Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Gain (Loss) Recognized in Income

The following table presents the pre-tax effect on Net income due to maturities and fair value adjustments of our economic hedges:


Gain (Loss) Recognized in Net Income	Statements of Income Classification	Years Ended December 31,
		2025		2024		2023

		(In millions)
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of materials and other	$	12	$	(8)	$	10
	Operating expenses	—		(4)		(21)
	Interest expense	(44)		3		2
Foreign currency contracts	Other income (expense), net	(12)		33		(7)
	Total	$	(44)	$	24	$	(16)

Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges

As of December 31, 2025, we have the following notional amounts related to outstanding derivative instruments (all maturing in 2026):

Total Outstanding Notional

Unit of Measure

Derivatives not designated as cash flow hedging instruments:

NYMEX futures (WTI) - short

979,000

Barrels

Commodity forward contracts - long

1,371,000

Barrels

Commodity forward contracts - short

1,191,000

Barrels

Foreign currency forward contracts

522,000,000

Canadian dollar

Forward platinum contracts (1)

46,549

Troy ounces

(1)Represents an embedded derivative within our precious metals catalyst financing arrangements, which may be refinanced or require repayment under certain conditions. See Note 13 for additional information on these financing arrangements.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present the fair value and the locations of our outstanding derivative instruments in the consolidated balance sheets. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position on our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements.


	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet

	(In millions)
December 31, 2025





Derivatives not designated as cash flow hedging instruments:

Commodity forward contracts - long	$	3	$	—	$	3	$	2	$	—	$	2
Commodity forward contracts - short	2		—		2		3		—		3
Financing arrangements - precious metals embedded derivative	—		—		—		33		—		33
Foreign currency forward contracts	—		—		—		6		—		6
	$	5	$	—	$	5	$	44	$	—	$	44

Total net balance					$	5					$	44

Balance sheet classification:	Prepayments and other				$	5	Accrued liabilities				$	44


	Derivatives in Net Asset Position						Derivatives in Net Liability Position
	Gross Assets		Gross Liabilities Offset in Balance Sheet		Net Assets Recognized in Balance Sheet		Gross Liabilities		Gross Assets Offset in Balance Sheet		Net Liabilities Recognized in Balance Sheet

	(In millions)
December 31, 2024
Derivatives not designated as cash flow hedging instruments:
NYMEX futures contracts	$	—	$	—	$	—	$	1	$	—	$	1
Commodity forward contracts - long	—		—		—		1		—		1
Commodity forward contracts - short	1		—		1		—		—		—
Financing arrangements - precious metals embedded derivative	—		—		—		—		(8)		(8)
Foreign currency forward contracts	18		—		18		—		—		—
	$	19	$	—	$	19	$	2	$	(8)	$	(6)

Total net balance					$	19					$	(6)

Balance sheet classification:	Prepayments and other				$	19	Accrued liabilities				$	(6)

HF Sinclair Corp 10-K