Par Pacific Holdings Inc. (NYSE:PARR) Q4 2021 Earnings Conference Call February 24, 2022 10:00 AM ET Company Participants Ashimi Patel - Senior Manager, IR William Pate - President, CEO & Director James Vaughn - EVP of Retail William Monteleone - Executive VP, CFO & Director Conference Call Participants Carly Davenport - Goldman Sachs Phil Gresh - JPMorgan Matthew Blair - Tudor, Pickering, Holt Jason Gabelman - Cowen Operator Good morning, and welcome to the Par Pacific Fourth Quarter 2021 Earnings Conferen ...

Refinery Operations - The Hawaii refinery operated at an average combined crude oil throughput of 82.0 Mbpd, or 87% utilization, for the year ended December 31, 2021[30]. - The Washington refinery operated at an average throughput of 36.3 Mbpd, or 86% utilization, for the year ended December 31, 2021[37]. - The Wyoming refinery operated at an average throughput of 16.9 Mbpd, or 94% utilization, for the year ended December 31, 2021[45]. - The company had a throughput of 135 Mbpd for the full year of 2021, with a $1 per barrel change in average gross refining margins potentially impacting annualized operating income by approximately $48.7 million[355]. - The company consumed approximately 135 Mbpd of crude oil during the refining process in 2021, with about 3% of this throughput accounted for as a fuel cost[358]. Financial Performance - The 3-1-2 Singapore Crack Spread averaged $6.22 per barrel during the year ended December 31, 2021, with a high of $10.49 per barrel in the fourth quarter[31]. - The Pacific Northwest 5-2-2-1 Index averaged $15.95 per barrel during the year ended December 31, 2021, with a high of $18.59 per barrel in the third quarter[38]. - The Wyoming 3-2-1 Index averaged $29.00 per barrel during 2021, with a high of $41.78 per barrel in the third quarter[46]. - The company had one customer in its refining segment that accounted for 13% of consolidated revenue for the years ended December 31, 2021, and 2020[120]. Storage Capacity - The Hawaii refinery has a total crude oil storage capacity of 3.4 MMbbls and refined product storage capacity of 3.3 MMbbls[27][28]. - The Washington refinery has a total crude oil storage capacity of 1.2 MMbbls and refined product storage capacity of 1.5 MMbbls[34]. - The Wyoming refinery has a total crude oil storage capacity of 267 Mbbls and refined product storage capacity of 513 Mbbls[42][43]. - The Washington logistics network has a storage capacity of 2.8 MMbbls and includes a proprietary 14-mile jet fuel pipeline serving Joint Base Lewis McChord[63]. - The logistics network in Hawaii includes a 27-mile pipeline network and a total storage capacity of 301 Mbbls across seven petroleum terminals[61]. Workforce and Diversity - The workforce consisted of 1,336 employees as of December 31, 2021, with 17% represented by the United Steelworkers Union[122]. - The company’s workforce included 49% minorities and 6% protected veterans as of December 31, 2021[123]. Environmental Compliance - The company reported a combined GHG emission total of 619,609 metric tons in 2020, which is 32% below the Title V permit limit[89]. - The GHG permit issued for the company's Hawaii refineries caps emissions at 904,945 metric tons per year, representing a 16% reduction from 2010 levels[89]. - The company’s Hawaii refinery has not been required to install new controls due to compliance with the National Ambient Air Quality Standards (NAAQS)[91]. - The company is subject to significant state and federal air permitting and pollution control requirements, with ongoing enforcement activities by the EPA[110]. - Compliance with the EPA's final rule on toxic air emissions from petroleum refineries has not materially impacted the company's financial condition or cash flows[111]. - The company believes it is in substantial compliance with environmental regulations, including the Clean Water Act and the Oil Pollution Act[105][104]. Market and Economic Conditions - The company expects a slow but steady recovery in Hawaii's economy, with unemployment dropping from 11.8% at the end of 2020 to 7.7% at the end of 2021[67]. - In South Dakota, tourism spending increased by 29.7% in 2021, reaching approximately $4.4 billion, with transportation services accounting for 19.1% of tourism dollars[74]. - The population in Washington grew by 14.6% and Idaho by 17.3% from 2010 to 2020, significantly outpacing the national growth rate of 7.4%[70]. Risk Management - The company utilizes exchange-traded futures, options, and OTC swaps to manage commodity price risks associated with refined product sales and crude oil purchases[356]. - As of December 31, 2021, a $1 change in the price of crude oil would result in a $2.1 million change to the fair value of the company's derivative instruments and cost of revenues[357]. - 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 obligations based on a percentage of production from Hawaii, Wyoming, and Washington refineries[359]. - The company is subject to credit risk from nonpayment or nonperformance by counterparties and will continue to monitor the creditworthiness of customers[363]. Regulatory and Legislative Developments - The Renewable Fuel Standard (RFS) requires an increasing amount of renewable fuel to be blended into the transportation fuel supply, up to 36 billion gallons by 2022[94]. - The company anticipates compliance costs and uncertainties regarding the various requirements contained in the Energy Independence and Security Act (EISA) and RFS[99]. - The company has received extensions of small refinery exemptions from the EPA for its refineries, allowing for continued compliance with Tier 3 gasoline standards[96]. - The company is monitoring legislative developments in Washington, including a low-carbon fuel standard aimed at reducing carbon intensity by 20% by 2038[89]. Financial Obligations - As of December 31, 2021, the company had $215.6 million of indebtedness subject to floating interest rates, with a potential increase of 1% in variable rates resulting in an increase of approximately $3.8 million in Cost of revenues and $3.6 million in Interest expense annually[360]. - The company had entered into an interest rate swap at an average fixed rate of 3.91% to manage interest rate risk, which was set to expire on April 1, 2024[361]. - The company has contracts referencing LIBOR, with transition language in place, and does not expect the transition away from LIBOR to materially impact its financial condition[362].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2021 was $85 million, with adjusted net income at $0.76 per share, including a $29 million non-cash mark-to-market benefit for RFS compliance [6][22] - Excluding the mark-to-market benefit, adjusted EBITDA was $56 million and adjusted earnings per share was $0.27 [22] - Cash flow from operations was $53 million, with capital expenditures and turnaround outlays totaling $8 million [27] Business Line Data and Key Metrics Changes - Retail segment adjusted EBITDA contribution was $14 million, with same-store sales fuel volumes up approximately 12% and merchandise sales up about 3.5% compared to Q3 2020 [23] - Logistics segment adjusted EBITDA was $19 million, slightly down from $20 million in Q2 2021 [23] - Refining segment recorded adjusted EBITDA of $64 million, a significant recovery from a loss of $29 million in Q2 2021 [23][24] Market Data and Key Metrics Changes - Wyoming's 3-2-1 index was $41.78 per barrel, with refinery throughput at approximately 18,000 barrels per day [14] - Washington's Pacific Northwest 5-2-2-1 index was $18.59 per barrel, with throughput averaging slightly over 38,000 barrels per day [15] - Hawaii's Singapore 3-1-2 index was $6.20 per barrel, with throughput averaging approximately 81,000 barrels per day [17] Company Strategy and Development Direction - The company is focused on debt reduction as a top priority while exploring small capital projects for future growth [9][32] - In terms of energy transition, the company is exploring opportunities in Hawaii and Washington, with a focus on local needs and leveraging regional strengths [10][11] - The company published its inaugural sustainability report, emphasizing its commitment to strong ESG standards [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions, particularly in Hawaii, and noted that the system is well-positioned to capture opportunities [20] - The company highlighted the need for the EPA to act on small refinery exemption applications and RVO obligation levels [8] - Management acknowledged the volatility in RIN prices and the impact of crude oil market conditions on profitability [7] Other Important Information - The company is reviewing capital allocation options, with a focus on reducing the cost of capital and evaluating growth opportunities in local markets [9] - The company expects annual cash interest expense to be between $50 million and $55 million, with liquidity totaling $277 million at the quarter's end [28] Q&A Session Summary Question: Capital allocation strategy moving into 2022 - Management emphasized that debt reduction remains the primary focus, with no significant limitations on equity repurchases or dividends at this time [32] Question: OpEx and impact of higher natural gas prices - Management noted that production costs in Hawaii were higher due to maintenance and utility costs, but overall sensitivity to natural gas price changes is low compared to typical refiners [33] Question: Hawaii's crude differential and capturing crack spread uplift - Management acknowledged potential headwinds in capturing crack spread uplift due to price lag and rising backwardation but remained optimistic about market conditions [36] Question: 2022 CapEx guidance - Management indicated that maintenance CapEx is expected to be in the $35 million to $40 million range, with additional planned turnaround activities [37] Question: M&A interest in niche markets - Management confirmed ongoing evaluation of M&A opportunities, particularly in PADD 4 and upper PADD 5, while maintaining a disciplined approach [38] Question: Update on Laramie's profitability and drilling plans - Management reported improved profitability at Laramie but indicated a focus on debt reduction and minimal CapEx for the time being [42] Question: RIN liabilities and 2021 obligations - Management confirmed that after the expected $30 million outflow in Q4, the company would be fully accrued on its 2021 RIN obligations [49]

Financial Performance - For the three months ended September 30, 2021, net income improved to $81.8 million from a net loss of $14.3 million for the same period in 2020, driven by higher product crack spreads and a 16% increase in sales volumes in the Refining segment [180]. - Adjusted EBITDA for the third quarter of 2021 was $84.7 million, compared to a loss of $16.1 million in the third quarter of 2020, primarily due to improved crack spreads and favorable RINs mark-to-market adjustments [181]. - For the nine months ended September 30, 2021, net loss decreased to $89.4 million from a net loss of $277.2 million for the same period in 2020, aided by favorable feedstock costs and a gain of $63.9 million from Sale-Leaseback Transactions [183]. - Revenues for the third quarter of 2021 were $1.31 billion, a 90% increase from $689.98 million in the third quarter of 2020 [187]. - The company reported revenues of $3.42 billion for the nine months ended September 30, 2021, representing a 42% increase from $2.41 billion in the same period in 2020 [189]. - Operating income for the three months ended September 30, 2021, was $97,793 million, compared to an operating income of $2,750 million for the same period in 2020, indicating a substantial recovery [192]. - For the nine months ended September 30, 2021, revenues were $3.4 billion, a $1.0 billion increase compared to $2.4 billion for the same period in 2020, primarily driven by a $0.9 billion increase in third-party revenues at the refining segment [230]. Refining Segment Performance - The refining margins improved during the third quarter of 2021 compared to the second quarter, with profitability in retail and logistics segments reaching over 90% of pre-pandemic levels [174]. - Feedstocks throughput for the refining segment increased to 137.3 Mbpd in Q3 2021 from 105.0 Mbpd in Q3 2020, reflecting a growth of approximately 30.5% [195]. - Refined product sales volume rose to 144.9 Mbpd in Q3 2021, up from 125.0 Mbpd in Q3 2020, marking an increase of about 15.9% [195]. - Adjusted gross margin per barrel for the refining segment improved to $7.66 in Q3 2021, compared to a negative margin of $(0.47) in Q3 2020 [195]. - The total yield for the refining segment improved to 97.5% in Q3 2021, compared to 94.4% in Q3 2020 [195]. - Adjusted Gross Margin for the refining segment was $120.0 million for the three months ended September 30, 2021, an increase of $103.7 million compared to $16.3 million in the same period of 2020 [216]. - The company reported an operating income of $86,413 thousand for the refining segment in Q3 2021, a significant recovery from an operating loss of $5,106 thousand in Q3 2020 [203]. Liquidity and Capital Management - The company undertook liquidity-enhancing measures, including a sale-leaseback transaction for $112.8 million and a public offering of 5.75 million shares resulting in net proceeds of approximately $87.2 million [176][177]. - As of September 30, 2021, liquidity position was $276.8 million, consisting of $272.2 million at Par Petroleum, LLC and subsidiaries [259]. - The company raised approximately $87.2 million from a public offering of 5.75 million shares at $16.00 per share in March 2021 [262]. - The company has access to various credit facilities totaling $201.3 million as of September 30, 2021 [260]. Cost and Expense Management - Cost of revenues (excluding depreciation) for the three months ended September 30, 2021, was $1.1 billion, an increase of $500 million compared to $600 million in the same period of 2020, primarily due to higher crude oil prices [223]. - Operating expense (excluding depreciation) increased to $221.1 million for the nine months ended September 30, 2021, up $11.2 million from $209.9 million in the same period of 2020, driven by higher utility and maintenance expenses [232]. - Production costs per barrel decreased to $4.28 in Q3 2021 from $5.80 in Q3 2020, indicating improved cost efficiency [195]. Market Conditions and Risks - The average Brent crude oil price increased to $73.23 per barrel in Q3 2021 from $43.34 per barrel in Q3 2020, a rise of 68.9% [196]. - A $1 change in the price of crude oil would result in a change of approximately $1.2 million to the fair value of the company's derivative instruments and cost of revenues [280]. - The company monitors the creditworthiness of customers to mitigate credit risk and establish credit limits according to its credit policy [285].

9 | Par Pacific INVESTOR PRESENTATION | NOVEMBER 2021 Forward-Looking Statements / Disclaimers The information contained in this presentation has been prepared to assist you in making your own evaluation of the company and does not purport to contain all of the information you may consider important. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation, but should not be relied upon as an accurate representation of future results. Certain statem ...

Par Pacific Holdings, Inc. (NYSE:PARR) Q2 2021 Results Conference Call August 5, 2021 10:00 AM ET Company Participants Ashimi Patel - Investor Relations William Pate - President and Chief Executive Officer Joseph Israel - President and Chief Executive Officer of Par Petroleum Will Monteleone - Chief Financial Officer Conference Call Participants Carly Davenport - Goldman Sachs Phil Gresh - JPMorgan Jason Gabelman - Cowen Matthew Blair - Tudor, Pickering, Holt Patrick Sheffield - Beach Point Capital Jake Gom ...

9 | Par Pacific INVESTOR PRESENTATION | AUGUST 2021 Forward-Looking Statements / Disclaimers The information contained in this presentation has been prepared to assist you in making your own evaluation of the company and does not purport to contain all of the information you may consider important. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation, but should not be relied upon as an accurate representation of future results. Certain statemen ...

PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Par Pacific Holdings, Inc.'s unaudited condensed consolidated financial statements for Q2 2021, including balance sheets, income, and cash flow statements, with notes on key transactions Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $1,030,679 | $636,469 | | **Total Assets** | $2,524,380 | $2,133,861 | | **Total Current Liabilities** | $1,369,690 | $878,680 | | **Total Liabilities** | $2,354,688 | $1,887,587 | | **Total Stockholders' Equity** | $169,692 | $246,274 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,217,525 | $515,301 | $2,106,205 | $1,719,384 | | **Operating Loss** | ($84,501) | ($25,443) | ($129,163) | ($206,616) | | **Net Loss** | ($108,958) | ($40,560) | ($171,185) | ($262,897) | | **Diluted Loss per Share** | ($1.84) | ($0.76) | ($3.01) | ($4.94) | - Net cash from operating activities for the six months ended June 30, 2021, significantly decreased to **$1.8 million** from **$33.8 million** year-over-year, while investing activities provided **$88.8 million** due to asset sales, reversing a **$30.2 million** outflow[16](index=16&type=chunk)[270](index=270&type=chunk) - The company completed sale-leaseback transactions for 22 retail properties in Q1 2021, generating **$112.8 million** cash and recognizing a **$63.9 million** gain[115](index=115&type=chunk)[116](index=116&type=chunk) - An equity offering of **5.75 million** common shares in March 2021 generated approximately **$87.2 million** in net proceeds[146](index=146&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2021 financial performance, noting a **$109.0 million** net loss driven by inventory adjustments and RINs expenses, despite improved Adjusted EBITDA and enhanced liquidity from asset sales and equity offerings - The Q2 2021 net loss widened to **$109.0 million** from **$40.6 million** in Q2 2020, primarily due to unfavorable inventory adjustments and increased RINs expenses[177](index=177&type=chunk) - Adjusted EBITDA for Q2 2021 improved to a loss of **$6.7 million** from a **$50.3 million** loss in Q2 2020, driven by better crack spreads and increased demand[178](index=178&type=chunk) - Liquidity was enhanced by a **$112.8 million** sale-leaseback of 22 retail properties and an **$87.2 million** equity offering in Q1 2021[173](index=173&type=chunk) - As of June 30, 2021, the company's liquidity position stood at **$243.5 million**, comprising cash on hand and available credit facilities[263](index=263&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q2 2021 revenues increased to **$1.2 billion** due to higher crude prices and refining volumes, but operating loss widened to **$84.5 million** due to increased costs, RINs expenses, and unfavorable inventory adjustments Segment Operating Income (Loss) (in thousands) | Segment | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | Refining | ($99,119) | ($36,757) | | Logistics | $14,542 | $6,303 | | Retail | $12,651 | $16,180 | - The Refining segment's Q2 2021 operating loss increased by **$62.3 million** year-over-year, mainly due to a **$50.3 million** rise in RINs expenses and a **$158.4 million** unfavorable inventory adjustment[208](index=208&type=chunk) - The Retail segment's Q2 2021 operating income decreased by **$3.5 million** year-over-year, driven by a **31%** drop in fuel margins despite a **28%** increase in fuel sales volumes[210](index=210&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2021, the company's liquidity was **$243.5 million**, bolstered by Q1 2021 sale-leaseback and equity offerings, with a 2021 capital expenditure budget of **$35 million to $45 million** Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,815 | $33,767 | | Net cash provided by (used in) investing activities | $88,847 | ($30,160) | | Net cash provided by financing activities | $15,358 | $13,247 | - The 2021 capital expenditure and deferred turnaround cost budget ranges from **$35 million to $45 million**, primarily for the Washington refinery turnaround and sustaining maintenance[273](index=273&type=chunk) - Proceeds from the March 2021 equity offering were used to repay **$48.7 million** of 5.00% Convertible Senior Notes and **$36.8 million** of 12.875% Senior Secured Notes[266](index=266&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant market risks from commodity price volatility, with a **$1** per barrel refining margin change impacting annualized operating income by **$50.7 million**, and interest rate risk on **$221.9 million** of floating-rate debt - A **$1** per barrel change in average gross refining margins would impact annualized operating income by approximately **$50.7 million**[281](index=281&type=chunk) - The company is exposed to interest rate risk on **$221.9 million** of floating-rate debt, where a **1%** rate increase would raise annual costs by approximately **$3.3 million** for Cost of Revenues and **$3.5 million** for Interest Expense[286](index=286&type=chunk) - The company faces market risk from the price volatility of Renewable Identification Numbers (RINs) for Renewable Fuel Standard (RFS) compliance, with 2021 RVO percentages yet to be set by the EPA[285](index=285&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during Q2 2021 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of **June 30, 2021**[289](index=289&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended **June 30, 2021**[290](index=290&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company may be involved in litigation arising from normal business operations, with details on commitments and contingencies provided in Note 13 of the financial statements - The company is party to various lawsuits and contingent matters in the ordinary course of business, with accruals established when an unfavorable outcome is probable and estimable[119](index=119&type=chunk)[292](index=292&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) The company's business and financial condition continue to be adversely affected by the COVID-19 pandemic, with its ultimate impact remaining uncertain and potentially amplifying other risks - The company's business and financial results have been adversely affected by the COVID-19 pandemic, leading to a global economic slowdown and decreased demand for crude oil and refined products[294](index=294&type=chunk) - The ultimate impact of the COVID-19 pandemic on operations and financial condition remains uncertain, depending on evolving factors beyond the company's control[294](index=294&type=chunk) - The pandemic could precipitate or aggravate other risk factors identified in the company's 2020 Annual Report on Form 10-K[295](index=295&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has not paid and does not plan to pay common stock dividends due to debt restrictions, and repurchased a small number of shares for employee tax obligations - The company has not paid dividends and does not expect to, as subsidiaries are restricted by ABL Credit Facility and Senior Secured Notes indentures[296](index=296&type=chunk) Stock Repurchases - Quarter Ended June 30, 2021 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - April 30, 2021 | 146 | $14.78 | | May 1 - May 31, 2021 | — | — | | June 1 - June 30, 2021 | — | — | | **Total** | **146** | **$14.78** | [Defaults Upon Senior Securities](index=67&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is reported as not applicable for the period - Not applicable[299](index=299&type=chunk) [Mine Safety Disclosures](index=67&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is reported as not applicable for the period - Not applicable[300](index=300&type=chunk) [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) This section indicates that there is no other information to report for the period - None[301](index=301&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate agreements, amendments, indentures, and CEO/CFO certifications - Exhibits include key agreements such as the Second Amended and Restated Supply and Offtake Agreement with J. Aron & Company LLC[305](index=305&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are included[306](index=306&type=chunk)

| Par Pacific 9 INVESTOR PRESENTATION | MAY 2021 Forward-Looking Statements / Disclaimers The information contained in this presentation has been prepared to assist you in making your own evaluation of the company and does not purport to contain all of the information you may consider important. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation, but should not be relied upon as an accurate representation of future results. Certain statements, ...

Financial Data and Key Metrics Changes - First quarter adjusted EBITDA was a loss of $43 million and adjusted net loss was $1.55 per share, which included a $47 million non-cash prior period mark-to-market expense [8][28] - Current liquidity stands at $287 million, significantly higher than the end of 2019 levels, and net debt is down to $462 million, more than $45 million below year-end 2019 [15][37] Business Line Data and Key Metrics Changes - The retail segment adjusted EBITDA contribution was $8 million, down from $16 million in the fourth quarter of 2020, primarily due to margin compression and lower volumes [30] - The Logistics segment adjusted EBITDA contribution was $16 million, up $7 million from the fourth quarter of 2020, driven by increased demand in Hawaii and Wyoming [31] - The Refining segment recorded an adjusted EBITDA loss of $55 million, but excluding the prior period mark-to-market expense, the loss would be $9 million [32] Market Data and Key Metrics Changes - Air travel to Hawaii increased significantly, with passenger arrivals now approximately 65% of pre-pandemic levels, primarily due to domestic travel [9] - The Wyoming 3-2-1 Index averaged $20.97 per barrel in Q1, with throughput averaging approximately 15,000 barrels per day [19] - The Singapore 3-1-2 Index averaged $3.80 per barrel in Q1, with throughput averaging approximately 81,000 barrels per day [23] Company Strategy and Development Direction - The company is transitioning its Northwest retail unit to its proprietary nomnom convenience store brand, which is expected to boost segment profit [13] - The company is well-positioned for new greenhouse gas regulations due to low emissions and a completed renewables logistics system [14] - The company anticipates improving profitability as the economy recovers and expects much of the global demand growth to be in distillates [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a key inflection point in the industry due to increasing vaccination rates and improving mobility trends [7] - The company expects a rebound in retail performance as crude oil prices stabilize and traffic volumes increase [12] - Management expressed confidence in the recovery of refining profitability, particularly in Hawaii, as market conditions improve [44] Other Important Information - The company completed a $116 million sale-leaseback of certain real estate properties and an $87 million equity issuance to enhance liquidity [14][37] - The company is focused on maximizing asset utilization and transitioning back to positive profitability territory [26] Q&A Session Summary Question: Trends in second quarter performance and Hawaii - Management observed significant changes in profitability from January and February to March, with increased runs at refineries and improved market indices [43] Question: Singapore crack spreads and demand recovery - Management indicated that while supply has increased, the Singapore market is affected by international factors and may return to historical means with ongoing volatility [50] Question: Retail segment performance in Q1 - Management noted that volume lagged behind Q4 due to fewer days and a lull in markets, but March showed improvement [56] Question: RINs obligations and Supreme Court case - Management expects the Supreme Court to reverse a lower court decision, allowing for waivers for 2019 and 2020 RINs obligations [62][66] Question: Crude guidance in Hawaii - Management clarified that the increase in crude costs is due to a lag in pricing and not a change in crude quality [69] Question: Laramie's performance and cash generation - Management stated that Laramie's cash generation will primarily be used for debt reduction [72] Question: Logic behind equity raise - Management explained that the equity raise aims to lower the cost of senior debt funding and improve liquidity [83]