa, Artesia, Parco, Casper and Woods Cross, they are in pending status. There are a few historical petitions for '23 and '24 that we're waiting on. You'll note that the DC Court has recently ruled in our favor on the EPA's decision to exclude Parco's eligibility for '24, and we're expecting relief and results soon.

嗯，你們大概也跟我們一樣清楚。我們每天都在跟華盛頓以及各方利害關係人通電話；我們已為 Tulsa、Artesia、Parco、Casper 和 Woods Cross 提交了 2025 年的請願，目前都在待審狀態。另外還有幾件 2023 年和 2024 年的歷史請願我們仍在等待結果。你們會注意到，華盛頓特區巡迴上訴法院最近就 EPA 排除 Parco 於 2024 年資格的決定判我們勝訴，我們預期很快會有減免與結果。

We were hearing weeks, not months. We're hearing days, not weeks. We need to get an answer, as you know, the compliance deadline is September 1. And as those SREs are delayed to us, it has an impact in terms of how we can leverage those to offset a material burden. As far as the overall RIN bank goes, which I think is part of this question, something is going to have to be done.

我們之前聽到的是「幾週」，不是「幾個月」。現在聽到的是「幾天」，不是「幾週」。我們必須拿到答案；如你所知，合規期限是 9 月 1 日。而這些 SRE 對我們而言若延遲，會影響我們如何運用它們來抵銷一項重大的負擔。至於整體的 RIN 存量（我想這也是問題的一部分），勢必得採取一些措施。

At the end of the day, the RIN bank is projected to go negative or only into a slightly balanced position by the end of the year. And if there's not some level of relief legislatively, I feel that is a race to the top in terms of pricing. And so we -- through our advocacy networks and our trade organization, associations, we are engaged in the conversation, but we expect to get relief from the SREs imminently. We just need it to happen soon.

歸根結底，預估到年底 RIN 存量會轉為負值，或僅略為平衡。如果在立法上沒有某種程度的紓困，我覺得價格會出現「競相上衝」的情況。因此我們透過倡議網絡、以及我們的貿易組織與協會，持續參與相關討論；但我們預期 SRE 的減免會很快到位。我們只是需要它盡快發生。

Thank you.

謝謝。

Doug Leggate, Wolfe.

Doug Leggate，Wolfe。

Hey, good morning, everyone. Let me also offer my congrats to Steve and Val. Franklin, I appreciate the very candid assessment of the current refining environment. I wanted to kind of try and parse some of your comments about how you manage this windfall, I guess, you could call it. It sounds like you might be opportunistic --

嗨，各位早安。我也要向 Steve 和 Val 表達祝賀。Franklin，我很感謝你對目前煉油環境非常坦率的評估。我想試著拆解一下你對於如何管理這筆「意外之財」（我想可以這麼稱呼）的評論。聽起來你們可能會採取機會主義的做法--

That is not how -- Doug, I would not characterize it as a windfall. It's just the rebalancing of the market based on external. That windfall makes me shutter because I don't --

不是那樣——Doug，我不會把它形容為意外之財。這只是市場在外部因素影響下重新平衡。你用「意外之財」這個詞會讓我打冷顫，因為我不--

Well, let me pick up on that one. Do you think mid-cycle has changed in perpetuity, Franklin?

好，那我就接著這點問。Franklin，你認為中週期（mid-cycle）是否已永久改變？

No.

不。

In that case it's a windfall.

那樣的話，這就是意外之財。

Well it's just rebalancing its profits from someone else that came our way that would have gone elsewhere. But semantics aside, we don't know what's going to happen with those refining assets. We do know -- what we do know is that if you look back in history to the 70s, the fuels market is not as impactful on the overall economy. And so the dire comments made by certain members of the executives of international oil companies have not -- the end of June came and went, and we didn't fall off a cliff. The fact is, is that we do need liquid fuels around the world.

嗯，這只是把原本會流向別人的利潤重新平衡後轉到我們這邊，而不是流到其他地方。但撇開用詞不談，我們不知道那些煉油資產接下來會怎麼發展。我們知道的是——如果回顧到 1970 年代，燃料市場對整體經濟的影響已沒那麼大。因此，某些國際石油公司高層所做的悲觀評論並沒有成真——6 月底來了又走，我們也沒有掉下懸崖。事實是，全世界仍然需要液體燃料。

The free market forces are balancing that out where, yes, we are having greater crack spreads now but it's a function of what's going to happen to those refineries that are offline. And it's just going to take them for a while. And so we'll benefit from that for a while, and we're going to have to look and make sure that we put us -- we're going to have to take advantage of the opportunity is what I would say, the opportunity gives us a chance to reinvest into an industry that had underinvested for a while based on economic issues. We're going to reinvest where we're more efficient and hopefully more profitable for a longer period of time.

自由市場力量正在讓它重新平衡；沒錯，我們現在的裂解價差更高，但那是因為那些停工的煉廠接下來會如何處置。而這需要一段時間。所以我們會在一段時間內受益；我們也必須檢視並確保我們把自己——我會說，我們必須把握這個機會。這個機會讓我們得以再投資到一個因經濟因素而長期投資不足的產業。我們會把資金再投到能讓我們更有效率、並希望在更長期間更有獲利能力的地方。

You look at Sinclair and since the merger through the end of June, I'm looking at Craig here, I think our annualized rate of return has been 20% since 2022, we're working real hard to use what assets we have. And I don't want to be argumentative with you at all. That was not my intent and I apologize for that. But it's -- we're giving something to deal with, and we're going to deal with it. And in terms of taking advantage of the opportunity to make this company and franchise better and making a great opportunity for our stockholders.

你看看 Sinclair，自合併以來到 6 月底——我在看 Craig——我想自 2022 年以來我們的年化報酬率是 20%，我們非常努力地運用我們現有的資產。我完全不想跟你爭辯。那不是我的本意，若讓你有那種感覺我道歉。但這——我們手上有要處理的事情，我們會把它處理好。至於把握機會，讓這家公司與品牌更好，並為股東創造很好的機會。

No, I think it's fair to look at the extended duration of all these disruptions. You published a double your discrete earnings for '26, '27 and '28, just for context. So we're there with you. The question we're trying to debate is, what is discounted in perpetuity in the sector in your stock. And it really goes back to the cash return question, which is where that was going. Are you prepared to build cash in this environment, build net cash as opposed to the formulaic share buyback. That was really where I was going with this windfall comment.

不，我認為從這些干擾延續的時間拉長來看，這樣的觀點是合理的。你們發布了 2026、2027 和 2028 年的離散盈餘翻倍（作為背景）。所以我們在這點上跟你們一致。我們想辯論的問題是：在你們的股價中，這個產業有哪些是被市場以「永久」方式折價的。而這其實回到現金回饋的問題，也就是我剛才要問的方向。在這樣的環境下，你們是否準備累積現金、建立淨現金，而不是依照公式化的庫藏股回購？那就是我提到「意外之財」的真正用意。

Okay. It would not be our intent. No. That's a -- you -- this gets into asset allocation, which is really right in the heart of where our Board and our senior management team should focus their efforts. It goes into how do we allocate assets, doing the lubes transaction. And cash on the balance sheet with no particular place to go is not a very smart thing for any management or Board to do.

好。那不會是我們的意圖。不。這——你——這會牽涉到資產配置，而這正是我們董事會與高階管理團隊應該聚焦的核心。這也關係到我們如何配置資產、以及進行潤滑油（lubes）交易。資產負債表上放著現金卻沒有明確用途，對任何管理層或董事會來說都不是很聰明的事。

And so would we lean into buying more shares? Sure, if we don't see opportunities to have reasonable returns on that, of course. But we're not here to just roll around a room full of cash just for the benefit of having the cash on the balance sheet. That is not our case. Steve's got a comment.

所以我們會更偏向回購更多股票嗎？當然，如果我們看不到能帶來合理報酬的機會，當然會。但我們不是為了讓資產負債表上有現金，就在一個滿是現金的房間裡打滾。我們不是這樣。Steve 有些補充。

Yes. So just as we talked about the structure, my role and Val's role. We saw our ability to go defend and take offense of the market. And so we've been evaluating several major projects. We are set up, the business is now set up to go execute upon those with efficiency, and make sure that we can allocate those dollars. So while to Franklin's comments, sitting having cash sitting on the balance sheet but no where to go, we are evaluating a number of large projects that we think would be accretive to the business and return very good value to the shareholders. But we're just not ready to talk yet.

是的。就像我們談到的架構、我的角色以及 Val 的角色。我們看到了我們有能力在市場上防守並主動出擊。因此我們一直在評估幾個重大專案。我們已經就位——現在這個業務已經就位——可以有效率地去執行那些專案，並確保我們能妥善配置這些資金。所以呼應 Franklin 的評論，讓現金躺在資產負債表上卻無處可去；我們正在評估多個大型專案，我們認為這些專案將對業務具增益性，並為股東帶來非常好的價值回報。但我們還沒準備好對外談。

Yeah. We're not ready to go live with that. And so -- but you have to look at the legacy of this company that we have been good managers of the capital given to the company, and we hope to continue to be.

對。我們還沒準備好正式對外公布。所以——但你必須看看這家公司一路以來的傳承：我們一直都很善於管理投入公司的資本，我們也希望能持續如此。

I'd also add that we're tracking well against our target of 50% payout ratio so far during the year. So we are close to 40%, and we still have six more months to go.

我也想補充說明，截至目前為止，我們今年在朝向50%配息率目標的進度追蹤良好。目前大約接近40%，而且我們還有接下來六個月。

All right, guys. I'll take an off time. Thanks so much.

好，各位。我先離線一下。非常感謝。

Phillip Jungwirth, BMO.

Phillip Jungwirth，BMO。

Thanks, good morning. Just wanted to ask on the market environment for lubes. First, last quarter, you mentioned cost inflation headwinds. Just what's the latest here in success of pricing actions to offset this? Are you seeing much demand sensitivity due to price?

謝謝，早安。我想請教一下潤滑油市場環境。首先，上季你們提到成本通膨帶來的逆風。目前在透過調價行動來抵消這些影響方面，最新進展如何？你們是否看到因價格而產生明顯的需求敏感度？

And then second, just coming back to a comment you made earlier about 20% of global base oil capacity being off-line, roughly, what's the breakdown here across these different areas where you're seeing unplanned downtime due to conflict or thin export policy just because some of these could take longer to normalize than others.

第二點，回到你先前提到全球約有20%的基礎油產能處於停工狀態的評論，大致上在不同區域的拆分為何？你們看到的非計畫性停工是因衝突或出口政策收緊所致；其中有些可能比其他更久才會恢復正常。

Correct. Yeah. Thanks for the question. This is Matt. Just looking at the second quarter performance, we had an exceptional quarter. We saw that driven by higher volumes, and we took multiple pricing actions throughout the quarter. We did and we're able to get through pricing in base oils that allow for us to have some margin expansion. And of course, you saw that we had some favorable FIFO impact. So we had a bit of a tailwind behind us. We've exhausted quite a lot of that inventory, and that's worked its way through.

沒錯。是的。謝謝你的問題。我是Matt。就第二季表現來看，我們有一個非常出色的季度。這主要是由更高的銷量所帶動，而且我們在整個季度採取了多次調價行動。我們確實成功在基礎油端完成調價，使我們得以擴大利潤率。當然，你也看到我們有一些有利的FIFO影響。因此我們有一些順風助力。我們已經消化了相當多的那部分庫存，而這些影響也已逐步反映完畢。

So we are going to see in the third quarter, we will see some more higher-cost inventories that we'll be managing through. And the team is doing an exceptional job of going out and getting those costs recovered as we progress. What we've also seen is that the demand for our finished lubricants business has also been really stable and as well as our specialties business. So we've had a good performance there. It's important, though, we have been watching very carefully cost discipline.

因此在第三季，我們會看到一些成本更高的庫存需要去管理與消化。團隊在推進過程中，持續把這些成本回收回來，做得非常出色。我們也看到成品潤滑油業務以及特種產品業務的需求都相當穩定。所以那邊的表現也不錯。不過很重要的是，我們一直非常密切地關注成本紀律。

And when we look for the future, we have to go out and get as much as we can from the markets, and in particular, the base oil markets that are in that short supply. So we talked about the 20%. Those are primarily Group 3 base oils that are off-line at this stage. And our team have done a nice job of sourcing our feedstocks, both from the Gulf Coast as well as from overseas to continue to maintain our production in our Mississauga facility at a ratable event. And so that we're able to provide our customers with the products that they require.

展望未來，我們必須盡可能從市場端爭取更多，特別是供應短缺的基礎油市場。我們談到的那20%。目前離線的主要是第三類（Group 3）基礎油。我們的團隊在原料來源的採購上做得很好，包含墨西哥灣沿岸以及海外來源，以持續讓我們密西沙加（Mississauga）廠維持穩定、可持續的產量。如此一來，我們就能為客戶提供他們所需要的產品。

So we do see that this is going to be a near-term opportunity for us, and it's a benefit that we're taking advantage of in the market today. But with the separation and what we're looking at for the business, we are looking at this business for the longer term. And the strategic rationale behind that is that the Lubes and Specialties business can create even more value through a focused capital-light specialty products model. And the access to the sources of base oils that we have been able to negotiate is a much better position for us than the ownership of these refining assets. And we're excited about having that distinct strategy capital allocation that's really truly ours and some exciting jumping off points for growth in the portfolio of products that we offer to the market.

因此我們確實認為，這在短期內會是我們的機會，而且我們正在把握當前市場上的這項利多。但就分拆以及我們對該業務的規劃而言，我們是以更長期的角度來看待這項業務。其背後的策略理由是：潤滑油與特種產品業務可以透過更聚焦、資本較輕的特種產品模式創造更高價值。而我們已能協商取得的基礎油來源管道，對我們而言，比起持有這些煉油資產更有利。我們也很期待擁有一套真正屬於我們自己的、清晰的策略性資本配置，並在我們提供給市場的產品組合上，擁有一些令人振奮的成長起點。

Okay. Great. And then refining capture was stronger than anticipated. You didn't get a whole lot of help from crude diffs either. I was just hoping you could talk about the tailwinds improvements to this metric in the quarter. And while we're only a month into 3Q? Just how are you viewing the puts and takes so far around refining capture.

好的。很好。另外，煉油捕捉率（refining capture）比預期更強。原油價差（crude diffs）對你們的助益也不大。我想請你談談本季推升這個指標的順風與改善因素。以及雖然第三季才過了一個月，目前你們如何看待煉油捕捉率的利多與利空因素？

Yeah, thanks. This is Steve, I'll take that one. Capture was, again, I think, a positive. We've talked about what we've been doing in terms of our underlying ability to get more value out of the molecule through extending value chains and our heavy oil value chain and our retail asphalt, producing more -- the jet flexibility projects that we put into Puget that came online in Q4 and really getting the molecules in the right space. Our light product yield improved. It was mainly -- both in distillate.

好的，謝謝。我是Steve，我來回答。我認為捕捉率再次呈現正面表現。我們談過我們正在做的事情：透過延伸價值鏈、我們的重油價值鏈與零售瀝青，從每一個分子中榨取更多價值；以及我們在Puget導入、於第四季上線的航煤彈性（jet flexibility）專案，確保把分子放到最合適的產品去。我們的輕質產品收率有所提升。主要是——在中間餾分兩方面都有改善。

We had 11,000 barrels a day more year-over-year in distillate. That was a good thing given the pricing environment, and we also were able to generate more premium in the quarter. So extending the value chain getting our crude slate flexibility in place across all of the facilities that can run different crude slates and have access to different crudes. That's been a focus of ours. We also ran well.

我們的中間餾分產量年增了每日11,000桶。在當時的定價環境下，這是件好事，而且我們也在本季取得了更高的溢價。因此，延伸價值鏈、把原油組合彈性（crude slate flexibility）在所有能夠處理不同原油組合、並可取得不同原油來源的設施中落實到位，一直是我們的重點。這一直是我們的聚焦方向。我們的運轉表現也很好。

When you're running and you're finishing the product, you're able to sell the higher-value products into the market and have to downgrade things. And against us to the point you made our leading crude was our largest drag inside the quarter and that was associated with the massive volatility in what was happening in the geopolitical stage, and steep backwardation only did flatten out -- more steep backwardation only to flatten out. You had some regional crudes that were priced out wide.

當你運轉順暢並完成產品製成時，你就能把更高價值的產品賣到市場，而不必把產品降級處理。至於你提到對我們不利的部分，本季我們的主力原油（leading crude）是最大的拖累，這與地緣政治局勢造成的巨大波動有關；而且陡峭的逆價差（backwardation）先是變得更陡，之後才趨於平坦。你也看到一些區域性原油的定價被拉得很寬。

Fortunately, the crack environment covered that. So it continues to be the game of taking waste out of the value chain and getting more value for all the molecules and higher grading the product and taking advantage of feed staff through the kit. Those themes won't change. And as we look into Q3, we see another strong quarter for us. We do have the turnaround at El Dorado that commences in September. But aside from that, I think we're looking at another strong quarter as we continue to advance our reliability and our optimization initiatives.

所幸裂解價差（crack）環境足以覆蓋這些影響。因此這仍然是一場持續的戰役：在價值鏈中去除浪費、為所有分子取得更多價值、提升產品等級，並透過裝置（kit）來善用進料。這些主題不會改變。展望第三季，我們認為對我們而言會是另一個強勁的季度。我們確實在9月會開始El Dorado的歲修（turnaround）。但除此之外，隨著我們持續推進可靠度與最佳化計畫，我認為我們將迎來另一個強勁季度。

Thank you.

謝謝。

Jason Gabelman, TD Cowen.

Jason Gabelman，TD Cowen。

Yeah. Hey, thanks for taking my questions. I wanted to circle back to the Lubes spin announcement that you made this morning. And just trying to make sure I'm understanding correctly, the EBITDA from what the remain or the SpinCo will be? Because historically, if I look back and it seems like you're spinning out what historically has been called the rack forward business, you retired that language in 2022.

是的。嗨，謝謝回答我的問題。我想回到你們今天早上宣布的潤滑油分拆（Lubes spin）消息。我想確認我理解是否正確：EBITDA會落在留下來的公司（RemainCo）還是分拆公司（SpinCo）？因為從歷史來看，如果我回頭看，似乎你們分拆出去的是過去被稱為rack forward的業務，而你們在2022年已不再使用這個用語。

And then you're shutting down most of the rack back business. If I look back to what those businesses earned in '21 and '22, it was about even split on average between the subsegments at about $350 million of EBITDA. So is what you're keeping moving forward, half of that $350 million or around $175 million or $200 million? Or do I have that math wrong? Thanks.

另外，你們正在關閉大部分的rack back業務。如果我回頭看這些業務在2021年與2022年的獲利，平均來看兩個子分部大致各半，合計約3.5億美元的EBITDA。所以你們未來保留的部分，是那3.5億美元的一半、約1.75億到2億美元嗎？還是我這樣算不對？謝謝。

Hey, Jason, it's Matt here. Yeah, I just want to take a minute just to clarify, what we are actually putting out as far as guidance, we're going to limit what we guide on at this point in time. What I can say is that our trailing 12 months in a traditional year would be anywhere between $300 million and $350 million. And we anticipate the new L&S organization that independent business will deliver something in that range. And here's how.

嗨，Jason，我是 Matt。是的，我想花一點時間釐清一下，就我們實際對外提供的指引而言，我們在目前這個時間點會限制我們提供指引的範圍。我可以說的是，以傳統年度來看，我們過去 12 個月的表現大約會落在 3 億美元到 3.5 億美元之間。而我們預期新的 L&S 組織（獨立業務）將會交付大致在這個區間的成果。原因如下。

With the way that we have built the relationships with the two premier suppliers, we are now going -- and the continued operation of our Tulsa refinery and our Group 1 supply as well as our specialties business. We will effectively have everything intact as far as our business is concerned and what we anticipate will be our margins, but they will be based on a capital-light model.

以我們與兩家頂級供應商所建立的合作關係來看，我們現在將會——再加上我們塔爾薩煉油廠的持續運作、我們的 Group 1 供應，以及我們的特種產品業務。就我們的業務以及我們預期的利潤率而言，我們將能有效地維持整體架構完整，但這些利潤率將建立在輕資本（capital-light）模式之上。

So we will be supplied materials from those suppliers, external suppliers on a long-term basis that will provide us ample base oils for our own requirements for our branded business, that being the Petro-Canada brand, the Sinclair brand, the Red Giant Oil brand, Sonneborn, et cetera, for both finished and specialties as well as having a distribution agreement, which will also afford us a new revenue stream that would serve as a rack forward type view to our business, similar to the relationship we enjoy today with the Tulsa refinery. So in doing so, we have, we believe, remained intact with our traditional -- what would be more traditional run rates on EBITDA. But we aren't going to guide any further than that at this point in time.

因此，我們將在長期基礎上由這些供應商（外部供應商）供應原料，為我們自有品牌業務提供充足的基礎油以滿足需求；自有品牌包括 Petro-Canada 品牌、Sinclair 品牌、Red Giant Oil 品牌、Sonneborn 等，涵蓋成品與特種產品。同時我們也會有一項配銷協議，這也將為我們帶來新的營收來源，並使我們的業務具備一種「機架價前推（rack forward）」式的視角，類似於我們目前與塔爾薩煉油廠所享有的合作關係。因此，我們相信我們已維持住傳統——也就是更傳統的 EBITDA 常態運行水準。但在目前這個時間點，我們不會再提供更進一步的指引。

Okay. Understood. Just I guess my other one is also on the lubes updates today and specifically on the Ontario shutdown, just given the base oil margin environment is so strong right now. It is slightly surprising you've announced the closure. Is there any flexibility to extend the life of that asset if the Middle East conflict drags on? Are there more structural changes in the base oil market that keep that asset in the money? Thanks.

好的。了解。我想我另一個問題也與今天的潤滑油更新有關，特別是安大略停產這件事，考量到目前基礎油利差環境非常強勁。你們宣布關閉確實有點令人意外。如果中東衝突拖延下去，是否有彈性延長該資產的使用年限？基礎油市場是否出現更多結構性變化，使得該資產仍能維持獲利？謝謝。

Yes, this is Franklin. I'll take that one. We don't have a line in the sand on exactly the date we're going to go to a safe state basis. So we're not unmindful of where the market is, but not being unmindful of the market today, we also recognize that there are a number of base oil suppliers who are increasing capacity around the world with a lower cost environment than what we have in Mississauga. So those assets will be coming on over the course of a period of time.

是的，我是 Franklin。我來回答這個問題。我們並沒有在確切日期上劃出一條硬性的界線，決定何時要轉入安全狀態（safe state）運作。所以我們並非沒有留意目前的市場狀況；但在留意當前市場的同時，我們也認知到，全球有不少基礎油供應商正在擴增產能，而且其成本環境低於我們在密西沙加（Mississauga）的成本。因此，這些產能將在一段時間內陸續投產。

And we had to make the hard decision. We're in basically a residential area outside of Toronto in the St. Lawrence Waterway, which is not the prime place where you would put a refining asset to begin with. And it's a small asset, where it would take substantial capital to kind of compete with some of these projects that are going on around the world, creating lower-cost base oil products. And so it was a difficult decision.

而我們必須做出艱難的決定。我們基本上位於多倫多外圍的住宅區，靠近聖羅倫斯水道（St. Lawrence Waterway），這本來就不是你會優先選擇設置煉油資產的理想地點。而且這是一個規模較小的資產，若要與全球正在推進的部分專案競爭、以生產更低成本的基礎油產品，將需要投入相當可觀的資本。因此這是一個艱難的決定。

I mean, the team there running those -- running assets is outstanding. They've been doing a great job for a number of years, but we've got logistics issues that we're going to have to confront in the future. We felt like this was the right time because we believe that there will be certainty on supply base oils from other places around the world coming on and it gives us the opportunity to take this time to greatly get to a safe state over the next few months. And so yes, we're very mindful of that. It went into the calculus of the decisions that we were doing. But I appreciate the question.

我的意思是，那裡的團隊——負責運營那些資產的團隊非常出色。他們多年來一直做得很好，但我們未來將不得不面對物流方面的問題。我們認為現在是合適的時點，因為我們相信來自全球其他地區的基礎油供應將會更具確定性地到位，這也讓我們有機會在接下來幾個月內，利用這段時間大幅推進轉入安全狀態的工作。所以是的，我們非常留意這一點。這也納入了我們做決策時的考量。不過我很感謝你的提問。

Thanks for all the color. That's really helpful

謝謝你提供這麼多細節。這真的很有幫助

We have reached the end of the Q&A session. I will now turn the call back to Franklin Myers for closing remarks.

問答環節到此結束。我現在把電話交回給 Franklin Myers 作結語。

Thank you so much. Before we end the call, I'd like to take a moment to share that Eric Nitcher, our General Counsel and a frequent and solid participant on these calls, who is also here today has expressed his desire to retire effective at the end of the month. I want to express our gratitude and appreciation for Eric's contributions to the company during his tenure at HF Sinclair. For those of you who know Eric, you're aware that he had a long and successful career at BP, ending his career there when he retired as their General Counsel. Eric joined us after the merger between HollyFrontier and Sinclair has provided seasoned leadership to the company in its legal function and as the company came together and matured.

非常感謝。在結束電話會議之前，我想花一點時間分享一則消息：我們的總法律顧問 Eric Nitcher——也是這些電話會議中經常且穩健的參與者，今天也在場——已表達他希望於本月底生效退休。我想對 Eric 在 HF Sinclair 任職期間對公司的貢獻表達我們的感謝與肯定。熟悉 Eric 的各位都知道，他在 BP 擁有長期且成功的職涯，並在退休時以其總法律顧問身分結束在那裡的職業生涯。Eric 在 HollyFrontier 與 Sinclair 合併後加入我們，並在公司法律職能方面，以及公司整合並逐步成熟的過程中，提供了資深的領導。

We wish Eric good and great times as he moves back -- moves forward back into retirement. An announcement on Eric's successor will be forthcoming soon. We just want to express our appreciation and thank you all for joining our call today.

我們祝福 Eric 在回到——在邁向再次退休的生活時，擁有美好且精彩的時光。關於 Eric 繼任者的公告將在不久後發布。我們只想表達我們的感謝，也謝謝各位今天參與我們的電話會議。

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

謝謝。今天的電話會議到此結束。請各位現在掛線，祝各位有美好的一天。