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Segment Information | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Information | Segment Information Our operations are organized into five reportable segments: Refining, Renewables, Marketing, Lubricants and Specialty Products and HEP. Our operations that are not included in one of these five reportable segments are included in Corporate and Other. Intersegment transactions are eliminated on our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column. As a result of the Sinclair Transactions that closed on March 14, 2022, the operations of the Acquired Sinclair Businesses are reported in the Refining, Renewables, Marketing and HEP segments. The Refining segment represents the operations of our El Dorado, Tulsa, Navajo and Woods Cross refineries and HF Sinclair Asphalt Company LLC (“Asphalt”). Also, effective with our acquisition that closed on November 1, 2021, the Refining segment includes our Puget Sound refinery, and effective with our acquisition that closed on March 14, 2022, includes our Parco and Casper refineries. Refining activities involve the purchase and refining of crude oil and wholesale marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountains extending into the Pacific Northwest geographic regions of the United States. Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Renewables segment represents the operations of the Cheyenne renewable diesel unit (“RDU”), which was mechanically complete in the fourth quarter of 2021 and operational in the first quarter of 2022, the pre-treatment unit (“PTU”) at our Artesia, New Mexico facility, which was completed and operational in the first quarter of 2022 and the Artesia RDU, which was completed and operational in the second quarter of 2022. Also, effective with our acquisition that closed on March 14, 2022, the Renewables segment includes the Sinclair RDU. Effective with our acquisition that closed on March 14, 2022, the Marketing segment includes branded fuel sales to more than 1,300 Sinclair branded sites in the United States and licensing fees for the use of the Sinclair brand at more than 300 additional locations throughout the country. Additionally, the Marketing segment includes branded fuel sales to 131 non-Sinclair branded sites from legacy HollyFrontier agreements. The Lubricants and Specialty Products segment represents Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America and the operations of Red Giant Oil Company LLC, one of the largest suppliers of locomotive engine oil in North America. Also, the Lubricants and Specialty Products segment includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountains geographic regions of the United States. The HEP segment also includes 50% ownership interests in each of the Osage Pipeline, the Cheyenne Pipeline and Cushing Connect, a 25.06% ownership interest in the Saddle Butte Pipeline and a 49.995% ownership interest in the Pioneer Pipeline. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings. The accounting policies for our segments are the same as those described in the summary of significant accounting policies (see Note 1). The following is a summary of the financial information of our reportable segments reconciled to the amounts reported in the consolidated financial statements.
|  | Refining |  | Renewables |  | Marketing |  | Lubricants and Specialty Products |  | HEP |  | Corporate, Other and Eliminations |  | Consolidated Total
|  | (In thousands)
Year Ended December 31, 2022
Sales and other revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 30,379,696 |  |  | $ | 654,893 |  |  | $ | 3,911,922 |  |  | $ | 3,149,128 |  |  | $ | 109,200 |  |  | $ | — |  |  | $ | 38,204,839 |
Intersegment revenues |  | 4,033,213 |  |  | 360,606 |  |  | — |  |  | 9,472 |  |  | 438,280 |  |  | (4,841,571) |  |  | — |
|  | $ | 34,412,909 |  |  | $ | 1,015,499 |  |  | $ | 3,911,922 |  |  | $ | 3,158,600 |  |  | $ | 547,480 |  |  | $ | (4,841,571) |  |  | $ | 38,204,839 |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |  | $ | 28,270,195 |  |  | $ | 974,167 |  |  | $ | 3,845,625 |  |  | $ | 2,333,156 |  |  | $ | — |  |  | $ | (4,743,130) |  |  | $ | 30,680,013 |
Lower of cost or market inventory valuation adjustment |  | $ | — |  |  | $ | 52,412 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 52,412 |
Operating expenses |  | $ | 1,815,931 |  |  | $ | 111,974 |  |  | $ | — |  |  | $ | 277,522 |  |  | $ | 210,623 |  |  | $ | (81,157) |  |  | $ | 2,334,893 |
Selling, general and administrative expenses |  | $ | 146,660 |  |  | $ | 3,769 |  |  | $ | 2,954 |  |  | $ | 168,207 |  |  | $ | 17,003 |  |  | $ | 87,892 |  |  | $ | 426,485 |
Depreciation and amortization |  | $ | 405,065 |  |  | $ | 52,621 |  |  | $ | 17,819 |  |  | $ | 83,447 |  |  | $ | 96,683 |  |  | $ | 1,152 |  |  | $ | 656,787 |
Income (loss) from operations |  | $ | 3,775,058 |  |  | $ | (179,444) |  |  | $ | 45,524 |  |  | $ | 296,268 |  |  | $ | 223,171 |  |  | $ | (106,328) |  |  | $ | 4,054,249 |
Earnings of equity method investments |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (260) |  |  | $ | — |  |  | $ | (260) |
Capital expenditures |  | $ | 162,280 |  |  | $ | 225,274 |  |  | $ | 9,275 |  |  | $ | 34,887 |  |  | $ | 38,964 |  |  | $ | 53,327 |  |  | $ | 524,007 |
|  | Refining |  | Renewables |  | Lubricants and Specialty Products |  | HEP |  | Corporate, Other and Eliminations (2) |  | Consolidated Total
|  | (In thousands)
Year Ended December 31, 2021
Sales and other revenues: |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 15,734,870 |  |  | $ | — |  |  | $ | 2,550,624 |  |  | $ | 103,646 |  |  | $ | 2 |  |  | $ | 18,389,142 |
Intersegment revenues |  | 623,688 |  |  | — |  |  | 9,988 |  |  | 390,849 |  |  | (1,024,525) |  |  | — |
|  | $ | 16,358,558 |  |  | $ | — |  |  | $ | 2,560,612 |  |  | $ | 494,495 |  |  | $ | (1,024,523) |  |  | $ | 18,389,142 |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |  | $ | 14,673,062 |  |  | $ | — |  |  | $ | 1,815,802 |  |  | $ | — |  |  | $ | (921,812) |  |  | $ | 15,567,052 |
Lower of cost or market inventory valuation adjustment |  | $ | (318,353) |  |  | $ | 8,739 |  |  | $ | — |  |  | $ | — |  |  | $ | (509) |  |  | $ | (310,123) |
Operating expenses |  | $ | 1,090,424 |  |  | $ | 55,353 |  |  | $ | 252,456 |  |  | $ | 170,524 |  |  | $ | (51,279) |  |  | $ | 1,517,478 |
Selling, general and administrative expenses |  | $ | 127,563 |  |  | $ | — |  |  | $ | 170,155 |  |  | $ | 12,637 |  |  | $ | 51,655 |  |  | $ | 362,010 |
Depreciation and amortization |  | $ | 334,365 |  |  | $ | 1,672 |  |  | $ | 79,767 |  |  | $ | 86,998 |  |  | $ | 737 |  |  | $ | 503,539 |
Income (loss) from operations |  | $ | 451,497 |  |  | $ | (65,764) |  |  | $ | 242,432 |  |  | $ | 224,336 |  |  | $ | (103,315) |  |  | $ | 749,186 |
Earnings of equity method investments |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 12,432 |  |  | $ | — |  |  | $ | 12,432 |
Capital expenditures |  | $ | 160,431 |  |  | $ | 510,836 |  |  | $ | 30,878 |  |  | $ | 88,336 |  |  | $ | 22,928 |  |  | $ | 813,409 |
Year Ended December 31, 2020
Sales and other revenues: |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers |  | $ | 9,286,658 |  |  | $ | — |  |  | $ | 1,792,745 |  |  | $ | 98,039 |  |  | $ | 6,201 |  |  | $ | 11,183,643 |
Intersegment revenues |  | 252,531 |  |  | — |  |  | 10,465 |  |  | 399,809 |  |  | (662,805) |  |  | — |
|  | $ | 9,539,189 |  |  | $ | — |  |  | $ | 1,803,210 |  |  | $ | 497,848 |  |  | $ | (656,604) |  |  | $ | 11,183,643 |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) |  | $ | 8,439,680 |  |  | $ | — |  |  | $ | 1,271,287 |  |  | $ | — |  |  | $ | (552,162) |  |  | $ | 9,158,805 |
Lower of cost or market inventory valuation adjustment |  | $ | 82,214 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3,715) |  |  | $ | 78,499 |
Operating expenses |  | $ | 988,045 |  |  | $ | 3,861 |  |  | $ | 216,068 |  |  | $ | 147,692 |  |  | $ | (55,389) |  |  | $ | 1,300,277 |
Selling, general and administrative expenses |  | $ | 127,298 |  |  | $ | — |  |  | $ | 157,816 |  |  | $ | 9,989 |  |  | $ | 18,497 |  |  | $ | 313,600 |
Depreciation and amortization |  | $ | 324,617 |  |  | $ | — |  |  | $ | 80,656 |  |  | $ | 95,445 |  |  | $ | 20,194 |  |  | $ | 520,912 |
Goodwill and long-lived asset impairment (1) |  | $ | 241,760 |  |  | $ | — |  |  | $ | 286,575 |  |  | $ | 16,958 |  |  | $ | — |  |  | $ | 545,293 |
Income (loss) from operations |  | $ | (664,425) |  |  | $ | (3,861) |  |  | $ | (209,192) |  |  | $ | 227,764 |  |  | $ | (84,029) |  |  | $ | (733,743) |
Earnings of equity method investments |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,647 |  |  | $ | — |  |  | $ | 6,647 |
Capital expenditures |  | $ | 152,726 |  |  | $ | 65,147 |  |  | $ | 32,473 |  |  | $ | 59,283 |  |  | $ | 20,531 |  |  | $ | 330,160 |
(1)The results of our HEP reportable segment for the year ended December 31, 2020 include a long-lived asset impairment charge attributed to HEP’s logistics assets at our Cheyenne Refinery. (2)For the year ended December 31, 2020, Corporate and Other includes $14.0 million of decommissioning and other shutdown costs related to our Cheyenne Refinery. In addition, for the year ended December 31, 2020, Corporate and Other includes $11.4 million in other operating costs related to our Cheyenne facility.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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