Par Pacific(PARR)2021-03-08 17:20Acquisition and Investments - The company completed the acquisition of U.S. Oil & Refining Co. for a total purchase price of 289.5 million in cash and approximately 2.4 million shares valued at 3.15 per barrel for the year ended December 31, 2020, significantly lower than the 17.80 per barrel in 2020, down from 11.44 for the year ended December 31, 2020[43]. - The company actively monitors the impact of COVID-19 on its operations and financial performance, which has caused severe disruptions in the global economy[17]. Logistics and Infrastructure - The company has established a logistics network to transport crude oil and refined products, primarily serving the Pacific Northwest market[41]. - The logistics network in Wyoming includes a 98-mile crude oil pipeline gathering system and a 40-mile refined products pipeline[70]. - The logistics network in Washington includes 2.8 MMbbls of storage capacity and a proprietary 14-mile jet fuel pipeline[69]. - The company sources crude oil for the Wyoming refinery primarily from local producers in the Rocky Mountain region and North Dakota[45]. Employment and Workforce - As of December 31, 2020, the company had a total workforce of 1,403 employees, with 17% represented by the United Steelworkers Union[125]. - The workforce composition includes 706 employees in Refining and Logistics, 606 in Retail, and 91 in Corporate[125]. - The company has a commitment to diversity, with 50% of its workforce being minorities and 5% protected veterans as of December 31, 2020[126]. Environmental Compliance and Regulations - The company’s refineries are compliant with Tier 3 gasoline standards, which limit sulfur content to no more than 10 ppm on an annual average basis, effective since January 1, 2017[100]. - Hawaii's refineries submitted a GHG reduction plan demonstrating that additional reductions are not cost-effective due to already implemented energy conservation measures[93]. - Compliance costs and uncertainties regarding the EISA and RFS requirements may lead to decreased demand for refined petroleum products[103]. - The company is subject to significant state and federal air permitting and pollution control requirements, which may involve additional costs due to tightening standards[113]. - The company believes it is in substantial compliance with the Clean Water Act, which regulates pollutant discharges to U.S. waters[109]. - The company’s operations are in material compliance with applicable Naturally Occurring Radioactive Materials (NORM) standards[105]. - The company has not been notified of any claims or liabilities under the Superfund law, indicating no current environmental liability concerns[107]. Financial Performance and Risks - A 44.7 million[134]. - The company had 3.0 million increase in Cost of revenues for a 1% rate increase[398]. - The company has hedged 25 thousand barrels per month of its internally consumed fuel cost at its Hawaii refineries through option collars with a floor of 60.00 per barrel[396]. - At December 31, 2020, the company had open commodity derivative contracts totaling 1,550 thousand barrels, with net purchases of 550 thousand barrels[394]. - The company is exposed to market risks related to the volatility in the price of Renewable Identification Numbers (RINs) required for compliance with the Renewable Fuel Standard[397]. - The company has entered into an interest rate swap at an average fixed rate of 3.91% to manage interest rate risk, set to expire on April 1, 2024[399]. Customer and Revenue Concentration - The company has one customer in its refining segment that accounted for 13% of consolidated revenue for the year ended December 31, 2020, with no other customer exceeding 10%[122].