Par Pacific(PARR) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $7.5 million, or $0.13 per diluted share, a significant decrease from $171.4 million, or $2.79 per diluted share, in Q3 2023[2] - Adjusted Net Loss for Q3 2024 was $(5.5) million, compared to Adjusted Net Income of $193.4 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $51.4 million, down from $255.7 million in Q3 2023[2] - Revenues for the three months ended September 30, 2024, were $2,143,933, a decrease of 16.9% compared to $2,579,308 for the same period in 2023[24] - Operating income for the three months ended September 30, 2024, was $36,431, down 81.5% from $196,873 in the prior year[24] - Net income for the three months ended September 30, 2024, was $7,486, a significant decline of 95.6% compared to $171,415 in the same quarter of 2023[24] - Total operating expenses for the three months ended September 30, 2024, were $2,107,502, a decrease of 11.5% from $2,382,435 in the prior year[24] - The adjusted net income (loss) for the three months ended September 30, 2024, was $(5,549), compared to $193,380 for the same period in 2023[41] - The adjusted EBITDA for the three months ended September 30, 2024, was $51,428, while for the same period in 2023, it was $255,746[41] Segment Performance - Refining segment operating income fell to $19.0 million in Q3 2024 from $194.8 million in Q3 2023, with Adjusted Gross Margin decreasing from $350.6 million to $142.2 million[4] - Retail segment reported operating income of $18.3 million in Q3 2024, an increase from $13.3 million in Q3 2023, with Adjusted Gross Margin rising from $38.2 million to $42.6 million[12] - Logistics segment operating income increased to $26.2 million in Q3 2024 from $20.7 million in Q3 2023, with Adjusted Gross Margin slightly up from $35.3 million to $36.3 million[15] - For the three months ended September 30, 2024, the adjusted gross margin for Refining was $142,193, Logistics was $36,284, and Retail was $42,615[35] - The operating income for the nine months ended September 30, 2024, was $82,811 for Refining, $64,579 for Logistics, and $45,323 for Retail[36] Liquidity and Capital Management - Liquidity improved by $112.1 million, with total liquidity reaching $632.5 million as of September 30, 2024[17] - The company repurchased $21.9 million of common stock during Q3 2024[17] - Total debt, including current portion, increased to $1,043,706 as of September 30, 2024, compared to $650,858 at the end of December 31, 2023[24] - Cash and cash equivalents decreased to $182,977 as of September 30, 2024, down from $279,107 at the end of December 31, 2023[24] - Working capital increased to $542,690 as of September 30, 2024, compared to $190,042 at the end of December 31, 2023[24] Operational Metrics - Feedstocks throughput for the total refining segment was 198.4 Mbpd for the three months ended September 30, 2024, slightly up from 198.2 Mbpd in the same period of 2023[25] - Washington refinery feedstocks throughput increased to 41.1 Mbpd in Q3 2024 from 41.0 Mbpd in Q3 2023, while Wyoming refinery throughput was 19.4 Mbpd compared to 19.5 Mbpd[26] - Total yield for the Washington refinery was 96.0% in Q3 2024, slightly down from 96.3% in Q3 2023, while Wyoming refinery yield improved to 98.4% from 98.0%[26] - Retail sales volumes reached 31,232 thousand gallons in Q3 2024, up from 31,137 thousand gallons in Q3 2023[26] Market Conditions - Crude oil prices for Brent averaged $78.71 per barrel in Q3 2024, down from $85.92 in Q3 2023, while WTI prices decreased to $75.27 from $82.22[26] - The 3-1-2 Singapore Crack Spread was $11.00 in Q3 2024, significantly lower than $23.39 in Q3 2023, indicating a decline in refining margins[26] Environmental and Accounting Adjustments - The company is focused on improving its environmental obligations and has updated its accounting for these liabilities to reflect current market conditions[31] - The company plans to continue evaluating its operational performance using non-GAAP measures such as Adjusted Gross Margin and Adjusted EBITDA to provide clearer insights into profitability[29] - Adjusted Net Income (Loss) will exclude non-operating income and expenses starting from Q1 2024 to enhance comparability between periods[33] - The environmental obligation mark-to-market adjustments for the three months ended September 30, 2024, resulted in a loss of $(4,432)[41] - The inventory valuation adjustment for the three months ended September 30, 2024, was $14,057[41]