Joe Leitch

Joe Leitch asked about the drivers behind the weaker-than-expected performance of the lubricants segment in Q4 and how the segment is expected to progress throughout the year. He also requested an update on the West Ru extension pipeline project, including its various phases and the target for phase one.

Answer

Matt Joyce (SVP of Lubricants and Specialties, HF Sinclair) attributed the Q4 weakness to seasonality (customer destocking), higher operational expenditures (energy, feedstock costs/quality at Mississauga), poor weather impacting the St. Lawrence Seaway supply chain, and a continuing slowdown in process oils for the rubber and tire industry. He expects steady demand going forward, with base oils being a focus. Steve Ledbetter (EVP of Commercial, HF Sinclair) stated that the West Ru project is progressing through the project delivery framework, is complementary to other projects, and the company is working on economic and cost assessments to reach a final investment decision (FID) by mid-year, believing it will be very accretive.