Par Pacific(PARR)

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3 Oil Stocks With EPS Momentum That Investors Should Track
ZACKS· 2025-09-17 16:31
Group 1: Core Insights - Earnings per share (EPS) growth is a significant driver of stock performance in the Oil – Energy sector, indicating real strength despite volatility [1] - Par Pacific Holdings, Oceaneering International, and TechnipFMC have shown strong EPS growth, making them attractive investment options [1] Group 2: Par Pacific Holdings - Par Pacific operates an integrated energy platform with a refining capacity of 219,000 barrels per day and over 100 fuel and convenience store locations [2] - The company balances conventional fuel supply with decarbonization initiatives and has a significant interest in natural gas production [3] - Projected earnings for Par Pacific are expected to increase by 516.2% in 2025, with this year's earnings anticipated at $2.28 per share, reflecting a 32% increase from $1.73 in 2019 [3][10] Group 3: Oceaneering International - Oceaneering is a global technology company providing engineered services and advanced robotic solutions across various sectors [4] - The energy sector contributes nearly 75% of Oceaneering's revenues, with a focus on digital and robotics-driven opportunities [5] - Earnings for Oceaneering are forecasted to rise by 57.9% in 2025, reaching $1.80 per share, a significant turnaround from a loss of 83 cents per share in 2019 [6][10] Group 4: TechnipFMC - TechnipFMC is a global provider of subsea and surface technologies, supporting both traditional and emerging energy solutions [7] - The company employs an innovation-led approach, enhancing project economics and reducing carbon intensity through digital tools [8] - Earnings for TechnipFMC are expected to improve by 20% this year to $2.18 per share, with a potential 275% increase from 60 cents in 2019 by 2025 [9][10]
Par Petroleum (PARR) Is Attractively Priced Despite Fast-paced Momentum
ZACKS· 2025-09-11 13:51
Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Investors following momentum investing often avoid undervalued stocks, believing that quicker profits can be made from trending stocks [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Par Petroleum (PARR) Analysis - Par Petroleum (PARR) has shown a price increase of 15.4% over the past four weeks, indicating growing investor interest [3] - PARR has gained 21.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.82, suggesting it moves 82% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - PARR has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [6] - PARR is trading at a Price-to-Sales ratio of 0.22, indicating it is relatively cheap, as investors pay only 22 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides PARR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [8]
Par Petroleum (PARR) Is Up 7.55% in One Week: What You Should Know
ZACKS· 2025-08-26 17:01
Company Overview - Par Petroleum (PARR) currently has a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, PARR shares have increased by 7.55%, outperforming the Zacks Oil and Gas - Refining and Marketing industry, which rose by 5.26% [6] - In the last quarter, PARR shares have surged by 47.79%, and over the past year, they have gained 49.08%, significantly outperforming the S&P 500, which increased by 11.26% and 15.64% respectively [7] Trading Volume - The average 20-day trading volume for PARR is 1,620,277 shares, indicating a healthy trading activity that can be a bullish sign for the stock [8] Earnings Outlook - In the past two months, three earnings estimates for PARR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.30 to $1.83 [10] - For the next fiscal year, three estimates have also moved upwards, reflecting a positive earnings outlook [10] Conclusion - Given the strong price performance, positive earnings revisions, and favorable momentum indicators, PARR is positioned as a strong buy candidate for investors seeking momentum stocks [12]
Par Petroleum (PARR) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-08-26 13:50
Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Par Petroleum (PARR) Analysis - Par Petroleum (PARR) has shown a four-week price change of 1.4%, indicating growing investor interest [4] - Over the past 12 weeks, PARR's stock has gained 47.8%, with a beta of 1.83, suggesting it moves 83% more than the market [5] - PARR has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - PARR has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.22, meaning investors pay 22 cents for each dollar of sales, indicating a reasonable valuation [7] Group 4: Additional Investment Opportunities - Besides PARR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 strategies tailored to outperform the market, providing additional avenues for stock selection [9]
Refining & Marketing Industry Outlook: 4 Stocks in Focus
ZACKS· 2025-08-21 13:26
Core Viewpoint - The Zacks Oil and Gas - Refining & Marketing industry is evolving to balance reliable fossil fuel output with investments in cleaner, lower-carbon solutions, driven by government incentives and corporate demand, while U.S. refiners are increasing exports to capture margins and diversify revenue streams [1][3][4]. Industry Overview - The industry includes companies that sell refined petroleum products and non-energy materials, operating terminals, storage facilities, and transportation services. Refining margins are volatile and influenced by various factors including inventory levels, demand, and capacity utilization [2]. Trends Defining the Future - **Growing Role of Low-Carbon Solutions**: Refiners are investing in renewable diesel and sustainable aviation fuel, supported by government incentives and corporate demand, which positions them for long-term relevance in a decarbonizing economy [3]. - **Advantaged Export Opportunities**: U.S. refiners are leveraging strong international demand, particularly from Latin America and Europe, to export refined products, enhancing profitability and providing a hedge against domestic market fluctuations [4]. - **Margin Pressure from Volatile Prices**: The industry faces risks from fluctuating crude oil prices and inflationary cost pressures, which could impact earnings stability and shareholder returns [5]. Industry Outlook - The Zacks Oil and Gas - Refining & Marketing industry holds a Zacks Industry Rank of 56, placing it in the top 23% of 246 Zacks industries, indicating strong near-term prospects [6][7]. Performance Comparison - Over the past year, the industry has underperformed compared to the broader Zacks Oil - Energy Sector and the S&P 500, with a decline of 10.1% versus a decrease of 0.6% for the sector and a gain of 15.9% for the S&P 500 [9]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 4.24X, significantly lower than the S&P 500's 17.60X and the sector's 4.92X, indicating a potential undervaluation [12]. Stocks in Focus - **Par Pacific Holdings**: Operates an integrated energy platform with a refining capacity of 219,000 barrels per day and a market cap of $1.5 billion, showing a projected earnings growth of 394.6% for 2025 [15][16]. - **Galp Energia**: A Portuguese company with a market cap of $13.1 billion, producing over 100,000 barrels of oil equivalent per day, and a four-quarter average earnings surprise of 47.2% [18][19]. - **Marathon Petroleum**: A leading independent refiner with a market cap of $50 billion, known for strong cash flow generation and shareholder returns, with a recent earnings estimate increase of 8.5% for 2025 [21][22]. - **Phillips 66**: One of the largest independent refiners with nearly 2 million barrels per day of refining capacity, expected EPS growth rate of 15.5% over three to five years [24][25].
Par Petroleum (PARR) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-08-09 00:01
Financial Performance - For the quarter ended June 2025, Par Petroleum reported revenue of $1.89 billion, down 6.2% year-over-year, with an EPS of $1.54 compared to $0.49 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.62 billion by +17.17%, and the EPS surprised by +108.11% against the consensus estimate of $0.74 [1] Key Metrics - Total refining feedstocks throughput was 186,600 million barrels, surpassing the average estimate of 183,299 million barrels [4] - Hawaii Refinery throughput was 88.1 million barrels, above the average estimate of 83.06 million barrels [4] - Montana Refinery throughput was 44.2 million barrels, slightly below the average estimate of 45.3 million barrels [4] - Wyoming Refinery throughput was 13.5 million barrels, compared to the average estimate of 14 million barrels [4] - Washington Refinery throughput was 40.8 million barrels, in line with the average estimate of 40.97 million barrels [4] - Retail sales volumes reached 30,848.00 Kgal, slightly above the average estimate of 30,765.31 Kgal [4] Revenue Breakdown - Revenues from refining were $1.83 billion, exceeding the average estimate of $1.55 billion [4] - Retail revenues were $146.69 million, compared to the average estimate of $142.65 million [4] - Logistics revenues were $73.01 million, surpassing the average estimate of $60.88 million [4] Adjusted EBITDA - Adjusted EBITDA for refining was $108.38 million, significantly above the average estimate of $64.86 million [4] - Adjusted EBITDA for logistics was $29.8 million, slightly above the average estimate of $28.89 million [4] - Adjusted EBITDA for retail was $23.35 million, exceeding the average estimate of $20.46 million [4] Stock Performance - Par Petroleum's shares have returned -21.7% over the past month, while the Zacks S&P 500 composite increased by +1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]
Par Pacific, Built For The Future: Infrastructure As A Catalyst For Renewable Potential
Seeking Alpha· 2025-08-07 07:44
Core Insights - The article emphasizes the importance of disciplined analysis and long-term thinking in identifying resilient and undervalued companies across various sectors, particularly in the Energy sector due to its strategic significance [1]. Group 1: Company Focus - The company is focused on the buy-side investment strategy, aiming to identify companies with strong fundamentals and long-term value [1]. - There is a particular interest in the Energy sector, highlighting its transitional importance in the current market landscape [1]. Group 2: Market Perspective - The article suggests that in a volatile market, it is crucial to prioritize downside protection while maintaining a long-term investment outlook [1].
Par Pacific(PARR) - 2025 Q2 - Quarterly Report
2025-08-06 21:23
PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the interim periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show the company's financial position at June 30, 2025, and December 31, 2024 **Financial Position Summary** | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total assets | $3,895,542 | $3,829,371 | | Total liabilities | $2,747,127 | $2,638,069 | | Total stockholders' equity | $1,148,415 | $1,191,302 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations summarize revenues, expenses, and net income for the interim periods **Operations Summary** | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenues | $1,893,438 | $2,017,468 | $3,638,474 | $3,998,303 | | Operating income | $96,760 | $48,641 | $80,984 | $58,156 | | Net income | $59,460 | $18,638 | $29,060 | $14,887 | | Basic income per share | $1.18 | $0.33 | $0.56 | $0.26 | | Diluted income per share | $1.17 | $0.32 | $0.55 | $0.25 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement details comprehensive income, including net income and other comprehensive income items **Comprehensive Income Summary** | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net income | $59,460 | $18,638 | $29,060 | $14,887 | | Other comprehensive loss, net of tax | $(77) | $(55) | $(153) | $(109) | | Comprehensive income | $59,383 | $18,583 | $28,907 | $14,778 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The statements of cash flows present cash generated from or used in operating, investing, and financing activities **Cash Flow Summary** | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $132,179 | $20,755 | | Net cash used in investing activities | $(86,788) | $(57,987) | | Net cash used in financing activities | $(68,114) | $(62,213) | | Net decrease in cash, cash equivalents, and restricted cash | $(22,723) | $(99,445) | | Cash, cash equivalents, and restricted cash at end of period | $169,544 | $180,001 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement outlines changes in each component of stockholders' equity for the reported periods **Stockholders' Equity Summary** | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Common Stock (shares) | 50,759 | 55,265 | | Common Stock (amount) | $507 | $552 | | Additional Paid-In Capital | $892,152 | $884,548 | | Accumulated Earnings | $245,553 | $295,846 | | Accumulated Other Comprehensive Income | $10,203 | $10,356 | | Total Stockholders' Equity | $1,148,415 | $1,191,302 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations and disclosures for the condensed consolidated financial statements [Note 1—Overview](index=9&type=section&id=Note%201%E2%80%94Overview) The company operates in Refining, Retail, and Logistics and reports a recent operational incident - Par Pacific Holdings, Inc. operates in three primary business segments: **Refining, Retail, and Logistics**, serving the western United States with renewable and conventional fuels[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - The Wyoming refinery experienced an operational incident on February 12, 2025, and **resumed full crude operations in late April 2025**[21](index=21&type=chunk) [Note 2—Summary of Significant Accounting Policies](index=9&type=section&id=Note%202%E2%80%94Summary%20of%20Significant%20Accounting%20Policies) This note outlines the principles of consolidation, basis of presentation, and use of estimates - The company's condensed consolidated financial statements are prepared in accordance with **GAAP for interim financial information**, with all intercompany balances and transactions eliminated[23](index=23&type=chunk)[24](index=24&type=chunk) - ASU 2023-09, 'Improvements to Income Tax Disclosure,' effective for annual periods beginning after December 15, 2024, will require **expanded tax disclosures** in the full year financial statements for 2025[32](index=32&type=chunk) [Note 3—Refining and Logistics Equity Investments](index=10&type=section&id=Note%203%E2%80%94Refining%20and%20Logistics%20Equity%20Investments) The company details its equity method investments in YELP and YPLC, noting increased earnings **Change in Equity Investment in YELP (in thousands)** | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $57,167 | $5 | | Equity earnings from YELP | $11,479 | $ | | Ending balance | $67,950 | $6 | **Change in Equity Investment in YPLC (in thousands)** | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $29,144 | $2 | | Equity earnings from YPLC | $3,960 | $ | | Dividends received | $(5,840) | $( | | Ending balance | $27,340 | $2 | [Note 4—Investment in Laramie Energy](index=11&type=section&id=Note%204%E2%80%94Investment%20in%20Laramie%20Energy) The company holds a 46% equity investment in Laramie Energy, accounted for under the equity method - As of June 30, 2025, the company owned a **46.0% equity investment** in Laramie Energy, LLC, focused on natural gas development[38](index=38&type=chunk) - The equity in Laramie Energy's net assets exceeded the carrying value of the investment by approximately **$61.4 million** as of June 30, 2025, primarily due to prior impairments[40](index=40&type=chunk) **Change in Equity Investment in Laramie Energy (in thousands)** | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $12,498 | $14,279 | | Equity earnings (losses) from Laramie Energy | $(646) | $(26) | | Accretion of basis difference | $3,228 | $3,229 | | Dividends received | — | $(1,485) | | Ending balance | $15,080 | $15,997 | [Note 5—Revenue Recognition](index=12&type=section&id=Note%205%E2%80%94Revenue%20Recognition) This note details disaggregated revenue by major product line and segment for the interim periods **Total Segment Revenues (in thousands)** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Refining | $1,826,509 | $1,957,273 | $3,512,638 | $3,883,889 | | Logistics | $73,005 | $72,475 | $144,420 | $144,317 | | Retail | $146,685 | $152,842 | $283,117 | $292,976 | [Note 6—Inventories](index=13&type=section&id=Note%206%E2%80%94Inventories) The company's inventories consist of crude oil, refined products, and environmental credits - Inventories include **$171.2 million** (June 30, 2025) and **$195.0 million** (December 31, 2024) of RINs and environmental credits[50](index=50&type=chunk) - As of June 30, 2025, there was **no reserve for the lower of cost or net realizable value** of inventory, compared to $2.3 million as of December 31, 2024[51](index=51&type=chunk) **Inventories (in thousands)** | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Crude oil and feedstocks | $286,607 | $302,980 | | Refined products and blendstock | $490,853 | $504,456 | | Warehouse stock and other | $264,019 | $281,882 | | Total | $1,041,479 | $1,089,318 | [Note 7—Prepaid and Other Current Assets](index=14&type=section&id=Note%207%E2%80%94Prepaid%20and%20Other%20Current%20Assets) This note details the components of prepaid and other current assets, including derivative assets **Prepaid and Other Current Assets (in thousands)** | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | Collateral posted with broker for derivative instruments | $9,553 | $38,618 | | Derivative assets | $42,558 | $12,855 | | Prepaid environmental credits | $45,053 | — | | Total | $122,515 | $92,527 | [Note 8—Inventory Financing Agreements](index=14&type=section&id=Note%208%E2%80%94Inventory%20Financing%20Agreements) The company utilizes inventory financing agreements to support its Hawaii refining operations - The company entered into an Inventory Intermediation Agreement with Citi on May 31, 2024, to finance crude oil for its Hawaii refinery, with **$161.0 million outstanding** as of June 30, 2025[55](index=55&type=chunk) - A new Product Financing Agreement with Citi was established on June 27, 2025, to finance RINs, with **$25.1 million in obligations** as of June 30, 2025[56](index=56&type=chunk) **Inventory Intermediation Fees and Interest Expense (in thousands)** | Agreement | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Inventory Intermediation Agreement fees | $10,877 | $6,036 | $16,477 | $6,036 | | Inventory Intermediation Agreement interest | $332 | $105 | $664 | $105 | | Supply and Offtake Agreement fees | — | $11,880 | — | $30,918 | | Supply and Offtake Agreement interest | — | $1,088 | — | $2,872 | [Note 9—Other Accrued Liabilities](index=16&type=section&id=Note%209%E2%80%94Other%20Accrued%20Liabilities) Other accrued liabilities include payroll, environmental credit obligations, and derivative liabilities **Other Accrued Liabilities (in thousands)** | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Accrued payroll and other employee benefits | $29,259 | $34,130 | | Environmental credit obligations | $301,217 | $231,982 | | Derivative liabilities | $70,212 | $19,548 | | Deferred revenue | $4,109 | $16,247 | | Total | $435,194 | $344,188 | [Note 10—Debt](index=16&type=section&id=Note%2010%E2%80%94Debt) The company's outstanding debt primarily consists of an ABL Credit Facility and a Term Loan - The ABL Credit Facility was increased to **$1.4 billion** in March 2024, with $485 million outstanding and **$477.8 million availability** as of June 30, 2025[68](index=68&type=chunk) - The Term Loan Credit Agreement was increased to **$650.0 million** in November 2024 and matures on February 28, 2030[72](index=72&type=chunk)[73](index=73&type=chunk) **Outstanding Debt (in thousands)** | Debt Instrument | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | ABL Credit Facility due 2028 | $485,000 | $483,000 | | Term Loan Credit Agreement due 2030 | $636,875 | $640,125 | | Other long-term debt | $3,778 | $4,108 | | Total debt, net of unamortized discount and deferred financing costs | $1,112,473 | $1,112,967 | | Long-term debt, net of current maturities | $1,107,743 | $1,108,082 | [Note 11—Derivatives](index=17&type=section&id=Note%2011%E2%80%94Derivatives) The company uses commodity and interest rate derivatives to manage market risks - The company entered into five additional interest rate collar transactions during Q2 2025, effective from May 2026 to May 2029, with a total notional amount of **$250.0 million**, to reduce variable interest rate risk[80](index=80&type=chunk) **Open Commodity Derivative Contracts (in thousands of barrels) as of June 30, 2025** | Contract Type | Purchases | Sales | Net | | :------------ | :-------- | :------ | :---- | | Futures | 2,170 | (2,595) | (425) | | Swaps | 105,583 | (133,973) | (28,390) | | Total | 107,753 | (136,568) | (28,815) | **Fair Value of Derivatives (in thousands)** | Balance Sheet Location | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Commodity derivatives (asset) | $40,564 | $10,591 | | Commodity derivatives (liability) | $(3,361) | $(13,456) | | Citi repurchase obligation derivative | $(3,678) | $(1,588) | | Interest rate derivatives | $(758) | $(24) | [Note 12—Fair Value Measurements](index=18&type=section&id=Note%2012%E2%80%94Fair%20Value%20Measurements) This note describes how financial assets and liabilities are measured and categorized at fair value - Financial assets and liabilities are classified into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (significant unobservable inputs)[86](index=86&type=chunk) - The valuation of the embedded derivative related to the Citi repurchase obligation is classified as a **Level 3 instrument** due to unobservable contractual price differentials[86](index=86&type=chunk) **Fair Value Amounts by Hierarchy Level (in thousands) as of June 30, 2025** | Category | Level 1 | Level 2 | Level 3 | Gross Fair Value | Net Carrying Value | | :-------------------------- | :------ | :------ | :------ | :--------------- | :----------------- | | Commodity derivatives (assets) | $10,746 | $391,564 | — | $402,310 | $38,950 | | Commodity derivatives (liabilities) | $(12,563) | $(354,158) | — | $(366,721) | $(3,361) | | Citi repurchase obligation derivative | — | — | $(3,678) | $(3,678) | $(3,678) | | Interest rate derivatives | — | $(758) | — | $(758) | $(758) | | Gross environmental credit obligations | — | $(85,381) | — | $(85,381) | $(85,381) | [Note 13—Leases](index=21&type=section&id=Note%2013%E2%80%94Leases) The company has finance and operating lease liabilities for various assets, including land and facilities **Lease Information (in thousands) as of June 30, 2025** | Metric | Finance Leases | Operating Leases | | :------------------------------------ | :------------- | :--------------- | | ROU assets, net | $15,273 | $435,227 | | Total lease liabilities | $13,225 | $453,235 | | Weighted-average remaining lease term (years) | 10.17 | 6.74 | | Weighted-average discount rate | 7.03% | 7.72% | **Net Lease Cost (in thousands)** | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | $37,622 | $30,864 | | Six Months Ended June 30, | $75,411 | $61,489 | **Estimated Future Undiscounted Cash Flows for Leases (in thousands) as of June 30, 2025** | Year | Finance Leases | Operating Leases | Total | | :----------------------- | :------------- | :--------------- | :---- | | 2025 (July 1 - Dec 31) | $1,499 | $60,698 | $62,197 | | 2026 | $2,772 | $126,030 | $128,802 | | Thereafter | $7,872 | $112,633 | $120,505 | | Total lease payments | $18,532 | $556,953 | $575,485 | [Note 14—Commitments and Contingencies](index=23&type=section&id=Note%2014%E2%80%94Commitments%20and%20Contingencies) The company is involved in various legal, tax, and environmental matters that could result in material costs - The company is appealing a **$1.4 million tax assessment** from the Washington Department of Revenue and is being audited for prior state tax exemptions in Hawaii's foreign trade zone[107](index=107&type=chunk) - The Hawaii refinery is subject to a Consent Decree with the EPA, with alleged air emission violations that could lead to **material financial penalties** or capital expenditures[112](index=112&type=chunk) - The Wyoming refinery has accrued **$12.7 million for environmental remediation** efforts and faces potential penalties exceeding $300,000 for wastewater discharge exceedances[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - The company incurs costs for emission allowances and compliance credits to meet obligations under **Washington state and federal regulations**[116](index=116&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Note 15—Stockholders' Equity](index=25&type=section&id=Note%2015%E2%80%94Stockholders'%20Equity) The Board authorized a new $250 million share repurchase program in February 2025 - A new share repurchase program for up to **$250 million** of common stock was authorized on February 21, 2025, replacing the prior program[122](index=122&type=chunk) - As of June 30, 2025, **$181.3 million of authorization remained** under the current share repurchase program[122](index=122&type=chunk) **Share Repurchases (in millions)** | Period | Shares Repurchased | Value | | :-------------------------- | :----------------- | :------ | | Three Months Ended June 30, 2025 | 1.6 | $28.2 | | Six Months Ended June 30, 2025 | 5.2 | $79.4 | | Three Months Ended June 30, 2024 | 2.2 | $67.1 | | Six Months Ended June 30, 2024 | 3.1 | $99.5 | **Compensation Costs (in thousands)** | Award Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Restricted Stock Awards | $3,170 | $2,105 | $5,668 | $6,301 | | Restricted Stock Units | $721 | $497 | $1,399 | $3,218 | | Stock Option Awards | $358 | $279 | $728 | $9,772 | [Note 16—Income (Loss) per Share](index=26&type=section&id=Note%2016%E2%80%94Income%20(Loss)%20per%20Share) This note provides the computation of basic and diluted income per share for the interim periods **Income Per Share (in thousands, except per share amounts)** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income | $59,460 | $18,638 | $29,060 | $14,887 | | Basic income per common share | $1.18 | $0.33 | $0.56 | $0.26 | | Diluted income per common share | $1.17 | $0.32 | $0.55 | $0.25 | | Basic weighted-average common stock shares outstanding | 50,373 | 57,239 | 52,052 | 57,936 | | Diluted weighted-average common stock shares outstanding | 50,836 | 58,045 | 52,390 | 58,402 | [Note 17—Income Taxes](index=26&type=section&id=Note%2017%E2%80%94Income%20Taxes) The income tax provision is determined using an estimated annual effective tax rate, adjusted for discrete items - The effective tax rate for the interim periods differed from statutory rates due to **state income tax apportionment**, equity compensation, and equity method investments[129](index=129&type=chunk)[130](index=130&type=chunk) - The company expects to incur state tax liabilities as **NOL carryforwards may not offset taxable income** apportioned to all states[131](index=131&type=chunk) - The company is evaluating the impact of the newly enacted One Big Beautiful Bill Act (OBBBA) but does **not expect it to materially impact** the effective tax rate or cash flows in the current fiscal year[132](index=132&type=chunk) [Note 18—Segment Information](index=26&type=section&id=Note%2018%E2%80%94Segment%20Information) The company reports financial results for four segments: Refining, Retail, Logistics, and Corporate **Operating Income (Loss) by Segment (in thousands) for Three Months Ended June 30** | Segment | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Refining | $81,320 | $41,206 | | Logistics | $23,741 | $18,041 | | Retail | $20,793 | $16,053 | | Corporate, Eliminations and Other | $(29,094) | $(26,659) | | Total Operating Income | $96,760 | $48,641 | **Operating Income (Loss) by Segment (in thousands) for Six Months Ended June 30** | Segment | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Refining | $56,599 | $63,806 | | Logistics | $45,630 | $38,415 | | Retail | $36,754 | $27,049 | | Corporate, Eliminations and Other | $(57,999) | $(71,114) | | Total Operating Income | $80,984 | $58,156 | [Note 19—Subsequent Events](index=31&type=section&id=Note%2019%E2%80%94Subsequent%20Events) The company entered into a joint venture agreement for a renewable fuels manufacturing facility - On July 21, 2025, the company entered into an Equity Contribution Agreement to form a **joint venture with Alohi Renewable Energy, LLC** for a renewable fuels manufacturing facility in Hawaii[146](index=146&type=chunk) - Alohi will own a **36.5% equity interest** in the joint venture, with the company owning the remainder[146](index=146&type=chunk) - The company will contribute certain assets and up to $21 million in cash, while Alohi will contribute $100 million in cash, with the facility expected to be **operational by the end of 2025**[146](index=146&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides its perspective on financial results, segment performance, liquidity, and capital resources [Overview](index=32&type=section&id=Overview) Par Pacific Holdings, Inc. is a growing energy company providing fuels to the western United States - Par Pacific Holdings, Inc. is an energy company supplying **renewable and conventional fuels** to the western U.S[148](index=148&type=chunk) [Recent Events Affecting Comparability of Periods](index=32&type=section&id=Recent%20Events%20Affecting%20Comparability%20of%20Periods) Recent events impacting financial comparability include a refinery incident and a new joint venture [Operational Update](index=32&type=section&id=Operational%20Update) The Wyoming refinery experienced an operational incident leading to a 66-day idle period for repairs - The Wyoming refinery was **idled for 66 days** from February 12, 2025, to late April 2025, due to an operational incident, affecting comparability of financial results[149](index=149&type=chunk) [Renewable Fuels Facility Joint Venture](index=32&type=section&id=Renewable%20Fuels%20Facility%20Joint%20Venture) A joint venture was formed to develop a renewable fuels manufacturing facility in Hawaii - A joint venture with Alohi Renewable Energy, LLC was established on July 21, 2025, for a renewable fuels manufacturing facility at the Hawaii refinery, expected to be **operational by year-end 2025**[150](index=150&type=chunk) - Alohi will hold a **36.5% equity interest**, and Par Pacific Holdings, Inc. will operate and manage the facility[150](index=150&type=chunk) [Economic Update](index=32&type=section&id=Economic%20Update) Crude oil and gasoline prices decreased in the first half of 2025 compared to 2024 - OPEC agreed to **gradually increase oil production** starting April 2025, reversing 2.2 million barrels per day cuts over 18 months[151](index=151&type=chunk) - **Geopolitical tensions** in the Middle East and Red Sea continue to exert upward pressure on prices and increase freight and operating costs[152](index=152&type=chunk) **Average Crude Oil and Gasoline Prices** | Metric | First Half 2025 | First Half 2024 | | :-------------------------- | :-------------- | :-------------- | | Brent crude oil (per barrel) | $70.82 | $83.39 | | U.S. retail gasoline (per gallon) | $3.25 | $3.52 | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) The company's financial results showed significant improvement in net income for the interim periods [Three months ended June 30, 2025 compared to the three months ended June 30, 2024 (Consolidated)](index=33&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20three%20months%20ended%20June%2030%2C%202024%20(Consolidated)) Net income for Q2 2025 increased significantly to $59.5 million, up from $18.6 million in the prior year - **Adjusted EBITDA increased by $56.2 million** to $137.8 million, driven by a $55.2 million increase in refining segment Adjusted Gross Margin[155](index=155&type=chunk) - **Adjusted Net Income improved by $49.8 million** to $78.3 million, reflecting higher Adjusted EBITDA and the absence of cash distributions from Laramie Energy in 2025[156](index=156&type=chunk) **Consolidated Financial Results (in thousands)** | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--------------------------------------- | :------ | :------ | :------- | :------- | | Revenues | $1,893,438 | $2,017,468 | $(124,030) | (6)% | | Operating income | $96,760 | $48,641 | $48,119 | 99% | | Net income | $59,460 | $18,638 | $40,822 | 219% | | Income tax expense | $(16,887) | $(6,667) | $(10,220) | 153% | [Six months ended June 30, 2025 compared to the six months ended June 30, 2024 (Consolidated)](index=33&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202024%20(Consolidated)) Net income for H1 2025 increased to $29.1 million from $14.9 million in the prior year - **Adjusted EBITDA decreased by $28.3 million** to $148.0 million, mainly due to a $47.6 million decrease in refining segment Adjusted Gross Margin[158](index=158&type=chunk) - **Adjusted Net Income declined by $42.2 million** to $28.0 million, reflecting the decrease in Adjusted EBITDA and higher D&A[159](index=159&type=chunk) **Consolidated Financial Results (in thousands)** | Metric | H1 2025 | H1 2024 | $ Change | % Change | | :--------------------------------------- | :------ | :------ | :------- | :------- | | Revenues | $3,638,474 | $3,998,303 | $(359,829) | (9)% | | Operating income | $80,984 | $58,156 | $22,828 | 39% | | Net income | $29,060 | $14,887 | $14,173 | 95% | | General and administrative expense (excluding depreciation) | $47,891 | $64,923 | $(17,032) | (26)% | | Income tax expense | $(9,993) | $(4,036) | $(5,957) | 148% | [Operating Income by Segment (Three Months)](index=35&type=section&id=Operating%20Income%20by%20Segment%20(Three%20Months)) For Q2 2025, all operating segments showed increased operating income compared to the prior year **Operating Income (Loss) by Segment (in thousands)** | Segment | Q2 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | | Refining | $81,320 | $41,206 | | Logistics | $23,741 | $18,041 | | Retail | $20,793 | $16,053 | | Corporate, Eliminations and Other | $(29,094) | $(26,659) | | Total Operating Income | $96,760 | $48,641 | [Operating Income by Segment (Six Months)](index=36&type=section&id=Operating%20Income%20by%20Segment%20(Six%20Months)) For H1 2025, Logistics and Retail segments reported increased operating income, while Refining decreased **Operating Income (Loss) by Segment (in thousands)** | Segment | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | | Refining | $56,599 | $63,806 | | Logistics | $45,630 | $38,415 | | Retail | $36,754 | $27,049 | | Corporate, Eliminations and Other | $(57,999) | $(71,114) | | Total Operating Income | $80,984 | $58,156 | [Non-GAAP Performance Measures](index=41&type=section&id=Non-GAAP%20Performance%20Measures) Management uses non-GAAP measures like Adjusted EBITDA to evaluate operating performance - **Adjusted Gross Margin** is used to evaluate operating performance and compare profitability, eliminating the gross impact of volatile commodity prices[176](index=176&type=chunk)[177](index=177&type=chunk) - **Adjusted Net Income (Loss) and Adjusted EBITDA** are supplemental measures to assess financial performance without regard to financing methods or capital structure[177](index=177&type=chunk) - Effective Q4 2024, the definition of non-GAAP measures was modified to align accounting treatment for **deferred turnaround costs** from refining and logistics investments[180](index=180&type=chunk) [Adjusted Gross Margin](index=42&type=section&id=Adjusted%20Gross%20Margin) Adjusted Gross Margin excludes certain operating expenses and non-cash items from operating income **Adjusted Gross Margin by Segment (in thousands) for Three Months Ended June 30** | Segment | 2025 | 2024 | | :-------------------------- | :------- | :------- | | Refining | $231,780 | $176,603 | | Logistics | $34,402 | $30,759 | | Retail | $43,589 | $41,598 | **Adjusted Gross Margin by Segment (in thousands) for Six Months Ended June 30** | Segment | 2025 | 2024 | | :-------------------------- | :------- | :------- | | Refining | $336,108 | $383,713 | | Logistics | $68,441 | $62,709 | | Retail | $83,382 | $78,680 | [Adjusted Net Income (Loss) and Adjusted EBITDA](index=43&type=section&id=Adjusted%20Net%20Income%20(Loss)%20and%20Adjusted%20EBITDA) These non-GAAP measures exclude non-operating and non-cash items to show core operational performance - **Adjusted Net Income (loss)** excludes non-operating income and expenses to improve comparability[178](index=178&type=chunk) - **Adjusted EBITDA** further excludes D&A, interest expense, Laramie Energy cash distributions, and income tax expense[188](index=188&type=chunk) **Adjusted Net Income and Adjusted EBITDA (in thousands)** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net Income | $59,460 | $18,638 | $29,060 | $14,887 | | Adjusted Net Income | $78,291 | $28,544 | $27,970 | $70,212 | | Adjusted EBITDA | $137,829 | $81,601 | $147,975 | $176,299 | [Adjusted EBITDA by Segment](index=45&type=section&id=Adjusted%20EBITDA%20by%20Segment) Adjusted EBITDA by segment provides a detailed view of the operational performance of each business unit **Adjusted EBITDA by Segment (in thousands) for Three Months Ended June 30** | Segment | 2025 | 2024 | | :-------------------------- | :------- | :------- | | Refining | $108,384 | $60,094 | | Logistics | $29,798 | $26,058 | | Retail | $23,347 | $18,728 | | Corporate and Other | $(23,700) | $(23,279) | | Total Adjusted EBITDA | $137,829 | $81,601 | **Adjusted EBITDA by Segment (in thousands) for Six Months Ended June 30** | Segment | 2025 | 2024 | | :-------------------------- | :------- | :------- | | Refining | $94,092 | $141,378 | | Logistics | $59,472 | $54,196 | | Retail | $41,971 | $32,830 | | Corporate and Other | $(47,560) | $(52,105) | | Total Adjusted EBITDA | $147,975 | $176,299 | [Factors Impacting Segment Results](index=48&type=section&id=Factors%20Impacting%20Segment%20Results) This section analyzes the key drivers behind changes in operating income and Adjusted Gross Margin [Operating Income (Three Months)](index=48&type=section&id=Operating%20Income%20(Three%20Months)) Refining operating income increased by $40.1 million due to higher crack spreads and favorable derivatives - **Refining operating income increased by $40.1 million**, driven by a $58.4 million increase in crack spreads and $51.7 million from favorable derivative impacts[195](index=195&type=chunk) - **Logistics operating income increased by $5.7 million** due to lower repair and maintenance costs, lower variable costs, and a $1.2 million gain on sale of assets[195](index=195&type=chunk) - **Retail operating income increased by $4.7 million**, primarily from a $2.6 million decrease in operating expenses and higher fuel and merchandise margins[196](index=196&type=chunk) [Operating Income (Six Months)](index=48&type=section&id=Operating%20Income%20(Six%20Months)) Refining operating income decreased by $7.2 million due to unfavorable feedstock and environmental costs - **Refining operating income decreased by $7.2 million**, primarily due to a $128.8 million decrease related to unfavorable feedstock costs and a $55.0 million increase in environmental costs[197](index=197&type=chunk)[198](index=198&type=chunk) - **Logistics operating income increased by $7.2 million**, driven by a $5.3 million decrease in cost of revenues and a $1.2 million gain on sale of assets[197](index=197&type=chunk) - **Retail operating income increased by $9.8 million**, mainly due to a $4.4 million decrease in operating expenses and a $4.2 million increase in fuel margins[198](index=198&type=chunk)[200](index=200&type=chunk) [Adjusted Gross Margin (Three Months)](index=49&type=section&id=Adjusted%20Gross%20Margin%20(Three%20Months)) Refining Adjusted Gross Margin increased by $55.2 million, driven by higher crack spreads - **Refining Adjusted Gross Margin increased by $55.2 million**, primarily due to a $58.4 million increase in crack spreads[201](index=201&type=chunk) - Hawaii refinery's Adjusted Gross Margin per barrel increased by $0.11 to **$10.18**[205](index=205&type=chunk) - Montana refinery's Adjusted Gross Margin per barrel increased by $5.41 to **$22.30**[205](index=205&type=chunk) - Washington refinery's Adjusted Gross Margin per barrel increased by $6.80 to **$11.47**[205](index=205&type=chunk) - Wyoming refinery's Adjusted Gross Margin per barrel increased by $3.83 to **$18.57**[205](index=205&type=chunk) - **Logistics Adjusted Gross Margin increased by $3.6 million**, mainly due to decreased repair and maintenance expenses and higher third-party revenues[202](index=202&type=chunk) - **Retail Adjusted Gross Margin increased by $2.0 million**, attributed to a $1.2 million increase in fuel margins and a $0.7 million increase in merchandise margins[203](index=203&type=chunk) [Adjusted Gross Margin (Six Months)](index=49&type=section&id=Adjusted%20Gross%20Margin%20(Six%20Months)) Refining Adjusted Gross Margin decreased by $47.6 million due to unfavorable feedstock costs - **Refining Adjusted Gross Margin decreased by $47.6 million**, mainly due to a $108.2 million decrease related to unfavorable feedstock costs and a $34.8 million increase in environmental costs[204](index=204&type=chunk) - Hawaii refinery's Adjusted Gross Margin per barrel decreased by $2.45 to **$9.57**[204](index=204&type=chunk) - Montana refinery's Adjusted Gross Margin per barrel decreased by $2.18 to **$13.02**[213](index=213&type=chunk) - Washington refinery's Adjusted Gross Margin per barrel increased by $1.64 to **$6.94**[213](index=213&type=chunk) - Wyoming refinery's Adjusted Gross Margin per barrel increased by $4.18 to **$19.01**[213](index=213&type=chunk) - **Logistics Adjusted Gross Margin increased by $5.7 million**, driven by higher marine revenues and lower variable expenses[206](index=206&type=chunk) - **Retail Adjusted Gross Margin increased by $4.7 million**, primarily due to a $4.2 million increase in fuel margins and an 8% increase in merchandise margins[207](index=207&type=chunk) [Discussion of Consolidated Results](index=50&type=section&id=Discussion%20of%20Consolidated%20Results) This section analyzes consolidated revenues, operating expenses, and other income/expense items [Three months ended June 30, 2025 compared to the three months ended June 30, 2024 (Detailed)](index=50&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20three%20months%20ended%20June%2030%2C%202024%20(Detailed)) Revenues decreased by $0.1 billion due to lower crude oil prices, despite increased sales volumes - **Revenues decreased by $0.1 billion (6%)** to $1.9 billion, primarily due to a 22% decrease in Brent crude oil prices[208](index=208&type=chunk) - **Cost of revenues decreased by $0.2 billion (10%)** to $1.6 billion, driven by lower crude oil prices and favorable derivative activity[209](index=209&type=chunk) - **Operating expense increased by $4.6 million (3%)** to $148.7 million, mainly due to higher repair and maintenance costs from the Wyoming operational incident[210](index=210&type=chunk) - **Depreciation and amortization increased by $2.6 million (8%)** to $34.7 million, primarily due to Montana deferred turnaround asset amortization[211](index=211&type=chunk) - **Equity earnings** from refining and logistics investments increased by $3.6 million to $7.3 million[213](index=213&type=chunk)[214](index=214&type=chunk) - **Interest expense** and financing costs, net, increased by $1.7 million (8%) to $22.1 million[217](index=217&type=chunk) - **Income tax expense increased by $10.2 million (153%)** to $16.9 million, related to higher pre-tax net income[220](index=220&type=chunk) [Six months ended June 30, 2025 compared to the six months ended June 30, 2024 (Detailed)](index=51&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202024%20(Detailed)) Revenues decreased by $0.4 billion due to lower crude prices and the Wyoming operational incident - **Revenues decreased by $0.4 billion (9%)** to $3.6 billion, primarily due to lower crude prices and the Wyoming operational incident[221](index=221&type=chunk) - **Cost of revenues decreased by $0.3 billion (10%)** to $3.2 billion, mainly due to lower crude oil prices[222](index=222&type=chunk) - **Operating expense decreased by $4.5 million (2%)** to $292.8 million, driven by lower costs at the Montana refinery and Retail segment[223](index=223&type=chunk) - **Depreciation and amortization increased by $6.5 million (10%)** to $71.3 million, primarily due to increases at Montana and Wyoming[224](index=224&type=chunk) - **General and administrative expense decreased by $17.0 million (26%)** to $47.9 million, mainly due to lower stock-based compensation[226](index=226&type=chunk) - **Equity earnings** from refining and logistics investments increased by $5.0 million to $14.8 million[227](index=227&type=chunk) - **Interest expense** and financing costs, net, increased by $5.7 million (15%) to $44.0 million[230](index=230&type=chunk) - **Income tax expense increased by $6.0 million (148%)** to $10.0 million, related to higher pre-tax net income[234](index=234&type=chunk) [Consolidating Condensed Financial Information](index=53&type=section&id=Consolidating%20Condensed%20Financial%20Information) This section provides supplemental condensed consolidating financial information for guarantors - The Term Loan Credit Agreement is guaranteed on a senior unsecured basis by Par Pacific Holdings, Inc. (Parent) and on a **senior secured basis by all subsidiaries of Par Borrower**[235](index=235&type=chunk) **Consolidating Balance Sheet (in thousands) as of June 30, 2025** | Category | Parent Guarantor | Par Borrower and Subsidiaries | Non-Guarantor Subsidiaries and Eliminations | Par Pacific Holdings, Inc. and Subsidiaries | | :-------------------------------- | :--------------- | :---------------------------- | :------------------------------------------ | :------------------------------------------ | | Total assets | $1,382,151 | $3,630,885 | $(1,117,494) | $3,895,542 | | Total liabilities | $233,736 | $3,113,135 | $(599,744) | $2,747,127 | | Total stockholders' equity | $1,148,415 | $517,750 | $(517,750) | $1,148,415 | **Consolidating Statement of Operations (in thousands) for Three Months Ended June 30, 2025** | Category | Parent Guarantor | Par Borrower and Subsidiaries | Non-Guarantor Subsidiaries and Eliminations | Par Pacific Holdings, Inc. and Subsidiaries | | :-------------------------------- | :--------------- | :---------------------------- | :------------------------------------------ | :------------------------------------------ | | Revenues | — | $1,893,435 | $3 | $1,893,438 | | Operating income (loss) | $(7,750) | $97,248 | $7,262 | $96,760 | | Net income (loss) | $59,460 | $58,443 | $(58,443) | $59,460 | | Adjusted EBITDA | $(7,212) | $136,304 | $8,737 | $137,829 | [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is derived from cash flows, cash on hand, and available credit facilities - As of June 30, 2025, **total liquidity was $647.0 million**, consisting of $169.2 million in cash and $477.8 million available under the ABL Credit Facility[252](index=252&type=chunk) - The company believes current cash flows and capital resources are **sufficient to meet requirements for the next 12 months**[253](index=253&type=chunk) - The Board authorized a **$250 million share repurchase program** on February 21, 2025, with $181.3 million remaining as of June 30, 2025[254](index=254&type=chunk) [Cash Flows](index=63&type=section&id=Cash%20Flows) This section summarizes cash flow activities for the six months ended June 30, 2025, and 2024 **Summary of Cash Activities (in thousands)** | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $132,179 | $20,755 | | Net cash used in investing activities | $(86,788) | $(57,987) | | Net cash used in financing activities | $(68,114) | $(62,213) | [Cash flows for the six months ended June 30, 2025](index=63&type=section&id=Cash%20flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025) Net cash provided by operating activities was $132.2 million, driven by changes in working capital - **Net cash provided by operating activities was $132.2 million**, primarily from changes in operating assets and liabilities, non-cash charges, and net income[258](index=258&type=chunk) - Key operating cash inflows included a **$144.6 million increase in Accounts payable and Other accrued liabilities** and a $46.6 million decrease in Inventories[258](index=258&type=chunk) - **Net cash used in investing activities was $86.8 million**, mainly for $89.1 million in capital expenditures for refinery projects and repairs[258](index=258&type=chunk) - **Net cash used in financing activities was $68.1 million**, primarily due to $80.8 million in common stock repurchases and $13.6 million in net debt repayments[259](index=259&type=chunk) [Cash flows for the six months ended June 30, 2024](index=64&type=section&id=Cash%20flows%20for%20the%20six%20months%20ended%20June%2030%2C%202024) Net cash provided by operating activities was $20.8 million, driven by net income and non-cash charges - **Net cash provided by operating activities was $20.8 million**, driven by $14.9 million net income and $153.2 million non-cash charges, offset by working capital changes[261](index=261&type=chunk) - Key operating cash outflows included a **$114.0 million increase in accounts receivable** and a $101.3 million increase in inventories[261](index=261&type=chunk) - **Net cash used in investing activities was $58.0 million**, primarily for $59.5 million in capital expenditures[261](index=261&type=chunk) - **Net cash used in financing activities was $62.2 million**, including $547.6 million for inventory financing agreement terminations and $103.5 million for common stock repurchases[262](index=262&type=chunk) [Critical Accounting Estimates](index=64&type=section&id=Critical%20Accounting%20Estimates) There have been no material changes to critical accounting estimates for the interim period - **No material changes** to critical accounting estimates were reported for the six months ended June 30, 2025[263](index=263&type=chunk) [Forward-Looking Statements](index=65&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information - Forward-looking statements involve known and unknown risks, including **geopolitical events, tariffs, and global crude oil market developments**[265](index=265&type=chunk) - Actual results may differ materially from forward-looking statements due to factors described in the **Annual Report on Form 10-K** and this Quarterly Report[266](index=266&type=chunk) - The company **does not intend to update** or revise any forward-looking statements based on new information or future events[266](index=266&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to commodity price, compliance, interest rate, and credit risks [Commodity Price Risk](index=65&type=section&id=Commodity%20Price%20Risk) The company's earnings are significantly affected by commodity price volatility - A **$1 per barrel change** in average gross refining margins would change annualized operating income by approximately **$67.2 million**[267](index=267&type=chunk) - A **$1 change in crude oil price** would result in an approximate **$28.7 million change** to the fair value of derivative instruments and Cost of revenues[268](index=268&type=chunk) - The company uses **option collars** to economically hedge internally consumed fuel costs at its refineries[269](index=269&type=chunk) [Compliance Program Price Risk](index=66&type=section&id=Compliance%20Program%20Price%20Risk) The company is exposed to price volatility of RINs and other environmental compliance credits - The company is exposed to market risks from the volatility in **RINs prices** for Renewable Fuel Standard compliance and credits for Washington's climate programs[270](index=270&type=chunk)[271](index=271&type=chunk) - To mitigate risk, the company **purchases RINs and compliance credits** when prices are deemed favorable[270](index=270&type=chunk)[271](index=271&type=chunk) [Interest Rate Risk](index=66&type=section&id=Interest%20Rate%20Risk) The company is exposed to interest rate volatility on its $1.1 billion of floating-rate debt - As of June 30, 2025, **$1.1 billion in debt principal** was subject to floating interest rates[272](index=272&type=chunk) - A **1% increase in the variable rate** would increase annual interest expense by approximately **$11.2 million**[272](index=272&type=chunk) - The company uses **interest rate collars** with a maximum cap of 5.50% to manage interest rate risk[272](index=272&type=chunk) [Credit Risk](index=66&type=section&id=Credit%20Risk) The company is exposed to credit risk from nonperformance by its counterparties - The company is exposed to credit risk from **nonpayment or nonperformance** by counterparties[273](index=273&type=chunk) - **Creditworthiness of customers is closely monitored**, and credit limits are established in accordance with the company's credit policy[273](index=273&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025 [Evaluation of Disclosure Controls and Procedures](index=67&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of June 30, 2025[275](index=275&type=chunk) [Changes in Internal Control over Financial Reporting](index=67&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) There were no material changes in internal control over financial reporting during the quarter - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[276](index=276&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings arising from ordinary business operations - The company is involved in various legal proceedings in the ordinary course of business, with **details provided in Note 14**[278](index=278&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20RISK%20FACTORS) This section updates risk factors, highlighting new risks from U.S. trade policy and a joint venture - Changes in **U.S. trade policy and tariffs**, such as a 10% tariff on product imports, could adversely affect the business by increasing production costs[280](index=280&type=chunk) - The pending **Renewable Fuels Facility joint venture** faces risks including delays in commencement, integration challenges, and obligations to fund capital expenditures[281](index=281&type=chunk)[282](index=282&type=chunk)[284](index=284&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details common stock repurchases and its dividend policy [Dividends](index=69&type=section&id=Dividends) The company has not paid dividends and does not anticipate doing so in the near future - The company has not paid, and **does not expect to pay, dividends** on its common stock in the foreseeable future[285](index=285&type=chunk) - Subsidiaries are **restricted from paying dividends** or making other equity distributions under the ABL Credit Facility and Term Loan Credit Agreement[285](index=285&type=chunk) [Repurchases](index=69&type=section&id=Repurchases) The company repurchased 1.62 million shares during the quarter under its repurchase program - The repurchases were made under a **$250 million share repurchase program** authorized on February 21, 2025[286](index=286&type=chunk) **Common Stock Repurchases (Quarter Ended June 30, 2025)** | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Remaining Authorization | | :----------------------- | :--------------------- | :--------------------------- | :------------------------------ | | April 1 - April 30, 2025 | 770,654 | $13.63 | $198,690,419 | | May 1 - May 31, 2025 | 445,758 | $19.45 | $190,058,671 | | June 1 - June 30, 2025 | 406,829 | $22.29 | $181,262,216 | | Total | 1,623,241 | $17.40 | | [Item 3. Defaults Upon Senior Securities](index=69&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period [Item 4. Mine Safety Disclosures](index=69&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated **Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the quarter ended June 30, 2025[289](index=289&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements and certifications - Exhibit 2.13 is the **Equity Contribution Agreement** dated July 21, 2025, for the Hawaii Renewables, LLC joint venture[292](index=292&type=chunk) - Exhibit 10.1 is a Letter Agreement dated June 27, 2025, amending the **Inventory Intermediation Agreement**[294](index=294&type=chunk) - Includes **certifications from the CEO and CFO** pursuant to Sections 302 and 1350 of the Sarbanes-Oxley Act of 2002[294](index=294&type=chunk)
Par Pacific(PARR) - 2025 Q2 - Earnings Call Transcript
2025-08-06 15:00
Financial Data and Key Metrics Changes - Second quarter adjusted EBITDA was $138 million, and adjusted net income was $1.54 per share, reflecting strong operations and improving market conditions [4][20] - Total liquidity increased by 23% during the second quarter to $647 million, supported by strong operating cash flows [20] - Year-to-date share count reduced by nearly 8% due to stock repurchases totaling $28 million [8][19] Business Line Data and Key Metrics Changes - Refining segment reported adjusted EBITDA of $108 million in the second quarter, compared to a loss of $14 million in the first quarter [13] - Retail segment adjusted EBITDA increased to $23 million from $19 million in the first quarter, driven by higher fuel margins and same-store sales growth [17] - Logistics segment adjusted EBITDA remained consistent at $30 million, aligning with mid-cycle run rate guidance [16] Market Data and Key Metrics Changes - Hawaii throughput reached a record 88,000 barrels per day, with production costs at $4.18 per barrel [10] - Montana throughput was 44,000 barrels per day, reflecting lower throughput due to a successful turnaround [11] - Washington index averaged $15.37 per barrel, an improvement of approximately $11 from the prior quarter [15] Company Strategy and Development Direction - The company is focusing on low capital, high return projects to improve profitability following the Montana turnaround [6] - A joint venture with Mitsubishi and INEOS was announced, with a $100 million investment to strengthen renewable fuels capabilities [7] - The company aims to achieve annual cost reductions of $30 million to $40 million relative to the previous year [17] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook despite policy uncertainty, citing flexibility and structural cost advantages [8] - The Asian market outlook remains favorable, with expectations of strong cash generation driven by market conditions and reduced capital spending [9] - Management anticipates financial contributions from the joint venture starting in 2026, following the commissioning of the pretreatment unit [29] Other Important Information - Cash from operations during the second quarter totaled $83 million, excluding working capital inflows [18] - The company repurchased $28 million worth of shares during the second quarter, with a total of 5.2 million shares repurchased year-to-date [19] Q&A Session Summary Question: Drivers behind strong capture rates in Hawaii - Management noted that elevated clean product freight rates and improved throughput rates contributed to capture rates exceeding guidance [22][23] Question: Update on SAF joint venture and startup timing - The joint venture discussions have been ongoing, with startup targeted for the second half of the year and expected EBITDA contributions beginning in 2026 [26][29] Question: Performance in The Rockies and excess inventory sales - Management indicated that excess inventory sales contributed to capture rates, with guidance for Q3 remaining at 90% to 100% [32][33] Question: Small refinery exemptions and cash flow implications - Management expects the EPA to follow the law regarding small refinery exemptions, with potential cash flow upside from retroactive receipts [43][46] Question: Sustainability of Singapore market margins - Management highlighted that the Chinese refining fleet's focus on internal demand and integration with petrochemical complexes is key to market dynamics [47][49] Question: Use of excess cash and M&A appetite - The company remains in an excess capital position, with a focus on opportunistic buybacks and internal growth opportunities rather than large-scale M&A [57][59]
Par Pacific(PARR) - 2025 Q2 - Earnings Call Presentation
2025-08-06 14:00
Company Overview - Par Pacific is a growing energy company focused on renewable and conventional fuels in the western United States[10] - The company has an integrated logistics network with 13 million barrels (MMbbls) of storage and marine, rail, and pipeline assets[10] - The company's system-wide refining capacity is 219,000 barrels per day (bpd)[10] - Par Pacific has 119 fuel retail locations in Hawaii and the Pacific Northwest[10] - The company holds a 46% ownership interest in Laramie Energy, a natural gas E&P company[10] - As of December 31, 2024, Par Pacific had approximately $1 billion in federal tax attributes[10] Refining Segment - Par Pacific's system-wide distillate & LSFO yield is 52%[22] - The company has a 21% system-wide exposure to Western Canadian Select (WCS) heavy crude[22] - Hawaii refinery crude capacity is 94,000 bpd, Montana is 63,000 bpd, Washington is 42,000 bpd, and Wyoming is 20,000 bpd[19] Retail and Logistics Segments - The Retail and Logistics segments are showing growing Adjusted EBITDA contribution through various market cycles[38] - The Trending Retail & Logistics Adjusted EBITDA for the Last Twelve Months (LTM) ending June 30, 2025, was $211 million[40] - The company is targeting gross term debt of 3-4x Retail and Logistics annual Adjusted EBITDA[41] Capital Expenditure and Turnaround - The company's 2024 actual capital expenditures were $209 million[44] - The company's 2025 capital expenditure guidance is $210-240 million[43] - The company expects a normalized annual turnaround outlay of $8-9 million for Hawaii, $7-8 million for Washington, $4-5 million for Wyoming, and $18-22 million for Montana[44] Hawaii Renewables Project - Par Pacific is executing a project in Hawaii to produce 61 million gallons per year capacity for renewable fuels, including Renewable Diesel (RD) and Sustainable Aviation Fuel (SAF)[51] - Mitsubishi and ENEOS will contribute $100 million to Hawaii Renewables through Alohi Renewable Energy for a 36.5% equity interest[51] Financial Position - As of June 30, 2025, the company's term debt was $641 million[99]