Financial products USA – Tecno Ciencia http://tecno-ciencia.com/ Tue, 13 Sep 2022 00:33:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tecno-ciencia.com/wp-content/uploads/2021/03/cropped-icon-32x32.png Financial products USA – Tecno Ciencia http://tecno-ciencia.com/ 32 32 Are challenger banks now faced with their own challengers? https://tecno-ciencia.com/are-challenger-banks-now-faced-with-their-own-challengers/ Mon, 12 Sep 2022 23:27:52 +0000 https://tecno-ciencia.com/are-challenger-banks-now-faced-with-their-own-challengers/ Since their appearance in the mid-2010s, challenger banks have changed the entire financial landscape, experiencing exponential growth. Fintech in the 2020s is all about collaboration But for the first time in their short history, the challengers are now challenged themselves. These new challengers build on the work done by companies like Monzo, Revolut, N26 and […]]]>

Since their appearance in the mid-2010s, challenger banks have changed the entire financial landscape, experiencing exponential growth.

Fintech in the 2020s is all about collaboration

But for the first time in their short history, the challengers are now challenged themselves.

These new challengers build on the work done by companies like Monzo, Revolut, N26 and Starling. But they don’t just create and deliver new, hyper-customized features. They create new and hyper-personalized banks.

The most exciting part? It’s not just a new wave of banks issuing a challenge. They are also businesses.

A new wave of personal challenger banks

The 2010s were all about mass appeal. But as we move through the 2020s, it’s about taking the features and level of customer experience that made challengers so popular and hyper-customizing it.

Today, banks are created to meet the needs of specific communities. Banks like Daylight, Tomorrow and Fardows, which serve LGBTQ+, social and Muslim customers respectively.

But it’s not just about creating a bank and saying it’s for a certain audience. It goes far beyond marketing. It’s about offering authentic features that appeal to different communities. For example, Daylight provides debit cards with the name chosen by the account holder, no matter what their ID says. Fardows allows account holders to borrow money in a fully halal-compliant manner. Tomorrow, customers are automatically investing in renewable energy and social initiatives, with every €5 they spend to restore the natural life of a wheelbarrow.

There are now banks for different professions too. In the United States, there are a number of challenger banks aimed at physicians, such as BankMD, which offers loans specifically for opening new practices, and Panacea, which provides refinance designed specifically for medical school debt, dental and veterinary.

Then there are banks for musicians like Nerve. In addition to financial features targeted at the sometimes chaotic life of a creative, it also syncs with Spotify to display streaming and subscriber data and offers networking functionality for easy work discovery and collaboration. artists.

This level of specificity also makes it much easier for challenger banks to become profitable, which they have struggled with. Deloitte research suggests customers are willing to pay up to 20% more for hyper-personalized financial products.

This is something that non-fintechs and more traditional companies have realized as well.

A new wave of challenger companies

Interestingly, the other group of challengers-challengers will be mainly non-financial companies.

Today, thanks to integrated finance – the integration of financial products into primarily non-financial spaces – nearly every business in every industry can access new financial products for their customers. According to a recent study by Vodeno, in the UK, Germany and Belgium, 75% of retailers already use integrated finance, while 56% plan to introduce other financial services in the near future. These include business loans, cards, virtual accounts, wealth management, insurance, cross-border payments, foreign exchange, and more.

Businesses can essentially become one-stop-shops for financial services, allowing their customers to conduct all their financial activities on their site and platform. They can even become banks themselves, something modern consumers are looking for.

This is done through a simple API integration, which makes it considerably faster and cheaper than building these services from scratch. Businesses can offer buy now, pay later (BNPL) through companies like Klarna and Afterpay, access payment rails and digital wallets from Railsr and Treezor, and offer financial exchanges and transfers from Wise. The list continues.

But the reason Integrated Finance will be so successful is because of the customization options available.

Companies can behave like hyper-specific challenger banks and target communities that share a passion, interest or career, but they can go further than that. They can target individual members of their own customer communities. Think about how Google monetizes search and social media monetizes relationships. Businesses will soon do the same but with spend data.

For example, if you’re buying a flight or a hotel, chances are you’re also looking for travel insurance, vacation money, budgeting tools, and everything else involved. on a trip abroad. Businesses can deliver these options just when they need them, triggered by specific purchases, emerging spending habits, or even geolocation.

This hyper-personalization provides a vastly superior level of customer experience and I’m sure it will soon become the norm.

What now for the original challengers?

The original challengers have become part of the financial furniture and are not going anywhere.

The new challengers are okay with that. The original challengers were created to disrupt the old way of banking. The mission of this new race builds on this work, using the same guiding principles.

Despite the size, some of the originals have also grown, at their core they are still nimble, tech-driven companies. Many are already working with the new challengers, integrating their services into their ecosystems and vice versa.

Fintech in the 2010s meant challenges. Fintech in the 2020s is all about collaboration.

]]>
FAANG 2.0: Say hello to MATANA and developments in Apple’s new frontier https://tecno-ciencia.com/faang-2-0-say-hello-to-matana-and-developments-in-apples-new-frontier/ Sat, 10 Sep 2022 12:39:00 +0000 https://tecno-ciencia.com/faang-2-0-say-hello-to-matana-and-developments-in-apples-new-frontier/ What’s in a name? If you’re interested in the tech industry, perhaps the best question is: what’s in an acronym? Because it’s the acronym that spells out who the cool kids are. You have to go back about nine years when the now well-known action group FAANG became a thing. The acronym was the label […]]]>

What’s in a name? If you’re interested in the tech industry, perhaps the best question is: what’s in an acronym? Because it’s the acronym that spells out who the cool kids are.

You have to go back about nine years when the now well-known action group FAANG became a thing. The acronym was the label for all the rising tech companies that were about to change our lives: Facebook, Amazon, Apple, Netflix and Google.

Almost a decade later, they are considered America’s most successful tech companies. These are all household names. And they can move the markets, affecting all stock indices.

Taken collectively, they are what we can undoubtedly call a financial juggernaut, accounting for around 15% of the market.

But every decade or so everything changes.

Enter MATANA. Think of it as FAANG 2.0.

MATANA, according to Constellation Research senior analyst Ray Wang, better represents the new world order in tech stocks. It snatched Meta – or the old Facebook – and Netflix from the top tier of heavy hitters. And in their place raised Microsoft, Tesla and Nvidia.

Thereby:

Mmicrosoft
Aapple
Jisla
Athe alphabet
NOTvideo
AMazon

Here are his arguments for this revamp of the tech world’s elite class and why the new acronym could have greater influence for the decade to come.

Those who have been abandoned:

Meta (NASDAQ:) (Facebook): Meta needs to define its plan, Wang said in an interview with Yahoo Finance.

“Facebook needs to do more than ads. Again, they’re having a blast. So, is it going to be the glasses? Is it going to be the metaverse? We’re not into it. not there yet and that’s really kind of challenging.

Source: Investing.com

Netflix (NASDAQ:): The biggest question facing the streaming service, according to Wang: how many subscribers can it get?

And that’s the fundamental problem with its one-turn business model. Growth could be limited if tied solely to its subscription model.

Wang says:

“Product placement should be where it is, as well as the ability to license (intellectual property). Look at how Disney makes its money.

Netflix Weekly Chart

Source: Investing.com

Those who have been elevated to the new group of acronyms:

Microsoft (NASDAQ:): According to Wang, the company has found a way to straddle key segments – what it offers to businesses and consumers.

Wang’s opinion:

“They are well positioned for the metaverse. They are well positioned for the cloud and, of course, they have their gaming business.”

Microsoft Weekly Chart

Source: Investing.com

NVIDIA (NASDAQ:): Its growth potential lies in the ever-increasing need for microchips, but also in how it can play an important role in emerging areas that could very well define the future.

Said Wang: “Nvidia is much more than the chips we look at and more than the data center or the games. They sit on the border between (artificial intelligence), the metaverse, the future of computing and how they do their partnerships. They are set up in a way that is going to be dominant for a while.

Nvidia Weekly Chart

Source: Investing.com

Tesla (NASDAQ:): The promotion in the acronym could settle a long-standing debate, confirming that Tesla isn’t just an automotive company.

Tesla Weekly Chart

Source: Investing.com

But it’s an automotive company, and in the less than 20 years since its inception in 2003, it has turned the automotive industry upside down.

In 2021, Tesla was ranked as the most valuable automotive brand in the world. That same year, it was considered the fastest growing brand on the planet. Today, its Model 3 is the best-selling electric vehicle in the world, surpassing the milestone of one million cars sold in June 2021.

The world changes. It’s a fast moving place where we can no longer ignore acronyms. There is no need for LOL, IMHO. We just need to follow up ASAP.

Apple and the companies in its orbit

In keeping with the technology theme, a big event that caught the attention of many eyes last week was Apple’s (NASDAQ:) September 7 unveiling of its new products. The introduction of the latest line of iPhones, Apple Watches and Air Pods always has an impact on the company’s stock.

Apple stock rose about 0.9% on news of the event and ended the day last Wednesday up 0.5%. It closed the week on Friday at $157.37, up 1.88% on the day and down 0.43% over the past 12 months.

The company is expected to hold another product launch event next month, where it is expected to showcase its latest iPads and computers, which could once again trigger a move in the stock price.

But one thing the latest Apple event sparked was a backlash for a much lesser-known company – Globalstar Inc (NYSE:). The Louisiana-based satellite company, it has been reported, has partnered with Apple to provide iPhone 14 Pro users with emergency services via direct satellite communications.

The iPhone 14 Pro is equipped with an antenna that will give users the ability to connect to satellite frequencies to use a text service to communicate their location in case of emergency in areas without cellular service.

The announcement caused Globalstar shares to soar last Wednesday, hitting an overnight high of $2.28. However, it quickly recovered from that high, bottoming the next day at $1.66. It closed the week Friday at $1.77.

Globalstar Weekly Chart

Source: Investing.com

The initial roller coaster effect was based purely on a knee-jerk reaction to Apple’s announcement. The inability of the stock to embark on a sustainable upward movement, however, is more a reflection of reality.

Apple’s plans for the satellite service came with a plan to spend $450 million to support the feature, with Reuters reporting that a “majority” of that money is funneled to Globalstar. This – at first glance – seemed like a big deal, given that Globalstar recorded revenues of less than a third of that amount last year. But the reality is that Globalstar will need to invest heavily in additional satellites to fulfill its Apple service support contract, according to reports.

All to say, it will be worth watching how it plays out. The new frontier is full of opportunities, and having Apple on your side is a great way to chart a course or boldly go where no smartphone has gone before.

And this week’s top winners and losers

Again, for anyone keeping score, here are last week’s top winners:

On the S&P 500

Regeneron Pharmaceuticals (NASDAQ:): +24.78%
SolarEdge Technologies (NASDAQ:): +16.97%
Albemarle Corp (NYSE:): +15.57%
Royal Caribbean Cruises (NYSE:) 15.24%
Freeport-McMoran Copper & Gold Inc (NYSE:). : +13.75%

On the

Amyris (NASDAQ:): +37.73%
Cassava Science (NASDAQ:): 32.90%
Pingtan Marine Enterprise (NASDAQ:): +26.08%
Pacific Biosciences (NASDAQ:): +25.75%
Riot Blockchain (NASDAQ:): +24.58%

And the biggest losers:

On the S&P 500

Occidental Petroleum Corp (NYSE:): -4.58%
McCormick & Company Incorporated (NYSE:): -3.80%
Church & Dwight Company (NYSE:): -3: 11%
CF Industries Holdings (NYSE:): -2.94%
Williams Companies (NYSE:): -2.79%

On the NASDAQ composite

More Therapeutics (NASDAQ:): -18.60%
Newegg Commerce Inc (NASDAQ:): -16.78%
Burcon NutraScience Corporation (NASDAQ:): -15.38%
Cadiz Inc. (NASDAQ:): -14.36%
Mannatech Incorporated (NASDAQ:): -14.18%

]]>
Inflation is now causing hardship for the majority in the United States https://tecno-ciencia.com/inflation-is-now-causing-hardship-for-the-majority-in-the-united-states/ Wed, 07 Sep 2022 08:04:53 +0000 https://tecno-ciencia.com/inflation-is-now-causing-hardship-for-the-majority-in-the-united-states/ Story Highlights 56%, up from 49% in January, say rising prices are causing hardship More middle- and upper-income Americans are struggling Reducing expenses, canceling trips are the most common actions WASHINGTON, DC — A majority of Americans, 56%, now say price increases are causing financial hardship for their household, up from […]]]>

Story Highlights

  • 56%, up from 49% in January, say rising prices are causing hardship
  • More middle- and upper-income Americans are struggling
  • Reducing expenses, canceling trips are the most common actions

WASHINGTON, DC — A majority of Americans, 56%, now say price increases are causing financial hardship for their household, up from 49% in January and 45% in November. The latest reading includes 12% who describe the difficulties as severe and 44% as moderate.

###Incorporate###

The findings are based on an August 1-22 online survey that interviewed more than 1,500 members of Gallup’s probabilistic panel.

Although more Americans now than last fall say they are struggling, the percentage of those with severe difficulty has remained relatively stable at around 10%. Low-income Americans are more likely than others to experience severe hardship — 26% of those with annual household incomes below $48,000 say prices are causing severe hardship for their families. That compares to 12% of middle-income Americans and 4% of high-income Americans.

Low-income Americans are about as likely as last fall to say they are having severe or moderate difficulty — 74%, down from 70% in November.

Middle-income (63%) and high-income (40%) Americans remain significantly less likely than low-income Americans to say they are struggling. However, many more middle- and upper-income Americans are struggling today than last November. The increase was larger among middle-income Americans — up 17 percentage points — than among upper-income Americans — up 12 points.

###Incorporate###

Reports of financial hardship also differ by partisanship. Republicans (67%) are much more likely than Democrats (44%) to say rising prices are hurting their families. The independents are between the party groups, at 56%.

These party differences are consistent with Republicans being more likely to cite inflation as the most important issue and to rate the economy more negatively than Democrats and Independents, likely due to the presence of a Democratic president in the White House.

Spending, travel and driving cuts are the most common responses to inflation

A new question in the survey asked people in difficulty to list some of the specific actions they take to respond to the effects of inflation.

The most common action, mentioned by 24% of those in difficulty, is to reduce expenses, including buying less in general or buying only essential items. Another 17% say they travel less or cancel vacations, while the same percentage say they drive less or try to use less gas.

Other common strategies for coping with higher prices are buying cheaper products or generic brands of products (12%), eating less at restaurants (10%), buying fewer grocery shopping or growing their own food (10%), staying home (8%), and reducing entertainment expenses (8%).

Seven percent say they have tried to increase their income by working more hours, finding a second job or looking for a new job. Three percent say they delay medical procedures or appointments, and another 3% delay home improvement or maintenance projects.

Two per cent each say they are downsizing or selling assets they own, using savings or using credit cards or loans. One percent use food banks or seek help.

###Incorporate###

Adults at different income levels are about equally likely to report taking the most frequently mentioned actions. However, high-income people are more likely than low-income people to say they have reduced their trips and dining out, perhaps because they are more likely to engage in these activities under normal circumstances.

Conclusion

With high inflation that has persisted for more than a year, a majority of Americans now say they are struggling financially because of rising prices. Low-income Americans were primarily affected at first, but most middle-income Americans and a substantial minority of high-income Americans are now feeling the pressure of rising prices.

To cope with the difficulties that inflation causes them, Americans are largely making sacrifices by buying less, reducing their discretionary spending and reducing their recreational activities. Some have resorted to larger measures such as finding another job, going into debt, postponing medical care or asking for help.

To stay up to date with the latest information and updates from Gallup News, Follow us on twitter.

Learn more about how the Gallup panel works.

]]>
Research: Rating Action: Moody’s Confirms BVI Medical’s Caa1 CFR, Negative Outlook https://tecno-ciencia.com/research-rating-action-moodys-confirms-bvi-medicals-caa1-cfr-negative-outlook/ Fri, 02 Sep 2022 23:15:36 +0000 https://tecno-ciencia.com/research-rating-action-moodys-confirms-bvi-medicals-caa1-cfr-negative-outlook/ New York, September 02, 2022 — Moody’s Investors Service (“Moody’s”) has affirmed BVI Medical, Inc.’s (“BVI”) Caa1 Corporate Family Rating (CFR), Probability of Default (PDR) Caa1-PD ) and the Caa1 Rating on the company’s senior secured debt. The confirmation of the rating reflects improved liquidity as the company repaid its revolving loan with proceeds from […]]]>

New York, September 02, 2022 — Moody’s Investors Service (“Moody’s”) has affirmed BVI Medical, Inc.’s (“BVI”) Caa1 Corporate Family Rating (CFR), Probability of Default (PDR) Caa1-PD ) and the Caa1 Rating on the company’s senior secured debt.

The confirmation of the rating reflects improved liquidity as the company repaid its revolving loan with proceeds from a new €85 million junior term loan.

As a result of this action, Moody’s will remove the Corporate Family Rating (CFR) and Probability of Default Rating (PDR) from the borrowing entity (BVI Medical, Inc.). The CFR and PDR will pass to the parent guaranteeing entity (BVI Holdings Mayfair Limited). In addition, a negative outlook will be assigned to the parent guarantor entity (BVI Holdings Mayfair Limited). This change places the CFR, PDR and outlook at the entity, which represents the entire credit group, and reports as such in the audited financial statements provided by the company. The change in location of the CFR does not imply any change in the company’s credit profile or the creditworthiness of Moody’s rated debt.

The negative outlook reflects the company’s very high leverage due to the disruption caused by the coronavirus crisis, large one-time expenses and a gradual recovery in profits. While freeing up the revolver’s borrowing capacity is helpful, any deviation from current earnings recovery expectations can increase the firm’s leverage and thus limit its borrowing base to 35% of the amount. total of the revolver to avoid testing the covenants.

Statement:

..Issuer: BVI Medical, Inc.

…. Classification of the family of companies, Caa1 confirmed

…. Default scoring probability, Caa1-PD confirmed

…. Senior Secured Senior Revolving Credit Facility, Confirmed Caa1 (LGD3)

….Senior Secured 1st Privilege Term Loan, Confirmed Caa1 (LGD3)

Duties:

..Issuer: BVI Holdings Mayfair Limited

…. Classification of the family of companies, awarded Caa1

…. Default scoring probability, assigned Caa1-PD

Outlook Actions:

..Issuer: BVI Medical, Inc.

….Outlook, changed to no Outlook from Stable

Outlook Actions:

..Issuer: BVI Holdings Mayfair Limited

….Perspectives, Attributed Negative

RATINGS RATIONALE

BVI’s Caa1 CFR reflects the company’s moderate scale based on sales and narrow focus within its chosen ophthalmology markets. The rating also reflects Moody’s expectation that debt/EBITDA will remain above 8x over the next 12-18 months. The company faces headwinds from one-time costs and upfront expenses for new product launches, at least in the next two quarters, making the company’s earnings recovery uncertain. However, over the longer term, Moody’s expects improved case volumes and lower costs to help the company’s operating performance. The company also competes with many larger competitors who have much larger financial resources. This rating is underpinned by BVI’s long-standing presence in the materials, equipment and intraocular lens (IOL) market for cataract surgery, strong operating margins and a diverse global customer base.

The company’s liquidity is low – with $34 million in cash at the end of 06/30/2022, a substantial portion of which may be needed to cover potential cash burn over the next 6-12 months. Moody’s notes that the company has struggled to generate positive free cash flow over the past 3 years. At present, the company has access to almost all of the 65 million revolver. However, if profits remain low and the first lien net leverage ratio exceeds the level of the commitment (8.6 times – credit agreement calculation). the company’s revolver loan base could be limited to 35% of total renewable capacity.

ESG considerations have a very strong negative impact (CIS-5) on BVI’s rating. BVI’s credit exposure to environmental risk considerations is neutral to low (E-2) consistent with the overall exposure of the medical products and devices industry. BVI has a very negative credit exposure (S-4) to social risk considerations arising from responsible production, including meeting regulatory requirements for the safety of its products as well as adverse reputational risks arising from recalls associated with manufacturing defects. Many of the company’s products are implanted inside the human eye and are subject to harsh regulatory actions and product liability litigation. BVI’s credit exposure to governance risk considerations is very strongly negative (G-5). The Company’s governance risks reflect its very aggressive financial strategy and risk management, as the Company maintains very high leverage. Additionally, the company has a board structure, which is dominated by members representing the company’s private equity sponsor – TPG Capital.

FACTORS THAT MAY LEAD TO IMPROVEMENT OR DEGRADATION OF RATINGS

The ratings could be upgraded if the company’s operating performance recovers, resulting in EBITDA comparable to pre-pandemic levels and positive free cash flow. Quantitatively, the ratings could be improved if BVI maintains its debt/EBITDA below 8.0 times while maintaining a good liquidity profile.

Ratings could be downgraded if elective vision procedures remain postponed beyond our current expectations, if free cash flow remains negative for an extended period or if liquidity erodes further.

Based in Waltham, Massachusetts, BVI Medical, Inc. (BVI) is a global manufacturer of products used in eye surgeries (primarily cataract procedures). BVI was acquired by private equity firm TPG Capital in August 2016. LTM revenue is approximately $325 million.

The main methodology used in these ratings was Medical Products and Devices published in October 2021 and available at https://ratings.moodys.com/api/rmc-documents/75796. Otherwise, please see the Scoring Methodologies page on https://ratings.moodys.com for a copy of this methodology.

REGULATORY INFORMATION

For details on key rating assumptions and Moody’s sensitivity analysis, see the Methodological Assumptions and Sensitivity to Assumptions sections in the Disclosure Form. Moody’s rating symbols and definitions can be found at https://ratings.moodys.com/rating-definitions.

For ratings issued on a program, series, category/class of debt or security, this announcement provides certain regulatory information regarding each rating of a subsequently issued bond or note of the same series, category/class of debt, security or under a program for which ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a media provider, this announcement provides certain regulatory information relating to the credit rating action on the media provider and each particular credit rating action for securities whose credit ratings are derived from the support provider’s credit rating. For the provisional ratings, this press release provides certain regulatory information relating to the provisional rating assigned, and to a final rating that may be assigned after the final issuance of the debt, in each case where the structure and conditions of the transaction n have not changed prior to the final rating being assigned in a way that would have affected the rating. For more information, please see the issuer/transaction page of the respective issuer at https://ratings.moodys.com.

For all relevant securities or rated entities receiving direct credit support from the lead entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action , the associated regulatory information will be that of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to the jurisdiction: Ancillary services, Disclosures to the rated entity, Disclosures to be provided by the rated entity.

The ratings have been communicated to the rated entity or its designated agent(s) and issued without modification resulting from such communication.

These notes are solicited. Please refer to Moody’s Policy for the Designation and Assignment of Unsolicited Credit Ratings available on its website. https://ratings.moodys.com.

The regulatory information contained in this press release applies to the credit rating and, if applicable, the outlook or rating revision relating thereto.

Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis are available at https://ratings.moodys.com/documents/PBC_1288235.

The worldwide credit rating on this credit rating announcement was issued by one of Moody’s affiliates outside the EU and is approved by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main. -le-Main 60322, Germany, in accordance with Article 4(3) of Regulation (EC) No 1060/2009 on credit rating agencies. Further information on the EU approval status and the Moody’s office that issued the credit rating can be found at https://ratings.moodys.com.

The worldwide credit rating on this credit rating announcement has been issued by one of Moody’s affiliates outside the UK and is approved by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the United Kingdom. . Further information on the UK endorsement status and the Moody’s office that issued the credit rating can be found at https://ratings.moodys.com.

Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and Moody’s legal entity that issued the rating.

Please see the issuer/transaction page at https://ratings.moodys.com for additional regulatory information for each credit rating.

Kailash Chhaya, CFA
Vice President – Senior Analyst
Corporate Finance Group
Moody’s Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
UNITED STATES
JOURNALISTS: 1 212 553 0376
Customer service: 1 212 553 1653

Ola Hannoun-Costa
Associate General Manager
Corporate Finance Group
JOURNALISTS: 1 212 553 0376
Customer service: 1 212 553 1653

Release Office:
Moody’s Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
UNITED STATES
JOURNALISTS: 1 212 553 0376
Customer service: 1 212 553 1653

]]>
The S&P 500 is stable as Wall Street tries to avoid a fourth day of losses https://tecno-ciencia.com/the-sp-500-is-stable-as-wall-street-tries-to-avoid-a-fourth-day-of-losses/ Wed, 31 Aug 2022 15:35:00 +0000 https://tecno-ciencia.com/the-sp-500-is-stable-as-wall-street-tries-to-avoid-a-fourth-day-of-losses/ Stocks fell on Wednesday as Wall Street struggled to end a three-day losing streak and investors continued to digest inflation-fighting comments from Federal Reserve officials. The Dow Jones Industrial Average fell 115 points, or 0.4%. The S&P 500 fell 0.3% and the Nasdaq Composite lost 0.4%. All major averages are on track to end what […]]]>

Stocks fell on Wednesday as Wall Street struggled to end a three-day losing streak and investors continued to digest inflation-fighting comments from Federal Reserve officials.

The Dow Jones Industrial Average fell 115 points, or 0.4%. The S&P 500 fell 0.3% and the Nasdaq Composite lost 0.4%.

All major averages are on track to end what has been a solid month for bearish stocks. The Dow Jones and S&P 500 are currently on track to end the month down about 3%. The Nasdaq is expected to end down about 4%.

Investors had been debating for weeks whether the economy was in a recession or heading into one, and many believed a recession would give the Fed reason to ease its rate hike plan. Powell, however, reiterated in his Jackson Hole speech on Friday that the central bank is committed to controlling inflation and will continue to raise rates even in a recessionary environment.

“Markets were banking on limited rate hikes and quick rate cuts,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “The speech was clear, however, that the increases will be bigger and the cuts more delayed than expected.”

The shares have sold off sharply since then. Adding to Powell’s comments, Cleveland Fed Chair Loretta Mester said Wednesday that she sees benchmark interest rates surging above 4% early next year, and Fed Chair of New York’s John Williams called for “a somewhat restrictive policy to slow demand.”

The selloff on Wall Street unfolded on Tuesday, with the Dow Jones Industrial Average slipping almost 1%. The Nasdaq Composite fell 1.1% and the S&P 500 fell 1.1%, dropping below 4,000 for the first time since late July. All major averages were on track to end August with losses.

“This volatility is really healthy and constructive,” Sanctuary Wealth Chief Investment Officer Jeff Kilburg told CNBC. “It doesn’t feel good, and the speed the Fed has injected into this process of de-risking has taken a lot of investors’ breath away, but… There are a lot of signs that are more optimistic than negative” – like rising Treasury yields, he said.

“For the market to go from 3,600 to 4,300 in 19 trading sessions, that’s not sustainable,” he added. “Seeing the market come back and the S&P 500 filling volume around 4,000 is really constructive and allows us to have a base taking another step higher against the backdrop of an earnings season that is better than expected and the consumer sentiment slowly picking up.”

]]>
The National Association of Hispanic Entrepreneurs Welcomes New https://tecno-ciencia.com/the-national-association-of-hispanic-entrepreneurs-welcomes-new/ Mon, 29 Aug 2022 15:00:00 +0000 https://tecno-ciencia.com/the-national-association-of-hispanic-entrepreneurs-welcomes-new/ HOUSTON, Aug. 29, 2022 (GLOBE NEWSWIRE) — The National Hispanic Contractors Association (NAHICA) is thrilled to announce that high-performance coated abrasives manufacturer Fandeli has joined the association. “As a proudly Mexican company, we are excited to take on this new challenge and make a difference in all markets for Hispanic entrepreneurs in the United States,” […]]]>

HOUSTON, Aug. 29, 2022 (GLOBE NEWSWIRE) — The National Hispanic Contractors Association (NAHICA) is thrilled to announce that high-performance coated abrasives manufacturer Fandeli has joined the association.

“As a proudly Mexican company, we are excited to take on this new challenge and make a difference in all markets for Hispanic entrepreneurs in the United States,” said Enrique Telles, Chief Marketing Officer of Fandeli.

This new partnership also marks Fandeli’s arrival in the US market after serving customers in Mexico and around the world since 1927.

“For more than 95 years, we have been the only producer of coated abrasives in Mexico, and we are excited to bring our expertise to our American neighbors. We look forward to the relationships that being part of NAHICA will help us form as let us know our new community,” said Enrique Telles – Fandeli.

Fandeli’s historical history and global distribution network have supplied over 15,000 coated and bonded abrasive products to different market niches including the aerospace, textile, automotive, glass, construction, wood, metals, plastics and flooring.

The National Hispanic Contractors Association is a Houston-based organization that works to make Hispanic contractors the preferred partner of choice across industries for manufacturers, residential and commercial builders.

NAHICA provides the following services to its partners:

  • A website to access ongoing construction projects.
  • Access to NAHICA’s vast network of contacts and job offers.
  • Events and conferences to allow established and growing entrepreneurs to learn about important commercial, industrial, residential and engineering projects while networking with leading companies.
  • Workshops and training courses to teach the latest construction innovations.
  • Discounts on professional services and materials, including financial, legal and marketing services, certifications and building materials.

To learn more about the National Association of Hispanic Entrepreneurs, please visit https://nahica.org.

About the National Association of Hispanic Entrepreneurs

The National Hispanic Contractors Association (NAHICA) aims to firmly establish Hispanic contractors as a preferred partner choice across all industries for manufacturers, residential and commercial builders by helping the Latin construction community connect, develop and have adequate resources to gain support from established companies. . The organization is focused on opening up growth opportunities for contractors in the construction industry.

About Fandeli

We are a family business, originally from Mexico, with sales offices and warehouse in Houston since 1987, with a global presence in over 30 countries and numerous manufacturing industries. We have the most extensive coverage in the hardware, home center, self-service, and specialty retail sectors such as automotive and paint stores. At Fandeli, our priority is to ensure your complete satisfaction in the use and application of our products. We always provide you with the best quality sandpapers and sandpapers, as well as ongoing customer service and technical support.

To learn more about Fandeli, please visit https://fandeli.com and see the special program for all entrepreneurs in the United States.

For media inquiries, please contact:

Sergio Terreros, PR

Media@11-11media.com

Related images

Picture 1: Fandeli

This content was posted through the press release distribution service on Newswire.com.

]]>
Citizens Financial Group in Pa https://tecno-ciencia.com/citizens-financial-group-in-pa/ Tue, 23 Aug 2022 03:11:30 +0000 https://tecno-ciencia.com/citizens-financial-group-in-pa/ Citizens Financial Group, Inc. (NYSE: CFG) today announced that Chairman and Chief Executive Officer Bruce Van Saun will attend the Barclays Global Financial Services Conference on Monday, September 12, 2022 at 9:45 a.m. ET. The live webcast will be available at http%3A%2F%2Finvestor.citizensbank.com under Events & Presentations. About Citizens Financial Group, Inc. Citizens Financial Group, Inc. […]]]>

Citizens Financial Group, Inc. (NYSE: CFG) today announced that Chairman and Chief Executive Officer Bruce Van Saun will attend the Barclays Global Financial Services Conference on Monday, September 12, 2022 at 9:45 a.m. ET.

The live webcast will be available at http%3A%2F%2Finvestor.citizensbank.com under Events & Presentations.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $226.7 billion in assets as of June 30, 2022. Headquartered in Providence, Rhode Island, Citizens offers a wide range of retail and commercial banking products and services for individuals, small businesses, ETIs, large corporations and institutions. Citizens helps its clients reach their potential by listening to them and understanding their needs in order to offer advice, ideas and tailor-made solutions. In Consumer Banking, Citizens offers an integrated experience that includes mobile and online banking, a full-service customer contact center, and the convenience of approximately 3,300 ATMs and more than 1,200 branches in 14 states and the District of Columbia. Consumer Banking’s products and services include a full range of banking, lending, savings, wealth management and small business offerings. In commercial banking, Citizens offers a wide range of financial products and solutions, including lending and leasing services, deposit and cash management services, foreign exchange risk management solutions, interest rate interest and commodities, as well as loan syndication, corporate finance, mergers and acquisitions, and debt and equity markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

CFG-IR

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220822005676/en/

]]>
Medicine announces its financial results for the second quarter https://tecno-ciencia.com/medicine-announces-its-financial-results-for-the-second-quarter/ Tue, 16 Aug 2022 01:46:00 +0000 https://tecno-ciencia.com/medicine-announces-its-financial-results-for-the-second-quarter/ DENVER, Aug. 15, 2022 (GLOBE NEWSWIRE) — Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company”), a biotechnology company aiming to transform the treatment of mental health and substance abuse disorders, today released its financial results for the six months ended June 30, 2022. Financial results for the six months ended […]]]>

DENVER, Aug. 15, 2022 (GLOBE NEWSWIRE) — Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company”), a biotechnology company aiming to transform the treatment of mental health and substance abuse disorders, today released its financial results for the six months ended June 30, 2022.

Financial results for the six months ended June 30, 2022

Net loss: Net loss attributable to common shareholders was $8.09 million, from operations, or a basic and diluted loss per share of ($1.31). For the same period in 2021, the operating loss was $13.53 million, representing a basic and diluted loss per share attributable to common shareholders of ($3.04) and which included an impairment charge of $4. $.2 million and a loss of $103,285 from discontinued operations,

Treasury : The Company had $324,146 in cash and cash equivalents as of June 30, 2022.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE INCOME – UNAUDITED.
Three months completed
June 30th,
Closed semester
June 30th,
To note 2022 2021
(Retirement)
2022 2021
(Retirement)
$ $ $ $
Sales
Cost of Goods Sold
Gross margin
Expenses
Financial cost 6.7 238,464 27,960 459,663 123,697
Business development 13,594 428 203 141,474 2,427,138
Depreciation and amortization 5.8 34,301 37,663 94,573 79 195
Consultation fees 703 895 1,193,840 2,127,768 2,217,495
Attendance and management fees 12 120,284 341,632 230,856 832 508
Exchange loss (gain) (53,964 ) 97,293 (25,776 ) 319,668
Insurance 289,529 153 223 548,874 153 223
Office and miscellaneous 22,541 (115,467 ) 240,523 220,899
Professional fees 385 479 697 414 992 633 1,350,469
Regulatory Filing Fees 12,276 177,912
Research and development 652,486 1,091,920 1,702,011 1,322,130
Property taxes
Wages 12 737 196 234 331 1,375,242 234 331
Share-based payments
Total expenses 3,143,805 4,454,160 7,887,841 9,458,665
Other income (expenses)
Change in fair value of derivative liabilities 9 631,760 249 549 (261,690 ) 221.893
Impairment of investment in associate (4,169,616 ) (4,169,616 )
Consideration paid in addition to identifiable assets
Rental income 32,310 32,307
Gain (loss) on debt settlement (2,319 )
Total other income (expenses) 631,760 3,887,757 261,690 (3,917,735 )
Loss from continuing operations (2,512,045 ) (8,341,947 ) (8,149,531 ) (13,376,400 )
Loss of discontinued operations 1 18,788 (103,285 )
Foreign currency translation adjustment 61,561 (24,830 ) 61,561 (48,628 )
Net income and comprehensive income for the period (2,450,484 ) (8,347,989 ) (8,087,970 ) (13,528,313 )
Net loss per share – basic and diluted from continuing operations (0.35 ) (1.75 ) (1.31 ) (3.04 )
Weighted average number of shares outstanding – basic and diluted 7,142,532 4,744,805 6,217,942 4,440,487
CONDENSED CONSOLIDATED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION – UNAUDITED.
Like a, To note June 30, 2022
$
The 31st of December,
2021
(Checked)
$
Current assets
Cash 324 146 1,495,311
Rents and other receivables 3,856
Inventory
Sales tax receivable 257 338 201,000
Prepayments and deposits 4 3,742,147 3,521,125
Total current assets 4,323,632 5,221,352
Non-current assets
Prepayments and deposits 4 1,504,484 1,793,894
Right-of-use asset 8 130,546
Property and equipment, net 5 362,815 434 910
Total assets 6,190,930 7,580,702
Current liabilities
Accounts payable and accrued liabilities 3,252,719 1,587,238
Notes payable seven 87,916
Derivative liabilities 9 79,660 1,280,294
Lease debt – current portion 8 79,728
Total current liabilities 3,420,295 2,947,260
Non-current liabilities
Convertible debentures, net 6 4,797,009 4,354,302
Long-term portion of rental debt 8 67,821
Total responsibilities 8,217,304 7,369,383
Equity
Share the capital ten 113 908 425 107,662,388
Contributed surplus ten 16,994,081 17,288,315
Equity portion of convertible debentures ten 175,756 175,756
Accumulated other comprehensive income 61,561
Deficit (133 166 197 ) (124,915.140 )
Total equity (2,026,374 ) 211 319
Total liabilities and equity 6,190,930 7,580,702

For more information, please see the Company’s filed financial statements and MD&A on SEDAR.

About the Medicine Innovations Group

Mydecine Innovations Group ™ (NEO: MYCO) (OTC: MYCOF) (FSE: 0NFA) is a biotechnology company that develops novel first and second generation innovative therapies for the treatment of mental health and addiction using a world-class technology and drug development infrastructure. Mydecine was founded in 2020 to address a significant unmet need and lack of innovation in mental health and therapeutic treatment environments. Our global team is dedicated to the effective development of new therapies to treat PTSD, depression, anxiety, addiction and other mental health disorders. The Mydecine business model combines clinical trials and data outcomes, technology, and scientific and regulatory expertise with a focus on psychedelic therapy, as well as other novel non-psychedelic molecules with therapeutic potential. By collaborating with some of the world’s leading authorities, Mydecine aims to responsibly accelerate the development of new medicines to provide patients with mental disorders with safe and more effective treatment options. Mydecine Innovations Group is headquartered in Denver, Colorado, USA, and international offices in Leiden, The Netherlands.

Learn more at: https://www.mydecine.com and follow us on Twitter, LinkedIn, YouTube and Instagram.

For more information please contact:
Media Contact
Damon Michaels, COO pr@mydecineinc.com

Investor Relations
Damon Michaels, Chief Operating Officer contact@mydecineinc.com

On behalf of the Board of Directors:
Joshua Bartch, Managing Director contact@mydecineinc.com

For additional information about Mydecine Innovations Group, Inc., please see the company’s profile on SEDAR at www.sedar.com or visit the company’s website at www.mydecine.com.

This press release contains forward-looking information within the meaning of Canadian securities laws concerning the Company and its business, which relates to future events or future performance and reflects management’s current expectations and assumptions. Often, but not always, forward-looking information can be identified by the use of words such as “expects”, “intends”, “anticipates”, “believes” or variations (including variations negative) of these words and expressions, or declare that certain actions, events or results “could”, “could”, “would” or “would” be undertaken, occur or be achieved.

These forward-looking statements reflect management’s current beliefs and are based on assumptions made by the Company and information currently available to it. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected, including, without limitation, risks relating to the COVID-19 pandemic, the availability and continuity of financing, the Company’s ability to adequately protect and enforce its intellectual property, the Company’s ability to put its products into commercial production, the continued growth of global adaptive medicine, natural health products and digital health industries, and the risks presented by the highly regulated and competitive marketplace regarding the development, production, sale and use of the Company’s products. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be those anticipated, estimated or expected. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. These forward-looking statements are made as of the date hereof, and the Company undertakes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable securities laws.

]]>
More businesses reveal losses as authorities halt raids in probe linked to Terra collapse https://tecno-ciencia.com/more-businesses-reveal-losses-as-authorities-halt-raids-in-probe-linked-to-terra-collapse/ Sat, 13 Aug 2022 09:10:41 +0000 https://tecno-ciencia.com/more-businesses-reveal-losses-as-authorities-halt-raids-in-probe-linked-to-terra-collapse/ South Korean prosecutors arrested three people on August 11 for ties to an illegal cryptocurrency scheme. The arrests came five weeks after Justice Minister Han Dong-hoon had a meeting with US officials to explore collaborative efforts in combating financial crimes, especially when cryptocurrencies are used. involved. The Korean Minister of Justice held talks with the […]]]>

South Korean prosecutors arrested three people on August 11 for ties to an illegal cryptocurrency scheme. The arrests came five weeks after Justice Minister Han Dong-hoon had a meeting with US officials to explore collaborative efforts in combating financial crimes, especially when cryptocurrencies are used. involved.

The Korean Minister of Justice held talks with the head of the Securities and Commodities Fraud Task Force and the co-head of the Securities and Commodities Task Force in New York. Both parties identified their scope with the United States Securities and Exchange Commission which considered whether or not the UST was deceptively marketed to be more stable than it was. South Korean prosecutors agreed to investigate whether there was market manipulation, tax evasion and fraud.

Terra Survey Updates

Two weeks after the Justice Minister’s visit to the United States, South Korean authorities carried out a series of raids on more than a dozen locations in the country in connection with the Terra ecosystem crash. Local press briefing Yonhap News Agency reported on July 20 that investigators from the Seoul Southern District Prosecutors Office went after several local businesses that had ties to Terraform Labs and cryptocurrency exchanges. Bithumb, Coinone and Upbit are among those visited.

Officers commandeered records of Terra-related transactions to uncover the events that led to the collapse of TerraUSD and LUNA assets. They also reportedly raided the residence of co-founder Daniel Shin and companies he worked closely with in the past. The report also states that investigators stayed in some locations for a week.

Newsis, another media outlet, published an article on July 28 detailing that investigators conducted the raids thoroughly.

“It took a long time to extract [relevant information] confiscated [material] and verification [its] relevance of being evidence [of wrongdoing]”, said an anonymous source from the prosecutor’s office.

There have been allegations that some people within Terraform either knew a catastrophic fallout was a likely outcome or conspired to set it up. Either way, the crash destroyed both retail and institutional portfolios.

Terra’s early backers are among the biggest casualties

The ripple effects are still being felt by companies that had indirectly injected massive capital into Terraform Labs and Terra assets. Hedge fund manager Three Arrows Capital has been forced to file for bankruptcy after reports of insolvency. Lending and brokerage firms also bore the brunt, with Celsius and Voyager seeking bankruptcy protection.

In recent weeks, more companies that have backed Terra and its projects have released reports highlighting the extent of the losses recorded on their balance sheets.

Hashed CEO Reveals His Company Lost Over $3.5 Billion Due to Luna Collapse

In a recent interview with Bloomberg, Hashed Managing Director Simon Seojoon Kim revealed that his venture capital firm has been hit hard. There are discrepancies in the actual sum of tokens the Seoul-based blockchain company held at the time of the implosion, but all accounts are compatible with at least 30 million LUNA tokens. This would translate to $3.6 billion when the token price peaked at around $120 in April.

Kim said Bloomberg on August 2, he bought 30 million LUNA tokens as the first investor, and the company kept most of it until the end. String data captured by CoinDesk shows that the Korean venture capital fund had invested no less than $49.90 million in LUNA on the Columbus 3, 4 and 5 mainnets. the cryptocurrency industry.

“There is no wallet that guarantees success [in this sector]and we make our investments with that in mind, we believe in growing community and that has never changed,” he pointed out.

He also described his intention to create a third venture capital fund by mid-2023, adding that he would invest in GameFi projects. His reputation, however, is not as solid as his belief in GameFi investments. The Hashed boss has been accused of promoting the LUNA token and selling off some of his holdings before the collapse, raising questions about his integrity. Kim addressed these reports claiming that his company does not offer trade recommendations and that he held 99% of his LUNA investment throughout the crash, only selling his staking rewards.

Uprise lost 99% of funds held by users in short bets

Another hard-hit investor was Kakao-backed Korean startup Uprise, losing 99% of user funds on deposit. As reported by local media Seoul Economic Daily, the crypto startup has been caught in the throes of falling prices, “misled” by AI-powered automated trading strategies. Uprise employed a robo-advisor, a technology that entered short sell positions using client funds.

Although the LUNA outage established a safe path to zero, the token experienced temporary pumps. These brief surges, like the one that took LUNA from $0.68 to $7.88 in just four hours on May 11 (LUNA/BUSD pair), highlighted the volatile storm that engulfed the 20.4 million dollars (26.7 billion won) of customer funds.

Internally, Uprise lost up to $2.9 million (3.9 billion won) of its funds. A representative confirmed to the local publication that “damage to client assets occurred due to unexpectedly high volatility in the market. Nonetheless, the company said it would explore various options to compensate affected customers. The company is backed by giant venture capital firms in Korea, including KB Investments and Kakao Ventures. Its client base includes a large number of high net worth individuals and institutional entities.

There is, however, a gray area around Uprise, as it is not a licensed Virtual Asset Service Provider (VASP) in South Korea, a problematic situation as certification is required for businesses to custody of virtual assets. Uprise failed to comply with this requirement established by the law on specific financial information at the end of last year. The company argued that it does not collect won or invest directly in digital assets and only dabble in futures.

]]>
HF SINCLAIR CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://tecno-ciencia.com/hf-sinclair-corp-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Mon, 08 Aug 2022 19:30:05 +0000 https://tecno-ciencia.com/hf-sinclair-corp-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ This Item 2 contains "forward-looking" statements. See "Forward-Looking Statements" at the beginning of Part I of this Quarterly Report on Form 10-Q. In this document, the words "we," "our," "ours" and "us" refer only to HF Sinclair Corporation ("HF Sinclair") and its consolidated subsidiaries or to HF Sinclair or an individual subsidiary and not to […]]]>
This Item 2 contains "forward-looking" statements. See "Forward-Looking
Statements" at the beginning of Part I of this Quarterly Report on Form 10-Q. In
this document, the words "we," "our," "ours" and "us" refer only to HF Sinclair
Corporation ("HF Sinclair") and its consolidated subsidiaries or to HF Sinclair
or an individual subsidiary and not to any other person with certain exceptions.
Generally, the words "we," "our," "ours" and "us" include Holly Energy Partners,
L.P. ("HEP") and its subsidiaries as consolidated subsidiaries of HF Sinclair,
unless when used in disclosures of transactions or obligations between HEP and
HF Sinclair or its other subsidiaries. This document contains certain
disclosures of agreements that are specific to HEP and its consolidated
subsidiaries and do not necessarily represent obligations of HF Sinclair. When
used in descriptions of agreements and transactions, "HEP" refers to HEP and its
consolidated subsidiaries. References herein to HF Sinclair "we," "our," "ours,"
and "us" with respect to time periods prior to March 14, 2022 refer to
HollyFrontier Corporation ("HollyFrontier") and its consolidated subsidiaries
and do not include Hippo Holding LLC, the parent company of Sinclair Oil LLC,
Sinclair Transportation Company LLC or their respective consolidated
subsidiaries (collectively, the "Acquired Sinclair Businesses"). References
herein to HF Sinclair "we," "our," "ours," and "us" with respect to time periods
from and after March 14, 2022 include the operations of the Acquired Sinclair
Businesses. Unless otherwise specified, the financial statements included herein
include financial information for HF Sinclair, which for the time period from
March 14, 2022 to June 30, 2022 includes the combined business operations of
HollyFrontier and the Acquired Sinclair Businesses.


OVERVIEW


We are an independent energy company that produces and markets high-value light
products such as gasoline, diesel fuel, jet fuel, renewable diesel and other
specialty products. We own and operate refineries located in El Dorado, Kansas
(the "El Dorado Refinery"); Tulsa, Oklahoma, which comprise two production
facilities, the Tulsa West and Tulsa East facilities (collectively, the "Tulsa
Refineries"); Anacortes, Washington (the "Puget Sound Refinery"); Artesia, New
Mexico, which operates in conjunction with crude oil distillation, vacuum
distillation and other facilities situated 65 miles away in Lovington, New
Mexico (collectively, the "Navajo Refinery"); Woods Cross, Utah (the "Woods
Cross Refinery"); Sinclair, Wyoming (the "Sinclair Refinery") and Casper,
Wyoming (the "Casper Refinery"). We market our refined products principally in
the Southwest United States, the Rocky Mountains extending into the Pacific
Northwest and in other neighboring Plains states. We supply high-quality fuels
to more than 1,300 Sinclair branded stations and license the use of the Sinclair
brand at more than 300 additional locations throughout the country. In addition,
our subsidiaries produce and market base oils and other specialized lubricants
in the United States, Canada and the Netherlands, and export products to more
than 80 countries. Through our subsidiaries, we produce renewable diesel at two
of our facilities in Wyoming and our facility in New Mexico. We also own a 47%
limited partner interest and a non-economic general partner interest in HEP, a
master limited partnership that provides petroleum product and crude oil
transportation, terminalling, storage and throughput services to the petroleum
industry, including HF Sinclair subsidiaries.

Market Developments
For the three months ended June 30, 2022, net income attributable to HF Sinclair
stockholders was $1,221.3 million compared to $168.9 million for the three
months ended June 30, 2021. For the six months ended June 30, 2022, net income
attributable to HF Sinclair stockholders was $1,381.2 million compared to $317.1
million for the six months ended June 30, 2021. Gross refining margin per
produced barrel sold in our Refining segment increased 211% for the three months
ended June 30, 2022 over the same period of 2021.

Our results for the second quarter and first six months of 2022 were favorably
impacted by continued strong global economic activity with global demand for
transportation fuels, lubricants and the transportation and terminal services
having returned to pre-pandemic levels. The rapid increases in crude oil prices
and market crack spreads during the second quarter were driven by both sustained
increases in demand and the global supply disruption related to actions taken in
response to both the COVID-19 pandemic and sanctions imposed on Russia for its
invasion of Ukraine. We continue to adjust our operational plans to the evolving
market conditions. The extent to which our future results are affected by the
COVID-19 pandemic or volatile regional and global economic conditions will
depend on various factors and consequences beyond our control.

                                       40
--------------------------------------------------------------------------------
  Table of Content
Sinclair Acquisition
On March 14, 2022 (the "Closing Date"), HollyFrontier and HEP announced the
establishment of HF Sinclair as the new parent holding company of HollyFrontier
and HEP and their subsidiaries, and the completion of their respective
acquisitions of Sinclair Oil Corporation (now known as Sinclair Oil LLC,
"Sinclair Oil") and Sinclair Transportation Company LLC ("STC") from The
Sinclair Companies (now known as REH Company and referred to herein as "Sinclair
HoldCo"). On the Closing Date, HF Sinclair completed its previously announced
acquisition of Sinclair Oil by effecting (a) a holding company merger with
HollyFrontier surviving such merger as a direct wholly owned subsidiary of HF
Sinclair (the "HFC Merger") and (b) immediately following the HFC Merger, a
contribution whereby Sinclair HoldCo contributed all of the equity interests of
Hippo Holding LLC, the parent company of Sinclair Oil (the "Target Company") to
HF Sinclair in exchange for 60,230,036 shares of HF Sinclair common stock,
resulting in the Target Company becoming a direct wholly owned subsidiary of HF
Sinclair (the "HFC Transactions"). At the effective time of the HFC Merger, all
of HollyFrontier's outstanding shares were automatically converted into
equivalent corresponding shares of HF Sinclair, and HF Sinclair became the
successor issuer to HollyFrontier pursuant to Rule 12g-3(a) under the Securities
and Exchange Act of 1934, as amended (the "Exchange Act"), and replaced
HollyFrontier as the public company trading on the New York Stock Exchange
("NYSE") under the symbol "DINO."

HF Sinclair acquired Sinclair HoldCo's refining, branded marketing, renewables,
and midstream businesses. The branded marketing business supplies high-quality
fuels to more than 1,300 Sinclair branded stations and licenses the use of the
Sinclair brand at more than 300 additional locations throughout the United
States. The renewables business includes the operation of a renewable diesel
unit located in Sinclair, Wyoming. The refining business includes two Rocky
Mountains-based refineries located in Casper, Wyoming and Sinclair, Wyoming.
Under the terms of the Contribution Agreement, HEP acquired STC, Sinclair
HoldCo's integrated crude and refined products pipelines and terminal assets,
including approximately 1,200 miles of integrated crude and refined product
pipeline supporting the Sinclair refineries and third parties, eight product
terminals and two crude terminals with approximately 4.5 million barrels of
operated storage. In addition, HEP acquired STC's interests in three pipeline
joint ventures for crude gathering and product offtake including: Saddle Butte
Pipeline III, LLC (25.06% non-operated interest); Pioneer Pipeline (49.995%
non-operated interest); and UNEV Pipeline, LLC ("UNEV") (the 25% non-operated
interest not already owned by HEP, resulting in UNEV becoming a wholly owned
subsidiary of HEP). The addition of Sinclair Oil and STC to the HollyFrontier
business created a combined company with increased scale and ability to
diversify and is expected to drive growth through the expanded refining and
renewables business. In addition, the HFC Transactions added an integrated
branded wholesale distribution network to our business.

See Note 2 “Acquisitions” and Note 3 “Holly Energy Partners” in the notes to the consolidated financial statements for more information.


Puget Sound Refinery Acquisition
On May 4, 2021, HollyFrontier Puget Sound Refining LLC, a wholly owned
subsidiary of HollyFrontier, entered into a sale and purchase agreement with
Equilon Enterprises LLC d/b/a Shell Oil Products US ("Shell") to acquire Shell's
Puget Sound refinery and related assets, including the on-site cogeneration
facility and related logistics assets. The acquisition closed on November 1,
2021.

Renewable Fuel Standard Regulations
Pursuant to the 2007 Energy Independence and Security Act, the Environmental
Protection Agency ("EPA") promulgated the Renewable Fuel Standard ("RFS")
regulations, which increased the volume of renewable fuels mandated to be
blended into the nation's fuel supply. The regulations, in part, require
refiners to add annually increasing amounts of "renewable fuels" to their
petroleum products or purchase credits, known as renewable identification
numbers ("RINs"), in lieu of such blending. Compliance with RFS regulations
significantly increases our cost of products sold, with RINs costs totaling
$210.5 million and $406.8 million for the three and six months ended June 30,
2022, respectively. At June 30, 2022, our open RINs credit obligations were
$79.5 million. See Note 2 "Acquisitions" in the Notes to Consolidated Financial
Statements for additional information on RINs credit obligations assumed in the
Sinclair Transactions.

Under the RFS regulations, the EPA is required to set annual volume targets of
renewable fuels that obligated parties, such as us, must blend into
petroleum-based transportation fuels consumed in the United States. These volume
requirements are used to determine an obligated party's renewable volume
obligation ("RVO"). The EPA released a final rule on June 3, 2022 that, among
other things, reduced the volume targets for 2020 and established targets for
2021 and 2022. In 2020, we recognized the cost of the RVO using the 2020 volume
targets set by the EPA at that time, and in 2021 and the three months ended
March 31, 2022, we recognized the cost of the RVO using our estimates. As a
result of the final rule released by the EPA on June 3, 2022 as noted above, we
recognized a benefit of $72.0 million in the three and six months ended June 30,
2022 related to the modification of the 2020 and 2021 volume targets.

                                       41

————————————————– ——————————

  Table of Content

OUTLOOK


Within our Refining segment, for the third quarter of 2022, we expect to run
between 630,000 - 650,000 barrels per day of crude oil. This guidance reflects
the strong underlying demand trends in our markets, the reduction of refined
product supply driven by the global reaction to Russia's invasion of Ukraine and
a full quarter's operating results from the Sinclair and Casper refineries.

Within our Lubricants and Specialty Products segment, for the third quarter of
2022, we expect continued strength in earnings in our Rack Forward business as
well as strong performance in our Rack Back business due to the reduction in
base oil supply from Russia.

Within our Renewables business, we completed construction of the Artesia
renewable diesel unit and commenced start up in the second quarter of 2022. The
Sinclair and Cheyenne renewable diesel units and the Artesia pre-treatment unit
are all on-line. For the third quarter of 2022, we will continue to ramp up
production across these assets as we expect to reach full production levels by
the end of the third quarter. We are suspending construction of the Sinclair
pre-treatment unit until 2023 pending a review of project economics and other
potential alternatives.

In the third quarter of 2022, HEP expects to hold the quarterly distribution
constant at $0.35 per unit, or $1.40 on an annualized basis. HEP remains
committed to its distribution strategy focused on funding all capital
expenditures and distributions within operating cash flow and maintaining
distributable cash flow coverage of 1.3x or greater with the goal of reducing
leverage to 3.0-3.5x.

Our Board of Directors declared a regular quarterly dividend in the amount of
$0.40 per share, payable on September 1, 2022 to holders of record of common
stock on August 18, 2022. In the second quarter of 2022, we resumed the
repurchase of our common stock under our existing $1.0 billion share repurchase
program and expect to remain active throughout the second half of 2022.

On March 27, 2020, the U.S. government passed the Coronavirus Aid, Relief, and
Economic Security Act (the "CARES Act"), an approximately $2 trillion stimulus
package that included various provisions intended to provide relief to
individuals and businesses in the form of tax changes, loans and grants, among
others. At this time, we have not sought relief in the form of loans or grants
from the CARES Act; however, we have benefited from certain tax deferrals in the
CARES Act and may benefit from other tax provisions if we meet the requirements
to do so. During the second quarter of 2022, we received $83 million in cash tax
benefit in 2022 from the net operating loss carryback provisions under the CARES
Act.

A more detailed discussion of our financial and operating results for the three and six months ended June 30, 2022 and 2021 is presented in the following sections.

                                       42

————————————————– ——————————

  Table of Content

RESULTS OF OPERATIONS

Financial Data

                                                                   Three Months Ended
                                                                        June 30,                                 Change from 2021
                                                               2022                  2021                  Change                 Percent
                                                                                 (In thousands, except per share data)
Sales and other revenues                                  $ 11,162,160          $ 4,577,123          $      6,585,037                  144  %
Operating costs and expenses:
Cost of products sold (exclusive of depreciation
and amortization):
Cost of products sold (exclusive of lower of cost
or market inventory valuation adjustment)                    8,579,915            3,825,729                 4,754,186                  124
Lower of cost or market inventory valuation
adjustment                                                      34,543             (118,825)                  153,368                 (129)
                                                             8,614,458            3,706,904                 4,907,554                  132
Operating expenses (exclusive of depreciation and
amortization)                                                  606,127              334,191                   271,936                   81
Selling, general and administrative expenses
(exclusive of depreciation and amortization)                   110,875               77,754                    33,121                   43
Depreciation and amortization                                  164,044              124,042                    40,002                   32

Total operating costs and expenses                           9,495,504            4,242,891                 5,252,613                  124
Income from operations                                       1,666,656              334,232                 1,332,424                  399
Other income (expense):
Earnings of equity method investments                            5,447                3,423                     2,024                   59
Interest income                                                  1,844                1,029                       815                   79
Interest expense                                               (38,961)             (28,942)                  (10,019)                  35

Gain (loss) on foreign currency transactions                      (905)                 583                    (1,488)                (255)
Gain on sale of assets and other                                 2,320                7,927                    (5,607)                 (71)
                                                               (30,255)             (15,980)                  (14,275)                  89
Income before income taxes                                   1,636,401              318,252                 1,318,149                  414
Income tax expense                                             383,493              123,485                   260,008                  211
Net income                                                   1,252,908              194,767                 1,058,141                  543
Less net income attributable to noncontrolling
interest                                                        31,646               25,917                     5,729                   22

Net income attributable to HF Sinclair shareholders $1,221,262

     $   168,850          $      1,052,412                  623  %
Earnings per share attributable to HF Sinclair
stockholders:
Basic                                                     $       5.43          $      1.03          $           4.40                  427  %
Diluted                                                   $       5.43          $      1.03          $           4.40                  427  %
Cash dividends declared per common share                  $       0.40          $         -          $           0.40                  100  %
Average number of common shares outstanding:
Basic                                                          222,952              162,523                    60,429                   37  %
Diluted                                                        222,952              162,523                    60,429                   37  %



                                       43

————————————————– ——————————

  Table of Content

                                                                    Six Months Ended
                                                                        June 30,                                  Change from 2021
                                                               2022                  2021                  Change                  Percent
                                                                                  (In thousands, except per share data)
Sales and other revenues                                  $ 18,620,910          $ 8,081,416                10,539,494                    130  %
Operating costs and expenses:
Cost of products sold (exclusive of depreciation
and amortization):
Cost of products sold (exclusive of lower of cost
or market inventory valuation adjustment)                   15,081,927            6,786,034                 8,295,893                    122
Lower of cost or market inventory valuation
adjustment                                                      25,992             (318,862)                  344,854                   (108)
                                                            15,107,919            6,467,172                 8,640,747                    134
Operating expenses (exclusive of depreciation and
amortization)                                                1,083,561              734,100                   349,461                     48
Selling, general and administrative expenses
(exclusive of depreciation and amortization)                   221,297              159,729                    61,568                     39
Depreciation and amortization                                  308,645              248,121                    60,524                     24

Total operating costs and expenses                          16,721,422            7,609,122                 9,112,300                    120
Income from operations                                       1,899,488              472,294                 1,427,194                    302

Other income (expense):
Earnings of equity method investments                            9,073                5,186                     3,887                     75
Interest income                                                  2,841                2,060                       781                     38
Interest expense                                               (73,820)             (67,328)                   (6,492)                    10

Gain on tariff settlement                                            -               51,500                   (51,500)                  (100)

Loss on foreign currency transactions                             (766)                (734)                      (32)                     4
Gain on sale of assets and other                                 6,215                9,817                    (3,602)                   (37)
                                                               (56,457)                 501                   (56,958)               (11,369)
Income before income taxes                                   1,843,031              472,795                 1,370,236                    290
Income tax expense                                             404,822               95,178                   309,644                    325
Net income                                                   1,438,209              377,617                 1,060,592                    281
Less net income attributable to noncontrolling
interest                                                        56,973               60,550                    (3,577)                    (6)

Net income attributable to HF Sinclair shareholders $1,381,236

     $   317,067          $      1,064,169                    336  %

Earnings (loss) per share attributable to HF
Sinclair stockholders:
Basic                                                     $       6.86          $      1.92          $           4.94                    257  %
Diluted                                                   $       6.86          $      1.92          $           4.94                    257  %
Cash dividends declared per common share                  $       0.40          $      0.35          $           0.05                     14  %
Average number of common shares outstanding:
Basic                                                          199,149              162,501                    36,648                     23  %
Diluted                                                        199,149              162,501                    36,648                     23  %




Balance Sheet Data

                                June 30, 2022      December 31, 2021
                                 (Unaudited)
                                           (In thousands)
Cash and cash equivalents      $   1,702,286      $          234,444
Working capital                $   3,636,627      $        1,696,990
Total assets                   $  19,177,854      $       12,916,613
Long-term debt                 $   3,348,103      $        3,072,737
Total equity                   $   9,874,910      $        6,294,465



                                       44
--------------------------------------------------------------------------------
  Table of Content
Other Financial Data

                                                       Three Months Ended June 30,                      Six Months Ended June 30,
                                                        2022                     2021                    2022                   2021
                                                                                     (In thousands)
Net cash provided by operating
activities                                     $     1,528,356               $  427,755          $    1,989,392             $  490,081
Net cash used for investing activities         $      (153,835)              $ (175,248)         $     (539,011)            $ (322,312)
Net cash provided by (used for)
financing activities                           $      (261,214)              $  (48,917)         $       20,172             $ (138,478)
Capital expenditures                           $       159,444               $  182,880          $      317,740             $  332,841
EBITDA (1)                                     $     1,805,916               $  444,290          $    2,165,682             $  725,634



(1)Earnings before interest, taxes, depreciation and amortization, which we
refer to as "EBITDA," is calculated as net income attributable to HF Sinclair
stockholders plus (i) interest expense, net of interest income, (ii) income tax
provision, and (iii) depreciation and amortization. EBITDA is not a calculation
provided for under GAAP; however, the amounts included in the EBITDA calculation
are derived from amounts included in our consolidated financial statements.
EBITDA should not be considered as an alternative to net income or operating
income as an indication of our operating performance or as an alternative to
operating cash flow as a measure of liquidity. EBITDA is not necessarily
comparable to similarly titled measures of other companies. EBITDA is presented
here because it is a widely used financial indicator used by investors and
analysts to measure performance. EBITDA is also used by our management for
internal analysis and as a basis for financial covenants. EBITDA presented above
is reconciled to net income under "Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles" following Item 3 of Part I of this
Form 10-Q.

Segment Operating Data

Our operations are organized into five reportable segments, Refining, Renewable Energy, Marketing, Lubricants and Specialty Products, and HEP. See Note 15 “Segment Information” in the Notes to the Consolidated Financial Statements for additional information on our reportable segments.

Refine segment operational data


The disaggregation of our refining geographic operating data is presented in two
regions, Mid-Continent and West, to best reflect the economic drivers of our
refining operations. The Mid-Continent region is comprised of the El Dorado and
Tulsa Refineries. The West region is comprised of the Puget Sound, Navajo, Woods
Cross, Sinclair and Casper Refineries. The Puget Sound Refinery was acquired
November 1, 2021, and thus is included for the period January 1, 2022 to
June 30, 2022. In addition, the refinery operations of the Sinclair and Casper
Refineries are included for the period March 14, 2022 (date of acquisition)
through June 30, 2022. The following tables set forth information, including
non-GAAP performance measures, about our consolidated refinery operations. The
cost of products and refinery gross and net operating margins do not include the
non-cash effects of lower of cost or market inventory valuation adjustments and
depreciation and amortization. Reconciliations to amounts reported under GAAP
are provided under "Reconciliations to Amounts Reported Under Generally Accepted
Accounting Principles" following Item 3 of Part I of this Form 10-Q.

                                                    Three Months Ended June 30,                 Six Months Ended June 30,
                                                     2022                  2021                2022 (8)               2021
Mid-Continent Region
Crude charge (BPD) (1)                               277,930              278,380               284,030              247,500
Refinery throughput (BPD) (2)                        292,570              293,050               298,950              257,030
Sales of produced refined products (BPD)
(3)                                                  279,170              287,680               279,710              249,400
Refinery utilization (4)                               106.9   %            107.1  %              109.2   %             95.2  %

Average per produced barrel (5)
Refinery gross margin                          $       32.53           $    10.82          $      20.96           $     8.99
Refinery operating expenses (6)                         6.21                 5.27                  6.11                 7.22
Net operating margin                           $       26.32           $     5.55          $      14.85           $     1.77

Refinery operating expenses per
throughput barrel (7)                          $        5.92           $     5.18          $       5.72           $     6.89


                                       45

————————————————– ——————————

  Table of Content
                                                           Three Months Ended June 30,                  Six Months Ended June 30,
                                                           2022                  2021                2022 (8)                2021
Mid-Continent Region
Feedstocks:
Sweet crude oil                                                 54  %                 64  %                 58  %                 62  %
Sour crude oil                                                  22  %                 14  %                 18  %                 14  %
Heavy sour crude oil                                            19  %                 17  %                 19  %                 19  %
Other feedstocks and blends                                      5  %                  5  %                  5  %                  5  %
Total                                                          100  %                100  %                100  %                100  %

Sales of produced refined products:
Gasolines                                                       49  %                 51  %                 50  %                 51  %
Diesel fuels                                                    35  %                 34  %                 34  %                 34  %
Jet fuels                                                        5  %                  4  %                  6  %                  5  %
Fuel oil                                                         1  %                  1  %                  1  %                  1  %
Asphalt                                                          4  %                  2  %                  3  %                  2  %
Base oils                                                        4  %                  4  %                  4  %                  4  %
LPG and other                                                    2  %                  4  %                  2  %                  3  %
Total                                                          100  %                100  %                100  %                100  %


West Region
Crude charge (BPD) (1)                            349,380             137,970             292,450             134,940
Refinery throughput (BPD) (2)                     370,740             151,680             315,350             148,160
Sales of produced refined products (BPD)
(3)                                               376,400             156,260             309,530             150,290
Refinery utilization (4)                             83.6  %             95.2  %             77.6  %             93.1  %

Average per produced barrel (5)
Refinery gross margin                          $    39.21          $    13.35          $    30.42          $    11.88
Refinery operating expenses (6)                      9.10                6.57                9.19                7.29
Net operating margin                           $    30.11          $     

6.78 $21.23 $4.59


Refinery operating expenses per
throughput barrel (7)                          $     9.24          $     6.77          $     9.02          $     7.40

Feedstocks:
Sweet crude oil                                        33  %               22  %               29  %               23  %
Sour crude oil                                         46  %               59  %               50  %               59  %
Heavy sour crude oil                                   10  %                -  %                9  %                -  %
Black wax crude oil                                     5  %               10  %                5  %                9  %
Other feedstocks and blends                             6  %                9  %                7  %                9  %
Total                                                 100  %              100  %              100  %              100  %

Sales of produced refined products:
Gasolines                                              53  %               52  %               53  %               53  %
Diesel fuels                                           33  %               37  %               31  %               37  %
Jet fuels                                               5  %                -  %                5  %                -  %
Fuel oil                                                2  %                3  %                5  %                3  %
Asphalt                                                 3  %                5  %                2  %                4  %
LPG and other                                           4  %                3  %                4  %                3  %
Total                                                 100  %              100  %              100  %              100  %


                                       46

————————————————– ——————————

Contents

                                                     Three Months Ended June 30,                 Six Months Ended June 30,
                                                      2022                  2021                2022 (8)               2021
Consolidated
Crude charge (BPD) (1)                                627,310              416,350               576,480              382,440
Refinery throughput (BPD) (2)                         663,310              444,730               614,300              405,190
Sales of produced refined products (BPD)
(3)                                                   655,570              443,940               589,240              399,690
Refinery utilization (4)                                 92.5   %            102.8  %               90.5   %             94.4  %

Average per produced barrel (5)
Refinery gross margin                           $       36.36           $    11.71          $      25.93           $    10.07
Refinery operating expenses (6)                          7.87                 5.73                  7.73                 7.25
Net operating margin                            $       28.49           $     5.98          $      18.20           $     2.82

Refinery operating expenses per
throughput barrel (7)                           $        7.77           $     5.72          $       8.25           $     7.07


Feedstocks:
Sweet crude oil                             42  %      50  %      43  %      48  %
Sour crude oil                              36  %      30  %      34  %      30  %
Heavy sour crude oil                        14  %      11  %      14  %      12  %
Black wax crude oil                          3  %       3  %       3  %       3  %
Other feedstocks and blends                  5  %       6  %       6  %       7  %
Total                                      100  %     100  %     100  %     100  %

Sales of produced refined products:
Gasolines                                   51  %      51  %      51  %      52  %
Diesel fuels                                34  %      35  %      32  %      35  %
Jet fuels                                    5  %       3  %       6  %       3  %
Fuel oil                                     2  %       1  %       3  %       1  %
Asphalt                                      3  %       3  %       3  %       3  %
Base oils                                    2  %       3  %       2  %       3  %
LPG and other                                3  %       4  %       3  %       3  %
Total                                      100  %     100  %     100  %     100  %



(1)Crude charge represents the barrels per day of crude oil processed at our
refineries.
(2)Refinery throughput represents the barrels per day of crude and other
refinery feedstocks input to the crude units and other conversion units at our
refineries.
(3)Represents barrels sold of refined products produced at our refineries
(including HFC Asphalt and inter-segment sales) and does not include volumes of
refined products purchased for resale or volumes of excess crude oil sold.
(4)Represents crude charge divided by total crude capacity (BPSD). As a result
of our acquisition of the Puget Sound Refinery on November 1, 2021, and the
Sinclair and Casper Refineries on March 14, 2022, our consolidated crude
capacity increased from 405,000 BPSD at June 30, 2021 to 678,000 BPSD at
June 30, 2022.
(5)Represents average amount per produced barrel sold, which is a non-GAAP
measure. Reconciliations to amounts reported under GAAP are provided under
"Reconciliations to Amounts Reported Under Generally Accepted Accounting
Principles" following Item 3 of Part I of this Form 10-Q.
(6)Represents total Refining segment operating expenses, exclusive of
depreciation and amortization, divided by sales volumes of refined products
produced at our refineries.
(7)Represents total Refining segment operating expenses, exclusive of
depreciation and amortization, divided by refinery throughput.
(8)We acquired the Sinclair and Casper Refineries on March 14, 2022. Refining
operating data for the six months ended June 30, 2022 includes crude oil and
feedstocks processed and refined products sold at our Sinclair and Casper
Refineries for the period March 14, 2022 through June 30, 2022 only, averaged
over the 181 days in the six months ended June 30, 2022.

                                       47
--------------------------------------------------------------------------------
  Table of Content
Renewables Operating Data

The following table provides information about our renewable energy operations and includes our Sinclair companies for the period March 14, 2022 (the date of acquisition) until June 30, 2022.

                                                                  Three Months Ended          Six Months Ended
                                                                    June 30, 2022               June 30, 2022
Renewables
Sales volumes (in thousand gallons)                                          25,688                    30,632
Average per produced gallon (1)
Renewables gross margin                                         $              0.07          $           0.16
Renewables operating expenses (2)                                              1.14                      1.84
Net operating margin                                            $             (1.07)         $          (1.68)


(1)Represents average quantity per gallon product sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following item 3 in Part I of this Form 10-Q. (2) Represents the total operating expenses of the renewable energy sector, excluding depreciation, divided by the sales volumes of renewable diesel produced in our renewable diesel units.

Marketing operating data

The following table presents information about our marketing operations and includes our Sinclair business for the period March 14, 2022 (the date of acquisition) until June 30, 2022.

                                                               Three Months Ended          Six Months Ended
                                                                  June 30, 2022              June 30, 2022
Marketing
Number of branded sites at period end                                      1,329                     1,329
Sales volumes (in thousand gallons)                                         335,106                   420,019
Margin per gallon of sales (1)                                $             0.07          $           0.07



(1)Represents average quantity per gallon sold, which is a non-GAAP measure. Reconciliations to amounts reported under GAAP are provided under “Reconciliations to Amounts Reported Under Generally Accepted Accounting Principles” following item 3 in Part I of this Form 10-Q.

Lubricants and Specialty Products Operational Data


The following table sets forth information about our lubricants and specialty
products operations.

                                                       Three Months Ended June 30,                       Six Months Ended June 30,
                                                       2022                    2021                    2022                     2021
Lubricants and Specialty Products
Throughput (BPD)                                         20,260                    19,310                19,800                   19,860
Sales of produced refined products (BPD)                 34,000                    36,670                34,510                   34,630

Sales of produced refined products:
Finished products                                            53  %                  51  %                    52  %                    52  %
Base oils                                                    27  %                  29  %                    29  %                    27  %
Other                                                        20  %                  20  %                    19  %                    21  %
Total                                                       100  %                 100  %                   100  %                   100  %



                                       48

————————————————– ——————————

Table of Contents Additional financial data attributable to our Lubricants and Specialty Products segment is presented below.

                                                                                                                     Total Lubricants
                                                                      Rack Forward                                     and Specialty
                                               Rack Back (1)              (2)               Eliminations (3)             Products
                                                                                  (In thousands)
Three months ended June 30, 2022
Sales and other revenues                     $      358,628          $   754,442          $        (263,129)         $      849,941
Cost of products sold                        $      249,095          $   590,462          $        (263,129)         $      576,428
Operating expenses                           $       38,073          $    36,397          $               -          $       74,470
Selling, general and administrative
expenses                                     $        5,636          $    37,919          $               -          $       43,555
Depreciation and amortization                $        7,712          $    12,893          $               -          $       20,605

Income from operations                       $       58,112          $    76,771          $               -          $      134,883

Three months ended June 30, 2021
Sales and other revenues                     $      254,485          $   629,211          $        (214,507)         $      669,189
Cost of products sold                        $      163,280          $   542,445          $        (214,507)         $      491,218
Operating expenses                           $       29,106          $    32,204          $               -          $       61,310
Selling, general and administrative
expenses                                     $        5,914          $    31,669          $               -          $       37,583
Depreciation and amortization                $        6,230          $    12,922          $               -          $       19,152

Income from operations                       $       49,955          $     9,971          $               -          $       59,926


Six months ended June 30, 2022
Sales and other revenues                     $  637,214          $ 

1,442,389 ($474,653) $1,604,950
Cost of goods sold

                        $  427,634          $ 

1,128,024 ($474,653) $1,081,005
Operating Expenses

                           $   68,887          $    71,584          $        -          $   140,471
Selling, general and administrative
expenses                                     $   11,843          $    73,461          $        -          $    85,304
Depreciation and amortization                $   15,269          $    25,930          $        -          $    41,199

Income from operations                       $  113,581          $   143,390          $        -          $   256,971

Six months ended June 30, 2021
Sales and other revenues                     $  427,927          $ 

1,112,457 ($346,632) $1,193,752
Cost of goods sold

                        $  295,812          $   873,561          $ (346,632)         $   822,741
Operating expenses                           $   57,727          $    64,336          $        -          $   122,063
Selling, general and administrative
expenses                                     $   12,653          $    70,483          $        -          $    83,136
Depreciation and amortization                $   13,535          $    25,738          $        -          $    39,273

Income from operations                       $   48,200          $    78,339          $        -          $   126,539


(1)Rack Back consists of our Petro-Canada Lubricants, Inc. ("PCLI") base oil
production activities, by-product sales to third parties and intra-segment base
oil sales to Rack Forward.
(2)Rack Forward activities include the purchase of base oils from Rack Back and
the blending, packaging, marketing and distribution and sales of finished
lubricants and specialty products to third parties.
(3)Intra-segment sales of Rack Back produced base oils to Rack Forward are
eliminated under the "Eliminations" column.


Results of operations – Quarters ended June 30, 2022 Compared to the three months ended June 30, 2021

Summary

Net income attributable to HF Sinclair stockholders for the three months ended
June 30, 2022 was $1,221.3 million ($5.43 per basic and diluted share), an
$1,052.4 million increase from a net income of $168.9 million ($1.03 per basic
and diluted share) for the three months ended June 30, 2021. The increase in net
income was principally driven by stronger product demand and higher sales prices
which resulted in an increase in refinery gross margins and higher refined
product sales volumes. Lower of cost or market inventory reserve adjustments
related to our renewables inventories decreased pre-tax earnings by $34.5
million for the three months ended June 30, 2022 and lower of cost or market
inventory adjustments related to our refining inventories increased pre-tax
earnings by $118.8 million for the three months ended June 30, 2021. Refinery
gross margins for the three months ended June 30, 2022 increased to $36.36 per
produced barrel sold from $11.71 for the three months ended June 30, 2021.

                                       49
--------------------------------------------------------------------------------
  Table of Content
Sales and Other Revenues
Sales and other revenues increased 144% from $4,577.1 million for the three
months ended June 30, 2021 to $11,162.2 million for the three months ended
June 30, 2022 principally due to the increase in sales prices and higher refined
product sales volumes, primarily due to the acquisition of the Puget Sound
Refinery and the Acquired Sinclair Businesses. Sales and other revenues included
$1,336.3 million, $845.0 million and $115.9 million in unaffiliated revenues
related to our Marketing, Lubricants and Specialty Products and Renewables
segments, respectively, for the three months ended June 30, 2022. Sales and
other revenues included $662.8 million in unaffiliated revenues related to our
Lubricants and Specialty Products segment for the three months ended June 30,
2021.

Cost of Products Sold
Total cost of products sold increased 132% from $3,706.9 million for the three
months ended June 30, 2021 to $8,614.5 million for the three months ended
June 30, 2022 principally due to higher crude oil costs and higher refined
product sales volumes, primarily due to the acquisition of the Puget Sound
Refinery and the Acquired Sinclair Businesses. During the second quarters of
2022 and 2021, we recognized a lower of cost or market inventory valuation
adjustment charge related to our renewables inventories of $34.5 million and a
benefit related to our refining inventories of $118.8 million, respectively.

Gross Refinery Margins
Gross refinery margin per produced barrel sold increased 211% from $11.71 for
the three months ended June 30, 2021 to $36.36 for the three months ended
June 30, 2022. The increase was due to the effects of an increase in the average
per barrel sold sales price during the current year quarter, partially offset by
increased crude oil and feedstock prices. Gross refinery margin per barrel does
not include the non-cash effects of lower of cost or market inventory valuation
adjustments or depreciation and amortization. See "Reconciliations to Amounts
Reported Under Generally Accepted Accounting Principles" following Item 3 of
Part I of this Form 10-Q for a reconciliation to the income statement of sale
prices of products sold and cost of products purchased.

Operating Expenses
Operating expenses, exclusive of depreciation and amortization, increased 81%
from $334.2 million for the three months ended June 30, 2021 to $606.1 million
for the three months ended June 30, 2022 primarily due to the acquisition of the
Puget Sound Refinery and the Acquired Sinclair Businesses.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 43% from $77.8 million
for the three months ended June 30, 2021 to $110.9 million for the three months
ended June 30, 2022 primarily due to higher employee related expenses from
recent acquisitions and professional services and legal costs incurred in
connection with the Sinclair Transactions. See Note 2 "Acquisitions" in the
Notes to Consolidated Financial Statements for additional information on this
acquisition.

Depreciation and Amortization Expenses
Depreciation and amortization increased 32% from $124.0 million for the three
months ended June 30, 2021 to $164.0 million for the three months ended June 30,
2022. This increase was due principally to depreciation and amortization
attributable to the acquisition of the Puget Sound Refinery, the Acquired
Sinclair Businesses and newly capitalized projects related to our renewable
diesel units.

Debit interest The debit interest has been $39.0 million for the three months ended June 30, 2022
compared to $28.9 million for the three months ended June 30, 2021. This increase is mainly due to the April 2022 Show of $400 million the aggregate principal amount of the 6.375% HEP Senior Notes due in April 2027.

For the three months ended June 30, 2022 and 2021, interest expense attributable to our HEP segment was $20.4 million and $13.9 millionrespectively.


Gain (Loss) on Foreign Currency Transactions
Remeasurement adjustments resulting from the foreign currency conversion of the
intercompany financing notes payable by PCLI net of mark-to-market valuations on
foreign exchange forward contracts with banks which hedge the foreign currency
exposure on these intercompany notes was a net loss of $0.9 million and a net
gain of $0.6 million for the three months ended June 30, 2022 and 2021,
respectively. For the three months ended June 30, 2022 and 2021, gain (loss) on
foreign currency transactions included a gain of $13.0 million and a loss of
$6.1 million, respectively, on foreign exchange forward contracts (utilized as
an economic hedge).

                                       50
--------------------------------------------------------------------------------
  Table of Content
Income Taxes
For the three months ended June 30, 2022, we recorded an income tax expense of
$383.5 million compared to $123.5 million for the three months ended June 30,
2021. This increase was principally due to higher pre-tax income during the
three months ended June 30, 2022 compared to the same period of 2021. Our
effective tax rates were 23.4% and 38.8% for the three months ended June 30,
2022 and 2021, respectively. The decrease in the effective tax rate is
principally due to the relationship between the pre-tax results and the earnings
attributable to the noncontrolling interest that is not included in income for
tax purposes.


Results of operations – Half-year ended June 30, 2022 Compared to the half-year ended June 30, 2021

Summary

Net income attributable to HF Sinclair stockholders for the six months ended
June 30, 2022 was $1,381.2 million ($6.86 per basic and diluted share), a
$1,064.2 million increase compared to net income of $317.1 million ($1.92 per
basic and diluted share) for the six months ended June 30, 2021. The increase in
net income was principally driven by stronger product demand and higher sales
prices which resulted in an increase in refinery gross margins and higher
refined product sales volumes. Lower of cost or market inventory reserve
adjustments related to our renewables inventories decreased pre-tax earnings by
$26.0 million for the six months ended June 30, 2022 and lower of cost or market
inventory adjustment related to our refining inventories increased pre-tax
earnings by $318.9 million and for the six months ended June 30, 2021. Net
income for the six months ended June 30, 2021 was impacted by winter storm Uri,
which increased natural gas costs across our refining system. Refinery gross
margins for the six months ended June 30, 2022 increased to $25.93 per barrel
sold from $10.07 for the six months ended June 30, 2021.

Sales and Other Revenues
Sales and other revenues increased 130% from $8,081.4 million for the six months
ended June 30, 2021 to $18,620.9 million for the six months ended June 30, 2022
principally due to the increase in sales prices and higher refined product sales
volumes, in part due to the acquisition of the Puget Sound Refinery and the
Acquired Sinclair Businesses. Sales and other revenues included $1,613.3
million, $1,598.6 million and $144.3 million in unaffiliated revenues related to
our Marketing, Lubricants and Specialty Products and Renewables segments,
respectively, for the six months ended June 30, 2022. Sales and other revenues
included $1,184.8 million in unaffiliated revenues related to our Lubricants and
Specialty Products segment for the six months ended June 30, 2021.

Cost of Products Sold
Total cost of products sold increased 134% from $6,467.2 million for the six
months ended June 30, 2021 to $15,107.9 million for the six months ended
June 30, 2022 principally due to higher crude oil costs and higher refined
product sales volumes, in part due to the acquisition of the Puget Sound
Refinery and the Acquired Sinclair Businesses. During the six months ended
June 30, 2022 and 2021, we recognized a lower of cost or market inventory
valuation adjustment charge related to our renewables inventories of $26.0
million and a benefit related to our refining inventories of $318.9 million,
respectively.

Gross Refinery Margins
Gross refinery margin per barrel sold increased 157% from $10.07 for the six
months ended June 30, 2021 to $25.93 for the six months ended June 30, 2022
principally due to the increase in the average per barrel sold sales prices
during the current period, partially offset by the increase in crude oil and
feedstock prices. Gross refinery margin per barrel does not include the non-cash
effects of lower of cost or market inventory valuation adjustments or
depreciation and amortization. See "Reconciliations to Amounts Reported Under
Generally Accepted Accounting Principles" following Item 3 of Part I of this
Form 10-Q for a reconciliation to the income statement of sales prices of
products sold and cost of products purchased.

Operating Expenses
Operating expenses, exclusive of depreciation and amortization, increased 48%
from $734.1 million for the six months ended June 30, 2021 to $1,083.6 million
for the six months ended June 30, 2022 primarily due to the acquisition of the
Puget Sound Refinery and the Acquired Sinclair Businesses.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 39% from $159.7 million
for the six months ended June 30, 2021 to $221.3 million for the six months
ended June 30, 2022 primarily due to higher employee related expenses from
recent acquisitions and professional services and legal costs incurred in
connection with the Sinclair Transactions. See Note 2 "Acquisitions" in the
Notes to Consolidated Financial Statements for additional information on these
acquisitions.

                                       51
--------------------------------------------------------------------------------
  Table of Content
Depreciation and Amortization Expenses
Depreciation and amortization increased 24% from $248.1 million for the six
months ended June 30, 2021 to $308.6 million for the six months ended June 30,
2022. This increase was due principally to depreciation and amortization
attributable to the acquisition of the Puget Sound Refinery, the Acquired
Sinclair Businesses and newly capitalized projects related to our renewable
diesel units.

Interest Expense
Interest expense was $73.8 million for the six months ended June 30, 2022
compared to $67.3 million for the six months ended June 30, 2021. This increase
was primarily due to the April 2022 issuance of $400 million in aggregate
principal amount of HEP's 6.375% senior notes maturing in April 2027.

For the six months ended June 30, 2022 and 2021, interest expense attributable to our HEP segment was $34.0 million and $27.2 millionrespectively.


Gain on Tariff Settlement
For the six months ended June 30, 2021, we recorded a gain of $51.5 million upon
the settlement of a tariff rate case. See Note 14 "Contingencies" in the Notes
to Consolidated Financial Statements for additional information on this case and
settlement.

Gain (Loss) on Foreign Currency Transactions
Remeasurement adjustments resulting from the foreign currency conversion of the
intercompany financing notes payable by PCLI net of mark-to-market valuations on
foreign exchange forward contracts with banks which hedge the foreign currency
exposure on these intercompany notes were net losses of $0.8 million and $0.7
million for the six months ended June 30, 2022 and 2021, respectively. For the
six months ended June 30, 2022 and 2021, losses on foreign currency transactions
included a net gain of $6.5 million and a loss of $12.8 million, respectively,
on foreign exchange forward contracts (utilized as an economic hedge).

Income Taxes
For the six months ended June 30, 2022, we recorded an income tax expense of
$404.8 million compared to $95.2 million for the six months ended June 30, 2021.
This increase was principally due to higher pre-tax income during the six months
ended June 30, 2022 compared to the same period of 2021. Our effective tax rates
were 22.0% and 20.1% for the six months ended June 30, 2022 and 2021,
respectively. The year-over-year increase in the effective tax rate is
principally due to the relationship between the pre-tax results and the earnings
attributable to the noncontrolling interest that is not included in income for
tax purposes.


CASH AND CAPITAL RESOURCES


HF Sinclair Credit Agreement
On April 27, 2022, after giving effect to the consummation of the exchange
offers and the issuance of the HF Sinclair Senior Notes (as defined below), HF
Sinclair entered into a $1.65 billion senior unsecured revolving credit facility
maturing in April 2026 (the "HF Sinclair Credit Agreement"). The HF Sinclair
Credit Agreement may be used for revolving credit loans and letters of credit
from time to time and is available to fund general corporate purposes. The HF
Sinclair Credit Agreement replaced the $1.35 billion senior unsecured revolving
credit facility of HollyFrontier, which was terminated on April 27, 2022. At
June 30, 2022, HF Sinclair was in compliance with all covenants, had no
outstanding borrowings and had outstanding letters of credit totaling $2.3
million under the HF Sinclair Credit Agreement.

HollyFrontier Bond Exchange
On April 27, 2022, HF Sinclair completed its offers to exchange any and all
outstanding HollyFrontier 2.625% senior notes maturing October 2023 (the
"HollyFrontier 2.625% Senior Notes"), 5.875% senior notes maturing April 2026
(the "HollyFrontier 5.875% Senior Notes") and 4.500% senior notes maturing
October 2030 (the "HollyFrontier 4.500% Senior Notes") (and, collectively, the
"HollyFrontier Senior Notes") for 2.625% senior notes maturing October 2023 (the
"HF Sinclair 2.625% Senior Notes"), 5.875% senior notes maturing April 2026 (the
"HF Sinclair 5.875% Senior Notes") and 4.500% senior notes maturing October 2030
(the "HF Sinclair 4.500% Senior Notes") (and, collectively, the "HF Sinclair
Senior Notes") to be issued by HF Sinclair and cash. Additionally, HF Sinclair
solicited consents to adopt certain amendments to the indenture governing the
HollyFrontier Senior Notes.

                                       52
--------------------------------------------------------------------------------
  Table of Content
Following the settlement of the exchange offers and consent solicitations, the
aggregate principal amount of the HF Sinclair Senior Notes consisted of the
following:

Series title of HF Sinclair Senior Notes June 30, 2022

                                                    (In thousands)

2.625% HF Sinclair Senior Notes due 2023 $290,348
5.875% HF Sinclair Senior Notes due 2026 $797,100
4.500% HF Sinclair Senior Notes due 2030 $325,034




The HF Sinclair Senior Notes are unsecured and unsubordinated obligations of
ours and rank equally with all our other existing and future unsecured and
unsubordinated indebtedness. Each series of HF Sinclair Senior Notes has the
same interest rate (including interest rate adjustment provisions, as
applicable), interest payment dates, maturity date and redemption terms as the
corresponding series of HollyFrontier Senior Notes. The HF Sinclair Senior Notes
were issued in exchange for the HollyFrontier Senior Notes pursuant to a private
exchange offer exempt from registration under the Securities Act of 1933, as
amended.

In connection with the issuance of the HF Sinclair Senior Notes, HF Sinclair
agreed to use its commercially reasonable efforts to file (and have declared
effective) a registration statement with respect to a registered offer to
exchange the HF Sinclair Senior Notes for substantially identical registered
notes. HF Sinclair will be obligated to pay additional interest if it does not
complete the exchange offer on or prior to April 27, 2023, or if a shelf
registration statement with respect to the HF Sinclair Senior Notes (if required
to be filed) is not declared effective by the dates indicated in the
Registration Rights Agreement.

Following settlement of the exchange offers and consent solicitations, the aggregate principal amount of the HollyFrontier The senior notes that were not tendered and exchanged and that remain outstanding consisted of the following:

Series title of HollyFrontier Senior Notes June 30, 2022

                                                      (In thousands)

2.625% HollyFrontier Senior Notes due 2023 $59,652
5.875% HollyFrontier Senior Notes due 2026 $202,900
4.500% HollyFrontier Senior Notes due 2030 $74,966




In connection with the exchange offers and consent solicitations, HollyFrontier
amended the indenture governing the HollyFrontier Senior Notes to eliminate (i)
substantially all of the restrictive covenants, (ii) certain of the events which
may lead to an "Event of Default", (iii) the SEC reporting covenant and (iv)
with respect to the HollyFrontier 2.625% Senior Notes and the HollyFrontier
4.500% Senior Notes only, the offer to repurchase such senior notes upon certain
change of control triggering events.

HF Sinclair Financing Arrangements
Certain of our wholly owned subsidiaries entered into financing arrangements
whereby such subsidiaries sold a portion of their precious metals catalyst to a
financial institution and then leased back the precious metals catalyst in
exchange for cash. The volume of the precious metals catalyst and the lease rate
are fixed over the term of each lease, and the lease payments are recorded as
interest expense. The current leases mature in one year or less. Upon maturity,
we must either satisfy the obligation at fair market value or refinance to
extend the maturity.

HEP Credit Agreement
HEP has a $1.2 billion senior secured revolving credit facility maturing in July
2025 (the "HEP Credit Agreement") and is available to fund capital expenditures,
investments, acquisitions, distribution payments, working capital and for
general partnership purposes. It is also available to fund letters of credit up
to a $50 million sub-limit and has an accordion feature that allows HEP to
increase the commitments under the HEP Credit Agreement up to a maximum amount
of $1.7 billion. During the six months ended June 30, 2022, HEP had net
repayments of $119.0 million under the HEP Credit Agreement. At June 30, 2022,
HEP was in compliance with all of its covenants, had outstanding borrowings of
$721.0 million and no outstanding letters of credit under the HEP Credit
Agreement.

                                       53
--------------------------------------------------------------------------------
  Table of Content
HEP Senior Notes
On April 8, 2022, HEP closed a private placement of $400 million in aggregate
principal amount of 6.375% senior notes maturing April 2027 (the "HEP 6.375%
Senior Notes") at par for net proceeds of approximately $393 million, after
deducting the initial purchasers' discounts and commissions and estimated
offering expenses. The HEP 6.375% Senior Notes are unsecured and impose certain
restrictive covenants, including limitations on HEP's ability to incur
additional indebtedness, make investments, sell assets, incur certain liens, pay
distributions, enter into transactions with affiliates and enter into mergers.
The net proceeds from the offering of the HEP 6.375% Senior Notes were used to
partially repay outstanding borrowings under the HEP Credit Agreement.

See note 10 “Debt” of the notes to the consolidated financial statements for more information on our debt instruments.

Liquidity

We believe our current cash and cash equivalents, along with future internally
generated cash flow and funds available under our credit facilities, will
provide sufficient resources to fund currently planned capital projects and our
liquidity needs for the foreseeable future. We expect that, to the extent
necessary, we can raise additional funds from time to time through equity or
debt financings in the public and private capital markets. In addition,
components of our long-term growth strategy include the optimization of existing
units at our facilities and selective acquisition of complementary assets for
our refining operations intended to increase earnings and cash flow. We also
expect to use cash for payment of cash dividends, which are at the discretion of
our Board of Directors, and for the repurchase of common stock under our share
repurchase program.

Our autonomous liquidity (excluding HEP) was around $3.34 billion at
June 30, 2022consisting of cash and cash equivalents of $1.69 billion and one not drawn $1.65 billion credit facility.


We consider all highly-liquid instruments with a maturity of three months or
less at the time of purchase to be cash equivalents. These primarily consist of
investments in conservative, highly-rated instruments issued by financial
institutions, government and corporate entities with strong credit standings and
money market funds. Cash equivalents are stated at cost, which approximates
market value.

In November 2019, our Board of Directors approved a $1.0 billion share
repurchase program, which replaced all existing share repurchase programs,
authorizing us to repurchase common stock in the open market or through
privately negotiated transactions. In June 2022, our Board of Directors
determined that privately negotiated repurchases from REH Company (formerly
known as The Sinclair Companies) are also authorized under the share repurchase
program, subject to REH Company's interest and other limitations. The timing and
amount of share repurchases, including those from REH Company, will depend on
market conditions and corporate, tax, regulatory and other relevant
considerations. This program may be discontinued at any time by our Board of
Directors. During the second quarter of 2022, we repurchased 2,730,000 shares of
common stock for $132.3 million in connection with our share repurchase program.
As of June 30, 2022, we had remaining authorization to repurchase up to $867.7
million under this stock repurchase program, of which we repurchased 2,965,642
shares for $132.9 million in July 2022. In addition, we are authorized by our
Board of Directors to repurchase shares in an amount sufficient to offset shares
issued under our compensation programs.

Cash Flow – Operating Activities


Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021
Net cash flows provided by operating activities were $1,989.4 million for the
six months ended June 30, 2022 compared to $490.1 million for the six months
ended June 30, 2021, an increase of $1,499.3 million. The increase in operating
cash flows was primarily due to the increase in gross refinery margins,
partially offset by higher operating expenses. In addition, we received
$83 million in cash tax benefit during the six months ended June 30, 2022 from
the net operating loss carryback provisions under the CARES Act.

Changes in working capital increased operating cash flows by $246.3 million and
$149.0 million for the six months ended June 30, 2022 and 2021, respectively.
The increase for the current period is partially due to $83 million in cash tax
benefit received during the six months ended June 30, 2022 from the net
operating loss carryback provisions under the CARES Act.

                                       54
--------------------------------------------------------------------------------
  Table of Content
Cash Flows - Investing Activities and Planned Capital Expenditures

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021
For the six months ended June 30, 2022, our net cash flows used for investing
activities were $539.0 million. On March 14, 2022, we closed the Sinclair
Transactions and paid cash of $231.2 million. The remainder of the purchase
consideration was funded with the issuance of HF Sinclair common stock and HEP
common units. See Note 2 "Acquisitions" in the Notes to Consolidated Financial
Statements for additional information on the Sinclair Transactions. Cash
expenditures for properties, plants and equipment for the six months ended
June 30, 2022 were $317.7 million, which include HEP capital expenditures of
$23.2 million for the six months ended June 30, 2022.

For the six months ended June 30, 2021, our net cash flows used for investing
activities were $322.3 million. Cash expenditures for properties, plants and
equipment for the six months of ended June 30, 2021 were $332.8 million
primarily due to expenditures related to our renewable diesel units. Cash
expenditures for properties, plants and equipment include HEP capital
expenditures of $57.7 million for the six months ended June 30, 2021.

HF Sinclair Corporation
Each year our Board of Directors approves our annual capital budget which
includes specific projects that management is authorized to undertake. When
conditions warrant or as new opportunities arise, additional projects may be
approved. The funds appropriated for a particular capital project may be
expended over a period of several years, depending on the time required to
complete the project. Therefore, our planned capital expenditures for a given
year consist of expenditures appropriated in that year's capital budget plus
expenditures for projects appropriated in prior years which have not yet been
completed. Refinery turnaround spending is amortized over the useful life of the
turnaround.

The refining industry is capital intensive and requires on-going investments to
sustain our refining operations. This includes replacement of, or rebuilding,
refinery units and components that extend the useful life. We also invest in
projects that improve operational reliability and profitability via enhancements
that improve refinery processing capabilities as well as production yield and
flexibility. Our capital expenditures also include projects related to renewable
diesel, environmental, health and safety compliance and include initiatives as a
result of federal and state mandates.

Our refinery operations and related emissions are highly regulated at both
federal and state levels, and we invest in our facilities as needed to remain in
compliance with these standards. Additionally, when faced with new emissions or
fuels standards, we seek to execute projects that facilitate compliance and also
improve the operating costs and / or yields of associated refining processes.

HEP

Each year the Holly Logistic Services, L.L.C. board of directors approves HEP's
annual capital budget, which specifies capital projects that HEP management is
authorized to undertake. Additionally, at times when conditions warrant or as
new opportunities arise, special projects may be approved. The funds allocated
for a particular capital project may be expended over a period in excess of a
year, depending on the time required to complete the project. Therefore, HEP's
planned capital expenditures for a given year consist of expenditures approved
for capital projects included in its current year capital budget as well as, in
certain cases, expenditures approved for capital projects in capital budgets for
prior years. In addition, HEP may spend funds periodically to perform capital
upgrades or additions to its assets where a customer reimburses HEP for such
costs. The upgrades or additions would generally benefit the customer over the
remaining life of the related service agreements.

                                       55
--------------------------------------------------------------------------------
  Table of Content
Expected capital and turnaround cash spending for 2022 is as follows.

                                                    Expected Cash Spending 

Interval

                                                            (In millions)
   HF Sinclair Capital Expenditures
   Refining                                  $        225.0                    $ 250.0
   Renewables                                         250.0                      300.0
   Lubricants and Specialty Products                   45.0                       60.0
   Marketing                                           15.0                       25.0
   Corporate                                           90.0                      110.0
   Turnarounds and catalyst                           110.0                      130.0
   Total HollyFrontier                                735.0                      875.0

   HEP
   Maintenance                                         20.0                       30.0
   Expansion and joint venture investment               5.0                       10.0
   Refining unit turnarounds                           25.0                       35.0
   Total HEP                                           50.0                       75.0
   Total                                     $        785.0                    $ 950.0


Cash flow – Financing activities


Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021
For the six months ended June 30, 2022, our net cash flows provided by financing
activities were $20.2 million. During the six months ended June 30, 2022, we
repurchased $110.8 million of our common stock and paid $90.2 million in
dividends. During the six months ended June 30, 2022, HEP received $400.0
million in proceeds from the issuance of the HEP 6.375% Senior Notes, had net
repayments of $119.0 million under the HEP Credit Agreement and paid
distributions of $44.9 million to noncontrolling interests.

For the six months ended June 30, 2021, our net cash flows used for financing
activities were $138.5 million. During the six months ended June 30, 2021, we
paid $57.7 million in dividends and $7.9 million of deferred financing costs in
connection with the amendment of the HollyFrontier Credit Agreement in April
2021. During the six months ended June 30, 2021, HEP had net repayments of $43.5
million under the HEP Credit Agreement and paid $6.6 million of deferred
financing costs in connection with the amendment of the HEP Credit Agreement in
April 2021. In addition, HEP paid distributions of $38.2 million to
noncontrolling interests and received contributions from noncontrolling
interests of $17.6 million.

Contractual obligations and commitments

H. F. Sinclair Society

There have been no material changes in our long-term contractual obligations during the six months ended June 30, 2022 with the exception of certain contracts which have been supported in Sinclair transactions as noted below.


                                                                               Payments Due by Period
    Contractual Obligations and
            Commitments                       Total               2022             2023 & 2024           2025 & 2026          Thereafter
                                                                                   (In thousands)
Supply agreements (1)                      $ 319,990          $ 319,990          $          -          $          -          $        -
Transportation agreements (2)                437,092             21,355                85,418                85,418             244,901
Total                                      $ 757,082          $ 341,345          $     85,418          $     85,418          $  244,901



(1)We have long-term supply agreements to secure certain quantities of crude oil
used in the production process at market prices. We have estimated future
payments under these fixed-quantity agreements expiring in 2022 using current
market prices.
(2)Consists of contractual obligations under agreements with third parties for
the transportation of crude oil to our refineries under contracts expiring
between 2029 and 2034.

                                       56
--------------------------------------------------------------------------------
  Table of Content
HEP

In the six months ended June 30, 2022HEP had net repayments of $119.0 million resulting in $721.0 million of outstanding borrowings under the HEP credit agreement at June 30, 2022.

In April 2022HEP issued $400 million 6.375% Aggregate Principal Amount of Senior Notes Maturing April 2027.

There were no other material changes in HEP’s long-term contractual obligations during this period.

CRITICAL ACCOUNTING ESTIMATES


Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States. The preparation of these financial statements requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and
liabilities as of the date of the financial statements. Actual results may
differ from these estimates under different assumptions or conditions.

Our significant accounting policies are described in "Part II, Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations - Critical Accounting Estimates" in HollyFrontier's Annual Report on
Form 10-K for the year ended December 31, 2021. Certain critical accounting
policies that materially affect the amounts recorded in our consolidated
financial statements include the use of the last-in, first-out ("LIFO") method
of valuing certain inventories, assessing the possible impairment of certain
long-lived assets and goodwill, and assessing contingent liabilities for
probable losses.

Inventory Valuation: Inventories related to our refining operations are stated
at the lower of cost, using the LIFO method for crude oil and unfinished and
finished refined products, or market. In periods of rapidly declining prices,
LIFO inventories may have to be written down to market value due to the higher
costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO
inventory method may result in increases or decreases to cost of sales in years
that inventory volumes decline as the result of charging cost of sales with LIFO
inventory costs generated in prior periods. An actual valuation of inventory
under the LIFO method is made at the end of each year based on the inventory
levels at that time. Accordingly, interim LIFO calculations are based on
management's estimates of expected year-end inventory levels and are subject to
the final year-end LIFO inventory valuation.

Our renewables inventories that are valued at the lower of LIFO cost or market
reflect a valuation reserve of $34.7 million and $8.7 million at June 30, 2022
and December 31, 2021, respectively. A new market reserve of $34.7 million as of
June 30, 2022 was based on market conditions and prices at that time. The effect
of the change in the lower of cost or market reserve was an increase to cost of
products sold totaling $34.5 million and $26.0 million for the three and six
months ended June 30, 2022, respectively.

Inventories consisting of process chemicals, materials and maintenance supplies
and RINs are stated at the lower of weighted-average cost or net realizable
value. Inventories of our Petro-Canada Lubricants and Sonneborn businesses are
stated at the lower of cost, using the first-in, first-out method, or net
realizable value.

To June 30, 2022the LIFO value of our refining inventories was equal to cost.


Valuation of Business Combinations
We recognize and measure the assets acquired and liabilities assumed in a
business combination based on their estimated fair values at the acquisition
date. Any excess or surplus of the purchase consideration when compared to the
fair value of the net tangible assets acquired, if any, is recorded as goodwill
or gain from a bargain purchase. The fair value of assets and liabilities as of
the acquisition date are often estimated using a combination of approaches,
including the income approach, which requires us to project future cash flows
and apply an appropriate discount rate; the cost approach, which requires
estimates of replacement costs and depreciation and obsolescence estimates; and
the market approach which uses market data and adjusts for entity-specific
differences. We use all available information to make these fair value
determinations and engage third-party consultants for valuation assistance. The
estimates used in determining fair values are based on assumptions believed to
be reasonable but which are inherently uncertain. Accordingly, actual results
may differ materially from the projected results used to determine fair value.

                                       57
--------------------------------------------------------------------------------
  Table of Content
Contingencies
We are subject to proceedings, lawsuits and other claims related to
environmental, labor, product and other matters. We are required to assess the
likelihood of any adverse judgments or outcomes to these matters as well as
potential ranges of probable losses. A determination of the amount of reserves
required, if any, for these contingencies is made after careful analysis of each
individual issue. The required reserves may change in the future due to new
developments in each matter or changes in approach such as a change in
settlement strategy in dealing with these matters.


RISK MANAGEMENT


We use certain strategies to reduce some commodity price and operational risks.
We do not attempt to eliminate all market risk exposures when we believe that
the exposure relating to such risk would not be significant to our future
earnings, financial position, capital resources or liquidity or that the cost of
eliminating the exposure would outweigh the benefit.

Commodity Price Risk Management
Our primary market risk is commodity price risk. We are exposed to market risks
related to the volatility in crude oil and refined products, as well as
volatility in the price of natural gas used in our refining operations. We
periodically enter into derivative contracts in the form of commodity price
swaps, forward purchase and sales and futures contracts to mitigate price
exposure with respect to our inventory positions, natural gas purchases, sales
prices of refined products and crude oil costs.

Foreign Currency Risk Management
We are exposed to market risk related to the volatility in foreign currency
exchange rates. We periodically enter into derivative contracts in the form of
foreign exchange forward contracts to mitigate the exposure associated with
fluctuations on intercompany notes with our foreign subsidiaries that are not
denominated in the U.S. dollar.

From June 30, 2022we have the following notional contract volumes related to all outstanding derivative instruments used to mitigate commodity price and currency risk:


                                                                                           Notional Contract Volumes by Year of Maturity
Derivative Instrument                         Total Outstanding Notional                   2022                                      2023                              Unit of Measure

NYMEX futures (WTI) - short                           1,245,000                          1,245,000                                        -                          Barrels
Forward gasoline and diesel contracts
- long                                                  270,000                            270,000                                        -                          Barrels

Foreign currency forward contracts                  445,568,948                        226,327,761                              219,241,187                          U.S. dollar
Forward commodity contracts (platinum)
(1)                                                      38,723                              3,800                                   34,923                          Troy ounces



(1)Represents an embedded derivative within our catalyst financing arrangements,
which may be refinanced or require repayment under certain conditions. See Note
10 "Debt" in the Notes to Consolidated Financial Statements for additional
information on these financing arrangements.

The following sensitivity analysis provides the hypothetical effects of market price movements on the commodities covered by our derivative contracts:


                                                                 Estimated 

Change in fair value in June

30,

Commodity-based Derivative Contracts                                   2022                    2021
                                                                            

(000s) Hypothetical 10% change in underlying commodity prices $12,948 $4,512




Interest Rate Risk Management
The market risk inherent in our fixed-rate debt is the potential change arising
from increases or decreases in interest rates as discussed below.

                                       58
--------------------------------------------------------------------------------
  Table of Content
For the fixed rate HF Sinclair Senior Notes, HollyFrontier Senior Notes and HEP
Senior Notes, changes in interest rates will generally affect fair value of the
debt, but not earnings or cash flows. The outstanding principal, estimated fair
value and estimated change in fair value (assuming a hypothetical 10% change in
the yield-to-maturity rates) for this debt as of June 30, 2022 is presented
below:

                                                                                    Estimated
                                                 Outstanding       Estimated        Change in
                                                  Principal       Fair Value       Fair Value
                                                                (In thousands)
HollyFrontier and HF Sinclair Senior Notes      $ 1,750,000      $ 1,717,195      $    35,470

HEP Senior Notes                                $   900,000      $   808,706      $    28,881



For the variable rate HEP Credit Agreement, changes in interest rates would
affect cash flows, but not the fair value. At June 30, 2022, outstanding
borrowings under the HEP Credit Agreement were $721.0 million. A hypothetical
10% change in interest rates applicable to the HEP Credit Agreement would not
materially affect cash flows.

Our operations are subject to catastrophic losses, operational hazards and
unforeseen interruptions, including but not limited to fire, explosion, releases
or spills, cyberattacks, weather-related perils, vandalism, power failures,
mechanical failures and other events beyond our control. We maintain various
insurance coverages, including general liability, property damage, business
interruption and cyber insurance, subject to certain deductibles and insurance
policy terms and conditions. We are not fully insured against certain risks
because such risks are not fully insurable, coverage is unavailable, or premium
costs, in our judgment, do not justify such expenditures.

Financial information is reviewed on the counterparties in order to review and
monitor their financial stability and assess their ongoing ability to honor
their commitments under the derivative contracts. We have not experienced, nor
do we expect to experience, any difficulty in the counterparties honoring their
commitments.

We have a risk management oversight committee consisting of members from our
senior management. This committee oversees our risk enterprise program, monitors
our risk environment and provides direction for activities to mitigate
identified risks that may adversely affect the achievement of our goals.

© Edgar Online, source Previews

]]>