HF Sinclair Corp Fair Value Disclosure
| Level 1: | Quoted prices in active markets for identical assets or liabilities. | |||||||
Level 2: | Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. | |||||||
Level 3: | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. | |||||||
| Carrying Amount | Fair Value by Input Level | |||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Commodity forward contracts | $ | 5 | $ | — | $ | 5 | $ | — | ||||||||||||||||||
| Total assets | $ | 5 | $ | — | $ | 5 | $ | — | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Commodity forward contracts | $ | 5 | $ | — | $ | 5 | $ | — | ||||||||||||||||||
Financing arrangements - precious metals | 94 | — | 96 | — | ||||||||||||||||||||||
| Foreign currency forward contracts | 6 | — | 6 | — | ||||||||||||||||||||||
| Environmental credit obligations | 46 | — | 46 | — | ||||||||||||||||||||||
| Total liabilities | $ | 151 | $ | — | $ | 153 | $ | — | ||||||||||||||||||
| Carrying Amount | Fair Value by Input Level | |||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Commodity forward contracts | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||||||||
| Foreign currency forward contracts | 18 | — | 18 | — | ||||||||||||||||||||||
| Total assets | $ | 19 | $ | — | $ | 19 | $ | — | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| NYMEX futures contracts | $ | 1 | $ | 1 | $ | — | $ | — | ||||||||||||||||||
| Commodity forward contracts | 1 | — | 1 | — | ||||||||||||||||||||||
Financing arrangements - precious metals | 31 | — | 31 | — | ||||||||||||||||||||||
Environmental credit obligations | 10 | — | 10 | — | ||||||||||||||||||||||
| Total liabilities | $ | 43 | $ | 1 | $ | 42 | $ | — | ||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 28, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.