Core Insights - Par Pacific Holdings reported a significant net loss of $(33.3) million for the year ended December 31, 2024, compared to a net income of $728.6 million for 2023, indicating a drastic decline in financial performance [2][3] - The company's Adjusted EBITDA for 2024 was $238.7 million, down from $696.2 million in 2023, reflecting challenges in the refining segment [2][3] - The Retail and Logistics segments showed strong performance, with record Adjusted EBITDA, contributing positively to the overall results despite losses in refining [4][16][20] Financial Performance - For the fourth quarter of 2024, Par Pacific reported a net loss of $(55.7) million, or $(1.01) per diluted share, compared to a net income of $289.3 million, or $4.77 per diluted share, in the same quarter of 2023 [3][9] - Adjusted Net Loss for Q4 2024 was $(43.4) million, compared to Adjusted Net Income of $65.2 million in Q4 2023 [3][9] - Revenues for the year ended December 31, 2024, were $7.97 billion, down from $8.23 billion in 2023 [35] Segment Performance Refining Segment - The Refining segment generated an operating income of $17.4 million for 2024, a sharp decline from $676.2 million in 2023 [4][5] - Adjusted Gross Margin for the Refining segment was $618.3 million in 2024, down from $995.0 million in 2023 [4][5] - The Hawaii refinery's Adjusted Gross Margin dropped to $7.36 per barrel in Q4 2024 from $16.73 per barrel in Q4 2023 [7][8] Retail Segment - The Retail segment reported operating income of $64.8 million for 2024, an increase from $56.6 million in 2023 [16][19] - Retail Adjusted EBITDA for 2024 was $76.0 million, compared to $68.3 million in 2023, with fuel sales volumes increasing to 121.5 million gallons [17][19] Logistics Segment - The Logistics segment generated operating income of $89.4 million for 2024, up from $69.7 million in 2023 [20][21] - Adjusted EBITDA for the Logistics segment was $120.2 million for 2024, compared to $96.7 million in 2023 [21] Liquidity and Capital Structure - As of December 31, 2024, the company had a cash balance of $191.9 million and gross term debt of $644.2 million [27][36] - Net cash provided by operations totaled $83.8 million for 2024, a decrease from $579.2 million in 2023 [23][24] Market Conditions - The Hawaii Index averaged $5.52 per barrel in Q4 2024, significantly lower than $12.48 per barrel in Q4 2023 [7][9] - The Montana Index averaged $5.75 per barrel in Q4 2024, down from $14.80 in Q4 2023 [9][10] - The Washington Index averaged $(0.62) per barrel in Q4 2024, compared to $5.23 per barrel in Q4 2023 [11][12]

Company Overview - Par Pacific Holdings, Inc. is a growing energy company headquartered in Houston, Texas, providing both renewable and conventional fuels to the western United States [4] - The company owns and operates 219,000 barrels per day (bpd) of combined refining capacity across four locations in Hawaii, the Pacific Northwest, and the Rockies [4] - Par Pacific has an extensive energy infrastructure network, including 13 million barrels of storage and various transportation assets such as marine, rail, rack, and pipeline [4] - The company operates the Hele retail brand in Hawaii and the "nomnom" convenience store chain in the Pacific Northwest [4] - Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company focused on Western Colorado [4] Upcoming Financial Events - Par Pacific will release its fourth quarter 2024 results after the New York Stock Exchange closes on February 25, 2025 [1] - A conference call for investors will take place on February 26, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern) [2] - The live audio webcast and related presentation materials will be accessible on Par Pacific's website [2] Replay Information - A replay of the conference call will be available shortly after the call, accessible by dialing the provided toll-free numbers [3] - The passcode for the replay is 2219355, and it will be available until March 12, 2025 [3]

Group 1 - Par Pacific Holdings, Inc. announced its 2025 capital expenditure and turnaround outlay guidance, estimating a range of $210 million to $240 million [1] - The breakdown of the 2025 capital expenditure includes approximately $85 to $95 million for turnarounds and catalysts, $75 to $85 million for maintenance, and $50 to $60 million for growth initiatives [2] - The company expects 2024 capital expenditures and turnaround outlays to be at the low end of the previous guidance range of $220 million to $250 million [3] Group 2 - Par Pacific Holdings operates a combined refining capacity of 219,000 barrels per day across four locations in Hawaii, the Pacific Northwest, and the Rockies [4] - The company has an extensive energy infrastructure network, including 13 million barrels of storage and various transportation assets [4] - Par Pacific also operates the Hele retail brand in Hawaii and the 'nomnom' convenience store chain in the Pacific Northwest, and owns 46% of Laramie Energy, LLC, a natural gas production company [4]

Core Insights - Par Pacific (NYSE: PARR) experienced a significant rally following the COVID-19 crash of 2020, which lasted until early 2024, but has since faced deteriorating operating conditions [1] Group 1 - The company saw a massive rally in its stock price post-COVID-19 crash, indicating strong recovery and investor confidence during that period [1] - However, recent months have shown a reversal in fortunes, with operating conditions worsening for the company [1]

Financial Performance - Net income for Q3 2024 decreased to $7.5 million from $171.4 million in Q3 2023, primarily due to a $175.8 million decrease in refining segment operating income[150]. - Adjusted EBITDA for Q3 2024 was $51.4 million, down from $255.7 million in Q3 2023, reflecting a $204.3 million decrease primarily in the refining segment[151]. - For the nine months ended September 30, 2024, net income fell to $22.4 million from $439.3 million in the same period of 2023, driven by a $419.3 million decrease in refining segment operating income[154]. - Adjusted EBITDA for the nine months ended September 30, 2024 was $227.7 million, compared to $574.2 million for the same period in 2023, a decrease of $346.5 million[155]. - Revenues for Q3 2024 were $2,143.9 million, a decrease of 17% from $2,579.3 million in Q3 2023[158]. - Operating income for Q3 2024 was $36.4 million, a significant decline from $196.9 million in Q3 2023[158]. - Total revenues for the three months ended September 30, 2024, were $2,143,933, a decrease from $2,579,308 in the same period of 2023, representing a decline of approximately 16.9%[160]. - For the nine months ended September 30, 2024, revenues increased to $6,142.2 million, a 2% increase from $6,048.4 million in the same period of 2023[159]. Operating Segments - Operating income for the refining segment decreased by $175.8 million to $19.0 million for the three months ended September 30, 2024, compared to $194.8 million for the same period in 2023[187]. - Operating income for the logistics segment increased by $5.5 million to $26.2 million for the three months ended September 30, 2024, compared to $20.7 million for the same period in 2023[188]. - Operating income for the retail segment increased by $5.0 million to $18.3 million for the three months ended September 30, 2024, compared to $13.3 million for the same period in 2023[189]. - For the nine months ended September 30, 2024, operating income for the refining segment was $82.8 million, a decrease of $419.3 million compared to $502.1 million for the same period in 2023[190]. - Operating income for the logistics segment increased by $10.6 million to $64.6 million for the nine months ended September 30, 2024, compared to $54.0 million for the same period in 2023[191]. - Operating income for the retail segment increased by $3.3 million to $45.3 million for the nine months ended September 30, 2024, compared to $42.0 million for the same period in 2023[192]. Costs and Expenses - Cost of revenues for Q3 2024 was $1,905.2 million, down 12% from $2,174.4 million in Q3 2023[158]. - General and administrative expenses for the nine months ended September 30, 2024 rose to $87.3 million, a 32% increase from $66.1 million in the same period of 2023[159]. - Total operating expenses (excluding depreciation) for the three months ended September 30, 2024, were $147,049, compared to $145,183 in the same period of 2023, indicating a slight increase of about 1.3%[160]. - Operating expense (excluding depreciation) for the nine months ended September 30, 2024, was $444.4 million, an increase of $114.2 million compared to $330.1 million for the same period in 2023, driven by the Billings Acquisition[218]. Market Conditions - Average Brent crude oil prices were $78.71 per barrel in Q3 2024, down from $85.92 in Q3 2023, while WTI prices decreased to $75.27 from $82.22[166]. - The 3-1-2 Singapore Crack Spread averaged $11.00 per barrel in Q3 2024, significantly lower than $23.39 in Q3 2023[166]. - The RVO Adjusted Pacific Northwest 3-1-1-1 index declined 56%, the 3-1-2 Singapore Crack Spread declined 53%, and the RVO Adjusted USGC 3-2-1 index declined 52% compared to Q3 2023[203]. Investments and Acquisitions - The logistics segment's increase in operating income was primarily due to a $11.7 million increase in contribution from the Billings Acquisition logistics assets acquired in June 2023[191]. - The anticipated financial and operating results of the recently acquired ExxonMobil Billings refinery are expected to provide renewable growth opportunities and impact cash flows and profitability positively[270]. - The company may seek to raise additional debt or equity capital to fund acquisitions and refinance existing debt[253]. Liquidity and Capital Structure - The company had liquidity of $632.5 million as of September 30, 2024, consisting of $183.0 million in cash and cash equivalents and $449.5 million available under the ABL Credit Facility[252]. - Total current assets as of September 30, 2024, were $1,767.2 million, compared to $1,384.9 million as of September 30, 2023, indicating a 28% increase[234]. - Total liabilities as of September 30, 2024, amounted to $2,599.3 million, compared to $2,203.5 million in the same period of 2023, reflecting an 18% increase[234]. - Total stockholders' equity as of September 30, 2024, was $1,254.0 million, unchanged from the previous year[234]. Risk Management - The company is exposed to market risks related to the volatility in the price of RINs required to comply with the Renewable Fuel Standard, with the EPA setting the RVO percentages annually[276]. - The company has entered into an interest rate collar with a cap of 5.50% and a floor of 2.30%, expiring on May 31, 2026, to manage interest rate risk[278]. - The company utilizes exchange-traded futures, OTC options, and OTC swaps to manage commodity price risks associated with refined products and crude oil[272].

Par Pacific Holdings, Inc. (NYSE:PARR) Q3 2024 Earnings Conference Call November 5, 2024 10:00 AM ET Company Participants Ashimi Patel - Vice President, Investor Relations Will Monteleone - President & Chief Executive Officer Richard Creamer - Executive Vice President, Refining & Logistics Shawn Flores - Senior Vice President & Chief Financial Officer Conference Call Participants Alejandra Magana - JPMorgan Matthew Blair - Tudor, Pickering, and Holt Ryan Todd - Piper Sandler Neil Mehta - Goldman Sachs Jason ...

Core Insights - Par Petroleum (PARR) reported a quarterly loss of $0.10 per share, better than the Zacks Consensus Estimate of a loss of $0.12, but significantly lower than earnings of $3.15 per share a year ago, indicating an earnings surprise of 16.67% [1] - The company posted revenues of $2.14 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.55%, but down from $2.58 billion in the same quarter last year [2] - Par Petroleum shares have declined approximately 57.1% year-to-date, contrasting with a 20.1% gain in the S&P 500 [3] Earnings Outlook - The earnings outlook for Par Petroleum is currently unfavorable, with a Zacks Rank of 5 (Strong Sell), suggesting expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $1.92 billion, and for the current fiscal year, it is $0.77 on revenues of $8.02 billion [7] Industry Context - The Oil and Gas - Refining and Marketing industry, to which Par Petroleum belongs, is currently ranked in the bottom 2% of over 250 Zacks industries, indicating a challenging environment [8] - Another company in the same industry, Marathon Petroleum (MPC), is expected to report a significant decline in earnings, with a projected EPS of $0.97, representing an 88.1% year-over-year decrease [9]

Financial Performance - Net income for Q3 2024 was $7.5 million, or $0.13 per diluted share, a significant decrease from $171.4 million, or $2.79 per diluted share, in Q3 2023[2] - Adjusted Net Loss for Q3 2024 was $(5.5) million, compared to Adjusted Net Income of $193.4 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $51.4 million, down from $255.7 million in Q3 2023[2] - Revenues for the three months ended September 30, 2024, were $2,143,933, a decrease of 16.9% compared to $2,579,308 for the same period in 2023[24] - Operating income for the three months ended September 30, 2024, was $36,431, down 81.5% from $196,873 in the prior year[24] - Net income for the three months ended September 30, 2024, was $7,486, a significant decline of 95.6% compared to $171,415 in the same quarter of 2023[24] - Total operating expenses for the three months ended September 30, 2024, were $2,107,502, a decrease of 11.5% from $2,382,435 in the prior year[24] - The adjusted net income (loss) for the three months ended September 30, 2024, was $(5,549), compared to $193,380 for the same period in 2023[41] - The adjusted EBITDA for the three months ended September 30, 2024, was $51,428, while for the same period in 2023, it was $255,746[41] Segment Performance - Refining segment operating income fell to $19.0 million in Q3 2024 from $194.8 million in Q3 2023, with Adjusted Gross Margin decreasing from $350.6 million to $142.2 million[4] - Retail segment reported operating income of $18.3 million in Q3 2024, an increase from $13.3 million in Q3 2023, with Adjusted Gross Margin rising from $38.2 million to $42.6 million[12] - Logistics segment operating income increased to $26.2 million in Q3 2024 from $20.7 million in Q3 2023, with Adjusted Gross Margin slightly up from $35.3 million to $36.3 million[15] - For the three months ended September 30, 2024, the adjusted gross margin for Refining was $142,193, Logistics was $36,284, and Retail was $42,615[35] - The operating income for the nine months ended September 30, 2024, was $82,811 for Refining, $64,579 for Logistics, and $45,323 for Retail[36] Liquidity and Capital Management - Liquidity improved by $112.1 million, with total liquidity reaching $632.5 million as of September 30, 2024[17] - The company repurchased $21.9 million of common stock during Q3 2024[17] - Total debt, including current portion, increased to $1,043,706 as of September 30, 2024, compared to $650,858 at the end of December 31, 2023[24] - Cash and cash equivalents decreased to $182,977 as of September 30, 2024, down from $279,107 at the end of December 31, 2023[24] - Working capital increased to $542,690 as of September 30, 2024, compared to $190,042 at the end of December 31, 2023[24] Operational Metrics - Feedstocks throughput for the total refining segment was 198.4 Mbpd for the three months ended September 30, 2024, slightly up from 198.2 Mbpd in the same period of 2023[25] - Washington refinery feedstocks throughput increased to 41.1 Mbpd in Q3 2024 from 41.0 Mbpd in Q3 2023, while Wyoming refinery throughput was 19.4 Mbpd compared to 19.5 Mbpd[26] - Total yield for the Washington refinery was 96.0% in Q3 2024, slightly down from 96.3% in Q3 2023, while Wyoming refinery yield improved to 98.4% from 98.0%[26] - Retail sales volumes reached 31,232 thousand gallons in Q3 2024, up from 31,137 thousand gallons in Q3 2023[26] Market Conditions - Crude oil prices for Brent averaged $78.71 per barrel in Q3 2024, down from $85.92 in Q3 2023, while WTI prices decreased to $75.27 from $82.22[26] - The 3-1-2 Singapore Crack Spread was $11.00 in Q3 2024, significantly lower than $23.39 in Q3 2023, indicating a decline in refining margins[26] Environmental and Accounting Adjustments - The company is focused on improving its environmental obligations and has updated its accounting for these liabilities to reflect current market conditions[31] - The company plans to continue evaluating its operational performance using non-GAAP measures such as Adjusted Gross Margin and Adjusted EBITDA to provide clearer insights into profitability[29] - Adjusted Net Income (Loss) will exclude non-operating income and expenses starting from Q1 2024 to enhance comparability between periods[33] - The environmental obligation mark-to-market adjustments for the three months ended September 30, 2024, resulted in a loss of $(4,432)[41] - The inventory valuation adjustment for the three months ended September 30, 2024, was $14,057[41]

Core Viewpoint - Par Pacific Holdings, Inc. reported a significant decline in financial performance for the third quarter of 2024 compared to the same period in 2023, primarily due to challenging refining margins, despite achieving record refining throughput and strong logistics results [1][2]. Financial Performance - Net income for Q3 2024 was $7.5 million, or $0.13 per diluted share, down from $171.4 million, or $2.79 per diluted share, in Q3 2023 [1]. - Adjusted net loss for Q3 2024 was $(5.5) million, compared to adjusted net income of $193.4 million in Q3 2023 [1]. - Adjusted EBITDA for Q3 2024 was $51.4 million, a decrease from $255.7 million in Q3 2023 [1]. Refining Segment - The refining segment reported operating income of $19.0 million in Q3 2024, down from $194.8 million in Q3 2023 [3]. - Adjusted gross margin for the refining segment was $142.2 million in Q3 2024, compared to $350.6 million in Q3 2023 [3]. - Adjusted EBITDA for the refining segment was $20.1 million in Q3 2024, down from $233.6 million in Q3 2023 [3]. Hawaii Operations - The 3-1-2 Singapore Crack Spread averaged $11.00 per barrel in Q3 2024, down from $23.39 per barrel in Q3 2023 [4]. - Hawaii refinery throughput was 81 thousand barrels per day (Mbpd) in Q3 2024, slightly down from 82 Mbpd in Q3 2023 [4]. - Adjusted gross margin for the Hawaii refinery was $6.10 per barrel in Q3 2024, compared to $13.47 per barrel in Q3 2023 [5]. Montana Operations - The RVO Adjusted USGC 3-2-1 Index averaged $14.14 per barrel in Q3 2024, down from $29.65 in Q3 2023 [6]. - Montana refinery throughput was 57 Mbpd in Q3 2024, up from 55 Mbpd in Q3 2023 [6]. - Adjusted gross margin for the Montana refinery was $12.42 per barrel in Q3 2024, down from $26.49 per barrel in Q3 2023 [7]. Washington Operations - The RVO Adjusted Pacific Northwest 3-1-1-1 Index averaged $15.48 per barrel in Q3 2024, down from $35.00 in Q3 2023 [8]. - Washington refinery throughput was stable at 41 Mbpd in both Q3 2024 and Q3 2023 [8]. - Adjusted gross margin for the Washington refinery was $1.76 per barrel in Q3 2024, down from $12.30 per barrel in Q3 2023 [9]. Wyoming Operations - The RVO Adjusted USGC 3-2-1 Index averaged $14.14 per barrel in Q3 2024, down from $29.65 in Q3 2023 [10]. - Wyoming refinery throughput was 19 Mbpd in Q3 2024, down from 20 Mbpd in Q3 2023 [10]. - Adjusted gross margin for the Wyoming refinery was $13.65 per barrel in Q3 2024, down from $37.01 per barrel in Q3 2023 [11]. Retail Segment - The retail segment reported operating income of $18.3 million in Q3 2024, up from $13.3 million in Q3 2023 [12]. - Adjusted gross margin for the retail segment was $42.6 million in Q3 2024, compared to $38.2 million in Q3 2023 [12]. - Retail segment adjusted EBITDA was $21.0 million in Q3 2024, up from $16.7 million in Q3 2023 [13]. Logistics Segment - The logistics segment reported operating income of $26.2 million in Q3 2024, compared to $20.7 million in Q3 2023 [14]. - Adjusted gross margin for the logistics segment was $36.3 million in Q3 2024, compared to $35.3 million in Q3 2023 [14]. - Logistics segment adjusted EBITDA was $33.0 million in Q3 2024, up from $29.1 million in Q3 2023 [14]. Liquidity and Capital Management - Liquidity increased by $112.1 million, with a cash balance of $183.0 million and gross term debt of $546.0 million as of September 30, 2024 [16]. - The company repurchased $21.9 million of common stock during the quarter [16]. - Net cash provided by operations totaled $78.5 million for Q3 2024, down from $269.2 million in Q3 2023 [15].

Core Viewpoint - Par Pacific Holdings, Inc. is set to release its third quarter 2024 financial results on November 4, 2024, followed by a conference call for investors on November 5, 2024 [1][2]. Company Overview - Par Pacific Holdings, Inc. is headquartered in Houston, Texas, and operates as a growing energy company providing both renewable and conventional fuels to the western United States [4]. - The company has a combined refining capacity of 219,000 barrels per day (bpd) across four locations in Hawaii, the Pacific Northwest, and the Rockies [4]. - Par Pacific has an extensive energy infrastructure network, including 13 million barrels of storage and various transportation assets such as marine, rail, rack, and pipeline [4]. - The company operates the Hele retail brand in Hawaii and the "nomnom" convenience store chain in the Pacific Northwest [4]. - Par Pacific also holds a 46% stake in Laramie Energy, LLC, which focuses on natural gas production in Western Colorado [4].