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Par Pacific(PARR) - 2024 Q3 - Quarterly Results
PARRPar Pacific(PARR)2024-11-04 22:44

Financial Performance - Net income for Q3 2024 was 7.5million,or7.5 million, or 0.13 per diluted share, a significant decrease from 171.4million,or171.4 million, or 2.79 per diluted share, in Q3 2023[2] - Adjusted Net Loss for Q3 2024 was (5.5)million,comparedtoAdjustedNetIncomeof(5.5) million, compared to Adjusted Net Income of 193.4 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was 51.4million,downfrom51.4 million, down from 255.7 million in Q3 2023[2] - Revenues for the three months ended September 30, 2024, were 2,143,933,adecreaseof16.92,143,933, 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,down81.536,431, down 81.5% from 196,873 in the prior year[24] - Net income for the three months ended September 30, 2024, was 7,486,asignificantdeclineof95.67,486, 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,adecreaseof11.52,107,502, 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),comparedto(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,whileforthesameperiodin2023,itwas51,428, while for the same period in 2023, it was 255,746[41] Segment Performance - Refining segment operating income fell to 19.0millioninQ32024from19.0 million in Q3 2024 from 194.8 million in Q3 2023, with Adjusted Gross Margin decreasing from 350.6millionto350.6 million to 142.2 million[4] - Retail segment reported operating income of 18.3millioninQ32024,anincreasefrom18.3 million in Q3 2024, an increase from 13.3 million in Q3 2023, with Adjusted Gross Margin rising from 38.2millionto38.2 million to 42.6 million[12] - Logistics segment operating income increased to 26.2millioninQ32024from26.2 million in Q3 2024 from 20.7 million in Q3 2023, with Adjusted Gross Margin slightly up from 35.3millionto35.3 million to 36.3 million[15] - For the three months ended September 30, 2024, the adjusted gross margin for Refining was 142,193,Logisticswas142,193, Logistics was 36,284, and Retail was 42,615[35]−TheoperatingincomefortheninemonthsendedSeptember30,2024,was42,615[35] - The operating income for the nine months ended September 30, 2024, was 82,811 for Refining, 64,579forLogistics,and64,579 for Logistics, and 45,323 for Retail[36] Liquidity and Capital Management - Liquidity improved by 112.1million,withtotalliquidityreaching112.1 million, with total liquidity reaching 632.5 million as of September 30, 2024[17] - The company repurchased 21.9millionofcommonstockduringQ32024[17]−Totaldebt,includingcurrentportion,increasedto21.9 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 650,858attheendofDecember31,2023[24]−Cashandcashequivalentsdecreasedto650,858 at the end of December 31, 2023[24] - Cash and cash equivalents decreased to 182,977 as of September 30, 2024, down from 279,107attheendofDecember31,2023[24]−Workingcapitalincreasedto279,107 at the end of December 31, 2023[24] - Working capital increased to 542,690 as of September 30, 2024, compared to 190,042attheendofDecember31,2023[24]OperationalMetrics−Feedstocksthroughputforthetotalrefiningsegmentwas198.4MbpdforthethreemonthsendedSeptember30,2024,slightlyupfrom198.2Mbpdinthesameperiodof2023[25]−Washingtonrefineryfeedstocksthroughputincreasedto41.1MbpdinQ32024from41.0MbpdinQ32023,whileWyomingrefinerythroughputwas19.4Mbpdcomparedto19.5Mbpd[26]−TotalyieldfortheWashingtonrefinerywas96.0190,042 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 85.92inQ32023,whileWTIpricesdecreasedto85.92 in Q3 2023, while WTI prices decreased to 75.27 from 82.22[26]−The3−1−2SingaporeCrackSpreadwas82.22[26] - The 3-1-2 Singapore Crack Spread was 11.00 in Q3 2024, significantly lower than 23.39inQ32023,indicatingadeclineinrefiningmargins[26]EnvironmentalandAccountingAdjustments−Thecompanyisfocusedonimprovingitsenvironmentalobligationsandhasupdateditsaccountingfortheseliabilitiestoreflectcurrentmarketconditions[31]−Thecompanyplanstocontinueevaluatingitsoperationalperformanceusingnon−GAAPmeasuressuchasAdjustedGrossMarginandAdjustedEBITDAtoprovideclearerinsightsintoprofitability[29]−AdjustedNetIncome(Loss)willexcludenon−operatingincomeandexpensesstartingfromQ12024toenhancecomparabilitybetweenperiods[33]−Theenvironmentalobligationmark−to−marketadjustmentsforthethreemonthsendedSeptember30,2024,resultedinalossof23.39 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]