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 first quarter 2025 results after the New York Stock Exchange closes on May 6, 2025 [1] - A conference call for investors is scheduled for May 7, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern) [2] - The live audio webcast and related presentation materials will be available 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 2659885, and it will be available until May 21, 2025 [3]

Par Petroleum (PARR) shares ended the last trading session 6.8% higher at $13.80. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2% loss over the past four weeks.Par Petroleum's stock price increase is mainly because the company is well-positioned to benefit from current market conditions. With crude oil prices falling, Par Petroleum, which refines and sells oil, positions itself to gain. The recent drop in crude ...

Refining Operations - The company processed 186.7 Mbpd of crude oil and sold 199.9 Mbpd of refined products during the year ended December 31, 2024[29]. - The Hawaii refinery has a throughput capacity of 94 Mbpd and is uniquely configured to meet the demands of the Hawaii market[32]. - The Montana refinery has a throughput capacity of 63 Mbpd and processes low-cost Western Canadian and regional Rocky Mountain crude oil[34]. - The Washington refinery has a throughput capacity of 42 Mbpd and primarily markets its products in the Pacific Northwest[37]. - The Wyoming refinery has a throughput capacity of 20 Mbpd and produces gasoline, ULSD, and jet fuel[40]. - The company consumed approximately 187 Mbpd of crude oil during the refining process in 2024, with 4% internally consumed as fuel cost[352]. Financial Performance - A $1 per barrel change in average gross refining margins would change annualized Operating income by approximately $67.2 million, based on a throughput of 187 Mbpd for the full year of 2024[349]. - A $1 change in the price of crude oil would result in a $6.6 million change to the fair value of derivative instruments and Cost of revenues (excluding depreciation)[351]. - As of December 31, 2024, the company had $1.1 billion of indebtedness subject to floating interest rates, with a 1% increase in variable rates resulting in an increase of approximately $1.7 million in Cost of revenues and $11.2 million in Interest expense per year[356]. Regulatory Compliance - The company is in substantial compliance with air pollution control requirements, but ongoing enforcement activities by the EPA may result in new regulatory and permit requirements that could involve additional costs[93]. - The company believes it has no material liability associated with any Superfund site and has not been notified of any claims under CERCLA[87]. - The company is subject to various federal and state regulations regarding the prevention of crude oil spills and believes compliance with the Oil Pollution Act will not have a material adverse effect[88]. - The company has received a letter from the EPA regarding alleged violations of air emissions limits under a consent decree, which may involve financial penalties or capital expenditure requirements[96]. - The company is required to comply with the Clean Water Act and believes it is in substantial compliance with these requirements[89]. Employee and Safety Initiatives - The company has invested in employee benefits, including a retirement savings plan with company match and extensive health and wellness benefits[105]. - The company recognizes the importance of safety and promotes a culture of continuous safety improvement across its operations[106]. - As of December 31, 2024, the company employed 1,787 employees, with 403 employees (23%) represented by the United Steelworkers Union[102]. - The refining and logistics segment employed 1,069 employees, while the retail segment had 532 employees and the corporate segment had 186 employees[102]. Market and Economic Conditions - Hawaii is projected to see a decrease of 0.6% in visitor arrivals in 2024, but an increase is expected in 2025, with a full recovery anticipated by 2027[54]. - The GDP for the State of Washington grew by 5.1% from 2023 to 2024, indicating strong economic performance[60]. - The average annual wage in Spokane, Washington, was $62,000 in the fourth quarter of 2023, indicating a robust job market[59]. - The unemployment rate in Hawaii was 3% for the first 10 months of 2024, which is 1% lower than the national average[57]. - Hawaii's construction industry reached a total value of $11.8 billion in 2023, with a 14.8% increase to $6.5 billion in the first half of 2024 compared to the same period in 2023[55]. - Construction payroll jobs in Hawaii hit a record high of 43,300 in October 2024, with private building permits increasing by 28.6% in the first 10 months of 2024[56]. - South Dakota welcomed 14.9 million visitors in 2024, resulting in visitor spending of approximately $5.1 billion, a 2.8% increase from 2023[61]. Investments and Equity - The balance of the investment in Laramie Energy was $12.5 million as of December 31, 2024, reflecting a significant equity investment[65]. - The company owns a 65% and a 40% equity investment in YELP and YPLC, respectively, as of December 31, 2024[66]. Environmental and Sustainability Efforts - The GHG emissions cap for the Hawaii refineries is set at 904,945 metric tons per year, which is 16% below the combined facility GHG emission levels of 2010[72]. - The RFS requires an increasing amount of renewable fuel to be blended into the nation's transportation fuel supply, which may reduce demand for refined transportation fuel products[77]. - The company is exposed to market risks related to the volatility in the price of RINs required to comply with the Renewable Fuel Standard, impacting revenues and costs[353]. - The company may purchase compliance credits to mitigate risks related to the Washington Climate Commitment Act and Clean Fuel Standard, based on greenhouse gas emissions[355]. - The company utilizes exchange-traded futures, options, and OTC swaps to manage commodity price risks, with open positions expiring in December 2025[350]. - The company closely monitors the creditworthiness of customers to mitigate credit risk associated with nonpayment or nonperformance[358].

Financial Data and Key Metrics Changes - In 2024, adjusted EBITDA was $239 million, with adjusted net income reported at $21 million or $0.37 per share [7][27] - Fourth-quarter adjusted EBITDA was $11 million, with a loss of $43 million or $0.79 per share [27] - The refining segment reported an adjusted EBITDA loss of $22 million in the fourth quarter compared to an adjusted EBITDA of $20 million in the third quarter [28] Business Line Data and Key Metrics Changes - The retail segment achieved adjusted EBITDA of $22 million in the fourth quarter, up from $21 million in the third quarter, driven by expanding fuel margins and lower operating costs in Hawaii [34] - The logistics segment reported a record fourth-quarter adjusted EBITDA of $33 million, attributed to higher system utilization in Hawaii and lower operating costs in Montana [34] Market Data and Key Metrics Changes - Hawaii throughput was strong at 83,000 barrels per day, with production costs at $4.42 per barrel [19] - Washington throughput was 39,000 barrels per day, with production costs at $4.34 per barrel [19] - Wyoming throughput was 14,000 barrels per day, with production costs at $11.49 per barrel [20] - Montana throughput was 52,000 barrels per day, with production costs at $10.48 per barrel [21] Company Strategy and Development Direction - The company is focused on executing key projects to enhance earnings power, including the Montana FCC and Alky turnaround and the startup of the Hawaii SAF unit in the second half of 2025 [14][15] - The company aims to maintain a strong balance sheet to support strategic objectives and invest through refining cycles, having repurchased nearly five million shares or 9% of outstanding shares [17][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the refining outlook due to tight supply and demand balances, higher European natural gas prices, and operational challenges in the industry [10][11] - The company anticipates improving clean product markets in the Northern Rockies and expects Hawaii throughput to range between 79,000 and 82,000 barrels per day in the first quarter [25][32] Other Important Information - The company experienced an operational incident at its Wyoming facility, which is expected to restore partial operations targeting 50% utilization by mid-April and full rates before Memorial Day [9][24] - The board of directors reauthorized management to purchase up to $250 million of common stock, allowing for opportunistic repurchases [38] Q&A Session Summary Question: Share repurchase authorization and balance considerations - Management indicated that the reauthorization opens additional capacity for share repurchases, with a dynamic approach to balancing repurchases versus debt reduction [41][42] Question: Confidence in the SAF project in Hawaii - Management highlighted low operating costs and logistical advantages as key factors for confidence in the SAF project, which is expected to have flexibility in monetizing the product [44][46][49] Question: Turnaround work at Wyoming and ramp-up details - Management confirmed opportunities to pull work scope forward but noted that some catalyst life issues may still necessitate a planned outage in 2026 [54][56] Question: Monetizing the Laramie asset - Management acknowledged increased interest in the gas market and emphasized the importance of maximizing unitholder value while considering the asset's non-core status [60][61] Question: Insurance coverage for the Wyoming outage - Management stated that adequate property and PI coverage is in place, with lost profits dependent on market responses [65][68] Question: Diverging trends in Hawaii and Washington capture - Management noted strong performance in Hawaii driven by clean product freight, while Washington faced challenges due to weak asphalt demand and overall market conditions [71][74] Question: M&A opportunities - Management indicated a focus on internal execution rather than acquisitions, with a high bar for any potential M&A opportunities given current market conditions [76][77] Question: West Coast supply dynamics - Management confirmed that the Washington index improved by $7 in February and discussed potential tightness in the West Coast market due to maintenance schedules [80][84]

INVESTOR PRESENTATION I FEBRUARY 2025 Forward-Looking Statements / Disclaimers The information contained in this presentation has been prepared to assist you in making your own evaluation of the company and does not purport to contain all of the information you may consider important. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation, but should not be relied upon as an accurate representation of future results. Certain statements, estimates, ...

Financial Performance - Par Pacific reported a net loss of $(33.3) million, or $(0.59) per diluted share, for the twelve months ended December 31, 2024, compared to net income of $728.6 million, or $11.94 per diluted share, for 2023[2]. - Adjusted Net Income for 2024 was $21.2 million, down from $501.2 million in 2023, and Adjusted EBITDA for 2024 was $238.7 million, compared to $696.2 million for 2023[2]. - Net loss for the year ended December 31, 2024, was $33,322, a significant decline from a net income of $728,642 in 2023[38]. - Net income for Q4 2024 was $(55,695,000), a decrease from $289,324,000 in Q4 2023, while the year-end net income for 2024 was $(33,322,000) compared to $728,642,000 in 2023[56]. - Adjusted Net Income for Q4 2024 was $(43,444,000), compared to $65,243,000 in Q4 2023, and for the year ended December 31, 2024, it was $21,219,000 compared to $501,168,000 in 2023[56]. - Basic Adjusted Net Income (Loss) per common share for Q4 2024 was $(0.79), down from $1.10 in Q4 2023[58]. Segment Performance - The Refining segment generated an operating income of $17.4 million for 2024, significantly lower than $676.2 million for 2023, with Adjusted Gross Margin dropping to $618.3 million from $995.0 million[4]. - The Retail segment reported operating income of $64.8 million for 2024, an increase from $56.6 million in 2023, with fuel sales volumes rising to 121.5 million gallons from 117.6 million gallons[16][17]. - The Logistics segment generated operating income of $89.4 million for 2024, up from $69.7 million in 2023, with Adjusted EBITDA increasing to $120.2 million from $96.7 million[20][21]. - Operating income for Refining in 2024 was $17,412,000, down from $676,161,000 in 2023, while Logistics and Retail reported $89,351,000 and $64,800,000 respectively in 2024 compared to $69,744,000 and $56,603,000 in 2023[53]. Revenue and Sales - Revenues for Q4 2024 were $1,832,221, a decrease of 16% compared to $2,183,511 in Q4 2023[38]. - Refined product sales volume increased to 199.4 Mbpd in Q4 2024 from 194.4 Mbpd in Q4 2023, marking a growth of approximately 2.6%[39]. - Retail sales volumes increased to 30,287 thousand gallons in Q4 2024 from 29,840 thousand gallons in Q4 2023, with annual sales rising to 121,473 thousand gallons from 117,550 thousand gallons[41]. Debt and Cash Position - At December 31, 2024, Par Pacific's cash balance was $191.9 million, with gross term debt of $644.2 million and total liquidity of $613.7 million[28]. - Total debt increased to $1,112,967 in 2024 from $650,858 in 2023, indicating a rise of approximately 71%[38]. - Cash and cash equivalents decreased to $191,921 in 2024 from $279,107 in 2023, reflecting a decline of about 31%[38]. Operational Metrics - The company reported a total yield of 97.1% in Q4 2024, an increase from 96.1% in Q4 2023[39]. - The company experienced a significant unrealized loss on commodity derivatives of $43,281 thousand in the year ended December 31, 2024[61]. - The company incurred acquisition and integration costs of $100 thousand in the year ended December 31, 2024[61]. Adjusted Metrics - Adjusted Gross Margin for Q4 2024 was $92,363,000 in Refining, $36,842,000 in Logistics, and $43,401,000 in Retail, compared to $227,237,000, $35,254,000, and $40,530,000 respectively in Q4 2023[51][53]. - Adjusted EBITDA for Q4 2024 was $10,949,000, significantly lower than $122,036,000 in Q4 2023, and for the year ended December 31, 2024, it was $238,676,000 compared to $696,247,000 in 2023[56]. - Adjusted Gross Margin for the year ended December 31, 2024 was $618,269,000 in Refining, $135,835,000 in Logistics, and $164,696,000 in Retail, compared to $995,011,000, $121,173,000, and $155,282,000 respectively in 2023[53]. Future Outlook - The company anticipates future growth opportunities from the Billings Acquisition, which is expected to enhance cash flows and profitability[36]. - The company plans to establish new benchmarks for its refineries starting in 2025, including the Hawaii, Montana, Washington, and Wyoming Indices, to better reflect local market conditions[42]. - The company continues to focus on enhancing operational efficiency and profitability through strategic adjustments in production costs and refining processes[44].

Core Insights - Par Petroleum (PARR) reported revenue of $1.83 billion for Q4 2024, a year-over-year decline of 16.1%, with an EPS of -$0.79 compared to $1.08 a year ago, indicating significant financial challenges [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.71 billion by 6.89%, and the EPS also surprised positively by 23.30% against a consensus estimate of -$1.03 [1] Financial Performance - The company’s stock has returned -11.4% over the past month, underperforming the Zacks S&P 500 composite, which declined by only -1.8% [3] - Par Petroleum holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Key Metrics - Total Refining - Feedstocks Throughput was 187,800 million barrels of oil per day, surpassing the three-analyst average estimate of 187,341.3 million barrels [4] - Hawaii Refinery throughput was 83.3 million barrels per day, exceeding the average estimate of 81.61 million barrels [4] - Montana Refinery throughput was 51.9 million barrels per day, above the average estimate of 50.12 million barrels [4] - Wyoming Refinery throughput was 13.6 million barrels per day, below the average estimate of 16.13 million barrels [4] - Washington Refinery throughput was 39 million barrels per day, slightly below the average estimate of 39.49 million barrels [4] - Retail sales volumes reached 30,287 Kgal, exceeding the average estimate of 30,109 Kgal [4] - Adjusted EBITDA for Refining was -$22.34 million, better than the average estimate of -$29.05 million [4] - Adjusted EBITDA for Logistics was $33.01 million, surpassing the average estimate of $28.20 million [4] - Adjusted EBITDA for Retail was $22.20 million, exceeding the average estimate of $20.27 million [4]

Core Viewpoint - Par Petroleum reported a quarterly loss of $0.79 per share, which was better than the Zacks Consensus Estimate of a loss of $1.03, indicating an earnings surprise of 23.30% [1] - The company generated revenues of $1.83 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.89%, although this represents a decline from $2.18 billion in the same quarter last year [2] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Par Petroleum's shares have decreased by approximately 4.9% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.50 on revenues of $1.71 billion, and for the current fiscal year, it is $0.77 on revenues of $6.98 billion [7] - The estimate revisions trend for Par Petroleum is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Oil and Gas - Refining and Marketing industry is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stocks within this sector [8]

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]