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]

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

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

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

Financial Data and Key Metrics Changes - Third quarter adjusted EBITDA was $51 million, with an adjusted net loss of $0.10 per share, reflecting strong operational performance despite a challenging refining market [6][18] - The Refining segment reported adjusted EBITDA of $20 million, down from $60 million in the second quarter [18] - Net cash provided by operations totaled $79 million, including a $67 million working capital inflow [24] Business Line Data and Key Metrics Changes - Retail same-store fuel volumes declined by 1.4%, while merchandise sales grew by 3.8% compared to Q3 2023 [9] - Logistics segment reported adjusted EBITDA of $33 million, up from $26 million in the second quarter, driven by record refining throughput [23] - Retail segment reported adjusted EBITDA of $21 million, compared to $19 million in the second quarter, supported by expanding fuel margins and merchandise sales growth [23] Market Data and Key Metrics Changes - In Hawaii, throughput was 81,000 barrels per day with production costs of $4.58 per barrel, achieving 97% operational availability year-to-date [13] - Billings delivered 57,000 barrels per day of crude throughput with production costs of $11.61 per barrel [15] - Washington throughput was 41,000 barrels per day with production costs of $3.50 per barrel, demonstrating efficient operations despite market challenges [14] Company Strategy and Development Direction - The company is targeting to reduce fixed operating expenses by $30 million to $40 million in 2025, focusing on cost control amid market challenges [8][33] - The SAF project in Hawaii is on track for startup in the second half of 2025, seen as a key growth element [11] - The company aims to enhance capital and operational efficiency by extending turnaround cycles and optimizing maintenance schedules [16][40] Management's Comments on Operating Environment and Future Outlook - Management noted that the current refining margin environment is testing breakeven levels for many operators, with expectations of supply rationalization starting in 2025 [7] - The company remains optimistic about its diversified business model and the unique markets it serves, which provide resilience in challenging conditions [6] - Management highlighted the importance of maintaining a strong balance sheet to support strategic growth and capital investments [29][56] Other Important Information - Corporate expenses and adjusted EBITDA were $23 million in the third quarter, showing a $1 million improvement compared to the second quarter [24] - Total liquidity as of September 30 was $633 million, indicating a strong financial position [26] Q&A Session Summary Question: Share buybacks in light of a worsening crack environment - Management indicated a strong liquidity position and an opportunistic approach to share buybacks, balancing stock repurchase opportunities with maintaining a strong balance sheet [29] Question: Logistics segment performance sustainability - Management provided mid-cycle guidance of $115 million annualized for Logistics EBITDA, indicating potential for $30 million-plus in a low-90% utilization environment [30] Question: Cost reduction projects for 2025 - Management identified reductions in corporate expenses and a mix of Refining and Logistics costs as key areas for achieving the targeted $30 million to $40 million reduction [33] Question: Long-term outlook for the Washington refinery - Management emphasized the low-cost operational advantage of the Tacoma facility, which is expected to minimize cash consumption during poor margin environments [34] Question: Performance of Hawaiian assets amidst Asian refining margin concerns - Management attributed strong performance in Hawaii to years of operational improvements and favorable cost structures, allowing positive adjusted EBITDA even in challenging conditions [37] Question: Turnaround schedule adjustments - Management noted improvements in mechanical integrity programs that have allowed for extended turnaround periods, leading to better amortization of turnaround costs [40] Question: Billings refinery outlook and inventory dynamics - Management expressed confidence in Billings' ability to meet mid-cycle cash flow contributions, despite some operational challenges [48] Question: Value of the Retail business - Management highlighted the Retail segment's significant financial contributions and growth opportunities, indicating a strategic focus on enhancing this business [50] Question: CapEx guidance for 2024 and 2025 - Management expects elevated CapEx in Q4 2024 due to back-end weighted projects and provided directional guidance for 2025 CapEx related to turnarounds and renewable projects [54] Question: Balance sheet management and inventory financing - Management clarified the separation of ABL funding from term debt, emphasizing a significant reduction in working capital funding needs over the past year [56]

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