Par Pacific(PARR) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $18.6 million, or $0.32 per diluted share, down from $30.0 million, or $0.49 per diluted share in Q2 2023[1] - Adjusted net income for Q2 2024 was $28.5 million, compared to $105.0 million in Q2 2023[1] - Adjusted EBITDA for Q2 2024 was $81.6 million, down from $150.8 million in Q2 2023[1] - Revenues for the three months ended June 30, 2024, increased to $2,017,468, a 13.1% rise from $1,783,927 in the same period of 2023[19] - Operating income for the six months ended June 30, 2024, was $58,156, compared to $307,835 for the same period in 2023, reflecting a significant decrease[19] - Net income for the three months ended June 30, 2024, was $18,638, compared to $267,903 in the same period of 2023, indicating a substantial decline[19] - The company reported a diluted income per share of $0.32 for the three months ended June 30, 2024, down from $4.39 in the same period of 2023[19] - The company experienced a loss of $(6,466) for the three months ended June 30, 2024, compared to a profit of $6,709 for the same period in 2023[48] Segment Performance - Refining segment operating income was $41.2 million in Q2 2024, compared to $44.1 million in Q2 2023[2] - Retail segment reported operating income of $16.1 million in Q2 2024, an increase from $15.2 million in Q2 2023[7] - Logistics segment operating income was $18.0 million in Q2 2024, down from $20.7 million in Q2 2023[9] - The company reported an operating income of $63,806 thousand for Refining, $38,415 thousand for Logistics, and $27,049 thousand for Retail for the six months ended June 30, 2024[31] - Adjusted EBITDA for Refining segment was $63,806, Logistics $38,415, Retail $27,049, and Corporate and Other $(71,114) for the six months ended June 30, 2024[45] Cash and Debt - Cash balance at June 30, 2024, was $179.7 million, with gross term debt of $547.6 million[11] - Total debt, including current portion, increased to $1,058,755 as of June 30, 2024, from $650,858 at the end of December 31, 2023[19] - Cash and cash equivalents decreased to $179,658 as of June 30, 2024, down from $279,107 at the end of December 31, 2023[19] - The company incurred $4,908 in interest expense and loan fees for the three months ended June 30, 2024[48] - The company reported a gain on extinguishment of debt of $10,098 for the six months ended June 30, 2024[48] Operational Metrics - Hawaii refinery's throughput was 81 Mbpd in Q2 2024, down from 84 Mbpd in Q2 2023[3] - Montana refinery's throughput was 38 Mbpd in Q2 2024, down from 63 Mbpd in Q2 2023[4] - Washington Refinery's feedstocks throughput increased to 41.2 Mbpd in Q2 2024 from 40.9 Mbpd in Q2 2023, while Wyoming Refinery's throughput rose to 19.9 Mbpd from 16.7 Mbpd[21] - Refined product sales volume for Washington Refinery dropped to 40.2 Mbpd in Q2 2024 from 44.8 Mbpd in Q2 2023, while Wyoming Refinery's sales volume increased to 20.6 Mbpd from 17.3 Mbpd[21] - Retail sales volumes increased to 30,523 thousand gallons in Q2 2024 from 29,373 thousand gallons in Q2 2023[21] Cost and Margin Analysis - Total operating expenses for the three months ended June 30, 2024, were $1,968,827, up 13.3% from $1,737,494 in the prior year[19] - Adjusted gross margin per barrel for the refining segment decreased to $10.07 for the three months ended June 30, 2024, from $12.08 in the same period of 2023[20] - The Adjusted Gross Margin for the same period in 2023 was $205,575 thousand for Refining, $29,553 thousand for Logistics, and $39,228 thousand for Retail, indicating a decrease in Refining by 14.1%[31] - The Adjusted Gross Margin for Refining was $383,713 thousand, Logistics was $62,709 thousand, and Retail was $78,680 thousand for the six months ended June 30, 2024[31] Market Conditions - Crude oil prices for Brent increased to $85.03 per barrel in Q2 2024 from $77.73 in Q2 2023, while WTI prices rose to $80.66 from $73.56[21] - The 3-1-2 Singapore Crack Spread decreased to $12.49 in Q2 2024 from $13.72 in Q2 2023[21] Adjustments and Non-Operating Items - Adjusted Net Income and Adjusted EBITDA measures will exclude certain non-operating income and expenses starting from Q1 2024, improving comparability between periods[27] - Adjusted Gross Margin is defined to exclude various operating expenses and adjustments, providing a clearer view of the company's earnings potential[28] - The company recognized a non-cash deferred tax expense of $6.2 million for the three months ended June 30, 2024, related to deferred state and federal tax liabilities[36] - The basic Adjusted Net Income per common share for the three months ended June 30, 2024, was $0.50, compared to $1.74 for the same period in 2023[38] - The diluted Adjusted Net Income per common share for the three months ended June 30, 2024, was $0.49, down from $1.72 in the same period of 2023[38]