Par Pacific(PARR) - 2024 Q3 - Quarterly Report

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$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$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$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$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$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$2,599.3 million, compared to $2,203.5 million in the same period of 2023, reflecting an 18$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].